Dai-ichi Life Holdings plans to acquire a stake in Britain’s M&G plc, aiming to diversify its earnings sources. Fitch Ratings estimates that the deal could add roughly ¥15 billion (about $104.9 million) to Dai-ichi Life’s consolidated adjusted profit each year.
Fitch expects the transaction to have a minimal and manageable impact on Dai-ichi Life’s capital adequacy and financial leverage. Despite a slight negative effect on capital ratios, the acquisition is projected to enhance Dai-ichi Life’s credit profile over the medium term. This improvement is attributed to M&G’s strong international investment capabilities, which should support the Japanese insurer’s diversification goals.
Impact on M&G Seen as Neutral in the Medium Term
For M&G, the proposed stake acquisition by Dai-ichi Life is deemed “roughly neutral” in the medium term. Fitch notes that, in the long term, the deal may help diversify M&G’s earnings sources, reducing reliance on any single market or product line.
Fitch also forecasts that assets and earnings from M&G’s international businesses—particularly its asset management operations—will grow gradually over time. This trend supports the view that the acquisition can strengthen both companies’ positions, with Dai-ichi Life benefiting from M&G’s global reach and M&G potentially accessing Japanese capital and expertise.
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