M&G has announced a new long-term partnership with Japanese insurance firm, Dai-ichi Life.

The UK-based global investment manager will now become the Japanese firm’s preferred asset management partner in Europe, supporting its access to public and private markets capabilities across the continent.

As part of the partnership, Dai-ichi Life will acquire a 15% share in M&G, creating what the two firms have described as "significant alignment to capture long-term value creation opportunities".

The partnership is set to generate at least $6bn in new business flows into funds managed by M&G over the next five years, of which half is expected to come from Dai-ichi Life’s balance sheet.

The two firms will also consider collaboration across the life insurance industry in Europe and Japan.

President and CEO at Dai-ichi Life, Tetsuya Kikuta, said: "Dai-ichi Life is delighted to enter into a strategic alliance with M&G, a highly regarded global player in the insurance and asset management industries, to collaborate and develop capabilities together in multiple areas, especially in Europe.

"We see our partnership with M&G acting as a spearhead to develop our presence across Europe and the UK, accelerating our strategy to become a global top-tier insurance group. M&G possesses not only a reputable and long-established life insurance business, but comprehensive asset management solutions in both public and private markets."

Group CEO at M&G, Andrea Rossi, added: "The strategic partnership with Dai-ichi Life and the associated c.15% investment is recognition of M&G's strengths and clear confidence in our leadership, strategy and long-term prospects. It brings together two highly complementary international businesses with shared growth ambitions who aim to deliver excellent client service and sustainable shareholder returns."

"It will enable us to further capitalise on the significant private market opportunities across Europe and enable even greater access to the Japanese and Asian market where we will benefit from Dai-ichi Life market-leading expertise."

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