MS&AD Insurance Group Holdings, Inc., a Japanese insurance group, has agreed to invest up to £200 million in a new partnership specialising in the pension risk transfer (PRT) business, to be established by Standard Life plc.
Standard Life plans to establish the partnership in the UK, focusing on large UK pension schemes, together with global financial institutions and asset managers, including CVC Capital Partners plc, Prudential Financial, Inc., The Goldman Sachs Group, Inc., and other institutional investors, with the aim of further expanding its presence in the UK PRT market.
The new partnership aims to expand support for pension schemes across a broader range of sizes, including the largest and most complex defined benefit pension schemes.
MS&AD’s participation underscores its strong relationship with Standard Life, with the company citing the partnership’s future growth potential, strategic fit with the MS&AD Group and expected synergies as reasons for its investment.
MS&AD has committed to invest in the partnership in stages, depending on the progress of new business underwritten, up to a maximum amount of £200 million.
The Japanese insurance group said it expects to generate capital efficiency, investment returns and dividend income over time.
In addition, from the perspective of establishing an effective governance framework, at completion of the partnership, MS&AD will have the right to appoint an observer to the board of the new partnership.
MS&AD expects to draw on the knowledge and experience gained through collaboration with Standard Life and the other investors to further enhance related businesses within the MS&AD Group.
The impact of this investment on the MS&AD consolidated financial results for fiscal year 2026 ending March 31, 2027 is expected to be immaterial.
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