MassMutual and its global asset-management subsidiary, Barings, announced that MS&AD Insurance Group Holdings, via its subsidiary Mitsui Sumitomo Insurance (MSI), will acquire an 18% equity stake in Barings from MassMutual. Under the agreement, MassMutual will remain the majority owner of Barings, with an 82% stake, and will maintain controlling governance rights.
MassMutual will receive approximately US $1.44 billion in cash proceeds from the transaction, reflecting MS&AD’s significant valuation of Barings’ equity interest. Barings will continue to operate as an independent subsidiary of MassMutual, with no changes to its day-to-day operations, investment committees, processes, or strategy.
The strategic partnership is designed to accelerate Barings’ growth by leveraging MS&AD’s capital and its asset-management needs. Through the agreement, MS&AD will provide growth capital to support Barings’ long-term growth strategy, and Barings will expand its asset-management relationship with MS&AD by managing assets within MS&AD’s general investment account. In addition, a leadership team member from MS&AD will join Barings’ Board of Managers.
MassMutual, structured as a mutual company that benefits its policyowners, has long integrated its life insurance expertise with advanced asset management capabilities. With Barings as a key component, MassMutual has built a broad portfolio of protection and wealth solutions, distribution via approximately 6,500 affiliated U.S. financial professionals, and asset-origination capabilities. Over the past 25 years, MassMutual has built its third-party institutional investment manager business, which has grown into Barings, a global asset management firm with more than $470 billion in assets under management. The transaction is subject to customary closing conditions and approvals.
KEY QUOTES:
“At MassMutual, one of our distinct competitive advantages to deliver sustained value to our policyowners has long been our diverse portfolio of strategic businesses and investments, of which Barings plays a key role.”
“This investment by MS&AD creates a strategic partnership with a leading global insurance company that is also deeply committed to Barings’ long-term success. The transaction accelerates Barings’ growth and builds on our long-standing, successful optimization of the intersection of insurance and asset management, allowing us to realize even more value over time and ultimately benefiting our policyowners and customers.”
Roger Crandall, Chairman, President and CEO, MassMutual
“We are excited to partner with MS&AD and believe this is a unique opportunity to accelerate Barings’ growth.”
“Building on MassMutual’s continued support, Barings will combine growth capital with our scale and expertise in public and private markets to drive our long-term strategy and deliver solutions for clients.”
Mike Freno, Chairman and CEO, Barings
“We are pleased to have the opportunity to invest in Barings. Forming a new strategic partnership with Barings—an asset manager with a strong track record and deep expertise—and with MassMutual, a leading provider of high-quality life insurance solutions, carries significant meaning for our group.”
“We are confident that supporting Barings’ sustainable, long-term growth in close collaboration with MassMutual will create lasting value for all three firms.”
Shinichiro Funabiki, President & CEO, MS&AD and MSI
