Legal & General to Offload US Protection Business to Meiji Yasuda for $2.3 Billion
London-headquartered life insurer Legal & General Group (L&G) has announced the divestiture of its US protection business to Japanese insurance giant Meiji Yasuda for $2.3 billion in cash. This strategic move marks a significant milestone under the leadership of L&G CEO António Simões.
In addition to the sale, the two companies will establish a strategic partnership. Meiji Yasuda will acquire a 20% stake in L&G's US pension risk transfer (PRT) arm and plans to purchase approximately 5% of L&G's shares.
Post-sale, L&G intends to initiate a share buyback program valued at an additional £1 billion ($1.2 billion). The transaction, contingent upon regulatory approvals, is anticipated to close by the end of 2025.
"This strategic partnership unites two highly complementary global businesses, united by a shared aspiration for growth," stated L&G's Simões. He emphasized the alliance's potential to capitalize on opportunities in the US market and global asset management.
L&G noted that the transaction aligns with its strategy to streamline its portfolio and focus on its core operations. Proceeds from the sale, amounting to £400 million, will be allocated towards funding a US PRT reinsurance agreement.
Last September, L&G sold its UK housebuilding subsidiary, the CALA Group, for £1.35 billion to an acquisition vehicle backed by US private equity firm Sixth Street Partners.