Bullish indicating open at $55-$60, IPO prices at $37
LONDON - Legal & General Group (LON:LGEN) Plc (L&G) has agreed to sell its US protection business to Meiji Yasuda Life Insurance (NSE:LIFI) Company for $2.3 billion, the company announced today. The deal also includes a strategic partnership aimed at expanding L&G’s US Pension Risk Transfer (PRT) business.
The transaction is expected to close by the end of 2025, subject to customary closing conditions and regulatory approvals. Meiji Yasuda will acquire a 20% stake in L&G’s US PRT business and intends to purchase approximately a 5% shareholding in L&G. This move is part of Meiji Yasuda’s strategy to grow its international presence and deepen its partnership with L&G in asset management.
L&G anticipates an additional share buyback of £1.0 billion following the completion of the deal. The company now expects to return about 40% of its market capitalization to shareholders over the period from 2025 to 2027 through dividends and buybacks. The transaction is also projected to enhance L&G’s Solvency II ratio by approximately 22% at completion, with an anticipated 7% increase post-buyback.
António Simões, L&G Group CEO, highlighted the strategic and financial benefits of the transaction, emphasizing the alignment with L&G’s focus on core businesses and growth ambitions. He stated that the partnership would enable L&G to capitalize on US PRT market opportunities and drive profitability in global asset management.
Hideki Nagashima, President and Group CEO of Meiji Yasuda, expressed confidence in L&G’s leadership and strategy and the shared ambition for growth between the two companies.
Financially, L&G’s US protection business is expected to generate operating profits of approximately $90 million in 2024. The proceeds from the transaction will be used to fund the US PRT reinsurance arrangement and support L&G’s growth strategy. The anticipated IFRS profit on completion is expected to exceed £1.0 billion.
This announcement is based on a press release statement and contains factual information without speculation on broader industry impacts or trends.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.