Legal & General (L&G), the British life insurance company, has announced the sale of its U.S. protection business to Japan’s Meiji Yasuda for $2.3 billion in cash. This transaction marks one of the most significant strategic decisions under CEO António Simões and reflects the company’s ongoing efforts to streamline its portfolio and focus on core operations.
As part of the deal, L&G and Meiji Yasuda will establish a strategic partnership. The Japanese insurer will acquire a 20% stake in L&G’s U.S. pension risk transfer (PRT) business and plans to purchase approximately a 5% stake in L&G itself. Following the sale, L&G intends to launch an additional share buyback program worth £1 billion ($1.2 billion), further enhancing shareholder value.
The transaction is subject to regulatory approvals and is expected to be finalized by the end of 2025. Simões described the partnership as a strategic alignment between two globally complementary businesses with a shared vision for growth. He highlighted that the collaboration would allow both companies to capitalize on opportunities in the U.S. insurance market and global asset management.
L&G will allocate £400 million from the sale proceeds to fund a reinsurance arrangement for its U.S. PRT business, reinforcing its commitment to pension risk management. The company’s broader strategy aims to simplify operations, concentrating resources on its key growth areas.
This move follows L&G’s recent divestment of its UK housebuilding business, CALA Group. In September, the insurer sold CALA for £1.35 billion to an acquisition group led by U.S. private asset firm Sixth Street Partners. These strategic sales align with L&G’s objective of refining its business model and strengthening its financial position.
The sale of its U.S. protection business signals a shift in L&G’s approach to international markets, allowing the company to focus on higher-margin areas such as pension risk transfer and asset management. Meanwhile, Meiji Yasuda’s acquisition strengthens its presence in the U.S. life insurance market, expanding its global footprint.
With this major transaction, L&G continues to position itself as a leader in the insurance and asset management sectors, leveraging its expertise to drive long-term growth while returning capital to shareholders. The partnership with Meiji Yasuda is expected to open new opportunities for both companies in the evolving financial landscape.
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