L&G to Divest US Life Insurance Unit for $2.3 Billion
Deal News | Feb 10, 2025 | EIN
Legal & General Group Plc (L&G), a prominent British insurance company, has agreed to sell its American life insurance division to Japanese insurer Meiji Yasuda Life Insurance Company for $2.3 billion. This strategic divestment aims to fortify L&G's Pension Risk Transfer business across the US while enabling Meiji Yasuda to further penetrate the US insurance market, aligning with its global expansion plans. Meiji Yasuda will acquire 20% of the US PRT shares in addition to 5% of L&G shares. The deal, pending regulatory approval, is expected to conclude by the end of 2025. L&G intends to allocate proceeds from this transaction towards reinsurance, capital reallocation, and an additional share buyback program valued at 1 billion pounds. The action plans to return about 40% of the market value to shareholders through dividends and share repurchases from 2025 to 2027.
Sectors
- Insurance
- Financial Services
Geography
- United Kingdom – L&G is headquartered in London and is the largest asset manager in the UK, representing the company selling its US life insurance business.
- Japan – Meiji Yasuda is a Japanese life insurance company involved in acquiring L&G's US operations, highlighting Japan's role in the transaction.
- United States – The US market is the geographical focus of the transaction, with both companies aiming to strengthen and expand their presence.
Industry
- Insurance – The article primarily focuses on the insurance industry, discussing the sale of a life insurance business and expansion in the US insurance market.
- Financial Services – L&G's operations are not limited to insurance but also encompass asset management and retirement services, thus involving financial services.
Financials
- $2.3 billion – The transaction value for the sale of L&G's US life insurance business to Meiji Yasuda.
- 1 billion pounds – The amount planned by L&G for additional share buybacks following the transaction.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Legal & General Group Plc | Selling Company | Company | A major British insurance and asset management company selling its US life insurance business. |
| Meiji Yasuda Life Insurance Company | Bidding Company | Company | A Japanese life insurance and asset management company purchasing L&G's US operations. |