Legal & General Sells US Protection Unit for $2.3 Billion
Deal News | Feb 07, 2025 | Zawya
Legal & General (L&G) has announced the sale of its U.S. protection business to Japan's Meiji Yasuda for $2.3 billion, the largest transaction in L&G's history under CEO António Simoes's strategy to simplify the business. The deal also includes Meiji Yasuda acquiring a 5% stake in L&G and both companies forming a strategic partnership with Meiji Yasuda taking a 20% stake in L&G's U.S. pension risk transfer business. Following the sale, L&G intends to focus on its UK retail customers and expand its U.S. pension risk transfer business using part of the transaction proceeds. L&G plans a share buyback of £1 billion after the deal closes, projected by the end of 2025 pending regulatory approval.
Sectors
- Insurance
- Financial Services
Geography
- United Kingdom – Legal & General is a British insurance company headquartered in London, UK.
- Japan – Meiji Yasuda is a Japanese insurer buying the U.S. protection unit from Legal & General.
- United States – The U.S. protection unit of Legal & General is being sold, and the U.S. is a key market for pension risk transfer business.
Industry
- Insurance – The article discusses a transaction involving the sale and acquisition of units in the insurance sector.
- Financial Services – The companies involved provide a range of financial services including pension risk transfer and asset management.
Financials
- 2.3 billion – The cash price at which Meiji Yasuda is acquiring the U.S. protection business from Legal & General.
- 1.2 billion – Extra amount Legal & General plans for a share buyback programme post the sale.
- 1.35 billion – The deal value for the sale of Legal & General's UK housebuilder CALA Group to Sixth Street Partners.
- 400 million – Amount planned by Legal & General to fund expansion of the U.S. pension risk transfer business from the proceeds.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Legal & General | Selling Company | Company | A British multinational financial services and asset management company involved in the sale of its U.S. protection business. |
| Meiji Yasuda | Bidding Company | Company | A Japanese life insurance company acquiring the U.S. protection unit from Legal & General. |
| António Simoes | CEO | Person | CEO of Legal & General overseeing the strategic direction and execution of the transaction. |
| Sixth Street Partners | Other Company | Company | A U.S. private asset firm that led the acquisition of Legal & General's UK housebuilder CALA Group. |
| Laura Mason | Retail Division Leader | Person | Promoted to lead Legal & General's retail division. |
| Katie Worgan | Group Chief Operating Officer | Person | Hired from Lloyds Banking Group to become Legal & General's group chief operating officer. |