Legal & General to Divest US Entity to Meiji Yasuda for $2.3bn

Deal News | Feb 07, 2025 | Re-Insurance News

Legal & General (L&G) has agreed to sell its US-based insurance entity to Meiji Yasuda for $2.3 billion. The sale involves L&G's US protection and Pension Risk Transfer (PRT) businesses. Upon completion, Meiji Yasuda will own L&G's US protection business and hold a 20% economic interest in its US PRT operations, with L&G retaining 80% through reinsurance agreements. The transaction is anticipated to conclude by the end of 2025, pending customary conditions and regulatory approvals. Alongside the deal, a strategic partnership between L&G and Meiji Yasuda aims to bolster US PRT growth and asset management. L&G plans to use a portion of the proceeds for reinsurance arrangements and return £1 billion to shareholders, aligning with its capital allocation. Antonio Simoes, CEO of L&G, highlighted the transaction's strategic and financial benefits, enhancing core business focus and shareholder returns. Meanwhile, Hideki Nagashima, CEO of Meiji Yasuda, underscored the transaction as pivotal for their international growth strategy.

Sectors

Insurance
Financial Services

Geography

United States – The transaction involves L&G's US-based insurance and Pension Risk Transfer businesses.
Japan – Meiji Yasuda, the buyer, is a Japanese insurance company.

Industry

Insurance – The article centers on the sale of an insurance business, involving key players in the insurance industry.
Financial Services – The partnership between L&G and Meiji Yasuda also covers asset management, a key sector within financial services.

Financials

$2.3 billion – Equity value for the transaction between Legal & General and Meiji Yasuda.
£1 billion – Amount L&G intends to return to shareholders following the transaction.
400 million – Funds earmarked by L&G for the US PRT reinsurance arrangement.

Participants

Name	Role	Type	Description
Legal & General	Selling Company	Company	A UK-based multinational financial services and asset management company.
Meiji Yasuda Life Insurance Company	Bidding Company	Company	A Japanese mutual life insurance company acquiring L&G's US insurance entity.
Antonio Simoes	Group CEO of Legal & General	Person	Commented on the strategic benefits and shareholder returns from the transaction.
Hideki Nagashima	President and Group CEO of Meiji Yasuda Life	Person	Acknowledged the acquisition's contribution to Meiji Yasuda's international growth strategy.