Legal & General Group has sold its US protection business to Meiji Yasuda Life Insurance for $2.3 billion while establishing a strategic partnership to expand in the US Pension Risk Transfer market.

Target Information

Legal & General Group Plc (L&G) has announced an agreement to sell its US insurance entity, which includes its US protection and Pension Risk Transfer (PRT) businesses, to Meiji Yasuda Life Insurance Company, a prominent Japanese mutual life insurance company. The transaction is valued at $2.3 billion (£1.8 billion) in cash, subject to standard purchase price adjustments.

Upon completion, Meiji Yasuda will assume ownership of L&G's US protection business and acquire a 20% stake in L&G's US PRT business, allowing L&G to maintain an 80% interest through reinsurance agreements. The transaction is anticipated to enhance L&G's capital position and drive future growth while reinforcing its strategic focus on key global markets.

Industry Overview in the U.S.

The US insurance market represents one of the largest sectors globally, characterized by significant growth opportunities, particularly in the protection and risk transfer segments. The sector has be