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The London-listed life insurance coverage and pensions agency noticed shares bounce increased in early buying and selling on Friday consequently
L&G is aiming for a sleeker operation mannequin (Image: 2025 PA Media, All Rights Reserved)
Legal & General has secured a £1.8bn deal to offload its US protection business to Meiji Yasuda.
In early trading on Friday, L&G’s shares went up following news of the transaction. The Japanese insurance giant plans to snap up a 5% slice of L&G in a strategic move alongside this sale. L&G aims for a sleeker operation model with this deal as it looks to bounce back from a three-year spell of stuttering share prices.
The firms said they expect the deal to complete “towards the end of 2025” and that it is still subject to regulatory approvals. L&G is looking at using £400m from the deal to fund its PRT venture stateside with Meiji Yusada. It also suggested £1bn could be returned to shareholders from the proceeds.
The groups chief executive, Antonio Simoes, said: “This is a transformative transaction that brings important strategic and monetary advantages to the group and demonstrates our dedication to ship on our technique sharpening our concentrate on core companies, leveraging the synergies between them, and driving sustainable development to boost shareholder returns.
“This strategic partnership brings together two highly complementary global businesses, with a shared ambition for growth, and will enable us to capitalise on the large market opportunities in US PRT while driving scale and profitability in global asset management.”
Hideki Nagashima, president and group chief government of Meiji Yasuda, stated: “We are pleased to announce this landmark transaction, which will accelerate Meiji Yasuda’s international growth strategy strengthening our position in the US life insurance market, deepening our long-standing partnership with L&G in asset management, and enabling access to the US PRT market. Our intention to acquire a 5% shareholding in L&G reflects our confidence in their leadership, strategy and long-term prospects.”
In gentle of the information, shares in L&G shot up by 7.5% when the markets opened.
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