Legal & General Group Plc Announces Major Sale

In a significant move, Legal & General Group Plc has announced the sale of its US protection business to Meiji Yasuda Life Insurance Company for a staggering $2.3 billion in cash. This deal not only includes the acquisition of the protection business but also involves Meiji Yasuda acquiring approximately 5% of L&G's shareholding. This strategic move is aimed at deepening the corporate relationship between the two entities and aligning their interests more closely.

Transaction Timeline and Strategic Implications

The transaction is poised for completion by the end of 2025. Antonio Simoes, CEO of L&G, highlighted the company's commitment to value creation and enhancing shareholder returns. He mentioned that L&G plans to distribute approximately 40% of its market capitalization through dividends and share buybacks over the next three years, underscoring the company's focus on delivering shareholder value.

Market Reaction

Following the announcement, L&G's shares experienced a notable surge, jumping 6.78% at 9:30 am CET. This positive market reaction reflects investor confidence in the strategic direction and financial health of Legal & General Group Plc.