Legal & General Group Plc Announces Major Sale

In a significant move, Legal & General Group Plc has agreed to sell its US protection business to Meiji Yasuda Life Insurance Company for a whopping $2.3 billion in cash. This deal not only signifies a major shift in L&G's business strategy but also strengthens the ties between the two companies, with Meiji Yasuda acquiring a 5% stake in L&G.

What This Means for Shareholders and the Market

Antonio Simoes, CEO of L&G, highlighted the company's commitment to creating value and enhancing shareholder returns. He mentioned plans to distribute approximately 40% of the market capitalization through dividends and share buybacks over the next three years. This announcement has positively impacted L&G's shares, which saw a 6.78% increase following the news.

Looking Ahead

The transaction is set to be finalized by the end of 2025, marking a new chapter for both L&G and Meiji Yasuda. This deal not only benefits the shareholders but also aligns the interests of both companies, promising a stronger corporate relationship moving forward.