Legal & General's Strategic Move

In a significant development, Legal & General Group Plc has announced its decision to sell its US protection business. The deal, valued at $2.3 billion in cash, is with Meiji Yasuda Life Insurance Company, a move that also includes the acquisition of approximately 5% of L&G's shares by the Japanese firm. This strategic partnership aims to deepen the corporate relationship and align the interests of both companies more closely.

Completion and Shareholder Benefits

The transaction is slated for completion by the end of 2025. L&G CEO Antonio Simoes highlighted the deal's alignment with the company's commitment to creating value and enhancing shareholder returns. He anticipates distributing around 40% of the company's market capitalization through dividends and share buybacks over the next three years.

Market Reaction

Following the announcement, L&G's shares experienced a notable surge, increasing by 6.78% at 9:30 am CET, reflecting the market's positive reception of the deal.