Legal & General Group Plc Announces Major Sale to Meiji Yasuda Life Insurance

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

What This Means for Legal & General and Its Shareholders

L&G CEO Antonio Simoes highlighted the company's commitment to creating value and enhancing shareholder returns. He stated, "Today’s announcement reflects our dedication to distributing about 40% of our market cap through dividends and share buybacks over the next three years." This strategic move is expected to conclude by the end of 2025, signaling a new chapter for L&G.

Market Reaction to the Deal

Following the announcement, L&G's shares experienced a significant surge, jumping 6.78% at 9:30 am CET. This positive market response underscores the confidence investors have in the deal's potential to drive growth and profitability for L&G.