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Legal & General Group PLC - London-based insurer - Completes the sale of its US protection and US Pension Risk Transfer businesses, together its US insurance entity, to Japan’s Meiji Yasuda Life Insurance Co for equity value of $2.3 billion, with net proceeds of £1.8 billion. Also establishes a long-term partnership with Meiji Yasuda, which will acquire a 5% economic interest in L&G. Says the two firms offer a highly compelling US PRT proposition. Legal & General reports a solvency II capital generation of £1.2 billion and expects the proforma 2025 solvency II coverage ratio to increase by around 7 percentage points, allowing for an expected £1 billion share buyback from the sale proceeds. This brings its total planned share buyback value to £1.2 billion for 2026. Expects group IFRS profit exceeding £1.3 billion, reflecting the difference between sale proceeds and the US entity’s adjusted carrying value in its balance sheet.
L&G Chief Executive Officer Antonio Simoes comments: ‘This exciting long-term partnership with Meiji Yasuda delivers significant financial and strategic benefits for L&G today and opportunities for the future. It strengthens our balance sheet, releases capital and enables us to accelerate growth in US [PRT] through a partnership with a highly regarded, long term investor.’
Current stock price: 268.00 pence, up 1.1% on Monday afternoon in London
12-month change: up 13%
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