Legal & General to Return £5 Billion to Shareholders After US Business Sale

The UK-based insurer has sold its US life assurance unit to Japan's Meiji Yasuda for £1.8 billion, forming a strategic partnership to expand in pension risk transfer markets.

Legal & General (L&G) has agreed to sell its US life assurance business to Japanese insurer Meiji Yasuda for £1.8 billion in cash.
The deal includes Meiji Yasuda acquiring a 20% stake in L&G's US pension risk transfer (PRT) business and a 5% stake in L&G itself through share purchases.
L&G plans to return over £5 billion to shareholders through dividends and buybacks over the next three years, equivalent to 40% of its current market value.
The transaction is expected to bolster L&G's focus on core operations, including expanding its PRT business in the US, which is projected to grow significantly in the coming decade.
The sale and partnership are anticipated to strengthen L&G's balance sheet, with its Solvency 2 ratio initially improving by 22% upon completion of the deal, pending regulatory approval.