British insurer L&G to sell US protection unit for $2.3 billion

Editorial & Advertiser disclosure

Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

Home > Finance > Britain's L&G sells US protection unit to Japanese insurer for $2.3 billion

Finance

Britain's L&G sells US protection unit to Japanese insurer for $2.3 billion

Published by Global Banking and Finance Review

Posted on February 7, 2025

3 min read

Last updated: January 26, 2026

Lawmaker Kim Leadbeater discusses UK's assisted dying law changes - Global Banking & Finance Review — Image of Kim Leadbeater addressing the media about proposed changes to the UK's assisted dying law, emphasizing the removal of High Court judge sign-off to enhance the legislative process.

L&G Sells US Protection Unit to Japanese Insurer for $2.3B

By Amy-Jo Crowley, Iain Withers and Yadarisa Shabong

LONDON (Reuters) -Legal & General said on Friday it would sell its U.S. protection business to Japan's Meiji Yasuda for $2.3 billion in cash and said the Japanese firm would take a 5% stake in the British insurer, in the biggest strategic move so far under CEO António Simões.

The group's shares gained 8% in early trading. They have broadly been trending lower in recent years, but have risen around 12% year to date, outperforming the broader London and European stock markets.

Simoes told reporters the transaction was the largest in the company's history, adding it was part of his wider strategy announced last year to simplify the group, and would be followed by further, likely smaller disposals.

The companies will also form a strategic partnership, with Meiji Yasuda taking a 20% stake in L&G's U.S. pension risk transfer (PRT) business, a fast-expanding market globally as companies offload their pension schemes to insurers.

L&G said it planned to launch a share buyback programme worth an extra 1 billion pounds ($1.2 billion) after the sale.

Simoes described Meiji Yasuda taking a stake in the group as a "vote of confidence" and said it did not indicate a desire for deeper integration in future.

The transaction on the U.S. protection unit, which is subject to regulatory approval, is expected to complete by the end of 2025.

"This strategic partnership brings together two highly complementary global businesses, with a shared ambition for growth," he added in a statement.

L&G said it would help the companies capitalise on opportunities in the U.S. market and in global asset management.

After the sale of the U.S. protection business closes, L&G will only serve retail customers in its home market of Britain, which Simoes said L&G remained committed to.

The company said it would use 400 million pounds of the proceeds from the transaction to fund the expansion of the U.S. pension risk transfer business.

L&G sold its UK housebuilder CALA Group in a deal worth 1.35 billion pounds last September to an acquisition vehicle led by U.S. private asset firm Sixth Street Partners.

It also promoted Laura Mason to lead its retail division and hired Katie Worgan from Lloyds Banking Group to become group chief operating officer.

($1 = 0.8046 pounds)

(Reporting by Yadarisa Shabong in Bengaluru, Amy-Jo Crowley and Iain Withers in London; Editing by Sherry Jacob-Phillips and Emelia Sithole-Matarise)

Quick Summary

L&G Sells US Protection Unit to Japanese Insurer for $2.3B

Key Takeaways

Frequently Asked Questions about Britain's L&G sells US protection unit to Japanese insurer for $2.3 billion