REG - Legal & General Grp - L&G completes transaction with Meiji Yasuda

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RNS Number : 3672R  Legal & General Group Plc  02 February 2026

 Legal & General Group Plc

 2 February 2026

L&G completes transaction with Meiji Yasuda
·      L&G completes sale of the US insurance entity and establishes long-term partnership with Meiji Yasuda, strengthening the Group's US PRT proposition.
·      This transaction generates £1.2bn Solvency II capital and an expected IFRS profit of greater than £1.3bn, as guided at the time of signing. L&G intends to return an additional 1  £1bn to shareholders from the proceeds of this sale, bringing the Group's total planned 2026 share buyback to £1.2bn.
·      Following completion of the transaction, Meiji Yasuda will acquire a 5% economic interest in L&G, deepening the corporate relationship and further aligning interests.

 

Legal & General Group Plc ("L&G" or the "Group") today announces the
completion of the sale of its US insurance entity, comprising its US
protection and US Pension Risk Transfer ("US PRT") businesses, to Meiji Yasuda
Life Insurance Company ("Meiji Yasuda"), a Japanese mutual life insurance
company, for an equity value of $2.3bn paid in cash 2 .  By combining their
financial strength and PRT expertise, Meiji Yasuda and L&G offer a highly
compelling US PRT proposition via Banner Life, characterised by excellent
customer service, significant execution experience and long-term policyholder
security.

 

In 2025, L&G completed 15 US PRT transactions, writing c.$1.8 billion in
premium through Banner Life and William Penn. With the US PRT market
consistently exceeding $40bn in annual volumes, there remains a significant
opportunity for continued growth.

 

Following completion of the transaction, Meiji Yasuda will acquire a 5%
economic interest in L&G, deepening the corporate relationship and further
aligning interests. Meiji Yasuda and L&G continue to collaborate closely
on future opportunities as they further deepen their long-term partnership.

 

Financial information:

 

·      The Solvency II capital generation of £1.2bn reflects the net
proceeds from the transaction of £1.8bn, less the Own Funds related to the
business being sold of £1.0bn and the associated release of SCR of £0.4bn.
We expect the proforma Full Year 2025 Solvency II coverage ratio to increase
by c. 7 ppts 3 , after allowing for the anticipated share buyback of £1bn
from the proceeds of the sale.

 

·      The expected Group IFRS profit of greater than £1.3bn reflects
the difference between sale proceeds and the carrying value of the US business
in the Group's balance sheet after consolidation adjustments.

 

·      L&G intends to return an additional £1bn to shareholders
from the proceeds of the sale, bringing the total planned 2026 share buyback
to £1.2bn.

 

·      At L&G's Full Year results in March, 2025 key financial
metrics will also be presented on a proforma basis, allowing for the impact of
this transaction.

 

 

António Simões, Group Chief Executive Officer of L&G: "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 Pension Risk Transfer through a partnership with a highly
regarded, long term investor. Crucially, it supports enhanced returns for
shareholders, with a share buyback in 2026 of £1.2bn, while allowing us to
reinvest in priority growth areas to drive sustainable long-term value, and I
am delighted that Meiji Yasuda will now acquire a 5% economic interest in
L&G, further deepening our partnership."

 

 

-ENDS-

 

Notes to editors

About L&G

 

Established in 1836, L&G is one of the UK's leading financial services
groups and a major global investor, with £1.1 trillion in total assets under
management (as at HY25) of which c. 43% (c. £0.5 trillion) is international.
We have a highly synergistic business model, which continues to drive strong
returns. We are a leading player in Institutional Retirement, in Retail
Savings and Protection, and in Asset Management through both public and
private markets. Across the Group, we are committed to responsible investing
and dedicated to serving the long-term savings and investment needs of
customers and society.

 

 

Further information

Investors

 

Michelle Moore, Group Strategy & Investor Relations Director

investor.relations@group.landg.com (mailto:investor.relations@group.landg.com)

+44 203 124 3773

Gregory Franck, Investor Relations Director

investor.relations@group.landg.com (mailto:investor.relations@group.landg.com)

+44 203 124 4415

 

Media

 

Harriet de Beaufort-Suchlick, Head of External Communications, Institutional
Retirement, L&G

HarrietdeBeaufort.Suchlick@lgim.com
(mailto:HarrietdeBeaufort.Suchlick@lgim.com)

 

Headland Consultancy

 

Landg@headlandconsultancy.com (mailto:Landg@headlandconsultancy.com)

+44 20 3805 4822

 

 

 

 

 1  This buyback is incremental to the Group's existing distribution policy

 2  The transfer payment on completion was $2.6bn, following upwards purchase
price adjustments of c. $0.3bn, reflecting net asset transfers and the impact
of business performance since 1 January 2025. The combined impact of these
adjustments is broadly neutral on the capital generated from the sale.  This
remains subject to a final true-up post completion.

 3  The increase in the Solvency II coverage ratio is shown net of a Tier 2
Own Funds eligibility restriction of c. £0.2bn or 4ppts following the release
in SCR post sale, with Tier 2 Own Funds eligibility capped at 50% of the Group
SCR.  The total temporary eligibility restriction within the proforma YE 25
Group Solvency II coverage ratio is expected to be c.£0.5bn/c.7ppts.

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