Meiji Yasuda Life has announced plans to acquire Legal & General America, Inc., along with its U.S. subsidiary, Banner Life, in a deal valued at $2.3 billion.
The acquisition will also see Meiji Yasuda take a 5% stake in Legal & General, further expanding its global reach.
Following the acquisition, Meiji Yasuda anticipates a significant boost in its overseas operations, with expected overseas insurance premiums more than doubling to over $6.6 billion (¥1 trillion). Core profits are projected to rise to more than $660 million (¥100 billion), up from $603.24 million (¥91.4 billion) prior to the deal.
Looking ahead, Meiji Yasuda has set an ambitious goal to grow its overseas premiums to $11.6 billion (¥1.8 trillion) by 2030, with core profits reaching $1.1 billion (¥170 billion). The company aims for its international business to account for approximately 35% of total premiums.
The acquisition will be financed using Meiji Yasuda’s cash reserves, which currently total $5.9 billion (¥899 billion).
($1.00 = ¥151.97)
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