Meiji Yasuda plans acquisition of US-based Banner Life

The sale is estimated at $2.3b.

Meiji Yasuda Life is set to acquire Legal & General America, Inc. and its US subsidiary, Banner Life, for $2.3b.

As part of the deal, Meiji Yasuda will also acquire a 5% stake in Legal & General.

The company expects the transaction to double its overseas insurance premiums to over $6.6b (¥1t), with core profits rising to more than $660m (¥100b) from $603.24m (¥91.4b) before the acquisition. 

By 2030, Meiji Yasuda aims to increase overseas premiums to $11.6b (¥1.8t) and core profits to $1.1b (¥170b), raising the overseas business share to about 35% of total premiums.

The acquisition will be financed through Meiji Yasuda’s existing cash reserves, which stand at $5.9b (¥899b).

($1.00 = ¥151.97)