Legal & General: Good News Keeps Coming from London

LGEN is on its path to growth. How to decipher the deal with Meiji Yasuda.

This morning Legal & General stock (LGEN in London) jumped in response to the company’s announcement of selling its US protection business to Japanese life insurer Meiji Yasuda.

In my view, the deal is brilliant for LGEN. However, I am writing this shortly after the announcement. Although I watched the related presentation, the connection was breaking off and the Q&A session was full of accounting details that I may have missed or misunderstood at times. It will not affect the main points though.

I will not review LGEN’s business as I already wrote about it here and here. Keep also in mind that many life insurers, including LGEN, are implementing Apollo/Athene’s model (though they never mention it directly) which I explained in this post. The knowledge of the model would be useful to understand the strategic impact of the transaction.