Meiji Yasuda Life Insurance said Friday that it will acquire Banner Life Insurance for about ¥352.2 billion while investing about ¥130 billion for a 5% equity stake in the U.S. firm's parent, Britain's Legal & General Group.
The acquisition, slated to be completed by March 2026, is expected to boost Meiji Yasuda's insurance premium income by around ¥500 billion and raise its overseas insurance business ratio from 15% to 26%.
The Japanese firm's total investment in the United States will reach about ¥1.4 trillion.
Japanese life insurance companies are expanding overseas for growth as the domestic market shrinks.
Last year, Nippon Life Insurance invested in U.S. individual annuity company CoreBridge Financial and announced a plan to acquire Resolution Life Group Holdings.
Meiji Yasuda also plans to acquire American Heritage Life Insurance.
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