Japan's Meiji Yasuda Life Insurance to buy StanCorp Financial for $5 bn

Japan's Meiji Yasuda Life Insurance Co today struck a deal to buy US-based StanCorp Financial Group Inc for $5 billion.

Japan's Meiji Yasuda Life InsuranceMeiji Yasuda, Japan's third-largest life insurer by premium revenue, will pay $115 per share for StanCorp, a 50-per cent premium to StanCorp's Thursday closing price. 

Founded more than a century ago, StanCorp is a leading provider of group life and disability insurance in the US life insurance market.

The Portland, Oregon-based company operates in all 50 US states, has about $2 billion in premium revenues and posted a 2014 net profit of $210 million.

Meiji Yasuda said that the deal will significantly expand the scope its offerings in overseas markets and will rise to approximately 13 per cent on the basis of premium income and approximately 9 per cent on the basis of adjusted profit, based on results as of fiscal year ending December 2014.

Created through the 2004 merger between Meiji Mutual Life Insurance Company and Yasuda Mutual Life Insurance Company, Meiji Yasuda is one of the oldest and largest insurers in Japan.

Its local competitors are Tokio Marine Holdings, Dai-ichi Life Insurance Co and Nippon Life Insurance Co.