Japan's Meiji Yasuda Life Insurance Company In US$5.0 Billion Acquisition

With the demographics showing the domestic Japanese population declining, Japanese insurance companies have been using their reserves to expand into overseas markets with younger and more dynamic population growth patterns.

In the latest deal Meiji Yasuda Life Insurance Company has agreed a takeover of the Oregon-based StanCorp Financial Group.

The Transaction brings together two market leaders in group insurance and marks a significant step in Meiji Yasuda’s international growth strategy. StanCorp will continue to operate under The Standard brand and maintain current operations, headquarters, employees, community support and management team, and become Meiji Yasuda’s primary U.S. presence and partner.

Speaking in Tokyo Akio Negishi, President of Meiji Yasuda, said, “We are very pleased to welcome The Standard to the Meiji Yasuda family and to make them a key pillar of our international operations. We have been studying opportunities in the U.S. market for some time and The Standard stood out as our ideal partner. In addition to our common vision and shared roots in the mutual business, like Meiji Yasuda, The Standard is a leader for group insurance in its market and has a strong franchise, talented management team and employee base, and a track record of strong operational and financial performance and disciplined growth. Together, we will provide high-quality, comprehensive insurance services that deliver value to our customers.”

The all-cash premium transaction provides substantial and immediate value for StanCorp’s shareholders. The acquisition price represents a 50.0 percent premium to StanCorp’s share price as of the close of business on July 23, 2015, and a 49.9 percent premium to StanCorp’s one-month-weighted average share price. The total transaction value is approximately $5.0 billion.

Meiji Yasuda Life Insurance Company is headquartered in Tokyo, and is the oldest and third largest life insurance company in Japan. It provides a variety of group and individual life insurance products, bancassurance, and group annuity products in Japan. It also has insurance operations in the U.S., Poland, China, Indonesia, and Thailand.

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