Japanese firm Meiji Yasuda Life Insurance has signed an agreement to acquire US-based StanCorp Financial Group, for around $5bn.
Under the deal, Meiji Yasuda will purchase all outstanding shares of StanCorp for 115.00 per share in cash, representing a 50% premium to its share price on 23 July.
Established in 1906 and based in Portland of Oregon, StanCorp provides insurance, retirement and investment products and services.
StanCorp president and CEO Greg Ness said: "This transaction is an exciting milestone for The Standard and a testament to the strength of our team, financial performance, differentiated customer service and respected brand."
StanCorp provides the products through its subsidiaries, including Standard Insurance Company, The Standard Life Insurance Company of New York, Standard Retirement Services, StanCorp Mortgage Investors, StanCorp Investment Advisers, StanCorp Real Estate and StanCorp Equities.
Through these subsidiaries, the firm provides group and individual disability insurance, group life and accidental death and dismemberment insurance, group dental and group vision insurance, absence management services, retirement plans products and services, individual annuities, and origination and servicing of fixed-rate commercial mortgage loans.
Meiji Yasuda Life Insurance president Akio Negishi said: "We have been studying opportunities in the US market for some time and The Standard stood out as our ideal partner."
Subject to customary closing conditions and regulatory approvals, the deal is expected to complete in the first quarter of 2016.
Meiji Yasuda provides group and individual life insurance, bancassurance and group annuity products. It carries out operations in the US Poland, China, Indonesia and Thailand, in addition to Japan.
Image: Meiji life insurance building in Marunouchi, Tokyo, Japan. Photo: courtesy of Volfgang.