BUZZ-British insurer L&G hits nearly 2-year high on sale of US protection unit

British life insurer Legal & General's LGEN.L shares up ~8% at 257.3; highest since March 2023

Stock at its biggest intraday gain since November 2020

Says it will sell its U.S. protection business to Japan's Meiji Yasuda for $2.3 bln in cash

The companies will form a strategic partnership, with Meiji Yasuda holding a 20% stake in L&G's US Pension Risk Transfer business, and the Japanese insurer will also acquire a nearly 5% stake in L&G

L&G plans to launch a share buyback programme of an extra 1 bln pounds ($1.24 bln) after the sale

Co plans to use 400 mln pounds to fund the U.S. Pension Risk Transfer reinsurance arrangement

Expects transaction to complete by the end of 2025

L&G says deal also reflects its plan to simplify its portfolio to focus on its core businesses

"In our view, this deal represents compelling value and represents a high P/E multiple for the business sold," says analysts at Jefferies

As of last close, LGEN up ~4% YTD

($1 = 0.8040 pounds)