The deal amounts to $115 per share, or a price about 50 percent higher than the recent stock price.
StanCorp, a company founded in 1906, has been a top player in the U.S. disability insurance market and a major player in the annuity and group life markets. StanCorp has headquarters in Portland Ore., and 2,800 employees. In 2014, it generated $2.1 billion in revenue.
Meiji Yasuda was founded in 1881 and has its headquarters in Tokyo. The company is the third largest life insurer in Japan and a leader in the country’s group life market. It has about 41,000 employees around the world, with major operations in the United States, Poland, China, Indonesia and Thailand. It reported the equivalent of about $28 billion premium revenue and other income in 2014.
StanCorp posted second-quarter earnings Thursday and said it did well. The company reported $64 million in net income for the quarter on $734 million in revenue, up from $41 million in net income on $707 million in revenue for the second quarter of 2014.
But the company has been struggling with the same severe slump in interest rates that has plagued other insurers with long-term obligations. The average rate on new investments fell to 4.41 percent during the quarter, from 4.56 percent a year earlier.
Meiji Yasuda said it would keep StanCorp and its headquarters in Portland intact and not make major changes in the company’s operations. Although Meiji Yasuda already has a division, the Pacific Guardian Insurance Company Ltd. unit, in the United States, it intends to make StanCorp its primary presence in the United States, the companies say.
Gregg Ness, the president of StanCorp, would continue to run that business.