(Reuters) -Canada's Brookfield Wealth Solutions agreed to acquire Just Group (JUST.L) for 2.4 billion pounds ($3.18 billion) as part of its expansion into the UK pension risk market, sending the British insurer's shares to an 11-year high.

Under the deal, Just Group shareholders will receive 220 pence per share, a 75% premium to the stock's closing price on July 30, BWS said on Thursday.

Just Group shares jumped 69% to 213 pence in early trading, its highest since March 2014.

Britain's pension insurance market has grown more competitive and lucrative over the years amid soaring demand for bulk annuities - insurance for corporate pension schemes - from companies looking to offload their pension risks.

BWS, a unit spun off from financial giant Brookfield Corporation in 2021, had announced its plans to enter the UK pension risk market in March.

Reuters had exclusively reported the Canadian company's interest in Just Group in October 2023.

"The acquisition of Just will accelerate our growth ambitions for the UK, a core region for us given its status as one of the world's preeminent pension markets combined with highly attractive investment opportunities," BWS CEO Sachin Shah said.

Just Group's board has backed the offer, saying the deal would provide the company access to greater financial resources and capital.

"It is unlikely that Just Group's shareholders will achieve better value from either another strategic buyer, or as a separately listed company in the short-to-medium term," Jefferies analysts said in a note.

The British insurer's shares have been underperforming its peers despite rising profits in recent months.

($1 = 0.7539 pounds)

(Reporting by Yamini Kalia and Aatrayee Chatterjee in Bengaluru; Editing by Sonia Cheema and Louise Heavens)

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