LONDON, July 11 (Reuters) - Life insurer Friends Life Group Plc
* Disposal and proposed share buy-back
* Disposal of entire share capital of its wholly-owned subsidiaries Lombard International Assurance S.A. and Insurance Development Holdings AG
* Disposal of Lombard to Blackstone for an initial consideration of 317 million pounds ($539.4 million) subject to anti-trust and regulatory approvals.
* Total consideration of up to 356 million pounds based on an additional contingent element
* Intention to return 261 million pounds to shareholders via a share buy-back programme to commence upon completion,
* Completion expected to occur in second half of 2014
* Disposal further improves our cash coverage of dividend Source text for Eikon: Further company coverage: ($1 = 0.5877 British Pounds) (Reporting by Clare Hutchison)