** Legal & General shares fall 1.7% to 224.6pence

** The British life insurer to sell its UK housebuilder CALA Group in a deal worth 1.35 bln pounds ($1.78 bln) to an acquisition vehicle led by U.S. private assets firm Sixth Street Partners

** Analysts at Jefferies calculate the deal will lift LGEN's Solvency II ratio, a key measure of an insurer's capital strength, by 3 percentage points

** Stock top percentage loser on benchmark FTSE 100 index

** Shares down 9% this year as of last close

($1 = 0.7585 pounds)

(Reporting by Shanima A in Bengaluru)

((shanima.a@thomsonreuters.com; (Direct: +91 72 5956 7774);))