MetLife to Sell Auto & Home Business to Zurich Insurance Group Subsidiary Farmers Group, Inc. for $3.94 Billion
11 December 2020 - 4:46PM
Business Wire
Transaction includes strategic partnership
through which Farmers Insurance® will offer products on MetLife’s
leading U.S. Group Benefits platform
MetLife, Inc. (NYSE: MET) today announced that it has signed a
definitive agreement to sell Metropolitan Property and Casualty
Insurance Company and certain wholly owned subsidiaries to Farmers
Group, Inc. (FGI), a subsidiary of Zurich Insurance Group, for
$3.94 billion in cash, subject to the terms therein. FGI has
informed MetLife that it will sell the insurance operations to the
Farmers Exchanges.
In connection with the transaction, MetLife and the Farmers
Exchanges have established a 10-year strategic partnership through
which Farmers Insurance® (Farmers) will offer its personal lines
products on MetLife’s industry-leading U.S. Group Benefits
platform, which today reaches 3,800 employers and approximately 37
million eligible employees. Farmers will also gain access to
MetLife’s network of 7,700 independent agents and assume
responsibility for MetLife’s existing retail property and casualty
customers.
Commenting on the sale and the partnership, MetLife President
and CEO Michel Khalaf said:
“Following our recently announced acquisition
of Versant Health, which will catapult MetLife to the No. 3 vision
care provider in the U.S. by membership, this transaction is
another bold step in the execution of our Next Horizon strategy. It
will allow us to focus on our core strengths, simplify the company
operationally, and further differentiate our offering in the
critically important employee benefits space.
“The employees dedicated to MetLife Auto
& Home have built a strong business and will now become part of
one of the country’s leading personal lines insurance companies. By
combining the power of MetLife’s group benefits channel with
Farmers’ high brand recognition and 90 years of personal lines
excellence, we are enabling each company to do what it does
best.
“We look forward to continuing to meet the
expectations of our group customers, preserving strong
relationships with our distribution partners, and providing
employees across the U.S. with attractive benefits through our
partnership with Farmers.”
The 10-year strategic partnership will provide MetLife’s
existing group benefits customers with continuity in account
management while adding Farmers industry-leading products to the
platform. MetLife is the market leader in the U.S. group benefits
space, offering over 35 group products and services – the most in
the industry – and serving tens of millions of U.S. employees and
their dependents.
MetLife and Farmers are targeting the transaction to close in
the second quarter of 2021, subject to customary closing
conditions, including regulatory approvals. MetLife expects to
report its property & casualty business as a divested business
in the first quarter 2021. Rothschild & Co acted as financial
advisor and Debevoise & Plimpton LLP served as legal counsel to
MetLife in connection with this transaction.
# # #
About MetLife
MetLife, Inc. (NYSE: MET), through its subsidiaries and
affiliates ("MetLife"), is one of the world's leading financial
services companies, providing insurance, annuities, employee
benefits and asset management to help its individual and
institutional customers navigate their changing world. Founded in
1868, MetLife has operations in more than 40 markets globally and
holds leading positions in the United States, Japan, Latin America,
Asia, Europe and the Middle East. For more information, visit
www.metlife.com.
Forward-Looking Statements
The forward-looking statements in this news release, such as
“expect” and “target,” are based on assumptions and expectations
that involve risks and uncertainties, including the “Risk Factors”
MetLife, Inc. describes in its U.S. Securities and Exchange
Commission filings. MetLife’s future results could differ, and it
has no obligation to correct or update any of these statements.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20201210006255/en/
Media Contact: Randy Clerihue, 646-552-0533 Investor Contact:
John Hall, 212-578-7888
MetLife (NYSE:MET)
Historical Stock Chart
From Mar 2024 to Apr 2024
MetLife (NYSE:MET)
Historical Stock Chart
From Apr 2023 to Apr 2024