By Giulia Petroni 
 

Zurich Insurance Group AG's subsidiary Farmers Group, Inc. has agreed to acquire MetLife Inc.'s property-and-casualty business in the U.S. with the Farmers Exchanges for $3.94 billion.

The Swiss insurance company said Friday that it will contribute $2.43 billion, while the Farmers Exchanges will contribute $1.51 billion. The purchase price is subject to adjustments, it said.

Zurich Insurance said the acquisition is expected to contribute to its earnings from the first full year after completion and generate a return on investment of around 10% from 2023.

The transaction, which is subject to regulatory approvals, is expected to occur in the second quarter of 2021.

 

Write to Giulia Petroni at giulia.petroni@wsj.com

 

(END) Dow Jones Newswires

December 11, 2020 01:18 ET (06:18 GMT)

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