MetLife plans separation of US retail segment
US insurer MetLife has unveiled plans to separate a substantial portion of its US retail insurance segment.
MetLife is currently evaluating structural alternatives for such a separation, including a public offering of shares in an independent, publicly traded company, a spin-off, or a sale.
MetLife Insurance Company USA, General American Life Insurance Company, Metropolitan Tower Life Insurance Company and several subsidiaries that have reinsured risks underwritten by MetLife Insurance Company USA would be included in the new company.
The parts of the US retail segment that would stay with MetLife are: the life insurance closed block, property-casualty, and the life and annuity business sold through Metropolitan Life Insurance Company (MLIC).
However, MLIC would no longer write new retail life and annuity business post-separation.
The new business is to be led by Eric Steigerwalt, executive vice president of MetLife.
“At MetLife our goal is to create long-term value for our shareholders and deliver exceptional customer experiences,” said Steven Kandarian, chairman, president and chief executive officer of MetLife.
“As a result of our accelerating value strategic initiative, MetLife has been evaluating opportunities to increase sustainable cash generation and is directing capital to businesses where we can achieve a clear competitive advantage and deliver a differentiated value proposition for customers.
“This separation would also bring significant benefits to MetLife as we continue to execute our strategy to focus on businesses that have lower capital requirements and greater cash generation potential.”
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