MetLife has signed an settlement with Talcott Decision Life Insurance coverage Firm to reinsure round $10bn of US retail variable annuity and rider reserves.
This transfer is anticipated to scale back MetLife’s enterprise threat, whereas dashing up the run-off of its legacy enterprise.
The transaction, valued at round $250m, contains ceding fee and capital launched over time.
It’s a part of MetLife’s technique to handle threat inside MetLife Holdings, the closed-block companies of the corporate’s former US Retail section.
MetLife is predicting a discount in retail variable annuity tail threat, reducing account values by an estimated 40%.
The construction of the reinsurance transaction contains each modified coinsurance and funds withheld preparations.
The completion of the deal, anticipated within the second half of 2025, is contingent upon regulatory approvals and different customary situations.
MetLife Funding Administration has additionally secured mandates to handle roughly $6bn of property below funding administration agreements with Talcott.
MetLife president and CEO Michel Khalaf stated: “This transaction represents one other instrument in our toolkit that’s obtainable to generate long-term worth. It should cut back enterprise threat and bolster MetLife’s place as a elementary, all-weather performer. Our capability to decrease threat and efficiently navigate unsure and altering environments advantages our shareholders and all our different stakeholders.”
MetLife reported web earnings of $879m within the first quarter of 2025, a rise of 10% from $800m within the prior 12 months.
In December final 12 months, the corporate partnered with Normal Atlantic to determine Chariot Re, a Bermuda-based Class E life and annuity reinsurance firm.
