MetLife Inks $19.2 Bln Risk Transfer Deal With Global Atlantic; Approves $1 Bln Share Buyback

RTTNews | 1212 days ago
MetLife Inks $19.2 Bln Risk Transfer Deal With Global Atlantic; Approves $1 Bln Share Buyback

(RTTNews) - MetLife, Inc. (MET) announced Thursday it has entered into an agreement with Global Atlantic Financial Group, a retirement and life insurance company, to reinsure approximately $19.2 billion U.S. retail life insurance and fixed annuity statutory reserves with Global Atlantic, including $14 billion of U.S. retail life insurance.

These are comprised of universal life, variable universal life, universal life with secondary guarantees, and $5.2 billion fixed annuity statutory reserves.

The combined value of the transaction is expected to be approximately $3.25 billion with a ceding commission of $2.25 billion and $1 billion of capital that will be released.

The transaction will accelerate the run-off of MetLife's legacy business and is the latest tactical milestone in executing across the company's Next Horizon strategic pillars of focus, simplify and differentiate. MetLife anticipates that the transaction will positively impact several key financial metrics.

The reinsurance transaction is structured on a coinsurance and modified coinsurance basis. The transaction is expected to close in the second half of 2023, subject to receipt of required regulatory approvals.

In addition, MetLife's Board of Directors has approved a $1 billion increase in the company's share repurchase authorization. This is incremental to the $3 billion authorization announced earlier in May 2023, and brings MetLife's total share repurchase authorization outstanding to roughly $4 billion.

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