Zurich: buys MetLife US P&C unit

(CercleFinance.com) - Zurich said on Friday that its US unit Farmers Group has agreed to acquire MetLife's property and casualty (P&C) business in the US, together with partner Farmers Exchanges, in a deal worth 3.
9 billion dollars.

The Swiss insurer said the transaction gives Farmers Exchanges a nationwide presence, with a footing in all 50 US States.

The deal also includes a 10-year exclusive distribution agreement through which the Farmers Exchanges will offer their personal lines products on MetLife's industry-leading US Group Benefits platform.

The business to be acquired includes 2.4 million policies, 3.6 billion dollars in premiums and 3,500 employees, Zurich said.

The acquisition is expected to be earnings acretive for Zurich from the first full year after completion and is expected to deliver Zurich a return on investment of approximately 10% from 2023.

The acquisition is expected to be completed in the second quarter of 2021.

Last month Zurich said it was in talks to acquire the US property-and-casualty business (P&C) of insurance giant MetLife.

Its shares were down 2% on Friday morning after the announcement.

Copyright (c) 2020 CercleFinance.com. All rights reserved.