8-KOther EventsExhibits & Filings

METLIFE INC 8-K Report, Corporate Update (Sep 12, 2008)

Filed September 12, 2008For Securities:METMET-PEMET-PFMET-PA

Summary

This 8-K filing from MetLife Inc. (MET) on September 12, 2008, primarily announces the final exchange ratio and preliminary results for its exchange offer related to the split-off of Reinsurance Group of America, Incorporated (RGA). This transaction marks a significant strategic shift for MetLife as it divests its reinsurance segment. The split-off involves MetLife receiving approximately $1.3 billion worth of its own shares (treasury stock) and distributing RGA Class B common stock to its stockholders, valued at approximately $1.7 billion book value as of June 30, 2008. The company anticipates a net loss on this disposition, estimated between $0.4 billion and $0.5 billion, which will be finalized upon closing. Following the transaction, RGA's results will be classified as discontinued operations, and MetLife's reinsurance segment will be eliminated.

Key Highlights

  • 1MetLife announced the final exchange ratio and preliminary results for the split-off of Reinsurance Group of America, Inc. (RGA).
  • 2The company will receive approximately $1.3 billion of its own common stock back from stockholders.
  • 3MetLife will distribute RGA Class B common stock to its stockholders, with a book value of approximately $1.7 billion as of June 30, 2008.
  • 4An estimated net loss of $0.4 billion to $0.5 billion is anticipated on the disposition of RGA, including transaction costs.
  • 5The results of RGA will be treated as discontinued operations effective with the closing of the exchange offer.
  • 6MetLife's reinsurance segment will be eliminated as a result of this transaction.

Frequently Asked Questions

The primary purpose is to announce the final exchange ratio and preliminary results of MetLife's exchange offer for the split-off of its subsidiary, Reinsurance Group of America, Incorporated (RGA).

MetLife anticipates a net loss of approximately $0.4 billion to $0.5 billion on the disposition of RGA, which includes transaction costs. The company will also record RGA's results as discontinued operations, effectively eliminating its reinsurance segment.

MetLife is receiving approximately $1.3 billion worth of its own common stock (treasury stock) from its stockholders and is distributing RGA Class B common stock, which had a book value of about $1.7 billion to MetLife as of June 30, 2008.

The results of RGA will be presented as discontinued operations, and MetLife's reinsurance segment will be eliminated effective with the closing of the exchange offer. These changes will be reflected in MetLife's Form 10-Q for the period ending September 30, 2008.