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.