Summary
MetLife Inc. announced on February 14, 2014, that it has entered into a definitive agreement to sell its wholly-owned subsidiary, MetLife Assurance Limited, to Rothesay Life Limited. This subsidiary is held by MetLife European Holdings LLC, an indirect unit of MetLife Inc. The divestiture is part of MetLife's ongoing strategic initiatives and is expected to close in the second quarter of 2014, pending regulatory approvals and customary closing conditions. Investors should note that MetLife expects to recognize a pre-tax charge of approximately $350 million to $390 million related to this sale in the first quarter of 2014. The net proceeds from the transaction are anticipated to be utilized for general corporate purposes. This sale signals a strategic shift, potentially focusing resources on core or higher-growth markets.
Key Highlights
- 1MetLife is selling its subsidiary, MetLife Assurance Limited, to Rothesay Life Limited.
- 2The transaction is expected to close in the second quarter of 2014.
- 3MetLife anticipates recording a charge of $350 million to $390 million (net of tax) in Q1 2014 related to the sale.
- 4Proceeds from the sale will be used for general corporate purposes.
- 5The sale is subject to regulatory approvals and other closing conditions.
- 6MetLife Assurance Limited is a wholly-owned subsidiary held by MetLife European Holdings LLC.