Summary
MetLife, Inc. has announced a significant strategic divestiture and capital return initiative. The company has agreed to sell its property and casualty (P&C) business to Farmers Group, Inc. for approximately $3.94 billion in cash. This sale represents a substantial cash inflow for MetLife and allows for a strategic refocusing of its operations. The transaction is expected to close in the second quarter of 2021, pending regulatory approvals. In parallel, MetLife's Board of Directors has approved a new $3 billion authorization for common stock repurchases, indicating a strong commitment to returning capital to shareholders. This follows the completion of previous buyback programs. Investors should note that the forward-looking statements in this release are subject to risks and uncertainties, and actual results may differ.
Key Highlights
- 1MetLife agrees to sell its property & casualty (P&C) business to Farmers Group, Inc. for approximately $3.94 billion in cash.
- 2The sale price is fixed and not subject to adjustments based on business performance or economic conditions.
- 3A strategic relationship will be established for Farmers Insurance® to offer personal line products on MetLife’s U.S. Group Benefits platform.
- 4The transaction is targeted to close in the second quarter of 2021, subject to regulatory approvals and other closing conditions.
- 5MetLife's Board of Directors has approved a new $3 billion authorization for common stock repurchases.
- 6The company has completed repurchases under its prior stock buyback authorization, signaling ongoing capital return to shareholders.