Summary
MetLife Inc. (MET) announced the completion of a significant reinsurance transaction with Global Atlantic Financial Group through its subsidiaries. This transaction, effective November 16, 2023, involves the ceding of approximately $19 billion of U.S. retail life insurance (including universal life, variable universal life, and fixed annuity statutory reserves) from MetLife's subsidiaries, Metropolitan Life Insurance Company (MLIC) and Metropolitan Tower Life Insurance Company (MTL), to Global Atlantic's subsidiaries, Commonwealth Annuity and Life Insurance Company (CwA) and First Allmerica Financial Life Insurance Company (FAFLIC). This move is a strategic step by MetLife to manage its capital and risk exposure. Importantly, MetLife, through its subsidiary MetLife Investment Management, LLC, will continue to manage a substantial portion of the reinsured assets for a five-year period and will also remain as the administrator and service provider for the reinsured policies. This ensures continuity for policyholders and leverages MetLife's existing operational strengths while de-risking its balance sheet.
Key Highlights
- 1Completion of a significant reinsurance transaction with Global Atlantic Financial Group.
- 2Approximately $19 billion in U.S. retail life insurance and fixed annuity statutory reserves ceded.
- 3Transaction involves MetLife subsidiaries MLIC and MTL ceding business to Global Atlantic subsidiaries CwA and FAFLIC.
- 4MetLife retains administrative and service provider roles for the reinsured policies.
- 5MetLife Investment Management will manage a significant portion of the reinsured assets under a five-year agreement.
- 6Strategic initiative to reduce capital requirements and risk exposure.
- 7Transaction closed on November 16, 2023.