Summary
MetLife, Inc. (MET) announced on December 11, 2024, the anticipated launch of Chariot Reinsurance, Ltd. ("Chariot Re"), a new third-party offshore reinsurance company. This venture, developed in partnership with General Atlantic, will leverage MetLife Investment Management and General Atlantic as asset managers, with both entities making minority equity investments in Chariot Re. MetLife has secured conditional approval from the Bermuda Monetary Authority for registration in Bermuda, indicating significant progress towards the launch targeted for the first half of 2025, pending regulatory approvals and other closing conditions. This strategic initiative involves MetLife initially ceding approximately $10 billion of statutory reserves related to structured settlement and group annuity contracts from pension risk transfers to Chariot Re. The company anticipates this transaction will result in an estimated increase of approximately $1 billion in available capital. Investors should view this as a move to enhance capital efficiency and potentially de-risk a portion of its balance sheet by transferring specific annuity liabilities to a new reinsurance entity.
Key Highlights
- 1MetLife announces formation of Chariot Reinsurance, Ltd. (Chariot Re), a third-party offshore reinsurer.
- 2Partnership with General Atlantic, with both companies making minority equity investments.
- 3Chariot Re to utilize MetLife Investment Management and General Atlantic as asset managers.
- 4Conditional approval received from Bermuda Monetary Authority for registration in Bermuda.
- 5Targeting initial ceding of approximately $10 billion of statutory reserves from pension risk transfer annuity contracts.
- 6Anticipated launch in the first half of 2025, subject to regulatory approvals and closing conditions.
- 7Expected to result in an initial increase of approximately $1 billion in available capital for MetLife.