8-KRegulation FDExhibits & Filings

METLIFE INC 8-K Report, Regulation FD Disclosure (Dec 11, 2024)

Filed December 11, 2024For Securities:METMET-PEMET-PFMET-PA

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.

Frequently Asked Questions

Chariot Reinsurance, Ltd. (Chariot Re) is a new, third-party offshore reinsurance company that MetLife, Inc. is co-forming with General Atlantic. MetLife will be a minority equity investor and its investment management arm will serve as an asset manager for Chariot Re, alongside General Atlantic.

Chariot Re is initially expected to reinsure approximately $10 billion of MetLife's statutory reserves associated with structured settlement and group annuity contracts, primarily from pension risk transfer business. This amount is subject to adjustment based on the capital raised for Chariot Re.

MetLife anticipates Chariot Re will launch in the first half of 2025. The launch is contingent upon receiving all necessary regulatory approvals, including from the Bermuda Monetary Authority (for which conditional approval has been received), and other customary closing conditions.

MetLife expects this transaction to initially result in an increase of approximately $1 billion in available capital. This is a positive development as it suggests an improvement in MetLife's capital position and efficiency.