- New York-based MetLife announced plans to separate much of its U.S. retail business and focus on businesses with lower capital requirements and greater cash returns.
- Officials are considering one of three options: An independent, publicly traded company; a spin-off; or a sale.
- MetLife said it will remain competitive in the domestic employee benefits and pension and retirement markets through its Group, Voluntary, and Worksite Benefits and Corporate Benefit Funding segments.
Included in the new company will be MetLife Insurance Company USA, General American Life Insurance Company, Metropolitan Tower Life Insurance Company and several subsidiaries, according to the parent company. MetLife would retain the life insurance closed block, property-casualty, and life and annuity business sold through Metropolitan Life Insurance Company.
The new entity will represent roughly 20% of MetLife’s operating earnings and 50% of the operating earnings of its domestic retail business, the firm said.
“An independent company would benefit from greater focus, more flexibility in products and operations, and a reduced capital and compliance burden, Chairman and CEO Steven Kandarian said in a statement.
The separation would also allow MetLife to devote more resources to its group business, where it has “long been the market leader,” he added.
MetLife’s stock rallied on the news, LifeHealthPro reported.