MetLife to sell its unit to Zurich Insurance for $3.94 billion

Friday, 11. December 2020 07:58

Zurich Insurance Group AG's subsidiary Farmers Group Inc. announced on Friday it will acquire MetLife Inc.'s property-and-casualty business in the United States with the Farmers Exchanges for $3.94 billion. The Swiss insurer added it will give $2.43 billion, while the Farmers Exchanges will provide $1.51 billion.

Zurich Insurance said the acquisition is expected to contribute to its earnings from the first full year after completion and generate a return on investment of around 10% from 2023.

"The acquisition significantly increases the potential for growth at the Farmers Exchanges and will further boost the share of Zurich’s profits linked to stable fee-based earnings," Zurich Chief Executive Officer Mario Greco said.

Related Links: MetLife Inc. (Metropolitan Life Insurance Company)
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Breaking the News / TF