MetLife in $19.2 Billion Reinsurance Deal, Boosts Share Buyback Plans
May 25 2023 - 6:43AM
Dow Jones News
By Robb M. Stewart
MetLife has reached a deal with Global Atlantic Financial Group
to reinsure roughly $19.2 billion of U.S. retail life insurance and
fixed annuity statutory reserves, while also unveiling plans to
boost its share buyback program by $1 billion.
The financial services company said Thursday the deal with
Global Atlantic will reinsure U.S. retail universal life, variable
universal life, universal life with secondary guarantees and fixed
annuity statutory reserves.
The value of the transaction is expected to be about $3.25
billion, with a ceding commission of $2.25 billion and $1 billion
of capital that will be released, MetLife said.
The company said the transaction will accelerate the run-off of
its legacy business and is expected to positively impact several
key financial metrics, including adding to adjusted earnings per
share and contributing to its 13% to 15% adjusted return on equity
target. The transaction is expected to close in the second half of
2023, it said.
MetLife said its board has approved a $1 billion increase to its
share repurchase authorization, bringing the total buyback
authorization outstanding to roughly $4 billion.
Write to Robb M. Stewart at robb.stewart@wsj.com
(END) Dow Jones Newswires
May 25, 2023 07:28 ET (11:28 GMT)
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