Zurich Insurance and Farmers Exchanges have completed the buyout of MetLife’s property and casualty business in the United States for $ 3.94 billion.
The acquired business includes 2.4 million MetLife Auto & Home policies, $ 3.6 billion in net premiums written (2019) and 3,500 employees, according to Zurich.
The deal provides the Farmers brand with an opportunity to gain a greater national presence and strengthen its position among the leading personal carriers in the United States.
Jeff Dailey, Managing Director of Farmers Group, called the deal a “milestone” in his company’s nearly 100-year history. He said Farmers brand products will now be available nationwide, “giving consumers from coast to coast more choices and opportunities to engage with farmers when purchasing auto and home insurance. . “
“This is an acquisition that complements very well… what we are seeing on the business side where the market is getting tougher,” Zurich CEO Mario Greco said last December, announcing the transaction. Reuters was the first to announce on November 20 that Zurich was in talks to buy the MetLife company.
The Swiss insurer was expected to contribute $ 2.43 billion to the operation through its Farmers Group Inc (FGI) unit, while Farmers Exchanges will contribute $ 1.51 billion, Zurich said.
MetLife President and CEO Michel Khalaf said the sale would allow the life insurer to focus on its “core strengths”.
MetLife Auto & Home’s policies will remain the same, except for the rebranding with the Farmers name, according to the company.
As part of the transaction, Farmers Exchanges entered into an exclusive 10-year distribution agreement with MetLife to offer Farmers Personal Line products on MetLife’s U.S. group benefits platform, which reaches 3,800 employers and approximately 37 million employees. eligible employees.
Farmers Group was acquired by Zurich Financial Services in 1998.
Farmers Exchanges are three reciprocal insurers (Farmers Insurance Exchange, Fire Insurance Exchange and Truck Insurance Exchange) owned by their policyholders and, together with their subsidiaries and affiliates, form the Farmers Insurance Group of Companies. Farmers Group, Inc. and its subsidiaries provide administrative and management services to Farmers Exchanges.
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