Zurich Ins. in Talks to Acquire MetLife Unit for $4 Billion
Tuesday, 11 24 2020, Category: Insurance and Reinsurance, Country: United States
Switzerland’s Zurich Insurance Group AG is in advanced talks to acquire MetLife Inc.’s U.S. property and casualty (P&C) car and home insurance unit for close to $4 billion, according to people familiar with the matter.
Zurich Insurance issued a statement late on Friday confirming it was in discussions to acquire MetLife’s U.S. property and casualty business and cautioning that no deal was certain. It did not comment on the value of the deal.
The deal, executed through its Farmers Group Inc subsidiary, would expand Zurich Insurance’s P&C business, as the industry grapples with fallout from the COVID-19 pandemic, which drove up claims for business interruptions and event cancellations.
It would also allow MetLife to exit a business in which it faces fierce competition from larger players such as State Farm, GEICO and Progressive Insurance.
Its P&C business focuses more on car insurance, an area in which people have made fewer claims due to spending less time on the road during the pandemic.
If the negotiations conclude successfully, a deal could be announced by early December, the sources said.
Source: Insurance Journal