New York: Switzerland’s Zurich Insurance Group AG is in advanced talks over acquiring MetLife Inc’s US property and casualty (P&C) for a nearly $ 4 billion car and home insurance unit, according to people familiar with the matter.
Zurich Insurance issued a statement late Friday confirming that it was in talks to acquire MetLife’s US property and casualty business, and warned that no deal was certain. It does not comment on the value of the transaction.
The deal, carried out by its Farmers Group Inc subsidiary, will expand Zurich Insurance’s Z&Z business as the industry struggles with the outbreak of the COVID-19 pandemic, leaving claims for business interruptions and cancellations of events increase.
It will also enable MetLife to leave a business in which it faces strong competition from major players such as State Farm, GEICO and Progressive Insurance.
Its P&C business focuses more on car insurance, an area in which people have filed fewer claims due to less time on the road during the pandemic.
If the negotiations are completed successfully, an agreement could be announced in early December, the sources said.
MetLife declined to comment.
MetLife, whose offering also includes life insurance, employee benefits and asset management, reported a 68% decline in third-quarter adjusted earnings at its U.S. real estate and casualty division to $ 18 million earlier this month.
The decline was driven by catastrophic losses caused by storms in the United States, he said.
New York CEO Michel Khalaf said in his latest quarterly earnings call that the P&C company has a key strategic commitment to the rest of MetLife, but declined to comment on whether it would do not sell.
MetLife is turning to transactions to move to more profitable areas.
The company said in September that Versant Health would buy a $ 1.68 billion vision care company, making it the third largest vision insurer in the United States through membership. .
Zurich Insurance’s US footprint currently includes Farmers Group, an administrator of insurance policies for Farmers Insurance. Zurich Insurance acquired Farmers Group in 1998, while Farmers Insurance is owned by its policyholders.
Source: Gulf News