Farmers to Buy MetLife’s P&C Insurance Unit for $4 Billion
MetLife has entered into an agreement to sell MetLife Auto & Home to Farmers Group Inc., a subsidiary of Zurich Insurance Group, for $4 billion.
The transaction is subject to customary closing conditions and regulatory approvals and is targeted to close in the second quarter of next year. If the deal is approved, Zurich stands to gain a nationwide U.S. presence and access to MetLife’s distribution channels.
Farmers Insurance® (Farmers) is a top-ten national P&C insurance provider with best-in-class servicing and more than 90 years of putting customers first, according to a joint communication to MetLife independent agents by both companies. “With a primary focus on P&C and a broad range of competitive products, they have the experience and scale to continue to help you grow your business.”
The MetLife deal is expected to contribute to Zurich’s earnings from the first full year after its completion in the second quarter and deliver a return on investment of approximately 10 percent from 2023, according a statement by Zurich.