In a possible tie-up that some Wall Road analysts, in response to the WSJ, name a superb deal for MetLife shareholders, Zurich Insurance coverage Group has confirmed that it’s in superior negations by way of its Farmers Group to amass MetLifes auto and residential insurance coverage unit. A Reuters report suggests the deal might fetch round $Four billion.
Whereas MetLife has been increasing its advantages applications, having lately agreed to purchase imaginative and prescient insurer Versant Well being for $1.7 billion, its P&C division has suffered robust competitors from rivals like GEICO, Progressive and State Farm.
The deal comes after a poor third quarter for MetLifes P&C division adjusted earnings at its US property and casualty arm slumped 68% to simply $18 million on $3.7 billion of premiums, 66% of which was from auto protection, with the remaining third being residence insurance coverage. The poor outcomes adopted the corporates greatest pure disaster losses in a decade, which overwhelmed the development in auto claims in the course of the COVID pandemic.
Though the insurers share worth has practically doubled from its March $23 low, it’s nonetheless languishing beneath the $52 it reached in late February.
Farmers Insurance coverage Group ranked ninthwithin the US for P&C premiums final 12 months, accounting for just below 3% of the market.
How they stack up
High 10 Property & Casualty Insurers by premiums written
Sources near the negotiations have indicated that the plan is to announce the deals phrases subsequent month, so long as no unexpected glitches come up.
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