Zurich Insurance Group subsidiary Farmers Group, Inc. has announced plan to acquire MetLife’s property and casualty business in the United States with the Farmers Exchanges for USD 3.94 Billion. Zurich will add USD 2.43 Billion through FGI and the Farmers Exchanges USD 1.51 Billion. Farmers Exchanges will benefit by having a nationwide presence and access to new distribution channels with the potential to accelerate growth. Including a 10-year exclusive distribution agreement where Farmers Exchanges will offer personal lines products on MetLife’s U.S. Group Benefits platform which today reaches 3,800 companies and 37 million employees. “The acquisition significantly increases the potential for growth at the Farmers Exchanges and will further boost the share of Zurich’s profits linked to stable fee-based earnings,” said Zurich Group Chief Executive Officer Mario Greco. “Together with the continued increase in rates in commercial insurance, this transaction will strengthen our ability to achieve our 2022 targets.”
”The acquisition of MetLife’s P&C business is a unique opportunity to accelerate growth and to achieve a significant presence in all 50 states,” said Jeff Dailey, Chief Executive Officer of Farmers Group, Inc. “MetLife’s distribution channels complement the Farmers Exchanges’ existing strength in the exclusive agent channel, deepen their presence in the fast-growing independent agent channel and provides entry into the worksite marketing channel via a leading platform, with the 10-year exclusive distribution agreement through MetLife Group Benefits.”
Subject to regulatory approvals, the transaction is expected to close in the second quarter of 2021.