MetLife has agreed to reinsure a $9 billion block of legacy universal life policies to Talcott Resolution, continuing the insurer's multi-year strategy of shedding capital-intensive legacy products in favour of fee-based group benefits and specialty lines.
The transaction, structured as a coinsurance and funds-withheld arrangement, is expected to release approximately $700 million of statutory capital for MetLife upon close.
Buyer profile
Talcott Resolution, backed by Sixth Street and other institutional capital, has become one of the most active consolidators of legacy life and annuity blocks, having absorbed more than $60 billion of in-force business since 2021.