One of the world's biggest insurers hopes to be a lot bigger by Sept. 30.[@@]
The insurer, MetLife Inc., New York, has agreed to acquire Travelers Life & Annuity and some international insurance operations from Citigroup Inc., New York, for $11.5 billion in cash and stock.
MetLife and Citigroup have received approval for the deal from their boards, and they say they hope to complete it sometime this summer.
Completing the deal would make MetLife the biggest individual life insurer in North America, MetLife says.
In addition to Travelers Life's U.S. life and annuity operations, MetLife would get Citigroup insurance companies in Argentina, Austria, Belgium, Brazil, Poland and the United Kingdom; Citigroup joint venture stakes in Hong Kong and Japan; and Citigroup insurance offices in China.
Citigroup would be keeping its life insurance business in Mexico.
The deal also could expand MetLife's ability to sell through banks and securities brokers, by establishing a 10-year agreement that could help MetLife sell more products through Citibank bank branches, the Citigroup Smith Barney securities brokerage and the Citigroup Primerica financial services distribution organization.
