MetLife to Help State Street Affiliates Make Commercial Mortgage Loans

Robert Merck, a senior managing director at MetLife's asset-management unit, said the State Street deal will help the unit offer borrowers a wider range of real estate financing options.

MetLife and some other life insurers have been trying to cope with the effects of low interest rates, and regulatory and accounting rule uncertainty, by expanding operations in other sectors, such as investment management and mortgage lending.

MetLife and State Street already have a commercial mortgage market relationship.

State Street's State Street Bank and Trust Company serves as the fund administrator for MetLife's MetLife Commercial Mortgage Income Fund L.P., according to a presentation MetLife prepared for the San Diego City Employees' Retirement System.

The fund has a commitment of $529 million from MetLife, including five MetLife affiliates, and aims to pay investors an annualized distribution of 6% to 7%, according to a presentation slidedeck posted by the San Diego retirement system's board.

— Read Phoenix Issues First New Annuity Since Nassau Re Deal, on ThinkAdvisor.

— Connect with ThinkAdvisor Life/Health on Facebook and Twitter.