A.M. Best Comments on Massachusetts Mutual Life Insurance Company’s Intent to Acquire MetLife, Inc.’s Retail Advisor For
March 2, 2016 by Best's News Services
Oldwick – A.M. Best has commented that the financial strength rating, issuer credit ratings, issue ratings and stable outlooks of Massachusetts Mutual Life Insurance Company (MassMutual) (Springfield, MA) and its subsidiaries are unchanged. Additionally, the under review with developing implications status of all of MetLife, Inc. (MetLife) (New York, NY) [NYSE: MET] ratings and its subsidiary ratings are unchanged.
The comment follows MassMutual’s recent announcement of a definitive agreement with MetLife to purchase its U.S.-based captive agency distribution channel, MetLife Premier Client Group (MPCG), and broker dealer, MetLife Securities, Inc. (MSI). MPCG is a retail distribution operation with more than 40 local sales and advisory operations and approximately 4,000 advisors across the country. It is expected the combined agency sales force will increase by approximately 70%. MassMutual is one of the top providers of whole life insurance and expects this trend to continue and potentially improve. A.M. Best notes that MetLife will continue to market its retail life and annuity products through third-party and direct distribution channels and will be the exclusive developer of certain annuity products to be issued by MassMutual.
A.M. Best views the acquisition favorably, as it brings additional scale to MassMutual’s existing captive distribution sales force and increased opportunities to expand their product portfolio. Following some one-time integration and infrastructure expenses, the acquisition is expected to be accretive to earnings. The transaction is expected to close by mid-2016 and is subject to certain closing conditions, including regulatory approval.
This press release relates to rating(s) that have been published on A.M. Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see A.M. Best’s Recent Rating Activityweb page.
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BN-NJ-3-1-2016 0900 ET #
