MetLife to spin off life insurance operations after weighing IPO
October 6, 2016 by Carl Surran
MetLife (NYSE:MET) +2.2% AH after confirming that it filed for a spinoff of its U.S. life insurance unit after considering alternate plans to sell the business or exit through an IPO.
At least 80% of the shares in Brighthouse Financial will be distributed to MET investors under the plan, with the timing of the transaction depending on variables including regulatory considerations and economic conditions, the parent company says.
MET says it will continues to evaluate possible other alternatives for the separation, including an IPO or a sale.
Brighthouse is expected to be one of the 15 largest life insurers in the U.S., with ~$240B in total assets; its new CEO will be Eric Steigerwalt, currently a MET executive VP in charge of the business that is becoming Brighthouse.
