The details of MetLife’s restructuring of the company are beginning to take shape with this week’s announcement of the sale of their Premier Client Group (PCG). Read on for the details from MetLife.
MetLife’s sale of their Premier Client Group to MassMutual was announced earlier this week in a communication from Eric Steigerwalt, Executive Vice President, US Retail at MetLife:
“As you may know, MetLife and MassMutual have entered into an agreement whereby Mass Mutual will acquire the MetLife Premier Client Group, MetLife Securities, Inc., and related assets. This transaction will enable MetLife’s U.S. Retail business to sharpen our focus on our core strengths in product manufacturing. By divesting our affiliated distribution channel, MetLife is now even better positioned to focus on our third party distribution relationships. We will be able to prioritize investments in capabilities to help you better serve your clients. We also continue to work toward the separation of the U.S. Retail business from MetLife, and will provide additional information on the separation as the transaction unfolds. We know you have a number of questions and will do our best to answer them as soon as we can. In the meantime, we want to thank you for your continued partnership. We value your relationship and look forward to building on it over the coming months.”
The net result of this for third party distribution is likely a net positive, as it is the first step towards a leaner, more nimble insurance company focused on a singular distribution strategy. PCG represented approximately half of the sales volume in terms of premium, and a greater percentage of the application volume seen by MetLife on an annual basis. The remaining insurance unit will remain a viable, well positioned top insurance company in the United States.
As one of our core carriers we are in constant communication with MetLife’s leadership on any and all developments in this process, and will continue to communicate any details as they become available.
For additional details of this announcement, as well as the prior communication on this topic, please see the following, they are also attached: