Best’s News & Research Service - April 07, 2021 05:41 PM (EDT)
WOODLAND HILLS, Calif. //BestWire// - Farmers Group Inc. and Farmers Exchanges have completed their acquisition of MetLife Inc.’s U.S. property/casualty business for $3.94 billion, assuming 2.4 million in-force policies, the companies announced April 7.
Jeff DaileyThe deal expands Farmers’ customer reach and strengthens its position as a leading personal lines carrier, the companies said in a statement.
“The completion of this transaction represents a new milestone in our organization’s nearly 100-year history that will help accelerate growth, diversify our distribution and position Farmers for the future,” said Jeff Dailey, chief executive officer for Farmers Group. “Farmers-branded products will now be available nationwide, providing consumers from coast to coast with more choices and opportunities to engage with Farmers when shopping for auto and home coverage.”
As part of the transaction, the Farmers Exchanges entered into a 10-year distribution agreement with MetLife to offer Farmers personal lines products on MetLife’s U.S. Group Benefits platform, which reaches 3,800 employers and around 37 million employees, it said.
Farmers, a division of Zurich Insurance Group Ltd., will gain access to MetLife’s network of 7,700 independent agents and assume responsibility for MetLife’s existing retail property/casualty customers, Dailey said when the deal was announced (BestWire, Dec. 11, 2020).
With the deal, Farmers Exchanges will become the sixth-largest personal lines insurer in the United States, he said.
The top five writers of U.S. homeowners multiperil insurance by 2019 direct premiums written, according to BestLink, were State Farm Group, with 17.96% market share; Allstate Insurance Group, with 9.17%; USAA Group, with 6.56%; Liberty Mutual Insurance Cos., with 6.48%; and Farmers Insurance Group, with 5.71%.
The top five writers of U.S. all private passenger automobile insurance by 2019 direct premiums written were State Farm Group, with 16.28% market share; Berkshire Hathaway Insurance Group, with 13.78%; Progressive Group, with 12.25%; Allstate Insurance Group, with 10.58%; and USAA Group, with 6%.
Underwriting entities of Zurich Insurance Group Ltd. and of MetLife Inc. have current Best’s Financial Strength Ratings of A+ (Superior).
Shares of MetLife Inc. (NYSE: MET) were trading at $61.78 at the market close on April 7, up 0.89% from the previous close.
(By Timothy Darragh, associate editor, BestWeek: Timothy.Darragh@ambest.com)
FAQs
Yes, Farmers Insurance bought MetLife's home and auto insurance business.
How much did Farmers Insurance pay for MetLife? ›
WOODLAND HILLS, Calif. //BestWire// - Farmers Group Inc. and Farmers Exchanges have completed their acquisition of MetLife Inc.'s U.S. property/casualty business for $3.94 billion, assuming 2.4 million in-force policies, the companies announced April 7.
Who took over MetLife homeowners insurance? ›
All existing MetLife home and auto insurance policies are now completely handled by Farmers Insurance. All other types of MetLife coverage, such as health and life insurance, are still available from MetLife, though. MetLife was founded in 1868, and it has been completely public since 2000.
Is MetLife selling their auto and home business? ›
METLIFE COMPLETES SALE OF AUTO & HOME BUSINESS TO ZURICH INSURANCE GROUP SUBSIDIARY FARMERS GROUP, INC.
What happened to MetLife insurance? ›
Why does MetLife no longer sell individual life insurance or annuities through in-person agents? We have separated part of our U.S. business from MetLife to become its own company, called Brighthouse Financial, Inc. As a separate company, Brighthouse Financial focuses on retail products for consumers.
Is Farmers Insurance the same as MetLife? ›
Important note: As of April 2021, The Farmers Insurance Group has acquired all MetLife auto and homeowners policies. MetLife Auto & Home is no longer affiliated with MetLife, Inc and policyholders will use Farmers services to manage their accounts.
Is Farmers Insurance financially stable? ›
At the same time, AM Best has affirmed the Long-Term Issue Credit Ratings (Long-Term IR) of “bbb+” (Good) on the outstanding surplus notes of Farmers Insurance Exchange (Woodland Hills, CA) and Farmers Exchange Capital (Wilmington, DE). The outlook of these Credit Ratings (ratings) is stable.
Why are Farmers Insurance rates so high? ›
Farmers is so expensive because of agent commissions and rising costs overall for insurance companies. At $1,044 per year, the average Farmers car insurance policy is a lot more expensive than the national average of $671 per year for a policy with minimum coverage.
Who owns the Farmers Insurance company? ›
What is the new name for MetLife? ›
Today, MetLife Insurance Company USA is Brighthouse Life Insurance Company, licensed in 49 states.
NEW YORK, November 01, 2010. MetLife, Inc. (NYSE: MET) announced today that it has completed its acquisition of American Life Insurance Company (Alico) from American International Group, Inc. (AIG) for $16.2 billion.
Who is the CEO of MetLife? ›
Michel A. Khalaf is the president and chief executive officer of MetLife, Inc. (NYSE: MET), one of the world's leading financial services companies. MetLife provides insurance, annuities, employee benefits and asset management to customers in more than 40 markets around the world.
Why did MetLife sell to Farmers? ›
The closure provides the Farmers brand significant opportunity to expand its customer reach with a truly national presence, grow its core property and casualty business and strengthen its position as one of the leading personal lines carriers in the United States.
How do I check my MetLife status? ›
Can I check the status of my claim? Yes, you can. Once we receive the documents, you can call our customer service team at 1-800-638-5000 for updates. If you're filing as an individual beneficiary, we can also send you status updates via email or text if you selected one of these options when completing the claim kit.
Why did MetLife sell to MassMutual? ›
This transaction will enable our U.S. Retail business to sharpen its focus on its core strength in product manufacturing while also providing a broader distribution network through the partnership with MassMutual.
What insurance company did Farmers Insurance buy? ›
As part of the acquisition of MetLife Auto & Home business by Farmers Insurance Group®, there is a contractual obligation to remove any and all references to MetLife®, Met, MetLife Auto & Home®, and Metropolitan.
What company did MetLife became? ›
Today, MetLife Insurance Company USA is Brighthouse Life Insurance Company, licensed in 49 states.
Who did MetLife buy out? ›
MetLife Investment Management (MIM), the institutional asset management business of MetLife, Inc. (NYSE: MET), announced that it has entered into a definitive agreement to acquire Raven Capital Management, a privately-owned alternative investment firm.
Who owns Metropolitan Property and Casualty Insurance? ›
Farmers Insurance Exchange
