US insurer MetLife has completed the acquisition of Citigroup's Travelers Life & Annuity and all of Citigroup's international insurance businesses for $11.8 billion, making it the biggest life insurer in the US.
MetLife will pay Citigroup $10.8 billion in cash and approximately 22.4 million shares of MetLife common stock with a value of approximately $1 billion. Making the final purchase price $11.8 billion, slightly more than the $11.5 billion Metlife suggested it would pay back in January.
As part of the transaction, MetLife products will be available through certain Citigroup distribution channels, including Smith Barney, Citibank branches, and Primerica in the US, as well as a number of international businesses, under ten-year agreements.
As part of the transaction, Metlife has agreed a deal with Citigroup to acquire CitiStreet Associates, a division of CitiStreet and a provider of healthcare and education related insurance products. This transaction is expected to close on September 1, 2005.
This transaction significantly increases our size and scale in our core insurance and annuity products and expands our presence in the retirement and savings and international markets, said Robert Benmosche, chairman and CEO of MetLife.