MetLife is reportedly looking to sell the business for nearly $4bn

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Zurich Insurance looking to acquire MetLife’s US P&C business. (Credit: Zurich)

Zurich Insurance Group has confirmed that it is in talks with MetLife regarding a potential acquisition of the latter’s property and casualty (P&C) business in the US.

The Swiss insurer said that its fully-owned subsidiary Farmers Group is proposing to buy the MetLife unit in conjunction with Farmers Exchanges.

Zurich Insurance has no stake in Farmers Exchanges. However, Farmers Group as an attorney-in-fact provides Farmers Exchanges with certain non-claims services and ancillary services and is paid fees for its services.

The Swiss insurance group said that the terms of any deal with MetLife are subject to negotiations and it cannot give any assurance that a transaction will be executed.

MetLife is looking to sell the US P&C unit for nearly $4bn, reported Reuters, citing sources familiar with the matter. The deal could be announced next month if the ongoing negotiations between the parties are successful, said the sources.

Earlier this month, MetLife reported a net income of $633m for the third quarter of 2020, a 71% reduction compared to a net income of $2.15bn in Q3 2019.

The US P&C unit reported adjusted earnings of $18m in Q3 2020, which are down by 68% compared to Q3 2019, owing to catastrophe losses.

In September 2020, MetLife signed a $1.67bn deal to acquire vision care provider Versant Health from a consortium of investors that includes Centerbridge Partners and FFL Partners.

On the other hand, Zurich Insurance recently completed the sale of Zurich North America’s US corporate life and pensions business to Aflac.