By Everdeen Mason
Rothesay Life Ltd. agreed to buy MetLife Inc.'s (MET) U.K.-based
annuity pension unit as it continues to build out its annuity
portfolio.
MetLife Assurance Ltd. is the life insurer's specialist bulk
annuity pension provider established in 2007 with approximately
GBP3 billion in assets under management.
The sale of the U.K.-based unit doesn't affect MetLife's other
businesses in the region, such as its wealth management and
employee benefits arm MetLife Europe Ltd. or its U.S. pension risk
transfer business.
Customer benefits such as benefit obligations to trustees and
pension payments to individual policyholders won't be affected by
the sale, MetLife added.
Financial terms of the deal, which is expected to close in
second quarter, weren't disclosed.
The sale of MetLife Assurance will make Rothesay Life the U.K.'s
largest provider of "defined benefit de-risking solutions,"
Rothesay Chief Executive Addy Loudiadis said.
"The U.K. pension de-risking market has experienced recent
strong growth, with transaction levels approaching the 2008 high,"
she said. The insurance provider has been building on its annuity
portfolio, and acquired Paternoster UK Ltd. in 2011 as part of this
push.
MetLife, in the meantime, recently reported its fourth-quarter
net income soared as it improved operating results across all its
key regions.
MetLife has vastly broadened its international business with the
2010 purchase of an overseas life-insurance unit from American
International Group Inc. The company has more recently sought an
expansion in Southeast Asia.
Write to Everdeen Mason at everdeen.mason@wsj.com
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