Talcott Financial Group has announced a block reinsurance transaction through its subsidiary, Talcott Resolution Life Insurance Company, with Metropolitan Life Insurance Company.
The deal involves the reinsurance of approximately US$10 billion in variable annuity and rider reserves.
The agreement is structured using a combination of modified coinsurance and funds withheld arrangements. MetLife will retain responsibility for the administration and servicing of the policies covered by the transaction.
Wells Fargo served as the exclusive financial advisor to Talcott for the MetLife transaction.
As part of the agreement, MetLife Investment Management will oversee approximately US$6 billion in assets under investment management agreements with Talcott. The transaction is expected to close in the second half of 2025, pending regulatory approval and other customary conditions.
Talcott CEO Imran Siddiqui (pictured) said the agreement represents a milestone in the company’s growth strategy and strengthens its position as a reinsurer. He acknowledged the collaboration between both organizations that led to the completion of the agreement.
This latest transaction follows a similar block reinsurance agreement between Talcott and Japan Post Insurance announced in March. With both deals, Talcott has reinsured a total of $14 billion in reserves during 2025.
Meanwhile, December saw MetLife announcing plans to establish Chariot Reinsurance, Ltd (Chariot Re), a Bermuda-based life and annuity reinsurance company with General Atlantic.
The Class E reinsurer is expected to launch in the first half of 2025, subject to regulatory approval. Chariot Re will have a strategic reinsurance partnership with MetLife, focusing on life and annuity blocks.
Earlier in 2024, Talcott also announced a reinsurance transaction involving its subsidiary, Talcott Life Re, Ltd, and The Dai-ichi Frontier Life Insurance Co, Ltd.
As part of the deal, Talcott Life Re will provide reinsurance for Dai-ichi Frontier Life’s new annuity product, while Dai-ichi Frontier Life will continue servicing and administering the policies.
What are your thoughts on this story? Please feel free to share your comments below.
