MetLife has announced that its subsidiary, Metropolitan Tower Life Insurance Company, has entered into an agreement with 3M to provide annuity benefits to approximately 23,000 retirees and beneficiaries of the 3M Employee Retirement Income Plan.
According to a news release, this agreement covers pension obligations totaling approximately $2.5 billion.
In June 2024, Metropolitan Tower Life Insurance Company issued a group annuity contract as part of the transaction. The monthly pension benefit amounts for the corporation’s retirees, their spouses, and beneficiaries will remain unchanged.
Metropolitan Tower Life Insurance Company will assume responsibility for making these monthly payments, replacing the Plan. The firm explained that no action is required from retirees or beneficiaries, and that both 3M and Metropolitan Tower Life will communicate the details to the affected participants and beneficiaries regarding their ongoing payments.
Melissa Moore, senior vice president and head of annuities at MetLife, highlighted the importance of this agreement for 3M’s beneficiaries.
“MetLife helped pave the way for today’s pension risk transfer market more than 100 years ago and continues to be firmly committed to this business, leveraging our expertise at managing risk across a wide range of economic scenarios to remain an industry leader,” Moore said.
Elsewhere for MetLife, sources have recently revealed that the company is pursuing an acquisition of Hayfin Capital Management, the private credit specialist that began exploring a sale last year.
The insurance giant is in talks for a deal that could value the London-based direct lender at more than 1.2 billion euros ($1.3 billion), said the people, who asked not to be identified discussing private information. The discussions are ongoing and may not ultimately lead to a deal.
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