MassMutual will become one of the Nation’s Largest Career Agency Systems
MassMutual and MetLife, Inc. jointly announced this week MassMutual’s acquisition of MetLife’s U.S. Retail advisor force – the MetLife Premier Client Group (“MPCG”), after previously confirming that they had been engaging in joint discussions of a possible transaction. Founded in 1851 in Springfield, MassMutual is a one of the nation’s leading mutual life insurance company.
According to the terms of the transaction, MassMutual will acquire the retail distribution operation which includes more than 40 local sales and advisory operations, which includes more than 4,000 advisors across the country. This will also MassMutual to not only broaden its geographic reach but to provide a much wider breadth of financial products including life insurance, annuities, disability income insurance and wealth management services.
The terms of the transaction also feature an agreement to enter into a product development agreement under together, in which MetLife’s U.S. Retail business will be the exclusive developer of certain MassMutual annuity products.
As a result of the purchase, MassMutual will dramatically increase its Career Agency System which also numbers more than 5,600 financial professionals. In addition to increasing its ranks, the Springfield insurer also has positioned itself as one of the top individual life insurance – and whole life insurance – providers in the marketplace.
Emphasizing the unique opportunity this agreement offers MassMutual, Michael R. Fanning, Executive Vice President of MassMutual’s U.S. Insurance Group, said, “This is a once-in-a-lifetime opportunity to combine two teams of experienced financial professionals and significantly expand our geographic reach. Together, we will grow our business opportunities and serve more Americans who desire a comprehensive financial planning approach for their families and businesses.”
Eric Steigerwalt, Executive Vice President of MetLife’s U.S. Retail segment echoed Mr. Fanning’s sentiments. “Over the years, MetLife has refocused its U.S. Retail distribution channel to become one of the most efficient, productive, and sought-after financial services organizations in the industry. With this transaction, our financial services representatives and support staff will continue to connect clients to the best risk and wealth management solutions, and MetLife’s products will now have even greater reach through the premier distribution network that this transaction creates.”
The decision to sell to MassMutual came as a result of MetLife’s announcement earlier this month when it decided, “…to pursue a separation of a substantial portion of its U.S. Retail segment.”
Other Transaction Highlights from the official announcement
In issuing a formal announcement of the agreement struck between the two insurers, the announcement emphasized the following highlights of the agreement:
- The transaction is expected to close by mid-2016, and is subject to certain closing conditions, including regulatory approval.
- The purchase price is not material to MassMutual’s capital and surplus.
- Sandler O’Neill + Partners, LP served as financial advisor and Willkie Farr & Gallagher LLP served as legal counsel to MetLife. Barclays Capital, Inc. served as financial advisor and Sutherland Asbill & Brennan LLP served as legal counsel to MassMutual.
