Farmers to acquire MetLife Auto & Home
The Farmers Exchanges and Farmers Group, Inc. (FGI) have announced they will jointly acquire MetLife’s property and casualty business (MetLife Auto & Home). Completion of the transaction is subject to regulatory approvals and is anticipated to occur in the second quarter of 2021.
As part of the transaction, the Farmers Exchanges are entering into a 10-year exclusive distribution agreement with MetLife, the leading group benefits company in the United States. Under the 10-year exclusive distribution agreement, Farmers® and MetLife plan to leverage combined capabilities to offer personal lines products on MetLife’s U.S. Group Benefits platform, which reaches 3,800 employers and approximately 37 million eligible employees.
The transaction gives Farmers a truly nationwide presence and access to new distribution channels. On a pro-forma basis, Farmers will become the sixth-largest personal lines insurer in the U.S. The business to be acquired had 2.4 million policies in force and $3.6 billion net written premiums in 2019.
“The acquisition of MetLife Auto & Home is a unique opportunity to accelerate our growth and gives us a significant presence in all 50 states,” said Jeff Dailey, Chief Executive Officer of Farmers Group, Inc. “MetLife’s distribution channels complement our existing strength in the exclusive agent channel, deepen our presence in the fast-growing independent agent channel and provide us entry into the worksite marketing channel via a leading platform, with the 10-year exclusive distribution agreement through MetLife Group Benefits.”
Farmers will also gain access to additional independent agents via the MetLife Auto & Home network. Additionally, Farmers gains access to about 250 affinity groups through MetLife’s affinity channel, which aligns with and enhances its existing distribution relationships strategy, bringing new capabilities and experience in this channel.
The acquisition will bring about 3,500 MetLife Auto & Home employees to Farmers.