IE 11 is not supported. For an optimal experience visit our site on another browser.

MetLife, Citigroup close Travelers deal

MetLife Inc. on Friday said it completed its $11.8 billion acquisition of Citigroup's Travelers Life & Annuity and nearly all of Citigroup's international insurance businesses, which will deliver a $2 billion gain for Citigroup and make MetLife the nation's biggest life insurance company in sales.
/ Source: The Associated Press

MetLife Inc. on Friday said it completed its $11.8 billion acquisition of Citigroup's Travelers Life & Annuity and nearly all of Citigroup's international insurance businesses, which will deliver a $2 billion gain for Citigroup and make MetLife the nation's biggest life insurance company in sales.

Citigroup said it would record the gain in its third quarter.

MetLife, which paid Citigroup $10.8 billion in cash and about 22.4 million of its own shares valued at roughly $1 billion, said the acquisition would slightly bolster its earnings in this year's second half.

MetLife said in January it would buy Travelers from Citigroup for at least $11.5 billion. At the time, the companies said the deal would make MetLife the largest individual life insurer in North America, based on sales.

As part of the deal, MetLife products will be sold through certain Citigroup operations, including Smith Barney, Citibank branches, and Primerica, in addition to various Citigroup businesses overseas, under 10-year agreements with Citigroup, the insurer said.

In a separate deal, MetLife said it agreed with Citigroup to acquire CitiStreet Associates, a unit of CitiStreet LLC, whose business is distributing annuities to the health care, education and nonprofit markets.

MetLife did not disclose the value of the CitiStreet Associates deal, which is expected to close on Sept. 1. The insurer said it is not acquiring CitiStreet LLC, which is a joint venture owned equally by Citigroup and State Street Corp.