Zurich Insurance Group subsidiary Farmers Group (FGI) and Farmers Exchanges have announced they have completed the acquisition of MetLife’s property and casualty (P&C) business in the U.S. for a purchase price of $3.94bn (£2.86bn).
The firms said the acquisition, first announced on 11 December, 2020, gives the Farmers Exchanges a “truly nationwide presence” and access to new distribution channels.
This includes a 10-year exclusive distribution agreement through which the Farmers Exchanges will offer their personal lines products on MetLife’s U.S. Group Benefits platform, which today reaches 3,800 companies and 37 million employees.
As part of the deal, Zurich contributed $2.43bn (£1.76bn) through FGI and the Farmers Exchanges contributed $1.51bn (£1.09bn).
Zurich Group CEO Mario Greco said: “We are very pleased that the acquisition has been approved so rapidly. We expect the new business to contribute to growth beginning this quarter and start building on the leading positions that Zurich and the Farmers Exchanges have separately developed in the attractive U.S. market.”
The group added the acquisition is expected to contribute immediately to its earnings and deliver a return on investment to the group of approximately 10% from 2023.