Zurich Insurance Group and Farmers Insurance have completed their nearly $4 billion acquisition of MetLife’s U.S. property/casualty business.
Zurich, which made the purchase through subsidiary Farmers Group, Inc., paid $2.4 billion, and Farmers Insurance forked over $1.5 billion.
The acquisition, announced in December 2020, gives Farmers Insurance a stronger national presence and access to new distribution channels. Part of that includes a 10-year distribution agreement through which Farmers Insurance will offer its personal lines products on MetLife’s U.S. Group Benefits platform, which reaches 3,800 companies and 37 million employees, according to the deal announcement.
Zurich’s Farmers Group provide administrative and management services to the Farmers Exchanges.
“We are very pleased that the acquisition has been approved so rapidly,” said Zurich Group Chief Executive Officer Mario Greco. “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 acquisition is expected to contribute immediately to Zurich’s earnings and deliver a return on investment to the Group of approximately 10 percent from 2023, the company said.