Zurich subsidiary plans to buy Metlife’s US P&C for $3.94bn
The total sum, a reported US$3.94bn, will be contributed separately via Zurich ($2.43bn) and Farmers Exchanges ($1.51bn).
In addition to a 10-year exclusive distribution deal, whereby Farmers Exchange can offer its product lines on Metlife’s “industry-leading” US Group Benefits platform, which currently supports 37 million employees at 3,800 companies, the company apparently views this move as a chance to expand its presence nationwide.
In fact, Farmers Exchange will be acquiring 2.4 million policies with premiums worth an estimated $3.6bn.
“The acquisition of MetLife’s P&C business is a unique opportunity to accelerate growth and to achieve a significant presence in all 50 states,” commented Jeff Dailey, CEO of Farmers Group, Inc.
“MetLife’s distribution channels complement the Farmers Exchanges’ existing strength in the exclusive agent channel, deepen their presence in the fast-growing independent agent channel and provide entry into the worksite marketing channel via a leading platform.”
For its part, Zurich expects a relatively fast turnaround on the deal, projecting approximately 10% ROI by 2023.
“The acquisition significantly increases the potential for growth at the Farmers Exchanges and will further boost the share of Zurich’s profits linked to stable fee-based earnings,” added Zurich Group CEO Mario Greco.
“Together with the continued increase in rates in commercial insurance, this transaction will strengthen our ability to achieve our 2022 targets.”
Metlife: A leader in female empowerment
In other news, Metlife was recently named a world-leading organisation in terms of . The list compiled by measured key data points such as female proximity to executive roles, the market value of businesses run by women, and rates of pay within the top 20%.
According to information sourced on Metlife, women make up 40% of its managers, with 28% in regional managerial roles, 30% of its executive body and 30% of its board.
“Gender equity is central to MetLife’s purpose, which calls on us to build confidence not only for our customers, but also for our employees,” commented Cynthia Coverson, Senior Vice President of Regional Business, MetLife Group Benefits.
“MetLife has a proud history of advancing women’s careers, which has had a significant impact on our ability to deliver exceptional business results.”
REMEMBER: You can still nominate the female executive you believe deserves a place on FinTech Magazine’s Top 100 Women list. for more information.
Tribe and APOLLO announce national insurance campaign
Tribe Property Technologies in partnership with APOLLO insurance has announced a national insurance campaign to digitise insurance for condominium owners, renters, landlords, and developers across Canada. The aim of the campaign is to make insurance access easier and faster for owners while improving the coverage and protection of condominiums and rental buildings.
According to several surveys, nearly half of 4.5mn rented houses in Canada do not have tenant insurance protection, meaning those individuals and their families are put at risk of fire and water damage.
What does the national insurance campaign include?
According to Tribe, the company is working with APOLLO to ensure that this type of insurance is easier to access. It aims to achieve this by introducing a direct connection to APOLLO's insurance technology from both Tribe's strata and condo management platform and rental software to allow for increased education and awareness for owners into insurance risks and options.
It also includes the future ability for notifications for mid-term cancellations, and plans to offer protection from potential strata/condo corporation deductibles, Tribe said.
"We are excited to partner with APOLLO to bring accessibility, visibility, and education around insurance options to our communities and reflect the current lifestyle expectations of condo owners and residents while protecting the value of their biggest assets", said Joseph Nakhla, Chief Executive Officer of Tribe.
Nakhla added: “This agreement with APOLLO is just the first step under our Digital Services & Partnerships revenue pillar. We will continue to layer on services to drive revenue for Tribe, and bring convenience and savings for our users, with the goal of being able to offer a one-stop-shop to our development partners and the over 100,000 residents in Tribe-managed communities”.
APOLLO uses technology as a channel between insurance brokers, carriers, and their mutual clients, offering insurance options from multiple companies on one integrated online platform.
"We like that Tribe is taking a fresh approach to condo living and building smart homes through tech-enabled service, and an integration with their Community Platform supports our goals of making insurance more accessible and supporting the needs of communities”, said Jeff McCann, Chief Executive Officer of Apollo.