METLife gets Multinational Pooling Network via Alico
The MetLife acquisition of very coveted AIG assets through Alico makes Met an overnight global powerhouse and also makes Met a major player in multinational pooling insurance. No company had the international presence of AIG and their multinational pooling network was about the best in the business.
In addition to multinational pooling, Met also gets access to the AIG developing expatriate medical insurance business based in Delaware.
MetLife was seeking to expand and grow internationally and ALICOs strong position in foreign markets helps achieve this goal for Met. MetLife exited the financial crisis in a position of strength relative to some distressed peers. The firm has been able to capitalize on this strength by purchasing a subsidiary of a distressed competitor, AIG. The number of corporations that were in a position to accomplish such a large acquisition as ALICO were limited, which we believe may have restricted the price. None of the other multinational pooling companies were reported as interested.
After the Alico acquisition, the combined company will have very large share in several growing markets, and it will be the largest life insurer in Russia, Mexico, and the United States as well as the second-largest foreign life insurer in Japan. MetLife will also have a significant presence in the developing economies of India and China. In the fourth quarter, MetLife derived about 13% of its premiums, fees, and other revenue internationally, but we expect this total will grow materially following the ALICO acquisition.
We will be contacting MetLife representatives shortly for more information on how this affects multinational pooling operations but we expect no changes whatsoever for now and business as usual.
