Zurich subsidiary Farmers Group and Farmers Exchange have completed the acquisition MetLife's US property and casualty business for $3.94bn.
The acquisition, announced on December 11, 2020, gives the Farmers Exchanges a nationwide presence and access to new distribution channels, Zurich said in a statement yesterday (7 April).
This includes a 10-year exclusive distribution agreement through which the Farmers Exchanges will offer their personal lines products on MetLife's US Group Benefits platform, which on 7 April 2021 reached 3,800 companies and 37 million employees.
"We are very pleased that the acquisition has been approved so rapidly," said Zurich group chief executive 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 US market."
The acquisition is expected to contribute immediately to Zurich's earnings and deliver a return on investment to the Group of approximately 10% from 2023.
