MetLife has signed an agreement with Talcott Resolution Life Insurance Company to reinsure around $10bn of US retail variable annuity and rider reserves.  

This move is expected to reduce MetLife’s enterprise risk, while speeding up the run-off of its legacy business. 

The transaction, valued at around $250m, comprises ceding commission and capital released over time.  

It is part of MetLife’s strategy to manage risk within MetLife Holdings, the closed-block businesses of the company’s former US Retail segment. 

MetLife is predicting a reduction in retail variable annuity tail risk, lowering account values by an estimated 40%. 

The structure of the reinsurance transaction includes both modified coinsurance and funds withheld arrangements. 

The completion of the deal, anticipated in the second half of 2025, is contingent upon regulatory approvals and other customary conditions.  

MetLife Investment Management has also secured mandates to manage roughly $6bn of assets under investment management agreements with Talcott. 

MetLife president and CEO Michel Khalaf said: “This transaction represents another tool in our toolkit that is available to generate long-term value. It will reduce enterprise risk and bolster MetLife’s position as a fundamental, all-weather performer. Our capacity to lower risk and successfully navigate uncertain and changing environments benefits our shareholders and all our other stakeholders.” 

MetLife reported net income of $879m in the first quarter of 2025, an increase of 10% from $800m in the prior year.  

In December last year, the company partnered with General Atlantic to establish Chariot Re, a Bermuda-based Class E life and annuity reinsurance company.