MetLife Finalizes $10B Annuity Risk Transfer to Talcott Resolution Enhancing Risk Management

MetLife, Inc. has completed a $10 billion variable annuity risk transfer deal with Talcott Resolution Life Insurance Company, a Talcott Financial Group subsidiary. This strategic transaction aims to reduce MetLife's portfolio risk and accelerate the runoff of legacy business within its MetLife Holdings closed-block operations. MetLife anticipates an annual adjusted earnings reduction of approximately $100 million, partially offset by $45 million in hedge cost savings. The agreement also allows MetLife Investment Management to continue managing around $6 billion in assets for Talcott. This deal increases Talcott's total reinsured reserves to $14 billion in 2025, enhancing its capacity as a risk management partner for insurance carriers. Wells Fargo served as exclusive financial advisor to Talcott for this transaction.