MetLife Completes $10B Variable Annuity Risk Transfer with Talcott Resolution

MetLife, Inc. has finalized a $10 billion variable annuity risk transfer transaction with Talcott Resolution Life Insurance Company, a subsidiary of Talcott Financial Group. This move is part of MetLife's ongoing strategy to reduce exposure to legacy blocks of business within its MetLife Holdings segment, which includes closed-block insurance portfolios. The transaction is expected to result in foregone annual adjusted earnings of approximately $100 million; however, this will be partly offset by annual hedge cost savings of around $45 million. Additionally, MetLife Investment Management will continue managing roughly $6 billion in assets under investment management agreements with Talcott, highlighting a strategic partnership in asset management. This transaction illustrates the disciplined risk transfer approaches insurers utilize to optimize capital efficiency and balance sheet strength in the evolving insurance market. It also reflects regulatory and market pressures to manage legacy risk exposure proactively while maintaining investment management continuity. Overall, this risk transfer transaction provides insight into how large insurers like MetLife are adapting their portfolio strategies to enhance operational stability and financial performance amid complex economic environments.