MetLife Transfers $10 Billion Variable Annuity Risk to Talcott Resolution

MetLife has completed a $10 billion variable annuity risk transfer transaction with Talcott Resolution Life Insurance Company, a subsidiary of Talcott Financial Group. The deal involves Talcott reinsuring approximately $10 billion in variable annuity and rider reserves, aiming to reduce MetLife's portfolio risk while MetLife continues to manage policy administration and servicing. The reinsurance is structured through modified coinsurance and funds withheld arrangements. This strategy aligns with MetLife's broader objective to decrease its exposure in legacy business operations within its MetLife Holdings segment. Financially, MetLife expects to forgo around $100 million in annual adjusted earnings from this reinsurance deal, which is partially offset by anticipated annual hedge cost savings of about $45 million. Additionally, MetLife Investment Management will oversee around $6 billion in assets under agreements with Talcott, reflecting a strategic asset management component within this risk transfer. The transaction contributes to Talcott reinsuring a total of $14 billion in reserves during 2025. Earlier in the year, MetLife also partnered with General Atlantic to establish Chariot Reinsurance, a Bermuda-based life and annuity reinsurer that assumed approximately $10 billion in liabilities from MetLife. Chariot Re's portfolio includes structured settlement annuity contracts and group annuity contracts linked to pension risk transfers originally issued by MetLife. This series of transactions demonstrates MetLife's ongoing approach to managing risk through reinsurance partnerships and risk transfer structures while maintaining administrative control over its legacy policies. These measures also underscore the evolving landscape of risk management and capital efficiency strategies in the annuities and life insurance market. In leadership updates, MetLife recently appointed Adrienne O'Neill as its executive vice-president and chief accounting officer, responsible for overseeing corporate accounting, financial reporting, and financial planning and analysis functions. This leadership change is part of MetLife’s operational adjustments amid its strategic risk transfer initiatives.