MetLife Reinsures $10B in Variable Annuities with Talcott Resolution

MetLife has entered into a reinsuring agreement with Talcott Resolution Life Insurance Company involving approximately $10 billion of U.S. retail variable annuity and rider reserves. The reinsurance deal, valued at around $250 million, aims to reduce MetLife's enterprise risk and facilitate accelerated runoff of its legacy business tied to variable annuities. The transaction incorporates modified coinsurance and funds withheld arrangements, and completion depends on regulatory approval expected in the latter half of 2025. This strategic move is part of MetLife's broader risk management approach within its closed-block businesses under MetLife Holdings, designed to lower tail risk in its variable annuity portfolio by an estimated 40%. Concurrently, MetLife Investment Management has secured mandates to manage approximately $6 billion of assets through agreements with Talcott. This transaction follows recent initiatives by MetLife, including the establishment of Chariot Re, a reinsurance platform based in Bermuda, indicating a continued focus on reinsurance solutions to enhance capital and risk management. The deal is positioned to strengthen MetLife's financial profile by releasing capital over time, optimizing earnings stability, and supporting long-term value generation for stakeholders. MetLife reported a 10% increase in net income for Q1 2025, reflecting steady operational performance amid ongoing restructuring activities.