MetLife, Prudential Close $29.2B in Life and Annuity Reinsurance Deals

The direct writer keeps ultimate responsibility for paying the benefits associated with the blocks of business involved with reinsurance arrangements.

The MetLife Deal

The MetLife deal with Global Atlantic covers a mix of universal life policies, variable universal life policies, fixed annuities and universal life policies with secondary guarantees.

The policies and contracts are in blocks of business that MetLife’s retail business wrote before the company made the retail business a separate company, Brighthouse Financial.

“As part of MetLife’s ongoing commitment to its policyholders, the company will continue to be responsible for all customer-related functions,” the company said.

The deal agreement calls for MetLife Investment Management to continue to manage some of the assets associated with the blocks for five years.

The Prudential Deal

Prudential said the deal with Constellation covers Prudential Defined Income annuities issued by its Pruco Life Insurance Co. subsidiary.

The arrangement will affect about 10% of the account value in its older, traditional variable annuities.

Prudential is now focusing on the sale of fixed annuities and FlexGuard-registered index-linked annuities.

The agreement with Constellation “will not result in any change of contract ownership, terms, fees or commission schedules for contracts included in the transaction,” Prudential said. “Prudential will continue to service the block and maintain its existing relationships with contract holders, broker-dealers and financial professionals.”

Prudential expects to close the deal by June 30.

Pictured: MetLife and Prudential’s headquarters. (Image: Bloomberg)