Aug
30
MetLife Gets Approval for ALICO, DelAm Takeover
Filed Under AIG, Insurance Company, Life Insurance, MetLife | 3 Comments
The European Commission has given its approval for MetLife’s purchase of AIG subsidiaries American Life Insurance Company (ALICO) and Delaware American Life Insurance Company (DelAm), as part of MetLife’s takeover of AIG’s international life insurance business.
MetLife’s purchase of ALICO and associated subsidiaries was agreed upon early in 2010, and the company recently obtained approval to purchase ALICO’s Hungary-based subsidiary, AHICO, from Hungary’s financial markets regulator, PSzÁF, in the beginning of August, 2010.
The European Commission was looking at whether or not MetLife’s takeover of the two companies, ALICO and DelAm, would negatively impact competition in European markets. DelAm is part of AIG’s international life insurance operations. The purchase of DelAm, which provides wealth management services, retirement planning, life insurance and health insurance to individuals as well as commercial and institutional clients was considered not to pose any concerns, especially considering it does not provide services in the EU.
ALICO, which provides life insurance, retirement planning, wealth management, accident insurance and health insurance to individual customers and corporate clients, was found to have some overlap in activities with MetLife by the commission. MetLife and ALICO did overlap in some life insurance products in a few EU Member markets, however the combined market share of MetLife and ALICO in these markets would still be relatively small and the combined company would still face strong competition from other credible companies in the marketplace.
After MetLife’s acquisition of ALICO, it is expected that MetLife will be in a top-five position in many emerging markets, including those in central and eastern Europe, Latin America and the Middle East. MetLife is hoping to wrap up the deal with AIG by the end of 2010.
Insurance Companies Mentioned:
AIG
American International Group, Inc. (AIG), a world leader in insurance and financial services, is the leading international insurance organization with operations in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through the most extensive worldwide property-casualty and life insurance networks of any insurer. In addition, AIG companies are leading providers of retirement services, financial services and asset management around the world. AIG’s common stock is listed on the New York Stock Exchange, as well as the stock exchanges in Paris and Tokyo.
ALICO
The American Life Insurance Company, generally known as Alico, provides a broad and innovative range of insurance and savings products to individual customers, corporate clients and high net worth customers. With a wide range of products to support every aspect of their customers’ lives, and provide comprehensive cover for the employees and commercial needs of their business clients. Their products include; health insurance, life insurance, savings plans, accident insurance, retirement planning and travel insurance among others.
DelAm
Delaware American Life Insurance Company, or DelAm, participates in the accident, life and health insurance business, writing accidental death and dismemberment, group life, long term disability, dental, and medical business as part of AIG’s international life insurance sales operations. It was incorporated in 1964 and is based in Houston, Texas; it is a subsidiary of AIG.
MetLife Inc.
Possessing over 140 years of insurance expertise, MetLife aims to be an innovator in the field of international Life insurance. Globally, MetLife is able to offer its clients accident and health insurance, life insurance, disability income protection, and retirement and savings products.
Aug
9
MetLife Receives Regulatory Approval for Takeover of Hungarian ALICO Subsidiary
Filed Under Insurance Company, Life Insurance, MetLife | 1 Comment
In part of its pending takeover of ALICO, MetLife has been given regulatory approval for the purchase of ALICO’s local, wholly-owned subsidiary AHICO.
The regulatory approval for transfer of AHICO is part of the deal between AIG and MetLife Inc., which will see MetLife buy AIG’s international life insurance business, American Life Insurance Company (ALICO) for USD 15.5 billion (EUR 11.7 billion).
The purchasing price is comprised of USD 6.8 billion (EUR 5.1 billion) in cash and USD 8.7 billion (EUR 6.5 billion) in equity, including common stock, contingent convertible preferred stock and equity units. The transfer of equity from MetLife to AIG for the purchase of ALICO gives AIG a 20 percent stake in MetLife, once the equity units convert to common stock 3 years after the deal is closed.
First American-Hungarian Life Insurance Company (AHICO) was the 100 percent wholly owned subsidiary of ALICO, set up in 1990 to serve the local Hungarian market. After getting approval from the Hungarian financial markets regulator PSzÁF, AHICO can begin on the transfer of ownership to MetLife.
Despite the change in ownership, there are no foreseeable alterations to AHICO’s business. The takeover by MetLife will not affect AHICO’s tax registration, claims settlement procedures, or any insurance policies in force, other than the fact that AHICO will become part of a larger international business network spanning 60 countries, business will continue as usual.
Insurance Companies Mentioned:
AIG
American International Group, Inc. (AIG), a world leader in insurance and financial services, is the leading international insurance organization with operations in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through the most extensive worldwide property-casualty and life insurance networks of any insurer. In addition, AIG companies are leading providers of retirement services, financial services and asset management around the world. AIG’s common stock is listed on the New York Stock Exchange, as well as the stock exchanges in Paris and Tokyo.
ALICO
The American Life Insurance Company, generally known as Alico, provides a broad and innovative range of insurance and savings products to individual customers, corporate clients and high net worth customers. With a wide range of products to support every aspect of their customers’ lives, and provide comprehensive cover for the employees and commercial needs of their business clients. Their products include; health insurance, life insurance, savings plans, accident insurance, retirement planning and travel insurance among others.
AHICO
AHICO First American-Hungarian Insurance Company was 100 percent owned by ALICO, prior to the buyout of ALICO by MetLife Inc. AHICO was established in Hungary in December 1990, and has a registered capital of HUF 1 billion (USD 4.7 million).
MetLife Inc.
Possessing over 140 years of insurance expertise, MetLife aims to be an innovator in the field of international Life insurance. Globally, MetLife is able to offer its clients accident and health insurance, life insurance, disability income protection, and retirement and savings products.
Aug
3
MetLife Selling More Equity than Originally Planned for Alico Deal
Filed Under Health Insurance, Insurance Company, Life Insurance, Medical Insurance, MetLife | 7 Comments
American Insurer, MetLife Inc., will have to raise the amount of equity it is selling to finance its purchase of AIG’s international insurance subsidiary, American Life Insurance Company (Alico), which it announced in March.
The sale of Alico to MetLife Inc. for about USD 15.5 billion, comprised of USD 8.7 billion in equity and USD 6.8 billion in cash. MetLife originally planned on purchasing Alico by selling USD 3.1 billion in debt, and USD 2 billion in equity through the sale of shares to help finance the cash portion of the deal. The USD 8.7 billion in equity would have been covered by issuing that value of equity securities to AIG, which would be dependent on minimum holding periods.
However, MetLife announced on Monday that it will issue 75 million shares of common stock to help finance the cash part of the Alico deal, increasing the value of shares sold to USD 3 billion. This 50% increase in value over the originally planned USD 2 billion equity offering, means that MetLife will be spending less cash in hand to finance the deal.
MetLife originally estimated that operating earnings for the year after the purchase would increase by USD 0.45-0.55 per share. After the newest development, estimations have been revised down to a USD 0.40-0.45 increase in operating earnings per share after the purchase of Alico.
Insurance Companies Mentioned:
AIG
American International Group, Inc. (AIG), a world leader in insurance and financial services, is the leading international insurance organization with operations in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through the most extensive worldwide property-casualty and life insurance networks of any insurer. In addition, AIG companies are leading providers of retirement services, financial services and asset management around the world. AIG’s common stock is listed on the New York Stock Exchange, as well as the stock exchanges in Paris and Tokyo.
Alico
The American Life Insurance Company, generally known as Alico, provides a broad and innovative range of insurance and savings products to individual customers, corporate clients and high net worth customers. With a wide range of products to support every aspect of their customers’ lives, and provide comprehensive cover for the employees and commercial needs of their business clients. Their products include; health insurance, life insurance, savings plans, accident insurance, retirement planning and travel insurance among others.
MetLife
Possessing over 140 years of insurance expertise, MetLife aims to be an innovator in the field of international Life insurance. Globally, MetLife is able to offer its clients accident and health insurance, life insurance, disability income protection, and retirement and savings products.
Jul
26
United MetLife – Opens New Sichuan Branch
Filed Under China, China insurance, Health Insurance, Insurance Company, International Healthcare, MetLife | 1 Comment
MetLife announces the opening of its third Provincial branch in Sichuan. The unveiling of the new Sichuan branch is the first since United Metlife disclosed its plans to merge with Sino-US MetLife insurance business.
The planned merger between United MetLife and its Sino-US MetLife Insurance Company Limited is the first sign that MetLife is preparing for the two MetLife subsidiary’s to amalgamate; this follows the announcement by the China Insurance Regulatory Commission (CIRC) that foreign investors should only have one insurance operation on the mainland.
The Beijing based Sino-US MetLife insurance subsidiary planned merger with the Shanghai based United MetLife – creating Sino-US United MetLife Insurance – will ensure that MetLife follows the Chinese Authorities guidelines for foreign insurance investors in China.
In order for MetLife to meet its obligations – to become a single operating insurance provider in China – requires Capital Airport Holding to sell its 50% stake in Sino-US MetLife to Shanghai Alliance Investment which is MetLife’s JV partner in United MetLife.
Mr Marks, head of the Asia-Pacific region for MetLife said “China is a key strategic market for MetLife. By having a single partner across the country we can create a stronger brand and portfolio of offerings for the market. This will allow us to accelerate growth and in turn provide increased value to our customers.”
The opening of the new branch in the Sichuan province – together with the Chongqing branch – means MetLife continues to build the foundations in second-tier cities in western China, expanding its presence in the country; this has been a key focus for MetLife in recent years.
Sino-US MetLife Insurance Company Limited provides life, accident and health insurance to individuals in Beijing, Chongqing, Guangzhou, Shenzhen, Sheyang and Dalian. While United MetLife Insurance Company Limited offers life and accidental insurance products in Shanghai, Nanjing, Hangzhou, Ningbo and Wuxi.
The announcement of the Sichuan province branch comes at a time for MetLife when foreign investors in China, aim to strengthen their presence in this prosperous country. The growing demand for insurance products – to cover accident and health in China – is a key revenue stream for MetLife since they acquired the American Life Insurance Company.
The Asian insurance industry – especially China – has been transformed in recent years, with foreign investors competing for a percentage of this profitable market. MetLife’s activities in China was estimated to generated Yuan 3 billion (US$442 billion) in 2009 – a figure accounting for less than 1% of the Chinese insurance market.
Insurance company mentioned:
MetLife
Possessing over 140 years of insurance expertise, MetLife aims to be an innovator in the field of international Life insurance. Globally, MetLife is able to offer its clients accident and health insurance, life insurance, disability income protection, and retirement and savings products.
Apr
30
MetLife Q1 Operating Profit Soars
Filed Under Insurance Company, MetLife | 1 Comment
The first quarter operating earnings recently reported by MetLife Inc. reached levels that beat the expectations of analysts in Wall Street, chiefly aided by an increase in investment income produced by the thawing credit markets.
Compared to a year ago, the net investment income grew by 31 percent, from US$3.3 billion (EUR 2.5 billion) to US$4.3 billion (EUR 3.26 billion).
Other contributing factors to the strong results are the 12 percent increase in premium and fee revenue, an 8 percent increase in annuity sales, together with cost reductions, which combined produced a 17 percent increase in operating revenue for the quarter ended 31 March 2010.
The operating profit for MetLife in Q1 grew more than 500 percent compared to the same period last year, when the financial tsunami was destroying most investment income. The US$834 million (EUR 631.82 million) operating profit reported for Q1 2010 is more than six times the amount reported for Q1 2009 of US$131 million (EUR 99.24 million).
This better-than-expected Q1 results achieved through improved business both in the US and Internationally position MetLife positively for continued growth during the rest of 2010.
Insurance Company mentioned:
Possessing over 140 years of insurance expertise, MetLife aims to be an innovator in the field of international Life insurance. Globally, MetLife is able to offer its clients accident and health insurance, life insurance, disability income protection, and retirement and savings products.
Apr
29
ALGICO ceases underwriting new casualty and property policies
Filed Under AIG, Health Insurance, Income Protection, Insurance Company, Life Insurance, Medical Insurance, MetLife | 1 Comment
Member of the American International Group (AIG), American Life and General Insurance Company (ALGICO) will no longer underwrite new casualty and property insurance policies in Trinidad and Tobago as of May 1, 2010.
The decision to stop issuing new policies comes as a result of AIG subsidiary ALICO’s sale to MetLife, which is part of AIG’s global restructuring plan to pay back the American government for the US$ 182 billion bailout in 2008. Alico is the majority stakeholder in American General and Life Insurance Company and in light of the impending sale to MetLife, AIG, Alico and ALGICO deliberated over the fate of ALGICO’s property and casualty insurance business, finally coming to the decision to no longer underwrite policies.
ALGICO says that all policies already in force are perfectly safe and says that claims will continue to be processed in the usual manner. ALGICO has informed the Central Bank of Trinidad and Tobago, as well as the Banking, Insurance and General Workers Union (BIGWU) of the change, and is in the middle of notifying policyholders, brokers, agents and shareholders of the decision. As a result of the decision, an unknown number of employees are to be laid off from ALGICO, which is in contact with BIGWU in order to organize appropriate severance packages for their outgoing employees.
ALGICO will continue its other lines of business, including writing and renewing life, accident, annuities and health insurance for individuals as well as group health, life and pension plans. As part of the integration of Alico into MetLife, ALGICO is planning to increase the number of life insurance products it offers and broaden its distribution channels in an effort to concentrate on life and retirement products where MetLife is an industry leader.
Companies Mentioned:
AIG
American International Group, Inc. (AIG), a world leader in insurance and financial services, is the leading international insurance organization with operations in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through the most extensive worldwide property-casualty and life insurance networks of any insurer. In addition, AIG companies are leading providers of retirement services, financial services and asset management around the world. AIG’s common stock is listed on the New York Stock Exchange, as well as the stock exchanges in Paris and Tokyo.
Alico
Alico provides a broad and innovative range of insurance and savings products to individual customers, corporate clients and high net worth customers. With products to support every aspect of their customers’ lives, and provide comprehensive cover for the employees and commercial needs of their business clients.
ALGICO
American Life and General Insurance Company (Trinidad and Tobago) Limited was incorporated in Trinidad and Tobago in 1977 to assume combined control of Alico’s local life insurance portfolio as well as American International Underwriters’ general insurance business. The company is a member of the American International Group and has an asset base of US$ 1 billion.
MetLife Inc.
Possessing over 140 years of insurance expertise, MetLife aims to be an innovator in the field of international Life insurance. Globally, MetLife is able to offer its clients accident and health insurance, life insurance, disability income protection, and retirement and savings products.
Mar
26
MetLife planning to Cover the Middle East
Filed Under AIG, Expat Insurance, Insurance Company, Life Insurance, MetLife, Middle East, UAE Insurance | 2 Comments
Following its acquisition of American Life Company (ALICO), MetLife now aims to become a force in the Middle East, which had been missing from its portfolio of 18 countries.
Given that the growth of life insurance sales is happening outside of the US, and ALICO has been in an excellent position to strategically capitalise this segment of the market in Asia, it is only natural for MetLife to take advantage of this opportunity to extend its cover to the Middle East.
Insurers are particularly drawn by the fact that the Middle East is currently under-insured in a severe manner. In developed countries premiums reach about 15 percent of their GDP whilst per-capita premiums in the Gulf account for an average of only 1 per cent of GDP, and it is estimated that insurance premiums grew 28 percent last year.
This calling has brought 58 insurers to the UAE, with approximately half of them being foreign companies. This intense competition has driven down premiums to some of the lowest levels in the world.
Within the particularly undeveloped segment of personal insurance, car insurance and health insurance are the most common products, especially since regulators have started to gradually make them compulsory. Life insurance, the core business of MetLife and ALICO is an even newer concept in this market.
Whilst awaiting regulatory approval for its ALICO purchase, MetLife plans the integration of the two companies and continue watching the markets for opportunities. MetLife hopes to close the deal by 01 November of this year.
Actively present in 55 countries with a 20-million customer base, the presence of ALICO in the Middle East and Japan complements activities of MetLife in China, India and Brazil. MetLife counts with a 70-million customer base.
The success story of ALICO made it one of the crown jewels of AIG, before being bailed out by the US government.
Insurance Companies mentioned:
Possessing over 140 years of insurance expertise, MetLife aims to be an innovator in the field of international Life insurance. Globally, MetLife is able to offer its clients accident and health insurance, life insurance, disability income protection, and retirement and savings products.
Alico provides a broad and innovative range of insurance and savings products to individual customers, corporate clients and high net worth customers. With products to support every aspect of their customers’ lives, and provide comprehensive cover for the employees and commercial needs of their business clients.
Mar
17
AIA and Alico sales herald a New Life Insurance Market Era in Asia
Filed Under AIG, Life Insurance, MetLife | 5 Comments
Once the ink dries on the deals for AIG to divest American Life Company (ALICO) and American International Assurance Company (AIA), there will be a stakeholders shift in the Life Market in Asia, as observed by market analysts.
Since the effects of the global financial crisis started to be felt over a year ago, there has been a transformation of the insurance markets in Asia, with the sale of American Life Insurance Company to MetLife Inc. and the purchase of AIA Group by Prudential plc becoming the most recent adjustments in the Asian markets.
It is envisioned that the acquisition of Alico by MetLife in Japan will bring about a refreshed competitive environment for both local and foreign players in the Japanese life insurance market. This latest deal by MetLife together with the IPO next month of Dai-ichi Life’s stock may exercise some pressure to the leading life insurers such as Nippon Life Insurance Co. Ltd., Sumitomo Life Insurance Co. and Meiji Yasuda Life Insurance Co. to consider their strategic alternatives.
The combination of MetLife and Alico in Japan is likely to produce innovative life products that meet the demands for savings and long-term care for their ageing population and transitioning demographic. Foreign players entering the Japanese market are well positioned to introduce new savings products, something that the local insurers must factor in whilst drafting their new competitive strategies.
In general, the competitive landscape of the Asian insurance market has been altered by the financial tsunami. One of the noticed effects in the Japanese market is that local insurers have gained a larger share at the expense of the portion of business held by foreign insurers disposing of their Asian operations, as exemplified by the acquisition made by MetLife. Likewise, Prudential is now well positioned to gain market share in the rest of Asia, following the acquisition of AIA.
Increased global reach will be another positive impact for MetLife, increasing its presence from 17 to 64 countries as a result of its Alico acquisition. MetLife move into the top-five tier in many emerging markets including Latin America, the Middle East, Central and Eastern Europe among others.
The integration of Alico into MetLife is scheduled for completion towards the end of this year. The majority of employees currently working for Alico will be retained, in favour of a smooth integration process into MetLife.
Insurance Companies mentioned:
American International Group, Inc. (AIG), a world leader in insurance and financial services, is the leading international insurance organization with operations in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional and individual customers through the most extensive worldwide property-casualty and life insurance networks of any insurer. In addition, AIG companies are leading providers of retirement services, financial services and asset management around the world. AIG’s common stock is listed on the New York Stock Exchange, as well as the stock exchanges in Paris and Tokyo.
AIA is a Hong Kong-based life insurance company doing business across Asia that has been in business since 1919. They service over 20 million policies through 23,000 employees and 300,000 agents throughout markets in Asia, including; Vietnam, Thailand, Taiwan, South Korea, Singapore, Philippines, New Zealand, Malaysia, Macau, Indonesia, India, Hong Kong, Mainland China, Brunei and Australia.
Alico provides a broad and innovative range of insurance and savings products to individual customers, corporate clients and high net worth customers. With products to support every aspect of their customers’ lives, and provide comprehensive cover for the employees and commercial needs of their business clients.
Possessing over 140 years of insurance expertise, MetLife aims to be an innovator in the field of international Life insurance. Globally, MetLife is able to offer its clients accident and health insurance, life insurance, disability income protection, and retirement and savings products.
Prudential has been in the insurance and financial services business since 1848. Today they operate throughout the UK, US and Asia offering international health insurance and retirement planning services, supported by 27,000 employees worldwide.
Feb
3
American International Group to sell American Life Insurance Company
Filed Under AIG, Insurance Company, International Healthcare, Life Insurance, MetLife | 20 Comments
American International Group Inc. has confirmed on Tuesday that it is in talks with MetLife Inc. to sell the groups’ life insurance unit, the American Life Insurance Company. Rumors surfaced last month with regards to a potential MetLife deal for the AIG unit, and market analysts speculated that such a move would be incredibly beneficial to MetLife as the American Life Insurance Company has an extensive international health and life insurance business operating in more than 50 countries around the world.
Despite the discussions around the American Life Insurance Company, AIG has stipulated that it will not consider the sale of two Japanese life insurance companies which it took off the market in 2009. Star Life Insurance Co. and AIG Edison Life Insurance Co. were up for sale following the turning of AIG’s fortunes in 2008 at the peak of the global financial crisis, but had been removed from the market by the fourth quarter of 2009.
With a number of global insurance providers supposedly in position to increase their international reach through acquisitions, some analysts have speculated that AIG may be willing to play in a competitive market. However, AIG spokesman Mark Herr stated of both Star Life and AIG Edison that “they are good businesses and we are pleased to have them in the AIG family.”
The move for MetLife to buy the AIG unit may have its roots in the sharp loss of profits experienced by MetLife in the fourth quarter of 2009. MetLife has stated that the company’s profit dropped by approximately 70% as it paid out more benefits and claims.
Insurance Companies Mentioned:
The American International Group is a leading international insurance organization with operations in more than 130 countries and jurisdictions globally.
Possessing over 140 years of insurance expertise, MetLife aims to be an innovator in the field of international Life insurance. Globally, MetLife is able to offer its clients accident and health insurance, life insurance, disability income protection, and retirement and savings products.