MetLife completes $10bn variable annuity risk transfer deal with Talcott

Core Insights - MetLife has completed a $10 billion variable annuity risk transfer transaction with Talcott Resolution Life Insurance Company, which aims to reduce MetLife's portfolio risk while retaining policy administration and servicing responsibilities [1][3] Group 1: Transaction Details - The reinsurance structure involves modified coinsurance and funds withheld arrangements, with MetLife expecting to give up approximately $100 million in annual adjusted earnings, partially offset by expected annual hedge cost savings of around $45 million [2] - This transaction supports MetLife's strategy to decrease exposure in its legacy business and brings the total reserves reinsured by Talcott in 2025 to $14 billion [3] Group 2: Related Developments - Earlier in the year, Chariot Reinsurance was established as a Bermuda-based Class E life and annuity reinsurance practice, partnering with MetLife and General Atlantic, and assumed reinsurance responsibilities for liabilities totaling approximately $10 billion from a MetLife subsidiary [4] - In September, MetLife appointed Adrienne O'Neill as the new executive vice-president and chief accounting officer, responsible for managing the company's accounting functions [5]