MetLife Inc., the largest U.S. life insurer, plans to separate much of the retail business in that country as Chief Executive Officer Steve Kandarian works to shrink the company to limit federal oversight.
The insurer is weighing a possible sale, spinoff or public offering of the operation, New York-based MetLife said Tuesday in a statement. The new company would have about US$240 billion of assets and accounts for approximately 20 percent of MetLife’s operating earnings, according to the statement.
MetLife joins General Electric Co.’s finance unit in seeking to simplify operations after being designated by a U.S. panel as a non-bank systemically important financial institution, a tag that can lead to stricter limits on the balance sheet. Kandarian has sought to reverse that designation in court.
The unit faces “higher capital requirements that could put it at a significant competitive disadvantage,” Kandarian said in the statement. “Even though we are appealing our SIFI designation in court and do not believe any part of MetLife is systemic, this risk of increased capital requirements contributed to our decision to pursue the separation of the business.”
MetLife said Executive Vice President Eric Steigerwalt will lead the new company.
Tech company signs up Trans-Tasman insurer
Technology company SSP has announced that it has signed a deal with CBL Insurance to implement its Pure Insurance and E5 Workflow solution.
The move will help improve efficiency at the expanding business as the technology will enable the company to move through binding and claims faster.
Carden Mulhollands, CFO of CBL Insurance, said that the move comes at the right time for the business as it looks to increase its global footprint.
“As a recently public listed company in New Zealand and Australia, innovation and efficiency is high on our priority list,” Mulholland said.
“Implementing SSP Pure Insurance and E5 workflow will enable us to automate the processing of highly complex charging and commission structures, provide enhanced efficiencies, and provide the management team with information that will enable them to make high quality informed decisions on the operational side of the business.”
Paul Miller, SSP general manager, Asia Pacific said that the technology provider has worked alongside the insurer to get a better understanding of its business in order to customise an offering which suits the business needs.
“We have built a strong and trusted advisor relationship with CBL, taking time to understand the business and ensuring that CBL’s strict high level requirements which included processing of high value multi-currency bordereaux, automating commission structures, claims processing and access to information,” Miller said.
“This understanding has enabled SSP to customise the right solution for the client.”
In September last year, CBL announced that it had acquired Australian specialty insurer Assetinsure for $41 million.
Director of major insure retires
QBE non-executive director John Graf has retired from the board as of 31 December 2015, the company has announced.
QBE board chairman Marty Becker said: “John has been a highly valued member of the board. We thank him for his outstanding contribution to the board and wish him every success in his future endeavours.”
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