Zurich Insurance Group has confirmed that it is currently in discussions regarding a potential takeover of MetLife’s US property and casualty (P&C) business.
The company announced that talks had indeed begun after rumours about an acquisition began circulating in the media.
Reuters had previously reported that a deal with life insurer MetLife could fetch up to $4 billion, with a possible transaction set for as soon as next month.
“Zurich subsidiary, Farmers Group, Inc., is proposing to acquire the business in conjunction with the Farmers Exchanges,” Zurich has now confirmed.
However, the insurer added that the terms of any transaction are subject to negotiations and there can be no assurance that a transaction will take place.
MetLife’s US P&C business primarily offers coverage for homes and automobiles, which could be seen as attractive lines for Zurich given the reduction in claims brought about by the COVID-19 pandemic this year.
Likewise, for MetLife, the deal could represent a way to streamline its operations following a significant Q3 earnings drop.