MetLife Agent Force Heading for MassMutual?

[Brian Anderson]

This from WSJ’s Leslie Scism:

MetLife Inc. is preparing to part ways with a central force in the company's history: its life-insurance agents.

The nation's largest insurer by assets is in talks to sell a business of roughly 4,000 sales people to Massachusetts Mutual Life Insurance Co., according to people familiar with the situation. The talks are at advanced stages.

Guess MetLife really wants out of that SIFI designation. What will become of Snoopy?

In End of an Era, MetLife Looks To Part With Insurance Agents - NASDAQ.com

 

[DHK]

Time for Mehdi Fakharzadeh to finally retire and collect on his pension.

I wonder if Van Mueller will bother to stick around for all that, or if he'll just be an independent agent?

 

[BYSFG]

Well, and to think I was acquiring information on agent application with Metlife this morning too.

So that leaves what, Prudential. Why does it feel like this is somewhat startling news.

 

[Brian Anderson]

MetLife announced in January they were looking to "shrink" the company to ditch the SIFI designation. This from Bloomberg Jan. 12:

MetLife Inc., the largest U.S. life insurer, plans to separate much of its domestic retail business as Chief Executive Officer Steve Kandarian works to shrink the company amid tighter government oversight.

MetLife would retain units providing workplace benefits and property-casualty coverage along with the corporate benefit funding division that offers pension and retirement products. Kandarian’s company also plans to keep operations in Asia, Latin America, Europe the Middle East and Africa.

The retail unit slated for separation is a provider of variable annuities, where results can be tied to fluctuations in stock markets and interest rates. The new company would also include life insurance entities. MetLife didn’t outline a timetable for the plan, saying the completion of a transaction could depend on market conditions, and also regulatory approvals.

MetLife Weighs U.S. Retail IPO as CEO Seeks Less Oversight - Bloomberg Business

 

[Iwillpay]

Time for Mehdi Fakharzadeh to finally retire and collect on his pension.

I wonder if Van Mueller will bother to stick around for all that, or if he'll just be an independent agent?

Didn't know Mehdi was still around.

Used to see him at the annual MDRT meetings.

He always said insurance was so easy "all I do is talk and make money"

 

[Brian Anderson]

And... the deal is done.

Massachusetts Mutual Life Insurance on Monday agreed to acquire MetLife's Premier Client Group to broaden its geographic reach and expand its dominance in the life insurance industry, the companies said in a release.

"This transaction will enable our U.S. retail business to sharpen its focus on its core strength in product manufacturing while also providing a broader distribution network through the partnership with MassMutual," MetLife CEO Steven Kandarian said, in a statement. "By decoupling manufacturing from distribution, our U.S. retail business will be more agile, and both MetLife and the U.S. retail business can achieve significant cost savings."

The two companies had been reported to be in talks over the unit — which encompasses more than 40 sales and advisory operations and about 4,000 advisors.

Mass Mutual Life Insurance to buy MetLife's US retail advisor force

 

[Tothetop]

I'm interested to see what are the implications of this buy out. I would imagine MassMutual is going to cut ALOT of fat over the next two years. Maybe they will replace poorly performing GA's and offices with better ones from Met or maybe they will strongly enforce production requirements on captive agents so that they can cut costs by terming low performing agents. Of all that though, I would think this would play more of an impact on the brokerage side of the company. With a stronger workforce I would imagine they would focus their energy now on the captive side because they are the face of the company. Maybe they will get rid of the brokerage side altogether and do what NYL did which was grandfather-in producing brokers and implement premium requirements for new brokers.

I'm actually more interested to see what Met's next move will be. The only thing I can think is that they will now on only offer contracts through BGA's.

 

[DHK]

Mass sure shook things up in California about 5 years ago when they fired nearly every GA. The ripple effect was that these disenfranchised GAs contracted with Ohio National as career agencies in a PPGA state.

My guess would be that anybody who isn't planning to move to MassMutual, will probably contract with Ohio National as an independent.

 

[Newby]

Who gets control of Snoopy?

 

[YourFamilyBank]

We have had a group of MetLife career agents show up with us over the past few months. I didn't think so much of it, until the news broke here that they were in talks and then now the final word. I assume they smelled something coming.

I'm happy.. They are killing it!