Citigroup sells life and annuity business
Advisers may have to wait months to get full details of the future direction of Citigroup’s life and annuity businesses in Australia, after the group recently sold its worldwide insurance operations in a deal worth US$11.5 billion.
US insurer MetLife will pay between US$8.5 billion and US$10.5 billion in cash and the remainder in shares for Citigroup’s Travelers Life and Annuity division and almost all if its international insurance businesses, including in Australia.
The deal includes an agreement that allows MetLife to distribute its products through Citigroup businesses worldwide.
But a spokesperson for Citigroup said it could be months before details about the future plans for the Australian business become clear.
Citigroup, though subsidiary Citicorp, had the largest annuity sales of any provider in Australia during the September quarter, writing over $1 billion of new business, according to analysts Plan For Life.
Plan For Life senior consultant Stephen Dingjan said while MetLife’s strategy for Australia was unclear, the group could introduce products that it was associated with in the US, such as income protection, which were not currently offered by Citicorp.
“It is too early to say [what they will do in Australia]. But it seems it is a clear part of their strategy to expand internationally,” he said.
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