Major insurer Metlife has moved to sharpen its focus on its core business streams by selling its annuity and pension business to Challenger Life.
The sale, announced today, will see Metlife sell its trustee company, Metlife Trustee Pty Ltd, to Challenger with all resources associated with Metlife’s annuity and pension business also being transferred along with systems and records.
Metlife said people working within the businesses would be offered similar positions with Metlife working closely with Challenger to ensure a seamless transition for financial planners and customers.
Commenting on the proposed transaction, Metlife Insurance chief executive Neil Mason said it would free the company’s growth allowing it to focus its resources more closely on its core businesses including Group Life, Bancassurance and Direct Marketing.
A spokesman said the move followed a decision taken in around May last year to de-emphasise the distribution of annuity and pension products.
For its part, Challenger has said the transaction will extend its distribution and strengthen its position in the capital guaranteed pension sector.
