The rating agencies are wondering how a big life insurance acquisition will affect the acquirer’s relationship with a large life reinsurance subsidiary.[@@]
MetLife Inc., New York, announced Monday that it intends to use $11.5 billion in cash and stock to acquire Travelers Life & Annuity from Citigroup Inc., New York.
MetLife now owns 52% of the stock of Reinsurance Group of America Inc., St. Louis, but MetLife executives have suggested that the company might sell some assets, including its majority stake in RGA, to pay for the Travelers Life deal.
Standard & Poor’s Ratings Services, New York, has reacted by putting the AA minus ratings of RGA and its main subsidiaries on CreditWatch Negative.
The Chicago office of Fitch Ratings has reaffirmed the AA minus insurer financial strength rating that it has assigned RGA.