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MetLife Closes On Travelers Life Deal

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MetLife Inc. has completed a deal to acquire the Travelers Life & Annuity business and most international insurance operations from Citigroup Inc. for $11.8 billion in cash and stock.[@@]

Some skeptics have questioned how much the deal will do to increase profits at MetLife, New York, but MetLife Chairman Robert Benmosche says the deal will help the company by significantly increasing the size of its insurance and annuity operations while also expanding the company’s retirement and savings operations.

Going forward, Citigroup has agreed to distribute MetLife products through its Primerica and Smith Barney units and its Citigroup retail bank branches, Benmosche says.

The Citigroup distribution agreements “provide us with one of the broadest distribution networks in the industry,” Benmosche says.

The final payment for the deal included $10.8 billion in cash and 22.4 million shares of MetLife stock with a value of about $1 billion, MetLife says.

In a related move, MetLife says it has agreed to acquire CitiStreet Associates, a Citigroup unit that sells 403(b) and 457 annuity products designed for nonprofit employers’ retirement plans.