Farmer takes a wife

11 December 2020 By Lisa Jucca Follow @LJucca

Mario Greco struck a shrewd, if somewhat complicated, $4 bln deal to buy MetLife’s U.S. property and casualty businesses. These should generate a 10% return on the minimal capital invested. Zurich’s greater American tilt should ensure its outperformance against European rivals.

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Zurich Insurance said on Dec. 11 its U.S. subsidiary Farmers Group and its partner Farmers Exchanges, a mutual insurance business, had agreed to acquire the U.S. property and casualty business of rival MetLife for $3.94 billion.

Zurich’s subsidiary will acquire the business and then sell it to Farmers Exchanges for $1.51 billion, thus involving a net consideration for Zurich of $2.43 billion.

The business to be acquired had $3.6 billion of net written premiums in 2019.

Zurich has delivered a total return of 115% to investors since Chief Executive Mario Greco took the helm on May 1, 2016, better than its large European rivals.

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