MetLife says it plans to carve off its U.S. life insurance business via a sale, spinoff or an initial public offering as the parent company challenges harsher regulatory oversight.
The New York company said the potential stand-alone business would have about $240 billion in total assets and represent about 20 percent of its operating earnings. MetLife Inc. would keep its property-casualty and other businesses under the proposed plan.
MetLife has been challenging its designation as a “systemically important” entity that’s deemed “too big to fail,” and therefore subject to greater government oversight and, MetLife says, exorbitant costs.
The company said Tuesday it believes the independent new company would compete more effectively and allow MetLife to benefit from reduce capital requirements.
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MetLife employs more than 1,000 people in Cary, where it has its Global Technology Campus.
A spokesman said MetLife plans to locate the headquarters of the independent company in Charlotte, and that the move will have no impact on its Cary campus.
In after-hours trading, MetLife shares jumped almost 8 percent to $45.21.