MetLife Completes Acquisition of AIG's Alico

MetLife (New York) has announced that it has completed its acquisition of American Life Insurance Company (Alico) from AIG for $16.2 billion.

Consideration paid by MetLife to AIG for the acquisition of Alico consisted of $7.2 billion in cash consideration after adjustments and $9.0 billion in MetLife equity and other securities, subject to closing adjustments, according to a MetLife statement. The securities portion of the purchase price consisted of 78.2 million shares of MetLife common stock, 6.9 million shares of contingent convertible preferred stock and 40 million equity units. The values of the common and preferred stock are based on the closing price of MetLife’s common stock on October 29, the trading date prior to closing.

“With our acquisition of Alico complete, MetLife has become the premier global life insurance and employee benefits powerhouse,” commented C. Robert Henrikson, chairman, president & chief executive officer of MetLife, Inc. “For many years, MetLife has held strong, leadership positions in the U.S., Mexico, Korea and Chile that we can now build upon with our reach into more than 60 countries around the globe. This transaction delivers on our global growth strategies, adding significant scale and reach to MetLife’s international footprint. It also further diversifies and balances our geographic mix and product offerings and significantly increases the company’s distribution power.

Anthony O'Donnell has covered technology in the insurance industry since 2000, when he joined the editorial staff of Insurance & Technology. As an editor and reporter for I&T and the InformationWeek Financial Services of TechWeb he has written on all areas of information ... View Full Bio