Insurer MetLife is intent on selling one part of its life insurance services in the United States. The group believes that some regulatory requirements are too much to bear, requiring that shareholder’s equity be increased in an unfavorable fashion. The courts established that part of the retail activities of the insurer fall under the system called Systemically Important Financial Institution. As such, MetLife is required to increase its shareholder’s equity, which reduces return for its shareholders.
Ever since, the group has been contemplating several options on the table in order to overcome the problem by means of a public issuance of shares giving rise to an independent listed company, a sale or a split. MetLife will no longer sell life and annuity insurance policies in the United States once this measure comes to its end.