I know they are only “Rumors” and even doing my own reading of insiderP&C , there doesn’t appear to be anything set in stone. I’m just left to wonder, if rumors are true would there be another major layoff before or after the acquisition? Do I at least have job security until then or do I start looking?
10 replies (most recent on top)
12/11/2020 - Zurich Insurance to Buy MetLife’s P&C Unit for $4 Billion
No longer a rumor. Selling P&C is a done deal. As is selling the Russia business for which there was no announcement.
Lots of questions on the P&C deal. Release says we have a 10 year deal to let Farmers sell on our Group Benefit platform. What does Met get out of it?
"Letting each company do what it does best.." – Why is it that Met could not do P&C best??
Looks like MetLife sold MetLife Russia while we were all thinking about P&C:
Has anyone heard anything about a timeline?
If they announce soon how long does process take? or is the process of the sale almost done but the time they announce it?
do you think you would have to interview for a position with the new company?
@10mat+175Js6sK: Nice post. Nice questions. My take below.
- how long will it take? Since home and auto issues a new policy every 1/2 year or year, I'd say it won't take long. Maybe 2 years on the outside.
- will Met find new assignments or will Farmers make job offers?
I'd guess that the employees working on the business will go with the sale and that it will be up to the buyer to decide what to do. If you are lucky, you might get an incentive bonus from MetLife not to quit before the offer is consummated. If you do, you will be bound not to tell anyone about it.
- and if MetLife will offer any type of severance package?
Not likely. If you are part of the business you will be "sold" with it. If not, you won't be affected unless maybe your work is split between P&C business and something else. Then, it's kind of gray.
From MetLife's point of view, it allows them to reduce their headcount without having to do the dirty work of actually terminating anyone.
I would expect that within a year, the buyer would integrate the policies into it's own system. Workers whose need is proportional to the number of policies (sales, claims) would likely stay with the new company. Workers whose need is non-proportional would likely be let go since the buyer already would have such capability. (Finance, Actuarial, Accounting, Marketing, Advertising, IT)
So obviously more than just a rumor and a likely announcement by Dec 15th.
The entire P&C division will have potential for layoff...thousands of employees from claims, actuary, underwriting, management, service, tech, and sales.
The questions are many - but the biggest may be how long will it take, will Met find new assignments or will Farmers make job offers, and if MetLife will offer any type of severance package. You would hope at least the latter as they are being wrote a check for nearly $4B.
Are there any recent examples in the insurance industry that may serve as guidelines or benchmarks?
That was one of the most levelheaded, objective replies I have ever read on this site. Kudos.
As you say, nothing is set in stone but it's more than a rumor (you can dispense with the emails from your management). A formal bid process has started. They could be testing the waters but this is doubtful. I believe this has been on their minds for years. MetLife will never move up the ladder in terms of size with P&C and they are looking for easier insurance products with less regulation. P&C is not the fit they want. This decision makes a lot of sense. P&C had a decent 2Q especially under the present circumstances. It's a great time to gauge interest and sell the business.
This is all conjecture but I would say any sale, taking into account the bidding process, contract negotiations, regulatory approvals, etc. could take 1-2 years. Then there's the process of keeping the business running while projects are created to migrate the data to the acquiring company. Migrating the data will be a long and laborious process but I think the lion's share of the data could be migrated in the 2-4 year range.
A skeleton crew may need to exist for a number of years for the small amount of the book that may be difficult to transition for various reasons. Depending on where you are in the organization, assuming MetLife is moving full speed ahead to sell P&C, counting from today I would think you have job viability for maybe 4 or 5 years (sale process + data migration process). Could be more or less depending on which department you work for and if you are involved in the data migration process.
You should probably start polishing up your resume and looking for opportunities elsewhere in MetLife (i.e. non-P&C) or externally unless you can retire in 4-5 years.