MetLife denies plans to sell off Australian operations

Market participants say MetLife has been keen to leave the Australian market for some time. However, the challenge is finding buyers.

MetLife says it doesn’t plan to sell its Australian operations right now, but some are betting a divestment may soon be on the cards.

There is talk that MetLife could be shaping to flog its group life insurance operations.

Investment bankers are said to have been sounding out prospective buyers.

The sales pitch is that a party could buy capital in the business and pay more over time to keep group life insurance contracts in an earn-out structure.

Market participants say MetLife has been keen to leave the Australian market for some time. However, the challenge is finding buyers. An acquirer would be likely to pay about $300m for the business, say analysts.

The New York-listed MetLife is among the largest global providers of insurance, annuities and employee benefit programs, with 90 million customers in over 60 countries.

It is the third-largest group life insurer in Australia, with a single contract covering a group of people, typically an employer or a large scale organisation.

It describes itself as a leading provider of life insurance, partnering with employers, super funds and financial advisers.