Metlife Inc (MET) has confirmed that it’s in talks to sell its US adviser group to MassMutual.
Metlife’s statement on the matter only confirmed that it was in talks with MassMutual to sell its MetLife Premier Client Group. The company said that no deal has been confirmed and that it’s possible that one won’t materialize.
Metlife is looking to spin off and sell parts of its businesses due to greater government oversight. MassMutual also confirmed that it was in talks to acquire the company’s U.S. advisory group, but that it didn’t have a time frame for any possible agreement, reports U.S. News & World Report.
“MET could see some relief from the likely need to alter commission and fee arrangements in response to likely Department of Labor implementation of new fiduciary standards,” John Nadel , a Piper Jaffray analyst, told Bloomberg.”Generally speaking, exiting the career agency, or owned distribution channel, would negate any conflicts, perceived or actual, from being both a ‘manufacturer’ of product as well as a distributor.”
MET shares were up 1% as of Thursday afternoon.
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