MetLife, the US insurance company best known for its Snoopy icon and a US$16.2 billion takeover of American Life Insurance Company (Alico), wants to expand in the Asia-Pacific region through a combination of organic growth and acquisitions.
The big insurer completed the buyout of Alico from American International Group this month, increasing its reach to a total of 64 countries, up from 17, as Alico has large operations in Latin America, Europe, the Middle East, Japan, and Africa.
After the takeover MetLife's total assets stood at US$617.3 billion, up from US$573.9 billion at the end of June. This made it the world's largest international insurance company in terms of capital and number of markets of operation.
The acquisitions have not widened the footprint of MetLife in the Asia-Pacific, however, because AIG had used AIA to expand in the region and left Alico to expand only in Japan. As such, even after the takeover, MetLife still operates in the existing markets of South Korea, the mainland, Hong Kong, Taiwan, and Australia.
'We did not get an extra country in the region from the transaction, but we did get a whole lot of other capability,' Peter Smyth, regional managing director of MetLife Asia-Pacific, said.
The deal added value by introducing new product design experts, sales channels and market segments, he said, and while MetLife sold more life insurance policies, Alico was strong in accident and health and retirement products.
Alico also targeted high net worth clients which was different from MetLife's focus on the middle market. In terms of sales, Alico is strong in direct marketing and agency while MetLife sells through bank partners including Citibank and Fubon Bank (Hong Kong).
