NEW YORK (AP) — MetLife is exploring the sale of its bank business because, while it represents only a small portion of overall income, the company must be regulated as a bank holding company, the insurer said Thursday.
Bank regulations have become stiffer since the financial crisis and being forced to comply with those rules could put the insurer at a competitive disadvantage.
The bank represented 2 percent of MetLife's first quarter operating earnings, yet a large part of the business is governed by regulations written for banks, said CEO Steven Kandarian.
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"In a highly competitive global insurance marketplace, it is imperative that MetLife be able to operate on a level playing field with other insurance companies," he said.
The portion of MetLife Bank business that could be sold includes savings accounts, certificates of deposit and money market accounts. Residential mortgages would still be offered through the MetLife Home Loans business.
MetLife Bank began in 2001 by offering retail savings products through the Internet. The bank's MetLife Home Loans division launched in 2008 following the acquisition of the reverse mortgage business of EverBank LLC, and certain mortgage assets of First Horizon Home Loans from First Tennessee Bank.
MetLife Bank had total assets of $15.6 billion, including $9.3 billion in deposits as of March 31.
MetLife Inc. provides insurance, annuities and employee benefit programs to 90 million customers in over 60 countries including the United States, Japan, Latin America, Asia Pacific, Europe and the Middle East.
Shares rose 94 cents, or 2.3 percent, to $41.91 in morning trading.
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