Financial terms of the deal were not disclosed. The transaction is expected to close in the second quarter of 2021.
The buying entity is The Farmers Exchanges, a group of three reciprocal insurers based in Woodland Hills. Upon completing the acquisition, it will enter a 10-year exclusive distribution agreement with MetLife under which Farmers will be able to offer personal lines of coverage on MetLife's U.S. Group Benefits platform. It will also assume MetLife Auto & Home’s 3,500 U.S. employees, as well as access to about 250 of MetLife’s affinity groups.
MetLife Auto & Home had 2.4 million policies in play and $3.6 billion net written premiums in 2019. According to a statement from Farmers, the acquisition will make it the sixth-largest personal lines insurer in the U.S.
"The acquisition of MetLife Auto & Home is a unique opportunity to accelerate our growth and gives us a significant presence in all 50 states,” Farmers Chief Executive Jeff Dailey said in a statement.