MetLife Will Aquire BMA's Group Benefits Division

New York-based insurance giant MetLife has reached an agreement to acquire the Group Workplace Benefits Division of the Business Men's Assurance Co., a Kansas City, Mo.-based subsidiary of Assicurazioni Generali SpA.

Under the agreement, MetLife will acquire $100 million of group life and long- and short-term disability premiums, which are marketed primarily to small and mid-sized businesses.

The transaction is subject to approval by the New York Insurance Department MetLife plans to maintain the division's current operations in Kansas City and 17 field offices across the country. The company will obtain software and administrative platforms necessary to manage and grow the business, MetLife said.

The purchase of BMA's portfolio will increase MetLife's small group business by 35% and increase its small group sales force by 40%, the company said in a statement about the planned acquisition.

"MetLife's position in the small group marketplace will be significantly strengthened as a result of this acquisition, "said Edward Reynolds, vice president in charge of MetLife's Small Business Center.