MetLife (MET +1.8%) reportedly started a sale process for its P&C business with a potential price of $3B-$4B, a price that “seems reasonable for a personal lines business with a solid track record,” say KBW analysts Ryan Krueger and Meyer Shields in a note released late Thursday.
Refers to article in Inside P&C.
The KBW analysts note that the business “never seemed like a complete strategic fit despite MET’s worksite distribution efforts.”
They see Berkshire Hathaway (BRK.A +1.3%) (BRK.B +1.0%), Travelers (TRV +0.4%), and Hartford (HIG +0.7%) as potential acquirers.
Allstate’s (ALL -0.2%) pending acquisition of National General “probably precludes another major deal,” they wrote.
Among non-publicly traded companies, State Farm, Liberty Mutual, Farmers, Nationwide, and American Family could be interested.
Regarding a potential sale’s effect on MET: “Assuming a $3.5B sale price, $3.2B of after-tax proceeds, $2B-$3B of incremental share repurchase, we