In 2017, MetLife, one of the biggest providers of life insurance in the United States, established Brighthouse Financial. The purpose of MetLife establishing Brighthouse Financial was so that the insurance provider could focus solely on selling life insurance, as well as annuities, to individuals. MetLife still continues to exist, but they only focus on selling their products to companies that can be used as employee benefits. The insurance policies that are sold through Brighthouse Financial, on the other hand, are only sold via financial professionals.
In other words, Brighthouse Financial is a spin-off of MetLife.
Are Brighthouse Financial and MetLife the Same Company?
Brighthouse Financial is a new company that was established by MetLife. It is a major provider of life insurance and annuity products, with an estimated worth of $223 billion in assets, and an estimated 2.7 million life insurance policies and annuity contracts currently in force.
While Brighthouse Financial is a spin-off of MetLife, the two are not the same. Brighthouse Financial is an independent company, meaning that they operate completely separate from MetLife. However, while Brighthouse Financial is a completely separate entity from MetLife, meaning that MetLife does not have any direct control over Brighthouse Financial. MetLife, however, is the largest shareholder of Brighthouse Financial, as they retain nearly 20 percent of the common stock.
What Does This Mean?
When MetLife decided to establish Brighthouse Financial, the terms of separation offered common shareholders the ability to receive one share of Brighthouse Financial for every 11 shares of MetLife they held. This was only effective through 5 pm, Eastern Standard Time, on July 19 of 2017. Any common shareholders who sold their shares of MET after this date, but before the end of August 4, 2017, also sold their ability to any Brighthouse Financial common stock. Any MetLife shareholders who owned under 11 shares of common stock or who would have been eligible to receive fractions of the shares, were given cash.
How Does This Affect Policyholders?
If the insurance company that issued your insurance policy was separated from MetLife and became a subsidiary of Brighthouse Financial, there is nothing that you need to do. You will not be charged any fees and there is no action that you will need to take. You will receive information about the change, including how you can contact and receive notifications from Brighthouse Financial. In the event that you do need to take any type of action, you would have been notified.
If you had a financial service representative, that individual will remain the same. As such, you will be able to continue communicating with him or her about any concerns related to your life insurance policy.
The Bottom Line on MetLife and Brighthouse Financial
If you held a life insurance policy that was issued under a company via MetLife and that company became a subsidiary of Brighthouse Financial when the separation of the two entities occurred, there is nothing that you are required to do. While the two companies are completely separate, your life insurance policy will not be affected in any way. You will still receive the same coverage, and all of the stipulations related to your policy will continue to be the same.
You can contact Brighthouse Life Insurance Company if you have any questions, concerns, or comments. Alternatively, you can reach out to the financial service representative that you worked with under MetLife, as this individual will remain the same.
MetLife’s spinoff of Brighthouse Life Insurance company has been extremely successful. The new insurance provider is continuing to grow; they continue to carry a substantial amount of life insurance policies, and their value continues to increase. Don’t forget, if you are a Metlife client and you are looking to price shop, you can compare life insurance quotes here at Life Ant.