NEW YORK (
costs to integrate American International Group's
ALICO will be
, said William Toppeta, president of MetLife's international business at an investor conference in Tokyo.
Toppeta said that the integration will cost $500 million over three years and annual savings will be $100 million. The company had originally projected that the integration would cost $300 million-$350 million and had expected annual savings of $50 million. Topetta added that teams to help with the integration had already been established.
The higher integrations costs are coming in from IT costs, branding and people costs, "severence costs," said Toppeta.
"The Alico transaction is still on track to close November first," said Toppeta. "This positions MetLife as a global powerhouse."
Topetta added the Alico transaction is expected to be 40% of MetLife's earnings once integrated.
--Written by Maria Woehr in New York.
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