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MetLife Says Low Rates Could Cost Annuity Unit $2.5 Billion

MetLife Inc. said continued low interest rates could cost the company about $2.5 billion after three-to-five years in the U.S. variable annuity business.

The projection for the so-called deferred acquisition cost is based on Treasury rates holding at levels from September of last year, according to a regulatory filing today from New York-based MetLife, the largest U.S. life insurer.

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