(Bloomberg) -- Massachusetts Mutual Life Insurance Co. agreed tobuy a distribution network from MetLife Inc., adding 4,000financial advisers as Chief Executive Officer Roger Crandall seeksto expand offerings of annuities, life policies, and disabilitycoverage.

MassMutual will pay $300 million for MetLife Premier ClientGroup and related assets, the seller said Monday in a regulatoryfiling. As part of the deal, MetLife will be the exclusivedeveloper of certain annuity products issued by MassMutual.

The deal adds to MassMutual’s agency force of more than 5,600financial professionals.

The Springfield, Massachusetts-based insurer had about $642billion of assets under management at the end of 2015 and has beenexpanding through acquisitions under Crandall. He agreed in 2012 tobuy a retirement-plans business from Hartford Financial ServicesGroup Inc. and announced a deal last year to purchase almost all ofthe assets of Viability Advisory Group, which helps corporatecustomers analyze benefit plans.

Read: MetLife weighs retail IPO as CEO seeks lessoversight

The MetLife transaction “will result in the transformativecreation of a distribution powerhouse,” Crandall said in astatement. “This unprecedented transaction will position us forstronger future growth.”

Decoupling plan

MetLife announced a plan last month to spin off, sell, or hold apublic offering for much of its U.S. retail unit, an operation thatsells products including variable annuities and life insurance.

MetLife CEO Steve Kandarian is simplifying the New York-basedcompany after it was designated by regulators as a systemicallyimportant financial institution, a tag that can lead to highercapital requirements.

He’s also contending with proposed Department of Labor rules tolimit conflicts of interest in the sale of retirement products.

“By decoupling manufacturing from distribution, our U.S. retailbusiness will be more agile, and both MetLife and the U.S. retailbusiness can achieve significant cost savings,” Kandarian said inthe statement. “This transaction will enable our U.S. retailbusiness to sharpen its focus on its core strength in productmanufacturing while also providing a broader distribution networkthrough the partnership with MassMutual.”

The Labor Department, which require companies to put theirclients interest first, may increase compliance costs for companiesdistributing retirement products.

American International Group Inc. CEO Peter Hancock said lastmonth that the proposal helped push him to sell a broker-dealerunit.

MassMutual will probably incur compliance costs whether or notit expands, according to Mike Fanning, executive vice president ofMassMutual’s U.S. insurance group.

‘Face to face’

“We are in the face-to-face, adviser-driven business so we’regoing to have to comply one way or the other,” Fanning said Mondayin a phone interview. “And having more scale just helps offset thecost of the compliance.”

MetLife plans to save about $250 million a year by exiting theoperation. Estimated savings for the rest of 2016 are about $100million, according to the company’s filing.

The deal is expected to be completed by the middle of 2016, andthe purchase price is not material to MassMutual’s capital andsurplus, Crandall’s company said in the statement. The insurersdisclosed last week that they were in talks for a possibletransaction.

MassMutual will gain advisers particularly on the East Coast andin certain mid-Atlantic states. The insurer will keep its eye outfor more opportunities to bolster its distribution force, Fanningsaid.

‘Always willing’

“We’ve got our hands full to absorb this one, but I think if theright opportunity came up as always, we’re always willing toconsider opportunities if they fit,” he said. “Whenever we see anopportunity that comes in the marketplace to expand thatdistribution footprint, both geographically and just the overallbreadth of what we have, it’s certainly something we want to take alook at.”

Kandarian’s company slipped 29 cents to $39.80 at 2:11 p.m. inNew York, extending its decline for the year to 17 percent.MassMutual is owned by its policyholders.

MetLife was advised by Sandler O’Neill & Partners LP andWillkie Farr & Gallagher LLP, according to the statement.MassMutual used Barclays Plc and Sutherland Asbill & BrennanLLP.

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