Dec 23 (Reuters) - The asset management arm of U.S.

insurer giant MetLife ( MET ) has agreed to buy PineBridge

Investments from Hong Kong billionaire Richard Li's Pacific

Century Group (PCG) in a deal valued at up to $1.2 billion, the

companies said on Monday.

The acquisition will enable MetLife ( MET ) to expand its asset

management capabilities, reflecting an emerging trend among

insurers looking to leverage their assets for developing

tailored investment platforms.

MetLife Investment Management's assets include public fixed

income, private capital and real estate investments. As of Sept.

30, it managed $609.3 billion in total assets.

Following the completion of the PineBridge acquisition,

its assets under management (AUM) are expected to exceed $700

billion.

The acquisition excludes PineBridge's private equity

funds group and its joint venture in China.

PineBridge was established in 1996 as AIG's

investment advisory and asset management business and was

acquired by Li's PCG in 2010 for $277 million.

Reuters

reported

in February that PCG was seeking to sell its majority stake

in the asset manager and had hired JPMorgan ( JPM ) to run the

process.

The deal includes an $800 million upfront cash payment, with

up to $400 million in additional payments based on meeting 2025

financial targets and a multi-year earnout structure, the New

York-based company said.

PCG said it will concentrate on enhancing its core

strengths through the development of Huatai-PineBridge, a joint

venture in China, and a "uniquely positioned private fund

business."

"With MetLife Investment Management's extensive platform and

longstanding history, PineBridge is well-positioned to broaden

its offerings and continue delivering value to clients

worldwide," PCG said.