New York, July 2 (Reuters): Citigroup on Friday said it would realise a gain of $2 billion in its third quarter having sold its Travelers Life & Annuity insurance businesses to MetLife Inc.

The deal transforms MetLife into the undisputed leader in the US individual life insurance sales, displacing rivals American International Group Inc and Northwestern Mutual, and makes it the number two player in annuities sales behind Hartford Financial Services Group.

Citigroup, the world’s largest financial services company, said it received about $10.8 billion in cash and $1 billion (about 22.4 million shares) in MetLife’s common shares. The $2 billion represents an after-tax gain.

MetLife said it expected the deal would provide a modest addition to earnings in the second half of 2005.

As part of the deal, MetLife products will be available through certain Citigroup units, including Smith Barney, Citibank branches, and Primerica in the United States, as well as a number of international businesses, under a ten-year agreement.