AM Best has affirmed the Financial Strength Rating (FSR)
of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term
ICR) of “aa-”of Metropolitan Life Insurance Company (MLIC) (New
York, NY) and Metropolitan Tower Life Insurance Company (Lincoln,
NE). Concurrently, AM Best has affirmed the Long-Term ICR of “a-”
and the Long- and Short-Term Issue Credit Ratings (Long-Term IR;
Short-Term IR) of MetLife, Inc. (MetLife) (headquartered in New
York, NY) [NYSE: MET].
In addition, AM Best has upgraded the FSR to A+ (Superior) from
A (Excellent) and the Long-Term ICRs to “aa-” from “a+” of
MetLife’s dental and vision subsidiaries, consisting of the
SafeGuard Health Plans, Inc. providers, and Delaware American Life
Insurance Company (Wilmington, DE). At the same time, AM Best has
upgraded the FSR to A+ (Superior) from A (Excellent) and the
Long-Term ICR to “aa-” from “a” of MetLife Global Benefits, Ltd.
(Cayman Islands).
The outlook of these Credit Ratings (ratings) is stable. The
aforementioned subsidiaries collectively are referred to as
Metropolitan Life Insurance Group. (See below for a detailed
listing of companies and Long- and Short-Term IRs.)
The ratings of Metropolitan Life Insurance Group reflect its
balance sheet strength, which AM Best categorizes as strong, as
well as its strong operating performance, very favorable business
profile and appropriate enterprise risk management (ERM). The
rating upgrades of the SafeGuard Health Plans, Inc. providers,
Delaware American Life Insurance Company and MetLife Global
Benefits, Ltd. reflect these subsidiaries strategic importance to
the MetLife organization, which is increasingly focused on employee
benefits and retirement income solutions in its global and U.S.
markets, a high degree of integration and a demonstrated track
record of supporting MetLife’s business strategy.
Metropolitan Life Insurance Group’s strong balance sheet
assessment is supported by qualitative considerations of its
reserve profile and a consolidated view of capital adequacy, which
is enhanced by the liquidity and financial flexibility of the
holding company that has historically maintained significant levels
of excess liquidity. Additionally, the ratings recognize the
reduction of risk on its balance sheet related to equity and
interest rate risk as MetLife Holding’s product portfolio declines
over time. Financial leverage is approximately 25%, and interest
coverage, excluding holding company liquidity, is strong at
approximately 8 times interest payments.
MetLife continues to generate profitable revenue growth and
consistently positive operating metrics on a statutory and GAAP
basis. Earnings are diversified geographically and volatility is
lower within its group benefits segment. MetLife has made
improvements in its operating efficiency ratio, and although there
has been some volatility in recent quarters due to variable
investment income returns, adjusted GAAP operating earnings are
strong. AM Best views Metropolitan Life Insurance Group’s operating
performance as strong, with the group focused on higher margin
product lines with lower volatility of returns, expense
efficiencies and a consistent trend of double-digit GAAP returns on
equity. ERM is viewed as appropriate, as the group has continued to
focus on improving its overall program and capital modeling.
The ratings also reflect the organization’s strong, defensible
market positions in its core lines of business and the diversity of
its products and geographic markets in the United State, Asia and
Latin America, as well as the Europe, Middle East and Africa
region.
The FSR has been upgraded to A+ (Superior) from A (Excellent)
and the Long-Term ICRs to “aa-” from “a+”, each with a stable
outlook, for the following dental and vision subsidiaries of
MetLife, Inc.:
- SafeGuard Health Plans, Inc. (CA)
- SafeGuard Health Plans, Inc. (FL)
- SafeGuard Health Plans, Inc. (TX)
The following Short-Term IRs have been affirmed:
MetLife Funding, Inc.— -- AMB-1+ on commercial paper
MetLife, Inc.— -- AMB-1 on commercial paper
The following Long-Term IRs have been affirmed, each with a
stable outlook:
MetLife, Inc.— -- “a-” on USD 1.0 billion 4.75% senior unsecured
notes, due 2021 -- “a-” on USD 500 million 3.048% senior unsecured
debentures, due 2022 -- “a-” on USD 1.0 billion 4.368% senior
unsecured debentures, due 2023 -- “a-” on USD 1.0 billion 3.60%
senior unsecured notes, due 2024 -- “a-” on GBP 350 million 5.375%
senior unsecured notes, due 2024 -- “a-” on USD 500 million 3.60%
senior unsecured notes, due 2025 -- “a-” on USD 500 million 3.0%
senior unsecured notes, due 2025 -- “a-” on JPY 25.2 billion 0.495%
senior unsecured notes, due 2026 -- “a-” on JPY 64.9 billion 0.769%
senior unsecured notes, due 2029 -- “a-” on USD 1.0 billion 4.55%
senior unsecured notes, due 2030 -- “a-” on JPY 10.7 billion 0.898%
senior unsecured notes, due 2031 -- “a-” on USD 600 million 6.50%
senior unsecured notes, due 2032 -- “a-” on USD 750 million 6.375%
senior unsecured notes, due 2034 -- “a-” on JPY 26.5 billion 1.189%
senior unsecured notes, due 2034 -- “a-” on USD 1.0 billion 5.70%
senior unsecured notes, due 2035 -- “a-” on JPY 24.4 billion 1.385%
senior unsecured notes, due 2039 -- “a-” on USD 750 million 5.875%
senior unsecured notes, due 2041 -- “a-” on USD 750 million 4.125%
senior unsecured notes, due 2042 -- “a-” on USD 1.0 billion 4.875%
senior unsecured notes, due 2043 -- “a-” on USD 500 million 4.721%
senior unsecured debentures, due 2044 -- “a-” on USD 1.0 billion
4.05% senior unsecured notes, due 2045 -- “a-” on USD 750 million
4.6% senior unsecured notes, due 2046 -- “bbb” on USD 1.25 billion
6.40% junior subordinated debentures, due 2066 -- “bbb” on USD 750
million 9.25% junior subordinated debentures, due 2068 (exchanged
for and replaced trust securities originally issued by MetLife
Capital Trust X) -- “bbb” on USD 500 million 10.75% junior
subordinated debentures, due 2069 -- “bbb” on USD 600 million
floating rate non-cumulative preferred stock, Series A -- “bbb” on
USD 1.5 billion 5.25% fixed to floating rate non-cumulative
preferred stock, Series C -- “bbb” on USD 500 million 5.875%
non-cumulative preferred stock, Series D -- “bbb” on USD 805
million 5.625% non-cumulative preferred stock, Series E -- “bbb” on
USD 1.0 billion 4.75% non-cumulative preferred stock, Series F --
“bbb” on USD 1.0 billion 3.85% non-cumulative preferred stock,
Series G
MetLife Capital Trust IV— -- “bbb” on USD 700 million 7.875%
exchangeable surplus trust securities (junior subordinated), due
2067
Metropolitan Life Insurance Company— -- “a” on USD 250 million
7.80% surplus notes, due 2025 -- “a” on USD 150 million 7.875%
surplus notes, due 2024 (originally issued by New England Mutual
Life Insurance Company)
Metropolitan Tower Life Insurance Company— -- “a” on USD 107
million 7.625% surplus notes, due 2024 (originally issued by
General American Life Insurance Company)
Metropolitan Life Global Funding I— “aa-” program rating --
“aa-” ratings on the notes issued hereunder
The following indicative Long-Term IRs have been affirmed, each
with a stable outlook:
MetLife, Inc.— -- “a-” on senior unsecured debt -- “bbb+” on
subordinated debt -- “bbb” on preferred stock
This press release relates to Credit Ratings that have been
published on AM Best’s website. For all rating information relating
to the release and pertinent disclosures, including details of the
office responsible for issuing each of the individual ratings
referenced in this release, please see AM Best’s Recent Rating
Activity web page. For additional information regarding the use and
limitations of Credit Rating opinions, please view Guide to Best’s
Credit Ratings. For information on the proper media use of Best’s
Credit Ratings and AM Best press releases, please view Guide for
Media - Proper Use of Best’s Credit Ratings and AM Best Rating
Action Press Releases.
AM Best is a global credit rating agency, news publisher and
data analytics provider specializing in the insurance industry.
Headquartered in the United States, the company does business in
over 100 countries with regional offices in New York, London,
Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more
information, visit www.ambest.com.
Copyright © 2020 by A.M. Best Rating
Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20201217006140/en/
Louis Silvers Senior Financial Analyst +1 908
439 2200, ext. 5802 louis.silvers@ambest.com
Christopher Sharkey Manager, Public Relations
+1 908 439 2200, ext. 5159
christopher.sharkey@ambest.com
Rosemarie Mirabella Director +1 908 439 2200,
ext. 5892 rosemarie.mirabella@ambest.com
Jim Peavy Director, Communications +1 908 439
2200, ext. 5644 james.peavy@ambest.com
MetLife (NYSE:MET)
Historical Stock Chart
From Mar 2024 to Apr 2024
MetLife (NYSE:MET)
Historical Stock Chart
From Apr 2023 to Apr 2024