A.M. Best has placed under review with developing
implications the financial strength rating (FSR) of A+ (Superior) and
the issuer credit ratings (ICR) of “aa-” of the primary life/health
insurance subsidiaries of MetLife, Inc. (MetLife) (New York, NY)
[NYSE:MET]. Concurrently, A.M. Best has placed the ICR of “a-”, as well
as all issue ratings of MetLife, under review with developing
implications.
Additionally, A.M. Best has placed under review with developing
implications the FSR of A (Excellent) and the ICRs of “a+” of MetLife’s
property/casualty companies, consisting of Metropolitan Property and
Casualty Insurance Company, seven fully reinsured subsidiaries and a
separately rated subsidiary, Metropolitan Group Property and Casualty
Insurance Company (together referred to as MetLife Auto & Home).
(See link below for a detailed listing of the companies and ratings.)
The actions follow MetLife’s public announcement on Jan. 12, 2016 that
it will pursue the separation of a substantial portion of its U.S.
retail segment and is evaluating structural alternatives for this
separation. These alternatives include a public offering of shares in an
independent, publicly traded company, a spin-off or a sale. MetLife is
still in the beginning stages of this process and additional information
will become available as the transaction unfolds, including details on
both the corporate and capital structure of the two companies. A.M. Best
notes that the new retail focused company would maintain the more
capital intensive lines of business, including variable annuities with
living benefit riders and universal life with secondary guarantees,
which would result in a significant amount of exposure to market
volatility and interest rate risk. However, at this time the level of
capitalization for this company has not been set.
A.M. Best acknowledges that MetLife will maintain its industry leading
position in the group insurance market and will continue to focus on
growing its corporate benefit funding segment, which includes structured
settlements and pension risk transfer business. The company will also
focus on increasing its international presence in which it holds several
market leading positions in both mature and emerging markets.
The ratings will remain under review until A.M. Best receives more
definitive direction from the management of MetLife on the final
separation strategy to be pursued, as well as the ultimate capital
structure and allocation between the organizations.
For a complete listing of the members of MetLife, Inc.’s FSRs, ICRs and
issue ratings, please visit MetLife,
Inc.
This press release relates to rating(s) that have been published on
A.M. 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 A.M. Best’s Recent
Rating Activity web page.
A.M. Best is the world’s oldest and most authoritative insurance
rating and information source. For more information, visit www.ambest.com.
Copyright © 2016 by A.M. Best Company, Inc. and/or its
affiliates. ALL RIGHTS RESERVED.
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