AM Best Affirms Credit Ratings of MetLife, Inc. and Most of Its Life/Health Subsidiaries
AM Best has upgraded the Financial Strength Rating (FSR) of Metropolitan General Insurance Company to A+ (Superior) from A (Excellent) and affirmed the FSR of A+ for most members of Metropolitan Life Insurance Group. Additionally, it affirmed MetLife, Inc.'s Long-Term Issuer Credit Ratings (ICR) at 'aa-' (Superior), with stable outlooks. The ratings reflect strong balance sheet strength, operating performance, and effective enterprise risk management. The group's liquidity and capital adequacy were highlighted as supporting factors. MetLife’s diverse earnings and focus on high-margin products enhance its market position across various regions.
- Upgrade of Metropolitan General Insurance Company's FSR to A+ (Superior).
- Affirmation of A+ (Superior) FSR for Metropolitan Life Insurance Group members.
- Stable outlook for Long-Term ICR of MetLife at 'aa-' (Superior).
- Strong balance sheet strength with good capital adequacy and liquidity.
- Diverse earnings across geographical markets and business lines.
- None.
The ratings reflect Metropolitan Life Insurance Group’s balance sheet strength, which AM Best assesses as strong, as well as its strong operating performance, very favorable business profile and appropriate enterprise risk management (ERM).
Metropolitan Life Insurance Group’s strong balance sheet assessment is supported by its consolidated view of capital adequacy that is enhanced by the liquidity and financial flexibility of its ultimate parent, which historically has maintained significant and steady levels of excess liquidity. Additionally, there has been a trend toward reduced liability risk on the group’s balance sheet, related to equity and interest rate risk as MetLife’s product portfolio declines over time. Financial leverage and interest coverage is at appropriate levels for the ratings.
The group has a history of generating revenue growth and consistently positive operating metrics on a statutory and GAAP basis. Earnings are diversified by geography, business line and distribution channel. Earnings volatility is lower within its group benefits segment. AM Best views Metropolitan Life Insurance Group’s operating performance as strong, with the group focused on enhancing its product offerings, concentrating on higher margin product lines with lower volatility of returns, and expense efficiencies. ERM is viewed as appropriate, as the group focuses 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 FSR of A+ (Superior) and the Long-Term ICRs of “aa-” (Superior) have been affirmed with stable outlooks for the following subsidiaries of
-
Delaware American Life Insurance Company -
Metropolitan Life Insurance Company -
Metropolitan Tower Life Insurance Company -
SafeGuard Health Plans, Inc. (TX) -
SafeGuard Health Plans, Inc. (FL) -
SafeGuard Health Plans, Inc. (CA) -
MetLife Global Benefits, Ltd.
The following Short-Term IRs have been affirmed:
-- AMB-1+ (Strongest) on commercial paper
-- AMB-1 (Outstanding) on commercial paper
The following Long-Term IRs have been affirmed with a stable outlook:
-- “a-” (Excellent) on
-- “a-” (Excellent) on
-- “a-” (Excellent) on
-- “a-” (Excellent) on
-- “a-” (Excellent) on
-- “a-” (Excellent) on
-- “a-” (Excellent) on
-- “a-” (Excellent) on
-- “a-” (Excellent) on
-- “a-” (Excellent) on
-- “a-” (Excellent) on
-- “a-” (Excellent) on
-- “a-” (Excellent) on
-- “a-” (Excellent) on
-- “a-” (Excellent) on
-- “a-” (Excellent) on
-- “a-” (Excellent) on
-- “a-” (Excellent) on
-- “a-” (Excellent) on
-- “a-” (Excellent) on
-- “a-” (Excellent) on
-- “bbb” (Good) on
-- “bbb” (Good) on
-- “bbb” (Good) on
-- “bbb” (Good) on
-- “bbb” (Good) on
-- “bbb” (Good) on
-- “bbb” (Good) on
-- “bbb” (Good) on
Metropolitan Life Insurance Company—
-- “a” (Excellent) on
-- “a” (Excellent) on
Metropolitan Tower Life Insurance Company—
-- “a” (Excellent) on
Metropolitan Life Global Funding I—“aa-” (Superior) program rating
-- “aa-” (Superior) on all outstanding notes issued under the program
The following indicative Long-Term IRs have been affirmed, each with a stable outlook:
-- “a-” (Excellent) on senior unsecured debt
-- “bbb+” (Good) on subordinated debt
-- “bbb” (Good) 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 use of Best’s Credit Ratings, Best’s Performance Assessments, Best’s Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best’s Ratings & Assessments.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in
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Source: AM Best
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