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Press release from Business Wire

A.M. Best Comments on the Ratings of MetLife, Inc. and Its Insurance Subsidiaries

Friday, March 16, 2012

A.M. Best Comments on the Ratings of MetLife, Inc. and Its Insurance Subsidiaries15:58 EDT Friday, March 16, 2012 OLDWICK, N.J. (Business Wire) -- A.M. Best Co. has commented that the financial strength, issuer credit and debt ratings of MetLife, Inc. (MetLife) (New York, NY) (NYSE: MET) and its insurance subsidiaries are unchanged following the Federal Reserve's report that MetLife has missed stress test targets during its participation in the Federal Reserve's 2012 Comprehensive Capital Analysis and Review. The Federal Reserve also has objected to MetLife's incremental capital distribution plan including the $2 billion stock repurchase. The outlook for all ratings is stable. A.M. Best has analyzed the pertinent information and decided that at this time there is no ratings impact from these events. Capital within MetLife is expected to accumulate stemming from the Federal Reserve's rejection of MetLife's increased capital deployment plans. While MetLife did pass the Federal Reserve's projected minimum Tier-One common capital ratio, the Federal Reserve's projected bank total risk-based capital ratio fell short of the minimum target. It was noted that the bank total risk-based capital ratio performs stress tests through bank centric metrics, which would put MetLife at a disadvantage due to the predominately life insurance nature of its balance sheet. A.M. Best will continue to closely monitor the situation at MetLife. For more information on MetLife's ratings, please see A.M. Best's press release dated November 17, 2011. The methodology used in determining these ratings is Best's Credit Rating Methodology, which provides a comprehensive explanation of A.M. Best's rating process and contains the different rating criteria employed in the rating process. Key criteria utilized include: “Risk Management and the Rating Process for Insurance Companies”; “BCAR for Life/Health Insurers”; “Rating Members of Insurance Groups”; “A.M. Best's Perspective on Operating Leverage”; “A.M. Best Ratings & the Treatment of Debt”; and “Equity Credit for Hybrid Securities.” Best's Credit Rating Methodology can be found at www.ambest.com/ratings/methodology. Founded in 1899, A.M. Best Company is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com Copyright © 2012 by A.M. Best Company, Inc.ALL RIGHTS RESERVED.A.M. Best Co.Edward Kohlberg, 908-439-2200, ext. 5664Financial Analystedward.kohlberg@ambest.comorWilliam Pargeans, 908-439-2200, ext. 5359Assistant Vice Presidentwilliam.pargeans@ambest.comorRachelle Morrow, 908-439-2200, ext. 5378Senior Manager, Public Relationsrachelle.morrow@ambest.comorJim Peavy, 908-439-2200, ext. 5644Assistant Vice President, Public Relationsjames.peavy@ambest.com