AM Best Affirms Credit Ratings of MetLife, Inc. and Most of Its Life/Health Subsidiaries

AM Best has affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “aa-” (Superior) of most members of Metropolitan Life Insurance Group. In addition, AM Best has upgraded the FSR to A+ (Superior) from A (Excellent) and the Long-Term ICR to “aa-” (Superior) from “a+” (Excellent) of Metropolitan General Insurance Company. Concurrently, AM Best has affirmed the Long-Term ICR of “a-” (Excellent) 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]. The outlook of these Credit Ratings (ratings) is stable. In addition, AM Best has assigned a Long-Term IR of “a-” (Excellent) to MetLife’s newly issued $1 billion, 5.25% senior unsecured notes, due 2054. The outlook assigned to this rating is stable. (See below for a detailed listing of companies and Long- and Short-Term IRs.)

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.