A.M. Best Affirms Ratings of MetLife, Inc and Its Affiliates.OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating (FSR (Free System Resource) In Windows 3.x, the amount of unused memory in various 64K blocks reserved for managing current applications. Every open window takes some space in this area. See Windows memory limitation. ) of A+ (Superior) and issuer credit ratings (ICR (Intelligent Character Recognition or Image Character Recognition) The machine recognition of hand-printed characters as well as machine printing that is difficult to recognize. ) of "aa" of Metropolitan Life Insurance Company (MLIC MLIC Metropolitan Life Insurance Company MLIC Mabee Legal Information Center MLIC Maple Leaf International Consulting, Inc (New York, NY) MLIC Multiple Lan Internet Protocol Converter ) (New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , NY) and its key life/health affiliates. MLIC is the primary insurance company of MetLife, Inc (MetLife) (New York, NY) (NYSE NYSE See: New York Stock Exchange : MET). Concurrently, A.M. Best has affirmed the ICR of "a" and debt ratings of MetLife. A.M. Best also has affirmed the FSRs of A (Excellent) and ICRs of "a+" of MetLife Auto and Home (MetLife Auto and Home) and its eight fully reinsured companies in the business unit led by Metropolitan Property and Casualty Insurance Company (Warwick, RI). Additionally, A.M. Best has affirmed the FSR of A (Excellent) and ICR of "a+" of Texas Life Insurance Company (Waco, TX). The outlook for all ratings is stable. (See link below for a detailed list of the companies and ratings.) The ratings reflect MetLife's well established brand, diverse business mix, continued growth in various segments and its very strong position in its core markets. The ratings also reflect the overall balance of the organization provided by its core business lines through its property/casualty, international and reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. affiliates. Through its diversified distribution channels, MetLife maintains the scale necessary to be an industry leader in its various product lines. The group continues to pursue its strategic focus in the life and annuity markets by expanding both its domestic and international market share through organic growth, joint ventures and strategic acquisitions. Furthermore, MetLife is focused on divesting its non-core operations as evidenced by its recent announcement to divest its stake in Reinsurance Group of America Incorporated (RGA RGA Reinsurance Group of America RGA Return Goods Authorization RGA Republican Governors Association RGA Residual Gas Analyzer RGA Royal Garrison Artillery RGA Restricted Growth Association (UK) RGA Rate Gyro Assembly ) (Chesterfield, MO) through a tax-free split off. MLIC manages a balanced investment portfolio with a moderate risk appetite, which traditionally produces favorable contributions to earnings and capital through realized and unrealized gains Unrealized Gain A profit that results from holding on to an asset rather than cashing it in and using the funds. Notes: Let's say you own a stock that has doubled, but you haven't sold it yet. This is said to be an unrealized gain. . Offsetting these rating strengths are MetLife's declining sales recorded in recent years in its individual life and group annuity lines, which in part, are due to volatile equity markets, its moderate risk-adjusted capital and leverage positions that A.M. Best believes were impacted by the rapid growth and expansion experienced through its acquisitions. In addition, A.M. Best believes that MetLife's appetite for share repurchases Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. and continued dividends from its operating affiliates will continue to stress its risk-adjusted capital position. The ratings of MetLife Auto & Home reflect its solid capitalization, consistent operating performance, strong enterprise risk management practices and successful multiple channel distribution network. Partially offsetting these positive rating factors is the group's moderately elevated underwriting leverage and its exposure to weather-related events. For a complete listing of MetLife, Inc's FSRs, ICRs and debt ratings, please visit www.ambest.com/press/060508metlife.pdf. Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com. |
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