A.M. Best Assigns Indicative Ratings to MetLife's Shelf Securities.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--June 5, 2001 A.M. Best Co. has assigned as·sign tr.v. as·signed, as·sign·ing, as·signs 1. To set apart for a particular purpose; designate: assigned a day for the inspection. 2. an indicative "a+" senior debt rating, an indicative "a" subordinated debt Subordinated Debt A loan (or security) that ranks below other loans (or securities) with regard to claims on assets or earnings. Also known as "junior security" or "subordinated loan". rating and an indicative "a-" preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. rating to the shelf securities registered by MetLife, Inc. A.M. Best also issued an AMB- 1. A prefix meaning about, around; - used in words derived from the Latin. 1+ rating to the commercial paper programs at MetLife, Inc. and MetLife Funding, Inc. The ratings on the group's outstanding surplus notes and preferred securities remain unchanged. The financial strength ratings on Met Life's operating subsidiaries An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. are also unaffected. The shelf registration provides for the issuance of up to $4.0 billion of debt securities, common stock, preferred stock and trust preferred securities. The proceeds from the issuance of any securities will be used for general corporate purposes. Following the recent change in corporate structure from a mutual to a stock company, this shelf registration provides the organization with considerable financial flexibility. The ratings reflect the organization's diverse and substantial sources of revenue, its established brand name, the prominent market positions of its principal lines of business and the overall balance and earnings stability provided by investment management, property and casualty, international and financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. subsidiaries. These businesses have traditionally been supported by an exceptionally strong and conservative capital structure. Over the past several years, MetLife has remained an active participant in the industry's consolidation. In addition to providing the company with a broader range of product offerings, distribution sources and access to new market segments, MetLife's ability to efficiently manage the integration of its businesses and reduce cost structure has enabled the organization to consistently improve earnings performance. Further, the diverse nature of its earnings sources provides stability in sustaining the company's strong debt servicing capacity. A.M. Best expects MetLife to continue to maintain a relatively conservative capital structure, with total borrowings -- debt plus preferred securities -- not to exceed 30% of total capital in the near to medium term. MetLife's financial leverage at year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. 2000 was approximately 23%. Although MetLife's profitability, as measured by return on assets Return on assets (ROA) Indicator of profitability. Determined by dividing net income for the past 12 months by total average assets. Result is shown as a percentage. ROA can be decomposed into return on sales (net income/sales) multiplied by asset utilization (sales/assets). , is in line with industry averages, it falls below the results of similarly rated peers. A.M. Best also notes that the organization's expense structure continues to be high compared to life industry norms. However, MetLife has taken steps to lower expenses and believes through the new ownership structure, it will continue to more aggressively reduce costs and improve profitability. The following indicative debt ratings have been assigned to the shelf registration: MetLife, Inc. - Senior debt rating of "a+" - Subordinated debt rating of "a" - Preferred stock rating of "a-" MetLife Capital Trust II and III - Trust preferred securities rating of "a" The following ratings have been assigned: MetLife Funding, Inc. - Commercial paper rating of AMB-1+ MetLife, Inc. - Commercial paper rating of AMB-1+ The following ratings on existing securities are unchanged: Metropolitan Life Insurance Company: - "a+" rating on $300 million 7.45% surplus notes due November 2023 - "a+" rating on $400 million 6.30% surplus notes due November 2003 - "a+" rating on $250 million 7.00% surplus notes due November 2005 - "a+" rating on $200 million 7.70% surplus notes due November 2015 - "a+" rating on $150 million 7.785% surplus notes due February 2024 - "a+" rating on $250 million 7.80% surplus notes due November 2025 MetLife Capital Trust I - Trust preferred securities rating of "a" The A+ (Superior) financial strength rating of the following members of MetLife Inc. remains unchanged: - Metropolitan Life Insurance Company - MetLife Investors Insurance Company - MetLife Investors USA Insurance Company - Metropolitan Tower Life Insurance Company - New England New England, name applied to the region comprising six states of the NE United States—Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and Connecticut. The region is thought to have been so named by Capt. Life Insurance Company - General American Gen·er·al American n. The speech of native speakers of American English that many consider to be typical of the United States, noted for its exclusion of phonological forms readily recognized as regional or limited to particular social groups and for Life Insurance Company - General Life Insurance Company - General Life Insurance Company of America - Cova Financial Life Insurance Company (to be renamed MetLife Investors Insurance Company of California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). ) - First Cova Life Insurance Company (to be renamed First MetLife Investors Insurance Company) - Paragon Life Insurance Company - Security Equity Life Insurance Company The A (Excellent) financial strength rating of the following members of MetLife Inc. remains unchanged: - Metropolitan Insurance and Annuity annuity: see insurance. annuity Payment made at a fixed interval. A common example is the payment received by retirees from their pension plan. There are two main classes of annuities: annuities certain and contingent annuities. Company - Texas Life Insurance Company A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com. |
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