Fitch Lowers Ratings Of MetLife As Part Of Industry Review.Business Editors CHICAGO--(BUSINESS WIRE)--Sept. 19, 2002 Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. has lowered the ratings of MetLife as part of a comprehensive industry review of all North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. life insurance company ratings that was initiated on August 14, 2002, and completed today. The ratings affected by today's actions are listed below. MetLife represents one of 35 life insurance groups, making up approximately 42% of Fitch's ratings universe, that had ratings lowered as a result of the review. MetLife's Rating Outlook is Stable. The industry review was the result of Fitch's belief that recent adverse performance within the investment markets required an accelerated recognition of certain industry trends that have been negatively impacting life insurers for some time. These trends, specifically unfavorable competitive pressures and product portfolio migration, have been inherent in Fitch's long-standing Negative Rating Outlook on the industry and, as a result of the review, have been fully considered into ratings generally. The review led to the establishment of higher standards for each rating category in many quantitative and qualitative areas of analysis. Rating changes at the company level involved a reassessment Reassessment The process of re-determining the value of property or land for tax purposes. Notes: Property is usually reassessed on an annual basis. You may request a "reassessment" if you disagree with your assessment. of each insurer's fundamental characteristics relative to Fitch's new ratings standards. This included a review of the company's product risk profile and fundamental competitive and operating characteristics, and a review of the company's capital position (risk-based capital ratios Risk-based capital ratio Bank requirement that there be a minimum ratio of estimated total capital to estimated risk-weighted asset. , financial leverage and capital size), among numerous other factors. Fitch fitch: see polecat. also looked closely at recent and anticipated investment performance under current adverse capital markets conditions. The rating action on MetLife's insurer An individual or company who, through a contractual agreement, undertakes to compensate specified losses, liability, or damages incurred by another individual. An insurer is frequently an insurance company and is also known as an underwriter. financial strength ratings was driven primarily by Fitch's view that despite improving trends since demutualization Demutualization The process of changing corporate structure from a mutual fund company to some other form, such as a limited liability or corporation. Notes: This means mutual/life insurance companies convert from policyholder companies to stock companies. , the overall level and stability of earnings did not reflect benchmarks for the higher IFS rating category. In addition, the action reflects a tightening of Fitch's capital guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. for both product and investment risks. The rating action on MetLife's fixed income ratings was driven by Fitch's notching notching Radiology Small grooves on the anterior aspect of ribs seen on a plain CXR of children with post-ductal–ductus arteriosus coarctation of the aorta, due to 'tracks' from the pressure of collateral vessels on the ribs standards from the lower IFS rating. MetLife's ratings continue to reflect MetLife's excellent market position, distribution capabilities, long-term customer base, stable liability structure and brand-name recognition, all of which Fitch believes result in strong competitive advantages in individual insurance, group insurance and group pensions. The fixed income ratings are also supported by the inherent strength and diversity of MetLife's primary operating segments, strong cash flow-generating power and financial flexibility, and moderate use of financial leverage. Entity/Issue/Type/Action/Rating/Outlook Insurer Financial Strength Ratings: Metropolitan Life Insurance Co. --Lowered to 'AA' from 'AA+'/Stable. 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 --Lowered to 'AA' from 'AA+'/Stable. 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 Co. --Lowered to 'AA' from 'AA+'/Stable. Paragon Life Insurance Company --Lowered to 'AA' from 'AA+'/Stable. Security Equity Life Insurance Co. --Lowered to 'AA' from 'AA+'/Stable. MetLife Investors USA Insurance Company --Lowered to 'AA' from 'AA+'/Stable. MetLife Investors Insurance Company --Lowered to 'AA' from 'AA+'/Stable. MetLife, Inc. --Long-term issuer -- Lowered to 'A' from 'AA-'/Stable; --5.25% Notes Due 12/1/06 -- Lowered to 'A' from 'AA-'/Stable; --6.125% Notes Due 12/1/11 -- Lowered to 'A' from 'AA-'/Stable; --Commercial paper -- Lowered to 'F1' from 'F1+'/NA; --Short-Term Issuer -- Lowered to 'F1' from 'F1+'/NA. MetLife Capital Trust I -- 8% Equity Security Units -- Assign 'A-'/Stable. Metropolitan Life Insurance Company --Surplus notes -- Lowered to 'A+' from 'AA-'/Stable. (includes surplus notes issued by New England Mutual and assumed by Metropolitan Life) GenAmerica Capital I --Long-term Issuer -- Assign 'A-'/Stable; --Guaranteed Preferred Cap. Sec. -- Affirm To ratify, establish, or reassert. To make a solemn and formal declaration, as a substitute for an oath, that the statements contained in an Affidavit are true or that a witness will tell the truth. 'A-'/Stable. MetLife Funding, Inc. --Commercial Paper -- Affirm 'F1+'/NA; --Short-Term Issuer -- Affirm 'F1+'/NA. |
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