{"id":402405,"date":"2020-12-17T16:54:26","date_gmt":"2020-12-17T21:54:26","guid":{"rendered":"http:\/\/www.marketnewsdesk.com\/?p=402405"},"modified":"2020-12-17T16:54:26","modified_gmt":"2020-12-17T21:54:26","slug":"am-best-affirms-credit-ratings-of-metlife-inc-and-key-life-health-subsidiaries-upgrades-credit-ratings-of-other-life-health-subsidiaries","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/am-best-affirms-credit-ratings-of-metlife-inc-and-key-life-health-subsidiaries-upgrades-credit-ratings-of-other-life-health-subsidiaries\/","title":{"rendered":"AM Best Affirms Credit Ratings of MetLife, Inc. and Key Life\/Health Subsidiaries; Upgrades Credit Ratings of Other Life\/Health Subsidiaries"},"content":{"rendered":"

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AM Best Affirms Credit Ratings of MetLife, Inc. and Key Life\/Health Subsidiaries; Upgrades Credit Ratings of Other Life\/Health Subsidiaries<\/b><\/p>\n

OLDWICK, N.J.–(BUSINESS WIRE<\/a>)–AM Best <\/b>has affirmed the Financial Strength Rating (FSR) of A+ (Superior) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of \u201caa-\u201dof Metropolitan Life Insurance Company (MLIC) (New York, NY) and Metropolitan Tower Life Insurance Company (Lincoln, NE). Concurrently, AM Best has affirmed the Long-Term ICR of \u201ca-\u201d 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].\n<\/p>\n

\nIn addition, AM Best has upgraded the FSR to A+ (Superior) from A (Excellent) and the Long-Term ICRs to \u201caa-\u201d from \u201ca+\u201d of MetLife\u2019s dental and vision subsidiaries, consisting of the SafeGuard Health Plans, Inc. providers, and Delaware American Life Insurance Company (Wilmington, DE). At the same time, AM Best has upgraded the FSR to A+ (Superior) from A (Excellent) and the Long-Term ICR to \u201caa-\u201d from \u201ca\u201d of MetLife Global Benefits, Ltd. (Cayman Islands).\n<\/p>\n

\nThe outlook of these Credit Ratings (ratings) is stable. The aforementioned subsidiaries collectively are referred to as Metropolitan Life Insurance Group. (See below for a detailed listing of companies and Long- and Short-Term IRs.)\n<\/p>\n

\nThe ratings of Metropolitan Life Insurance Group reflect its balance sheet strength, which AM Best categorizes as strong, as well as its strong operating performance, very favorable business profile and appropriate enterprise risk management (ERM). The rating upgrades of the SafeGuard Health Plans, Inc. providers, Delaware American Life Insurance Company and MetLife Global Benefits, Ltd. reflect these subsidiaries strategic importance to the MetLife organization, which is increasingly focused on employee benefits and retirement income solutions in its global and U.S. markets, a high degree of integration and a demonstrated track record of supporting MetLife\u2019s business strategy.\n<\/p>\n

\nMetropolitan Life Insurance Group\u2019s strong balance sheet assessment is supported by qualitative considerations of its reserve profile and a consolidated view of capital adequacy, which is enhanced by the liquidity and financial flexibility of the holding company that has historically maintained significant levels of excess liquidity. Additionally, the ratings recognize the reduction of risk on its balance sheet related to equity and interest rate risk as MetLife Holding\u2019s product portfolio declines over time. Financial leverage is approximately 25%, and interest coverage, excluding holding company liquidity, is strong at approximately 8 times interest payments.\n<\/p>\n

\nMetLife continues to generate profitable revenue growth and consistently positive operating metrics on a statutory and GAAP basis. Earnings are diversified geographically and volatility is lower within its group benefits segment. MetLife has made improvements in its operating efficiency ratio, and although there has been some volatility in recent quarters due to variable investment income returns, adjusted GAAP operating earnings are strong. AM Best views Metropolitan Life Insurance Group\u2019s operating performance as strong, with the group focused on higher margin product lines with lower volatility of returns, expense efficiencies and a consistent trend of double-digit GAAP returns on equity. ERM is viewed as appropriate, as the group has continued to focus on improving its overall program and capital modeling.\n<\/p>\n

\nThe ratings also reflect the organization\u2019s strong, defensible market positions in its core lines of business and the diversity of its products and geographic markets in the United State, Asia and Latin America, as well as the Europe, Middle East and Africa region.\n<\/p>\n

\nThe FSR has been upgraded to A+ (Superior) from A (Excellent) and the Long-Term ICRs to \u201caa-\u201d from \u201ca+\u201d, each with a stable outlook, for the following dental and vision subsidiaries of MetLife, Inc.:\n<\/p>\n