AM Best Assigns Issue Credit Rating to MetLife, Inc.’s New Preferred Shares
OLDWICK, N.J.--(BUSINESS WIRE)--Jan 16, 2020--
AM Best has assigned a Long-Term Issue Credit Rating of “bbb” to the $1 billion issuance of 4.75% non-cumulative preferred stock, Series F recently issued by MetLife, Inc. (MetLife) (headquartered in New York, NY) [NYSE: MET]. The outlook assigned to the Credit Rating (rating) is stable.
Proceeds from the sale of the preferred shares issued as depositary shares will be utilized for general corporate purposes, which may include the repurchase of outstanding preferred stock. The Series F fixed rate preferred shares are perpetual, but the dividends are not cumulative or mandatory. The preferred shares are redeemable, in whole or in part, on or after March 15, 2025. The preferred shares also are redeemable, in whole but not in part, at any time prior to March 15, 2025, within 90 days after the occurrence of a rating agency event or regulatory capital event.
AM Best notes that MetLife’s pro forma financial leverage is in the 25% range and is expected to remain level in the medium term. Additionally, MetLife’s financial flexibility remains strong with interest coverage in line with AM Best’s expectations.
MetLife’s ratings recognize its diverse business mix, generally favorable operating results, strong franchise, considerable scale and prominent market position. MetLife continues to generate consistent revenue and cash flows, and has reported growth in operating earnings across the majority of its core segments.
Overall operating results were strong during 2019 reflecting lower volatility of returns, expense efficiencies and double-digit GAAP returns on equity. The company’s ratings were affirmed in November 2019.
This press release relates to Credit Ratings that have been published on AM Best’s website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best’s Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best’s Credit Ratings. For information on the proper media use of Best’s Credit Ratings and AM Best press releases, please view Guide for Media - Proper Use of Best’s Credit Ratings and AM Best Rating Action Press Releases.
AM Best is a global credit rating agency, news publisher and data provider specializing in the insurance industry. The company does business in more than 100 countries. Headquartered in Oldwick, NJ, AM Best has offices in cities around the world, including London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
Copyright © 2020 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
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KEYWORD: NEW JERSEY EUROPE UNITED STATES NORTH AMERICA
INDUSTRY KEYWORD: INSURANCE PROFESSIONAL SERVICES
SOURCE: AM Best
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PUB: 01/16/2020 10:26 AM/DISC: 01/16/2020 10:26 AM