Insurance Commissioner Dave Jones Issues Statement that Metropolitan Life Insurance Group Exceeds Insurance Financial Solvency Requirements
News: 2012 Press Release
The Federal Reserve yesterday issued a statement regarding the strength of the top U.S. financial firms. One firm on the list, MetLife, Inc., while considered a bank holding company because it does own banking operations, conducts the majority of its operations through its insurance subsidiaries, including the Metropolitan Life Insurance Group.
"I believe the Federal Reserve's 'stress test' is directed primarily at non-insurer financial institutions and the non-insurance operations of institutions with insurance subsidiaries," said Commissioner Jones. "The methodology utilized for analyzing and stress testing banks is not intended to measure insurance solvency as the business models are quite different. MetLife maintains an A+ rating from AM Best and an AA- rating from Standard & Poor's. Steven Kandarian, the CEO of MetLife, has noted in a recent statement that at year-end 2011, MetLife had a consolidated risk-based capital ratio of 450 percent, which is a risk-based capital ratio well in excess of regulatory minimums required of life insurance companies."
Jones added, "While we are confident that Metropolitan Life Insurance Group is financially strong, we will continue to monitor its insurance operations and protect the interests of insurance consumers."
The California Department of Insurance, established in 1868, is the largest consumer protection agency in California. Insurers collect $310 billion in premiums annually in California. Since 2011 the California Department of Insurance received more than 1,000,000 calls from consumers and helped recover over $469 million in claims and premiums. Please visit the Department of Insurance website at www.insurance.ca.gov. Non-media inquiries should be directed to the Consumer Hotline at 800.927.4357. Telecommunications Devices for the Deaf (TDD), please dial 800.482.4833.