AM Best Withdraws Credit Ratings of Metropolitan General Insurance Company
- May 21, 2021 12:50 PM (EDT)
Oldwick //BestWire// - AM Best has withdrawn the Financial Strength Rating of A (Excellent) and the Long-Term Issuer Credit Rating of “a+” (Excellent) of Metropolitan General Insurance Company (Warwick, RI) and concurrently removed it from the rating unit to which it had been assigned. The rating unit, collectively is referred to as MetLife Auto & Home Group, now consists of Metropolitan Property and Casualty Insurance Company and six fully reinsured subsidiaries, as well as Metropolitan Group Property and Casualty Insurance Company (also domiciled in Warwick, RI). The Credit Ratings (ratings) of Metropolitan General Insurance Company, as part of MetLife Auto & Home Group, were placed under review with negative implications (see press release dated Dec. 11, 2020).
The under-review action on the ratings followed the announcement that Farmers Group, Inc. had entered into a definitive agreement to acquire Metropolitan Property and Casualty Insurance Company and certain wholly owned subsidiaries in a cash and stock transaction. This transaction finalized on April 7, 2021.
The rating actions on Metropolitan General Insurance Company follow the conclusion of this transaction, which resulted in the company remaining under the ownership of MetLife, Inc., while Farmers Group, Inc. has assumed ownership of the rest of MetLife Auto & Home Group as anticipated. The ratings of MetLife Auto & Home Group, now part of Farmers Group Inc., are being assessed separately from this action and thus remain under review with negative implications at this time.
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 analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.