DECEMBER 11, 2020 03:47 PM (EST)
AM Best Places Credit Ratings of Members of MetLife Auto & Home Group Under Review With Negative Implications
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FOR IMMEDIATE RELEASE
OLDWICK - DECEMBER 11, 2020 03:47 PM (EST)
AM Best has placed under review with negative implications the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a+” of Metropolitan Property and Casualty Insurance Company and seven fully reinsured subsidiaries, as well as Metropolitan Group Property and Casualty Insurance Company (all domiciled in Warwick, RI). These companies collectively are referred to as MetLife Auto & Home Group. (See below for a detailed list of companies.)
The rating actions follow the announcement that MetLife Auto & Home Group has entered into a definitive agreement with Farmers Group, Inc. to acquire MetLife’s property/casualty insurance companies in a $3.94 billion cash and stock transaction. The under review with negative implications status reflects AM Best’s need to fully assess the financial and operational impacts of the transaction on the rating fundamentals of Farmers Group, Inc. and its rated subsidiaries. AM Best expects to resolve the under review with negative implications status upon the completion of the transaction along with regulatory approval, which is expected to complete during the second quarter of 2021.
The FSR of A (Excellent) and the Long-Term ICRs of “a+” have been placed under review with negative implications for Metropolitan Property and Casualty Insurance Company and its following property/casualty subsidiaries:
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.