MetLife relies on Australian arm through 2026

S&P Global says MetLife Insurance would keep a stable outlook.

MetLife Insurance (Australia) would remain to have a crucial role in supporting its parent, MetLife Inc., in the next two years, said S&P Global Ratings.

The insurer was also perceived to have a stable outlook, amidst a moderately low risk exposure, reflecting improvements in the stability of the group life risk book. This maintained the overall financial risk profile strong.

On 15 Nov. 2023, S&P revised its criteria for analysing insurers' risk-based capital, which led to a reassessment of MetLife Australia's capital and earnings, downgrading it from very strong to strong. 

The risk exposure assessment was improved to moderately low due to increased stability in the group life risk book, maintaining a strong overall financial risk profile. MetLife Australia remains a strategically important subsidiary of MetLife Inc.

The revised criteria predict MetLife Australia's capital to remain at the 99.95% stress level through 2026, as opposed to the previously expected slight improvement. 

This adjustment decreased the capital and earnings assessment to strong from very strong.