Fitch: MetLife move has implications for global insurers
January 18, 2016 by LifeHealthPro Editors
MetLife’s proposed restructuring, announced Tuesday, has important implications for the life insurance industry, which faces significant competitive and regulatory pressures in the U.S. and globally, according to Fitch Ratings.
In a press statement, Fitch writes MetLife’s move demonstrates how the evolving regulatory environment affects the industry’s capital management and operating strategies. The prospect of increasing regulatory capital requirements associated with MetLife’s nonbank systemically important financial institution (SIFI) designation weighed heavily in its decision.
MetLife is pursuing a separation of a substantial portion of its U.S. retail life and annuity business, which would be subject to enhanced capital requirements under yet-to-be-announced U.S. nonbank SIFI prudential standards. Click HERE to read article
