MetLife Ratings Affirmed with Stable Outlook

MetLife has secured the affirmation of its AA- insurer financial strength ratings and A long-term issuer default rating from Fitch Ratings, with the agency maintaining a stable outlook. The decision reflects the insurer’s large U.S. and international franchise, robust balance sheet, and consistent financial flexibility. According to the source, GN markets/earnings (en-US), these ratings underscore MetLife’s leading positions in major insurance product categories and its ability to manage capital effectively.

The ratings assessment highlights MetLife’s strategic shift toward lower-risk business lines. The company has significantly reduced exposure to market-sensitive liabilities, including a recent transfer of approximately $10 billion in U.S. retail variable annuity reserves. This move, which closed in December 2025, reduced MetLife’s retail variable annuity account values by roughly 40%, aligning its portfolio with Fitch’s expectations for sustainable capital deployment.

Strategic De-risking Drives Portfolio Shift

MetLife’s recent reinsurance transactions have materially altered its risk profile. The December 2025 deal with Talcott Resolution Life Insurance Company involved combined consideration of about $250 million for the transfer of U.S. retail variable annuity reserves. This followed a larger 2023 agreement with Global Atlantic Financial Group, where MetLife transferred approximately $19 billion in U.S. retail reserves covering universal life and variable universal life products. These actions reduced exposure to capital-intensive businesses sensitive to financial market fluctuations, though they resulted in lower earnings from those specific blocks.

Fitch notes that MetLife’s group benefits portfolio carries a relatively low risk profile due to regular repricing practices. The company continues to maintain broad diversification across products and geographic markets, spanning Asia, Latin America, and EMEA. Legacy liabilities are expected to decline as older blocks mature, with reinsurance remaining a viable option when transaction economics align with MetLife’s strategic objectives.

Capital Strength Supports Rating Stability

Balance sheet fundamentals remain a primary support for MetLife’s ratings. The company maintains strong statutory capitalization and substantial financial flexibility, with holding companies reporting $3.4 billion in cash and liquid assets in the first half of 2026. Fitch’s U.S. Life Prism capital model assessed statutory capital adequacy at MetLife’s U.S. life subsidiaries as Strong at year-end 2025, matching the prior year’s assessment. Foreign subsidiaries also maintain very strong capital levels, adding to the consolidated financial buffer.

Despite a rise in financial leverage to 29% in the first half of 2026 following subordinated debt issuance, Fitch expects ongoing leverage to settle near 27%. This level remains within the agency’s rating sensitivities. Regulatory capital ratios continue to sit comfortably above minimum requirements, supporting the stable outlook. Fitch describes MetLife’s financial flexibility as exceptionally strong, citing solid asset quality and robust origination capabilities.

Investment Risk Remains Above Average

MetLife’s investment portfolio retains higher risk than the industry average, with large allocations to below-investment-grade fixed-income securities and alternative investments. Mortgage loans accounted for 17% of the investment portfolio in the first half of 2026. Fitch remains cautious about this allocation, noting that while MetLife’s historical investment results have been strong, the risky-assets ratio on a U.S. statutory basis declined modestly year over year. Improved commercial mortgage loan quality contributed to this improvement, with consolidated GAAP risk measures sitting closer to broader insurance-sector levels.