A.M. Best Affirms Ratings of MetLife Auto & Home and Its Members
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OLDWICK, N.J.--(Business Wire)-- A.M. Best Co. has affirmed the financial strength rating (FSR) of A (Excellent) and issuer credit ratings (ICR) of "a+" of MetLife Auto & Home and its nine members, which are led by Metropolitan Property and Casualty Insurance Company (Warwick, RI). The outlook for all ratings is stable. (See below for a detailed listing of the companies.) The ratings reflect MetLife Auto & Home`s adequate capitalization, consistent operating performance, strong enterprise risk management practices and successful multiple-channel distribution network. Partially offsetting these positive rating factors is the group`s moderately elevated underwriting leverage, as well as its exposure to weather-related events. The rating outlook is based on the group`s adequate capital strength, consistently favorable operating trends and the support of its parent company, MetLife, Inc (MetLife) (New York, NY) (NYSE: MET). All ratings for MetLife are unaffected. Positive rating attributes include MetLife Auto & Home`s geographic diversification and the marketing advantage it derives from the established brand name recognition of MetLife. In addition, the ratings acknowledge management`s focused operating strategy, extensive product knowledge and multiple distribution channels. The group has consistently generated capital through operating earnings reflective of disciplined underwriting and a steady stream of investment income. Behind these results is an enterprise risk management structure of oversight committees and work groups that maintain various procedures and contingency plans within MetLife Auto & Home. Although MetLife Auto & Home has incurred large catastrophic losses as a result of several hurricanes in recent years, the group continues to reduce its catastrophe exposure through underwriting initiatives, coverage limitations, increased deductibles and reinsurance protection, which should favorably affect future operating earnings. The FSR of A (Excellent) and ICRs of "a+" have been affirmed for MetLife Auto & Home and its following members: * Metropolitan Property and Casualty Insurance Company * Economy Fire & Casualty Company * Economy Preferred Insurance Company * Economy Premier Assurance Company * Metropolitan Casualty Insurance Company * Metropolitan Direct Property and Casualty Insurance Company * Metropolitan General Insurance Company * Metropolitan Group Property and Casualty Insurance Company * Metropolitan Lloyds Insurance Company of Texas For Best`s Credit Ratings, an overview of the rating process and rating methodologies, please visit www.ambest.com/ratings. The principal methodologies used in determining these ratings, including any additional methodologies and factors that may have been considered, can be found at www.ambest.com/ratings/methodology. Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com. A.M. Best Co. Analysts: Joel Silverthorn, 908-439-2200, ext. 5120 joel.silverthorn@ambest.com or Gary Davis, 908-439-2200, ext. 5665 gary.davis@ambest.com or Public Relations: Jim Peavy, 908-439-2200, ext. 5644 james.peavy@ambest.com or Rachelle Morrow, 908-439-2200, ext. 5378 rachelle.morrow@ambest.com Copyright Business Wire 2009
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