The good news on structured settlement annuity issuers continues to pour in. This just in from the MetLife, the country's largest insurer and one of the biggest issuers of structured settlement annuities.
"MetLife continued to deliver strong results during the second quarter as it achieved top line growth and increased operating earnings by 41% over the prior year period” Structured settlements were up 9% according to MetLife's press release.
|
|
Barrons is bullish on MetLife in a June 19, 2010 feature article about the insurance company stating that they " might have written the right policy to ensure future growth".
The Pluses
The Question Marks
Barrons reports that company officials counter with MetLife having s a 432% risk-based capital ratio—meaning its total capital equals four times its risk-based capital, a sign of financial strength. MetLife did not participate in the Troubled Assets Relief Program (TARP) in 2008 or 2009. ( For background on TARP read MetLife CEO Says Insurer Bailouts were Bad PR Bloomberg June 10, 2010)
Ironically, the testament to insurer financial strength and declinaton of TARP (financial assistance to banks) comes just a day after USA Today carried this headline about the banking industry: "Bank failure is 83rd in '10; pace more than double last year's".
MetLife, which is 147 years old, is the largest life insurance company in the United States with over $539 billion in assets.
|
|
On the one year anniversary of the 2008 "epicenter of bad news", positive news is coming from MetLife. William J. Wheeler CFO of MetLife, Inc. said that Met is gaining market share in every one of its lines of business, according to a Dow Jones report posted on the NASDAQ website. In the Barclay's Capital Investment conference Wheeler also said that there has been " a significant increase in structured settlement sales".
The primary underwriting company for MetLife structured settlements is Metropolitan Life Insurance Company, the country's largest life insurance company, which enjoys the following current financial ratings:
AM Best Fitch Moodys S&P
| A+ | AA | Aa2 | AA- |
|
|
Various news reports say that American International Group Inc. (AIG) has chosen former MetLife chief Robert Benmosche as its new CEO to succeed Edward Liddy, who is stepping down.
|
|
The following information may be helpful to annuitants with MetLife structured settlements or those considering them.
On April 13, 2009 MetLife announced that it had elected NOT to participate in the US Treasury's Troubled Asset Relief Program (TARP).
In a May 7, 2009 press release concerning the Supervisory Capital Assessment Program, Met Life stated that it had been informed by the Federal Reserve that "it had completed the capital assessment process and that, based on its economic scenarios and methodology, MetLife has adequate capital to sustain a further deterioration in the economy,” said C. Robert Henrikson, chairman, president and chief executive officer of MetLife, Inc. “We are very pleased with this result, which we believe reinforces what we have been saying – MetLife is financially strong and well positioned for both the current environment and a potential further economic downturn.”
“MetLife has a strong excess capital position, ample liquidity and leading market positions in our
core group and individual insurance businesses, where our revenues continue to be healthy,”
added Henrikson. “The company remains well positioned to continue meeting the needs of
clients and has the capacity and financial strength to further solidify its leading position in the
industry.”
Click below to read the entire May 7, 2009 press release
|
|
Although reporting earnings fro the line were down $251MM for Q4 2008, Metife reported with respect to its Institutional Business that retirement and savings premiums, fees and other revenues grew 80% in Q4 2008 over Q4 2007 to $689MM. This was attributed to "several pension close out (terminal funding) sales in the UK, as well as higher structured settlement sales".
Click here for more on the story.
|
|
In a developing story the Wall Street Journal (WSJ) reports that the United States Treasury Department is contemplating taking equity stakes in insurance companies. The Treasury Department wants insurance companies to participate in its TARP Program, according to WSJ sources briefed by Treasury.
The TARP program is a voluntary Capital Purchase Program to encourage U.S. financial institutions to build capital to increase the flow of financing to American businesses and consumers and to support the U.S. economy.
According to the WSJ, Met Life Inc. and Prudential Financial Inc. two of the nation's largest publicly traded life insurers, and New York Life Insurance Co., one of the highest rated insurers in the United States, are interested in exploring a sale of equity stakes to the government, according to people familiar with the matter.
The former two are holding companies to structured settlement annuity issuers (Prudential Financial Inc. also guarantees periodic payment obligations transferred via non qualified assignment to Pruco Assignment Corporation) and the latter is a structured settlement annuity issuer.
The U.S. Treasury is considering taking stakes in 20 financial firms.
|
|
Comments and Trackback Policy