Fitch Ratings has affirmed MetLife and its subsidiaries’ ratings, including AA- Insurer Financial Strength ratings for several U.S. life insurers. The agency also maintained MetLife’s A Long-Term Issuer Default Rating. The outlook for MetLife and its rated subsidiaries remains Stable.
The ratings assessment rests on MetLife’s large insurance franchise across the U.S. and selected international markets. Fitch cited leading positions in several major insurance product categories. It also pointed to balance sheet strength, financial performance and financial flexibility consistent with current rating expectations.
MetLife holds large positions across group benefits, retirement and income solutions in the U.S. Its international operations span Asia, Latin America and EMEA, giving the company broad geographic diversification.
Fitch also cited MetLife’s scale, brand and investment capabilities as competitive strengths. Its group benefits portfolio carries a relatively low risk profile, according to Fitch, because MetLife regularly reprices the business.
The insurer has reduced exposure to market-sensitive, long-duration liabilities during recent years. One major transaction involved roughly $10 bn of U.S. retail variable annuity reinsurance transferred to Talcott Resolution Life Insurance Company.
The deal closed in December 2025 for combined consideration of about $250 mn. It reduced MetLife’s retail variable annuity account values by roughly 40%.
That transaction followed a larger 2023 reinsurance agreement with Global Atlantic Financial Group. MetLife transferred about $19 bn of U.S. retail reserves covering universal life and variable universal life products. The transaction also included universal life with secondary guarantees and fixed annuities.
These deals reduced exposure to capital-intensive businesses sensitive to financial markets. The trade-off is lower earnings from those blocks and somewhat less diversification. MetLife still maintains broad diversification across products and geographic markets.
Fitch expects legacy liabilities to decline as older blocks mature. Reinsurance will remain one option when transaction economics fit MetLife’s objectives.
Balance sheet fundamentals remain a major support for the ratings. MetLife maintains strong statutory capitalization, solid asset quality and substantial financial flexibility.
Financial leverage rose during recent reporting periods after subordinated debt issuance. Fitch doesn’t assign equity credit to those securities. Leverage stood at 29% during 1H26, still inside Fitch’s rating sensitivities.
The agency expects MetLife’s ongoing financial leverage to settle near 27%. Regulatory capital ratios remain comfortably above minimum requirements.
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. The result matched the prior year’s assessment.
Fitch views consolidated capitalization as stronger than the U.S. position alone suggests. Foreign subsidiaries maintain very strong capital levels, while holding company resources add another financial buffer.
MetLife’s holding companies reported $3.4 bn of cash and liquid assets in 1H26. Fitch described the company’s financial flexibility as exceptionally strong.
Investment risk remains above the industry average in several areas. MetLife holds relatively large allocations to below-investment-grade fixed-income securities and alternative investments.
Fitch still views MetLife’s asset origination capabilities favorably. Its historical investment results have also remained strong.
On a U.S. statutory basis, Fitch’s risky-assets ratio for MetLife declined modestly year over year. Better commercial mortgage loan quality contributed to the improvement. Consolidated GAAP risk measures sit closer to broader insurance-sector levels.
Mortgage loans accounted for 17% of MetLife’s investment portfolio in 1H26. Fitch remains cautious about the allocation under current commercial real estate conditions.
The agency also recognizes MetLife’s long record in mortgage investing. Its results in the asset class have compared favorably with peers.
Commercial mortgages represented 53% of the mortgage loan portfolio. Agricultural loans accounted for 24%, with residential mortgages at 23%.
Office properties represented 37% of MetLife’s commercial mortgage loan book in 1H26. That exposure exceeds twice the insurance industry’s roughly 17% allocation.
Fitch views office exposure cautiously after pandemic-era changes weakened parts of the sector. It expects losses across commercial real estate, though projected losses remain manageable relative to MetLife’s capital and current rating assumptions.
Earnings continue to benefit from diversification across markets and insurance risks. Fitch calculated MetLife’s return on equity at 14% for 1H26, up from 12% during the same period a year earlier.
The increase followed better underwriting experience and stronger variable investment income. Those factors supported earnings during the first half.
MetLife Investment Management remains another growth area. Fitch expects the business to contribute more earnings as MetLife expands its asset management operations.
MIM completed its acquisition of PineBridge Investments from Pacific Century Group in December 2025. The transaction supports MetLife’s stated plan to expand its asset management business.
