OLDWICK, N.J.--(BUSINESS WIRE)--AM Best has placed under review with negative implications the Financial Strength Rating (FSR) of A (Excellent) and the Long-Term Issuer Credit Ratings (Long-Term ICR) of “a+” of Metropolitan Property and Casualty Insurance Company and seven fully reinsured subsidiaries, as well as Metropolitan Group Property and Casualty Insurance Company (all domiciled in Warwick, RI). These companies collectively are referred to as MetLife Auto & Home Group. (See below for a detailed list of companies.)
The rating actions follow the announcement that MetLife Auto & Home Group has entered into a definitive agreement with Farmers Group, Inc. to acquire MetLife’s property/casualty insurance companies in a $3.94 billion cash and stock transaction. The under review with negative implications status reflects AM Best’s need to fully assess the financial and operational impacts of the transaction on the rating fundamentals of Farmers Group, Inc. and its rated subsidiaries. AM Best expects to resolve the under review with negative implications status upon the completion of the transaction along with regulatory approval, which is expected to complete during the second quarter of 2021.
The FSR of A (Excellent) and the Long-Term ICRs of “a+” have been placed under review with negative implications for Metropolitan Property and Casualty Insurance Company and its following property/casualty subsidiaries:
- 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
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