MetLife has completed the mergers of its subsidiaries MetLife Insurance Company of Connecticut, MetLife Investors USA Insurance Company, MetLife Investors Insurance Company and Exeter Reassurance Company.
The merged company has been renamed MetLife Insurance Company USA and is to be domiciled in Delaware. All necessary regulatory approvals have been received for these mergers.
At its Investor Day meeting in May 2013, MetLife announced it would merge these subsidiaries to “better position the company to comply with Dodd-Frank collateral requirements, proactively address regulatory issues surrounding the use of captive reinsurance companies, and improve the risk profile and transparency of MetLife’s US variable annuity business”.
The decision was part of MetLife’s larger effort to reduce the risk surrounding its variable annuity business.
All policy, contract, certificate or retained asset account terms, conditions or benefits remain unchanged as a result of the merger.
Fitch Ratings has claimed that the merger has no material effect on the overall financial strength of the MetLife enterprise or its operating subsidiaries, despite increased product diversification.
