MetLife Inc., a federally chartered bank holding company, said it passed the federal government's stress tests for U.S. banks, with the chief of the biggest U.S. life insurer saying the company is financially strong and well-positioned to weather the economic environment and a possible further downturn in the economy.

MetLife launched MetLife Bank, N.A. in 2001. As one of the 19 U.S. banks with more than $100 billion in total assets, MetLife said it was required to participate in the stress tests. The capital assessment exercise was conducted under the U.S. Treasury Department's Supervisory Capital Assessment Program.

The New York-based MetLife (NYSE: MET) was the only insurance company that was included in the stress test program.

In a statement, C. Robert Henrikson, MetLife's chairman, president and chief executive officer, said the company was told by the Federal Reserve that MetLife 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."


Recently, MetLife posted a $574 million first-quarter net loss, but Henrikson called investment losses "modest" and said the company didn't need a federal government bailout because it's well-positioned (BestWire, May 1, 2009).

In April, MetLife said it wouldn't participate in the Treasury Department's Capital Purchase Program, saying it remained well-capitalized and didn't need the help of the Troubled Asset Relief Program (BestWire, April 14, 2009).

"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," Henrikson said in the statement.

At the end of the first quarter, MetLife said it had $491.4 billion in total assets.

On the morning of May 12, MetLife's stock was trading at $32.65 a share, up 0.93% from the previous close.

Metropolitan Life Insurance Co. currently has a Best's Financial Strength Rating of A+ (Superior).

(By Fran Matso Lysiak, senior associate editor, BestWeek: fran.lysiak@ambest.com)