A large insurer has decided not to participate in the U.S. Treasury Department’s Capital Purchase Program.
The company, MetLife, New York, says it is one of the 19 U.S. banking organizations participating in the Treasury Department’s capital planning exercise, or “stress testing” program.
“MetLife is working closely with the Federal Reserve on this exercise,” the company says.
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MetLife has been a federally chartered bank holding company since it set up MetLife Bank N.A. in 2001.
The company does not need to participate in the CPP, a component of the Troubled Asset Relief Program, because it already is well-positioned, according to MetLife Chairman C. Robert Henrikson.
MetLife has about $5 billion in excess capital, a strong balance sheet and leading market positions in the group and individual insurance businesses, Henrikson says in a statement.
MetLife repositioned its investment portfolio more than a year ago in anticipation of the current recession, it completed a $2.3 billion common stock offering in October 2008, and it remarketed more than $1 billion in debt earlier this year, Henrikson says.
“We have therefore decided not to participate in the [CPP],” Henrikson sas. “We are confident that we have the financial strength to continue to succeed now and over the long-term.”
Some expect the Treasury Department to describe its plans for providing CPP aid for insurers sometime this week.