MetLife Inc. reacted negatively to a decision by the Financial Stability Oversight Council (FSOC) naming the insurer a non-bank systemically important financial institution or SIFI.
“We are disappointed in the FSOC decision,” MetLife said today in a press statement. “We continue to believe that MetLife is not systemically important under the Dodd-Frank Act’s criteria, and the company has presented substantial and compelling evidence to FSOC to support this conclusion.
In a securities filing submitted earlier this year, MetLife challenged the FSOC’s preliminary designation of MetLife as a SIFI. Among the company’s arguments: that the imposition of bank-centric capital rules the company will making buying insurance products more difficult for consumers by making offerings less price-competitive.
In being labeled a SIFI, MetLife joins two other life insurers now subject to the FSOC’s capital requirements: American International Group and Prudential Financial. The FSOC has designated GE Capital as a non-bank SIFI.
Following a review by the International Association of Insurance Supervisors (IAIS), the Financial Stability Board also labeled MetLife a global systemically important insurer. AIG and Prudential have also been tagged with this designation.