MetLife, Inc. (NYSE: MET) completed a $1 billion issuance of 5.85% subordinated debentures due March 15 2056, announced on February 26 2026. The long‑term, fixed‑rate instrument adds a 30‑year debt facility to the company’s capital structure.
The new debentures received a “bbb+” rating with a stable outlook from AM Best, the same credit quality that was assigned to the company’s senior unsecured debt. The rating is two notches below the “A‑” rating of MetLife’s holding company and senior debt, reflecting the subordinated nature of the notes. The rating is consistent with the March 2025 issuance of $1 billion in 6.35% subordinated debentures, which received a “bbb” issue rating.
The notes are structured as fixed‑to‑fixed reset subordinated debentures. Interest is fixed at 5.85% through March 15 2036, after which the coupon resets every five years to the five‑year Treasury rate plus a spread. MetLife also has the option to defer interest payments for up to five years, a feature that provides flexibility for the insurer while maintaining the subordinated status of the debt.
Proceeds from the issuance are earmarked for general business purposes, a broad category that typically includes organic growth initiatives, potential acquisitions, regulatory capital requirements, and general corporate operations. The transaction aligns with MetLife’s “New Frontier” strategy, which emphasizes capital flexibility and prudent deployment of capital to support long‑term growth.
The issuance follows a pattern of subordinated debt issuances that have helped MetLife diversify its funding sources and strengthen its Tier 2 capital base. By adding a new 30‑year debt instrument at a competitive rate, the company enhances its ability to meet regulatory capital requirements while preserving liquidity for future strategic opportunities.
The long‑term nature of the debentures and the stable credit rating signal confidence in MetLife’s financial strength. The transaction is expected to reinforce the insurer’s capital structure, support its regulatory capital profile, and provide a flexible funding source for future growth initiatives.
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