8-KOther Events

METLIFE INC 8-K Report, Corporate Update (Dec 18, 2008)

Filed December 18, 2008For Securities:METMET-PEMET-PFMET-PA

Summary

MetLife Inc. (MET) announced on December 5, 2008, its decision to continue participating in the debt guarantee component of the FDIC's Temporary Liquidity Guarantee Program. This program, managed by the FDIC, provides a guarantee for certain newly-issued senior unsecured debt of MetLife and its eligible affiliates through June 2012, or until the debt matures if earlier. This move aims to enhance MetLife's access to funding and strengthen its financial flexibility during a period of market uncertainty. Furthermore, MetLife strategically elected to exclude specific senior unsecured debt maturing after June 30, 2012, from the FDIC guarantee, while remaining within the program's debt limits. The company also opted out of the component of the program that guarantees non-interest bearing deposit transaction accounts. These decisions reflect MetLife's proactive management of its debt obligations and its engagement with available government programs to ensure financial stability.

Key Highlights

  • 1MetLife elected to continue participation in the FDIC's Temporary Liquidity Guarantee Program.
  • 2The FDIC will guarantee certain newly-issued senior unsecured debt through June 2012 or maturity.
  • 3This participation aims to secure MetLife's access to debt markets and enhance financial flexibility.
  • 4MetLife opted to exclude specific senior unsecured debt maturing after June 30, 2012, from the guarantee.
  • 5The company notified the FDIC about these exclusions to manage debt limits effectively.
  • 6MetLife also opted out of the FDIC guarantee for non-interest bearing deposit transaction accounts.

Frequently Asked Questions

The TLGP is a program established by the Federal Deposit Insurance Corporation (FDIC) to enhance confidence in the banking system by guaranteeing certain debt and deposit obligations of participating financial institutions during times of financial stress. It provides a government guarantee for newly issued debt and certain deposit accounts.

MetLife's participation aimed to strengthen its access to the debt markets and improve its financial flexibility. By having its eligible newly-issued senior unsecured debt guaranteed by the FDIC, MetLife could potentially secure more favorable borrowing terms and ensure a stable source of funding during a period of market volatility.

MetLife chose to not have its senior unsecured debt that matures after June 30, 2012, included under the FDIC guarantee. This strategic decision allows MetLife to manage the overall amount of debt covered by the program, potentially preserving its capacity for future borrowing needs or avoiding limitations associated with longer-term guaranteed debt.

No, MetLife elected to continue participating in the debt guarantee component of the TLGP. However, it did opt out of the component of the program that guarantees non-interest bearing deposit transaction accounts.