Capital Adequacy Disclosure

At MetLife, we have an important purpose, a promise to deliver.

Our capital strength underpins our promise to be there with you in your times of need.

We are a part of the global MetLife enterprise protecting customers around the world for over 150 years. 

In Australia, we are overseen by the Australian Prudential Regulation Authority (APRA) which sets industry capital requirements to ensure customer obligations can be met at all times.

As at 31 December 2023

Capital Adequacy Multiple

100%

Our available capital of $454m (capital base) exceeds the $234m APRA required minimum capital (prescribed capital amount).

The high ratio of capital base to prescribed capital amount (capital adequacy multiple) is a strong indicator of our ability to meet our promises to you.

More on MetLife’s capital position

MetLife’s capital is predominately held in a single statutory fund (SF1). SF1 holds all assets and liabilities associated with insurance policies we write. MetLife’s capital base is comprised of solely Common Equity Tier 1 capital (the highest quality of capital).

The prescribed capital amount relates to the various risks we face, in particular:

  • Insurance risks – losses from higher claims and expenses
  • Asset risks – losses from our investments
  • Operational risks – losses from unforeseen incidents in our day-to-day operations

Capital Adequacy 

 

$'m SF1 SF3 Share-holder's Fund Total Company
Capital Base 437 2 7 454
Insurance Risk Charge 174 0 0 175
Asset Risk Charge 57 0 1 58
Operational Risk Charge
 39 0 0 39
Others (38) 0 (0) (38)
Total Prescribed Capital Amount 233 0 1 234
Capital Adequacy Multiple 187% Large Large 194%
  • No additional Tier 1 or Tier 2 capital contributes to the capital base. Common Equity Tier 1 Capital (“CET1”) is 100% represented by net assets.
  • Regulatory adjustments applied to the funds are -$72m, -$1m and $0m respectively. Total capital base at includes tax benefits recognized at a total company level.
  • Other charges in funds’ Prescribed Capital Amount include: Aggregation benefit (-$38m, $0m and -$0.1m respectively), Combined Scenario Adjustment (nil at reporting date) and Asset Concentration Risk Charge (nil at reporting date)