American Council of Life Insurers (ACLI) President and CEO Dirk Kempthorne issued the following statement on the federal court decision to rescind Met Life’s designation as a systemically-important financial institution (SIFI):

Washington, D.C., (March 30, 2016) – “We are pleased with the federal court’s decision to rescind the designation of MetLife as a systemically important financial institution (SIFI). 

“As ACLI asserted in its amicus brief in this case, in submissions to the Financial Stability Oversight Council (FSOC) as well as in testimony to Congress, no life insurer presents a systemic risk to the nation’s economy.

“FSOC’s designation process is anything but transparent, and its decision to designate Met Life a SIFI certainly seemed to ignore the weight of the evidence MetLife and insurance experts presented.  Consequently, the court’s finding that the decision was arbitrary and capricious on multiple fronts was not surprising. 

“We hope this decision prompts FSOC to revisit its other SIFI designations involving insurance companies and to adhere to a more realistic, fair and transparent analytical process going forward.  Imposing new and significant regulatory burdens on insurers without adequate justification harms their ability to fulfill their mission of financially protecting America’s families.”

“This ruling also represents a win for consumers. Labeling insurers as SIFIs and holding them to higher capital requirements will lead to higher costs for consumers without making the financial system any safer.”

The American Council of Life Insurers (ACLI) is a Washington, D.C.-based trade association with approximately 300 member companies operating in the United States and abroad. ACLI advocates in federal, state, and international forums for public policy that supports the industry marketplace and the 75 million American families that rely on life insurers’ products for financial and retirement security. ACLI members offer life insurance, annuities, retirement plans, long-term care and disability income insurance, and reinsurance, representing more than 90 percent of industry assets and premiums. Learn more at www.acli.com.