MetLife (MET +3.5%) CEO Steven Kandarian, who's retiring at the end of the month, warns regulators to keep an eye on new players in the life insurance industry, especially where they're investing their money, Bloomberg reports.
"Regulators should look hard at this and make sure risks being taken on by these new entrants are appropriate because, again, we pick up the tab if they fail," Kandarian said.
New entrants include private equity and bank-connected annuity sellers. For example, Goldman Sachs (GS +2.4%) helped form Global Atlantic Financial and Athene Holding (ATH +2.6%) has ties to Apollo Global Management (APO +1.1%).
Kandarian also said MetLife is wary about risks from the leveraged-loan market and BBB-rated debt.
“We have actually reduced exposure in both those segments and we’re very careful in terms of what kind of credit we’re putting on our books right now," he said.
Previously: MetLife fills in leadership positions ahead of CEO transition (March 7)
Subscribe for full text news in your inbox