MetLife challenges 'too big to fail' label

MetLife doesn't want to be too big to fail.

The life insurance giant says it will ask a federal judge to review the government designation that it's "too big to fail" because it would pose a genuine risk to the economy.

"Too big to fail" is a designation widely shunned because it brings with it much stricter guidelines from federal overseers.

That's why, on Tuesday, the life insurance giant that serves more than 100 million customers in 50 countries said it will file with the U.S. District Court for the District of Columbia to overturn the Financial Stability Oversight Council's designation of the company as a non-bank, systemically important financial institution.

"We had hoped to avoid litigation after we presented substantial and compelling evidence to FSOC demonstrating that MetLife is not systemically important," said Chairman, President and CEO Steven Kandarian in a statement. "Now we will take the next step in the process established by the Dodd-Frank Act and ask a federal judge to review FSOC's decision."

MetLife said the designation will not only hurt competition among life insurers, but will increase the cost of financial protection for consumers.

"Adding a new federal standard for just the largest life insurers and retaining a different standard for everyone else will drive up the cost of financial protection for consumers without making the financial system any safer," said Kandarian.

Contributing: Associated Press