SEC Looking Into MetLife’s Failure To Pay Some Pensions

The Securities and Exchange Commission (SEC) is looking into MetLife's failure to pay some workers' pensions as the insurer announced it will postpone its fourth-quarter and full year 2017 earnings report.

A statement on MetLife's website states that the insurer is responding to the SEC's questions and is not aware of any intentional wrongdoing in connection with this matter.

The SEC has inquired about payments that MetLife failed to make for people who receive a type of annuity benefit from the company via its retirement business. Less than 5 percent of 600,000 people are affected, MetLife said.

In December, MetLife announced that it was undertaking a review of practices and procedures used to estimate its reserves related to certain group annuitants who MetLife said have been unresponsive or missing over time.

Company management determined the prior release of group annuity reserves resulted from a material weakness in internal control over financial reporting. MetLife expects to increase reserves between $525 million and $575 million pretax, to adjust for reserves previously released, as well as accrued interest and other related liabilities.

As a result, fourth quarter net income is expected to take a hit of between $135 million and $165 million pretax.

MetLife said it is currently reviewing its processes and procedures for identifying unresponsive and missing international group annuity annuitants and pension beneficiaries.

In addition, MetLife said it recently initiated an ongoing global review of its processes and procedures for identifying unresponsive and missing policyholders and beneficiaries for the other insurance and annuity products it offers.

Susan Rupe is managing editor for InsuranceNewsNet. She formerly served as communications director for an insurance agents' association and was an award-winning newspaper reporter and editor. Contact her at [email protected]. Follow her on Twitter @INNsusan.

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Susan Rupe is managing editor for InsuranceNewsNet. She formerly served as communications director for an insurance agents' association and was an award-winning newspaper reporter and editor. Contact her at [email protected].