New York State has agreed to a settlement with MetLife (MET) over allegations of improper practices by two of the insurance giant’s subsidiaries in the state.
Under the settlement agreement, MetLife will pay $60 million in penalties, including $50 million to the state’s Department of Financial Services and $10 million to Manhattan district attorney’s office. New York authorities said that American Life Insurance and Delaware American Life Insurance — which MetLife acquired from American International Group (AIG) in 2010 — had sold insurance in the state without a license, the New York Times noted.
The two MetLife subsidiaries received revenue of about $900 million from insurance policy sales in New York between 2007 and 2012. MetLife cooperated in the investigation and a state official said the company had done “right thing by stepping up to resolve this matter.”
MetLife indicated that the settlement would result in a charge against its first-quarter earnings.
MET stock climbed about 1% in Tuesday morning trading. Over the past 12 months, MetLife shares have climbed about 40%.