MET: MetLife to Pay $60M Fine in NY Settlement

by Christopher Freeburn | April 1, 2014 11:07 am

MET: MetLife to Pay $60M Fine in NY Settlement

New York State has agreed to a settlement with MetLife (MET[1]) over allegations of improper practices by two of the insurance giant’s subsidiaries in the state[2].

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[3]) 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%.

Endnotes:
  1. MET: http://studio-5.financialcontent.com/investplace/quote?Symbol=MET
  2. improper practices by two of the insurance giant’s subsidiaries in the state: http://dealbook.nytimes.com/2014/03/31/metlife-reaches-60-million-settlement-with-n-y-authorities/?_php=true&_type=blogs&_r=0
  3. AIG: http://studio-5.financialcontent.com/investplace/quote?Symbol=AIG

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