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MetLife

Last edited by Charlie Cray on August 11, 2008 - 2:13pm
Company Snapshot: 

MetLife is one of the largest insurers in the U.S. Its biggest subsidiary is Metropolitan Life Insurance Company. The company offers life, disability, auto, and home insurance, as well as retirement products and legal services. It sells to both groups and individuals.

Ownership status: 
Publicly traded
Number of employees worldwide: 
49,000
Chief executive officer: 
C. Robert (Rob) Henrikson
2008 Global Fortune 500 rank: 
191
Website: 
MetLife
Tel: 
1-800-638-5366
Fax: 
(212) 685-1224
Corporate accountability
Human rights: 

Steve Miller, a former MetLife employee, has alleged that MetLife refused to comply with certain provisions of the Americans With Disability Act. (See EEOC Charge No. 170-2005-03270)

Anti-competitive and consumer protection: 

In 1996 a federal court approved MetLife's settlement of a lawsuit over deceptive sales practices by MetLife agents.

In 2000 MetLife agreed to pay $1.7 billion to settle a class action suit by policyholders who claim the company misrepresented certain products.

In July, 2005 the U.S. Justice Department and the FBI announced that a grand jury had indicted 22 individuals and four medical clinics for health insurance fraud by submitting fraudulent PIP claims from November 2003 to July 2005. The indictment lists thirty insurance companies including State Farm, GEICO, Allstate, Ocean, and MetLife to which the defendants submitted fraudulent claims. The medical clinics received over $8.5 million in insurance payments as a result of this fraudulent activity.

On October 4, 2007, the U.S. Attorney for the Eastern District of New York charged KEVIN DUNN, a former MetLife broker, for participating in a scheme to defraud the widow of a victim of the September 11, 2001, terrorist attacks of the settlement benefit she received as a result of the death of her husband. The victim received a death benefit of approximately $2 million from the September 11th Victim Compensation Fund, after which she contacted Dunn, a long-time friend, to obtain investment advice. After meeting with the victim to discuss her investment options, Dunn allegedly defrauded the victim of approximately $250,000.

New York Attorney General Elliot Spitzer commended the company for helping his office obtain information leading to the indictment of two former MetLife employees. (Met Life also agreed to create a $1.25 million restitution fund after the Attorney General revealed that one of the defendants routinely solicited investors while employed by the company.

Attorneys at Milberg, Weiss filed a securities fraud class action alleging that the Company had an undisclosed plan to issue excess shares of MetLife stock and then buy them back before deciding to take MetLife public. This plan resulted in a lower initial public offering price for the shares of Met Life stock allotted to Class members and diluted their interest in the resulting company. MetLife "stands accused of intentional deceit or actual or constructive fraud and violating §7312 of the New York State Insurance Law yet most of those effected by these activities will remain in the dark with Milberg Weiss running their case without their knowledge."

History

The National Union Life and Limb Insurance Company was chartered in 1863, to underwrite Union soldiers during the Civil War. Two years later it changed its name to National Life and Travelers' Insurance Company, and begins to offer life insurance to civilians. In 1868 the name was changed to Metropolitan Life Insurance Co.

By 1909, Metropolitan is the largest life insurance company, with $ billion of insurance in force.

In 1972, the company formed Metropolitan Property and Liability Insurance Company to provide auto and homeowner's insurance.

In 1976, Multiple Employer Trust group policies are introduced, providing insurance under employee benefit programs on a group basis. The company also created a new subsidiary to reinsure health insurance, Metropolitan Insurance and Annuity Co.

In 1981, Metropolitican became the first insurer to pay $100 billion in benefits to policyholders and beneficiaries. Company assets passed the $50 billion mark.

In 1984, the company formed a new mortgage banking company.

In 1985, HMOs are introduced. Acquires Century 21 Real Estate Corp., CrossLand Capital Cor.; Albany Life Insurance Co., Ltd, and Litton Industries Credit Corp.

In 1988, Metlife assumed the group life and health business of Allstate. The next year, it bought the operations of United Resources Insurance Services, Inc., a major provider of retirement and financial programs.

In 1991 MetLife became the first North American company to have $1 trillion in life insurance in force.

In 1994, MetLife merged its health operations with Travelers' to increase both co's share of the managed care market. The result is the largest health insurance company in the U.S. -- MetraHealth Cos., Inc. The next year Metrahealth Cos. Inc was acquired by united HealthCare Corp. for $1.65 billion. MetLife merged with New England Mutual, forming a company with $146.9 billion in assets.

In 2000 MetLife changed from a mutual life insurance company to a stock life insurance company. MetLife raised $4.43 billion in its initial public offering - the 7th largest IPO in U.S. history, completing its transformation from a mutual insurance company to a publicly-traded stock life insurance company. (The move led attorneys to file a securities fraud class action, which the company unsuccessfully moved ts.

Sources
Watchdogs and related campaigns: 
Coalition Against Consumer Fraud
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