MetLife has a multipronged plan to improve the way it tracks down missing annuitants, the company said Thursday.<\/p>\n
The actions come in the wake of a $510 million charge in the fourth quarter related to a group of 13,500 annuitants going back many years.<\/p>\n
\u201cWe believe these remediation steps will further strengthen our internal control over financial reporting,\u201d said CFO John McCallion in a conference call with analysts.<\/p>\n
The New York-based company said that it would:<\/p>\n
\u201cWe will test the ongoing operating effectiveness of all new controls subsequent to implementation and will consider the material weaknesses remediated after the applicable controls operate effectively for a sufficient period of time,\u201d McCallion said.<\/p>\n
Two senior company executives have left since the incident around the missing annuitants issue came to light.<\/p>\n
CFO John C.R. Hele retired and was succeeded by 12-year MetLife veteran McCallion on May 1, the company said.<\/p>\n
Analysts noted the suddenness of Hele\u2019s departure.<\/p>\n
Big companies like MetLife always have management changes from time to time, said president and CEO Steven A. Kandarian.<\/p>\n
In any big company, \u201cthere’s never a great or perfect time for an announcement of a major change at senior executive levels,\u201d Kandarian said.<\/p>\n
Under SEC rules, decisions surrounding high-level executives must be disclosed made within four days, he said.<\/p>\n
\u201cSo it’s not like there’s a great deal of flexibility about timing of announcements, so that drives a lot of it,\u201d Kandarian said.<\/p>\n
Before joining MetLife, McCallion spent nearly 10 years at PwC in the insurance audit practice, where he worked with multinational and U.S. clients in the life and property\/casualty insurance sectors.<\/p>\n
In March, Marlene Debel, U.S. CFO for MetLife, was appointed to lead the company\u2019s Retirement & Income Solutions business.<\/p>\n
She replaced Robin Lenna who retired March 1, after leading the Retirement & Income Solutions unit for the past 12 years.<\/p>\n
The company has previously declined to comment on the reasons for Lenna\u2019s retirement.<\/p>\n
MetLife on Wednesday reported first-quarter earnings of $1.25 billion.<\/p>\n
On a per-share basis, the New York-based company said it had net income of $1.19.
\nEarnings, adjusted for non-recurring costs, came to $1.36 per share.<\/p>\n
The results surpassed Wall Street expectations. The average estimate of six analysts surveyed by Zacks Investment Research was for earnings of $1.17 per share.<\/p>\n
The insurer posted revenue of $14.81 billion in the period. Its adjusted revenue was $15.14 billion.<\/p>\n
MetLife shares have decreased 11 percent since the beginning of the year, while the Standard & Poor’s 500 index has fallen slightly more than 1 percent. In the final minutes of trading on Wednesday, shares hit $45.05, a decrease of 13 percent in the last 12 months.<\/p>\n
InsuranceNewsNet Senior Writer Cyril Tuohy has covered the financial services industry for more than 15 years. Cyril may be reached at cyril.tuohy@innfeedback.com.<\/span><\/em><\/p>\n \u00a9 Entire contents copyright 2018 by InsuranceNewsNet.com Inc. All rights reserved. No part of this article may be reprinted without the expressed written consent from InsuranceNewsNet.com.<\/span><\/strong><\/p>\n The post MetLife Issues Multipronged Plan To Find Missing Annuitants<\/a> appeared first on InsuranceNewsNet<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":" MetLife has a four-point plan to find annuitants after the company discovered it failed to pay nearly a half a billion dollars over decades.<\/p>\n The post MetLife Issues Multipronged Plan To Find Missing Annuitants<\/a> appeared first on InsuranceNewsNet<\/a>.<\/p>\n","protected":false},"author":578,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[],"tags":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/8423"}],"collection":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/users\/578"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/comments?post=8423"}],"version-history":[{"count":1,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/8423\/revisions"}],"predecessor-version":[{"id":8424,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/8423\/revisions\/8424"}],"wp:attachment":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/media?parent=8423"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/categories?post=8423"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/tags?post=8423"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}