MetLife Inc. said in a federal filling Thursday that it expects to report a series of charges totaling $155 million or more for the third quarter related to changes in life insurance reserves, claims paid out during the period and the liquidation of a collapsed rival.
The New York-based life insurance company said in a filing with the Securities and Exchange Commission that it will record an after-tax charge of $115 million to $135 million to adjust its reserves. The adjustment follows the use of databases from the Social Security Administration and other sources to identify certain insurance policies and other contracts where the covered person may have died but a claim has not been filed with MetLife.
MetLife also expects $80 million to $100 million in catastrophe losses for the quarter following severe storms and Hurricane Irene. That's well above the $38 million the company had planned for such losses.
And it will record an after-tax charge of about $40 million related to a liquidation plan filed by the New York State Insurance Department for Executive Life Insurance Company of New York.
Executive Life Insurance was formerly a large issuer of life insurance, structured settlement annuities, group annuities and guaranteed investment contracts issued to pension plans and municipalities. It has been under rehabilitation by the state's Liquidation Bureau since 1991. The plan involves satisfying insurers' financial obligations under a number of state life and health insurance guarantee associations, and says that additional industry support for certain of the defunct company's policyholders will be provided.