Who Owns Metlife Insurance Now? New Owner, Same Coverage?

The Metropolitan Life Insurance Company (MLIC), better known as MetLife, is a global insurance company that serves 90 million customers in over 60 countries. In 2000, MetLife became a publicly traded company and is now the holding corporation for MLIC and its affiliates. MetLife no longer sells new life insurance policies to individuals but continues to enroll eligible employees in existing employer-sponsored retirement plans. In 2016, MetLife separated part of its U.S. business to form Brighthouse Financial, which focuses on retail products for consumers. MetLife is the principal underwriter and distributor of the securities offered through its prospectus.

MetLife's history and origins

MetLife, Inc. is the holding company for the Metropolitan Life Insurance Company (MLIC), better known as MetLife, and its affiliates. The company was founded on March 24, 1868, by a group of New York City businessmen who raised $100,000 to found the National Union Life and Limb Insurance Company. The company began business in July 1864, insuring Civil War sailors and soldiers against wartime-related disabilities.

After five difficult years in business and several reorganizations and name changes, President James R. Dow, along with the board of directors, decided to drop the casualty business and focus solely on life insurance. This marked the beginning of the Metropolitan Life Insurance Company.

When MetLife opened for business on March 24, 1868, the company faced difficulties due to a severe business depression that began in the early 1870s. This period forced half of the 70 life insurance companies operating in New York State out of business. MetLife survived and, in 1879, President Joseph F. Knapp turned his attention to England, where he drew inspiration from the successful "industrial" or "workingmen's" insurance programs.

By importing English agents to train an American agency force, MetLife quickly adopted British methods for the US market. This approach proved immediately successful, and by 1880, the company was signing up 700 new industrial policies a day. MetLife became the nation's largest life insurer in 1909 and has continued to expand its operations globally.

Today, MetLife is among the largest global providers of insurance, annuities, and employee benefit programs, with around 90 million customers in over 60 countries. The company holds leading market positions in the United States, Japan, Latin America, Asia-Pacific, Europe, and the Middle East.

MetLife's global presence and expansion

MetLife, Inc. is a global insurance company with a presence in over 60 countries and around 90 million customers. The company is headquartered in New York City and operates in Asia through its regional offices in Hong Kong.

MetLife's history in Asia dates back to 1952 when it first began operations in Bangladesh. Since then, it has expanded its presence in the region, establishing itself in 11 markets across Southeast Asia, including Malaysia, Vietnam, and Myanmar. This expansion has solidified MetLife's position as the top insurance company in East and Southeast Asia.

In addition to its strong presence in Asia, MetLife also has leading market positions in the United States, Japan, Latin America, Europe, and the Middle East. The company serves 90 of the largest Fortune 500 companies and is trusted by clients to provide holistic benefit solutions.

MetLife's global expansion strategy involves a combination of organic growth and strategic acquisitions. The company has pursued alliances and acquisitions to broaden its geographical reach and enhance its product and service offerings. This approach has allowed MetLife to capture attractive growth opportunities in new markets and solidify its position as a leading global insurance provider.

MetLife's commitment to global diversity, equity, and inclusion is evident in its workforce, with employees in over 40 markets globally. The company fosters an inclusive culture that values diverse perspectives and empowers its employees to drive lasting change.

Through its international presence and diverse workforce, MetLife has established itself as a trusted partner to customers worldwide, helping them protect their finances, property, families, and future. The company's global expansion and diverse offerings in insurance, annuities, and employee benefit programs have contributed to its success and market leadership in multiple regions.

MetLife's demutualisation and IPO

MetLife's Demutualization and IPO

In 2000, MetLife, the holding corporation for the Metropolitan Life Insurance Company (MLIC), underwent a process of demutualization, converting from a mutual insurance company to a for-profit public company. This process allowed MetLife to enter unrelated insurance businesses and increase executive compensation.

Prior to demutualization, MetLife was a mutual life insurance company, meaning it was owned and operated by its policyholders without external shareholders. Policyholders' membership interests included voting rights on matters submitted to them and the right to receive a portion of the surplus in the event of liquidation.

In the demutualization, policyholders exchanged these membership interests for beneficial interests in the MetLife Policyholder Trust, which held shares of the stock in the newly formed holding company, MetLife, Inc. Each policyholder was allocated one $14.25 share of MetLife, Inc. for every $26 they had contributed to the company's surplus.

MetLife's demutualization was approved by 93% of the nearly 2.8 million policyholders who voted. The process was facilitated by the distribution of a Prospectus to policyholders, which included a Chairman's Letter, Ballot and Personalized Information Cards, a Read Me First brochure, and a two-part Policyholder Information Booklet.

However, MetLife faced legal challenges from policyholders who claimed that the Prospectus omitted and misrepresented material facts about the effect of demutualization on their rights. They argued that the Prospectus failed to disclose that the demutualization would result in reduced dividends and that policyholders would receive only 54 cents on the dollar for their policies.

In 2007, a court determined that prior to demutualization, MetLife's policyholders were the clients of the company's in-house and outside counsel. As such, the court ruled that MetLife could not claim attorney-client privilege to protect communications between the company and its lawyers regarding the drafting of the Prospectus and the alleged omissions of material facts.

MetLife's IPO, which took place alongside its demutualization, was the largest in US financial history at the time, valued at $6.5 billion. Policyholders were given the choice between a cash or stock stake in the new company. This IPO made MetLife the most widely owned stock in the US, raising the company's value to over $4 billion.

MetLife's business strategy and subsidiaries

MetLife's Business Strategy

MetLife's business strategy is centred around its diverse product mix, global presence, and data-driven approach to targeting customers and improving internal processes. The company offers a wide range of financial services and insurance policies, including life insurance, annuities, employee benefits, auto insurance, and more. MetLife operates in nearly 50 countries and serves approximately 90 million customers worldwide.

To enhance its operations and customer experience, MetLife has been adopting technologies such as artificial intelligence, big data, blockchain, and online and mobile payment solutions. The company utilizes a data-driven approach, leveraging its big data platform to target potential customers, offer personalized products, and streamline internal processes. MetLife also employs machine learning for sales generation and AI for claims processing and service request forecasting.

In terms of pricing, MetLife follows a value-based approach, setting prices based on the perceived value of their products and services to customers. They also conduct competitive analyses to ensure their pricing remains competitive within the industry. MetLife's pricing strategy is designed to be customer-centric and adaptable to different market segments.

MetLife's Subsidiaries

MetLife has numerous subsidiaries and affiliate companies that operate across the globe. Here is a list of some of the notable subsidiaries and affiliates:

• MetLife Investors
• MetLife Bank (sold to GE Capital in 2013)
• MetLife Securities
• Metropolitan Property and Casualty Insurance Company
• General American
• MetLife Legal Plans
• MetLife Resources
• New England Financial
• Walnut Street Securities, Inc.
• Safeguard Health Enterprises, Inc.
• Tower Square Securities, Inc.
• Cigna
• MetLife Insurance Company USA
• MetLife Auto & Home Insurance Agency, Inc.
• MetLife Capital Trust X
• MetLife Health Plans, Inc.
• MetLife Investment Advisors, LLC
• MetLife Investments Securities, LLC
• MetLife Investors Distribution Company
• MetLife Private Equity Holdings, LLC
• MetLife Properties Ventures, LLC
• MetLife SP Holdings, LLC
• MetLife Reinsurance Company of Charleston
• MetLife Reinsurance Company of Vermont
• MetLife Tower Resources Group, Inc.
• Metropolitan Casualty Insurance Company
• Metropolitan Direct Property and Casualty Insurance Company
• Metropolitan General Insurance Company
• Metropolitan Group Property and Casualty Insurance Company
• Metropolitan Life Insurance Company
• Metropolitan Lloyds Insurance Company of Texas
• Metropolitan Property and Casualty Insurance Company
• Metropolitan Tower Life Insurance Company
• American Life Insurance Company
• Delaware American Life Insurance Company
• Economy Fire & Casualty Company
• Economy Preferred Insurance Company
• Economy Premier Assurance Company
• Hyatt Legal Plans of Florida, Inc.
• Hyatt Legal Plans, Inc.

MetLife's scandals and controversies

In 1905, MetLife lost a legal case, Pavesich v. New England Life Insurance Company, in which they attempted to use an image of another person for promotion, but this was ruled a breach of privacy and libelous. This case became a standardly cited case on privacy in US law.

In 2012, MetLife failed the Federal Reserve's Comprehensive Capital Analysis and Review stress test, which predicted the potential failure of the company in a recession. MetLife owned MetLife Bank at the time, so it was subject to stricter financial regulation. To escape this, MetLife announced the sale of its banking unit to GE Capital. However, this attempt to escape "too big to fail" regulation was not successful. In 2014, the US government observed the 2010 Dodd-Frank financial reform law by proposing an official label for MetLife as "systemically important" to the American economy. MetLife continued to litigate this issue in 2015, becoming the first non-bank to challenge such a decision.

In 2014, MetLife paid $23 million to settle multiple lawsuits over junk fax operations used to generate leads for life insurance sales.

In 2015, MetLife was fined $3.2 million by the Federal Reserve for using unsafe and unsound practices in handling its mortgage servicing and foreclosure operations. In the same year, MetLife Home Loans LLC paid $123.5 million to the United States Department of Justice to resolve allegations that it knowingly made mortgages insured by the US government that didn't meet federal underwriting requirements.

In 2019, MetLife was sued for gender discrimination by a female former senior vice president, Mona Moazzaz. Moazzaz said she was underpaid, called a "bitch", and told she had to "choose between being pretty and being smart" while working at the company. She also said she was unfairly passed over for promotion and was ultimately fired in May 2019 after authoring a document calling attention to a lack of diversity at the company. MetLife responded to the lawsuit, stating that they believed "the allegations are without merit and plan to defend this matter vigorously".

In 2024, MetLife provided new details about how it lost track of thousands of pension clients. The company said it had inappropriately lost track of 2% of the pension clients, or about 13,500 individuals, in the affected business unit. This problem began 25 years ago and was part of a unit that takes on pension obligations from employers who no longer want to manage them. MetLife's challenges were compounded by the fact that some of its risk-transfer business was written as much as 25 years ago and involved many participants who were still years from retiring and collecting pensions. The company attempted to reach beneficiaries twice—once when they approached 65 and again at 65 and a half when they were required to begin drawing benefits. If both attempts failed, MetLife released the funds from its reserves, assuming the customer wouldn't respond.

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