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$MET intends to merge its subsidiary, General American Life Insurance Company, with and into another subsidiary, Metropolitan Tower Life Insurance Company. Metropolitan Tower will continue as the surviving entity after the merger, and the merged entity will be domiciled in Nebraska. The transactions are expected to be completed in 1H18.
The BoD of $WFC has elected three new independent directors: Celeste A. Clark, former Chief Sustainability Officer at $K; Theodore F. Craver, Jr., former CEO of $EIX; and Maria R. Morris, recently Interim Head of the US Business at $MET. The three new directors will join the board on Jan. 1, 2018. The board has named six new directors in 2017.
$MET said 3Q17 has been a strong underwriting quarter in Group Benefits. Group life mortality in particular was very favorable, at the low end of its target range, driven by lower incidents. However, the company added that group underwriting results can be volatile quarter-to-quarter, and hence, the 3Q17 results cannot be seen as a trend.
$MET's revenue in 3Q17 grew 2% to $16.1Bil and operating earnings grew 10% to $1.2Bil, helped by strong volume growth during the quarter. However, weighed down by charges related to Brighthouse spin off, the insurance giant swung to a loss of $87MM, or 8 cents per share, compared to a profit of $571MM, or 51 cents per share a year ago.
$CSC, provider of technology services, has signed a definitive agreement to administer nearly 7MM policies for $MET, consisting of select retail life and annuity closed block business. As part of the deal, CSC will offer employment to more than 1,000 MetLife employees in the US and India. The employee transition will be completed by 2016 end.
$MET will hold a special meeting of its common stock shareholders on Oct 19, 2017, to approve changes to dividend payment tests in the company’s charter. These changes would avoid potential dividend and common stock repurchase restrictions which could occur as a result of the Aug 4, 2017 spin-off of $BHF.
$MET said it did not experience an interest rate hike post the US presidential election as was predicted. Metlife said the monetary policy is keeping the rates artificially low, but called for more action from elected officials on the fiscal monetary front, especially through tax reforms.
Brighthouse Financial, which has been spun-off from $MET, reported operating earnings of $283MM in 2Q17, down 5%, driven by lower investment income and higher expenses. Brighthouse Financial will start trading at Nasdaq Stock Market on Monday.
Ahead of the completion of divestiture of Brighthouse Financial, life insurer $MET reported 13% growth in revenue to $17.25Bil in 2Q17. Net income jumped to $838MM, or $0.77 per share, compared to $64MM, or $0.06 per share in the year-ago period. Net income included $284MM in net derivative losses, compared to $1.4Bil in 2Q16.