MetLife executives say there were deficiencies in internal controls
On December 15, MetLife announced that it was undertaking a review of practices and procedures used to estimate its reserves related to certain Retirement and Income Solutions group annuitants who have been unresponsive or missing over time. As a result of this process, management, in consultation with the Audit Committee of MetLife,s Board of Directors, has identified a material weakness in the company's internal control over financial reporting related to certain RIS group annuity reserves.In addition, the company has completed a review of its processes and procedures for identifying unresponsive and missing (a) international group annuity annuitants and pension beneficiaries and (b) policyholders and beneficiaries for the other insurance and annuity products the Company offers for all segments. While certain of the company's processes, procedures, and controls have been identified for further enhancement, no issues which would be material to the conduct of the Company's business, results of operations or financial position were identified. The Company intends going forward to increase the scope and frequency of such reviews in connection with its material weakness remediation efforts.Based on the company's internal review, MetLife, Chief Executive Officer and Chief Financial Officer determined that there were deficiencies in the design and/or execution of internal controls that aggregated to a material weakness. Management determined that a lack of adequate controls over the administrative and accounting practices relating to certain RIS group annuity reserves and the untimely communication and escalation of issues regarding those reserves throughout the company contributed to the material weakness.