Financial services and insurance giant MetLife announced Q1 2016 earnings that fell short of expectations, with total operating revenues taking a 2% dip and operating earnings taking a more significant 19% hit. President and CEO Steven A. Kandarian said that the results underscored continuing “market headwinds” but praised the underwriting results. During that same call, MetLife also announced it would be pulling out about $1.2 billion of the $1.8 billion that it currently has invested in hedge funds and siphon that money into other investment vehicles, following the lead of other firms like American International Group. It’s part of a growing trend away from high-fee funds. The company has also been locking horns with federal regulators who believe MetLife, the nation’s largest life insurer, is “too big to fail.” That scuffle has led the firm to consider spinning off its retail insurance and financial product business. However, a federal judge ruled against the government in March 2016, going on to say its designation of MetLife as TBTF is “arbitrary and capricious.” The government plans to appeal the ruling.
News about MetLife
The country's biggest life insurer was designated "too big to fail" in 2014.
It says their process is flawed.
Will pull two-thirds of its investments.
Regulators are sending a tough message.