MetLife gets record fine...

[jfoxcpacfp]

...on botched annuity swapouts. This cannot engender trust if you are a customer of MetLife. VA's are so confusing. We occasionally meet with a new client who has just re-upped an annuity (and locked in a new penalty surrender period) because their "trusted" agent told them it's time to change to something better and/or cheaper. I realize readers of this site know better, but you should take an interest in protecting your parents. Ask them what their advisors are recommending. Also a good idea to check to see if they have LTCI and if the policy is a good one.

[Docbeans]

Thank you for posting this. It is amazing how many folks get trapped into these- even smart young people. These products need to be to made extinct- except maybe the rare scenario where they are applicable, and I dont know what those are.

[HawkeyeJD]

I think what I find more amusing is that $25MM is a "record fine" for a company the size of Metlife.  I took a quick look at their consolidated financial statement and in 2015 they had a "comprehensive loss" of $568MM compared to 2014 when they reported a "comprehensive income" of $11.8 billion dollars on something like $68 billion in equity and $877 billion dollars in assets. Their 2015 net income attributable to shareholders was in the $5 billion dollar range.

 

Just saying that $25MM is a rounding error when reporting the net income attributable to shareholders.  I could not even find an accounting entry where they even report fines they receive or where they set aside money for a fine they expect to receive in the future.

I am certain Metlife views potential negative publicity as more problematic than the fine, so at least there is that.