FOR IMMEDIATE RELEASE 2019-269 Washington D.C., Dec. 18, 2019

The Securities and Exchange Commission today charged MetLife, Inc. with violating the books and records and internal accounting controls provisions of the federal securities laws relating to two errors in its accounting for reserves associated with its annuitys businesses. MetLife has agreed to pay $10 million to settle the charges. According to the SECs order, MetLife improperly released reserves for annuity benefits associated with MetLifes Retirement and Income Solutions Business, which resulted in an increase in income. For over 25 years, MetLifes practice was to presume annuitants had died or otherwise would never be found if they did not respond to only two mailing attempts made approximately five and half years apart. MetLife later determined that its processes for locating and contacting unresponsive annuitants were insufficient to justify the release of reserves. To correct this error, MetLife increased reserves by $510 million as of year-end 2017.

The SECs order also finds that MetLife overstated reserves and understated income relating to variable annuity guarantees assumed by a MetLife subsidiary. MetLife disclosed that this error was caused by data mistakes, including a failure to properly incorporate policyholder withdrawals into MetLifes valuation model. To correct this error, MetLife reduced reserves by $896 million as of year-end 2017. Investors are entitled to the reliability and accuracy of financial information, said Marc P. Berger, Director of the SECs New York Regional Office. The Commission found that MetLifes insufficient internal controls caused longstanding accounting errors. The SECs order finds that MetLife violated the books and records and internal accounting controls provisions of the federal securities laws. Without admitting or denying the Commissions findings, MetLife has agreed to cease and desist from committing or causing any future violations of these provisions and to pay a civil penalty of $10 million.

Task 2 I:

internal Audit focuses on outcomes with a forward-looking and solution-based approach. a. Synthesize your understanding of general control strategies, a test of controls and steps to be taken to ensure key stakeholder interests and obligations in internal control practices.