NU Online News Service, Feb. 7, 2:34 p.m. – MetLife, Inc., New York, announced that it will take a $250 million pre-tax charge for the fourth quarter 2001.
The charge is being recorded to cover costs associated with the anticipated resolution of class-action lawsuits and a regulatory inquiry pending against Metropolitan Life Insurance Company, involving alleged race-based insurance underwriting practices before 1973.
This is an “accounting announcement,” says MetLife spokesman Kevin Foley. Met Life cannot characterize the progress on settlement talks for either an investigation by the New York insurance department or a class action suit against the company, he adds.
A spokesperson for the New York insurance department declined to comment an investigation of Met Life’s practices that has been ongoing for over a year.