NU Online News Service, Aug. 11, 2003, 11:43 a.m. EDT – MetLife Inc., New York, says it is cutting its second-quarter earnings $31 million because of “certain improperly deferred expenses” at its New England Financial unit.
The company also announced that it is replacing the head of New England Financial.
MetLife is attributing $2 million of the earnings adjustment to incorrect reporting of expenses for individual traditional life products at New England Financial and $29 million to incorrect reporting of expenses for individual variable and individual universal life products at New England Financial.
The adjustment reduces MetLife’s second-quarter operating earnings to $620 million, from $651 million, and its net income to $580 million, from $611 million.
MetLife has named Eileen McDonnell, a senior vice president for individual insurance business development, to replace Thom Faria as president of New England Financial. Faria “has left the company,” MetLife says.
McDonnell began working for MetLife earlier this year. Previously, she was head of individual insurance at Guardian Life Insurance Company of America, New York.