Report Says JPMorgan Seeks Buyer For Life Subsidiary

JPMorgan Chase & Co., New York, plans to sell its life insurance and annuity business, according to a published report.

Quoting an unnamed source, the Reuters news agency says JPMorgan is seeking to sell the operation, which was part of its acquisition of BankOne Corp. last year.

JPMorgan’s life business had $48 million in income on $393 million in revenue in 2004, according to a company spokesman, who declined to comment on the report.

BankOne bought the business in 2003 from Zurich Kemper Life, a unit of Zurich Financial Services, Zurich, for $1 billion. Zurich paid twice that amount when it acquired the business in 1996.

AIG Announces New Restatement

American International Group Inc. says it will be delaying the release of its third quarter earnings and restating all financial statements published since 2002 to correct accounting problems.

The problems relate mostly to accounting for derivatives, tax accounting and “reconciliation of certain balance sheet accounts,” according to AIG, New York.

The accounting problems led AIG to understate the consolidated retained earnings figure published for the second quarter by about $500 million, the company says.

In related news, AIG says it expects to report $1.7 billion in total net income for the third quarter.

AIG does not mention its life or annuity operations in the release announcing the earnings restatements.

MetLife Offers LTC Partnership Product In California

MetLife, New York, says it has started offering long term care insurance benefits programs in California that qualify for certification from the California Partnership for Long Term Care.

Consumers who buy LTC policies certified by a state partnership and end up using private LTC benefits can protect more assets than other consumers before qualifying for Medicaid nursing home benefits.

Employers can offer the MetLife/CPLTC program on either an employer-paid or a voluntary basis, MetLife says.

MetLife notes that 7.2% of adult California residents have LTC coverage.