The Functional Segment Operations Of Metlife Essay

MetLife operates in four sections viz. Institutional, Individual, International and Auto & A ; Home. MetLife ‘s Institutional section offers group benefit merchandises as follows:

Life & A ; disablement insurance

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Retirement Merchandises

Prepaid legal programs

The Individual Segment offers largely the same merchandises as above customized for consumers, while the International Segment offers the same to groups and persons in the Asia/Pacific part, Europe, and Latin America. MetLife ‘s Auto & A ; Home section works through subordinate Metropolitan Property and Casualty Insurance ( MPC ).

The Company ‘s Institutional section offers a scope of group insurance and retirement and nest eggs merchandises and services to corporations and other establishments and their several employees. Group insurance merchandises and services include group life insurance, non-medical wellness insurance merchandises and related administrative services, every bit good as other benefits and services, such as employer-sponsored car and householders insurance provided through the Auto & A ; Home section and postpaid legal services programs. Non-medical wellness insurance consists of merchandises, such as inadvertent decease and taking apart ( AD & A ; D ), long-run attention ( LTC ), short and long-run disablement, single disablement income, dental insurance, and postpaid legal services. MetLife offers group insurance merchandises as employer-paid benefits or as voluntary benefits, where all or a part of the premiums are paid by the employee. Its retirement and nest eggs merchandises and services include an array of rente and investing merchandises, including defined part programs, guaranteed involvement merchandises and other stable value merchandises, accretion and income rentes, and separate history contracts for the investing direction of defined benefit and defined part program assets.

MetLife ‘s Individual section offers a assortment of protection and plus accretion merchandises aimed at functioning the fiscal demands of its clients throughout their full life rhythm. Merchandises offered by Individual include insurance merchandises, such as traditional, variable and cosmopolitan life insurance, and variable and fixed rentes. In add-on, Individual gross revenues representatives distribute disablement insurance and LTC insurance merchandises offered through the Institutional section, investing merchandises, such as common financess, every bit good as other merchandises offered by the Company ‘s other concerns. Individual ‘s chief distribution channels are the bureau distribution group and the independent distribution group. Individual besides distributes merchandises through several extra distribution channels, including Walnut Street Securities, Inc. ( Walnut Street Securities ), MetLife Resources, Tower Square Securities, Inc. ( Tower Square Securities ) and Texas Life Insurance Company ( Texas Life ).

International section provides life insurance, accident and wellness insurance, recognition insurance, rentes and retirement and nest eggs merchandises to both persons and groups. The Company focuses on emerging markets chiefly within the Latin America, Europe and Asia Pacific parts. MetLife operates in international markets through subordinates and joint ventures. The Company operates in the Latin America part in states, including Mexico, Chile, Argentina, Brazil and Uruguay. The operations in Mexico, Chile and Argentina represented 82 % of the entire premiums and fees in this part during 2008. MetLife operates in Europe in states, including the United Kingdom, Belgium, Poland and Ireland. The Company operates in the Asia Pacific part in states, including South Korea, Taiwan, Australia, Japan, Hong Kong and China. The operations in South Korea and Taiwan represented 70 % of the entire premiums and fees in this part during 2008.

Auto & A ; Home, runing through Metropolitan Property and Casualty Insurance Company and its subordinates ( MPC ), offers personal lines belongings and casualty insurance straight to employees at their employer ‘s worksite, every bit good as to persons through a assortment of retail distribution channels, including the bureau distribution group, independent agents, belongings and casualty specializers and direct response selling. Auto & A ; Home chiefly sells car insurance, which represented 69 % of Auto & A ; Home ‘s entire cyberspace earned premiums during the twelvemonth ended December 31, 2008, and householders and other insurance, which represented 31 % of Auto & A ; Home ‘s entire cyberspace earned premiums during 2008. Auto & A ; Home ‘s insurance merchandises include car, householders, tenants, condominium and home, and other personal lines.

Corporate & A ; Other contains the extra capital non allocated to the concern sections, which is invested to optimise investing spread and to fund company enterprises, assorted start-up entities, MetLife Bank which includes the 2008 acquisitions of a residential mortgage arising and serving concern and a rearward mortgage company, and run-off entities. Corporate & A ; other besides includes involvement disbursal related to the bulk of its outstanding debt and disbursals associated with certain legal proceedings. The riddance of all intersegment minutess from activity between sections occurs within Corporate & A ; Other.

Company Scheme

Though a portion of the name of MetLife stands for “ Metropolitan ” the company maps everyplace from little small towns to towns and big metropoliss. A winning scheme for MetLife has been to concentrate on pull offing their concern for the long term. Executing this scheme is core to their continued growing. While the ambitious economic conditions and sulky markets are impacting gross revenues in the fiscal services industry, MetLife ‘s nucleus basicss remain strong as they continue to profit from a diversified concern. Though the economic system negatively affected the life market, consumer assurance is bouncing. One of import issue is the impact of possible revenue enhancement reform proposals on their merchandises — whether straight or indirectly. An of import characteristic of insurance merchandises is revenue enhancement deferral and a tax-exempt life insurance decease benefit. During unsure economic times, the warrants and protection available in hard currency value life insurance may go more popular. High early hard currency value merchandises are acquiring more attending in the concern markets and are being used to assist roll up and reconstruct wealth in a tax-efficient mode.

MetLife has earlier already diversified in critical unwellnesss around 2005. It was MetLife ‘s first venture that specifically bundled coverage for a figure of critical unwellnesss, which in other programs include bosom onslaughts, dangerous malignant neoplastic disease, shots, multiple induration, major organ graft, nephritic failure, sightlessness, hearing loss and palsy. Given the comprehensiveness of merchandises MetLife sells to both establishments and persons, this new bundled attack provided MetLife with an first-class chance for cross-marketing gross revenues.

Latest News

AIG in Talks With MetLife For Sale Of Alico

American International Group Inc. ( AIG ) is in advanced negotiations to sell American Life Insurance Company ( Alico ) to MetLife Inc. Alico may be sold for $ 14 billion to $ 15 billion. Bloomberg reported that Mark Herr, a spokesman for AIG denied noticing on the issue. Christopher Breslin, functionary of MetLife stated that the company “ does non necessitate to come in into any amalgamations and acquisitions ” to run into its ends and that any trade it makes must be “ financially attractive. ” A sale understanding is likely to be announced in a few hebdomads if the companies are able to negociate staying trade footings. MetLife made a preliminary offer of about $ 11.2 billion for the division, people familiar with the command said in February. Shares of AIG rose 36 cents to $ 28.42 and MetLife ‘s portions rose 2.6 % to $ 38.85.

Banco del Estado de Chile, MetLife, Inc to Concentrate on Innovation, Online Gross saless, New Distribution Channels

Banco del Estado de Chile and MetLife, Inc. will during the following five old ages concentrate their life insurance partnership on invention, on-line gross revenues and new distribution channels. MetLife signed a 20-year partnership covering the life concern with BancoEstado in September 2004, as a consequence of which the former took a 49.9 % interest in the bank ‘s insurance securities firm, BancoEstado Corredores de Seguros. The chief focal point for the following five old ages will be on invention in the sense that the securities firm will suggest regulative alterations that contribute to a faster development of the insurance industry.


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