Insurance Giant MetLife CFO John Hele Out
By: Ron Stern, Xiro Xone News May 1, 2018 Updated: 4:21 PM PT
John C.R. Hele, chief financial officer of MetLife Inc. has retired and will be replaced by the company’s treasurer John McCallion, according to a statement released today by MetLife Inc. Hele will not be leaving the company immediately he will remain as a senior adviser until, September 2018. “I want to thank John Hele for his service as CFO and for bringing a sharper focus on the true economics of the business we write,” said MetLife Chief Executive, Steven Kandarian. Hele was appointed to the position in 2012.
In a proxy statement on April 26, 2017, the company cut Hele’s total compensation by 6.4 percent, to $5.3 million from $5.7 million, a change that reflected MetLife’s performance managing financial matters, including material weaknesses in internal control over financial reporting.
In 2017 MetLife disclosed two key financial reporting errors, including payments it failed to make to pensioners whom it could not locate. In January, the company delayed the release of its fourth-quarter earnings statement after saying it had lost track of retirees who were owed monthly pension benefits, and had improperly reduced reserves tied to those pension payments.
This is not the first time around for these types of errors. In October 2015, shares fell on news that the company’s combined risk-based capital (RBC) ratio was lower, than reported, due to accounting failures tied to annuity claims.
According to U.S. Attorney John Walsh, ”MetLife took advantage of the FHA insurance program by knowingly turning a blind eye to mortgage loans that did not meet basic underwriting requirements, and stuck the FHA and taxpayers with the bill when those mortgages defaulted.”
On August 7, 2012, it was announced that MetLife will pay $3.2 million in fines after the Federal Reserve charged it used unsafe and unsound practices in handling its mortgage servicing and foreclosure operations.
In 2015, MetLife Home Loans LLC paid $123.5 million to the United States Department of Justice to resolve allegations it knowingly made mortgages insured by the United States government that didn’t meet federal underwriting requirements. MetLife and its affiliates are among the largest global providers of insurance, annuities, and employee benefit programs. The have 90 million customers in over 60 countries and serves 90 of the largest Fortune 500 companies.