MetLife To Take $792 Mln Q3 Charge

(RTTNews) - Life insurer MetLife, Inc. (MET) said Wednesday that it expects to record a non-cash charge to operating earnings and net income of $792 million, after tax, or $0.70 per share, during the third quarter of 2015, related to the tax treatment of a wholly-owned U.K. investment subsidiary of Metropolitan Life Insurance Co.

The charge, which is being recorded under accounting guidance for the recognition of tax uncertainties, is the result of the company's consideration of recent decisions of the U.S. Court of Appeals for the Second Circuit upholding the disallowance of foreign tax credits claimed by other corporate entities not affiliated with the company. The company's action relates to tax years 2000 to 2009, during which Metropolitan Life Insurance Co., a subsidiary of MetLife, Inc., held non-U.S. investments in support of its life insurance business through a U.K. investment subsidiary that was structured as a joint venture at the time.

On a statutory basis, the third quarter charge for Metropolitan Life Insurance Co. will be $911 million, after tax.

MetLife said it continues to contest the disallowance of the foreign tax credits by the IRS as it believes the facts strongly support the company's position.

The company does not expect any additional charges related to this matter.