MetLife Inc. has filed its Form 10-K for the year ended Dec. 31, 2017, after revising the company's full-year 2017 net income with no impact on adjusted earnings.
The revision is related to a release of reinsurance reserves for Japanese variable annuities following an internal review of reserving practices for this block of business reported in the MetLife Holdings segment.
This reserve release had no impact on payments to customers. However, the release increased full-year 2017 net income by $264 million and shareholders' equity by $708 million, the company disclosed.
Additionally, the company's management has determined that the over-reserving represents a material weakness in internal control over financial reporting. For 2018, the reserve release is expected to free up capital and positively impact free cash flow, the company said.
