Monthly op risk losses: MetLife suffers $510m pension reversal
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The biggest operational risk loss in February was incurred by US insurer MetLife, which reinstated $510 million of pension reserves it had previously released in the 1990s. The firm discovered it had failed to make appropriate efforts to locate almost 13,500 people before declaring them “unresponsive and missing” and releasing their funds from its reserves. As a result, annuitants failed to receive due payments over a 25-year period.
Its internal controls at the time meant MetLife would release
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