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MetLife's Delaware layoffs scrutinized By JONATHAN STARKEY • The News Journal • April 14, 2011 MetLife moved to lay off 150 employees last year after buying two Delaware-based units from insurance conglomerate American International Group -- apparently burning Delaware's insurance regulator in the process. Delaware Insurance Commissioner Karen Weldin Stewart has fired off letters to MetLife and reopened an examination of the company to determine if they misrepresented layoff plans during the state's regulatory review of the $15.5 billion sale of Alico and Delaware American Life Insurance Co., or DelAm. Stewart's office has refused to release her communications with MetLife to the public, saying those letters must remain sealed while an examination is under way. MetLife, a life insurance giant, said the 150 layoffs include reductions in employment made last year and more layoffs planned this year. Stewart approved the sale to MetLife last August. At the time, the two companies employed 450 people in Delaware, most prominently in Alico's King Street office tower in Wilmington. Members of Stewart's office said a hearing could be scheduled on the MetLife layoffs, but it's unclear what authority Stewart has to punish the company. "The bottom line on this is the commissioner is taking all appropriate means necessary to ascertain whether or not MetLife has the proper level of personnel in place to carry out management and underwriting operations of Alico," Deputy Insurance Commissioner Gene Reed said in an interview. "We want to make sure that they maintain the representations that they made during that Form A [regulatory] process," Reed added. Alico has been known as one of the world's largest and most diversified international life insurance companies. During the recession, even as its parent company, AIG, teetered toward collapse, Alico performed well. AIG sold Alico and DelAm to help repay government bailout funds. In 2009, AIG sold its Delaware-based auto insurer 21st Century Insurance Group to Farmers Insurance Group for $1.9 billion, also to pay down government obligations. At its high point, AIG had 1,400 Delaware employees. Its payroll numbers here fell to about 700 employees by mid-2005. MetLife declined comment specifically for this article. When questioned about layoffs by The News Journal in March, MetLife confirmed that it had laid off employees last year and that more were planned. A company spokesman declined to say how many employees had been laid off but said that layoffs are "expected when you consolidate support functions after bringing together two very large companies." "MetLife continues to employ the overwhelming majority of the former Alico staff," MetLife spokesman John Calagna said. "We remain committed to the Wilmington location, although with fewer employees working at that location."
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