MetLife 2009 Annual Report Download - page 182

assertion of monetary damages or other relief. Jurisdictions may permit claimants not to specify the monetary damages sought or may permit
claimants to state only that the amount sought is sufficient to invoke the jurisdiction of the trial court. In addition, jurisdictions may permit
plaintiffs to allege monetary damages in amounts well exceeding reasonably possible verdicts in the jurisdiction for similar matters. This
variability in pleadings, together with the actual experience of the Company in litigating or resolving through settlement numerous claims over
an extended period of time, demonstrate to management that the monetary relief which may be specified in a lawsuit or claim bears little
relevance to its merits or disposition value. Thus, unless stated below, the specific monetary relief sought is not noted.
Due to the vagaries of litigation, the outcome of a litigation matter and the amount or range of potential loss at particular points in time may
normally be inherently impossible to ascertain with any degree of certainty. Inherent uncertainties can include how fact finders will view
individually and in their totality documentary evidence, the credibility and effectiveness of witnesses’ testimony and how trial and appellate
courts will apply the law in the context of the pleadings or evidence presented, whether by motion practice, or at trial or on appeal. Disposition
valuations are also subject to the uncertainty of how opposing parties and their counsel will themselves view the relevant evidence and
applicable law.
On a quarterly and annual basis, the Company reviews relevant information with respect to litigation and contingencies to be reflected in
the Company’s consolidated financial statements. In 2007, the Company received $39 million upon the resolution of an indemnification claim
associated with the 2000 acquisition of General American Life Insurance Company (“GALIC”), and the Company reduced legal liabilities by
$38 million after the settlement of certain cases. The review includes senior legal and financial personnel. Unless stated below, estimates of
possible losses or ranges of loss for particular matters cannot in the ordinary course be made with a reasonable degree of certainty. Liabilities
are established when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated. Liabilities have
been established for a number of the matters noted below. In 2009, the Company increased legal liabilities for litigation matters pending
against the Company. It is possible that some of the matters could require the Company to pay damages or make other expenditures or
establish accruals in amounts that could not be estimated at December 31, 2009.
Asbestos-Related Claims
MLIC is and has been a defendant in a large number of asbestos-related suits filed primarily in state courts. These suits principally allege
that the plaintiff or plaintiffs suffered personal injury resulting from exposure to asbestos and seek both actual and punitive damages. MLIC
has never engaged in the business of manufacturing, producing, distributing or selling asbestos or asbestos-containing products nor has
MLIC issued liability or workers’ compensation insurance to companies in the business of manufacturing, producing, distributing or selling
asbestos or asbestos-containing products. The lawsuits principally have focused on allegations with respect to certain research, publication
and other activities of one or more of MLIC’s employees during the period from the 1920’s through approximately the 1950’s and allege that
MLIC learned or should have learned of certain health risks posed by asbestos and, among other things, improperly publicized or failed to
disclose those health risks. MLIC believes that it should not have legal liability in these cases. The outcome of most asbestos litigation
matters, however, is uncertain and can be impacted by numerous variables, including differences in legal rulings in various jurisdictions, the
nature of the alleged injury and factors unrelated to the ultimate legal merit of the claims asserted against MLIC. MLIC employs a number of
resolution strategies to manage its asbestos loss exposure, including seeking resolution of pending litigation by judicial rulings and settling
individual or groups of claims or lawsuits under appropriate circumstances.
Claims asserted against MLIC have included negligence, intentional tort and conspiracy concerning the health risks associated with
asbestos. MLIC’s defenses (beyond denial of certain factual allegations) include that: (i) MLIC owed no duty to the plaintiffs— it had no special
relationship with the plaintiffs and did not manufacture, produce, distribute or sell the asbestos products that allegedly injured plaintiffs;
(ii) plaintiffs did not rely on any actions of MLIC; (iii) MLIC’s conduct was not the cause of the plaintiffs’ injuries; (iv) plaintiffs’ exposure occurred
after the dangers of asbestos were known; and (v) the applicable time with respect to filing suit has expired. During the course of the litigation,
certain trial courts have granted motions dismissing claims against MLIC, while other trial courts have denied MLIC’s motions to dismiss.
There can be no assurance that MLIC will receive favorable decisions on motions in the future. While most cases brought to date have settled,
MLIC intends to continue to defend aggressively against claims based on asbestos exposure, including defending claims at trials.
The approximate total number of asbestos personal injury claims pending against MLIC as of the dates indicated, the approximate number
of new claims during the years ended on those dates and the approximate total settlement payments made to resolve asbestos personal
injury claims at or during those years are set forth in the following table:
2009 2008 2007
December 31,
(In millions, except number of
claims)
Asbestospersonalinjuryclaimsatyearend ............................ 68,804 74,027 79,717
Numberofnewclaimsduringtheyear................................ 3,910 5,063 7,161
Settlementpaymentsduringtheyear(1) ............................... $ 37.6 $ 99.0 $ 28.2
(1) Settlement payments represent payments made by MLIC during the year in connection with settlements made in that year and in prior
years. Amounts do not include MLIC’s attorneys’ fees and expenses and do not reflect amounts received from insurance carriers.
In 2006, MLIC received approximately 7,870 new claims, ending the year with a total of approximately 87,070 claims, and paid
approximately $35.5 million for settlements reached in 2006 and prior years. In 2005, MLIC received approximately 18,500 new claims,
ending the year with a total of approximately 100,250 claims, and paid approximately $74.3 million for settlements reached in 2005 and prior
years. In 2004, MLIC received approximately 23,900 new claims, ending the year with a total of approximately 108,000 claims, and paid
approximately $85.5 million for settlements reached in 2004 and prior years. In 2003, MLIC received approximately 58,750 new claims,
ending the year with a total of approximately 111,700 claims, and paid approximately $84.2 million for settlements reached in 2003 and prior
F-98 MetLife, Inc.
MetLife, Inc.
Notes to the Consolidated Financial Statements — (Continued)