By some estimates, more than $261 billion annually moves through the U.S. tort system (Tillinghast, 2006).¹  Of that total, approximately 64% - or $167 billion - is paid to claimants and plaintiffs (or to their attorneys).²  MetLife offers innovative strategies for complex litigation settlements. We provide integrated, comprehensive solutions and implementation programs to help structure settlements that are mutually beneficial to defendants and plaintiffs.

MetLife's financial strength, experience and reputation for quality have made us the sought after provider of structured settlements expertise for more than 23 years. Our know-how can provide solutions for difficult or unusual situations. MetLife, an innovator in adapting to client needs, was the first company to provide a variable structured settlement annuity product. MetLife meets the risk transfer needs of defendants and provides for the future financial security of claimants by offering both fixed and variable structured settlement annuities.

Structured Settlements

Since entering this marketplace in 1983, MetLife has provided financial security through structured settlement annuities for the claimants of personal injury lawsuits. For more than 23 years, clients have looked to MetLife for our expertise and ability to structure exactly the right settlement for the situation. During this time, more than $16 billion in settlements has been placed with us. They know they can count on MetLife's 140-year reputation for financial stability and they appreciate the security of a known and trusted company.

The Benefits of MetLife Structured Settlements include:

• Tax-free income. A structured settlement is a one-time opportunity to settle a physical injury claim (including wrongful death) and/or workers' compensation claims, with a future stream of tax-free benefit payments.³  Section 104(a)(2) of the Internal Revenue Code ("Code") clarifies that the full amount of the structured settlement payments related to personal injury claims is tax-free. Code Section 104(a)(1) provides similar tax relief for workers' compensation awards. By contrast, the investment earnings on a lump sum payment are usually fully taxable.⁴
• Customized payment streams. A MetLife structured settlement can be tailored to meet a claimant's specific needs. Payments can be scheduled for any length of time, including over a claimant's lifetime, or over the joint lifetimes of the claimant and a designated second life (i.e., a spouse). Payments can begin immediately or be deferred. Lump sum payments can also be set up to meet future anticipated needs, such as a down-payment on a house or certain annual payments that can be set up to fund a child's college education.⁵
  Payments for as long as the claimant lives. In times of increasing longevity, when many people are concerned about outliving their savings, the availability of lifetime payments can be of critical importance to claimants.
• Payments to the beneficiary. If a claimant accepts an all-cash settlement, there is no assurance that funds will remain after death for a named beneficiary. However, guaranteed structured settlement payments can be received by the named benficiary.^6,7

Variable Structured Settlements

MetLife Settlement Plus is the first annuity for the structured settlement market that provides for participation in the performance of equity markets, through scheduled periodic payments which are linked to the performance of Investment Divisions (fund portfolios with a diversified pool of assets) under a variable income annuity.

• At the time of settlement, a portion of the claim award chosen to be received in the form of a structured settlement is applied toward the purchase of a fixed number of annuity units, which offers an opportunity for future income growth. The value of the resulting income payments will fluctuate based on the performance of the investment choices selected with a MetLife Settlement Plus variable annuity.
• Six investment choices are available for variable income payments and payments may be linked to a combination of these Investment Divisions.
• Diversifications among Investment Divisions reduces risk and protects the claimant's income against inflation.
• Pursue professional management and asset allocation.

Reinsurance Agreements

Reinsurance is the transfer by a licensed insurance company of its liabilities under specific insurance contracts to another licensed insurer (or reinsurance company). Reinsurance is often used for certain workers' compensation cases. However, other potential uses include, but are not limited to, Policy Buyouts and Environmental Claims. Reinsurance agreements, which are offered through MetLife Insurance Company of Connecticut, may generally be utilized in all 50 states to the extent permitted under applicable state law.

Critical Injury Insurance

MetLife Critical Injury Insurance is a new form of Accident and Health insurance that offers guaranteed coverage for specified latent injuries.⁵

The Benefits of Critical Injury Insurance include:

• Efficient settlement mechanism for latent tort claims.
• Transfer of risk and responsibility to MetLife.
• Guarantee of lifetime protection for claimant.
• Cash benefits payable upon diagnosis of covered injury.

Mass Torts

MetLife’s Tower Resource Group supports the mass tort litigation market, working with defendant and plaintiff attorneys to help settle big claims for large groups. Tower Resources Group offers specialized distribution options, including Funding Agreements and Structured Settlements. Tower Resource Group also provides plaintiff services such as financial education seminars, individual financial consultation services, custom benefit schedules, settlement checks, Structured Settlement and traditional annuities, individual financial services and customized distribution channels such as Total Control Account. The Total Control Account is generally available as a claim settlement option for MetLife Life Insurance coverages. The Total Control Account helps protect the financial security of beneficiaries and offers immediate access to and control of their settlement proceeds. The funds held in the Total Control Account, plus the interest earned, are fully guaranteed by MetLife.

Settlement Architecture

From creative funding and settlement strategies to specialized services for plaintiffs, MetLife develops innovative solutions for the most complex litigation settlements.

MetLife can:

• Facilitate settlements utilizing a portfolio of unique products and services to meet a broad array of settlement needs.
• Design customized funding instruments to secure, manage and distribute settlement funds.
• Provide individual plaintiff financial services.