How a Civil War insurer grew into a global financial giant and regulatory battleground
In short: Founded in 1868 to insure soldiers against wartime disabilities, MetLife evolved from a mutual company into a publicly traded behemoth. Along the way, it financed iconic skyscrapers, survived the Great Depression, and eventually found itself at the center of high-stakes legal battles over what it means to be too big.
MetLife began as the National Union Life and Limb Insurance Company in 1863, initially focusing on Civil War soldiers and sailors. By 1868, it rebranded as the Metropolitan Life Insurance Company, shifting its focus to life insurance. Under President Joseph F. Knapp, the firm pioneered 'industrial' insurance in the United States, selling small policies to working-class families with premiums collected at their homes. By 1909, it had become the largest life insurer in the nation.
The company's growth was marked by significant real estate investments and corporate diversification. It financed the construction of the Empire State Building in 1929 and Rockefeller Center in 1931. During World War II, it became the largest private contributor to the Allied cause by investing over 51 percent of its assets in war bonds. By 1930, one in five Americans and Canadians held a MetLife policy, cementing its status as a household name.
The turn of the millennium brought a major structural shift. In 2000, MetLife demutualized, launching an initial public offering valued at $6.5 billion—the largest in U.S. financial history at the time. This transition allowed for greater expansion but also invited intense regulatory scrutiny. Following the 2008 financial crisis, the company faced challenges regarding its systemic importance. In 2014, it became the first nonbank company to legally challenge its designation as 'systemically important' by federal regulators, a status that would have subjected it to stricter oversight from the Federal Reserve.
MetLife's history is also punctuated by legal and operational hurdles. The company faced litigation regarding its demutualization process, resulting in a $50 million settlement in 2009. Additionally, it has navigated various fines and settlements, including a $123.5 million payment in 2015 to resolve allegations concerning government-insured mortgage underwriting. Despite these pressures, the firm remains a global provider, serving approximately 90 million customers across more than 60 countries.
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Sources
- Summary by Intellect · source: MetLife
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