MetLife Faces Asbestos Claims

MetLife Inc., the biggest U.S. life insurer, may be facing more than $625 million in costs related to lawsuits over its alleged failure to disclose research from the 1920s to 1950s on the health risks of asbestos, said Colin Devine, a Salomon Smith Barney Inc. analyst.

The New York-based company said in its third-quarter filing with the Securities and Exchange Commission it is the defendant in numerous lawsuits seeking compensatory and punitive damages.

Devine said MetLife received about 100,000 claims over the last two years. If even a quarter of those claims are settled for as little as $25,000 a claim, that would mean a total cost of $625million, he said.

John Calagna, a MetLife spokesman, said MetLife has set aside reserves and bought reinsurance to protect against potential losses.

Shares of MetLife rose 2 cents to $29.57 on the New York Stock Exchange.