Cuts in Metropolitan Life Insurance Co.’s operations are expected to be finished by the end of the year, but it is not certain yet how many jobs will be lost at the insurance giant’s Warwick location.
MetLife, the second largest life insurer in the country, is planning to reduce costs by as much as 10 percent, but those cuts are “not necessarily (from) personnel,” said Joe Madden, director of external relations at the company’s Warwick office.
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The Warwick office, which is regional headquarters for life insurance sales and corporate headquarters for MetLife Auto & Home, now has about 2,300 workers, according to Madden. Company executives expect MetLife, which is among Rhode Island’s largest employers, will still have more than 2,000 workers here after the cuts are completed, he said.
MetLife has more than 40,000 employees overall and company statements project that about 2,000 jobs will be cut before the end of 1998, according to a company announcement earlier this month.
The goal is to decrease expenses “to make us more competitive” in the increasingly competitive financial services industry, by reducing expenses, Madden said.
The industry has become much more competitive with changes in federal laws over the past few years making it easier for insurance companies, banks and brokerage firms to offer a wider variety of products and services.
“We will continue to maintain a major presence and continue to be one of the state’s largest employers,” Madden said.
As part of the plan to reduce its workforce, MetLife is offering “enhanced severance packages” to some employees based on the number of years they’ve worked for the company and some job search assistance, he added. “The out-placement services are to help them find or secure employment opportunities in the area, which is fortunately experiencing vibrant employment growth.”
MetLife is among the ranks of large, share-holder owned insurance companies that are now considering going public. Nothing is definite yet, ,” Madden said.
In other insurance industry news, still no word on which state will host the headquarters for Factory Mutual Insurance Co. — that is if the merger between three insurance companies, including Allendale Mutual Insurance Co. of Johnston is completed.
A consultant is looking at the properties owned by Allendale and the two other companies involved — Arkwright Mutual Insurance Co. in Waltham, Mass., and Protection Mutual Insurance Co. in Park Ridge, Ill. — to determine how best to use the combined real estate, according to administrators at Allendale Insurance. The consultant also will offer guidance on where the headquarters for the company, which will be called Factory Mutual Insurance, should be located.
The planned merger was announced in early August.
Shivan S. Subramaniam, who is chief executive officer of Allendale insurance, has been named to head the merged company.
