Agenda 06/28/2016 Item #16E1 6/28/2016 16.E.1.
EXECUTIVE SUMMARY
Recommendation to approve the liquidation of the County's ownership of common stock in MetLife
Insurance Company resulting from the demutualization of the carrier and to transfer the proceeds of
the sale to Fund 517,Group Health and Life in the estimated amount of$220,720.50.
OBJECTIVE: To liquidate the County's ownership of common stock in MetLife Insurance Company and
transfer the proceeds into Fund 517,Group Health and Life.
CONSIDERATIONS: The Board of Commissioners offers group life, accidental death, dependent life and
voluntary life insurance to its eligible covered members. In the late 1990's the Board purchased this coverage
through MetLife.At that time,MetLife was a mutual insurance company.
A mutual insurance company is an insurance company owned entirely by its policyholders.Any profits earned
by a mutual insurance company are rebated to policyholders in the form of dividend distributions or reduced
future premiums. In contrast, a stock insurance company is owned by investors who have purchased company
stock. Any profits generated by a stock insurance company are distributed to the investors without necessarily
benefiting the policyholders. On April 7, 2000, MetLife completed the conversion from a mutual insurance
company to a stock insurance company.As a result of this conversion,Collier County became a stockholder in
MetLife,receiving 4,851 shares of MetLife,Inc.common stock.
On May 4,2016,the County Manager received a letter dated April 28,2016 informing the County of the steps
needed to receive the proceeds of this demutualization compensation. On May 16, 2016, Risk Management
staff, the Clerk's Finance staff and staff from Willis Towers Watson, the County's benefits brokerage and
actuarial consulting firm held a phone conference with MetLife staff to discuss the matter and the technical
tTh
process necessary to affect the receipt of funds. Staff further requested review of the matter by the County
Attorney's Office for legality.
Based upon these discussions, staff is recommending the liquidation of the Board's ownership of common
stock in MetLife and that the proceeds be transferred into Fund 517, Group Health and Life to support the
program.
FISCAL IMPACT: As of April 28, 2016 the value of common stock owned by the Board totaled
$220,720.50. The amount of funds which will be received by the Board as a result of this liquidation will
depend upon share price at the time of sale.
GROWTH MANAGEMENT IMPACT:There is no growth management impact associated with this item.
LEGAL CONSIDERATIONS: This item is approved as to form and legality, and requires majority vote for
Board approval.—SRT
RECOMMENDATION: That the Board approves the liquidation of the Board's ownership of common stock
in MetLife Insurance Company, authorizing staff to execute the process necessary to proceed with the
liquidation and transfer the proceeds into Fund 517,Group Health and Life.
PREPARED BY: Jeffrey A.Walker,CPCU,ARM,Division Director,Risk Management Division
Attachments: April 28,2016 Letter from MetLife
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6/28/2016 16.E.1.
COLLIER COUNTY
Board of County Commissioners
Item Number: 16.16.E.16.E.1.
Item Summary: Recommendation to approve the liquidation of the County's ownership
of common stock in MetLife resulting from the demutualization of the carrier and to transfer
the proceeds of the sale to Fund 517, Group Health and Life in the estimated amount of
$220,720.50.
Meeting Date: 6/28/2016
Prepared By
Name: WalkerJeff
Title: Division Director-Risk Management,Risk Management
6/2/2016 4:28:34 PM
Submitted by
Title: Division Director-Risk Management,Risk Management
Name: WalkerJeff
6/2/2016 4:28:35 PM
Approved By
Name: TeachScott
Title:Deputy County Attorney, County Attorney
Date: 6/2/2016 4:44:18 PM
Name: PriceLen
Title:Department Head-Administrative Svc,Administrative Services Department
Date: 6/14/2016 2:35:15 PM
Name: WellsLaura
Title:Management/Budget Analyst, Senior,Office of Management&Budget
Date: 6/15/2016 11:31:33 AM
Name: KlatzkowJeff
Title: County Attorney,
Date: 6/16/2016 9:28:46 AM
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6/28/2016 16.E1.
Name: CasalanguidaNick
Title: Deputy County Manager, County Managers Office
Date: 6/16/2016 11:53:37 AM
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6/28/2016 16.E.1 .
Office ?." C6ae jatt$C .:
muMetLife
Tony Stevens
A ctiop< One Financial Center
April 28, 2016 20th Floor
Boston,MA 02111
Leo Ochs Jr
Admin Bldg 4th Floor, 3301 Tamiami Trl E
Naples, FL 341123969
RE: Investor ID#806729855462
Why we're contacting you
On April 7, 2000, MetLife successfully completed the conversion from a mutual life insurance company to a
stock life insurance company through a process called demutualization. As part of the demutualization
process, your organization, as an eligible group insurance policyholder, received compensation in exchange
for your extinguished mutual company membership interests in the form of shares of the common stock of
MetLife, Inc. Since then your organization's shares of stock have been held as Trust Interests in the MetLife
Policyholder Trust.
What you need to know
To date, your organization still owns 4,851 shares of MetLife, Inc. common stock valued at $220,720.50, the
closing price on April 28, 2016.
What you need to do
There are several options related to your receipt of the MetLife demutualization compensation that depend
on the nature of your organization's benefit plans or programs at the time of demutualization, as well as
various legal requirements and fiduciary standards.
To help determine the best option for your organization, please contact me at (617) 574-3961 or
ajstevens@metlife.com, and I would be happy to walk you through various options and considerations.
Sincerely,
—1/1t
r�
Tony Stevens
Post Retirement Benefits Market Director
(617) 574-3961
ajstevens@metlife.com
20
EARS
POST RETIREMEEIT
BENEFITS
L1215448812[exp 1217][All States][DC]
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