Metlife Inc

Life insurance giant MetLife Inc. will shell out nearly $500 million to settle a multi-state probe into its alleged failure to pay death benefits to beneficiaries. The company said it will pay out about $438 million over the next 17 years, with $188 million going out to beneficiaries this year. Insurance regulators from dozens of states have accused the company of delaying or withholding life insurance payments to many of its policyholders. About $40 million of that will likely end up in California, said State Controller John Chiang . The funds will either be sent on to beneficiaries of deceased MetLife policyholders or stored in state coffers as unclaimed property.

Citigroup Inc. reported a 35% rise in third-quarter profit on the sale of an insurance unit, and said higher investment banking revenue offset weakness in consumer banking and the effect of Hurricane Katrina. Net income for the world's largest bank rose to $7.14 billion, or $1.38 a share, from $5.31 billion, or $1.02, a year earlier. The latest results included a $2.12-billion gain from the sale of Travelers Life & Annuity to MetLife Inc. and $222 million of costs from Katrina.

More U.S. insurers will be disciplined for allowing market timing in mutual funds linked to variable annuities, a Securities and Exchange official said Thursday. Trading improprieties in the insurance industry were uncovered during the SEC's investigation of market timing in the mutual fund industry. Conseco Inc. and Inviva Inc.

Top executives of 17 major U.S. financial institutions expressed concerns about Congress adopting far-reaching proposals to regulate foreign purchases of U.S. assets, including requiring lengthy reviews of such deals, according to a letter made public Wednesday. The leaders of JPMorgan Chase & Co., Citigroup , MetLife Inc., Goldman Sachs Group Inc. and others wrote Senate Banking Committee Chairman Richard C. Shelby (R-Ala.

Citigroup Inc.'s president and chief operating officer, Robert B. Willumstad, has decided to step down from those positions to seek the top job at a public company, the financial services giant announced Thursday. Citigroup said Willumstad, 59, intended to work with management to assure an orderly transition of his responsibilities between now and September. Willumstad has been president since 2002.

American International Group Inc. posted its first profit in three quarters Thursday on gains from divestitures. Fourth-quarter net income of $11.2 billion, or $16.60 a share, compares with a loss of $8.87 billion, or $65.51, a year earlier, the New York-based insurer said in a regulatory filing. Chief Executive Robert Benmosche raised almost $37 billion last year selling American Life Insurance Co. to MetLife Inc. and divesting a majority stake in AIA Group Ltd. in a public offering.

Here are some of the key economic and business events scheduled for the week. Today: * Senate Governmental Affairs panel holds hearing on the mutual fund industry. * Commerce Department reports on construction spending for September. * Institute of Supply Management releases its manufacturing index report for October. * Automakers report on vehicle sales for October. * Charter Communications Inc., Kellogg Co. and MetLife Inc. release third-quarter earnings. * Tuesday: * D.C.

The California Department of Insurance and regulators from six other states announced Thursday that they signed a settlement with Prudential Insurance Co. of America that requires the insurer to use enhanced research techniques to find beneficiaries of life insurance policies. The agreement, said California Insurance Commissioner Dave Jones, should "ensure that when life insurance policyholders die, their beneficiaries receive the benefits owed. " Prudential is the first of more than half a dozen targeted insurance companies to settle with California and the other states, which include Florida, Illinois, New Hampshire, North Dakota, Pennsylvania and New Jersey.

Hallmark Cards Inc. settled a patent suit by Tumbleweed Communications Corp. that accused the largest greeting card company of infringing patents for sending greeting cards over the Web. Hallmark agreed to license Tumbleweed's technology for Hallmark.com products. The patents include a system for sending an e-mail delivery notification to the recipient. Financial terms weren't released.

American Express Co. said Tuesday that it would spin off its financial advisory business so it could focus on the faster-growing charge card, payments processing and travel businesses. The announcement by the New York-based company came a day after Citigroup Inc. said it would sell its Travelers life insurance business to MetLife Inc. Both moves suggest that the "supermarket" approach to financial services that was so popular in the 1980s and 1990s may be proving cumbersome.