Le Lézard
Classified in: Business, Covid-19 virus
Subjects: EARNINGS, Conference Call, Webcast

MetLife Announces Third Quarter 2021 Results


MetLife, Inc. (NYSE: MET) today announced its third quarter 2021 results.

Third Quarter Results Summary

Commenting on the company's results, MetLife President and CEO Michel Khalaf said: "MetLife delivered another very strong quarter. Outstanding variable investment income more than offset elevated COVID claims, underlying PFO growth was strong, and expense discipline held firm. Having the right strategy, a superior asset mix, and consistent execution continues to generate exceptional earnings."

Third Quarter 2021 Summary

($ in millions, except per share data)

 

Three months ended

September 30,

 

 

2021

 

2020

 

Change

Premiums, fees and other revenues

 

$

11,639

 

 

$

11,887

 

 

(2

)%

Net investment income

 

 

5,568

 

 

 

4,729

 

 

18

%

Net investment gains (losses)

 

 

(84

)

 

 

(20

)

 

 

Net derivative gains (losses)

 

 

(218

)

 

 

(581

)

 

 

Total revenues

 

$

16,905

 

 

$

16,015

 

 

 

 

 

 

 

 

 

 

Adjusted premiums, fees and other revenues

 

$

11,419

 

 

$

11,820

 

 

(3

)%

Adjusted premiums, fees and other revenues, excluding pension risk transfers (PRT)

 

$

11,443

 

 

$

11,333

 

 

1

%

 

 

 

 

 

 

 

Net income (loss)

 

$

1,521

 

 

$

633

 

 

140

%

Net income (loss) per share

 

$

1.77

 

 

$

0.69

 

 

157

%

 

 

 

 

 

 

 

Adjusted earnings

 

$

2,062

 

 

$

1,578

 

 

31

%

Adjusted earnings per share

 

$

2.39

 

 

$

1.73

 

 

38

%

Adjusted earnings, excluding total notable items

 

$

2,202

 

 

$

1,781

 

 

24

%

Adjusted earnings, excluding total notable items per share

 

$

2.56

 

 

$

1.95

 

 

31

%

 

 

 

 

 

 

 

Book value per share

 

$

77.24

 

 

$

76.20

 

 

1

%

Book value per share, excluding AOCI other than FCTA

 

$

57.29

 

 

$

53.10

 

 

8

%

 

 

 

 

 

 

 

Expense ratio

 

 

19.2

%

 

 

18.4

%

 

 

Direct expense ratio, excluding total notable items related to direct expenses and PRT

 

 

11.1

%

 

 

11.4

%

 

 

Adjusted expense ratio, excluding total notable items related to adjusted other expenses and PRT

 

 

18.7

%

 

 

18.8

%

 

 

 

 

 

 

 

 

 

ROE

 

 

9.3

%

 

 

3.6

%

 

 

Adjusted ROE, excluding AOCI other than FCTA

 

 

17.0

%

 

 

13.2

%

 

 

Adjusted ROE, excluding total notable items (excludes AOCI other than FCTA)

 

 

18.2

%

 

 

14.9

%

 

 

Information regarding the non-GAAP and other financial measures included in this news release and reconciliation of the non-GAAP financial measures to GAAP measures are in "Non-GAAP and Other Financial Disclosures" below and in the tables that accompany this news release.

Supplemental slides for the third quarter of 2021, titled "3Q21 Supplemental Slides," are available on the MetLife Investor Relations website at https://investor.metlife.com and in the Form 8-K furnished by MetLife to the U.S. Securities and Exchange Commission in connection with this earnings news release.

Total Company Discussion

MetLife reported third quarter 2021 premiums, fees and other revenues of $11.6 billion, down 2 percent from the third quarter of 2020. Adjusted premiums, fees and other revenues were $11.4 billion, down 3 percent on both a reported and constant currency basis from the prior-year period.

Net investment income was $5.6 billion, up 18 percent from the third quarter of 2020. Adjusted net investment income was $5.7 billion, up 21 percent from the prior-year period. These increases were largely driven by higher variable investment income primarily due to strong private equity returns.

Net derivative losses amounted to $218 million, or $172 million after tax during the quarter, driven by foreign currency exchange rate changes.

Net income was $1.5 billion, compared to net income of $633 million in the third quarter of 2020. On a per share basis, net income was $1.77, compared to net income of $0.69 in the prior-year period.

MetLife reported adjusted earnings of $2.1 billion, up 31 percent, and up 30 percent on a constant currency basis, from the third quarter of 2020. On a per share basis, adjusted earnings were $2.39, up 38 percent from the prior-year period.

Annual Actuarial Assumption Review

In the third quarter of 2021, MetLife performed the company's annual global actuarial assumption review. The actuarial assumption review during the quarter reduced net income by $216 million, of which $140 million impacted adjusted earnings.

Adjusted Earnings by Segment Summary*

 

Three months ended

September 30, 2021

Segment

Change from

prior-year period

Change from

prior-year period

(on a constant currency basis)

U.S.

(1

)%

 

Asia

22

%

22

%

Latin America

(26

)%

(29

)%

Europe, the Middle East and Africa (EMEA)

81

%

81

%

MetLife Holdings

140

%

 

*The percentages in this table are on a reported and constant currency basis, and do not exclude notable items. For the three months ended September 30, 2021, U.S. results exclude Property & Casualty as MetLife completed the sale of the business. U.S. results for the three months ended September 30, 2020, include Property & Casualty.

Business Discussions

All comparisons of the results for the third quarter of 2021 in the business discussions that follow are with the third quarter of 2020, unless otherwise noted. The third quarter of 2021 notable items table follows the Business Discussions section of this release.

U.S.*

($ in millions)

Three months ended

September 30, 2021

Three months ended

September 30, 2020

Change

Adjusted earnings

$895

$900

(1)%

Adjusted premiums, fees and other revenues

$6,408

$6,833

(6)%

Adjusted premiums, fees and other revenues, excluding PRT

$6,432

$6,346

1%

Notable item(s)

$0

$0

 

* For the three months ended September 30, 2021, U.S. results exclude Property & Casualty as MetLife completed the sale of the business. U.S. results for the three months ended September 30, 2020, include Property & Casualty.

Group Benefits

($ in millions)

Three months ended

September 30, 2021

Three months ended

September 30, 2020

Change

Adjusted earnings

$111

$392

(72)%

Adjusted premiums, fees and other revenues

$5,517

$4,901

13%

Notable item(s)

$0

$0

 

Retirement and Income Solutions

($ in millions)

Three months ended

September 30, 2021

Three months ended

September 30, 2020

Change

Adjusted earnings

$784

$490

60%

Adjusted premiums, fees and other revenues

$891

$1,024

(13)%

Adjusted premiums, fees and other revenues, excluding PRT

$915

$537

70%

Notable item(s)

$0

$0

 

ASIA

($ in millions)

At or for the three

months ended

September 30, 2021

At or for the three

months ended

September 30, 2020

Change

Adjusted earnings

$569

$465

22%

Adjusted earnings (constant currency)

$569

$466

22%

Adjusted premiums, fees and other revenues

$2,088

$2,265

(8)%

Notable item(s)

$(79)

$(28)

 

Asia general account assets under management (at amortized cost)

$130,777

$125,171

4%

LATIN AMERICA

($ in millions)

Three months ended

September 30, 2021

Three months ended

September 30, 2020

Change

Adjusted earnings

$29

$39

(26)%

Adjusted earnings (constant currency)

$29

$41

(29)%

Adjusted premiums, fees and other revenues

$988

$761

30%

Notable item(s)

$(2)

$(9)

 

EMEA*

($ in millions)

Three months ended

September 30, 2021

Three months ended

September 30, 2020

Change

Adjusted earnings

$94

$52

81%

Adjusted earnings (constant currency)

$94

$52

81%

Adjusted premiums, fees and other revenues

$670

$680

(1)%

Notable item(s)

$(6)

$(31)

 

* For the three months ended September 30, 2021, EMEA results exclude MetLife Russia, which has been sold, and Poland and Greece, which are reported as divested businesses. These businesses are included in the prior-year period.

METLIFE HOLDINGS

($ in millions)

Three months ended

September 30, 2021

Three months ended

September 30, 2020

Change

Adjusted earnings

$606

$253

140%

Adjusted premiums, fees and other revenues

$1,141

$1,206

(5)%

Notable item(s)

$(53)

$(135)

 

CORPORATE & OTHER

($ in millions)

Three months ended

September 30, 2021

Three months ended

September 30, 2020

Change

Adjusted earnings

$(131)

$(131)

 

Notable item(s)

$0

$0

 

INVESTMENTS

($ in millions)

Three months ended

September 30, 2021

Three months ended

September 30, 2020

Change

Adjusted net investment income

$5,668

$4,688

21%

THIRD QUARTER 2021 NOTABLE ITEMS

($ in millions)

Adjusted Earnings

Three months ended September 30, 2021

Notable Items

U.S.

Asia

Latin

America

EMEA

MetLife

Holdings

Corporate

&

Other

Total

Group

Benefits

Retirement

and Income

Solutions

Actuarial assumption review and other insurance adjustments

$0

$0

$(79)

$(2)

$(6)

$(53)

$0

$(140)

Total notable items

$0

$0

$(79)

$(2)

$(6)

$(53)

$0

$(140)

About MetLife

MetLife, Inc. (NYSE: MET), through its subsidiaries and affiliates (MetLife), is one of the world's leading financial services companies, providing insurance, annuities, employee benefits and asset management to help its individual and institutional customers navigate their changing world. Founded in 1868, MetLife has operations in more than 40 markets globally and holds leading positions in the United States, Japan, Latin America, Asia, Europe and the Middle East. For more information, visit www.metlife.com.

Conference Call

MetLife will hold its third quarter 2021 earnings conference call and audio webcast on Thursday, November 4, 2021, from 9-10 a.m. (ET). The conference call will be available live via telephone and the internet. To listen via telephone, dial 877-692-8955 (U.S.) or 234-720-6979 (outside the U.S.). The participant access code is 2510803. To listen to the conference call via the internet, click the link to the webcast on the MetLife Investor Relations web page (https://investor.metlife.com). Those who want to listen to the call via telephone or the internet should dial in or go to the website at least 15 minutes prior to the call to register, and/or download and install any necessary audio software.

The conference call will be available for replay via telephone and the internet beginning at 11 a.m. (ET) on Thursday, November 4, 2021, until Thursday, November 11, 2021, at 11:59 p.m. (ET). To listen to a replay of the conference call via telephone, dial 866-207-1041 (U.S.) or 402-970-0847 (outside the U.S.). The access code for the replay is 7756549. To access the replay of the conference call over the internet, visit the above-mentioned website.

Non-GAAP and Other Financial Disclosures

Any references in this news release (except in this section and the tables that accompany this release) to:

 

should be read as, respectively:

 

 

 

 

(i)

net income (loss);

 

(i)

net income (loss) available to MetLife, Inc.'s common shareholders;

(ii)

net income (loss) per share;

 

(ii)

net income (loss) available to MetLife, Inc.'s common shareholders per diluted common share;

(iii)

adjusted earnings;

 

(iii)

adjusted earnings available to common shareholders;

(iv)

adjusted earnings per share;

 

(iv)

adjusted earnings available to common shareholders per diluted common share;

(v)

book value per share;

 

(v)

book value per common share;

(vi)

book value per share, excluding AOCI other than FCTA;

 

(vi)

book value per common share, excluding AOCI other than FCTA;

(vii)

book value per share-tangible common stockholders' equity;

 

(vii)

book value per common share-tangible common stockholders' equity;

(viii)

return on equity;

 

(viii)

return on MetLife, Inc.'s common stockholders' equity;

(ix)

adjusted return on equity, excluding AOCI other than FCTA; and

 

(ix)

adjusted return on MetLife, Inc.'s common stockholders' equity, excluding AOCI other than FCTA; and

(x)

adjusted tangible return on equity.

 

(x)

adjusted return on MetLife, Inc.'s tangible common stockholders' equity.

In this news release, MetLife presents certain measures of its performance on a consolidated and segment basis that are not calculated in accordance with accounting principles generally accepted in the United States of America (GAAP). MetLife believes that these non-GAAP financial measures enhance the understanding for MetLife and its investors of MetLife's performance by highlighting the results of operations and the underlying profitability drivers of the business. Segment-specific financial measures are calculated using only the portion of consolidated results attributable to that specific segment.

The following non-GAAP financial measures should not be viewed as substitutes for the most directly comparable financial measures calculated in accordance with GAAP:

Non-GAAP financial measures:

 

Comparable GAAP financial measures:

 

 

 

 

(i)

total adjusted revenues;

 

(i)

total revenues;

(ii)

total adjusted expenses;

 

(ii)

total expenses;

(iii)

adjusted premiums, fees and other revenues;

 

(iii)

premiums, fees and other revenues;

(iv)

adjusted premiums, fees and other revenues, excluding PRT;

 

(iv)

premiums, fees and other revenues;

(v)

adjusted net investment income;

 

(v)

net investment income;

(vi)

adjusted capitalization of deferred policy acquisition costs (DAC);

 

(vi)

capitalization of DAC;

(vii)

adjusted earnings available to common shareholders;

 

(vii)

net income (loss) available to MetLife, Inc.'s common shareholders;

(viii)

adjusted earnings available to common shareholders, excluding total notable items;

 

(viii)

net income (loss) available to MetLife, Inc.'s common shareholders;

(ix)

adjusted earnings available to common shareholders per diluted common share;

 

(ix)

net income (loss) available to MetLife, Inc.'s common shareholders per diluted common share;

(x)

adjusted earnings available to common shareholders, excluding total notable items, per diluted common share;

 

(x)

net income (loss) available to MetLife, Inc.'s common shareholders per diluted common share;

(xi)

adjusted return on equity;

 

(xi)

return on equity;

(xii)

adjusted return on equity, excluding AOCI other than FCTA;

 

(xii)

return on equity;

(xiii)

adjusted return on equity, excluding total notable items (excludes AOCI other than FCTA);

 

(xiii)

return on equity;

(xiv)

adjusted tangible return on equity;

 

(xiv)

return on equity;

(xv)

investment portfolio gains (losses);

 

(xv)

net investment gains (losses);

(xvi)

derivative gains (losses);

 

(xvi)

net derivative gains (losses);

(xvii)

total MetLife, Inc.'s tangible common stockholders' equity;

 

(xvii)

total MetLife, Inc.'s stockholders' equity;

(xviii)

total MetLife, Inc.'s tangible common stockholders' equity, excluding total notable items;

 

(xviii)

total MetLife, Inc.'s stockholders' equity;

(xix)

total MetLife, Inc.'s common stockholders' equity, excluding AOCI other than FCTA;

 

(xix)

total MetLife, Inc.'s stockholders' equity;

(xx)

total MetLife, Inc.'s common stockholders' equity, excluding total notable items (excludes AOCI other than FCTA);

 

(xx)

total MetLife, Inc.'s stockholders' equity;

(xxi)

book value per common share, excluding AOCI other than FCTA;

 

(xxi)

book value per common share;

(xxii)

book value per common share - tangible common stockholders' equity;

 

(xxii)

book value per common share;

(xxiii)

free cash flow of all holding companies;

 

(xxiii)

MetLife, Inc. (parent company only) net cash provided by (used in) operating activities;

(xxiv)

adjusted other expenses;

 

(xxiv)

other expenses;

(xxv)

adjusted other expenses, net of adjusted capitalization of DAC;

 

(xxv)

other expenses, net of capitalization of DAC;

 

(xxvi)

adjusted other expenses, net of adjusted capitalization of DAC, excluding total notable items related to adjusted other expenses;

 

(xxvi)

other expenses, net of capitalization of DAC;

(xxvii)

adjusted expense ratio;

 

(xxvii)

expense ratio;

(xxviii)

adjusted expense ratio, excluding total notable items related to adjusted other expenses and PRT;

 

(xxviii)

expense ratio;

 

(xxix)

direct expenses;

 

(xxix)

other expenses;

(xxx)

direct expenses, excluding total notable items related to direct expenses;

 

(xxx)

other expenses;

 

(xxxi)

direct expense ratio; and

 

(xxxi)

expense ratio; and

(xxxii)

direct expense ratio, excluding total notable items related to direct expenses and PRT.

 

(xxxii)

expense ratio.

Any of these financial measures shown on a constant currency basis reflect the impact of changes in foreign currency exchange rates and are calculated using the average foreign currency exchange rates for the most recent period and applied to the comparable prior period.

Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in this earnings news release and in this period's quarterly financial supplement, which is available at www.metlife.com.

MetLife's definitions of non-GAAP and other financial measures discussed in this news release may differ from those used by other companies:

Adjusted earnings and related measures

These measures are used by management to evaluate performance and allocate resources. Consistent with GAAP guidance for segment reporting, adjusted earnings and components of, or other financial measures based on, adjusted earnings are also MetLife's GAAP measures of segment performance. Adjusted earnings and other financial measures based on adjusted earnings are also the measures by which MetLife senior management's and many other employees' performance is evaluated for the purposes of determining their compensation under applicable compensation plans. Adjusted earnings and other financial measures based on adjusted earnings allow analysis of MetLife's performance relative to its business plan and facilitate comparisons to industry results.

Adjusted earnings is defined as adjusted revenues less adjusted expenses, net of income tax. Adjusted loss is defined as negative adjusted earnings. Adjusted earnings available to common shareholders is defined as adjusted earnings less preferred stock dividends.

Adjusted revenues and adjusted expenses

These financial measures, along with the related adjusted premiums, fees and other revenues, focus on our primary businesses principally by excluding the impact of market volatility, which could distort trends, and revenues and costs related to non-core products and certain entities required to be consolidated under GAAP. Also, these measures exclude results of discontinued operations under GAAP and other businesses that have been or will be sold or exited by MetLife but do not meet the discontinued operations criteria under GAAP and are referred to as divested businesses. Divested businesses also include the net impact of transactions with exited businesses that have been eliminated in consolidation under GAAP and costs relating to businesses that have been or will be sold or exited by MetLife that do not meet the criteria to be included in results of discontinued operations under GAAP.

Adjusted revenues also excludes net investment gains (losses) (NIGL) and net derivative gains (losses) (NDGL). Adjusted expenses also excludes goodwill impairments.

The following additional adjustments are made to revenues, in the line items indicated, in calculating adjusted revenues:

The following additional adjustments are made to expenses, in the line items indicated, in calculating adjusted expenses:

Adjusted earnings also excludes the recognition of certain contingent assets and liabilities that could not be recognized at acquisition or adjusted for during the measurement period under GAAP business combination accounting guidance.

The tax impact of the adjustments mentioned above are calculated net of the U.S. or foreign statutory tax rate, which could differ from MetLife's effective tax rate. Additionally, the provision for income tax (expense) benefit also includes the impact related to the timing of certain tax credits, as well as certain tax reforms.

In addition, adjusted earnings available to common shareholders excludes the impact of preferred stock redemption premium, which is reported as a reduction to net income (loss) available to MetLife, Inc.'s common shareholders.

Investment portfolio gains (losses) and derivative gains (losses)

These are measures of investment and hedging activity. Investment portfolio gains (losses) principally excludes amounts that are reported within net investment gains (losses) but do not relate to the performance of the investment portfolio, such as gains (losses) on sales and divestitures of businesses and goodwill impairment, as well as investment portfolio gains (losses) of divested businesses. Derivative gains (losses) principally excludes earned income on derivatives and amortization of premium on derivatives, where such derivatives are either hedges of investments or are used to replicate certain investments, and where such derivatives do not qualify for hedge accounting. This earned income and amortization of premium is reported within adjusted earnings and not within derivative gains (losses).

Return on equity, allocated equity, tangible equity and related measures

The above measures represent a level of equity consistent with the view that, in the ordinary course of business, MetLife does not plan to sell most investments for the sole purpose of realizing gains or losses.

The above measures are, when considered in conjunction with regulatory capital ratios, a measure of capital adequacy.

Expense ratio, direct expense ratio, adjusted expense ratio and related measures

Asia General account (GA) assets under management (GA AUM) and related measures

Asia GA AUM is used by MetLife to describe assets in its Asia GA investment portfolio which are actively managed and stated at estimated fair value. Asia GA AUM is comprised of Asia GA total investments and cash and cash equivalents, excluding policy loans, contractholder-directed equity securities, fair value option securities and certain other invested assets, as substantially all of these assets are not actively managed in MetLife's Asia GA investment portfolio. Mortgage loans (including commercial, agricultural and residential) and real estate and real estate joint ventures included in Asia GA AUM (at net asset value, net of deduction for encumbering debt) have been adjusted from carrying value to estimated fair value. At the segment level, intersegment balances (intercompany activity, primarily related to investments in subsidiaries, that eliminate at the MetLife consolidated level) are excluded from Asia GA AUM.

Asia GA AUM (at amortized cost) excludes the following adjustments: (i) unrealized gain (loss) on investments carried at estimated fair value and (ii) adjustments from carrying value to estimated fair value on mortgage loans (including commercial, agricultural and residential) and real estate and real estate joint ventures. Asia GA AUM (at amortized cost) is presented net of related allowance for credit loss.

Statistical sales information:

Sales statistics do not correspond to revenues under GAAP, but are used as relevant measures of business activity.

The following additional information is relevant to an understanding of MetLife's performance results and outlook:

Forward-Looking Statements

This news release may contain or incorporate by reference information that includes or is based upon forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements give expectations or forecasts of future events and do not relate strictly to historical or current facts. They use words and terms such as "anticipate," "assume," "believe," "continue," "could," "estimate," "expect," "if," "intend," "likely," "may," "plan," "potential," "project," "should," "will," "would," and other words and terms of similar meaning or that are otherwise tied to future periods or future performance, in each case in all derivative forms. They include statements relating to future actions, prospective services or products, future performance or results of current and anticipated services or products, future sales efforts, future expenses, the outcome of contingencies such as legal proceedings, and future trends in operations and financial results.

Many factors determine the results of MetLife, Inc., its subsidiaries and affiliates, and they involve unpredictable risks and uncertainties. Our forward-looking statements depend on our assumptions, our expectations, and our understanding of the economic environment, but they may be inaccurate and may change. MetLife, Inc. does not guarantee any future performance. Our results could differ materially from those MetLife, Inc. expresses or implies in forward-looking statements. The risks, uncertainties and other factors identified in MetLife, Inc.'s filings with the U.S. Securities and Exchange Commission, and others, may cause such differences. These factors include:

(1)

economic condition difficulties, including risks relating to public health, interest rates, credit spreads, equity, real estate, obligors and counterparties, currency exchange rates, derivatives, and terrorism and security;

(2)

global capital and credit market adversity;

(3)

credit facility inaccessibility;

(4)

financial strength or credit ratings downgrades;

(5)

unavailability, unaffordability, or inadequate reinsurance;

(6)

statutory life insurance reserve financing costs or limited market capacity;

(7)

legal, regulatory, and supervisory and enforcement policy changes;

(8)

changes in tax rates, tax laws or interpretations;

(9)

litigation and regulatory investigations;

(10)

London Interbank Offered Rate termination and transition to alternative reference rates;

(11)

unsuccessful efforts to meet all environmental, social, and governance standards or to enhance our sustainability;

(12)

MetLife, Inc.'s inability to pay dividends and repurchase common stock;

(13)

MetLife, Inc.'s subsidiaries' inability to pay it dividends;

(14)

investment defaults, downgrades, or volatility;

(15)

investment sales or lending difficulties;

(16)

collateral or derivative-related payments;

(17)

investment valuations, allowances, or impairments changes;

(18)

claims or other results that differ from our estimates, assumptions, or models;

(19)

global political, legal, or operational risks;

(20)

business competition;

(21)

technological change;

(22)

catastrophes;

(23)

climate changes or responses to it;

(24)

deficiencies in our closed block;

(25)

goodwill or other asset impairment, or deferred income tax asset allowance;

(26)

acceleration of amortization of DAC, deferred sales inducements, VOBA, or VOCRA;

(27)

product guarantee volatility, costs, and counterparty risks;

(28)

risk management failures;

(29)

insufficient protection from operational risks;

(30)

confidential information protection or other cybersecurity or disaster recovery failures;

(31)

accounting standards changes;

(32)

excessive risk-taking;

(33)

marketing and distribution difficulties;

(34)

pension and other postretirement benefit assumption changes;

(35)

inability to protect our intellectual property or avoid infringement claims;

(36)

acquisition, integration, growth, disposition, or reorganization difficulties;

(37)

Brighthouse Financial, Inc. separation risks;

(38)

MetLife, Inc.'s Board of Directors influence over the outcome of stockholder votes through the voting provisions of the MetLife Policyholder Trust; and

(39)

legal- and corporate governance-related effects on business combinations.

MetLife, Inc. will not publicly correct or update any forward-looking statements if MetLife, Inc. believes it is not likely to achieve them or for any other reasons. Please consult any further disclosures MetLife, Inc. makes on related subjects in subsequent reports to the U.S. Securities and Exchange Commission.

MetLife, Inc.

GAAP Interim Condensed Consolidated Statements of Operations

(Unaudited)

(In millions)

 

 

 

 

 

 

 

For the Three Months Ended

 

 

September 30,

 

 

2021

 

2020

Revenues

 

 

 

 

Premiums

 

$

9,455

 

 

$

9,935

 

Universal life and investment-type product policy fees

 

 

1,521

 

 

 

1,497

 

Net investment income

 

 

5,568

 

 

 

4,729

 

Other revenues

 

 

663

 

 

 

455

 

Net investment gains (losses)

 

 

(84

)

 

 

(20

)

Net derivative gains (losses)

 

 

(218

)

 

 

(581

)

Total revenues

 

 

16,905

 

 

 

16,015

 

 

 

 

 

 

Expenses

 

 

 

 

Policyholder benefits and claims

 

 

10,103

 

 

 

10,000

 

Interest credited to policyholder account balances

 

 

1,287

 

 

 

1,416

 

Policyholder dividends

 

 

189

 

 

 

206

 

Capitalization of DAC

 

 

(635

)

 

 

(764

)

Amortization of DAC and VOBA

 

 

816

 

 

 

1,066

 

Amortization of negative VOBA

 

 

(6

)

 

 

(15

)

Interest expense on debt

 

 

240

 

 

 

229

 

Other expenses

 

 

2,869

 

 

 

2,954

 

Total expenses

 

 

14,863

 

 

 

15,092

 

 

 

 

 

 

Income (loss) before provision for income tax

 

 

2,042

 

 

 

923

 

Provision for income tax expense (benefit)

 

 

453

 

 

 

214

 

Net income (loss)

 

 

1,589

 

 

 

709

 

Less: Net income (loss) attributable to noncontrolling interests

 

 

5

 

 

 

3

 

Net income (loss) attributable to MetLife, Inc.

 

 

1,584

 

 

 

706

 

Less: Preferred stock dividends

 

 

63

 

 

 

59

 

Preferred stock redemption premium

 

 

?

 

 

 

14

 

Net income (loss) available to MetLife, Inc.'s common shareholders

 

$

1,521

 

 

$

633

 

 

 

 

 

 

See footnotes on last page.

 

 

 

 

MetLife, Inc.

(Unaudited)

(In millions, except per share data)

 

 

 

 

 

For the Three Months Ended

 

 

September 30,

 

 

2021

 

2020

Reconciliation to Adjusted Earnings Available to Common Shareholders

 

 

 

Earnings Per

Weighted

Average

Common Share

Diluted (1)

 

 

 

Earnings Per

Weighted

Average

Common Share

Diluted (1)

Net income (loss) available to MetLife, Inc.'s common shareholders

 

$

1,521

 

 

$

1.77

 

 

$

633

 

 

$

0.69

 

 

 

 

 

 

 

 

 

 

Adjustments from net income (loss) available to common shareholders to adjusted earnings available to common shareholders:

 

 

 

 

 

 

 

 

Less: Net investment gains (losses)

 

 

(84

)

 

 

(0.10

)

 

 

(20

)

 

 

(0.02

)

Net derivative gains (losses)

 

 

(218

)

 

 

(0.25

)

 

 

(581

)

 

 

(0.64

)

Premiums

 

 

57

 

 

 

0.07

 

 

 

?

 

 

 

?

 

Universal life and investment-type product policy fees

 

 

84

 

 

 

0.10

 

 

 

28

 

 

 

0.03

 

Net investment income

 

 

(100

)

 

 

(0.12

)

 

 

41

 

 

 

0.04

 

Other revenues

 

 

79

 

 

 

0.09

 

 

 

39

 

 

 

0.04

 

Policyholder benefits and claims and policyholder dividends

 

 

(181

)

 

 

(0.20

)

 

 

(237

)

 

 

(0.26

)

Interest credited to policyholder account balances

 

 

(120

)

 

 

(0.14

)

 

 

(267

)

 

 

(0.28

)

Capitalization of DAC

 

 

15

 

 

 

0.02

 

 

 

?

 

 

 

?

 

Amortization of DAC and VOBA

 

 

(58

)

 

 

(0.07

)

 

 

(71

)

 

 

(0.08

)

Amortization of negative VOBA

 

 

?

 

 

 

?

 

 

 

?

 

 

 

?

 

Interest expense on debt

 

 

?

 

 

 

?

 

 

 

?

 

 

 

?

 

Other expenses

 

 

(109

)

 

 

(0.12

)

 

 

(55

)

 

 

(0.06

)

Goodwill impairment

 

 

?

 

 

 

?

 

 

 

?

 

 

 

?

 

Provision for income tax (expense) benefit

 

 

99

 

 

 

0.11

 

 

 

195

 

 

 

0.21

 

Add: Net income (loss) attributable to noncontrolling interests

 

 

5

 

 

 

0.01

 

 

 

3

 

 

 

?

 

Preferred stock redemption premium

 

 

?

 

 

 

?

 

 

 

14

 

 

 

0.02

 

Adjusted earnings available to common shareholders

 

 

2,062

 

 

 

2.39

 

 

 

1,578

 

 

 

1.73

 

Less: Total notable items (2)

 

 

(140

)

 

 

(0.16

)

 

 

(203

)

 

 

(0.22

)

Adjusted earnings available to common shareholders, excluding total notable items (2)

 

$

2,202

 

 

$

2.56

 

 

$

1,781

 

 

$

1.95

 

 

 

 

 

 

 

 

 

 

Adjusted earnings available to common shareholders on a constant currency basis

 

$

2,062

 

 

$

2.39

 

 

$

1,581

 

 

$

1.73

 

Adjusted earnings available to common shareholders, excluding total notable items, on a constant currency basis (2)

 

$

2,202

 

 

$

2.56

 

 

$

1,784

 

 

$

1.95

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding - diluted

 

 

 

 

861.2

 

 

 

 

 

913.7

 

 

 

 

 

 

 

 

 

 

See footnotes on last page.

 

 

 

 

 

 

 

 

MetLife, Inc.

(Unaudited)

(In millions)

 

 

 

 

 

For the Three Months Ended

 

September 30,

 

2021

 

2020

Premiums, Fees and Other Revenues

 

 

 

Premiums, fees and other revenues

$

11,639

 

 

$

11,887

 

Less: Unearned revenue adjustments

 

46

 

 

 

2

 

GMIB fees

 

25

 

 

 

26

 

Settlement of foreign currency earnings hedges

 

?

 

 

 

?

 

TSA fees

 

73

 

 

 

39

 

Divested businesses

 

76

 

 

 

?

 

Adjusted premiums, fees and other revenues

$

11,419

 

 

$

11,820

 

 

 

 

 

Adjusted premiums, fees and other revenues, on a constant currency basis

$

11,419

 

 

$

11,828

 

Less: Pension risk transfers (PRT) (3)

 

(24

)

 

 

487

 

Adjusted premiums, fees and other revenues, excluding PRT, on a constant currency basis

$

11,443

 

 

$

11,341

 

 

 

 

 

Net Investment Income

 

 

 

Net investment income

$

5,568

 

 

$

4,729

 

Less: Investment hedge adjustments

 

(228

)

 

 

(229

)

Operating joint venture adjustments

 

(1

)

 

 

?

 

Unit-linked contract income

 

114

 

 

 

262

 

Securitization entities income

 

?

 

 

 

?

 

Certain partnership distributions

 

(1

)

 

 

?

 

Divested businesses

 

16

 

 

 

8

 

Adjusted net investment income

$

5,668

 

 

$

4,688

 

 

 

 

 

Revenues and Expenses

 

 

 

Total revenues

$

16,905

 

 

$

16,015

 

Less: Net investment gains (losses)

 

(84

)

 

 

(20

)

Less: Net derivative gains (losses)

 

(218

)

 

 

(581

)

Less: Adjustments related to net investment gains (losses) and net derivative gains (losses)

 

46

 

 

 

2

 

Less: Other adjustments to revenues:

 

 

 

GMIB fees

 

25

 

 

 

26

 

Investment hedge adjustments

 

(228

)

 

 

(229

)

Operating joint venture adjustments

 

(1

)

 

 

?

 

Unit-linked contract income

 

114

 

 

 

262

 

Securitization entities income

 

?

 

 

 

?

 

Certain partnership distributions

 

(1

)

 

 

?

 

Settlement of foreign currency earnings hedges

 

?

 

 

 

?

 

TSA fees

 

73

 

 

 

39

 

Divested businesses

 

92

 

 

 

8

 

Total adjusted revenues

$

17,087

 

 

$

16,508

 

 

 

 

 

Total expenses

$

14,863

 

 

$

15,092

 

Less: Adjustments related to net investment gains (losses) and net derivative gains (losses)

 

31

 

 

 

64

 

Less: Goodwill impairment

 

?

 

 

 

?

 

Less: Other adjustments to expenses:

 

 

 

PBC hedge adjustments

 

8

 

 

 

9

 

Inflation and pass-through adjustments

 

?

 

 

 

(37

)

GMIB costs and amortization of DAC and VOBA related to GMIB fees and GMIB costs

 

129

 

 

 

238

 

Market value adjustments and amortization of DAC, VOBA and negative VOBA related to market value adjustments

 

21

 

 

 

21

 

PAB hedge adjustments

 

(1

)

 

 

(1

)

Unit-linked contract costs

 

116

 

 

 

266

 

Securitization entities debt expense

 

?

 

 

 

?

 

Noncontrolling interest

 

(7

)

 

 

(4

)

Regulatory implementation costs

 

?

 

 

 

6

 

Acquisition, integration and other costs

 

2

 

 

 

7

 

TSA fees

 

73

 

 

 

39

 

Divested businesses

 

81

 

 

 

22

 

Total adjusted expenses

$

14,410

 

 

$

14,462

 

 

 

 

 

See footnotes on last page.

 

 

 

MetLife, Inc.

(Unaudited)

(In millions, except per share and ratio data)

 

 

 

 

 

For the Three Months Ended

 

 

September 30,

 

 

2021

 

2020

Expense Detail and Ratios

 

 

 

 

 

 

 

 

 

Reconciliation of Capitalization of DAC to Adjusted Capitalization of DAC

 

 

 

 

Capitalization of DAC

 

$

(635

)

 

$

(764

)

Less: Divested businesses

 

 

(15

)

 

 

?

 

Adjusted capitalization of DAC

 

$

(620

)

 

$

(764

)

 

 

 

 

 

Reconciliation of Other Expenses to Adjusted Other Expenses

 

 

 

 

Other expenses

 

$

2,869

 

 

$

2,954

 

Less: Noncontrolling interests

 

 

(7

)

 

 

(4

)

Less: Regulatory implementation costs

 

 

?

 

 

 

6

 

Less: Acquisition, integration and other costs

 

 

2

 

 

 

7

 

Less: TSA fees

 

 

73

 

 

 

39

 

Less: Divested businesses

 

 

41

 

 

 

7

 

Adjusted other expenses

 

$

2,760

 

 

$

2,899

 

 

 

 

 

 

Other Detail and Ratios

 

 

 

 

Other expenses

 

$

2,869

 

 

$

2,954

 

Capitalization of DAC

 

 

(635

)

 

 

(764

)

Other expenses, net of capitalization of DAC

 

$

2,234

 

 

$

2,190

 

 

 

 

 

 

Premiums, fees and other revenues

 

$

11,639

 

 

$

11,887

 

 

 

 

 

 

Expense ratio

 

 

19.2

%

 

 

18.4

%

 

 

 

 

 

Direct expenses

 

$

1,266

 

 

$

1,288

 

Less: Total notable items related to direct expenses (2)

 

 

?

 

 

 

?

 

Direct expenses, excluding total notable items related to direct expenses (2)

 

$

1,266

 

 

$

1,288

 

 

 

 

 

 

Adjusted other expenses

 

$

2,760

 

 

$

2,899

 

Adjusted capitalization of DAC

 

 

(620

)

 

 

(764

)

Adjusted other expenses, net of adjusted capitalization of DAC

 

 

2,140

 

 

 

2,135

 

Less: Total notable items related to adjusted other expenses (2)

 

 

?

 

 

 

?

 

Adjusted other expenses, net of adjusted capitalization of DAC, excluding total notable items related to adjusted other expenses (2)

 

$

2,140

 

 

$

2,135

 

 

 

 

 

 

Adjusted premiums, fees and other revenues

 

$

11,419

 

 

$

11,820

 

Less: PRT

 

 

(24

)

 

 

487

 

Adjusted premiums, fees and other revenues, excluding PRT

 

$

11,443

 

 

$

11,333

 

 

 

 

 

 

Direct expense ratio

 

 

11.1

%

 

 

10.9

%

Direct expense ratio, excluding total notable items related to direct expenses and PRT (2)

 

 

11.1

%

 

 

11.4

%

Adjusted expense ratio

 

 

18.7

%

 

 

18.1

%

Adjusted expense ratio, excluding total notable items related to adjusted other expenses and PRT (2)

 

 

18.7

%

 

 

18.8

%

 

 

 

 

 

See footnotes on last page.

MetLife, Inc.

(Unaudited)

(In millions, except per share data)

 

 

 

 

 

September 30,

Equity Details

 

2021

 

2020

Total MetLife, Inc.'s stockholders' equity

 

$

69,050

 

 

$

73,316

 

Less: Preferred stock

 

 

3,818

 

 

 

4,312

 

MetLife, Inc.'s common stockholders' equity

 

 

65,232

 

 

 

69,004

 

Less: Net unrealized investment gains (losses), net of income tax

 

 

18,658

 

 

 

22,869

 

Defined benefit plans adjustment, net of income tax

 

 

(1,805

)

 

 

(1,954

)

Total MetLife, Inc.'s common stockholders' equity, excluding AOCI other than FCTA

 

 

48,379

 

 

 

48,089

 

Less: Goodwill, net of income tax

 

 

9,317

 

 

 

9,021

 

VODA and VOCRA, net of income tax

 

 

763

 

 

 

253

 

Total MetLife, Inc.'s tangible common stockholders' equity

 

$

38,299

 

 

$

38,815

 

 

 

 

 

 

September 30,

 

 

2021

 

2020

Total MetLife, Inc.'s common stockholders' equity, excluding AOCI other than FCTA

 

$

48,379

 

 

$

48,089

 

Less: Accumulated year-to-date total notable items (2)

 

 

(74

)

 

 

(203

)

Total MetLife, Inc.'s common stockholders' equity, excluding total notable items (excludes AOCI other than FCTA) (2)

 

 

48,453

 

 

 

48,292

 

Less: Goodwill, net of income tax

 

 

9,317

 

 

 

9,021

 

VODA and VOCRA, net of income tax

 

 

763

 

 

 

253

 

Total MetLife, Inc.'s tangible common stockholders' equity, excluding total notable items (2)

 

$

38,373

 

 

$

39,018

 

 

 

 

 

 

 

 

September 30,

Book Value (4)

 

2021

 

2020

Book value per common share

 

$

77.24

 

 

$

76.20

 

Less: Net unrealized investment gains (losses), net of income tax

 

 

22.09

 

 

 

25.26

 

Defined benefit plans adjustment, net of income tax

 

 

(2.14

)

 

 

(2.16

)

Book value per common share, excluding AOCI other than FCTA

 

 

57.29

 

 

 

53.10

 

Less: Goodwill, net of income tax

 

 

11.04

 

 

 

9.96

 

VODA and VOCRA, net of income tax

 

 

0.90

 

 

 

0.28

 

Book value per common share - tangible common stockholders' equity

 

$

45.35

 

 

$

42.86

 

 

 

 

 

 

Common shares outstanding, end of period (5)

 

 

844.5

 

 

 

905.6

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

 

September 30,

Average Common Stockholders' Equity

 

2021

 

2020

Average common stockholders' equity

 

$

65,276

 

 

$

70,193

 

Average common stockholders' equity, excluding AOCI other than FCTA

 

$

48,464

 

 

$

47,763

 

Average common stockholders' equity, excluding total notable items (excludes AOCI other than FCTA) (2)

 

$

48,468

 

 

$

47,864

 

Average tangible common stockholders' equity

 

$

38,335

 

 

$

38,539

 

Average tangible common stockholders' equity, excluding total notable items (2)

 

$

38,339

 

 

$

38,640

 

 

 

 

 

 

See footnotes on last page.

 

 

 

 

MetLife, Inc.

(Unaudited)

 

 

 

 

 

 

 

For the Three Months Ended

 

 

September 30, (6)

 

 

2021

 

2020

Return on Equity

 

 

 

 

Return on MetLife, Inc.'s:

 

 

 

 

Common stockholders' equity

 

9.3

%

 

3.6

%

 

 

 

 

 

Adjusted return on MetLife, Inc.'s:

 

 

 

 

Common stockholders' equity

 

12.6

%

 

9.0

%

Common stockholders' equity, excluding AOCI other than FCTA

 

17.0

%

 

13.2

%

Common stockholders' equity, excluding total notable items (excludes AOCI other than FCTA) (2)

 

18.2

%

 

14.9

%

Tangible common stockholders' equity (7)

 

21.7

%

 

16.5

%

Tangible common stockholders' equity, excluding total notable items (2), (7)

 

23.2

%

 

18.5

%

 

 

 

 

 

Adjusted Return on Allocated Equity:

 

 

 

 

U.S.

 

38.4

%

 

32.5

%

Asia

 

15.5

%

 

13.0

%

Latin America

 

4.2

%

 

5.1

%

EMEA

 

13.2

%

 

7.3

%

MetLife Holdings

 

23.2

%

 

10.2

%

 

 

 

 

 

Adjusted Return on Allocated Tangible Equity:

 

 

 

 

U.S.

 

44.8

%

 

37.3

%

Asia

 

23.2

%

 

19.6

%

Latin America

 

6.6

%

 

8.3

%

EMEA

 

22.8

%

 

12.9

%

MetLife Holdings

 

25.4

%

 

11.4

%

 

 

 

 

 

See footnotes on last page.

 

 

 

 

MetLife, Inc.

Adjusted Earnings Available to Common Shareholders

(Unaudited)

(In millions)

 

 

 

 

For the Three Months Ended

 

September 30,

 

2021

 

2020

 

 

 

U.S. (3), (8):

 

 

 

 

 

Adjusted earnings available to common shareholders

$

895

 

$

900

Less: Total notable items (2)

 

?

 

 

?

Adjusted earnings available to common shareholders, excluding total notable items (2)

$

895

 

$

900

 

 

 

 

 

 

Adjusted premiums, fees and other revenues

$

6,408

 

$

6,833

Less: PRT

 

(24

)

 

487

Adjusted premiums, fees and other revenues, excluding PRT

$

6,432

 

$

6,346

 

 

 

 

 

 

Group Benefits (3):

 

 

 

 

 

Adjusted earnings available to common shareholders

$

111

 

$

392

Less: Total notable items (2)

 

?

 

 

?

Adjusted earnings available to common shareholders, excluding total notable items (2)

$

111

 

$

392

 

 

 

 

 

 

Adjusted premiums, fees and other revenues

$

5,517

 

$

4,901

 

 

 

 

 

 

Retirement & Income Solutions (3):

 

 

 

 

 

Adjusted earnings available to common shareholders

$

784

 

$

490

Less: Total notable items (2)

 

?

 

 

?

Adjusted earnings available to common shareholders, excluding total notable items (2)

$

784

 

$

490

 

 

 

 

 

 

Adjusted premiums, fees and other revenues

$

891

 

$

1,024

Less: PRT

 

(24

)

 

487

Adjusted premiums, fees and other revenues, excluding PRT

$

915

 

$

537

 

 

 

 

 

 

 

 

 

Property & Casualty (3), (8):

 

 

 

 

 

Adjusted earnings available to common shareholders

$

?

 

$

18

Less: Total notable items (2)

 

?

 

 

?

Adjusted earnings available to common shareholders, excluding total notable items (2)

$

?

 

$

18

 

 

 

 

 

 

Adjusted premiums, fees and other revenues

$

?

 

$

908

 

 

 

See footnotes on last page.

 

MetLife, Inc.

Adjusted Earnings Available to Common Shareholders (Continued)

(Unaudited)

(In millions)

 

 

 

 

For the Three Months Ended

 

September 30,

 

2021

 

2020

 

 

 

Asia:

 

 

 

 

 

Adjusted earnings available to common shareholders

$

569

 

 

$

465

 

Less: Total notable items (2)

 

(79

)

 

 

(28

)

Adjusted earnings available to common shareholders, excluding total notable items (2)

$

648

 

 

$

493

 

 

 

 

 

Adjusted earnings available to common shareholders on a constant currency basis

$

569

 

 

$

466

 

Adjusted earnings available to common shareholders, excluding total notable items, on a constant currency basis (2)

$

648

 

 

$

494

 

 

 

 

 

Adjusted premiums, fees and other revenues

$

2,088

 

 

$

2,265

 

Adjusted premiums, fees and other revenues, on a constant currency basis

$

2,088

 

 

$

2,225

 

 

 

 

 

Latin America:

 

 

 

 

 

 

 

Adjusted earnings available to common shareholders

$

29

 

 

$

39

 

Less: Total notable items (2)

 

(2

)

 

 

(9

)

Adjusted earnings available to common shareholders, excluding total notable items (2)

$

31

 

 

$

48

 

 

 

 

 

Adjusted earnings available to common shareholders on a constant currency basis

$

29

 

 

$

41

 

Adjusted earnings available to common shareholders, excluding total notable items, on a constant currency basis (2)

$

31

 

 

$

50

 

 

 

 

 

Adjusted premiums, fees and other revenues

$

988

 

 

$

761

 

Adjusted premiums, fees and other revenues, on a constant currency basis

$

988

 

 

$

807

 

 

 

 

 

EMEA:

 

 

 

 

 

 

 

Adjusted earnings available to common shareholders

$

94

 

 

$

52

 

Less: Total notable items (2)

 

(6

)

 

 

(31

)

Adjusted earnings available to common shareholders, excluding total notable items (2)

$

100

 

 

$

83

 

 

 

 

 

Adjusted earnings available to common shareholders on a constant currency basis

$

94

 

 

$

52

 

Adjusted earnings available to common shareholders, excluding total notable items, on a constant currency basis (2)

$

100

 

 

$

83

 

 

 

 

 

Adjusted premiums, fees and other revenues

$

670

 

 

$

680

 

Adjusted premiums, fees and other revenues, on a constant currency basis

$

670

 

 

$

682

 

 

 

 

 

MetLife Holdings (3):

 

 

 

 

 

 

 

Adjusted earnings available to common shareholders

$

606

 

 

$

253

 

Less: Total notable items (2)

 

(53

)

 

 

(135

)

Adjusted earnings available to common shareholders, excluding total notable items (2)

$

659

 

 

$

388

 

 

 

 

 

Adjusted premiums, fees and other revenues

$

1,141

 

 

$

1,206

 

 

 

 

 

Corporate & Other (3):

 

 

 

 

 

 

 

Adjusted earnings available to common shareholders

$

(131

)

 

$

(131

)

Less: Total notable items (2)

 

?

 

 

 

?

 

Adjusted earnings available to common shareholders, excluding total notable items (2)

$

(131

)

 

$

(131

)

 

 

 

 

Adjusted premiums, fees and other revenues

$

124

 

 

$

75

 

 

 

 

See footnotes on last page.

 

 

MetLife, Inc.

(Unaudited)

(In millions)

 

 

 

 

 

 

For the Three Months Ended

 

 

 

September 30,

 

 

 

2021

 

2020

 

 

Variable investment income (post-tax, in millions) (9)

 

 

 

 

U.S.

 

 

 

 

Group Benefits

$

17

$

6

 

 

 

Retirement and Income Solutions

 

449

 

164

 

 

 

Property & Casualty (8)

 

?

 

16

 

 

 

Total U.S.

 

466

 

186

 

 

 

Asia

 

373

 

148

 

 

 

Latin America

 

22

 

(3

)

 

 

EMEA

 

?

 

?

 

 

 

MetLife Holdings

 

487

 

172

 

 

 

Corporate & Other

 

65

 

12

 

 

 

Total variable investment income

$

1,413

$

515

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Segments: U.S., Asia, Latin America and EMEA (10)

 

Capital Deployed

Value Added (VNB)

Internal Rate of

Return (IRR)

Payback (Years)

Value of new business ($ in billions)

 

 

 

 

2020

$

3.2

$

1.9

 

17

%

6

2019

$

3.8

$

1.8

 

15

%

7

2018

$

3.8

$

2.1

 

15

%

7

2017

$

3.1

$

1.3

 

14

%

7

2016

$

2.9

$

1.0

 

14

%

7

 

 

 

 

 

See footnotes on last page.

 

 

 

 

MetLife, Inc.

(Unaudited)

 

Cash & Capital (11), (12)

 

 

(In billions)

 

 

September 30

 

2021

2020

Holding Companies Cash & Liquid Assets

$

5.1

 

$

7.8

 

 

 

 

Group Benefits Underwriting (13)

 

 

 

 

 

 

For the Three Months Ended

 

September 30,

 

2021

2020

Group Life Mortality Ratio (14)

 

106.2

%

 

89.6

%

Footnotes

 

 

(1)

 

Adjusted earnings available to common shareholders, excluding total notable items, per diluted common share is calculated on a standalone basis and may not equal (i) adjusted earnings available to common shareholders per diluted common share, less (ii) total notable items per diluted common share.

 

 

 

(2)

 

Notable items reflect the unexpected impact of events that affect MetLife's results, but that were unknown and that MetLife could not anticipate when it devised its business plan. Notable items also include certain items regardless of the extent anticipated in the business plan, to help investors have a better understanding of MetLife's results and to evaluate and forecast those results. Notable items can affect MetLife's results either positively or negatively.

 

 

 

(3)

 

Results on a constant currency basis are not included as constant currency impact is not significant.

 

 

 

(4)

 

Book values exclude $3,818 million and $4,312 million of equity related to preferred stock at September 30, 2021 and 2020, respectively.

 

 

 

(5)

 

There were share repurchases of $1.0 billion for the three months ended September 30, 2021.

 

 

 

(6)

 

Annualized using quarter-to-date results.

 

 

 

(7)

 

Adjusted earnings available to common shareholders, used to calculate the adjusted return on tangible common stockholders' equity, excludes the impact of amortization of VODA and VOCRA, net of income tax, for the three months ended September 30, 2021 and 2020 of $20 million and $7 million, respectively.

 

 

 

(8)

 

For the three months ended September 30, 2021, U.S. results exclude Property & Casualty as MetLife completed the sale of the business. U.S. results for the three months ended September 30, 2020, include Property & Casualty.

 

 

 

(9)

 

Assumes a 21% tax rate.

 

 

 

(10)

 

Excludes the MetLife Holdings segment; Value of New Business is the present value of future profits net of the cost of capital and time value of guarantees from new sales.

 

 

 

(11)

 

The total U.S. statutory adjusted capital is expected to be approximately $19.7 billion at September 30, 2021, up 16% from December 31, 2020. This balance includes MetLife, Inc.'s principal U.S. insurance subsidiaries, excluding American Life Insurance Company and Metropolitan Property and Casualty Insurance Company from both periods.

 

 

 

(12)

 

As of June 30, 2021, the solvency margin ratio of MetLife's insurance subsidiary in Japan was 960%, which is calculated quarterly and does not reflect conditions and factors occurring after June 30, 2021.

 

 

 

(13)

 

Results are derived from insurance and non-administrative services-only contracts.

 

 

 

(14)

 

Excludes certain experience-rated contracts and includes accidental death and dismemberment. For the three months ended September 30, 2021 there was an estimated (18) percentage point impact to the ratio due to COVID-19 reported deaths with an estimated impact to adjusted earnings of ($290) million.

 


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