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8-K - FORM 8-K - METLIFE INC | y79928e8vk.htm |
EX-99.2 - EX-99.2 - METLIFE INC | y79928exv99w2.htm |
Exhibit 99.1
Contacts:
|
For Media: | John Calagna | ||
(212) 578-6252 | ||||
For Investors: | Conor Murphy | |||
(212) 578-7788 |
METLIFE ANNOUNCES THIRD QUARTER 2009 RESULTS
Operating Earnings of $0.87 Per Share
Continued Improvement in MetLifes Credit Spread Reflected in Net Loss of $0.79 Per Share
Strong Premiums, Fees & Other Revenues of $8.5 Billion; U.S. Annuity Deposits of $4.0 Billion
Board of Directors Declares Annual Common Stock Dividend of $0.74 Per Share
NEW YORK, October 29, 2009 MetLife, Inc. (NYSE: MET) today reported a third quarter 2009 net
loss1 of $650 million, or $0.79 per share, reflecting net realized investment losses of
$1.4 billion, after income tax. Included in the net realized investment losses were derivative
losses of $857 million, after income tax, of which approximately $582 million, after income tax,
was due to the improvement in MetLifes credit spread in the quarter.
MetLife reported third quarter 2009 operating earnings2 of $718 million, or $0.87 per
share.
During the quarter, MetLife delivered an 18% increase in operating earnings compared with the
third quarter of 2008 despite the current economic challenges, said C. Robert Henrikson, chairman,
president & chief executive officer of MetLife, Inc. Our businesses are performing well, as
evidenced by increased sales in a number of product areas in both the U.S. and internationally.
Over the course of 2009, MetLifes premiums, fees & other revenues as well as net investment
income have continued to increase each quarter, and book value has grown 10% over the third quarter of 2008
and 27% over the second quarter of 2009. We are also benefiting from the expense savings we have
achieved through our Operational Excellence initiative.
1 | All references in this press release to net income (loss), net income (loss) per share, operating earnings, operating earnings per share and book value per share should be read as net income (loss) available to MetLife, Inc.s common shareholders, net income (loss) available to MetLife, Inc.s common shareholders per diluted common share, operating earnings available to MetLife, Inc.s common shareholders, operating earnings available to MetLife, Inc.s common shareholders per diluted common share and book value per diluted common share, respectively. | |
2 | Operating earnings available to MetLife, Inc.s common shareholders, operating earnings available to MetLife, Inc.s common shareholders per diluted common share and MetLife, Inc.s book value per diluted common share, excluding accumulated other comprehensive income (AOCI), are not calculated based on generally accepted accounting principles (GAAP). Information regarding non-GAAP financial measures and the reconciliation of them to GAAP measures are provided in the Non-GAAP and Other Financial Disclosures discussion below, as well as in the tables that accompany this release. |
1
With our diverse mix of businesses, competitive products and financial strength, we are
differentiating MetLife in the marketplace as we provide important financial solutions to our
customers. At the same time, we are delivering value to our shareholders, as our board of
directors has declared an annual common stock dividend of $0.74 per share, added Henrikson.
The dividend will be payable on December
14, 2009 to shareholders of record as of November 9,
2009.
THIRD QUARTER 2009 SUMMARY
| Premiums, fees & other revenues of $8.5 billion | |
| U.S. annuity deposits of $4.0 billion, driven by strong variable annuity deposits of $3.4 billion and a 19% increase in fixed annuity deposits over the third quarter of 2008 | |
| Operating earnings increased 18% over the third quarter of 2008 despite: |
o | lower variable investment income, which was below plan by $32 million ($0.04 per share), after income tax and the impact of deferred acquisition costs | ||
o | a lower interest rate environment offsetting strong equity markets, with an estimated net impact on Individual Business annuity earnings of $46 million ($0.06 per share), after income tax |
| Book value per share of $38.95, up 27% from the second quarter of 2009 and 10% from the third quarter of 2008 |
For the three months ended September 30, | ||||||||||||
($ in millions, except per share data) | 2009 | 2008 | Change | |||||||||
Premiums, fees & other revenues |
$ | 8,458 | $ | 8,558 | (1 | %) | ||||||
Total revenues |
12,414 | 12,571 | (1 | %) | ||||||||
Net income (loss) |
(650 | ) | 600 | | ||||||||
Net income (loss) per share |
(0.79 | ) | 0.83 | | ||||||||
Operating earnings |
718 | 608 | 18 | % | ||||||||
Operating earnings per share |
0.87 | 0.84 | 4 | % | ||||||||
Book value per share |
38.95 | 35.48 | 10 | % | ||||||||
Book value per share excluding AOCI |
41.65 | 45.85 | (9 | %) |
BUSINESS SEGMENT DISCUSSIONS
All comparisons of third quarter 2009 results in the segment discussions below are with the third
quarter of 2008, unless otherwise noted. Reconciliations of segment net income to segment
operating earnings are provided in the tables that accompany this release.
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Institutional Business
| Institutional premiums, fees & other revenues of $4.2 billion, down 8%; up 3% excluding pension closeout sales, which can fluctuate significantly from quarter to quarter | |
| Increased premiums, fees & other revenues in the group life and non-medical health & other product groups | |
| Higher interest spreads compared with the first and second quarters of 2009 |
Institutional premiums, fees & other revenues, excluding pension closeout sales, were up 3% due in
part to a 51% increase in structured settlement premiums. In addition, growth in the dental
business drove a 3% increase in the non-medical health & other premiums, fees & other revenues,
while group life premiums, fees & other revenues grew over 2%.
Operating earnings for Institutional were $311 million, down from $396 million, mostly due to lower
net investment income and a $20 million ($0.02 per share), after income tax, reinsurance
adjustment.
Individual Business
| Individual premiums, fees & other revenues of $2.2 billion, up 5% partly due to higher income annuity and traditional (whole & term) life product sales | |
| Annuity deposits of $4.0 billion, down 6% as growth in fixed annuity deposits was more than offset by lower variable annuity deposits | |
| Operating earnings of $237 million, up 10% |
Total annuity deposits remained strong at $4.0 billion ($3.4 billion in variable annuities/$596
million in fixed annuities), but were down slightly and reflect current market trends. Annuity
lapse rates declined for the third consecutive quarter with annuity net flows remaining positive
for the sixth consecutive quarter. Total life first year premiums and deposits were $255 million,
compared with $258 million. A 50% increase in traditional life first year premiums and deposits
was offset by lower sales of variable and universal life.
Operating earnings for Individual grew 10% to $237 million from $215 million. More favorable
market conditions and improved underwriting margins drove the increase. Earnings for the annuity
business were $105 million, up 27% from $83 million as the lower interest rate environment offset
strong equity market performance, with an estimated
net impact on earnings of
$46 million ($0.06 per
share), after income tax.
International
| International premiums, fees & other revenues of $1.1 billion, down 5% on a reported basis; up 9% on a constant currency basis | |
| Strong growth in fixed annuity deposits in Japan | |
| Operating earnings of $153 million, up 30% despite the adverse impact of foreign currency exchange rates |
On a constant currency basis, International premiums, fees & other revenues increased due to
business growth in the companys three international regions. In particular, the Latin America
region benefited from growth in the companys group business in Mexico, while Hong Kong and
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South
Korea drove the increase in the Asia Pacific region. In Japan, total annuity deposits were 126
billion yen ($1.3 billion), compared with 173 billion yen ($1.6 billion). A 27% increase in fixed
annuity deposits was more than offset by a decline in variable annuity deposits, reflecting current
market conditions in Japan. In the European region, variable annuity deposits increased
significantly, primarily due to expanded distribution and greater product acceptance in the United
Kingdom.
Internationals operating earnings grew 30% to $153 million from $118 million. During the third
quarter of 2009, the adverse impact of foreign currency exchange rates was offset by lower expenses
and approximately $14 million ($0.02 per share), after income tax, in one-time benefits.
Auto & Home
| Net written premiums of $754 million, down 2% | |
| Strong combined ratio (excluding catastrophes) of 87.7% | |
| Expense ratio improves to 25.0% |
Auto & Homes net written premiums were lower, and continued to reflect current market conditions.
Operating earnings for Auto & Home were $86 million in the third quarter of 2009, compared with
$101 million. Earnings in the third quarters of 2009 and 2008 benefited from favorable
non-catastrophe claim development related to prior accident years of $7 million, after income tax,
and $27 million, after income tax, respectively. In addition, catastrophes were lower in the third
quarter of 2009.
Investments
| General account portfolio increased to $338.3 billion, up 5% as net unrealized losses on fixed maturities declined to $1.4 billion from $13.9 billion at June 30, 2009 due to improved credit spreads and lower interest rates | |
| Net realized investment losses, excluding derivatives, declined 24% compared with the second quarter of 2009 |
Net investment income was $4.0 billion, up from $3.9 billion in the second quarter of 2009 and
consistent with $4.0 billion in the third quarter of 2008. During the third quarter of 2009,
variable investment income was lower than plan by $45 million, or $32 million ($0.04 per share),
after income tax and the impact of deferred acquisition costs. Solid performance from securities
lending, hedge funds and corporate joint ventures was offset mostly by negative returns from real
estate funds.
For the third quarter of 2009, MetLife had net realized investment losses, after income tax, of
$1.4 billion, mostly driven by derivative losses of approximately $857 million, after income tax.
The remainder was primarily due to credit-related losses and impairments across a broad range of
asset classes, and was consistent with the companys expectations.
MetLife uses derivatives in connection with its broader portfolio management efforts to hedge a
number of risks, including changes in interest rates and foreign currencies. During the
quarter, an improvement in MetLifes own credit spread, which impacts the valuation of certain
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insurance liabilities, contributed approximately $582 million, after income tax, to the derivative
losses. This reverses derivative gains that occurred in earlier quarters when the credit spread
widened. The remainder were primarily due to declines in the value of foreign currency-related
derivatives and credit default swaps. These derivatives generally are used to offset economic
value changes of instruments for which fair value changes are recorded in accumulated other
comprehensive income.
Earnings Conference Call
MetLife will hold its third quarter 2009 earnings conference call and audio Webcast on Friday,
October 30, 2009, from 8:00 to 9:00 a.m. (ET). The conference call will be available live via
telephone and the Internet. To listen over the telephone, dial (651) 291-0618 (domestic and
international callers). To listen to the conference call over the Internet, visit www.metlife.com
(through a link on the Investor Relations page). Those who want to listen to the call on the
telephone or via the Internet should dial in or go to the Web site at least fifteen 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 10:00
a.m. (ET) on Friday, October 30, 2009, until Friday, November 6, 2009, at 11:59 p.m. (ET). To
listen to a replay of the conference call over the telephone, dial (320) 365-3844 (domestic and
international callers). The access code for the replay is 116597. To access the replay of the
conference call over the Internet, visit the above-mentioned Web site.
Non-GAAP and Other Financial Disclosures
All references in this press release to net income (loss), net income (loss) per share, operating
earnings and operating earnings per share should be read as net income (loss) available to MetLife,
Inc.s common shareholders, net income (loss) available to MetLife, Inc.s common shareholders per
diluted common share, operating earnings available to MetLife, Inc.s common shareholders and
operating earnings available to MetLife, Inc.s common shareholders per diluted common share,
respectively.
The historical and forward-looking financial information presented in this press release includes
performance measures which are based on methodologies other than GAAP. MetLife analyzes its
performance using so-called non-GAAP measures, including operating earnings, operating earnings per
share and operating return on common equity. MetLife believes these measures enhance the
understanding and comparability of its performance by excluding net investment gains and losses,
net of income tax, adjustments related to net investment gains and losses, net of income tax, and
adjustments related to net investment gains and losses of consolidated entities and operating joint
ventures reported under the equity method of accounting and the impact of MetLifes own credit, net
of income tax, each of which can fluctuate significantly from period to period, and adjustments
related to acquisition costs incurred to effect a business combination after January 1, 2009, net
of income tax, and discontinued operations other than discontinued real estate, net of income tax,
thereby highlighting the results from operations and the underlying profitability drivers of the
business. Operating earnings available to MetLife, Inc.s common shareholders and operating
earnings available to MetLife, Inc.s common shareholders per diluted common share should not be
viewed as substitutes for GAAP net income (loss) available
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to MetLife, Inc.s common shareholders and GAAP net income (loss) available to MetLife, Inc.s
common shareholders per diluted common share, respectively.
Operating earnings available to MetLife, Inc.s common shareholders is defined as GAAP net income
(loss) attributable to MetLife, Inc., excluding net investment gains and losses, net of income tax;
adjustments related to net investment gains and losses, net of income tax; adjustments related to
net investment gains and losses of consolidated entities and operating joint ventures reported
under the equity method of accounting and the impact of MetLifes own credit, net of income tax;
adjustments related to acquisition costs incurred to effect a business combination after January 1,
2009, net of income tax; and discontinued operations other than discontinued real estate, net of
income tax, less preferred stock dividends. Scheduled periodic settlement payments on derivative
instruments not qualifying for hedge accounting treatment are included in operating earnings.
Operating earnings available to MetLife, Inc.s common shareholders per diluted common share is
calculated by dividing operating earnings available to MetLife, Inc.s common shareholders by the
number of weighted average diluted common shares outstanding for the period indicated. Operating
return on common equity is calculated by dividing operating earnings available to MetLife, Inc.s
common shareholders by average MetLife, Inc. common equity for the period indicated, excluding
accumulated other comprehensive income.
6
For the three months ended September 30, | ||||||||||||||||
2009 | 2008 | |||||||||||||||
(In millions, except per common share data) | ||||||||||||||||
Net income (loss) available to MetLife,
Inc.s common shareholders |
$ | (650 | ) | $ | (0.79 | ) | $ | 600 | $ | 0.83 | ||||||
Less: Net investment gains (losses), net of
income tax1, 2 |
(1,420 | ) | (1.72 | ) | 483 | 0.66 | ||||||||||
Less: Adjustments related to net investment
gains (losses), net of income tax3 |
66 | 0.08 | (61 | ) | (0.08 | ) | ||||||||||
Less: Adjustments related to acquisition
costs, net of income tax |
(12 | ) | (0.02 | ) | | | ||||||||||
Less: Discontinued operations, net of
income tax4 |
(2 | ) | | (430 | ) | (0.59 | ) | |||||||||
Operating earnings available to common
shareholders |
$ | 718 | $ | 0.87 | $ | 608 | $ | 0.84 | ||||||||
Book value per diluted common share |
$ | 38.95 | $ | 35.48 | ||||||||||||
Less: Accumulated other comprehensive
income (loss) per diluted common share |
(2.70 | ) | (10.37 | ) | ||||||||||||
Book value per diluted common share,
excluding accumulated other comprehensive
income (loss) |
$ | 41.65 | $ | 45.85 | ||||||||||||
1 | Net investment gains (losses), net of income tax, excludes gains (losses) of $(2) million and $(1) million for the three months ended September 30, 2009 and 2008, respectively, from scheduled periodic settlement payments on derivative instruments not qualifying for hedge accounting treatment. | |
2 | Investment income, net, excludes the net investment gains (losses) of consolidated entities and operating joint ventures reported under the equity method of accounting of $(35) million and $37 million for the three months ended September 30, 2009 and 2008, respectively. Such adjustments are net of applicable adjustments stated in footnote 3 below. Provision for income tax excludes the related tax impact of the net investment gains (losses) of consolidated entities and operating joint ventures reported under the equity method of accounting of $0 and $11 million for the three months ended September 30, 2009 and 2008, respectively. | |
3 | Adjustments related to net investment gains (losses), net of income tax, include amortization of unearned revenue and deferred policy acquisition costs, adjustments to the policyholder dividend obligation and amounts allocable to certain participating contracts. | |
4 | Discontinued operations, net of income tax, exclude gains (losses) from discontinued operations related to real estate and real estate joint ventures. |
About MetLife
MetLife, Inc. is a leading provider of insurance, employee benefits and financial services with
operations throughout the United States and the Latin America, Europe and Asia Pacific regions.
Through its subsidiaries and affiliates, MetLife, Inc. reaches more than 70 million customers
around the world and MetLife is the largest life insurer in the United States (based on life
insurance in-force). The MetLife companies offer life insurance, annuities, auto and home
insurance, retail banking and other financial services to individuals, as well as group insurance
and retirement & savings products and services to corporations and other institutions. For more
information, visit www.metlife.com.
This press 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. These
statements can be identified by the fact that they do not relate strictly to historical or current
facts. They use words such as anticipate, estimate, expect, project, intend, plan,
believe and other words and terms of similar meaning in connection with a discussion of future
operating or financial performance. In particular, these include statements relating to future
actions, prospective
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services or products, future performance or results of current and anticipated services or
products, sales efforts, expenses, the outcome of contingencies such as legal proceedings, trends
in operations and financial results.
Any or all forward-looking statements may turn out to be wrong. They can be affected by inaccurate
assumptions or by known or unknown risks and uncertainties. Many such factors will be important in
determining MetLifes actual future results. These statements are based on current expectations and
the current economic environment. They involve a number of risks and uncertainties that are
difficult to predict. These statements are not guarantees of future performance. Actual results
could differ materially from those expressed or implied in the forward-looking statements. Risks,
uncertainties, and other factors that might cause such differences include the risks, uncertainties
and other factors identified in MetLife, Inc.s filings with the U.S. Securities and Exchange
Commission (SEC). These factors include: (i) difficult and adverse conditions in the global and
domestic capital and credit markets; (ii) continued volatility and further deterioration of the
capital and credit markets, which may affect MetLifes ability to seek financing or access its
credit facilities; (iii) uncertainty about the effectiveness of the U.S. governments plan to
stabilize the financial system by injecting capital into financial institutions, purchasing large
amounts of illiquid, mortgage-backed and other securities from financial institutions, or
otherwise; (iv) the impairment of other financial institutions; (v) potential liquidity and other
risks resulting from MetLifes participation in a securities lending program and other
transactions; (vi) exposure to financial and capital market risk; (vii) changes in general economic
conditions, including the performance of financial markets and interest rates, which may affect
MetLifes ability to raise capital, generate fee income and market-related revenue and finance
statutory reserve requirements and may require MetLife to pledge collateral or make payments
related to declines in value of specified assets; (viii) defaults on MetLifes mortgage and
consumer loans; (ix) investment losses and defaults, and changes to investment valuations;
(x) impairments of goodwill and realized losses or market value impairments to illiquid assets;
(xi) unanticipated changes in industry trends; (xii) heightened competition, including with respect
to pricing, entry of new competitors, consolidation of distributors, the development of new
products by new and existing competitors and for personnel; (xiii) discrepancies between actual
claims experience and assumptions used in setting prices for MetLifes products and establishing
the liabilities for MetLifes obligations for future policy benefits and claims;
(xiv) discrepancies between actual experience and assumptions used in establishing liabilities
related to other contingencies or obligations; (xv) ineffectiveness of risk management policies and
procedures, including with respect to guaranteed benefit riders (which may be affected by fair
value adjustments arising from changes in MetLifes own credit spread) on certain of MetLifes
variable annuity products; (xvi) increased expenses relating to pension and post-retirement benefit
plans, (xvii) catastrophe losses; (xviii) changes in assumptions related to deferred policy
acquisition costs, value of business acquired or goodwill; (xix) downgrades in MetLife, Inc.s and
its affiliates claims paying ability, financial strength or credit ratings; (xx) economic,
political, currency and other risks relating to MetLifes international operations;
(xxi) availability and effectiveness of reinsurance or indemnification arrangements;
(xxii) regulatory, legislative or tax changes that may affect the cost of, or demand for, MetLifes
products or services; (xxiii) changes in accounting standards, practices and/or policies;
(xxiv) adverse results or other consequences from litigation, arbitration or regulatory
investigations; (xxv) deterioration in the experience of the closed block established in
connection with the reorganization of Metropolitan Life Insurance Company; (xxvi) the effects of
business disruption or economic contraction due to terrorism, other hostilities, or natural
catastrophes; (xxvii) MetLifes ability to identify and consummate on successful terms any future
acquisitions, and to successfully integrate acquired businesses with minimal disruption;
(xxviii) MetLife, Inc.s primary reliance, as a holding company, on dividends from its subsidiaries
to meet debt payment obligations and the applicable regulatory restrictions on the ability of the
subsidiaries to pay such dividends; and (xxix) other risks and uncertainties described from time to
time in MetLife, Inc.s filings with the SEC.
MetLife, Inc. does not undertake any obligation to publicly correct or update any forward-looking
statement if MetLife, Inc. later becomes aware that such statement is not likely to be achieved.
Please consult any further disclosures MetLife, Inc. makes on related subjects in reports to the
SEC.
# # #
8
MetLife, Inc.
Consolidated Statements of Income
For the Three and Nine Months Ended September 30, 2009 and 2008 (Unaudited)
(In millions)
Consolidated Statements of Income
For the Three and Nine Months Ended September 30, 2009 and 2008 (Unaudited)
(In millions)
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Revenues |
||||||||||||||||
Premiums |
$ | 6,601 | $ | 6,785 | $ | 19,299 | $ | 19,416 | ||||||||
Universal life and investment-type product policy fees |
1,251 | 1,352 | 3,650 | 4,145 | ||||||||||||
Net investment income |
3,923 | 4,047 | 10,914 | 12,661 | ||||||||||||
Other revenues |
602 | 421 | 1,728 | 1,141 | ||||||||||||
Net investment gains (losses): |
||||||||||||||||
Other-than-temporary impairments on fixed maturity securities |
(650 | ) | (748 | ) | (1,769 | ) | (961 | ) | ||||||||
Other-than-temporary impairments on fixed maturity securities
transferred to other comprehensive income (loss) |
245 | | 479 | | ||||||||||||
Other net investment gains (losses), net |
(1,734 | ) | 1,494 | (5,584 | ) | 620 | ||||||||||
Total net investment gains (losses) |
(2,139 | ) | 746 | (6,874 | ) | (341 | ) | |||||||||
Total revenues |
10,238 | 13,351 | 28,717 | 37,022 | ||||||||||||
Expenses |
||||||||||||||||
Policyholder benefits and claims |
7,173 | 7,264 | 20,701 | 20,426 | ||||||||||||
Interest credited to policyholder account balances |
1,258 | 1,129 | 3,655 | 3,558 | ||||||||||||
Policyholder dividends |
439 | 448 | 1,297 | 1,323 | ||||||||||||
Other expenses |
2,543 | 2,931 | 7,576 | 8,085 | ||||||||||||
Total expenses |
11,413 | 11,772 | 33,229 | 33,392 | ||||||||||||
Income (loss) from continuing operations before provision for income tax |
(1,175 | ) | 1,579 | (4,512 | ) | 3,630 | ||||||||||
Provision for income tax expense (benefit) |
(551 | ) | 529 | (1,884 | ) | 1,077 | ||||||||||
Income (loss) from continuing operations, net of income tax |
(624 | ) | 1,050 | (2,628 | ) | 2,553 | ||||||||||
Income (loss) from discontinued operations, net of income tax |
(1 | ) | (404 | ) | 37 | (251 | ) | |||||||||
Net income (loss) |
(625 | ) | 646 | (2,591 | ) | 2,302 | ||||||||||
Less: Net income (loss) attributable to noncontrolling interests |
(5 | ) | 16 | (25 | ) | 78 | ||||||||||
Net income (loss) attributable to MetLife, Inc. |
(620 | ) | 630 | (2,566 | ) | 2,224 | ||||||||||
Less: Preferred stock dividends |
30 | 30 | 91 | 94 | ||||||||||||
Net income (loss) available to MetLife, Inc.s common shareholders |
$ | (650 | ) | $ | 600 | $ | (2,657 | ) | $ | 2,130 | ||||||
Operating Earnings Available to Common Shareholders Reconciliation |
||||||||||||||||
Net income (loss) available to MetLife, Inc.s common shareholders |
$ | (650 | ) | $ | 600 | $ | (2,657 | ) | $ | 2,130 | ||||||
Net
investment gains (losses) (2) |
(2,171 | ) | 776 | (7,043 | ) | (288 | ) | |||||||||
Net
investment gains (losses) tax benefit (provision) (2) |
751 | (293 | ) | 2,470 | 71 | |||||||||||
Net investment gains (losses), net of income tax (1)(3) |
(1,420 | ) | 483 | (4,573 | ) | (217 | ) | |||||||||
Adjustments related to universal life and investment-type product policy fees |
(4 | ) | | (21 | ) | 2 | ||||||||||
Adjustments related to policyholder benefits and dividends |
(63 | ) | (96 | ) | (82 | ) | (58 | ) | ||||||||
Adjustments related to other expenses |
174 | (1 | ) | 616 | 257 | |||||||||||
Adjustments related to tax benefit (provision) |
(41 | ) | 36 | (182 | ) | (67 | ) | |||||||||
Adjustments related to net investment gains (losses), net of income tax (4) |
66 | (61 | ) | 331 | 134 | |||||||||||
Adjustments related to acquisition costs, net of income tax |
(12 | ) | | (21 | ) | | ||||||||||
Discontinued operations, net of income tax |
(2 | ) | (430 | ) | 34 | (349 | ) | |||||||||
Operating earnings available to common shareholders |
$ | 718 | $ | 608 | $ | 1,572 | $ | 2,562 | ||||||||
(1) | Net investment gains (losses), net of income tax, excludes scheduled periodic settlement payments on derivative instruments not qualifying for hedge accounting treatment of ($1) million and ($2) million for the three months ended September 30, 2008 and September 30, 2009, respectively, and ($32) million and $39 million for the nine months ended September 30, 2008 and September 30, 2009, respectively. | |
(2) | Investment income, net, excludes the net investment gains (losses) of consolidated entities and operating joint ventures reported under the equity method of accounting of $37 million and ($35) million for the three months ended September 30, 2008 and September 30, 2009, respectively, and $41 million and ($111) million for the nine months ended September 30, 2008 and September 30, 2009, respectively. Such adjustments are net of applicable adjustments stated in footnote 4 below. Provision (benefit) for income tax excludes the related tax impact of the net investment gains (losses) of consolidated entities and operating joint ventures reported under the equity method of accounting of $11 million and $0 for the three months ended September 30, 2008 and September 30, 2009, respectively, and $14 million and ($40) million for the nine months ended September 30, 2008 and September 30, 2009, respectively. | |
(3) | There were no net investment gains (losses) from discontinued real estate and real estate joint ventures for the periods presented. | |
(4) | Adjustments related to net investment gains (losses), net of income tax, includes amortization of unearned revenue and deferred policy acquisition costs, adjustments to the policyholder dividend obligation and amounts allocable to certain participating contracts. |
MetLife, Inc.
Financial Highlights
Unaudited
(In millions, except per common share data or unless otherwise noted)
Financial Highlights
Unaudited
(In millions, except per common share data or unless otherwise noted)
At or For the Three Months Ended | At or For the Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Other Financial Data: |
||||||||||||||||
Net income (loss) available to MetLife, Inc.s common shareholders |
$ | (650 | ) | $ | 600 | $ | (2,657 | ) | $ | 2,130 | ||||||
Operating earnings available to common shareholders |
$ | 718 | $ | 608 | $ | 1,572 | $ | 2,562 | ||||||||
Total assets (billions) |
$ | 535.2 | $ | 521.3 | $ | 535.2 | $ | 521.3 | ||||||||
Individual Business Sales Data: |
||||||||||||||||
Total life first year premiums and deposits |
$ | 255 | $ | 258 | $ | 697 | $ | 745 | ||||||||
Variable and Universal life first year premiums and deposits (including COLI/BOLI) |
$ | 180 | $ | 208 | $ | 496 | $ | 593 | ||||||||
Total annuity deposits |
$ | 4,037 | $ | 4,286 | $ | 16,875 | $ | 11,565 | ||||||||
Earnings Per Common Share Calculation: |
||||||||||||||||
Weighted average common shares outstanding diluted (1) |
821.8 | 726.9 | 817.3 | 728.6 | ||||||||||||
Operating earnings available to common shareholders per common share diluted (1) |
$ | 0.87 | $ | 0.84 | $ | 1.91 | $ | 3.52 | ||||||||
Net income (loss) available to MetLife, Inc.s common shareholders per common share diluted (1) |
$ | (0.79 | ) | $ | 0.83 | $ | (3.25 | ) | $ | 2.92 |
(1) | For the three months and nine months ended September 30, 2009, 5.5 million shares and 3.6 million shares, respectively, related to the exercise or issuance of stock-based awards, have been excluded from the weighted average common shares outstanding-diluted, as these shares are anti-dilutive to net income (loss) available to MetLife, Incs common shareholders per common share diluted. These shares were included in the calculation of operating earnings available to common shareholders per common share-diluted. |
MetLife, Inc.
Consolidated Balance Sheet Data
September 30, 2009 and December 31, 2008 (Unaudited)
(In millions)
Consolidated Balance Sheet Data
September 30, 2009 and December 31, 2008 (Unaudited)
(In millions)
September 30, | December 31, | |||||||
2009 | 2008 | |||||||
Balance Sheet Data: |
||||||||
General account assets |
$ | 390,758 | $ | 380,839 | ||||
Separate account assets |
144,434 | 120,839 | ||||||
Total assets |
$ | 535,192 | $ | 501,678 | ||||
Policyholder liabilities |
$ | 291,495 | $ | 289,145 | ||||
Short-term debt |
2,131 | 2,659 | ||||||
Long-term debt |
13,202 | 9,667 | ||||||
Collateral financing arrangements |
5,297 | 5,192 | ||||||
Junior subordinated debt securities |
3,191 | 3,758 | ||||||
Other liabilities |
40,849 | 46,433 | ||||||
Separate account liabilities |
144,434 | 120,839 | ||||||
Total liabilities |
500,599 | 477,693 | ||||||
Preferred stock, at par value |
1 | 1 | ||||||
Common stock, at par value |
8 | 8 | ||||||
Additional paid-in capital |
16,865 | 15,811 | ||||||
Retained earnings |
19,822 | 22,403 | ||||||
Treasury stock |
(194 | ) | (236 | ) | ||||
Accumulated other comprehensive loss |
(2,234 | ) | (14,253 | ) | ||||
Total MetLife, Inc.s stockholders equity |
34,268 | 23,734 | ||||||
Noncontrolling interests |
325 | 251 | ||||||
Total equity |
34,593 | 23,985 | ||||||
Total liabilities and stockholders equity |
$ | 535,192 | $ | 501,678 | ||||
MetLife, Inc.
Reconciliations of Net Income (Loss) Available to Common Shareholders to Operating Earnings Available to Common Shareholders
Unaudited
(In millions)
Reconciliations of Net Income (Loss) Available to Common Shareholders to Operating Earnings Available to Common Shareholders
Unaudited
(In millions)
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Total Institutional Operations |
||||||||||||||||
Net income (loss) available to MetLife, Inc.s common shareholders |
$ | 57 | $ | 574 | $ | (1,449 | ) | $ | 1,207 | |||||||
Net investment gains (losses), net of income tax |
(228 | ) | 141 | (2,224 | ) | (262 | ) | |||||||||
Adjustments related to net investment gains (losses), net of income tax |
(26 | ) | 37 | (42 | ) | 67 | ||||||||||
Operating earnings available to common shareholders |
$ | 311 | $ | 396 | $ | 817 | $ | 1,402 | ||||||||
Institutional Operations: |
||||||||||||||||
Group Life |
||||||||||||||||
Net income available to MetLife, Inc.s common shareholders |
$ | 91 | $ | 178 | $ | 69 | $ | 320 | ||||||||
Net investment gains (losses), net of income tax |
(33 | ) | 32 | (265 | ) | (82 | ) | |||||||||
Adjustments related to net investment gains (losses), net of income tax |
3 | 1 | 5 | 2 | ||||||||||||
Operating earnings available to common shareholders |
$ | 121 | $ | 145 | $ | 329 | $ | 400 | ||||||||
Retirement & Savings |
||||||||||||||||
Net income (loss) available to MetLife, Inc.s common shareholders |
$ | (122 | ) | $ | 197 | $ | (890 | ) | $ | 456 | ||||||
Net investment gains (losses), net of income tax |
(225 | ) | (20 | ) | (1,159 | ) | (317 | ) | ||||||||
Adjustments related to net investment gains (losses), net of income tax |
(26 | ) | 22 | (45 | ) | 38 | ||||||||||
Operating earnings available to common shareholders |
$ | 129 | $ | 195 | $ | 314 | $ | 735 | ||||||||
Non-Medical Health & Other |
||||||||||||||||
Net income (loss) available to MetLife, Inc.s common shareholders |
$ | 88 | $ | 199 | $ | (628 | ) | $ | 431 | |||||||
Net investment gains (losses), net of income tax |
30 | 129 | (800 | ) | 137 | |||||||||||
Adjustments related to net investment gains (losses), net of income tax |
(3 | ) | 14 | (2 | ) | 27 | ||||||||||
Operating earnings available to common shareholders |
$ | 61 | $ | 56 | $ | 174 | $ | 267 | ||||||||
Total Individual Operations |
||||||||||||||||
Net income (loss) available to MetLife, Inc.s common shareholders |
$ | (174 | ) | $ | 400 | $ | (703 | ) | $ | 875 | ||||||
Net investment gains (losses), net of income tax |
(521 | ) | 227 | (1,521 | ) | (3 | ) | |||||||||
Adjustments related to net investment gains (losses), net of income tax |
110 | (45 | ) | 379 | 26 | |||||||||||
Discontinued operations, net of income tax |
| 3 | 24 | 3 | ||||||||||||
Operating earnings available to common shareholders |
$ | 237 | $ | 215 | $ | 415 | $ | 849 | ||||||||
Individual Operations: |
||||||||||||||||
Traditional Life |
||||||||||||||||
Net income (loss) available to MetLife, Inc.s common shareholders |
$ | (143 | ) | $ | 47 | $ | (198 | ) | $ | 142 | ||||||
Net investment gains (losses), net of income tax |
(170 | ) | (16 | ) | (245 | ) | (99 | ) | ||||||||
Adjustments related to net investment gains (losses), net of income tax |
(35 | ) | (27 | ) | (59 | ) | (36 | ) | ||||||||
Discontinued operations, net of income tax |
| 1 | 5 | (1 | ) | |||||||||||
Operating earnings available to common shareholders |
$ | 62 | $ | 89 | $ | 101 | $ | 278 | ||||||||
Variable & Universal Life |
||||||||||||||||
Net income available to MetLife, Inc.s common shareholders |
$ | 45 | $ | 34 | $ | 3 | $ | 107 | ||||||||
Net investment gains (losses), net of income tax |
(27 | ) | (2 | ) | (209 | ) | (41 | ) | ||||||||
Adjustments related to net investment gains (losses), net of income tax |
2 | 3 | 29 | 11 | ||||||||||||
Discontinued operations, net of income tax |
| 2 | 14 | 4 | ||||||||||||
Operating earnings available to common shareholders |
$ | 70 | $ | 31 | $ | 169 | $ | 133 | ||||||||
Annuities |
||||||||||||||||
Net income (loss) available to MetLife, Inc.s common shareholders |
$ | (82 | ) | $ | 299 | $ | (489 | ) | $ | 600 | ||||||
Net investment gains (losses), net of income tax |
(330 | ) | 237 | (1,030 | ) | 153 | ||||||||||
Adjustments related to net investment gains (losses), net of income tax |
143 | (21 | ) | 409 | 51 | |||||||||||
Discontinued operations, net of income tax |
| | 1 | | ||||||||||||
Operating earnings available to common shareholders |
$ | 105 | $ | 83 | $ | 131 | $ | 396 | ||||||||
Other |
||||||||||||||||
Net income (loss) available to MetLife, Inc.s common shareholders |
$ | 6 | $ | 20 | $ | (19 | ) | $ | 26 | |||||||
Net investment gains (losses), net of income tax |
6 | 8 | (37 | ) | (16 | ) | ||||||||||
Discontinued operations, net of income tax |
| | 4 | | ||||||||||||
Operating earnings available to common shareholders |
$ | | $ | 12 | $ | 14 | $ | 42 | ||||||||
MetLife, Inc.
Reconciliations of Net Income (Loss) Available to Common Shareholders to Operating Earnings Available to Common Shareholders (Continued)
Unaudited
(In millions)
Reconciliations of Net Income (Loss) Available to Common Shareholders to Operating Earnings Available to Common Shareholders (Continued)
Unaudited
(In millions)
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2009 | 2008 | 2009 | 2008 | |||||||||||||
Total International |
||||||||||||||||
Net income (loss) available to MetLife, Inc.s common shareholders |
$ | (278 | ) | $ | 254 | $ | (43 | ) | $ | 613 | ||||||
Net investment gains (losses), net of income tax |
(413 | ) | 189 | (479 | ) | 171 | ||||||||||
Adjustments related to net investment gains (losses), net of income tax |
(18 | ) | (53 | ) | (6 | ) | 41 | |||||||||
Operating earnings available to common shareholders |
$ | 153 | $ | 118 | $ | 442 | $ | 401 | ||||||||
Latin America Region: |
||||||||||||||||
Net income available to MetLife, Inc.s common shareholders |
$ | 44 | $ | 17 | $ | 276 | $ | 277 | ||||||||
Net investment gains (losses), net of income tax |
(19 | ) | (29 | ) | (7 | ) | (67 | ) | ||||||||
Adjustments related to net investment gains (losses), net of income tax |
(18 | ) | (53 | ) | (6 | ) | 41 | |||||||||
Operating earnings available to common shareholders |
$ | 81 | $ | 99 | $ | 289 | $ | 303 | ||||||||
Asia Pacific Region: |
||||||||||||||||
Net income (loss) available to MetLife, Inc.s common shareholders |
$ | (315 | ) | $ | 248 | $ | (290 | ) | $ | 346 | ||||||
Net investment gains (losses), net of income tax |
(397 | ) | 219 | (479 | ) | 235 | ||||||||||
Operating earnings available to common shareholders |
$ | 82 | $ | 29 | $ | 189 | $ | 111 | ||||||||
European Region: |
||||||||||||||||
Net loss available to MetLife, Inc.s common shareholders |
$ | (7 | ) | $ | (11 | ) | $ | (29 | ) | $ | (10 | ) | ||||
Net investment gains (losses), net of income tax |
3 | (1 | ) | 7 | 3 | |||||||||||
Operating earnings available to common shareholders |
$ | (10 | ) | $ | (10 | ) | $ | (36 | ) | $ | (13 | ) | ||||
Total Auto & Home |
||||||||||||||||
Net income available to MetLife, Inc.s common shareholders |
$ | 67 | $ | 57 | $ | 234 | $ | 191 | ||||||||
Net investment gains (losses), net of income tax |
(19 | ) | (44 | ) | (4 | ) | (60 | ) | ||||||||
Operating earnings available to common shareholders |
$ | 86 | $ | 101 | $ | 238 | $ | 251 | ||||||||
Auto & Home: |
||||||||||||||||
Auto |
||||||||||||||||
Net income available to MetLife, Inc.s common shareholders |
$ | 35 | $ | 69 | $ | 151 | $ | 212 | ||||||||
Net investment gains (losses), net of income tax |
(11 | ) | (30 | ) | (2 | ) | (41 | ) | ||||||||
Operating earnings available to common shareholders |
$ | 46 | $ | 99 | $ | 153 | $ | 253 | ||||||||
Homeowners & Other |
||||||||||||||||
Net income (loss) available to MetLife, Inc.s common shareholders |
$ | 32 | $ | (12 | ) | $ | 83 | $ | (21 | ) | ||||||
Net investment gains (losses), net of income tax |
(8 | ) | (14 | ) | (2 | ) | (19 | ) | ||||||||
Operating earnings available to common shareholders |
$ | 40 | $ | 2 | $ | 85 | $ | (2 | ) | |||||||
Corporate, Other & Eliminations |
||||||||||||||||
Net loss available to MetLife, Inc.s common shareholders |
$ | (322 | ) | $ | (685 | ) | $ | (696 | ) | $ | (756 | ) | ||||
Net investment gains (losses), net of income tax |
(239 | ) | (30 | ) | (345 | ) | (63 | ) | ||||||||
Adjustments related to acquisition costs, net of income tax |
(12 | ) | | (21 | ) | | ||||||||||
Discontinued operations, net of income tax |
(2 | ) | (433 | ) | 10 | (352 | ) | |||||||||
Operating earnings available to common shareholders |
$ | (69 | ) | $ | (222 | ) | $ | (340 | ) | $ | (341 | ) | ||||