Attached files
file | filename |
---|---|
8-K - FORM 8-K - METLIFE INC | y93702e8vk.htm |
EX-99.1 - EX-99.1 - METLIFE INC | y93702exv99w1.htm |
Exhibit 99.2
Contacts:
|
For Media: | John Calagna (212) 578-6252 |
||
For Investors: | John McCallion (212) 578-7888 |
METLIFE ANNOUNCES 2012 GUIDANCE & EXPECTED 2011 FINANCIAL RESULTS
2012 Operating Earnings Projected to Grow to Between $5.1 Billion and $5.6 Billion
2011 Operating Earnings Expected to Rise 32% Over 2010, Driven by Alico Acquisition
2011 Year-End Book Value Per Share Expected to Increase 28% Over 2010
NEW YORK, December 5, 2011 MetLife, Inc. (NYSE: MET) today announced its financial
objectives for 2012 as well as expected results for the fourth quarter and full year 2011. Members
of MetLifes senior management team will review these projections during the companys year-end
investor conference call beginning at 8:00 a.m. (ET) today.
2012 Guidance
MetLife expects 2012 operating earnings1 to be between $5.1 billion and $5.6
billion ($4.80 to $5.20 per share), up 7% over 2011 adjusted results. The adjustments reflect
several one-time items in 2011 and the estimated impact of an industry-wide change in accounting
methodology2.
MetLife has built a great global presence, and we intend to fully leverage it to further drive
earnings growth in 2012, said Steven A. Kandarian, president, chief executive officer and
chairman-elect of MetLife, Inc. In addition to being one of the most geographically diverse
insurance companies in the world, we have one of the strongest brands in the industry and a
disciplined risk-management culture. These attributes have served us well and will enable us to
create shareholder value.
In addition to operating earnings growth in 2012, MetLife projects it will increase premiums, fees
& other revenues by 5% over 2011 to between $47.3 billion and $48.6 billion.
1 | Information regarding non-GAAP financial measures and the reconciliation of them to the most directly comparable GAAP measures are provided in the Non-GAAP and Other Financial Disclosures discussion below. All percentages in this press release relating to future growth are calculated using mid-point of ranges. | |
2 | The adjustments are shown in the slide presentation included in a Current Report on Form 8-K being furnished to the U.S. Securities and Exchange Commission. |
1
Estimated Full Year 2011 Results
MetLife estimates its full year 2011 operating earnings will grow 32% to between $5.2 billion and
$5.3 billion ($4.83 to $4.93 per share) compared with $3.9 billion ($4.43 per share) in 2010.
Our industry faced several challenges during 2011 a volatile macro-economic environment,
several natural disasters and an uncertain regulatory environment. Yet MetLifes results this year
reflect the strong underlying fundamentals of our business, with operating earnings per share and
operating return on equity both expected to increase from 2010, added Kandarian.
For 2011, MetLife expects to grow its premiums, fees & other revenues 32% to be between $46.3
billion and $46.8 billion, compared with $35.2 billion in 2010.
Book value per share at year-end 2011 is expected to be between $56.15 and $57.25, up 28% from
$44.18 at year-end 2010.
Estimated Fourth Quarter 2011 Results
MetLife expects fourth quarter 2011 operating earnings of between $1.2 billion and $1.3 billion
($1.16 to $1.26 per share), up 7% from $1.2 billion ($1.19 per share) in the fourth quarter of
2010.
Per share calculations for full year and fourth quarter 2011 are based on 1,068.2 million and
1,066.5 million shares outstanding, respectively. Per share calculations for 2012 are based on
1,070.3 million average shares outstanding.
Year-End Conference Call Details
MetLife will hold a year-end investor conference call today from 8 a.m. to approximately 9:30 a.m.
(ET). The conference call and accompanying presentation materials will include statements relating
to MetLifes financial performance and investment portfolio, as well as the companys prospects for
the remainder of 2011 and for 2012. The call will also include a question and answer session.
The conference call will be available live via telephone and the Internet. To listen over the
telephone, dial (612) 326-1027 (domestic and international callers). To listen to the conference
call over the Internet and/or to access presentation materials, 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 1:00
p.m. (ET) on Monday, December 5, 2011, until Monday, December 12, 2011, 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 226282. To access the replay of the
conference call over the Internet, visit the above-mentioned Web site.
Assumptions included in MetLifes estimated fourth quarter and full year 2011 and projected full
year 2012 results are discussed in detail in the slide presentations to be presented at MetLifes
2
year-end investor conference call, which are included in a Current Report on Form 8-K that is being
furnished today to the U.S. Securities and Exchange Commission.
Non-GAAP and Other Financial Disclosures
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 common shareholders,
operating earnings available to common shareholders per diluted common share and book value per
common share, respectively.
Operating earnings is the measure of segment profit or loss that MetLife uses to evaluate segment
performance and allocate resources and, consistent with accounting principles generally accepted in
the United States of America (GAAP) accounting guidance for segment reporting, is MetLifes
measure of segment performance. Operating earnings is also a measure by which MetLife senior
managements and many other employees performance is evaluated for the purposes of determining
their compensation under applicable compensation plans.
Operating earnings is defined as operating revenues less operating expenses, both net of income
tax. Operating earnings available to common shareholders is defined as operating earnings less
preferred stock dividends.
Operating revenues exclude net investment gains (losses) and net derivative gains (losses). The
following additional adjustments are made to GAAP revenues, in the line items indicated, in
calculating operating revenues:
| Universal life and investment-type product policy fees exclude the amortization of unearned revenue related to net investment gains (losses) and net derivative gains (losses) and certain variable annuity guaranteed minimum income benefits (GMIB) fees (GMIB Fees); | |
| Net investment income: (i) includes amounts for scheduled periodic settlement payments and amortization of premium on derivatives that are hedges of investments but do not qualify for hedge accounting treatment, (ii) includes income from discontinued real estate operations, (iii) excludes certain amounts related to contractholder-directed unit-linked investments, (iv) excludes post-tax operating earnings adjustments relating to insurance joint ventures accounted for under the equity method, and (v) excludes certain amounts related to securitization entities that are variable interest entities (VIEs) consolidated under GAAP; and | |
| Other revenues are adjusted for settlements of foreign currency earnings hedges. |
The following adjustments are made to GAAP expenses, in the line items indicated, in calculating
operating expenses:
| Policyholder benefits and claims and policyholder dividends exclude: (i) changes in the policyholder dividend obligation related to net investment gains (losses) and net derivative gains (losses), (ii) inflation-indexed benefit adjustments associated with contracts backed by inflation-indexed investments and amounts associated with periodic crediting rate |
3
adjustments based on the total return of a contractually referenced pool of assets, (iii) benefits and hedging costs related to GMIBs (GMIB Costs), and (iv) market value adjustments associated with surrenders or terminations of contracts (Market Value Adjustments); | ||
| Interest credited to policyholder account balances includes adjustments for scheduled periodic settlement payments and amortization of premium on derivatives that are hedges of policyholder account balances but do not qualify for hedge accounting treatment and excludes amounts related to net investment income earned on contractholder-directed unit-linked investments; | |
| Amortization of DAC and value of business acquired (VOBA) excludes amounts related to: (i) net investment gains (losses) and net derivative gains (losses), (ii) GMIB Fees and GMIB Costs, and (iii) Market Value Adjustments; | |
| Amortization of negative VOBA excludes amounts related to Market Value Adjustments; | |
| Interest expense on debt excludes certain amounts related to securitization entities that are VIEs consolidated under GAAP; and | |
| Other expenses exclude costs related to: (i) noncontrolling interests, (ii) implementation of new insurance regulatory requirements, and (iii) business combinations. |
MetLife believes the presentation of operating earnings and operating earnings available to common
shareholders as MetLife measures it for management purposes enhances the understanding of the
companys performance by highlighting the results from operations and the underlying profitability
drivers of the business. Operating revenues, operating expenses, operating earnings, operating
earnings available to common shareholders and operating earnings available to common shareholders
per diluted common share should not be viewed as substitutes for the following financial measures
calculated in accordance with GAAP: GAAP revenues, GAAP expenses, GAAP income (loss) from
continuing operations, net of income tax, GAAP net income (loss) available to MetLife, Inc.s
common shareholders and GAAP net income (loss) available to MetLife, Inc.s common shareholders per
diluted common share, respectively.
For the historical periods presented, reconciliations of non-GAAP measures used in this press
release to the most directly comparable GAAP measures are included in the tables that accompany
this press release. Additional information about MetLifes historical results is also available on
the companys website in the Quarterly Financial Supplements for the corresponding periods.
Operating return on common equity is calculated by dividing operating earnings available to common
shareholders by average MetLife, Inc. common equity for the period indicated, excluding accumulated
other comprehensive income.
The non-GAAP measures used in this press release should not be viewed as substitutes for the most
directly comparable GAAP measures.
In this press release, MetLife provides guidance on its future earnings, earnings per diluted
common share and return on common equity on an operating and non-GAAP basis. A reconciliation of
the non-GAAP measures to the most directly comparable GAAP measures is not accessible on a
forward-looking basis because we believe it is not possible to provide other
than a range of net investment gains and losses, which can fluctuate significantly within or
4
without the range and from period to period and may have a significant impact on GAAP net income.
About MetLife
MetLife, Inc. is a leading global provider of insurance, annuities and employee benefit programs,
serving 90 million customers in over 50 countries. Through its subsidiaries and affiliates,
MetLife holds leading market positions in the United States, Japan, Latin America, Asia Pacific,
Europe and the Middle East. 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 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 the actual future results of MetLife, Inc., its subsidiaries and affiliates. 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 (the SEC). These factors include: (1)
difficult conditions in the global capital markets; (2) concerns over U.S. fiscal policy and the
trajectory of the national debt of the U.S., as well as rating agency downgrades of U.S. Treasury
securities; (3) increased volatility and disruption of the capital and credit markets, which may
affect our ability to seek financing or access our credit facilities; (4) uncertainty about the
effectiveness of the U.S. governments programs to stabilize the financial system, the imposition
of fees relating thereto, or the promulgation of additional regulations; (5) impact of
comprehensive financial services regulation reform on us; (6) exposure to financial and capital
market risk; (7) changes in general economic conditions, including the performance of financial
markets and interest rates, which may affect our ability to raise capital, generate fee income and
market-related revenue and finance statutory reserve requirements and may require us to pledge
collateral or make payments related to declines in value of specified assets; (8) potential
liquidity and other risks resulting from our participation in a securities lending program and
other transactions; (9) investment losses and defaults, and changes to investment valuations; (10)
impairments of goodwill and realized losses or market value impairments to illiquid assets; (11)
defaults on our mortgage loans; (12) the impairment of other financial institutions that could
adversely affect our investments or business; (13) our ability to address unforeseen liabilities,
asset impairments, loss of key contractual relationships, or rating actions arising from
acquisitions or dispositions, including our acquisition of American Life Insurance Company and
Delaware American Life Insurance Company (collectively, ALICO) and to successfully integrate and
manage the growth of acquired businesses with minimal disruption; (14) uncertainty with respect to
the outcome of the closing agreement entered into with the United States Internal Revenue Service
in connection with the acquisition of ALICO; (15) the dilutive impact on our stockholders resulting
from the issuance of equity securities in connection with the acquisition of ALICO or otherwise;
(16) economic, political, currency and other risks relating to our international operations,
including with respect to fluctuations of exchange rates; (17) our primary reliance, as a holding
company, on dividends from our subsidiaries to meet debt payment obligations and the applicable
regulatory restrictions on the ability of the subsidiaries to pay such dividends; (18) downgrades
in our claims paying ability, financial strength or credit ratings; (19) ineffectiveness of risk
management policies and procedures; (20) availability and effectiveness of reinsurance or
indemnification arrangements, as well as default or failure of counterparties to perform; (21)
discrepancies between actual claims experience and assumptions used in setting prices for our
products and establishing the liabilities for our obligations for future policy benefits and
claims; (22) catastrophe losses; (23) heightened competition, including with respect to pricing,
entry of new
competitors, consolidation of distributors, the development of new products by new and existing
competitors,
5
distribution of amounts available under U.S. government programs, and for personnel;
(24) unanticipated changes in industry trends; (25) changes in accounting standards, practices
and/or policies; (26) changes in assumptions related to deferred policy acquisition costs, deferred
sales inducements, value of business acquired or goodwill; (27) increased expenses relating to
pension and postretirement benefit plans, as well as health care and other employee benefits; (28)
exposure to losses related to variable annuity guarantee benefits, including from significant and
sustained downturns or extreme volatility in equity markets, reduced interest rates, unanticipated
policyholder behavior, mortality or longevity, and the adjustment for nonperformance risk; (29)
deterioration in the experience of the closed block established in connection with the
reorganization of Metropolitan Life Insurance Company; (30) adverse results or other consequences
from litigation, arbitration or regulatory investigations; (31) inability to protect our
intellectual property rights or claims of infringement of the intellectual property rights of
others; (32) discrepancies between actual experience and assumptions used in establishing
liabilities related to other contingencies or obligations; (33) regulatory, legislative or tax
changes relating to our insurance, banking, international, or other operations that may affect the
cost of, or demand for, our products or services, impair our ability to attract and retain talented
and experienced management and other employees, or increase the cost or administrative burdens of
providing benefits to employees; (34) the effects of business disruption or economic contraction
due to disasters such as terrorist attacks, cyberattacks, other hostilities, or natural
catastrophes, including any related impact on our disaster recovery systems, cyber-or other
information security systems and management continuity planning; (35) the effectiveness of our
programs and practices in avoiding giving our associates incentives to take excessive risks; and
(36) 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.
# # #
6
MetLife, Inc.
December 31, | ||||
2010 | ||||
(In millions) | ||||
Reconciliation to Operating Earnings Available to Common Shareholders |
||||
Net income (loss) available to MetLife, Inc.s common shareholders |
$ | 2,668 | ||
Adjustments from net income (loss) available to MetLife, Inc.s common shareholders to operating
earnings available to common shareholders: |
||||
Less: Net investment gains (losses) |
(408 | ) | ||
Less: Net derivative gains (losses) |
(265 | ) | ||
Less: Other adjustments to continuing operations |
(1,089 | ) | ||
Less: Provision for income tax (expense) benefit |
444 | |||
Less: Income (loss) from discontinued operations, net of income tax |
38 | |||
Add: Net income (loss) attributable to noncontrolling interests |
(4 | ) | ||
Operating earnings available to common shareholders |
$ | 3,944 | ||
December 31, | ||||
2010 | ||||
Reconciliation to Operating Earnings Available to Common Shareholders per Diluted Common Share |
||||
Net income (loss) available to MetLife, Inc.s common shareholders per diluted common share |
$ | 3.00 | ||
Adjustments from net income (loss) available to MetLife, Inc.s common shareholders per diluted
common share to operating earnings available to common shareholders per diluted common share: |
||||
Less: Net investment gains (losses) |
(0.46 | ) | ||
Less: Net derivative gains (losses) |
(0.29 | ) | ||
Less: Other adjustments to continuing operations |
(1.22 | ) | ||
Less: Provision for income tax (expense) benefit related to
adjustments above |
0.50 | |||
Less: Income (loss) from discontinued operations, net of income tax |
0.04 | |||
Add: Net income (loss) attributable to noncontrolling interests |
| |||
Operating earnings available to common shareholders per diluted common share |
$ | 4.43 | ||
December 31, | ||||
2010 | ||||
(In millions) | ||||
Reconciliation to Premiums, Fees & Other Revenues |
||||
Premiums, Fees & Other Revenues |
$ | 35,427 | ||
Less: Adjustments related to universal life and investment-type product policy fees and other revenues |
211 | |||
Premiums, Fees & Other Revenues, as presented |
$ | 35,216 | ||