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8-K - 8-K - METLIFE INCd392580d8k.htm

Exhibit 99.1

MetLife, Inc.

Unaudited Pro Forma Condensed Consolidated Financial Statements

On August 4, 2017, MetLife, Inc. distributed 96,776,670 shares of Brighthouse Financial, Inc.’s (“Brighthouse”) common stock, representing approximately 80.8% of those shares, on a pro rata basis to MetLife, Inc.’s common shareholders (the “Distribution”). The record date for the Distribution was 5:00 p.m., New York City time, on July 19, 2017. MetLife, Inc. common shareholders received one share of Brighthouse common stock for every 11 shares of MetLife, Inc. common stock they owned. MetLife, Inc.’s common shareholders who owned less than 11 shares of common stock, or who would otherwise have received fractional shares, will receive cash. MetLife, Inc. retained 22,996,436 shares of Brighthouse common stock. Brighthouse common stock began trading on The NASDAQ Stock Market LLC under the symbol “BHF” on August 7, 2017.

The following unaudited pro forma condensed consolidated financial statements and accompanying notes present the impact of the Distribution and transactions directly attributable to the Distribution on the historical condensed consolidated financial statements of MetLife, Inc. and its subsidiaries (collectively, “MetLife, Inc.” or the “Company”). Beginning in the third quarter of 2017, Brighthouse’s historical financial results will be reported in MetLife, Inc.’s consolidated financial statements as discontinued operations.

The unaudited pro forma condensed consolidated financial statements include historical unaudited amounts as of June 30, 2017 and for the six months ended June 30, 2017 and audited amounts for the years ended December 31, 2016, 2015 and 2014 for MetLife, Inc. Within the unaudited pro forma condensed consolidated financial statements, the Brighthouse Financial Separation column includes historical amounts reported by MetLife, Inc.’s Brighthouse Financial segment adjusted to exclude the impact of historical intercompany transactions between Brighthouse and MetLife, Inc. subsidiaries that had previously been eliminated in consolidation and to exclude previously allocated corporate overhead costs. Refer to the accompanying footnotes for further information.

The unaudited pro forma condensed consolidated financial statements give effect to the Distribution as if it had occurred on (i) June 30, 2017 for purposes of the unaudited pro forma condensed consolidated balance sheet and (ii) January 1, 2014 for purposes of the unaudited pro forma condensed consolidated statements of operations for the six months ended June 30, 2017 and for the years ended December 31, 2016, 2015 and 2014. The historical financial information has been adjusted in the unaudited pro forma condensed consolidated financial statements to give effect to pro forma events that are directly attributable to the Distribution and that are factually supportable and are expected to have a continuing impact on MetLife, Inc.’s results of operations. Actual results may differ from pro forma adjustments.

The unaudited pro forma condensed consolidated financial statements, filed as Exhibit 99.1 to the Current Report on Form 8-K, should be read in conjunction with the accompanying notes. In addition, the unaudited pro forma condensed consolidated financial statements were derived in part from, and should be read in conjunction with, the historical unaudited interim condensed consolidated financial statements of MetLife, Inc. included in MetLife, Inc.’s quarterly report on Form 10-Q for the six months ended June 30, 2017 and the historical audited consolidated financial statements of MetLife, Inc. included in MetLife, Inc.’s annual report on Form 10-K for the year ended December 31, 2016.

The unaudited pro forma condensed consolidated financial statements (i) are presented based on information currently available, (ii) are intended for informational purposes only, and (iii) are not intended to reflect the results of operations or the financial position of the Company that would have resulted had the Distribution been effective as of and during the periods presented or the results that may be obtained by the Company in the future. The unaudited pro forma condensed consolidated financial statements as of and for the periods presented do not reflect future events that are not directly attributable to the Distribution and that may occur after the Distribution. Future results may vary significantly from the results reflected in the unaudited pro forma condensed consolidated financial statements.

 

1


MetLife, Inc.

Unaudited Pro Forma Condensed Consolidated Balance Sheet

June 30, 2017

(In millions, except per share data)

 

    Historical
MetLife, Inc.
    Brighthouse
Financial
Separation (a)
    Pro Forma
Adjustments
    Notes     Pro Forma
MetLife, Inc.
 

Assets

         

Investments:

         

Fixed maturity securities available-for-sale, at estimated fair value

  $ 364,084     $ (63,507   $ —         $ 300,577  

Equity securities available-for-sale, at estimated fair value

    3,415       (278     —           3,137  

Fair value option securities, at estimated fair value

    14,762       —         1,443       (b)       16,205  

Mortgage loans

    77,572       (10,263     61       (c)       67,370  

Policy loans

    11,072       (1,513     —           9,559  

Real estate and real estate joint ventures

    9,484       (302     —           9,182  

Other limited partnership interests

    6,874       (1,623     —           5,251  

Short-term investments, principally at estimated fair value

    7,177       (1,286     —           5,891  

Other invested assets, principally at estimated fair value

    19,596       (3,037     1,438       (d)       17,997  
 

 

 

   

 

 

   

 

 

     

 

 

 

Total investments

    514,036       (81,809     2,942         435,169  

Cash and cash equivalents, principally at estimated fair value

    17,319       (4,443     1,798       (e)       14,674  

Accrued investment income

    3,970       (608     —           3,362  

Premiums, reinsurance and other receivables

    26,487       (10,008     2,602       (c), (d)       19,081  

Deferred policy acquisition costs and value of business acquired

    25,408       (7,369     4       (c), (d)       18,043  

Current income tax recoverable

    66       (1,463     —           (1,397

Goodwill

    9,385       —         —           9,385  

Other assets

    8,073       (599     —           7,474  

Separate account assets

    320,455       (115,566     —           204,889  
 

 

 

   

 

 

   

 

 

     

 

 

 

Total assets

  $ 925,199     $ (221,865   $ 7,346       $ 710,680  
 

 

 

   

 

 

   

 

 

     

 

 

 

Liabilities and Equity

         

Liabilities

         

Future policy benefits

  $ 205,836     $ (34,494   $ 1,747       (d)     $ 173,089  

Policyholder account balances

    216,257       (37,296     —           178,961  

Other policy-related balances

    14,708       (1,294     1,428       (d)       14,842  

Policyholder dividends payable

    722       (15     —           707  

Policyholder dividend obligation

    2,237       —         —           2,237  

Payables for collateral under securities loaned and other transactions

    33,725       (7,121     —           26,604  

Short-term debt

    235       —         —           235  

Long-term debt

    19,508       (3,016     —           16,492  

Collateral financing arrangements

    1,235       —         —           1,235  

Junior subordinated debt securities

    3,169       —         —           3,169  

Deferred income tax liability

    10,383       (2,767     (750     (c)       6,866  

Other liabilities

    27,060       (4,763     2,945       (c), (d)       25,242  

Separate account liabilities

    320,455       (115,566     —           204,889  
 

 

 

   

 

 

   

 

 

     

 

 

 

Total liabilities

    855,530       (206,332     5,370         654,568  
 

 

 

   

 

 

   

 

 

     

 

 

 

Equity

         

MetLife, Inc.’s stockholder’s equity:

         

Preferred stock, par value $0.01 per share; $2,100 aggregate liquidation preference

    —         —         —           —    

Common stock, par value $0.01 per share

    12       —         —           12  

Additional paid-in capital

    31,021       —         —           31,021  

Retained earnings

    35,270       (13,713     1,976       (f)       23,533  

Treasury stock, at cost

    (5,284     —         —           (5,284

Accumulated other comprehensive income (loss)

    8,436       (1,770     —           6,666  
 

 

 

   

 

 

   

 

 

     

 

 

 

Total MetLife, Inc.’s stockholder’s equity

    69,455       (15,483     1,976         55,948  

Noncontrolling interests

    214       (50     —           164  
 

 

 

   

 

 

   

 

 

     

 

 

 

Total equity

    69,669       (15,533     1,976         56,112  
 

 

 

   

 

 

   

 

 

     

 

 

 

Total liabilities and equity

  $ 925,199     $ (221,865   $ 7,346       $ 710,680  
 

 

 

   

 

 

   

 

 

     

 

 

 

Book Value per share (g)

         

Book value per common share

  $ 63.37           $ 50.66  
 

 

 

         

 

 

 

Book value per common share, excluding accumulated other comprehensive income (loss) other than foreign currency translation adjustment

  $ 51.03           $ 40.03  
 

 

 

         

 

 

 

Common shares outstanding, end of period

    1,063.5             1,063.5  
 

 

 

         

 

 

 

See accompanying notes to unaudited pro forma condensed consolidated financial statements.

 

2


MetLife, Inc.

Unaudited Pro Forma Condensed Consolidated Statement of Operations

For the Six Months Ended June 30, 2017

(In millions, except per share data)

 

    Historical
MetLife, Inc.
    Brighthouse
Financial
Separation (a)
    Pro Forma
Adjustments
    Notes   Pro Forma
MetLife, Inc.
 

Revenues

         

Premiums

  $ 19,250     $ (704   $ 204     (d)   $ 18,750  

Universal life and investment-type product policy fees

    4,604       (1,881     12     (d)     2,735  

Net investment income

    10,155       (1,581     33     (d)     8,607  

Other revenues

    756       (123     68     (d)     701  

Net investment gains (losses)

    112       55       —           167  

Net derivative gains (losses)

    (1,363     891       —           (472
 

 

 

   

 

 

   

 

 

     

 

 

 

Total revenues

    33,514       (3,343     317         30,488  
 

 

 

   

 

 

   

 

 

     

 

 

 

Expenses

         

Policyholder benefits and claims

    20,161       (1,884     187     (d)     18,464  

Interest credited to policyholder account balances

    3,274       (531     (28   (d)     2,715  

Policyholder dividends

    637       (13     10     (d)     634  

Other expenses

    7,623       (713     (456   (d), (h),

(i)

    6,454  
 

 

 

   

 

 

   

 

 

     

 

 

 

Total expenses

    31,695       (3,141     (287       28,267  
 

 

 

   

 

 

   

 

 

     

 

 

 

Income (loss) before provision for income tax

    1,819       (202     604         2,221  

Provision for income tax expense (benefit)

    103       13       211     (j)     327  
 

 

 

   

 

 

   

 

 

     

 

 

 

Net income (loss)

    1,716       (215     393         1,894  

Less: Net income (loss) attributable to noncontrolling interests

    6       —         —           6  
 

 

 

   

 

 

   

 

 

     

 

 

 

Net income (loss) attributable to MetLife, Inc.

    1,710       (215     393         1,888  

Less: Preferred stock dividends

    52       —         —           52  
 

 

 

   

 

 

   

 

 

     

 

 

 

Net Income (loss) available to MetLife, Inc.’s common shareholders

  $ 1,658     $ (215   $ 393       $ 1,836  
 

 

 

   

 

 

   

 

 

     

 

 

 

Earnings per share

         

Net Income (loss) available to MetLife, Inc.’s common shareholders per common share:

         

Basic

  $ 1.53           $ 1.70  
 

 

 

         

 

 

 

Diluted

  $ 1.52           $ 1.68  
 

 

 

         

 

 

 

Weighted average shares of common stock outstanding per common share:

         

Basic

    1,082.1             1,082.1  
 

 

 

         

 

 

 

Diluted

    1,090.4             1,090.4  
 

 

 

         

 

 

 

See accompanying notes to unaudited pro forma condensed consolidated financial statements.

 

3


MetLife, Inc.

Unaudited Pro Forma Condensed Consolidated Statement of Operations

For the Year Ended December 31, 2016

(In millions, except per share data)

 

    Historical
MetLife, Inc.
    Brighthouse
Financial
Separation (a)
    Pro Forma
Adjustments
   

Notes

  Pro Forma
MetLife, Inc.
 

Revenues

         

Premiums

  $ 39,153     $ (1,954   $ 491     (d)   $ 37,690  

Universal life and investment-type product policy fees

    9,206       (3,724     17     (d)     5,499  

Net investment income

    19,947       (3,257     65     (d)     16,755  

Other revenues

    1,759       (75     (4   (d)     1,680  

Net investment gains (losses)

    171       77       —           248  

Net derivative gains (losses)

    (6,760     5,886       (35   (d)     (909
 

 

 

   

 

 

   

 

 

     

 

 

 

Total revenues

    63,476       (3,047     534         60,963  
 

 

 

   

 

 

   

 

 

     

 

 

 

Expenses

         

Policyholder benefits and claims

    40,804       (4,487     429     (d)     36,746  

Interest credited to policyholder account balances

    6,282       (1,107     (58   (d)     5,117  

Policyholder dividends

    1,256       (34     27     (d)     1,249  

Goodwill impairment

    260       (260     —           —    

Other expenses

    15,069       (851     230     (d), (h), (i)     14,448  
 

 

 

   

 

 

   

 

 

     

 

 

 

Total expenses

    63,671       (6,739     628         57,560  
 

 

 

   

 

 

   

 

 

     

 

 

 

Income (loss) from continuing operations before provision for income tax

    (195     3,692       (94       3,403  

Provision for income tax expense (benefit)

    (999     1,440       (33   (j)     408  
 

 

 

   

 

 

   

 

 

     

 

 

 

Income (loss) from continuing operations, net of income tax

    804       2,252       (61       2,995  

Less: Income (loss) from continuing operations attributable to noncontrolling interests

    4       —         —           4  
 

 

 

   

 

 

   

 

 

     

 

 

 

Income (loss) from continuing operations attributable to MetLife, Inc.

    800       2,252       (61       2,991  

Less: Preferred stock dividends

    103       —         —           103  
 

 

 

   

 

 

   

 

 

     

 

 

 

Income (loss) from continuing operations, net of income tax, available to MetLife, Inc.’s common shareholders

  $ 697     $ 2,252     $ (61     $ 2,888  
 

 

 

   

 

 

   

 

 

     

 

 

 

Earnings per share

         

Income (loss) from continuing operations, net of income taxes, available to MetLife, Inc.’s common shareholders per common share:

         

Basic

  $ 0.63           $ 2.62  
 

 

 

         

 

 

 

Diluted

  $ 0.63           $ 2.60  
 

 

 

         

 

 

 

Weighted average shares of common stock outstanding per common share:

         

Basic

    1,100.5             1,100.5  
 

 

 

         

 

 

 

Diluted

    1,108.5             1,108.5  
 

 

 

         

 

 

 

See accompanying notes to unaudited pro forma condensed consolidated financial statements.

 

4


MetLife, Inc.

Unaudited Pro Forma Condensed Consolidated Statement of Operations

For the Year Ended December 31, 2015

(In millions, except per share data)

 

    Historical
MetLife, Inc.
    Brighthouse
Financial
Separation (a)
    Pro Forma
Adjustments
    Notes   Pro Forma
MetLife, Inc.
 

Revenues

         

Premiums

  $ 38,545     $ (2,135   $ 243     (d)   $ 36,653  

Universal life and investment-type product policy fees

    9,507       (3,936     (4   (d)     5,567  

Net investment income

    19,281       (3,119     63     (d)     16,225  

Other revenues

    1,983       (58     (1   (d)     1,924  

Net investment gains (losses)

    597       (6     —           591  

Net derivative gains (losses)

    38       508       (18   (d)     528  
 

 

 

   

 

 

   

 

 

     

 

 

 

Total revenues

    69,951       (8,746     283         61,488  
 

 

 

   

 

 

   

 

 

     

 

 

 

Expenses

         

Policyholder benefits and claims

    38,714       (3,609     195     (d)     35,300  

Interest credited to policyholder account balances

    5,610       (1,195     (63   (d)     4,352  

Policyholder dividends

    1,388       (32     25     (d)     1,381  

Other expenses

    16,769       (1,538     128     (d), (h)     15,359  
 

 

 

   

 

 

   

 

 

     

 

 

 

Total expenses

    62,481       (6,374     285         56,392  
 

 

 

   

 

 

   

 

 

     

 

 

 

Income (loss) from continuing operations before provision for income tax

    7,470       (2,372     (2       5,096  

Provision for income tax expense (benefit)

    2,148       (661     (1   (j)     1,486  
 

 

 

   

 

 

   

 

 

     

 

 

 

Income (loss) from continuing operations, net of income tax

    5,322       (1,711     (1       3,610  

Less: Income (loss) from continuing operations attributable to noncontrolling interests

    12       —         —           12  
 

 

 

   

 

 

   

 

 

     

 

 

 

Income (loss) from continuing operations attributable to MetLife, Inc.

    5,310       (1,711     (1       3,598  

Less: Preferred stock dividends

    116       —         —           116  

Preferred stock repurchase premium

    42       —         —           42  
 

 

 

   

 

 

   

 

 

     

 

 

 

Income (loss) from continuing operations, net of income tax, available to MetLife, Inc.’s common shareholders

  $ 5,152     $ (1,711   $ (1     $ 3,440  
 

 

 

   

 

 

   

 

 

     

 

 

 

Earnings per share

         

Income (loss) from continuing operations, net of income taxes, available to MetLife, Inc.’s common shareholders per common share:

         

Basic

  $ 4.61           $ 3.08  
 

 

 

         

 

 

 

Diluted

  $ 4.57           $ 3.05  
 

 

 

         

 

 

 

Weighted average shares of common stock outstanding per common share:

         

Basic

    1,117.8             1,117.8  
 

 

 

         

 

 

 

Diluted

    1,128.3             1,128.3  
 

 

 

         

 

 

 

See accompanying notes to unaudited pro forma condensed consolidated financial statements.

 

5


MetLife, Inc.

Unaudited Pro Forma Condensed Consolidated Statement of Operations

For the Year Ended December 31, 2014

(In millions, except per share data)

 

     Historical
MetLife, Inc.
    Brighthouse
Financial
Separation (a)
    Pro Forma
Adjustments
    Notes      Pro Forma
MetLife, Inc.
 

Revenues

           

Premiums

   $ 39,067     $  (2,097   $ 436       (d)      $ 37,406  

Universal life and investment-type product policy fees

     9,946       (4,122     (129     (d)        5,695  

Net investment income

     21,153       (3,067     —            18,086  

Other revenues

     2,030       (69     5       (d)        1,966  

Net investment gains (losses)

     (197     484       —            287  

Net derivative gains (losses)

     1,317       (595     63       (d)        785  
  

 

 

   

 

 

   

 

 

      

 

 

 

Total revenues

     73,316       (9,466     375          64,225  
  

 

 

   

 

 

   

 

 

      

 

 

 

Expenses

           

Policyholder benefits and claims

     39,102       (3,709     250       (d)        35,643  

Interest credited to policyholder account balances

     6,943       (1,217     (61     (d)        5,665  

Policyholder dividends

     1,376       (23     17       (d)        1,370  

Other expenses

     17,091       (2,002     199       (d), (h)        15,288  
  

 

 

   

 

 

   

 

 

      

 

 

 

Total expenses

     64,512       (6,951     405          57,966  
  

 

 

   

 

 

   

 

 

      

 

 

 

Income (loss) from continuing operations before provision for income tax

     8,804       (2,515     (30        6,259  

Provision for income tax expense (benefit)

     2,465       (736     (10     (j)        1,719  
  

 

 

   

 

 

   

 

 

      

 

 

 

Income (loss) from continuing operations, net of income tax

     6,339       (1,779     (20        4,540  

Less: Income (loss) from continuing operations attributable to noncontrolling interests

     27       —         —            27  
  

 

 

   

 

 

   

 

 

      

 

 

 

Income (loss) from continuing operations attributable to MetLife, Inc.

     6,312       (1,779     (20        4,513  

Less: Preferred stock dividends

     122       —         —            122  
  

 

 

   

 

 

   

 

 

      

 

 

 

Income (loss) from continuing operations, net of income tax, available to MetLife, Inc.'s common shareholders

   $ 6,190     $ (1,779   $ (20      $ 4,391  
  

 

 

   

 

 

   

 

 

      

 

 

 

Earnings per share

           

Income (loss) from continuing operations, net of income taxes, available to MetLife, Inc.’s common shareholders per common share:

           

Basic

   $ 5.48            $ 3.89  
  

 

 

          

 

 

 

Diluted

   $ 5.42            $ 3.85  
  

 

 

          

 

 

 

Weighted average shares of common stock outstanding per common share:

           

Basic

     1,128.7              1,128.7  
  

 

 

          

 

 

 

Diluted

     1,142.5              1,142.5  
  

 

 

          

 

 

 

See accompanying notes to unaudited pro forma condensed consolidated financial statements.

 

6


MetLife, Inc.

Notes to the Unaudited Pro Forma

Condensed Consolidated Financial Statements

The following pro forma adjustments have been presented in the unaudited pro forma condensed consolidated financial statements.

(a) The Brighthouse Financial Separation column includes historical amounts reported by MetLife, Inc.’s Brighthouse Financial segment adjusted to exclude the impact of historical intercompany transactions between Brighthouse and MetLife, Inc. subsidiaries that had previously been eliminated in consolidation and to exclude previously allocated corporate overhead costs. The effect of the adjustments to the historical Brighthouse Financial segment information is as follows:

 

     Historical                
     Brighthouse             Brighthouse  
     Financial             Financial  
     Segment      Adjustments      Separation  
            (in millions)         

At June 30, 2017

        

Total Assets

   $ (224,933    $ 3,067      $ (221,865

Total Liabilities

   $ (208,482    $ 2,149      $ (206,332

Total Equity

   $ (16,451    $ 968      $ (15,483

For the six months ended June 30, 2017

        

Total Revenues

   $ (2,990    $ (353    $ (3,343

Total Expenses

   $ (3,380    $ 239      $ (3,141

For the year ended December 31, 2016

        

Total Revenues

   $ (3,019    $ (28    $ (3,047

Total Expenses

   $ (7,321    $ 582      $ (6,739

For the year ended December 31, 2015

        

Total Revenues

   $ (8,770    $ 24      $ (8,746

Total Expenses

   $ (7,427    $ 1,053      $ (6,374

For the year ended December 31, 2014

        

Total Revenues

   $ (9,257    $ (209    $ (9,466

Total Expenses

   $ (7,980    $ 1,029      $ (6,951

(b) Adjustment to reflect MetLife, Inc.’s retained interest of 22,996,436 shares of Brighthouse common stock at the date of the Distribution. For purposes of the unaudited pro forma condensed consolidated balance sheet, the fair value of MetLife, Inc.’s investment in Brighthouse was calculated using the number of shares retained by MetLife, Inc. multiplied by the opening trading price of Brighthouse common stock on August 7, 2017. After the Distribution, MetLife, Inc. will elect the fair value option for the investment and will record any subsequent changes in estimated fair value to net investment gains (losses) in continuing operations. The unaudited pro forma condensed consolidated statements of operations do not include adjustments for the retained interest because MetLife, Inc. cannot determine what the changes in fair value of the retained interest would have been had the Distribution occurred on January 1, 2014.

(c) Adjustments to reflect, at the time of Distribution, i) the recognition of previously deferred gains and asset basis adjustments and the related deferred tax assets and liabilities attributable to prior transactions between MetLife, Inc. and Brighthouse, ii) the recognition of a tax receivable and payable pursuant to tax agreements, iii) the recognition of a payable for certain employee matters and iv) the recognition of net deferred tax liabilities directly attributable to the Distribution.

(d) Adjustments to reflect reinsurance transactions, structured settlement assignment company transactions, distribution service fees, and investment management services fee revenue, including related outstanding balances between MetLife, Inc. and Brighthouse that were previously eliminated in consolidation, but that have a continuing impact on MetLife, Inc. post-Distribution. MetLife, Inc., as an assignment company, assumes structured settlement claim obligations and purchases annuities from Brighthouse to fund the periodic payment claim obligations. MetLife, Inc. also receives fees from Brighthouse for distribution services and investment management services. The adjustments for assignment company transactions impact other invested assets, other policy-related balances, net investment income and policyholder benefits and claims. The adjustments for distribution service fees impact universal life and investment-type product policy fees. The adjustment for investment management services fees impact other revenues.

 

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(e) Adjustment to reflect the cash dividend from Brighthouse to MetLife, Inc. that occurred on August 3, 2017 in connection with the Distribution.

(f) Adjustments to reflect the impact to MetLife, Inc. total equity from the abovementioned pro forma adjustments.

(g) The book value per common share and book value per common share, excluding accumulated other comprehensive income (loss) (“AOCI”) and foreign currency translation adjustment (“FCTA”) are calculated using the common shares outstanding at the end of the period. Equity and book value details are as follows:

 

     Historical
MetLife, Inc.
    Pro Forma
MetLife, Inc.
 
     June 30, 2017  
     (In millions)  

Equity

    

Total MetLife, Inc.’s stockholders’ equity

   $ 69,455     $ 55,948  

Less: Preferred stock

     2,066       2,066  
  

 

 

   

 

 

 

MetLife, Inc.’s common stockholders’ equity

     67,389       53,882  

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

     15,038       13,218  

Defined benefit plans adjustment, net of income tax

     (1,923     (1,905
  

 

 

   

 

 

 

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

   $ 54,274     $ 42,569  
  

 

 

   

 

 

 

Book Value

    

Book value per common share

   $ 63.37     $ 50.66  

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

     14.15       12.42  

Defined benefit plans adjustment, net of income tax

     (1.81     (1.79
  

 

 

   

 

 

 

Book value per common share, excluding AOCI other than FCTA

   $ 51.03     $ 40.03  
  

 

 

   

 

 

 

(h) Adjustments to reflect the removal of historical interest expense related to financing arrangements terminated in connection with the Distribution. In addition, the adjustments include $294 million of fees expensed in 2017 to effect the terminations. Together, these adjustments include a $323 million, $107 million, $87 million, and $89 million decrease to other expenses for the six months ended June 30, 2017 and for the years ended December 31, 2016, 2015 and 2014, respectively.

(i) Adjustments to remove non-recurring separation costs that were incurred and included in MetLife, Inc.’s historical statements of operations of $113 million for the six months ended June 30, 2017 and of $212 million for the year ended December 31, 2016. These costs were primarily related to professional services and are not expected to have a continuing impact on MetLife, Inc. post-Distribution.

(j) Adjustments for the income tax impact for pro forma adjustments at the federal statutory tax rate of 35%.

 

8