-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, GcvcKokzwc3xZ5CMW1+7BzHM01atCO056h8xPMe9fyjrK+ue8eyomjLdEOO058bo kLsiUn4lR/d8jb8KIwFYig== 0000950123-05-005527.txt : 20050503 0000950123-05-005527.hdr.sgml : 20050503 20050503170238 ACCESSION NUMBER: 0000950123-05-005527 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20050503 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050503 DATE AS OF CHANGE: 20050503 FILER: COMPANY DATA: COMPANY CONFORMED NAME: METLIFE INC CENTRAL INDEX KEY: 0001099219 STANDARD INDUSTRIAL CLASSIFICATION: INSURANCE AGENTS BROKERS & SERVICES [6411] IRS NUMBER: 134075851 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-15787 FILM NUMBER: 05795922 BUSINESS ADDRESS: STREET 1: 200 PARK AVENUE CITY: NEW YORK STATE: NY ZIP: 10166 BUSINESS PHONE: 2125782211 MAIL ADDRESS: STREET 1: 200 PARK AVENUE CITY: NEW YORK STATE: NY ZIP: 10166 8-K 1 y08496e8vk.txt FORM 8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of report (Date of earliest event reported) May 3, 2005 MetLife, Inc. - -------------------------------------------------------------------------------- (Exact Name of Registrant as Specified in Its Charter) Delaware - -------------------------------------------------------------------------------- (State or Other Jurisdiction of Incorporation) 1-15787 13-4075851 - -------------------------------------------------------------------------------- (Commission File Number) (IRS Employer Identification No.) 200 Park Avenue, New York, New York 10166-0188 - -------------------------------------------------------------------------------- (Address of Principal Executive Offices) (Zip Code) 212-578-2211 - -------------------------------------------------------------------------------- (Registrant's Telephone Number, Including Area Code) N/A - -------------------------------------------------------------------------------- (Former Name or Former Address, if Changed Since Last Report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): |_| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |_| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |_| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Item 2.02. Results of Operations and Financial Condition. On May 3, 2005, MetLife, Inc., a Delaware Corporation, issued (i) a press release announcing its results for the quarter ended March 31, 2005, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference, and (ii) a Quarterly Financial Supplement for the quarter ended March 31, 2005, a copy of which is attached hereto as Exhibit 99.2 and is incorporated herein by reference. The press release and the Quarterly Financial Supplement are furnished and not filed pursuant to Instruction B.2 of Form 8-K. Item 9.01. Financial Statements and Exhibits. (a) Not applicable (b) Not applicable (c) 99.1 Press Release of MetLife, Inc. dated May 3, 2005, announcing first quarter 2005 results. 99.2 Quarterly Financial Supplement for the quarter ended March 31, 2005. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. METLIFE, INC. By: /s/ Gwenn L. Carr ------------------------------------------ Name: Gwenn L. Carr Title: Senior Vice-President and Secretary Date: May 3, 2005 EXHIBIT INDEX ------------- Exhibit Number Exhibit - ------- ------- 99.1 Press Release of MetLife, Inc. dated May 3, 2005, announcing first quarter 2005 results. 99.2 Quarterly Financial Supplement for the quarter ended March 31, 2005. EX-99.1 2 y08496exv99w1.txt EX-99.1: PRESS RELEASE EXHIBIT 99.1 PUBLIC RELATIONS For Immediate Release News MetLife, Inc. One MetLife Plaza 27-01 Queens Plaza North Long Island City, NY 11101 (METLIFE LOGO) (SNOOPY GRAPHIC) Contacts: For Media: John Calagna (212) 578-6252 For Investors: Tracey Dedrick (212) 578-5140 METLIFE ANNOUNCES FIRST QUARTER 2005 RESULTS REPORTS RECORD NET INCOME OF $1.33 PER SHARE, A 68% INCREASE REPORTS RECORD OPERATING EARNINGS OF $1.11 PER SHARE, A 42% INCREASE UPDATES FULL YEAR 2005 OPERATING EARNINGS GUIDANCE AND PROVIDES GUIDANCE FOR 2006 ANNOUNCES FINANCING DETAILS FOR TRAVELERS ACQUISITION NEW YORK, May 3, 2005 - MetLife, Inc. (NYSE: MET) today reported first quarter 2005 net income of $987 million, or $1.33 per diluted share, compared with $598 million, or $0.79 per diluted share, for the first quarter of 2004.
For the three months ended March 31, ------------------------------------ 2005 2004 ---- ---- (Dollars in millions, except per share data) Net income $ 987 $ 598 Net income per diluted share $ 1.33 $ 0.79 Operating earnings(1) $ 821 $ 595 Operating earnings per diluted share(1) $ 1.11 $ 0.78 Book value per common share $31.15 $29.39 Book value per common share, excluding accumulated other comprehensive income per diluted share(1) $28.23 $24.86
(1) Operating earnings, operating earnings per diluted share and book value per common share (excluding accumulated other comprehensive income per diluted share) are not calculated based on generally accepted accounting principles ("GAAP"). Information regarding non-GAAP financial measures and the reconciliation to GAAP measures in this press release are provided in the non-GAAP and Other Financial Disclosures section below. FIRST QUARTER HIGHLIGHTS - - Achieved record quarterly net income of $987 million - - Earned total premiums, fees and other revenues of $7.1 billion, an 11% increase over the prior year period - - Continued strong investment spreads "MetLife had a remarkable first quarter," said Robert H. Benmosche, chairman and chief executive officer of MetLife, Inc. "We generated record quarterly net income, record operating earnings and grew our top-line results. We continue to leverage MetLife's leading market positions to identify growth opportunities in the marketplace that not only enable us to provide comprehensive financial solutions for our customers, but also generate strong returns for shareholders." Operating earnings for the first quarter of 2005 were $821 million, or $1.11 per diluted share, compared with $595 million, or $0.78 per diluted share, for the prior year period. EARNINGS GUIDANCE "We are revising our full year 2005 operating earnings guidance of between $3.50 and $3.65 per share, which we announced last December on Investor Day, to between $3.90 and $4.05 per share. Our new guidance reflects our very strong results this quarter, anticipated strong results for the remainder of 2005 and our expectation that MetLife's acquisition of Citigroup's Travelers Life & Annuity and substantially all of Citigroup's international insurance businesses will close this summer and be accretive to earnings during the second half of 2005," added Benmosche. "At this time, we are also announcing preliminary guidance for full year 2006 operating earnings, which we expect to be between $4.25 and $4.50 per share," continued Benmosche. FIRST QUARTER SEGMENT OVERVIEW Reconciliations of segment net income to operating earnings are provided in the tables that accompany this release. INSTITUTIONAL BUSINESS EARNINGS REMAIN STRONG Institutional Business operating earnings for the first quarter of 2005 were $324 million, compared with $317 million in the prior year period. Operating earnings in both periods were strong. The improvement in earnings in the segment was primarily due to growth in the business and continued strong, but lower, interest spreads in the group life and Retirement & Savings businesses. This was partially offset by higher expenses, which are largely attributable to the impact of unusually low expenses in the prior year period. Excluding the favorable prior year period underwriting results in the Retirement & Savings business, underwriting results generally improved across most products. During the quarter, Retirement & Savings net investment income grew 12% compared to the prior year period largely due to an increase in the asset base driven by favorable sales, particularly in the structured settlement business, and higher corporate joint venture income. In addition to growth in group life premiums, fees and other revenues during the quarter, non-medical health premiums, fees and other revenues increased 16% over the prior year period due 2 to continued growth in the small market and long-term care. Growth in long-term care was due, in part, to the early 2004 acquisition of TIAA-CREF's long-term care insurance business and sales growth in the Individual Business independent channels. INDIVIDUAL BUSINESS EARNINGS UP 70% Individual Business operating earnings were $318 million in the first quarter of 2005, compared with $187 million in the prior year period. Results in Individual Business were driven by higher earnings in the annuity product line due to overall growth in this product segment, as well as very strong interest spreads and unusually low expenses due to the elimination of certain expense liabilities. Variable/universal life results benefited from higher interest margins, higher fee income and lower expenses. In addition, traditional life results benefited from favorable mortality and unusually low expenses. Fees for the investment-type products within the annuity business increased, while first year premiums and deposits for the universal life business were down slightly from the prior year period. AUTO & HOME EARNINGS UP 65% Auto & Home operating earnings were $76 million in the first quarter of 2005, compared with $46 million in the prior year period. Auto & Home's results benefited from lower non-catastrophe losses compared with the prior-year period and were primarily driven by lower auto severities and homeowners frequencies. As a result, the segment's non-catastrophe combined ratio improved to 90.9% for the first quarter of 2005. INTERNATIONAL EARNINGS UP 52% International operating earnings were $67 million in the first quarter of 2005, compared with $44 million in the prior year period. Business growth in Latin America and Asia, including excellent underwriting and interest margins, contributed to a very strong quarter. INVESTMENTS During the first quarter of 2005, corporate joint venture income, bond prepayment fees and commercial mortgage prepayment fees were at higher than normal levels. TRAVELERS ACQUISITION On January 31, 2005, MetLife announced that it would finance its planned $11.5 billion purchase of Travelers Life & Annuity and substantially all of Citigroup's international insurance businesses with a variety of financial instruments. MetLife now expects to finance the acquisition as follows:
($ in billions) Cash $2.8 - $3.2 Debt $3.4 - $3.8 Mandatory convertible securities $2.0 - $2.5 Perpetual preferred securities $1.5 - $2.0 MetLife common stock issued to Citigroup $1.0
3 MetLife's final financing plan for the transaction will depend upon a number of factors including, but not limited to, market conditions, timing and valuation considerations. A registration statement relating to the securities described above has been filed with the Securities and Exchange Commission but has not become effective. Securities may not be sold and offers to buy may not be accepted prior to the time that the registration statement becomes effective. Any offering of securities covered by the registration statement will be made only by means of written prospectuses and prospectus supplements. This press release shall not constitute an offer to sell, nor the solicitation of an offer to buy, nor shall there be any sale of securities in any state in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state. Earnings Conference Call - ------------------------ MetLife will hold its first quarter earnings conference call and audio Webcast on Wednesday, May 4, 2005, 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 (612) 326-1003 (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). Non-GAAP and Other Financial Disclosures - ---------------------------------------- MetLife analyzes its performance using non-GAAP measures called operating earnings and operating earnings per diluted share. Operating earnings is defined as GAAP net income excluding net investment gains and losses, net of income taxes, adjustments related to net investment gains and losses, net of income taxes, the impact from the cumulative effect of a change in accounting, net of income taxes, and discontinued operations, net of income taxes. Scheduled settlement payments on derivative instruments not qualifying for hedge accounting treatment are included in operating earnings. Operating earnings per diluted share is calculated by dividing operating earnings as defined above by the number of weighted average diluted shares outstanding for the period indicated. MetLife believes these measures enhance the understanding and comparability of its performance by excluding net investment gains and losses, net of income taxes, and adjustments related to net investment gains and losses, net of income taxes, both of which can fluctuate significantly from period to period, the impact of the cumulative effect of a change in accounting, net of income taxes, and discontinued operations, net of income taxes, thereby highlighting the results from operations and the underlying profitability drivers of the business. Operating earnings and operating earnings per diluted share should not be viewed as substitutes for GAAP net income and GAAP net income per diluted share, respectively. 4
For the three months ended March 31, ------------------------------------ 2005 2004 --------------------- ---------------------- (Dollars in millions, except per share data) Net income $ 987 $ 1.33 $ 598 $ 0.79 Net investment (gains) losses, net of income taxes(1) 21 0.03 (76) (0.10) Adjustments related to net investment (gains) losses, net of income taxes(2) (36) (0.05) (9) (0.01) Cumulative effect of a change in accounting, net of income taxes(3) -- -- 86 0.11 Discontinued operations, net of income taxes (151) (0.20) (4) (0.01) ------ ------- ------ ------- Operating earnings $ 821 $ 1.11 $ 595 $ 0.78 ====== ======= ====== ======= Book value per common share $31.15 $29.39 Other comprehensive income 2.92 4.53 ------ ------ Book value per common share, excluding accumulated other comprehensive income $28.23 $24.86 ====== ======
(1) Net investment gains (losses), net of income taxes, include gains (losses) on sales of real estate and real estate joint ventures related to discontinued operations of $12 million and $13 million for the three months ended March 31, 2005 and 2004, respectively. Net investment gains (losses), net of income taxes, exclude gains of $16 million and $9 million for the three months ended March 31, 2005 and 2004, respectively, from scheduled settlement payments on derivative instruments not qualifying for hedge accounting treatment. (2) Adjustments related to net investment gains (losses), net of income taxes, include amortization of deferred policy acquisition costs, adjustments related to the policyholder dividend obligation and amounts allocable to certain participating contracts. (3) Cumulative effect of a change in accounting, net of income taxes, for the three months ended March 31, 2004 relates to the adoption of AICPA Statement of Position 03-1, Accounting and Reporting by Insurance Enterprises for Certain Non-Traditional Long-Duration Contracts and for Separate Accounts. In this release, MetLife provides guidance on its future earnings per share on an operating, non-GAAP basis. A reconciliation of these measures to the most directly comparable GAAP measures is not accessible on a forward-looking basis because MetLife believes it is not possible to provide a reliable forecast of net investment gains and losses, which can fluctuate significantly from period to period and may have a significant impact on GAAP net income. This release contains statements which constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to trends in the company's operations and financial results and the business and the products of the company and its subsidiaries, as well as other statements including words such as "anticipate," "believe," "plan," "estimate," "expect," "intend" and other similar expressions. Forward-looking statements are made based upon management's current expectations and beliefs concerning future developments and their potential effects on the company. Such forward-looking statements are not guarantees of future performance. Actual results may differ materially from those included in the forward-looking statements as a result of risks and uncertainties including, but not limited to the following: (i) changes in general 5 economic conditions, including the performance of financial markets and interest rates; (ii) heightened competition, including with respect to pricing, entry of new competitors and the development of new products by new and existing competitors; (iii) unanticipated changes in industry trends; (iv) the company'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; (v) deterioration in the experience of the "closed block" established in connection with the reorganization of Metropolitan Life Insurance Company; (vi) catastrophe losses; (vii) adverse results or other consequences from litigation, arbitration or regulatory investigations; (viii) regulatory, accounting or tax changes that may affect the cost of, or demand for, the company's products or services; (ix) downgrades in the company's and its affiliates' claims paying ability, financial strength or credit ratings; (x) changes in rating agency policies or practices; (xi) discrepancies between actual claims experience and assumptions used in setting prices for the company's products and establishing the liabilities for the company's obligations for future policy benefits and claims; (xii) discrepancies between actual experience and assumptions used in establishing liabilities related to other contingencies or obligations; (xiii) the effects of business disruption or economic contraction due to terrorism or other hostilities; (xiv) the company's ability to identify and consummate on successful terms any future acquisitions, and to successfully integrate acquired businesses with minimal disruption; and (xv) other risks and uncertainties described from time to time in the company's filings with the Securities and Exchange Commission, including its S-1 and S-3 registration statements. The company specifically disclaims any obligation to update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise. MetLife, Inc., through its subsidiaries and affiliates, is a leading provider of insurance and other financial services to individual and institutional customers. The MetLife companies serve individuals in approximately 13 million households in the U.S. and provide benefits to 37 million employees and family members through their plan sponsors. Outside the U.S., the MetLife companies serve approximately 9 million customers through direct insurance operations in Argentina, Brazil, Chile, China, Hong Kong, India, Indonesia, Mexico, South Korea, Taiwan and Uruguay. For more information about MetLife, please visit the company's Web site at www.metlife.com. For a copy of MetLife's Quarterly Financial Supplement, please visit www.metlife.com. # # # 6 MetLife, Inc. Consolidated Statements of Income Unaudited (Dollar amounts in millions)
Three months ended March 31, ---------------------------- 2005 2004 -------- -------- Premiums $ 6,002 $ 5,386 Universal life and investment-type product policy fees 791 663 Net investment income 3,217 2,939 Other revenues 299 313 Net investment gains (losses) (15) 116 -------- -------- Total revenues 10,294 9,417 -------- -------- Policyholder benefits and claims 5,962 5,475 Interest credited to policyholder account balances 795 738 Policyholder dividends 415 425 Other expenses 1,973 1,851 -------- -------- Total expenses 9,145 8,489 -------- -------- Income from continuing operations before provision for income taxes 1,149 928 Provision for income taxes 350 290 -------- -------- Income from continuing operations 799 638 Income from discontinued operations, net of income taxes 188 46 -------- -------- Income before cumulative effect of a change in accounting, net of income taxes 987 684 Cumulative effect of a change in accounting, net of income taxes (4) -- (86) -------- -------- Net income $ 987 $ 598 ======== ======== OPERATING EARNINGS RECONCILIATION - --------------------------------- Net income $ 987 $ 598 Net investment gains (losses) (21) 123 Minority interest - net investment gains (losses) (9) (8) Net investment gains (losses) tax benefit (provision) 9 (39) -------- -------- Net investment gains (losses), net of income taxes (1) (2) (21) 76 Adjustments related to policyholder benefits and dividends 70 31 Adjustments related to other expenses (15) (17) Adjustments related to tax benefit (provision) (19) (5) -------- -------- Adjustments related to net investment gains (losses), net of income taxes (3) 36 9 Cumulative effect of a change in accounting, net of income taxes (4) -- (86) Discontinued operations, net income of income taxes 151 4 -------- -------- Operating earnings $ 821 $ 595 ======== ========
(1) Net investment gains (losses), net of income taxes, include gains (losses) on sales of real estate and real estate joint ventures related to discontinued operations of $12 million and $13 million for the three months ended March 31, 2005 and 2004, respectively. (2) Net investment gains (losses), net of income taxes, exclude scheduled settlement payments on derivative instruments not qualifying for hedge accounting treatment of $16 million and $9 million for the three months ended March 31, 2005 and 2004, respectively. (3) Adjustments related to net investment gains (losses) include amortization of deferred policy acquisition costs, adjustments related to the policyholder dividend obligation and amounts allocable to certain participating contracts. (4) Cumulative effect of a change in accounting, net of income taxes, for the three months ended March 31, 2004 is in accordance with Statement of Position 03-1, Accounting and Reporting by Insurance Enterprises for Certain Nontraditional Long-Duration Contracts and for Separate Accounts. MetLife, Inc. Financial Highlights Unaudited (Dollar amounts in millions, except per share data or unless otherwise noted)
At or for the three months ended March 31, -------------------------- 2005 2004 ------ ------ Other Financial Data: Net income $ 987 $ 598 Operating earnings $ 821 $ 595 Total assets under management (billions) $362.7 $337.0 Individual Business Sales Data: Total first year life premiums and deposits $ 207 $ 203 Variable and Universal life first year premiums and deposits (including COLI/BOLI) $ 160 $ 158 Total annuity deposits $2,540 $3,436 Mutual fund sales $ 954 $1,045 Earnings Per Share Calculation: Weighted average common shares outstanding - diluted 739.6 760.3 Operating earnings per share - diluted $ 1.11 $ 0.78 Net income per share - diluted $ 1.33 $ 0.79
MetLife, Inc. Balance Sheet Data March 31, 2005 (Unaudited) and December 31, 2004 (Audited) (Dollar amounts in millions)
At At March 31, December 31, 2005 2004 --------- --------- Balance Sheet Data: General account assets $ 276,885 $ 270,039 Separate account assets 85,786 86,769 --------- --------- Total assets $ 362,671 $ 356,808 ========= ========= Policyholder liabilities (including amounts of closed block) $ 196,443 $ 194,027 Short-term debt 1,120 1,445 Long-term debt 7,414 7,412 Other liabilities 48,870 44,331 Separate account liabilities 85,786 86,769 --------- --------- Total liabilities 339,633 333,984 --------- --------- Common stock, at par value 8 8 Capital in excess of par value 15,043 15,037 Retained earnings 7,595 6,608 Treasury stock (1,764) (1,785) Accumulated other comprehensive income 2,156 2,956 --------- --------- Total stockholders' equity 23,038 22,824 --------- --------- Total liabilities and stockholders' equity $ 362,671 $ 356,808 ========= =========
MetLife, Inc. Reconciliations of Net Income to Operating Earnings Unaudited (Dollar amounts in millions)
Three months ended March 31, ---------------------------- 2005 2004 ----- ----- Total Institutional Operations Net income (loss) $ 349 $ 310 Net investment gains (losses), net of income taxes 2 64 Adjustments related to net investment gains (losses), net of income taxes 23 (11) Cumulative effect of a change in accounting, net of income taxes -- (60) ----- ----- Operating earnings (loss) $ 324 $ 317 ===== ===== Institutional Operations Group Life Net income (loss) $ 90 $ 94 Net investment gains (losses), net of income taxes (10) 17 ----- ----- Operating earnings (loss) $ 100 $ 77 ===== ===== Retirement & Savings Net income (loss) $ 185 $ 170 Net investment gains (losses), net of income taxes 13 32 Adjustments related to net investment gains (losses), net of income taxes 11 -- Cumulative effect of a change in accounting, net of income taxes -- (40) ----- ----- Operating earnings (loss) $ 161 $ 178 ===== ===== Non-Medical Health & Other Net income (loss) $ 74 $ 46 Net investment gains (losses), net of income taxes (1) 15 Adjustments related to net investment gains (losses), net of income taxes 12 (11) Cumulative effect of a change in accounting, net of income taxes -- (20) ----- ----- Operating earnings (loss) $ 63 $ 62 ===== ===== Total Individual Operations Net income (loss) $ 365 $ 189 Net investment gains (losses), net of income taxes 32 (19) Adjustments related to net investment gains (losses), net of income taxes 15 21 ----- ----- Operating earnings (loss) $ 318 $ 187 ===== ===== Individual Operations Traditional Life Net income (loss) $ 169 $ 71 Net investment gains (losses), net of income taxes 45 (15) Adjustments related to net investment gains (losses), net of income taxes 15 22 ----- ----- Operating earnings (loss) $ 109 $ 64 ===== ===== Variable & Universal Life Net income (loss) $ 41 $ 15 Net investment gains (losses), net of income taxes (8) 3 Adjustments related to net investment gains (losses), net of income taxes (2) (1) Cumulative effect of a change in accounting, net of income taxes -- (11) ----- ----- Operating earnings (loss) $ 51 $ 24 ===== ===== Annuities Net income (loss) $ 150 $ 98 Net investment gains (losses), net of income taxes 1 2 Adjustments related to net investment gains (losses), net of income taxes 2 -- Cumulative effect of a change in accounting, net of income taxes -- 11 ----- ----- Operating earnings (loss) $ 147 $ 85 ===== ===== Other Net income (loss) $ 5 $ 5 Net investment gains (losses), net of income taxes (6) (9) ----- ----- Operating earnings (loss) $ 11 $ 14 ===== ===== Total Auto & Home Net income (loss) $ 76 $ 46 Net investment gains (losses), net of income taxes -- -- ----- ----- Operating earnings (loss) $ 76 $ 46 ===== ===== Auto & Home Auto Net income (loss) $ 43 $ 22 Net investment gains (losses), net of income taxes -- -- ----- ----- Operating earnings (loss) $ 43 $ 22 ===== =====
Three months ended March 31, ---------------------------- 2005 2004 ----- ----- Homeowners Net income (loss) $ 31 $ 22 Net investment gains (losses), net of income taxes -- -- ----- ----- Operating earnings (loss) $ 31 $ 22 ===== ===== Other Net income (loss) $ 2 $ 2 Net investment gains (losses), net of income taxes -- -- ----- ----- Operating earnings (loss) $ 2 $ 2 ===== ===== International Net income (loss) $ 76 $ 36 Net investment gains (losses), net of income taxes -- 20 Adjustments related to net investment gains (losses), net of income taxes 9 2 Cumulative effect of a change in accounting, net of income taxes -- (30) ----- ----- Operating earnings (loss) $ 67 $ 44 ===== ===== Reinsurance Net income (loss) $ 31 $ 29 Net investment gains (losses), net of income taxes 15 9 Adjustments related to net investment gains (losses), net of income taxes (11) (3) Cumulative effect of a change in accounting, net of income taxes -- 5 ----- ----- Operating earnings (loss) $ 27 $ 18 ===== =====
EX-99.2 3 y08496exv99w2.txt EX-99.2: QUARTERLY FINANCIAL SUPPLEMENT Exhibit 99.2 (METLIFE LOGO) FIRST QUARTER FINANCIAL SUPPLEMENT MARCH 31, 2005 (SNOOPY GRAPHIC) (GRAPHIC OF THE NUMBER 1) [METLIFE LOGO] - -------------------------------------------------------------------------------- TABLE OF CONTENTS HIGHLIGHTS CORPORATE OVERVIEW 2 METLIFE, INC. CONSOLIDATED BALANCE SHEETS 3 CONSOLIDATED STATEMENTS OF OPERATING EARNINGS 4 CONSOLIDATING BALANCE SHEET 5 CONSOLIDATING STATEMENT OF OPERATING EARNINGS 6 SUMMARY OF SEGMENT OPERATING EARNINGS 8 INSTITUTIONAL OPERATIONS STATEMENTS OF OPERATING EARNINGS 9 PREMIUMS, FEES AND OTHER REVENUES BY PRODUCT AND ADDITIONAL STATISTICAL INFORMATION 13 FUTURE POLICY BENEFITS AND POLICYHOLDER ACCOUNT BALANCES AND SEPARATE ACCOUNT LIABILITIES 14 OTHER EXPENSES BY MAJOR CATEGORY 15 SPREADS BY PRODUCT 16 INDIVIDUAL OPERATIONS STATEMENTS OF OPERATING EARNINGS 17 PREMIUMS AND DEPOSITS BY PRODUCT AND MUTUAL FUND SALES 22 ADDITIONAL STATISTICAL INFORMATION 23 FUTURE POLICY BENEFITS AND POLICYHOLDER ACCOUNT BALANCES AND SEPARATE ACCOUNT LIABILITIES 24 INSURANCE EXPENSES AND OTHER EXPENSES BY MAJOR CATEGORY 25 SPREADS BY PRODUCT 26 AUTO & HOME OPERATIONS STATEMENTS OF OPERATING EARNINGS 27 WRITTEN PREMIUMS BY PRODUCT AND SELECTED FINANCIAL INFORMATION AND SUPPLEMENTAL DATA 31 INTERNATIONAL OPERATIONS STATEMENT OF OPERATING EARNINGS 32 REINSURANCE OPERATIONS STATEMENT OF OPERATING EARNINGS 33 PRE-TAX AND PRE-MINORITY INTEREST OPERATING EARNINGS BY REGION AND RESERVES BY REGION 34 CORPORATE, OTHER & ELIMINATIONS STATEMENT OF OPERATING EARNINGS 35 METLIFE, INC. INVESTMENT RESULTS BY ASSET CATEGORY AND ANNUALIZED YIELDS 36 FIXED MATURITIES AND EQUITY SECURITIES GROSS UNREALIZED GAINS AND LOSSES AGING SCHEDULE 38 SUMMARY OF FIXED MATURITIES AVAILABLE FOR SALE BY SECTOR AND QUALITY DISTRIBUTION, AND SUMMARY OF COMMERCIAL MORTGAGE LOANS BY REGION AND PROPERTY TYPE 39 SUMMARY OF REAL ESTATE, SUMMARY OF MORTGAGES AND CONSUMER LOANS AND DISTRIBUTION OF ASSETS UNDER MANAGEMENT 40 OTHER INFORMATION COMPANY RATINGS 41
NOTE: THE QUARTERLY FINANCIAL SUPPLEMENT ("QFS") INCLUDES FINANCIAL MEASURES, OPERATING EARNINGS AND OPERATING EARNINGS PER DILUTED SHARE, THAT ARE NOT BASED ON GENERALLY ACCEPTED ACCOUNTING PRINCIPLES ("GAAP"). OPERATING EARNINGS IS DEFINED AS GAAP NET INCOME EXCLUDING NET INVESTMENT GAINS AND LOSSES, NET OF INCOME TAXES, ADJUSTMENTS RELATED TO NET INVESTMENT GAINS AND LOSSES, NET OF INCOME TAXES, THE IMPACT FROM THE CUMULATIVE EFFECT OF A CHANGE IN ACCOUNTING, NET OF INCOME TAXES, AND DISCONTINUED OPERATIONS, NET OF INCOME TAXES. SCHEDULED SETTLEMENT PAYMENTS ON DERIVATIVE INSTRUMENTS NOT QUALIFYING FOR HEDGE ACCOUNTING TREATMENT ARE INCLUDED IN OPERATING EARNINGS. OPERATING EARNINGS PER DILUTED SHARE IS CALCULATED BY DIVIDING OPERATING EARNINGS AS DEFINED ABOVE BY THE NUMBER OF WEIGHTED AVERAGE DILUTED SHARES OUTSTANDING FOR THE PERIOD INDICATED. METLIFE BELIEVES THESE MEASURES ENHANCE THE UNDERSTANDING AND COMPARABILITY OF ITS PERFORMANCE BY EXCLUDING NET INVESTMENT GAINS AND LOSSES, NET OF INCOME TAXES, AND ADJUSTMENTS RELATED TO NET INVESTMENT GAINS AND LOSSES, NET OF INCOME TAXES, BOTH OF WHICH CAN FLUCTUATE SIGNIFICANTLY FROM PERIOD TO PERIOD, THE IMPACT OF THE CUMULATIVE EFFECT OF A CHANGE IN ACCOUNTING, NET OF INCOME TAXES, AND DISCONTINUED OPERATIONS, NET OF INCOME TAXES, THEREBY HIGHLIGHTING THE RESULTS FROM OPERATIONS AND THE UNDERLYING PROFITABILITY DRIVERS OF THE BUSINESS. OPERATING EARNINGS AND OPERATING EARNINGS PER DILUTED SHARE SHOULD NOT BE VIEWED AS SUBSTITUTES FOR GAAP NET INCOME AND GAAP NET INCOME PER DILUTED SHARE, RESPECTIVELY. RECONCILIATIONS OF OPERATING EARNINGS TO GAAP NET INCOME AND OPERATING EARNINGS PER DILUTED SHARE TO GAAP NET INCOME PER DILUTED SHARE, THE MOST DIRECTLY COMPARABLE GAAP MEASURES, ARE INCLUDED IN THE QFS AND IN METLIFE'S EARNINGS PRESS RELEASE, DATED MAY 3, 2005, FOR THE QUARTER ENDED MARCH 31, 2005, WHICH ARE AVAILABLE AT WWW.METLIFE.COM. 1 [METLIFE LOGO] - -------------------------------------------------------------------------------- CORPORATE OVERVIEW Unaudited (Dollars and shares in millions, except per share data)
For the Three Months Ended ------------------------------------------------------------------ March 31, June 30, September 30, December 31, March 31, 2004 2004 2004 2004 2005 ------------------------------------------------------------------ Net income (1) $ 598 $ 954 $ 695 $ 511 $ 987 Net investment gains (losses) 123 157 178 (214) (21) Minority interest - net investment gains (losses) (8) (8) 2 5 (9) Net investment gains (losses) tax benefit (provision) (39) (47) (62) 71 9 ---------------------------------------------------------------- Net investment gains (losses), net of income taxes (2) (3) (4) 76 102 118 (138) (21) Adjustments related to policyholder benefits and dividends 31 116 (74) (9) 70 Adjustments related to other expenses (17) (5) 6 5 (15) Adjustments related to tax benefit (provision) (5) (39) 24 1 (19) ---------------------------------------------------------------- Adjustments related to net investment gains (losses), net of income taxes (5) 9 72 (44) (3) 36 Cumulative effect of a change in accounting, net of income taxes (6) (86) 0 0 0 0 Discontinued operations, net of income taxes 4 14 5 (4) 151 ---------------------------------------------------------------- Operating earnings $ 595 $ 766 (8) $ 616 (9) $ 656 $ 821 ================================================================ Net income per share - diluted $ 0.79 $ 1.26 $ 0.92 $ 0.68 $ 1.33 Net investment gains (losses), net of income taxes 0.10 0.13 0.15 (0.18) (0.03) Adjustments related to net investment gains (losses), net of income taxes 0.01 0.10 (0.06) (0.01) 0.05 Cumulative effect of a change in accounting, net of income taxes (0.11) 0.00 0.00 0.00 0.00 Discontinued operations, net of income taxes 0.01 0.02 0.01 (0.01) 0.20 ---------------------------------------------------------------- Operating earnings per share - diluted $ 0.78 $ 1.01 $ 0.82 $ 0.88 $ 1.11 ================================================================ Weighted average common shares outstanding - diluted 760.3 758.0 753.4 747.7 739.6 Book value per common share (actual shares outstanding) $ 29.58 $ 28.53 $ 30.86 $ 31.16 $31.43 Book value per common share, excluding accumulated other comprehensive income (actual shares outstanding) $ 25.03 $ 26.24 $ 27.11 $ 27.12 $28.48 Book value per common share - diluted $ 29.39 $ 28.23 $ 30.50 $ 30.53 $31.15 Book value per common share, excluding accumulated other comprehensive income - diluted $ 24.86 $ 25.96 $ 26.79 $ 26.57 $28.23
For the Three Months Ended ----------------------------------------------------------------- March 31, June 30, September 30, December 31, March 31, 2004 2004 2004 2004 2005 --------- -------- ------------- ------------ --------- Shares outstanding, beginning of period 757.2 755.4 750.0 744.5 732.5 Treasury stock (1.8) (5.4) (5.5) (12.0) 0.6 ------------------------------------------------------------ Shares outstanding, end of period 755.4 750.0 744.5 732.5 733.1 Weighted average common shares outstanding - basic 757.2 754.5 749.2 742.3 734.0 Dilutive effect of convertible securities 0.0 0.0 0.0 0.0 0.0 Dilutive effect of stock options 3.1 3.5 4.2 5.4 5.6 ------------------------------------------------------------ Weighted average common shares outstanding - diluted 760.3 758.0 753.4 747.7 739.6 ============================================================ Policyholder Trust Shares 347.2 335.0 325.1 321.3 315.4 SUPPLEMENTAL DATA Adjusted long-term debt to total capital excluding accumulated other comprehensive income (7) 20.5% 21.9% 22.8% 25.2% 24.2%
(1) Presentation of net income throughout the QFS differs from other public filings with respect to discontinued operations and scheduled settlement payments on derivatives not qualifying for hedge accounting treatment. Presentation of discontinued operations in other public filings is in accordance with the Statement of Financial Accounting Standards ("SFAS") No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets. Presentation of scheduled settlement payments on derivatives not qualifying for hedge accounting treatment in other public filings is in accordance with SFAS No. 133, Accounting for Derivative Instruments and Hedging Activities. (2) Net investment gains (losses), net of income taxes, excludes scheduled settlement payments on derivative instruments not qualifying for hedge accounting treatment of $9 million, $14 million, $8 million, $2 million and $16 million, for the three months ended March 31, 2004, June 30, 2004, September 30, 2004, December 31, 2004 and March 31, 2005, respectively. For QFS purposes, these settlements are included in net investment income. (3) Net investment gains (losses), net of income taxes, from real estate and real estate joint ventures include discontinued operations of $13 million, $85 million, ($10) million, $2 million and $12 million, for the three months ended March 31, 2004, June 30, 2004, September 30, 2004, December 31, 2004 and March 31, 2005, respectively. (4) Net investment gains (losses), net of income taxes, for the three months ended December 31, 2004 includes a charge of $17 million related to the value of an embedded derivative associated with a funds withheld reinsurance treaty that was converted to a coinsurance agreement. (5) Adjustments related to net investment gains (losses), net of income taxes, include amortization of deferred policy acquisition costs, adjustments to the policyholder dividend obligation and amounts allocable to certain participating contracts. (6) The cumulative effect of a change in accounting, net of income taxes, for the period ended March 31, 2004, is in accordance with AICPA Statement of Position 03-1, Accounting and Reporting by Insurance Enterprises for Certain Nontraditional Long-Duration Contracts and for Separate Accounts. In September 2004, an AICPA Technical Practice Aid ("SOP 03-1 Technical Practice Aid") was issued which clarifies recognition of certain liabilities to comply with SOP 03-1. The cumulative effect of a change in accounting, net of income taxes, for the three months ended March 31, 2004 was adjusted by a $72 million benefit in accordance with the SOP 03-1 Technical Practice Aid. (7) Adjusted long-term debt at March 31, 2004, June 30, 2004, September 30, 2004, December 31, 2004 and March 31, 2005 consists of $4,907 million, $5,503 million, $6,004 million, $6,669 million and $6,657 million of long-term debt, respectively, and $36 million, $36 million, $36 million, $111 million and $113 million of short-term debt, respectively. Total capital is defined as equity less accumulated other comprehensive income plus adjusted long-term debt and company obligated mandatorily redeemable capital securities. (8) Operating earnings and net income for the three months ended June 30, 2004 includes a $32 million charge, net of income taxes ($0.04 per diluted share), from a contribution to the MetLife Foundation made by Metropolitan Life Insurance Company, a $31 million benefit, net of income taxes ($0.04 per diluted share), from a reduction of a previously established premium tax liability and a $105 million benefit ($0.14 per diluted share), related to a previously disclosed resolution of an IRS audit. (9) Operating earnings for the three months ended September 30, 2004 includes a $9 million benefit ($0.01 per diluted share), from a revision of the estimate of income taxes for 2003. 2 [METLIFE LOGO] - -------------------------------------------------------------------------------- METLIFE, INC. CONSOLIDATED BALANCE SHEETS
As of ------------------------------------------------------------- March 31, June 30, September 30, December 31, March 31, Unaudited (Dollars in millions) 2004 2004 2004 2004 2005 - ------------------------------------------------------------------------------------------------------------------------ ASSETS (1) Fixed maturities, at fair value $ 174,100 $ 170,192 $ 176,091 $ 176,763 $ 182,653 Equity securities, at fair value 1,741 1,715 1,869 2,188 2,516 Mortgage and consumer loans 26,562 28,118 29,620 32,406 31,977 Policy loans 8,758 8,766 8,801 8,899 8,953 Real estate and real estate joint ventures 4,696 4,150 4,263 4,233 4,306 Other limited partnership interests 2,549 2,806 2,846 2,907 3,051 Short-term investments 1,987 2,077 2,451 2,663 2,551 Other invested assets 5,083 5,108 4,394 4,926 4,960 ------------------------------------------------------------- Total Investments 225,476 222,932 230,335 234,985 240,967 Cash and cash equivalents 3,111 4,424 3,592 4,051 3,925 Accrued investment income 2,337 2,330 2,491 2,338 2,433 Premiums and other receivables 7,397 7,370 7,089 6,696 7,515 Deferred policy acquisition costs 12,961 13,828 13,920 14,336 14,798 Assets of subsidiaries held-for-sale 159 196 217 379 0 Other assets 7,236 7,185 7,352 7,254 7,247 Separate account assets 78,336 79,747 81,181 86,769 85,786 ------------------------------------------------------------- Total Assets $ 337,013 $ 338,012 $ 346,177 $ 356,808 $ 362,671 ============================================================= LIABILITIES AND EQUITY (1) LIABILITIES ----------- Future policy benefits $ 96,333 $ 95,731 $ 98,197 $ 100,159 $ 100,630 Policyholder account balances 77,981 79,943 81,798 83,570 85,802 Other policyholder funds 6,608 6,721 6,812 6,984 7,226 Policyholder dividends payable 986 1,064 1,125 1,071 1,048 Policyholder dividend obligation 2,667 1,330 2,161 2,243 1,737 Short-term debt 3,068 3,218 1,566 1,445 1,120 Long-term debt 5,707 6,226 6,695 7,412 7,414 Shares subject to mandatory redemption 277 277 277 278 278 Liabilities of subsidiaries held-for-sale 41 65 80 240 0 Current income tax payable 637 751 501 421 31 Deferred income tax payable 2,889 1,972 2,468 2,473 2,414 Payables under securities loaned transactions 28,045 28,132 28,662 28,678 31,713 Other liabilities 11,090 11,437 11,679 12,241 14,434 Separate account liabilities 78,336 79,747 81,181 86,769 85,786 ------------------------------------------------------------- Total Liabilities 314,665 316,614 323,202 333,984 339,633 ------------------------------------------------------------- EQUITY ------ Common stock, at par value 8 8 8 8 8 Additional paid-in capital 15,001 15,013 15,027 15,037 15,043 Retained earnings 4,791 5,745 6,440 6,608 7,595 Treasury stock (896) (1,085) (1,294) (1,785) (1,764) Accumulated other comprehensive income 3,444 1,717 2,794 2,956 2,156 ------------------------------------------------------------- Total Equity 22,348 21,398 22,975 22,824 23,038 ------------------------------------------------------------- Total Liabilities and Stockholders' Equity $ 337,013 $ 338,012 $ 346,177 $ 356,808 $ 362,671 =============================================================
(1) Certain amounts in prior periods presented throughout the QFS have been reclassified to conform with current period presentation. 3 [METLIFE LOGO] - -------------------------------------------------------------------------------- METLIFE, INC. CONSOLIDATED STATEMENTS OF OPERATING EARNINGS
For the Three Months Ended ------------------------------------------------------------ March 31, June 30, September 30, December 31, March 31, Unaudited (Dollars in millions) 2004 2004 2004 2004 2005 - ------------------------------------------------------------------------------------------------------------------------------ REVENUES Premiums (1) $5,386 $5,337 $5,679 $ 5,802 $ 6,002 Universal life and investment-type product policy fees (1) 663 721 737 747 791 Investment income, net 3,000 3,157 3,107 3,346 3,280 Other revenues 313 283 292 310 299 ---------------------------------------------------------- 9,362 9,498 9,815 10,205 10,372 ---------------------------------------------------------- EXPENSES Policyholder benefits and dividends (1) 5,931 5,914 6,260 6,291 6,447 Interest credited to policyholder account balances 738 743 739 778 795 Interest expense 99 108 113 116 119 Other expenses 1,728 1,754 1,829 2,068 1,830 ---------------------------------------------------------- 8,496 8,519 8,941 9,253 9,191 ---------------------------------------------------------- Operating earnings before provision for income taxes 866 979 874 952 1,181 Provision for income taxes 271 213 258 296 360 ---------------------------------------------------------- OPERATING EARNINGS $ 595 $ 766(4) $ 616 (5) $ 656 $ 821 ========================================================== NET INCOME RECONCILIATION - ---------------------------------------------------------------- Operating earnings $ 595 $ 766 $ 616 $ 656 $ 821 Net investment gains (losses) 123 157 178 (214) (21) Minority interest - net investment gains (losses) (8) (8) 2 5 (9) Net investment gains (losses) tax benefit (provision) (39) (47) (62) 71 9 ---------------------------------------------------------- Net investment gains (losses), net of income taxes 76 102 118 (138) (21) Adjustments related to policyholder benefits and dividends 31 116 (74) (9) 70 Adjustments related to other expenses (17) (5) 6 5 (15) Adjustments related to tax benefit (provision) (5) (39) 24 1 (19) ---------------------------------------------------------- Adjustments related to net investment gains (losses), net of income taxes (2) 9 72 (44) (3) 36 Cumulative effect of a change in accounting, net of income taxes (3) (86) 0 0 0 0 Discontinued operations, net of income taxes 4 14 5 (4) 151 ---------------------------------------------------------- Net income $ 598 $ 954 $ 695 $ 511 $ 987 ==========================================================
(1) Certain amounts in prior periods presented throughout the QFS have been reclassified to conform with current period presentation. (2) Adjustments related to net investment gains (losses), net of income taxes, includes amortization of deferred policy acquisition costs, adjustments to the policyholder dividend obligation, and amounts allocable to certain participating contracts. (3) The cumulative effect of a change in accounting, net of income taxes, for the period ended March 31, 2004, is in accordance with AICPA Statement of Position 03-1, Accounting and Reporting by Insurance Enterprises for Certain Nontraditional Long-Duration Contracts and for Separate Accounts. (4) Operating earnings and net income for the three months ended June 30, 2004 includes a $32 million charge, net of income taxes, from a contribution to the MetLife Foundation made by Metropolitan Life Insurance Company, a $31 million benefit, net of income taxes, from a reduction of a previously established premium tax liability and a $105 million benefit related to a previously disclosed resolution of an IRS audit. (5) Operating earnings for the three months ended September 30, 2004 includes a $9 million benefit, from a revision of the estimate of income taxes for 2003. 4 \ [METLIFE LOGO] - -------------------------------------------------------------------------------- METLIFE, INC. CONSOLIDATING BALANCE SHEET AT MARCH 31, 2005
Corporate, Auto & Other & Unaudited (Dollars in millions) Consolidated Institutional Individual Home International Reinsurance Eliminations - ----------------------------------------------------------------------------------------------------------------------------------- ASSETS Total investments $ 240,967 $ 87,208 $ 110,872 $4,155 $ 8,288 $ 11,343 $ 19,101 Cash and cash equivalents 3,925 (143) 1,303 (53) (167) 194 2,791 Accrued investment income 2,433 712 1,090 64 110 87 370 Premiums and other receivables 7,515 2,428 3,953 796 387 934 (983) Deferred policy acquisition costs 14,798 998 9,589 178 1,356 2,677 0 Assets of subsidiaries held-for-sale 0 0 0 0 0 0 0 Other assets 7,247 1,578 2,343 578 349 150 2,249 Separate account assets 85,786 35,521 49,148 0 1,104 13 0 ------------------------------------------------------------------------------------------ Total Assets $ 362,671 $ 128,302 $ 178,298 $5,718 $ 11,427 $ 15,398 $ 23,528 ========================================================================================== LIABILITIES AND EQUITY LIABILITIES - ----------- Future policy benefits $ 100,630 $35,435 $ 53,899 $3,196 $ 4,907 $ 4,517 ($ 1,324) Policyholder account balances 85,802 34,142 43,907 0 2,749 5,007 (3) Other policyholder funds 7,226 2,188 2,621 (4) 686 1,650 85 Policyholder dividends payable 1,048 152 894 0 2 9 (9) Policyholder dividend obligation 1,737 0 1,737 0 0 0 0 Short-term debt 1,120 0 1 0 0 0 1,119 Long-term debt 7,414 (2) 466 0 34 480 6,436 Shares subject to mandatory redemption 278 0 0 0 0 159 119 Liabilities of subsidiaries held-for-sale 0 0 0 0 0 0 0 Current income tax payable 31 117 (319) 18 (35) (47) 297 Deferred income tax payable 2,414 (57) 1,368 17 76 794 216 Payables under securities loaned transactions 31,713 10,626 13,664 129 0 0 7,294 Other liabilities 14,434 2,517 2,783 1,069 576 1,201 6,288 Separate account liabilities 85,786 35,521 49,148 0 1,104 13 0 ------------------------------------------------------------------------------------------ Total Liabilities 339,633 120,639 170,169 4,425 10,099 13,783 20,518 EQUITY - ------ Common stock, at par value 8 0 0 0 0 0 8 Allocated equity (1) 22,638 6,589 7,624 1,167 1,077 1,446 4,735 Treasury stock (1,764) 0 0 0 0 0 (1,764) Accumulated other comprehensive income 2,156 1,074 505 126 251 169 31 ------------------------------------------------------------------------------------------ Total Stockholders' Equity 23,038 7,663 8,129 1,293 1,328 1,615 3,010 ------------------------------------------------------------------------------------------ Total Liabilities and Stockholders' Equity $ 362,671 $ 128,302 $ 178,298 $5,718 $ 11,427 $ 15,398 $ 23,528 ==========================================================================================
(1) Allocated equity includes additional paid-in capital and retained earnings. 5 [METLIFE LOGO] - -------------------------------------------------------------------------------- METLIFE, INC. CONSOLIDATING STATEMENT OF OPERATING EARNINGS FOR THE THREE MONTHS ENDED MARCH 31, 2005
Corporate, Other Unaudited (Dollars in millions) Consolidated Institutional Individual Auto & Home International Reinsurance & Eliminations - ----------------------------------------------------------------------------------------------------------------------------------- REVENUES Premiums $ 6,002 $ 2,843 $ 1,021 $ 728 $ 502 $ 907 $ 1 Universal life and investment-type product policy fees 791 187 485 0 119 0 0 Investment income, net 3,280 1,215 1,561 43 150 161 150 Other revenues 299 156 117 9 3 11 3 ------------------------------------------------------------------------------------ 10,372 4,401 3,184 780 774 1,079 154 ------------------------------------------------------------------------------------ EXPENSES Policyholder benefits and dividends 6,447 3,133 1,635 478 446 750 5 Interest credited to policyholder account balances 795 286 407 0 47 55 0 Capitalization of deferred policy acquisition costs (767) (64) (254) (103) (125) (221) 0 Amortization of deferred policy acquisition costs 528 32 186 111 56 143 0 Other expenses 2,188 525 733 191 246 312 181 ------------------------------------------------------------------------------------ 9,191 3,912 2,707 677 670 1,039 186 ------------------------------------------------------------------------------------ Operating earnings before provision (benefit)for income taxes 1,181 489 477 103 104 40 (32) Provision (benefit) for income taxes 360 165 159 27 37 13 (41) ------------------------------------------------------------------------------------ OPERATING EARNINGS $ 821 $ 324 $ 318 $ 76 $ 67 $ 27 $ 9 ==================================================================================== NET INCOME RECONCILIATION - ------------------------------------- Operating earnings $ 821 $ 324 $ 318 $ 76 $ 67 $ 27 $ 9 Net investment gains (losses) (21) 5 59 0 0 28 (113) Minority interest - net investment gains (losses) (9) 0 (4) 0 0 (5) 0 Net investment gains (losses) tax benefit (provision) 9 (3) (23) 0 0 (8) 43 ------------------------------------------------------------------------------------ Net investment gains (losses), net of income taxes (21) 2 32 0 0 15 (70) Adjustments related to policyholder benefits and dividends 70 35 21 0 14 0 0 Adjustments related to other expenses (15) 0 2 0 0 (17) 0 Adjustments related to tax benefit (provision) (19) (12) (8) 0 (5) 6 0 ------------------------------------------------------------------------------------ Adjustments related to net investment gains (losses), net of income taxes (1) 36 23 15 0 9 (11) 0 Cumulative effect of a change in accounting, net of income taxes 0 0 0 0 0 0 0 Discontinued operations, net of income taxes 151 0 0 0 0 0 151 ------------------------------------------------------------------------------------ Net income $ 987 $ 349 $ 365 $ 76 $ 76 $ 31 $ 90 ====================================================================================
(1) Adjustments related to net investment gains (losses), net of income taxes, include amortization of deferred policy acquisition costs, adjustments to the policyholder dividend obligation and amounts allocable to certain participating contracts. 6 [METLIFE LOGO] - -------------------------------------------------------------------------------- METLIFE, INC. CONSOLIDATING STATEMENT OF OPERATING EARNINGS FOR THE THREE MONTHS ENDED MARCH 31, 2004
Corporate, Other Unaudited (Dollars in millions) Consolidated Institutional Individual Auto & Home International Reinsurance & Eliminations - ----------------------------------------------------------------------------------------------------------------------------------- REVENUES Premiums (1) $ 5,386 $ 2,454 $ 978 $ 737 $ 402 $ 816 ($ 1) Universal life and investment-type product policy fees (1) 663 155 425 0 83 0 0 Investment income, net 3,000 1,096 1,521 46 123 130 84 Other revenues 313 164 117 9 4 12 7 ------------------------------------------------------------------------------------ 9,362 3,869 3,041 792 612 958 90 ------------------------------------------------------------------------------------ EXPENSES Policyholder benefits and dividends (1) 5,931 2,712 1,644 536 378 659 2 Interest credited to policyholder account balances 738 227 423 0 37 51 0 Capitalization of deferred policy acquisition costs (764) (61) (293) (108) (71) (231) 0 Amortization of deferred policy acquisition costs 464 25 166 114 31 128 0 Other expenses 2,127 487 820 192 172 324 132 ------------------------------------------------------------------------------------ 8,496 3,390 2,760 734 547 931 134 ------------------------------------------------------------------------------------ Operating earnings before provision (benefit) for income taxes 866 479 281 58 65 27 (44) Provision (benefit) for income taxes 271 162 94 12 21 9 (27) ------------------------------------------------------------------------------------ OPERATING EARNINGS $ 595 $ 317 $ 187 $ 46 $ 44 $ 18 ($ 17) ==================================================================================== NET INCOME RECONCILIATION - -------------------------------------- Operating earnings $ 595 $ 317 $ 187 $ 46 $ 44 $ 18 ($ 17) Net investment gains (losses) 123 100 (28) 0 26 21 4 Minority interest - net investment gains (losses) (8) 0 0 0 0 (8) 0 Net investment gains (losses) tax benefit (provision) (39) (36) 9 0 (6) (4) (2) ------------------------------------------------------------------------------------ Net investment gains (losses), net of income taxes 76 64 (19) 0 20 9 2 Adjustments related to policyholder benefits and dividends 31 (17) 45 0 3 0 0 Adjustments related to other expenses (17) 0 (13) 0 0 (4) 0 Adjustments related to tax benefit (provision) (5) 6 (11) 0 (1) 1 0 ------------------------------------------------------------------------------------ Adjustments related to net investment gains (losses), net of income taxes (2) 9 (11) 21 0 2 (3) 0 Cumulative effect of a change in accounting, net of income taxes (3) (86) (60) 0 0 (30) 5 (1) Discontinued operations, net of income taxes 4 0 0 0 0 0 4 ------------------------------------------------------------------------------------ Net income $ 598 $ 310 $ 189 $ 46 $ 36 $ 29 ($ 12) ====================================================================================
(1) Certain amounts in prior periods presented throughout the QFS have been reclassified to conform with current period presentation. (2) Adjustments related to net investment gains (losses), net of income taxes, include amortization of deferred policy acquisition costs, adjustments to the policyholder dividend obligation and amounts allocable to certain participating contracts. (3) The cumulative effect of a change in accounting, net of income taxes, for the period ended March 31, 2004, is in accordance with AICPA Statement of Position 03-1, Accounting and Reporting by Insurance Enterprises for Certain Nontraditional Long-Duration Contracts and for Separate Accounts. 7 [METLIFE LOGO] - -------------------------------------------------------------------------------- SUMMARY OF SEGMENT OPERATING EARNINGS (1)
For Three Months Ended ---------------------------------------------------------------------- March 31, June 30, September 30, December 31, March 31, Unaudited (Dollars in millions) 2004 2004 2004 2004 2005 - ---------------------------------------------------------------------------------------------------------- INSTITUTIONAL OPERATIONS $ 317 $ 317 $ 294 $ 308 $ 324 INDIVIDUAL OPERATIONS 187 217 201 200 318 AUTO & HOME OPERATIONS 46 71 34 63 76 INTERNATIONAL OPERATIONS 44 41 45 26 67 REINSURANCE OPERATIONS 18 23 14 31 27 CORPORATE, OTHER & ELIMINATIONS (17) 97 28 28 9 ------------------------------------------------------------------ CONSOLIDATED $ 595 $ 766 (2) $ 616 (3) $ 656 $ 821 ==================================================================
(1) A reconciliation of operating earnings to net income for each segment appears in this QFS as follows: (i) Institutional Operations, page 9; (ii) Individual Operations, page 17; (iii) Auto & Home Operations, page 27; (iv) International Operations, page 32; (v) Reinsurance Operations, page 33; and for Corporate, Other and Eliminations, on page 35. A reconciliation of operating earnings to net income for MetLife, Inc., Consolidated, appears on Page 4. (2) Operating earnings and net income for the three months ended June 30, 2004 includes a $32 million charge, net of income taxes, from a contribution to the MetLife Foundation made by Metropolitan Life Insurance Company, a $31 million benefit, net of income taxes, from a reduction of a previously established premium tax liability and a $105 million benefit related to a previously disclosed resolution of an IRS audit. (3) Operating earnings for the three months ended September 30, 2004 includes a $9 million benefit from a revision of the estimate of income taxes for 2003. 8 [METLIFE LOGO] - -------------------------------------------------------------------------------- INSTITUTIONAL OPERATIONS STATEMENTS OF OPERATING EARNINGS - TOTAL UNAUDITED (DOLLARS IN MILLIONS)
For the Three Months Ended -------------------------------------------------------------- March 31, June 30, September 30, December 31, March 31, Institutional Operations 2004 2004 2004 2004 2005 - ------------------------------------------------------------------------------------------------------------------------------------ REVENUES Premiums (1) $2,454 $2,401 $2,662 $2,515 $2,843 Universal life and investment-type product policy fees (1) 155 182 177 171 187 Investment income, net 1,096 1,128 1,115 1,180 1,215 Other revenues 164 155 152 161 156 ------------------------------------------------------------ 3,869 3,866 4,106 4,027 4,401 ------------------------------------------------------------ EXPENSES Policyholder benefits and dividends (1) 2,712 2,713 2,926 2,780 3,133 Interest credited to policyholder account balances 227 232 242 259 286 Other expenses 451 440 494 522 493 ------------------------------------------------------------ 3,390 3,385 3,662 3,561 3,912 ------------------------------------------------------------ Operating earnings before provision for income taxes 479 481 444 466 489 Provision for income taxes 162 164 150 158 165 ------------------------------------------------------------ OPERATING EARNINGS $ 317 $ 317(4) $ 294 $ 308 $ 324 ============================================================ NET INCOME RECONCILIATION - -------------------------------------------------------------------- Operating earnings $ 317 $ 317 $ 294 $ 308 $ 324 Net investment gains (losses) 100 18 105 (69) 5 Minority interest - net investment gains (losses) 0 0 0 0 0 Net investment gains (losses) tax benefit (provision) (36) (9) (33) 24 (3) ------------------------------------------------------------ Net investment gains (losses), net of income taxes 64 9 72 (45) 2 Adjustments related to policyholder benefits and dividends (17) 78 (35) (33) 35 Adjustments related to other expenses 0 0 0 0 0 Adjustments related to tax benefit (provision) 6 (27) 11 12 (12) ------------------------------------------------------------ Adjustments related to net investment gains (losses), net of income taxes (2) (11) 51 (24) (21) 23 Cumulative effect of a change in accounting, net of income taxes (3) (60) 0 0 0 0 Discontinued operations, net of income taxes 0 0 0 0 0 ------------------------------------------------------------ Net income $ 310 $ 377 $ 342 $ 242 $ 349 ============================================================
(1) Certain amounts in prior periods presented throughout the QFS have been reclassified to conform with current period presentation. (2) Adjustments related to net investment gains (losses), net of income taxes, includes amortization of deferred policy acquisition costs and amounts allocable to certain participating contracts. (3) The cumulative effect of a change in accounting, net of income taxes, for the period ended March 31, 2004, is in accordance with AICPA Statement of Position 03-1, Accounting and Reporting by Insurance Enterprises for Certain Nontraditional Long-Duration Contracts and for Separate Accounts. (4) Operating earnings for the period ended June 30, 2004 includes a $31 million benefit, net of income taxes, from a reduction of a previously established premium tax liability. 9 [METLIFE LOGO] - -------------------------------------------------------------------------------- INSTITUTIONAL OPERATIONS STATEMENTS OF OPERATING EARNINGS - PRODUCT LEVEL UNAUDITED (DOLLARS IN MILLIONS)
For the Three Months Ended -------------------------------------------------------------- March 31, June 30, September 30, December 31, March 31, Group Life 2004 2004 2004 2004 2005 - -------------------------------------------------------------------------------------------------------------------------------- REVENUES Premiums (1) $ 1,316 $1,261 $1,225 $1,242 $1,318 Universal life and investment-type product policy fees (1) 155 182 177 171 187 Investment income, net 259 269 250 252 268 Other revenues 19 13 10 14 13 ----------------------------------------------------------- 1,749 1,725 1,662 1,679 1,786 ----------------------------------------------------------- EXPENSES Policyholder benefits and dividends (1) 1,410 1,338 1,284 1,296 1,408 Interest credited to policyholder account balances 100 101 100 101 99 Other expenses 123 88 126 136 129 ----------------------------------------------------------- 1,633 1,527 1,510 1,533 1,636 ----------------------------------------------------------- Operating earnings before provision for income taxes 116 198 152 146 150 Provision for income taxes 39 68 52 50 50 ----------------------------------------------------------- OPERATING EARNINGS $ 77 $ 130(2) $ 100 $ 96 $ 100 =========================================================== Net investment gains (losses), net of income taxes 17 (4) 4 (44) (10) Adjustments related to net investment gains (losses), net of income taxes 0 0 0 0 0 Cumulative effect of a change in accounting, net of income taxes 0 0 0 0 0 Discontinued operations, net of income taxes 0 0 0 0 0 ----------------------------------------------------------- Net income $ 94 $ 126 $ 104 $ 52 $ 90 ===========================================================
(1) Certain amounts in prior periods presented throughout the QFS have been reclassified to conform with current period presentation. (2) Operating earnings for the period ended June 30, 2004 includes a $31 million benefit, net of income taxes, from a reduction of a previously established premium tax liability. 10 [METLIFE LOGO] - -------------------------------------------------------------------------------- INSTITUTIONAL OPERATIONS STATEMENTS OF OPERATING EARNINGS - PRODUCT LEVEL UNAUDITED (DOLLARS IN MILLIONS)
For the Three Months Ended ----------------------------------------------------------- March 31, June 30, September 30, December 31, March 31, Retirement & Savings 2004 2004 2004 2004 2005 - --------------------------------------------------------------------------------------------------------------------------------- REVENUES Premiums $ 265 $ 225 $ 504 $ 298 $ 495 Universal life and investment-type product policy fees 0 0 0 0 0 Investment income, net 730 736 750 803 817 Other revenues 57 55 54 55 57 -------------------------------------------------------- 1,052 1,016 1,308 1,156 1,369 -------------------------------------------------------- EXPENSES Policyholder benefits and dividends 589 598 868 675 862 Interest credited to policyholder account balances 127 131 142 158 187 Other expenses 69 84 83 88 78 -------------------------------------------------------- 785 813 1,093 921 1,127 -------------------------------------------------------- Operating earnings before provision for income taxes 267 203 215 235 242 Provision for income taxes 89 68 71 78 81 -------------------------------------------------------- OPERATING EARNINGS $ 178 $ 135 $ 144 $ 157 $ 161 ======================================================== Net investment gains (losses), net of income taxes 32 28 49 4 13 Adjustments related to net investment gains (losses), net of income taxes 0 20 (3) (15) 11 Cumulative effect of a change in accounting, net of income taxes (1) (40) 0 0 0 0 Discontinued operations, net of income taxes 0 0 0 0 0 -------------------------------------------------------- Net income $ 170 $ 183 $ 190 $ 146 $ 185 ========================================================
(1) The cumulative effect of a change in accounting, net of income taxes, for the period ended March 31, 2004, is in accordance with AICPA Statement of Position 03-1, Accounting and Reporting by Insurance Enterprises for Certain Nontraditional Long-Duration Contracts and for Separate Accounts. 11 [METLIFE LOGO] - -------------------------------------------------------------------------------- INSTITUTIONAL OPERATIONS STATEMENTS OF OPERATING EARNINGS - PRODUCT LEVEL UNAUDITED (DOLLARS IN MILLIONS)
For the Three Months Ended ----------------------------------------------------------- March 31, June 30, September 30, December 31, March 31, Non-Medical Health & Other 2004 2004 2004 2004 2005 - --------------------------------------------------------------------------------------------------------------------------------- REVENUES Premiums (1) $ 873 $ 915 $ 933 $ 975 $ 1,030 Universal life and investment-type product policy fees 0 0 0 0 0 Investment income, net 107 123 115 125 130 Other revenues 88 87 88 92 86 ---------------------------------------------------------- 1,068 1,125 1,136 1,192 1,246 ---------------------------------------------------------- EXPENSES Policyholder benefits and dividends (1) 713 777 774 809 863 Interest credited to policyholder account balances 0 0 0 0 0 Other expenses 259 268 285 298 286 ---------------------------------------------------------- 972 1,045 1,059 1,107 1,149 ---------------------------------------------------------- Operating earnings before provision for income taxes 96 80 77 85 97 Provision for income taxes 34 28 27 30 34 ---------------------------------------------------------- OPERATING EARNINGS $ 62 $ 52 $ 50 $ 55 $ 63 ========================================================== Net investment gains (losses), net of income taxes 15 (15) 19 (5) (1) Adjustments related to net investment gains (losses), net of income taxes (11) 31 (21) (6) 12 Cumulative effect of a change in accounting, net of income taxes (2) (20) 0 0 0 0 Discontinued operations, net of income taxes 0 0 0 0 0 ---------------------------------------------------------- Net income $ 46 $ 68 $ 48 $ 44 $ 74 ==========================================================
(1) Certain amounts in prior periods presented throughout the QFS have been reclassified to conform with current period presentation. (2) The cumulative effect of a change in accounting, net of income taxes, for the period ended March 31, 2004, is in accordance with AICPA Statement of Position 03-1, Accounting and Reporting by Insurance Enterprises for Certain Nontraditional Long-Duration Contracts and for Separate Accounts. 12 [METLIFE LOGO] - -------------------------------------------------------------------------------- INSTITUTIONAL OPERATIONS PREMIUMS, FEES AND OTHER REVENUES BY PRODUCT AND ADDITIONAL STATISTICAL INFORMATION
For the Three Months Ended ----------------------------------------------------------- March 31, June 30, September 30, December 31, March 31, Unaudited (Dollars in millions) 2004 2004 2004 2004 2005 - ---------------------------------------------------------------------------------------------------------------------- PREMIUMS, FEES AND OTHER REVENUES BY PRODUCT (1) Group Life $ 1,490 $ 1,456 $ 1,412 $ 1,427 $ 1,518 Retirement & Savings 322 280 558 353 552 Non-Medical Health & Other 961 1,002 1,021 1,067 1,116 --------------------------------------------------------- Total Premiums, Fees and Other Revenues $ 2,773 $ 2,738 $ 2,991 $ 2,847 $ 3,186 ========================================================= Group Disability (Included in Non-Medical Health & Other) $ 245 $ 252 $ 253 $ 276 $ 282 ADDITIONAL STATISTICAL INFORMATION INCURRED LOSS RATIO (MORTALITY EXPERIENCE): (1) Term Life 95.8% 93.2% 90.9% 90.7% 94.9% INCURRED LOSS RATIO (MORBIDITY EXPERIENCE): (1) Group Disability 93.3% 92.8% 91.9% 98.8% 91.1% NUMBER OF SALES REPRESENTATIVES 786 794 779 762 783
(1) Certain amounts in prior periods presented throughout the QFS have been reclassified to conform with current period presentation. With respect to premiums, fees and other revenues, certain experience rating refunds and changes to premium stabilization reserves are included in premiums and fees. The following table excludes these amounts: Group Life $1,472 $1,444 $1,459 $1,513 $1,602 Retirement & Savings 322 280 558 353 552 Non-Medical Health & Other 966 1,000 1,024 1,061 1,123 -------------------------------------- Total Premiums, Fees and Other Revenues $2,760 $2,724 $3,041 $2,927 $3,277 ======================================
13 [METLIFE LOGO] - -------------------------------------------------------------------------------- INSTITUTIONAL OPERATIONS FUTURE POLICY BENEFITS AND POLICYHOLDER ACCOUNT BALANCES AND SEPARATE ACCOUNT LIABILITIES UNAUDITED (DOLLARS IN MILLIONS) FUTURE POLICY BENEFITS AND POLICYHOLDER ACCOUNT BALANCES - --------------------------------------------------------
For the Three Months Ended ------------------------------------------------------------ March 31, June 30, September 30, December 31, March 31, Group Life 2004 2004 2004 2004 2005 - ------------------------------------------------------------------------------------------ Balance, beginning of period $14,678 $14,642 $14,834 $14,959 $15,022 Premiums and deposits (1) 2,753 2,638 2,497 2,446 2,697 Interest on reserves 130 131 131 135 135 Surrenders and withdrawals (1,144) (1,118) (1,081) (1,115) (1,159) Benefits and reserves (1) (1,411) (1,338) (1,287) (1,288) (1,409) Other (1) (364) (121) (135) (115) (112) ----------------------------------------------------------- Balance, end of period $14,642 $14,834 $14,959 $15,022 $15,174 ===========================================================
For the Three Months Ended ------------------------------------------------------------ March 31, June 30, September 30, December 31, March 31, Retirement & Savings 2004 2004 2004 2004 2005 - ------------------------------------------------------------------------------------------ Balance, beginning of period $ 40,298 $ 42,634 $ 42,287 $ 44,497 $ 45,979 Premiums and deposits 2,424 2,003 2,525 2,696 2,699 Interest on reserves 542 551 567 595 613 Surrenders and withdrawals (1,222) (928) (1,361) (1,566) (807) Benefits and reserves (468) (470) (504) (495) (484) Other (2) 1,060 (1,503) 983 252 (528) ------------------------------------------------------------ Balance, end of period $ 42,634 $ 42,287 $ 44,497 $ 45,979 $ 47,472 ============================================================
For the Three Months Ended ------------------------------------------------------------ March 31, June 30, September 30, December 31, March 31, Non-Medical Health & Other 2004 2004 2004 2004 2005 - ------------------------------------------------------------------------------------------ Balance, beginning of period $ 4,708 $ 6,003 $ 6,407 $ 6,601 $ 6,784 Premiums and deposits (1) 789 835 843 899 942 Interest on reserves 57 60 63 64 67 Surrenders and withdrawals 24 25 27 18 19 Benefits and reserves (1) (690) (739) (753) (791) (839) Other (1) (2) 1,115 223 14 (7) (42) ----------------------------------------------------------- Balance, end of period $ 6,003 $ 6,407 $ 6,601 $ 6,784 $ 6,931 ===========================================================
SEPARATE ACCOUNT LIABILITIES - ----------------------------
For the Three Months Ended ----------------------------------------------------------- March 31, June 30, September 30, December 31, March 31, Group Life 2004 2004 2004 2004 2005 - ----------------------------------------------------------------------------------------- Balance, beginning of period $ 7,045 $ 7,754 $ 8,066 $ 8,337 $ 8,192 Premiums and deposits 160 156 182 133 114 Investment performance 645 239 166 63 168 Surrenders and withdrawals (92) (86) (77) (341) (498) Policy charges 0 0 0 0 0 Other (4) 3 0 0 0 --------------------------------------------------------- Balance, end of period $ 7,754 $ 8,066 $ 8,337 $ 8,192 $ 7,976 =========================================================
For the Three Months Ended ----------------------------------------------------------- March 31, June 30, September 30, December 31, March 31, Retirement & Savings 2004 2004 2004 2004 2005 - ----------------------------------------------------------------------------------------- Balance, beginning of period $ 27,081 $27,376 $ 26,962 $ 27,666 $ 28,507 Premiums and deposits 1,369 694 834 758 1,426 Investment performance 802 (277) 732 971 (1,105) Surrenders and withdrawals (1,262) (842) (818) (883) (1,511) Policy charges (21) (20) (19) (19) (20) Other (2) (593) 31 (25) 14 5 ---------------------------------------------------------- Balance, end of period $ 27,376 $26,962 $ 27,666 $ 28,507 $ 27,302 ==========================================================
For the Three Months Ended ------------------------------------------------------------ March 31, June 30, September 30, December 31, March 31, Non-Medical Health & Other 2004 2004 2004 2004 2005 - ------------------------------------------------------------------------------------------ Balance, beginning of period $ 1,505 $ 139 $ 160 $ 200 $ 214 Premiums and deposits 84 82 89 76 88 Investment performance 16 14 62 (45) (108) Surrenders and withdrawals (24) (25) (27) (18) (19) Policy charges (15) (9) (9) (28) (17) Other (2) (1,427) (41) (75) 29 85 ----------------------------------------------------------- Balance, end of period $ 139 $ 160 $ 200 $ 214 $ 243 ===========================================================
(1) Certain amounts in prior periods presented throughout the QFS have been reclassified to conform with current period presentation. (2) Beginning with the period ended March 31, 2004, the balances include liabilities recorded in accordance with AICPA Statement of Position 03-1, Accounting and Reporting by Insurance Enterprises for Certain Nontraditional Long-Duration Contracts and for Separate Accounts. 14 [METLIFE LOGO] - -------------------------------------------------------------------------------- INSTITUTIONAL OPERATIONS OTHER EXPENSES BY MAJOR CATEGORY
For the Three Months Ended ----------------------------------------------------------- March 31, June 30, September 30, December 31, March 31, Unaudited (Dollars in millions) 2004 2004 2004 2004 2005 - ------------------------------------------------------------------------------------------------------------- OTHER EXPENSES BY MAJOR CATEGORY Direct and allocated expenses $ 352 $ 361 $ 355 $ 394 $ 358 Pension and other post-retirement benefit costs 18 21 17 17 19 Premium taxes and other taxes, licenses and fees 35 (11) 38 33 31 ------------------------------------------------------- Subtotal Insurance Expenses 405 371 410 444 408 Commissions and other expenses 46 69 84 78 85 ------------------------------------------------------- Total Other Expenses $ 451 $ 440 $ 494 $ 522 $ 493 =======================================================
15 [METLIFE LOGO] - -------------------------------------------------------------------------------- INSTITUTIONAL OPERATIONS SPREADS BY PRODUCT UNAUDITED
For the Three Months Ended -------------------------------------------------------------------- March 31, June 30, September 30, December 31, March 31, Group Life 2004 2004 2004 2004 2005 - --------------------------------------------------------------------------------------------------- ANNUALIZED GENERAL ACCOUNT SPREADS BY SEGMENT (%) Investment income yield 5.66% 5.87% 5.32% 5.34% 5.58% Average crediting rate 3.49% 3.44% 3.45% 3.58% 3.59% ---------------------------------------------------------------- Spread 2.17% 2.43% 1.87% 1.76% 1.99% ================================================================
For the Three Months Ended --------------------------------------------------------------------- March 31, June 30, September 30, December 31, March 31, Retirement & Savings 2004 2004 2004 2004 2005 - ---------------------------------------------------------------------------------------------------- ANNUALIZED GENERAL ACCOUNT SPREADS BY SEGMENT (%) Investment income yield 7.06% 6.93% 6.85% 7.17% 6.91% Average crediting rate 5.42% 5.33% 5.29% 5.34% 5.44% ---------------------------------------------------------------- Spread 1.64% 1.60% 1.56% 1.83% 1.47% ================================================================
For the Three Months Ended -------------------------------------------------------------------- March 31, June 30, September 30, December 31, March 31, Non-Medical Health & Other 2004 2004 2004 2004 2005 - ---------------------------------------------------------------------------------------------------- ANNUALIZED GENERAL ACCOUNT SPREADS BY SEGMENT (%) Investment income yield 6.96% 7.77% 6.86% 7.53% 7.34% Average crediting rate 5.35% 5.33% 5.43% 5.47% 5.45% ---------------------------------------------------------------- Spread 1.61% 2.44% 1.43% 2.06% 1.89% ================================================================
16 [METLIFE LOGO] - -------------------------------------------------------------------------------- INDIVIDUAL OPERATIONS STATEMENTS OF OPERATING EARNINGS - TOTAL UNAUDITED (DOLLARS IN MILLIONS)
For the Three Months Ended --------------------------------------------------------------- March 31, June 30, September 30, December 31, March 31, Individual Operations 2004 2004 2004 2004 2005 - ---------------------------------------------------------------------------------------------------------------------------------- REVENUES Premiums $ 978 $ 1,007 $ 1,023 $ 1,164 $ 1,021 Universal life and investment-type product policy fees 425 453 467 486 485 Investment income, net 1,521 1,549 1,528 1,552 1,561 Other revenues 117 106 109 112 117 ------------------------------------------------------------- 3,041 3,115 3,127 3,314 3,184 ------------------------------------------------------------- EXPENSES Policyholder benefits and dividends 1,644 1,653 1,681 1,801 1,635 Interest credited to policyholder account balances 423 427 412 412 407 Capitalization of deferred policy acquisition costs (293) (298) (268) (284) (254) Amortization of deferred policy acquisition costs 166 170 210 228 186 Other expenses 820 837 789 857 733 ------------------------------------------------------------- 2,760 2,789 2,824 3,014 2,707 ------------------------------------------------------------- Operating earnings before provision for income taxes 281 326 303 300 477 Provision for income taxes 94 109 102 100 159 ------------------------------------------------------------- OPERATING EARNINGS $ 187 $ 217 $ 201 $ 200 $ 318 ============================================================= NET INCOME RECONCILIATION - ------------------------- Operating earnings $ 187 $ 217 $ 201 $ 200 $ 318 Net investment gains (losses) (28) 31 105 (50) 59 Minority interest - net investment gains (losses) 0 0 0 4 (4) Net investment gains (losses) tax benefit (provision) 9 1 (37) 11 (23) ------------------------------------------------------------- Net investment gains (losses), net of income taxes (19) 32 68 (35) 32 Adjustments related to policyholder benefits and dividends 45 (11) (25) 30 21 Adjustments related to other expenses (13) 8 (8) 4 2 Adjustments related to tax benefit (provision) (11) 0 12 (12) (8) ------------------------------------------------------------- Adjustments related to net investment gains (losses), net of income taxes (1) 21 (3) (21) 22 15 Cumulative effect of a change in accounting, net of income taxes (2) 0 0 0 0 0 Discontinued operations, net of income taxes 0 0 0 0 0 ------------------------------------------------------------- Net income $ 189 $ 246 $ 248 $ 187 $ 365 =============================================================
(1) Adjustments related to net investment gains (losses), net of income taxes, include amortization of deferred policy acquisition costs, adjustments to the policyholder dividend obligation and amounts allocable to certain participating contracts. (2) The cumulative effect of a change in accounting, net of income taxes, for the period ended March 31, 2004, is in accordance with AICPA Statement of Position 03-1, Accounting and Reporting by Insurance Enterprises for Certain Nontraditional Long-Duration Contracts and for Separate Accounts. 17 [METLIFE LOGO] - -------------------------------------------------------------------------------- INDIVIDUAL OPERATIONS STATEMENTS OF OPERATING EARNINGS - PRODUCT LEVEL UNAUDITED (DOLLARS IN MILLIONS)
For the Three Months Ended -------------------------------------------------------------------- March 31, June 30, September 30, December 31, March 31, Traditional Life 2004 2004 2004 2004 2005 - --------------------------------------------------------------------------------------------------------------------------------- REVENUES Premiums $ 959 $ 980 $ 989 $ 1,113 $ 957 Universal life and investment-type product policy fees 0 0 0 0 0 Investment income, net 843 848 831 825 832 Other revenues 1 0 1 4 2 ------------------------------------------------------------------- 1,803 1,828 1,821 1,942 1,791 ------------------------------------------------------------------- EXPENSES Policyholder benefits and dividends 1,480 1,496 1,517 1,629 1,433 Interest credited to policyholder account balances 0 0 0 0 0 Capitalization of deferred policy acquisition costs (41) (42) (44) (50) (43) Amortization of deferred policy acquisition costs 56 51 51 74 53 Other expenses 211 206 213 240 184 ------------------------------------------------------------------- 1,706 1,711 1,737 1,893 1,627 ------------------------------------------------------------------- Operating earnings before provision for income taxes 97 117 84 49 164 Provision for income taxes 33 40 29 17 55 ------------------------------------------------------------------- OPERATING EARNINGS $ 64 $ 77 $ 55 $ 32 $ 109 =================================================================== Net investment gains (losses), net of income taxes (15) 20 60 15 45 Adjustments related to net investment gains (losses), net of income taxes 22 (4) (18) 18 15 Cumulative effect of a change in accounting, net of income taxes 0 0 0 0 0 Discontinued operations, net of income taxes 0 0 0 0 0 ------------------------------------------------------------------- Net income $ 71 $ 93 $ 97 $ 65 $ 169 ===================================================================
18 [METLIFE LOGO] - -------------------------------------------------------------------------------- INDIVIDUAL OPERATIONS STATEMENTS OF OPERATING EARNINGS - PRODUCT LEVEL UNAUDITED (DOLLARS IN MILLIONS)
For the Three Months Ended ----------------------------------------------------------------- March 31, June 30, September 30, December 31, March 31, Variable & Universal Life 2004 2004 2004 2004 2005 - --------------------------------------------------------------------------------------------------------------------------------- REVENUES Premiums $ 0 $ 0 $ 0 $ 0 $ 0 Universal life and investment-type product policy fees 245 264 279 272 265 Investment income, net 140 143 147 149 152 Other revenues 4 (3) 1 (1) 0 ------------------------------------------------------------- 389 404 427 420 417 ------------------------------------------------------------- EXPENSES Policyholder benefits and dividends 87 88 76 56 93 Interest credited to policyholder account balances 113 116 117 114 114 Capitalization of deferred policy acquisition costs (70) (86) (74) (79) (65) Amortization of deferred policy acquisition costs 48 52 73 82 49 Other expenses 175 186 176 186 148 ------------------------------------------------------------- 353 356 368 359 339 ------------------------------------------------------------- Operating earnings before provision for income taxes 36 48 59 61 78 Provision for income taxes 12 16 20 21 27 ------------------------------------------------------------- OPERATING EARNINGS $ 24 $ 32 $ 39 $ 40 $ 51 ============================================================= Net investment gains (losses), net of income taxes 3 (5) 5 (1) (8) Adjustments related to net investment gains (losses), net of income taxes (1) 2 (2) 0 (2) Cumulative effect of a change in accounting, net of income taxes (1) (11) 0 0 0 0 Discontinued operations, net of income taxes 0 0 0 0 0 ------------------------------------------------------------- Net income $ 15 $ 29 $ 42 $ 39 $ 41 =============================================================
(1) The cumulative effect of a change in accounting, net of income taxes, for the period ended March 31, 2004, is in accordance with AICPA Statement of Position 03-1, Accounting and Reporting by Insurance Enterprises for Certain Nontraditional Long-Duration Contracts and for Separate Accounts. 19 [METLIFE LOGO] - -------------------------------------------------------------------------------- INDIVIDUAL OPERATIONS STATEMENTS OF OPERATING EARNINGS - PRODUCT LEVEL UNAUDITED (DOLLARS IN MILLIONS)
For the Three Months Ended ----------------------------------------------------------------- March 31, June 30, September 30, December 31, March 31, Annuities 2004 2004 2004 2004 2005 - ----------------------------------------------------------------------------------------------------------------------------- REVENUES Premiums $ 18 $ 26 $ 34 $ 48 $ 63 Universal life and investment-type product policy fees 151 156 156 177 185 Investment income, net 475 494 491 513 511 Other revenues 7 10 11 11 11 ------------------------------------------------------------- 651 686 692 749 770 ------------------------------------------------------------- EXPENSES Policyholder benefits and dividends 68 58 78 111 96 Interest credited to policyholder account balances 280 281 266 267 261 Capitalization of deferred policy acquisition costs (181) (169) (149) (154) (145) Amortization of deferred policy acquisition costs 59 64 84 62 81 Other expenses 299 302 268 281 259 ------------------------------------------------------------- 525 536 547 567 552 ------------------------------------------------------------- Operating earnings before provision for income taxes 126 150 145 182 218 Provision for income taxes 41 49 47 59 71 ------------------------------------------------------------- OPERATING EARNINGS $ 85 $ 101 $ 98 $ 123 $ 147 ============================================================= Net investment gains (losses), net of income taxes 2 17 9 (58) 1 Adjustments related to net investment gains (losses), net of income taxes 0 (1) (1) 4 2 Cumulative effect of a change in accounting, net of income taxes (1) 11 0 0 0 0 Discontinued operations, net of income taxes 0 0 0 0 0 ------------------------------------------------------------- Net income $ 98 $ 117 $ 106 $ 69 $ 150 =============================================================
(1) The cumulative effect of a change in accounting, net of income taxes, for the period ended March 31, 2004, is in accordance with AICPA Statement of Position 03-1, Accounting and Reporting by Insurance Enterprises for Certain Nontraditional Long-Duration Contracts and for Separate Accounts. 20 [METLIFE LOGO] - -------------------------------------------------------------------------------- INDIVIDUAL OPERATIONS STATEMENTS OF OPERATING EARNINGS - PRODUCT LEVEL UNAUDITED (DOLLARS IN MILLIONS)
For the Three Months Ended ------------------------------------------------------------------ March 31, June 30, September 30, December 31, March 31, Other 2004 2004 2004 2004 2005 - ------------------------------------------------------------------------------------------------------------------------- REVENUES Premiums $ 1 $ 1 $ 0 $ 3 $ 1 Universal life and invesment-type product policy fees 29 33 32 37 35 Investment income, net 63 64 59 65 66 Other revenues 105 99 96 98 104 ------------------------------------------------------------------ 198 197 187 203 206 ------------------------------------------------------------------ EXPENSES Policyholder benefits and dividends 9 11 10 5 13 Interest credited to policyholder account balances 30 30 29 31 32 Capitalization of deferred policy acquisition costs (1) (1) (1) (1) (1) Amortization of deferred policy acquisition costs 3 3 2 10 3 Other expenses 135 143 132 150 142 ------------------------------------------------------------------ 176 186 172 195 189 ------------------------------------------------------------------ Operating earnings before provision for income taxes 22 11 15 8 17 Provision for income taxes 8 4 6 3 6 ------------------------------------------------------------------ OPERATING EARNINGS $ 14 $ 7 $ 9 $ 5 $ 11 ================================================================== Net investment gains (losses), net of income taxes (9) 0 (6) 9 (6) Adjustments related to net investment gains (losses), net of income taxes 0 0 0 0 0 Cumulative effect of a change in accounting, net of income taxes 0 0 0 0 0 Discontinued operations, net of income taxes 0 0 0 0 0 ------------------------------------------------------------------ Net income $ 5 $ 7 $ 3 $ 14 $ 5 ==================================================================
21 [METLIFE LOGO] - -------------------------------------------------------------------------------- INDIVIDUAL OPERATIONS PREMIUMS AND DEPOSITS BY PRODUCT AND MUTUAL FUND SALES
For the Three Months Ended ------------------------------------------------------------- March 31, June 30, September 30, December 31, March 31, Unaudited (Dollars in millions) 2004 2004 2004 2004 2005 - --------------------------------------------------------------------------------------------------------------------------------- PREMIUMS AND DEPOSITS BY PRODUCT (1) TOTAL (2) Life First Year Premiums & Deposits Traditional Life $ 45 $ 47 $ 44 $ 51 $ 47 Variable Life 1st Year excluding Single Premium COLI/BOLI 51 61 51 51 57 Universal Life 1st Year excluding Single Premium COLI/BOLI 104 116 125 118 102 Single Premium COLI/BOLI 3 49 20 4 1 ------------------------------------------------------------ Total Life First Year Premiums & Deposits (3) 203 273 240 224 207 Life Renewal Premiums & Deposits Traditional Life 965 1,030 1,017 1,163 943 Variable & Universal Life 471 418 447 452 472 Annuities (4) 3,436 2,882 2,410 2,566 2,540 Other 258 251 245 252 273 ------------------------------------------------------------ Total Premiums and Deposits $ 5,333 $ 4,854 $ 4,359 $ 4,657 $ 4,435 ============================================================ PREMIUMS AND DEPOSITS TO SEPARATE ACCOUNTS Variable & Universal Life $ 284 $ 287 $ 300 $ 294 $ 279 Annuities 2,120 1,523 1,352 1,525 1,532 Other 160 157 152 157 161 ------------------------------------------------------------ Total Separate Accounts $ 2,564 $ 1,967 $ 1,804 $ 1,976 $ 1,972 ============================================================ ANNUITY DEPOSITS BY TYPE Fixed Annuity Deposits $ 506 $ 659 $ 403 $ 497 $ 429 Variable Annuity Deposits 2,930 2,223 2,007 2,069 2,111 ------------------------------------------------------------ Total Annuity Deposits $ 3,436 $ 2,882 $ 2,410 $ 2,566 $ 2,540 ============================================================ ------------------------------------------------------------ MUTUAL FUND SALES $ 1,045 $ 864 $ 689 $ 935 $ 954
(1) Statutory premiums direct and assumed. (2) Includes premiums and deposits to separate accounts and excludes company sponsored internal changes. (3) Of the $207 million of First Year Life Premiums and Deposits received during the three months ended March 31, 2005, approximately 55% were distributed through MetLife agents, 21% through New England Financial agents, 21% through MetLife's Independent Distribution channel and 3% through other distribution channels. (4) Of the $2,540 million of Annuity Deposits received during the three months ended March 31, 2005, approximately 31% were distributed through MetLife agents, 7% through New England Financial agents, 51% through MetLife's Independent Distribution channel and 11% through MetLife Resources representatives. 22 [METLIFE LOGO] - -------------------------------------------------------------------------------- INDIVIDUAL OPERATIONS ADDITIONAL STATISTICAL INFORMATION
At or for the Three Months Ended ----------------------------------------------------------- March 31, June 30, September 30, December 31, March 31, Unaudited 2004 2004 2004 2004 2005 - ----------------------------------------------------------------------------------------------------------------------- PERCENTAGE OF PREMIUMS AND DEPOSITS TO SEPARATE ACCOUNTS, EXCLUDING TRANSFERS FROM GENERAL ACCOUNT: Variable & Universal Life 45.0% 44.1% 46.4% 43.0% 43.0% Annuities 61.7% 52.9% 56.1% 58.3% 60.3% Other 62.1% 62.5% 62.2% 62.3% 58.9% MORTALITY AS A PERCENTAGE OF EXPECTED 85.4% 78.1% 78.8% 85.6% 85.6% LAPSES / SURRENDERS (GENERAL AND SEPARATE ACCOUNT) (1) Traditional Life 6.3% 6.2% 6.2% 6.1% 6.2% Variable & Universal Life 7.0% 7.1% 7.0% 7.0% 6.6% Variable Annuities 7.8% 7.7% 7.5% 7.6% 7.6% Fixed Annuities 7.4% 8.0% 7.6% 6.7% 6.3% NUMBER OF SALES REPRESENTATIVES MetLife Distribution 5,594 5,633 5,700 5,597 5,718 New England Financial 2,531 2,553 2,504 2,383 2,231 General American (2) 448 448 430 380 343 Independent Distribution Wholesalers 95 101 102 100 116 MetLife Resources 397 397 399 427 422 Walnut Street Securities (3) 1,468 1,413 1,370 1,359 1,294 P&C Specialists 461 500 529 544 570 -------------------------------------------------------- Total Agents 10,994 11,045 11,034 10,790 10,694 ========================================================
(1) Lapses/Surrenders rates are calculated for the most recent 12 months of experience. (2) Based on minimum annual production of $25,000 in life insurance sales. (3) At March 31, 2005, the number of Walnut Street Securities representatives includes 130 brokers who are also reported as General American agents above. 23 [METLIFE LOGO] - -------------------------------------------------------------------------------- INDIVIDUAL OPERATIONS FUTURE POLICY BENEFITS AND POLICYHOLDER ACCOUNT BALANCES AND SEPARATE ACCOUNT LIABILITIES UNAUDITED (DOLLARS IN MILLIONS) FUTURE POLICY BENEFITS AND POLICYHOLDER ACCOUNT BALANCES - --------------------------------------------------------
For the Three Months Ended ----------------------------------------------------------------- March 31, June 30, September 30, December 31, March 31, Traditional Life 2004 2004 2004 2004 2005 - ------------------------------------------------------------------------------------------------------------- Balance, beginning of period $ 48,503 $ 48,613 $ 48,828 $ 48,893 $ 49,209 Premiums and deposits (1) 1,038 1,067 1,069 1,199 1,032 Interest on reserves 489 491 493 494 499 Surrenders and withdrawals (477) (462) (466) (472) (447) Benefit payments (486) (437) (464) (458) (484) Other (454) (444) (567) (447) (438) ----------------------------------------------------------------- Balance, end of period $ 48,613 $ 48,828 $ 48,893 $ 49,209 $ 49,371 =================================================================
For the Three Months Ended ------------------------------------------------------------- March 31, June 30, September 30, December 31, March 31, Variable & Universal Life 2004 2004 2004 2004 2005 - ------------------------------------------------------------------------------------------------------------- Balance, beginning of period $ 9,475 $ 9,644 $ 9,797 $ 9,887 $ 9,991 Premiums and deposits (1) (2) 346 370 340 342 353 Interest on reserves 119 115 114 115 112 Surrenders and withdrawals (233) (158) (153) (168) (161) Net transfers from (to) separate account 75 56 44 54 44 Policy charges (199) (204) (224) (228) (225) Benefit payments (34) (27) (25) (24) (27) Other 95 1 (6) 13 0 ------------------------------------------------------------ Balance, end of period $ 9,644 $ 9,797 $ 9,887 $ 9,991 $ 10,087 ============================================================
For the Three Months Ended ---------------------------------------------------------------- March 31, June 30, September 30, December 31, March 31, Annuities 2004 2004 2004 2004 2005 - ------------------------------------------------------------------------------------------------------------- Balance, beginning of period $ 31,350 $ 31,491 $ 31,908 $ 31,955 $ 32,184 Premiums and deposits (1) (2) 1,426 1,432 1,120 1,182 1,089 Interest on reserves 298 390 297 339 312 Surrenders and withdrawals (797) (740) (517) (677) (587) Net transfers from (to) separate account (610) (566) (339) (425) (427) Policy charges (6) (4) (8) (1) (1) Benefit payments (128) (99) (235) (191) (277) Other (42) 4 (271) 2 11 ---------------------------------------------------------------- Balance, end of period $ 31,491 $ 31,908 $ 31,955 $ 32,184 $ 32,304 ================================================================
SEPARATE ACCOUNT LIABILITIES - ----------------------------
For the Three Months Ended -------------------------------------------------------------- March 31, June 30, September 30, December 31, March 31, Variable & Universal Life 2004 2004 2004 2004 2005 - ------------------------------------------------------------------------------------------------------------- Balance, beginning of period $ 6,835 $ 6,989 $ 7,130 $ 7,258 $ 7,785 Premiums and deposits (1) 284 287 299 294 279 Investment performance 191 85 (123) 583 (94) Surrenders and withdrawals (177) (104) (98) (224) (109) Net transfers from (to) fixed account (75) (56) (44) (54) (44) Policy charges (69) (71) (69) (72) (70) Other 0 0 163 0 0 ----------------------------------------------------------- Balance, end of period $ 6,989 $ 7,130 $ 7,258 $ 7,785 $ 7,747 ===========================================================
For the Three Months Ended ---------------------------------------------------------------- March 31, June 30, September 30, December 31, March 31, Annuities 2004 2004 2004 2004 2005 - ------------------------------------------------------------------------------------------------------------- Balance, beginning of period $ 28,667 $ 31,505 $ 32,989 $ 33,491 $ 37,597 Premiums and deposits (1) 2,120 1,524 1,353 1,524 1,532 Investment performance 834 144 (413) 3,039 (604) Surrenders and withdrawals (617) (642) (668) (744) (764) Net transfers from (to) fixed account 610 566 339 425 427 Policy charges (105) (112) (109) (138) (137) Other (4) 4 0 0 0 ---------------------------------------------------------------- Balance, end of period $ 31,505 $ 32,989 $ 33,491 $ 37,597 $ 38,051 ================================================================
(1) Includes company-sponsored internal exchanges. (2) Includes premiums and deposits directed to the General Account investment option of a variable life or variable annuity product. 24 [METLIFE LOGO] - -------------------------------------------------------------------------------- INDIVIDUAL OPERATIONS INSURANCE EXPENSES AND OTHER EXPENSES BY MAJOR CATEGORY
For the Three Months Ended --------------------------------------------------------------- March 31, June 30, September 30, December 31, March 31, Unaudited (Dollars in millions) 2004 2004 2004 2004 2005 - ------------------------------------------------------------------------------------------------------------------ INSURANCE EXPENSES (NET OF CAPITALIZATION OF DAC) Insurance Expenses $ 757 $ 752 $ 705 $ 753 $ 630 DAC Capitalization (1) (324) (333) (300) (308) (273) --------------------------------------------------------------- Net $ 433 $ 419 $ 405 $ 445 $ 357 =============================================================== OTHER EXPENSES BY MAJOR CATEGORY Commissions $ 252 $ 241 $ 218 $ 218 $ 203 Other deferrable expenses 92 114 103 114 93 Direct and allocated expenses, not deferred 353 335 327 370 276 Pension and other post-retirement benefit costs 31 32 28 27 29 Premium taxes and other taxes, licenses and fees 29 30 29 24 29 --------------------------------------------------------------- Subtotal Insurance Expenses $ 757 $ 752 $ 705 $ 753 $ 630 Broker-dealer and other expenses 116 134 126 141 132 Reinsurance allowances (53) (49) (42) (37) (29) --------------------------------------------------------------- Total Other Expenses $ 820 $ 837 $ 789 $ 857 $ 733 ===============================================================
(1) Excludes $31 million, $35 million, $32 million, $24 million and $19 million of DAC capitalization related to reinsurance allowances for the three months ended March 31, 2004, June 30, 2004, September 30, 2004, December 31, 2004 and March 31, 2005, respectively. 25 [METLIFE LOGO] - -------------------------------------------------------------------------------- INDIVIDUAL OPERATIONS SPREADS BY PRODUCT UNAUDITED
For the Three Months Ended ----------------------------------------------------------------- March 31, June 30, September 30, December 31, March 31, VARIABLE & UNIVERSAL LIFE 2004 2004 2004 2004 2005 - -------------------------------------------------------------------------------------------------- ANNUALIZED GENERAL ACCOUNT SPREADS BY PRODUCT (%) Investment income yield 6.98% 7.05% 7.04% 7.00% 7.07% Average crediting rate 5.26% 5.25% 5.17% 5.08% 5.00% ---------------------------------------------------------- Spread 1.72% 1.80% 1.87% 1.92% 2.07% ==========================================================
For the Three Months Ended ----------------------------------------------------------------- March 31, June 30, September 30, December 31, March 31, ANNUITIES 2004 2004 2004 2004 2005 - -------------------------------------------------------------------------------------------------- ANNUALIZED GENERAL ACCOUNT SPREADS BY PRODUCT (%) Investment income yield 5.85% 6.23% 6.08% 6.37% 6.24% Average crediting rate 3.90% 3.79% 3.64% 3.57% 3.44% ---------------------------------------------------------- Spread 1.95% 2.44% 2.44% 2.80% 2.80% ==========================================================
26 [METLIFE LOGO] - -------------------------------------------------------------------------------- AUTO & HOME OPERATIONS STATEMENTS OF OPERATING EARNINGS - TOTAL UNAUDITED (DOLLARS IN MILLIONS)
For the Three Months Ended ------------------------------------------------------- March 31, June 30, September 30, December 31, March 31, Auto & Home Operations 2004 2004 2004 2004 2005 - ---------------------------------------------------------------------------------------------------------------------------------- REVENUES Earned premiums $ 737 $ 734 $ 740 $ 737 $ 728 Investment income, net 46 44 40 41 43 Other revenues 9 6 8 12 9 ------------------------------------------------------- 792 784 788 790 780 ------------------------------------------------------- EXPENSES Losses 446 413 460 398 392 Loss adjustment expense 90 82 93 99 85 Other expenses 198 193 194 210 200 ------------------------------------------------------- 734 688 747 707 677 ------------------------------------------------------- Operating earnings before provision (benefit) for income taxes 58 96 41 83 103 Provision (benefit) for income taxes 12 25 7 20 27 ------------------------------------------------------- OPERATING EARNINGS $ 46 $ 71 $ 34 $ 63 $ 76 ======================================================= NET INCOME RECONCILIATION - -------------------------------- Operating earnings $ 46 $ 71 $ 34 $ 63 $ 76 Net investment gains (losses) 0 (5) (1) (3) 0 Minority interest - net investment gains (losses) 0 0 0 0 0 Net investment gains (losses) tax benefit (provision) 0 2 0 1 0 ------------------------------------------------------- Net investment gains (losses), net of income taxes 0 (3) (1) (2) 0 Adjustments related to policyholder benefits and dividends 0 0 0 0 0 Adjustments related to other expenses 0 0 0 0 0 Adjustments related to tax benefit (provision) 0 0 0 0 0 ------------------------------------------------------- Adjustments related to net investment gains (losses), net of income taxes 0 0 0 0 0 Cumulative effect of a change in accounting, net of income taxes 0 0 0 0 0 Discontinued operations, net of income taxes 0 0 0 0 0 ------------------------------------------------------- Net income $ 46 $ 68 $ 33 $ 61 $ 76 =======================================================
27 [METLIFE LOGO] - -------------------------------------------------------------------------------- AUTO & HOME OPERATIONS STATEMENTS OF OPERATING EARNINGS - PRODUCT LEVEL UNAUDITED (DOLLARS IN MILLIONS)
For the Three Months Ended ----------------------------------------------------------- March 31, June 30, September 30, December 31, March 31, Auto 2004 2004 2004 2004 2005 - ------------------------------------------------------------------------------------------------------------------------------ REVENUES Earned premiums $542 $ 538 $ 539 $ 538 $531 Investment income, net 36 34 30 34 32 Other revenues 6 5 6 6 6 ------------------------------------------------------ 584 577 575 578 569 ------------------------------------------------------ EXPENSES Losses 351 296 300 312 304 Loss adjustment expense 72 63 66 85 74 Other expenses 139 135 136 148 137 ------------------------------------------------------ 562 494 502 545 515 ------------------------------------------------------ Operating earnings before provision for income taxes 22 83 73 33 54 Provision for income taxes 0 22 21 3 11 ------------------------------------------------------ OPERATING EARNINGS $ 22 $ 61 $ 52 $ 30 $ 43 ====================================================== Net investment gains (losses), net of income taxes 0 (3) (1) (1) 0 Adjustments related to net investment gains (losses), net of income taxes 0 0 0 0 0 Cumulative effect of a change in accounting, net of income taxes 0 0 0 0 0 Discontinued operations, net of income taxes 0 0 0 0 0 ------------------------------------------------------ Net income $ 22 $ 58 $ 51 $ 29 $ 43 ======================================================
28 [METLIFE LOGO] - -------------------------------------------------------------------------------- AUTO & HOME OPERATIONS STATEMENTS OF OPERATING EARNINGS - PRODUCT LEVEL UNAUDITED (DOLLARS IN MILLIONS)
For the Three Months Ended ----------------------------------------------------------- March 31, June 30, September 30, December 31, March 31, Homeowners 2004 2004 2004 2004 2005 - ----------------------------------------------------------------------------------------------------------------------------- REVENUES Earned premiums $182 $185 $ 188 $ 188 $184 Investment income, net 9 9 11 6 10 Other revenues 1 1 2 2 1 --------------------------------------------------- 192 195 201 196 195 --------------------------------------------------- EXPENSES Losses 89 106 155 83 82 Loss adjustment expense 18 19 26 13 11 Other expenses 52 54 52 57 56 --------------------------------------------------- 159 179 233 153 149 --------------------------------------------------- Operating earnings (loss) before provision (benefit) for income taxes 33 16 (32) 43 46 Provision (benefit) for income taxes 11 4 (14) 15 15 --------------------------------------------------- OPERATING EARNINGS (LOSS) $ 22 $ 12 ($ 18) $ 28 $ 31 =================================================== Net investment gains (losses), net of income taxes 0 0 0 (1) 0 Adjustments related to net investment gains (losses), net of income taxes 0 0 0 0 0 Cumulative effect of a change in accounting, net of income taxes 0 0 0 0 0 Discontinued operations, net of income taxes 0 0 0 0 0 --------------------------------------------------- Net income $ 22 $ 12 ($ 18) $ 27 $ 31 ===================================================
29 [METLIFE LOGO] - -------------------------------------------------------------------------------- AUTO & HOME OPERATIONS STATEMENTS OF OPERATING EARNINGS - PRODUCT LEVEL UNAUDITED (DOLLARS IN MILLIONS)
For the Three Months Ended ----------------------------------------------------------- March 31, June 30, September 30, December 31, March 31, Other 2004 2004 2004 2004 2005 - ----------------------------------------------------------------------------------------------------------------------------- REVENUES Earned premiums $13 $ 11 $ 13 $11 $13 Investment income, net 1 1 (1) 1 1 Other revenues 2 0 0 4 2 ------------------------------------------------------ 16 12 12 16 16 ------------------------------------------------------ EXPENSES Losses 6 11 5 3 6 Loss adjustment expense 0 0 1 1 0 Other expenses 7 4 6 5 7 ------------------------------------------------------ 13 15 12 9 13 ------------------------------------------------------ Operating earnings (loss) before provision (benefit) for income taxes 3 (3) 0 7 3 Provision (benefit) for income taxes 1 (1) 0 2 1 ------------------------------------------------------ OPERATING EARNINGS (LOSS) $ 2 ($ 2) $ 0 $ 5 $ 2 ====================================================== Net investment gains (losses), net of income taxes 0 0 0 0 0 Adjustments related to net investment gains (losses), net of income taxes 0 0 0 0 0 Cumulative effect of a change in accounting, net of income taxes 0 0 0 0 0 Discontinued operations, net of income taxes 0 0 0 0 0 ------------------------------------------------------ Net income $ 2 ($ 2) $ 0 $ 5 $ 2 ======================================================
30 [METLIFE LOGO] - -------------------------------------------------------------------------------- AUTO & HOME OPERATIONS WRITTEN PREMIUMS BY PRODUCT AND SELECTED FINANCIAL INFORMATION AND SUPPLEMENTAL DATA
For the Three Months Ended ------------------------------------------------------------------ March 31, June 30, September 30, December 31, March 31, Unaudited (Dollars in millions) 2004 2004 2004 2004 2005 - ----------------------------------------------------------------------------------------------------------- WRITTEN PREMIUMS BY PRODUCT Preferred/Standard Automobile $ 517 $ 521 $ 534 $ 502 $ 512 Non-Standard Automobile 21 19 19 21 17 Homeowners 155 199 212 186 160 Other 20 9 11 9 17 ------------------------------------------------------------------ Total $ 713 $ 748 $ 776 $ 718 $ 706 ================================================================== SELECTED FINANCIAL INFORMATION AND SUPPLEMENTAL DATA TOTAL AUTO & HOME Loss and loss adjustment expense ratio 72.7% 67.5% 74.6% 67.2% 65.7% Other expense ratio 26.1% 25.6% 25.5% 28.0% 26.7% ------------------------------------------------------------------ Total combined ratio (1) 98.8% 93.1% 100.1% 95.2% 92.4% Effect of catastrophe losses 2.3% 5.0% 15.3% 3.0% 1.5% ------------------------------------------------------------------ Combined ratio excluding catastrophes 96.5% 88.1% 84.8% 92.2% 90.9% ================================================================== AUTO Loss and loss adjustment expense ratio 78.1% 66.9% 68.0% 73.7% 71.5% Other expense ratio 24.8% 24.3% 24.3% 26.9% 25.0% ------------------------------------------------------------------ Total combined ratio (1) 102.9% 91.2% 92.3% 100.6% 96.5% Effect of catastrophe losses 0.1% 1.1% 1.7% 0.5% 0.4% ------------------------------------------------------------------ Combined ratio excluding catastrophes 102.8% 90.1% 90.6% 100.1% 96.1% ================================================================== HOMEOWNERS Loss and loss adjustment expense ratio 58.7% 67.3% 96.0% 50.8% 50.2% Other expense ratio 28.2% 28.8% 27.6% 30.1% 29.7% ------------------------------------------------------------------ Total combined ratio (1) 86.9% 96.1% 123.6% 80.9% 79.9% Effect of catastrophe losses 9.0% 16.6% 55.4% 10.2% 4.9% ------------------------------------------------------------------ Combined ratio excluding catastrophes 77.9% 79.5% 68.2% 70.7% 75.0% ================================================================== OTHER Loss and loss adjustment expense ratio 44.6% 100.9% 40.3% 33.7% 49.3% Other expense ratio 50.7% 35.4% 39.9% 43.8% 56.1% ------------------------------------------------------------------ Total combined ratio (1) 95.3% 136.3% 80.2% 77.5% 105.4% Effect of catastrophe losses 0.0% 0.0% 0.0% 0.0% 0.0% ------------------------------------------------------------------ Combined ratio excluding catastrophes 95.3% 136.3% 80.2% 77.5% 105.4% ================================================================== PRE-TAX CATASTROPHE LOSSES Auto $ 0 $ 6 $ 9 $ 3 $ 2 Homeowners 16 31 104 20 9 Other 0 0 0 0 0 ------------------------------------------------------------------ Total $ 16 $ 37 $ 113 $ 23 $ 11 ================================================================== CATASTROPHE POINTS ON COMBINED RATIOS 2.3 5.0 15.3 3.0 1.6 NUMBER OF SALES REPRESENTATIVES 88 88 80 87 89 ==================================================================
(1) The combined ratio reflects payment fees as a credit to Other Expenses, for the three months ended March 31, 2004, June 30, 2004, September 30, 2004, December 31, 2004 and March 31, 2005, which resulted in a 0.8, 0.7, 0.7, 0.7 and 0.8 of a percentage point decrease in the combined ratio for the periods ended, respectively. The decreases for Auto, Homeowners and Other were, 0.9, 0.5 and 0.4 of a percentage point, respectively, for March 31, 2004, 0.8, 0.5 and 0.6 of a percentage point, respectively, for June 30, 2004, 0.8, 0.4 and 0.7 of a percentage point, respectively, for September 30, 2004, 0.8, 0.4 and 0.7 of a percentage point, respectively, for December 31, 2004 and 0.8, 0.5 and 0.5 of a percentage point, respectively, for March 31, 2005. 31 [METLIFE LOGO] - -------------------------------------------------------------------------------- INTERNATIONAL OPERATIONS STATEMENT OF OPERATING EARNINGS
For the Three Months Ended ------------------------------------------------------------------ March 31, June 30, September 30, December 31, March 31, Unaudited (Dollars in millions) 2004 2004 2004 2004 2005 - ------------------------------------------------------------------------------------------------------------------------------ REVENUES Premiums(1) $ 402 $ 392 $ 437 $ 463 $ 502 Universal life and investment-type product policy fees 83 86 91 90 119 Investment income, net 123 137 151 174 150 Other revenues 4 8 2 9 3 ------------------------------------------------------------------ 612 623 681 736 774 ------------------------------------------------------------------ EXPENSES Policyholder benefits and dividends 378 400 424 450 446 Interest credited to policyholder account balances 37 32 37 46 47 Capitalization of deferred policy acquisition costs (71) (93) (103) (117) (125) Amortization of deferred policy acquisition costs 31 36 32 38 56 Other expenses 172 194 222 283 246 ------------------------------------------------------------------ 547 569 612 700 670 ------------------------------------------------------------------ Operating earnings before provision for income taxes 65 54 69 36 104 Provision for income taxes 21 13 24 10 37 ------------------------------------------------------------------ OPERATING EARNINGS $ 44 $ 41 $ 45 $ 26 $ 67 ================================================================== NET INCOME RECONCILIATION Operating earnings $ 44 $ 41 $ 45 $ 26 $ 67 Net investment gains (losses) 26 (2) 3 (4) 0 Minority interest - net investment gains (losses) 0 0 0 0 0 Net investment gains (losses) tax benefit (provision) (6) (1) (1) 1 0 ------------------------------------------------------------------ Net investment gains (losses), net of income taxes 20 (3) 2 (3) 0 Adjustments related to policyholder benefits and dividends 3 49 (14) (6) 14 Adjustments related to other expenses 0 0 0 0 0 Adjustments related to tax benefit (provision) (1) (17) 5 2 (5) ------------------------------------------------------------------ Adjustments related to net investment gains (losses), net of income taxes (2) 2 32 (9) (4) 9 Cumulative effect of a change in accounting, net of income taxes (3) (30) 0 0 0 0 Discontinued operations, net of income taxes 0 0 0 0 0 ------------------------------------------------------------------ Net income $ 36 $ 70 $ 38 $ 19 $ 76 ------------------------------------------------------------------ ------------------------------------------------------------------ NUMBER OF PROFESSIONAL SALES REPRESENTATIVES 1,602 1,810 3,222 3,491 3,749 ==================================================================
(1) Certain amounts in prior periods presented throughout the QFS have been reclassified to conform with current period presentation. (2) Adjustments related to net investment gains (losses), net of income taxes, include amortization of deferred policy acquisition costs and amounts allocable to certain participating contracts. (3) The cumulative effect of a change in accounting, net of income taxes, for the period ended March 31, 2004, is in accordance with AICPA Statement of Position 03-1, Accounting and Reporting by Insurance Enterprises for Certain Nontraditional Long-Duration Contracts and for Separate Accounts. 32 [METLIFE LOGO] - -------------------------------------------------------------------------------- REINSURANCE OPERATIONS STATEMENT OF OPERATING EARNINGS
For the Three Months Ended ------------------------------------------------------------------ March 31, June 30, September 30, December 31, March 31, Unaudited (Dollars in millions) 2004 2004 2004 2004 2005 - ----------------------------------------------------------------------------------------------------------------------------------- REVENUES Premiums, net $ 816 $ 807 $ 822 $ 922 $ 907 Investment income, net 130 136 144 204 161 Other revenues 12 15 14 16 11 ------------------------------------------------------------------ 958 958 980 1,142 1,079 ------------------------------------------------------------------ EXPENSES Claims and other policy benefits 659 651 675 760 750 Interest credited to policyholder account balances 51 52 48 61 55 Policy acquisition costs and other insurance expenses 139 133 156 192 148 Other expenses 45 46 47 44 43 ------------------------------------------------------------------ 894 882 926 1,057 996 ------------------------------------------------------------------ Operating earnings before provision for income taxes and minority interest 64 76 54 85 83 Provision for income taxes 9 13 9 15 13 ------------------------------------------------------------------ Operating earnings before minority interest 55 63 45 70 70 Elimination of minority interest, before tax 37 40 31 39 43 ------------------------------------------------------------------ CONTRIBUTION TO METLIFE $ 18 $ 23 $ 14 $ 31 $ 27 ================================================================== NET INCOME RECONCILIATION - ------------------------- Operating earnings $ 18 $ 23 $ 14 $ 31 $ 27 Net investment gains (losses) 21 32 (17) (2) 28 Minority interest - net investment gains (losses) (8) (8) 2 1 (5) Net investment gains (losses) tax benefit (provision) (4) (9) 6 1 (8) ------------------------------------------------------------------ Net investment gains (losses), net of income taxes 9 15 (9) 0 15 Adjustments related to policyholder benefits and dividends 0 0 0 0 0 Adjustments related to other expenses (4) (13) 14 1 (17) Adjustments related to tax benefit (provision) 1 5 (5) 0 6 ------------------------------------------------------------------ Adjustments related to net investment gains (losses), net of income taxes (1) (3) (8) 9 1 (11) Cumulative effect of a change in accounting, net of income taxes (2) 5 0 0 0 0 Discontinued operations, net of income taxes 0 0 0 0 0 ------------------------------------------------------------------ Net income $ 29 $ 30 $ 14 $ 32 $ 31 ==================================================================
(1) Adjustments related to net investment gains (losses), net of income taxes, include amortization of deferred policy acquisition costs. (2) The cumulative effect of a change in accounting, net of income taxes, for the period ended March 31, 2004, is in accordance with AICPA Statement of Position 03-1, Accounting and Reporting by Insurance Enterprises for Certain Nontraditional Long-Duration Contracts and for Separate Accounts. 33 [METLIFE LOGO] - -------------------------------------------------------------------------------- REINSURANCE OPERATIONS PRE-TAX AND PRE-MINORITY INTEREST OPERATING EARNINGS BY REGION AND RESERVES BY REGION
For the Three Months Ended ------------------------------------------------------------------ March 31, June 30, September 30, December 31, March 31, Unaudited (Dollars in millions) 2004 2004 2004 2004 2005 - ----------------------------------------------------------------------------------------------------------------- PRE-TAX AND PRE-MINORITY INTEREST OPERATING EARNINGS BY REGION United States $ 52 $ 60 $ 69 $ 82 $ 50 Canada 16 15 16 17 23 Asia-Pacific 6 5 (2) 2 5 Other international markets 3 11 9 4 15 Corporate (13) (15) (38) (20) (10) ------------------------------------------------------------------ Total pre-tax and pre-minority interest operating earnings $ 64 $ 76 $ 54 $ 85 $ 83 ================================================================== POLICY BENEFITS AND INTEREST SENSITIVE CONTRACT LIABILITIES BY REGION Traditional U.S. $ 4,636 $ 4,385 $ 4,458 $ 4,253 $ 4,285 Asset intensive 3,343 3,645 3,893 4,085 4,159 Other 120 125 58 124 122 ------------------------------------------------------------------ Total U.S. 8,099 8,155 8,409 8,462 8,566 ------------------------------------------------------------------ Canada 1,151 1,167 1,243 1,375 1,367 Asia-Pacific 420 357 456 517 548 Other international markets 499 497 549 610 693 ------------------------------------------------------------------ Total International 2,070 2,021 2,248 2,502 2,608 ------------------------------------------------------------------ Total policy benefits and interest sensitive contract liabilities $ 10,169 $ 10,176 $ 10,657 $ 10,964 $ 11,174 ==================================================================
34 [METLIFE LOGO] - -------------------------------------------------------------------------------- CORPORATE, OTHER & ELIMINATIONS STATEMENT OF OPERATING EARNINGS
For the Three Months Ended ------------------------------------------------------------------ March 31, June 30, September 30, December 31, March 31, Unaudited (Dollars in millions) 2004 2004 2004 2004 2005 - ----------------------------------------------------------------------------------------------------------------------------------- REVENUES Premiums ($ 1) ($ 4) ($ 5) $ 1 $ 1 Universal life and investment-type product policy fees 0 0 2 0 0 Investment income, net 84 163 129 195 150 Other revenues 7 (7) 7 0 3 ----------------------------------------------------------------- 90 152 133 196 154 ----------------------------------------------------------------- EXPENSES Policyholder benefits and dividends 2 2 1 3 5 Interest credited to policyholder account balances 0 0 0 0 0 Interest expense 78 88 94 97 105 Other expenses 54 76 44 75 76 ----------------------------------------------------------------- 134 166 139 175 186 ----------------------------------------------------------------- Operating earnings before (benefit) provision for income taxes (44) (14) (6) 21 (32) Benefit for income taxes (27) (111) (34) (7) (41) ----------------------------------------------------------------- OPERATING EARNINGS (LOSS) ($ 17) $ 97(2) $ 28(3) $ 28 $ 9 ================================================================= NET INCOME RECONCILIATION Operating earnings (loss) ($ 17) $ 97 $ 28 $ 28 $ 9 Net investment gains (losses) 4 83 (17) (86) (113) Minority interest - net investment gains (losses) 0 0 0 0 0 Net investment gains (losses) tax benefit (provision) (2) (31) 3 33 43 ----------------------------------------------------------------- Net investment gains (losses), net of income taxes 2 52 (14) (53) (70) Adjustments related to policyholder benefits and dividends 0 0 0 0 0 Adjustments related to other expenses 0 0 0 0 0 Adjustments related to tax benefit (provision) 0 0 1 (1) 0 ----------------------------------------------------------------- Adjustments related to net investment gains (losses), net of income taxes (1) 0 0 1 (1) 0 Cumulative effect of a change in accounting, net of income taxes (1) 0 0 0 0 Discontinued operations, net of income taxes 4 14 5 (4) 151 ----------------------------------------------------------------- Net income ($ 12) $ 163 $ 20 ($ 30) $ 90 =================================================================
(1) Adjustments related to net investment gains (losses), net of income taxes, include amounts allocable to certain participating contracts. (2) Operating earnings for the period ended June 30, 2004 includes a $32 million charge, net of income taxes, from a contribution to the MetLife Foundation made by Metropolitan Life Insurance Company and a $105 million benefit related to a previously disclosed resolution of an IRS audit. (3) Operating earnings for the three months ended September 30, 2004 includes a $9 million benefit from a revision of the estimate of income taxes for 2003. 35 [METLIFE LOGO] - -------------------------------------------------------------------------------- METLIFE, INC. INVESTMENT RESULTS BY ASSET CATEGORY AND ANNUALIZED YIELDS
At or for the Three Months Ended ---------------------------------------------------------------------- March 31, June 30, September 30, December 31, March 31, Unaudited (Dollars in millions) 2004 2004 2004 2004 2005 - ------------------------------------------------------------------------------------------------------------------------------ FIXED MATURITIES (1) Yield (2) 6.62% 6.64% 6.44% 6.46% 6.33% Income (3) $ 2,232 $ 2,291 $ 2,246 $ 2,273 $ 2,278 Investment gains (losses) $ 34 ($ 3) $ 61 ($ 21) ($ 114) Ending Carrying Value (3) $ 174,100 $ 170,192 $ 176,091 $ 176,763 $ 182,653 MORTGAGE AND CONSUMER LOANS Yield (4) 6.81% 6.83% 7.02% 6.93% 6.55% Income $ 449 $ 468 $ 507 $ 537 $ 527 Investment gains (losses) $ 0 $ 0 ($ 8) ($ 39) ($ 11) Ending Carrying Value $ 26,562 $ 28,118 $ 29,620 $ 32,406 $ 31,977 REAL ESTATE AND REAL ESTATE JOINT VENTURES Yield (4) 11.85% 13.37% 10.55% 11.04% 11.11% Income (5) $ 139 $ 148 $ 111 $ 117 $ 119 Investment gains (losses) (6) $ 21 $ 133 ($ 5) $ 13 $ 18 Ending Carrying Value $ 4,696 $ 4,150 $ 4,263 $ 4,233 $ 4,306 POLICY LOANS Yield (4) 6.12% 6.13% 6.14% 6.23% 6.17% Income $ 134 $ 134 $ 135 $ 138 $ 138 Ending Carrying Value $ 8,758 $ 8,766 $ 8,801 $ 8,899 $ 8,953 EQUITY SECURITIES AND OTHER LIMITED PARTNERSHIP INTERESTS (1) Yield (4) 3.05% 10.32% 7.42% 18.26% 9.84% Income $ 29 $ 101 $ 75 $ 199 $ 118 Investment gains (losses) $ 0 $ 87 $ 96 $ 25 $ 95 Ending Carrying Value $ 4,290 $ 4,521 $ 4,715 $ 5,095 $ 5,567 CASH AND SHORT-TERM INVESTMENTS (1) Yield (4) 2.70% 2.39% 3.16% 3.67% 4.76% Income $ 30 $ 30 $ 43 $ 50 $ 64 Investment gains (losses) $ 0 $ 0 $ 0 ($ 1) ($ 1) Ending Carrying Value $ 5,098 $ 6,501 $ 6,043 $ 6,714 $ 6,476 OTHER INVESTED ASSETS Yield (4) 5.01% 4.29% 5.51% 10.55% 9.06% Income (7) $ 51 $ 46 $ 55 $ 104 $ 95 Investment gains (losses) (8) $ 68 ($ 60) $ 34 ($ 191) ($ 8) Ending Carrying Value $ 5,083 $ 5,108 $ 4,395 $ 4,926 $ 4,960 TOTAL INVESTMENTS Gross investment income yield 6.56% 6.72% 6.51% 6.88% 6.55% Investment fees and expenses yield (0.14%) (0.13%) (0.13%) (0.14%) (0.12%) ---------------------------------------------------------------------- NET INVESTMENT INCOME YIELD 6.42% 6.59% 6.38% 6.74% 6.43% ====================================================================== Gross investment income $ 3,064 $ 3,218 $ 3,172 $ 3,418 $ 3,339 Investment fees and expenses (64) (61) (65) (72) (59) ---------------------------------------------------------------------- NET INVESTMENT INCOME $ 3,000 $ 3,157 $ 3,107 $ 3,346 $ 3,280 ====================================================================== Ending Carrying Value $ 228,587 $ 227,356 $ 233,928 $ 239,036 $ 244,892 ====================================================================== Gross investment gains $ 243 $ 411 $ 351 $ 309 $ 373 Gross investment losses (85) (126) (201) (175) (322) Writedowns (12) (77) (44) (79) (51) ---------------------------------------------------------------------- Subtotal 146 208 106 55 0 Derivative & other instruments not qualifying for hedge accounting (23) (51) 72 (269) (21) ---------------------------------------------------------------------- NET INVESTMENT GAINS (LOSSES) 123 157 178 (214) (21) Minority interest - net investment gains (losses) (8) (8) 2 5 (9) Net investment gains (losses) tax benefit (provision) (39) (47) (62) 71 9 ---------------------------------------------------------------------- NET INVESTMENT GAINS (LOSSES), NET OF INCOME TAXES $ 76 $ 102 $ 118 ($ 138) ($ 21) ======================================================================
(1) Included in ending carrying value, income and investment gains (losses) are $2,139 million, $22 million, and $12 million, respectively, related to the consolidation of separate accounts under AICPA Statement of Position 03-1 for the three months ended March 31, 2005. (2) Fixed maturities yield is annualized and is based on quarterly average amortized cost. (3) Fixed maturities includes $134 million and $1 million in ending carrying value and income, respectively, relating to trading securities for the three months ended March 31, 2005. (4) Yields are annualized and based on quarterly average carrying values. (5) Included in income from real estate and real estate joint ventures is $48 million, $54 million, $32 million, $32 million and $39 million related to discontinued operations for the three months ended March 31, 2004, June 30, 2004, September 30, 2004, December 31, 2004 and March 31, 2005, respectively. (6) Included in investment gains (losses) from real estate and real estate joint ventures is $20 million, $132 million, ($16) million, $10 million, and $18 million related to discontinued operations for the three months ended March 31, 2004, June 30, 2004, September 30, 2004, December 31, 2004, and March 31, 2005, respectively. (7) Included in income from other invested assets are scheduled settlement payments on derivative instruments that do not qualify for hedge accounting under Statement of Financial Accounting Standards No. 133 of $14 million, $22 million, $12 million, $3 million and $24 million for the three months ended March 31, 2004, June 30, 2004, September 30, 2004, December 31, 2004 and March 31, 2005, respectively. (8) Included in investment gains (losses) for the three months ended December 31, 2004 is a charge of $26 million related to a funds withheld reinsurance treaty that was converted to a coinsurance agreement. 36 [METLIFE LOGO] - -------------------------------------------------------------------------------- METLIFE, INC. INVESTMENT RESULTS BY ASSET CATEGORY AND ANNUALIZED YIELDS
At or for the Year-to-date ---------------------------------------------------------------------- March 31, June 30, September 30, December 31, March 31, Unaudited (Dollars in millions) 2004 2004 2004 2004 2005 - ------------------------------------------------------------------------------------------------------------------------------ FIXED MATURITIES (1) Yield (2) 6.62% 6.64% 6.58% 6.55% 6.33% Income $ 2,232 $ 4,523 $ 6,769 $ 9,042 $ 2,278 Investment gains (losses) $ 34 $ 31 $ 92 $ 71 ($ 114) Ending Carrying Value $ 174,100 $ 170,192 $ 176,091 $ 176,763 $ 182,653 MORTGAGE AND CONSUMER LOANS Yield (3) 6.81% 6.80% 6.87% 6.86% 6.55% Income $ 449 $ 917 $ 1,424 $ 1,961 $ 527 Investment gains (losses) $ 0 $ 0 ($ 8) ($ 47) ($ 11) Ending Carrying Value $ 26,562 $ 28,118 $ 29,620 $ 32,406 $ 31,977 REAL ESTATE AND REAL ESTATE JOINT VENTURES Yield (3) 11.85% 12.72% 11.92% 11.69% 11.11% Income (4) $ 139 $ 287 $ 398 $ 515 $ 119 Investment gains (losses) (5) $ 21 $ 154 $ 149 $ 162 $ 18 Ending Carrying Value $ 4,696 $ 4,150 $ 4,263 $ 4,233 $ 4,306 POLICY LOANS Yield (3) 6.12% 6.12% 6.13% 6.15% 6.17% Income $ 134 $ 268 $ 403 $ 541 $ 138 Ending Carrying Value $ 8,758 $ 8,766 $ 8,801 $ 8,899 $ 8,953 EQUITY SECURITIES AND OTHER LIMITED PARTNERSHIP INTERESTS (1) Yield (3) 3.05% 6.74% 6.96% 9.96% 9.84% Income $ 29 $ 130 $ 205 $ 404 $ 118 Investment gains (losses) $ 0 $ 87 $ 183 $ 208 $ 95 Ending Carrying Value $ 4,290 $ 4,521 $ 4,715 $ 5,095 $ 5,567 CASH AND SHORT-TERM INVESTMENTS (1) Yield (3) 2.70% 2.47% 2.77% 3.01% 4.76% Income $ 30 $ 60 $ 103 $ 153 $ 64 Investment gains (losses) $ 0 $ 0 $ 0 ($ 1) ($ 1) Ending Carrying Value $ 5,098 $ 6,501 $ 6,043 $ 6,714 $ 6,476 OTHER INVESTED ASSETS Yield (3) 5.01% 4.68% 5.03% 6.30% 9.06% Income (6) $ 51 $ 97 $ 152 $ 256 $ 95 Investment gains (losses) (7) $ 68 $ 8 $ 42 ($ 149) ($ 8) Ending Carrying Value $ 5,083 $ 5,108 $ 4,395 $ 4,926 $ 4,960 TOTAL INVESTMENTS Gross investment income yield 6.56% 6.64% 6.60% 6.67% 6.55% Investment fees and expenses yield (0.14%) (0.13%) (0.13%) (0.14%) (0.12%) ---------------------------------------------------------------------- NET INVESTMENT INCOME YIELD 6.42% 6.51% 6.47% 6.53% 6.43% ====================================================================== Gross investment income $ 3,064 $ 6,282 $ 9,454 $ 12,872 $ 3,339 Investment fees and expenses (64) (125) (190) (262) (59) ---------------------------------------------------------------------- NET INVESTMENT INCOME $ 3,000 $ 6,157 $ 9,264 $ 12,610 $ 3,280 ====================================================================== Ending Carrying Value $ 228,587 $ 227,356 $ 233,928 $ 239,036 $ 244,892 ====================================================================== Gross investment gains $ 243 $ 654 $ 1,005 $ 1,314 $ 373 Gross investment losses (85) (211) (412) (587) (322) Writedowns (12) (89) (133) (212) (51) ---------------------------------------------------------------------- Subtotal 146 354 460 515 0 Derivative & other instruments not qualifying for hedge accounting (23) (74) (2) (271) (21) ---------------------------------------------------------------------- NET INVESTMENT GAINS (LOSSES) 123 280 458 244 (21) Minority interest - net investment gains (losses) (8) (16) (14) (9) (9) Net investment gains (losses) tax benefit (provision) (39) (86) (148) (77) 9 ---------------------------------------------------------------------- NET INVESTMENT GAINS (LOSSES), NET OF INCOME TAXES $ 76 $ 178 $ 296 $ 158 ($ 21) ======================================================================
(1) Included in ending carrying value, income and investment-related gains (losses) is $2,139 million, $22 million and $12 million, respectively, related to the consolidation of separate accounts under AICPA Statement of Position 03-1 for year-to-date March 31, 2005. (2) Fixed maturities yield is annualized and is based on quarterly average amortized cost. (3) Yields are annualized and based on quarterly average carrying values. (4) Included in income from real estate and real estate joint ventures is $48 million, $102 million, $134 million, $166 million and $39 million related to discontinued operations for year-to-date March 31, 2004, June 30, 2004, September 30, 2004, December 31, 2004 and March 31, 2005, respectively. (5) Included in investment gains (losses) from real estate and real estate joint ventures is $20 million, $152 million, $136 million, $146 million and $18 million related to discontinued operations for year-to-date March 31, 2004, June 30, 2004, September 30, 2004, December 31, 2004 and March 31, 2005, respectively. (6) Included in income from other invested assets are scheduled settlement payments on derivative instruments that do not qualify for hedge accounting under Statement of Financial Accounting Standards No. 133 of $14 million, $36 million, $48 million, $51 million and $24 million for year-to-date March 31, 2004, June 30, 2004, September 30, 2004, December 31, 2004 and March 31, 2005, respectively. (7) Included in investment gains (losses) for the three months ended December 31, 2004 is a charge of $26 million related to a funds withheld reinsurance treaty that was converted to a coinsurance agreement. 37 [METLIFE LOGO] - -------------------------------------------------------------------------------- METLIFE, INC. GROSS UNREALIZED GAINS AND LOSSES AGING SCHEDULE FIXED MATURITIES (1) (2)
At September 30, At December 31, At March 31, 2004 At June 30, 2004 2004 2004 At March 31, 2005 ------------------ ------------------ ------------------ ------------------ ------------------ Unaudited (Dollars in millions) Amount % of Total Amount % of Total Amount % of Total Amount % of Total Amount % of Total - ----------------------------------------------------------------------------------------------------------------------------------- Less than 20% $ 364 86.3% $ 1,735 96.6% $ 530 90.8% $ 463 92.4% $ 1,185 99.1% 20% or more for less than six months 52 12.3% 47 2.6% 44 7.5% 17 3.4% 5 0.4% 20% or more for six months or greater 6 1.4% 15 0.8% 10 1.7% 21 4.2% 6 0.5% ------------------------------------------------------------------------------------------- Total Gross Unrealized Losses $ 422 100.0% $ 1,797 100.0% $ 584 100.0% $ 501 100.0% $ 1,196 100.0% =========================================================================================== Total Gross Unrealized Gains $12,137 $ 7,087 $ 9,703 $10,268 $ 8,485 ======= ======= ======= ======= =======
GROSS UNREALIZED GAINS AND LOSSES AGING SCHEDULE EQUITY SECURITIES (1) (2)
At September 30, At December 31, At March 31, 2004 At June 30, 2004 2004 2004 At March 31, 2005 ------------------ ------------------ ------------------ ------------------ ------------------ Unaudited (Dollars in millions) Amount % of Total Amount % of Total Amount % of Total Amount % of Total Amount % of Total - ----------------------------------------------------------------------------------------------------------------------------------- Less than 20% $ 5 45.5% $ 13 44.8% $ 10 40.0% $ 7 87.5% $ 44 78.6% 20% or more for less than six months 6 54.5% 16 55.2% 15 60.0% 1 12.5% 12 21.4% 20% or more for six months or greater 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% ------------------------------------------------------------------------------------------- Total Gross Unrealized Losses $ 11 100.0% $ 29 100.0% $ 25 100.0% $ 8 100.0% $ 56 100.0% =========================================================================================== Total Gross Unrealized Gains $ 383 $ 336 $ 305 $ 283 $ 169 ======= ======= ======= ======= =======
(1) The Company's review of its fixed maturities and equity securities for impairments includes an analysis of the total gross unrealized losses by three categories of securities: (i) securities where the estimated fair value had declined and remained below amortized cost by less than 20%; (ii) securities where the estimated fair value had declined and remained below amortized cost by 20% or more for less than six months; and (iii) securities where the estimated value had declined and remained below amortized cost by 20% or more for six months or greater. (2) Certain amounts in prior periods presented have been reclassified/restated to conform with current period presentation. 38 [METLIFE LOGO] - -------------------------------------------------------------------------------- METLIFE, INC. SUMMARY OF FIXED MATURITIES AVAILABLE FOR SALE BY SECTOR AND QUALITY DISTRIBUTION
At March 31, 2004 At June 30, 2004 At September 30, 2004 -------------------- -------------------- --------------------- Unaudited (Dollars in millions) Amount % of Total Amount % of Total Amount % of Total - --------------------------------------------------------------------------------------------------------------- U.S. corporate securities $ 63,215 36.3% $ 60,619 35.6% $ 63,130 35.8% Residential mortgage-backed securities 31,825 18.3% 30,698 18.0% 30,978 17.6% Foreign corporate securities 24,654 14.2% 24,732 14.5% 27,076 15.4% US treasury/agency securities 17,065 9.8% 16,664 9.8% 16,561 9.4% Commercial mortgage-backed securities 11,955 6.9% 12,019 7.1% 12,016 6.8% Asset-backed securities 12,327 7.1% 12,444 7.3% 12,912 7.3% Foreign government securities 8,444 4.8% 8,019 4.7% 8,380 4.8% State and political subdivision securities 3,580 2.0% 3,675 2.2% 3,853 2.2% Other fixed maturity securities 491 0.3% 780 0.5% 644 0.4% ----------------------------------------------------------------- Total bonds 173,556 99.7% 169,650 99.7% 175,550 99.7% Redeemable preferred stock 544 0.3% 542 0.3% 541 0.3% ----------------------------------------------------------------- Total fixed maturities $174,100 100.0% $170,192 100.0% $176,091 100.0% ================================================================= NAIC RATING AGENCY RATING (1) EQUIVALENT DESIGNATION 1 Aaa / Aa / A $116,165 66.7% $113,607 66.8% $117,658 66.8% 2 Baa 44,842 25.8% 43,829 25.8% 45,728 25.9% 3 Ba 7,731 4.4% 7,334 4.3% 7,514 4.3% 4 B 3,929 2.3% 4,086 2.4% 4,089 2.3% 5 Caa and lower 700 0.4% 583 0.3% 443 0.3% 6 In or near default 189 0.1% 211 0.1% 118 0.1% ----------------------------------------------------------------- Total 173,556 99.7% 169,650 99.7% 175,550 99.7% Redeemable preferred stock 544 0.3% 542 0.3% 541 0.3% ----------------------------------------------------------------- Total Fixed Maturities $174,100 100.0% $170,192 100.0% $176,091 100.0% ================================================================= At December 31, 2004 At March 31, 2005 -------------------- -------------------- Unaudited (Dollars in millions) Amount % of Total Amount % of Total - ---------------------------------------------------------------------------------------- U.S. corporate securities $ 61,720 34.9% $ 60,417 33.1% Residential mortgage-backed securities 32,230 18.2% 34,650 19.0% Foreign corporate securities 27,838 15.7% 27,766 15.2% US treasury/agency securities 17,826 10.1% 21,770 11.9% Commercial mortgage-backed securities 12,501 7.1% 13,372 7.3% Asset-backed securities 10,876 6.1% 10,826 5.9% Foreign government securities 8,585 4.9% 8,932 4.9% State and political subdivision securities 3,899 2.2% 3,934 2.2% Other fixed maturity securities 985 0.6% 703 0.4% ------------------------------------------ Total bonds 176,460 99.8% 182,370 99.9% Redeemable preferred stock 303 0.2% 149 0.1% ------------------------------------------ Total fixed maturities $176,763 100.0% $182,519 100.0% ========================================== NAIC RATING AGENCY RATING (1) EQUIVALENT DESIGNATION 1 Aaa / Aa / A $118,779 67.2% $125,899 69.0% 2 Baa 45,311 25.6% 44,054 24.1% 3 Ba 7,500 4.2% 7,392 4.1% 4 B 4,414 2.5% 4,649 2.5% 5 Caa and lower 366 0.2% 325 0.2% 6 In or near default 90 0.1% 51 0.0% ------------------------------------------ Total 176,460 99.8% 182,370 99.9% Redeemable preferred stock 303 0.2% 149 0.1% ------------------------------------------ Total Fixed Maturities $176,763 100.0% $182,519 100.0% =========================================
(1) Amounts presented are based on rating agency designations. Comparisons between NAIC ratings and rating agency designations are published by the NAIC. METLIFE, INC. SUMMARY OF COMMERCIAL MORTGAGE LOANS BY REGION AND PROPERTY TYPE
At March 31, 2004 At June 30, 2004 At September 30, 2004 -------------------- -------------------- --------------------- Unaudited (Dollars in millions) Amount % of Total Amount % of Total Amount % of Total - ---------------------------------------------------------------------------------------------------- Pacific $ 5,172 25.1% $ 5,327 24.2% $ 5,608 24.3% South Atlantic 4,929 23.8% 5,247 23.8% 5,502 23.6% Middle Atlantic 3,450 16.6% 3,513 16.0% 3,704 15.9% East North Central 1,894 9.1% 2,294 10.4% 2,443 10.5% West South Central 1,415 6.8% 1,470 6.7% 1,775 7.6% New England 1,295 6.2% 1,302 5.9% 1,285 5.5% International 943 4.5% 1,064 4.8% 1,219 5.2% Mountain 763 3.7% 785 3.6% 741 3.2% West North Central 606 2.9% 625 2.8% 615 2.6% East South Central 265 1.3% 278 1.3% 276 1.2% Other 0 0.0% 100 0.5% 99 0.4% ----------------------------------------------------------------- Total $ 20,732 100.0% $ 22,005 100.0% $ 23,267 100.0% ================================================================= Office $ 9,570 46.1% $ 10,301 46.8% $ 10,826 46.6% Retail 4,961 23.9% 5,221 23.7% 5,288 22.7% Apartments 2,916 14.1% 3,001 13.6% 3,095 13.3% Industrial 1,852 8.9% 1,951 8.9% 2,034 8.7% Hotel 1,027 5.0% 1,098 5.0% 1,227 5.3% Other 406 2.0% 433 2.0% 797 3.4% ----------------------------------------------------------------- Total $ 20,732 100.0% $ 22,005 100.0% $ 23,267 100.0% ================================================================= At December 31, 2004 At March 31, 2005 -------------------- -------------------- Unaudited (Dollars in millions) Amount % of Total Amount % of Total - ------------------------------- -------- ---------- -------- ---------- Pacific $ 6,075 24.3% $ 5,888 23.9% South Atlantic 5,696 22.8% 5,613 22.8% Middle Atlantic 4,057 16.2% 3,898 15.8% East North Central 2,550 10.2% 2,565 10.4% West South Central 2,024 8.1% 2,139 8.7% New England 1,412 5.6% 1,409 5.7% International 1,364 5.5% 1,343 5.5% Mountain 778 3.1% 780 3.2% West North Central 667 2.7% 631 2.5% East South Central 268 1.1% 267 1.1% Other 99 0.4% 98 0.4% ------------------------------------------ Total $ 24,990 100.0% $ 24,631 100.0% ========================================== Office $ 11,500 46.0% $ 10,798 43.8% Retail 5,698 22.8% 5,754 23.4% Apartments 3,264 13.1% 3,330 13.5% Industrial 2,499 10.0% 2,749 11.2% Hotel 1,245 5.0% 1,212 4.9% Other 784 3.1% 788 3.2% ------------------------------------------ Total $ 24,990 100.0% $ 24,631 100.0% ==========================================
39 [METLIFE LOGO] - -------------------------------------------------------------------------------- METLIFE, INC. SUMMARY OF REAL ESTATE
At March 31, At June 30, At September 30, At December 31, At March 31, Unaudited (Dollars in millions) 2004 2004 2004 2004 2005 - --------------------------------------------------------------------------------------------------------------------------- Wholly owned $ 4,409 $ 3,823 $ 3,911 $ 3,843 $ 3,768 Joint ventures 284 325 350 386 534 ------------------------------------------------------------------------- Subtotal 4,693 4,148 4,261 4,229 4,302 Foreclosed 3 2 2 4 4 ------------------------------------------------------------------------- Total Real Estate (1) $ 4,696 $ 4,150 $ 4,263 $ 4,233 $ 4,306 =========================================================================
(1) Includes real estate held-for-sale and held-for-investment. METLIFE, INC. SUMMARY OF MORTGAGES AND CONSUMER LOANS
At March 31, At June 30, At September 30, At December 31, At March 31, Unaudited (Dollars in millions) 2004 2004 2004 2004 2005 - --------------------------------------------------------------------------------------------------------------------------- COMMERCIAL MORTGAGES $ 20,732 $ 22,005 $ 23,267 $ 24,990 $ 24,631 AGRICULTURAL MORTGAGES 5,226 5,377 5,593 5,907 5,929 CONSUMER LOANS 604 736 760 1,509 1,417 ------------------------------------------------------------------------ TOTAL $ 26,562 $ 28,118 $ 29,620 $ 32,406 $ 31,977 ========================================================================
METLIFE, INC. DISTRIBUTION OF ASSETS UNDER MANAGEMENT
At March 31, At June 30, At September 30, At December 31, At March 31, Unaudited (Dollars in billions) 2004 2004 2004 2004 2005 - --------------------------------------------------------------------------------------------------------------------------- METLIFE $ 258.7 $ 258.3 $ 265.0 $ 270.0 $ 276.9 METLIFE SEPARATE ACCOUNT 78.3 79.7 81.2 86.8 85.8 ------------------------------------------------------------------------ TOTAL ASSETS UNDER MANAGEMENT $ 337.0 $ 338.0 $ 346.2 $ 356.8 $ 362.7 ========================================================================
40 [METLIFE LOGO] - -------------------------------------------------------------------------------- COMPANY RATINGS AS OF APRIL 26, 2005 (1)
Moody's Standard & A.M. Best Fitch Investors Service Poor's Company Ratings ----------------------------------------------------- FINANCIAL STRENGTH RATINGS - -------------------------- Metropolitan Life Insurance Company Aa2 * AA * A+ AA Metropolitan Life Insurance Company (Short-term rating) P-1 A-1+ NR NR First MetLife Investors Insurance Co. NR AA * A+ NR General American Life Insurance Company Aa2 * AA * A+ AA MetLife Investors Insurance Company Aa2 * AA * A+ AA MetLife Investors Insurance Company of California NR AA * A+ NR MetLife Investors USA Insurance Company Aa3 * AA * A+ AA New England Life Insurance Company Aa2 * AA * A+ AA Paragon Life Insurance Company NR AA * A+ AA Texas Life Insurance Company NR NR A NR RGA Reinsurance Company A1 AA- * A+ AA- Metropolitan Property and Casualty Insurance Company Aa3 * NR A NR Metropolitan Casualty Insurance Company NR NR A NR Metropolitan Direct Property and Casualty Insurance Co. NR NR A NR Metropolitan General Insurance Company NR NR A NR Metropolitan Group Property & Casualty Insurance Co. NR NR A NR Metropolitan Lloyds Insurance Company of Texas NR NR A NR CREDIT RATINGS - -------------- MetLife, Inc. Senior Unsecured A2 * A * a * A Commercial Paper P-1 * A-1 * AMB-1+* F1 Metropolitan Life Insurance Company Surplus Notes A1 * A+ * a+ * A+ MetLife Funding, Inc. Commercial Paper P-1 A-1+ AMB-1+* F1+ General American Life Insurance Company Surplus Notes A1 * A+ * a+ * NR GenAmerica Capital I Preferred Stock A3 * BBB+ * NR A- Reinsurance Group of America, Incorporated Senior Unsecured Baa1 ** A- * a- A- RGA Capital Trust I Preferred Stock Baa2 ** BBB * bbb+ BBB+
* Moody's outlook for these ratings is negative. Standard & Poors and A.M. Best Company ratings are credit watch with negative implications. ** Moody's rating for Reinsurance Group of America, RGA Capital Trust I and RGA Reinsurance are under review with "developing implications." (1) NR indicates not rated. 41 -----END PRIVACY-ENHANCED MESSAGE-----