-----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, OAXdriU+EsNaOxWq3aBRMpERQxliI140xM9SSt11m+obfc1DI8nFs0ZurbmnzFAB XS0QQT2/e/Hw0VleKyNK4g== 0000950123-06-005322.txt : 20060427 0000950123-06-005322.hdr.sgml : 20060427 20060427172509 ACCESSION NUMBER: 0000950123-06-005322 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20060427 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20060427 DATE AS OF CHANGE: 20060427 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: 06786277 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 y20277e8vk.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) April 27, 2006 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 April 27, 2006, MetLife, Inc., a Delaware Corporation, issued (i) a press release announcing its results for the quarter ended March 31, 2006, 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, 2006, 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) Not applicable (d) 99.1 Press Release of MetLife, Inc., dated April 27, 2006, announcing first quarter 2006 results. 99.2 Quarterly Financial Supplement for the quarter ended March 31, 2006. 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: April 27, 2006 EXHIBIT INDEX ------------- Exhibit Number Exhibit - ------- ------- 99.1 Press Release of MetLife, Inc., dated April 27, 2006, announcing first quarter 2006 results. 99.2 Quarterly Financial Supplement for the quarter ended March 31, 2006. EX-99.1 2 y20277exv99w1.txt EX-99.1: PRESS RELEASE Exhibit 99.1 MetLife1Q2006Rls - 04-26-2006-4PM-DRAFT.doc Contacts: For Media: John Calagna (212) 578-6252 For Investors: Tracey Dedrick (212) 578-5140 METLIFE ANNOUNCES FIRST QUARTER 2006 RESULTS -- REPORTS NET INCOME AVAILABLE TO COMMON SHAREHOLDERS OF $0.93 PER DILUTED COMMON SHARE -- -- REPORTS RECORD OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS OF $1.33 PER DILUTED COMMON SHARE -- -- UPDATES FULL YEAR 2006 OPERATING EARNINGS PER COMMON SHARE GUIDANCE -- NEW YORK, April 27, 2006 -- MetLife, Inc. (NYSE: MET) today reported first quarter 2006 net income available to common shareholders of $714 million, or $0.93 per diluted common share, compared with $987 million, or $1.33 per diluted common share, for the first quarter of 2005.
For the three months ended March 31, ------------------------------------------------------------ 2006 2005 -------------------------- --------------------------- (in millions, except per diluted common share data) Net income available to common shareholders $714 $987 Net income available to common shareholders per diluted common share $0.93 $1.33 Operating earnings available to common shareholders(1) $1,025 $822 Operating earnings available to common shareholders per diluted common share(1) $1.33 $1.11 Book value per diluted common share $34.50 $31.15 - Book value per diluted common share, excluding accumulated other comprehensive income(1) $33.73 $28.23 -
(1) Operating earnings available to common shareholders, operating earnings available to common shareholders per diluted common share and book value per diluted common share (excluding accumulated other comprehensive income) are not calculated based on generally accepted accounting principles ("GAAP"). Information regarding non-GAAP financial measures in this press release and the reconciliation of them to GAAP measures are provided in the Non-GAAP and Other Financial Disclosures section below, as well as in the tables that accompany this release. 1 FIRST QUARTER HIGHLIGHTS - - Earned total premiums, fees and other revenues of $7.9 billion, a 12% increase over the prior year period - - Annuity deposits in the United States reached a record $3.8 billion, an increase of 51% over the prior year period - - Total assets increased to approximately $500 billion - - Continued strong investment results Operating earnings available to common shareholders for the first quarter of 2006 were $1,025 million, or $1.33 per diluted common share, compared with $822 million, or $1.11 per diluted common share, for the prior year period. "MetLife had a very strong first quarter as operating earnings available to common shareholders reached a record $1 billion," said C. Robert Henrikson, chairman of the board, president and chief executive officer of MetLife, Inc. "During the quarter, we continued to see the benefits of the Travelers acquisition, which added to our strong and diverse product portfolio and broad distribution capabilities. Already the leader in a number of markets, MetLife is well positioned to continue growing our core businesses as we focus on meeting the needs of our customers and delivering value to shareholders." EARNINGS GUIDANCE In light of the company's strong performance in the first quarter of 2006 and anticipated strong results for the remainder of the year, MetLife also announced today that it is revising its previously announced full year 2006 operating earnings guidance from $4.25 to $4.50 per common share to between $4.55 and $4.75 per common share. FIRST QUARTER SEGMENT OVERVIEW Reconciliations of segment net income available to common shareholders to segment operating earnings available to common shareholders are provided in the tables that accompany this release. INSTITUTIONAL BUSINESS EARNINGS UP 28% Institutional Business operating earnings available to common shareholders in the first quarter of 2006 were $416 million, compared with $324 million in the prior year period, which includes the impact of the Travelers acquisition and favorable investment and expense results across Institutional Business. Retirement & savings earnings increased 58% over the prior year period due in large part to the acquisition of Travelers, favorable investment results and an increase in earnings from underwriting. Group life earnings were down slightly versus the year ago period. Favorable expense results were offset by slightly lower investment earnings. Underwriting results were in line with the previous year period. Earnings in the non-medical health & other segment were up 3%, driven by favorable investment and expense results, partially offset by lower earnings from underwriting. 2 Non-medical health premiums, fees and other revenues increased 12% over the prior year period, reflecting continued strong growth across all product lines. Group life premiums, fees, and other revenues grew by 13% over the prior year period. Underlying business growth driven by favorable retention of existing customers was the primary driver of the increase. INDIVIDUAL BUSINESS EARNINGS UP 27% Individual Business operating earnings available to common shareholders were $408 million in the first quarter of 2006, compared with $321 million in the prior year period. The strong growth in the segment was due to Travelers as well as continued growth in the business. Fees for investment-type products within the annuity business increased 92% compared with the prior year period as a result of growth in the separate account assets. Annuity earnings increased 54% over the prior year period as results continued to benefit from strong investment performance and spread management. In addition, combined life earnings were up 6% due to growth in the business, partially offset by unfavorable mortality. During the quarter, annuity deposits increased 51% over the prior year period to reach a record $3.8 billion. In addition, total first year life premiums and deposits increased nearly 50%, reflecting broader distribution resulting from the Travelers acquisition and a growing agency sales force. AUTO & HOME EARNINGS UP 22% Auto & Home operating earnings available to common shareholders were $93 million in the first quarter of 2006, compared with $76 million in the prior year period. Auto & Home's strong results were due to an improved combined ratio of 89.6%, which resulted from lower automobile claim frequencies, moderate auto claim severity and $9 million, net of income taxes, in favorable claim development related to prior accident years in the first quarter of 2006. Mild weather conditions in the Northeast during the first quarter contributed to the excellent claim experience. INTERNATIONAL EARNINGS UP 10% International operating earnings available to common shareholders were $75 million in the first quarter of 2006, compared with $68 million in the prior year period. Earnings in this segment increased due to unusually strong business performance in Asia Pacific and Latin America. STRONG INVESTMENT PERFORMANCE During the first quarter of 2006, MetLife's investment results continued to be strong, enhanced by sustained solid performance in corporate joint ventures. The company undertook a strategic repositioning of its investment portfolio during the quarter to take advantage of rising interest rates. This repositioning, while enhancing the portfolio, contributed to higher net realized losses, net of income taxes, of $406 million. Also included in this result were derivative losses, net of income taxes, of $164 million. The company's derivative positions provide MetLife with protection against interest rate and currency movements and the losses related to positions that do not qualify for hedge accounting. Earnings Conference Call MetLife will hold its first quarter 2006 earnings conference call and audio Webcast on Friday, April 28, 2006, 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 3 (through a link on the Investor Relations page). Those who want to listen to the call on the telephone or via the Internet should dial in or go to the Web site at least fifteen minutes prior to the call to register, and/or download and install any necessary audio software. The conference call will be available for replay via telephone and the Internet beginning at 11:30 a.m. (ET) on Friday, April 28, 2006, until Friday, May 5, 2006, at 11:59 p.m. (ET). To listen to a replay of the conference call over the telephone, dial (320) 365-3844 (domestic and international callers). The access code for the replay is 823165. To access the replay of the conference call over the Internet, visit the above-mentioned Web site. Non-GAAP and Other Financial Disclosures MetLife analyzes its performance using so-called non-GAAP measures, including operating earnings available to common shareholders and operating earnings available to common shareholders per diluted common share. Operating earnings available to common shareholders 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, and discontinued operations other than discontinued real estate, net of income taxes, less preferred stock dividends which are recorded in Corporate & Other. Scheduled settlement payments on derivative instruments not qualifying for hedge accounting treatment are included in operating earnings available to common shareholders. Operating earnings available to common shareholders per diluted common share is calculated by dividing operating earnings available to common shareholders by the number of weighted average diluted common 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, and discontinued operations other than discontinued real estate, net of income taxes, thereby highlighting the results from operations and the underlying profitability drivers of the business. Operating earnings available to common shareholders and operating earnings available to common shareholders per diluted common share should not be viewed as substitutes for GAAP net income available to common shareholders and GAAP net income available to common shareholders per diluted common share, respectively. 4
For the three months ended March 31, ----------------------------------------------------------- 2006 2005 ---------------------------- --------------------------- (in millions, except per diluted common share data) Net income available to common shareholders $714 $0.93 $987 $1.33 Net investment (gains) losses, net of income taxes(1) 406 0.53 21 0.03 Adjustments related to net investment (gains) losses, net of income taxes(2) (95) (0.13) (36) (0.05) Discontinued operations, net of income taxes(3) -- -- (150) (0.20) ------------ ------------ ----------- ----------- Operating earnings available to common shareholders $1,025 $1.33 $822 $1.11 ============ ============ =========== =========== Book value per diluted common share $34.50 $31.15 Accumulated other comprehensive income per diluted common share (0.77) (2.92) ------------ ----------- Book value per diluted common share, excluding accumulated other comprehensive income $33.73 $28.23 ------------ -----------
(1) Net investment (gains) losses, net of income taxes, includes (gains) losses on sales of real estate and real estate joint ventures related to discontinued operations of $3 million and $(12) million for the three months ended March 31, 2006 and 2005, respectively, and excludes (gains) losses of $(25) million and $(16) million for the three months ended March 31, 2006 and 2005, 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 unearned revenue and deferred policy acquisition costs, adjustments to the policyholder dividend obligation and amounts allocable to certain participating contracts. (3) Discontinued operations, net of income taxes, excludes (gains) losses on sales of real estate and real estate joint ventures related to discontinued operations. 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 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 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, 5 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. is a leading provider of insurance and other financial services to millions of individual and institutional customers throughout the United States. Through its subsidiaries and affiliates, MetLife, Inc. offers life insurance, annuities, automobile and homeowner's insurance and retail banking services to individuals, as well as group insurance, reinsurance and retirement and savings products and services to corporations and other institutions. Outside the U.S., the MetLife companies have direct insurance operations in Asia Pacific, Latin America and Europe. For more information, please visit 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 (in millions)
Three months ended March 31, ---------------------------------- 2006 2005 --------------- --------------- Premiums $ 6,428 $ 5,966 Universal life and investment-type product policy fees 1,175 791 Net investment income 4,239 3,216 Other revenues 328 299 Net investment gains (losses) (585) (15) --------------- --------------- Total revenues 11,585 10,257 --------------- --------------- Policyholder benefits and claims 6,405 5,926 Interest credited to policyholder account balances 1,215 795 Policyholder dividends 421 415 Other expenses 2,498 1,971 --------------- --------------- Total expenses 10,539 9,107 --------------- --------------- Income from continuing operations before provision for income taxes 1,046 1,150 Provision for income taxes 296 350 --------------- --------------- Income from continuing operations 750 800 Income (loss) from discontinued operations, net of income taxes (3) 187 --------------- --------------- Net income 747 987 Preferred stock dividends 33 - --------------- --------------- Net income available to common shareholders $ 714 $ 987 =============== =============== OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS RECONCILIATION --------------- Net income available to common shareholders 714 987 Net investment gains (losses) (624) (21) Minority interest - net investment gains (losses) (2) (9) Net investment gains (losses) tax provision 220 9 --------------- --------------- Net investment gains (losses), net of income taxes (1) (2) (406) (21) Adjustments related to universal life and investment - type product policy fees (3) - Adjustments related to policyholder benefits and dividends 108 70 Adjustments related to other expenses 42 (15) Adjustments related to tax provision (52) (19) --------------- --------------- Adjustments related to net investment gains (losses), net of income taxes (3) 95 36 Discontinued operations, net of income taxes (4) - 150 --------------- --------------- Operating earnings available to common shareholders $ 1,025 $ 822 =============== ===============
(1) Net investment gains (losses), net of income taxes, includes gains (losses) on sales of real estate and real estate joint ventures related to discontinued operations, of ($3) million and $12 million for the three months ended March 31, 2006 and 2005, respectively. (2) Net investment gains (losses), net of income taxes, excludes gains (losses) of $25 million and $16 million for the three months ended March 31, 2006 and 2005, respectively, from scheduled settlement payments on derivative instruments not qualifying for hedge accounting treatment. (3) Adjustments related to net investment gains (losses), net of income taxes, includes amortization of unearned revenue and deferred policy acquisition costs, adjustments to the policyholder dividend obligation and amounts allocable to certain participating contracts. (4) Discontinued operations, net of income taxes, excludes gains (losses) on sales of real estate and real estate joint ventures related to discontinued operations. MetLife, Inc. Financial Highlights Unaudited (in millions, except per common share data or unless otherwise noted)
At or for the three months ended March 31, ---------------------------------- 2006 2005 --------------- --------------- Other Financial Data: Net income available to common shareholders $ 714 $ 987 Operating earnings available to common shareholders $ 1,025 $ 822 Total assets (billions) $ 499.1 $ 362.7 Individual Business Sales Data: Total first year life premiums and deposits $ 309 $ 207 Variable and Universal life first year premiums and deposits (including COLI/BOLI) $ 259 $ 160 Total annuity deposits $ 3,843 $ 2,540 Earnings Per Share Calculation: Weighted average common shares outstanding - diluted 768.8 739.6 Operating earnings available to common shareholders per common share - diluted $ 1.33 $ 1.11 Net income available to common shareholders per common share - diluted $ 0.93 $ 1.33
MetLife, Inc. Balance Sheet Data March 31, 2006 (Unaudited) and December 31, 2005 (Audited) (in millions)
At March 31, At December 31, ---------------------------------- 2006 2005 --------------- --------------- Balance Sheet Data: General account assets $ 366,580 $ 353,776 Separate account assets 132,522 127,869 --------------- --------------- Total assets $ 499,102 $ 481,645 =============== =============== Policyholder liabilities (including amounts of closed block) $ 262,960 $ 262,371 Short-term debt 1,360 1,414 Long-term debt 9,932 9,888 Junior subordinated debt securities underlying common equity units 2,134 2,134 Shares subject to mandatory redemption 278 278 Other liabilities 61,349 48,590 Separate account liabilities 132,522 127,869 --------------- --------------- Total liabilities 470,535 452,544 --------------- --------------- Preferred stock, at par value 1 1 Common stock, at par value 8 8 Additional paid-in capital 17,327 17,274 Retained earnings 11,579 10,865 Treasury stock (938) (959) Accumulated other comprehensive income 590 1,912 --------------- --------------- Total stockholders' equity 28,567 29,101 --------------- --------------- Total liabilities and stockholders' equity $ 499,102 $ 481,645 =============== ===============
MetLife, Inc. Reconciliations of Net Income Available to Common Shareholders to Operating Earnings Available to Common Shareholders Unaudited (in millions)
Three months ended March 31, ------------------------------------ 2006 2005 ---------------- ----------------- Total Institutional Operations Net income available to common shareholders $ 213 $ 349 Net investment gains (losses), net of income taxes (219) 2 Adjustments related to net investment gains (losses), net of income taxes 16 23 --------------- --------------- Operating earnings available to common shareholders $ 416 $ 324 =============== =============== Institutional Operations Group Life Net income available to common shareholders $ 90 $ 88 Net investment gains (losses), net of income taxes (2) (9) Adjustments related to net investment gains (losses), net of income taxes 1 - --------------- --------------- Operating earnings available to common shareholders $ 91 $ 97 =============== =============== Retirement & Savings Net income available to common shareholders $ 86 $ 188 Net investment gains (losses), net of income taxes (168) 12 Adjustments related to net investment gains (losses), net of income taxes (7) 11 --------------- --------------- Operating earnings available to common shareholders $ 261 $ 165 =============== =============== Non-Medical Health & Other Net income available to common shareholders $ 37 $ 73 Net investment gains (losses), net of income taxes (49) (1) Adjustments related to net investment gains (losses), net of income taxes 22 12 --------------- --------------- Operating earnings available to common shareholders $ 64 $ 62 =============== =============== Total Individual Operations Net income available to common shareholders $ 304 $ 368 Net investment gains (losses), net of income taxes (170) 32 Adjustments related to net investment gains (losses), net of income taxes 66 15 --------------- --------------- Operating earnings available to common shareholders $ 408 $ 321 =============== =============== Individual Operations Traditional Life Net income available to common shareholders $ 94 $ 172 Net investment gains (losses), net of income taxes (44) 45 Adjustments related to net investment gains (losses), net of income taxes 40 15 --------------- --------------- Operating earnings available to common shareholders $ 98 $ 112 =============== =============== Variable & Universal Life Net income available to common shareholders $ 58 $ 41 Net investment gains (losses), net of income taxes (25) (8) Adjustments related to net investment gains (losses), net of income taxes 9 (2) --------------- --------------- Operating earnings available to common shareholders $ 74 $ 51 =============== =============== Annuities Net income available to common shareholders $ 141 $ 150 Net investment gains (losses), net of income taxes (102) 1 Adjustments related to net investment gains (losses), net of income taxes 17 2 --------------- --------------- Operating earnings available to common shareholders $ 226 $ 147 =============== =============== Other Net income available to common shareholders $ 11 $ 5 Net investment gains (losses), net of income taxes 1 (6) --------------- --------------- Operating earnings available to common shareholders $ 10 $ 11 =============== =============== Total Auto & Home Net income available to common shareholders $ 91 $ 76 Net investment gains (losses), net of income taxes (2) - --------------- --------------- Operating earnings available to common shareholders $ 93 $ 76 =============== =============== Auto & Home Auto Net income available to common shareholders $ 64 $ 43 Net investment gains (losses), net of income taxes (1) - --------------- --------------- Operating earnings available to common shareholders $ 65 $ 43 =============== ===============
Three months ended March 31, ------------------------------------ 2006 2005 ---------------- ----------------- Homeowners Net income available to common shareholders $ 27 $ 31 Net investment gains (losses), net of income taxes (1) - --------------- --------------- Operating earnings available to common shareholders $ 28 $ 31 =============== =============== Other Net income available to common shareholders $- $ 2 Net investment gains (losses), net of income taxes - - --------------- --------------- Operating earnings available to common shareholders $- $ 2 =============== =============== International Net income available to common shareholders $ 104 $ 76 Net investment gains (losses), net of income taxes 14 - Adjustments related to net investment gains (losses), net of income taxes 15 9 Discontinued operations, net of income taxes - (1) --------------- --------------- Operating earnings available to common shareholders $ 75 $ 68 =============== =============== Reinsurance Net income available to common shareholders $ 26 $ 29 Net investment gains (losses), net of income taxes 4 15 Adjustments related to net investment gains (losses), net of income taxes (2) (11) --------------- --------------- Operating earnings available to common shareholders $ 24 $ 25 =============== ===============
EX-99.2 3 y20277exv99w2.txt EX-99.2: QUARTERLY FINANCIAL SUPPLEMENT Exhibit 99.2 (METLIFE LOGO) FIRST QUARTER FINANCIAL SUPPLEMENT MARCH 31, 2006 1 (SNOOPY GRAPHIC) PEANUTS (C) United Feature Syndicate, Inc. (METLIFE LOGO) TABLE OF CONTENTS HIGHLIGHTS CORPORATE OVERVIEW 2 METLIFE, INC Consolidated Balance Sheets 3 Consolidated Statements of Operating Earnings Available to Common Shareholders 4 Consolidating Balance Sheet 5 Consolidating Statement of Operating Earnings Available to Common Shareholders 6 SUMMARY OF SEGMENT OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS 8 INSTITUTIONAL OPERATIONS Statements of Operating Earnings Available to Common Shareholders 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 Available to Common Shareholders 17 Premiums and Deposits by Product 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 Available to Common Shareholders 27 Written Premiums by Product and Selected Financial Information and Supplemental Data 31 INTERNATIONAL OPERATIONS Statement of Operating Earnings Available to Common Shareholders 32 REINSURANCE OPERATIONS Statement of Operating Earnings Available to Common Shareholders 33 Pre-Tax and Pre-Minority Interest Operating Earnings by Region and Reserves by Region 34 CORPORATE, OTHER & ELIMINATIONS Statement of Operating Earnings Available to Common Shareholders 35 METLIFE, INC Investment Results by Asset Category and Annualized Yields 36 Fixed Maturities and Equity Securities Gross Unrealized Gains and Losses Aging Schedules 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 and Summary of Mortgages and Consumer Loans 40 OTHER INFORMATION Company Ratings 41
NOTE: THE QUARTERLY FINANCIAL SUPPLEMENT ("QFS") INCLUDES FINANCIAL MEASURES, OPERATING EARNINGS, OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS AND OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS PER DILUTED COMMON 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 AND DISCONTINUED OPERATIONS OTHER THAN DISCONTINUED REAL ESTATE, NET OF INCOME TAXES. SCHEDULED SETTLEMENT PAYMENTS ON DERIVATIVE INSTRUMENTS NOT QUALIFYING FOR HEDGE ACCOUNTING TREATMENT ARE INCLUDED IN OPERATING EARNINGS. OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS IS DEFINED AS OPERATING EARNINGS LESS PREFERRED STOCK DIVIDENDS, WHICH ARE RECORDED IN CORPORATE & OTHER. OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS PER DILUTED COMMON SHARE IS CALCULATED BY DIVIDING OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS BY THE NUMBER OF WEIGHTED AVERAGE DILUTED COMMON 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 AND DISCONTINUED OPERATIONS OTHER THAN DISCONTINUED REAL ESTATE, NET OF INCOME TAXES, THEREBY HIGHLIGHTING THE RESULTS FROM OPERATIONS AND THE UNDERLYING PROFITABILITY DRIVERS OF THE BUSINESS. OPERATING EARNINGS, OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS AND OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS PER DILUTED COMMON SHARE SHOULD NOT BE VIEWED AS SUBSTITUTES FOR GAAP NET INCOME, GAAP NET INCOME AVAILABLE TO COMMON SHAREHOLDERS AND GAAP NET INCOME AVAILABLE TO COMMON SHAREHOLDERS PER DILUTED COMMON SHARE, RESPECTIVELY. RECONCILIATIONS OF OPERATING EARNINGS TO GAAP NET INCOME, OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS TO GAAP NET INCOME AVAILABLE TO COMMON SHAREHOLDERS AND OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS PER DILUTED COMMON SHARE TO GAAP NET INCOME AVAILABLE TO COMMON SHAREHOLDERS PER DILUTED COMMON SHARE, THE MOST DIRECTLY COMPARABLE GAAP MEASURES, ARE INCLUDED IN THE QFS AND IN METLIFE'S EARNINGS PRESS RELEASE DATED APRIL 27, 2006, FOR THE QUARTER ENDED MARCH 31, 2006, 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, 2005 2005 2005 2005 2006 ------------------------------------------------------------------- Net income $987 $2,245 $773 $709 $747 Preferred stock dividends 0 0 31 32 33 ------------------------------------------------------------------- Net income available to common shareholders 987 2,245 742 677 714 Net investment gains (losses) (21) 2,225 (23) (234) (624) Minority interest - net investment gains (losses) (9) (2) (1) 3 (2) Net investment gains (losses) tax benefit (provision) 9 (784) 9 85 220 ------------------------------------------------------------------- Net investment gains (losses), net of income taxes (2) (3) (21) 1,439 (15) (146) (406) Adjustments related to universal life and investment-type product policy fees 0 0 0 0 (3) Adjustments related to policyholder benefits and dividends 70 (86) (55) (9) 108 Adjustments related to other expenses (15) (9) 7 30 42 Adjustments related to tax benefit (provision) (19) 32 18 (9) (52) ------------------------------------------------------------------- Adjustments related to net investment gains (losses), net of income taxes (4) 36 (63) (30) 12 95 Discontinued operations, net of income taxes 150 (1) 7 12 0 ------------------------------------------------------------------- Operating earnings available to common shareholders (1) $822 $870(6) $780(7) $799 $1,025 =================================================================== Net income available to common shareholders per common share - diluted $1.33 $3.02 $0.97 $0.88 $0.93 Net investment gains (losses), net of income taxes (0.03) 1.94 (0.02) (0.20) (0.53) Adjustments related to net investment gains (losses), net of income taxes 0.05 (0.09) (0.03) 0.02 0.13 Discontinued operations, net of income taxes 0.20 0.00 0.01 0.02 0.00 ------------------------------------------------------------------- Operating earnings available to common shareholders - diluted $1.11 $1.17 $1.01 $1.04 $1.33 =================================================================== Weighted average common shares outstanding - diluted 739.6 743.1 768.7 769.0 768.8 Book value per common share (actual common shares outstanding) $31.43 $35.60 $35.29 $35.72 $ 34.98 Book value per common share, excluding accumulated other comprehensive income (actual common shares outstanding) $28.48 $31.41 $32.81 $33.20 $ 34.21 Book value per common share - diluted (weighted average common shares outstanding) $31.15 $35.16 $34.75 $35.19 $34.50 Book value per common share, excluding accumulated other comprehensive income - diluted (weighted average common shares outstanding) $28.23 $31.02 $32.32 $32.70 $33.73 -------------------------------------------------------------------
For the Three Months Ended -------------------------------------------------------------------- March 31, June 30, September 30, December 31, March 31, 2005 2005 2005 2005 2006 -------------------------------------------------------------------- Common shares outstanding, beginning of period 732.5 733.1 733.9 757.1 757.5 Treasury stock 0.6 0.8 23.2 0.4 0.7 -------------------------------------------------------------------- Common shares outstanding, end of period 733.1 733.9 757.1 757.5 758.2 Weighted average common shares outstanding - basic 734.0 736.5 759.8 761.1 762.0 Dilutive effect of stock options 5.6 6.4 8.6 7.7 6.5 Dilutive effect of LTPCP shares 0.0 0.2 0.3 0.2 0.3 -------------------------------------------------------------------- Weighted average common shares outstanding - diluted 739.6 743.1 768.7 769.0 768.8 ==================================================================== Policyholder Trust Shares 315.4 310.9 307.8 298.8 294.0 SUPPLEMENTAL DATA Adjusted long-term debt to total capital (5) 24.2% 29.4% 28.3% 29.0% 28.5% --------------------------------------------------------------------
(1) Presentation of operating earnings available to common shareholders 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 $16 million, $8 million, $17 million, $23 million and $25 million, for the three months ended March 31, 2005, June 30, 2005, September 30, 2005, December 31, 2005 and March 31, 2006, 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 includes discontinued operations of $12 million, $1,227 million, $30 million, $100 million and ($3) million, for the three months ended March 31, 2005, June 30, 2005, September 30, 2005, December 31, 2005 and March 31, 2006, respectively. (4) Adjustments related to net investment gains (losses), net of income taxes, includes amortization of unearned revenue and deferred policy acquisition costs, adjustments to the policyholder dividend obligation and amounts allocable to certain participating contracts. (5) Adjusted long-term debt at March 31, 2005, June 30, 2005, September 30, 2005, December 31, 2005 and March 31, 2006 consists of $6,657 million, $8,319 million, $8,297 million, $8,017 million and $8,027 million of long-term debt, respectively, $0, $2,134 million, $2,134 million, $2,134 million and $2,134 million of junior subordinated debt securities underlying common equity units, and $113 million, $115 million, $272 million, $1,073 million and $1,084 million of adjusted short-term debt, respectively. Non-recourse debt not included in adjusted long-term debt consists of $757 million, $985 million, $1,195 million, $1,871 million and $1,904 million, respectively. Non-core borrowings not included in adjusted short-term debt consist of $1,007 million, $1,864 million, $1,031 million, $536 million and $276 million, respectively. Total capital is defined as adjusted long-term debt, shares subject to mandatory redemption and stockholders' equity net of accumulated other comprehensive income. (6) Operating earnings available to common shareholders for the three months ended June 30, 2005 includes a $30 million benefit, net of income taxes ($0.04 per diluted common share), associated with the reduction of a previously established liability for settlement death benefits related to the Company's sales practices class action settlement recorded in 1999, an $18 million benefit, net of income taxes ($0.02 per diluted common share), associated with the reduction of a previously established liability related to the Company's demutualization in 2000, and an $8 million charge, net of income taxes ($0.01 per diluted common share), associated with an establishment of a liability associated with the Argentine pension business. (7) Operating earnings available to common shareholders for the three months ended September 30, 2005 includes a $31 million benefit ($0.04 per diluted common share) from a revision of the estimate of income taxes for 2004. 2 (METLIFE LOGO) METLIFE, INC. CONSOLIDATED BALANCE SHEETS
As of ----------------------------------------------------------- March 31, June 30, September 30, December 31, March 31, Unaudited (Dollars in millions) 2005 2005 2005 2005 2006 - ---------------------------------------------------------------------------------------------------------------- ASSETS Fixed maturities, at fair value $182,267 $184,830 $232,041 $230,875 $240,711 Equity securities, at fair value 2,463 2,531 3,058 3,338 3,356 Mortgage and consumer loans 31,977 33,586 36,094 37,190 37,351 Policy loans 8,953 8,975 9,841 9,981 9,987 Real estate and real estate joint ventures 4,377 3,998 4,705 4,665 4,700 Other limited partnership interests 3,051 3,383 4,345 4,276 4,514 Short-term investments 2,550 2,169 4,481 3,306 3,368 Other invested assets 5,331 6,452 7,877 8,078 8,386 ----------------------------------------------------------- TOTAL INVESTMENTS 240,969 245,924 302,442 301,709 312,373 Cash and cash equivalents 3,920 13,601 6,950 4,018 5,144 Accrued investment income 2,433 2,450 3,299 3,036 3,145 Premiums and other receivables 7,514 7,821 14,391 12,186 12,731 Deferred policy acquisition costs 14,789 14,865 19,211 19,641 20,245 Assets of subsidiaries held-for-sale 32 33 0 0 0 Goodwill 612 614 4,564 4,797 4,797 Other assets 6,634 6,758 8,017 8,389 8,145 Separate account assets 85,786 89,459 124,044 127,869 132,522 ----------------------------------------------------------- TOTAL ASSETS $362,689 $381,525 $482,918 $481,645 $499,102 =========================================================== LIABILITIES AND EQUITY LIABILITIES - ---------------------------------- Future policy benefits $100,624 $103,175 $121,591 $123,204 $122,748 Policyholder account balances 88,826 90,080 127,431 128,312 129,860 Other policyholder funds 7,523 7,650 8,521 8,331 8,620 Policyholder dividends payable 896 939 978 917 918 Policyholder dividend obligation 1,737 2,477 1,735 1,607 814 Short-term debt 1,120 1,979 1,303 1,414 1,360 Long-term debt 7,430 9,389 9,576 9,888 9,932 Junior subordinated debt securities underlying common equity units 0 2,134 2,134 2,134 2,134 Shares subject to mandatory redemption 278 278 278 278 278 Liabilities of subsidiaries held-for-sale 27 28 0 0 0 Current income tax payable 31 635 97 69 88 Deferred income tax payable 2,414 3,201 1,456 1,706 1,199 Payables for collateral under securities loaned and other transactions 31,713 31,632 40,127 34,515 47,059 Other liabilities 11,246 10,298 14,890 12,300 13,003 Separate account liabilities 85,786 89,459 124,044 127,869 132,522 ----------------------------------------------------------- TOTAL LIABILITIES 339,651 353,354 454,161 452,544 470,535 ----------------------------------------------------------- EQUITY ------- Preferred stock, at par value 0 1 1 1 1 Common stock, at par value 8 8 8 8 8 Additional paid-in capital 15,043 16,974 17,273 17,274 17,327 Retained earnings 7,595 9,841 10,582 10,865 11,579 Treasury stock (1,764) (1,733) (981) (959) (938) Accumulated other comprehensive income 2,156 3,080 1,874 1,912 590 ----------------------------------------------------------- TOTAL STOCKHOLDERS' EQUITY 23,038 28,171 28,757 29,101 28,567 ----------------------------------------------------------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $362,689 $381,525 $482,918 $481,645 $499,102 ===========================================================
3 (METLIFE LOGO) METLIFE, INC. CONSOLIDATED STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
For the Three Months Ended ------------------------------------------------------------- March 31, June 30, September 30, December 31, March 31, Unaudited (Dollars in millions) 2005 2005 2005 2005 2006 - -------------------------------------------------------------------------------------------------------------------------------- REVENUES Premiums $5,966 $6,034 $6,514 $6,346 $6,428 Universal life and investment-type product policy fees 791 813 1,112 1,112 1,178 Investment income, net 3,279 3,508 4,112 4,167 4,278 Other revenues 299 301 348 323 328 ------------------------------------------------------------- 10,335 10,656 12,086 11,948 12,212 ------------------------------------------------------------- EXPENSES Policyholder benefits and dividends 6,411 6,589 7,208 6,897 6,934 Interest credited to policyholder account balances 795 820 1,156 1,167 1,220 Interest credited to bank deposits 17 25 30 37 43 Interest expense 119 125 183 185 198 Other expenses 1,811 1,844 2,408 2,487 2,297 ------------------------------------------------------------- 9,153 9,403 10,985 10,773 10,692 ------------------------------------------------------------- Operating earnings before provision (benefit) for income taxes 1,182 1,253 1,101 1,175 1,520 Provision for income taxes 360 383 290 344 462 ------------------------------------------------------------- Operating earnings 822 870 811 831 1,058 Preferred stock dividends 0 0 31 32 33 ------------------------------------------------------------- OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $822 $870 (2) $780 (3) $799 $1,025 ============================================================= NET INCOME RECONCILIATION - -------------------------- Operating earnings available to common shareholders $822 $870 $780 $799 $1,025 Net investment gains (losses) (21) 2,225 (23) (234) (624) Minority interest - net investment gains (losses) (9) (2) (1) 3 (2) Net investment gains (losses) tax benefit (provision) 9 (784) 9 85 220 ------------------------------------------------------------- Net investment gains (losses), net of income taxes (21) 1,439 (15) (146) (406) Adjustments related to universal life and investment-type product policy fees 0 0 0 0 (3) Adjustments related to policyholder benefits and dividends 70 (86) (55) (9) 108 Adjustments related to other expenses (15) (9) 7 30 42 Adjustments related to tax benefit (provision) (19) 32 18 (9) (52) ------------------------------------------------------------- Adjustments related to net investment gains (losses), net of income taxes (1) 36 (63) (30) 12 95 Discontinued operations, net of income taxes 150 (1) 7 12 0 ------------------------------------------------------------- Net income available to common shareholders 987 2,245 742 677 714 Preferred stock dividends 0 0 31 32 33 ------------------------------------------------------------- Net income $987 $2,245 $773 $709 $747 =============================================================
(1) Adjustments related to net investment gains (losses), net of income taxes, includes amortization of unearned revenue and deferred policy acquisition costs, adjustments to the policyholder dividend obligation and amounts allocable to certain participating contracts. (2) Operating earnings available to common shareholders for the three months ended June 30, 2005 includes a $30 million benefit, net of income taxes, associated with the reduction of a previously established liability for settlement death benefits related to the Company's sales practices class action settlement recorded in 1999, an $18 million benefit, net of income taxes, associated with the reduction of a previously established liability related to the Company's demutualization in 2000, and an $8 million charge, net of income taxes, associated with an establishment of a liability associated with the Argentine pension business. (3) Operating earnings available to common shareholders for the three months ended September 30, 2005 includes a $31 million benefit from a revision of the estimate of income taxes for 2004. 4 (METLIFE LOGO) METLIFE, INC. CONSOLIDATING BALANCE SHEET AT MARCH 31, 2006
Corporate, Other Unaudited (Dollars in millions) Consolidated Institutional Individual Auto & Home International Reinsurance & Eliminations - ------------------------------------------------------------------------------------------------------------------------------------ ASSETS Total investments $312,373 $129,837 $123,916 $3,821 $13,972 $11,765 $29,062 Cash and cash equivalents 5,144 331 1,196 (87) (125) 346 3,483 Accrued investment income 3,145 1,086 1,247 61 178 79 494 Premiums and other receivables 12,731 3,494 2,947 902 809 1,130 3,449 Deferred policy acquisition costs 20,245 1,308 13,920 180 1,927 2,894 16 Assets of subsidiaries held-for-sale 0 0 0 0 0 0 0 Goodwill 4,797 956 2,902 157 286 96 400 Other assets 8,145 1,911 3,300 373 323 73 2,165 Separate account assets 132,522 44,962 85,630 0 1,915 15 0 ---------------------------------------------------------------------------------------------- Total Assets $499,102 $183,885 $235,058 $5,407 $19,285 $16,398 $39,069 ============================================================================================== LIABILITIES AND EQUITY LIABILITIES Future policy benefits $122,748 $48,361 $55,845 $3,423 $7,138 $4,606 $3,375 Policyholder account balances 129,860 55,691 58,677 0 5,263 5,675 4,554 Other policyholder funds 8,620 2,779 2,747 26 1,113 1,775 180 Policyholder dividends payable 918 0 918 0 0 0 0 Policyholder dividend obligation 814 0 814 0 0 0 0 Short-term debt 1,360 0 2 0 0 0 1,358 Long-term debt 9,932 21 161 0 52 800 8,898 Junior subordinated debt securities underlying common equity units 2,134 0 0 0 0 0 2,134 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 88 152 (190) (10) (60) 52 144 Deferred income tax payable 1,199 (1,333) 1,661 20 91 811 (51) Payables for collateral under securities loaned and other transactions 47,059 21,238 16,641 112 0 0 9,068 Other liabilities 13,003 2,834 2,885 690 957 1,380 4,257 Separate account liabilities 132,522 44,962 85,630 0 1,915 15 0 ---------------------------------------------------------------------------------------------- Total Liabilities 470,535 174,705 225,791 4,261 16,469 15,273 34,036 ---------------------------------------------------------------------------------------------- EQUITY Preferred stock, at par value 1 0 0 0 0 0 1 Common stock, at par value 8 0 0 0 0 0 8 Allocated equity (1) 28,906 8,829 9,302 1,033 2,542 945 6,255 Treasury stock (938) 0 0 0 0 0 (938) Accumulated other comprehensive income 590 351 (35) 113 274 180 (293) ---------------------------------------------------------------------------------------------- Total Stockholders' Equity 28,567 9,180 9,267 1,146 2,816 1,125 5,033 ---------------------------------------------------------------------------------------------- Total Liabilities and Stockholders' Equity $499,102 $183,885 $235,058 $5,407 $19,285 $16,398 $39,069 ==============================================================================================
(1) Allocated equity includes additional paid-in capital and retained earnings. 5 (METLIFE LOGO) METLIFE, INC. CONSOLIDATING STATEMENT OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS FOR THE THREE MONTHS ENDED MARCH 31, 2006
Corporate, Other Unaudited (Dollars in millions) Consolidated Institutional Individual Auto & Home International Reinsurance & Eliminations - ------------------------------------------------------------------------------------------------------------------------------------ REVENUES Premiums $6,428 $2,989 $1,082 $724 $631 $993 $9 Universal life and investment-type product policy fees 1,178 201 793 0 184 0 0 Investment income, net 4,278 1,787 1,741 45 235 174 296 Other revenues 328 170 125 7 4 15 7 -------------------------------------------------------------------------------------------------- 12,212 5,147 3,741 776 1,054 1,182 312 -------------------------------------------------------------------------------------------------- EXPENSES Policyholder benefits and dividends 6,934 3,389 1,745 453 527 813 7 Interest credited to policyholder account balances 1,220 594 476 0 87 63 0 Capitalization of deferred policy acquisition costs (883) (81) (370) (105) (151) (176) 0 Amortization of deferred policy acquisition costs 644 35 302 111 82 114 0 Other expenses 2,777 579 964 195 396 332 311 -------------------------------------------------------------------------------------------------- 10,692 4,516 3,117 654 941 1,146 318 -------------------------------------------------------------------------------------------------- Operating earnings before provision (benefit) for income taxes 1,520 631 624 122 113 36 (6) Provision (benefit) for income taxes 462 215 216 29 38 12 (48) -------------------------------------------------------------------------------------------------- Operating earnings 1,058 416 408 93 75 24 42 Preferred stock dividends 33 0 0 0 0 0 33 -------------------------------------------------------------------------------------------------- OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $1,025 $416 $408 $93 $75 $24 $9 ================================================================================================== NET INCOME RECONCILIATION - ---------------------------- Operating earnings available to common shareholders $1,025 $416 $408 $93 $75 $24 $9 Net investment gains (losses) (624) (339) (265) 1 20 8 (49) Minority interest - net investment gains (losses) (2) 0 0 0 0 (2) 0 Net investment gains (losses) tax benefit (provision) 220 120 95 (3) (6) (2) 16 -------------------------------------------------------------------------------------------------- Net investment gains (losses), net of income taxes (406) (219) (170) (2) 14 4 (33) Adjustments related to universal life and investment-type product policy fees (3) 0 (3) 0 0 0 0 Adjustments related to policyholder benefits and dividends 108 25 61 0 22 0 0 Adjustments related to other expenses 42 0 45 0 0 (3) 0 Adjustments related to tax benefit (provision) (52) (9) (37) 0 (7) 1 0 -------------------------------------------------------------------------------------------------- Adjustments related to net investment gains (losses), net of income taxes (1) 95 16 66 0 15 (2) 0 Discontinued operations, net of income taxes 0 0 0 0 0 0 0 -------------------------------------------------------------------------------------------------- Net income available to common shareholders 714 213 304 91 104 26 (24) Preferred stock dividends 33 0 0 0 0 0 33 -------------------------------------------------------------------------------------------------- Net income $747 $213 $304 $91 $104 $26 $9 ==================================================================================================
(1) Adjustments related to net investment gains (losses), net of income taxes, includes amortization of unearned revenue and 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 AVAILABLE TO COMMON SHAREHOLDERS FOR THE THREE MONTHS ENDED MARCH 31, 2005
Corporate, Other Unaudited (Dollars in millions) Consolidated Institutional Individual Auto & Home International Reinsurance & Eliminations - ------------------------------------------------------------------------------------------------------------------------------------ REVENUES Premiums $5,966 $2,844 $1,028 $728 $466 $903 ($3) Universal life and investment-type product policy fees 791 193 479 0 119 0 0 Investment income, net 3,279 1,248 1,538 43 149 150 151 Other revenues 299 161 112 9 3 11 3 ------------------------------------------------------------------------------------------------- 10,335 4,446 3,157 780 737 1,064 151 ------------------------------------------------------------------------------------------------- EXPENSES Policyholder benefits and dividends 6,411 3,146 1,636 478 410 739 2 Interest credited to policyholder account balances 795 301 392 0 47 56 (1) Capitalization of deferred policy acquisition costs (767) (64) (254) (103) (125) (221) 0 Amortization of deferred policy acquisition costs 528 35 182 111 56 142 2 Other expenses 2,186 539 720 191 244 310 182 ------------------------------------------------------------------------------------------------- 9,153 3,957 2,676 677 632 1,026 185 ------------------------------------------------------------------------------------------------- Operating earnings before provision (benefit) for income taxes 1,182 489 481 103 105 38 (34) Provision (benefit) for income taxes 360 165 160 27 37 13 (42) ------------------------------------------------------------------------------------------------- Operating earnings 822 324 321 76 68 25 8 Preferred stock dividends 0 0 0 0 0 0 0 ------------------------------------------------------------------------------------------------- OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $822 $324 $321 $76 $68 $25 $8 ================================================================================================= NET INCOME RECONCILIATION - --------------------------- Operating earnings available to common shareholders $822 $324 $321 $76 $68 $25 $8 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 universal life and investment-type product policy fees 0 0 0 0 0 0 0 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 Discontinued operations, net of income taxes 150 0 0 0 (1) 0 151 ------------------------------------------------------------------------------------------------- Net income available to common shareholders 987 349 368 76 76 29 89 Preferred stock dividends 0 0 0 0 0 0 0 ------------------------------------------------------------------------------------------------- Net income $987 $349 $368 $76 $76 $29 $89 =================================================================================================
(1) Adjustments related to net investment gains (losses), net of income taxes, includes amortization of unearned revenue and deferred policy acquisition costs, adjustments to the policyholder dividend obligation and amounts allocable to certain participating contracts. 7 (METLIFE LOGO) SUMMARY OF SEGMENT OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS (1)
For the Three Months Ended ------------------------------------------------------------------------ March 31, June 30, September 30, December 31, March 31, Unaudited (Dollars in millions) 2005 2005 2005 2005 2006 - ----------------------------------------------------------------------------------------------------------------- INSTITUTIONAL OPERATIONS $324 $346 $386 $389 $416 INDIVIDUAL OPERATIONS 321 291 331 314 408 AUTO & HOME OPERATIONS 76 101 (26) 81 93 INTERNATIONAL OPERATIONS 68 51 66 48 75 REINSURANCE OPERATIONS 25 4 26 31 24 CORPORATE, OTHER & ELIMINATIONS 8 77 (3) (64) 9 ------------------------------------------------------------------------ CONSOLIDATED $822 $870 (2) $780 (3) $799 $1,025 ========================================================================
(1) A reconciliation of operating earnings available to common shareholders 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 Corporate, Other & Eliminations, page 35. A reconciliation of operating earnings available to common shareholders to net income for MetLife, Inc., Consolidated, appears on page 4. (2) Operating earnings available to common shareholders for the three months ended June 30, 2005 includes a $30 million benefit, net of income taxes, associated with the reduction of a previously established liability for settlement death benefits related to the Company's sales practices class action settlement recorded in 1999, an $18 million benefit, net of income taxes, associated with the reduction of a previously established liability related to the Company's demutualization in 2000, and an $8 million charge, net of income taxes, associated with an establishment of a liability associated with the Argentine pension business. (3) Operating earnings available to common shareholders for the three months ended September 30, 2005 includes a $31 million benefit from a revision of the estimate of income taxes for 2004. 8 (METLIFE LOGO) INSTITUTIONAL OPERATIONS STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS - TOTAL UNAUDITED (DOLLARS IN MILLIONS)
For the Three Months Ended -------------------------------------------------------------------- March 31, June 30, September 30, December 31, March 31, Institutional Operations 2005 2005 2005 2005 2006 - ------------------------------------------------------------------------------------------------------------------------------------ REVENUES Premiums $2,844 $2,834 $3,066 $2,643 $2,989 Universal life and investment-type product policy fees 193 185 197 197 201 Investment income, net 1,248 1,364 1,707 1,732 1,787 Other revenues 161 163 163 166 170 -------------------------------------------------------------------- 4,446 4,546 5,133 4,738 5,147 -------------------------------------------------------------------- EXPENSES Policyholder benefits and dividends 3,146 3,159 3,455 3,025 3,389 Interest credited to policyholder account balances 301 326 508 530 594 Other expenses 510 537 587 595 533 -------------------------------------------------------------------- 3,957 4,022 4,550 4,150 4,516 -------------------------------------------------------------------- Operating earnings before provision (benefit) for income taxes 489 524 583 588 631 Provision (benefit) for income taxes 165 178 197 199 215 -------------------------------------------------------------------- OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $324 $346 $386 $389 $416 ==================================================================== NET INCOME RECONCILIATION - --------------------------------------------------------- Operating earnings available to common shareholders $324 $346 $386 $389 $416 Net investment gains (losses) 5 415 (97) (156) (339) Minority interest - net investment gains (losses) 0 0 0 0 0 Net investment gains (losses) tax benefit (provision) (3) (147) 36 59 120 -------------------------------------------------------------------- Net investment gains (losses), net of income taxes 2 268 (61) (97) (219) Adjustments related to universal life and investment-type product policy fees 0 0 0 0 0 Adjustments related to policyholder benefits and dividends 35 (37) 28 (18) 25 Adjustments related to other expenses 0 0 0 0 0 Adjustments related tax benefit (provision) (12) 13 (10) 6 (9) -------------------------------------------------------------------- Adjustments related to net investment gains (losses), net of income taxes (1) 23 (24) 18 (12) 16 Discontinued operations, net of income taxes 0 0 0 0 0 -------------------------------------------------------------------- Net income available to common shareholders 349 590 343 280 213 Preferred stock dividends 0 0 0 0 0 -------------------------------------------------------------------- Net income $349 $590 $343 $280 $213 --------------------------------------------------------------------
(1) 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. 9 (METLIFE LOGO) INSTITUTIONAL OPERATIONS STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS - PRODUCT LEVEL UNAUDITED (DOLLARS IN MILLIONS)
For the Three Months Ended -------------------------------------------------------------------- March 31, June 30, September 30, December 31, March 31, Group Life 2005 2005 2005 2005 2006 - ------------------------------------------------------------------------------------------------------------------------------------ REVENUES Premiums $1,364 $1,435 $1,485 $1,359 $1,551 Universal life and investment-type product policy fees 187 180 192 194 195 Investment income, net 271 281 296 296 303 Other revenues 13 14 11 10 15 -------------------------------------------------------------------- 1,835 1,910 1,984 1,859 2,064 -------------------------------------------------------------------- EXPENSES Policyholder benefits and dividends 1,444 1,519 1,542 1,398 1,636 Interest credited to policyholder account balances 99 105 119 125 134 Other expenses 146 159 168 157 155 -------------------------------------------------------------------- 1,689 1,783 1,829 1,680 1,925 -------------------------------------------------------------------- Operating earnings before provision (benefit) for income taxes 146 127 155 179 139 Provision (benefit) for income taxes 49 44 53 61 48 -------------------------------------------------------------------- OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $97 $83 $102 $118 $91 ==================================================================== Net investment gains (losses), net of income taxes (9) (1) 7 (38) (2) Adjustments related to net investment gains (losses), net of income taxes 0 0 4 1 1 Discontinued operations, net of income taxes 0 0 0 0 0 -------------------------------------------------------------------- Net income available to common shareholders 88 82 113 81 90 Preferred stock dividends 0 0 0 0 0 -------------------------------------------------------------------- Net income $88 $82 $113 $81 $90 --------------------------------------------------------------------
10 (METLIFE LOGO) INSTITUTIONAL OPERATIONS STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS - PRODUCT LEVEL UNAUDITED (DOLLARS IN MILLIONS)
For the Three Months Ended -------------------------------------------------------------------- March 31, June 30, September 30, December 31, March 31, Retirement & Savings 2005 2005 2005 2005 2006 - ------------------------------------------------------------------------------------------------------------------------------------ REVENUES Premiums $496 $384 $557 $234 $334 Universal life and investment-type product policy fees 6 5 5 3 6 Investment income, net 846 926 1,255 1,273 1,325 Other revenues 59 59 63 67 62 -------------------------------------------------------------------- 1,407 1,374 1,880 1,577 1,727 -------------------------------------------------------------------- EXPENSES Policyholder benefits and dividends 864 751 1,041 743 774 Interest credited to policyholder account balances 202 221 389 405 460 Other expenses 93 87 126 113 98 -------------------------------------------------------------------- 1,159 1,059 1,556 1,261 1,332 -------------------------------------------------------------------- Operating earnings before provision (benefit) for income taxes 248 315 324 316 395 Provision (benefit) for income taxes 83 106 108 106 134 -------------------------------------------------------------------- OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $165 $209 $216 $210 $261 ==================================================================== Net investment gains (losses), net of income taxes 12 231 (45) (61) (168) Adjustments related to net investment gains (losses), net of income taxes 11 (10) 7 (2) (7) Discontinued operations, net of income taxes 0 0 0 0 0 -------------------------------------------------------------------- Net income available to common shareholders 188 430 178 147 86 Preferred stock dividends 0 0 0 0 0 -------------------------------------------------------------------- Net income $188 $430 $178 $147 $86 --------------------------------------------------------------------
11 (METLIFE LOGO) INSTITUTIONAL OPERATIONS STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS - 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 2005 2005 2005 2005 2006 - ------------------------------------------------------------------------------------------------------------------------------------ REVENUES Premiums $984 $1,015 $1,024 $1,050 $1,104 Universal life and investment-type product policy fees 0 0 0 0 0 Investment income, net 131 157 156 163 159 Other revenues 89 90 89 89 93 -------------------------------------------------------------------- 1,204 1,262 1,269 1,302 1,356 -------------------------------------------------------------------- EXPENSES Policyholder benefits and dividends 838 889 872 884 979 Interest credited to policyholder account balances 0 0 0 0 0 Other expenses 271 291 293 325 280 -------------------------------------------------------------------- 1,109 1,180 1,165 1,209 1,259 -------------------------------------------------------------------- Operating earnings before provision (benefit) for income taxes 95 82 104 93 97 Provision (benefit) for income taxes 33 28 36 32 33 -------------------------------------------------------------------- OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $62 $54 $68 $61 $64 ==================================================================== Net investment gains (losses), net of income taxes (1) 38 (23) 2 (49) Adjustments related to net investment gains (losses), net of income taxes 12 (14) 7 (11) 22 Discontinued operations, net of income taxes 0 0 0 0 0 -------------------------------------------------------------------- Net income available to common shareholders 73 78 52 52 37 Preferred stock dividends 0 0 0 0 0 -------------------------------------------------------------------- Net income $73 $78 $52 $52 $37 --------------------------------------------------------------------
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) 2005 2005 2005 2005 2006 - -------------------------------------------------------------------------------------------------------------------------------- PREMIUMS, FEES AND OTHER REVENUES BY PRODUCT (1) Group Life $1,564 $1,629 $1,688 $1,563 $1,761 Retirement & Savings 561 448 625 304 402 Non-Medical Health & Other 1,073 1,105 1,113 1,139 1,197 ----------------------------------------------------------------- Total Premiums, Fees and Other Revenues $3,198 $3,182 $3,426 $3,006 $3,360 ================================================================= Group Disability (Included in Non-Medical Health & Other) $320 $331 $325 $335 $347 ADDITIONAL STATISTICAL INFORMATION INCURRED LOSS RATIO (MORTALITY EXPERIENCE): Term Life 94.2% 94.7% 91.5% 89.3% 94.2% INCURRED LOSS RATIO (MORBIDITY EXPERIENCE): Group Disability 89.5% 83.5% 95.0% 91.1% 90.7% NUMBER OF SALES REPRESENTATIVES 783 778 787 761 745 -----------------------------------------------------------------
(1) 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 $1,648 $1,633 $1,699 $1,655 $1,828 Retirement & Savings 561 448 625 304 402 Non-Medical Health & Other 1,080 1,104 1,116 1,146 1,197 ----------------------------------------------------------------- Total Premiums, Fees and Other Revenues $3,289 $3,185 $3,440 $3,105 $3,427 -----------------------------------------------------------------
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 2005 2005 2005 2005 2006 - ----------------------------------------------------------------------------------------------------------------------------- Balance, beginning of period $15,200 $15,354 $15,449 $16,290 $16,400 Premiums and deposits 2,744 2,921 2,921 2,681 3,372 Interest on reserves 137 144 159 166 176 Surrenders and withdrawals (1,159) (1,324) (1,263) (1,180) (1,196) Benefits and reserves (1,444) (1,519) (1,295) (1,397) (1,623) Other (124) (127) 319(1) (160) (178) ------------------------------------------------------------------------------------- Balance, end of period $15,354 $15,449 $16,290 $16,400 $16,951 -------------------------------------------------------------------------------------
For the Three Months Ended ------------------------------------------------------------------------------------- March 31, June 30, September 30, December 31, March 31, Retirement & Savings 2005 2005 2005 2005 2006 - ----------------------------------------------------------------------------------------------------------------------------- Balance, beginning of period $47,758 $49,233 $51,020 $77,933 $78,405 Premiums and deposits 2,750 2,122 2,751 3,282 3,819 Interest on reserves 630 650 933 937 986 Surrenders and withdrawals (876) (1,786) (2,604) (2,378) (2,851) Benefits and reserves (501) (508) (671) (655) (679) Other (528) 1,309 26,504(1) (714) (1,428) ------------------------------------------------------------------------------------- Balance, end of period $49,233 $51,020 $77,933 $78,405 $78,252 -------------------------------------------------------------------------------------
For the Three Months Ended ------------------------------------------------------------------------------------- March 31, June 30, September 30, December 31, March 31, Non-Medical Health & Other 2005 2005 2005 2005 2006 - ----------------------------------------------------------------------------------------------------------------------------- Balance, beginning of period $7,563 $7,721 $7,968 $8,321 $8,556 Premiums and deposits 952 978 996 1,023 1,066 Interest on reserves 65 66 74 76 78 Surrenders and withdrawals 19 23 21 20 20 Benefits and reserves (850) (880) (917) (915) (991) Other (28) 60 179(1) 31 120 ------------------------------------------------------------------------------------- Balance, end of period $7,721 $7,968 $8,321 $8,556 $8,849 -------------------------------------------------------------------------------------
SEPARATE ACCOUNT LIABILITIES
For the Three Months Ended ------------------------------------------------------------------------------------- March 31, June 30, September 30, December 31, March 31, Group Life 2005 2005 2005 2005 2006 - ----------------------------------------------------------------------------------------------------------------------------- Balance, beginning of period $8,192 $7,976 $8,050 $9,931 $10,539 Premiums and deposits 114 120 232 706 189 Investment performance 168 40 219 29 329 Surrenders and withdrawals (498) (86) (108) (121) (101) Policy charges 0 0 (7) (7) (7) Other 0 0 1,545(1) 1 0 ------------------------------------------------------------------------------------- Balance, end of period $7,976 $8,050 $9,931 $10,539 $10,949 -------------------------------------------------------------------------------------
For the Three Months Ended ------------------------------------------------------------------------------------- March 31, June 30, September 30, December 31, March 31, Retirement & Savings 2005 2005 2005 2005 2006 - ----------------------------------------------------------------------------------------------------------------------------- Balance, beginning of period $32,055 $30,654 $32,105 $34,508 $34,374 Premiums and deposits 1,587 965 1,108 1,204 1,345 Investment performance (1,141) 1,890 538 527 550 Surrenders and withdrawals (1,827) (1,351) (2,029) (1,775) (2,592) Policy charges (25) (26) (23) (30) (25) Other 5 (27) 2,809 (1) (60) 1 ------------------------------------------------------------------------------------- Balance, end of period $30,654 $32,105 $34,508 $34,374 $33,653 -------------------------------------------------------------------------------------
For the Three Months Ended ------------------------------------------------------------------------------------- March 31, June 30, September 30, December 31, March 31, Non-Medical Health & Other 2005 2005 2005 2005 2006 - ----------------------------------------------------------------------------------------------------------------------------- Balance, beginning of period $214 $243 $276 $298 $326 Premiums and deposits 88 85 81 78 90 Investment performance (108) 191 66 (34) 90 Surrenders and withdrawals (19) (23) (21) (19) (20) Policy charges (17) (18) (18) (15) (14) Other 85 (202) (86) 18 (112) ------------------------------------------------------------------------------------- Balance, end of period $243 $276 $298 $326 $360 -------------------------------------------------------------------------------------
(1) Includes the beginning balances of Travelers of $771 million, $27,661 million and $347 million for Group Life, Retirement & Savings and Non-Medical Health & Other, respectively, in Future Policy Benefits and Policyholder Account Balances and $1,545 million and $2,428 million for Group Life and Retirement & Savings, respectively, in Separate Account Liabilities. 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) 2005 2005 2005 2005 2006 - ------------------------------------------------------------------------------------------------------------------------------------ OTHER EXPENSES BY MAJOR CATEGORY Direct and allocated expenses $380 $396 $417 $431 $361 Pension and other post-retirement benefit costs 20 18 19 19 21 Premium taxes and other taxes, licenses and fees 32 41 46 53 50 ------------------------------------------------------------------------- Sub-total Insurance Expenses 432 455 482 503 432 Commissions and other expenses 78 82 105 92 101 ------------------------------------------------------------------------- Total Other Expenses $510 $537 $587 $595 $533 -------------------------------------------------------------------------
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 2005 2005 2005 2005 2006 - ----------------------------------------------------------------------------------------------------------------------------- ANNUALIZED GENERAL ACCOUNT SPREADS BY SEGMENT (%) Investment income yield 5.68% 5.86% 5.89% 5.98% 6.07% Average crediting rate 3.65% 3.78% 3.92% 4.07% 4.40% --------------------------------------------------------------------------------- Spread 2.03% 2.08% 1.97% 1.91% 1.67% ---------------------------------------------------------------------------------
For the Three Months Ended ---------------------------------------------------------------------------------- March 31, June 30, September 30, December 31, March 31, Retirement & Savings 2005 2005 2005 2005 2006 - ------------------------------------------------------------------------------------------------------------------------------ ANNUALIZED GENERAL ACCOUNT SPREADS BY SEGMENT (%) Investment income yield 7.12% 7.66% 6.57% 6.59% 6.74% Average crediting rate 5.47% 5.51% 4.97% 5.11% 5.31% ---------------------------------------------------------------------------------- Spread 1.65% 2.15% 1.60% 1.48% 1.43% ----------------------------------------------------------------------------------
For the Three Months Ended ---------------------------------------------------------------------------------- March 31, June 30, September 30, December 31, March 31, Non-Medical Health & Other 2005 2005 2005 2005 2006 - ------------------------------------------------------------------------------------------------------------------------------ ANNUALIZED GENERAL ACCOUNT SPREADS BY SEGMENT (%) Investment income yield 7.55% 9.17% 8.19% 8.25% 7.71% Average crediting rate 4.92% 4.94% 4.93% 4.95% 4.99% ---------------------------------------------------------------------------------- Spread 2.63% 4.23% 3.26% 3.30% 2.72% ----------------------------------------------------------------------------------
16 (METLIFE LOGO) INDIVIDUAL OPERATIONS STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS - TOTAL UNAUDITED (DOLLARS IN MILLIONS)
For the Three Months Ended ------------------------------------------------------------------------- March 31, June 30, September 30, December 31, March 31, Individual Operations 2005 2005 2005 2005 2006 - ------------------------------------------------------------------------------------------------------------------------------------ REVENUES Premiums $1,028 $1,065 $1,140 $1,269 $1,082 Universal life and investment-type product policy fees 479 501 746 750 793 Investment income, net 1,538 1,571 1,751 1,711 1,741 Other revenues 112 105 150 110 125 ------------------------------------------------------------------------- 3,157 3,242 3,787 3,840 3,741 ------------------------------------------------------------------------- EXPENSES Policyholder benefits and dividends 1,636 1,733 1,770 1,940 1,745 Interest credited to policyholder account balances 392 395 500 488 476 Capitalization of deferred policy acquisition costs (254) (279) (384) (409) (370) Amortization of deferred policy acquisition costs 182 169 310 303 302 Other expenses 720 788 1,096 1,049 964 ------------------------------------------------------------------------- 2,676 2,806 3,292 3,371 3,117 ------------------------------------------------------------------------- Operating earnings before provision (benefit) for income taxes 481 436 495 469 624 Provision (benefit) for income taxes 160 145 164 155 216 ------------------------------------------------------------------------- OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $321 $291 $331 $314 $408 ========================================================================= NET INCOME RECONCILIATION - -------------------------------------------------------- Operating earnings available to common shareholders $321 $291 $331 $314 $408 Net investment gains (losses) 59 501 (6) (180) (265) Minority interest - net investment gains (losses) (4) 0 0 0 0 Net investment gains (losses) tax benefit (provision) (23) (174) 0 65 95 ------------------------------------------------------------------------- Net investment gains (losses), net of income taxes 32 327 (6) (115) (170) Adjustments related to universal life and investment-type product policy fees 0 0 0 0 (3) Adjustments related to policyholder benefits and dividends 21 (33) (29) 30 61 Adjustments related to other expenses 2 (21) 11 31 45 Adjustments related to tax benefit (provision) (8) 19 7 (22) (37) ------------------------------------------------------------------------- Adjustments related to net investment gains (losses), net of income taxes(1) 15 (35) (11) 39 66 Discontinued operations, net of income taxes 0 0 0 0 0 ------------------------------------------------------------------------- Net income available to common shareholders 368 583 314 238 304 Preferred stock dividends 0 0 0 0 0 ------------------------------------------------------------------------- Net income $368 $583 $314 $238 $304 -------------------------------------------------------------------------
(1) Adjustments related to net investment gains (losses), net of income taxes, includes amortization of unearned revenue and deferred policy acquisition costs, adjustments to the policyholder dividend obligation and amounts allocable to certain participating contracts. 17 (METLIFE LOGO) INDIVIDUAL OPERATIONS STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS - PRODUCT LEVEL UNAUDITED (DOLLARS IN MILLIONS)
For the Three Months Ended -------------------------------------------------------------------------- March 31, June 30, September 30, December 31, March 31, Traditional Life 2005 2005 2005 2005 2006 - ------------------------------------------------------------------------------------------------------------------------------------ REVENUES Premiums $965 $992 $1,020 $1,139 $976 Universal life and investment-type product policy fees 0 0 0 0 0 Investment income, net 842 832 838 815 821 Other revenues 2 0 1 1 0 -------------------------------------------------------------------------- 1,809 1,824 1,859 1,955 1,797 -------------------------------------------------------------------------- EXPENSES Policyholder benefits and dividends 1,447 1,523 1,468 1,648 1,444 Interest credited to policyholder account balances 0 0 0 0 0 Capitalization of deferred policy acquisition costs (43) (60) (47) (53) (56) Amortization of deferred policy acquisition costs 52 48 58 46 53 Other expenses 185 209 230 224 207 -------------------------------------------------------------------------- 1,641 1,720 1,709 1,865 1,648 -------------------------------------------------------------------------- Operating earnings before provision (benefit) for income taxes 168 104 150 90 149 Provision (benefit) for income taxes 56 36 50 31 51 -------------------------------------------------------------------------- OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $112 $68 $100 $59 $98 ========================================================================== Net investment gains (losses), net of income taxes 45 224 31 15 (44) Adjustments related to net investment gains (losses), net of income taxes 15 (22) (22) 20 40 Discontinued operations, net of income taxes 0 0 0 0 0 -------------------------------------------------------------------------- Net income available to common shareholders 172 270 109 94 94 Preferred stock dividends 0 0 0 0 0 -------------------------------------------------------------------------- Net income $172 $270 $109 $94 $94 --------------------------------------------------------------------------
18 (METLIFE LOGO) INDIVIDUAL OPERATIONS STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS - PRODUCT LEVEL UNAUDITED (DOLLARS IN MILLIONS)
For the Three Months Ended -------------------------------------------------------------------------- March 31, June 30, September 30, December 31, March 31, Variable & Universal Life 2005 2005 2005 2005 2006 - ------------------------------------------------------------------------------------------------------------------------------------ REVENUES Premiums $0 $0 $0 $0 $0 Universal life and investment-type product policy fees 265 277 384 382 395 Investment income, net 152 151 196 190 203 Other revenues 0 (3) 0 (1) (3) -------------------------------------------------------------------------- 417 425 580 571 595 -------------------------------------------------------------------------- EXPENSES Policyholder benefits and dividends 93 97 120 120 123 Interest credited to policyholder account balances 114 117 145 146 142 Capitalization of deferred policy acquisition costs (65) (72) (133) (136) (102) Amortization of deferred policy acquisition costs 49 64 105 113 110 Other expenses 148 160 266 275 208 -------------------------------------------------------------------------- 339 366 503 518 481 -------------------------------------------------------------------------- Operating earnings before provision (benefit) for income taxes 78 59 77 53 114 Provision (benefit) for income taxes 27 20 26 18 40 -------------------------------------------------------------------------- OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $51 $39 $51 $35 $74 ========================================================================== Net investment gains (losses), net of income taxes (8) 9 (12) (22) (25) Adjustments related to net investment gains (losses), net of income taxes (2) (2) 7 10 9 Discontinued operations, net of income taxes 0 0 0 0 0 -------------------------------------------------------------------------- Net income available to common shareholders 41 46 46 23 58 Preferred stock dividends 0 0 0 0 0 -------------------------------------------------------------------------- Net income $41 $46 $46 $23 $58 --------------------------------------------------------------------------
19 (METLIFE LOGO) INDIVIDUAL OPERATIONS STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS - PRODUCT LEVEL UNAUDITED (DOLLARS IN MILLIONS)
For the Three Months Ended -------------------------------------------------------------------------- March 31, June 30, September 30, December 31, March 31, Annuities 2005 2005 2005 2005 2006 - ------------------------------------------------------------------------------------------------------------------------------------ REVENUES Premiums $63 $73 $118 $101 $98 Universal life and investment-type product policy fees 185 198 318 334 356 Investment income, net 511 551 681 665 677 Other revenues 11 13 26 29 29 -------------------------------------------------------------------------- 770 835 1,143 1,129 1,160 -------------------------------------------------------------------------- EXPENSES Policyholder benefits and dividends 96 113 178 152 173 Interest credited to policyholder account balances 261 260 338 322 314 Capitalization of deferred policy acquisition costs (145) (147) (204) (220) (212) Amortization of deferred policy acquisition costs 81 57 147 144 139 Other expenses 259 292 427 422 400 -------------------------------------------------------------------------- 552 575 886 820 814 -------------------------------------------------------------------------- Operating earnings before provision (benefit) for income taxes 218 260 257 309 346 Provision (benefit) for income taxes 71 85 84 100 120 -------------------------------------------------------------------------- OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $147 $175 $173 $209 $226 ========================================================================== Net investment gains (losses), net of income taxes 1 94 (29) (99) (102) Adjustments related to net investment gains (losses), net of income taxes 2 (11) 4 9 17 Discontinued operations, net of income taxes 0 0 0 0 0 -------------------------------------------------------------------------- Net income available to common shareholders 150 258 148 119 141 Preferred stock dividends 0 0 0 0 0 -------------------------------------------------------------------------- Net income $150 $258 $148 $119 $141 --------------------------------------------------------------------------
20 (METLIFE LOGO) INDIVIDUAL OPERATIONS STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS - PRODUCT LEVEL UNAUDITED (DOLLARS IN MILLIONS)
For the Three Months Ended -------------------------------------------------------------------------- March 31, June 30, September 30, December 31, March 31, Other 2005 2005 2005 2005 2006 - ------------------------------------------------------------------------------------------------------------------------------------ REVENUES Premiums $0 $0 $2 $29 $8 Universal life and investment-type product policy fees 29 26 44 34 42 Investment income, net 33 37 36 41 40 Other revenues 99 95 123 81 99 -------------------------------------------------------------------------- 161 158 205 185 189 -------------------------------------------------------------------------- EXPENSES Policyholder benefits and dividends 0 0 4 20 5 Interest credited to policyholder account balances 17 18 17 20 20 Capitalization of deferred policy acquisition costs (1) 0 0 0 0 Amortization of deferred policy acquisition costs 0 0 0 0 0 Other expenses 128 127 173 128 149 -------------------------------------------------------------------------- 144 145 194 168 174 -------------------------------------------------------------------------- Operating earnings before provision (benefit) for income taxes 17 13 11 17 15 Provision (benefit) for income taxes 6 4 4 6 5 -------------------------------------------------------------------------- OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $11 $9 $7 $11 $10 ========================================================================== Net investment gains (losses), net of income taxes (6) 0 4 (9) 1 Adjustments related to net investment gains (losses), net of income taxes 0 0 0 0 0 Discontinued operations, net of income taxes 0 0 0 0 0 -------------------------------------------------------------------------- Net income available to common shareholders 5 9 11 2 11 Preferred stock dividends 0 0 0 0 0 -------------------------------------------------------------------------- Net income $5 $9 $11 $2 $11 --------------------------------------------------------------------------
21 (METLIFE LOGO) INDIVIDUAL OPERATIONS PREMIUMS AND DEPOSITS BY PRODUCT
For the Three Months Ended ------------------------------------------------------------- March 31, June 30, September 30, December 31, March 31, Unaudited (Dollars in millions) 2005 2005 2005 2005 2006 - ----------------------------------------------------------------------------------------------------------------------------------- PREMIUMS AND DEPOSITS BY PRODUCT (1) TOTAL (2) Life First Year Premiums and Deposits Traditional Life $ 47 $ 52 $ 52 $ 54 $ 50 Variable Life 1st Year excluding Single Premium COLI/BOLI 57 41 56 63 50 Universal Life 1st Year excluding Single Premium COLI/BOLI 102 110 245 228 203 Single Premium COLI/BOLI 1 10 4 15 6 ------------------------------------------------------------- Total Life First Year Premiums & Deposits (3) 207 213 357 360 309 Life Renewal Premiums and Deposits Traditional Life 943 1,020 1,033 1,227 959 Variable & Universal Life 472 416 532 551 600 Annuities (4) 2,540 2,496 3,624 3,570 3,843 ------------------------------------------------------------- Total Premiums and Deposits $4,162 $4,145 $5,546 $5,708 $5,711 ============================================================= PREMIUMS AND DEPOSITS TO SEPARATE ACCOUNTS Variable & Universal Life $ 279 $ 246 $ 297 $ 307 $ 283 Annuities 1,532 1,503 2,306 2,479 2,532 ------------------------------------------------------------- Total Separate Accounts $1,811 $1,749 $2,603 $2,786 $2,815 ============================================================= ANNUITY DEPOSITS BY TYPE Fixed Annuity Deposits $ 429 $ 356 $ 496 $ 464 $ 520 Variable Annuity Deposits 2,111 2,140 3,128 3,106 3,323 ------------------------------------------------------------- Total Annuity Deposits $2,540 $2,496 $3,624 $3,570 $3,843 =============================================================
(1) Statutory premiums direct and assumed. (2) Includes premiums and deposits to separate accounts and excludes Company sponsored internal changes. (3) Of the $309 million of First Year Life Premiums and Deposits received during the three months ended March 31, 2006, approximately 36% were distributed through MetLife agents, 13% through New England Financial agents, 48% through MetLife's Independent Distribution channel and 3% through other distribution channels. (4) Of the $3,843 million of Annuity Deposits received during the three months ended March 31, 2006, approximately 23% were distributed through MetLife agents, 6% through New England Financial agents, 58% through MetLife's Independent Distribution channel and 13% through MetLife Resources representatives. 22 (METLIFE LOGO) INDIVIDUAL OPERATIONS ADDITIONAL STATISTICAL INFORMATION
For the Three Months Ended -------------------------------------------------------------- March 31, June 30, September 30, December 31, March 31, Unaudited 2005 2005 2005 2005 2006 - ----------------------------------------------------------------------------------------------------------------------------------- PERCENTAGE OF PREMIUMS AND DEPOSITS TO SEPARATE ACCOUNTS, EXCLUDING TRANSFERS FROM GENERAL ACCOUNT: Variable & Universal Life 43.0% 41.4% 33.4% 33.6% 31.3% Annuities 60.3% 60.2% 63.6% 69.4% 65.9% MORTALITY AS A PERCENTAGE OF EXPECTED 85.6% 84.7% 86.4% 84.9% 94.0% LAPSES / SURRENDERS (GENERAL AND SEPARATE ACCOUNT) (1) Traditional Life 6.2% 6.1% 6.1% 6.0% 6.0% Variable & Universal Life 6.6% 6.3% 6.2% 6.1% 6.3% Variable Annuities 7.6% 7.7% 8.4% 8.9% 9.5% Fixed Annuities 6.3% 5.8% 6.4% 8.0% 8.7% NUMBER OF SALES REPRESENTATIVES MetLife Distribution 5,718 5,773 5,774 5,804 5,954 New England Financial 2,231 2,255 2,228 2,006 2,068 Independent Distribution Wholesalers 116 124 279 229 220 MetLife Resources 422 428 857 794 751 Walnut Street and Tower Square Securities 1,294 1,263 1,869 1,676 1,632 P&C Specialists 570 617 672 682 658 -------------------------------------------------------------- Total Agents 10,351 10,460 11,679 11,191 11,283 ==============================================================
(1) Lapses/Surrenders rates are calculated for the most recent 12 months of experience. 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 2005 2005 2005 2005 2006 - ----------------------------------------------------------------------------------------------------------------------------------- Balance, beginning of period $ 49,209 $ 49,371 $ 49,582 $ 50,562 $ 50,944 Premiums and deposits (1) 1,032 1,066 1,101 1,239 1,061 Interest on reserves 499 503 514 518 511 Surrenders and withdrawals (447) (437) (443) (470) (504) Benefit payments (484) (492) (498) (459) (572) Other (438) (429) 306(2) (446) (463) -------------------------------------------------------------- Balance, end of period $ 49,371 $ 49,582 $ 50,562 $ 50,944 $ 50,977 ==============================================================
For the Three Months Ended -------------------------------------------------------------- March 31, June 30, September 30, December 31, March 31, Variable & Universal Life 2005 2005 2005 2005 2006 - ----------------------------------------------------------------------------------------------------------------------------------- Balance, beginning of period $ 9,991 $ 10,087 $ 10,154 $ 14,315 $ 14,852 Premiums and deposits (1) (3) 353 320 548 567 572 Interest on reserves 112 117 151 148 142 Surrenders and withdrawals (161) (160) (178) (185) (168) Net transfers from (to) separate account 44 55 52 45 49 Policy charges (225) (231) (350) (351) (363) Benefit payments (27) (30) (36) (34) (48) Other 0 (4) 3,974(2) 347 6 -------------------------------------------------------------- Balance, end of period $ 10,087 $ 10,154 $ 14,315 $ 14,852 $ 15,042 ==============================================================
For the Three Months Ended -------------------------------------------------------------- March 31, June 30, September 30, December 31, March 31, Annuities 2005 2005 2005 2005 2006 - ----------------------------------------------------------------------------------------------------------------------------------- Balance, beginning of period $ 32,184 $ 32,304 $ 32,421 $ 46,136 $ 45,732 Premiums and deposits (1) (3) 1,089 1,101 1,410 1,298 1,398 Interest on reserves 312 309 401 398 395 Surrenders and withdrawals (587) (679) (1,014) (1,178) (1,231) Net transfers from (to) separate account (427) (346) (544) (625) (621) Policy charges (1) (3) (2) (2) (2) Benefit payments (277) (273) (309) (297) (326) Other 11 8 13,773(2) 2 (52) -------------------------------------------------------------- Balance, end of period $ 32,304 $ 32,421 $ 46,136 $ 45,732 $ 45,293 ==============================================================
SEPARATE ACCOUNT LIABILITIES - ----------------------------
For the Three Months Ended -------------------------------------------------------------- March 31, June 30, September 30, December 31, March 31, Variable & Universal Life 2005 2005 2005 2005 2006 - ----------------------------------------------------------------------------------------------------------------------------------- Balance, beginning of period $ 7,785 $ 7,747 $ 7,900 $ 9,164 $ 9,307 Premiums and deposits (1) 279 247 297 307 283 Investment performance (94) 135 318 155 492 Surrenders and withdrawals (109) (109) (137) (177) (158) Net transfers from (to) fixed account (44) (55) (52) (45) (51) Policy charges (70) (65) (89) (96) (80) Other 0 0 927(2) (1) (24) -------------------------------------------------------------- Balance, end of period $ 7,747 $ 7,900 $ 9,164 $ 9,307 $ 9,769 ==============================================================
For the Three Months Ended -------------------------------------------------------------- March 31, June 30, September 30, December 31, March 31, Annuities 2005 2005 2005 2005 2006 - ----------------------------------------------------------------------------------------------------------------------------------- Balance, beginning of period $ 37,597 $ 38,051 $ 39,771 $ 69,146 $ 71,764 Premiums and deposits (1) 1,532 1,503 2,306 2,479 2,532 Investment performance (604) 806 2,701 1,507 3,255 Surrenders and withdrawals (764) (796) (1,723) (1,724) (2,026) Net transfers from (to) fixed account 427 346 544 625 621 Policy charges (137) (139) (266) (269) (280) Other 0 0 25,813(2) 0 (5) -------------------------------------------------------------- Balance, end of period $ 38,051 $ 39,771 $ 69,146 $ 71,764 $ 75,861 ==============================================================
(1) Includes Company-sponsored internal exchanges. (2) Includes the beginning balances of Travelers of $764 million, $3,952 million and $13,755 million for Traditional Life, Variable & Universal Life and Annuities, respectively, in Future Policy Benefits and Policyholder Account Balances and $928 million and $25,813 million for Variable & Universal Life and Annuities, respectively, in Separate Account Liabilities. (3) Includes premiums and deposits directed to General Account investment option of a variable life and 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) 2005 2005 2005 2005 2006 - ----------------------------------------------------------------------------------------------------------------------------------- INSURANCE EXPENSES (NET OF CAPITALIZATION OF DAC) Insurance Expenses $ 606 $ 674 $ 936 $ 941 $ 830 DAC Capitalization (1) (272) (292) (401) (426) (384) -------------------------------------------------------------- Net $ 334 $ 382 $ 535 $ 515 $ 446 ============================================================== OTHER EXPENSES BY MAJOR CATEGORY Commissions $ 196 $ 206 $ 329 $ 347 $ 315 Other deferrable expenses 102 113 126 140 120 Direct and allocated expenses, not deferred 251 317 422 410 334 Pension and other post-retirement benefit costs 29 29 29 30 34 Premium taxes and other taxes, licenses and fees 28 9 30 14 27 --------------------------------------------------------------- Subtotal Insurance Expenses 606 674 936 941 830 Broker-dealer and other expenses 132 132 177 132 155 Reinsurance allowances (18) (18) (17) (24) (21) --------------------------------------------------------------- Total Other Expenses $ 720 $ 788 $ 1,096 $ 1,049 $ 964 ==============================================================
(1) Excludes $18 million, $13 million, $17 million, $17 million and $14 million of DAC capitalization related to reinsurance allowances for the three months ended March 31, 2005, June 30, 2005, September 30, 2005, December 31, 2005 and March 31, 2006, 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 2005 2005 2005 2005 2006 - ----------------------------------------------------------------------------------------------------------------------------------- ANNUALIZED GENERAL ACCOUNT SPREADS BY PRODUCT (%) Investment income yield 6.96% 6.85% 6.91% 6.63% 6.69% Average crediting rate 4.84% 4.92% 4.65% 4.67% 4.56% -------------------------------------------------------------- Spread 2.12% 1.93% 2.26% 1.96% 2.13% ==============================================================
For the Three Months Ended -------------------------------------------------------------- March 31, June 30, September 30, December 31, March 31, ANNUITIES 2005 2005 2005 2005 2006 - ----------------------------------------------------------------------------------------------------------------------------------- ANNUALIZED GENERAL ACCOUNT SPREADS BY PRODUCT (%) Investment income yield 6.17% 6.62% 6.41% 6.32% 6.28% Average crediting rate 3.49% 3.44% 3.64% 3.64% 3.65% -------------------------------------------------------------- Spread 2.68% 3.18% 2.77% 2.68% 2.63% ==============================================================
26 (METLIFE LOGO) AUTO & HOME OPERATIONS STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS - TOTAL UNAUDITED (DOLLARS IN MILLIONS)
For the Three Months Ended --------------------------------------------------------------- March 31, June 30, September 30, December 31, March 31, Auto & Home Operations 2005 2005 2005 2005 2006 - ----------------------------------------------------------------------------------------------------------------------------------- REVENUES Earned premiums $ 728 $ 738 $ 716 $ 729 $ 724 Investment income, net 43 46 46 46 45 Other revenues 9 8 8 8 7 -------------------------------------------------------------- 780 792 770 783 776 -------------------------------------------------------------- EXPENSES Losses 392 360 483 391 379 Loss adjustment expense 85 88 132 63 72 Other expenses 200 204 209 218 203 -------------------------------------------------------------- 677 652 824 672 654 -------------------------------------------------------------- Operating earnings before provision (benefit) for income taxes 103 140 (54) 111 122 Provision (benefit) for income taxes 27 39 (28) 30 29 -------------------------------------------------------------- OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $ 76 $ 101 $ (26) $ 81 $ 93 ============================================================== NET INCOME RECONCILIATION - ----------------------------------------------------------------- Operating earnings available to common shareholders $ 76 $ 101 $ (26) $ 81 $ 93 Net investment gains (losses) 0 (4) (5) (3) 1 Minority interest - net investment gains (losses) 0 0 0 0 0 Net investment gains (losses) tax benefit (provision) 0 1 2 1 (3) -------------------------------------------------------------- Net investment gains (losses), net of income taxes 0 (3) (3) (2) (2) Adjustments related to universal life and investment-type product policy fees 0 0 0 0 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 Discontinued operations, net of income taxes 0 0 0 0 0 -------------------------------------------------------------- Net income available to common shareholders 76 98 (29) 79 91 Preferred stock dividends 0 0 0 0 0 -------------------------------------------------------------- Net income $ 76 $ 98 $ (29) $ 79 $ 91 ==============================================================
27 (METLIFE LOGO) AUTO & HOME OPERATIONS STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS-PRODUCT LEVEL UNAUDITED (DOLLARS IN MILLIONS)
For the Three Months Ended ---------------------------------------------------------------- March 31, June 30, September 30, December 31, March 31, Auto 2005 2005 2005 2005 2006 - ------------------------------------------------------------------------------------------------------------------------------------ REVENUES Earned premiums $ 531 $ 533 $ 534 $ 525 $ 517 Investment income, net 32 35 34 37 34 Other revenues 6 6 6 5 6 ---------------------------------------------------------------- 569 574 574 567 557 ---------------------------------------------------------------- EXPENSES Losses 304 272 275 296 274 Loss adjustment expense 74 70 64 59 60 Other expenses 137 141 143 150 137 ---------------------------------------------------------------- 515 483 482 505 471 ---------------------------------------------------------------- Operating earnings before provision (benefit) for income taxes 54 91 92 62 86 Provision (benefit) for income taxes 11 24 27 13 21 ---------------------------------------------------------------- OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $ 43 $ 67 $ 65 $ 49 $ 65 ================================================================ Net investment gains (losses), net of income taxes 0 (2) (2) (2) (1) Adjustments related to net investment gains (losses), net of income taxes 0 0 0 0 0 Discontinued operations, net of income taxes 0 0 0 0 0 ---------------------------------------------------------------- Net income available to common shareholders 43 65 63 47 64 Preferred stock dividends 0 0 0 0 0 ---------------------------------------------------------------- Net income $ 43 $ 65 $ 63 $ 47 $ 64 ----------------------------------------------------------------
28 (METLIFE LOGO) AUTO & HOME OPERATIONS STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS-PRODUCT LEVEL UNAUDITED (DOLLARS IN MILLIONS)
For the Three Months Ended --------------------------------------------------------------- March 31, June 30, September 30, December 31, March 31, Homeowners 2005 2005 2005 2005 2006 - ----------------------------------------------------------------------------------------------------------------------------------- REVENUES Earned premiums $ 184 $ 193 $ 170 $ 192 $ 194 Investment income, net 10 10 12 8 11 Other revenues 1 2 1 2 1 --------------------------------------------------------------- 195 205 183 202 206 --------------------------------------------------------------- EXPENSES Losses 82 82 195 89 98 Loss adjustment expense 11 17 65 5 12 Other expenses 56 58 61 64 59 --------------------------------------------------------------- 149 157 321 158 169 --------------------------------------------------------------- Operating earnings before provision (benefit) for income taxes 46 48 (138) 44 37 Provision (benefit) for income taxes 15 15 (52) 15 9 --------------------------------------------------------------- OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $ 31 $ 33 $ (86) $ 29 $ 28 =============================================================== Net investment gains (losses), net of income taxes 0 (1) 0 (1) (1) Adjustments related to net investment gains (losses), net of income taxes 0 0 0 0 0 Discontinued operations, net of income taxes 0 0 0 0 0 --------------------------------------------------------------- Net income available to common shareholders 31 32 (86) 28 27 Preferred stock dividends 0 0 0 0 0 --------------------------------------------------------------- Net income $ 31 $ 32 $ (86) $ 28 $ 27 ---------------------------------------------------------------
29 (METLIFE LOGO) AUTO & HOME OPERATIONS STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS-PRODUCT LEVEL UNAUDITED (DOLLARS IN MILLIONS)
For the Three Months Ended ------------------------------------------------------------------ March 31, June 30, September 30, December 31, March 31, Other 2005 2005 2005 2005 2006 - ---------------------------------------------------------------------------------------------------------------------------------- REVENUES Earned premiums $ 13 $ 12 $ 12 $ 12 $ 13 Investment income, net 1 1 0 1 0 Other revenues 2 0 1 1 0 ------------------------------------------------------------------ 16 13 13 14 13 ------------------------------------------------------------------ EXPENSES Losses 6 6 13 6 7 Loss adjustment expense 0 1 3 (1) 0 Other expenses 7 5 5 4 7 ------------------------------------------------------------------ 13 12 21 9 14 ------------------------------------------------------------------ Operating earnings before provision (benefit) for income taxes 3 1 (8) 5 (1) Provision (benefit) for income taxes 1 0 (3) 2 (1) ------------------------------------------------------------------ OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $ 2 $ 1 $ (5) $ 3 $ 0 ================================================================== Net investment gains (losses), net of income taxes 0 0 (1) 1 0 Adjustments related to net investment gains (losses), net of income taxes 0 0 0 0 0 Discontinued operations, net of income taxes 0 0 0 0 0 ------------------------------------------------------------------ Net income available to common shareholders 2 1 (6) 4 0 Preferred stock dividends 0 0 0 0 0 ------------------------------------------------------------------ Net income $ 2 $ 1 $ (6) $ 4 $ 0 ------------------------------------------------------------------
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) 2005 2005 2005 2005 2006 - ----------------------------------------------------------------------------------------------------------------------------- WRITTEN PREMIUMS BY PRODUCT Preferred/Standard Automobile $ 512 $ 519 $ 528 $ 492 $ 498 Non-Standard Automobile 17 15 14 12 12 Homeowners 160 212 200 191 169 Other 17 12 11 9 17 ---------------------------------------------------------------------------- Total $ 706 $ 758 $ 753 $ 704 $ 696 ============================================================================ SELECTED FINANCIAL INFORMATION AND SUPPLEMENTAL DATA TOTAL AUTO & HOME Loss and loss adjustment expense ratio 65.7% 60.4% 85.8% 62.3% 62.4% Other expense ratio 26.7% 27.2% 28.5% 29.2% 27.2% --------------------------------------------------------------------------- Total combined ratio (1) 92.4% 87.6% 114.3% 91.5% 89.6% Effect of catastrophe losses (2) 1.5% 1.2% 27.5% 8.5% 3.0% --------------------------------------------------------------------------- Combined ratio excluding catastrophes 90.9% 86.4% 86.8% 83.0% 86.6% =========================================================================== AUTO Loss and loss adjustment expense ratio 71.5% 63.6% 63.3% 67.6% 64.7% Other expense ratio 25.0% 26.0% 26.0% 27.8% 25.7% --------------------------------------------------------------------------- Total combined ratio (1) 96.5% 89.6% 89.3% 95.4% 90.4% Effect of catastrophe losses (2) 0.4% 0.1% 2.7% 3.4% 0.8% --------------------------------------------------------------------------- Combined ratio excluding catastrophes 96.1% 89.5% 86.6% 92.0% 89.6% =========================================================================== HOMEOWNERS Loss and loss adjustment expense ratio 50.2% 51.4% 153.1% 48.9% 57.1% Other expense ratio 29.7% 29.8% 35.4% 32.9% 29.3% --------------------------------------------------------------------------- Total combined ratio (1) 79.9% 81.2% 188.5% 81.8% 86.4% Effect of catastrophe losses (2) 4.9% 4.4% 106.3% 20.9% 8.9% --------------------------------------------------------------------------- Combined ratio excluding catastrophes 75.0% 76.8% 82.2% 60.9% 77.5% =========================================================================== OTHER Loss and loss adjustment expense ratio 49.3% 60.7% 127.0% 41.7% 53.2% Other expense ratio 56.1% 38.7% 39.4% 33.3% 52.3% --------------------------------------------------------------------------- Total combined ratio(1) 105.4% 99.4% 166.4% 75.0% 105.5% Effect of catastrophe losses 0.0% 0.0% 0.0% 12.5% 0.0% --------------------------------------------------------------------------- Combined ratio excluding catastrophes 105.4% 99.4% 166.4% 62.5% 105.5% =========================================================================== PRE-TAX CATASTROPHE LOSSES Auto $ 2 $ 1 $ 13 $ 17 $ 4 Homeowners 9 9 156 34 17 Other 0 0 0 2 0 --------------------------------------------------------------------------- Total $ 11 $ 10 $ 169 $ 53 $ 21 =========================================================================== CATASTROPHE POINTS ON COMBINED RATIOS 1.5 1.2 27.5 8.5 3.0 NUMBER OF SALES REPRESENTATIVES 89 89 85 100 98 ---------------------------------------------------------------------------
(1) The combined ratio reflects payment fees as a credit to Other expenses for the three months ended March 31, 2005, June 30, 2005, September 30, 2005, December 31, 2005 and March 31, 2006, which resulted in a 0.8, 0.7, 0.7, 0.7 and 0.7 of a percentage point decrease in the combined ratio for the periods ended, respectively. The decreases for Auto, Homeowners and Other were 0.8, 0.5 and 0.5 of a percentage point, respectively, for March 31, 2005, 0.7, 0.4 and 0.8 of a percentage point, respectively, for June 30, 2005, 0.8, 0.5, 0.8 of a percentage point, respectively, for September 30, 2005, 0.8, 0.4 and 0.8 of a percentage point, respectively, for December 31, 2005 and 0.8, 0.4 and 0.4 of a percentage point, respectively, for March 31, 2006. (2) Includes the effect of both catastrophe losses and $32 million in reinstatement reinsurance premiums within Auto ($2 million) and Homeowners ($30 million) for third quarter of 2005 and $11 million in the fourth quarter of 2005 for reinstatement reinsurance premiums within Auto ($1 million) and Homeowners ($10 million). 31 (METLIFE LOGO) INTERNATIONAL OPERATIONS STATEMENT OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
For the Three Months Ended ------------------------------------------------------------ March 31, June 30, September 30, December 31, March 31, Unaudited (Dollars in millions) 2005 2005 2005 2005 2006 - ---------------------------------------------------------------------------------------------------------------------------------- REVENUES Premiums $ 466 $ 470 $ 614 $ 636 $ 631 Universal life and investment-type product policy fees 119 125 170 165 184 Investment income, net 149 195 238 262 235 Other revenues 3 (1) 9 9 4 ------------------------------------------------------------ 737 789 1,031 1,072 1,054 ------------------------------------------------------------ EXPENSES Policyholder benefits and dividends 410 468 578 600 527 Interest credited to policyholder account balances 47 55 84 92 87 Capitalization of deferred policy acquisition costs (125) (138) (137) (141) (151) Amortization of deferred policy acquisition costs 56 56 68 43 82 Other expenses 244 274 359 441 396 ------------------------------------------------------------ 632 715 952 1,035 941 ------------------------------------------------------------ Operating earnings before provision (benefit) for income taxes 105 74 79 37 113 Provision (benefit) for income taxes 37 23 13 (11) 38 ------------------------------------------------------------ OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $ 68 $ 51 $ 66 $ 48 $ 75 ============================================================ NET INCOME RECONCILIATION - ------------------------------------------------------------------ Operating earnings available to common shareholders $ 68 $ 51 $ 66 $ 48 $ 75 Net investment gains (losses) 0 7 5 (7) 20 Minority interest - net investment gains (losses) 0 0 0 0 0 Net investment gains (losses) tax benefit (provision) 0 (2) (2) 3 (6) ------------------------------------------------------------ Net investment gains (losses), net of income taxes 0 5 3 (4) 14 Adjustments related to universal life and investment-type product policy fees 0 0 0 0 0 Adjustments related to policyholder benefits and dividends 14 (16) (54) (21) 22 Adjustments related to other expenses 0 0 0 0 0 Adjustments related to tax benefit (provision) (5) 6 19 7 (7) ------------------------------------------------------------ Adjustments related to net investment gains (losses), net of income taxes (1) 9 (10) (35) (14) 15 Discontinued operations, net of income taxes (1) (1) 7 0 0 ------------------------------------------------------------ Net income available to common shareholders 76 45 41 30 104 Preferred stock dividends 0 0 0 0 0 ------------------------------------------------------------ Net income $ 76 $ 45 $ 41 $ 30 $ 104 ============================================================ ------------------------------------------------------------ NUMBER OF PROFESSIONAL SALES REPRESENTATIVES 3,749 3,913 3,861 3,783 3,776 ------------------------------------------------------------
(1) 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. 32 (METLIFE LOGO) REINSURANCE OPERATIONS STATEMENT OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
For the Three Months Ended ----------------------------------------------------------- March 31, June 30, September 30, December 31, March 31, Unaudited (Dollars in millions) 2005 2005 2005 2005 2006 - ---------------------------------------------------------------------------------------------------------------------------------- REVENUES Premiums $ 903 $ 930 $ 974 $ 1,062 $ 993 Investment income, net 150 137 158 161 174 Other revenues 11 21 13 13 15 ----------------------------------------------------------- 1,064 1,088 1,145 1,236 1,182 ----------------------------------------------------------- EXPENSES Claims and other policy benefits 739 828 779 860 813 Interest credited to policyholder account balances 56 43 64 57 63 Policy acquisition costs and other insurance expenses 144 156 162 159 158 Other expenses 44 47 48 57 63 ----------------------------------------------------------- 983 1,074 1,053 1,133 1,097 ----------------------------------------------------------- Operating earnings before provision (benefit) for income taxes and minority interest 81 14 92 103 85 Provision (benefit) for income taxes 13 (1) 16 17 12 ----------------------------------------------------------- Operating earnings available to common shareholders before minority interest 68 15 76 86 73 Elimination of minority interest, before tax 43 11 50 55 49 ----------------------------------------------------------- CONTRIBUTION TO METLIFE $ 25 $ 4(2) $ 26 $ 31 $ 24 =========================================================== NET INCOME RECONCILIATION - -------------------------------------------------------------------- Operating earnings available to common shareholders $ 25 $ 4 $ 26 $ 31 $ 24 Net investment gains (losses) 28 (7) 7 (6) 8 Minority interest - net investment gains (losses) (5) (2) (1) 3 (2) Net investment gains (losses) tax benefit (provision) (8) 6 (2) 1 (2) ----------------------------------------------------------- Net investment gains (losses), net of income taxes 15 (3) 4 (2) 4 Adjustments related to universal life and investment-type product policy fees 0 0 0 0 0 Adjustments related to policyholder benefits and dividends 0 0 0 0 0 Adjustments related to other expenses (17) 12 (4) (1) (3) Adjustments related to tax benefit (provision) 6 (6) 2 0 1 ----------------------------------------------------------- Adjustments related to net investment gains (losses), net of income taxes (1) (11) 6 (2) (1) (2) Discontinued operations, net of income taxes 0 0 0 0 0 ----------------------------------------------------------- Net income available to common shareholders 29 7 28 28 26 Preferred stock dividends 0 0 0 0 0 ----------------------------------------------------------- Net income $ 29 $ 7 $ 28 $ 28 $ 26 -----------------------------------------------------------
(1) Adjustments related to net investment gains (losses), net of income taxes, includes amortization of deferred policy acquisition costs. (2) Operating earnings available to common shareholders for the three months ended June 30, 2005 includes an $8 million charge, net of income taxes, associated with an establishment of a liability associated with the Argentine pension business. 33 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) 2005 2005 2005 2005 2006 - ------------------------------------------------------------------------------- --------------------------------------------------- PRE-TAX AND PRE-MINORITY INTEREST OPERATING EARNINGS BY REGION (1) United States $ 48 $ 28 $ 78 $ 80 $ 66 Canada 23 17 21 20 7 Asia-Pacific 5 14 4 18 7 Other international markets 15 (7) 15 12 15 Corporate (10) (38) (26) (27) (10) ----------------------------------------------------------------------- Total pre-tax and pre-minority interest operating earnings $ 81 $ 14 $ 92 $ 103 $ 85 ======================================================================= POLICY BENEFITS AND INTEREST SENSITIVE CONTRACT LIABILITIES BY REGION Traditional U.S. $ 3,785 $ 3,865 $ 3,966 $ 4,030 $ 4,157 Asset intensive 4,159 4,267 4,497 4,657 4,773 Other 122 126 90 100 77 ----------------------------------------------------------------------- Total U.S. 8,066 8,258 8,553 8,787 9,007 ----------------------------------------------------------------------- Canada 1,367 1,389 1,507 1,596 1,622 Asia-Pacific 548 611 629 688 708 Other international markets 693 702 677 680 719 ----------------------------------------------------------------------- Total International 2,608 2,702 2,813 2,964 3,049 ----------------------------------------------------------------------- Total policy benefits and interest sensitive contract liabilities $ 10,674 $ 10,960 $ 11,366 $ 11,751 $ 12,056 =======================================================================
(1) Effective for the three months ended March 31, 2006, Reinsurance Group of America Incorporated ("RGA") changed its method of allocating capital to its regional markets from a method based on regulatory capital requirements to one based upon underlying economic capital levels. This approach is based upon a more detailed, internally developed risk capital model that its management believes better captures the unique risks inherent in each regional business. The primary effect of the change relates to the amount of net investment income and capital charges that are allocated to each region. This change does not affect RGA's consolidated financial results. 34 (METLIFE LOGO) CORPORATE, OTHER & ELIMINATIONS STATEMENT OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
For the Three Months Ended ----------------------------------------------------------------- March 31, June 30, September 30, December 31, March 31, Unaudited (Dollars in millions) 2005 2005 2005 2005 2006 - ----------------------------------------------------------------------------------------------------------------------------------- REVENUES Premiums $ (3) $ (1) $ 2 $ 7 $ 9 Universal life and investment-type product policy fees 0 0 1 0 0 Investment income, net 151 195 212 255 296 Other revenues 3 5 5 17 7 ----------------------------------------------------------------- 151 199 220 279 312 ----------------------------------------------------------------- EXPENSES Policyholder benefits and dividends 2 (47) 11 16 7 Interest credited to policyholder account balances (1) 1 0 0 0 Interest credited to bank deposits 17 25 30 37 43 Interest expense 104 110 166 171 175 Other expenses 63 34 57 133 93 ----------------------------------------------------------------- 185 123 264 357 318 ----------------------------------------------------------------- Operating earnings before provision (benefit) for income taxes (34) 76 (44) (78) (6) Provision (benefit) for income taxes (42) (1) (72) (46) (48) ----------------------------------------------------------------- Operating earnings 8 77 28 (32) 42 Preferred stock dividends 0 0 31 32 33 ----------------------------------------------------------------- OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $ 8 $ 77(1) $ (3)(2) $ (64) $ 9 ================================================================= NET INCOME RECONCILIATION - -------------------------------------------------------------- Operating earnings available to common shareholders $ 8 $ 77 $ (3) $ (64) $ 9 Net investment gains (losses) (113) 1,313 73 118 (49) Minority interest - net investment gains (losses) 0 0 0 0 0 Net investment gains (losses) tax benefit (provision) 43 (468) (25) (44) 16 ----------------------------------------------------------------- Net investment gains (losses), net of income taxes (70) 845 48 74 (33) Adjustments related to universal life and investment-type product policy fees 0 0 0 0 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 Discontinued operations, net of income taxes 151 0 0 12 0 ----------------------------------------------------------------- Net income available to common shareholders 89 922 45 22 (24) Preferred stock dividends 0 0 31 32 33 ----------------------------------------------------------------- Net income $ 89 $ 922 $ 76 $ 54 $ 9 =================================================================
(1) Operating earnings available to common shareholders for the three months ended June 30, 2005 includes a $30 million benefit, net of income taxes, associated with the reduction of a previously established liability for settlement death benefits related to the Company's sales practices class action settlement recorded in 1999 and an $18 million benefit, net of income taxes, associated with the reduction of a previously established liability related to the Company's demutualization in 2000. (2) Operating earnings available to common shareholders for the three months ended September 30, 2005 includes a $31 million benefit from a revision of the estimate of income taxes for 2004. 35 (METLIFE LOGO) METLIFE, INC. INVESTMENT RESULTS BY ASSET CATEGORY AND ANNUALIZED YIELDS (1)
At or For the Three Months Ended ---------------------------------------------------------------------------- March 31, June 30, September 30, December 31, March 31, UNAUDITED (DOLLARS IN MILLIONS) 2005 2005 2005 2005 2006 - ------------------------------------------------------------------------------------------------------------------------------------ FIXED MATURITIES Yield (2) 6.34% 6.34% 6.05% 6.20% 6.15% Income (3) $ 2,279 $ 2,311 $ 2,866 $ 2,968 $ 3,002 Investment gains (losses) $ (114) $ (89) $ (98) $ (567) $ (412) Ending Carrying Value (3) $ 182,267 $ 184,830 $ 232,041 $ 230,875 $ 240,711 MORTGAGE AND CONSUMER LOANS Yield (4) 6.76% 6.89% 6.96% 6.85% 6.68% Income $ 517 $ 535 $ 593 $ 591 $ 585 Investment gains (losses) $ (11) $ (8) $ 13 $ 23 $ 4 Ending Carrying Value $ 31,977 $ 33,586 $ 36,094 $ 37,190 $ 37,351 REAL ESTATE AND REAL ESTATE JOINT VENTURES Yield (4) 11.02% 12.41% 10.72% 8.59% 12.50% Income (5) $ 119 $ 130 $ 118 $ 100 $ 146 Investment gains (losses) (6) $ 18 $ 1,904 $ 51 $ 166 $ 17 Ending Carrying Value $ 4,377 $ 3,998 $ 4,705 $ 4,665 $ 4,700 POLICY LOANS Yield (4) 6.17% 6.19% 6.15% 5.80% 5.84% Income $ 138 $ 139 $ 152 $ 143 $ 146 Ending Carrying Value $ 8,953 $ 8,975 $ 9,841 $ 9,981 $ 9,987 EQUITY SECURITIES AND OTHER LIMITED PARTNERSHIP INTERESTS Yield (4) 9.90% 21.33% 9.23% 12.36% 12.53% Income $ 118 $ 276 $ 162 $ 218 $ 229 Investment gains (losses) $ 95 $ 12 $ 20 $ 32 $ 27 Ending Carrying Value $ 5,514 $ 5,914 $ 7,403 $ 7,614 $ 7,870 CASH AND SHORT-TERM INVESTMENTS Yield (4) 4.77% 3.57% 3.45% 4.22% 4.63% Income $ 64 $ 91 $ 122 $ 85 $ 80 Investment gains (losses) $ (1) $ 0 $ 0 $ (1) $ (1) Ending Carrying Value $ 6,470 $ 15,770 $ 11,431 $ 7,324 $ 8,512 OTHER INVESTED ASSETS Yield (4) 9.09% 7.83% 10.00% 9.65% 8.92% Income (7) $ 104 $ 102 $ 186 $ 178 $ 171 Investment gains (losses) $ (8) $ 406 $ (9) $ 113 $ (259) Ending Carrying Value $ 5,331 $ 6,452 $ 7,877 $ 8,078 $ 8,386 TOTAL INVESTMENTS Gross investment income yield 6.60% 6.81% 6.30% 6.51% 6.54% Investment fees and expenses yield (0.12%) (0.15%) (0.13%) (0.17%) (0.12%) ---------------------------------------------------------------------------- NET INVESTMENT INCOME YIELD 6.48% 6.66% 6.17% 6.34% 6.42% ============================================================================ Gross investment income $ 3,339 $ 3,584 $ 4,199 $ 4,283 $ 4,359 Investment fees and expenses (60) (76) (87) (116) (81) ---------------------------------------------------------------------------- NET INVESTMENT INCOME $ 3,279 $ 3,508 $ 4,112 $ 4,167 $ 4,278 ============================================================================ Ending Carrying Value $ 244,889 $ 259,525 $ 309,392 $ 305,727 $ 317,517 ============================================================================ Gross investment gains $ 373 $ 2,133 $ 342 $ 492 $ 237 Gross investment losses (322) (231) (304) (721) (587) Writedowns (51) (42) (14) (9) (22) ---------------------------------------------------------------------------- Subtotal 0 1,860 24 (238) (372) Derivative & other instruments not qualifying for hedge accounting (21) 365 (47) 4 (252) ---------------------------------------------------------------------------- NET INVESTMENT GAINS (LOSSES) (21) 2,225 (23) (234) (624) Minority interest - net investment gains (losses) (9) (2) (1) 3 (2) Net investment gains (losses) tax benefit (provision) 9 (784) 9 85 220 ---------------------------------------------------------------------------- NET INVESTMENT GAINS (LOSSES), NET OF INCOME TAXES $ (21) $ 1,439 $ (15) $ (146) $ (406) ============================================================================
(1) Certain amounts in prior periods presented throughout the QFS have been reclassified to conform with current period presentation. (2) The fixed maturities yield is annualized and is based on quarterly average amortized cost. (3) Fixed maturities includes $134 million, $197 million, $805 million, $825 million and $883 million in ending carrying value and $1 million, $2 million, $14 million, ($3) million and $19 million of investment income (loss) related to trading securities at or for the three months ended March 31, 2005, June 30, 2005, September 30, 2005, December 31, 2005 and March 31, 2006, respectively. (4) Yields are annualized and based on quarterly average carrying values. (5) Included in income from real estate and real estate joint ventures is $39 million, $15 million, ($2) million, $6 million and $0 million related to discontinued operations for the three months ended March 31, 2005, June 30, 2005, September 30, 2005, December 31, 2005 and March 31, 2006, respectively. (6) Included in investment gains (losses) from real estate and real estate joint ventures is $18 million, $1,905 million, $46 million, $156 million and ($5) million related to discontinued operations for the three months ended March 31, 2005, June 30, 2005, September 30, 2005, December 31, 2005 and March 31, 2006, 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 $24 million, $13 million, $26 million, $36 million and $39 million for the three months ended March 31, 2005, June 30, 2005, September 30, 2005, December 31, 2005 and March 31, 2006, respectively. These amounts are excluded from net investment gains (losses). Additionally, excluded from net investment gains (losses) is ($7) million, ($6) million and ($4) million for the three months ended September 30, 2005, December 31, 2005 and March 31, 2006, respectively, related to derivative revaluation losses on derivatives used to hedge interest rate and currency risk on policyholder account balances that do not qualify for hedge accounting. 36 (METLIFE LOGO) METLIFE, INC. INVESTMENT RESULTS BY ASSET CATEGORY AND ANNUALIZED YIELDS (1) UNAUDITED (DOLLARS IN MILLIONS)
At or For the Year-to-Date Ended ---------------------------------------------------------------------------- March 31, June 30, September 30, December 31, March 31, 2005 2005 2005 2005 2006 - ------------------------------------------------------------------------------------------------------------------------------------ FIXED MATURITIES Yield (2) 6.34% 6.37% 5.95% 6.02% 6.15% Income (3) $ 2,279 $ 4,590 $ 7,456 $ 10,424 $ 3,002 Investment gains (losses) $ (114) $ (203) $ (301) $ (868) $ (412) Ending Carrying Value (3) $ 182,267 $ 184,830 $ 232,041 $ 230,875 $ 240,711 MORTGAGE AND CONSUMER LOANS Yield (4) 6.76% 6.79% 6.79% 6.81% 6.68% Income $ 517 $ 1,052 $ 1,645 $ 2,236 $ 585 Investment gains (losses) $ (11) $ (19) $ (6) $ 17 $ 4 Ending Carrying Value $ 31,977 $ 33,586 $ 36,094 $ 37,190 $ 37,351 REAL ESTATE AND REAL ESTATE JOINT VENTURES Yield (4) 11.02% 11.82% 11.31% 10.59% 12.50% Income (5) $ 119 $ 249 $ 367 $ 467 $ 146 Investment gains (losses) (6) $ 18 $ 1,922 $ 1,973 $ 2,139 $ 17 Ending Carrying Value $ 4,377 $ 3,998 $ 4,705 $ 4,665 $ 4,700 POLICY LOANS Yield (4) 6.17% 6.18% 6.08% 6.00% 5.84% Income $ 138 $ 277 $ 429 $ 572 $ 146 Ending Carrying Value $ 8,953 $ 8,975 $ 9,841 $ 9,981 $ 9,987 EQUITY SECURITIES AND OTHER LIMITED PARTNERSHIP INTERESTS Yield (4) 9.90% 15.85% 12.47% 12.44% 12.53% Income $ 118 $ 394 $ 556 $ 774 $ 229 Investment gains (losses) $ 95 $ 107 $ 127 $ 159 $ 27 Ending Carrying Value $ 5,514 $ 5,914 $ 7,403 $ 7,614 $ 7,870 CASH AND SHORT-TERM INVESTMENTS Yield (4) 4.77% 3.59% 3.52% 3.66% 4.63% Income $ 64 $ 155 $ 277 $ 362 $ 80 Investment gains (losses) $ (1) $ (1) $ (1) $ (2) $ (1) Ending Carrying Value $ 6,470 $ 15,770 $ 11,431 $ 7,324 $ 8,512 OTHER INVESTED ASSETS Yield (4) 9.09% 8.22% 8.67% 8.96% 8.92% Income (7) $ 104 $ 206 $ 392 $ 570 $ 171 Investment gains (losses) $ (8) $ 398 $ 389 $ 502 $ (259) Ending Carrying Value $ 5,331 $ 6,452 $ 7,877 $ 8,078 $ 8,386 TOTAL INVESTMENTS Gross investment income yield 6.60% 6.69% 6.29% 6.35% 6.54% Investment fees and expenses yield (0.12%) (0.13%) (0.13%) (0.14%) (0.12%) ---------------------------------------------------------------------------- NET INVESTMENT INCOME YIELD 6.48% 6.56% 6.16% 6.21% 6.42% ============================================================================ Gross investment income $ 3,339 $ 6,923 $ 11,122 $ 15,405 $ 4,359 Investment fees and expenses (60) (136) (223) (339) (81) ---------------------------------------------------------------------------- NET INVESTMENT INCOME $ 3,279 $ 6,787 $ 10,899 $ 15,066 $ 4,278 ============================================================================ Ending Carrying Value $ 244,889 $ 259,525 $ 309,392 $ 305,727 $ 317,517 ============================================================================ Gross investment gains $ 373 $ 2,506 $ 2,848 $ 3,340 $ 237 Gross investment losses (322) (553) (857) (1,578) (587) Writedowns (51) (93) (107) (116) (22) ---------------------------------------------------------------------------- Subtotal 0 1,860 1,884 1,646 (372) Derivative & other instruments not qualifying for hedge accounting (21) 344 297 301 (252) ---------------------------------------------------------------------------- NET INVESTMENT GAINS (LOSSES) (21) 2,204 2,181 1,947 (624) Minority interest - net investment gains (losses) (9) (11) (12) (9) (2) Net investment gains (losses) tax benefit (provision) 9 (775) (766) (681) 220 ---------------------------------------------------------------------------- NET INVESTMENT GAINS (LOSSES), NET OF INCOME TAXES $ (21) $ 1,418 $ 1,403 $ 1,257 $ (406) ----------------------------------------------------------------------------
(1) Certain amounts in prior periods presented throughout the QFS have been reclassified to conform with current period presentation. (2) The fixed maturities yield is annualized and is based on quarterly average amortized cost. (3) Fixed maturities includes $134 million, $197 million, $805 million, $825 million and $883 million in ending carrying value and $1 million, $3 million, $17 million, $14 million and $19 million of investment income related to trading securities at or for year-to-date ended March 31, 2005, June 30, 2005, September 30, 2005, December 31, 2005 and March 31, 2006, respectively. (4) Yields are annualized and based on quarterly average carrying values. (5) Included in income from real estate and real estate joint ventures is $39 million, $54 million, $52 million, $58 million and $0 million related to discontinued operations for year-to-date March 31, 2005, June 30, 2005, September 30, 2005, December 31, 2005 and March 31, 2006, respectively. (6) Included in investment gains (losses) from real estate and real estate joint ventures is $18 million, $1,923 million, $1,969 million, $2,125 million, and ($5) million related to discontinued operations for year-to-date March 31, 2005, June 30, 2005, September 30, 2005, December 31, 2005 and March 31, 2006, 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 $24 million, $37 million, $63 million, $99 million and $39 million for the year-to-date March 31, 2005, June 30, 2005, September 30, 2005, December 31, 2005 and March 31, 2006, respectively. These amounts are excluded from net investment gains (losses). Additionally, excluded from net investment gains (losses) is ($7) million, ($13) million and ($4) for the year-to-date September 30, 2005, December 31, 2005 and March 31, 2006, respectively, related to derivative revaluation losses on derivatives used to hedge interest rate and currency risk on policyholder account balances that do not qualify for hedge accounting. 37 (METLIFE LOGO) METLIFE, INC. GROSS UNREALIZED GAINS AND LOSSES AGING SCHEDULE FIXED MATURITIES (1) UNAUDITED (DOLLARS IN MILLIONS)
At March 31, 2005 At June 30, 2005 At September 30, 2005 ----------------------------------------------------------------------------- Unaudited (Dollars in millions) Amount % of Total Amount % of Total Amount % of Total - --------------------------------------------------------------------------------------------------------------------- Less than 20% $ 1,185 99.1% $ 416 95.4% $ 1,758 95.9% 20% or more for less than six months 5 0.4% 13 3.0% 69 3.8% 20% or more for six months or greater 6 0.5% 7 1.6% 6 0.3% ----------------------------------------------------------------------------- Total Gross Unrealized Losses $ 1,196 100.0% $ 436 100.0% $ 1,833 100.0% ----------------------------------------------------------------------------- Total Gross Unrealized Gains $ 8,485 $ 11,250 $ 8,814 ========== ========== ========== At December 31, 2005 At March 31, 2006 -------------------------------------------------- Unaudited (Dollars in millions) Amount % of Total Amount % of Total - -------------------------------------------------------------------------------------------- Less than 20% $ 2,159 97.9% $ 4,379 98.7% 20% or more for less than six months 39 1.8% 47 1.1% 20% or more for six months or greater 7 0.3% 9 0.2% -------------------------------------------------- Total Gross Unrealized Losses $ 2,205 100.0% $ 4,435 100.0% -------------------------------------------------- Total Gross Unrealized Gains $ 8,329 $ 6,123 ========== ==========
GROSS UNREALIZED GAINS AND LOSSES AGING SCHEDULE EQUITY SECURITIES (1)
At March 31, 2005 At June 30, 2005 At September 30, 2005 ----------------------------------------------------------------------------------- Unaudited (Dollars in millions) Amount % of Total Amount % of Total Amount % of Total - --------------------------------------------------------------------------------------------------------------------------- Less than 20% $ 44 78.6% $ 25 62.5% $ 29 70.7% 20% or more for less than six months 12 21.4% 15 37.5% 12 29.3% 20% or more for six months or greater 0 0.0% 0 0.0% 0 0.0% ----------------------------------------------------------------------------------- Total Gross Unrealized Losses $ 56 100.0% $ 40 100.0% $ 41 100.0% ----------------------------------------------------------------------------------- Total Gross Unrealized Gains $ 169 $ 206 $ 256 =========== =========== =========== At December 31, 2005 At March 31, 2006 ------------------------------------------------------ Unaudited (Dollars in millions) Amount % of Total Amount % of Total - -------------------------------------------------------------------------------------------------- Less than 20% $ 29 70.7% $ 30 75.0% 20% or more for less than six months 12 29.3% 10 25.0% 20% or more for six months or greater 0 0.0% 0 0.0% ------------------------------------------------------ Total Gross Unrealized Losses $ 41 100.0% $ 40 100.0% ------------------------------------------------------ Total Gross Unrealized Gains $ 295 $ 384 =========== ===========
(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 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. 38 (METLIFE LOGO) METLIFE, INC. SUMMARY OF FIXED MATURITIES AVAILABLE FOR SALE BY SECTOR AND QUALITY DISTRIBUTION (1)
At March 31, 2005 At June 30, 2005 At September 30, 2005 ----------------------------------------------------------------------------------- Unaudited (Dollars in millions) Amount % of Total Amount % of Total Amount % of Total - -------------------------------------------------------------------------------------------------------------------------------- U.S. corporate securities $ 60,417 33.2% $ 61,614 33.4% $ 78,472 33.9% Residential mortgage-backed securities 34,650 19.0% 34,795 18.8% 43,200 18.8% Foreign corporate securities 27,395 15.0% 28,184 15.3% 34,837 15.1% US Treasury/agency securities 21,770 12.0% 21,051 11.4% 26,468 11.4% Commercial mortgage-backed securities 13,372 7.3% 13,836 7.5% 17,389 7.5% Asset-backed securities 10,826 5.9% 10,373 5.6% 13,868 6.0% Foreign government securities 8,917 4.9% 10,129 5.5% 11,049 4.8% State and political subdivision securities 3,934 2.2% 3,780 2.0% 4,722 2.0% Other fixed maturity securities 703 0.4% 716 0.4% 1,038 0.4% ----------------------------------------------------------------------------------- Total bonds 181,984 99.9% 184,478 99.9% 231,043 99.9% Redeemable preferred stock 149 0.1% 155 0.1% 193 0.1% ----------------------------------------------------------------------------------- Total fixed maturities $ 182,133 100.0% $ 184,633 100.0% $ 231,236 100.0% =================================================================================== NAIC RATING AGENCY RATING(1) EQUIVALENT DESIGNATION 1 Aaa/Aa/A $ 125,528 68.9% $ 127,540 69.1% $ 163,963 70.9% 2 Baa 44,054 24.2% 44,202 23.9% 51,438 22.2% 3 Ba 7,392 4.1% 7,476 4.0% 9,665 4.2% 4 B 4,634 2.5% 4,895 2.7% 5,532 2.4% 5 Caa and lower 325 0.2% 335 0.2% 317 0.1% 6 In or near default 51 0.0% 30 0.0% 128 0.1% ----------------------------------------------------------------------------------- Total bonds 181,984 99.9% 184,478 99.9% 231,043 99.9% Redeemable preferred stock 149 0.1% 155 0.1% 193 0.1% ----------------------------------------------------------------------------------- Total Fixed Maturities $ 182,133 100.0% $ 184,633 100.0% $ 231,236 100.0% =================================================================================== At December 31, 2005 At March 31, 2006 ------------------------------------------------------ Unaudited (Dollars in millions) Amount % of Total Amount % of Total - ---------------------------------------------------------------------------------------------------- U.S. corporate securities $ 74,318 32.3% $ 73,897 30.8% Residential mortgage-backed securities 47,246 20.5% 52,016 21.7% Foreign corporate securities 34,981 15.2% 35,028 14.6% US Treasury/agency securities 26,958 11.7% 27,724 11.6% Commercial mortgage-backed securities 17,698 7.7% 20,029 8.3% Asset-backed securities 11,573 5.0% 13,630 5.7% Foreign government securities 11,446 5.0% 11,539 4.8% State and political subdivision securities 4,750 2.1% 4,839 2.0% Other fixed maturity securities 888 0.4% 934 0.4% ------------------------------------------------------ Total bonds 229,858 99.9% 239,636 99.9% Redeemable preferred stock 192 0.1% 192 0.1% ------------------------------------------------------ Total fixed maturities $ 230,050 100.0% $ 239,828 100.0% ====================================================== NAIC RATING AGENCY RATING(1) EQUIVALENT DESIGNATION 1 Aaa/Aa/A $ 165,577 72.0% $ 176,017 73.4% 2 Baa 49,124 21.3% 47,852 20.0% 3 Ba 9,142 4.0% 9,456 3.9% 4 B 5,710 2.5% 5,997 2.5% 5 Caa and lower 290 0.1% 291 0.1% 6 In or near default 15 0.0% 23 0.0% ------------------------------------------------------ Total bonds 229,858 99.9% 239,636 99.9% Redeemable preferred stock 192 0.1% 192 0.1% ------------------------------------------------------ Total Fixed Maturities $ 230,050 100.0% $ 239,828 100.0% ======================================================
(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, 2005 At June 30, 2005 At September 30, 2005 ----------------------------------------------------------------------------------- Unaudited (Dollars in millions) Amount % of Total Amount % of Total Amount % of Total - ------------------------------------------------------------------------------------------------------------------------ Pacific $ 5,888 23.9% $ 6,224 23.8% $ 6,664 24.5% South Atlantic 5,613 22.8% 6,005 23.0% 6,168 22.6% Middle Atlantic 3,898 15.8% 4,007 15.4% 4,273 15.7% East North Central 2,565 10.4% 2,868 11.0% 2,894 10.6% West South Central 2,139 8.7% 2,140 8.2% 2,131 7.8% New England 1,409 5.7% 1,438 5.5% 1,536 5.6% International 1,343 5.5% 1,395 5.3% 1,455 5.3% Mountain 780 3.2% 868 3.3% 938 3.5% West North Central 631 2.5% 698 2.7% 710 2.6% East South Central 267 1.1% 360 1.4% 384 1.4% Other 98 0.4% 97 0.4% 97 0.4% ----------------------------------------------------------------------------------- Total $ 24,631 100.0% $ 26,100 100.0% $ 27,250 100.0% =================================================================================== Office $ 10,798 43.8% $ 11,776 45.0% $ 12,873 47.2% Retail 5,754 23.4% 6,073 23.3% 6,078 22.3% Apartments 3,330 13.5% 3,416 13.1% 3,435 12.7% Industrial 2,749 11.2% 2,813 10.8% 2,701 9.9% Hotel 1,212 4.9% 1,295 5.0% 1,419 5.2% Other 788 3.2% 727 2.8% 744 2.7% ----------------------------------------------------------------------------------- Total $ 24,631 100.0% $ 26,100 100.0% $ 27,250 100.0% =================================================================================== At December 31, 2005 At March 31, 2006 ------------------------------------------------------ Unaudited (Dollars in millions) Amount % of Total Amount % of Total ------------------------------------------------------ Pacific $ 6,818 24.3% $ 7,038 24.9% South Atlantic 6,093 21.8% 6,343 22.4% Middle Atlantic 4,689 16.7% 4,177 14.8% East North Central 3,078 11.0% 3,161 11.2% West South Central 2,069 7.4% 2,288 8.1% New England 1,295 4.6% 1,261 4.5% International 1,817 6.5% 1,896 6.7% Mountain 861 3.1% 821 2.9% West North Central 825 2.9% 817 2.9% East South Central 381 1.4% 380 1.3% Other 96 0.3% 96 0.3% ------------------------------------------------------ Total $ 28,022 100.0% $ 28,278 100.0% ====================================================== Office $ 13,453 48.0% $ 13,636 48.2% Retail 6,398 22.8% 6,270 22.2% Apartments 3,102 11.1% 3,283 11.6% Industrial 2,656 9.5% 2,763 9.8% Hotel 1,355 4.8% 1,490 5.3% Other 1,058 3.8% 836 2.9% ------------------------------------------------------ Total $ 28,022 100.0% $ 28,278 100.0% ======================================================
(1) Certain amounts in prior periods presented throughout the QFS have been reclassified to conform with current period presentation. 39 (METLIFE LOGO) METLIFE, INC. SUMMARY OF REAL ESTATE
March 31, June 30, September 30, December 31, March 31, Unaudited (Dollars in millions) 2005 2005 2005 2005 2006 - ---------------------------------------------------------------------------------------------------------------------------- Wholly owned $3,767 $3,277 $3,919 $3,735 $3,902 Joint ventures 606 718 783 926 794 -------------------------------------------------------------------------- Subtotal 4,373 3,995 4,702 4,661 4,696 Foreclosed 4 3 3 4 4 -------------------------------------------------------------------------- Total Real Estate (1) $4,377 $3,998 $4,705 $4,665 $4,700 ==========================================================================
SUMMARY OF MORTGAGES AND CONSUMER LOANS
March 31, June 30, September 30, December 31, March 31, Unaudited (Dollars in millions) 2005 2005 2005 2005 2006 - ----------------------------------------------------------------------------------------------------------------------------- COMMERCIAL MORTGAGES $24,631 $26,100 $27,250 $28,022 $28,278 AGRICULTURAL MORTGAGES 5,929 6,040 7,474 7,700 7,689 CONSUMER LOANS 1,417 1,446 1,370 1,468 1,384 -------------------------------------------------------------------------- TOTAL $31,977 $33,586 $36,094 $37,190 $37,351 ==========================================================================
(1) Includes real estate held-for-sale and held-for-investment. 40 (METLIFE LOGO) COMPANY RATINGS AS OF APRIL 26, 2006
Moody's Investors Standard & A.M. Best Fitch Service Poor's Company Ratings ----------------- --------------- ----------- --------- FINANCIAL STRENGTH RATINGS - -------------------------- 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 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 Life Insurance Company Aa2 * AA * A+ AA Metropolitan Life Insurance Company (Short-term rating) P-1 A-1+ NR NR Metropolitan Lloyds Insurance Company of Texas NR NR A NR Metropolitan Property and Casualty Insurance Company Aa3 * NR A NR Metropolitan Tower Life Insurance Company Aa3 * NR A+ NR 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 The Travelers Insurance Company Aa2 * AA * A+ AA The Travelers Insurance Company (Short-term rating) P-1 NR NR NR The Travelers Life and Annuity Company Aa2 * AA * A+ AA RGA Reinsurance Company A1 AA- * A+ * AA- CREDIT RATINGS - -------------- GenAmerica Capital I Preferred Stock A3 * BBB+ * NR A- General American Life Insurance Company Surplus Notes A1 * A+ * a+ * NR MetLife, Inc. Senior Unsecured Debt A2 * A * a * A Commercial Paper P-1 * A-1 AMB-1 * F1 Subordinated Debt A3 *(P) NR a- * NR Preferred Stock Baa1 * BBB+ * bbb+ * A- Non-Cumulative Perpetual Preferred Stock Baa1 * BBB * bbb+ * A- MetLife Capital Trust II Trust Preferred Stock A3 * BBB+ * a- * A- MetLife Capital Trust III Trust Preferred Stock A3 * BBB+ * a- * A- MetLife Funding, Inc. Commercial Paper P-1 A-1+ AMB-1+ * F1+ Metropolitan Life Global Funding I Senior Secured Debt Aa2 * AA aa * NR Metropolitan Life Insurance Company Surplus Notes A1 * A+ * a+ * A+ Reinsurance Group of America, Incorporated Senior Unsecured Debt Baa1 A- * a- * A- Junior Subordinated Debt Baa3 BBB- * bbb * BBB+ RGA Capital Trust I Preferred Stock Baa2 BBB * bbb+ * BBB+ RGA Capital Trust II Preferred Stock Baa2 BBB * bbb+ * BBB+
* Moody's, Standard & Poor's and A.M. Best's outlook for these ratings is negative. (P) Preliminary NR Not Rated 41 -----END PRIVACY-ENHANCED MESSAGE-----