-----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, GaPcxxOW+p1HpZiH5gIh3nnqk3rmOD8Bp+G7DLfOJVSvfbIGWbkDPYerXs7g9qw8 ENG89g8eaoOSZfmmYPZUtQ== 0000950123-06-013195.txt : 20061030 0000950123-06-013195.hdr.sgml : 20061030 20061030164405 ACCESSION NUMBER: 0000950123-06-013195 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20061024 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Other Events ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20061030 DATE AS OF CHANGE: 20061030 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: 061172547 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 y26307e8vk.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) October 24, 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 October 30, 2006, MetLife, Inc., a Delaware Corporation, issued (i) a press release announcing its results for the quarter ended September 30, 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 September 30, 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 8.01. Other Events. On October 24, 2006, MetLife, Inc. issued a press release announcing that its Board of Directors had declared an annual dividend for 2006 of $0.59 per common share. A copy of the press release is attached hereto as Exhibit 99.3 and is incorporated herein by reference. Item 9.01. Financial Statements and Exhibits. (a) Not applicable. (b) Not applicable. (c) Not applicable. (d) Exhibits 99.1 Press Release of MetLife, Inc., dated October 30, 2006, announcing third quarter 2006 results. 99.2 Quarterly Financial Supplement for the quarter ended September 30, 2006. 99.3 Press Release of MetLife, Inc., dated October 24, 2006, announcing the declaration of the annual dividend on its common stock. 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: October 30, 2006 EXHIBIT INDEX ------------- Exhibit Number Exhibit - ------- ------- 99.1 Press Release of MetLife, Inc. dated, October 30, 2006, announcing third quarter 2006 results. 99.2 Quarterly Financial Supplement for the quarter ended September 30, 2006. 99.3 Press Release of MetLife, Inc., dated October 24, 2006, announcing the declaration of the annual dividend on its common stock. EX-99.1 2 y26307exv99w1.txt PRESS RELEASE Contacts: For Media: John Calagna (212) 578-6252 For Investors: Tracey Dedrick (212) 578-5140 METLIFE ANNOUNCES THIRD QUARTER 2006 RESULTS - REPORTS NET INCOME AVAILABLE TO COMMON SHAREHOLDERS OF $1.29 PER DILUTED COMMON SHARE, A 33% INCREASE - - REPORTS OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS OF $1.24 PER DILUTED COMMON SHARE, A 23% INCREASE - NEW YORK, October 30, 2006 - MetLife, Inc. (NYSE: MET) today reported third quarter 2006 net income available to common shareholders of $999 million, or $1.29 per diluted common share, compared with $742 million, or $0.97 per diluted common share, for the third quarter of 2005.
For the three months ended September 30, -------------------------- 2006 2005 ------ ------ (in millions, except per diluted common share data) Net income available to common shareholders $ 999 $ 742 Net income available to common shareholders per diluted common share $ 1.29 $ 0.97 Operating earnings available to common shareholders(1) $ 958 $ 780 Operating earnings available to common shareholders per diluted common share(1) $ 1.24 $ 1.01 Book value per diluted common share $38.22 $34.75 Book value per diluted common share, excluding accumulated other comprehensive income(1) $35.78 $32.32
(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 HIGHLIGHTS - - Earned record total premiums, fees and other revenues of $8.1 billion - - Reached $516.2 billion in total assets - - Announced the sale of Peter Cooper Village and Stuyvesant Town Operating earnings available to common shareholders for the third quarter of 2006 were $958 million, or $1.24 per diluted common share, compared with $780 million, or $1.01 per diluted common share, for the prior year period. "MetLife continued to benefit from our diverse businesses in the third quarter with strong underlying fundamentals in all segments and record quarterly results in Auto & Home," said C. Robert Henrikson, chairman of the board, president and chief executive officer of MetLife, Inc. "We are pleased to continue providing value to our shareholders with the recently announced 13% increase in the annual common stock dividend. In addition, we plan to resume our share repurchase program and remain focused on continuing our strong momentum to achieve our objectives for 2006." THIRD 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 REMAIN STRONG Institutional Business operating earnings available to common shareholders in the third quarter of 2006 remained strong at $390 million, compared with $386 million in the prior year period. During the quarter, solid growth in non-medical health & other earnings was partially offset by the impact of lower interest spreads in the retirement & savings business. Non-medical health & other earnings increased 29% due to growth in the business and favorable underwriting results across the major product lines. Non-medical health & other premiums, fees and other revenues were up 9% over the prior year period, reflecting growth across all product lines, especially in dental and disability. Retirement & savings earnings, while benefiting from certain lower expenses, were down 7% compared with the third quarter of 2005, primarily due to the impact of lower interest spreads, driven by the inverted yield curve, and lower variable net investment income. During the quarter, the general and separate account assets for retirement & savings reached a combined record of $114.6 billion. Group life earnings of $101 million were relatively flat compared with the prior year period. Underlying growth in the business, lower expenses and favorable underwriting results were offset by the impact of lower interest spreads. 2 INDIVIDUAL BUSINESS EARNINGS UP 11% Individual Business operating earnings available to common shareholders were $367 million in the third quarter of 2006, compared with $330 million in the prior year period. This increase was due, in part, to growth in the business and favorable underwriting results, partially offset by lower variable net investment income. Total life earnings increased 11% over the prior year period as the business benefited from good mortality and a $12 million benefit from a specific reserve reduction. A strong increase in variable & universal life earnings was partially offset by a decline in traditional life results, which was primarily driven by lower variable net investment income and higher expenses. Total life first year premiums and deposits, as expected, were down compared to the prior year period due to a decline in sales in the independent channel. Annuity earnings increased 11% over the prior year period as results benefited from growth in the business. While variable net investment income decreased from unusually high levels in the prior year period, annuity spreads remained strong. During the quarter, total annuity deposits were $3.5 billion and fees for separate account investment-type products within the annuity business increased 15% compared with the prior year period. AUTO & HOME EARNINGS REACH NEW RECORD Auto & Home operating earnings available to common shareholders were a record $107 million in the third quarter of 2006, compared with an operating loss of $26 million in the prior year period. Auto & Home's strong performance in the quarter was due in part to significantly lower catastrophes compared with the prior year period. In addition, the non-catastrophe combined ratio improved to 81.2%, reflecting $27 million, net of income taxes, in favorable claim development related to prior accident years and good claim frequencies in both the auto and homeowners businesses. INTERNATIONAL EARNINGS UP 9% International operating earnings available to common shareholders were $72 million in the third quarter of 2006, compared with $66 million in the prior year period. Earnings in the segment benefited from solid performance in Asia Pacific and Latin America. In Japan, MSI MetLife continued its strong performance with sales of $1.5 billion, up 12% over the prior year period on a yen basis. INVESTMENTS MetLife's investment portfolio continued to deliver strong results as the net investment income yield increased to 6.32% in the third quarter of 2006, compared with 6.17% in the prior year period. Variable net investment income, while on plan, was lower than the prior year period. On October 17, 2006, MetLife announced the sale of its Peter Cooper Village and Stuyvesant Town properties for $5.4 billion. The sale is expected to result in a gain of approximately $3 billion, net of income taxes. It is anticipated that the sale will close in the fourth quarter of 2006, subject to customary closing conditions. 3 CORPORATE EVENTS Share Repurchase - ---------------- MetLife announced today that it intends to resume its share repurchase program in the fourth quarter of 2006. The company currently has $716 million remaining on its existing share repurchase authorization. Earnings Conference Call - ------------------------ MetLife will hold its third quarter 2006 earnings conference call and audio Webcast on Tuesday, October 31, 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. To listen to the conference call over the Internet, visit www.metlife.com (through a link on the Investor Relations page). Those who want to listen to the call on the telephone or via the Internet should dial in or go to the Web site at least fifteen minutes prior to the call to register, and/or download and install any necessary audio software. The conference call will be available for replay via telephone and the Internet beginning at 11:30 a.m. (ET) on Tuesday, October 31, 2006, until Tuesday, November 7, 2006, at 11:59 p.m. (ET). To listen to a replay of the conference call over the telephone, dial (320) 365-3844. The access code for the replay is 843183. 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 September 30, --------------------------------- 2006 2005 --------------- --------------- (in millions, except per diluted common share data) Net income available to common shareholders $ 999 $ 1.29 $ 742 $ 0.97 Net investment (gains) losses, net of income taxes(1) (162) (0.21) 15 0.02 Adjustments related to net investment (gains) losses, net of income taxes(2) 121 0.16 30 0.03 Discontinued operations, net of income taxes(3) -- -- (7) (0.01) ------ ------ ------ ------ Operating earnings available to common shareholders $ 958 $ 1.24 $ 780 $ 1.01 ====== ====== ====== ====== Book value per diluted common share $38.22 $34.75 Accumulated other comprehensive (income) loss per diluted common share (2.44) (2.43) ------ ------ Book value per diluted common share, excluding accumulated other comprehensive income/loss $35.78 $32.32 ====== ======
(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 $(63) million and $(30) million for the three months ended September 30, 2006 and 2005, respectively, and excludes (gains) losses of $(61) million and $(17) million for the three months ended September 30, 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 from discontinued operations related to real estate and real estate joint ventures. 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 5 Company; (vi) catastrophe losses; (vii) adverse results or other consequences from litigation, arbitration or regulatory investigations; (viii) regulatory, accounting or tax changes that may affect the cost of, or demand for, the company's products or services; (ix) downgrades in the company's and its affiliates' claims paying ability, financial strength or credit ratings; (x) changes in rating agency policies or practices; (xi) discrepancies between actual claims experience and assumptions used in setting prices for the company's products and establishing the liabilities for the company's obligations for future policy benefits and claims; (xii) discrepancies between actual experience and assumptions used in establishing liabilities related to other contingencies or obligations; (xiii) the effects of business disruption or economic contraction due to terrorism or other hostilities; (xiv) the company's ability to identify and consummate on successful terms any future acquisitions, and to successfully integrate acquired businesses with minimal disruption; and (xv) other risks and uncertainties described from time to time in the company's filings with the Securities and Exchange Commission, including its S-1 and S-3 registration statements. The company specifically disclaims any obligation to update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise. MetLife, Inc. is a leading provider of insurance and financial services with operations throughout the United States and the Latin America, Europe and Asia Pacific regions. Through its domestic and international subsidiaries and affiliates, MetLife, Inc. reaches more than 70 million customers around the world and MetLife is the largest life insurer in the United States (based on life insurance in-force). The MetLife companies offer life insurance, annuities, auto and home insurance, retail banking and other financial services to individuals, as well as group insurance, reinsurance and retirement & savings products and services to corporations and other institutions. 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 Nine months ended September 30, September 30, ------------------ ----------------- 2006 2005 2006 2005 ------- ------- ------- ------- Premiums $ 6,577 $ 6,514 $19,433 $18,514 Universal life and investment-type product policy fees 1,188 1,112 3,548 2,716 Net investment income 4,193 4,064 12,594 10,713 Other revenues 339 348 1,002 948 Net investment gains (losses) 254 (50) (1,074) 268 ------- ------- ------- ------- Total revenues 12,551 11,988 35,503 33,159 ------- ------- ------- ------- Policyholder benefits and claims 6,712 6,837 19,448 19,018 Interest credited to policyholder account balances 1,352 1,149 3,839 2,764 Policyholder dividends 422 426 1,268 1,261 Other expenses 2,751 2,615 7,794 6,591 ------- ------- ------- ------- Total expenses 11,237 11,027 32,349 29,634 ------- ------- ------- ------- Income from continuing operations before provision for income taxes 1,314 961 3,154 3,525 Provision for income taxes 357 238 855 1,025 ------- ------- ------- ------- Income from continuing operations 957 723 2,299 2,500 Income from discontinued operations, net of income taxes 76 50 131 1,505 ------- ------- ------- ------- Net income 1,033 773 2,430 4,005 Preferred stock dividends 34 31 100 31 ------- ------- ------- ------- Net income available to common shareholders $ 999 $ 742 $ 2,330 $ 3,974 ======= ======= ======= ======= OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS RECONCILIATION - ------------------------------------------------------------------ Net income available to common shareholders $ 999 $ 742 $ 2,330 $ 3,974 Net investment gains (losses) 254 (23) (1,187) 2,181 Minority interest - net investment gains (losses) -- (1) 2 (12) Net investment gains (losses) tax provision (92) 9 417 (766) ------- ------- ------- ------- Net investment gains (losses), net of income taxes (1)(2) 162 (15) (768) 1,403 Adjustments related to universal life and investment-type product policy fees 3 -- (9) -- Adjustments related to policyholder benefits and dividends (204) (55) (12) (71) Adjustments related to other expenses 14 7 182 (17) Adjustments related to tax benefit (provision) 66 18 (58) 31 ------- ------- ------- ------- Adjustments related to net investment gains (losses), net of income taxes (3) (121) (30) 103 (57) Discontinued operations, net of income taxes (4) -- 7 30 156 ------- ------- ------- ------- Operating earnings available to common shareholders $ 958 $ 780 $ 2,965 $ 2,472 ======= ======= ======= =======
(1) Net investment gains (losses), net of income taxes, from real estate and real estate joint ventures includes discontinued operations of $63 million and $30 million for the three months ended September 30, 2006 and 2005, respectively, and $58 million and $1,269 million for the nine months ended September 30, 2006 and 2005, respectively. (2) Net investment gains (losses), net of income taxes, excludes scheduled periodic settlement payments on derivative instruments not qualifying for hedge accounting treatment of $61 million and $17 million for the three months ended September 30, 2006 and 2005, respectively, and $130 million and $41 million for the nine months ended September 30, 2006 and 2005, respectively. (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) from discontinued operations related to real estate and real estate joint ventures. MetLife, Inc. Financial Highlights Unaudited (In millions, except per common share data or unless otherwise noted)
At or for the At or for three months the nine months ended September 30, ended September 30, ------------------- ------------------- 2006 2005 2006 2005 ------ ------ ------- ------ Other Financial Data: Net income available to common shareholders $ 999 $ 742 $ 2,330 $3,974 Operating earnings available to common shareholders $ 958 $ 780 $ 2,965 $2,472 Total assets (billions) $516.2 $482.9 $ 516.2 $482.9 Individual Business Sales Data: Total first year life premiums and deposits $ 244 $ 357 $ 841 $ 777 Variable and Universal life first year premiums and deposits (including COLI/BOLI) $ 198 $ 305 $ 695 $ 626 Total annuity deposits $3,531 $3,624 $11,603 $8,660 Earnings Per Common Share Calculation: Weighted average common shares outstanding - diluted 773.7 768.7 769.9 753.1 Operating earnings available to common shareholders per common share - diluted $ 1.24 $ 1.01 $ 3.85 $ 3.28 Net income available to common shareholders per common share - diluted $ 1.29 $ 0.97 $ 3.03 $ 5.28
MetLife, Inc. Balance Sheet Data September 30, 2006 (Unaudited) and December 31, 2005 (Audited) (In millions)
At September At December 30, 2006 31, 2005 ------------ ----------- Balance Sheet Data: General account assets $378,912 $353,776 Separate account assets 137,274 127,869 -------- -------- Total assets $516,186 $481,645 ======== ======== Policyholder liabilities (including amounts in closed block) $268,693 $262,371 Short-term debt 1,706 1,414 Long-term debt 10,711 9,888 Junior subordinated debt securities underlying common equity units 2,134 2,134 Shares subject to mandatory redemption 278 278 Other liabilities 63,780 48,590 Separate account liabilities 137,274 127,869 -------- -------- Total liabilities 484,576 452,544 -------- -------- Preferred stock, at par value 1 1 Common stock, at par value 8 8 Additional paid-in capital 17,397 17,274 Retained earnings 13,195 10,865 Treasury stock (878) (959) Accumulated other comprehensive income (loss) 1,887 1,912 -------- -------- Total stockholders' equity 31,610 29,101 -------- -------- Total liabilities and stockholders' equity $516,186 $481,645 ======== ========
MetLife, Inc. Reconciliations of Net Income Available to Common Shareholders to Operating Earnings Available to Common Shareholders Unaudited (In millions)
Three months Nine months ended ended September 30, September 30, ------------- --------------- 2006 2005 2006 2005 ---- ---- ------ ------ Total Institutional Operations Net income available to common shareholders $486 $343 $ 908 $1,282 Net investment gains (losses), net of income taxes 150 (61) (352) 209 Adjustments related to net investment gains (losses), net of income taxes (54) 18 1 17 ---- ---- ------ ------ Operating earnings available to common shareholders $390 $386 $1,259 $1,056 ==== ==== ====== ====== Institutional Operations Group Life Net income available to common shareholders $ 91 $113 $ 276 $ 283 Net investment gains (losses), net of income taxes (10) 7 (59) (3) Adjustments related to net investment gains (losses), net of income taxes -- 4 4 4 ---- ---- ------ ------ Operating earnings available to common shareholders $101 $102 $ 331 $ 282 ==== ==== ====== ====== Retirement & Savings Net income available to common shareholders $290 $178 $ 420 $ 796 Net investment gains (losses), net of income taxes 105 (45) (250) 198 Adjustments related to net investment gains (losses), net of income taxes (16) 7 (13) 8 ---- ---- ------ ------ Operating earnings available to common shareholders $201 $216 $ 683 $ 590 ==== ==== ====== ====== Non-Medical Health & Other Net income available to common shareholders $105 $ 52 $ 212 $ 203 Net investment gains (losses), net of income taxes 55 (23) (43) 14 Adjustments related to net investment gains (losses), net of income taxes (38) 7 10 5 ---- ---- ------ ------ Operating earnings available to common shareholders $ 88 $ 68 $ 245 $ 184 ==== ==== ====== ====== Total Individual Operations Net income available to common shareholders $401 $313 $ 913 $1,262 Net investment gains (losses), net of income taxes 53 (6) (316) 353 Adjustments related to net investment gains (losses), net of income taxes (19) (11) 101 (31) ---- ---- ------ ------ Operating earnings available to common shareholders $367 $330 $1,128 $ 940 ==== ==== ====== ====== Individual Operations Traditional Life Net income available to common shareholders $ 55 $108 $ 217 $ 548 Net investment gains (losses), net of income taxes (14) 31 (106) 300 Adjustments related to net investment gains (losses), net of income taxes (4) (22) 55 (29) ---- ---- ------ ------ Operating earnings available to common shareholders $ 73 $ 99 $ 268 $ 277 ==== ==== ====== ====== Variable & Universal Life Net income available to common shareholders $105 $ 46 $ 176 $ 133 Net investment gains (losses), net of income taxes 14 (12) (47) (11) Adjustments related to net investment gains (losses), net of income taxes (3) 7 12 3 ---- ---- ------ ------ Operating earnings available to common shareholders $ 94 $ 51 $ 211 $ 141 ==== ==== ====== ====== Annuities Net income available to common shareholders $236 $148 $ 507 $ 556 Net investment gains (losses), net of income taxes 56 (29) (151) 66 Adjustments related to net investment gains (losses), net of income taxes (12) 4 34 (5) ---- ---- ------ ------ Operating earnings available to common shareholders $192 $173 $ 624 $ 495 ==== ==== ====== ====== Other Net income (loss) available to common shareholders $ 5 $ 11 $ 13 $ 25 Net investment gains (losses), net of income taxes (3) 4 (12) (2) ---- ---- ------ ------ Operating earnings (losses) available to common shareholders $ 8 $ 7 $ 25 $ 27 ==== ==== ====== ====== Total Auto & Home Net income available to common shareholders $106 $(29) $ 296 $ 145 Net investment gains (losses), net of income taxes (1) (3) (3) (6) ---- ---- ------ ------ Operating earnings available to common shareholders $107 $(26) $ 299 $ 151 ==== ==== ====== ====== Auto & Home Auto Net income available to common shareholders $ 87 $ 63 $ 219 $ 171 Net investment gains (losses), net of income taxes (1) (2) (2) (4) ---- ---- ------ ------ Operating earnings available to common shareholders $ 88 $ 65 $ 221 $ 175 ==== ==== ====== ====== Homeowners & Other Net income available to common shareholders $ 19 $(92) $ 77 $ (26) Net investment gains (losses), net of income taxes -- (1) (1) (2) ---- ---- ------ ------ Operating earnings available to common shareholders $ 19 $(91) $ 78 $ (24) ==== ==== ====== ======
Three months Nine months ended ended September 30, September 30, ------------- --------------- 2006 2005 2006 2005 ---- ---- ------ ------ International Net income available to common shareholders $ 11 $ 41 $ 216 $ 162 Net investment gains (losses), net of income taxes (13) 3 9 8 Adjustments related to net investment gains (losses), net of income taxes (48) (35) (2) (36) Discontinued operations, net of income taxes -- 7 -- 5 ---- ---- ------ ------ Operating earnings available to common shareholders $ 72 $ 66 $ 209 $ 185 ==== ==== ====== ====== Reinsurance Net income available to common shareholders $ 30 $ 28 $ 83 $ 64 Net investment gains (losses), net of income taxes 1 4 (2) 16 Adjustments related to net investment gains (losses), net of income taxes -- (2) 3 (7) ---- ---- ------ ------ Operating earnings available to common shareholders $ 29 $ 26 $ 82 $ 55 ==== ==== ====== ======
EX-99.2 3 y26307exv99w2.txt QUARTERLY FINANCIAL SUPPLEMENT METLIFE(R) THIRD QUARTER FINANCIAL SUPPLEMENT SEPTEMBER 30, 2006 3 [METLIFE LOGO] (METLIFE(R) 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 10 INSTITUTIONAL OPERATIONS STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS 11 PREMIUMS, FEES AND OTHER REVENUES BY PRODUCT AND ADDITIONAL STATISTICAL INFORMATION 15 FUTURE POLICY BENEFITS AND POLICYHOLDER ACCOUNT BALANCES AND SEPARATE ACCOUNT LIABILITIES 16 OTHER EXPENSES BY MAJOR CATEGORY 17 SPREADS BY PRODUCT 18 INDIVIDUAL OPERATIONS STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS 19 PREMIUMS AND DEPOSITS BY PRODUCT 24 ADDITIONAL STATISTICAL INFORMATION 25 FUTURE POLICY BENEFITS AND POLICYHOLDER ACCOUNT BALANCES AND SEPARATE ACCOUNT LIABILITIES 26 INSURANCE EXPENSES AND OTHER EXPENSES BY MAJOR CATEGORY 27 SPREADS BY PRODUCT 28 AUTO & HOME OPERATIONS STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS 29 WRITTEN PREMIUMS BY PRODUCT AND SELECTED FINANCIAL INFORMATION AND SUPPLEMENTAL DATA 32 INTERNATIONAL OPERATIONS STATEMENT OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS 33 REINSURANCE OPERATIONS STATEMENT OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS 34 PRE-TAX AND PRE-MINORITY INTEREST OPERATING EARNINGS BY REGION AND RESERVES BY REGION 35 CORPORATE, OTHER & ELIMINATIONS STATEMENT OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS 36 METLIFE, INC. INVESTMENT RESULTS BY ASSET CATEGORY AND ANNUALIZED YIELDS 37 FIXED MATURITIES AND EQUITY SECURITIES GROSS UNREALIZED GAINS AND LOSSES AGING SCHEDULES 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 periodic 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 October 30, 2006, for the quarter ended September 30, 2006, which are available at www.metlife.com. 1 (METLIFE(R) LOGO) CORPORATE OVERVIEW Unaudited (Dollars and shares in millions, except per share data)
For the Three Months Ended ----------------------------------------------------------------------- September 30, December 31, March 31, June 30, September 30, 2005 2005 2006 2006 2006 ------------- ------------ --------- -------- ------------- Net income $ 773 $ 709 $ 747 $ 650 $1,033 Preferred stock dividends 31 32 33 33 34 ------ ------ ------ ------ ------ Net income available to common shareholders 742 677 714 617 999 ------ ------ ------ ------ ------ Net investment gains (losses) (23) (234) (624) (817) 254 Minority interest - net investment gains (losses) (1) 3 (2) 4 0 Net investment gains (losses) tax benefit (provision) 9 85 220 289 (92) ------ ------ ------ ------ ------ Net investment gains (losses), net of income taxes (1) (2) (15) (146) (406) (524) 162 ------ ------ ------ ------ ------ Adjustments related to universal life and investment-type product policy fees 0 0 (3) (9) 3 Adjustments related to policyholder benefits and dividends (55) (9) 108 84 (204) Adjustments related to other expenses 7 30 42 126 14 Adjustments related to tax benefit (provision) 18 (9) (52) (72) 66 ------ ------ ------ ------ ------ Adjustments related to net investment gains (losses), net of income taxes (3) (30) 12 95 129 (121) ------ ------ ------ ------ ------ Discontinued operations, net of income taxes 7 12 0 30 0 ------ ------ ------ ------ ------ Operating earnings available to common shareholders (4) $ 780(6) $ 799 $1,025 $ 982 $958 ====== ====== ====== ====== ====== Net income available to common shareholders per common share - diluted $ 0.97 $ 0.88 $ 0.93 $ 0.80 $ 1.29 Net investment gains (losses), net of income taxes (0.02) (0.20) (0.53) (0.69) 0.21 Adjustments related to net investment gains (losses), net of income taxes (0.03) 0.02 0.13 0.17 (0.16) Discontinued operations, net of income taxes 0.01 0.02 0.00 0.04 0.00 ------ ------ ------ ------ ------ Operating earnings available to common shareholders - diluted $1.01 $ 1.04 $ 1.33 $ 1.28 $ 1.24 ====== ====== ====== ====== ====== Weighted average common shares outstanding - diluted 768.7 769.0 768.8 769.9 773.7 Book value per common share (actual common shares outstanding) $35.29 $35.72 $34.98 $33.77 $38.91 Book value per common share, excluding accumulated other comprehensive income (actual common shares outstanding) $32.81 $33.20 $34.21 $35.08 $36.42 Book value per common share - diluted (weighted average common shares outstanding) $34.75 $35.19 $34.50 $33.30 $38.22 Book value per common share, excluding accumulated other comprehensive income - diluted (weighted average common shares outstanding) $32.32 $32.70 $33.73 $34.59 $35.78
For the Three Months Ended ----------------------------------------------------------------------- September 30, December 31, March 31, June 30, September 30, 2005 2005 2006 2006 2006 ------------- ------------ --------- -------- ------------- Common shares outstanding, beginning of period 733.9 757.1 757.5 758.2 759.2 Treasury stock 23.2 0.4 0.7 1.0 0.8 ------ ------ ------ ------ ------ Common shares outstanding, end of period 757.1 757.5 758.2 759.2 760.0 ====== ====== ====== ====== ====== Weighted average common shares outstanding - basic 759.8 761.1 762.0 763.1 762.4 Dilutive effect of stock-based awards 8.9 7.9 6.8 6.8 9.3 Dilutive effect of stock purchase contracts underlying common equity units 0.0 0.0 0.0 0.0 2.0 ------ ------ ------ ------ ------ Weighted average common shares outstanding - diluted 768.7 769.0 768.8 769.9 773.7 ====== ====== ====== ====== ====== Policyholder Trust Shares 307.8 298.8 294.0 285.3 281.9 SUPPLEMENTAL DATA Adjusted long-term debt to total capital (5) 28.3% 28.6% 28.5% 27.8% 27.1%
(1) Net investment gains (losses), net of income taxes, excludes scheduled periodic settlement payments on derivative instruments not qualifying for hedge accounting treatment of $17 million, $23 million, $25 million, $44 million and $61 million for the three months ended September 30, 2005, December 31, 2005, March 31, 2006, June 30, 2006, and September 30, 2006, respectively. For QFS purposes, these settlements are included in net investment income. (2) Net investment gains (losses), net of income taxes, from real estate and real estate joint ventures includes discontinued operations of $30 million, $100 million, ($3) million, ($2) million and $63 million, for the three months ended September 30, 2005, December 31, 2005, March 31, 2006, June 30, 2006 and September 30, 2006, respectively. (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) Presentation of operating earnings available to common shareholders throughout the QFS differs from other public filings with respect to discontinued operations and scheduled periodic 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 periodic 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. (5) Adjusted long-term debt at September 30, 2005, December 31, 2005, March 31, 2006, June 30, 2006 and September 30, 2006, consists of $8,297 million, $8,017 million, $8,028 million, $8,112 million and $8,128 million of long-term debt, respectively, $2,134 million, $2,134 million, $2,134 million, $2,134 million and $2,134 million of junior subordinated debt securities underlying common equity units, respectively, and $272 million, $878 million, $1,084 million, $926 million and $905 million of adjusted short-term debt, respectively. Non-recourse debt not included in adjusted long-term debt consists of $1,195 million, $1,871 million, $1,904 million, $2,625 million and $2,584 million at such dates, respectively. Non-core borrowings not included in adjusted short-term debt consist of $1,031 million, $536 million, $276 million, $1,326 million and $801 million at such dates, 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 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(R) LOGO) METLIFE, INC. CONSOLIDATED BALANCE SHEETS
As of ----------------------------------------------------------------------- September 30, December 31, March 31, June 30, September 30, Unaudited (Dollars in millions) 2005 2005 2006 2006 2006 ------------- ------------ --------- -------- ------------- ASSETS Fixed maturities, at fair value $232,041 $230,875 $240,711 $237,612 $243,136 Equity securities, at fair value 3,058 3,338 3,356 3,202 3,177 Mortgage and consumer loans 36,094 37,190 37,351 38,665 40,141 Policy loans 9,841 9,981 9,987 10,065 10,115 Real estate and real estate joint ventures 4,705 4,665 4,700 4,786 4,931 Other limited partnership interests 4,345 4,276 4,514 4,805 4,686 Short-term investments 4,481 3,306 3,368 4,067 5,839 Other invested assets 7,877 8,078 8,386 9,652 9,194 -------- -------- -------- -------- -------- TOTAL INVESTMENTS 302,442 301,709 312,373 312,854 321,219 Cash and cash equivalents 6,950 4,018 5,144 4,126 5,924 Accrued investment income 3,299 3,036 3,145 3,275 3,380 Premiums and other receivables 14,391 12,186 12,731 13,216 14,494 Deferred policy acquisition costs and value of business acquired 19,211 19,641 20,245 20,814 20,565 Current income tax recoverable 0 0 0 154 170 Goodwill 4,564 4,797 4,797 4,913 4,916 Other assets 8,017 8,389 8,145 8,171 8,244 Separate account assets 124,044 127,869 132,522 132,782 137,274 -------- -------- -------- -------- -------- TOTAL ASSETS $482,918 $481,645 $499,102 $500,305 $516,186 ======== ======== ======== ======== ======== LIABILITIES AND EQUITY LIABILITIES ----------- Future policy benefits $121,591 $123,204 $122,748 $123,802 $125,614 Policyholder account balances 127,431 128,312 129,860 130,518 131,898 Other policyholder funds 8,521 8,331 8,620 8,721 9,100 Policyholder dividends payable 978 917 918 961 1,004 Policyholder dividend obligation 1,735 1,607 814 176 1,077 Short-term debt 1,303 1,414 1,360 2,253 1,706 Long-term debt 9,576 9,888 10,782 10,737 10,711 Junior subordinated debt securities underlying common equity units 2,134 2,134 2,134 2,134 2,134 Shares subject to mandatory redemption 278 278 278 278 278 Current income tax payable 97 69 88 0 0 Deferred income tax payable 1,456 1,706 1,199 485 2,319 Payables for collateral under securities loaned and other transactions 40,127 34,515 47,059 46,612 48,082 Other liabilities 14,890 12,300 12,153 13,165 13,379 Separate account liabilities 124,044 127,869 132,522 132,782 137,274 -------- -------- -------- -------- -------- TOTAL LIABILITIES 454,161 452,544 470,535 472,624 484,576 -------- -------- -------- -------- -------- EQUITY ------ Preferred stock, at par value 1 1 1 1 1 Common stock, at par value 8 8 8 8 8 Additional paid-in capital 17,273 17,274 17,327 17,372 17,397 Retained earnings 10,582 10,865 11,579 12,196 13,195 Treasury stock (981) (959) (938) (905) (878) Accumulated other comprehensive income 1,874 1,912 590 (991) 1,887 -------- -------- -------- -------- -------- TOTAL STOCKHOLDERS' EQUITY 28,757 29,101 28,567 27,681 31,610 -------- -------- -------- -------- -------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $482,918 $481,645 $499,102 $500,305 $516,186 ======== ======== ======== ======== ========
3 (METLIFE(R) LOGO) METLIFE, INC. CONSOLIDATED STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
For the Three Months Ended ----------------------------------------------------------------------- September 30, December 31, March 31, June 30, September 30, Unaudited (Dollars in millions) 2005 2005 2006 2006 2006 ------------- ------------ --------- -------- ------------- REVENUES Premiums $ 6,514 $ 6,346 $ 6,428 $ 6,428 $ 6,577 Universal life and investment-type product policy fees 1,112 1,112 1,178 1,194 1,185 Investment income, net 4,112 4,167 4,278 4,277 4,308 Other revenues 348 323 328 335 339 ------- ------- ------- ------- ------- 12,086 11,948 12,212 12,234 12,409 ------- ------- ------- ------- ------- EXPENSES Policyholder benefits and dividends 7,208 6,897 6,934 6,840 6,930 Interest credited to policyholder account balances 1,156 1,167 1,220 1,269 1,349 Interest credited to bank deposits 30 37 43 48 51 Interest expense 183 185 198 202 221 Other expenses 2,408 2,487 2,297 2,425 2,493 ------- ------- ------- ------- ------- 10,985 10,773 10,692 10,784 11,044 ------- ------- ------- ------- ------- Operating earnings before provision (benefit) for income taxes 1,101 1,175 1,520 1,450 1,365 Provision for income taxes 290 344 462 435 373 ------- ------- ------- ------- ------- Operating earnings 811 831 1,058 1,015 992 Preferred stock dividends 31 32 33 33 34 ------- ------- ------- ------- ------- OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $ 780(2) $ 799 $ 1,025 $ 982 $ 958 ======= ======= ======= ======= ======= NET INCOME RECONCILIATION - ------------------------- Operating earnings available to common shareholders $ 780 $ 799 $ 1,025 $ 982 $ 958 ------- ------- ------- ------- ------- Net investment gains (losses) (23) (234) (624) (817) 254 Minority interest - net investment gains (losses) (1) 3 (2) 4 0 Net investment gains (losses) tax benefit (provision) 9 85 220 289 (92) ------- ------- ------- ------- ------- Net investment gains (losses), net of income taxes (15) (146) (406) (524) 162 ------- ------- ------- ------- ------- Adjustments related to universal life and investment-type product policy fees 0 0 (3) (9) 3 Adjustments related to policyholder benefits and dividends (55) (9) 108 84 (204) Adjustments related to other expenses 7 30 42 126 14 Adjustments related to tax benefit (provision) 18 (9) (52) (72) 66 ------- ------- ------- ------- ------- Adjustments related to net investment gains (losses), net of income taxes (1) (30) 12 95 129 (121) ------- ------- ------- ------- ------- Discontinued operations, net of income taxes 7 12 0 30 0 ------- ------- ------- ------- ------- Net income available to common shareholders 742 677 714 617 999 Preferred stock dividends 31 32 33 33 34 ------- ------- ------- ------- ------- Net income $ 773 $ 709 $ 747 $ 650 $ 1,033 ======= ======= ======= ======= =======
(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 September 30, 2005 includes a $31 million benefit from a revision of the estimate of income taxes for 2004. 4 (METLIFE(R) LOGO) METLIFE, INC. CONSOLIDATING BALANCE SHEET AT SEPTEMBER 30, 2006
Corporate, Other & Unaudited (Dollars in millions) Consolidated Institutional Individual Auto & Home International Reinsurance Eliminations ------------ ------------- ---------- ----------- ------------- ----------- -------------- ASSETS Total investments $321,219 $133,244 $126,418 $3,827 $14,715 $13,586 $29,429 Cash and cash equivalents 5,924 (378) 719 (79) (80) 155 5,587 Accrued investment income 3,380 1,188 1,299 64 183 103 543 Premiums and other receivables 14,494 4,364 2,984 956 930 1,184 4,076 Deferred policy acquisition costs and value of business acquired 20,565 1,355 13,931 191 2,007 3,066 15 Current income tax recoverable 170 5 (86) 34 96 (48) 169 Goodwill 4,916 982 2,978 157 296 96 407 Other assets 8,244 1,801 3,371 377 362 93 2,240 Separate account assets 137,274 46,151 88,366 0 2,741 15 1 -------- -------- -------- ------ ------- ------- ------- Total Assets $516,186 $188,712 $239,980 $5,527 $21,250 $18,250 $42,467 ======== ======== ======== ====== ======= ======= ======= LIABILITIES AND EQUITY LIABILITIES - ----------- Future policy benefits $125,614 $49,482 $56,527 $3,446 $7,666 $4,996 $3,497 Policyholder account balances 131,898 57,829 57,988 0 5,545 5,954 4,582 Other policyholder funds 9,100 3,009 2,830 70 1,153 1,815 223 Policyholder dividends payable 1,004 0 1,004 0 0 0 0 Policyholder dividend obligation 1,077 0 1,077 0 0 0 0 Short-term debt 1,706 0 2 0 0 0 1,704 Long-term debt 10,711 0 138 0 66 1,553 8,954 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 Deferred income tax payable 2,319 (842) 1,767 22 122 958 292 Payables for collateral under securities loaned and other transactions 48,082 20,153 17,543 91 0 0 10,295 Other liabilities 13,379 3,006 2,897 679 996 1,544 4,257 Separate account liabilities 137,274 46,151 88,366 0 2,741 15 1 -------- -------- -------- ------ ------- ------- ------- Total Liabilities 484,576 178,788 230,139 4,308 18,289 16,994 36,058 -------- -------- -------- ------ ------- ------- ------- 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) 30,592 9,041 9,509 1,068 2,705 999 7,270 Treasury stock (878) 0 0 0 0 0 (878) Accumulated other comprehensive income 1,887 883 332 151 256 257 8 -------- -------- -------- ------ ------- ------- ------- Total Stockholders' Equity 31,610 9,924 9,841 1,219 2,961 1,256 6,409 -------- -------- -------- ------ ------- ------- ------- Total Liabilities and Stockholders' Equity $516,186 $188,712 $239,980 $5,527 $21,250 $18,250 $42,467 ======== ======== ======== ====== ======= ======= =======
(1) Allocated equity includes additional paid-in capital and retained earnings. 5 (METLIFE(R) LOGO) METLIFE, INC. CONSOLIDATING STATEMENT OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2006
Corporate, Other & Unaudited (Dollars in millions) Consolidated Institutional Individual Auto & Home International Reinsurance Eliminations ------------ ------------- ---------- ----------- ------------- ----------- ------------ REVENUES Premiums $6,577 $2,992 $1,095 $732 $675 $1,076 $7 Universal life and investment-type product policy fees 1,185 201 779 0 205 0 0 Investment income, net 4,308 1,865 1,717 46 290 171 219 Other revenues 339 171 126 3 8 19 12 -------- -------- -------- ------ ------- ------- ------- 12,409 5,229 3,717 781 1,178 1,266 238 -------- -------- -------- ------ ------- ------- ------- EXPENSES Policyholder benefits and dividends 6,930 3,368 1,692 427 581 849 13 Interest credited to policyholder account balances 1,349 682 528 0 93 46 0 Capitalization of deferred policy acquisition costs (954) (93) (340) (124) (146) (251) 0 Amortization of deferred policy acquisition costs 766 64 287 116 96 202 1 Other expenses 2,953 617 987 217 438 374 320 -------- -------- -------- ------ ------- ------- ------- 11,044 4,638 3,154 636 1,062 1,220 334 -------- -------- -------- ------ ------- ------- ------- Operating earnings before provision (benefit) for income taxes 1,365 591 563 145 116 46 (96) Provision (benefit) for income taxes 373 201 196 38 44 17 (123) -------- -------- -------- ------ ------- ------- ------- Operating earnings 992 390 367 107 72 29 27 Preferred stock dividends 34 0 0 0 0 0 34 -------- -------- -------- ------ ------- ------- ------- OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $958 $390 $367 $107 $72 $29 ($7) ======== ======== ======== ====== ======= ======= ======= NET INCOME RECONCILIATION - ------------------------- Operating earnings available to common shareholders $958 $390 $367 $107 $72 $29 ($7) -------- -------- -------- ------ ------- ------- ------- Net investment gains (losses) 254 230 79 (1) (17) 3 (40) Minority interest - net investment gains (losses) 0 0 0 0 0 0 0 Net investment gains (losses) tax benefit (provision) (92) (80) (26) 0 4 (2) 12 -------- -------- -------- ------ ------- ------- ------- Net investment gains (losses), net of income taxes 162 150 53 (1) (13) 1 (28) -------- -------- -------- ------ ------- ------- ------- 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 (204) (85) (46) 0 (73) 0 0 Adjustments related to other expenses 14 0 15 0 0 (1) 0 Adjustments related to tax benefit (provision) 66 31 9 0 25 1 0 -------- -------- -------- ------ ------- ------- ------- Adjustments related to net investment gains (losses), net of income taxes (1) (121) (54) (19) 0 (48) 0 0 -------- -------- -------- ------ ------- ------- ------- Discontinued operations, net of income taxes 0 0 0 0 0 0 0 -------- -------- -------- ------ ------- ------- ------- Net income available to common shareholders 999 486 401 106 11 30 (35) Preferred stock dividends 34 0 0 0 0 0 34 -------- -------- -------- ------ ------- ------- ------- Net income $1,033 $486 $401 $106 $11 $30 ($1) ======== ======== ======== ====== ======= ======= =======
(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(R) LOGO) METLIFE, INC. CONSOLIDATING STATEMENT OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2005
Corporate, Other & Unaudited (Dollars in millions) Consolidated Institutional Individual Auto & Home International Reinsurance Eliminations ------------ ------------- ---------- ----------- ------------- ----------- ---------------- REVENUES Premiums $6,514 $3,066 $1,136 $716 $614 $976 $6 Universal life and investment-type product policy fees 1,112 197 746 0 170 (2) 1 Investment income, net 4,112 1,707 1,751 46 238 158 212 Other revenues 348 163 150 8 9 13 5 -------- -------- -------- ------ ------- ------- ------- 12,086 5,133 3,783 770 1,031 1,145 224 -------- -------- -------- ------ ------- ------- ------- EXPENSES Policyholder benefits and dividends 7,208 3,455 1,769 615 578 779 12 Interest credited to policyholder account balances 1,156 508 500 0 84 64 0 Capitalization of deferred policy acquisition costs (935) (74) (384) (123) (137) (217) 0 Amortization of deferred policy acquisition costs 656 51 310 116 68 111 0 Other expenses 2,900 610 1,094 216 359 366 255 -------- -------- -------- ------ ------- ------- ------- 10,985 4,550 3,289 824 952 1,103 267 -------- -------- -------- ------ ------- ------- ------- Operating earnings before provision (benefit) for income taxes 1,101 583 494 (54) 79 42 (43) Provision (benefit) for income taxes 290 197 164 (28) 13 16 (72) -------- -------- -------- ------ ------- ------- ------- Operating earnings 811 386 330 (26) 66 26 29 Preferred stock dividends 31 0 0 0 0 0 31 -------- -------- -------- ------ ------- ------- ------- OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $780 (2) $386 $330 ($26) $66 $26 ($2) ======== ======== ======== ====== ======= ======= ======= NET INCOME RECONCILIATION - ------------------------- Operating earnings available to common shareholders $780 $386 $330 ($26) $66 $26 ($2) -------- -------- -------- ------ ------- ------- ------- Net investment gains (losses) (23) (97) (6) (5) 5 7 73 Minority interest - net investment gains (losses) (1) 0 0 0 0 (1) 0 Net investment gains (losses) tax benefit (provision) 9 36 0 2 (2) (2) (25) -------- -------- -------- ------ ------- ------- ------- Net investment gains (losses), net of income taxes (15) (61) (6) (3) 3 4 48 -------- -------- -------- ------ ------- ------- ------- 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 (55) 28 (29) 0 (54) 0 0 Adjustments related to other expenses 7 0 11 0 0 (4) 0 Adjustments related to tax benefit (provision) 18 (10) 7 0 19 2 0 -------- -------- -------- ------ ------- ------- ------- Adjustments related to net investment gains (losses), net of income taxes (1) (30) 18 (11) 0 (35) (2) 0 -------- -------- -------- ------ ------- ------- ------- Discontinued operations, net of income taxes 7 0 0 0 7 0 0 -------- -------- -------- ------ ------- ------- ------- Net income available to common shareholders 742 343 313 (29) 41 28 46 Preferred stock dividends 31 0 0 0 0 0 31 -------- -------- -------- ------ ------- ------- ------- Net income $773 $343 $313 ($29) $41 $28 $77 ======== ======== ======== ====== ======= ======= =======
(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 September 30, 2005 includes a $31 million benefit from a revision of the estimate of income taxes for 2004. 7 (METLIFE(R) LOGO) METLIFE, INC. CONSOLIDATING STATEMENT OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2006
Corporate, Other Unaudited (Dollars in millions) Consolidated Institutional Individual Auto & Home International Reinsurance & Eliminations ------------ ------------- ---------- ----------- ------------- ----------- ---------------- REVENUES Premiums $19,433 $8,817 $3,279 $2,182 $1,982 $3,147 $26 Universal life and investment-type product policy fees 3,557 603 2,371 0 583 0 0 Investment income, net 12,863 5,476 5,167 133 763 501 823 Other revenues 1,002 510 386 18 16 47 25 -------- -------- -------- ------ ------- ------- ------- 36,855 15,406 11,203 2,333 3,344 3,695 874 -------- -------- -------- ------ ------- ------- ------- EXPENSES Policyholder benefits and dividends 20,704 9,926 5,192 1,312 1,708 2,533 33 Interest credited to policyholder account balances 3,838 1,893 1,522 0 266 157 0 Capitalization of deferred policy acquisition costs (2,727) (236) (1,125) (348) (442) (576) 0 Amortization of deferred policy acquisition costs 2,021 142 878 342 256 401 2 Other expenses 8,684 1,774 3,011 627 1,247 1,053 972 -------- -------- -------- ------ ------- ------- ------- 32,520 13,499 9,478 1,933 3,035 3,568 1,007 -------- -------- -------- ------ ------- ------- ------- Operating earnings before provision (benefit) for income taxes 4,335 1,907 1,725 400 309 127 (133) Provision (benefit) for income taxes 1,270 648 597 101 100 45 (221) -------- -------- -------- ------ ------- ------- ------- Operating earnings 3,065 1,259 1,128 299 209 82 88 Preferred stock dividends 100 0 0 0 0 0 100 -------- -------- -------- ------ ------- ------- ------- OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $2,965 $1,259 $1,128 $299 $209 $82 ($12) ======== ======== ======== ====== ======= ======= ======= NET INCOME RECONCILIATION - ------------------------- Operating earnings available to common shareholders $2,965 $1,259 $1,128 $299 $209 $82 ($12) -------- -------- -------- ------ ------- ------- ------- Net investment gains (losses) (1,187) (549) (493) (4) 16 (4) (153) Minority interest - net investment gains (losses) 2 0 0 0 0 2 0 Net investment gains (losses) tax benefit (provision) 417 197 177 1 (7) 0 49 -------- -------- -------- ------ ------- ------- ------- Net investment gains (losses), net of income taxes (768) (352) (316) (3) 9 (2) (104) -------- -------- -------- ------ ------- ------- ------- Adjustments related to universal life and investment-type product policy fees (9) 0 (9) 0 0 0 0 Adjustments related to policyholder benefits and dividends (12) 1 (11) 0 (2) 0 0 Adjustments related to other expenses 182 0 178 0 0 4 0 Adjustments related to tax benefit (provision) (58) 0 (57) 0 0 (1) 0 -------- -------- -------- ------ ------- ------- ------- Adjustments related to net investment gains (losses), net of income taxes (1) 103 1 101 0 (2) 3 0 -------- -------- -------- ------ ------- ------- ------- Discontinued operations, net of income taxes 30 0 0 0 0 0 30 -------- -------- -------- ------ ------- ------- ------- Net income available to common shareholders 2,330 908 913 296 216 83 (86) Preferred stock dividends 100 0 0 0 0 0 100 -------- -------- -------- ------ ------- ------- ------- Net income $2,430 $908 $913 $296 $216 $83 $14 ======== ======== ======== ====== ======= ======= =======
(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. 8 (METLIFE(R) LOGO) METLIFE, INC. CONSOLIDATING STATEMENT OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2005
Corporate, Other & Unaudited (Dollars in millions) Consolidated Institutional Individual Auto & Home International Reinsurance Eliminations ------------ ------------- ---------- ----------- ------------- ----------- -------------- REVENUES Premiums $ 18,514 $ 8,744 $ 3,221 $ 2,182 $ 1,550 $ 2,807 $ 10 Universal life and investment-type product policy fees 2,716 575 1,726 0 414 0 1 Investment income, net 10,899 4,319 4,860 135 582 445 558 Other revenues 948 487 367 25 11 45 13 -------- -------- -------- -------- -------- -------- -------- 33,077 14,125 10,174 2,342 2,557 3,297 582 -------- -------- -------- -------- -------- -------- -------- EXPENSES Policyholder benefits and dividends 20,208 9,760 5,136 1,541 1,456 2,346 (31) Interest credited to policyholder account balances 2,771 1,135 1,287 0 186 163 0 Capitalization of deferred policy acquisition costs (2,560) (206) (917) (345) (400) (692) 0 Amortization of deferred policy acquisition costs 1,740 125 661 342 180 428 4 Other expenses 7,382 1,715 2,598 615 877 969 608 -------- -------- -------- -------- -------- -------- -------- 29,541 12,529 8,765 2,153 2,299 3,214 581 -------- -------- -------- -------- -------- -------- -------- Operating earnings before provision (benefit) for income taxes 3,536 1,596 1,409 189 258 83 1 Provision (benefit) for income taxes 1,033 540 469 38 73 28 (115) -------- -------- -------- -------- -------- -------- -------- Operating earnings 2,503 1,056 940 151 185 55 116 Preferred stock dividends 31 0 0 0 0 0 31 -------- -------- -------- -------- -------- -------- -------- OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $ 2,472 (2) $ 1,056 $ 940 $ 151 $ 185 $ 55 $ 85 ======== ======== ======== ======== ======== ======== ======== NET INCOME RECONCILIATION - ------------------------- Operating earnings available to common shareholders $ 2,472 $ 1,056 $ 940 $ 151 $ 185 $ 55 $ 85 -------- -------- -------- -------- -------- -------- -------- Net investment gains (losses) 2,181 323 554 (9) 12 28 1,273 Minority interest - net investment gains (losses) (12) 0 (4) 0 0 (8) 0 Net investment gains (losses) tax benefit (provision) (766) (114) (197) 3 (4) (4) (450) -------- -------- -------- -------- -------- -------- -------- Net investment gains (losses), net of income taxes 1,403 209 353 (6) 8 16 823 -------- -------- -------- -------- -------- -------- -------- 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 (71) 26 (41) 0 (56) 0 0 Adjustments related to other expenses (17) 0 (8) 0 0 (9) 0 Adjustments related to tax benefit (provision) 31 (9) 18 0 20 2 0 -------- -------- -------- -------- -------- -------- -------- Adjustments related to net investment gains (losses), net of income taxes (1) (57) 17 (31) 0 (36) (7) 0 -------- -------- -------- -------- -------- -------- -------- Discontinued operations, net of income taxes 156 0 0 0 5 0 151 -------- -------- -------- -------- -------- -------- -------- Net income available to common shareholders 3,974 1,282 1,262 145 162 64 1,059 Preferred stock dividends 31 0 0 0 0 0 31 -------- -------- -------- -------- -------- -------- -------- Net income $ 4,005 $ 1,282 $ 1,262 $ 145 $ 162 $ 64 $ 1,090 ======== ======== ======== ======== ======== ======== ========
(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 September 30, 2005 includes a $31 million benefit from a revision of the estimate of income taxes for 2004. 9 (METLIFE(R) LOGO) SUMMARY OF SEGMENT OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS (1)
For the Three Months Ended --------------------------------------------------------------- September 30, December 31, March 31, June 30, September 30, Unaudited (Dollars in millions) 2005 2005 2006 2006 2006 ------------- ------------ --------- -------- ------------- INSTITUTIONAL OPERATIONS $386 $389 $ 416 $453 $390 INDIVIDUAL OPERATIONS 330 312 408 353 367 AUTO & HOME OPERATIONS (26) 81 93 99 107 INTERNATIONAL OPERATIONS 66 48 75 62 72 REINSURANCE OPERATIONS 26 31 24 29 29 CORPORATE, OTHER & ELIMINATIONS (2) (62) 9 (14) (7) ------ ---- ------ ---- ---- CONSOLIDATED $780(2) $799 $1,025 $982 $958 ====== ==== ====== ==== ====
(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 11; (ii) Individual Operations, page 19; (iii) Auto & Home Operations, page 29; (iv) International Operations, page 33; (v) Reinsurance Operations, page 34; and Corporate, Other & Eliminations, page 36. 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 September 30, 2005 includes a $31 million benefit from a revision of the estimate of income taxes for 2004. 10 (METLIFE(R) LOGO) INSTITUTIONAL OPERATIONS STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS - TOTAL UNAUDITED (DOLLARS IN MILLIONS)
For the Year-to-Date For the Three Months Ended Period Ended --------------------------------------------------------------- ---------------------------- September 30, December 31, March 31, June 30, September 30, September 30, September 30, Institutional Operations 2005 2005 2006 2006 2006 2005 2006 ------------- ------------ --------- -------- ------------- ------------- ------------- REVENUES Premiums $3,066 $2,643 $2,989 $2,836 $2,992 $ 8,744 $ 8,817 Universal life and investment-type product policy fees 197 197 201 201 201 575 603 Investment income, net 1,707 1,732 1,787 1,824 1,865 4,319 5,476 Other revenues 163 166 170 169 171 487 510 ------ ------ ------ ------ ------ ------- ------- 5,133 4,738 5,147 5,030 5,229 14,125 15,406 ------ ------ ------ ------ ------ ------- ------- EXPENSES Policyholder benefits and dividends 3,455 3,025 3,389 3,169 3,368 9,760 9,926 Interest credited to policyholder account balances 508 530 594 617 682 1,135 1,893 Other expenses 587 595 533 559 588 1,634 1,680 ------ ------ ------ ------ ------ ------- ------- 4,550 4,150 4,516 4,345 4,638 12,529 13,499 ------ ------ ------ ------ ------ ------- ------- Operating earnings before provision (benefit) for income taxes 583 588 631 685 591 1,596 1,907 Provision (benefit) for income taxes 197 199 215 232 201 540 648 ------ ------ ------ ------ ------ ------- ------- OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $ 386 $ 389 $ 416 $ 453 $ 390 $ 1,056 $ 1,259 ====== ====== ====== ====== ====== ======= ======= NET INCOME RECONCILIATION - ------------------------- Operating earnings available to common shareholders $ 386 $ 389 $ 416 $ 453 $ 390 $ 1,056 $ 1,259 ------ ------ ------ ------ ------ ------- ------- Net investment gains (losses) (97) (156) (339) (440) 230 323 (549) Minority interest - net investment gains (losses) 0 0 0 0 0 0 0 Net investment gains (losses) tax benefit (provision) 36 59 120 157 (80) (114) 197 ------ ------ ------ ------ ------ ------- ------- Net investment gains (losses), net of income taxes (61) (97) (219) (283) 150 209 (352) ------ ------ ------ ------ ------ ------- ------- 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 28 (18) 25 61 (85) 26 1 Adjustments related to other expenses 0 0 0 0 0 0 0 Adjustments related to tax benefit (provision) (10) 6 (9) (22) 31 (9) 0 ------ ------ ------ ------ ------ ------- ------- Adjustments related to net investment gains (losses), net of income taxes (1) 18 (12) 16 39 (54) 17 1 ------ ------ ------ ------ ------ ------- ------- Discontinued operations, net of income taxes 0 0 0 0 0 0 0 ------ ------ ------ ------ ------ ------- ------- Net income available to common shareholders 343 280 213 209 486 1,282 908 Preferred stock dividends 0 0 0 0 0 0 0 ------ ------ ------ ------ ------ ------- ------- Net income $ 343 $ 280 $ 213 $ 209 $ 486 $ 1,282 $ 908 ====== ====== ====== ====== ====== ======= =======
(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. 11 (METLIFE(R) LOGO) INSTITUTIONAL OPERATIONS STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS - PRODUCT LEVEL UNAUDITED (DOLLARS IN MILLIONS)
For the Year-to-Date For the Three Months Ended Period Ended --------------------------------------------------------------- ---------------------------- September 30, December 31, March 31, June 30, September 30, September 30, September 30, Group Life 2005 2005 2006 2006 2006 2005 2006 ------------- ------------ --------- -------- ------------- ------------- ------------- REVENUES Premiums $1,485 $1,359 $1,551 $1,474 $1,434 $4,284 $4,459 Universal life and investment-type product policy fees 192 194 195 197 196 559 588 Investment income, net 296 296 303 309 321 848 933 Other revenues 11 10 15 13 14 38 42 ------ ------ ------ ------ ------ ------- ------ 1,984 1,859 2,064 1,993 1,965 5,729 6,022 ------ ------ ------ ------ ------ ------- ------ EXPENSES Policyholder benefits and dividends 1,542 1,398 1,636 1,484 1,505 4,505 4,625 Interest credited to policyholder account balances 119 125 134 143 148 323 425 Other expenses 168 157 155 157 159 473 471 ------ ------ ------ ------ ------ ------- ------ 1,829 1,680 1,925 1,784 1,812 5,301 5,521 ------ ------ ------ ------ ------ ------- ------ Operating earnings before provision (benefit) for income taxes 155 179 139 209 153 428 501 Provision (benefit) for income taxes 53 61 48 70 52 146 170 ------ ------ ------ ------ ------ ------- ------ OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $ 102 $ 118 $ 91 $ 139 $ 101 $ 282 $ 331 ====== ====== ====== ====== ====== ====== ====== Net investment gains (losses), net of income taxes 7 (38) (2) (47) (10) (3) (59) Adjustments related to net investment gains (losses), net of income taxes 4 1 1 3 0 4 4 Discontinued operations, net of income taxes 0 0 0 0 0 0 0 ------ ------ ------ ------ ------ ------- ------ Net income available to common shareholders 113 81 90 95 91 283 276 Preferred stock dividends 0 0 0 0 0 0 0 ------ ------ ------ ------ ------ ------- ------ Net income $ 113 $ 81 $ 90 $ 95 $ 91 $ 283 $ 276 ====== ====== ====== ====== ====== ====== ======
12 (METLIFE(R) LOGO) INSTITUTIONAL OPERATIONS STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS - PRODUCT LEVEL UNAUDITED (DOLLARS IN MILLIONS)
For the Year-to-Date For the Three Months Ended Period Ended --------------------------------------------------------------- ---------------------------- September 30, December 31, March 31, June 30, September 30, September 30, September 30, Retirement & Savings 2005 2005 2006 2006 2006 2005 2006 ------------- ------------ --------- -------- ------------- ------------- ------------- REVENUES Premiums $ 557 $ 234 $ 334 $ 254 $ 436 $1,437 $1,024 Universal life and investment-type product policy fees 5 3 6 4 5 16 15 Investment income, net 1,255 1,273 1,325 1,361 1,386 3,027 4,072 Other revenues 63 67 62 64 62 181 188 ------ ------ ------ ------ ------ ------- ------ 1,880 1,577 1,727 1,683 1,889 4,661 5,299 ------ ------ ------ ------ ------ ------- ------ EXPENSES Policyholder benefits and dividends 1,041 743 774 755 940 2,656 2,469 Interest credited to policyholder account balances 389 405 460 474 534 812 1,468 Other expenses 126 113 98 119 111 306 328 ------ ------ ------ ------ ------ ------- ------ 1,556 1,261 1,332 1,348 1,585 3,774 4,265 ------ ------ ------ ------ ------ ------- ------ Operating earnings before provision (benefit) for income taxes 324 316 395 335 304 887 1,034 Provision (benefit) for income taxes 108 106 134 114 103 297 351 ------ ------ ------ ------ ------ ------- ------ OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $ 216 $ 210 $ 261 $ 221 $ 201 $ 590 $ 683 ====== ====== ====== ====== ====== ====== ====== Net investment gains (losses), net of income taxes (45) (61) (168) (187) 105 198 (250) Adjustments related to net investment gains (losses), net of income taxes 7 (2) (7) 10 (16) 8 (13) Discontinued operations, net of income taxes 0 0 0 0 0 0 0 ------ ------ ------ ------ ------ ------- ------ Net income available to common shareholders 178 147 86 44 290 796 420 Preferred stock dividends 0 0 0 0 0 0 0 ------ ------ ------ ------ ------ ------- ------ Net income $ 178 $ 147 $ 86 $ 44 $ 290 $ 796 $ 420 ====== ====== ====== ====== ====== ====== ======
13 (METLIFE(R) LOGO) INSTITUTIONAL OPERATIONS STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS - PRODUCT LEVEL UNAUDITED (DOLLARS IN MILLIONS)
For the Year-to-Date For the Three Months Ended Period Ended --------------------------------------------------------------- ---------------------------- September 30, December 31, March 31, June 30, September 30, September 30, September 30, Non-Medical Health & Other 2005 2005 2006 2006 2006 2005 2006 ------------- ------------ --------- -------- ------------- ------------- ------------- REVENUES Premiums $1,024 $1,050 $1,104 $1,108 $1,122 $3,023 $3,334 Universal life and investment-type product policy fees 0 0 0 0 0 0 0 Investment income, net 156 163 159 154 158 444 471 Other revenues 89 89 93 92 95 268 280 ------ ------ ------ ------ ------ ------- ------ 1,269 1,302 1,356 1,354 1,375 3,735 4,085 ------ ------ ------ ------ ------ ------- ------ EXPENSES Policyholder benefits and dividends 872 884 979 930 923 2,599 2,832 Interest credited to policyholder account balances 0 0 0 0 0 0 0 Other expenses 293 325 280 283 318 855 881 ------ ------ ------ ------ ------ ------- ------ 1,165 1,209 1,259 1,213 1,241 3,454 3,713 ------ ------ ------ ------ ------ ------- ------ Operating earnings before provision (benefit) for income taxes 104 93 97 141 134 281 372 Provision (benefit) for income taxes 36 32 33 48 46 97 127 ------ ------ ------ ------ ------ ------- ------ OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $ 68 $ 61 $ 64 $ 93 $ 88 $ 184 $ 245 ====== ====== ====== ====== ====== ====== ====== Net investment gains (losses), net of income taxes (23) 2 (49) (49) 55 14 (43) Adjustments related to net investment gains (losses), net of income taxes 7 (11) 22 26 (38) 5 10 Discontinued operations, net of income taxes 0 0 0 0 0 0 0 ------ ------ ------ ------ ------ ------- ------ Net income available to common shareholders 52 52 37 70 105 203 212 Preferred stock dividends 0 0 0 0 0 0 0 ------ ------ ------ ------ ------ ------- ------ Net income $ 52 $ 52 $ 37 $ 70 $ 105 $ 203 $ 212 ====== ====== ====== ====== ====== ====== ======
14 (METLIFE(R) LOGO) INSTITUTIONAL OPERATIONS PREMIUMS, FEES AND OTHER REVENUES BY PRODUCT AND ADDITIONAL STATISTICAL INFORMATION
For the Three Months Ended ------------------------------------------------------------------- September 30, December 31, March 31, June 30, September 30, Unaudited (Dollars in millions) 2005 2005 2006 2006 2006 ------------- ------------ --------- -------- ------------- PREMIUMS, FEES AND OTHER REVENUES BY PRODUCT Group Life $1,688 $1,563 $1,761 $1,684 $1,644 Retirement & Savings 625 304 402 322 503 Non-Medical Health & Other 1,113 1,139 1,197 1,200 1,217 ------ ------ ------ ------ ------ Total Premiums, Fees and Other Revenues $3,426 $3,006 $3,360 $3,206 $3,364 ====== ====== ====== ====== ====== Group Disability (Included in Non-Medical Health & Other) $ 325 $ 335 $ 347 $ 342 $ 352 ADDITIONAL STATISTICAL INFORMATION INCURRED LOSS RATIO (MORTALITY EXPERIENCE): Term Life 91.5% 89.3% 94.2% 88.1% 91.6% INCURRED LOSS RATIO (MORBIDITY EXPERIENCE): Group Disability 95.0% 91.1% 90.7% 90.2% 83.0% NUMBER OF SALES REPRESENTATIVES 787 761 745 700 684
15 (METLIFE(R) 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 --------------------------------------------------------------------- September 30, December 31, March 31, June 30, September 30, Group Life 2005 2005 2006 2006 2006 ------------- ----------- --------- -------- ------------- Balance, beginning of period $15,449 $16,290 $16,400 $16,951 $16,686 Premiums and deposits 2,921 2,681 3,372 2,824 2,787 Interest on reserves 159 166 176 187 193 Surrenders and withdrawals (1,263) (1,180) (1,196) (1,581) (1,392) Benefits and reserves (1,295) (1,397) (1,623) (1,489) (1,514) Other 319(1) (160) (178) (206) (166) ------- ------- ------- ------- ------- Balance, end of period $16,290 $16,400 $16,951 $16,686 $16,594 ======= ======= ======= ======= =======
For the Three Months Ended --------------------------------------------------------------------- September 30, December 31, March 31, June 30, September 30, Retirement & Savings 2005 2005 2006 2006 2006 ------------- ----------- --------- -------- ------------- Balance, beginning of period $51,020 $77,933 $78,405 $78,252 $79,406 Premiums and deposits 2,751 3,282 3,819 3,028 3,389 Interest on reserves 933 937 986 1,022 1,054 Surrenders and withdrawals (2,604) (2,378) (2,851) (2,301) (2,031) Benefits and reserves (671) (655) (679) (673) (663) Other 26,504(1) (714) (1,428) 78 285 ------- ------- ------- ------- ------- Balance, end of period $77,933 $78,405 $78,252 $79,406 $81,440 ======= ======= ======= ======= =======
For the Three Months Ended --------------------------------------------------------------------- September 30, December 31, March 31, June 30, September 30, Non-Medical Health & Other 2005 2005 2006 2006 2006 ------------- ----------- --------- -------- ------------- Balance, beginning of period $7,968 $8,321 $8,556 $8,849 $9,014 Premiums and deposits 996 1,023 1,066 1,059 1,075 Interest on reserves 74 76 78 81 84 Surrenders and withdrawals 21 20 20 28 21 Benefits and reserves (917) (915) (991) (950) (931) Other 179(1) 31 120 (53) 14 ------ ------ ------ ------ ------ Balance, end of period $8,321 $8,556 $8,849 $9,014 $9,277 ====== ====== ====== ====== ======
SEPARATE ACCOUNT LIABILITIES
For the Three Months Ended --------------------------------------------------------------------- September 30, December 31, March 31, June 30, September 30, Group Life 2005 2005 2006 2006 2006 ------------- ----------- --------- -------- ------------- Balance, beginning of period $8,050 $ 9,931 $10,539 $10,949 $11,294 Premiums and deposits 232 706 189 603 552 Investment performance 219 29 329 (161) 328 Surrenders and withdrawals (108) (121) (101) (86) (139) Policy charges (7) (7) (7) (7) (7) Other 1,545(1) 1 0 (4) 580 ------ ------- ------- ------- ------- Balance, end of period $9,931 $10,539 $10,949 $11,294 $12,608 ====== ======= ======= ======= =======
For the Three Months Ended --------------------------------------------------------------------- September 30, December 31, March 31, June 30, September 30, Retirement & Savings 2005 2005 2006 2006 2006 ------------- ----------- --------- -------- ------------- Balance, beginning of period $32,105 $34,508 $34,374 $33,653 $33,657 Premiums and deposits 1,108 1,204 1,345 1,127 1,256 Investment performance 538 527 550 279 1,218 Surrenders and withdrawals (2,029) (1,775) (2,592) (1,377) (2,978) Policy charges (23) (30) (25) (26) (25) Other 2,809(1) (60) 1 1 (7) ------- ------- ------- ------- ------- Balance, end of period $34,508 $34,374 $33,653 $33,657 $33,121 ======= ======= ======= ======= =======
For the Three Months Ended --------------------------------------------------------------------- September 30, December 31, March 31, June 30, September 30, Non-Medical Health & Other 2005 2005 2006 2006 2006 ------------- ----------- --------- -------- ------------- Balance, beginning of period $ 276 $ 298 $ 326 $ 360 $ 377 Premiums and deposits 81 78 90 91 84 Investment performance 66 (34) 90 (48) 33 Surrenders and withdrawals (21) (19) (20) (28) (21) Policy charges (18) (15) (14) (20) (25) Other (86) 18 (112) 22 (26) ------- ------- ------- ------- ------- Balance, end of period $ 298 $ 326 $ 360 $ 377 $ 422 ======= ======= ======= ======= =======
(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. 16 (METLIFE(R) LOGO) INSTITUTIONAL OPERATIONS OTHER EXPENSES BY MAJOR CATEGORY
For the Three Months Ended --------------------------------------------------------------- September 30, December 31, March 31, June 30, September 30, Unaudited (Dollars in millions) 2005 2005 2006 2006 2006 ------------- ------------ --------- -------- ------------- OTHER EXPENSES BY MAJOR CATEGORY Direct and allocated expenses $417 $431 $361 $413 $397 Pension and other post-retirement benefit costs 19 19 21 20 21 Premium taxes and other taxes, licenses and fees 46 53 50 38 50 ---- ---- ---- ---- ---- Sub-total Insurance Expenses 482 503 432 471 468 Commissions and other expenses 105 92 101 88 120 ---- ---- ---- ---- ---- Total Other Expenses $587 $595 $533 $559 $588 ==== ==== ==== ==== ====
17 (METLIFE(R) LOGO) INSTITUTIONAL OPERATIONS SPREADS BY PRODUCT UNAUDITED
For the Three Months Ended --------------------------------------------------------------- September 30, December 31, March 31, June 30, September 30, Group Life 2005 2005 2006 2006 2006 ------------- ------------ --------- -------- ------------- ANNUALIZED GENERAL ACCOUNT SPREADS BY SEGMENT (%) Investment income yield 5.89% 5.98% 6.07% 6.11% 6.52% Average crediting rate 3.92% 4.07% 4.40% 4.56% 4.73% ---- ---- ---- ---- ---- Spread 1.97% 1.91% 1.67% 1.55% 1.79% ==== ==== ==== ==== ====
For the Three Months Ended --------------------------------------------------------------- September 30, December 31, March 31, June 30, September 30, Retirement & Savings 2005 2005 2006 2006 2006 ------------- ------------ --------- -------- ------------- ANNUALIZED GENERAL ACCOUNT SPREADS BY SEGMENT (%) Investment income yield 6.57% 6.59% 6.74% 6.83% 6.79% Average crediting rate 4.97% 5.11% 5.31% 5.33% 5.54% ---- ---- ---- ---- ---- Spread 1.60% 1.48% 1.43% 1.50% 1.25% ==== ==== ==== ==== ====
For the Three Months Ended --------------------------------------------------------------- September 30, December 31, March 31, June 30, September 30, Non-Medical Health & Other 2005 2005 2006 2006 2006 ------------- ------------ --------- -------- ------------- ANNUALIZED GENERAL ACCOUNT SPREADS BY SEGMENT (%) Investment income yield 8.19% 8.25% 7.71% 7.22% 7.09% Average crediting rate 4.93% 4.95% 4.99% 5.00% 5.01% ---- ---- ---- ---- ---- Spread 3.26% 3.30% 2.72% 2.22% 2.08% ==== ==== ==== ==== ====
18 (METLIFE(R) LOGO) INDIVIDUAL OPERATIONS STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS - TOTAL UNAUDITED (DOLLARS IN MILLIONS)
For the Year-to-Date For the Three Months Ended Period Ended ----------------------------------------------------------- --------------------------- September 30, December 31, March 31, June 30, September 30, September 30, September 30, Individual Operations 2005 2005 2006 2006 2006 2005 2006 ------------- ------------ --------- -------- ------------- ------------- ------------- REVENUES Premiums $1,136 $1,264 $1,082 $1,102 $1,095 $ 3,221 $ 3,279 Universal life and investment-type product policy fees 746 750 793 799 779 1,726 2,371 Investment income, net 1,751 1,711 1,741 1,709 1,717 4,860 5,167 Other revenues 150 110 125 135 126 367 386 ------ ------ ------ ------ ------ ------- ------- 3,783 3,835 3,741 3,745 3,717 10,174 11,203 ------ ------ ------ ------ ------ ------- ------- EXPENSES Policyholder benefits and dividends 1,769 1,940 1,745 1,755 1,692 5,136 5,192 Interest credited to policyholder account balances 500 488 476 518 528 1,287 1,522 Capitalization of deferred policy acquisition costs (384) (409) (370) (415) (340) (917) (1,125) Amortization of deferred policy acquisition costs 310 303 302 289 287 661 878 Other expenses 1,094 1,047 964 1,060 987 2,598 3,011 ------ ------ ------ ------ ------ ------- ------- 3,289 3,369 3,117 3,207 3,154 8,765 9,478 ------ ------ ------ ------ ------ ------- ------- Operating earnings before provision (benefit) for income taxes 494 466 624 538 563 1,409 1,725 Provision (benefit) for income taxes 164 154 216 185 196 469 597 ------ ------ ------ ------ ------ ------- ------- OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $ 330 $ 312 $ 408 $ 353 $ 367 $ 940 $ 1,128 ====== ====== ====== ====== ====== ======= ======= NET INCOME RECONCILIATION - ------------------------- Operating earnings available to common shareholders $ 330 $ 312 $ 408 $ 353 $ 367 $ 940 $ 1,128 ------ ------ ------ ------ ------ ------- ------- Net investment gains (losses) (6) (180) (265) (307) 79 554 (493) Minority interest - net investment gains (losses) 0 0 0 0 0 (4) 0 Net investment gains (losses) tax benefit (provision) 0 65 95 108 (26) (197) 177 ------ ------ ------ ------ ------ ------- ------- Net investment gains (losses), net of income taxes (6) (115) (170) (199) 53 353 (316) ------ ------ ------ ------ ------ ------- ------- Adjustments related to universal life and investment-type product policy fees 0 0 (3) (9) 3 0 (9) Adjustments related to policyholder benefits and dividends (29) 30 61 (26) (46) (41) (11) Adjustments related to other expenses 11 31 45 118 15 (8) 178 Adjustments related to tax benefit (provision) 7 (22) (37) (29) 9 18 (57) ------ ------ ------ ------ ------ ------- ------- Adjustments related to net investment gains (losses), net of income taxes (1) (11) 39 66 54 (19) (31) 101 ------ ------ ------ ------ ------ ------- ------- Discontinued operations, net of income taxes 0 0 0 0 0 0 0 ------ ------ ------ ------ ------ ------- ------- Net income available to common shareholders 313 236 304 208 401 1,262 913 Preferred stock dividends 0 0 0 0 0 0 0 ------ ------ ------ ------ ------ ------- ------- Net income $ 313 $ 236 $ 304 $ 208 $ 401 $ 1,262 $ 913 ====== ====== ====== ====== ====== ======= =======
(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. 19 (METLIFE(R) LOGO) INDIVIDUAL OPERATIONS STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS - PRODUCT LEVEL UNAUDITED (DOLLARS IN MILLIONS)
For the Year-to-Date For the Three Months Ended Period Ended ----------------------------------------------------------- --------------------------- September 30, December 31, March 31, June 30, September 30, September 30, September 30, Traditional Life 2005 2005 2006 2006 2006 2005 2006 ------------- ------------ --------- -------- ------------- ------------- ------------- REVENUES Premiums $1,016 $1,134 $ 976 $1,011 $1,009 $2,965 $2,996 Universal life and investment-type product policy fees 0 0 0 0 0 0 0 Investment income, net 838 815 821 804 816 2,512 2,441 Other revenues 1 1 0 (1) 1 3 0 ------ ------ ------ ------ ------ ------ ------ 1,855 1,950 1,797 1,814 1,826 5,480 5,437 ------ ------ ------ ------ ------ ------ ------ EXPENSES Policyholder benefits and dividends 1,467 1,648 1,444 1,463 1,467 4,435 4,374 Interest credited to policyholder account balances 0 0 0 0 0 0 0 Capitalization of deferred policy acquisition costs (47) (53) (56) (52) (65) (150) (173) Amortization of deferred policy acquisition costs 58 46 53 45 44 158 142 Other expenses 228 222 207 213 271 618 691 ------ ------ ------ ------ ------ ------ ------ 1,706 1,863 1,648 1,669 1,717 5,061 5,034 ------ ------ ------ ------ ------ ------ ------ Operating earnings before provision (benefit) for income taxes 149 87 149 145 109 419 403 Provision (benefit) for income taxes 50 30 51 48 36 142 135 ------ ------ ------ ------ ------ ------ ------ OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $ 99 $ 57 $ 98 $ 97 $ 73 $ 277 $ 268 ====== ====== ====== ====== ====== ====== ====== Net investment gains (losses), net of income taxes 31 15 (44) (48) (14) 300 (106) Adjustments related to net investment gains (losses), net of income taxes (22) 20 40 19 (4) (29) 55 Discontinued operations, net of income taxes 0 0 0 0 0 0 0 ------ ------ ------ ------ ------ ------ ------ Net income available to common shareholders 108 92 94 68 55 548 217 Preferred stock dividends 0 0 0 0 0 0 0 ------ ------ ------ ------ ------ ------ ------ Net income $ 108 $ 92 $ 94 $ 68 $ 55 $ 548 $ 217 ====== ====== ====== ====== ====== ====== ======
20 (METLIFE(R) LOGO) INDIVIDUAL OPERATIONS STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS - PRODUCT LEVEL UNAUDITED (DOLLARS IN MILLIONS)
For the Year-to-Date For the Three Months Ended Period Ended ----------------------------------------------------------- --------------------------- September 30, December 31, March 31, June 30, September 30, September 30, September 30, Variable & Universal Life 2005 2005 2006 2006 2006 2005 2006 ------------- ------------ --------- -------- ------------- ------------- ------------- REVENUES Premiums $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Universal life and investment-type product policy fees 384 382 395 384 370 926 1,149 Investment income, net 196 190 203 197 199 499 599 Other revenues 0 (1) (3) 0 1 (3) (2) ---- ---- ---- ---- ---- ------ ------ 580 571 595 581 570 1,422 1,746 ---- ---- ---- ---- ---- ------ ------ EXPENSES Policyholder benefits and dividends 120 120 123 162 82 310 367 Interest credited to policyholder account balances 145 146 142 144 151 376 437 Capitalization of deferred policy acquisition costs (133) (136) (102) (110) (89) (270) (301) Amortization of deferred policy acquisition costs 105 113 110 104 97 218 311 Other expenses 266 275 208 214 184 574 606 ---- ---- ---- ---- ---- ------ ------ 503 518 481 514 425 1,208 1,420 ---- ---- ---- ---- ---- ------ ------ Operating earnings before provision (benefit) for income taxes 77 53 114 67 145 214 326 Provision (benefit) for income taxes 26 18 40 24 51 73 115 ---- ---- ---- ---- ---- ------ ------ OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $ 51 $ 35 $ 74 $ 43 $ 94 $ 141 $ 211 ==== ==== ==== ==== ==== ====== ====== Net investment gains (losses), net of income taxes (12) (22) (25) (36) 14 (11) (47) Adjustments related to net investment gains (losses), net of income taxes 7 10 9 6 (3) 3 12 Discontinued operations, net of income taxes 0 0 0 0 0 0 0 ---- ---- ---- ---- ---- ------ ------ Net income available to common shareholders 46 23 58 13 105 133 176 Preferred stock dividends 0 0 0 0 0 0 0 ---- ---- ---- ---- ---- ------ ------ Net income $ 46 $ 23 $ 58 $ 13 $105 $ 133 $ 176 ==== ==== ==== ==== ==== ====== ======
21 (METLIFE(R) LOGO) INDIVIDUAL OPERATIONS STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS - PRODUCT LEVEL UNAUDITED (DOLLARS IN MILLIONS)
For the Year-to-Date For the Three Months Ended Period Ended ----------------------------------------------------------- --------------------------- September 30, December 31, March 31, June 30, September 30, September 30, September 30, Annuities 2005 2005 2006 2006 2006 2005 2006 ------------- ------------ --------- -------- ------------- ------------- ------------- REVENUES Premiums $ 118 $ 101 $ 98 $ 85 $ 78 $ 254 $ 261 Universal life and investment-type product policy fees 318 334 356 367 365 701 1,088 Investment income, net 681 665 677 667 658 1,743 2,002 Other revenues 26 29 29 36 31 50 96 ------ ------ ------ ------ ------ ------ ------ 1,143 1,129 1,160 1,155 1,132 2,748 3,447 ------ ------ ------ ------ ------ ------ ------ EXPENSES Policyholder benefits and dividends 178 152 173 125 138 387 436 Interest credited to policyholder account balances 338 322 314 351 352 859 1,017 Capitalization of deferred policy acquisition costs (204) (220) (212) (253) (186) (496) (651) Amortization of deferred policy acquisition costs 147 144 139 140 146 285 425 Other expenses 427 422 400 477 387 978 1,264 ------ ------ ------ ------ ------ ------ ------ 886 820 814 840 837 2,013 2,491 ------ ------ ------ ------ ------ ------ ------ Operating earnings before provision (benefit) for income taxes 257 309 346 315 295 735 956 Provision (benefit) for income taxes 84 100 120 109 103 240 332 ------ ------ ------ ------ ------ ------ ------ OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $ 173 $ 209 $ 226 $ 206 $ 192 $ 495 $ 624 ====== ====== ====== ====== ====== ====== ====== Net investment gains (losses), net of income taxes (29) (99) (102) (105) 56 66 (151) Adjustments related to net investment gains (losses), net of income taxes 4 9 17 29 (12) (5) 34 Discontinued operations, net of income taxes 0 0 0 0 0 0 0 ------ ------ ------ ------ ------ ------ ------ Net income available to common shareholders 148 119 141 130 236 556 507 Preferred stock dividends 0 0 0 0 0 0 0 ------ ------ ------ ------ ------ ------ ------ Net income $ 148 $ 119 $ 141 $ 130 $ 236 $ 556 $ 507 ====== ====== ====== ====== ====== ====== ======
22 (METLIFE(R) LOGO) INDIVIDUAL OPERATIONS STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS - PRODUCT LEVEL UNAUDITED (DOLLARS IN MILLIONS)
For the Year-to-Date For the Three Months Ended Period Ended ----------------------------------------------------------- --------------------------- September 30, December 31, March 31, June 30, September 30, September 30, September 30, Other 2005 2005 2006 2006 2006 2005 2006 ------------- ------------ --------- -------- ------------- ------------- ------------- REVENUES Premiums $ 2 $ 29 $ 8 $ 6 $ 8 $ 2 $ 22 Universal life and investment-type product policy fees 44 34 42 48 44 99 134 Investment income, net 36 41 40 41 44 106 125 Other revenues 123 81 99 100 93 317 292 ---- ---- ---- --- ---- ---- ---- 205 185 189 195 189 524 573 ---- ---- ---- --- ---- ---- ---- EXPENSES Policyholder benefits and dividends 4 20 5 5 5 4 15 Interest credited to policyholder account balances 17 20 20 23 25 52 68 Capitalization of deferred policy acquisition costs 0 0 0 0 0 (1) 0 Amortization of deferred policy acquisition costs 0 0 0 0 0 0 0 Other expenses 173 128 149 156 145 428 450 ---- ---- ---- --- ---- ---- ---- 194 168 174 184 175 483 533 ---- ---- ---- --- ---- ---- ---- Operating earnings before provision (benefit) for income taxes 11 17 15 11 14 41 40 Provision (benefit) for income taxes 4 6 5 4 6 14 15 ---- ---- ---- --- ---- ---- ---- OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $ 7 $ 11 $ 10 $ 7 $ 8 $ 27 $ 25 ==== ==== ==== === ==== ==== ==== Net investment gains (losses), net of income taxes 4 (9) 1 (10) (3) (2) (12) Adjustments related to net investment gains (losses), net of income taxes 0 0 0 0 0 0 0 Discontinued operations, net of income taxes 0 0 0 0 0 0 0 ---- ---- ---- --- ---- ---- ---- Net income available to common shareholders 11 2 11 (3) 5 25 13 Preferred stock dividends 0 0 0 0 0 0 0 ---- ---- ---- --- ---- ---- ---- Net income $ 11 $ 2 $ 11 ($3) $ 5 $ 25 $ 13 ==== ==== ==== === ==== ==== ====
23 (METLIFE(R) LOGO) INDIVIDUAL OPERATIONS PREMIUMS AND DEPOSITS BY PRODUCT
For the Three Months Ended --------------------------------------------------------------- September 30, December 31, March 31, June 30, September 30, Unaudited (Dollars in millions) 2005 2005 2006 2006 2006 ------------- ------------ --------- -------- ------------- PREMIUMS AND DEPOSITS BY PRODUCT (1) TOTAL (2) Life First Year Premiums and Deposits Traditional Life $ 52 $ 54 $ 50 $ 50 $ 46 Variable Life 1st Year excluding Single Premium COLI/BOLI 56 63 50 55 48 Universal Life 1st Year excluding Single Premium COLI/BOLI 245 228 203 177 147 Single Premium COLI/BOLI 4 15 6 6 3 ------ ------ ------ ------ ------ Total Life First Year Premiums & Deposits (3) 357 360 309 288 244 Life Renewal Premiums and Deposits Traditional Life 1,033 1,227 959 1,049 1,036 Variable & Universal Life 532 551 600 515 579 Annuities (4) 3,624 3,570 3,843 4,229 3,531 ------ ------ ------ ------ ------ Total Premiums and Deposits $5,546 $5,708 $5,711 $6,081 $5,390 ====== ====== ====== ====== ====== PREMIUMS AND DEPOSITS TO SEPARATE ACCOUNTS Variable & Universal Life $ 297 $ 307 $ 283 $ 276 $ 289 Annuities 2,306 2,479 2,532 2,928 2,213 ------ ------ ------ ------ ------ Total Separate Accounts $2,603 $2,786 $2,815 $3,204 $2,502 ====== ====== ====== ====== ====== ANNUITY DEPOSITS BY TYPE Fixed Annuity Deposits $496 $ 464 $ 520 $ 430 $ 594 Variable Annuity Deposits 3,128 3,106 3,323 3,799 2,937 ------ ------ ------ ------ ------ Total Annuity Deposits $3,624 $3,570 $3,843 $4,229 $3,531 ====== ====== ====== ====== ======
(1) Statutory premiums direct and assumed. (2) Includes premiums and deposits to separate accounts and excludes Company sponsored internal exchanges. (3) Of the $244 million of First Year Life Premiums and Deposits received during the three months ended September 30, 2006, approximately 48% were distributed through MetLife agents, 16% through New England Financial agents, 33% through MetLife's Independent Distribution channel and 3% through other distribution channels. (4) Of the $3,531 million of Annuity Deposits received during the three months ended September 30, 2006, approximately 26% were distributed through MetLife agents, 6% through New England Financial agents, 56% through MetLife's Independent Distribution channel and 12% through MetLife Resources representatives. 24 (METLIFE(R) LOGO) INDIVIDUAL OPERATIONS ADDITIONAL STATISTICAL INFORMATION
For the Three Months Ended ------------------------------------------------------------------- September 30, December 31, March 31, June 30, September 30, Unaudited 2005 2005 2006 2006 2006 ------------- ------------ --------- -------- ------------- PERCENTAGE OF PREMIUMS AND DEPOSITS TO SEPARATE ACCOUNTS, EXCLUDING TRANSFERS FROM GENERAL ACCOUNT: Variable & Universal Life 33.4% 33.6% 31.3% 33.8% 32.5% Annuities 63.6% 69.4% 65.9% 69.2% 62.7% MORTALITY AS A PERCENTAGE OF EXPECTED 86.4% 84.9% 94.0% 85.1% 82.4% LAPSES / SURRENDERS (GENERAL AND SEPARATE ACCOUNT) (1) Traditional Life 6.1% 6.0% 6.0% 5.9% 5.7% Variable & Universal Life 6.2% 6.1% 6.3% 6.0% 5.8% Variable Annuities 8.4% 8.9% 9.5% 10.0% 10.2% Fixed Annuities 6.4% 8.0% 8.7% 9.6% 10.2% NUMBER OF SALES REPRESENTATIVES MetLife Distribution 5,774 5,804 5,954 6,002 5,996 New England Financial 2,228 2,006 2,068 2,071 2,025 Independent Distribution Wholesalers 279 229 220 217 215 MetLife Resources 857 794 751 739 738 Walnut Street and Tower Square Securities 1,869 1,676 1,632 1,564 1,520 P&C Specialists 672 682 658 657 633 ------ ------ ------ ------ ------ Total Agents 11,679 11,191 11,283 11,250 11,127 ====== ====== ====== ====== ======
(1) Lapses/Surrenders rates are calculated for the most recent 12 months of experience. 25 (METLIFE(R) 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 ------------------------------------------------------------------- September 30, December 31, March 31, June 30, September 30, Traditional Life 2005 2005 2006 2006 2006 ------------- ------------ --------- -------- ------------- Balance, beginning of period $49,582 $50,562 $50,944 $50,977 $51,177 Premiums and deposits (1) 1,101 1,239 1,061 1,093 1,091 Interest on reserves 514 518 511 520 523 Surrenders and withdrawals (443) (470) (504) (433) (432) Benefit payments (498) (459) (572) (498) (488) Other 306(2) (446) (463) (482) (465) ------- ------- ------- ------- ------- Balance, end of period $50,562 $50,944 $50,977 $51,177 $51,406 ======= ======= ======= ======= =======
For the Three Months Ended ------------------------------------------------------------------- September 30, December 31, March 31, June 30, September 30, Variable & Universal Life 2005 2005 2006 2006 2006 ------------- ------------ --------- -------- ------------- Balance, beginning of period $10,154 $14,315 $14,852 $15,042 $15,268 Premiums and deposits (1) (3) 548 567 572 482 479 Interest on reserves 151 148 142 145 151 Surrenders and withdrawals (178) (185) (168) (171) (218) Net transfers from (to) separate account 52 45 49 48 62 Policy charges (350) (351) (363) (364) (365) Benefit payments (36) (34) (48) (44) (37) Other 3,974(2) 347 6 130 (6) ------- ------- ------- ------- ------- Balance, end of period $14,315 $14,852 $15,042 $15,268 $15,334 ======= ======= ======= ======= =======
For the Three Months Ended ------------------------------------------------------------------- September 30, December 31, March 31, June 30, September 30, Annuities 2005 2005 2006 2006 2006 ------------- ------------ --------- -------- ------------- Balance, beginning of period $32,421 $46,136 $45,732 $45,293 $44,775 Premiums and deposits (1) (3) 1,410 1,298 1,398 1,456 1,475 Interest on reserves 401 398 395 448 418 Surrenders and withdrawals (1,014) (1,178) (1,231) (1,552) (1,341) Net transfers from (to) separate account (544) (625) (621) (521) (495) Policy charges (2) (2) (2) (2) (1) Benefit payments (309) (297) (326) (349) (326) Other 13,773(2) 2 (52) 2 13 ------- ------- ------- ------- ------- Balance, end of period $46,136 $45,732 $45,293 $44,775 $44,518 ======= ======= ======= ======= =======
SEPARATE ACCOUNT LIABILITIES
For the Three Months Ended ------------------------------------------------------------------- September 30, December 31, March 31, June 30, September 30, Variable & Universal Life 2005 2005 2006 2006 2006 ------------- ------------ --------- -------- ------------- Balance, beginning of period $7,900 $9,164 $9,307 $9,769 $9,593 Premiums and deposits (1) 297 307 283 276 289 Investment performance 318 155 492 (134) 192 Surrenders and withdrawals (137) (177) (158) (160) (140) Net transfers from (to) fixed account (52) (45) (51) (48) (64) Policy charges (89) (96) (80) (110) (74) Other 927(2) (1) (24) 0 0 ------ ------ ------ ------ ------ Balance, end of period $9,164 $9,307 $9,769 $9,593 $9,796 ====== ====== ====== ====== ======
For the Three Months Ended ------------------------------------------------------------------- September 30, December 31, March 31, June 30, September 30, Annuities 2005 2005 2006 2006 2006 ------------- ------------ --------- -------- ------------- Balance, beginning of period $39,771 $69,146 $71,764 $75,861 $75,587 Premiums and deposits (1) 2,306 2,479 2,532 2,928 2,213 Investment performance 2,701 1,507 3,255 (1,483) 2,584 Surrenders and withdrawals (1,723) (1,724) (2,026) (1,947) (2,008) Net transfers from (to) fixed account 544 625 621 521 495 Policy charges (266) (269) (280) (292) (301) Other 25,813(2) 0 (5) (1) 0 ------- ------- ------- ------- ------- Balance, end of period $69,146 $71,764 $75,861 $75,587 $78,570 ======= ======= ======= ======= =======
(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 or variable annuity product. 26 (METLIFE(R) LOGO) INDIVIDUAL OPERATIONS INSURANCE EXPENSES AND OTHER EXPENSES BY MAJOR CATEGORY
For the Three Months Ended ------------------------------------------------------------------- September 30, December 31, March 31, June 30, September 30, Unaudited (Dollars in millions) 2005 2005 2006 2006 2006 ------------- ------------ --------- -------- ------------- INSURANCE EXPENSES (NET OF CAPITALIZATION OF DAC) Insurance Expenses $ 936 $ 941 $830 $ 914 $855 DAC Capitalization (1) (401) (426) (384) (429) (353) ------ ------ ---- ------ ---- Net $ 535 $ 515 $446 $ 485 $502 ====== ====== ==== ====== ==== OTHER EXPENSES BY MAJOR CATEGORY Commissions $ 329 $ 347 $315 $ 350 $282 Other deferrable expenses 126 140 120 146 132 Direct and allocated expenses, not deferred 422 410 334 386 371 Pension and other post-retirement benefit costs 29 30 34 3 35 Premium taxes and other taxes, licenses and fees 30 14 27 29 35 ------ ------ ---- ------ ---- Subtotal Insurance Expenses 936 941 830 914 855 Broker-dealer and other expenses 177 132 155 159 147 Reinsurance allowances (19) (26) (21) (13) (15) ------ ------ ---- ------ ---- Total Other Expenses $1,094 $1,047 $964 $1,060 $987 ====== ====== ==== ====== ====
(1) Excludes $17 million, $17 million, $14 million, $14 million and $13 million of DAC capitalization related to reinsurance allowances for the three months ended September 30, 2005, December 31, 2005, March 31, 2006, June 30, 2006, and September 30, 2006, respectively. 27 (METLIFE(R) LOGO) INDIVIDUAL OPERATIONS SPREADS BY PRODUCT UNAUDITED
For the Three Months Ended ------------------------------------------------------------------- September 30, December 31, March 31, June 30, September 30, VARIABLE & UNIVERSAL LIFE 2005 2005 2006 2006 2006 ------------- ------------ --------- -------- ------------- ANNUALIZED GENERAL ACCOUNT SPREADS BY PRODUCT (%) Investment income yield 6.91% 6.63% 6.69% 6.41% 6.35% Average crediting rate 4.65% 4.67% 4.56% 4.54% 4.53% ---- ---- ---- ---- ---- Spread 2.26% 1.96% 2.13% 1.87% 1.82% ==== ==== ==== ==== ====
For the Three Months Ended ------------------------------------------------------------------- September 30, December 31, March 31, June 30, September 30, ANNUITIES 2005 2005 2006 2006 2006 ------------- ------------ --------- -------- ------------- ANNUALIZED GENERAL ACCOUNT SPREADS BY PRODUCT (%) Investment income yield 6.41% 6.32% 6.28% 6.28% 6.27% Average crediting rate 3.64% 3.64% 3.65% 3.66% 3.67% ---- ---- ---- ---- ---- Spread 2.77% 2.68% 2.63% 2.62% 2.60% ==== ==== ==== ==== ====
28 (METLIFE(R) LOGO) AUTO & HOME OPERATIONS STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS - TOTAL UNAUDITED (DOLLARS IN MILLIONS)
For the Year-to-Date For the Three Months Ended Period Ended --------------------------------------------------------------- ---------------------------- September 30, December 31, March 31, June 30, September 30, September 30, September 30, Auto & Home Operations 2005 2005 2006 2006 2006 2005 2006 ------------- ------------ --------- -------- ------------- ------------- ------------- REVENUES Earned premiums $716 $729 $724 $726 $732 $2,182 $2,182 Investment income, net 46 46 45 42 46 135 133 Other revenues 8 8 7 8 3 25 18 ---- --- --- --- ---- ---- ---- 770 783 776 776 781 2,342 2,333 ---- --- --- --- ---- ---- ---- EXPENSES Losses and loss adjustment expense 615 454 451 432 426 1,540 1,309 Other expenses 209 218 203 211 210 613 624 ---- --- --- --- ---- ---- ---- 824 672 654 643 636 2,153 1,933 ---- --- --- --- ---- ---- ---- Operating earnings before provision (benefit) for income taxes (54) 111 122 133 145 189 400 Provision (benefit) for income taxes (28) 30 29 34 38 38 101 ---- --- --- --- ---- ---- ---- OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS ($26) $81 $93 $99 $107 $151 $299 ==== === === === ==== ==== ==== NET INCOME RECONCILIATION - ------------------------- Operating earnings available to common shareholders ($26) $81 $93 $99 $107 $151 $299 ---- --- --- --- ---- ---- ---- Net investment gains (losses) (5) (3) 1 (4) (1) (9) (4) Minority interest - net investment gains (losses) 0 0 0 0 0 0 0 Net investment gains (losses) tax benefit (provision) 2 1 (3) 4 0 3 1 ---- --- --- --- ---- ---- ---- Net investment gains (losses), net of income taxes (3) (2) (2) 0 (1) (6) (3) ---- --- --- --- ---- ---- ---- 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 0 0 0 0 0 0 0 Adjustments related to other expenses 0 0 0 0 0 0 0 Adjustments related to tax benefit (provision) 0 0 0 0 0 0 0 ---- --- --- --- ---- ---- ---- Adjustments related to net investment gains (losses), net of income taxes 0 0 0 0 0 0 0 ---- --- --- --- ---- ---- ---- Discontinued operations, net of income taxes 0 0 0 0 0 0 0 ---- --- --- --- ---- ---- ---- Net income available to common shareholders (29) 79 91 99 106 145 296 Preferred stock dividends 0 0 0 0 0 0 0 ---- --- --- --- ---- ---- ---- Net income ($29) $79 $91 $99 $106 $145 $296 ==== === === === ==== ==== ====
29 (METLIFE(R) LOGO) AUTO & HOME OPERATIONS STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS - PRODUCT LEVEL UNAUDITED (DOLLARS IN MILLIONS)
For the Year-to-Date For the Three Months Ended Period Ended --------------------------------------------------------------- ---------------------------- September 30, December 31, March 31, June 30, September 30, September 30, September 30, Auto 2005 2005 2006 2006 2006 2005 2006 ------------- ------------ --------- -------- ------------- ------------- ------------- REVENUES Earned premiums $534 $525 $517 $516 $519 $1,598 $1,552 Investment income, net 34 37 34 32 34 101 100 Other revenues 6 5 6 7 4 18 17 --- --- --- --- --- ----- ----- 574 567 557 555 557 1,717 1,669 --- --- --- --- --- ----- ----- EXPENSES Losses and loss adjustment expense 339 355 334 321 295 1,059 950 Other expenses 143 150 137 145 141 421 423 --- --- --- --- --- ----- ----- 482 505 471 466 436 1,480 1,373 --- --- --- --- --- ----- ----- Operating earnings before provision (benefit) for income taxes 92 62 86 89 121 237 296 Provision (benefit) for income taxes 27 13 21 21 33 62 75 --- --- --- --- --- ----- ----- OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $ 65 $ 49 $ 65 $ 68 $ 88 $ 175 $ 221 === === === === === ===== ===== Net investment gains (losses), net of income taxes (2) (2) (1) 0 (1) (4) (2) Adjustments related to net investment gains (losses), net of income taxes 0 0 0 0 0 0 0 Discontinued operations, net of income taxes 0 0 0 0 0 0 0 --- --- --- --- --- ----- ----- Net income available to common shareholders 63 47 64 68 87 171 219 Preferred stock dividends 0 0 0 0 0 0 0 --- --- --- --- --- ----- ----- Net income $ 63 $ 47 $ 64 $ 68 $ 87 $ 171 $ 219 === === === === === ===== =====
30 (METLIFE(R) LOGO) AUTO & HOME OPERATIONS STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS - PRODUCT LEVEL UNAUDITED (DOLLARS IN MILLIONS)
For the For the Three Months Ended Year-to-Date Period Ended --------------------------------------------------------------- ---------------------------- September 30, December 31, March 31, June 30, September 30, September 30, September 30, Homeowners & Other 2005 2005 2006 2006 2006 2005 2006 ------------- ------------ --------- -------- ------------- ------------- ------------- REVENUES Earned premiums $182 $204 $207 $210 $213 584 $630 Investment income, net 12 9 11 10 12 34 33 Other revenues 2 3 1 1 (1) 7 1 ---- ---- ---- ---- ---- --- ---- 196 216 219 221 224 625 664 ---- ---- ---- ---- ---- --- ---- EXPENSES Losses and loss adjustment expense 276 99 117 111 131 481 359 Other expenses 66 68 66 66 69 192 201 ---- ---- ---- ---- ---- --- ---- 342 167 183 177 200 673 560 ---- ---- ---- ---- ---- --- ---- Operating earnings before provision (benefit) for income taxes (146) 49 36 44 24 (48) 104 Provision (benefit) for income taxes (55) 17 8 13 5 (24) 26 ---- ---- ---- ---- ---- --- ---- OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS ($91) $32 $28 $31 $19 ($24) $78 ==== ==== ==== ==== ==== === ==== Net investment gains (losses), net of income taxes (1) 0 (1) 0 0 (2) (1) Adjustments related to net investment gains (losses), net of income taxes 0 0 0 0 0 0 0 Discontinued operations, net of income taxes 0 0 0 0 0 0 0 ---- ---- ---- ---- ---- --- ---- Net income available to common shareholders (92) 32 27 31 19 (26) 77 Preferred stock dividends 0 0 0 0 0 0 0 ---- ---- ---- ---- ---- --- ---- Net income ($92) $32 $27 $31 $19 ($26) $77 ==== ==== ==== ==== ==== === ====
31 (METLIFE(R) LOGO) AUTO & HOME OPERATIONS WRITTEN PREMIUMS BY PRODUCT AND SELECTED FINANCIAL INFORMATION AND SUPPLEMENTAL DATA
For the Three Months Ended --------------------------------------------------------------- September 30, December 31, March 31, June 30, September 30, Unaudited (Dollars in millions) 2005 2005 2006 2006 2006 ------------- ------------ --------- -------- ------------- WRITTEN PREMIUMS BY PRODUCT Preferred/Standard Automobile $528 $492 $498 $507 $531 Non-Standard Automobile 14 12 12 11 11 Homeowners & Other 211 200 186 226 239 ---- ---- ---- ---- ---- Total $753 $704 $696 $744 $781 ==== ==== ==== ==== ==== SELECTED FINANCIAL INFORMATION AND SUPPLEMENTAL DATA TOTAL AUTO & HOME Loss and loss adjustment expense ratio 85.8% 62.3% 62.4% 59.3% 58.3% Other expense ratio 28.5% 29.2% 27.2% 28.6% 28.1% ---- ---- ---- ---- ---- Total combined ratio (1) 114.3% 91.5% 89.6% 87.9% 86.4% Effect of catastrophe losses (2) 27.5% 8.5% 3.0% 3.4% 5.2% ---- ---- ---- ---- ---- Combined ratio excluding catastrophes 86.8% 83.0% 86.6% 84.5% 81.2% ==== ==== ==== ==== ==== AUTO Loss and loss adjustment expense ratio 63.3% 67.6% 64.7% 62.2% 56.8% Other expense ratio 26.0% 27.8% 25.7% 27.1% 26.3% ---- ---- ---- ---- ---- Total combined ratio (1) 89.3% 95.4% 90.4% 89.3% 83.1% Effect of catastrophe losses (2) 2.7% 3.4% 0.8% 1.3% 0.8% ---- ---- ---- ---- ---- Combined ratio excluding catastrophes 86.6% 92.0% 89.6% 88.0% 82.3% ==== ==== ==== ==== ==== HOMEOWNERS & OTHER Loss and loss adjustment expense ratio 151.6% 48.5% 56.5% 52.9% 61.1% Other expense ratio 35.8% 32.9% 31.5% 31.0% 32.9% ---- ---- ---- ---- ---- Total combined ratio (1) 187.4% 81.4% 88.0% 83.9% 94.0% Effect of catastrophe losses (2) 100.0% 20.6% 8.4% 8.1% 16.0% ---- ---- ---- ---- ---- Combined ratio excluding catastrophes 87.4% 60.8% 79.6% 75.8% 78.0% ==== ==== ==== ==== ==== PRE-TAX CATASTROPHE LOSSES Auto $13 $ 17 $ 4 $ 7 $ 4 Homeowners & Other 156 36 17 17 34 ---- ---- ---- ---- ---- Total $169 $ 53 $ 21 $ 24 $ 38 ==== ==== ==== ==== ==== CATASTROPHE POINTS ON COMBINED RATIOS 27.5 8.5 3.0 3.4 5.2 NUMBER OF SALES REPRESENTATIVES 85 100 98 93 93
(1) The combined ratio reflects payment fees as a credit to Other expenses for the three months ended September 30, 2005, December 31, 2005, March 31, 2006, June 30, 2006, and September 2006, which resulted in a 0.7, 0.7, 0.7, 0.6, and 0.6 of a percentage point decrease in the combined ratio for the periods ended, respectively. The decreases for Auto and Homeowners & Other were 0.8 and 0.5 of a percentage point, respectively, for September 30, 2005, 0.8 and 0.5 of a percentage point, respectively, for December 31, 2005, 0.8 and 0.4 of a percentage point, respectively, for March 31, 2006, 0.7 and 0.4 of a percentage point, respectively, for June 30, 2006, and 0.7 and 0.4 of a percentage point, respectively, for September 30, 2006 (2) Includes the effect of both catastrophe losses and $32 million in reinstatement reinsurance premiums within Auto ($2 million) and Homeowners & Other ($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 & Other ($10 million). 32 (METLIFE(R) LOGO) INTERNATIONAL OPERATIONS STATEMENT OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
For the For the Three Months Ended Year-to-Date Period Ended --------------------------------------------------------------- ---------------------------- September 30, December 31, March 31, June 30, September 30, September 30, September 30, Unaudited (Dollars in millions) 2005 2005 2006 2006 2006 2005 2006 ------------- ------------ --------- -------- ------------- ------------- ------------- REVENUES Premiums $614 $636 $631 $676 $675 $1,550 $1,982 Universal life and investment-type product policy fees 170 165 184 194 205 414 583 Investment income, net 238 262 235 238 290 582 763 Other revenues 9 9 4 4 8 11 16 ----- ----- ----- ----- ----- ----- ----- 1,031 1,072 1,054 1,112 1,178 2,557 3,344 ----- ----- ----- ----- ----- ----- ----- EXPENSES Policyholder benefits and dividends 578 600 527 600 581 1,456 1,708 Interest credited to policyholder account balances 84 92 87 86 93 186 266 Capitalization of deferred policy acquisition costs (137) (141) (151) (145) (146) (400) (442) Amortization of deferred policy acquisition costs 68 43 82 78 96 180 256 Other expenses 359 441 396 413 438 877 1,247 ----- ----- ----- ----- ----- ----- ----- 952 1,035 941 1,032 1,062 2,299 3,035 ----- ----- ----- ----- ----- ----- ----- Operating earnings before provision (benefit) for income taxes 79 37 113 80 116 258 309 Provision (benefit) for income taxes 13 (11) 38 18 44 73 100 ----- ----- ----- ----- ----- ----- ----- OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $66 $48 $75 $62 $72 $185 $209 ===== ===== ===== ===== ===== ===== ===== NET INCOME RECONCILIATION - ------------------------- Operating earnings available to common shareholders $66 $48 $75 $62 $72 $185 $209 ----- ----- ----- ----- ----- ----- ----- Net investment gains (losses) 5 (7) 20 13 (17) 12 16 Minority interest - net investment gains (losses) 0 0 0 0 0 0 0 Net investment gains (losses) tax benefit (provision) (2) 3 (6) (5) 4 (4) (7) ----- ----- ----- ----- ----- ----- ----- Net investment gains (losses), net of income taxes 3 (4) 14 8 (13) 8 9 ----- ----- ----- ----- ----- ----- ----- 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 (54) (21) 22 49 (73) (56) (2) Adjustments related to other expenses 0 0 0 0 0 0 0 Adjustments related to tax benefit (provision) 19 7 (7) (18) 25 20 0 ----- ----- ----- ----- ----- ----- ----- Adjustments related to net investment gains (losses), net of income taxes (1) (35) (14) 15 31 (48) (36) (2) ----- ----- ----- ----- ----- ----- ----- Discontinued operations, net of income taxes 7 0 0 0 0 5 0 ----- ----- ----- ----- ----- ----- ----- Net income available to common shareholders 41 30 104 101 11 162 216 Preferred stock dividends 0 0 0 0 0 0 0 ----- ----- ----- ----- ----- ----- ----- Net income $41 $30 $104 $101 $11 $162 $216 ===== ===== ===== ===== ===== ===== ===== NUMBER OF PROFESSIONAL SALES REPRESENTATIVES 3,861 3,783 3,782 3,982 3,946
(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. 33 (METLIFE(R) LOGO) REINSURANCE OPERATIONS STATEMENT OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
For the For the Three Months Ended Year-to-Date Period Ended --------------------------------------------------------------- ---------------------------- September 30, December 31, March 31, June 30, September 30, September 30, September 30, Unaudited (Dollars in millions) 2005 2005 2006 2006 2006 2005 2006 ------------- ------------ --------- -------- ------------- ------------- ------------- REVENUES Premiums $974 $1,062 $993 $1,078 $1,076 $2,807 $3,147 Investment income, net 158 161 174 156 171 445 501 Other revenues 13 13 15 13 19 45 47 ----- ----- ----- ----- ----- ----- ----- 1,145 1,236 1,182 1,247 1,266 3,297 3,695 ----- ----- ----- ----- ----- ----- ----- EXPENSES Claims and other policy benefits 779 860 813 871 849 2,346 2,533 Interest credited to policyholder account balances 64 57 63 48 46 163 157 Policy acquisition costs and other insurance expenses 162 159 158 174 185 462 517 Other expenses 48 57 63 60 84 139 207 ----- ----- ----- ----- ----- ----- ----- 1,053 1,133 1,097 1,153 1,164 3,110 3,414 ----- ----- ----- ----- ----- ----- ----- Operating earnings before provision (benefit) for income taxes and minority interest 92 103 85 94 102 187 281 Provision (benefit) for income taxes 16 17 12 16 17 28 45 ----- ----- ----- ----- ----- ----- ----- Operating earnings available to common shareholders before minority interest 76 86 73 78 85 159 236 Elimination of minority interest, before tax 50 55 49 49 56 104 154 ----- ----- ----- ----- ----- ----- ----- CONTRIBUTION TO METLIFE $26 $31 $24 $29 $29 $55 $82 ===== ===== ===== ===== ===== ===== ===== NET INCOME RECONCILIATION - ------------------------- Operating earnings available to common shareholders $26 $31 $24 $29 $29 $55 $82 ----- ----- ----- ----- ----- ----- ----- Net investment gains (losses) 7 (6) 8 (15) 3 28 (4) Minority interest - net investment gains (losses) (1) 3 (2) 4 0 (8) 2 Net investment gains (losses) tax benefit (provision) (2) 1 (2) 4 (2) (4) 0 ----- ----- ----- ----- ----- ----- ----- Net investment gains (losses), net of income taxes 4 (2) 4 (7) 1 16 (2) ----- ----- ----- ----- ----- ----- ----- 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 0 0 0 0 0 0 0 Adjustments related to other expenses (4) (1) (3) 8 (1) (9) 4 Adjustments related to tax benefit (provision) 2 0 1 (3) 1 2 (1) ----- ----- ----- ----- ----- ----- ----- Adjustments related to net investment gains (losses), net of income taxes (1) (2) (1) (2) 5 0 (7) 3 ----- ----- ----- ----- ----- ----- ----- Discontinued operations, net of income taxes 0 0 0 0 0 0 0 ----- ----- ----- ----- ----- ----- ----- Net income available to common shareholders 28 28 26 27 30 64 83 Preferred stock dividends 0 0 0 0 0 0 0 ----- ----- ----- ----- ----- ----- ----- Net income $28 $28 $26 $27 $30 $64 $83 ===== ===== ===== ===== ===== ===== =====
(1) Adjustments related to net investment gains (losses), net of income taxes, include amortization of deferred policy acquisition costs. 34 REINSURANCE OPERATIONS PRE-TAX AND PRE-MINORITY INTEREST OPERATING EARNINGS BY REGION AND RESERVES BY REGION
For the Three Months Ended ------------------------------------------------------------------------- September 30, December 31, March 31, June 30, September 30, Unaudited (Dollars in millions) 2005 2005 2006 2006 2006 ------------- ------------ --------- -------- ------------- PRE-TAX AND PRE-MINORITY INTEREST OPERATING EARNINGS BY REGION (1) United States $ 78 $ 80 $ 66 $ 66 $ 75 Canada 21 20 7 9 12 Asia-Pacific 4 18 7 8 19 Other international markets 15 12 15 17 9 Corporate (26) (27) (10) (6) (13) ------- ------- ------- ------- ------- Total pre-tax and pre-minority interest operating earnings $ 92 $ 103 $ 85 $ 94 $ 102 ======= ======= ======= ======= ======= POLICY BENEFITS AND INTEREST SENSITIVE CONTRACT LIABILITIES BY REGION Traditional U.S. $ 3,966 $ 4,030 $ 4,157 $ 4,239 $ 4,328 Asset intensive 4,497 4,657 4,773 4,911 5,022 Other 90 100 77 90 68 ------- ------- ------- ------- ------- Total U.S. 8,553 8,787 9,007 9,240 9,418 ------- ------- ------- ------- ------- Canada 1,507 1,596 1,622 1,780 1,781 Asia-Pacific 629 688 708 752 780 Other international markets 677 680 719 774 786 ------- ------- ------- ------- ------- Total International 2,813 2,964 3,049 3,306 3,347 ------- ------- ------- ------- ------- Total policy benefits and interest sensitive contract liabilities $11,366 $11,751 $12,056 $12,546 $12,765 ======= ======= ======= ======= =======
- ---------- (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 upon 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. 35 CORPORATE, OTHER & ELIMINATIONS STATEMENT OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
For the Year-to-Date For the Three Months Ended Period Ended --------------------------------------------------------------- ---------------------------- September 30, December 31, March 31, June 30, September 30, September 30, September 30, Unaudited (Dollars in millions) 2005 2005 2006 2006 2006 2005 2006 ------------- ------------ --------- -------- ------------- ------------- ------------- REVENUES Premiums $ 6 $12 $ 9 $10 $ 7 $ 10 $ 26 Universal life and investment-type product policy fees 1 0 0 0 0 1 0 Investment income, net 212 255 296 308 219 558 823 Other revenues 5 17 7 6 12 13 25 --- --- --- --- --- ------ ----- 224 284 312 324 238 582 874 --- --- --- --- --- ------ ----- EXPENSES Policyholder benefits and dividends 12 16 7 13 13 (31) 33 Interest credited to policyholder account balances 0 0 0 0 0 0 0 Interest credited to bank deposits 30 37 43 48 51 72 142 Interest expense 166 171 175 183 200 380 558 Other expenses 59 135 93 111 70 160 274 --- --- --- --- --- ------ ----- 267 359 318 355 334 581 1,007 --- --- --- --- --- ------ ----- Operating earnings before provision (benefit) for income taxes (43) (75) (6) (31) (96) 1 (133) Provision (benefit) for income taxes (72) (45) (48) (50) (123) (115) (221) --- --- --- --- --- ------ ----- Operating earnings 29 (30) 42 19 27 116 88 Preferred stock dividends 31 32 33 33 34 31 100 --- --- --- --- --- ------ ----- OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS ($2)(1) ($62) $ 9 ($14) ($7) $ 85 ($12) === === === === === ====== ===== NET INCOME RECONCILIATION - ------------------------- Operating earnings available to common shareholders ($2) ($62) $ 9 ($14) ($7) $ 85 ($12) --- --- --- --- --- ------ ----- Net investment gains (losses) 73 118 (49) (64) (40) 1,273 (153) Minority interest - net investment gains (losses) 0 0 0 0 0 0 0 Net investment gains (losses) tax benefit (provision) (25) (44) 16 21 12 (450) 49 --- --- --- --- --- ------ ----- Net investment gains (losses), net of income taxes 48 74 (33) (43) (28) 823 (104) --- --- --- --- --- ------ ----- 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 0 0 0 0 0 0 0 Adjustments related to other expenses 0 0 0 0 0 0 0 Adjustments related to tax benefit (provision) 0 0 0 0 0 0 0 --- --- --- --- --- ------ ----- Adjustments related to net investment gains (losses), net of income taxes 0 0 0 0 0 0 0 --- --- --- --- --- ------ ----- Discontinued operations, net of income taxes 0 12 0 30 0 151 30 --- --- --- --- --- ------ ----- Net income available to common shareholders 46 24 (24) (27) (35) 1,059 (86) Preferred stock dividends 31 32 33 33 34 31 100 --- --- --- --- --- ------ ----- Net income $77 $56 $ 9 $ 6 ($1) $1,090 $ 14 === === === === === ====== =====
- ---------- 1) 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. 36 (METLIFE(R) LOGO) METLIFE, INC. INVESTMENT RESULTS BY ASSET CATEGORY AND ANNUALIZED YIELDS
At or For the Three Months Ended ----------------------------------------------------------------------- September 30, December 31, March 31, June 30, September 30, Unaudited (Dollars in millions) 2005 2005 2006 2006 2006 ------------- ------------ --------- -------- ------------- FIXED MATURITIES Yield (1) 6.03% 6.17% 6.14% 6.10% 6.17% Income (2) $ 2,858 $ 2,954 $ 2,996 $ 2,986 $ 3,015 Investment gains (losses) ($98) ($567) ($412) ($381) ($128) Ending Carrying Value (2) $232,041 $230,875 $240,711 $237,612 $243,136 MORTGAGE AND CONSUMER LOANS Yield (3) 6.96% 6.85% 6.68% 6.41% 6.53% Income $ 593 $ 591 $ 585 $ 574 $ 602 Investment gains (losses) $ 13 $ 23 $ 4 $ 3 ($8) Ending Carrying Value $ 36,094 $ 37,190 $ 37,351 $ 38,665 $40,141 REAL ESTATE AND REAL ESTATE JOINT VENTURES Yield (3) 10.72% 8.59% 12.50% 11.37% 8.73% Income (4) $ 118 $ 100 $ 146 $ 135 $ 103 Investment gains (losses) (5) $ 51 $ 166 $ 17 $ 54 $ 118 Ending Carrying Value $ 4,705 $ 4,665 $ 4,700 $ 4,786 $ 4,931 POLICY LOANS Yield (3) 6.15% 5.80% 5.84% 5.89% 6.10% Income $ 152 $ 143 $ 146 $ 147 $ 154 Ending Carrying Value $ 9,841 $ 9,981 $ 9,987 $ 10,065 $ 10,115 EQUITY SECURITIES AND OTHER LIMITED PARTNERSHIP INTERESTS Yield (3) 9.69% 13.15% 12.86% 14.83% 10.41% Income $ 170 $ 232 $ 235 $ 278 $ 198 Investment gains (losses) $ 20 $ 32 $ 27 $ 25 ($7) Ending Carrying Value $ 7,403 $ 7,614 $ 7,870 $ 8,007 $ 7,863 CASH AND SHORT-TERM INVESTMENTS Yield (3) 3.45% 4.22% 4.63% 4.70% 5.42% Income $ 122 $85 $ 80 $ 85 $ 120 Investment gains (losses) $ 0 ($1) ($1) ($1) $ 1 Ending Carrying Value $ 11,431 $ 7,324 $ 8,512 $ 8,193 $ 11,763 OTHER INVESTED ASSETS Yield (3) 10.00% 9.65% 8.92% 7.94% 10.02% Income (6) $ 186 $ 178 $ 171 $ 168 $ 222 Investment gains (losses) (6) ($9) $ 113 ($259) ($517) $ 278 Ending Carrying Value $ 7,877 $ 8,078 $ 8,386 $ 9,652 $ 9,194 TOTAL INVESTMENTS Gross investment income yield 6.30% 6.51% 6.54% 6.49% 6.48% Investment fees and expenses yield (0.13%) (0.17%) (0.12%) (0.14%) (0.16%) --------- -------- -------- -------- -------- NET INVESTMENT INCOME YIELD 6.17% 6.34% 6.42% 6.35% 6.32% ========= ======== ======== ======== ======== Gross investment income $ 4,199 $ 4,283 $ 4,359 $ 4,373 $ 4,414 Investment fees and expenses (87) (116) (81) (96) (106) --------- -------- -------- -------- -------- NET INVESTMENT INCOME $ 4,112 $ 4,167 $ 4,278 $ 4,277 $ 4,308 ========= ======== ======== ======== ======== Ending Carrying Value $309,392 $305,727 $317,517 $316,980 $327,143 ========= ======== ======== ======== ======== Gross investment gains $ 342 $ 492 $ 237 $ 247 $ 336 Gross investment losses (304) (721) (587) (661) (310) Writedowns (14) (9) (22) (45) (25) --------- -------- -------- -------- -------- Subtotal 24 (238) (372) (459) 1 Derivative & other instruments not qualifying for hedge accounting (47) 4 (252) (358) 253 --------- -------- -------- -------- -------- NET INVESTMENT GAINS (LOSSES) (23) (234) (624) (817) 254 Minority interest - net investment gains (losses) (1) 3 (2) 4 0 Net investment gains (losses) tax benefit (provision) 9 85 220 289 (92) --------- -------- -------- -------- -------- NET INVESTMENT GAINS (LOSSES), NET OF INCOME TAXES ($15) ($146) ($406) ($524) $ 162 ========= ======== ======== ======== ========
(1) The fixed maturities yield is annualized and is based on quarterly average amortized cost. (2) Fixed maturities includes $805 million, $825 million, $883 million, $519 million and $780 million in ending carrying value, and $14 million, ($3) million, $19 million, ($3) million and $14 million of investment income (loss) related to trading securities at or for the three months ended September 30, 2005, December 31, 2005, March 31, 2006, June 30, 2006 and September 30, 2006, respectively. (3) Yields are annualized and based on quarterly average carrying values. (4) Included in income from real estate and real estate joint ventures is $22 million, $28 million, $19 million, $28 million and $19 million related to discontinued operations for the three months ended September 30, 2005, December 31, 2005, March 31, 2006, June 30, 2006 and September 30, 2006, respectively. (5) Included in investment gains (losses) from real estate and real estate joint ventures is $46 million, $156 million, ($5) million, ($3) million and $99 million related to discontinued operations for the three months ended September 30, 2005, December 31, 2005, March 31, 2006, June 30, 2006 and September 30, 2006, respectively. (6) Included in income from other invested assets are scheduled periodic settlement payments on derivative instruments that do not qualify for hedge accounting under Statement of Financial Accounting Standards No. 133 of $26 million, $36 million, $39 million, $68 million and $96 million for the three months ended September 30, 2005, December 31, 2005, March 31, 2006, June 30, 2006 and September 30, 2006, respectively. These amounts are excluded from net investment gains (losses). Additionally, excluded from net investment gains (losses) is ($7) million, ($6) million, ($4) million, $3 million and $2 million for the three months ended September 30, 2005, December 31, 2005, March 31, 2006, June 30, 2006, and September 30, 2006, respectively, related to settlement payments on derivatives used to hedge interest rate and currency risk on policyholder account balances that do not qualify for hedge accounting. 37 (METLIFE(R) LOGO) METLIFE, INC. INVESTMENT RESULTS BY ASSET CATEGORY AND ANNUALIZED YIELDS
At or For the Year-to-Date Ended ----------------------------------------------------------------------- September 30, December 31, March 31, June 30, September 30, Unaudited (Dollars in millions) 2005 2005 2006 2006 2006 ------------- ------------ --------- -------- ------------- FIXED MATURITIES Yield (1) 5.94% 6.00% 6.14% 6.12% 6.14% Income (2) $ 7,446 $ 10,400 $ 2,996 $ 5,982 $ 8,997 Investment gains (losses) ($301) ($868) ($412) ($793) ($921) Ending Carrying Value (2) $232,041 $230,875 $240,711 $237,612 $243,136 MORTGAGE AND CONSUMER LOANS Yield (3) 6.79% 6.81% 6.68% 6.55% 6.54% Income $ 1,645 $ 2,236 $ 585 $ 1,159 $ 1,761 Investment gains (losses) ($6) $ 17 $ 4 $ 7 ($1) Ending Carrying Value $ 36,094 $ 37,190 $ 37,351 $ 38,665 $ 40,141 REAL ESTATE AND REAL ESTATE JOINT VENTURES Yield (3) 11.31% 10.59% 12.50% 11.93% 10.86% Income (4) $ 367 $ 467 $ 146 $ 281 $ 384 Investment gains (losses) (5) $ 1,973 $ 2,139 $ 17 $ 71 $ 189 Ending Carrying Value $ 4,705 $ 4,665 $ 4,700 $ 4,786 $ 4,931 POLICY LOANS Yield (3) 6.08% 6.00% 5.84% 5.86% 5.94% Income $ 429 $ 572 $ 146 $ 293 $ 447 Ending Carrying Value $ 9,841 $ 9,981 $ 9,987 $ 10,065 $ 10,115 EQUITY SECURITIES AND OTHER LIMITED PARTNERSHIP INTERESTS Yield (3) 12.70% 12.83% 12.86% 13.86% 12.68% Income $ 566 $ 798 $ 235 $ 513 $ 711 Investment gains (losses) $ 127 $ 159 $ 27 $ 52 $ 45 Ending Carrying Value $ 7,403 $ 7,614 $ 7,870 $ 8,007 $ 7,863 CASH AND SHORT-TERM INVESTMENTS Yield (3) 3.52% 3.66% 4.63% 4.67% 4.96% Income $ 277 $ 362 $ 80 $ 165 $ 285 Investment gains (losses) ($1) ($2) ($1) ($2) ($1) Ending Carrying Value $ 11,431 $ 7,324 $ 8,512 $ 8,193 $ 11,763 OTHER INVESTED ASSETS Yield (3) 8.67% 8.96% 8.92% 8.41% 8.98% Income (6) $ 392 $ 570 $ 171 $ 339 $ 561 Investment gains (losses) (6) $ 389 $ 502 ($259) ($776) ($498) Ending Carrying Value $ 7,877 $ 8,078 $ 8,386 $ 9,652 $ 9,194 TOTAL INVESTMENTS Gross investment income yield 6.29% 6.35% 6.54% 6.51% 6.50% Investment fees and expenses yield (0.13%) (0.14%) (0.12%) (0.13%) (0.14%) -------- -------- -------- -------- -------- NET INVESTMENT INCOME YIELD 6.16% 6.21% 6.42% 6.38% 6.36% ======== ======== ======== ======== ======== Gross investment income $ 11,122 $ 15,405 $ 4,359 $8,732 $ 13,146 Investment fees and expenses (223) (339) (81) (177) (283) -------- -------- -------- -------- -------- NET INVESTMENT INCOME $ 10,899 $ 15,066 $ 4,278 $ 8,555 $ 12,863 ======== ======== ======== ======== ======== Ending Carrying Value $309,392 $305,727 $317,517 $316,980 $327,143 ======== ======== ======== ======== ======== Gross investment gains $ 2,848 $ 3,340 $ 237 $ 484 $ 820 Gross investment losses (857) (1,578) (587) (1,248) (1,558) Writedowns (107) (116) (22) (67) (92) -------- -------- -------- -------- -------- Subtotal 1,884 1,646 (372) (831) (830) Derivative & other instruments not qualifying for hedge accounting 297 301 (252) (610) (357) -------- -------- -------- -------- -------- NET INVESTMENT GAINS (LOSSES) 2,181 1,947 (624) (1,441) (1,187) Minority interest - net investment gains (losses) (12) (9) (2) 2 2 Net investment gains (losses) tax benefit (provision) (766) (681) 220 509 417 -------- -------- -------- -------- -------- NET INVESTMENT GAINS (LOSSES), NET OF INCOME TAXES $ 1,403 $ 1,257 ($406) ($930) ($768) ======== ======== ======== ======== ========
(1) The fixed maturities yield is annualized and is based on quarterly average amortized cost. (2) Fixed maturities includes $805 million, $825 million, $883 million, $519 million and $780 million in ending carrying value, and $17 million, $14 million, $19 million, $16 million and $30 million of investment income related to trading securities at or for year-to-date ended September 30, 2005, December 31, 2005, March 31, 2006, June 30, 2006 and September 30, 2006, respectively. (3) Yields are annualized and based on quarterly average carrying values. (4) Included in income from real estate and real estate joint ventures is $123 million, $150 million, $19 million, $47 million and $66 million related to discontinued operations for year-to-date September 30, 2005, December 31, 2005, March 31, 2006, June 30, 2006 and September 30, 2006, respectively. (5) Included in investment gains (losses) from real estate and real estate joint ventures is $1,969 million, $2,125 million, ($5) million, ($8) million and $91 million related to discontinued operations for year-to-date September 30, 2005, December 31, 2005, March 31, 2006, June 30, 2006 and September 30, 2006, respectively. (6) Included in income from other invested assets are scheduled periodic settlement payments on derivative instruments that do not qualify for hedge accounting under Statement of Financial Accounting Standards No. 133 of $63 million, $99 million, $39 million, $107 million and $203 million for the year-to-date September 30, 2005, December 31, 2005, March 31, 2006, June 30, 2006 and September 30, 2006, respectively. These amounts are excluded from net investment gains (losses). Additionally, excluded from net investment gains (losses) is ($7) million, ($13) million, ($4) million, ($1) million and $1 million for the year-to-date September 30, 2005, December 31, 2005, March 31, 2006, June 30, 2006 and September 30, 2006, respectively, related to settlement payments on derivatives used to hedge interest rate and currency risk on policyholder account balances that do not qualify for hedge accounting. 38 (METLIFE(R) LOGO) METLIFE, INC. GROSS UNREALIZED GAINS AND LOSSES AGING SCHEDULE FIXED MATURITIES (1)
At September At December At March 31, At June 30, At September 30, 2005 31, 2005 2006 2006 30, 2006 --------------- --------------- --------------- --------------- --------------- % of % of % of % of % of Unaudited (Dollars in millions) Amount Total Amount Total Amount Total Amount Total Amount Total ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ Less than 20% $1,758 95.9% $2,159 97.9% $4,379 98.7% $6,400 96.3% $2,501 98.3% 20% or more for less than six months 69 3.8% 39 1.8% 47 1.1% 232 3.5% 6 0.2% 20% or more for six months or greater 6 0.3% 7 0.3% 9 0.2% 10 0.2% 38 1.5% ------ ----- ------ ----- ------ ----- ------ ----- ------ ----- Total Gross Unrealized Losses $1,833 100.0% $2,205 100.0% $4,435 100.0% $6,642 100.0% $2,545 100.0% ------ ----- ------ ----- ------ ----- ------ ----- ------ ----- Total Gross Unrealized Gains $8,814 $8,329 $6,123 $4,994 $7,343 ====== ====== ====== ====== ======
GROSS UNREALIZED GAINS AND LOSSES AGING SCHEDULE EQUITY SECURITIES (1)
At September At December At March 31, At June 30, At September 30, 2005 31, 2005 2006 2006 30, 2006 --------------- --------------- --------------- --------------- --------------- % of % of % of % of % of Unaudited (Dollars in millions) Amount Total Amount Total Amount Total Amount Total Amount Total ------ ------ ------ ------ ------ ------ ------ ------ ------ ------ Less than 20% $ 29 70.7% $ 29 70.7% $ 30 75.0% $ 51 69.9% $ 26 60.5% 20% or more for less than six months 12 29.3% 12 29.3% 10 25.0% 22 30.1% 17 39.5% 20% or more for six months or greater 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0% ------ ----- ------ ----- ------ ----- ------ ----- ------ ----- Total Gross Unrealized Losses $ 41 100.0% $ 41 100.0% $ 40 100.0% $ 73 100.0% $ 43 100.0% ------ ----- ------ ----- ------ ----- ------ ----- ------ ----- Total Gross Unrealized Gains $256 $295 $384 $338 $404 ====== ====== ====== ====== ======
(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. 39 (METLIFE(R) LOGO) METLIFE, INC. SUMMARY OF REAL ESTATE
September 30, December 31, March 31, June 30, September 30, Unaudited (Dollars in millions) 2005 2005 2006 2006 2006 ------------- ------------ --------- -------- ------------- Wholly owned $3,919 $3,735 $3,902 $3,854 $3,691 Joint ventures 783 926 794 923 1,231 ------ ------ ------ ------ ------ Subtotal 4,702 4,661 4,696 4,777 4,922 Foreclosed 3 4 4 9 9 ------ ------ ------ ------ ------ Total Real Estate (1) $4,705 $4,665 $4,700 $4,786 $4,931 ====== ====== ====== ====== ======
SUMMARY OF MORTGAGES AND CONSUMER LOANS
September 30, December 31, March 31, June 30, September 30, Unaudited (Dollars in millions) 2005 2005 2006 2006 2006 ------------- ------------ --------- -------- ------------- COMMERCIAL MORTGAGES $27,250 $28,022 $28,278 $29,533 $30,848 AGRICULTURAL MORTGAGES 7,474 7,700 7,689 7,817 8,056 CONSUMER LOANS 1,370 1,468 1,384 1,315 1,237 ------- ------- ------- ------- ------- TOTAL $36,094 $37,190 $37,351 $38,665 $40,141 ======= ======= ======= ======= =======
(1) Includes real estate held-for-sale and held-for-investment. 40 COMPANY RATINGS AS OF OCTOBER 27, 2006
Moody's Standard & A.M. Best Fitch Investors 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 Insurance Company of Connecticut Aa2 AA* A+ AA MetLife Insurance Company of Connecticut (Short-term rating) P-1 NR NR NR 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 MetLife Life and Annuity Company of Connecticut Aa2 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 Texas Life Insurance Company NR NR A NR 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+
* Standard & Poor's and/or A.M. Best's outlook for these ratings is negative. (P) Preliminary NR Not Rated 41 EX-99.3 4 y26307exv99w3.txt PRESS RELEASE PUBLIC RELATIONS Metlife, Inc. One Metlife Plaza FOR IMMEDIATE RELEASE NEWS 27-01 Queens Plaza North Long Island City, NY 11101 [METLIFE LOGO] Contacts: For Media: John Calagna (212) 578-6252 For Investors: Tracey Dedrick (212) 578-5140 METLIFE DECLARES ANNUAL DIVIDEND ON COMMON STOCK NEW YORK, October 24, 2006 - The board of directors of MetLife, Inc. (NYSE: MET) today declared an annual dividend for 2006 of $0.59 per common share payable on December 15, 2006 to shareholders of record as of November 6, 2006. This year's annual dividend represents a 13% increase from the 2005 annual dividend of $0.52 per common share. MetLife, Inc. is a leading provider of insurance and financial services with operations throughout the U.S. and the Latin America, Europe and Asia Pacific regions. Through its domestic and international subsidiaries and affiliates, MetLife, Inc. reaches more than 70 million customers around the world and MetLife is the largest life insurer in the U.S. (based on life insurance in-force). The MetLife companies offer life insurance, annuities, auto and home insurance, retail banking and other financial services to individuals, as well as group insurance, reinsurance and retirement and savings products and services to corporations and other institutions. For more information, please visit www.metlife.com. # # # -----END PRIVACY-ENHANCED MESSAGE-----