Exhibit 99.1
Contacts:
|
For Media: | John Calagna | ||
| (212) 578-6252 | ||||
| For Investors: | John McCallion | |||
| (212) 578-7888 |
METLIFE DECLARES ANNUAL DIVIDEND ON COMMON STOCK;
COMMENTS ON CAPITAL DISTRIBUTION
COMMENTS ON CAPITAL DISTRIBUTION
NEW YORK, October 25, 2011 — The board of directors of MetLife, Inc. (NYSE: MET) today declared an
annual common stock dividend for 2011 of $0.74 per common share — unchanged from 2010. The
dividend will be payable on December 14, 2011 to shareholders of record as of November 9, 2011.
While MetLife’s business activities are predominantly in the insurance sector, by virtue of its
ownership of MetLife Bank, it is a bank holding company. As such, MetLife’s capital planning and
distribution activities relating to dividend increases and stock repurchases are subject to prior
review and approval by the Federal Reserve, and it will participate in the Federal Reserve 2012
Comprehensive Capital Analysis and Review.
After a thorough analysis, MetLife recently submitted to the Federal Reserve for approval a capital
distribution plan that included both an increase in MetLife’s annual dividend as well as the
resumption of stock repurchases.
The Federal Reserve has concluded that the company’s planned capital actions should be tested under
a revised adverse macroeconomic scenario which is being developed for those firms that will
participate in the 2012 Comprehensive Capital Analysis and Review. As a result, the Federal
Reserve did not approve the company’s planned dividend increase and other proposed capital actions
at this time.
“MetLife is well capitalized and is firmly committed to creating shareholder value and returning
capital to its shareholders. We are disappointed that we cannot commence increased capital actions
now, as our analysis shows that the company’s current capital level and financial strength support
capital action increases. We look forward to seeking and gaining approval of our capital plan from
the Federal Reserve early next year. Moreover, increasing our capital actions in this
current economic environment and in this time of high unemployment would prove beneficial to the
economy as our shareholders re-deploy these funds in a productive manner,” said Steven A.
Kandarian, president and chief executive officer of MetLife, Inc.
“At the same time, we continue to move forward on our plans to explore the sale of the depository
business and the mortgage origination activity conducted at MetLife Bank and to take the necessary
steps to no longer be a bank holding company. As I have previously said, this will ensure that
MetLife is able to operate on a level regulatory playing field with other insurance companies,”
added Kandarian.
MetLife, Inc. is a leading global provider of insurance, annuities and employee benefit programs,
serving 90 million customers in over 50 countries. Through its subsidiaries and affiliates,
MetLife holds leading market positions in the United States, Japan, Latin America, Asia Pacific,
Europe and the Middle East. For more information, visit www.metlife.com.
This press release may contain or incorporate by reference information that includes or is
based upon forward-looking statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements give expectations or forecasts of future events.
These statements can be identified by the fact that they do not relate strictly to historical or
current facts. They use words such as “anticipate,” “estimate,” “expect,” “project,” “intend,”
“plan,” “believe” and other words and terms of similar meaning in connection with a discussion of
future operating or financial performance. In particular, these include statements relating to
future actions, prospective services or products, future performance or results of current and
anticipated services or products, sales efforts, expenses, the outcome of contingencies such as
legal proceedings, trends in operations and financial results.
Any or all forward-looking statements may turn out to be wrong. They can be affected by inaccurate
assumptions or by known or unknown risks and uncertainties. Many such factors will be important in
determining the actual future results of MetLife, Inc., its subsidiaries and affiliates. These
statements are based on current expectations and the current economic environment. They involve a
number of risks and uncertainties that are difficult to predict. These statements are not
guarantees of future performance. Actual results could differ materially from those expressed or
implied in the forward-looking statements. Risks, uncertainties, and other factors that might cause
such differences include the risks, uncertainties and other factors identified in MetLife, Inc.’s
filings with the U.S. Securities and Exchange Commission (the “SEC”). These factors include: (1)
difficult conditions in the global capital markets; (2) the delay by Congress in raising the
statutory debt limit of the U.S., as well as rating agency downgrades of U.S. Treasury securities;
(3) increased volatility and disruption of the capital and credit markets, which may affect our
ability to seek financing or access our credit facilities; (4) uncertainty about the effectiveness
of the U.S. government’s programs to stabilize the financial system, the imposition of fees
relating thereto, or the promulgation of additional regulations; (5) impact of comprehensive
financial services regulation reform on us; (6) exposure to financial and capital market risk; (7)
changes in general economic conditions, including the performance of financial markets and interest
rates, which may affect our ability to raise capital, generate fee income and market-related
revenue and finance statutory reserve requirements and may require us to pledge collateral or make
payments related to declines in value of specified assets; (8) potential liquidity and other risks
resulting from our participation in a securities lending program and other transactions; (9)
investment losses and defaults, and changes to investment valuations; (10) impairments of goodwill
and realized losses or market value impairments to illiquid assets; (11) defaults on our mortgage
loans; (12) the impairment of other financial institutions that could adversely affect our
investments or business; (13) our ability to address unforeseen liabilities, asset impairments,
loss of key contractual relationships, or rating actions arising from acquisitions or dispositions,
including our acquisition of American Life Insurance Company and Delaware American Life Insurance
Company (collectively, “ALICO”) and to successfully integrate and manage the growth of acquired
businesses with minimal disruption; (14) uncertainty with respect to the outcome of the closing
agreement entered into with the United States Internal Revenue Service in connection with the
acquisition of ALICO; (15) uncertainty with respect to any incremental tax benefits resulting from
the elections made for ALICO and certain of its subsidiaries under Section 338 of the U.S. Internal
Revenue Code of 1986, as amended; (16) the dilutive impact on our stockholders
resulting from the issuance of equity securities in connection with the acquisition of ALICO or
otherwise; (17) economic, political, currency and other risks relating to
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our international operations, including with respect to fluctuations of exchange rates; (18) our
primary reliance, as a holding company, on dividends from our subsidiaries to meet debt payment
obligations and the applicable regulatory restrictions on the ability of the subsidiaries to pay
such dividends; (19) downgrades in our claims paying ability, financial strength or credit ratings;
(20) ineffectiveness of risk management policies and procedures; (21) availability and
effectiveness of reinsurance or indemnification arrangements, as well as default or failure of
counterparties to perform; (22) discrepancies between actual claims experience and assumptions used
in setting prices for our products and establishing the liabilities for our obligations for future
policy benefits and claims; (23) catastrophe losses; (24) heightened competition, including with
respect to pricing, entry of new competitors, consolidation of distributors, the development of new
products by new and existing competitors, distribution of amounts available under U.S. government
programs, and for personnel; (25) unanticipated changes in industry trends; (26) changes in
accounting standards, practices and/or policies; (27) changes in assumptions related to deferred
policy acquisition costs, deferred sales inducements, value of business acquired or goodwill; (28)
increased expenses relating to pension and postretirement benefit plans, as well as health care and
other employee benefits; (29) exposure to losses related to variable annuity guarantee benefits,
including from significant and sustained downturns or extreme volatility in equity markets, reduced
interest rates, unanticipated policyholder behavior, mortality or longevity, and the adjustment for
nonperformance risk; (30) deterioration in the experience of the “closed block” established in
connection with the reorganization of Metropolitan Life Insurance Company; (31) adverse results or
other consequences from litigation, arbitration or regulatory investigations; (32) inability to
protect our intellectual property rights or claims of infringement of the intellectual property
rights of others, (33) discrepancies between actual experience and assumptions used in establishing
liabilities related to other contingencies or obligations; (34) regulatory, legislative or tax
changes relating to our insurance, banking, international, or other operations that may affect the
cost of, or demand for, our products or services, impair our ability to attract and retain talented
and experienced management and other employees, or increase the cost or administrative burdens of
providing benefits to employees; (35) the effects of business disruption or economic contraction
due to terrorism, other hostilities, or natural catastrophes, including any related impact on our
disaster recovery systems and management continuity planning which could impair our ability to
conduct business effectively; (36) the effectiveness of our programs and practices in avoiding
giving our associates incentives to take excessive risks; and (37) other risks and uncertainties
described from time to time in MetLife, Inc.’s filings with the SEC.
MetLife, Inc. does not undertake any obligation to publicly correct or update any forward-looking
statement if MetLife, Inc. later becomes aware that such statement is not likely to be achieved.
Please consult any further disclosures MetLife, Inc. makes on related subjects in reports to the
SEC.
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