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) February 14, 2012
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
(Registrants 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 February 14, 2012, MetLife, Inc. issued (i) a press release announcing its results for the quarter and full year ended December 31, 2011, 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 December 31, 2011, a copy of which is attached hereto as Exhibit 99.2 and is incorporated herein by reference. The press release and the Quarterly Financial Supplement are furnished and not filed pursuant to instruction B.2 of Form 8-K.
Item 9.01. Financial Statements and Exhibits.
(a) | Not applicable. |
(b) | Not applicable. |
(c) | Not applicable. |
(d) | Exhibits |
99.1 Press Release of MetLife, Inc., dated February 14, 2012, announcing fourth quarter and full year 2011 results.
99.2 Quarterly Financial Supplement for the quarter ended December 31, 2011.
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/ Christine M. DeBiase | |
Name: Christine M. DeBiase | ||
Title: Vice President and Secretary |
Date: February 14, 2012
Exhibit 99.1
Contacts: | For Media: | Christopher Breslin | ||
(212) 578-8824 | ||||
For Investors: | John McCallion | |||
(212) 578-7888 |
METLIFE ANNOUNCES FOURTH QUARTER AND FULL YEAR 2011 RESULTS
4Q Operating Earnings of $1.4 Billion, or $1.31 Per Share, up 17% from 4Q 2010
Full Year Operating Earnings of $5.4 Billion, or $5.02 Per Share, up 40% from 2010
4Q Net Income of $1.1 Billion, or $1.06 Per Share, up from $51 Million in 4Q 2010
Full Year Net Income of $6.7 Billion, or $6.29 Per Share, up from $2.7 Billion in 2010
Year-End Book Value of $54.59 Per Share, up 24% Over 2010
NEW YORK, February 14, 2012 MetLife, Inc. (NYSE: MET) today reported fourth quarter 2011 net income of $1.1 billion, or $1.06 per share, and operating earnings1 of $1.4 billion, or $1.31 per share. MetLife today also reported full year 2011 net income of $6.7 billion, or $6.29 per share, and operating earnings of $5.4 billion, or $5.02 per share.
MetLife had a solid year and a strong fourth quarter, even in the face of some significant market pressures, said Steven A. Kandarian, chairman, president and chief executive officer of MetLife, Inc. We delivered higher earnings per share over 2010. Our capital position is strong and getting stronger. And our ability to grow operating earnings in the face of low interest rates remains intact. In short, we think were the best-positioned company in the life insurance sector to deliver shareholder value.
1 | Information regarding the non-GAAP financial measures included in this press release and the reconciliation of them to GAAP measures are provided in the Non-GAAP and Other Financial Disclosures discussion below, as well as in the tables that accompany this release and/or the Fourth Quarter 2011 Quarterly Financial Supplement. |
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FULL YEAR 2011 SUMMARY
| Operating earnings of $5.4 billion, or $5.02 per share, up 40% over 2010 |
| Premiums, fees & other revenues of $45.7 billion, up 32% over 2010 |
| Total assets of nearly $800 billion, up 9% from year-end 2010 |
($ in millions, except per share data) | For the year ended December 31, | |||||||||||
2011 | 2010 | Change | ||||||||||
Premiums, fees & other revenues |
$ | 45,708 | $ | 34,563 | 32 | % | ||||||
Total operating revenues |
$ | 65,384 | $ | 51,443 | 27 | % | ||||||
Net income |
$ | 6,713 | $ | 2,668 | | |||||||
Net income per share |
$ | 6.29 | $ | 3.00 | | |||||||
Operating earnings |
$ | 5,358 | $ | 3,833 | 40 | % | ||||||
Operating earnings per share |
$ | 5.02 | $ | 4.31 | 16 | % |
FOURTH QUARTER 2011 SUMMARY
| Operating earnings of $1.4 billion, or $1.31 per share, up 17% over the fourth quarter of 2010 |
| Total International sales up 12% compared with combined MetLife and Alico fourth quarter 2010 results |
| Premiums, fees & other revenues of $11.5 billion, up 23% over the fourth quarter of 2010, largely due to the acquisition of Alico as well as growth in the U.S. |
| Book value per share of $54.59, up 24% from year-end 2010 |
($ in millions, except per share data) | For the three months ended December 31, | |||||||||||
2011 | 2010 | Change | ||||||||||
Premiums, fees & other revenues |
$ | 11,498 | $ | 9,325 | 23 | % | ||||||
Total operating revenues |
$ | 16,405 | $ | 13,762 | 19 | % | ||||||
Net income |
$ | 1,125 | $ | 51 | | |||||||
Net income per share |
$ | 1.06 | $ | 0.05 | | |||||||
Operating earnings |
$ | 1,398 | $ | 1,194 | 17 | % | ||||||
Operating earnings per share |
$ | 1.31 | $ | 1.18 | 11 | % | ||||||
Book value per share |
$ | 54.59 | $ | 44.18 | 24 | % | ||||||
Book value per share, excluding AOCI |
$ | 49.02 | $ | 43.23 | 13 | % |
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BUSINESS DISCUSSIONS
On November 21, 2011, MetLife announced it was reorganizing into three broad geographic regions The Americas, EMEA (Europe, the Middle East and Africa) and Asia to better reflect the companys global reach. MetLife expects to report financial results under this new structure beginning with the first quarter of 2012.
During the fourth quarter of 2011, MetLife began reporting certain operations of MetLife Bank and insurance operations in the Caribbean Region, Panama and Costa Rica as divested businesses. These operations are excluded from operating earnings as well as investment portfolio and derivative gains and losses. Prior periods have been reclassified to conform with the current period segment presentation.
All comparisons of fourth quarter 2011 results in the business discussions that follow are with the fourth quarter of 2010, unless otherwise noted. Reconciliations of segment net income to segment operating earnings are provided in the tables that accompany this release and in the Fourth Quarter 2011 Quarterly Financial Supplement, which is available on the Investor Relations section of www.metlife.com.
U.S. BUSINESS
| U.S. Business operating earnings of $932 million, up 4%; the annual review of deferred policy acquisition costs (DAC) assumptions and other adjustments resulted in a net $27 million, or $0.03 per share, after tax, increase in U.S. Business operating earnings |
| Favorable underwriting results in group life and continued improvement in non-medical health underwriting, particularly in the dental business |
| Variable annuity sales of $7.2 billion |
| Premiums, fees & other revenues of $7.6 billion, up 7% primarily due to growth in Retirement Products and Corporate Benefit Funding |
Insurance Products
Operating earnings for Insurance Products which includes group life, individual life and non-medical health insurance were $411 million, up 33% largely due to the positive impact of DAC and other adjustments in individual life as well as favorable underwriting results in group life and non-medical health. Premiums, fees & other revenues for Insurance Products were $5.1 billion, relatively unchanged.
Retirement Products
Operating earnings for Retirement Products which includes the companys U.S. annuity products were $216 million, down 5% due to the negative impact of DAC and other adjustments as well as lower variable investment income, offset by growth from strong positive net flows and higher core spreads. Compared with the fourth quarter of 2010 and the third quarter of 2011, total annuity sales increased 41% and declined 15%, respectively, primarily due to a change in the level of variable annuity sales. Premiums, fees & other revenues for Retirement Products were $1.0 billion, up 35% due to increased sales of immediate annuities and higher fee income.
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Corporate Benefit Funding
Operating earnings for Corporate Benefit Funding which includes the U.S. and U.K. pension closeout businesses, structured settlements and other benefit funding products were $224 million, down 21% primarily due to lower variable investment income. Premiums, fees & other revenues for Corporate Benefit Funding were $739 million, up 44% largely due to higher pension closeout sales (which often fluctuate significantly from quarter to quarter).
Auto & Home
Operating earnings for Auto & Home were $81 million, up 9% due mainly to lower catastrophes. In addition, favorable non-catastrophe claim development related to prior accident years was $14 million, or $0.01 per share, after tax, compared with $16 million, after tax, in the fourth quarter of 2010. Excluding catastrophes, Auto & Homes combined ratio remained strong at 90.2%, compared with 90.0%. Net written premiums were $740 million, up 2%.
INTERNATIONAL BUSINESS
| International operating earnings of $570 million, up 89% largely due to the acquisition of Alico2 |
| Total International sales up 12% compared with combined MetLife and Alico fourth quarter 2010 results |
| Premiums, fees & other revenues of $3.8 billion, reflecting growth in Latin America, Eastern Europe and the Middle East as well as the negative impact of foreign currency exchange rates |
Japan
Operating earnings in Japan were $326 million, up 3% over the third quarter of 2011 largely due to higher net investment income and both solid underwriting results and improved persistency in accident and health insurance. Compared with combined MetLife and Alico results in the fourth quarter of 2010, sales grew 16%. Premiums, fees & other revenues in Japan were $1.8 billion, higher than in the fourth quarter of 2010 (which reflected only one month of Alico results) and relatively unchanged from the third quarter of 2011.
Other International Regions
Operating earnings in the Other International Regions were $244 million, up 17%, while premiums, fees & other revenues grew to $2.0 billion. The increases, which were largely due to the Alico acquisition, were partially offset by the negative impact of foreign currency exchange rates. In addition, in Latin America, premiums, fees & other revenues grew due to premium increases in Mexico, Chile and Argentina. Premiums, fees & other revenues also benefited from strong performance in the Middle East and Eastern Europe.
2 | MetLife acquired Alico on November 1, 2010. Accordingly, Alicos financial results prior to that date are not reflected in MetLifes historical financial statements. |
CORPORATE & OTHER
Corporate & Other had an operating loss of $104 million, compared with an operating loss of $2 million. Results in the fourth quarter of 2010 benefited from several one-time items, while the fourth quarter of 2011 was impacted by higher expenses.
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INVESTMENTS
Net investment income was $4.9 billion, up 11% from the fourth quarter of 2010 and down slightly from the third quarter of 2011. During the fourth quarter of 2011, variable investment income was within the plan range at $247 million ($162 million, after tax and the impact of DAC). In the fourth quarter of 2010, variable investment income was $423 million ($268 million, after tax and the impact of DAC).
For the fourth quarter of 2011, MetLife reported a $213 million, after tax, investment portfolio net loss compared with an investment portfolio net gain of $6 million, after tax.
Separately, MetLife reported derivative net gains of $351 million, after tax, which were largely due to declines in interest rates and gains in the companys variable annuity hedging program. In the fourth quarter of 2010, MetLife reported $1.1 billion, after tax, in derivative net losses. MetLife uses derivatives in connection with its broader portfolio management strategy to hedge a number of risks, including changes in interest rates and fluctuations in foreign currencies. Movement in interest rates, foreign currencies and MetLifes credit spreads which impact the valuation of certain insurance liabilities can generate derivative gains or losses. Derivative gains or losses related to MetLifes credit spreads do not have an economic impact on the company.
Conference Call
MetLife will hold its fourth quarter and full year 2011 earnings conference call and audio Webcast on Wednesday, February 15, 2012, 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) 326-1027 (domestic and international callers). To listen to the conference call over the Internet, visit www.metlife.com (through a link on the Investor Relations page). 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 10:00 a.m. (ET) on Wednesday, February 15, 2012, until Wednesday, February 22, 2012 at 11:59 p.m. (ET). To listen to a replay of the conference call over the telephone, dial (320) 365-3844 (domestic and international callers). The access code for the replay is 226299. To access the replay of the conference call over the Internet, visit the above-mentioned Web site.
About MetLife
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.
Non-GAAP and Other Financial Disclosures
All references in this press release (except in this section) to net income (loss), net income (loss) per share, operating earnings, operating earnings per share, book value per share, and premiums, fees and other revenues, should be read as net income (loss) available to MetLife, Inc.s common shareholders, net income (loss) available to MetLife, Inc.s common shareholders per diluted common share, operating earnings available to common shareholders, operating earnings available to common shareholders per diluted common share, book value per common share, and premiums, fees and other revenues (operating), respectively.
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Operating earnings is the measure of segment profit or loss that MetLife uses to evaluate segment performance and allocate resources. Consistent with accounting principles generally accepted in the United States of America (GAAP) accounting guidance for segment reporting, operating earnings is MetLifes measure of segment performance. Operating earnings is also a measure by which MetLife senior managements and many other employees performance is evaluated for the purposes of determining their compensation under applicable compensation plans.
Operating earnings is defined as operating revenues less operating expenses, both net of income tax. Operating earnings available to common shareholders is defined as operating earnings less preferred stock dividends.
Operating revenues and operating expenses exclude results of discontinued operations and other businesses that have been or will be sold or exited by MetLife (Divested Businesses). Operating revenues also excludes net investment gains (losses) (NIGL) and net derivative gains (losses) (NDGL).
The following additional adjustments are made to GAAP revenues, in the line items indicated, in calculating operating revenues:
| Universal life and investment-type product policy fees excludes the amortization of unearned revenue related to NIGL and NDGL and certain variable annuity guaranteed minimum income benefits (GMIB) fees (GMIB Fees); |
| Net investment income: (i) includes amounts for scheduled periodic settlement payments and amortization of premium on derivatives that are hedges of investments but do not qualify for hedge accounting treatment, (ii) includes income from discontinued real estate operations, (iii) excludes post-tax operating earnings adjustments relating to insurance joint ventures accounted for under the equity method, (iv) excludes certain amounts related to contractholder-directed unit-linked investments, and (v) excludes certain amounts related to securitization entities that are variable interest entities (VIEs) consolidated under GAAP; and |
| Other revenues are adjusted for settlements of foreign currency earnings hedges. |
The following additional adjustments are made to GAAP expenses, in the line items indicated, in calculating operating expenses:
| Policyholder benefits and claims and policyholder dividends excludes: (i) changes in the policyholder dividend obligation related to NIGL and NDGL, (ii) inflation-indexed benefit adjustments associated with contracts backed by inflation-indexed investments and amounts associated with periodic crediting rate adjustments based on the total return of a contractually referenced pool of assets, (iii) benefits and hedging costs related to GMIBs (GMIB Costs), and (iv) market value adjustments associated with surrenders or terminations of contracts (Market Value Adjustments); |
| Interest credited to policyholder account balances includes adjustments for scheduled periodic settlement payments and amortization of premium on derivatives that are hedges of policyholder account balances but do not qualify for hedge accounting treatment and excludes amounts related to net investment income earned on contractholder-directed unit-linked investments; |
| Amortization of DAC and value of business acquired (VOBA) excludes amounts related to: (i) NIGL and NDGL, (ii) GMIB Fees and GMIB Costs and (iii) Market Value Adjustments; |
| Amortization of negative VOBA excludes amounts related to Market Value Adjustments; |
| Interest expense on debt excludes certain amounts related to securitization entities that are VIEs consolidated under GAAP; and |
| Other expenses excludes costs related to: (i) noncontrolling interests, (ii) implementation of new insurance regulatory requirements, and (iii) business combinations. |
MetLife believes the presentation of operating earnings and operating earnings available to common shareholders as MetLife measures it for management purposes enhances the understanding of the companys performance by highlighting the results of operations and the underlying profitability drivers of the business. Operating revenues,
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operating expenses, operating earnings, operating earnings available to common shareholders, operating earnings available to common shareholders per diluted common share, book value per common share, excluding accumulated other comprehensive income (AOCI), and book value per diluted common share, excluding AOCI, should not be viewed as substitutes for the following financial measures calculated in accordance with GAAP: GAAP revenues, GAAP expenses, GAAP income (loss) from continuing operations, net of income tax, GAAP net income (loss) available to MetLife, Inc.s common shareholders, GAAP net income (loss) available to MetLife, Inc.s common shareholders per diluted common share, book value per common share, and book value per diluted common share, respectively. Reconciliations of these measures to the most directly comparable GAAP measures are included in the Fourth Quarter 2011 Quarterly Financial Supplement and/or in the tables that accompany this earnings press release.
Statistical sales information for life insurance is calculated by MetLife using the LIMRA International, Inc. definition of sales for core direct sales, excluding company sponsored internal exchanges, corporate-owned life insurance, bank-owned life insurance, and private placement variable universal life insurance. Individual annuities sales consists of statutory premiums direct and assumed, excluding company sponsored internal exchanges.
Forward-Looking Statements
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) concerns over U.S. fiscal policy and the trajectory of the national debt 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. governments 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) the dilutive impact on our stockholders resulting from the issuance of equity securities in connection with the acquisition of ALICO or otherwise; (16) economic, political, currency and other risks relating to our international operations, including with respect to fluctuations of exchange rates; (17) 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; (18) downgrades in our claims paying ability, financial strength or credit ratings; (19) ineffectiveness of risk management policies and
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procedures; (20) availability and effectiveness of reinsurance or indemnification arrangements, as well as default or failure of counterparties to perform; (21) 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; (22) catastrophe losses; (23) 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; (24) unanticipated changes in industry trends; (25) changes in accounting standards, practices and/or policies; (26) changes in assumptions related to deferred policy acquisition costs, deferred sales inducements, value of business acquired or goodwill; (27) increased expenses relating to pension and postretirement benefit plans, as well as health care and other employee benefits; (28) 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; (29) deterioration in the experience of the closed block established in connection with the reorganization of Metropolitan Life Insurance Company; (30) adverse results or other consequences from litigation, arbitration or regulatory investigations; (31) inability to protect our intellectual property rights or claims of infringement of the intellectual property rights of others; (32) discrepancies between actual experience and assumptions used in establishing liabilities related to other contingencies or obligations; (33) 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; (34) the effects of business disruption or economic contraction due to disasters such as terrorist attacks, cyberattacks, other hostilities, or natural catastrophes, including any related impact on our disaster recovery systems, cyber- or other information security systems and management continuity planning; (35) the effectiveness of our programs and practices in avoiding giving our associates incentives to take excessive risks; and (36) 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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MetLife, Inc.
Consolidated Statements of Operations (Unaudited)
For the Three Months Ended December 31, |
For the Years Ended December 31, |
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2011 | 2010 | 2011 | 2010 | |||||||||||||
(In millions) | (In millions) | |||||||||||||||
Revenues |
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Premiums |
$ | 9,171 | $ | 7,215 | $ | 36,361 | $ | 27,071 | ||||||||
Universal life and investment-type product policy fees |
1,950 | 1,689 | 7,806 | 6,028 | ||||||||||||
Net investment income |
4,938 | 4,766 | 19,606 | 17,511 | ||||||||||||
Other revenues |
654 | 647 | 2,532 | 2,328 | ||||||||||||
Net investment gains (losses): |
||||||||||||||||
Other-than-temporary impairments on fixed maturity securities |
(399 | ) | (144 | ) | (924 | ) | (682 | ) | ||||||||
Other-than-temporary impairments on fixed maturity securities transferred to other comprehensive income (loss) |
(26 | ) | 31 | (31 | ) | 212 | ||||||||||
Other net investment gains (losses) |
(133 | ) | 29 | 88 | 62 | |||||||||||
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|
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Total net investment gains (losses) |
(558 | ) | (84 | ) | (867 | ) | (408 | ) | ||||||||
Net derivative gains (losses) |
591 | (1,543 | ) | 4,824 | (265 | ) | ||||||||||
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Total revenues |
16,746 | 12,690 | 70,262 | 52,265 | ||||||||||||
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Expenses |
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Policyholder benefits and claims |
9,090 | 7,482 | 35,457 | 29,185 | ||||||||||||
Interest credited to policyholder account balances |
1,499 | 1,465 | 5,603 | 4,919 | ||||||||||||
Policyholder dividends |
316 | 329 | 1,446 | 1,485 | ||||||||||||
Other expenses |
4,320 | 3,434 | 17,730 | 12,764 | ||||||||||||
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Total expenses |
15,225 | 12,710 | 60,236 | 48,353 | ||||||||||||
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Income (loss) from continuing operations before provision for income tax |
1,521 | (20 | ) | 10,026 | 3,912 | |||||||||||
Provision for income tax expense (benefit) |
394 | (86 | ) | 3,075 | 1,165 | |||||||||||
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Income (loss) from continuing operations, net of income tax |
1,127 | 66 | 6,951 | 2,747 | ||||||||||||
Income (loss) from discontinued operations, net of income tax |
25 | 19 | 20 | 39 | ||||||||||||
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Net income (loss) |
1,152 | 85 | 6,971 | 2,786 | ||||||||||||
Less: Net income (loss) attributable to noncontrolling interests |
(4 | ) | 3 | (10 | ) | (4 | ) | |||||||||
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Net income (loss) attributable to MetLife, Inc. |
1,156 | 82 | 6,981 | 2,790 | ||||||||||||
Less: Preferred stock dividends |
31 | 31 | 122 | 122 | ||||||||||||
Preferred stock redemption premium (1) |
| | 146 | | ||||||||||||
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Net income (loss) available to MetLife, Inc.s common shareholders |
$ | 1,125 | $ | 51 | $ | 6,713 | $ | 2,668 | ||||||||
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Reconciliation to Operating Earnings Available to Common Shareholders (2) |
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Net income (loss) available to MetLife, Inc.s common shareholders |
$ | 1,125 | $ | 51 | $ | 6,713 | $ | 2,668 | ||||||||
Adjustments from net income (loss) available to MetLife, Inc.s common shareholders to operating earnings available to common shareholders: |
||||||||||||||||
Less: Net investment gains (losses) |
(558 | ) | (84 | ) | (867 | ) | (408 | ) | ||||||||
Less: Net derivative gains (losses) |
591 | (1,543 | ) | 4,824 | (265 | ) | ||||||||||
Less: Other adjustments to continuing operations |
(521 | ) | (58 | ) | (1,641 | ) | (914 | ) | ||||||||
Less: Provision for income tax (expense) benefit |
186 | 526 | (845 | ) | 379 | |||||||||||
Less: Income (loss) from discontinued operations, net of income tax |
25 | 19 | 20 | 39 | ||||||||||||
Add: Net income (loss) attributable to noncontrolling interests |
(4 | ) | 3 | (10 | ) | (4 | ) | |||||||||
Add: Preferred stock redemption premium (1) |
| | 146 | | ||||||||||||
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Operating earnings available to common shareholders |
$ | 1,398 | $ | 1,194 | $ | 5,358 | $ | 3,833 | ||||||||
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Reconciliation of GAAP revenues to operating revenues and GAAP expenses to operating expenses (2) |
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Total revenues |
$ | 16,746 | $ | 12,690 | $ | 70,262 | $ | 52,265 | ||||||||
Less: Net investment gains (losses) |
(558 | ) | (84 | ) | (867 | ) | (408 | ) | ||||||||
Less: Net derivative gains (losses) |
591 | (1,543 | ) | 4,824 | (265 | ) | ||||||||||
Less: Adjustments related to net investment gains (losses) and net derivative gains (losses) |
| (5 | ) | 14 | 1 | |||||||||||
Less: Other adjustments to revenues |
308 | 560 | 907 | 1,494 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total operating revenues |
$ | 16,405 | $ | 13,762 | $ | 65,384 | $ | 51,443 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total expenses |
$ | 15,225 | $ | 12,710 | $ | 60,236 | $ | 48,353 | ||||||||
Less: Adjustments related to net investment gains (losses) and net derivative gains (losses) |
7 | (138 | ) | 572 | 125 | |||||||||||
Less: Other adjustments to expenses |
822 | 751 | 1,990 | 2,284 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total operating expenses |
$ | 14,396 | $ | 12,097 | $ | 57,674 | $ | 45,944 | ||||||||
|
|
|
|
|
|
|
|
For the Three Months Ended December 31, |
For the Years Ended December 31, |
|||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Diluted Earnings Per Common Share Calculation: |
||||||||||||||||
Net income (loss) available to MetLife, Inc.s common shareholders per common share - diluted |
$ | 1.06 | $ | 0.05 | $ | 6.29 | $ | 3.00 | ||||||||
Less: Net investment gains (losses) |
(0.52) | (0.08) | (0.81) | (0.46) | ||||||||||||
Less: Net derivative gains (losses) |
0.55 | (1.52) | 4.52 | (0.30) | ||||||||||||
Less: Other adjustments to continuing operations |
(0.48) | (0.07) | (1.54) | (1.02) | ||||||||||||
Less: Provision for income tax (expense) benefit |
0.18 | 0.52 | (0.79) | 0.43 | ||||||||||||
Less: Income (loss) from discontinued operations, net of income tax |
0.02 | 0.02 | 0.02 | 0.04 | ||||||||||||
Add: Net income (loss) attributable to noncontrolling interest |
| | (0.01) | | ||||||||||||
Add: Preferred stock redemption premium |
| | 0.14 | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Operating earnings available to common shareholders per common share - diluted |
$ | 1.31 | $ | 1.18 | $ | 5.02 | $ | 4.31 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Weighted average common shares outstanding - diluted (1) |
1,066.3 | 1,014.9 | 1,068.1 | 889.6 | ||||||||||||
December 31, | ||||||||||||||||
2011 | 2010 | |||||||||||||||
Book Value Per Common Share Calculation: |
||||||||||||||||
Book value per common share - (actual common shares outstanding) (3) |
$ | 54.59 | $ | 44.18 | ||||||||||||
Less: Accumulated other comprehensive income (loss) per common share |
5.57 | 0.95 | ||||||||||||||
|
|
|
|
|||||||||||||
Book value per common share, excluding accumulated other comprehensive income (loss) - (actual common shares outstanding) (3) |
$ | 49.02 | $ | 43.23 | ||||||||||||
|
|
|
|
|||||||||||||
Common shares outstanding, end of year (1) |
1,058.0 | 1054.4 |
MetLife, Inc.
Reconciliations of Net Income (Loss) Available to Common Shareholders to
Operating Earnings Available to Common Shareholders
(Unaudited)
For the Three Months
Ended December 31, |
For the Years Ended December 31, |
|||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(In millions) | (In millions) | |||||||||||||||
Total U.S. Business Operations: |
||||||||||||||||
Net income (loss) available to MetLife, Inc.s common shareholders |
$ | 1,192 | $ | 406 | $ | 5,607 | $ | 3,490 | ||||||||
Less: Net investment gains (losses) |
(52 | ) | 129 | 151 | 411 | |||||||||||
Less: Net derivative gains (losses) |
823 | (921 | ) | 3,950 | 287 | |||||||||||
Less: Other adjustments to continuing operations |
(381 | ) | 37 | (811 | ) | (485 | ) | |||||||||
Less: Provision for income tax (expense) benefit |
(134 | ) | 264 | (1,150 | ) | (83 | ) | |||||||||
Less: Income (loss) from discontinued operations, net of income tax |
(2 | ) | 5 | 61 | 19 | |||||||||||
Add: Net income (loss) attributable to noncontrolling interest |
(6 | ) | 2 | (3 | ) | 3 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Operating earnings available to common shareholders |
$ | 932 | $ | 894 | $ | 3,403 | $ | 3,344 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Insurance Products: |
||||||||||||||||
Net income (loss) available to MetLife, Inc.s common shareholders |
$ | 566 | $ | (34 | ) | $ | 2,664 | $ | 1,371 | |||||||
Less: Net investment gains (losses) |
(2 | ) | 25 | 53 | 103 | |||||||||||
Less: Net derivative gains (losses) |
160 | (496 | ) | 1,849 | 215 | |||||||||||
Less: Other adjustments to continuing operations |
84 | (57 | ) | (125 | ) | (244 | ) | |||||||||
Less: Provision for income tax (expense) benefit |
(85 | ) | 183 | (623 | ) | (28 | ) | |||||||||
Less: Income (loss) from discontinued operations, net of income tax |
(1 | ) | 2 | 36 | 4 | |||||||||||
Add: Net income (loss) attributable to noncontrolling interest |
1 | | 1 | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Operating earnings available to common shareholders |
$ | 411 | $ | 309 | $ | 1,475 | $ | 1,321 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Retirement Products: |
||||||||||||||||
Net income (loss) available to MetLife, Inc.s common shareholders |
$ | 248 | $ | 10 | $ | 1,421 | $ | 792 | ||||||||
Less: Net investment gains (losses) |
12 | 43 | 84 | 139 | ||||||||||||
Less: Net derivative gains (losses) |
527 | (392 | ) | 1,747 | 235 | |||||||||||
Less: Other adjustments to continuing operations |
(496 | ) | 23 | (777 | ) | (381 | ) | |||||||||
Less: Provision for income tax (expense) benefit |
(14 | ) | 109 | (368 | ) | (4 | ) | |||||||||
Less: Income (loss) from discontinued operations, net of income tax |
| | | 1 | ||||||||||||
Add: Net income (loss) attributable to noncontrolling interest |
(3 | ) | 1 | (2 | ) | 1 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Operating earnings available to common shareholders |
$ | 216 | $ | 228 | $ | 733 | $ | 803 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Corporate Benefit Funding: |
||||||||||||||||
Net income (loss) available to MetLife, Inc.s common shareholders |
$ | 298 | $ | 354 | $ | 1,432 | $ | 1,032 | ||||||||
Less: Net investment gains (losses) |
(63 | ) | 65 | 23 | 176 | |||||||||||
Less: Net derivative gains (losses) |
138 | (39 | ) | 366 | (162 | ) | ||||||||||
Less: Other adjustments to continuing operations |
31 | 71 | 91 | 140 | ||||||||||||
Less: Provision for income tax (expense) benefit |
(35 | ) | (28 | ) | (166 | ) | (54 | ) | ||||||||
Less: Income (loss) from discontinued operations, net of income tax |
(1 | ) | 3 | 25 | 14 | |||||||||||
Add: Net income (loss) attributable to noncontrolling interest |
(4 | ) | 1 | (2 | ) | 2 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Operating earnings available to common shareholders |
$ | 224 | $ | 283 | $ | 1,091 | $ | 920 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Auto & Home: |
||||||||||||||||
Net income (loss) available to MetLife, Inc.s common shareholders |
$ | 80 | $ | 76 | $ | 90 | $ | 295 | ||||||||
Less: Net investment gains (losses) |
1 | (4 | ) | (9 | ) | (7 | ) | |||||||||
Less: Net derivative gains (losses) |
(2 | ) | 6 | (12 | ) | (1 | ) | |||||||||
Less: Provision for income tax (expense) benefit |
| | 7 | 3 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Operating earnings available to common shareholders |
$ | 81 | $ | 74 | $ | 104 | $ | 300 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Total International Operations: (2) |
||||||||||||||||
Net income (loss) available to MetLife, Inc.s common shareholders |
$ | 214 | $ | (182 | ) | $ | 1,933 | $ | (126 | ) | ||||||
Less: Net investment gains (losses) |
(337 | ) | (21 | ) | (837 | ) | (289 | ) | ||||||||
Less: Net derivative gains (losses) |
(230 | ) | (648 | ) | 985 | (491 | ) | |||||||||
Less: Other adjustments to continuing operations |
(5 | ) | (14 | ) | (403 | ) | (427 | ) | ||||||||
Less: Provision for income tax (expense) benefit |
189 | 187 | 15 | 274 | ||||||||||||
Less: Income (loss) from discontinued operations, net of income tax |
27 | 13 | (44 | ) | 22 | |||||||||||
Add: Net income (loss) attributable to noncontrolling interest |
| 1 | (5 | ) | (5 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Operating earnings available to common shareholders |
$ | 570 | $ | 302 | $ | 2,212 | $ | 780 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Japan: |
||||||||||||||||
Net income (loss) available to MetLife, Inc.s common shareholders |
$ | 254 | $ | 2 | $ | 1,185 | $ | 2 | ||||||||
Less: Net investment gains (losses) |
(106 | ) | (9 | ) | (221 | ) | (9 | ) | ||||||||
Less: Net derivative gains (losses) |
(28 | ) | (144 | ) | 200 | (144 | ) | |||||||||
Less: Other adjustments to continuing operations |
23 | 12 | 38 | 12 | ||||||||||||
Less: Provision for income tax (expense) benefit |
41 | 49 | (3 | ) | 49 | |||||||||||
Add: Net income (loss) attributable to noncontrolling interest |
2 | | 5 | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Operating earnings available to common shareholders |
$ | 326 | $ | 94 | $ | 1,176 | $ | 94 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Other International Regions: (2) |
||||||||||||||||
Net income (loss) available to MetLife, Inc.s common shareholders |
$ | (40 | ) | $ | (184 | ) | $ | 748 | $ | (128 | ) | |||||
Less: Net investment gains (losses) |
(231 | ) | (12 | ) | (616 | ) | (280 | ) | ||||||||
Less: Net derivative gains (losses) |
(202 | ) | (504 | ) | 785 | (347 | ) | |||||||||
Less: Other adjustments to continuing operations |
(28 | ) | (26 | ) | (441 | ) | (439 | ) | ||||||||
Less: Provision for income tax (expense) benefit |
148 | 138 | 18 | 225 | ||||||||||||
Less: Income (loss) from discontinued operations, net of income tax |
27 | 13 | (44 | ) | 22 | |||||||||||
Add: Net income (loss) attributable to noncontrolling interest |
(2 | ) | 1 | (10 | ) | (5 | ) | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Operating earnings available to common shareholders |
$ | 244 | $ | 208 | $ | 1,036 | $ | 686 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Corporate & Other: (2) |
||||||||||||||||
Net income (loss) available to MetLife, Inc.s common shareholders |
$ | (281 | ) | $ | (173 | ) | $ | (827 | ) | $ | (696 | ) | ||||
Less: Net investment gains (losses) |
(169 | ) | (192 | ) | (181 | ) | (530 | ) | ||||||||
Less: Net derivative gains (losses) |
(2 | ) | 26 | (111 | ) | (61 | ) | |||||||||
Less: Other adjustments to continuing operations |
(135 | ) | (81 | ) | (427 | ) | (2 | ) | ||||||||
Less: Provision for income tax (expense) benefit |
131 | 75 | 290 | 188 | ||||||||||||
Less: Income (loss) from discontinued operations, net of income tax |
| 1 | 3 | (2 | ) | |||||||||||
Add: Net income (loss) attributable to noncontrolling interest |
2 | | (2 | ) | (2 | ) | ||||||||||
Add: Preferred stock redemption premium (1) |
| | 146 | | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Operating earnings available to common shareholders |
$ | (104 | ) | $ | (2 | ) | $ | (257 | ) | $ | (291 | ) | ||||
|
|
|
|
|
|
|
|
(1) | In connection with the financing of the acquisition of American Life Insurance Company and Delaware American Life Insurance Company in November 2010, MetLife, Inc. issued to AM Holdings LLC (formerly known as ALICO Holdings LLC)(AM Holdings) 6,857,000 shares of convertible preferred stock. For purposes of the December 31, 2010 common share and weighted average common share calculations, the convertible preferred stock was treated as 68,570,000 shares of common stock. On March 8, 2011, MetLife, Inc. issued 68,570,000 shares of common stock for net proceeds of $3.0 billion, which were used to repurchase and cancel the 6,857,000 shares of convertible preferred stock held by AM Holdings, resulting in a preferred stock redemption premium of $146 million. |
(2) | Certain amounts in the prior periods have been reclassified to conform with the current period segment presentation. During the fourth quarter of 2011, MetLife, Inc. began reporting certain operations of MetLife Bank, National Association and insurance operations in the Caribbean Region, Panama and Costa Rica as Divested Businesses. |
(3) | MetLife, Inc.s common equity excludes $2,043 million of equity related to preferred stock. |
Fourth Quarter
Financial Supplement
December 31, 2011
|
![]() |
METLIFE, INC.
TABLE OF CONTENTS
1
METLIFE, INC.
This Quarterly Financial Supplement (QFS) includes certain operating and statistical measures, such as sales and product spreads, among others, to provide supplemental data regarding the performance of our current business. Operating earnings is the measure of segment profit or loss we use to evaluate segment performance and allocate resources. Consistent with accounting principles generally accepted in the United States of America (GAAP) accounting guidance for segment reporting, operating earnings is our measure of segment performance. Operating earnings is also a measure by which senior managements and many other employees performance is evaluated for the purposes of determining their compensation under applicable compensation plans.
Operating earnings is defined as operating revenues less operating expenses, both net of income tax. Operating earnings available to common shareholders is defined as operating earnings less preferred stock dividends.
Operating revenues and operating expenses exclude results of discontinued operations and other businesses that have been or will be sold or exited by MetLife, Inc. (Divested businesses). Operating revenues also excludes net investment gains (losses) (NIGL) and net derivative gains (losses) (NDGL).
The following additional adjustments are made to GAAP revenues, in the line items indicated, in calculating operating revenues:
| Universal life and investment-type product policy fees excludes the amortization of unearned revenue related to NIGL and NDGL (Unearned revenue adjustments) and certain variable annuity guaranteed minimum income benefits (GMIB) fees (GMIB fees); |
| Net investment income: (i) includes amounts for scheduled periodic settlement payments and amortization of premium on derivatives that are hedges of investments but do not qualify for hedge accounting treatment (Investment hedge adjustments), (ii) includes income from discontinued real estate operations, (iii) excludes post-tax operating earnings adjustments relating to insurance joint ventures accounted for under the equity method (Joint venture adjustments), (iv) excludes certain amounts related to contractholder-directed unit-linked investments (Unit-linked contract income), and (v) excludes certain amounts related to securitization entities that are variable interest entities (VIEs) consolidated under GAAP (Securitization entities income); and |
| Other revenues are adjusted for settlements of foreign currency earnings hedges. |
The following additional adjustments are made to GAAP expenses, in the line items indicated, in calculating operating expenses:
| Policyholder benefits and claims and policyholder dividends excludes: (i) changes in the policyholder dividend obligation related to NIGL and NDGL (PDO adjustments), (ii) inflation-indexed benefit adjustments associated with contracts backed by inflation-indexed investments and amounts associated with periodic crediting rate adjustments based on the total return of a contractually referenced pool of assets (Inflation adjustments and pass through adjustments), (iii) benefits and hedging costs related to GMIBs (GMIB costs), and (iv) market value adjustments associated with surrenders or terminations of contracts (Market value adjustments); |
| Interest credited to policyholder account balances includes adjustments for scheduled periodic settlement payments and amortization of premium on derivatives that are hedges of policyholder account balances but do not qualify for hedge accounting treatment (PAB hedge adjustments) and excludes amounts related to net investment income earned on contractholder-directed unit-linked investments (Unit-linked contract costs); |
| Amortization of deferred policy acquisition costs (DAC) and value of business acquired (VOBA) excludes amounts related to: (i) NIGL and NDGL, (ii) GMIB fees and GMIB costs, and (iii) Market value adjustments; |
| Amortization of negative VOBA excludes amounts related to Market value adjustments; |
| Interest expense on debt excludes certain amounts related to securitization entities that are VIEs consolidated under GAAP (Securitization entities debt expense); and |
| Other expenses excludes costs related to: (i) noncontrolling interests, (ii) implementation of new insurance regulatory requirements (Regulatory implementation costs), and (iii) business combinations. |
We believe the presentation of operating earnings and operating earnings available to common shareholders as we measure it for management purposes enhances the understanding of our performance by highlighting the results of operations and the underlying profitability drivers of our business. Operating revenues, operating expenses, operating earnings, operating earnings available to common shareholders, operating earnings available to common shareholders per diluted common share, book value per common share, excluding accumulated other comprehensive income (loss) (AOCI), and book value per diluted common share, excluding AOCI, should not be viewed as substitutes for the following financial measures calculated in accordance with GAAP: GAAP revenues, GAAP expenses, GAAP income (loss) from continuing operations, net of income tax, GAAP net income (loss) available to MetLife, Inc.s common shareholders, GAAP net income (loss) available to MetLife, Inc.s common shareholders per diluted common share, book value per common share and book value per diluted common share, respectively. Reconciliations of these measures to the most directly comparable GAAP measures are included in this QFS, including in the Appendix on page 36, and in MetLifes earnings press release dated February 14, 2012, for the three months and year ended December 31, 2011, which is available at www.metlife.com.
2
METLIFE, INC. |
||||||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||||||
Unaudited (In millions, except per share data) (1) | December 31, 2010 | March 31, 2011 | June 30, 2011 | September 30, 2011 | December 31, 2011 | |||||||||||||||||||
Operating earnings available to common shareholders |
$ | 1,194 | $ | 1,441 | $ | 1,353 | $ | 1,166 | $ | 1,398 | ||||||||||||||
Preferred stock dividends |
31 | 30 | 31 | 30 | 31 | |||||||||||||||||||
Operating earnings |
1,225 | 1,471 | 1,384 | 1,196 | 1,429 | |||||||||||||||||||
Adjustments from operating earnings to income (loss) from continuing operations: |
||||||||||||||||||||||||
Net investment gains (losses) |
(84 | ) | (99 | ) | (155 | ) | (55 | ) | (558 | ) | ||||||||||||||
Net derivative gains (losses) |
(1,543 | ) | (315 | ) | 352 | 4,196 | 591 | |||||||||||||||||
Other adjustments to continuing operations |
(58 | ) | (204 | ) | (457 | ) | (459 | ) | (521 | ) | ||||||||||||||
Provision for income tax (expense) benefit |
526 | 201 | 75 | (1,307 | ) | 186 | ||||||||||||||||||
Income (loss) from continuing operations, net of income tax |
66 | 1,054 | 1,199 | 3,571 | 1,127 | |||||||||||||||||||
Income (loss) from discontinued operations, net of income tax |
19 | (41 | ) | 31 | 5 | 25 | ||||||||||||||||||
Net income (loss) |
85 | 1,013 | 1,230 | 3,576 | 1,152 | |||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interest |
3 | 7 | (7 | ) | (6 | ) | (4 | ) | ||||||||||||||||
Net income (loss) attributable to MetLife, Inc. |
82 | 1,006 | 1,237 | 3,582 | 1,156 | |||||||||||||||||||
Less: Preferred stock dividends |
31 | 30 | 31 | 30 | 31 | |||||||||||||||||||
Less: Preferred stock redemption premium (2) |
- | 146 | - | - | - | |||||||||||||||||||
Net income (loss) available to MetLife, Inc.'s common shareholders |
$ | 51 | $ | 830 | $ | 1,206 | $ | 3,552 | $ | 1,125 | ||||||||||||||
Operating earnings available to common shareholders - diluted |
$ | 1.18 | $ | 1.35 | $ | 1.26 | $ | 1.09 | $ | 1.31 | ||||||||||||||
Net investment gains (losses) |
(0.08 | ) | (0.09 | ) | (0.14 | ) | (0.05 | ) | (0.52 | ) | ||||||||||||||
Net derivative gains (losses) |
(1.52 | ) | (0.29 | ) | 0.33 | 3.94 | 0.55 | |||||||||||||||||
Other adjustments to continuing operations |
(0.07 | ) | (0.19 | ) | (0.43 | ) | (0.43 | ) | (0.48 | ) | ||||||||||||||
Provision for income tax (expense) benefit |
0.52 | 0.19 | 0.07 | (1.23 | ) | 0.18 | ||||||||||||||||||
Discontinued operations, net of income tax |
0.02 | (0.04 | ) | 0.03 | - | 0.02 | ||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interest |
- | 0.01 | (0.01 | ) | (0.01 | ) | - | |||||||||||||||||
Less: Preferred stock redemption premium |
- | 0.14 | - | - | - | |||||||||||||||||||
Net income (loss) available to MetLife, Inc.'s common shareholders per common share - diluted |
$ | 0.05 | $ | 0.78 | $ | 1.13 | $ | 3.33 | $ | 1.06 | ||||||||||||||
Weighted average common shares outstanding - diluted (2) |
1,014.9 | 1,069.5 | 1,071.0 | 1,066.2 | 1,066.3 | |||||||||||||||||||
Unaudited | December 31, 2010 | March 31, 2011 | June 30, 2011 | September 30, 2011 | December 31, 2011 | |||||||||||||||||||
Book value per common share - (actual common shares outstanding) (3) |
$ | 44.18 | $ | 45.24 | $ | 48.48 | $ | 55.13 | $ | 54.59 | ||||||||||||||
Book value per common share, excluding accumulated other comprehensive income (loss) - (actual common shares outstanding) (3) |
$ | 43.23 | $ | 44.18 | $ | 45.31 | $ | 48.69 | $ | 49.02 | ||||||||||||||
Book value per common share - diluted - (weighted average common shares outstanding) (3) |
$ | 45.90 | $ | 44.67 | $ | 47.87 | $ | 54.68 | $ | 54.16 | ||||||||||||||
Book value per common share, excluding accumulated other comprehensive income (loss) - diluted - (weighted average common shares outstanding) (3) |
$ | 44.91 | $ | 43.63 | $ | 44.73 | $ | 48.29 | $ | 48.64 | ||||||||||||||
For the Three Months Ended | ||||||||||||||||||||||||
Unaudited (In millions) | December 31, 2010 | March 31, 2011 | June 30, 2011 | September 30, 2011 | December 31, 2011 | |||||||||||||||||||
Common shares outstanding, beginning of period |
906.9 | 1,054.4 | 1,056.1 | 1,057.4 | 1,057.6 | |||||||||||||||||||
Newly issued shares (2) |
147.5 | 1.7 | 1.3 | 0.2 | 0.4 | |||||||||||||||||||
Common shares outstanding, end of period |
1,054.4 | 1,056.1 | 1,057.4 | 1,057.6 | 1,058.0 | |||||||||||||||||||
Weighted average common shares outstanding - basic (2) |
1,007.3 | 1,058.5 | 1,059.8 | 1,060.2 | 1,060.4 | |||||||||||||||||||
Dilutive effect of stock purchase contracts underlying common equity units |
- | 2.6 | 4.0 | - | - | |||||||||||||||||||
Dilutive effect of stock-based awards |
7.6 | 8.4 | 7.2 | 6.0 | 5.9 | |||||||||||||||||||
Weighted average common shares outstanding - diluted (2) |
1,014.9 | 1,069.5 | 1,071.0 | 1,066.2 | 1,066.3 | |||||||||||||||||||
Policyholder Trust Shares |
222.3 | 219.0 | 216.5 | 215.3 | 212.9 | |||||||||||||||||||
(1) | Certain amounts in the prior periods have been reclassified to conform with the current period segment presentation. During the fourth quarter of 2011, MetLife, Inc. began reporting certain operations of MetLife Bank, National Association ("MetLife Bank") and insurance operations in the Caribbean Region, Panama and Costa Rica (the "Caribbean Business") as Divested businesses. | |||||||||||||||||||||||
(2) | In connection with the financing of the acquisition of American Life Insurance Company and Delaware American Life Insurance Company (collectively, "ALICO") in November 2010, MetLife, Inc. issued to AM Holdings LLC (formerly known as ALICO Holdings LLC)("AM Holdings") 6,857,000 shares of convertible preferred stock. For purposes of the December 31, 2010 common share and weighted average common share calculations, the convertible preferred stock was treated as 68,570,000 shares of common stock. On March 8, 2011, MetLife, Inc. issued 68,570,000 shares of common stock for net proceeds of $3.0 billion, which were used to repurchase and cancel the 6,857,000 shares of convertible preferred stock held by AM Holdings, resulting in a preferred stock redemption premium of $146 million. As the convertible preferred stock shares were treated as common shares in the December 31, 2010 share calculations, there is no impact to the March 31, 2011 share calculations for the 68,570,000 shares of common stock issued on March 8, 2011. | |||||||||||||||||||||||
(3) | Book value per common share, book value per common share, excluding AOCI, book value per common sharediluted and book value per common share, excluding AOCIdiluted exclude $2,043 million of equity related to preferred stock. |
3
METLIFE, INC. | ||||||||||||||||||||||||
|
||||||||||||||||||||||||
Unaudited (In millions) | December 31, 2010 | March 31, 2011 | June 30, 2011 | September 30, 2011 | December 31, 2011 | |||||||||||||||||||
ASSETS |
||||||||||||||||||||||||
Investments: |
||||||||||||||||||||||||
Fixed maturity securities available-for-sale, at estimated fair value |
$ | 324,797 | $ | 333,664 | $ | 341,744 | $ | 353,927 | $ | 350,271 | ||||||||||||||
Equity securities available-for-sale, at estimated fair value |
3,602 | 3,584 | 3,238 | 3,118 | 3,023 | |||||||||||||||||||
Trading and other securities, at estimated fair value (1) |
18,589 | 19,365 | 19,700 | 18,698 | 18,268 | |||||||||||||||||||
Mortgage loans: |
||||||||||||||||||||||||
Held-for-investment, principally at amortized cost (1) |
58,976 | 59,397 | 60,819 | 59,209 | 56,915 | |||||||||||||||||||
Held-for-sale, principally at estimated fair value (2) |
3,321 | 2,435 | 2,805 | 3,740 | 15,178 | |||||||||||||||||||
Mortgage loans, net |
62,297 | 61,832 | 63,624 | 62,949 | 72,093 | |||||||||||||||||||
Policy loans |
11,761 | 11,872 | 11,858 | 11,932 | 11,892 | |||||||||||||||||||
Real estate and real estate joint ventures |
8,030 | 8,042 | 8,234 | 8,197 | 8,563 | |||||||||||||||||||
Other limited partnership interests |
6,416 | 6,409 | 6,453 | 6,538 | 6,378 | |||||||||||||||||||
Short-term investments, principally at estimated fair value |
9,384 | 8,822 | 12,419 | 15,913 | 17,310 | |||||||||||||||||||
Other invested assets, principally at estimated fair value |
15,430 | 13,693 | 14,900 | 23,138 | 23,628 | |||||||||||||||||||
Total investments |
460,306 | 467,283 | 482,170 | 504,410 | 511,426 | |||||||||||||||||||
Cash and cash equivalents, principally at estimated fair value (1) |
12,957 | 10,692 | 9,628 | 10,001 | 10,461 | |||||||||||||||||||
Accrued investment income |
4,328 | 4,478 | 4,341 | 4,793 | 4,344 | |||||||||||||||||||
Premiums, reinsurance and other receivables |
19,799 | 20,315 | 21,070 | 23,137 | 22,481 | |||||||||||||||||||
Deferred policy acquisition costs and value of business acquired |
27,092 | 27,979 | 28,241 | 27,623 | 27,971 | |||||||||||||||||||
Goodwill |
11,781 | 11,946 | 12,036 | 12,006 | 11,935 | |||||||||||||||||||
Other assets |
8,174 | 9,321 | 8,246 | 8,340 | 7,984 | |||||||||||||||||||
Assets of subsidiaries held-for-sale |
3,331 | 3,413 | 3,369 | 3,421 | - | |||||||||||||||||||
Separate account assets |
183,138 | 195,914 | 202,382 | 191,499 | 203,023 | |||||||||||||||||||
Total assets |
$ | 730,906 | $ | 751,341 | $ | 771,483 | $ | 785,230 | $ | 799,625 | ||||||||||||||
LIABILITIES AND EQUITY |
||||||||||||||||||||||||
Liabilities |
||||||||||||||||||||||||
Future policy benefits |
$ | 170,912 | $ | 172,987 | $ | 176,353 | $ | 182,736 | $ | 184,252 | ||||||||||||||
Policyholder account balances |
210,757 | 214,641 | 217,597 | 217,764 | 217,700 | |||||||||||||||||||
Other policy-related balances |
15,750 | 15,641 | 15,456 | 15,451 | 15,599 | |||||||||||||||||||
Policyholder dividends payable |
830 | 820 | 853 | 871 | 774 | |||||||||||||||||||
Policyholder dividend obligation |
876 | 793 | 1,281 | 2,782 | 2,919 | |||||||||||||||||||
Payables for collateral under securities loaned and other transactions |
27,272 | 28,625 | 30,079 | 34,933 | 33,716 | |||||||||||||||||||
Bank deposits |
10,316 | 9,313 | 10,022 | 10,685 | 10,507 | |||||||||||||||||||
Short-term debt |
306 | 572 | 102 | 451 | 686 | |||||||||||||||||||
Long-term debt (1) |
27,586 | 27,604 | 28,269 | 24,753 | 23,692 | |||||||||||||||||||
Collateral financing arrangements |
5,297 | 5,297 | 5,297 | 5,297 | 4,647 | |||||||||||||||||||
Junior subordinated debt securities |
3,191 | 3,191 | 3,192 | 3,192 | 3,192 | |||||||||||||||||||
Current income tax payable |
297 | 113 | 133 | 385 | 193 | |||||||||||||||||||
Deferred income tax liability |
1,856 | 2,238 | 3,764 | 7,214 | 7,535 | |||||||||||||||||||
Other liabilities (2) |
20,366 | 20,037 | 19,707 | 23,121 | 30,914 | |||||||||||||||||||
Liabilities of subsidiaries held-for-sale |
3,043 | 3,206 | 3,163 | 3,221 | - | |||||||||||||||||||
Separate account liabilities |
183,138 | 195,914 | 202,382 | 191,499 | 203,023 | |||||||||||||||||||
Total liabilities |
681,793 | 700,992 | 717,650 | 724,355 | 739,349 | |||||||||||||||||||
Redeemable noncontrolling interests in partially owned consolidated subsidiaries |
117 | 128 | 124 | 130 | 105 | |||||||||||||||||||
Equity |
||||||||||||||||||||||||
MetLife, Inc.s stockholders equity: |
||||||||||||||||||||||||
Preferred stock, at par value |
1 | 1 | 1 | 1 | 1 | |||||||||||||||||||
Convertible preferred stock, at par value |
- | - | - | - | - | |||||||||||||||||||
Common stock, at par value |
10 | 11 | 11 | 11 | 11 | |||||||||||||||||||
Additional paid-in capital |
26,423 | 26,668 | 26,714 | 26,744 | 26,782 | |||||||||||||||||||
Retained earnings |
21,363 | 22,193 | 23,399 | 26,951 | 27,289 | |||||||||||||||||||
Treasury stock, at cost |
(172 | ) | (172 | ) | (172 | ) | (172 | ) | (172 | ) | ||||||||||||||
Accumulated other comprehensive income (loss) |
1,000 | 1,115 | 3,356 | 6,813 | 5,886 | |||||||||||||||||||
Total MetLife, Inc.'s stockholders' equity |
48,625 | 49,816 | 53,309 | 60,348 | 59,797 | |||||||||||||||||||
Noncontrolling interests |
371 | 405 | 400 | 397 | 374 | |||||||||||||||||||
Total equity |
48,996 | 50,221 | 53,709 | 60,745 | 60,171 | |||||||||||||||||||
Total liabilities and equity |
$ | 730,906 | $ | 751,341 | $ | 771,483 | $ | 785,230 | $ | 799,625 | ||||||||||||||
(1) |
At December 31, 2010, March 31, 2011, June 30, 2011, September 30, 2011 and December 31, 2011, $7,080 million, $6,991 million, $6,865 million, $3,380 million and $3,276 million, respectively, of assets and $6,820 million, $6,684 million, $6,547 million, $3,157 million and $3,068 million, respectively, of liabilities are included related to certain securitization entities that are required to be consolidated under GAAP. See pages 31 and 32, note 3 for the amounts by asset category. |
|||||||||||||||||||||||
(2) |
At December 31, 2011, $7,652 million of assets and $7,626 million of liabilities are included related to securitized reverse residential mortgage loans which have been sold, but do not qualify for de-recognition. |
4
5
6
METLIFE, INC. | ||||||||||||||||||||
CONSOLIDATING STATEMENT OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS (1)
|
||||||||||||||||||||
For the Three Months Ended December 31, 2010 | ||||||||||||||||||||
Unaudited (In millions) | Consolidated | U.S. Business | International | Corporate & Other | ||||||||||||||||
OPERATING REVENUES |
||||||||||||||||||||
Premiums |
$ | 7,215 | $ | 5,608 | $ | 1,602 | $ | 5 | ||||||||||||
Universal life and investment-type product policy fees |
1,638 | 1,220 | 418 | - | ||||||||||||||||
Net investment income |
4,437 | 3,765 | 458 | 214 | ||||||||||||||||
Other revenues |
472 | 333 | 23 | 116 | ||||||||||||||||
Total operating revenues |
13,762 | 10,926 | 2,501 | 335 | ||||||||||||||||
OPERATING EXPENSES |
||||||||||||||||||||
Policyholder benefits and claims and policyholder dividends |
7,623 | 6,543 | 1,083 | (3 | ) | |||||||||||||||
Interest credited to policyholder account balances |
1,246 | 1,002 | 244 | - | ||||||||||||||||
Capitalization of DAC |
(1,044 | ) | (626 | ) | (418 | ) | - | |||||||||||||
Amortization of DAC and VOBA |
890 | 629 | 259 | 2 | ||||||||||||||||
Amortization of negative VOBA |
(57 | ) | - | (57 | ) | - | ||||||||||||||
Interest expense on debt |
315 | 3 | 1 | 311 | ||||||||||||||||
Other expenses |
3,124 | 2,023 | 988 | 113 | ||||||||||||||||
Total operating expenses |
12,097 | 9,574 | 2,100 | 423 | ||||||||||||||||
Operating earnings before provision for income tax |
1,665 | 1,352 | 401 | (88 | ) | |||||||||||||||
Provision for income tax expense (benefit) |
440 | 458 | 99 | (117 | ) | |||||||||||||||
Operating earnings |
1,225 | 894 | 302 | 29 | ||||||||||||||||
Preferred stock dividends |
31 | - | - | 31 | ||||||||||||||||
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS |
$ | 1,194 | $ | 894 | $ | 302 | $ | (2 | ) | |||||||||||
Reconciliation to Net Income and Financial Statement Line Item Adjustments from GAAP |
||||||||||||||||||||
Operating earnings |
$ | 1,225 | $ | 894 | $ | 302 | $ | 29 | ||||||||||||
Adjustments from operating earnings to income (loss) from continuing operations: |
||||||||||||||||||||
Net investment gains (losses) |
(84 | ) | 129 | (21 | ) | (192 | ) | |||||||||||||
Net derivative gains (losses) |
(1,543 | ) | (921 | ) | (648 | ) | 26 | |||||||||||||
Premiums |
- | - | - | - | ||||||||||||||||
Universal life and investment-type product policy fees |
51 | 51 | - | - | ||||||||||||||||
Net investment income |
329 | (40 | ) | 179 | 190 | |||||||||||||||
Other revenues |
175 | - | - | 175 | ||||||||||||||||
Policyholder benefits and claims and policyholder dividends |
(188 | ) | (200 | ) | 12 | - | ||||||||||||||
Interest credited to policyholder account balances |
(219 | ) | (8 | ) | (211 | ) | - | |||||||||||||
Capitalization of DAC |
- | - | - | - | ||||||||||||||||
Amortization of DAC and VOBA |
231 | 231 | - | - | ||||||||||||||||
Amortization of negative VOBA |
7 | - | 7 | - | ||||||||||||||||
Interest expense on debt |
(99 | ) | - | - | (99 | ) | ||||||||||||||
Other expenses |
(345 | ) | 3 | (1 | ) | (347 | ) | |||||||||||||
Provision for income tax (expense) benefit |
526 | 264 | 187 | 75 | ||||||||||||||||
Income (loss) from continuing operations, net of income tax |
66 | 403 | (194 | ) | (143 | ) | ||||||||||||||
Income (loss) from discontinued operations, net of income tax |
19 | 5 | 13 | 1 | ||||||||||||||||
Net income (loss) |
85 | 408 | (181 | ) | (142 | ) | ||||||||||||||
Less: Net income (loss) attributable to noncontrolling interest |
3 | 2 | 1 | - | ||||||||||||||||
Net income (loss) attributable to MetLife, Inc. |
82 | 406 | (182 | ) | (142 | ) | ||||||||||||||
Less: Preferred stock dividends |
31 | - | - | 31 | ||||||||||||||||
Less: Preferred stock redemption premium |
- | - | - | - | ||||||||||||||||
Net income (loss) available to MetLife, Inc.'s common shareholders |
$ | 51 | $ | 406 | $ | (182 | ) | $ | (173 | ) | ||||||||||
Premiums, Fees and Other Revenues (Operating) |
$ | 9,325 | $ | 7,161 | $ | 2,043 | $ | 121 | ||||||||||||
(1) |
Certain amounts in the prior periods have been reclassified to conform with the current period segment presentation. During the fourth quarter of 2011, MetLife, Inc. began reporting certain operations of MetLife Bank as Divested businesses. |
7
METLIFE, INC. | ||||||||||||||||||
CONSOLIDATING STATEMENT OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
|
||||||||||||||||||
For the Year Ended December 31, 2011 | ||||||||||||||||||
Unaudited (In millions) | Consolidated | U.S. Business | International | Corporate & Other | ||||||||||||||
OPERATING REVENUES |
||||||||||||||||||
Premiums |
$ | 36,269 | $ | 23,508 | $ | 12,751 | $ | 10 | ||||||||||
Universal life and investment-type product policy fees |
7,528 | 4,958 | 2,570 | - | ||||||||||||||
Net investment income |
19,676 | 14,688 | 4,074 | 914 | ||||||||||||||
Other revenues |
1,911 | 1,418 | 174 | 319 | ||||||||||||||
Total operating revenues |
65,384 | 44,572 | 19,569 | 1,243 | ||||||||||||||
OPERATING EXPENSES |
||||||||||||||||||
Policyholder benefits and claims and policyholder dividends |
36,227 | 27,522 | 8,697 | 8 | ||||||||||||||
Interest credited to policyholder account balances |
6,057 | 3,913 | 2,144 | - | ||||||||||||||
Capitalization of DAC |
(6,849 | ) | (2,956 | ) | (3,893 | ) | - | |||||||||||
Amortization of DAC and VOBA |
4,799 | 2,366 | 2,432 | 1 | ||||||||||||||
Amortization of negative VOBA |
(619 | ) | - | (619 | ) | - | ||||||||||||
Interest expense on debt |
1,305 | 10 | 1 | 1,294 | ||||||||||||||
Other expenses |
16,754 | 8,565 | 7,562 | 627 | ||||||||||||||
Total operating expenses |
57,674 | 39,420 | 16,324 | 1,930 | ||||||||||||||
Operating earnings before provision for income tax |
7,710 | 5,152 | 3,245 | (687 | ) | |||||||||||||
Provision for income tax expense (benefit) |
2,230 | 1,749 | 1,033 | (552 | ) | |||||||||||||
Operating earnings |
5,480 | 3,403 | 2,212 | (135 | ) | |||||||||||||
Preferred stock dividends |
122 | - | - | 122 | ||||||||||||||
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS |
$ | 5,358 | $ | 3,403 | $ | 2,212 | $ | (257 | ) | |||||||||
Reconciliation to Net Income and Financial Statement Line Item Adjustments from GAAP |
||||||||||||||||||
Operating earnings |
$ | 5,480 | $ | 3,403 | $ | 2,212 | $ | (135 | ) | |||||||||
Adjustments from operating earnings to income (loss) from continuing operations: |
||||||||||||||||||
Net investment gains (losses) |
(867 | ) | 151 | (837 | ) | (181 | ) | |||||||||||
Net derivative gains (losses) |
4,824 | 3,950 | 985 | (111 | ) | |||||||||||||
Premiums |
92 | - | 92 | - | ||||||||||||||
Universal life and investment-type product policy fees |
278 | 270 | 8 | - | ||||||||||||||
Net investment income |
(70 | ) | (257 | ) | (468 | ) | 655 | |||||||||||
Other revenues |
621 | - | 11 | 610 | ||||||||||||||
Policyholder benefits and claims and policyholder dividends |
(676 | ) | (236 | ) | (440 | ) | - | |||||||||||
Interest credited to policyholder account balances |
454 | (19 | ) | 473 | - | |||||||||||||
Capitalization of DAC |
9 | - | 9 | - | ||||||||||||||
Amortization of DAC and VOBA |
(592 | ) | (569 | ) | (23 | ) | - | |||||||||||
Amortization of negative VOBA |
78 | - | 78 | - | ||||||||||||||
Interest expense on debt |
(324 | ) | - | - | (324 | ) | ||||||||||||
Other expenses |
(1,511 | ) | - | (143 | ) | (1,368 | ) | |||||||||||
Provision for income tax (expense) benefit |
(845 | ) | (1,150 | ) | 15 | 290 | ||||||||||||
Income (loss) from continuing operations, net of income tax |
6,951 | 5,543 | 1,972 | (564 | ) | |||||||||||||
Income (loss) from discontinued operations, net of income tax |
20 | 61 | (44 | ) | 3 | |||||||||||||
Net income (loss) |
6,971 | 5,604 | 1,928 | (561 | ) | |||||||||||||
Less: Net income (loss) attributable to noncontrolling interest |
(10 | ) | (3 | ) | (5 | ) | (2 | ) | ||||||||||
Net income (loss) attributable to MetLife, Inc. |
6,981 | 5,607 | 1,933 | (559 | ) | |||||||||||||
Less: Preferred stock dividends |
122 | - | - | 122 | ||||||||||||||
Less: Preferred stock redemption premium |
146 | - | - | 146 | ||||||||||||||
Net income (loss) available to MetLife, Inc.'s common shareholders |
$ | 6,713 | $ | 5,607 | $ | 1,933 | $ | (827 | ) | |||||||||
Premiums, Fees and Other Revenues (Operating) |
$ | 45,708 | $ | 29,884 | $ | 15,495 | $ | 329 |
8
METLIFE, INC. CONSOLIDATING STATEMENT OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS (1) |
||||||||||||||||
|
For the Year Ended December 31, 2010 |
| ||||||||||||||
Unaudited (In millions) |
Consolidated | U.S. Business | International | Corporate & Other | ||||||||||||
OPERATING REVENUES |
||||||||||||||||
Premiums |
$ | 27,071 | $ | 22,936 | $ | 4,124 | $ | 11 | ||||||||
Universal life and investment-type product policy fees |
5,817 | 4,497 | 1,320 | - | ||||||||||||
Net investment income |
16,880 | 14,626 | 1,611 | 643 | ||||||||||||
Other revenues |
1,675 | 1,249 | 35 | 391 | ||||||||||||
Total operating revenues |
51,443 | 43,308 | 7,090 | 1,045 | ||||||||||||
OPERATING EXPENSES |
||||||||||||||||
Policyholder benefits and claims and policyholder dividends |
29,972 | 26,624 | 3,362 | (14 | ) | |||||||||||
Interest credited to policyholder account balances |
4,697 | 4,020 | 677 | - | ||||||||||||
Capitalization of DAC |
(3,299 | ) | (2,375 | ) | (924 | ) | - | |||||||||
Amortization of DAC and VOBA |
2,802 | 2,229 | 572 | 1 | ||||||||||||
Amortization of negative VOBA |
(57 | ) | - | (57 | ) | - | ||||||||||
Interest expense on debt |
1,139 | 10 | 3 | 1,126 | ||||||||||||
Other expenses |
10,690 | 7,746 | 2,477 | 467 | ||||||||||||
Total operating expenses |
45,944 | 38,254 | 6,110 | 1,580 | ||||||||||||
Operating earnings before provision for income tax |
5,499 | 5,054 | 980 | (535 | ) | |||||||||||
Provision for income tax expense (benefit) |
1,544 | 1,710 | 200 | (366 | ) | |||||||||||
Operating earnings |
3,955 | 3,344 | 780 | (169 | ) | |||||||||||
Preferred stock dividends |
122 | - | - | 122 | ||||||||||||
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS |
$ | 3,833 | $ | 3,344 | $ | 780 | $ | (291 | ) | |||||||
Reconciliation to Net Income and Financial Statement Line Item Adjustments from GAAP |
||||||||||||||||
Operating earnings |
$ | 3,955 | $ | 3,344 | $ | 780 | $ | (169 | ) | |||||||
Adjustments from operating earnings to income (loss) from continuing operations: |
||||||||||||||||
Net investment gains (losses) |
(408 | ) | 411 | (289 | ) | (530 | ) | |||||||||
Net derivative gains (losses) |
(265 | ) | 287 | (491 | ) | (61 | ) | |||||||||
Premiums |
- | - | - | - | ||||||||||||
Universal life and investment-type product policy fees |
211 | 211 | - | - | ||||||||||||
Net investment income |
631 | (210 | ) | 44 | 797 | |||||||||||
Other revenues |
653 | - | - | 653 | ||||||||||||
Policyholder benefits and claims and policyholder dividends |
(698 | ) | (439 | ) | (259 | ) | - | |||||||||
Interest credited to policyholder account balances |
(222 | ) | (11 | ) | (211 | ) | - | |||||||||
Capitalization of DAC |
- | - | - | - | ||||||||||||
Amortization of DAC and VOBA |
(41 | ) | (41 | ) | - | - | ||||||||||
Amortization of negative VOBA |
7 | - | 7 | - | ||||||||||||
Interest expense on debt |
(411 | ) | - | - | (411 | ) | ||||||||||
Other expenses |
(1,044 | ) | 5 | (8 | ) | (1,041 | ) | |||||||||
Provision for income tax (expense) benefit |
379 | (83 | ) | 274 | 188 | |||||||||||
Income (loss) from continuing operations, net of income tax |
2,747 | 3,474 | (153 | ) | (574 | ) | ||||||||||
Income (loss) from discontinued operations, net of income tax |
39 | 19 | 22 | (2 | ) | |||||||||||
Net income (loss) |
2,786 | 3,493 | (131 | ) | (576 | ) | ||||||||||
Less: Net income (loss) attributable to noncontrolling interest |
(4 | ) | 3 | (5 | ) | (2 | ) | |||||||||
Net income (loss) attributable to MetLife, Inc. |
2,790 | 3,490 | (126 | ) | (574 | ) | ||||||||||
Less: Preferred stock dividends |
122 | - | - | 122 | ||||||||||||
Less: Preferred stock redemption premium |
- | - | - | - | ||||||||||||
Net income (loss) available to MetLife, Inc.'s common shareholders |
$ | 2,668 | $ | 3,490 | $ | (126 | ) | $ | (696 | ) | ||||||
Premiums, Fees and Other Revenues (Operating) |
$ | 34,563 | $ | 28,682 | $ | 5,479 | $ | 402 | ||||||||
(1) Certain amounts in the prior periods have been reclassified to conform with the current period segment presentation. During the fourth quarter of 2011, MetLife, Inc. began reporting certain operations of MetLife Bank as Divested businesses. |
|
9
10
11
U.S. BUSINESS |
||||||||||||||||||||||||||||||
INSURANCE PRODUCTS - GROUP LIFE |
||||||||||||||||||||||||||||||
STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS - PRODUCT LEVEL
|
|
|||||||||||||||||||||||||||||
For the Three Months Ended | For the Year Ended | |||||||||||||||||||||||||||||
Unaudited (In millions, except ratios) | December 31, 2010 | March 31, 2011 | June 30, 2011 | September 30, 2011 | December 31, 2011 | December 31, 2010 | December 31, 2011 | |||||||||||||||||||||||
OPERATING REVENUES |
||||||||||||||||||||||||||||||
Premiums |
$ | 1,735 | $ | 1,765 | $ | 1,818 | $ | 1,711 | $ | 1,771 | $ | 7,222 | $ | 7,065 | ||||||||||||||||
Universal life and investment-type product policy fees |
156 | 159 | 155 | 159 | 157 | 616 | 630 | |||||||||||||||||||||||
Net investment income |
206 | 200 | 205 | 200 | 194 | 826 | 799 | |||||||||||||||||||||||
Other revenues |
- | 2 | 1 | - | 1 | 6 | 4 | |||||||||||||||||||||||
Total operating revenues |
2,097 | 2,126 | 2,179 | 2,070 | 2,123 | 8,670 | 8,498 | |||||||||||||||||||||||
OPERATING EXPENSES |
||||||||||||||||||||||||||||||
Policyholder benefits and claims and policyholder dividends |
1,746 | 1,768 | 1,726 | 1,847 | 1,732 | 7,185 | 7,073 | |||||||||||||||||||||||
Interest credited to policyholder account balances |
42 | 40 | 42 | 43 | 40 | 173 | 165 | |||||||||||||||||||||||
Capitalization of DAC |
(4 | ) | (5 | ) | (4 | ) | (4 | ) | (4 | ) | (15 | ) | (17 | ) | ||||||||||||||||
Amortization of DAC and VOBA |
2 | 3 | 5 | 3 | 5 | 15 | 16 | |||||||||||||||||||||||
Amortization of negative VOBA |
- | - | - | - | - | - | - | |||||||||||||||||||||||
Interest expense on debt |
- | - | - | - | - | - | - | |||||||||||||||||||||||
Other expenses |
160 | 140 | 141 | 141 | 142 | 589 | 564 | |||||||||||||||||||||||
Total operating expenses |
1,946 | 1,946 | 1,910 | 2,030 | 1,915 | 7,947 | 7,801 | |||||||||||||||||||||||
Operating earnings before provision for income tax |
151 | 180 | 269 | 40 | 208 | 723 | 697 | |||||||||||||||||||||||
Provision for income tax expense (benefit) |
53 | 63 | 94 | 14 | 73 | 253 | 244 | |||||||||||||||||||||||
Operating earnings |
98 | 117 | 175 | 26 | 135 | 470 | 453 | |||||||||||||||||||||||
Preferred stock dividends |
- | - | - | - | - | - | - | |||||||||||||||||||||||
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS |
$ | 98 | $ | 117 | $ | 175 | $ | 26 | $ | 135 | $ | 470 | $ | 453 | ||||||||||||||||
Reconciliation to Net Income and Financial Statement Line Item Adjustments from GAAP |
||||||||||||||||||||||||||||||
Operating earnings |
$ | 98 | $ | 117 | $ | 175 | $ | 26 | $ | 135 | $ | 470 | $ | 453 | ||||||||||||||||
Adjustments from operating earnings to income (loss) from continuing operations: |
||||||||||||||||||||||||||||||
Net investment gains (losses) |
(2 | ) | 3 | (6 | ) | (14 | ) | (1 | ) | 9 | (18 | ) | ||||||||||||||||||
Net derivative gains (losses) |
(9 | ) | (22 | ) | 36 | 56 | 13 | 71 | 83 | |||||||||||||||||||||
Premiums |
- | - | - | - | - | - | - | |||||||||||||||||||||||
Universal life and investment-type product policy fees |
- | - | - | - | - | - | - | |||||||||||||||||||||||
Net investment income |
(19 | ) | (18 | ) | (21 | ) | (21 | ) | (20 | ) | (71 | ) | (80 | ) | ||||||||||||||||
Other revenues |
- | - | - | - | - | - | - | |||||||||||||||||||||||
Policyholder benefits and claims and policyholder dividends |
- | - | - | - | - | - | - | |||||||||||||||||||||||
Interest credited to policyholder account balances |
- | - | - | - | - | - | - | |||||||||||||||||||||||
Capitalization of DAC |
- | - | - | - | - | - | - | |||||||||||||||||||||||
Amortization of DAC and VOBA |
- | - | - | - | - | - | - | |||||||||||||||||||||||
Amortization of negative VOBA |
- | - | - | - | - | - | - | |||||||||||||||||||||||
Interest expense on debt |
- | - | - | - | - | - | - | |||||||||||||||||||||||
Other expenses |
- | - | - | - | - | - | - | |||||||||||||||||||||||
Provision for income tax (expense) benefit |
10 | 13 | (3 | ) | (8 | ) | 3 | (3 | ) | 5 | ||||||||||||||||||||
Income (loss) from continuing operations, net of income tax |
78 | 93 | 181 | 39 | 130 | 476 | 443 | |||||||||||||||||||||||
Income (loss) from discontinued operations, net of income tax |
1 | - | - | 2 | - | - | 2 | |||||||||||||||||||||||
Net income (loss) |
79 | 93 | 181 | 41 | 130 | 476 | 445 | |||||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interest |
- | - | - | - | - | - | - | |||||||||||||||||||||||
Net income (loss) attributable to MetLife, Inc. |
79 | 93 | 181 | 41 | 130 | 476 | 445 | |||||||||||||||||||||||
Less: Preferred stock dividends |
- | - | - | - | - | - | - | |||||||||||||||||||||||
Less: Preferred stock redemption premium |
- | - | - | - | - | - | - | |||||||||||||||||||||||
Net income (loss) available to MetLife, Inc.'s common shareholders |
$ | 79 | $ | 93 | $ | 181 | $ | 41 | $ | 130 | $ | 476 | $ | 445 | ||||||||||||||||
Premiums, Fees and Other Revenues (Operating) |
$ | 1,891 | $ | 1,926 | $ | 1,974 | $ | 1,870 | $ | 1,929 | $ | 7,844 | $ | 7,699 | ||||||||||||||||
Group Life Mortality Ratio |
89.7 | % | 88.2 | % | 82.1 | % | 98.5 | % | 85.2 | % |
12
![]() |
U.S. BUSINESS
INSURANCE PRODUCTSINDIVIDUAL LIFE
STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERSPRODUCT LEVEL
For the Three Months Ended | For the Year Ended | |||||||||||||||||||||||||||||
Unaudited (In millions, except ratios) | December 31, 2010 | March 31, 2011 | June 30, 2011 | September 30, 2011 | December 31, 2011 | December 31, 2010 | December 31, 2011 | |||||||||||||||||||||||
OPERATING REVENUES |
||||||||||||||||||||||||||||||
Premiums |
$ | 1,113 | $ | 951 | $ | 988 | $ | 993 | $ | 1,098 | $ | 4,072 | $ | 4,030 | ||||||||||||||||
Universal life and investment-type product policy fees |
457 | 405 | 410 | 407 | 412 | 1,631 | 1,634 | |||||||||||||||||||||||
Net investment income |
1,116 | 1,097 | 1,119 | 1,074 | 1,039 | 4,354 | 4,329 | |||||||||||||||||||||||
Other revenues |
110 | 107 | 112 | 123 | 111 | 398 | 453 | |||||||||||||||||||||||
Total operating revenues |
2,796 | 2,560 | 2,629 | 2,597 | 2,660 | 10,455 | 10,446 | |||||||||||||||||||||||
OPERATING EXPENSES |
||||||||||||||||||||||||||||||
Policyholder benefits and claims and policyholder dividends |
1,750 | 1,603 | 1,628 | 1,709 | 1,562 | 6,621 | 6,502 | |||||||||||||||||||||||
Interest credited to policyholder account balances |
203 | 198 | 201 | 209 | 211 | 771 | 819 | |||||||||||||||||||||||
Capitalization of DAC |
(172 | ) | (166 | ) | (171 | ) | (176 | ) | (182 | ) | (664 | ) | (695 | ) | ||||||||||||||||
Amortization of DAC and VOBA |
259 | 192 | 173 | 152 | 225 | 812 | 742 | |||||||||||||||||||||||
Amortization of negative VOBA |
- | - | - | - | - | - | - | |||||||||||||||||||||||
Interest expense on debt |
1 | - | - | - | - | 1 | - | |||||||||||||||||||||||
Other expenses |
527 | 525 | 545 | 519 | 555 | 2,078 | 2,144 | |||||||||||||||||||||||
Total operating expenses |
2,568 | 2,352 | 2,376 | 2,413 | 2,371 | 9,619 | 9,512 | |||||||||||||||||||||||
Operating earnings before provision for income tax |
228 | 208 | 253 | 184 | 289 | 836 | 934 | |||||||||||||||||||||||
Provision for income tax expense (benefit) |
79 | 73 | 89 | 64 | 101 | 292 | 327 | |||||||||||||||||||||||
Operating earnings |
149 | 135 | 164 | 120 | 188 | 544 | 607 | |||||||||||||||||||||||
Preferred stock dividends |
- | - | - | - | - | - | - | |||||||||||||||||||||||
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS |
$ | 149 | $ | 135 | $ | 164 | $ | 120 | $ | 188 | $ | 544 | $ | 607 | ||||||||||||||||
Reconciliation to Net Income and Financial Statement Line Item Adjustments from GAAP |
||||||||||||||||||||||||||||||
Operating earnings |
$ | 149 | $ | 135 | $ | 164 | $ | 120 | $ | 188 | $ | 544 | $ | 607 | ||||||||||||||||
Adjustments from operating earnings to income (loss) from continuing operations: |
||||||||||||||||||||||||||||||
Net investment gains (losses) |
28 | 25 | 1 | 21 | 7 | 66 | 54 | |||||||||||||||||||||||
Net derivative gains (losses) |
(115 | ) | (70 | ) | 81 | 525 | 42 | 22 | 578 | |||||||||||||||||||||
Premiums |
- | - | - | - | - | - | - | |||||||||||||||||||||||
Universal life and investment-type product policy fees |
(5 | ) | (3 | ) | 1 | 16 | - | 1 | 14 | |||||||||||||||||||||
Net investment income |
(13 | ) | (17 | ) | (19 | ) | (22 | ) | (23 | ) | (49 | ) | (81 | ) | ||||||||||||||||
Other revenues |
- | - | - | - | - | - | - | |||||||||||||||||||||||
Policyholder benefits and claims and policyholder dividends |
- | - | - | - | - | - | - | |||||||||||||||||||||||
Interest credited to policyholder account balances |
- | - | - | - | - | - | - | |||||||||||||||||||||||
Capitalization of DAC |
- | - | - | - | - | - | - | |||||||||||||||||||||||
Amortization of DAC and VOBA |
(12 | ) | - | (4 | ) | (56 | ) | 145 | (90 | ) | 85 | |||||||||||||||||||
Amortization of negative VOBA |
- | - | - | - | - | - | - | |||||||||||||||||||||||
Interest expense on debt |
- | - | - | - | - | - | - | |||||||||||||||||||||||
Other expenses |
1 | - | - | - | - | 1 | - | |||||||||||||||||||||||
Provision for income tax (expense) benefit |
40 | 23 | (22 | ) | (169 | ) | (61 | ) | 16 | (229 | ) | |||||||||||||||||||
Income (loss) from continuing operations, net of income tax |
73 | 93 | 202 | 435 | 298 | 511 | 1,028 | |||||||||||||||||||||||
Income (loss) from discontinued operations, net of income tax |
1 | 20 | 8 | 7 | (1 | ) | 4 | 34 | ||||||||||||||||||||||
Net income (loss) |
74 | 113 | 210 | 442 | 297 | 515 | 1,062 | |||||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interest |
- | - | - | - | 2 | - | 2 | |||||||||||||||||||||||
Net income (loss) attributable to MetLife, Inc. |
74 | 113 | 210 | 442 | 295 | 515 | 1,060 | |||||||||||||||||||||||
Less: Preferred stock dividends |
- | - | - | - | - | - | - | |||||||||||||||||||||||
Less: Preferred stock redemption premium |
- | - | - | - | - | - | - | |||||||||||||||||||||||
Net income (loss) available to MetLife, Inc.s common shareholders |
$ | 74 | $ | 113 | $ | 210 | $ | 442 | $ | 295 | $ | 515 | $ | 1,060 | ||||||||||||||||
Premiums, Fees and Other Revenues (Operating) |
$ | 1,680 | $ | 1,463 | $ | 1,510 | $ | 1,523 | $ | 1,621 | $ | 6,101 | $ | 6,117 | ||||||||||||||||
Mortality as a Percentage of Expected |
82.9 | % | 92.5 | % | 84.4 | % | 98.5 | % | 81.1 | % | ||||||||||||||||||||
Lapse Ratio |
||||||||||||||||||||||||||||||
Traditional Life |
6.4 | % | 6.5 | % | 6.6 | % | 6.8 | % | 6.1 | % | ||||||||||||||||||||
Variable & Universal Life |
6.1 | % | 6.0 | % | 5.8 | % | 5.8 | % | 5.4 | % |
13
U.S. BUSINESS
INSURANCE PRODUCTSNON-MEDICAL HEALTH
STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERSPRODUCT LEVEL
For the Three Months Ended | For the Year Ended | |||||||||||||||||||||||||||||
Unaudited (In millions, except ratios) | December 31, 2010 | March 31, 2011 | June 30, 2011 | September 30, 2011 | December 31, 2011 | December 31, 2010 | December 31, 2011 | |||||||||||||||||||||||
OPERATING REVENUES |
||||||||||||||||||||||||||||||
Premiums |
$ | 1,478 | $ | 1,476 | $ | 1,462 | $ | 1,455 | $ | 1,461 | $ | 5,906 | $ | 5,854 | ||||||||||||||||
Universal life and investment-type product policy fees |
- | - | - | - | - | - | - | |||||||||||||||||||||||
Net investment income |
232 | 232 | 248 | 252 | 247 | 888 | 979 | |||||||||||||||||||||||
Other revenues |
89 | 91 | 91 | 93 | 97 | 357 | 372 | |||||||||||||||||||||||
Total operating revenues |
1,799 | 1,799 | 1,801 | 1,800 | 1,805 | 7,151 | 7,205 | |||||||||||||||||||||||
OPERATING EXPENSES |
||||||||||||||||||||||||||||||
Policyholder benefits and claims and policyholder dividends |
1,326 | 1,294 | 1,280 | 1,260 | 1,298 | 5,269 | 5,132 | |||||||||||||||||||||||
Interest credited to policyholder account balances |
4 | 3 | 3 | 3 | 4 | 19 | 13 | |||||||||||||||||||||||
Capitalization of DAC |
(38 | ) | (45 | ) | (39 | ) | (33 | ) | (35 | ) | (162 | ) | (152 | ) | ||||||||||||||||
Amortization of DAC and VOBA |
39 | 36 | 36 | 31 | 36 | 139 | 139 | |||||||||||||||||||||||
Amortization of negative VOBA |
- | - | - | - | - | - | - | |||||||||||||||||||||||
Interest expense on debt |
- | - | - | - | - | - | - | |||||||||||||||||||||||
Other expenses |
372 | 360 | 352 | 356 | 367 | 1,413 | 1,435 | |||||||||||||||||||||||
Total operating expenses |
1,703 | 1,648 | 1,632 | 1,617 | 1,670 | 6,678 | 6,567 | |||||||||||||||||||||||
Operating earnings before provision for income tax |
96 | 151 | 169 | 183 | 135 | 473 | 638 | |||||||||||||||||||||||
Provision for income tax expense (benefit) |
34 | 53 | 59 | 64 | 47 | 166 | 223 | |||||||||||||||||||||||
Operating earnings |
62 | 98 | 110 | 119 | 88 | 307 | 415 | |||||||||||||||||||||||
Preferred stock dividends |
- | - | - | - | - | - | - | |||||||||||||||||||||||
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS |
$ | 62 | $ | 98 | $ | 110 | $ | 119 | $ | 88 | $ | 307 | $ | 415 | ||||||||||||||||
Reconciliation to Net Income and Financial Statement |
||||||||||||||||||||||||||||||
Operating earnings |
$ | 62 | $ | 98 | $ | 110 | $ | 119 | $ | 88 | $ | 307 | $ | 415 | ||||||||||||||||
Adjustments from operating earnings to income (loss) from continuing operations: |
||||||||||||||||||||||||||||||
Net investment gains (losses) |
(1 | ) | 9 | 8 | 8 | (8 | ) | 28 | 17 | |||||||||||||||||||||
Net derivative gains (losses) |
(372 | ) | (77 | ) | 144 | 1,016 | 105 | 122 | 1,188 | |||||||||||||||||||||
Premiums |
- | - | - | - | - | - | - | |||||||||||||||||||||||
Universal life and investment-type product policy fees |
- | - | - | - | - | - | - | |||||||||||||||||||||||
Net investment income |
(9 | ) | (14 | ) | (16 | ) | (17 | ) | (16 | ) | (31 | ) | (63 | ) | ||||||||||||||||
Other revenues |
- | - | - | - | - | - | - | |||||||||||||||||||||||
Policyholder benefits and claims and policyholder dividends |
- | - | - | 1 | (1 | ) | (5 | ) | - | |||||||||||||||||||||
Interest credited to policyholder account balances |
- | - | - | - | - | - | - | |||||||||||||||||||||||
Capitalization of DAC |
- | - | - | - | - | - | - | |||||||||||||||||||||||
Amortization of DAC and VOBA |
- | - | - | - | - | - | - | |||||||||||||||||||||||
Amortization of negative VOBA |
- | - | - | - | - | - | - | |||||||||||||||||||||||
Interest expense on debt |
- | - | - | - | - | - | - | |||||||||||||||||||||||
Other expenses |
- | - | - | 1 | (1 | ) | - | - | ||||||||||||||||||||||
Provision for income tax (expense) benefit |
133 | 29 | (48 | ) | (353 | ) | (27 | ) | (41 | ) | (399 | ) | ||||||||||||||||||
Income (loss) from continuing operations, net of income tax |
(187 | ) | 45 | 198 | 775 | 140 | 380 | 1,158 | ||||||||||||||||||||||
Income (loss) from discontinued operations, net of income tax |
- | - | - | - | - | - | - | |||||||||||||||||||||||
Net income (loss) |
(187 | ) | 45 | 198 | 775 | 140 | 380 | 1,158 | ||||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interest |
- | - | - | - | (1 | ) | - | (1 | ) | |||||||||||||||||||||
Net income (loss) attributable to MetLife, Inc. |
(187 | ) | 45 | 198 | 775 | 141 | 380 | 1,159 | ||||||||||||||||||||||
Less: Preferred stock dividends |
- | - | - | - | - | - | - | |||||||||||||||||||||||
Less: Preferred stock redemption premium |
- | - | - | - | - | - | - | |||||||||||||||||||||||
Net income (loss) available to MetLife, Inc.s common shareholders |
$ | (187 | ) | $ | 45 | $ | 198 | $ | 775 | $ | 141 | $ | 380 | $ | 1,159 | |||||||||||||||
Premiums, Fees and Other Revenues (Operating) |
$ | 1,567 | $ | 1,567 | $ | 1,553 | $ | 1,548 | $ | 1,558 | $ | 6,263 | $ | 6,226 | ||||||||||||||||
Non-Medical Health Benefit Ratio |
89.7 | % | 87.7 | % | 87.5 | % | 86.6 | % | 88.9 | % |
14
U.S. BUSINESS
INSURANCE PRODUCTS
FUTURE POLICY BENEFITS AND POLICYHOLDER ACCOUNT BALANCES; AND SEPARATE ACCOUNT LIABILITIES
FUTURE POLICY BENEFITS AND POLICYHOLDER ACCOUNT BALANCES
GROUP LIFE
For the Three Months Ended | ||||||||||||||||||||
Unaudited (In millions) |
December 31, 2010 | March 31,2011 | June 30, 2011 | September 30, 2011 | December 31, 2011 | |||||||||||||||
Balance, beginning of period |
$ | 12,005 | $ | 11,892 | $ | 11,963 | $ | 11,744 | $ | 11,587 | ||||||||||
Premiums and deposits |
3,292 | 3,418 | 3,038 | 2,791 | 2,731 | |||||||||||||||
Surrenders and withdrawals |
(1,423 | ) | (1,379 | ) | (1,231 | ) | (1,087 | ) | (896 | ) | ||||||||||
Benefit payments |
(1,900 | ) | (1,888 | ) | (1,844 | ) | (1,827 | ) | (1,833 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net Flows |
(31 | ) | 151 | (37 | ) | (123 | ) | 2 | ||||||||||||
Net transfers from (to) separate account |
- | 2 | 2 | 3 | 2 | |||||||||||||||
Interest |
73 | 67 | 69 | 69 | 68 | |||||||||||||||
Policy charges |
(123 | ) | (120 | ) | (133 | ) | (109 | ) | (122 | ) | ||||||||||
Other |
(32 | ) | (29 | ) | (120 | ) | 3 | (81 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balance, end of period |
$ | 11,892 | $ | 11,963 | $ | 11,744 | $ | 11,587 | $ | 11,456 | ||||||||||
INDIVIDUAL LIFE
|
||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||
Unaudited (In millions) |
December 31, 2010 | March 31,2011 | June 30, 2011 | September 30, 2011 | December 31, 2011 | |||||||||||||||
Balance, beginning of period |
$ | 75,300 | $ | 76,264 | $ | 76,713 | $ | 77,207 | $ | 77,654 | ||||||||||
Premiums and deposits |
2,181 | 2,108 | 2,055 | 2,066 | 2,157 | |||||||||||||||
Surrenders and withdrawals |
(944 | ) | (943 | ) | (895 | ) | (905 | ) | (887 | ) | ||||||||||
Benefit payments |
(621 | ) | (678 | ) | (627 | ) | (694 | ) | (670 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net Flows |
616 | 487 | 533 | 467 | 600 | |||||||||||||||
Net transfers from (to) separate account |
32 | 23 | 36 | 27 | 27 | |||||||||||||||
Interest |
766 | 765 | 767 | 777 | 780 | |||||||||||||||
Policy charges |
(414 | ) | (419 | ) | (428 | ) | (435 | ) | (446 | ) | ||||||||||
Other |
(36 | ) | (407 | ) | (414 | ) | (389 | ) | (666 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balance, end of period |
$ | 76,264 | $ | 76,713 | $ | 77,207 | $ | 77,654 | $ | 77,949 | ||||||||||
NON-MEDICAL HEALTH
|
||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||
Unaudited (In millions) |
December 31, 2010 | March 31,2011 | June 30, 2011 | September 30, 2011 | December 31, 2011 | |||||||||||||||
Balance, beginning of period |
$ | 13,901 | $ | 14,187 | $ | 14,384 | $ | 14,581 | $ | 14,802 | ||||||||||
Premiums and deposits |
1,500 | 1,504 | 1,488 | 1,583 | 1,488 | |||||||||||||||
Surrenders and withdrawals |
(3 | ) | (3 | ) | (3 | ) | (103 | ) | (3 | ) | ||||||||||
Benefit payments |
(1,093 | ) | (1,136 | ) | (1,116 | ) | (1,074 | ) | (1,073 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net Flows |
404 | 365 | 369 | 406 | 412 | |||||||||||||||
Net transfers from (to) separate account |
- | - | - | - | - | |||||||||||||||
Interest |
157 | 157 | 161 | 164 | 167 | |||||||||||||||
Policy charges |
- | - | - | - | - | |||||||||||||||
Other |
(275 | ) | (325 | ) | (333 | ) | (349 | ) | (200 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balance, end of period |
$ | 14,187 | $ | 14,384 | $ | 14,581 | $ | 14,802 | $ | 15,181 | ||||||||||
SEPARATE ACCOUNT LIABILITIES
GROUP LIFE
|
||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||
Unaudited (In millions) |
December 31, 2010 | March 31,2011 | June 30, 2011 | September 30, 2011 | December 31, 2011 | |||||||||||||||
Balance, beginning of period |
$ | 456 | $ | 491 | $ | 516 | $ | 516 | $ | 444 | ||||||||||
Premiums and deposits |
45 | 50 | 47 | 47 | 47 | |||||||||||||||
Surrenders and withdrawals |
(14 | ) | (10 | ) | (7 | ) | (8 | ) | (7 | ) | ||||||||||
Benefit payments |
(1 | ) | - | - | - | - | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net Flows |
30 | 40 | 40 | 39 | 40 | |||||||||||||||
Investment performance |
40 | 24 | - | (70 | ) | 34 | ||||||||||||||
Net transfers from (to) general account |
- | (2 | ) | (2 | ) | (3 | ) | (2 | ) | |||||||||||
Policy charges |
(35 | ) | (37 | ) | (38 | ) | (38 | ) | (38 | ) | ||||||||||
Other |
- | - | - | - | - | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balance, end of period |
$ | 491 | $ | 516 | $ | 516 | $ | 444 | $ | 478 | ||||||||||
INDIVIDUAL LIFE
|
||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||
Unaudited (In millions) |
December 31, 2010 | March 31,2011 | June 30, 2011 | September 30, 2011 | December 31, 2011 | |||||||||||||||
Balance, beginning of period |
$ | 8,576 | $ | 9,076 | $ | 9,368 | $ | 9,301 | $ | 8,071 | ||||||||||
Premiums and deposits |
190 | 193 | 184 | 178 | 240 | |||||||||||||||
Surrenders and withdrawals |
(153 | ) | (139 | ) | (131 | ) | (116 | ) | (109 | ) | ||||||||||
Benefit payments |
(9 | ) | (12 | ) | (14 | ) | (8 | ) | (8 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net Flows |
28 | 42 | 39 | 54 | 123 | |||||||||||||||
Investment performance |
652 | 413 | 69 | (1,121 | ) | 576 | ||||||||||||||
Net transfers from (to) general account |
(32 | ) | (23 | ) | (36 | ) | (27 | ) | (27 | ) | ||||||||||
Policy charges |
(139 | ) | (139 | ) | (139 | ) | (136 | ) | (136 | ) | ||||||||||
Other |
(9 | ) | (1 | ) | - | - | (661 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balance, end of period |
$ | 9,076 | $ | 9,368 | $ | 9,301 | $ | 8,071 | 7,946 |
15
U.S. BUSINESS
INSURANCE PRODUCTS
OTHER EXPENSES BY MAJOR CATEGORY AND INDIVIDUAL LIFE SALES BY PRODUCT
OTHER EXPENSES
For the Three Months Ended | ||||||||||||||||||||
Unaudited (In millions) | December 31, 2010 | March 31, 2011 | June 30, 2011 | September 30, 2011 | December 31, 2011 | |||||||||||||||
Direct and allocated expenses |
$ | 593 | $ | 581 | $ | 584 | $ | 562 | $ | 617 | ||||||||||
Pension and post-retirement benefit costs |
52 | 51 | 51 | 55 | 51 | |||||||||||||||
Premium taxes, other taxes, and licenses & fees |
81 | 71 | 73 | 66 | 68 | |||||||||||||||
Total fixed operating expenses |
$ | 726 | $ | 703 | $ | 708 | $ | 683 | $ | 736 | ||||||||||
Commissions and other variable expenses |
333 | 322 | 330 | 333 | 328 | |||||||||||||||
Total other expenses |
$ | 1,059 | $ | 1,025 | $ | 1,038 | $ | 1,016 | $ | 1,064 | ||||||||||
INDIVIDUAL LIFE SALES BY PRODUCT (1) | ||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||
Unaudited (In millions) | December 31, 2010 |
March 31, 2011 |
June 30, 2011 |
September 30, 2011 |
December 31, 2011 |
|||||||||||||||
Individual Life Sales |
||||||||||||||||||||
Term Life |
$ | 32 | $ | 30 | $ | 33 | $ | 32 | $ | 35 | ||||||||||
Whole Life |
29 | 27 | 30 | 27 | 29 | |||||||||||||||
Variable Life |
8 | 9 | 11 | 9 | 16 | |||||||||||||||
Universal Life |
61 | 57 | 54 | 52 | 56 | |||||||||||||||
Total Individual Life sales (2) |
$ | 130 | $ | 123 | $ | 128 | $ | 120 | $ | 136 |
(1) | Statistical sales information is calculated by MetLife using the LIMRA International, Inc. definition of sales for core direct sales, excluding company sponsored internal exchanges, corporate-owned life insurance, bank-owned life insurance, and private placement variable universal life insurance. |
(2) | Of the $136 million of Individual Life Sales during the three months ended December 31, 2011, approximately 33% were distributed through MetLife agents, 12% through New England Financial agents, 51% through MetLifes third party channels and 4% through other channels. |
16
U.S. BUSINESS
INSURANCE PRODUCTS
GROUP LIFE
For the Three Months Ended | ||||||||||||||||||||
Unaudited |
December 31, 2010 | March 31, 2011 | June 30, 2011 | September 30, 2011 | December 31, 2011 | |||||||||||||||
Investment income yield |
5.40% | 5.52% | 5.73% | 5.66% | 5.62% | |||||||||||||||
Average crediting rate |
2.06% | 2.01% | 2.07% | 2.11% | 2.01% | |||||||||||||||
Annualized general account spread |
3.34% | 3.51% | 3.66% | 3.55% | 3.61% |
VARIABLE & UNIVERSAL LIFE
For the Three Months Ended | ||||||||||||||||||||
Unaudited |
December 31, 2010 | March 31, 2011 | June 30, 2011 | September 30, 2011 | December 31, 2011 | |||||||||||||||
Investment income yield |
6.44% | 6.72% | 6.57% | 6.33% | 5.80% | |||||||||||||||
Average crediting rate |
4.63% | 4.53% | 4.47% | 4.55% | 4.49% | |||||||||||||||
Annualized general account spread (1) |
1.81% | 2.19% | 2.10% | 1.78% | 1.31% |
NON-MEDICAL HEALTH
For the Three Months Ended | ||||||||||||||||||||
Unaudited |
December 31, 2010 | March 31, 2011 | June 30, 2011 | September 30, 2011 | December 31, 2011 | |||||||||||||||
Investment income yield |
6.38% | 6.19% | 6.53% | 6.35% | 6.40% | |||||||||||||||
Average crediting rate |
4.72% | 4.70% | 4.70% | 4.66% | 4.68% | |||||||||||||||
Annualized general account spread |
1.66% | 1.49% | 1.83% | 1.69% | 1.72% |
(1) | This represents the general account spread for Variable & Universal Life, a component of Individual Life. |
17
18
U.S. BUSINESS
RETIREMENT PRODUCTS
FUTURE POLICY BENEFITS AND POLICYHOLDER ACCOUNT BALANCES; AND SEPARATE ACCOUNT LIABILITIES
FUTURE POLICY BENEFITS AND POLICYHOLDER ACCOUNT BALANCES
For the Three Months Ended | ||||||||||||||||||||
Unaudited (In millions) |
December 31, 2010 | March 31, 2011 | June 30, 2011 | September 30, 2011 | December 31, 2011 | |||||||||||||||
Balance, beginning of period |
$ | 57,485 | $ | 55,346 | $ | 54,973 | $ | 55,675 | $ | 60,319 | ||||||||||
Premiums and deposits (1), (2) |
1,775 | 1,745 | 2,027 | 2,812 | 2,311 | |||||||||||||||
Surrenders and withdrawals |
(999 | ) | (913 | ) | (921 | ) | (991 | ) | (1,300 | ) | ||||||||||
Benefit payments |
(469 | ) | (496 | ) | (493 | ) | (503 | ) | (487 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net Flows |
307 | 336 | 613 | 1,318 | 524 | |||||||||||||||
Net transfers from (to) separate account |
(1,131 | ) | (846 | ) | (733 | ) | (624 | ) | (1,401 | ) | ||||||||||
Interest |
560 | 545 | 546 | 551 | 540 | |||||||||||||||
Policy charges |
(16 | ) | (17 | ) | (20 | ) | (19 | ) | (15 | ) | ||||||||||
Other |
(1,859 | ) | (391 | ) | 296 | 3,418 | (823 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balance, end of period |
$ | 55,346 | $ | 54,973 | $ | 55,675 | $ | 60,319 | $ | 59,144 | ||||||||||
SEPARATE ACCOUNT LIABILITIES
|
||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||
Unaudited (In millions) |
December 31, 2010 | March 31, 2011 | June 30, 2011 | September 30, 2011 | December 31, 2011 | |||||||||||||||
Balance, beginning of period |
$ | 97,587 | $ | 107,335 | $ | 114,569 | $ | 118,522 | $ | 108,707 | ||||||||||
Premiums and deposits (1) |
3,978 | 4,564 | 5,703 | 6,787 | 5,778 | |||||||||||||||
Surrenders and withdrawals |
(1,851 | ) | (2,106 | ) | (2,330 | ) | (2,112 | ) | (1,993 | ) | ||||||||||
Benefit payments |
(205) | (206) | (219) | (209) | (203) | |||||||||||||||
Net Flows |
1,922 | 2,252 | 3,154 | 4,466 | 3,582 | |||||||||||||||
Investment performance |
7,191 | 4,664 | 655 | (14,336 | ) | 7,219 | ||||||||||||||
Net transfers from (to) general account |
1,131 | 846 | 733 | 624 | 1,401 | |||||||||||||||
Policy charges |
(496 | ) | (529 | ) | (589 | ) | (574 | ) | (589 | ) | ||||||||||
Other |
- | 1 | - | 5 | (34) | |||||||||||||||
Balance, end of period |
$ | 107,335 | $ | 114,569 | $ | 118,522 | $ | 108,707 | $ | 120,286 |
(1) | Includes company sponsored internal exchanges. |
(2) | Includes premiums and deposits directed to the General Account investment option of a variable annuity product. |
19
U.S. BUSINESS
RETIREMENT PRODUCTS
OTHER EXPENSES BY MAJOR CATEGORY AND INDIVIDUAL ANNUITY SALES BY PRODUCT
OTHER EXPENSES
For the Three Months Ended | ||||||||||||||||||||
Unaudited (In millions) |
December 31, 2010 | March 31, 2011 | June 30, 2011 | September 30, 2011 | December 31, 2011 | |||||||||||||||
Direct and allocated expenses |
$ | 180 | $ | 181 | $ | 198 | $ | 187 | $ | 203 | ||||||||||
Pension and post-retirement benefit costs |
21 | 20 | 20 | 21 | 20 | |||||||||||||||
Premium taxes, other taxes, and licenses & fees |
6 | 7 | 7 | 6 | 12 | |||||||||||||||
Total fixed operating expenses |
$ | 207 | $ | 208 | $ | 225 | $ | 214 | $ | 235 | ||||||||||
Commissions and other variable expenses |
446 | 470 | 559 | 653 | 579 | |||||||||||||||
Total other expenses |
$ | 653 | $ | 678 | $ | 784 | $ | 867 | $ | 814 | ||||||||||
INDIVIDUAL ANNUITY SALES BY PRODUCT (1) | ||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||
Unaudited (in millions) |
December 31, 2010 | March 31, 2011 | June 30, 2011 | September 30, 2011 | December 31, 2011 | |||||||||||||||
Individual Annuity Sales |
||||||||||||||||||||
Annuities Sales (1) |
||||||||||||||||||||
Fixed annuity sales |
$ | 383 | $ | 362 | $ | 376 | $ | 617 | $ | 548 | ||||||||||
Variable annuity sales |
5,129 | 5,691 | 6,971 | 8,561 | 7,229 | |||||||||||||||
Total annuity sales (2) |
$ | 5,512 | $ | 6,053 | $ | 7,347 | $ | 9,178 | $ | 7,777 | ||||||||||
Separate Account and General Account |
||||||||||||||||||||
Separate Accounts |
||||||||||||||||||||
Total variable annuities separate accounts |
$ | 3,809 | $ | 4,384 | $ | 5,398 | $ | 6,442 | $ | 5,538 | ||||||||||
General Accounts |
||||||||||||||||||||
Fixed annuity |
383 | 362 | 376 | 617 | 548 | |||||||||||||||
Variable annuity |
1,320 | 1,307 | 1,573 | 2,119 | 1,691 | |||||||||||||||
Total general accounts |
1,703 | 1,669 | 1,949 | 2,736 | 2,239 | |||||||||||||||
Total premiums and deposits |
$ | 5,512 | $ | 6,053 | $ | 7,347 | $ | 9,178 | $ | 7,777 |
(1) | Statutory premiums direct and assumed, excluding company sponsored internal exchanges. |
(2) | Of the $7,777 million of Individual Annuity Sales during the three months ended December 31, 2011, approximately 16% were distributed through MetLife agents, 5% through New England Financial agents, 71% through MetLifes third party channels, 6% through MetLife Resources representatives, 1% through Retirement & Benefit Funding, and 1% through other distribution channels. |
20
U.S. BUSINESS |
||||||||||||||||||||
RETIREMENT PRODUCTS |
||||||||||||||||||||
DEFERRED ANNUITIES |
||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||
Unaudited | December 31, 2010 | March 31, 2011 | June 30, 2011 | September 30, 2011 | December 31, 2011 | |||||||||||||||
Investment income yield |
6.47 | % | 6.17 | % | 6.11 | % | 6.07 | % | 6.48 | % | ||||||||||
Average crediting rate |
3.65 | % | 3.58 | % | 3.54 | % | 3.50 | % | 3.47 | % | ||||||||||
Annualized general account spread |
2.82 | % | 2.59 | % | 2.57 | % | 2.57 | % | 3.01 | % |
21
U.S. BUSINESS
CORPORATE BENEFIT FUNDING
STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
For the Three Months Ended | For the Year Ended | |||||||||||||||||||||||||||||
Unaudited (In millions) | December 31, 2010 | March 31, 2011 | June 30, 2011 | September 30, 2011 | December 31, 2011 | December 31, 2010 | December 31, 2011 | |||||||||||||||||||||||
OPERATING REVENUES |
||||||||||||||||||||||||||||||
Premiums |
$ | 391 | $ | 291 | $ | 781 | $ | 724 | $ | 622 | $ | 1,938 | $ | 2,418 | ||||||||||||||||
Universal life and investment-type product policy fees |
57 | 54 | 58 | 69 | 50 | 226 | 231 | |||||||||||||||||||||||
Net investment income |
1,313 | 1,311 | 1,325 | 1,289 | 1,256 | 4,954 | 5,181 | |||||||||||||||||||||||
Other revenues |
65 | 60 | 61 | 61 | 67 | 246 | 249 | |||||||||||||||||||||||
Total operating revenues |
1,826 | 1,716 | 2,225 | 2,143 | 1,995 | 7,364 | 8,079 | |||||||||||||||||||||||
OPERATING EXPENSES |
||||||||||||||||||||||||||||||
Policyholder benefits and claims and policyholder dividends |
926 | 821 | 1,292 | 1,287 | 1,194 | 4,041 | 4,594 | |||||||||||||||||||||||
Interest credited to policyholder account balances |
346 | 335 | 330 | 327 | 329 | 1,445 | 1,321 | |||||||||||||||||||||||
Capitalization of DAC |
(2 | ) | (12 | ) | (6 | ) | (6 | ) | (3 | ) | (19 | ) | (27 | ) | ||||||||||||||||
Amortization of DAC and VOBA |
4 | 5 | 5 | 4 | 3 | 16 | 17 | |||||||||||||||||||||||
Amortization of negative VOBA |
- | - | - | - | - | - | - | |||||||||||||||||||||||
Interest expense on debt |
3 | 2 | 2 | 2 | 2 | 6 | 8 | |||||||||||||||||||||||
Other expenses |
114 | 119 | 118 | 126 | 124 | 460 | 487 | |||||||||||||||||||||||
Total operating expenses |
1,391 | 1,270 | 1,741 | 1,740 | 1,649 | 5,949 | 6,400 | |||||||||||||||||||||||
Operating earnings before provision for income tax |
435 | 446 | 484 | 403 | 346 | 1,415 | 1,679 | |||||||||||||||||||||||
Provision for income tax expense (benefit) |
152 | 157 | 170 | 139 | 122 | 495 | 588 | |||||||||||||||||||||||
Operating earnings |
283 | 289 | 314 | 264 | 224 | 920 | 1,091 | |||||||||||||||||||||||
Preferred stock dividends |
- | - | - | - | - | - | - | |||||||||||||||||||||||
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS |
$ | 283 | $ | 289 | $ | 314 | $ | 264 | $ | 224 | $ | 920 | $ | 1,091 | ||||||||||||||||
Reconciliation to Net Income and Financial Statement Line Item Adjustments from GAAP |
||||||||||||||||||||||||||||||
Operating earnings |
$ | 283 | $ | 289 | $ | 314 | $ | 264 | $ | 224 | $ | 920 | $ | 1,091 | ||||||||||||||||
Adjustments from operating earnings to income (loss) from continuing operations: |
||||||||||||||||||||||||||||||
Net investment gains (losses) |
65 | 12 | (12 | ) | 86 | (63 | ) | 176 | 23 | |||||||||||||||||||||
Net derivative gains (losses) |
(39 | ) | (127 | ) | (52 | ) | 407 | 138 | (162 | ) | 366 | |||||||||||||||||||
Premiums |
- | - | - | - | - | - | - | |||||||||||||||||||||||
Universal life and investment-type product policy fees |
- | - | - | - | - | - | - | |||||||||||||||||||||||
Net investment income |
48 | 44 | 35 | 38 | 28 | 190 | 145 | |||||||||||||||||||||||
Other revenues |
- | - | - | - | - | - | - | |||||||||||||||||||||||
Policyholder benefits and claims and policyholder dividends |
30 | 8 | (12 | ) | (38 | ) | 7 | (42 | ) | (35 | ) | |||||||||||||||||||
Interest credited to policyholder account balances |
(8 | ) | (8 | ) | (8 | ) | (2 | ) | (1 | ) | (11 | ) | (19 | ) | ||||||||||||||||
Capitalization of DAC |
- | - | - | - | - | - | - | |||||||||||||||||||||||
Amortization of DAC and VOBA |
- | - | - | - | - | - | - | |||||||||||||||||||||||
Amortization of negative VOBA |
- | - | - | - | - | - | - | |||||||||||||||||||||||
Interest expense on debt |
- | - | - | - | - | - | - | |||||||||||||||||||||||
Other expenses |
1 | - | 1 | 2 | (3 | ) | 3 | - | ||||||||||||||||||||||
Provision for income tax (expense) benefit |
(28 | ) | 25 | 17 | (173 | ) | (35 | ) | (54 | ) | (166 | ) | ||||||||||||||||||
Income (loss) from continuing operations, net of income tax |
352 | 243 | 283 | 584 | 295 | 1,020 | 1,405 | |||||||||||||||||||||||
Income (loss) from discontinued operations, net of income tax |
3 | - | 21 | 5 | (1 | ) | 14 | 25 | ||||||||||||||||||||||
Net income (loss) |
355 | 243 | 304 | 589 | 294 | 1,034 | 1,430 | |||||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interest |
1 | - | - | 2 | (4 | ) | 2 | (2 | ) | |||||||||||||||||||||
Net income (loss) attributable to MetLife, Inc. |
354 | 243 | 304 | 587 | 298 | 1,032 | 1,432 | |||||||||||||||||||||||
Less: Preferred stock dividends |
- | - | - | - | - | - | - | |||||||||||||||||||||||
Less: Preferred stock redemption premium |
- | - | - | - | - | - | - | |||||||||||||||||||||||
Net income (loss) available to MetLife, Inc.s common shareholders |
$ | 354 | $ | 243 | $ | 304 | $ | 587 | $ | 298 | $ | 1,032 | $ | 1,432 | ||||||||||||||||
Premiums, Fees and Other Revenues (Operating) |
$ | 513 | $ | 405 | $ | 900 | $ | 854 | $ | 739 | $ | 2,410 | $ | 2,898 |
22
23
U.S. BUSINESS |
||||||||||||||||||||
CORPORATE BENEFIT FUNDING |
||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||
Unaudited (In millions) | December 31, 2010 | March 31, 2011 | June 30, 2011 | September 30, 2011 | December 31, 2011 | |||||||||||||||
Direct and allocated expenses |
$ | 65 | $ | 64 | $ | 64 | $ | 66 | $ | 81 | ||||||||||
Pension and post-retirement benefit costs |
11 | 11 | 11 | 11 | 11 | |||||||||||||||
Premium taxes, other taxes, and licenses & fees |
1 | 6 | 5 | 10 | 4 | |||||||||||||||
Total fixed operating expenses |
$ | 77 | $ | 81 | $ | 80 | $ | 87 | $ | 96 | ||||||||||
Commissions and other variable expenses |
37 | 38 | 38 | 39 | 28 | |||||||||||||||
Total other expenses |
$ | 114 | $ | 119 | $ | 118 | $ | 126 | $ | 124 |
24
25
26
27
INTERNATIONAL
JAPAN
STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
For the Three Months Ended | For the Year Ended | |||||||||||||||||||||||||||||
Unaudited (In millions) | December 31, 2010 | March 31, 2011 | June 30, 2011 | September 30, 2011 | December 31, 2011 | December 31, 2010 | December 31, 2011 | |||||||||||||||||||||||
OPERATING REVENUES |
||||||||||||||||||||||||||||||
Premiums |
$ | 499 | $ | 1,517 | $ | 1,602 | $ | 1,601 | $ | 1,605 | $ | 499 | $ | 6,325 | ||||||||||||||||
Universal life and investment-type product policy fees |
55 | 194 | 195 | 220 | 215 | 55 | 824 | |||||||||||||||||||||||
Net investment income |
145 | 439 | 517 | 540 | 583 | 145 | 2,079 | |||||||||||||||||||||||
Other revenues |
7 | 9 | 4 | 5 | 4 | 7 | 22 | |||||||||||||||||||||||
Total operating revenues |
706 | 2,159 | 2,318 | 2,366 | 2,407 | 706 | 9,250 | |||||||||||||||||||||||
OPERATING EXPENSES |
||||||||||||||||||||||||||||||
Policyholder benefits and claims and policyholder dividends |
309 | 949 | 1,019 | 999 | 1,006 | 309 | 3,973 | |||||||||||||||||||||||
Interest credited to policyholder account balances |
123 | 369 | 388 | 401 | 403 | 123 | 1,561 | |||||||||||||||||||||||
Capitalization of DAC |
(149 | ) | (522 | ) | (519 | ) | (619 | ) | (590 | ) | (149 | ) | (2,250 | ) | ||||||||||||||||
Amortization of DAC and VOBA |
82 | 292 | 371 | 318 | 331 | 82 | 1,312 | |||||||||||||||||||||||
Amortization of negative VOBA |
(49 | ) | (146 | ) | (141 | ) | (135 | ) | (133 | ) | (49 | ) | (555 | ) | ||||||||||||||||
Interest expense on debt |
- | - | - | - | - | - | - | |||||||||||||||||||||||
Other expenses |
244 | 770 | 823 | 909 | 896 | 244 | 3,398 | |||||||||||||||||||||||
Total operating expenses |
560 | 1,712 | 1,941 | 1,873 | 1,913 | 560 | 7,439 | |||||||||||||||||||||||
Operating earnings before provision for income tax |
146 | 447 | 377 | 493 | 494 | 146 | 1,811 | |||||||||||||||||||||||
Provision for income tax expense (benefit) |
52 | 157 | 132 | 178 | 168 | 52 | 635 | |||||||||||||||||||||||
Operating earnings |
94 | 290 | 245 | 315 | 326 | 94 | 1,176 | |||||||||||||||||||||||
Preferred stock dividends |
- | - | - | - | - | - | - | |||||||||||||||||||||||
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS |
$ | 94 | $ | 290 | $ | 245 | $ | 315 | $ | 326 | $ | 94 | $ | 1,176 | ||||||||||||||||
Reconciliation to Net Income and Financial Statement Line Item Adjustments from GAAP |
||||||||||||||||||||||||||||||
Operating earnings |
$ | 94 | $ | 290 | $ | 245 | $ | 315 | $ | 326 | $ | 94 | $ | 1,176 | ||||||||||||||||
Adjustments from operating earnings to income (loss) from continuing operations: |
||||||||||||||||||||||||||||||
Net investment gains (losses) |
(9 | ) | (47 | ) | (47 | ) | (21 | ) | (106 | ) | (9 | ) | (221 | ) | ||||||||||||||||
Net derivative gains (losses) |
(144 | ) | (8 | ) | 135 | 101 | (28 | ) | (144 | ) | 200 | |||||||||||||||||||
Premiums |
- | - | - | - | - | - | - | |||||||||||||||||||||||
Universal life and investment-type product policy fees |
- | - | - | - | - | - | - | |||||||||||||||||||||||
Net investment income |
116 | 259 | (168 | ) | (354 | ) | (156 | ) | 116 | (419 | ) | |||||||||||||||||||
Other revenues |
- | - | 3 | 5 | 4 | - | 12 | |||||||||||||||||||||||
Policyholder benefits and claims and policyholder dividends |
5 | (8 | ) | (10 | ) | (9 | ) | (22 | ) | 5 | (49 | ) | ||||||||||||||||||
Interest credited to policyholder account balances |
(116 | ) | (259 | ) | 197 | 332 | 164 | (116 | ) | 434 | ||||||||||||||||||||
Capitalization of DAC |
- | - | - | - | - | - | - | |||||||||||||||||||||||
Amortization of DAC and VOBA |
- | - | - | (20 | ) | 1 | - | (19 | ) | |||||||||||||||||||||
Amortization of negative VOBA |
7 | 19 | 19 | 19 | 17 | 7 | 74 | |||||||||||||||||||||||
Interest expense on debt |
- | - | - | - | - | - | - | |||||||||||||||||||||||
Other expenses |
- | - | 5 | (15 | ) | 15 | - | 5 | ||||||||||||||||||||||
Provision for income tax (expense) benefit |
49 | 16 | (48 | ) | (12 | ) | 41 | 49 | (3 | ) | ||||||||||||||||||||
Income (loss) from continuing operations, net of income tax |
2 | 262 | 331 | 341 | 256 | 2 | 1,190 | |||||||||||||||||||||||
Income (loss) from discontinued operations, net of income tax |
- | - | - | - | - | - | - | |||||||||||||||||||||||
Net income (loss) |
2 | 262 | 331 | 341 | 256 | 2 | 1,190 | |||||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interest |
- | - | 1 | 2 | 2 | - | 5 | |||||||||||||||||||||||
Net income (loss) attributable to MetLife, Inc. |
2 | 262 | 330 | 339 | 254 | 2 | 1,185 | |||||||||||||||||||||||
Less: Preferred stock dividends |
- | - | - | - | - | - | - | |||||||||||||||||||||||
Less: Preferred stock redemption premium |
- | - | - | - | - | - | - | |||||||||||||||||||||||
Net income (loss) available to MetLife, Inc.'s common shareholders |
$ | 2 | $ | 262 | $ | 330 | $ | 339 | $ | 254 | $ | 2 | $ | 1,185 | ||||||||||||||||
Premiums, Fees and Other Revenues (Operating) |
$ | 561 | $ | 1,720 | $ | 1,801 | $ | 1,826 | $ | 1,824 | $ | 561 | $ | 7,171 |
28
29
30
31
METLIFE, INC. |
| |||||||||||||||||||||
INVESTMENT PORTFOLIO RESULTS BY ASSET CATEGORY AND ANNUALIZED YIELDS |
| |||||||||||||||||||||
At or For the Year Ended | ||||||||||||||||||||||
Unaudited (In millions) | December 31, 2010 | March 31, 2011 | June 30, 2011 | September 30, 2011 | December 31, 2011 | |||||||||||||||||
Fixed Maturity Securities |
||||||||||||||||||||||
Yield (1) |
5.54% | 4.91% | 4.93% | 4.95% | 4.94% | |||||||||||||||||
Investment income (2), (3), (4) |
$ | 12,567 | $ | 3,693 | $ | 7,487 | $ | 11,208 | $ | 15,016 | ||||||||||||
Investment gains (losses) (3) |
(255 | ) | (163 | ) | (268 | ) | (454 | ) | (932 | ) | ||||||||||||
Ending carrying value (2), (3) |
325,391 | 334,409 | 342,607 | 354,611 | 351,011 | |||||||||||||||||
Mortgage Loans |
||||||||||||||||||||||
Yield (1) |
5.51% | 5.54% | 5.52% | 5.54% | 5.53% | |||||||||||||||||
Investment income (3), (4) |
2,821 | 759 | 1,524 | 2,330 | 3,162 | |||||||||||||||||
Investment gains (losses) (3) |
22 | 47 | 115 | 160 | 175 | |||||||||||||||||
Ending carrying value (3) |
55,457 | 55,061 | 56,927 | 59,722 | 61,303 | |||||||||||||||||
Real Estate and Real Estate Joint Ventures |
||||||||||||||||||||||
Yield (1) |
1.10% | 2.83% | 3.85% | 4.15% | 3.76% | |||||||||||||||||
Investment income (3) |
77 | 57 | 156 | 252 | 307 | |||||||||||||||||
Investment gains (losses) (3) |
(40 | ) | 29 | 76 | 241 | 230 | ||||||||||||||||
Ending carrying value |
8,030 | 8,042 | 8,234 | 8,197 | 8,563 | |||||||||||||||||
Policy Loans |
||||||||||||||||||||||
Yield (1) |
6.38% | 5.42% | 5.41% | 5.46% | 5.43% | |||||||||||||||||
Investment income |
649 | 160 | 320 | 482 | 641 | |||||||||||||||||
Ending carrying value |
11,761 | 11,872 | 11,858 | 11,932 | 11,892 | |||||||||||||||||
Equity Securities |
||||||||||||||||||||||
Yield (1) |
4.40% | 3.45% | 4.70% | 4.42% | 4.44% | |||||||||||||||||
Investment income |
128 | 30 | 78 | 106 | 141 | |||||||||||||||||
Investment gains (losses) |
104 | 36 | (34 | ) | (37 | ) | (23 | ) | ||||||||||||||
Ending carrying value |
3,602 | 3,584 | 3,238 | 3,118 | 3,023 | |||||||||||||||||
Other Limited Partnership Interests |
||||||||||||||||||||||
Yield (1) |
14.99% | 15.14% | 12.52% | 12.07% | 10.58% | |||||||||||||||||
Investment income |
879 | 243 | 402 | 582 | 681 | |||||||||||||||||
Investment gains (losses) |
(18 | ) | 3 | 8 | 8 | 4 | ||||||||||||||||
Ending carrying value |
6,416 | 6,409 | 6,453 | 6,538 | 6,378 | |||||||||||||||||
Cash and Short-term Investments |
||||||||||||||||||||||
Yield (1), (5) |
0.61% | 1.09% | 1.09% | 1.10% | 1.04% | |||||||||||||||||
Investment income |
81 | 43 | 84 | 122 | 155 | |||||||||||||||||
Investment gains (losses) |
2 | - | 1 | 1 | 2 | |||||||||||||||||
Ending carrying value (3) |
22,302 | 19,455 | 22,026 | 25,901 | 27,750 | |||||||||||||||||
Other Invested Assets (1) |
||||||||||||||||||||||
Investment income |
492 | 12 | 177 | 336 | 454 | |||||||||||||||||
Investment gains (losses) (3) |
(8 | ) | 4 | (3 | ) | (3 | ) | (9 | ) | |||||||||||||
Ending carrying value |
15,430 | 13,693 | 14,900 | 23,138 | 23,628 | |||||||||||||||||
Total Investments |
||||||||||||||||||||||
Investment income yield (1) |
5.51% | 4.92% | 5.00% | 5.05% | 5.01% | |||||||||||||||||
Investment fees and expenses yield |
(0.14 | ) | (0.12 | ) | (0.13 | ) | (0.13 | ) | (0.13 | ) | ||||||||||||
Net Investment Income Yield (1), (3), (5) |
5.37% | 4.80% | 4.87% | 4.92% | 4.88% | |||||||||||||||||
Investment income |
$ | 17,694 | $ | 4,997 | $ | 10,228 | $ | 15,418 | $ | 20,557 | ||||||||||||
Investment fees and expenses |
(465 | ) | (128 | ) | (266 | ) | (403 | ) | (546 | ) | ||||||||||||
Net Investment Income including Divested businesses |
17,229 | 4,869 | 9,962 | 15,015 | 20,011 | |||||||||||||||||
Less: Net investment Income from Divested businesses (5) |
349 | 84 | 164 | 246 | 335 | |||||||||||||||||
Net Investment Income (3) |
16,880 | 4,785 | 9,798 | 14,769 | 19,676 | |||||||||||||||||
Ending Carrying Value (3) |
$ | 448,389 | $ | 452,525 | $ | 466,243 | $ | 493,157 | $ | 493,548 | ||||||||||||
Investment portfolio gains (losses) including Divested businesses |
$ | (193 | ) | $ | (44 | ) | $ | (105 | ) | $ | (84 | ) | $ | (553 | ) | |||||||
Less: Investment portfolio gains (losses) from Divested businesses (5) |
(33 | ) | (3 | ) | (9 | ) | (2 | ) | (140 | ) | ||||||||||||
Investment Portfolio Gains (Losses) (3), (5) |
(160 | ) | (41 | ) | (96 | ) | (82 | ) | (413 | ) | ||||||||||||
Gross investment gains |
1,180 | 285 | 633 | 1,107 | 1,354 | |||||||||||||||||
Gross investment losses |
(840 | ) | (243 | ) | (531 | ) | (730 | ) | (1,058 | ) | ||||||||||||
Writedowns |
(500 | ) | (83 | ) | (198 | ) | (459 | ) | (709 | ) | ||||||||||||
Investment Portfolio Gains (Losses) (3), (5) |
(160 | ) | (41 | ) | (96 | ) | (82 | ) | (413 | ) | ||||||||||||
Investment portfolio gains (losses) income tax (expense) benefit |
46 | 14 | 35 | 30 | 148 | |||||||||||||||||
Investment Portfolio Gains (Losses), Net of Income Tax |
$ | (114 | ) | $ | (27 | ) | $ | (61 | ) | $ | (52 | ) | $ | (265 | ) | |||||||
Derivative Gains (Losses) including Divested businesses |
$ | (614 | ) | $ | (386 | ) | $ | (93 | ) | $ | 4,036 | $ | 4,545 | |||||||||
Less: Derivative gains (losses) from Divested businesses (5) |
(41 | ) | (2 | ) | (11 | ) | (150 | ) | (163 | ) | ||||||||||||
Derivative gains (losses) (3), (5) |
(573 | ) | (384 | ) | (82 | ) | 4,186 | 4,708 | ||||||||||||||
Derivative gains (losses) income tax (expense) benefit |
144 | 131 | 24 | (1,472 | ) | (1,643 | ) | |||||||||||||||
Derivative Gains (Losses), Net of Income Tax |
$ | (429 | ) | $ | (253 | ) | $ | (58 | ) | $ | 2,714 | $ | 3,065 | |||||||||
(1) |
Yields are calculated as investment income as a percent of average quarterly asset carrying values. Investment income excludes recognized gains and losses and reflects the adjustments described on page 2. Asset carrying values exclude unrealized investment gains (losses), collateral received from counterparties associated with our securities lending program, freestanding derivative assets, collateral received from derivative counterparties, the effects of consolidating under GAAP certain VIEs that are treated as CSEs, contractholder-directed unit-linked investments and securitized reverse residential mortgage loans. A yield is not presented for other invested assets, as it is not considered a meaningful measure of performance for this asset class. | |||||||||||||||||||||
(2) |
Fixed maturity securities includes $594 million, $745 million, $863 million, $684 million and $740 million in ending carrying value, and $234 million, $28 million, $44 million, $6 million and $31 million of investment income related to trading and other securities at or for the year-to-date period ended December 31, 2010, March 31, 2011, June 30, 2011, September 30, 2011 and December 31, 2011, respectively. | |||||||||||||||||||||
(3) |
Certain measures in this yield table vary from the most directly comparable measures presented in accordance with GAAP. The reconciliation of the yield table measures to the most directly comparable measures presented in accordance with GAAP are: 1) Fixed maturity securities ending carrying value excludes contractholder-directed unit-linked investments of $17,794 million, $18,459 million, $18,690 million, $17,874 million and $17,411 million at December 31, 2010, March 31, 2011, June 30, 2011, September 30, 2011 and December 31, 2011, respectively; 2) Ending carrying value excludes the effects of consolidating under GAAP certain VIEs that are treated as CSEs which are accounted for under the fair value option as follows: trading and other securities (included within fixed maturity securities in the yield table above) of $201 million, $161 million, $147 million, $140 million and $117 million, mortgage loans of $6,840 million, $6,771 million, $6,697 million, $3,227 million and $3,138 million and cash and short-term investments of $39 million, $59 million, $21 million, $13 million and $21 million at December 31, 2010, March 31, 2011, June 30, 2011, September 30, 2011 and December 31, 2011, respectively ;3) Mortgage loans ending carrying value excludes securitized reverse residential mortgage loans of $7,652 million at December 31, 2011; 4) Net investment income adjustments as presented on page 36 within the reconciliation to Net Income; 5) Investment portfolio gains (losses) presented in the above yield table and GAAP net investment gains (losses) adjustments as presented below; and 6) Derivative gains (losses) presented in the above yield table and GAAP net derivative gains (losses) adjustments as presented below:
|
| ||||||||||||||||||||
For the Year-to-Date Period Ended | ||||||||||||||||||||||
December 31, 2010 | March 31, 2011 | June 30, 2011 | September 30, 2011 | December 31, 2011 | ||||||||||||||||||
Investment portfolio gains (losses)in above yield table | $ | (193 | ) | $ | (44 | ) | $ | (105 | ) | $ | (84 | ) | $ | (553 | ) | |||||||
Real estate discontinued operations | (14 | ) | (28 | ) | (71 | ) | (97 | ) | (96 | ) | ||||||||||||
Net investment gains (losses) related to certain CSEs | 6 | 25 | 9 | 2 | 5 | |||||||||||||||||
Other gains (losses) reported in net investment gains (losses) on GAAP basis | (207 | ) | (52 | ) | (87 | ) | (130 | ) | (223 | ) | ||||||||||||
Net investment gains (losses) - GAAP basis | $ | (408 | ) | $ | (99 | ) | $ | (254 | ) | $ | (309 | ) | $ | (867 | ) | |||||||
For the Year-to-Date Period Ended | ||||||||||||||||||||||
December 31, 2010 | March 31, 2011 | June 30, 2011 | September 30, 2011 | December 31, 2011 | ||||||||||||||||||
Derivative gains (losses)in above yield table | $ | (614 | ) | $ | (386 | ) | $ | (93 | ) | $ | 4,036 | $ | 4,545 | |||||||||
Investment hedge adjustments | 208 | 39 | 94 | 164 | 249 | |||||||||||||||||
Joint venture adjustments | 130 | 23 | 23 | 23 | 23 | |||||||||||||||||
Settlement of foreign currency earnings hedges | - | 1 | (3 | ) | (8 | ) | (12 | ) | ||||||||||||||
PAB hedge adjustments | 11 | 8 | 16 | 18 | 19 | |||||||||||||||||
Net derivative gains (losses) - GAAP basis | $ | (265 | ) | $ | (315 | ) | $ | 37 | $ | 4,233 | $ | 4,824 | ||||||||||
(4) |
Investment income from fixed maturity securities and mortgage loans includes prepayment fees. | |||||||||||||||||||||
(5) |
Prior period yields have been recast to conform to the current period presentation to exclude from asset carrying values freestanding derivatives and collateral received from derivative counterparties. Also, net investment income, investment portfolio gains (losses), and derivative gains (losses) are presented including and excluding the impact of Divested businesses. Yields are calculated including the net investment income and ending carrying values of the Divested businesses. See page 2 for discussion of Divested businesses. |
32
METLIFE, INC. |
||||||||||||||||||||||||||||||||||||||||
GROSS UNREALIZED GAINS AND LOSSES AGING SCHEDULE |
||||||||||||||||||||||||||||||||||||||||
December 31, 2010 | March 31, 2011 | June 30, 2011 | September 30, 2011 | December 31, 2011 | ||||||||||||||||||||||||||||||||||||
Unaudited (In millions) |
Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | ||||||||||||||||||||||||||||||
Less than 20% |
$ | 4,268 | 64.9% | $ | 4,806 | 72.8% | $ | 3,315 | 62.1% | $ | 2,818 | 53.7% | $ | 2,896 | 52.5% | |||||||||||||||||||||||||
20% or more for less than six months |
368 | 5.6% | 446 | 6.8% | 825 | 15.5% | 1,377 | 26.2% | 1,332 | 24.2% | ||||||||||||||||||||||||||||||
20% or more for six months or greater |
1,944 | 29.5% | 1,344 | 20.4% | 1,197 | 22.4% | 1,055 | 20.1% | 1,285 | 23.3% | ||||||||||||||||||||||||||||||
Total Gross Unrealized Losses |
$ | 6,580 | 100.0% | $ | 6,596 | 100.0% | $ | 5,337 | 100.0% | $ | 5,250 | 100.0% | $ | 5,513 | 100.0% | |||||||||||||||||||||||||
Total Gross Unrealized Gains |
$ | 13,760 | $ | 13,208 | $ | 16,178 | $ | 25,168 | $ | 25,973 | ||||||||||||||||||||||||||||||
GROSS UNREALIZED GAINS AND LOSSES AGING SCHEDULE |
||||||||||||||||||||||||||||||||||||||||
EQUITY SECURITIES AVAILABLE-FOR-SALE (1) |
||||||||||||||||||||||||||||||||||||||||
December 31, 2010 | March 31, 2011 | June 30, 2011 | September 30, 2011 | December 31, 2011 | ||||||||||||||||||||||||||||||||||||
Unaudited (In millions) |
Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | ||||||||||||||||||||||||||||||
Less than 20% |
$ | 71 | 29.5% | $ | 74 | 34.9% | $ | 42 | 36.5% | $ | 53 | 23.3% | $ | 76 | 25.4% | |||||||||||||||||||||||||
20% or more for less than six months |
22 | 9.1% | 18 | 8.5% | 4 | 3.5% | 89 | 39.0% | 123 | 41.1% | ||||||||||||||||||||||||||||||
20% or more for six months or greater |
148 | 61.4% | 120 | 56.6% | 69 | 60.0% | 86 | 37.7% | 100 | 33.5% | ||||||||||||||||||||||||||||||
Total Gross Unrealized Losses |
$ | 241 | 100.0% | $ | 212 | 100.0% | $ | 115 | 100.0% | $ | 228 | 100.0% | $ | 299 | 100.0% | |||||||||||||||||||||||||
Total Gross Unrealized Gains |
$ | 222 | $ | 283 | $ | 225 | $ | 119 | $ | 114 | ||||||||||||||||||||||||||||||
(1) MetLife, Inc.'s review of its fixed maturity securities 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 cost or amortized cost by less than 20%; (ii) securities where the estimated fair value had declined and remained below cost or amortized cost by 20% or more for less than six months; and (iii) securities where the estimated fair value had declined and remained below cost or amortized cost by 20% or more for six months or greater. |
|
33
METLIFE, INC. |
||||||||||||||||||||||||||||||||||||||||||
BY SECTOR AND QUALITY DISTRIBUTION
|
|
|||||||||||||||||||||||||||||||||||||||||
December 31, 2010 | March 31, 2011 | June 30, 2011 | September 30, 2011 | December 31, 2011 | ||||||||||||||||||||||||||||||||||||||
Unaudited (In millions) |
Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | ||||||||||||||||||||||||||||||||
U.S. corporate securities |
$ | 91,772 | 28.3% | $ | 93,549 | 28.0% | $ | 96,797 | 28.3% | $ | 106,575 | 30.1% | $ | 105,785 | 30.2% | |||||||||||||||||||||||||||
Foreign corporate securities |
67,888 | 20.9% | 68,697 | 20.6% | 70,538 | 20.6% | 63,522 | 18.0% | 64,018 | 18.3% | ||||||||||||||||||||||||||||||||
Foreign government securities |
42,002 | 12.9% | 45,189 | 13.6% | 49,246 | 14.4% | 52,959 | 15.0% | 52,536 | 15.0% | ||||||||||||||||||||||||||||||||
Residential mortgage-backed securities (1) |
45,852 | 14.1% | 46,120 | 13.8% | 44,615 | 13.1% | 42,890 | 12.1% | 42,637 | 12.2% | ||||||||||||||||||||||||||||||||
U.S. Treasury and agency securities |
33,304 | 10.2% | 35,479 | 10.6% | 35,565 | 10.4% | 41,834 | 11.8% | 40,012 | 11.4% | ||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities |
20,675 | 6.4% | 19,785 | 5.9% | 19,518 | 5.7% | 19,585 | 5.5% | 19,069 | 5.4% | ||||||||||||||||||||||||||||||||
State and political subdivision securities |
10,129 | 3.1% | 10,961 | 3.3% | 11,669 | 3.4% | 13,141 | 3.7% | 13,235 | 3.8% | ||||||||||||||||||||||||||||||||
Asset-backed securities (1) |
13,168 | 4.1% | 13,877 | 4.2% | 13,792 | 4.1% | 13,421 | 3.8% | 12,979 | 3.7% | ||||||||||||||||||||||||||||||||
Other fixed maturity securities |
7 | 0.0% | 7 | 0.0% | 4 | 0.0% | - | 0.0% | - | 0.0% | ||||||||||||||||||||||||||||||||
Total fixed maturity securities available-for-sale |
$ | 324,797 | 100.0% | $ | 333,664 | 100.0% | $ | 341,744 | 100.0% | $ | 353,927 | 100.0% | $ | 350,271 | 100.0% | |||||||||||||||||||||||||||
NAIC |
RATING AGENCY | |||||||||||||||||||||||||||||||||||||||||
RATING |
DESIGNATION | |||||||||||||||||||||||||||||||||||||||||
1 |
Aaa / Aa / A | $ | 231,198 | 71.2% | $ | 236,943 | 71.0% | $ | 239,761 | 70.2% | $ | 250,596 | 70.8% | $ | 246,786 | 70.5% | ||||||||||||||||||||||||||
2 |
Baa | 68,729 | 21.2% | 71,582 | 21.5% | 77,066 | 22.5% | 78,837 | 22.3% | 78,531 | 22.4% | |||||||||||||||||||||||||||||||
3 |
Ba | 15,290 | 4.7% | 15,428 | 4.6% | 15,266 | 4.5% | 15,348 | 4.3% | 14,375 | 4.1% | |||||||||||||||||||||||||||||||
4 |
B | 8,308 | 2.6% | 8,391 | 2.5% | 8,489 | 2.5% | 7,844 | 2.2% | 8,849 | 2.5% | |||||||||||||||||||||||||||||||
5 |
Caa and lower | 1,142 | 0.3% | 1,172 | 0.4% | 1,103 | 0.3% | 1,157 | 0.3% | 1,668 | 0.5% | |||||||||||||||||||||||||||||||
6 |
In or near default | 130 | 0.0% | 148 | 0.0% | 59 | 0.0% | 145 | 0.1% | 62 | 0.0% | |||||||||||||||||||||||||||||||
Total fixed maturity securities available-for-sale (2) |
$ | 324,797 | 100.0% | $ | 333,664 | 100.0% | $ | 341,744 | 100.0% | $ | 353,927 | 100.0% | $ | 350,271 | 100.0% |
(1) |
A reclassification from the asset-backed securities sector to the residential mortgage-backed securities sector has been made to the prior period amounts for securities backed by sub-prime mortgage loans. | |||||||||||||||||||||
(2) |
Amounts presented are based on rating agency designations and equivalent ratings of the National Association of Insurance Commissioners ("NAIC"), except as described below. Amounts presented for certain structured securities (i.e., non-agency residential mortgage-backed securities, commercial mortgage-backed securities and asset-backed securities), held by MetLife, Inc.'s insurance subsidiaries that file NAIC statutory financial statements are based on ratings from revised NAIC rating methodologies. The NAIC's present methodology is to evaluate structured securities held by insurers using the revised NAIC rating methodologies on an annual basis. If such insurance subsidiaries of MetLife, Inc. acquire structured securities that have not been previously evaluated by the NAIC, but are expected to be evaluated by the NAIC in the upcoming annual review, an internally developed rating is used until a final rating becomes available. These revised NAIC ratings may not correspond to the rating agency designations. The rating agency designations are based on availability of applicable ratings from those rating agencies on the NAIC acceptable rating organizations list. |
SUMMARY OF REAL ESTATE AND REAL ESTATE JOINT VENTURES
|
||||||||||||||||||||
December 31, 2010 | March 31, 2011 | June 30, 2011 | September 30, 2011 | December 31, 2011 | ||||||||||||||||
Unaudited (In millions) |
||||||||||||||||||||
Traditional (3), (4) |
$ | 5,171 | $ | 5,611 | $ | 5,709 | $ | 5,697 | $ | 5,959 | ||||||||||
Real estate joint ventures and funds |
2,707 | 2,266 | 2,356 | 2,327 | 2,340 | |||||||||||||||
Subtotal |
7,878 | 7,877 | 8,065 | 8,024 | 8,299 | |||||||||||||||
Foreclosed |
152 | 165 | 169 | 173 | 264 | |||||||||||||||
Total Real Estate and Real Estate Joint Ventures |
$ | 8,030 | $ | 8,042 | $ | 8,234 | $ | 8,197 | $ | 8,563 |
(3) |
Includes wholly-owned real estate and operating real estate joint ventures. | |
(4) |
Includes real estate held-for-sale and held-for-investment. |
34
(1) As of December 31, 2011, Residential mortgage loans with a carrying value of $3,359 million were transferred to Mortgage loans held-for-sale in connection with the pending disposition of the depository business of MetLife Bank. | ||
(2) Excludes the effects of securitized reverse residential mortgage loans which have been sold, but do not qualify for de-recognition, of $7,652 million as of December 31, 2011. | ||
(3) Excludes the effects of consolidating under GAAP certain VIEs that are treated as CSEs. See page 31, note 3 for the amount excluded for each period presented. |
SUMMARY OF COMMERCIAL MORTGAGE LOANS |
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BY REGION AND PROPERTY TYPE (4) |
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December 31, 2010 | March 31, 2011 | June 30, 2011 | September 30, 2011 | December 31, 2011 | ||||||||||||||||||||||||||||||||||||
Unaudited (In millions) | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | ||||||||||||||||||||||||||||||
South Atlantic |
$ | 7,910 | 20.9% | $ | 7,930 | 20.8% | $ | 8,323 | 21.3% | $ | 8,591 | 21.4% | $ | 9,022 | 22.3% | |||||||||||||||||||||||||
Pacific |
8,616 | 22.8% | 8,052 | 21.1% | 7,801 | 20.0% | 8,195 | 20.4% | 8,209 | 20.3% | ||||||||||||||||||||||||||||||
Middle Atlantic |
5,486 | 14.5% | 5,301 | 13.9% | 5,873 | 15.0% | 6,535 | 16.3% | 6,370 | 15.8% | ||||||||||||||||||||||||||||||
International |
4,095 | 10.8% | 4,636 | 12.2% | 4,518 | 11.6% | 4,540 | 11.3% | 4,713 | 11.7% | ||||||||||||||||||||||||||||||
West South Central |
2,922 | 7.7% | 2,921 | 7.7% | 3,019 | 7.7% | 3,145 | 7.9% | 3,220 | 8.0% | ||||||||||||||||||||||||||||||
East North Central |
2,900 | 7.7% | 2,848 | 7.5% | 3,111 | 8.0% | 3,101 | 7.7% | 2,984 | 7.3% | ||||||||||||||||||||||||||||||
New England |
1,310 | 3.5% | 1,482 | 3.9% | 1,510 | 3.9% | 1,491 | 3.7% | 1,563 | 3.9% | ||||||||||||||||||||||||||||||
Mountain |
811 | 2.2% | 842 | 2.2% | 838 | 2.1% | 823 | 2.1% | 746 | 1.8% | ||||||||||||||||||||||||||||||
East South Central |
461 | 1.2% | 460 | 1.2% | 467 | 1.2% | 454 | 1.1% | 487 | 1.2% | ||||||||||||||||||||||||||||||
West North Central |
643 | 1.7% | 631 | 1.7% | 628 | 1.6% | 511 | 1.3% | 365 | 0.9% | ||||||||||||||||||||||||||||||
Multi-Region and Other |
2,664 | 7.0% | 2,984 | 7.8% | 2,962 | 7.6% | 2,734 | 6.8% | 2,761 | 6.8% | ||||||||||||||||||||||||||||||
Total |
$ | 37,818 | 100.0% | $ | 38,087 | 100.0% | $ | 39,050 | 100.0% | $ | 40,120 | 100.0% | $ | 40,440 | 100.0% | |||||||||||||||||||||||||
Office |
$ | 16,857 | 44.6% | $ | 16,728 | 43.9% | $ | 17,951 | 46.0% | $ | 19,290 | 48.1% | $ | 18,582 | 45.9% | |||||||||||||||||||||||||
Retail |
9,215 | 24.3% | 9,217 | 24.2% | 8,901 | 22.8% | 8,564 | 21.3% | 9,524 | 23.6% | ||||||||||||||||||||||||||||||
Apartments |
3,630 | 9.6% | 3,536 | 9.3% | 3,755 | 9.6% | 4,166 | 10.4% | 4,011 | 9.9% | ||||||||||||||||||||||||||||||
Hotel |
3,089 | 8.2% | 3,223 | 8.5% | 3,135 | 8.0% | 2,982 | 7.4% | 3,114 | 7.7% | ||||||||||||||||||||||||||||||
Industrial |
2,910 | 7.7% | 3,138 | 8.2% | 3,046 | 7.8% | 3,138 | 7.8% | 3,102 | 7.7% | ||||||||||||||||||||||||||||||
Other |
2,117 | 5.6% | 2,245 | 5.9% | 2,262 | 5.8% | 1,980 | 5.0% | 2,107 | 5.2% | ||||||||||||||||||||||||||||||
Total |
$ | 37,818 | 100.0% | $ | 38,087 | 100.0% | $ | 39,050 | 100.0% | $ | 40,120 | 100.0% | $ | 40,440 | 100.0% |
(4) Reclassifications have been made to the prior period amounts from various regions to the Multi-Region and Other region to conform to the current period presentation. |
35
METLIFE, INC. RECONCILIATION DETAIL (1) |
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For the Three Months Ended | For the Year Ended | |||||||||||||||||||||||||||||
Unaudited (In millions) | December 31, 2010 | March 31, 2011 | June 30, 2011 | September 30, 2011 | December 31, 2011 | December 31, 2010 | December 31, 2011 | |||||||||||||||||||||||
Reconciliation to Net Income and Financial Statement Line Item Adjustments from GAAP |
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Operating earnings |
$ | 1,225 | $ | 1,471 | $ | 1,384 | $ | 1,196 | $ | 1,429 | $ | 3,955 | $ | 5,480 | ||||||||||||||||
Adjustments from operating earnings to income (loss) from continuing operations: |
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Net investment gains (losses) |
(84 | ) | (99 | ) | (155 | ) | (55 | ) | (558 | ) | (408 | ) | (867 | ) | ||||||||||||||||
Net derivative gains (losses) |
(1,543 | ) | (315 | ) | 352 | 4,196 | 591 | (265 | ) | 4,824 | ||||||||||||||||||||
Premiums - Divested businesses |
- | 22 | 24 | 23 | 23 | - | 92 | |||||||||||||||||||||||
Universal life and investment-type product policy fees |
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Unearned revenue adjustments |
(5 | ) | (3 | ) | 1 | 16 | - | 1 | 14 | |||||||||||||||||||||
GMIB fees |
56 | 58 | 58 | 74 | 66 | 210 | 256 | |||||||||||||||||||||||
Divested businesses |
- | 2 | 2 | 2 | 2 | - | 8 | |||||||||||||||||||||||
Net investment income |
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Investment hedge adjustments |
(36 | ) | (39 | ) | (55 | ) | (70 | ) | (85 | ) | (208 | ) | (249 | ) | ||||||||||||||||
Income from discontinued real estate operations |
(4 | ) | (2 | ) | (2 | ) | - | - | (2 | ) | (4 | ) | ||||||||||||||||||
Joint venture adjustments |
(28 | ) | (23 | ) | - | - | - | (130 | ) | (23 | ) | |||||||||||||||||||
Unit-linked contract income |
211 | 419 | (32 | ) | (824 | ) | (16 | ) | 211 | (453 | ) | |||||||||||||||||||
Securitization entities income |
99 | 92 | 92 | 97 | 43 | 411 | 324 | |||||||||||||||||||||||
Divested businesses |
87 | 84 | 80 | 82 | 89 | 349 | 335 | |||||||||||||||||||||||
Other revenues |
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Settlement of foreign currency earnings hedges |
| (1 | ) | 4 | 5 | 4 | - | 12 | ||||||||||||||||||||||
Divested businesses |
175 | 99 | 130 | 198 | 182 | 653 | 609 | |||||||||||||||||||||||
Policyholder benefits and claims and policyholder dividends |
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PDO adjustments |
- | - | - | - | - | - | - | |||||||||||||||||||||||
Inflation adjustments and pass through adjustments |
42 | (10 | ) | (197 | ) | (189 | ) | (24 | ) | (306 | ) | (420 | ) | |||||||||||||||||
GMIB costs |
(230 | ) | (145 | ) | (10 | ) | 411 | (448 | ) | (392 | ) | (192 | ) | |||||||||||||||||
Market value adjustments |
- | (2 | ) | (1 | ) | (4 | ) | - | - | (7 | ) | |||||||||||||||||||
Divested businesses |
- | (13 | ) | (15 | ) | (16 | ) | (13 | ) | - | (57 | ) | ||||||||||||||||||
Interest credited to policyholder account balances |
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PAB hedge adjustments |
(8 | ) | (8 | ) | (8 | ) | (2 | ) | (1 | ) | (11 | ) | (19 | ) | ||||||||||||||||
Unit-linked contract costs |
(211 | ) | (435 | ) | 77 | 801 | 40 | (211 | ) | 483 | ||||||||||||||||||||
Divested businesses |
- | (2 | ) | (3 | ) | (3 | ) | (2 | ) | - | (10 | ) | ||||||||||||||||||
Capitalization of DAC - Divested businesses |
- | 2 | 2 | 3 | 2 | - | 9 | |||||||||||||||||||||||
Amortization of DAC and VOBA |
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Related to NIGL and NDGL |
138 | 30 | (124 | ) | (471 | ) | (7 | ) | (125 | ) | (572 | ) | ||||||||||||||||||
Related to GMIB fees and GMIB costs |
93 | 37 | (4 | ) | (150 | ) | 101 | 84 | (16 | ) | ||||||||||||||||||||
Related to market value adjustments |
- | - | - | - | - | - | - | |||||||||||||||||||||||
Divested businesses |
- | (1 | ) | (1 | ) | (1 | ) | (1 | ) | - | (4 | ) | ||||||||||||||||||
Amortization of negative VOBA |
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Related to market value adjustments |
7 | 19 | 19 | 19 | 17 | 7 | 74 | |||||||||||||||||||||||
Divested businesses |
- | 1 | 1 | 1 | 1 | - | 4 | |||||||||||||||||||||||
Interest expense on debt - Securitization entities debt expense |
(99 | ) | (92 | ) | (92 | ) | (97 | ) | (43 | ) | (411 | ) | (324 | ) | ||||||||||||||||
Other expenses |
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Noncontrolling interest |
2 | 7 | (9 | ) | (8 | ) | 1 | (7 | ) | (9 | ) | |||||||||||||||||||
Regulatory implementation costs |
- | (1 | ) | (10 | ) | (3 | ) | (9 | ) | - | (23 | ) | ||||||||||||||||||
Business combinations |
(101 | ) | (68 | ) | (126 | ) | (85 | ) | (133 | ) | (212 | ) | (412 | ) | ||||||||||||||||
Divested businesses |
(246 | ) | (231 | ) | (258 | ) | (268 | ) | (310 | ) | (825 | ) | (1,067 | ) | ||||||||||||||||
Provision for income tax (expense) benefit |
526 | 201 | 75 | (1,307 | ) | 186 | 379 | (845 | ) | |||||||||||||||||||||
Income (loss) from continuing operations, net of income tax | 66 | 1,054 | 1,199 | 3,571 | 1,127 | 2,747 | 6,951 | |||||||||||||||||||||||
Income (loss) from discontinued operations, net of income tax | 19 | (41 | ) | 31 | 5 | 25 | 39 | 20 | ||||||||||||||||||||||
Net income (loss) | 85 | 1,013 | 1,230 | 3,576 | 1,152 | 2,786 | 6.971 | |||||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interest | 3 | 7 | (7 | ) | (6 | ) | (4 | ) | (4 | ) | (10 | ) | ||||||||||||||||||
Net income (loss) attributable to MetLife, Inc. | 82 | 1,006 | 1,237 | 3,582 | 1,156 | 2,790 | 6,981 | |||||||||||||||||||||||
Less: Preferred stock dividends | 31 | 30 | 31 | 30 | 31 | 122 | 122 | |||||||||||||||||||||||
Less: Preferred stock redemption premium | - | 146 | - | - | - | - | 146 | |||||||||||||||||||||||
Net income (loss) available to MetLife, Inc.'s common shareholders |
$ | 51 | $ | 830 | $ | 1,206 | $ | 3,552 | $ | 1,125 | $ | 2,668 | $ | 6,713 | ||||||||||||||||
(1) Certain amounts in the prior periods have been reclassified to conform with the current period segment presentation. During the fourth quarter of 2011, MetLife, Inc. began reporting certain operations of MetLife Bank and the Caribbean Business as Divested businesses. |
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36
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