UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported) May 1, 2013
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 May 1, 2013, MetLife, Inc. (the Company) issued (i) a press release announcing its results for the quarter ended March 31, 2013 (the First Quarter 2013 Earnings Release), a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference, and (ii) a Quarterly Financial Supplement for the quarter ended March 31, 2013 (the Quarterly Financial Supplement), a copy of which is attached hereto as Exhibit 99.2 and is incorporated herein by reference. The First Quarter 2013 Earnings 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 May 1, 2013, announcing its results for the quarter ended March 31, 2013. |
99.2 | Quarterly Financial Supplement for the quarter ended March 31, 2013. |
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: May 1, 2013
Exhibit 99.1
Contacts: | For Media: | Christopher Breslin (212) 578-8824 | ||
For Investors: | Edward Spehar (212) 578-7888 |
METLIFE ANNOUNCES FIRST QUARTER 2013 RESULTS
NEW YORK, May 1, 2013 MetLife, Inc. (NYSE: MET) today reported the following results for the first quarter of 2013:
MetLife reported operating earnings* of $1.6 billion, or $1.48 per share, up 12% over the first quarter of 2012, reflecting growth in all three business regions. Operating earnings in the Americas grew 12%, Asia increased 11% (12% on a constant currency basis) and Europe, the Middle East and Africa (EMEA) grew 21% (17% on a constant currency basis).
First quarter 2013 operating earnings included the following items:
| further adjustments to the lapse updates related to variable annuities in the Americas Retail business, which benefited operating earnings by $29 million, or $0.03 per share |
| variable investment income above the companys 2013 quarterly plan range by $22 million, or $0.02 per share, after tax and the impact of deferred policy acquisition costs (DAC) |
On a GAAP basis, MetLife reported first quarter 2013 net income of $956 million, or $0.87 per share, including $410 million, after tax, in net derivative losses. MetLife uses derivatives as part of its broader asset-liability management strategy to hedge certain risks, such as movements in interest rates and foreign currencies. This hedging activity often generates derivative gains or losses and creates fluctuations in net income because the risk being hedged may not have the same GAAP accounting treatment.
Premiums, fees & other revenues* were $11.8 billion, up 2% (4% on a constant currency basis) over the first quarter of 2012. Excluding pension closeout sales (which often fluctuate significantly from quarter to quarter), total premiums, fees & other revenues grew 3%.
Book value, excluding accumulated other comprehensive income (AOCI), was $47.37 per share, up 2% from the first quarter of 2012.
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MetLife had a very strong first quarter as all three of our business regions contributed to a 12% increase in operating earnings over the first quarter of 2012, and we generated an annualized operating return on equity of 12.7%, said Steven A. Kandarian, chairman, president and chief executive officer of MetLife, Inc. We continue to leverage the strength of our diverse, global businesses, and remain committed to delivering value for shareholders, as demonstrated by our previously announced common stock dividend increase.
FIRST QUARTER 2013 SUMMARY
For the three months ended March 31, | ||||||||||
($ in millions, except per share data) | 2013 | 2012 | Change | |||||||
Premiums, fees & other revenues |
$ | 11,843 | $ | 11,568 | 2% | |||||
Total operating revenues |
$ | 16,975 | $ | 16,645 | 2% | |||||
Net income (loss) |
$ | 956 | $ | (174 | ) | | ||||
Net income (loss) per share |
$ | 0.87 | $ | (0.16 | ) | | ||||
Operating earnings |
$ | 1,635 | $ | 1,464 | 12% | |||||
Operating earnings per share |
$ | 1.48 | $ | 1.37 | 8% | |||||
Book value per share |
$ | 57.03 | $ | 53.37 | 7% | |||||
Book value per share, excluding AOCI |
$ | 47.37 | $ | 46.52 | 2% |
* | Information regarding the non-GAAP financial measures included in this press release and the reconciliation of these measures to the most directly comparable GAAP measures is provided in the Non-GAAP and Other Financial Disclosures discussion below, as well as in the tables that accompany this release and/or the First Quarter 2013 Financial Supplement, which is available on the Investor Relations section of www.metlife.com. |
BUSINESS DISCUSSIONS
All comparisons of the results for the first quarter 2013 in the business discussions that follow are with the first quarter of 2012, unless otherwise noted. All comparisons on a constant currency basis are calculated using the average foreign currency exchange rates for the current period and are applied to the prior period.
THE AMERICAS
Total operating earnings for the Americas increased 12% to $1.3 billion, driven by the Retail business. Premiums, fees & other revenues for the Americas were $8.6 billion, up 4% primarily due to growth in Group, Voluntary & Worksite Benefits. Excluding pension closeouts, premiums, fees & other revenues for the Americas were up 5%.
Retail
Operating earnings for Retail were $626 million, up 33% due to higher net investment income, an increase in fees, further adjustments to the lapse updates related to variable annuities, and lower expenses. Premiums, fees & other revenues for Retail were $3.0 billion, relatively unchanged as an increase in fee income driven by higher equity markets as well as higher individual disability and property/casualty premiums were offset by lower lifetime income annuity premiums. First quarter 2013 variable annuity sales were $3.5 billion, down 29%.
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Group, Voluntary & Worksite Benefits
Operating earnings for Group, Voluntary & Worksite Benefits were $230 million, down 5% as lower underwriting results in the group life business more than offset higher interest margins and favorable underwriting results in the dental business. Premiums, fees & other revenues for Group, Voluntary & Worksite Benefits were $4.2 billion, up 8% due to growth in the dental business as well as favorable persistency across the business.
Corporate Benefit Funding
Operating earnings for Corporate Benefit Funding were $299 million, relatively unchanged from $298 million. While the first quarter of 2013 benefitted from improved interest margins, growth over the prior year period was impacted by unusually strong underwriting results in the first quarter of 2012. Premiums, fees & other revenues for Corporate Benefit Funding were $605 million, down 3% as lower pension closeout sales more than offset higher institutional income annuity sales. Excluding pension closeouts, premiums, fees & other revenues were up 14%.
Latin America
Operating earnings for Latin America were $143 million, down 3% (2% on a constant currency basis) as lower net investment income more than offset business growth in several countries. Premiums, fees & other revenues in Latin America were $904 million, up 2% (3% on a constant currency basis). Total sales for the region increased 20%, driven by growth in Mexico and in direct marketing channels across the region.
ASIA
Operating earnings for Asia were $333 million, up 11% (12% on a constant currency basis) due to business growth, an increase in variable investment income and higher fee income driven by increases in policyholder surrenders for certain foreign currency fixed annuity products in Japan. Premiums, fees & other revenues in Asia were $2.5 billion, up 2% (12% on a constant currency basis) due to business growth in Korea and Australia as well as the aforementioned higher fee income. Total sales for the region declined 13% primarily due to the continued macro volatility in Japan, which more than offset growth in several other countries, including India.
EMEA
Operating earnings for EMEA were $87 million, up 21% (17% on a constant currency basis), reflecting business growth in several emerging markets; the benefit of a tax-related item; the benefit of a reserve adjustment in Greece; and continued expense discipline. EMEA premiums, fees & other revenues were $685 million, down 11% (12% on a constant currency basis) due to the previously announced exit from certain businesses in the U.K. Total sales for the region increased 13% driven by strong growth in emerging markets led by the Gulf, Russia and Turkey.
INVESTMENTS
Net investment income was $5.1 billion, up 1%. Variable investment income was $337 million ($217 million, after tax and DAC), compared with $239 million ($155 million, after tax and DAC) in the first quarter of 2012.
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Investment portfolio net gains were $161 million, after tax, compared with net losses of $145 million, after tax, in the first quarter of 2012.
Increases in interest rates, changes in foreign currencies and the impact of MetLifes credit spreads during the quarter contributed to derivative net losses of $493 million, after tax and other adjustments. Derivative net losses in the first quarter of 2012 were $1.3 billion, after tax and other adjustments. Derivative gains or losses related to MetLifes credit spreads do not have an economic impact on the company.
CORPORATE & OTHER
Corporate & Other had an operating loss of $83 million, compared with an operating loss of $67 million in the first quarter of 2012.
Conference Call
MetLife will hold its first quarter 2013 earnings conference call and audio Webcast on Thursday, May 2, 2013, 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 (800) 230-1074 (U.S.) or (612) 288-0337 (outside the U.S.). 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 Thursday, May 2, 2013, until Thursday, May 9, 2013 at 11:59 p.m. (ET). To listen to a replay of the conference call over the telephone, dial (320) 365-3844. The access code for the replay is 277735. 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. Through its subsidiaries and affiliates, MetLife holds leading market positions in the United States, Japan, Latin America, Asia, Europe and the Middle East. For more information, visit www.metlife.com.
Non-GAAP and Other Financial Disclosures
Any references in this press release (except in this section and in the tables that accompany this release) to net income (loss), net income (loss) per share, operating earnings, operating earnings per share, book value per share, book value per share, excluding AOCI, premiums, fees and other revenues, and operating return on equity, 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, book value per common share, excluding AOCI, premiums, fees and other revenues (operating), and operating return on MetLife, Inc.s common equity, excluding AOCI, respectively.
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.
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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. Operating revenues also excludes net investment gains (losses) (NIGL) and net derivative gains (losses) (NDGL). Operating expenses also excludes goodwill impairments.
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) acquisition and integration costs. |
Operating earnings also excludes the recognition of certain contingent assets and liabilities that could not be recognized at acquisition or adjusted for during the measurement period under GAAP business combination accounting guidance.
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, 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 AOCI, book value per diluted common share, excluding AOCI, operating return on MetLife, Inc.s common equity, operating return on MetLife, Inc.s common equity, excluding AOCI, investment portfolio gains (losses) and derivative gains
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(losses) should not be viewed as substitutes for the following financial measures calculated in accordance with GAAP: GAAP revenues, GAAP expenses, income (loss) from continuing operations, net of income tax, net income (loss) available to MetLife, Inc.s common shareholders, net income (loss) available to MetLife, Inc.s common shareholders per diluted common share, book value per common share, book value per diluted common share, return on MetLife, Inc.s common equity, return on MetLife, Inc.s common equity, excluding AOCI, net investment gains (losses) and net derivative gains (losses), respectively. Reconciliations of these measures to the most directly comparable GAAP measures are included in the First Quarter 2013 Financial Supplement and/or in the tables that accompany this earnings press release.
Operating return on MetLife, Inc.s common equity is defined as operating earnings available to common shareholders divided by average GAAP common equity.
Operating expense ratio is calculated by dividing operating expenses (other expenses, net of capitalization of DAC) by operating premiums, fees and other revenues.
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) increased volatility and disruption of the capital and credit markets, which may affect our ability to meet liquidity needs and access capital, including through our credit facilities, 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; (3) exposure to financial and capital market risk, including as a result of the disruption in Europe and possible withdrawal of one or more countries from the Euro zone; (4) impact of comprehensive financial services regulation reform on us, as a potential non-bank systemically important financial institution, or otherwise; (5) numerous rulemaking initiatives required or permitted by the Dodd-Frank Wall Street Reform and Consumer Protection Act which may impact how we conduct our business, including those compelling the liquidation of certain financial institutions; (6) regulatory, legislative or tax changes relating to our insurance, international, or other operations that may affect the cost of, or demand for, our products or services, or increase the cost or administrative burdens of providing benefits to employees; (7) adverse results or other consequences from litigation, arbitration or regulatory investigations; (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) changes in assumptions related to investment valuations, deferred policy acquisition costs, deferred sales inducements, value of business acquired or goodwill; (11) impairments of goodwill and realized losses or market value impairments to illiquid assets; (12) defaults on our mortgage loans; (13) the defaults or deteriorating credit of other financial institutions that could adversely affect us; (14) economic, political, legal, currency and other risks relating to our international operations, including with respect to fluctuations of exchange
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rates; (15) downgrades in our claims paying ability, financial strength or credit ratings; (16) a deterioration in the experience of the closed block established in connection with the reorganization of Metropolitan Life Insurance Company; (17) availability and effectiveness of reinsurance or indemnification arrangements, as well as any default or failure of counterparties to perform; (18) differences between actual claims experience and underwriting and reserving assumptions; (19) ineffectiveness of risk management policies and procedures; (20) catastrophe losses; (21) increasing cost and limited market capacity for statutory life insurance reserve financings; (22) heightened competition, including with respect to pricing, entry of new competitors, consolidation of distributors, the development of new products by new and existing competitors, and for personnel; (23) 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; (24) our ability to address unforeseen liabilities, asset impairments, 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; (25) 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; (26) the dilutive impact on our stockholders resulting from the settlement of our outstanding common equity units; (27) regulatory and other restrictions affecting MetLife, Inc.s ability to pay dividends and repurchase common stock; (28) MetLife, Inc.s primary reliance, as a holding company, on dividends from its subsidiaries to meet debt payment obligations and the applicable regulatory restrictions on the ability of the subsidiaries to pay such dividends; (29) the possibility that MetLife, Inc.s Board of Directors may control the outcome of stockholder votes through the voting provisions of the MetLife Policyholder Trust; (30) changes in accounting standards, practices and/or policies; (31) increased expenses relating to pension and postretirement benefit plans, as well as health care and other employee benefits; (32) inability to protect our intellectual property rights or claims of infringement of the intellectual property rights of others; (33) inability to attract and retain sales representatives; (34) provisions of laws and our incorporation documents may delay, deter or prevent takeovers and corporate combinations involving MetLife; (35) 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 the value of our investment portfolio, our disaster recovery systems, cyber- or other information security systems and management continuity planning; (36) the effectiveness of our programs and practices in avoiding giving our associates incentives to take excessive risks; and (37) other risks and uncertainties described from time to time in MetLife, Inc.s filings with the SEC.
MetLife, Inc. does not undertake any obligation to publicly correct or update any forward-looking statement if MetLife, Inc. later becomes aware that such statement is not likely to be achieved. Please consult any further disclosures MetLife, Inc. makes on related subjects in reports to the SEC.
# # #
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MetLife, Inc.
Consolidated Statements of Operating Earnings Available to Common Shareholders
(Unaudited)
For the Three Months Ended March 31, |
||||||||
2013 | 2012 | |||||||
(In millions) | ||||||||
OPERATING REVENUES |
||||||||
Premiums |
$ | 9,151 | $ | 9,107 | ||||
Universal life and investment-type product policy fees |
2,211 | 2,009 | ||||||
Net investment income |
5,132 | 5,077 | ||||||
Other revenues |
481 | 452 | ||||||
|
|
|
|
|||||
Total operating revenues |
16,975 | 16,645 | ||||||
|
|
|
|
|||||
OPERATING EXPENSES |
||||||||
Policyholder benefits and claims and policyholder dividends |
9,106 | 8,939 | ||||||
Interest credited to policyholder account balances |
1,554 | 1,539 | ||||||
Capitalization of DAC |
(1,256 | ) | (1,362 | ) | ||||
Amortization of DAC and VOBA |
1,016 | 1,018 | ||||||
Amortization of negative VOBA |
(131 | ) | (137 | ) | ||||
Interest expense on debt |
288 | 315 | ||||||
Other expenses |
4,087 | 4,243 | ||||||
|
|
|
|
|||||
Total operating expenses |
14,664 | 14,555 | ||||||
|
|
|
|
|||||
Operating earnings before provision for income tax |
2,311 | 2,090 | ||||||
Provision for income tax expense (benefit) |
646 | 596 | ||||||
|
|
|
|
|||||
Operating earnings |
1,665 | 1,494 | ||||||
Preferred stock dividends |
30 | 30 | ||||||
|
|
|
|
|||||
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS |
$ | 1,635 | $ | 1,464 | ||||
|
|
|
|
|||||
Reconciliation to Net Income (Loss) and Financial Statement Line Item Adjustments from GAAP |
||||||||
Operating earnings |
$ | 1,665 | $ | 1,494 | ||||
Adjustments from operating earnings to income (loss) from continuing operations: |
||||||||
Net investment gains (losses) (1) |
314 | (110 | ) | |||||
Net derivative gains (losses) |
(630 | ) | (1,978 | ) | ||||
Premiums |
| 22 | ||||||
Universal life and investment-type product policy fees |
80 | 69 | ||||||
Net investment income |
945 | 1,123 | ||||||
Other revenues |
(1 | ) | 145 | |||||
Policyholder benefits and claims and policyholder dividends |
(602 | ) | (508 | ) | ||||
Interest credited to policyholder account balances |
(1,036 | ) | (1,018 | ) | ||||
Capitalization of DAC |
| 2 | ||||||
Amortization of DAC and VOBA |
192 | 304 | ||||||
Amortization of negative VOBA |
15 | 18 | ||||||
Interest expense on debt |
(33 | ) | (43 | ) | ||||
Other expenses (1) |
(308 | ) | (525 | ) | ||||
Provision for income tax (expense) benefit (1) |
394 | 871 | ||||||
|
|
|
|
|||||
Income (loss) from continuing operations, net of income tax |
995 | (134 | ) | |||||
Income (loss) from discontinued operations, net of income tax |
(3 | ) | 14 | |||||
|
|
|
|
|||||
Net income (loss) |
992 | (120 | ) | |||||
Less: Net income (loss) attributable to noncontrolling interests |
6 | 24 | ||||||
|
|
|
|
|||||
Net income (loss) attributable to MetLife, Inc. |
986 | (144 | ) | |||||
Less: Preferred stock dividends |
30 | 30 | ||||||
|
|
|
|
|||||
Net income (loss) available to MetLife, Inc.s common shareholders |
$ | 956 | $ | (174 | ) | |||
|
|
|
|
See footnotes on last page.
MetLife, Inc.
(Unaudited)
For the Three Months Ended March 31, |
||||||||||||||||
2013 | 2012 | |||||||||||||||
Earnings Per Weighted Average Common Shares Diluted (2) |
Earnings Per Weighted Average Common Shares Diluted (2), (3) |
|||||||||||||||
(In millions, except per share data) | ||||||||||||||||
Reconciliation to Net Income (Loss) Available to MetLife, Inc.s Common Shareholders |
||||||||||||||||
Operating earnings available to common shareholders |
$ | 1,635 | $ | 1.48 | $ | 1,464 | $ | 1.37 | ||||||||
Adjustments from operating earnings available to common shareholders to net income (loss) available to MetLife, Inc.s common shareholders: |
||||||||||||||||
Add: Net investment gains (losses) (1) |
314 | 0.28 | (110 | ) | (0.10 | ) | ||||||||||
Add: Net derivative gains (losses) |
(630 | ) | (0.57 | ) | (1,978 | ) | (1.85 | ) | ||||||||
Add: Other adjustments to continuing operations (1) |
(748 | ) | (0.67 | ) | (411 | ) | (0.38 | ) | ||||||||
Add: Provision for income tax (expense) benefit (1) |
394 | 0.36 | 871 | 0.81 | ||||||||||||
Add: Income (loss) from discontinued operations, net of income tax |
(3 | ) | | 14 | 0.01 | |||||||||||
Less: Net income (loss) attributable to noncontrolling interests |
6 | 0.01 | 24 | 0.02 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income (loss) available to MetLife, Inc.s common shareholders |
$ | 956 | $ | 0.87 | $ | (174 | ) | $ | (0.16 | ) | ||||||
|
|
|
|
|
|
|
|
|||||||||
Weighted average common shares outstanding - diluted |
1,103.9 | 1,070.9 | ||||||||||||||
For the Three Months Ended March 31, |
||||||||||||||||
2013 | 2012 | |||||||||||||||
(In millions) | ||||||||||||||||
Reconciliation to GAAP Premiums, Fees and Other Revenues |
||||||||||||||||
Total operating premiums, fees and other revenues |
$ | 11,843 | $ | 11,568 | ||||||||||||
Add: Adjustments to premiums, fees and other revenues |
79 | 236 | ||||||||||||||
|
|
|
|
|||||||||||||
Total premiums, fees and other revenues |
$ | 11,922 | $ | 11,804 | ||||||||||||
|
|
|
|
|||||||||||||
Reconciliation to GAAP Revenues and GAAP Expenses |
||||||||||||||||
Total operating revenues |
$ | 16,975 | $ | 16,645 | ||||||||||||
Add: Net investment gains (losses) (1) |
314 | (110 | ) | |||||||||||||
Add: Net derivative gains (losses) |
(630 | ) | (1,978 | ) | ||||||||||||
Add: Adjustments related to net investment gains (losses) and net derivative gains (losses) |
(3 | ) | (6 | ) | ||||||||||||
Add: Other adjustments to revenues |
1,027 | 1,365 | ||||||||||||||
|
|
|
|
|||||||||||||
Total revenues |
$ | 17,683 | $ | 15,916 | ||||||||||||
|
|
|
|
|||||||||||||
Total operating expenses |
$ | 14,664 | $ | 14,555 | ||||||||||||
Add: Adjustments related to net investment gains (losses) and net derivative gains (losses) |
(78 | ) | (192 | ) | ||||||||||||
Add: Other adjustments to expenses (1) |
1,850 | 1,962 | ||||||||||||||
|
|
|
|
|||||||||||||
Total expenses |
$ | 16,436 | $ | 16,325 | ||||||||||||
|
|
|
|
|||||||||||||
March 31, | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Book Value Per Common Share (4) |
||||||||||||||||
Book value per common share, excluding accumulated other comprehensive income (loss) - (actual common shares outstanding) |
$ | 47.37 | $ | 46.52 | ||||||||||||
Add: Accumulated other comprehensive income (loss) per common share |
9.66 | 6.85 | ||||||||||||||
|
|
|
|
|||||||||||||
Book value per common share - (actual common shares outstanding) |
$ | 57.03 | $ | 53.37 | ||||||||||||
|
|
|
|
|||||||||||||
Common shares outstanding, end of period (in millions) |
1,094.2 | 1,060.9 | ||||||||||||||
Three Months Ended March 31, |
||||||||||||||||
2013 | ||||||||||||||||
Return on MetLife, Inc.s Common Equity (5) |
||||||||||||||||
Operating return on MetLife, Inc.s common equity, excluding accumulated other comprehensive income (loss) (6) |
12.7% | |||||||||||||||
Operating return on MetLife, Inc.s common equity (6) |
10.5% | |||||||||||||||
Return on MetLife, Inc.s common equity, excluding accumulated other comprehensive income (loss) (7) |
7.4% | |||||||||||||||
Return on MetLife, Inc.s common equity (7) |
6.1% |
See footnotes on last page.
MetLife, Inc.
Reconciliations to Net Income (Loss) Available to Common Shareholders
(Unaudited)
For the Three Months
Ended March 31, |
||||||||
2013 | 2012 | |||||||
(In millions) | ||||||||
Total Americas Operations: |
||||||||
Operating earnings available to common shareholders |
$ | 1,298 | $ | 1,158 | ||||
Add: Net investment gains (losses) |
112 | (35 | ) | |||||
Add: Net derivative gains (losses) |
(171 | ) | (1,107 | ) | ||||
Add: Other adjustments to continuing operations |
(337 | ) | (190 | ) | ||||
Add: Provision for income tax (expense) benefit |
138 | 466 | ||||||
Add: Income (loss) from discontinued operations, net of income tax |
| 14 | ||||||
|
|
|
|
|||||
Net income (loss) available to MetLife, Inc.s common shareholders |
$ | 1,040 | $ | 306 | ||||
|
|
|
|
|||||
Retail: |
||||||||
Operating earnings available to common shareholders |
$ | 626 | $ | 469 | ||||
Add: Net investment gains (losses) |
73 | 67 | ||||||
Add: Net derivative gains (losses) |
(156 | ) | (526 | ) | ||||
Add: Other adjustments to continuing operations |
(264 | ) | (106 | ) | ||||
Add: Provision for income tax (expense) benefit |
122 | 198 | ||||||
Add: Income (loss) from discontinued operations, net of income tax |
| 10 | ||||||
|
|
|
|
|||||
Net income (loss) available to MetLife, Inc.s common shareholders |
$ | 401 | $ | 112 | ||||
|
|
|
|
|||||
Group, Voluntary & Worksite Benefits: |
||||||||
Operating earnings available to common shareholders |
$ | 230 | $ | 243 | ||||
Add: Net investment gains (losses) |
17 | (7 | ) | |||||
Add: Net derivative gains (losses) |
(129 | ) | (375 | ) | ||||
Add: Other adjustments to continuing operations |
(40 | ) | (36 | ) | ||||
Add: Provision for income tax (expense) benefit |
53 | 147 | ||||||
|
|
|
|
|||||
Net income (loss) available to MetLife, Inc.s common shareholders |
$ | 131 | $ | (28 | ) | |||
|
|
|
|
|||||
Corporate Benefit Funding: |
||||||||
Operating earnings available to common shareholders |
$ | 299 | $ | 298 | ||||
Add: Net investment gains (losses) |
22 | (98 | ) | |||||
Add: Net derivative gains (losses) |
105 | (243 | ) | |||||
Add: Other adjustments to continuing operations |
32 | 21 | ||||||
Add: Provision for income tax (expense) benefit |
(56 | ) | 111 | |||||
Add: Income (loss) from discontinued operations, net of income tax |
| 4 | ||||||
|
|
|
|
|||||
Net income (loss) available to MetLife, Inc.s common shareholders |
$ | 402 | $ | 93 | ||||
|
|
|
|
|||||
Latin America: |
||||||||
Operating earnings available to common shareholders |
$ | 143 | $ | 148 | ||||
Add: Net investment gains (losses) |
| 3 | ||||||
Add: Net derivative gains (losses) |
9 | 37 | ||||||
Add: Other adjustments to continuing operations |
(65 | ) | (69 | ) | ||||
Add: Provision for income tax (expense) benefit |
19 | 10 | ||||||
|
|
|
|
|||||
Net income (loss) available to MetLife, Inc.s common shareholders |
$ | 106 | $ | 129 | ||||
|
|
|
|
|||||
Asia: |
||||||||
Operating earnings available to common shareholders |
$ | 333 | $ | 301 | ||||
Add: Net investment gains (losses) (1) |
128 | (78 | ) | |||||
Add: Net derivative gains (losses) |
(552 | ) | (30 | ) | ||||
Add: Other adjustments to continuing operations |
(269 | ) | (2 | ) | ||||
Add: Provision for income tax (expense) benefit (1) |
283 | 53 | ||||||
Add: Income (loss) from discontinued operations, net of income tax |
(3 | ) | | |||||
Less: Net income (loss) attributable to noncontrolling interests |
4 | 7 | ||||||
|
|
|
|
|||||
Net income (loss) available to MetLife, Inc.s common shareholders |
$ | (84 | ) | $ | 237 | |||
|
|
|
|
|||||
EMEA: |
||||||||
Operating earnings available to common shareholders |
$ | 87 | $ | 72 | ||||
Add: Net investment gains (losses) |
16 | (18 | ) | |||||
Add: Net derivative gains (losses) |
(6 | ) | 29 | |||||
Add: Other adjustments to continuing operations |
8 | 14 | ||||||
Add: Provision for income tax (expense) benefit |
(22 | ) | (22 | ) | ||||
Less: Net income (loss) attributable to noncontrolling interests |
2 | 17 | ||||||
|
|
|
|
|||||
Net income (loss) available to MetLife, Inc.s common shareholders |
$ | 81 | $ | 58 | ||||
|
|
|
|
|||||
Corporate & Other: |
||||||||
Operating earnings available to common shareholders |
$ | (83 | ) | $ | (67 | ) | ||
Add: Net investment gains (losses) |
58 | 21 | ||||||
Add: Net derivative gains (losses) |
99 | (870 | ) | |||||
Add: Other adjustments to continuing operations |
(150 | ) | (233 | ) | ||||
Add: Provision for income tax (expense) benefit |
(5 | ) | 374 | |||||
|
|
|
|
|||||
Net income (loss) available to MetLife, Inc.s common shareholders |
$ | (81 | ) | $ | (775 | ) | ||
|
|
|
|
See footnotes on last page.
MetLife, Inc.
GAAP Interim Condensed Consolidated Statements of Operations
(Unaudited)
For the Three Months Ended March 31, |
||||||||
2013 | 2012 | |||||||
(In millions) | ||||||||
Revenues |
||||||||
Premiums |
$ | 9,151 | $ | 9,129 | ||||
Universal life and investment-type product policy fees |
2,291 | 2,078 | ||||||
Net investment income |
6,077 | 6,200 | ||||||
Other revenues |
480 | 597 | ||||||
Net investment gains (losses): |
||||||||
Other-than-temporary impairments on fixed maturity securities |
(29 | ) | (135 | ) | ||||
Other-than-temporary impairments on fixed maturity securities transferred to other comprehensive income (loss) |
(31 | ) | 2 | |||||
Other net investment gains (losses) (1) |
374 | 23 | ||||||
|
|
|
|
|||||
Total net investment gains (losses) |
314 | (110 | ) | |||||
Net derivative gains (losses) |
(630 | ) | (1,978 | ) | ||||
|
|
|
|
|||||
Total revenues |
17,683 | 15,916 | ||||||
|
|
|
|
|||||
Expenses |
||||||||
Policyholder benefits and claims |
9,395 | 9,104 | ||||||
Interest credited to policyholder account balances |
2,590 | 2,557 | ||||||
Policyholder dividends |
313 | 343 | ||||||
Other expenses (1) |
4,138 | 4,321 | ||||||
|
|
|
|
|||||
Total expenses |
16,436 | 16,325 | ||||||
|
|
|
|
|||||
Income (loss) from continuing operations before provision for income tax |
1,247 | (409 | ) | |||||
Provision for income tax expense (benefit) (1) |
252 | (275 | ) | |||||
|
|
|
|
|||||
Income (loss) from continuing operations, net of income tax |
995 | (134 | ) | |||||
Income (loss) from discontinued operations, net of income tax |
(3 | ) | 14 | |||||
|
|
|
|
|||||
Net income (loss) |
992 | (120 | ) | |||||
Less: Net income (loss) attributable to noncontrolling interests |
6 | 24 | ||||||
|
|
|
|
|||||
Net income (loss) attributable to MetLife, Inc. |
986 | (144 | ) | |||||
Less: Preferred stock dividends |
30 | 30 | ||||||
|
|
|
|
|||||
Net income (loss) available to MetLife, Inc.s common shareholders |
$ | 956 | $ | (174 | ) | |||
|
|
|
|
(1) | For the three months ended March 31, 2013, a net investment gain of $11 million, an expense of $154 million and a tax benefit of $119 million related to a settlement of an acquisition tax contingency are included. |
(2) | For the three months ended March 31, 2013 and 2012, all shares related to the assumed issuance of shares in settlement of the applicable purchase contracts of the common equity units have been excluded from the weighted average common shares outstanding - diluted, as these assumed shares would be anti-dilutive to operating earnings available to common shareholders per common share - diluted and net income available to MetLife, Inc.s common shareholders per common share - diluted. |
(3) | For the three months ended March 31, 2012, 6.6 million shares related to the assumed exercise or issuance of stock-based awards are excluded from the weighted average common shares outstanding - diluted, as to include these assumed shares would be anti-dilutive to net income (loss) available to MetLife, Inc.s common shareholders per common share - diluted. These shares were included in the calculation of operating earnings available to common shareholders per common share - diluted. |
(4) | Book value per common share and book value per common share, excluding accumulated other comprehensive income (loss), exclude $2,043 million of equity related to preferred stock. |
(5) | Annualized using year-to-date results. |
(6) | Operating return on MetLife, Inc.s common equity is defined as operating earnings available to common shareholders divided by average GAAP common equity. |
(7) | Return on MetLife, Inc.s common equity is defined as net income available to common shareholders divided by average GAAP common equity. |
Exhibit 99.2
First Quarter
Financial Supplement
March 31, 2013
1
NOTE TO FINANCIAL SUPPLEMENT
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). Operating expenses also excludes goodwill impairments.
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) acquisition and integration costs. | |||||
Operating earnings also excludes the recognition of certain contingent assets and liabilities that could not be recognized at acquisition or adjusted for during the measurement period under GAAP business combination accounting guidance. | ||||||
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, income (loss) from continuing operations, net of income tax, net income (loss) available to MetLife, Inc.s common shareholders, 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 A-1, and in our earnings press release dated May 1, 2013, for the three months ended March 31, 2013, which is available at www.metlife.com. |
2
CORPORATE OVERVIEW |
||||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||||
Unaudited (In millions, except per share data) | March 31, 2012 | June 30, 2012 | September 30, 2012 | December 31, 2012 | March 31, 2013 | |||||||||||||||||
Operating earnings available to common shareholders |
$ | 1,464 | $ | 1,432 | $ | 1,417 | $ | 1,373 | $ | 1,635 | ||||||||||||
Preferred stock dividends |
30 | 31 | 30 | 31 | 30 | |||||||||||||||||
Operating earnings |
1,494 | 1,463 | 1,447 | 1,404 | 1,665 | |||||||||||||||||
Adjustments from operating earnings to income (loss) from continuing operations: |
||||||||||||||||||||||
Net investment gains (losses) (1) |
(110 | ) | (64 | ) | 22 | (200 | ) | 314 | ||||||||||||||
Net derivative gains (losses) |
(1,978 | ) | 2,092 | (718 | ) | (1,315 | ) | (630 | ) | |||||||||||||
Goodwill impairment |
- | - | (1,868 | ) | - | - | ||||||||||||||||
Other adjustments to continuing operations (1) |
(411 | ) | (736 | ) | (472 | ) | (931 | ) | (748 | ) | ||||||||||||
Provision for income tax (expense) benefit (1), (2) |
871 | (455 | ) | 632 | 1,147 | 394 | ||||||||||||||||
Income (loss) from continuing operations, net of income tax |
(134 | ) | 2,300 | (957 | ) | 105 | 995 | |||||||||||||||
Income (loss) from discontinued operations, net of income tax |
14 | 3 | - | 31 | (3 | ) | ||||||||||||||||
Net income (loss) |
(120 | ) | 2,303 | (957 | ) | 136 | 992 | |||||||||||||||
Less: Net income (loss) attributable to noncontrolling interests |
24 | 8 | (3 | ) | 9 | 6 | ||||||||||||||||
Net income (loss) attributable to MetLife, Inc. |
(144 | ) | 2,295 | (954 | ) | 127 | 986 | |||||||||||||||
Less: Preferred stock dividends |
30 | 31 | 30 | 31 | 30 | |||||||||||||||||
Net income (loss) available to MetLife, Inc.s common shareholders |
$ | (174 | ) | $ | 2,264 | $ | (984 | ) | $ | 96 | $ | 956 | ||||||||||
Operating earnings available to common shareholders per common share - diluted (3), (4) |
$ | 1.37 | $ | 1.34 | $ | 1.32 | $ | 1.25 | $ | 1.48 | ||||||||||||
Net investment gains (losses) |
(0.10 | ) | (0.06 | ) | 0.02 | (0.18 | ) | 0.28 | ||||||||||||||
Net derivative gains (losses) |
(1.85 | ) | 1.96 | (0.67 | ) | (1.20 | ) | (0.57 | ) | |||||||||||||
Goodwill impairment |
- | - | (1.74 | ) | - | - | ||||||||||||||||
Other adjustments to continuing operations |
(0.38 | ) | (0.68 | ) | (0.44 | ) | (0.85 | ) | (0.67 | ) | ||||||||||||
Provision for income tax (expense) benefit |
0.81 | (0.43 | ) | 0.59 | 1.05 | 0.36 | ||||||||||||||||
Discontinued operations, net of income tax |
0.01 | - | - | 0.03 | - | |||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interests |
0.02 | 0.01 | - | 0.01 | 0.01 | |||||||||||||||||
Net income (loss) available to MetLife, Inc.s common shareholders per common share - diluted (3), (4) |
$ | (0.16 | ) | $ | 2.12 | $ | (0.92 | ) | $ | 0.09 | $ | 0.87 | ||||||||||
Weighted average common shares outstanding - diluted |
1,070.9 | 1,070.0 | 1,071.0 | 1,097.5 | 1,103.9 | |||||||||||||||||
Unaudited | March 31, 2012 | June 30, 2012 | September 30, 2012 | December 31, 2012 | March 31, 2013 | |||||||||||||||||
Book value per common share - (actual common shares outstanding) (5) |
$ | 53.37 | $ | 56.83 | $ | 58.35 | $ | 57.17 | $ | 57.03 | ||||||||||||
Book value per common share, excluding accumulated other comprehensive income (loss) - (actual common shares outstanding) (5) |
$ | 46.52 | $ | 48.60 | $ | 47.70 | $ | 46.73 | $ | 47.37 | ||||||||||||
Book value per common share - diluted - (weighted average common shares outstanding) (5) |
$ | 52.87 | $ | 56.41 | $ | 57.90 | $ | 56.87 | $ | 56.53 | ||||||||||||
Book value per common share, excluding accumulated other comprehensive income (loss) - diluted - (weighted average common shares outstanding) (5) |
$ | 46.09 | $ | 48.25 | $ | 47.32 | $ | 46.48 | $ | 46.95 | ||||||||||||
For the Three Months Ended | ||||||||||||||||||||||
Unaudited (In millions) | March 31, 2012 | June 30, 2012 | September 30, 2012 | December 31, 2012 | March 31, 2013 | |||||||||||||||||
Common shares outstanding, beginning of period |
1,058.0 | 1,060.9 | 1,062.2 | 1,062.6 | 1,091.7 | |||||||||||||||||
Newly issued shares |
2.9 | 1.3 | 0.4 | 29.1 | 2.5 | |||||||||||||||||
Common shares outstanding, end of period |
1,060.9 | 1,062.2 | 1,062.6 | 1,091.7 | 1,094.2 | |||||||||||||||||
Weighted average common shares outstanding - basic |
1,064.3 | 1,064.7 | 1,065.0 | 1,091.0 | 1,096.9 | |||||||||||||||||
Dilutive effect of stock purchase contracts underlying common equity units (3) |
- | - | - | - | - | |||||||||||||||||
Dilutive effect of the exercise or issuance of stock-based awards (4) |
6.6 | 5.3 | 6.0 | 6.5 | 7.0 | |||||||||||||||||
Weighted average common shares outstanding - diluted |
1,070.9 | 1,070.0 | 1,071.0 | 1,097.5 | 1,103.9 | |||||||||||||||||
Policyholder Trust Shares |
209.7 | 207.5 | 206.2 | 202.3 | 199.4 | |||||||||||||||||
(1) |
For the three months ended March 31, 2013, a net investment gain of $11 million, an expense of $154 million and a tax benefit of $119 million related to a settlement of an acquisition tax contingency are included. |
| ||||||||||||||||||||
(2) | For the three months ended December 31, 2012, a deferred tax benefit of $324 million related to the conversion of the Japan branch to a subsidiary is included. |
| ||||||||||||||||||||
(3) | For the three months ended March 31, 2012, June 30, 2012, September 30, 2012, December 31, 2012 and March 31, 2013, all shares related to the assumed issuance of shares in settlement of the applicable purchase contracts of the common equity units have been excluded from the weighted average common shares outstanding - diluted, as these assumed shares would be anti-dilutive to operating earnings available to common shareholders per common share - diluted and net income (loss) available to MetLife, Inc.s common shareholders per common share - diluted. |
| ||||||||||||||||||||
(4) | For the three months ended March 31, 2012 and September 30, 2012, 6.6 million shares and 6.0 million shares, respectively, related to the assumed exercise or issuance of stock-based awards are excluded from the weighted average common shares outstanding - diluted, as to include these assumed shares would be anti-dilutive to net income (loss) available to MetLife, Inc.s common shareholders per common share - diluted. These shares were included in the calculation of operating earnings available to common shareholders per common share - diluted. |
| ||||||||||||||||||||
(5) | Book value per common share, book value per common share, excluding AOCI, book value per common share - diluted and book value per common share, excluding AOCI - diluted, exclude $2,043 million of equity related to preferred stock. |
|
3
4
CONSOLIDATED STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
|
| |||||||||||||||||||||
Unaudited (In millions) |
For the Three Months Ended | |||||||||||||||||||||
March 31, 2012 | June 30, 2012 | September 30, 2012 | December 31, 2012 | March 31, 2013 | ||||||||||||||||||
OPERATING REVENUES |
||||||||||||||||||||||
Premiums |
$ | 9,107 | $ | 9,139 | $ | 9,080 | $ | 10,585 | $ | 9,151 | ||||||||||||
Universal life and investment-type product policy fees |
2,009 | 1,999 | 2,048 | 2,156 | 2,211 | |||||||||||||||||
Net investment income |
5,077 | 5,172 | 5,048 | 5,175 | 5,132 | |||||||||||||||||
Other revenues |
452 | 426 | 435 | 443 | 481 | |||||||||||||||||
Total operating revenues |
16,645 | 16,736 | 16,611 | 18,359 | 16,975 | |||||||||||||||||
OPERATING EXPENSES |
||||||||||||||||||||||
Policyholder benefits and claims and policyholder dividends |
8,939 | 9,132 | 8,995 | 10,704 | 9,106 | |||||||||||||||||
Interest credited to policyholder account balances |
1,539 | 1,525 | 1,589 | 1,589 | 1,554 | |||||||||||||||||
Capitalization of DAC |
(1,362 | ) | (1,313 | ) | (1,301 | ) | (1,308 | ) | (1,256 | ) | ||||||||||||
Amortization of DAC and VOBA |
1,018 | 1,162 | 1,051 | 946 | 1,016 | |||||||||||||||||
Amortization of negative VOBA |
(137 | ) | (164 | ) | (155 | ) | (99 | ) | (131 | ) | ||||||||||||
Interest expense on debt |
315 | 297 | 286 | 292 | 288 | |||||||||||||||||
Other expenses |
4,243 | 4,051 | 4,120 | 4,266 | 4,087 | |||||||||||||||||
Total operating expenses |
14,555 | 14,690 | 14,585 | 16,390 | 14,664 | |||||||||||||||||
Operating earnings before provision for income tax |
2,090 | 2,046 | 2,026 | 1,969 | 2,311 | |||||||||||||||||
Provision for income tax expense (benefit) |
596 | 583 | 579 | 565 | 646 | |||||||||||||||||
Operating earnings |
1,494 | 1,463 | 1,447 | 1,404 | 1,665 | |||||||||||||||||
Preferred stock dividends |
30 | 31 | 30 | 31 | 30 | |||||||||||||||||
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS |
$ | 1,464 | $ | 1,432 | $ | 1,417 | $ | 1,373 | $ | 1,635 | ||||||||||||
Reconciliation to Net Income (Loss) and Financial Statement Line Item Adjustments from GAAP |
||||||||||||||||||||||
Operating earnings |
$ | 1,494 | $ | 1,463 | $ | 1,447 | $ | 1,404 | $ | 1,665 | ||||||||||||
Adjustments from operating earnings to income (loss) from continuing operations: |
||||||||||||||||||||||
Net investment gains (losses) (1) |
(110 | ) | (64 | ) | 22 | (200 | ) | 314 | ||||||||||||||
Net derivative gains (losses) |
(1,978 | ) | 2,092 | (718 | ) | (1,315 | ) | (630 | ) | |||||||||||||
Premiums |
22 | 22 | 16 | 4 | - | |||||||||||||||||
Universal life and investment-type product policy fees |
69 | 98 | 83 | 94 | 80 | |||||||||||||||||
Net investment income |
1,123 | (453 | ) | 469 | 373 | 945 | ||||||||||||||||
Other revenues |
145 | (33 | ) | 20 | 18 | (1 | ) | |||||||||||||||
Policyholder benefits and claims and policyholder dividends |
(508 | ) | (131 | ) | (303 | ) | (644 | ) | (602 | ) | ||||||||||||
Interest credited to policyholder account balances |
(1,018 | ) | 503 | (513 | ) | (459 | ) | (1,036 | ) | |||||||||||||
Capitalization of DAC |
2 | 2 | 1 | - | - | |||||||||||||||||
Amortization of DAC and VOBA |
304 | (317 | ) | 43 | (52 | ) | 192 | |||||||||||||||
Amortization of negative VOBA |
18 | 17 | 15 | 17 | 15 | |||||||||||||||||
Interest expense on debt |
(43 | ) | (45 | ) | (40 | ) | (38 | ) | (33 | ) | ||||||||||||
Other expenses (1) |
(525 | ) | (399 | ) | (263 | ) | (244 | ) | (308 | ) | ||||||||||||
Goodwill impairment |
- | - | (1,868 | ) | - | - | ||||||||||||||||
Provision for income tax (expense) benefit (1), (2) |
871 | (455 | ) | 632 | 1,147 | 394 | ||||||||||||||||
Income (loss) from continuing operations, net of income tax |
(134 | ) | 2,300 | (957 | ) | 105 | 995 | |||||||||||||||
Income (loss) from discontinued operations, net of income tax |
14 | 3 | - | 31 | (3 | ) | ||||||||||||||||
Net income (loss) |
(120 | ) | 2,303 | (957 | ) | 136 | 992 | |||||||||||||||
Less: Net income (loss) attributable to noncontrolling interests |
24 | 8 | (3 | ) | 9 | 6 | ||||||||||||||||
Net income (loss) attributable to MetLife, Inc. |
(144 | ) | 2,295 | (954 | ) | 127 | 986 | |||||||||||||||
Less: Preferred stock dividends |
30 | 31 | 30 | 31 | 30 | |||||||||||||||||
Net income (loss) available to MetLife, Inc.s common shareholders |
$ | (174 | ) | $ | 2,264 | $ | (984 | ) | $ | 96 | $ | 956 | ||||||||||
Total Operating Premiums, Fees and Other Revenues |
$ | 11,568 | $ | 11,564 | $ | 11,563 | $ | 13,184 | $ | 11,843 | ||||||||||||
(1) |
For the three months ended March 31, 2013, a net investment gain of $11 million, an expense of $154 million and a tax benefit of $119 million related to a settlement of an acquisition tax contingency are included.
|
| ||||||||||||||||||||
(2) |
For the three months ended December 31, 2012, a deferred tax benefit of $324 million related to the conversion of the Japan branch to a subsidiary is included. |
5
CONSOLIDATING STATEMENT OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
|
| |||||||||||||||||||||
Unaudited (In millions) | For the Three Months Ended March 31, 2013 | |||||||||||||||||||||
Consolidated |
Americas | Asia | EMEA | Corporate & Other | ||||||||||||||||||
OPERATING REVENUES |
||||||||||||||||||||||
Premiums |
$ | 9,151 | $ | 6,560 | $ | 1,998 | $ | 567 | $ | 26 | ||||||||||||
Universal life and investment-type product policy fees |
2,211 | 1,640 | 444 | 91 | 36 | |||||||||||||||||
Net investment income |
5,132 | 4,126 | 732 | 128 | 146 | |||||||||||||||||
Other revenues |
481 | 428 | 13 | 27 | 13 | |||||||||||||||||
Total operating revenues |
16,975 | 12,754 | 3,187 | 813 | 221 | |||||||||||||||||
OPERATING EXPENSES |
||||||||||||||||||||||
Policyholder benefits and claims and policyholder dividends |
9,106 | 7,445 | 1,415 | 237 | 9 | |||||||||||||||||
Interest credited to policyholder account balances |
1,554 | 1,065 | 442 | 35 | 12 | |||||||||||||||||
Capitalization of DAC |
(1,256) | (529 | ) | (546 | ) | (177 | ) | (4 | ) | |||||||||||||
Amortization of DAC and VOBA |
1,016 | 450 | 401 | 165 | - | |||||||||||||||||
Amortization of negative VOBA |
(131) | (1 | ) | (113 | ) | (17 | ) | - | ||||||||||||||
Interest expense on debt |
288 | 1 | - | 1 | 286 | |||||||||||||||||
Other expenses |
4,087 | 2,381 | 1,094 | 448 | 164 | |||||||||||||||||
Total operating expenses |
14,664 | 10,812 | 2,693 | 692 | 467 | |||||||||||||||||
Operating earnings before provision for income tax |
2,311 | 1,942 | 494 | 121 | (246 | ) | ||||||||||||||||
Provision for income tax expense (benefit) |
646 | 644 | 161 | 34 | (193 | ) | ||||||||||||||||
Operating earnings |
1,665 | 1,298 | 333 | 87 | (53 | ) | ||||||||||||||||
Preferred stock dividends |
30 | - | - | - | 30 | |||||||||||||||||
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS |
$ | 1,635 | $ | 1,298 | $ | 333 | $ | 87 | $ | (83 | ) | |||||||||||
Reconciliation to Net Income (Loss) and Financial Statement Line Item Adjustments from GAAP |
||||||||||||||||||||||
Operating earnings |
$ | 1,665 | $ | 1,298 | $ | 333 | $ | 87 | $ | (53 | ) | |||||||||||
Adjustments from operating earnings to income (loss) from continuing operations: |
||||||||||||||||||||||
Net investment gains (losses) (1) |
314 | 112 | 128 | 16 | 58 | |||||||||||||||||
Net derivative gains (losses) |
(630) | (171 | ) | (552 | ) | (6 | ) | 99 | ||||||||||||||
Premiums |
- | - | - | - | - | |||||||||||||||||
Universal life and investment-type product policy fees |
80 | 81 | 1 | (2 | ) | - | ||||||||||||||||
Net investment income |
945 | (126 | ) | 638 | 393 | 40 | ||||||||||||||||
Other revenues |
(1) | - | - | - | (1 | ) | ||||||||||||||||
Policyholder benefits and claims and policyholder dividends |
(602) | (458 | ) | (144 | ) | - | - | |||||||||||||||
Interest credited to policyholder account balances |
(1,036) | (13 | ) | (639 | ) | (384 | ) | - | ||||||||||||||
Capitalization of DAC |
- | - | - | - | - | |||||||||||||||||
Amortization of DAC and VOBA |
192 | 178 | 10 | 4 | - | |||||||||||||||||
Amortization of negative VOBA |
15 | - | 15 | - | - | |||||||||||||||||
Interest expense on debt |
(33) | - | - | - | (33 | ) | ||||||||||||||||
Other expenses (1) |
(308) | 1 | (150 | ) | (3 | ) | (156 | ) | ||||||||||||||
Goodwill impairment |
- | - | - | - | - | |||||||||||||||||
Provision for income tax (expense) benefit (1) |
394 | 138 | 283 | (22 | ) | (5 | ) | |||||||||||||||
Income (loss) from continuing operations, net of income tax |
995 | 1,040 | (77 | ) | 83 | (51 | ) | |||||||||||||||
Income (loss) from discontinued operations, net of income tax |
(3) | - | (3 | ) | - | - | ||||||||||||||||
Net income (loss) |
992 | 1,040 | (80 | ) | 83 | (51 | ) | |||||||||||||||
Less: Net income (loss) attributable to noncontrolling interests |
6 | - | 4 | 2 | - | |||||||||||||||||
Net income (loss) attributable to MetLife, Inc. |
986 | 1,040 | (84 | ) | 81 | (51 | ) | |||||||||||||||
Less: Preferred stock dividends |
30 | - | - | - | 30 | |||||||||||||||||
Net income (loss) available to MetLife, Inc.s common shareholders |
$ | 956 | $ | 1,040 | $ | (84 | ) | $ | 81 | $ | (81 | ) | ||||||||||
Total Operating Premiums, Fees and Other Revenues |
$ | 11,843 | $ | 8,628 | $ | 2,455 | $ | 685 | $ | 75 | ||||||||||||
(1) Consolidated Asia results include a net investment gain of $11 million, an expense of $154 million and a tax benefit of $119 million related to a settlement of an acquisition tax contingency. |
|
6
METLIFE, INC. | ||||||||||||||||||||||
CONSOLIDATING STATEMENT OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
|
||||||||||||||||||||||
For the Three Months Ended March 31, 2012 | ||||||||||||||||||||||
Unaudited (In millions) |
Consolidated |
Americas |
Asia |
EMEA |
Corporate & Other |
|||||||||||||||||
OPERATING REVENUES |
||||||||||||||||||||||
Premiums |
$ | 9,107 | $ | 6,402 | $ | 2,039 | $ | 652 | $ | 14 | ||||||||||||
Universal life and investment-type product policy fees |
2,009 | 1,527 | 362 | 80 | 40 | |||||||||||||||||
Net investment income |
5,077 | 4,047 | 681 | 157 | 192 | |||||||||||||||||
Other revenues |
452 | 386 | 16 | 36 | 14 | |||||||||||||||||
Total operating revenues |
16,645 | 12,362 | 3,098 | 925 | 260 | |||||||||||||||||
OPERATING EXPENSES |
||||||||||||||||||||||
Policyholder benefits and claims and policyholder dividends |
8,939 | 7,225 | 1,360 | 343 | 11 | |||||||||||||||||
Interest credited to policyholder account balances |
1,539 | 1,077 | 429 | 33 | - | |||||||||||||||||
Capitalization of DAC |
(1,362) | (598 | ) | (587 | ) | (177 | ) | - | ||||||||||||||
Amortization of DAC and VOBA |
1,018 | 499 | 373 | 146 | - | |||||||||||||||||
Amortization of negative VOBA |
(137) | (2 | ) | (131 | ) | (4 | ) | - | ||||||||||||||
Interest expense on debt |
315 | 3 | 1 | - | 311 | |||||||||||||||||
Other expenses |
4,243 | 2,426 | 1,191 | 471 | 155 | |||||||||||||||||
Total operating expenses |
14,555 | 10,630 | 2,636 | 812 | 477 | |||||||||||||||||
Operating earnings before provision for income tax |
2,090 | 1,732 | 462 | 113 | (217 | ) | ||||||||||||||||
Provision for income tax expense (benefit) |
596 | 574 | 161 | 41 | (180 | ) | ||||||||||||||||
Operating earnings |
1,494 | 1,158 | 301 | 72 | (37 | ) | ||||||||||||||||
Preferred stock dividends |
30 | - | - | - | 30 | |||||||||||||||||
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS |
$ | 1,464 | $ | 1,158 | $ | 301 | $ | 72 | $ | (67 | ) | |||||||||||
Reconciliation to Net Income (Loss) and Financial Statement Line Item Adjustments from GAAP |
||||||||||||||||||||||
Operating earnings |
$ | 1,494 | $ | 1,158 | $ | 301 | $ | 72 | $ | (37 | ) | |||||||||||
Adjustments from operating earnings to income (loss) from continuing operations: |
||||||||||||||||||||||
Net investment gains (losses) |
(110) | (35 | ) | (78 | ) | (18 | ) | 21 | ||||||||||||||
Net derivative gains (losses) |
(1,978) | (1,107 | ) | (30 | ) | 29 | (870 | ) | ||||||||||||||
Premiums |
22 | 22 | - | - | - | |||||||||||||||||
Universal life and investment-type product policy fees |
69 | 70 | (1 | ) | - | - | ||||||||||||||||
Net investment income |
1,123 | (40 | ) | 508 | 458 | 197 | ||||||||||||||||
Other revenues |
145 | - | 5 | - | 140 | |||||||||||||||||
Policyholder benefits and claims and policyholder dividends |
(508) | (485 | ) | (23 | ) | - | - | |||||||||||||||
Interest credited to policyholder account balances |
(1,018) | (53 | ) | (515 | ) | (450 | ) | - | ||||||||||||||
Capitalization of DAC |
2 | 2 | - | - | - | |||||||||||||||||
Amortization of DAC and VOBA |
304 | 303 | 1 | - | - | |||||||||||||||||
Amortization of negative VOBA |
18 | 1 | 17 | - | - | |||||||||||||||||
Interest expense on debt |
(43) | - | - | - | (43 | ) | ||||||||||||||||
Other expenses |
(525) | (10 | ) | 6 | 6 | (527 | ) | |||||||||||||||
Goodwill impairment |
- | - | - | - | - | |||||||||||||||||
Provision for income tax (expense) benefit |
871 | 466 | 53 | (22 | ) | 374 | ||||||||||||||||
Income (loss) from continuing operations, net of income tax |
(134) | 292 | 244 | 75 | (745 | ) | ||||||||||||||||
Income (loss) from discontinued operations, net of income tax |
14 | 14 | - | - | - | |||||||||||||||||
Net income (loss) |
(120) | 306 | 244 | 75 | (745 | ) | ||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interests |
24 | - | 7 | 17 | - | |||||||||||||||||
Net income (loss) attributable to MetLife, Inc. |
(144) | 306 | 237 | 58 | (745 | ) | ||||||||||||||||
Less: Preferred stock dividends |
30 | - | - | - | 30 | |||||||||||||||||
Net income (loss) available to MetLife, Inc.s common shareholders |
$ | (174) | $ | 306 | $ | 237 | $ | 58 | $ | (775 | ) | |||||||||||
Total Operating Premiums, Fees and Other Revenues |
$ | 11,568 | $ | 8,315 | $ | 2,417 | $ | 768 | $ | 68 |
7
(1) A reconciliation of operating earnings available to common shareholders to net income (loss) available to MetLife, Inc.s common shareholders for each segment and Corporate & Other appears in the QFS as follows: (i) Retail, Page 9, (ii) Group, Voluntary & Worksite Benefits, Page 15, (iii) Corporate Benefit Funding, Page 18, (iv) Latin America, Page 21, (v) Asia, Page 22, (vi) EMEA, Page 23, and (vii) Corporate & Other, Page 24. A consolidated reconciliation of operating earnings available to common shareholders to net income (loss) available to MetLife, Inc.s common shareholders appears on Page 5. |
8
9
AMERICAS RETAIL - LIFE & OTHER STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS - PRODUCT LEVEL
|
||||||||||||||||||||||||||||||||
For the Three Months Ended | For the Year-to-Date Period Ended | |||||||||||||||||||||||||||||||
Unaudited (In millions) | March 31, 2012 | June 30, 2012 | September 30, 2012 | December 31, 2012 | March 31, 2013 | March 31, 2012 | March 31, 2013 | |||||||||||||||||||||||||
OPERATING REVENUES |
||||||||||||||||||||||||||||||||
Premiums |
$ | 1,447 | $ | 1,476 | $ | 1,500 | $ | 1,628 | $ | 1,448 | $ | 1,447 | $ | 1,448 | ||||||||||||||||||
Universal life and investment-type product policy fees |
413 | 410 | 394 | 422 | 396 | 413 | 396 | |||||||||||||||||||||||||
Net investment income |
1,151 | 1,144 | 1,181 | 1,190 | 1,204 | 1,151 | 1,204 | |||||||||||||||||||||||||
Other revenues |
124 | 129 | 133 | 141 | 144 | 124 | 144 | |||||||||||||||||||||||||
Total operating revenues |
3,135 | 3,159 | 3,208 | 3,381 | 3,192 | 3,135 | 3,192 | |||||||||||||||||||||||||
OPERATING EXPENSES |
||||||||||||||||||||||||||||||||
Policyholder benefits and claims and policyholder dividends |
1,940 | 1,980 | 1,979 | 2,157 | 1,926 | 1,940 | 1,926 | |||||||||||||||||||||||||
Interest credited to policyholder account balances |
216 | 213 | 217 | 222 | 215 | 216 | 215 | |||||||||||||||||||||||||
Capitalization of DAC |
(194 | ) | (198 | ) | (186 | ) | (203 | ) | (181 | ) | (194 | ) | (181 | ) | ||||||||||||||||||
Amortization of DAC and VOBA |
219 | 219 | 252 | 280 | 201 | 219 | 201 | |||||||||||||||||||||||||
Amortization of negative VOBA |
- | - | - | - | - | - | - | |||||||||||||||||||||||||
Interest expense on debt |
- | (1 | ) | - | - | - | - | - | ||||||||||||||||||||||||
Other expenses |
679 | 675 | 644 | 674 | 652 | 679 | 652 | |||||||||||||||||||||||||
Total operating expenses |
2,860 | 2,888 | 2,906 | 3,130 | 2,813 | 2,860 | 2,813 | |||||||||||||||||||||||||
Operating earnings before provision for income tax |
275 | 271 | 302 | 251 | 379 | 275 | 379 | |||||||||||||||||||||||||
Provision for income tax expense (benefit) |
88 | 89 | 98 | 80 | 125 | 88 | 125 | |||||||||||||||||||||||||
Operating earnings |
187 | 182 | 204 | 171 | 254 | 187 | 254 | |||||||||||||||||||||||||
Preferred stock dividends |
- | - | - | - | - | - | - | |||||||||||||||||||||||||
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS |
$ | 187 | $ | 182 | $ | 204 | $ | 171 | $ | 254 | $ | 187 | $ | 254 | ||||||||||||||||||
Reconciliation to Net Income (Loss) and Financial Statement Line Item Adjustments from GAAP |
||||||||||||||||||||||||||||||||
Operating earnings |
$ | 187 | $ | 182 | $ | 204 | $ | 171 | $ | 254 | $ | 187 | $ | 254 | ||||||||||||||||||
Adjustments from operating earnings to income (loss) from continuing operations: |
||||||||||||||||||||||||||||||||
Net investment gains (losses) |
37 | 23 | 21 | 49 | 24 | 37 | 24 | |||||||||||||||||||||||||
Net derivative gains (losses) |
(169 | ) | 322 | (37 | ) | (43 | ) | (8 | ) | (169 | ) | (8 | ) | |||||||||||||||||||
Premiums |
- | - | - | - | - | - | - | |||||||||||||||||||||||||
Universal life and investment-type product policy fees |
(5 | ) | 8 | (3 | ) | - | (2 | ) | (5 | ) | (2 | ) | ||||||||||||||||||||
Net investment income |
(24 | ) | (32 | ) | (39 | ) | (41 | ) | (49 | ) | (24 | ) | (49 | ) | ||||||||||||||||||
Other revenues |
- | - | - | - | - | - | - | |||||||||||||||||||||||||
Policyholder benefits and claims and policyholder dividends |
- | - | - | - | - | - | - | |||||||||||||||||||||||||
Interest credited to policyholder account balances |
- | - | - | - | - | - | - | |||||||||||||||||||||||||
Capitalization of DAC |
- | - | - | - | - | - | - | |||||||||||||||||||||||||
Amortization of DAC and VOBA |
11 | (25 | ) | 7 | (117 | ) | (13 | ) | 11 | (13 | ) | |||||||||||||||||||||
Amortization of negative VOBA |
- | - | - | - | - | - | - | |||||||||||||||||||||||||
Interest expense on debt |
- | - | - | - | - | - | - | |||||||||||||||||||||||||
Other expenses |
- | - | - | - | - | - | - | |||||||||||||||||||||||||
Goodwill impairment |
- | - | - | - | - | - | - | |||||||||||||||||||||||||
Provision for income tax (expense) benefit |
53 | (104 | ) | 17 | 54 | 17 | 53 | 17 | ||||||||||||||||||||||||
Income (loss) from continuing operations, net of income tax |
90 | 374 | 170 | 73 | 223 | 90 | 223 | |||||||||||||||||||||||||
Income (loss) from discontinued operations, net of income tax |
9 | - | - | 9 | - | 9 | - | |||||||||||||||||||||||||
Net income (loss) |
99 | 374 | 170 | 82 | 223 | 99 | 223 | |||||||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interests |
- | - | - | - | - | - | - | |||||||||||||||||||||||||
Net income (loss) attributable to MetLife, Inc. |
99 | 374 | 170 | 82 | 223 | 99 | 223 | |||||||||||||||||||||||||
Less: Preferred stock dividends |
- | - | - | - | - | - | - | |||||||||||||||||||||||||
Net income (loss) available to MetLife, Inc.s common shareholders |
$ | 99 | $ | 374 | $ | 170 | $ | 82 | $ | 223 | $ | 99 | $ | 223 | ||||||||||||||||||
Total Operating Premiums, Fees and Other Revenues |
$ | 1,984 | $ | 2,015 | $ | 2,027 | $ | 2,191 | $ | 1,988 | $ |
1,984 |
|
$ | 1,988 |
10
AMERICAS RETAIL - ANNUITIES STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS - PRODUCT LEVEL
|
||||||||||||||||||||||||||||||||
For the Three Months Ended | For the Year-to-Date Period Ended | |||||||||||||||||||||||||||||||
Unaudited (In millions) | March 31, 2012 | June 30, 2012 | September 30, 2012 | December 31, 2012 | March 31, 2013 | March 31, 2012 | March 31, 2013 | |||||||||||||||||||||||||
OPERATING REVENUES |
||||||||||||||||||||||||||||||||
Premiums |
$ | 177 | $ | 100 | $ | 104 | $ | 100 | $ | 99 | $ | 177 | $ | 99 | ||||||||||||||||||
Universal life and investment-type product policy fees |
701 | 709 | 738 | 774 | 771 | 701 | 771 | |||||||||||||||||||||||||
Net investment income |
760 | 750 | 749 | 745 | 757 | 760 | 757 | |||||||||||||||||||||||||
Other revenues |
85 | 88 | 88 | 91 | 99 | 85 | 99 | |||||||||||||||||||||||||
Total operating revenues |
1,723 | 1,647 | 1,679 | 1,710 | 1,726 | 1,723 | 1,726 | |||||||||||||||||||||||||
OPERATING EXPENSES |
||||||||||||||||||||||||||||||||
Policyholder benefits and claims and policyholder dividends |
288 | 232 | 249 | 185 | 227 | 288 | 227 | |||||||||||||||||||||||||
Interest credited to policyholder account balances |
380 | 377 | 381 | 369 | 364 | 380 | 364 | |||||||||||||||||||||||||
Capitalization of DAC |
(282 | ) | (248 | ) | (244 | ) | (198 | ) | (193 | ) | (282 | ) | (193 | ) | ||||||||||||||||||
Amortization of DAC and VOBA |
185 | 258 | 186 | 8 | 130 | 185 | 130 | |||||||||||||||||||||||||
Amortization of negative VOBA |
- | - | - | - | - | - | - | |||||||||||||||||||||||||
Interest expense on debt |
- | 1 | - | - | - | - | - | |||||||||||||||||||||||||
Other expenses |
718 | 680 | 664 | 635 | 626 | 718 | 626 | |||||||||||||||||||||||||
Total operating expenses |
1,289 | 1,300 | 1,236 | 999 | 1,154 | 1,289 | 1,154 | |||||||||||||||||||||||||
Operating earnings before provision for income tax |
434 | 347 | 443 | 711 | 572 | 434 | 572 | |||||||||||||||||||||||||
Provision for income tax expense (benefit) |
152 | 121 | 155 | 249 | 200 | 152 | 200 | |||||||||||||||||||||||||
Operating earnings |
282 | 226 | 288 | 462 | 372 | 282 | 372 | |||||||||||||||||||||||||
Preferred stock dividends |
- | - | - | - | - | - | - | |||||||||||||||||||||||||
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS |
$ | 282 | $ | 226 | $ | 288 | $ | 462 | $ | 372 | $ | 282 | $ | 372 | ||||||||||||||||||
Reconciliation to Net Income (Loss) and Financial Statement Line Item Adjustments from GAAP |
||||||||||||||||||||||||||||||||
Operating earnings |
$ | 282 | $ | 226 | $ | 288 | $ | 462 | $ | 372 | $ | 282 | $ | 372 | ||||||||||||||||||
Adjustments from operating earnings to income (loss) from continuing operations: |
||||||||||||||||||||||||||||||||
Net investment gains (losses) |
30 | 35 | 32 | (15 | ) | 49 | 30 | 49 | ||||||||||||||||||||||||
Net derivative gains (losses) |
(357 | ) | 650 | 228 | (432 | ) | (148 | ) | (357 | ) | (148 | ) | ||||||||||||||||||||
Premiums |
- | - | - | - | - | - | - | |||||||||||||||||||||||||
Universal life and investment-type product policy fees |
72 | 74 | 86 | 86 | 82 | 72 | 82 | |||||||||||||||||||||||||
Net investment income |
(60 | ) | (62 | ) | (66 | ) | (71 | ) | (70 | ) | (60 | ) | (70 | ) | ||||||||||||||||||
Other revenues |
- | - | - | - | - | - | - | |||||||||||||||||||||||||
Policyholder benefits and claims and policyholder dividends |
(393 | ) | 50 | (279 | ) | (565 | ) | (403 | ) | (393 | ) | (403 | ) | |||||||||||||||||||
Interest credited to policyholder account balances |
- | - | - | - | - | - | - | |||||||||||||||||||||||||
Capitalization of DAC |
- | - | - | - | - | - | - | |||||||||||||||||||||||||
Amortization of DAC and VOBA |
293 | (275 | ) | 40 | 70 | 191 | 293 | 191 | ||||||||||||||||||||||||
Amortization of negative VOBA |
- | - | - | - | - | - | - | |||||||||||||||||||||||||
Interest expense on debt |
- | - | - | - | - | - | - | |||||||||||||||||||||||||
Other expenses |
- | - | - | - | - | - | - | |||||||||||||||||||||||||
Goodwill impairment |
- | - | (1,692 | ) | - | - | - | - | ||||||||||||||||||||||||
Provision for income tax (expense) benefit |
145 | (165 | ) | 207 | 325 | 105 | 145 | 105 | ||||||||||||||||||||||||
Income (loss) from continuing operations, net of income tax |
12 | 533 | (1,156 | ) | (140 | ) | 178 | 12 | 178 | |||||||||||||||||||||||
Income (loss) from discontinued operations, net of income tax |
1 | - | - | 14 | - | 1 | - | |||||||||||||||||||||||||
Net income (loss) |
13 | 533 | (1,156 | ) | (126 | ) | 178 | 13 | 178 | |||||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interests |
- | - | - | - | - | - | - | |||||||||||||||||||||||||
Net income (loss) attributable to MetLife, Inc. |
13 | 533 | (1,156 | ) | (126 | ) | 178 | 13 | 178 | |||||||||||||||||||||||
Less: Preferred stock dividends |
- | - | - | - | - | - | - | |||||||||||||||||||||||||
Net income (loss) available to MetLife, Inc.s common shareholders |
$ | 13 | $ | 533 | $ | (1,156 | ) | $ | (126 | ) | $ | 178 | $ | 13 | $ | 178 | ||||||||||||||||
Total Operating Premiums, Fees and Other Revenues |
$ | 963 | $ | 897 | $ | 930 | $ | 965 | $ | 969 | $ | 963 | $ | 969 |
11
RETAIL
FUTURE POLICY BENEFITS AND POLICYHOLDER ACCOUNT BALANCES
|
||||||||||||||||||||||||||
LIFE & OTHER (1) | ||||||||||||||||||||||||||
|
For the Three Months Ended | |||||||||||||||||||||||||
Unaudited (In millions) |
March 31, 2012 | June 30, 2012 | September 30, 2012 | December 31, 2012 | March 31, 2013 | |||||||||||||||||||||
Balance, beginning of period |
$ | 82,105 | $ | 82,622 | $ | 83,063 | $ | 83,307 | $ | 83,826 | ||||||||||||||||
Premiums and deposits (2), (3) |
2,137 | 2,124 | 2,017 | 2,170 | 1,991 | |||||||||||||||||||||
Surrenders and withdrawals |
(886) | (913) | (881) | (840) | (901) | |||||||||||||||||||||
Benefit payments |
(741) | (685) | (795) | (867) | (821) | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net Flows |
510 | 526 | 341 | 463 | 269 | |||||||||||||||||||||
Net transfers from (to) separate account |
28 | 23 | 30 | 79 | 46 | |||||||||||||||||||||
Interest |
810 | 806 | 811 | 815 | 809 | |||||||||||||||||||||
Policy charges |
(445) | (443) | (443) | (461) | (462) | |||||||||||||||||||||
Other |
(386) | (471) | (495) | (377) | (480) | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Balance, end of period |
$ | 82,622 | $ | 83,063 | $ | 83,307 | $ | 83,826 | $ | 84,008 | ||||||||||||||||
ANNUITIES
|
||||||||||||||||||||||||||
|
For the Three Months Ended | |||||||||||||||||||||||||
Unaudited (In millions) |
March 31, 2012 | June 30, 2012 | September 30, 2012 | December 31, 2012 | March 31, 2013 | |||||||||||||||||||||
Balance, beginning of period |
$ | 53,899 | $ | 51,360 | $ | 52,226 | $ | 51,590 | $ | 51,542 | ||||||||||||||||
Premiums and deposits (2), (3) |
1,483 | 1,245 | 1,266 | 1,047 | 1,019 | |||||||||||||||||||||
Surrenders and withdrawals |
(1,346) | (905) | (861) | (1,214) | (1,023) | |||||||||||||||||||||
Benefit payments |
(400) | (391) | (390) | (422) | (405) | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net Flows |
(263) | (51) | 15 | (589) | (409) | |||||||||||||||||||||
Net transfers from (to) separate account |
(1,251) | (750) | (604) | (335) | (555) | |||||||||||||||||||||
Interest |
450 | 444 | 449 | 430 | 424 | |||||||||||||||||||||
Policy charges |
(15) | (16) | (14) | (12) | (12) | |||||||||||||||||||||
Other |
(1,460) | 1,239 | (482) | 458 | (970) | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Balance, end of period |
$ | 51,360 | $ | 52,226 | $ | 51,590 | $ | 51,542 | $ | 50,020 | ||||||||||||||||
SEPARATE ACCOUNT LIABILITIES
|
| |||||||||||||||||||||||||
LIFE & OTHER | ||||||||||||||||||||||||||
|
For the Three Months Ended | |||||||||||||||||||||||||
Unaudited (In millions) |
March 31, 2012 | June 30, 2012 | September 30, 2012 | December 31, 2012 | March 31, 2013 | |||||||||||||||||||||
Balance, beginning of period |
$ | 7,946 | $ | 8,641 | $ | 8,232 | $ | 8,515 | $ | 8,463 | ||||||||||||||||
Premiums and deposits (3) |
180 | 174 | 167 | 178 | 172 | |||||||||||||||||||||
Surrenders and withdrawals |
(111) | (116) | (109) | (121) | (118) | |||||||||||||||||||||
Benefit payments |
(12) | (10) | (12) | (12) | (10) | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net Flows |
57 | 48 | 46 | 45 | 44 | |||||||||||||||||||||
Investment performance |
809 | (304) | 401 | 117 | 632 | |||||||||||||||||||||
Net transfers from (to) general account |
(28) | (23) | (30) | (79) | (46) | |||||||||||||||||||||
Policy charges |
(134) | (133) | (133) | (135) | (129) | |||||||||||||||||||||
Other |
(9) | 3 | (1) | - | (7) | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Balance, end of period |
$ | 8,641 | $ | 8,232 | $ | 8,515 | $ | 8,463 | $ | 8,957 | ||||||||||||||||
ANNUITIES
|
||||||||||||||||||||||||||
|
For the Three Months Ended | |||||||||||||||||||||||||
Unaudited (In millions) |
March 31, 2012 | June 30, 2012 | September 30, 2012 | December 31, 2012 | March 31, 2013 | |||||||||||||||||||||
Balance, beginning of period |
$ | 120,263 | $ | 133,462 | $ | 131,416 | $ | 139,484 | $ | 142,050 | ||||||||||||||||
Premiums and deposits (3) |
4,232 | 3,870 | 3,836 | 2,961 | 2,964 | |||||||||||||||||||||
Surrenders and withdrawals |
(2,151) | (2,103) | (2,019) | (2,177) | (2,175) | |||||||||||||||||||||
Benefit payments |
(242) | (254) | (242) | (283) | (269) | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Net Flows |
1,839 | 1,513 | 1,575 | 501 | 520 | |||||||||||||||||||||
Investment performance |
10,760 | (3,587) | 6,637 | 2,517 | 8,434 | |||||||||||||||||||||
Net transfers from (to) general account |
1,251 | 750 | 604 | 335 | 555 | |||||||||||||||||||||
Policy charges |
(652) | (723) | (750) | (788) | (734) | |||||||||||||||||||||
Other |
1 | 1 | 2 | 1 | 1 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Balance, end of period |
$ | 133,462 | $ | 131,416 | $ | 139,484 | $ | 142,050 | $ | 150,826 | ||||||||||||||||
(1) |
All of the retail property & casualty activity is reflected within the Other category. |
|||||||||||||||||||||||||
(2) |
Includes premiums and deposits directed to the General Account investment option of variable products. |
|||||||||||||||||||||||||
(3) |
Includes company sponsored internal exchanges. |
12
RETAIL
OTHER EXPENSES BY MAJOR CATEGORY
|
||||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||||
Unaudited (In millions) | March 31, 2012 | June 30, 2012 | September 30, 2012 | December 31, 2012 | March 31, 2013 | |||||||||||||||||
Direct and allocated expenses |
$ | 491 | $ | 484 | $ | 460 | $ | 500 | $ | 451 | ||||||||||||
Pension and post-retirement benefit costs |
57 | 57 | 57 | 40 | 60 | |||||||||||||||||
Premium taxes, other taxes, and licenses & fees |
48 | 46 | 40 | 33 | 40 | |||||||||||||||||
Total fixed operating expenses |
$ | 596 | $ | 587 | $ | 557 | $ | 573 | $ | 551 | ||||||||||||
Commissions and other variable expenses |
801 | 768 | 751 | 736 | 727 | |||||||||||||||||
Total other expenses |
$ | 1,397 | $ | 1,355 | $ | 1,308 | $ | 1,309 | $ | 1,278 | ||||||||||||
SALES BY PRODUCT
|
| |||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||||
Unaudited (In millions) | March 31, 2012 | June 30, 2012 | September 30, 2012 | December 31, 2012 | March 31, 2013 | |||||||||||||||||
Life Sales (1) |
||||||||||||||||||||||
Term Life |
$ | 34 | $ | 36 | $ | 31 | $ | 33 | $ | 23 | ||||||||||||
Whole Life |
28 | 33 | 30 | 36 | 29 | |||||||||||||||||
Variable Life |
8 | 8 | 7 | 8 | 9 | |||||||||||||||||
Universal Life |
42 | 37 | 36 | 50 | 43 | |||||||||||||||||
Total life sales |
$ | 112 | $ | 114 | $ | 104 | $ | 127 | $ | 104 | ||||||||||||
Annuity Sales (2) |
||||||||||||||||||||||
Fixed annuity sales |
$ | 435 | $ | 225 | $ | 253 | $ | 207 | $ | 213 | ||||||||||||
Variable annuity sales |
4,926 | 4,613 | 4,595 | 3,569 | 3,520 | |||||||||||||||||
Total annuity sales |
$ | 5,361 | $ | 4,838 | $ | 4,848 | $ | 3,776 | $ | 3,733 | ||||||||||||
Annuity Separate Account and General Account |
||||||||||||||||||||||
Separate Accounts |
||||||||||||||||||||||
Total variable annuity separate accounts |
$ | 3,964 | $ | 3,669 | $ | 3,655 | $ | 2,817 | $ | 2,822 | ||||||||||||
General Accounts |
||||||||||||||||||||||
Fixed annuity |
435 | 225 | 253 | 207 | 213 | |||||||||||||||||
Variable annuity |
962 | 944 | 940 | 752 | 698 | |||||||||||||||||
Total general accounts |
1,397 | 1,169 | 1,193 | 959 | 911 | |||||||||||||||||
Total annuity premiums and deposits |
$ | 5,361 | $ | 4,838 | $ | 4,848 | $ | 3,776 | $ | 3,733 | ||||||||||||
(1) Statistical sales information is calculated 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) Statutory premiums direct and assumed, excluding company sponsored internal exchanges. |
|
13
RETAIL
SPREAD BY PRODUCT
VARIABLE & UNIVERSAL LIFE (1) |
|
|||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||||
Unaudited |
March 31, 2012 | June 30, 2012 | September 30, 2012 | December 31, 2012 | March 31, 2013 | |||||||||||||||||
Investment income yield excluding variable investment income |
6.29% | 6.28% | 6.69% | 6.37% | 6.30% | |||||||||||||||||
Variable investment income yield |
0.13% | 0.17% | (0.05%) | 0.62% | 0.54% | |||||||||||||||||
Total investment income yield |
6.42% | 6.45% | 6.64% | 6.99% | 6.84% | |||||||||||||||||
Average crediting rate |
4.61% | 4.52% | 4.49% | 4.54% | 4.50% | |||||||||||||||||
Annualized general account spread |
1.81% | 1.93% | 2.15% | 2.45% | 2.34% | |||||||||||||||||
Annualized general account spread excluding variable investment income yield |
|
1.68% |
|
|
1.76% |
|
|
2.20% |
|
|
1.83% |
|
|
1.80% |
| |||||||
DEFERRED ANNUITIES (2) | ||||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||||
Unaudited |
March 31, 2012 | June 30, 2012 | September 30, 2012 | December 31, 2012 | March 31, 2013 | |||||||||||||||||
Investment income yield excluding variable investment income |
6.42% | 6.34% | 6.29% | 6.21% | 6.21% | |||||||||||||||||
Variable investment income yield |
0.06% | 0.08% | 0.11% | 0.21% | 0.13% | |||||||||||||||||
Total investment income yield |
6.48% | 6.42% | 6.40% | 6.42% | 6.34% | |||||||||||||||||
Average crediting rate |
3.39% | 3.41% | 3.43% | 3.40% | 3.38% | |||||||||||||||||
Annualized general account spread |
3.09% | 3.01% | 2.97% | 3.02% | 2.96% | |||||||||||||||||
Annualized general account spread excluding variable investment income yield |
3.03% | 2.93% | 2.86% | 2.81% | 2.83% | |||||||||||||||||
OTHER STATISTICAL INFORMATION | ||||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||||
Unaudited (In millions, except ratios) |
March 31, 2012 | June 30, 2012 | September 30, 2012 | December 31, 2012 | March 31, 2013 | |||||||||||||||||
Life (3) |
||||||||||||||||||||||
Operating premiums, fees and other revenues |
$ | 1,378 | $ | 1,397 | $ | 1,403 | $ | 1,544 | $ | 1,349 | ||||||||||||
Life mortality as percentage of expected |
91.6% | 85.6% | 91.3% | 99.0% | 92.7% | |||||||||||||||||
Lapse Ratio (4) |
||||||||||||||||||||||
Traditional life |
5.9% | 6.0% | 5.9% | 5.8% | 5.8% | |||||||||||||||||
Variable & universal life |
5.3% | 5.3% | 5.1% | 4.9% | 4.9% | |||||||||||||||||
Fixed annuity |
9.5% | 9.8% | 9.9% | 9.4% | 8.4% | |||||||||||||||||
Variable annuity |
6.5% | 6.2% | 6.0% | 6.0% | 5.9% | |||||||||||||||||
Retail Property & Casualty |
||||||||||||||||||||||
Operating premiums, fees and other revenues |
$ | 418 | $ | 421 | $ | 424 | $ | 433 | $ | 429 | ||||||||||||
Combined ratio including catastrophes |
91.2% | 105.4% | 94.6% | 100.4% | 94.5% | |||||||||||||||||
Combined ratio excluding catastrophes |
87.1% | 80.8% | 90.6% | 84.5% | 88.7% | |||||||||||||||||
(1) Represents the general account spread for variable & universal life, a component of Life & Other.
(2) Represents the general account spread for deferred annuities, a component of Annuities.
(3) Represents traditional life and variable & universal life, components of Life & Other.
(4) Lapse ratios are calculated based on the average of the most recent 12 months of experience. |
|
14
15
GROUP, VOLUNTARY & WORKSITE BENEFITS
FUTURE POLICY BENEFITS AND POLICYHOLDER ACCOUNT BALANCES (1)
|
| |||||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||||||
Unaudited (In millions) |
March 31, 2012 | June 30, 2012 | September 30, 2012 | December 31, 2012 | March 31, 2013 | |||||||||||||||||||
Balance, beginning of period |
$ | 25,582 | $ | 25,661 | $ | 26,642 | $ | 26,922 | $ | 26,772 | ||||||||||||||
Premiums and deposits |
4,296 | 4,330 | 4,428 | 4,269 | 4,445 | |||||||||||||||||||
Surrenders and withdrawals |
(909) | (898) | (975) | (798) | (832) | |||||||||||||||||||
Benefit payments |
(2,984) | (3,017) | (3,072) | (3,110) | (3,297) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net Flows |
403 | 415 | 381 | 361 | 316 | |||||||||||||||||||
Net transfers from (to) separate account |
- | (1) | - | 1 | - | |||||||||||||||||||
Interest |
212 | 209 | 211 | 218 | 211 | |||||||||||||||||||
Policy charges |
(125) | (125) | (133) | (127) | (130) | |||||||||||||||||||
Other |
(411) | 483 | (179) | (603) | (725) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance, end of period |
$ | 25,661 | $ | 26,642 | $ | 26,922 | $ | 26,772 | $ | 26,444 | ||||||||||||||
SEPARATE ACCOUNT LIABILITIES | ||||||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||||||
Unaudited (In millions) |
March 31, 2012 | June 30, 2012 | September 30, 2012 | December 31, 2012 | March 31, 2013 | |||||||||||||||||||
Balance, beginning of period |
$ | 478 | $ | 528 | $ | 508 | $ | 533 | $ | 532 | ||||||||||||||
Premiums and deposits |
49 | 49 | 48 | 49 | 49 | |||||||||||||||||||
Surrenders and withdrawals |
(12) | (10) | (10) | (14) | (13) | |||||||||||||||||||
Benefit payments |
(1) | (1) | (1) | (1) | (1) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Net Flows |
36 | 38 | 37 | 34 | 35 | |||||||||||||||||||
Investment performance |
53 | (18) | 28 | 6 | 37 | |||||||||||||||||||
Net transfers from (to) general account |
- | 1 | - | (1) | - | |||||||||||||||||||
Policy charges |
(39) | (40) | (39) | (40) | (41) | |||||||||||||||||||
Other |
- | (1) | (1) | - | (1) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance, end of period |
$ | 528 | $ | 508 | $ | 533 | $ | 532 | $ | 562 | ||||||||||||||
(1) All of the group property & casualty activity is reflected within the Other category. |
16
GROUP, VOLUNTARY & WORKSITE BENEFITS
OTHER EXPENSES BY MAJOR CATEGORY
| ||||||||||||||
For the Three Months Ended | ||||||||||||||
Unaudited (In millions) |
March 31, 2012 | June 30, 2012 | September 30, 2012 | December 31, 2012 | March 31, 2013 | |||||||||
Direct and allocated expenses |
$ 418 | $ 399 | $ 382 | $ 417 | $ 421 | |||||||||
Pension and post-retirement benefit costs |
19 | 19 | 19 | 8 | 25 | |||||||||
Premium taxes, other taxes, and licenses & fees |
55 | 60 | 56 | 56 | 58 | |||||||||
Total fixed operating expenses |
$ 492 | $ 478 | $ 457 | $ 481 | $ 504 | |||||||||
Commissions and other variable expenses |
83 | 92 | 90 | 178 | 84 | |||||||||
Total other expenses |
$ 575 | $ 570 | $ 547 | $ 659 | $ 588 | |||||||||
SPREAD (1) | ||||||||||||||
For the Three Months Ended | ||||||||||||||
Unaudited |
March 31, 2012 | June 30, 2012 | September 30, 2012 | December 31, 2012 | March 31, 2013 | |||||||||
Investment income yield excluding variable investment income |
5.94% | 5.93% | 6.01% | 5.79% | 5.95% | |||||||||
Variable investment income yield |
0.07% | 0.09% | 0.21% | 0.37% | 0.21% | |||||||||
Total investment income yield |
6.01% | 6.02% | 6.22% | 6.16% | 6.16% | |||||||||
Average crediting rate |
3.29% | 3.29% | 3.31% | 3.31% | 3.31% | |||||||||
Annualized general account spread |
2.72% | 2.73% | 2.91% | 2.85% | 2.85% | |||||||||
Annualized general account spread excluding variable investment income yield |
2.65% | 2.64% | 2.70% | 2.48% | 2.64% | |||||||||
OTHER STATISTICAL INFORMATION
| ||||||||||||||
For the Three Months Ended | ||||||||||||||
Unaudited (In millions, except ratios) |
March 31, 2012 | June 30, 2012 | September 30, 2012 | December 31, 2012 | March 31, 2013 | |||||||||
Group Life (2) |
||||||||||||||
Operating premiums, fees and other revenues |
$ 1,362 | $ 1,392 | $ 1,379 | $ 1,370 | $ 1,438 | |||||||||
Mortality ratio |
89.1% | 87.3% | 88.1% | 84.6% | 91.3% | |||||||||
Group Non-Medical Health (3) |
||||||||||||||
Operating premiums, fees and other revenues |
$ 1,415 | $ 1,497 | $ 1,555 | $ 1,560 | $ 1,604 | |||||||||
Benefit ratio |
87.5% | 87.4% | 88.5% | 91.6% | 88.9% | |||||||||
Group Property & Casualty (4) |
||||||||||||||
Operating premiums, fees and other revenues |
$ 343 | $ 357 | $ 356 | $ 357 | $ 345 | |||||||||
Combined ratio including catastrophes |
92.3% | 98.7% | 87.8% | 107.2% | 92.8% | |||||||||
Combined ratio excluding catastrophes |
89.8% | 86.6% | 87.2% | 91.1% | 90.4% | |||||||||
(1) |
Excludes group property & casualty. | |||||||||||||
(2) |
Excludes accidental death and dismemberment (AD&D) and certain experience-rated contracts. | |||||||||||||
(3) |
Includes dental, disability, long term care, AD&D, critical illness and vision. | |||||||||||||
(4) |
Starting for the three months ended March 2013, excludes the portion of group property & casualty reported in the Latin America segment. |
17
18
CORPORATE BENEFIT FUNDING |
||||||||||||||||||||||||||||||||
FUTURE POLICY BENEFITS AND POLICYHOLDER ACCOUNT BALANCES
|
||||||||||||||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||||||||||||||
Unaudited (In millions) |
March 31, 2012 | June 30, 2012 | September 30, 2012 | December 31, 2012 | March 31, 2013 | |||||||||||||||||||||||||||
Balance, beginning of period |
$ | 106,024 | $ | 108,339 | $ | 114,430 | $ | 116,659 | $ | 116,910 | ||||||||||||||||||||||
Premiums and deposits |
17,655 | 19,383 | 12,906 | 10,469 | 14,790 | |||||||||||||||||||||||||||
Surrenders and withdrawals |
(14,745) | (14,885) | (12,028) | (9,666) | (11,765) | |||||||||||||||||||||||||||
Benefit payments |
(838) | (850) | (899) | (902) | (876) | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Net Flows |
2,072 | 3,648 | (21) | (99) | 2,149 | |||||||||||||||||||||||||||
Net transfers from (to) separate account |
(5) | (11) | (11) | (11) | 5 | |||||||||||||||||||||||||||
Interest |
1,021 | 1,059 | 1,041 | 1,048 | 1,036 | |||||||||||||||||||||||||||
Policy charges |
(21) | (31) | (34) | (18) | (29) | |||||||||||||||||||||||||||
Other |
(752) | 1,426 | 1,254 | (669) | (884) | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Balance, end of period |
$ | 108,339 | $ | 114,430 | $ | 116,659 | $ | 116,910 | $ | 119,187 | ||||||||||||||||||||||
SEPARATE ACCOUNT LIABILITIES
|
||||||||||||||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||||||||||||||
Unaudited (In millions) |
March 31, 2012 | June 30, 2012 | September 30, 2012 | December 31, 2012 | March 31, 2013 | |||||||||||||||||||||||||||
Balance, beginning of period |
$ | 64,851 | $ | 68,635 | $ | 69,704 | $ | 76,905 | $ | 71,875 | ||||||||||||||||||||||
Premiums and deposits |
2,383 | 1,546 | 2,494 | 2,268 | 1,868 | |||||||||||||||||||||||||||
Surrenders and withdrawals |
(1,311) | (1,198) | (757) | (2,699) | (1,414) | |||||||||||||||||||||||||||
Benefit payments |
(16) | (17) | (21) | (13) | (19) | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Net Flows |
1,056 | 331 | 1,716 | (444) | 435 | |||||||||||||||||||||||||||
Investment performance |
1,115 | 1,077 | 1,466 | 364 | 697 | |||||||||||||||||||||||||||
Net transfers from (to) general account |
5 | 11 | 11 | 11 | (5) | |||||||||||||||||||||||||||
Policy charges |
(84) | (81) | (78) | (75) | (86) | |||||||||||||||||||||||||||
Other |
1,692 | (269) | 4,086 | (4,886) | 2,819 | |||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Balance, end of period |
$ | 68,635 | $ | 69,704 | $ | 76,905 | $ | 71,875 | $ | 75,735 |
19
CORPORATE BENEFIT FUNDING |
||||||||||||||||||||||||
OTHER EXPENSES BY MAJOR CATEGORY
|
||||||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||||||
Unaudited (In millions) |
March 31, 2012 | June 30, 2012 | September 30, 2012 | December 31, 2012 | March 31, 2013 | |||||||||||||||||||
Direct and allocated expenses |
$ | 76 | $ | 61 | $ | 63 | $ | 73 | $ | 69 | ||||||||||||||
Pension and post-retirement benefit costs |
11 | 11 | 11 | 5 | 14 | |||||||||||||||||||
Premium taxes, other taxes, and licenses & fees |
3 | 5 | 5 | (1 | ) | 3 | ||||||||||||||||||
Total fixed operating expenses |
$ | 90 | $ | 77 | $ | 79 | $ | 77 | $ | 86 | ||||||||||||||
Commissions and other variable expenses |
38 | 43 | 41 | 33 | 57 | |||||||||||||||||||
Total other expenses |
$ | 128 | $ | 120 | $ | 120 | $ | 110 | $ | 143 | ||||||||||||||
SPREAD
|
||||||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||||||
Unaudited |
March 31, 2012 | June 30, 2012 | September 30, 2012 | December 31, 2012 | March 31, 2013 | |||||||||||||||||||
Investment income yield excluding variable investment income |
5.13% | 4.95% | 4.83% | 4.72% | 4.68% | |||||||||||||||||||
Variable investment income yield |
0.22% | 0.32% | 0.24% | 0.38% | 0.28% | |||||||||||||||||||
Total investment income yield |
5.35% | 5.27% | 5.07% | 5.10% | 4.96% | |||||||||||||||||||
Average crediting rate |
3.87% | 3.72% | 3.64% | 3.59% | 3.53% | |||||||||||||||||||
Annualized general account spread |
1.48% | 1.55% | 1.43% | 1.51% | 1.43% | |||||||||||||||||||
Annualized general account spread excluding variable investment income yield |
1.26% | 1.23% | 1.19% | 1.13% | 1.15% |
20
21
22
23
24
25
INVESTMENTS INVESTMENT PORTFOLIO RESULTS BY ASSET CATEGORY AND ANNUALIZED YIELDS |
| |||||||||||||||||||||||
At or For the Year-to-Date Period Ended | ||||||||||||||||||||||||
Unaudited (In millions, except yields) | March 31, 2012 | June 30, 2012 | September 30, 2012 | December 31, 2012 | March 31, 2013 | |||||||||||||||||||
Fixed Maturity Securities |
||||||||||||||||||||||||
Yield (1) |
4.96% | 4.86% | 4.86% | 4.85% | 4.83% | |||||||||||||||||||
Investment income (2), (3), (4) |
$ | 3,840 | $ | 7,560 | $ | 11,393 | $ | 15,243 | $ | 3,833 | ||||||||||||||
Investment gains (losses) (3) |
(136 | ) | (155 | ) | (121 | ) | (47 | ) | 313 | |||||||||||||||
Ending carrying value (2), (3) |
355,269 | 367,138 | 378,748 | 375,108 | 375,275 | |||||||||||||||||||
Mortgage Loans |
||||||||||||||||||||||||
Yield (1) |
5.62% | 5.53% | 5.62% | 5.64% | 5.52% | |||||||||||||||||||
Investment income (3), (4) |
830 | 1,594 | 2,404 | 3,190 | 738 | |||||||||||||||||||
Investment gains (losses) (3) |
36 | 49 | 49 | 57 | 12 | |||||||||||||||||||
Ending carrying value (3) |
57,281 | 55,750 | 56,291 | 54,340 | 53,207 | |||||||||||||||||||
Real Estate and Real Estate Joint Ventures |
||||||||||||||||||||||||
Yield (1) |
3.76% | 6.25% | 5.14% | 4.59% | 2.40% | |||||||||||||||||||
Investment income (3) |
80 | 265 | 329 | 401 | 60 | |||||||||||||||||||
Investment gains (losses) (3) |
17 | 5 | (10 | ) | 33 | (20 | ) | |||||||||||||||||
Ending carrying value |
8,472 | 8,477 | 8,749 | 9,918 | 9,998 | |||||||||||||||||||
Policy Loans |
||||||||||||||||||||||||
Yield (1) |
5.30% | 5.28% | 5.27% | 5.25% | 5.22% | |||||||||||||||||||
Investment income |
158 | 314 | 471 | 626 | 155 | |||||||||||||||||||
Ending carrying value |
11,896 | 11,912 | 11,949 | 11,884 | 11,781 | |||||||||||||||||||
Equity Securities |
||||||||||||||||||||||||
Yield (1) |
4.17% | 4.69% | 4.36% | 4.60% | 3.41% | |||||||||||||||||||
Investment income |
32 | 70 | 96 | 133 | 24 | |||||||||||||||||||
Investment gains (losses) |
(9 | ) | 10 | 13 | 4 | (27 | ) | |||||||||||||||||
Ending carrying value |
3,043 | 2,882 | 2,803 | 2,891 | 3,188 | |||||||||||||||||||
Other Limited Partnership Interests |
||||||||||||||||||||||||
Yield (1) |
11.34% | 13.74% | 12.00% | 12.76% | 14.25% | |||||||||||||||||||
Investment income |
182 | 448 | 593 | 845 | 246 | |||||||||||||||||||
Investment gains (losses) |
(2 | ) | (11 | ) | (18 | ) | (36 | ) | - | |||||||||||||||
Ending carrying value |
6,487 | 6,726 | 6,730 | 6,688 | 7,087 | |||||||||||||||||||
Cash and Short-term Investments |
||||||||||||||||||||||||
Yield (1) |
0.69% | 0.67% | 0.67% | 0.69% | 0.89% | |||||||||||||||||||
Investment income |
32 | 66 | 100 | 143 | 45 | |||||||||||||||||||
Investment gains (losses) |
- | - | 3 | 6 | 39 | |||||||||||||||||||
Ending carrying value (3) |
30,465 | 34,540 | 31,625 | 32,634 | 23,635 | |||||||||||||||||||
Other Invested Assets (1) |
||||||||||||||||||||||||
Investment income |
132 | 329 | 469 | 595 | 179 | |||||||||||||||||||
Investment gains (losses) (3) |
(25 | ) | (35 | ) | (23 | ) | (157 | ) | (32 | ) | ||||||||||||||
Ending carrying value |
20,172 | 24,288 | 23,477 | 21,145 | 20,269 | |||||||||||||||||||
Total Investments |
||||||||||||||||||||||||
Investment income yield (1) |
5.00% | 5.03% | 4.98% | 4.96% | 4.93% | |||||||||||||||||||
Investment fees and expenses yield |
(0.13 | ) | (0.13 | ) | (0.13 | ) | (0.13 | ) | (0.13 | ) | ||||||||||||||
Net Investment Income Yield (1), (3), (5) |
4.87% | 4.90% | 4.85% | 4.83% | 4.80% | |||||||||||||||||||
Investment income |
$ | 5,286 | $ | 10,646 | $ | 15,855 | $ | 21,176 | $ | 5,280 | ||||||||||||||
Investment fees and expenses |
(140 | ) | (279 | ) | (419 | ) | (554 | ) | (143 | ) | ||||||||||||||
Net investment income including Divested businesses |
5,146 | 10,367 | 15,436 | 20,622 | 5,137 | |||||||||||||||||||
Less: Net investment income from Divested businesses (5) |
69 | 118 | 139 | 150 | 5 | |||||||||||||||||||
Net Investment Income (3) |
$ | 5,077 | $ | 10,249 | $ | 15,297 | $ | 20,472 | $ | 5,132 | ||||||||||||||
Ending Carrying Value (3) |
$ | 493,085 | $ | 511,713 | $ | 520,372 | $ | 514,608 | $ | 504,440 | ||||||||||||||
Investment portfolio gains (losses) including Divested businesses |
$ | (119 | ) | $ | (137 | ) | $ | (107 | ) | $ | (140 | ) | $ | 285 | ||||||||||
Less: Investment portfolio gains (losses) from Divested businesses (5) |
96 | 61 | 35 | 37 | - | |||||||||||||||||||
Investment Portfolio Gains (Losses) (3), (5) |
$ | (215 | ) | $ | (198 | ) | $ | (142 | ) | $ | (177 | ) | $ | 285 | ||||||||||
Gross investment gains |
$ | 278 | $ | 533 | $ | 790 | $ | 1,149 | $ | 560 | ||||||||||||||
Gross investment losses |
(335 | ) | (517 | ) | (644 | ) | (814 | ) | (196 | ) | ||||||||||||||
Writedowns |
(158 | ) | (214 | ) | (288 | ) | (512 | ) | (79 | ) | ||||||||||||||
Investment Portfolio Gains (Losses) (3), (5) |
(215 | ) | (198 | ) | (142 | ) | (177 | ) | 285 | |||||||||||||||
Investment portfolio gains (losses) income tax (expense) benefit |
70 | 57 | 44 | 77 | (124 | ) | ||||||||||||||||||
Investment Portfolio Gains (Losses), Net of Income Tax |
$ | (145 | ) | $ | (141 | ) | $ | (98 | ) | $ | (100 | ) | $ | 161 | ||||||||||
Derivative Gains (Losses) including Divested businesses |
$ | (2,064 | ) | $ | (80 | ) | $ | (904 | ) | $ | (2,357 | ) | $ | (763 | ) | |||||||||
Less: Derivative gains (losses) from Divested businesses (5) |
(5 | ) | (7 | ) | (7 | ) | (6 | ) | - | |||||||||||||||
Derivative gains (losses) (3), (5) |
(2,059 | ) | (73 | ) | (897 | ) | (2,351 | ) | (763 | ) | ||||||||||||||
Derivative gains (losses) income tax (expense) benefit |
727 | 28 | 309 | 839 | 270 | |||||||||||||||||||
Derivative Gains (Losses), Net of Income Tax |
$ | (1,332 | ) | $ | (45 | ) | $ | (588 | ) | $ | (1,512 | ) | $ | (493 | ) | |||||||||
(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 GAAP adjustments described on Page 2 and as presented on Page A-1. Asset carrying values exclude unrealized gains (losses), collateral received in connection 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 $818 million, $799 million, $743 million, $842 million and $981 million in ending carrying value, and $45 million, $44 million, $68 million, $88 million and $21 million of investment income related to fair value option and trading securities at or for the year-to-date period ended March 31, 2012, June 30, 2012, September 30, 2012, December 31, 2012 and March 31, 2013, respectively. |
| |||||||||||||||||||||||
(3) The reconciliation of the remaining yield table captions to the most directly comparable measures presented in accordance with GAAP are as follows at or for the periods ended March 31, 2012, June 30, 2012, September 30, 2012, December 31, 2012 and March 31, 2013, respectively: A) Fair value option and trading securities (included within fixed maturity securities above) ending carrying value excludes contractholder-directed unit-linked investments of $18,119 million, $17,459 million, $15,199 million, $15,465 million and $15,572 million; B) Ending carrying value excludes the effects of consolidating under GAAP certain VIEs that are treated as CSEs: Fair value option and trading securities (included within fixed maturity securities above) of $89 million, $70 million, $53 million, $41 million and $35 million, mortgage loans of $3,024 million, $2,932 million, $2,879 million, $2,666 million and $2,407 million and cash and short-term investments of $3 million, $21 million, $3 million, $10 million and $1 million; C) Mortgage loans ending carrying value excludes securitized reverse residential mortgage loans of $8,283 million, $259 million, $0, $0 and $0; D) Net investment income adjustments as presented on Page A-1 within the reconciliation to Net Income; E) Investment portfolio gains (losses) presented above and the GAAP adjustments as presented below; and F) Derivative gains (losses) presented above and GAAP adjustments as presented below:
|
| |||||||||||||||||||||||
For the Year-to-Date Period Ended | ||||||||||||||||||||||||
March 31, 2012 | June 30, 2012 | September 30, 2012 | December 31, 2012 | March 31, 2013 | ||||||||||||||||||||
Investment portfolio gains (losses) including Divested businesses - in above yield table |
$ | (119) | $ | (137) | $ | (107) | $ | (140) | $ | 285 | ||||||||||||||
Real estate discontinued operations |
(21) | (25) | (25) | (69) | 6 | |||||||||||||||||||
Net investment gains (losses) related to certain CSEs |
(5) | (1) | 14 | 25 | 8 | |||||||||||||||||||
Other gains (losses) reported in net investment gains (losses) on GAAP basis |
35 | (11) | (34) | (168) | 15 | |||||||||||||||||||
Net investment gains (losses) - GAAP basis |
$ | (110) | $ | (174) | $ | (152) | $ | (352) | $ | 314 | ||||||||||||||
For the Year-to-Date Period Ended | ||||||||||||||||||||||||
March 31, 2012 | June 30, 2012 | September 30, 2012 | December 31, 2012 | March 31, 2013 | ||||||||||||||||||||
Derivative gains (losses) including Divested businesses - in above yield table |
$ | (2,064) | $ | (80) | $ | (904) | $ | (2,357) | $ | (763) | ||||||||||||||
Investment hedge adjustments |
89 | 202 | 310 | 448 | 131 | |||||||||||||||||||
Settlement of foreign currency earnings hedges |
(5) | (11) | (18) | (23) | - | |||||||||||||||||||
PAB hedge adjustments |
2 | 3 | 8 | 13 | 2 | |||||||||||||||||||
Net derivative gains (losses) - GAAP basis |
$ | (1,978) | $ | 114 | $ | (604) | $ | (1,919) | $ | (630) | ||||||||||||||
(4) Investment income from fixed maturity securities and mortgage loans includes prepayment fees. |
| |||||||||||||||||||||||
(5) Yields are calculated including net investment income of certain Divested businesses and related carrying values. The net investment income adjustment on Page A-1 for all of the Divested businesses for the year-to-date period ended March 31, 2012, June 30, 2012, September 30, 2012, December 31, 2012 and March 31, 2013, includes $85 million, $173 million, $177 million, $177 million and $0, respectively, for securitized reverse residential mortgage loans that was excluded from the Mortgage Loans and total yield section presented above. See Page 2 for discussion of Divested businesses. |
|
26
GROSS UNREALIZED GAINS AND LOSSES AGING SCHEDULE FIXED MATURITY SECURITIES AVAILABLE-FOR-SALE (1)
| ||||||||||||||||||||||||||||||||
March 31, 2012 | June 30, 2012 | September 30, 2012 | December 31, 2012 | March 31, 2013 | ||||||||||||||||||||||||||||
Unaudited (In millions) | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | ||||||||||||||||||||||
Less than 20% |
$ | 1,963 | 52.6% | $ | 1,813 | 52.1% | $ | 1,157 | 51.6% | $ | 1,000 | 57.2% | $ | 1,155 | 73.8% | |||||||||||||||||
20% or more for less than six months |
258 | 6.9% | 272 | 7.8% | 111 | 5.0% | 89 | 5.1% | 46 | 2.9% | ||||||||||||||||||||||
20% or more for six months or greater |
1,512 | 40.5% | 1,397 | 40.1% | 973 | 43.4% | 659 | 37.7% | 364 | 23.3% | ||||||||||||||||||||||
Total Gross Unrealized Losses |
$ | 3,733 | 100.0% | $ | 3,482 | 100.0% | $ | 2,241 | 100.0% | $ | 1,748 | 100.0% | $ | 1,565 | 100.0% | |||||||||||||||||
Total Gross Unrealized Gains |
$ | 25,203 | $ | 30,950 | $ | 35,455 | $ | 35,144 | $ | 33,326 | ||||||||||||||||||||||
GROSS UNREALIZED GAINS AND LOSSES AGING SCHEDULE EQUITY SECURITIES AVAILABLE-FOR-SALE (1)
| ||||||||||||||||||||||||||||||||
March 31, 2012 | June 30, 2012 | September 30, 2012 | December 31, 2012 | March 31, 2013 | ||||||||||||||||||||||||||||
Unaudited (In millions) | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | ||||||||||||||||||||||
Less than 20% |
$ | 33 | 18.6% | $ | 56 | 25.3% | $ | 33 | 16.6% | $ | 30 | 18.9% | $ | 28 | 32.6% | |||||||||||||||||
20% or more for less than six months |
14 | 7.9% | 19 | 8.6% | 28 | 14.1% | 10 | 6.3% | 4 | 4.6% | ||||||||||||||||||||||
20% or more for six months or greater |
130 | 73.5% | 146 | 66.1% | 138 | 69.3% | 119 | 74.8% | 54 | 62.8% | ||||||||||||||||||||||
Total Gross Unrealized Losses |
$ | 177 | 100.0% | $ | 221 | 100.0% | $ | 199 | 100.0% | $ | 159 | 100.0% | $ | 86 | 100.0% | |||||||||||||||||
Total Gross Unrealized Gains |
$ | 158 | $ | 130 | $ | 164 | $ | 212 | $ | 376 | ||||||||||||||||||||||
(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. |
27
SUMMARY OF FIXED MATURITY SECURITIES AVAILABLE-FOR-SALE BY SECTOR AND QUALITY DISTRIBUTION
| ||||||||||||||||||||||||||||||||||||||||||||
Unaudited (In millions) | March 31, 2012 | June 30, 2012 | September 30, 2012 | December 31, 2012 | March 31, 2013 | |||||||||||||||||||||||||||||||||||||||
Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | |||||||||||||||||||||||||||||||||||
U.S. corporate securities |
$ | 105,273 | 29.7% | $ | 110,373 | 30.1% | $ | 113,942 | 30.1% | $ | 114,126 | 30.5% | $ | 113,006 | 30.2% | |||||||||||||||||||||||||||||
Foreign corporate securities |
65,354 | 18.4% | 63,345 | 17.3% | 65,257 | 17.3% | 67,184 | 18.0% | 66,086 | 17.7% | ||||||||||||||||||||||||||||||||||
Foreign government securities |
55,338 | 15.6% | 56,193 | 15.3% | 57,405 | 15.2% | 57,336 | 15.3% | 55,435 | 14.8% | ||||||||||||||||||||||||||||||||||
U.S. Treasury and agency securities |
41,416 | 11.7% | 47,841 | 13.1% | 51,448 | 13.6% | 47,967 | 12.8% | 54,457 | 14.5% | ||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities |
41,279 | 11.7% | 41,064 | 11.2% | 40,591 | 10.7% | 37,479 | 10.0% | 36,347 | 9.7% | ||||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities |
18,732 | 5.3% | 19,017 | 5.2% | 19,440 | 5.1% | 19,129 | 5.1% | 17,897 | 4.8% | ||||||||||||||||||||||||||||||||||
Asset-backed securities |
13,143 | 3.7% | 13,892 | 3.8% | 15,005 | 4.0% | 15,997 | 4.3% | 16,114 | 4.3% | ||||||||||||||||||||||||||||||||||
State and political subdivision securities |
13,916 | 3.9% | 14,614 | 4.0% | 14,917 | 4.0% | 15,048 | 4.0% | 14,952 | 4.0% | ||||||||||||||||||||||||||||||||||
Total fixed maturity securities available-for-sale |
$ | 354,451 | 100.0% | $ | 366,339 | 100.0% | $ | 378,005 | 100.0% | $ | 374,266 | 100.0% | $ | 374,294 | 100.0% | |||||||||||||||||||||||||||||
NAIC |
RATING AGENCY | |||||||||||||||||||||||||||||||||||||||||||
RATING |
DESIGNATION | |||||||||||||||||||||||||||||||||||||||||||
1 |
Aaa / Aa / A | $ | 248,544 | 70.1% | $ | 258,302 | 70.5% | $ | 264,892 | 70.1% | $ | 258,568 | 69.1% | $ | 259,419 | 69.3% | ||||||||||||||||||||||||||||
2 |
Baa | 80,882 | 22.8% | 83,515 | 22.8% | 87,930 | 23.3% | 90,193 | 24.1% | 89,202 | 23.8% | |||||||||||||||||||||||||||||||||
3 |
Ba | 14,618 | 4.1% | 14,848 | 4.1% | 15,029 | 4.0% | 14,434 | 3.8% | 14,488 | 3.9% | |||||||||||||||||||||||||||||||||
4 |
B | 9,051 | 2.6% | 8,503 | 2.3% | 8,881 | 2.3% | 9,607 | 2.6% | 9,557 | 2.6% | |||||||||||||||||||||||||||||||||
5 |
Caa and lower | 1,334 | 0.4% | 1,121 | 0.3% | 1,207 | 0.3% | 1,379 | 0.4% | 1,548 | 0.4% | |||||||||||||||||||||||||||||||||
6 |
In or near default | 22 | 0.0% | 50 | 0.0% | 66 | 0.0% | 85 | 0.0% | 80 | 0.0% | |||||||||||||||||||||||||||||||||
Total fixed maturity securities available-for-sale (1) |
$ | 354,451 | 100.0% | $ | 366,339 | 100.0% | $ | 378,005 | 100.0% | $ | 374,266 | 100.0% | $ | 374,294 | 100.0% | |||||||||||||||||||||||||||||
(1) 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 maintain the NAIC statutory basis of accounting are based on ratings from revised NAIC rating methodologies. The NAICs 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 credit rating provider list.
| ||||||||||||||||||||||||||||||||||||||||||||
SUMMARY OF REAL ESTATE AND REAL ESTATE JOINT VENTURES
|
March 31, 2012 | June 30, 2012 | September 30, 2012 | December 31, 2012 | March 31, 2013 | ||||||||||||||||||||||||||||
Unaudited (In millions) | ||||||||||||||||||||||||||||||||
Traditional (2), (3) |
$ 6,954 | $ 7,083 | $ 7,338 | $ 8,489 | $ 8,595 | |||||||||||||||||||||||||||
Real estate joint ventures and funds |
1,172 | 1,109 | 1,083 | 941 | 903 | |||||||||||||||||||||||||||
Subtotal |
8,126 | 8,192 | 8,421 | 9,430 | 9,498 | |||||||||||||||||||||||||||
Foreclosed |
346 | 285 | 328 | 488 | 500 | |||||||||||||||||||||||||||
Total Real Estate and Real Estate Joint Ventures |
$ 8,472 | $ 8,477 | $ 8,749 | $ 9,918 | $ 9,998 | |||||||||||||||||||||||||||
(2) Includes wholly-owned real estate and operating real estate joint ventures.
(3) Includes real estate held-for-sale and held-for-investment. |
|
28
SUMMARY OF MORTGAGE LOANS (1), (2) |
||||||||||||||||||||||
March 31, 2012 | June 30, 2012 | September 30, 2012 | December 31, 2012 | March 31, 2013 | ||||||||||||||||||
Unaudited (In millions) | ||||||||||||||||||||||
|
||||||||||||||||||||||
Commercial mortgage loans |
$ 40,329 | $ | 41,035 | $ | 41,941 | $ | 40,472 | $ | 39,605 | |||||||||||||
Agricultural mortgage loans |
12,946 | 12,848 | 12,600 | 12,843 | 12,669 | |||||||||||||||||
Residential mortgage loans |
788 | 747 | 818 | 958 | 994 | |||||||||||||||||
Mortgage loans held-for-sale |
3,664 | 1,481 | 1,286 | 414 | 271 | |||||||||||||||||
Total Mortgage Loans |
57,727 | 56,111 | 56,645 | 54,687 | 53,539 | |||||||||||||||||
Valuation allowances |
(446) | (361) | (354) | (347) | (332) | |||||||||||||||||
Total Mortgage Loans, net |
$ 57,281 | $ | 55,750 | $ | 56,291 | $ | 54,340 | $ | 53,207 | |||||||||||||
(1) Excludes the effects of securitized reverse residential mortgage loans which have been sold, but do not qualify for de-recognition. See Page 25, note 3 for the amount excluded for each period presented.
(2) Excludes the effects of consolidating under GAAP certain VIEs that are treated as CSEs. See Page 25, note 3 for the amount excluded for each period presented. |
| |||||||||||||||||||||
SUMMARY OF COMMERCIAL MORTGAGE LOANS BY REGION AND PROPERTY TYPE |
|
March 31, 2012 | June 30, 2012 | September 30, 2012 | December 31, 2012 | March 31, 2013 | ||||||||||||||||||||||||||||||||||||||
Unaudited (In millions) | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | ||||||||||||||||||||||||||||||||
Pacific |
$ | 8,015 | 19.9 | % | $ | 7,973 | 19.4 | % | $ | 8,189 | 19.5 | % | $ | 7,932 | 19.6 | % | $ | 7,718 | 19.5 | % | ||||||||||||||||||||||
South Atlantic |
8,968 | 22.2 | % | 8,966 | 21.9 | % | 8,430 | 20.1 | % | 7,969 | 19.7 | % | 7,655 | 19.3 | % | |||||||||||||||||||||||||||
Middle Atlantic |
6,288 | 15.6 | % | 6,412 | 15.6 | % | 7,014 | 16.7 | % | 6,780 | 16.7 | % | 6,970 | 17.6 | % | |||||||||||||||||||||||||||
International |
4,839 | 12.0 | % | 4,955 | 12.1 | % | 5,436 | 13.0 | % | 5,567 | 13.8 | % | 5,344 | 13.5 | % | |||||||||||||||||||||||||||
West South Central |
3,289 | 8.1 | % | 3,492 | 8.5 | % | 3,485 | 8.3 | % | 3,436 | 8.5 | % | 3,496 | 8.8 | % | |||||||||||||||||||||||||||
East North Central |
2,936 | 7.3 | % | 3,110 | 7.6 | % | 3,161 | 7.5 | % | 3,026 | 7.5 | % | 2,765 | 7.0 | % | |||||||||||||||||||||||||||
New England |
1,572 | 3.9 | % | 1,553 | 3.8 | % | 1,551 | 3.7 | % | 1,489 | 3.7 | % | 1,488 | 3.8 | % | |||||||||||||||||||||||||||
Mountain |
810 | 2.0 | % | 992 | 2.4 | % | 990 | 2.4 | % | 906 | 2.2 | % | 875 | 2.2 | % | |||||||||||||||||||||||||||
East South Central |
483 | 1.2 | % | 460 | 1.1 | % | 459 | 1.1 | % | 457 | 1.1 | % | 456 | 1.2 | % | |||||||||||||||||||||||||||
West North Central |
346 | 0.9 | % | 338 | 0.8 | % | 335 | 0.8 | % | 288 | 0.7 | % | 285 | 0.7 | % | |||||||||||||||||||||||||||
Multi-Region and Other |
2,783 | 6.9 | % | 2,784 | 6.8 | % | 2,891 | 6.9 | % | 2,622 | 6.5 | % | 2,553 | 6.4 | % | |||||||||||||||||||||||||||
Total |
$ | 40,329 | 100.0 | % | $ | 41,035 | 100.0 | % | $ | 41,941 | 100.0 | % | $ | 40,472 | 100.0 | % | $ | 39,605 | 100.0 | % | ||||||||||||||||||||||
Office |
$ | 18,320 | 45.4 | % | $ | 18,502 | 45.1 | % | $ | 18,899 | 45.1 | % | $ | 18,012 | 44.5 | % | $ | 18,259 | 46.1 | % | ||||||||||||||||||||||
Retail |
9,545 | 23.7 | % | 9,669 | 23.6 | % | 9,758 | 23.3 | % | 9,445 | 23.3 | % | 8,973 | 22.7 | % | |||||||||||||||||||||||||||
Apartment |
3,930 | 9.7 | % | 4,303 | 10.5 | % | 4,114 | 9.8 | % | 3,944 | 9.8 | % | 3,897 | 9.8 | % | |||||||||||||||||||||||||||
Hotel |
3,136 | 7.8 | % | 3,181 | 7.7 | % | 3,482 | 8.3 | % | 3,355 | 8.3 | % | 3,278 | 8.3 | % | |||||||||||||||||||||||||||
Industrial |
3,288 | 8.2 | % | 3,224 | 7.9 | % | 3,237 | 7.7 | % | 3,159 | 7.8 | % | 3,077 | 7.8 | % | |||||||||||||||||||||||||||
Other |
2,110 | 5.2 | % | 2,156 | 5.2 | % | 2,451 | 5.8 | % | 2,557 | 6.3 | % | 2,121 | 5.3 | % | |||||||||||||||||||||||||||
Total |
$ | 40,329 | 100.0 | % | $ | 41,035 | 100.0 | % | $ | 41,941 | 100.0 | % | $ | 40,472 | 100.0 | % | $ | 39,605 | 100.0 | % |
29
METLIFE, INC. RECONCILIATION DETAIL
|
| |||||||||||||||||||||||||||||||
For the Three Months Ended | For the Year-to-Date Period Ended | |||||||||||||||||||||||||||||||
Unaudited (In millions) | March 31, 2012 | June 30, 2012 | September 30, 2012 | December 31, 2012 | March 31, 2013 | March 31, 2012 | March 31, 2013 | |||||||||||||||||||||||||
Reconciliation to Net Income (Loss) and Financial Statement Line Item Adjustments from GAAP |
||||||||||||||||||||||||||||||||
Operating earnings |
$ | 1,494 | $ | 1,463 | $ | 1,447 | $ | 1,404 | $ | 1,665 | $ | 1,494 | $ | 1,665 | ||||||||||||||||||
Adjustments from operating earnings to income (loss) from continuing operations: |
||||||||||||||||||||||||||||||||
Net investment gains (losses) (1) |
(110 | ) | (64 | ) | 22 | (200 | ) | 314 | (110 | ) | 314 | |||||||||||||||||||||
Net derivative gains (losses) |
(1,978 | ) | 2,092 | (718 | ) | (1,315 | ) | (630 | ) | (1,978 | ) | (630 | ) | |||||||||||||||||||
Premiums - Divested businesses |
22 | 22 | 16 | 4 | - | 22 | - | |||||||||||||||||||||||||
Universal life and investment-type product policy fees |
||||||||||||||||||||||||||||||||
Unearned revenue adjustments |
(6 | ) | 20 | (4 | ) | 5 | (3 | ) | (6 | ) | (3 | ) | ||||||||||||||||||||
GMIB fees |
72 | 74 | 86 | 86 | 82 | 72 | 82 | |||||||||||||||||||||||||
Divested businesses |
3 | 4 | 1 | 3 | 1 | 3 | 1 | |||||||||||||||||||||||||
Net investment income |
||||||||||||||||||||||||||||||||
Investment hedge adjustments |
(89 | ) | (113 | ) | (108 | ) | (138 | ) | (131 | ) | (89 | ) | (131 | ) | ||||||||||||||||||
Income from discontinued real estate operations |
- | (2 | ) | - | (1 | ) | (1 | ) | - | (1 | ) | |||||||||||||||||||||
Joint venture adjustments |
- | - | - | - | - | - | - | |||||||||||||||||||||||||
Unit-linked contract income |
1,015 | (517 | ) | 512 | 463 | 1,039 | 1,015 | 1,039 | ||||||||||||||||||||||||
Securitization entities income |
43 | 42 | 40 | 38 | 33 | 43 | 33 | |||||||||||||||||||||||||
Divested businesses |
154 | 137 | 25 | 11 | 5 | 154 | 5 | |||||||||||||||||||||||||
Other revenues |
||||||||||||||||||||||||||||||||
Settlement of foreign currency earnings hedges |
5 | 6 | 7 | 5 | - | 5 | - | |||||||||||||||||||||||||
Divested businesses |
140 | (39 | ) | 13 | 13 | (1 | ) | 140 | (1 | ) | ||||||||||||||||||||||
Policyholder benefits and claims and policyholder dividends |
||||||||||||||||||||||||||||||||
PDO adjustments |
- | - | - | - | - | - | - | |||||||||||||||||||||||||
Inflation adjustments and pass through adjustments |
(98 | ) | (169 | ) | (13 | ) | (73 | ) | (197 | ) | (98 | ) | (197 | ) | ||||||||||||||||||
GMIB costs |
(388 | ) | 52 | (278 | ) | (563 | ) | (401 | ) | (388 | ) | (401 | ) | |||||||||||||||||||
Market value adjustments |
(7 | ) | (2 | ) | (1 | ) | (3 | ) | (2 | ) | (7 | ) | (2 | ) | ||||||||||||||||||
Divested businesses |
(15 | ) | (12 | ) | (11 | ) | (5 | ) | (2 | ) | (15 | ) | (2 | ) | ||||||||||||||||||
Interest credited to policyholder account balances |
||||||||||||||||||||||||||||||||
PAB hedge adjustments |
(2 | ) | (1 | ) | (5 | ) | (5 | ) | (2 | ) | (2 | ) | (2 | ) | ||||||||||||||||||
Unit-linked contract costs |
(1,016 | ) | 509 | (507 | ) | (454 | ) | (1,033 | ) | (1,016 | ) | (1,033 | ) | |||||||||||||||||||
Divested businesses |
- | (5 | ) | (1 | ) | - | (1 | ) | - | (1 | ) | |||||||||||||||||||||
Capitalization of DAC - Divested businesses |
2 | 2 | 1 | - | - | 2 | - | |||||||||||||||||||||||||
Amortization of DAC and VOBA |
||||||||||||||||||||||||||||||||
Related to NIGL and NDGL |
192 | (257 | ) | (14 | ) | 38 | 78 | 192 | 78 | |||||||||||||||||||||||
Related to GMIB fees and GMIB costs |
113 | (58 | ) | 57 | (89 | ) | 114 | 113 | 114 | |||||||||||||||||||||||
Related to market value adjustments |
- | - | - | - | - | - | - | |||||||||||||||||||||||||
Divested businesses |
(1 | ) | (2 | ) | - | (1 | ) | - | (1 | ) | - | |||||||||||||||||||||
Amortization of negative VOBA |
||||||||||||||||||||||||||||||||
Related to market value adjustments |
17 | 16 | 15 | 17 | 15 | 17 | 15 | |||||||||||||||||||||||||
Divested businesses |
1 | 1 | - | - | - | 1 | - | |||||||||||||||||||||||||
Interest expense on debt |
||||||||||||||||||||||||||||||||
Securitization entities debt expense |
(43 | ) | (42 | ) | (40 | ) | (38 | ) | (33 | ) | (43 | ) | (33 | ) | ||||||||||||||||||
Divested businesses |
- | (3 | ) | - | - | - | - | - | ||||||||||||||||||||||||
Other expenses |
||||||||||||||||||||||||||||||||
Noncontrolling interest |
24 | 11 | (13 | ) | 17 | 5 | 24 | 5 | ||||||||||||||||||||||||
Regulatory implementation costs |
(7 | ) | (14 | ) | (18 | ) | (12 | ) | (4 | ) | (7 | ) | (4 | ) | ||||||||||||||||||
Acquisition & integration costs (1) |
(75 | ) | (56 | ) | (80 | ) | (69 | ) | (181 | ) | (75 | ) | (181 | ) | ||||||||||||||||||
Divested businesses |
(467 | ) | (340 | ) | (152 | ) | (180 | ) | (128 | ) | (467 | ) | (128 | ) | ||||||||||||||||||
Goodwill impairment |
- | - | (1,868 | ) | - | - | - | - | ||||||||||||||||||||||||
Provision for income tax (expense) benefit (1), (2) |
871 | (455 | ) | 632 | 1,147 | 394 | 871 | 394 | ||||||||||||||||||||||||
Income (loss) from continuing operations, net of income tax |
(134 | ) | 2,300 | (957 | ) | 105 | 995 | (134 | ) | 995 | ||||||||||||||||||||||
Income (loss) from discontinued operations, net of income tax |
14 | 3 | - | 31 | (3 | ) | 14 | (3 | ) | |||||||||||||||||||||||
Net income (loss) |
(120 | ) | 2,303 | (957 | ) | 136 | 992 | (120 | ) | 992 | ||||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interests |
24 | 8 | (3 | ) | 9 | 6 | 24 | 6 | ||||||||||||||||||||||||
Net income (loss) attributable to MetLife, Inc. |
(144 | ) | 2,295 | (954 | ) | 127 | 986 | (144 | ) | 986 | ||||||||||||||||||||||
Less: Preferred stock dividends |
30 | 31 | 30 | 31 | 30 | 30 | 30 | |||||||||||||||||||||||||
Net income (loss) available to MetLife, Inc.s common shareholders |
$ | (174 | ) | $ | 2,264 | $ | (984 | ) | $ | 96 | $ | 956 | $ | (174 | ) | $ | 956 | |||||||||||||||
(1) For the three months ended March 31, 2013, a net investment gain of $11 million, an expense of $154 million and a tax benefit of $119 million related to a settlement of an acquisition tax contingency are included.
(2) For the three months ended December 31, 2012, a deferred tax benefit of $324 million related to the conversion of the Japan branch to a subsidiary is included. |
|
A-1
TOTAL PROPERTY & CASUALTY (1) STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
|
||||||||||||||||||||||||||||||||
For the Three Months Ended | For the Year-to-Date Period Ended | |||||||||||||||||||||||||||||||
Unaudited (In millions) | March 31, 2012 | June 30, 2012 | September 30, 2012 | December 31, 2012 | March 31, 2013 | March 31, 2012 | March 31, 2013 | |||||||||||||||||||||||||
OPERATING REVENUES |
||||||||||||||||||||||||||||||||
Premiums |
$ | 753 | $ | 761 | $ | 772 | $ | 783 | $ | 780 | $ | 753 | $ | 780 | ||||||||||||||||||
Universal life and investment-type product policy fees |
- | - | - | - | - | - | - | |||||||||||||||||||||||||
Net investment income |
53 | 51 | 51 | 48 | 38 | 53 | 38 | |||||||||||||||||||||||||
Other revenues |
8 | 17 | 8 | 7 | 6 | 8 | 6 | |||||||||||||||||||||||||
Total operating revenues |
814 | 829 | 831 | 838 | 824 | 814 | 824 | |||||||||||||||||||||||||
OPERATING EXPENSES |
||||||||||||||||||||||||||||||||
Policyholder benefits and claims and policyholder dividends |
503 | 584 | 515 | 609 | 529 | 503 | 529 | |||||||||||||||||||||||||
Interest credited to policyholder account balances |
- | - | - | - | - | - | - | |||||||||||||||||||||||||
Capitalization of DAC |
(86 | ) | (94 | ) | (98 | ) | (96 | ) | (92 | ) | (86 | ) | (92 | ) | ||||||||||||||||||
Amortization of DAC and VOBA |
87 | 87 | 90 | 94 | 93 | 87 | 93 | |||||||||||||||||||||||||
Amortization of negative VOBA |
- | - | - | - | - | - | - | |||||||||||||||||||||||||
Interest expense on debt |
- | - | - | - | - | - | - | |||||||||||||||||||||||||
Other expenses |
191 | 205 | 203 | 205 | 208 | 191 | 208 | |||||||||||||||||||||||||
Total operating expenses |
695 | 782 | 710 | 812 | 738 | 695 | 738 | |||||||||||||||||||||||||
Operating earnings before provision for income tax |
119 | 47 | 121 | 26 | 86 | 119 | 86 | |||||||||||||||||||||||||
Provision for income tax expense (benefit) |
28 | 3 | 30 | (5 | ) | 18 | 28 | 18 | ||||||||||||||||||||||||
Operating earnings |
91 | 44 | 91 | 31 | 68 | 91 | 68 | |||||||||||||||||||||||||
Preferred stock dividends |
- | - | - | - | - | - | - | |||||||||||||||||||||||||
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS |
$ | 91 | $ | 44 | $ | 91 | $ | 31 | $ | 68 | $ | 91 | $ | 68 | ||||||||||||||||||
Reconciliation to Net Income (Loss) and Financial Statement Line Item Adjustments from GAAP |
||||||||||||||||||||||||||||||||
Operating earnings |
$ | 91 | $ | 44 | $ | 91 | $ | 31 | $ | 68 | $ | 91 | $ | 68 | ||||||||||||||||||
Adjustments from operating earnings to income (loss) from continuing operations: |
||||||||||||||||||||||||||||||||
Net investment gains (losses) |
1 | 11 | 5 | 5 | 4 | 1 | 4 | |||||||||||||||||||||||||
Net derivative gains (losses) |
1 | (5 | ) | 2 | 4 | (1 | ) | 1 | (1 | ) | ||||||||||||||||||||||
Premiums |
- | - | - | - | - | - | - | |||||||||||||||||||||||||
Universal life and investment-type product policy fees |
- | - | - | - | - | - | - | |||||||||||||||||||||||||
Net investment income |
- | - | - | - | - | - | - | |||||||||||||||||||||||||
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 |
- | - | - | - | - | - | - | |||||||||||||||||||||||||
Goodwill impairment |
- | - | - | - | - | - | - | |||||||||||||||||||||||||
Provision for income tax (expense) benefit |
(1 | ) | (2 | ) | (3 | ) | (3 | ) | (1 | ) | (1 | ) | (1 | ) | ||||||||||||||||||
Income (loss) from continuing operations, net of income tax |
92 | 48 | 95 | 37 | 70 | 92 | 70 | |||||||||||||||||||||||||
Income (loss) from discontinued operations, net of income tax |
- | - | - | - | - | - | - | |||||||||||||||||||||||||
Net income (loss) |
92 | 48 | 95 | 37 | 70 | 92 | 70 | |||||||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interests |
- | - | - | - | - | - | - | |||||||||||||||||||||||||
Net income (loss) attributable to MetLife, Inc. |
92 | 48 | 95 | 37 | 70 | 92 | 70 | |||||||||||||||||||||||||
Less: Preferred stock dividends |
- | - | - | - | - | - | - | |||||||||||||||||||||||||
Net income (loss) available to MetLife, Inc.s common shareholders |
$ | 92 | $ | 48 | $ | 95 | $ | 37 | $ | 70 | $ | 92 | $ | 70 | ||||||||||||||||||
Total Operating Premiums, Fees and Other Revenues |
$ | 761 | $ | 778 | $ | 780 | $ | 790 | $ | 786 | $ | 761 | $ | 786 | ||||||||||||||||||
(1) Represents the operating earnings of total property & casualty, which is a combination of retail property & casualty and group property & casualty. This does not represent a reported segment as defined by MetLife, Inc. |
|
A-2
RETAIL PROPERTY & CASUALTY (1) STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
|
||||||||||||||||||||||||||||||||
For the Three Months Ended | For the Year-to-Date Period Ended | |||||||||||||||||||||||||||||||
Unaudited (In millions) | March 31, 2012 | June 30, 2012 | September 30, 2012 | December 31, 2012 | March 31, 2013 | March 31, 2012 | March 31, 2013 | |||||||||||||||||||||||||
OPERATING REVENUES |
||||||||||||||||||||||||||||||||
Premiums |
$ | 414 | $ | 417 | $ | 420 | $ | 429 | $ | 425 | $ | 414 | $ | 425 | ||||||||||||||||||
Universal life and investment-type product policy fees |
- | - | - | - | - | - | - | |||||||||||||||||||||||||
Net investment income |
30 | 30 | 29 | 27 | 21 | 30 | 21 | |||||||||||||||||||||||||
Other revenues |
4 | 4 | 4 | 4 | 4 | 4 | 4 | |||||||||||||||||||||||||
Total operating revenues |
448 | 451 | 453 | 460 | 450 | 448 | 450 | |||||||||||||||||||||||||
OPERATING EXPENSES |
||||||||||||||||||||||||||||||||
Policyholder benefits and claims and policyholder dividends |
266 | 323 | 283 | 314 | 286 | 266 | 286 | |||||||||||||||||||||||||
Interest credited to policyholder account balances |
- | - | - | - | - | - | - | |||||||||||||||||||||||||
Capitalization of DAC |
(61 | ) | (67 | ) | (65 | ) | (67 | ) | (64 | ) | (61 | ) | (64 | ) | ||||||||||||||||||
Amortization of DAC and VOBA |
64 | 62 | 63 | 65 | 65 | 64 | 65 | |||||||||||||||||||||||||
Amortization of negative VOBA |
- | - | - | - | - | - | - | |||||||||||||||||||||||||
Interest expense on debt |
- | - | - | - | - | - | - | |||||||||||||||||||||||||
Other expenses |
110 | 122 | 119 | 120 | 116 | 110 | 116 | |||||||||||||||||||||||||
Total operating expenses |
379 | 440 | 400 | 432 | 403 | 379 | 403 | |||||||||||||||||||||||||
Operating earnings before provision for income tax |
69 | 11 | 53 | 28 | 47 | 69 | 47 | |||||||||||||||||||||||||
Provision for income tax expense (benefit) |
15 | (2 | ) | 11 | 2 | 9 | 15 | 9 | ||||||||||||||||||||||||
Operating earnings |
54 | 13 | 42 | 26 | 38 | 54 | 38 | |||||||||||||||||||||||||
Preferred stock dividends |
- | - | - | - | - | - | - | |||||||||||||||||||||||||
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS |
$ | 54 | $ | 13 | $ | 42 | $ | 26 | $ | 38 | $ | 54 | $ | 38 | ||||||||||||||||||
Reconciliation to Net Income (Loss) and Financial Statement Line Item Adjustments from GAAP |
||||||||||||||||||||||||||||||||
Operating earnings |
$ | 54 | $ | 13 | $ | 42 | $ | 26 | $ | 38 | $ | 54 | $ | 38 | ||||||||||||||||||
Adjustments from operating earnings to income (loss) from continuing operations: |
||||||||||||||||||||||||||||||||
Net investment gains (losses) |
1 | 6 | 3 | 2 | 2 | 1 | 2 | |||||||||||||||||||||||||
Net derivative gains (losses) |
1 | (3 | ) | 1 | 2 | (1 | ) | 1 | (1 | ) | ||||||||||||||||||||||
Premiums |
- | - | - | - | - | - | - | |||||||||||||||||||||||||
Universal life and investment-type product policy fees |
- | - | - | - | - | - | - | |||||||||||||||||||||||||
Net investment income |
- | - | - | - | - | - | - | |||||||||||||||||||||||||
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 |
- | - | - | - | - | - | - | |||||||||||||||||||||||||
Goodwill impairment |
- | - | - | - | - | - | - | |||||||||||||||||||||||||
Provision for income tax (expense) benefit |
(1 | ) | (1 | ) | (2 | ) | (1 | ) | - | (1 | ) | - | ||||||||||||||||||||
Income (loss) from continuing operations, net of income tax |
55 | 15 | 44 | 29 | 39 | 55 | 39 | |||||||||||||||||||||||||
Income (loss) from discontinued operations, net of income tax |
- | - | - | - | - | - | - | |||||||||||||||||||||||||
Net income (loss) |
55 | 15 | 44 | 29 | 39 | 55 | 39 | |||||||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interests |
- | - | - | - | - | - | - | |||||||||||||||||||||||||
Net income (loss) attributable to MetLife, Inc. |
55 | 15 | 44 | 29 | 39 | 55 | 39 | |||||||||||||||||||||||||
Less: Preferred stock dividends |
- | - | - | - | - | - | - | |||||||||||||||||||||||||
Net income (loss) available to MetLife, Inc.s common shareholders |
$ | 55 | $ | 15 | $ | 44 | $ | 29 | $ | 39 | $ | 55 | $ | 39 | ||||||||||||||||||
Total Operating Premiums, Fees and Other Revenues |
$ | 418 | $ | 421 | $ | 424 | $ | 433 | $ | 429 | $ | 418 | $ | 429 | ||||||||||||||||||
(1) Represents the operating earnings of retail property & casualty, as reported in the Retail segment. |
|
A-3
GROUP PROPERTY & CASUALTY (1) STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
|
||||||||||||||||||||||||||||||||
For the Three Months Ended | For the Year-to-Date Period Ended | |||||||||||||||||||||||||||||||
Unaudited (In millions) | March 31, 2012 | June 30, 2012 | September 30, 2012 | December 31, 2012 | March 31, 2013 | March 31, 2012 | March 31, 2013 | |||||||||||||||||||||||||
OPERATING REVENUES |
||||||||||||||||||||||||||||||||
Premiums |
$ | 339 | $ | 344 | $ | 352 | $ | 354 | $ | 355 | $ | 339 | $ | 355 | ||||||||||||||||||
Universal life and investment-type product policy fees |
- | - | - | - | - | - | - | |||||||||||||||||||||||||
Net investment income |
23 | 21 | 22 | 21 | 17 | 23 | 17 | |||||||||||||||||||||||||
Other revenues |
4 | 13 | 4 | 3 | 2 | 4 | 2 | |||||||||||||||||||||||||
Total operating revenues |
366 | 378 | 378 | 378 | 374 | 366 | 374 | |||||||||||||||||||||||||
OPERATING EXPENSES |
||||||||||||||||||||||||||||||||
Policyholder benefits and claims and policyholder dividends |
237 | 261 | 232 | 295 | 243 | 237 | 243 | |||||||||||||||||||||||||
Interest credited to policyholder account balances |
- | - | - | - | - | - | - | |||||||||||||||||||||||||
Capitalization of DAC |
(25 | ) | (27 | ) | (33 | ) | (29 | ) | (28 | ) | (25 | ) | (28 | ) | ||||||||||||||||||
Amortization of DAC and VOBA |
23 | 25 | 27 | 29 | 28 | 23 | 28 | |||||||||||||||||||||||||
Amortization of negative VOBA |
- | - | - | - | - | - | - | |||||||||||||||||||||||||
Interest expense on debt |
- | - | - | - | - | - | - | |||||||||||||||||||||||||
Other expenses |
81 | 83 | 84 | 85 | 92 | 81 | 92 | |||||||||||||||||||||||||
Total operating expenses |
316 | 342 | 310 | 380 | 335 | 316 | 335 | |||||||||||||||||||||||||
Operating earnings before provision for income tax |
50 | 36 | 68 | (2 | ) | 39 | 50 | 39 | ||||||||||||||||||||||||
Provision for income tax expense (benefit) |
13 | 5 | 19 | (7 | ) | 9 | 13 | 9 | ||||||||||||||||||||||||
Operating earnings |
37 | 31 | 49 | 5 | 30 | 37 | 30 | |||||||||||||||||||||||||
Preferred stock dividends |
- | - | - | - | - | - | - | |||||||||||||||||||||||||
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS |
$ | 37 | $ | 31 | $ | 49 | $ | 5 | $ | 30 | $ | 37 | $ | 30 | ||||||||||||||||||
Reconciliation to Net Income (Loss) and Financial Statement Line Item Adjustments from GAAP |
||||||||||||||||||||||||||||||||
Operating earnings |
$ | 37 | $ | 31 | $ | 49 | $ | 5 | $ | 30 | $ | 37 | $ | 30 | ||||||||||||||||||
Adjustments from operating earnings to income (loss) from continuing operations: |
||||||||||||||||||||||||||||||||
Net investment gains (losses) |
- | 5 | 2 | 3 | 2 | - | 2 | |||||||||||||||||||||||||
Net derivative gains (losses) |
- | (2 | ) | 1 | 2 | - | - | - | ||||||||||||||||||||||||
Premiums |
- | - | - | - | - | - | - | |||||||||||||||||||||||||
Universal life and investment-type product policy fees |
- | - | - | - | - | - | - | |||||||||||||||||||||||||
Net investment income |
- | - | - | - | - | - | - | |||||||||||||||||||||||||
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 |
- | - | - | - | - | - | - | |||||||||||||||||||||||||
Goodwill impairment |
- | - | - | - | - | - | - | |||||||||||||||||||||||||
Provision for income tax (expense) benefit |
- | (1 | ) | (1 | ) | (2 | ) | (1 | ) | - | (1 | ) | ||||||||||||||||||||
Income (loss) from continuing operations, net of income tax |
37 | 33 | 51 | 8 | 31 | 37 | 31 | |||||||||||||||||||||||||
Income (loss) from discontinued operations, net of income tax |
- | - | - | - | - | - | - | |||||||||||||||||||||||||
Net income (loss) |
37 | 33 | 51 | 8 | 31 | 37 | 31 | |||||||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interests |
- | - | - | - | - | - | - | |||||||||||||||||||||||||
Net income (loss) attributable to MetLife, Inc. |
37 | 33 | 51 | 8 | 31 | 37 | 31 | |||||||||||||||||||||||||
Less: Preferred stock dividends |
- | - | - | - | - | - | - | |||||||||||||||||||||||||
Net income (loss) available to MetLife, Inc.s common shareholders |
$ | 37 | $ | 33 | $ | 51 | $ | 8 | $ | 31 | $ | 37 | $ | 31 | ||||||||||||||||||
Total Operating Premiums, Fees and Other Revenues |
$ | 343 | $ | 357 | $ | 356 | $ | 357 | $ | 357 | $ | 343 | $ | 357 | ||||||||||||||||||
(1) Represents the operating earnings of group property & casualty, as reported in the Group, Voluntary & Worksite Benefits and Latin America segments. |
|
A-4
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