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