MetLife, Inc. (NYSE: MET) today announced its results for the
second quarter ended June 30, 2019.
Second Quarter Results Summary
- Net income of $1.7 billion, or $1.77 per share, compared to net
income of $845 million, or $0.83 per share, in the second quarter
of 2018.
- Adjusted earnings of $1.3 billion, or $1.38 per share, compared
to adjusted earnings of $1.3 billion, or $1.30 per share in the
second quarter of 2018.
- Book value of $64.61 per share, up 29 percent from $50.28 per
share at June 30, 2018.
- Book value, excluding accumulated other comprehensive income
(AOCI) other than foreign currency translation adjustments (FCTA),
of $47.09 per share, up 10 percent from $42.76 per share at June
30, 2018.
- Return on equity (ROE) of 11.6 percent.
- Adjusted ROE, excluding AOCI other than FCTA, of 12.1
percent.
“MetLife had another strong quarter driven by business growth,
favorable underwriting and expense discipline. During the first
half of 2019, we returned approximately $2 billion to shareholders
through common stock repurchases and dividends,” said Michel
Khalaf, president and CEO of MetLife, Inc. “Overall, our results
highlight the strength of our diverse businesses and our focus on
consistently executing for our customers and shareholders.”
Second Quarter 2019 Summary
($ in millions, except per share data)
Three months ended June
30,
2019
2018
Change
Premiums, fees and other revenues
$12,019
$16,998
(29)%
Net investment income
4,693
4,473
5%
Net investment gains (losses)
61
(227)
Net derivative gains (losses)
724
(59)
Total revenues
$17,497
$21,185
(17)%
Total adjusted revenues
$16,454
$21,216
(22)%
Adjusted premiums, fees and other
revenues
$11,900
$16,889
(30)%
Adjusted premiums, fees and other
revenues, excluding pension risk transfer (PRT)
$11,344
$10,937
4%
Net income (loss)
$1,684
$845
99%
Net income (loss) per share
$1.77
$0.83
113%
Adjusted earnings
$1,319
$1,326
(1)%
Adjusted earnings per share
$1.38
$1.30
6%
Book value per share
$64.61
$50.28
29%
Book value per share, excluding AOCI other
than FCTA
$47.09
$42.76
10%
Expense ratio
20.3%
14.6%
Direct expense ratio, excluding total
notable items related to direct expenses and PRT
12.3%
13.0%
Adjusted expense ratio, excluding total
notable items related to other expenses and PRT
20.0%
20.7%
ROE
11.6%
6.5%
ROE, excluding AOCI other than FCTA
15.4%
7.8%
Adjusted ROE, excluding AOCI other than
FCTA
12.1%
12.2%
MetLife reported second quarter 2019 premiums, fees and other
revenues of $12.0 billion, down 29 percent over the second quarter
of 2018. Adjusted premiums, fees and other revenues were $11.9
billion, down 30 percent, and 29 percent on a constant currency
basis over the prior-year period. Excluding pension risk transfers,
adjusted premiums, fees and other revenues were $11.3 billion, up 4
percent, and 5 percent on a constant currency basis.
Net investment income was $4.7 billion, up 5 percent, driven by
higher variable investment income and asset growth. On an adjusted
basis, net investment income was $4.6 billion, up 5 percent.
Net derivative gains amounted to $724 million, or $572 million
after tax during the quarter.
Net income was $1.7 billion, compared to net income of $845
million in the second quarter of 2018. On a per share basis, net
income was $1.77, compared to net income of $0.83 in the prior-year
period.
MetLife reported adjusted earnings of $1.3 billion, down 1
percent, and up 2 percent on a constant currency basis. On a per
share basis, which includes the impact of share repurchases,
adjusted earnings were $1.38, up 6 percent from the prior-year
period.
Information regarding the non-GAAP and other financial measures
included in this news release and reconciliation of the non-GAAP
financial measures to GAAP measures are in “Non-GAAP and Other
Financial Disclosures” below and in the tables that accompany this
news release.
Supplemental slides for the second quarter of 2019, titled "2Q19
Supplemental Slides," are available on the MetLife Investor
Relations website at www.metlife.com
and in the Form 8-K furnished by MetLife to the U.S. Securities and
Exchange Commission in connection with this earnings news
release.
Adjusted Earnings by Segment Summary*
Three months ended
June 30, 2019
Segment
Change from
prior-year period
Change from
prior-year period
(on a constant
currency basis)
U.S.
9%
Asia
(1)%
2%
Latin America
10%
18%
Europe, the Middle East and Africa
(EMEA)
(10)%
—%
MetLife Holdings
7%
*The percentages in this table are on a reported and constant
currency basis, and do not exclude notable items.
Business Discussions
All comparisons of the results for the second quarter of 2019 in
the business discussions that follow are with the second quarter of
2018, unless otherwise noted. See the second quarter of 2019
notable items table that follows the Business Discussions section
of this release for additional information on notable items
incurred in the second quarter of 2019.
U.S.
($ in millions)
Three months ended June 30,
2019
Three months ended June 30,
2018
Change
Adjusted earnings
$732
$671
9%
Adjusted premiums, fees and other
revenues
$6,731
$11,767
(43)%
Adjusted premiums, fees and other
revenues, excluding PRT
$6,175
$5,815
6%
Notable item(s)
$0
$0
- Adjusted earnings for the U.S. were $732 million, up 9
percent, driven by volume growth, lower expenses and favorable
underwriting.
- Adjusted return on allocated equity was 27.3 percent,
and adjusted return on allocated tangible equity was 31.0
percent.
- Adjusted premiums, fees and other revenues were $6.7
billion, down 43 percent, primarily due to a large pension risk
transfer transaction in the prior-year period.
- Excluding pension risk transfers, adjusted premiums, fees
and other revenues were $6.2 billion, up 6 percent
Group Benefits
($ in millions)
Three months ended June 30,
2019
Three months ended June 30,
2018
Change
Adjusted earnings
$311
$261
19%
Adjusted premiums, fees and other
revenues
$4,594
$4,378
5%
Notable item(s)
$0
$0
- Adjusted earnings for Group Benefits were $311 million,
up 19 percent, driven by favorable volume growth and expense
margin.
- Adjusted premiums, fees and other revenues were $4.6
billion, up 5 percent, driven by strong growth in voluntary
products.
- Sales for Group Benefits were up 12 percent year-to-date
compared to the first half of 2018.
Retirement and Income Solutions
($ in millions)
Three months ended June 30,
2019
Three months ended June 30,
2018
Change
Adjusted earnings
$351
$347
1%
Adjusted premiums, fees and other
revenues
$1,220
$6,492
(81)%
Adjusted premiums, fees and other
revenues, excluding PRT
$664
$540
23%
Notable item(s)
$0
$0
- Adjusted earnings for Retirement and Income Solutions
were $351 million, up 1 percent as favorable variable investment
income, underwriting and volume growth were partially offset by
lower recurring investment margins.
- Adjusted premiums, fees and other revenues were $1.2
billion, down 81 percent, primarily due to a large pension risk
transfer transaction in the prior-year period.
- Excluding pension risk transfers, adjusted premiums, fees
and other revenues were $664 million, up 23 percent, driven by
higher sales in structured settlements.
Property & Casualty
($ in millions)
Three months ended June 30,
2019
Three months ended June 30,
2018
Change
Adjusted earnings
$70
$63
11%
Adjusted premiums, fees and other
revenues
$917
$897
2%
Notable item(s)
$0
$0
- Adjusted earnings for Property & Casualty were $70
million, up 11 percent, driven by favorable underwriting.
- Adjusted premiums, fees and other revenuers $917
million, up 2 percent.
- Pre-tax catastrophe losses and prior year development
totaled $73 million, compared to $104 million in the prior-year
period.
- Sales for Property & Casualty were $162 million, up
3 percent.
ASIA
($ in millions)
Three months ended June 30,
2019
Three months ended June 30,
2018
Change
Adjusted earnings
$359
$363
(1)%
Adjusted earnings (constant currency)
$359
$352
2%
Adjusted premiums, fees and other
revenues
$2,063
$2,066
—%
Notable item(s)
$0
$0
- Adjusted earnings for Asia were $359 million, down 1
percent, and up 2 percent on a constant currency basis, as volume
growth was partially offset by less favorable underwriting.
- Adjusted return on allocated equity was 10.1 percent,
and adjusted return on allocated tangible equity was 15.3
percent.
- Adjusted premiums, fees and other revenues were $2.1
billion, flat compared to the prior-year period, and up 2 percent
on a constant currency basis.
- Sales for Asia were $605 million, down 10 percent on a
constant currency basis. Japan sales were down 12 percent,
primarily driven by lower sales of foreign currency-denominated
annuity products, partially offset by higher accident & health
product sales. Other Asia sales were down 5 percent, as sales
growth in China and India was more than offset by Korea.
LATIN AMERICA
($ in millions)
Three months ended June 30,
2019
Three months ended June 30,
2018
Change
Adjusted earnings
$159
$145
10%
Adjusted earnings (constant currency)
$159
$135
18%
Adjusted premiums, fees and other
revenues
$1,064
$972
9%
Notable item(s)
$0
$0
- Adjusted earnings for Latin America were $159 million,
up 10 percent, and up 18 percent on a constant currency basis,
driven by capital markets and volume growth.
- Adjusted return on allocated equity was 21.5 percent,
and adjusted return on allocated tangible equity was 35.5
percent.
- Adjusted premiums, fees and other revenuers $1.1
billion, up 9 percent, and up 15 percent on a constant currency
basis, primarily driven by higher annuity sales in Chile.
- Sales for Latin America were $230 million, up 14 percent
on a constant currency basis, driven by higher sales in Chile and
Mexico and by a large group sale in Brazil.
EMEA
($ in millions)
Three months ended June 30,
2019
Three months ended June 30,
2018
Change
Adjusted earnings
$77
$86
(10)%
Adjusted earnings (constant currency)
$77
$77
—%
Adjusted premiums, fees and other
revenues
$669
$673
(1)%
Notable item(s)
$0
$0
- Adjusted earnings for EMEA were $77 million, down 10
percent, and unchanged on a constant currency basis, as investment
margins, favorable underwriting, and volume growth were offset by
the impact of favorable expense margins in the prior-year
period.
- Adjusted return on allocated equity was 11.0 percent,
and adjusted return on allocated tangible equity was 19.8
percent.
- Adjusted premiums, fees and other revenuers $669
million, down 1 percent, and up 5 percent on a constant currency
basis.
- Sales for EMEA were $223 million, up 6 percent on a
constant currency basis, primarily due to higher volumes in the
United Kingdom, Egypt and Turkey.
METLIFE HOLDINGS
($ in millions)
Three months ended June 30,
2019
Three months ended June 30,
2018
Change
Adjusted earnings
$299
$280
7%
Adjusted premiums, fees and other
revenues
$1,275
$1,326
(4)%
Notable item(s)
$0
$0
- Adjusted earnings for MetLife Holdings were $299
million, up 7 percent, due to lower expenses and favorable variable
investment income, partially offset by lower life insurance
underwriting results.
- Adjusted return on allocated equity was 12.5
percent, and adjusted return on allocated tangible equity was 14.0
percent.
- Adjusted premiums, fees and other revenues were
$1.3 billion, down 4 percent.
CORPORATE & OTHER
($ in millions)
Three months ended June 30,
2019
Three months ended June 30,
2018
Change
Adjusted earnings
$(307)
$(219)
Notable item(s)
$(70)
$(62)
- Corporate & Other had an adjusted loss of $307
million, compared to an adjusted loss of $219 million in the second
quarter of 2018. The notable item in both periods is related to the
company's previously announced cost saving initiative.
- Excluding notable items from both periods, adjusted loss
increased by $80 million.
INVESTMENTS
($ in millions)
Three months ended June 30,
2019
Three months ended June 30,
2018
Change
Net investment income (as reported on an
adjusted basis)
$4,554
$4,327
5%
- As reported on an adjusted basis, net investment income
was $4.6 billion, up 5 percent. Variable investment income was $334
million ($264 million, after tax), as compared to $176 million
($139 million, after tax) in the second quarter of 2018, driven by
higher private equity and prepayment income.
SECOND QUARTER 2019 NOTABLE ITEMS
($ in millions)
Adjusted Earnings
Three months ended June 30,
2019
Notable Items
U.S.
Asia
Latin
America
EMEA
MetLife
Holdings
Corporate
&
Other
Total
Group Benefits
Retirement and Income
Solutions
Property &
Casualty
Expense initiative costs
$(70)
$(70)
Total notable items
$0
$0
$0
$0
$0
$0
$0
$(70)
$(70)
About MetLife
MetLife, Inc. (NYSE: MET), through its subsidiaries and
affiliates (MetLife), is one of the world's leading financial
services companies, providing insurance, annuities, employee
benefits and asset management to help its individual and
institutional customers navigate their changing world. Founded in
1868, MetLife has operations in more than 40 countries and holds
leading market positions in the United States, Japan, Latin
America, Asia, Europe and the Middle East. For more information,
visit www.metlife.com.
Conference Call
MetLife will hold its second quarter 2019 earnings conference
call and audio webcast on Thursday, August 1, 2019, from 9-10 a.m.
(ET). The conference call will be available live via telephone and
the internet. To listen via telephone, dial 800-230-1085 (U.S.) or
612-288-0340 (outside the U.S.). To listen to the conference call
via the internet, visit www.metlife.com through a link on the Investor
Relations page. Those who want to listen to the call via telephone
or the internet should dial in or go to the website at least 15
minutes prior to the call to register, and/or download and install
any necessary audio software.
The conference call will be available for replay via telephone
and the internet beginning at 11 a.m. (ET) on Thursday, August 1,
2019, until Thursday, August 8, 2019, at 11:59 p.m. (ET). To listen
to a replay of the conference call via telephone, dial 800-475-6701
(U.S.) or 320-365-3844 (outside the U.S.). The access code for the
replay is 462462. To access the replay of the conference call over
the internet, visit the above-mentioned website.
Non-GAAP and Other Financial
Disclosures
Any references in this news release
(except in this section and the tables that accompany this release)
to:
should be read as,
respectively:
(i)
net income (loss);
(i)
net income (loss) available to MetLife,
Inc.’s common shareholders;
(ii)
net income (loss) per share;
(ii)
net income (loss) available to MetLife,
Inc.’s common shareholders per diluted common share;
(iii)
adjusted earnings;
(iii)
adjusted earnings available to common
shareholders;
(iv)
adjusted earnings per share;
(iv)
adjusted earnings available to common
shareholders per diluted common share;
(v)
book value per share;
(v)
book value per common share;
(vi)
book value per share, excluding AOCI other
than FCTA;
(vi)
book value per common share, excluding
AOCI other than FCTA;
(vii)
book value per share-tangible common
stockholders’ equity;
(vii)
book value per common share-tangible
common stockholders’ equity;
(viii)
premiums, fees and other revenues;
(viii)
premiums, fees and other revenues
(adjusted);
(ix)
return on equity;
(ix)
return on MetLife, Inc.’s common
stockholders’ equity;
(x)
return on equity, excluding AOCI other
than FCTA;
(x)
return on MetLife, Inc.’s common
stockholders’ equity, excluding AOCI, other than FCTA;
(xi)
adjusted return on equity, excluding AOCI
other than FCTA;
(xi)
adjusted return on MetLife, Inc.’s common
stockholders’ equity, excluding AOCI other than FCTA;
(xii)
tangible return on equity; and
(xii)
return on MetLife, Inc.’s tangible common
stockholders' equity; and
(xiii)
adjusted tangible return on equity.
(xiii)
adjusted return on MetLife, Inc.’s
tangible common stockholders’ equity.
In this news release, MetLife presents certain measures of its
performance on a consolidated and segment basis that are not
calculated in accordance with accounting principles generally
accepted in the United States of America (GAAP). MetLife believes
that these non-GAAP financial measures enhance the understanding of
MetLife’s performance by highlighting the results of operations and
the underlying profitability drivers of the business.
Segment-specific financial measures are calculated using only the
portion of consolidated results attributable to that specific
segment.
The following non-GAAP financial measures should not be viewed
as substitutes for the most directly comparable financial measures
calculated in accordance with GAAP:
Non-GAAP financial measures:
Comparable GAAP financial
measures:
(i)
total adjusted revenues;
(i)
total revenues;
(ii)
total adjusted expenses;
(ii)
total expenses;
(iii)
adjusted premiums, fees and other
revenues;
(iii)
premiums, fees and other revenues;
(iv)
adjusted premiums, fees and other
revenues, excluding pension risk transfer;
(iv)
premiums, fees and other revenues;
(v)
adjusted earnings;
(v)
income (loss) from continuing operations,
net of income tax;
(vi)
net investment income, as reported on an
adjusted basis;
(vi)
net investment income
(vii)
capitalization of deferred policy
acquisition costs (DAC), as reported on an adjusted basis;
(vii)
capitalization of DAC
(viii)
other expenses, as reported on an adjusted
basis;
(viii)
other expenses
(ix)
adjusted earnings available to common
shareholders;
(ix)
net income (loss) available to MetLife,
Inc.’s common shareholders;
(x)
adjusted earnings available to common
shareholders, excluding total notable items;
(x)
net income (loss) available to MetLife,
Inc.’s common shareholders;
(xi)
adjusted earnings available to common
shareholders per diluted common share;
(xi)
net income (loss) available to MetLife,
Inc.’s common shareholders per diluted common share;
(xii)
adjusted earnings available to common
shareholders, excluding total notable items, per diluted common
share;
(xii)
net income (loss) available to MetLife,
Inc.’s common shareholders per diluted common share;
(xiii)
adjusted return on equity;
(xiii)
return on equity;
(xiv)
adjusted return on equity, excluding AOCI
other than FCTA;
(xiv)
return on equity;
(xv)
adjusted tangible return on equity;
(xv)
return on equity;
(xvi)
investment portfolio gains (losses);
(xvi)
net investment gains (losses);
(xvii)
derivative gains (losses);
(xvii)
net derivative gains (losses);
(xviii)
total MetLife, Inc.’s tangible common
stockholders’ equity;
(xviii)
total MetLife, Inc.’s stockholders’
equity;
(xix)
total MetLife, Inc.’s tangible common
stockholders’ equity, excluding total notable items;
(xix)
total MetLife, Inc.’s stockholders’
equity;
(xx)
total MetLife, Inc.’s common stockholders’
equity, excluding AOCI other than FCTA;
(xx)
total MetLife, Inc.’s stockholders’
equity;
(xxi)
total MetLife, Inc.’s common stockholders’
equity, excluding total notable items (excludes AOCI other than
FCTA);
(xxi)
total MetLife, Inc.’s stockholders’
equity;
(xxii)
book value per common share, excluding
AOCI other than FCTA;
(xxii)
book value per common share
(xxiii)
book value per common share - tangible
common stockholders' equity;
(xxiii)
book value per common share
(xxiv)
free cash flow of all holding
companies;
(xxiv)
MetLife, Inc. (parent company only) net
cash provided by (used in) operating activities;
(xxv)
adjusted expense ratio;
(xxv)
expense ratio;
(xxvi)
adjusted expense ratio, excluding total
notable items related to other expenses and PRT;
(xxvi)
expense ratio;
(xxvii)
direct expense ratio; and
(xxvii)
expense ratio; and
(xxviii)
direct expense ratio, excluding total
notable items related to direct expenses and PRT.
(xxviii)
expense ratio.
Any of these financial measures shown on a constant currency
basis reflect the impact of changes in foreign currency exchange
rates and are calculated using the average foreign currency
exchange rates for the most recent period and applied to the
comparable prior period.
Reconciliations of these non-GAAP financial measures to the most
directly comparable GAAP financial measures are included in this
earnings news release and in this period’s quarterly financial
supplement, which is available at www.metlife.com.
MetLife’s definitions of the various non-GAAP and other
financial measures discussed in this news release may differ from
those used by other companies:
Adjusted earnings and related measures
- adjusted earnings;
- adjusted earnings available to common shareholders;
- adjusted earnings available to common shareholders on a
constant currency basis;
- adjusted earnings available to common shareholders, excluding
total notable items;
- adjusted earnings available to common shareholders, excluding
total notable items, on a constant currency basis;
- adjusted earnings available to common shareholders per diluted
common share;
- adjusted earnings available to common shareholders on a
constant currency basis per diluted common share;
- adjusted earnings available to common shareholders, excluding
total notable items per diluted common share; and
- adjusted earnings available to common shareholders, excluding
total notable items, on a constant currency basis per diluted
common share.
These measures are used by management to evaluate performance
and allocate resources. Consistent with GAAP guidance for segment
reporting, adjusted earnings and components of, or other financial
measures based on adjusted earnings are also MetLife’s GAAP measure
of segment performance. Adjusted earnings and other financial
measures based on adjusted earnings are also the measures by which
MetLife senior management’s and many other employees’ performance
is evaluated for the purposes of determining their compensation
under applicable compensation plans. Adjusted earnings and other
financial measures based on adjusted earnings allow analysis of
MetLife's performance relative to its Business Plan and facilitate
comparisons to industry results.
Adjusted earnings is defined as adjusted revenues less adjusted
expenses, net of income tax. Adjusted loss is defined as negative
adjusted earnings. Adjusted earnings available to common
shareholders is defined as adjusted earnings less preferred stock
dividends.
Adjusted revenues and adjusted expenses
These financial measures, along with the related adjusted
premiums, fees and other revenues, focus on our primary businesses
principally by excluding the impact of market volatility, which
could distort trends, and revenues and costs related to non-core
products and certain entities required to be consolidated under
GAAP. Also, these measures exclude results of discontinued
operations under GAAP and other businesses that have been or will
be sold or exited by MetLife but do not meet the discontinued
operations criteria under GAAP and are referred to as divested
businesses. Divested businesses also includes the net impact of
transactions with exited businesses that have been eliminated in
consolidation under GAAP and costs relating to businesses that have
been or will be sold or exited by MetLife that do not meet the
criteria to be included in results of discontinued operations under
GAAP.
Adjusted revenues also excludes net investment gains (losses)
(NIGL) and net derivative gains (losses) (NDGL). Adjusted expenses
also excludes goodwill impairments.
The following additional adjustments are made to revenues, in
the line items indicated, in calculating adjusted 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 adjustments for earned
income on derivatives and amortization of premium on derivatives
that are hedges of investments or that are used to replicate
certain investments but do not qualify for hedge accounting
treatment (Investment hedge adjustments),(ii) excludes post-tax
adjusted earnings adjustments relating to insurance joint ventures
accounted for under the equity method (Operating joint venture
adjustments), (iii) excludes certain amounts related to
contractholder-directed equity securities (Unit-linked contract
income), (iv) excludes certain amounts related to securitization
entities that are variable interest entities (VIEs) consolidated
under GAAP (Securitization entities income); and (v) includes
distributions of profits from certain other limited partnership
interests that were previously accounted for under the cost method,
but are now accounted for at estimated fair value, where the change
in estimated fair value is recognized in NIGL under GAAP (Certain
partnership distributions); and
- Other revenues is adjusted for settlements of foreign currency
earnings hedges and excludes fees received in association with
services provided under transition service agreements (TSA
fees).
The following additional adjustments are made to expenses, in
the line items indicated, in calculating adjusted 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 and other pass-through
adjustments (Inflation 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 earned income on derivatives 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 certain amounts related to net
investment income earned on contractholder-directed equity
securities (Unit-linked contract costs);
- 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
(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, integration and other costs. Other expenses includes
TSA fees.
Adjusted 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.
The tax impact of the adjustments mentioned above are calculated
net of the U.S. or foreign statutory tax rate, which could differ
from MetLife’s effective tax rate. Additionally, the provision for
income tax (expense) benefit also includes the impact related to
the timing of certain tax credits, as well as certain tax
reforms.
Investment portfolio gains (losses) and derivative gains
(losses)
These are measures of investment and hedging activity.
Investment portfolio gains (losses) principally excludes amounts
that are reported within net investment gains (losses) but do not
relate to the performance of the investment portfolio, such as
gains (losses) on sales and divestitures of businesses, goodwill
impairment or changes in estimated fair value. Derivative gains
(losses) principally excludes earned income on derivatives and
amortization of premium on derivatives, where such derivatives are
either hedges of investments or are used to replicate certain
investments, and where such derivatives do not qualify for hedge
accounting. This earned income and amortization of premium is
reported within adjusted earnings and not within derivative gains
(losses).
Return on equity, allocated equity, tangible equity and
related measures
- Total MetLife, Inc.’s common stockholders’ equity, excluding
AOCI other than FCTA: total MetLife, Inc.’s common stockholders’
equity, excluding the net unrealized investment gains (losses) and
defined benefit plans adjustment components of AOCI, net of income
tax.
- Total MetLife, Inc.’s common stockholders’ equity, excluding
total notable items (excludes AOCI other than FCTA): total MetLife,
Inc.’s common stockholders’ equity, excluding the net unrealized
investment gains (losses), defined benefit plans adjustment
components of AOCI and total notable items, net of income tax.
- Return on MetLife, Inc.’s common stockholders’ equity: net
income (loss) available to MetLife, Inc.’s common shareholders
divided by MetLife, Inc.’s average common stockholders’
equity.
- Return on MetLife, Inc.'s common stockholders' equity,
excluding AOCI other than FCTA: net income (loss) available to
MetLife, Inc.’s common shareholders divided by MetLife, Inc.'s
average common stockholders' equity, excluding AOCI other than
FCTA.
- Adjusted return on MetLife, Inc.'s common stockholders' equity:
adjusted earnings available to common shareholders divided by
MetLife, Inc.'s average common stockholders' equity.
- Adjusted return on MetLife, Inc.'s common stockholders' equity,
excluding AOCI other than FCTA: adjusted earnings available to
common shareholders divided by MetLife, Inc.'s average common
stockholders' equity, excluding AOCI other than FCTA.
- Allocated equity: portion of MetLife, Inc.’s common
stockholders’ equity that management allocates to each of its
segments and sub-segments based on local capital requirements and
economic capital. Economic capital is an internally developed risk
capital model, the purpose of which is to measure the risk in the
business and to provide a basis upon which capital is deployed.
MetLife management periodically reviews this model to ensure that
it remains consistent with emerging industry practice standards and
the local capital requirements; allocated equity may be adjusted if
warranted by such review. Allocated equity excludes the impact of
AOCI other than FCTA.
- Adjusted return on allocated equity: adjusted earnings
available to common shareholders divided by allocated equity. The
above measures represent a level of equity consistent with the view
that, in the ordinary course of business, MetLife does not plan to
sell most investments for the sole purpose of realizing gains or
losses. Also refer to the utilization of adjusted earnings and
other financial measures based on adjusted earnings mentioned
above.
- Total MetLife, Inc.’s tangible common stockholders’ equity or
tangible equity: total MetLife, Inc.’s common stockholders’ equity,
excluding AOCI other than FCTA, reduced by the impact of goodwill,
value of distribution agreements (VODA) and value of customer
relationships acquired (VOCRA), all net of income tax.
- Total MetLife, Inc.’s tangible common stockholders’ equity,
adjusted for total notable items: total MetLife, Inc.’s common
stockholders’ equity, excluding AOCI other than FCTA, reduced by
the impact of goodwill, value of distribution agreements (VODA),
value of customer relationships acquired (VOCRA) and total notable
items, all net of income tax.
- Return on MetLife, Inc.’s tangible common stockholders' equity:
net income (loss) available to MetLife, Inc.’s common shareholders,
excluding amortization of VODA and VOCRA, net of income tax,
divided by MetLife, Inc.'s average tangible common stockholders'
equity.
- Adjusted return on MetLife, Inc.'s tangible common
stockholders' equity: adjusted earnings available to common
shareholders, excluding amortization of VODA and VOCRA, net of
income tax, divided by MetLife, Inc.'s average tangible common
stockholders' equity.
- Allocated tangible equity: Allocated equity reduced by the
impact of goodwill, VODA and VOCRA, all net of income tax.
- Adjusted return on allocated tangible equity: adjusted earnings
available to common shareholders, excluding amortization of VODA
and VOCRA, net of income tax, divided by allocated tangible equity.
The above measures are, when considered in conjunction with
regulatory capital ratios, a measure of capital adequacy.
Expense ratio, direct expense ratio, adjusted expense ratio
and related measures
- Expense ratio: other expenses, net of capitalization of DAC,
divided by premiums, fees and other revenues.
- Direct expense ratio: direct expenses, on an adjusted basis,
divided by adjusted premiums, fees and other revenues.
- Direct expense ratio, excluding total notable items related to
direct expenses and PRT: direct expenses, on an adjusted basis,
excluding total notable items related to direct expenses, divided
by adjusted premiums, fees and other revenues, excluding PRT.
- Adjusted expense ratio: other expenses, net of capitalization
of DAC, both on an adjusted basis, divided by adjusted premiums,
fees and other revenues.
- Adjusted expense ratio, excluding total notable items related
to other expenses and PRT: other expenses, net of capitalization of
DAC, both on an adjusted basis, excluding total notable items
related to other expenses, divided by adjusted premiums, fees and
other revenues, excluding PRT.
Statistical sales information:
- U.S.:
- Group Benefits: calculated using 10% of single premium deposits
and 100% of annualized full-year premiums and fees from recurring
premium policy sales of all products.
- Retirement and Income Solutions: calculated using 10% of single
premium deposits and 100% of annualized full-year premiums and fees
only from recurring premium policy sales of specialized benefit
resources and corporate-owned life insurance.
- Property & Casualty: calculated based on first year direct
written premium, net of cancellation and endorsement activity.
- Latin America, Asia and EMEA: calculated using 10% of
single-premium deposits (mainly from retirement products such as
variable annuity, fixed annuity and pensions), 20% of
single-premium deposits from credit insurance and 100% of
annualized full-year premiums and fees from recurring-premium
policy sales of all products (mainly from risk and protection
products such as individual life, accident & health and
group).
Sales statistics do not correspond to revenues under GAAP, but
are used as relevant measures of business activity.
The following additional information is relevant to an
understanding of MetLife’s performance results:
- Volume growth, as discussed in the context of business growth,
is the period over period percentage change in adjusted earnings
available to common shareholders attributable to adjusted premiums,
fees and other revenues and assets under management levels,
applying a model in which certain margins and factors are held
constant. The most significant of such items are underwriting
margins, investment margins, changes in equity market performance,
expense margins and the impact of changes in foreign currency
exchange rates.
- Asymmetrical and non-economic accounting refers to: (i) the
portion of net derivative gains (losses) on embedded derivatives
attributable to the inclusion of MetLife’s credit spreads in the
liability valuations, (ii) hedging activity that generates net
derivative gains (losses) and creates fluctuations in net income
because hedge accounting cannot be achieved and the item being
hedged does not a have an offsetting gain or loss recognized in
earnings, (iii) 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 and other
pass-through adjustments, and (iv) impact of changes in foreign
currency exchange rates on the re-measurement of foreign
denominated unhedged funding agreements and financing transactions
to the U.S. dollar and the re-measurement of certain liabilities
from non-functional currencies to functional currencies. MetLife
believes that excluding the impact of asymmetrical and non-economic
accounting from total GAAP results enhances investor understanding
of MetLife’s performance by disclosing how these accounting
practices affect reported GAAP results.
- MetLife uses a measure of free cash flow to facilitate an
understanding of its ability to generate cash for reinvestment into
its businesses or use in non-mandatory capital actions. MetLife
defines free cash flow as the sum of cash available at MetLife’s
holding companies from dividends from operating subsidiaries,
expenses and other net flows of the holding companies (including
capital contributions to subsidiaries), and net contributions from
debt to be at or below target leverage ratios. This measure of free
cash flow is prior to capital actions, such as common stock
dividends and repurchases, debt reduction and mergers and
acquisitions. Free cash flow should not be viewed as a substitute
for net cash provided by (used in) operating activities calculated
in accordance with GAAP. The free cash flow ratio is typically
expressed as a percentage of annual adjusted earnings available to
common shareholders.
- Notable items represent a positive (negative) impact to
adjusted earnings available to common shareholders. Notable items
reflect the unexpected impact of events that affect MetLife’s
results, but that were unknown and that MetLife could not
anticipate when it devised its Business Plan. Notable items also
include certain items regardless of the extent anticipated in the
Business Plan, to help investors have a better understanding of
MetLife's results and to evaluate and forecast those results.
Forward-Looking Statements
This news 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 and terms such as “anticipate,” “estimate,”
“expect,” “project,” “intend,” “plan,” “believe,” "will," and other
words and terms of similar meaning, or are tied to future periods,
in connection with a discussion of future 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.
Many factors will be important in determining the results of
MetLife, Inc., its subsidiaries and affiliates. Forward-looking
statements are based on our assumptions and current expectations,
which may be inaccurate, and on the current economic environment,
which may change. These statements are not guarantees of future
performance. They involve a number of risks and uncertainties that
are difficult to predict. 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. These factors include: (1) difficult economic
conditions, including risks relating to interest rates, credit
spreads, equity, real estate, obligors and counterparties, currency
exchange rates, derivatives, and terrorism and security; (2)
adverse global capital and credit market conditions, which may
affect our ability to meet liquidity needs and access capital,
including through our credit facilities; (3) downgrades in our
claims paying ability, financial strength or credit ratings; (4)
availability and effectiveness of reinsurance, hedging or
indemnification arrangements; (5) increasing cost and limited
market capacity for statutory life insurance reserve financings;
(6) the impact on us of changes to and implementation of the wide
variety of laws and regulations to which we are subject; (7)
regulatory, legislative or tax changes relating to our operations
that may affect the cost of, or demand for, our products or
services; (8) adverse results or other consequences from
litigation, arbitration or regulatory investigations; (9) legal,
regulatory and other restrictions affecting MetLife, Inc.’s ability
to pay dividends and repurchase common stock; (10) MetLife, Inc.’s
primary reliance, as a holding company, on dividends from
subsidiaries to meet free cash flow targets and debt payment
obligations and the applicable regulatory restrictions on the
ability of the subsidiaries to pay such dividends; (11) investment
losses, defaults and volatility; (12) potential liquidity and other
risks resulting from our participation in a securities lending
program and other transactions; (13) changes to investment
valuations, allowances and impairments taken on investments, and
methodologies, estimates and assumptions;
(14) differences between actual claims experience and
underwriting and reserving assumptions; (15) political, legal,
operational, economic and other risks relating to our global
operations; (16) competitive pressures, 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; (17) the impact of technological changes on our
businesses; (18) catastrophe losses; (19) a deterioration in the
experience of the closed block established in connection with the
reorganization of Metropolitan Life Insurance Company; (20)
impairment of goodwill or other long-lived assets, or the
establishment of a valuation allowance against our deferred income
tax asset; (21) changes in assumptions related to deferred policy
acquisition costs, deferred sales inducements or value of business
acquired; (22) exposure to losses related to guarantees in certain
products; (23) ineffectiveness of risk management policies and
procedures or models; (24) a failure in our cybersecurity systems
or other information security systems or our disaster recovery
plans; (25) any failure to protect the confidentiality of client
information; (26) changes in accounting standards; (27) our
associates taking excessive risks; (28) difficulties in marketing
and distributing products through our distribution channels; (29)
increased expenses relating to pension and other postretirement
benefit plans; (30) inability to protect our intellectual property
rights or claims of infringement of others’ intellectual property
rights; (31) difficulties, unforeseen liabilities, asset
impairments, or rating agency actions arising from business
acquisitions and dispositions, joint ventures, or other legal
entity reorganizations; (32) unanticipated or adverse developments
that could adversely affect our expected operational or other
benefits from the separation of Brighthouse Financial, Inc. and its
subsidiaries; (33) the possibility that MetLife, Inc.’s Board of
Directors may influence the outcome of stockholder votes through
the voting provisions of the MetLife Policyholder Trust; (34)
provisions of laws and our incorporation documents that may delay,
deter or prevent takeovers and corporate combinations involving
MetLife; and (35) other risks and uncertainties described from time
to time in MetLife, Inc.’s filings with the U.S. Securities and
Exchange Commission.
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 U.S. Securities and
Exchange Commission.
MetLife, Inc.
GAAP Interim Condensed
Consolidated Statements of Operations
(Unaudited)
(In millions)
For the Three Months Ended
June 30,
2019
2018
Revenues
Premiums
$
10,129
$
15,153
Universal life and investment-type product
policy fees
1,412
1,370
Net investment income
4,693
4,473
Other revenues
478
475
Net investment gains (losses)
61
(227
)
Net derivative gains (losses)
724
(59
)
Total revenues
17,497
21,185
Expenses
Policyholder benefits and claims
9,993
14,866
Interest credited to policyholder account
balances
1,515
1,424
Policyholder dividends
302
309
Capitalization of DAC
(837
)
(834
)
Amortization of DAC and VOBA
689
707
Amortization of negative VOBA
(10
)
(16
)
Interest expense on debt
274
309
Other expenses
3,274
3,319
Total expenses
15,200
20,084
Income (loss) from continuing operations
before provision for income tax
2,297
1,101
Provision for income tax expense
(benefit)
551
207
Income (loss) from continuing operations,
net of income tax
1,746
894
Income (loss) from discontinued
operations, net of income tax
—
—
Net income (loss)
1,746
894
Less: Net income (loss) attributable to
noncontrolling interests
5
3
Net income (loss) attributable to MetLife,
Inc.
1,741
891
Less: Preferred stock dividends
57
46
Net income (loss) available to MetLife,
Inc.'s common shareholders
$
1,684
$
845
See footnotes on last page.
MetLife, Inc.
(Unaudited)
(In millions, except per share
data)
For the Three Months Ended
June 30,
2019
2018
Reconciliation to Adjusted Earnings
Available to Common Shareholders
Earnings Per Weighted Average
Common Share Diluted (1)
Earnings Per Weighted Average
Common Share Diluted (1)
Net income (loss) available to MetLife,
Inc.'s common shareholders
$
1,684
$
1.77
$
845
$
0.83
Adjustments from net income (loss)
available to common shareholders to adjusted earnings available to
common shareholders:
Less: Net investment gains (losses)
61
0.06
(227
)
(0.22
)
Net derivative gains (losses)
724
0.76
(59
)
(0.06
)
Premiums
—
—
—
—
Universal life and investment-type product
policy fees
48
0.05
26
0.03
Net investment income
139
0.16
146
0.14
Other revenues
71
0.07
83
0.08
Policyholder benefits and claims and
policyholder dividends
(112
)
(0.12
)
(50
)
(0.05
)
Interest credited to policyholder account
balances
(251
)
(0.26
)
(267
)
(0.26
)
Capitalization of DAC
—
—
—
—
Amortization of DAC and VOBA
8
0.01
1
—
Amortization of negative VOBA
—
—
—
—
Interest expense on debt
—
—
(30
)
(0.03
)
Other expenses
(82
)
(0.09
)
(142
)
(0.14
)
Goodwill impairment
—
—
—
—
Provision for income tax (expense)
benefit
(236
)
(0.24
)
41
0.04
Income (loss) from discontinued
operations, net of income tax
—
—
—
—
Add: Net income (loss) attributable to
noncontrolling interests
5
0.01
3
—
Adjusted earnings available to common
shareholders
1,319
1.38
1,326
1.30
Less: Total notable items (2)
(70
)
(0.07
)
(62
)
(0.06
)
Adjusted earnings available to common
shareholders, excluding total notable items (2)
$
1,389
$
1.46
$
1,388
$
1.36
Adjusted earnings available to common
shareholders on a constant currency basis
$
1,319
$
1.38
$
1,296
$
1.27
Adjusted earnings available to common
shareholders, excluding total notable items, on a constant currency
basis (2)
$
1,389
$
1.46
$
1,358
$
1.33
Weighted average common shares outstanding
- diluted
952.9
1,023.8
See footnotes on last page.
MetLife, Inc.
(Unaudited)
(In millions)
For the Three Months Ended
June 30,
2019
2018
Premiums, Fees and Other
Revenues
Premiums, fees and other revenues
$
12,019
$
16,998
Less: Unearned revenue adjustments
20
(5
)
GMIB fees
28
31
Settlement of foreign currency earnings
hedges
2
5
TSA fees
69
78
Divested businesses
—
—
Adjusted premiums, fees and other
revenues
$
11,900
$
16,889
Adjusted premiums, fees and other
revenues, on a constant currency basis
$
11,900
$
16,757
Less: Pension risk transfer (PRT) (3)
556
5,952
Adjusted premiums, fees and other
revenues, excluding PRT, on a constant currency basis
$
11,344
$
10,805
Net Investment Income
Net investment income
$
4,693
$
4,473
Less: Investment hedge adjustments
(118
)
(119
)
Operating joint venture adjustments
—
—
Unit-linked contract income
261
286
Securitization entities income
—
—
Certain partnership distributions
(4
)
(21
)
Divested businesses
—
—
Net investment income, as reported on an
adjusted basis
$
4,554
$
4,327
Revenues and Expenses
Total revenues
$
17,497
$
21,185
Less: Net investment gains (losses)
61
(227
)
Less: Net derivative gains (losses)
724
(59
)
Less: Adjustments related to net
investment gains (losses) and net derivative gains (losses)
20
(5
)
Less: Other adjustments to revenues:
GMIB fees
28
31
Investment hedge adjustments
(118
)
(119
)
Operating joint venture adjustments
—
—
Unit-linked contract income
261
286
Securitization entities income
—
—
Settlement of foreign currency earnings
hedges
2
5
Certain partnership distributions
(4
)
(21
)
TSA fees
69
78
Divested businesses
—
—
Total adjusted revenues
$
16,454
$
21,216
Total expenses
$
15,200
$
20,084
Less: Adjustments related to net
investment (gains) losses and net derivative (gains) losses
(5
)
(10
)
Less: Goodwill impairment
—
—
Less: Other adjustments to expenses:
Inflation and pass-through adjustments
84
—
GMIB costs and amortization of DAC and
VOBA related to GMIB fees and GMIB costs
36
60
Market value adjustments and amortization
of DAC, VOBA and negative VOBA related to market value
adjustments
(11
)
(1
)
PAB hedge adjustments
(6
)
(1
)
Unit-linked contract costs
257
268
Securitization entities debt expense
—
—
Noncontrolling interest
(6
)
(5
)
Regulatory implementation costs
7
2
Acquisition, integration and other
costs
6
14
TSA fees
69
78
Divested businesses
6
83
Total adjusted expenses
$
14,763
$
19,596
See footnotes on last page.
MetLife, Inc.
(Unaudited)
(In millions, except per share
and ratio data)
For the Three Months Ended
June 30,
Expense Detail and Ratios
2019
2018
Reconciliation of Capitalization of DAC
to Capitalization of DAC, as reported on an adjusted basis.
Capitalization of DAC
$
(837
)
$
(834
)
Less: Divested businesses
—
—
Capitalization of DAC, as reported on an
adjusted basis
$
(837
)
$
(834
)
Reconciliation of Other Expenses to
Other Expenses, as reported on an adjusted basis
Other expenses
$
3,274
$
3,319
Less: Noncontrolling interest
(6
)
(5
)
Less: Regulatory implementation costs
7
2
Less: Acquisition, integration and other
costs
6
14
Less: TSA fees
69
78
Less: Divested businesses
6
53
Other expenses, as reported on an adjusted
basis
$
3,192
$
3,177
Other detail and ratios
Other expenses
$
3,274
$
3,319
Capitalization of DAC
(837
)
(834
)
Other expenses, net of capitalization of
DAC
$
2,437
$
2,485
Premiums, fees and other revenues
$
12,019
$
16,998
Expense ratio
20.3
%
14.6
%
Direct expenses
$
1,485
$
1,500
Less: Total notable items related to
direct expenses (2)
88
78
Direct expenses, excluding total notable
items related to direct expenses
$
1,397
$
1,422
Other expenses, as reported on an adjusted
basis
$
3,192
$
3,177
Capitalization of DAC, as reported on an
adjusted basis
(837
)
(834
)
Other expenses, net of capitalization of
DAC, as reported on an adjusted basis
2,355
2,343
Less: Total notable items related to other
expenses, as reported on an adjusted basis (2)
88
78
Other expenses, net of capitalization of
DAC, excluding total notable items related to other expenses, as
reported on an adjusted basis (2)
$
2,267
$
2,265
Adjusted premiums, fees and other
revenues
$
11,900
$
16,889
Less: PRT
556
5,952
Adjusted premiums, fees and other
revenues, excluding PRT
$
11,344
$
10,937
Direct expense ratio
12.5
%
8.9
%
Direct expense ratio, excluding total
notable items related to direct expenses and PRT (2)
12.3
%
13.0
%
Adjusted expense ratio
19.8
%
13.9
%
Adjusted expense ratio, excluding total
notable items related to other expenses and PRT (2)
20.0
%
20.7
%
See footnotes on last page.
MetLife, Inc.
(Unaudited)
June 30,
Equity Details
2019
2018
Total MetLife, Inc.'s stockholders'
equity
$
63,811
$
53,633
Less: Preferred stock
3,340
3,340
MetLife, Inc.'s common stockholders'
equity
60,471
50,293
Less: Net unrealized investment gains
(losses), net of income tax
18,381
9,703
Defined benefit plans adjustment, net of
income tax
(1,984
)
(2,179
)
Total MetLife, Inc.'s common stockholders'
equity, excluding AOCI other than FCTA
44,074
42,769
Less: Goodwill, net of income tax
9,071
9,205
VODA and VOCRA, net of income tax
288
341
Total MetLife, Inc.'s tangible common
stockholders' equity
$
34,715
$
33,223
June 30,
Book Value (4)
2019
2018
Book value per common share
$
64.61
$
50.28
Less: Net unrealized investment gains
(losses), net of income tax
19.64
9.70
Defined benefit plans adjustment, net of
income tax
(2.12
)
(2.18
)
Book value per common share, excluding
AOCI other than FCTA
47.09
42.76
Less: Goodwill, net of income tax
9.69
9.20
VODA and VOCRA, net of income tax
0.31
0.34
Book value per common share - tangible
common stockholders' equity
$
37.09
$
33.22
Common shares outstanding, end of
period
935.9
1,000.2
For the Three Months Ended
June 30, (5)
Return on Equity
2019
2018
Return on MetLife, Inc.'s:
Common stockholders' equity
11.6
%
6.5
%
Common stockholders' equity, excluding
AOCI other than FCTA
15.4
%
7.8
%
Tangible common stockholders' equity
(6)
19.7
%
10.1
%
Adjusted return on MetLife, Inc.'s:
Common stockholders' equity
9.1
%
10.2
%
Common stockholders' equity, excluding
AOCI other than FCTA
12.1
%
12.2
%
Common stockholders' equity, excluding
total notable items (excludes AOCI other than FCTA) (2)
12.7
%
12.7
%
Tangible common stockholders' equity
(6)
15.5
%
15.8
%
Tangible common stockholders' equity,
excluding total notable items (2), (6)
16.2
%
16.5
%
Adjusted Return on Allocated Equity:
U.S.
27.3
%
24.7
%
Asia
10.1
%
10.2
%
Latin America
21.5
%
18.5
%
EMEA
11.0
%
9.9
%
MetLife Holdings
12.5
%
11.1
%
Adjusted Return on Allocated Tangible
Equity:
U.S.
31.0
%
28.6
%
Asia
15.3
%
15.4
%
Latin America
35.5
%
30.9
%
EMEA
19.8
%
16.2
%
MetLife Holdings
14.0
%
12.6
%
See footnotes on last page.
MetLife, Inc.
Adjusted Earnings Available to
Common Shareholders
(Unaudited)
(In millions)
For the Three Months Ended
June 30,
2019
2018
U.S. (3):
Adjusted earnings available to common
shareholders
$
732
$
671
Less: Total notable items (2)
—
—
Adjusted earnings available to common
shareholders, excluding total notable items (2)
$
732
$
671
Adjusted premiums, fees and other
revenues
$
6,731
$
11,767
Less: PRT
556
5,952
Adjusted premiums, fees and other
revenues, excluding PRT
$
6,175
$
5,815
Group Benefits (3):
Adjusted earnings available to common
shareholders
$
311
$
261
Less: Total notable items (2)
—
—
Adjusted earnings available to common
shareholders, excluding total notable items (2)
$
311
$
261
Adjusted premiums, fees and other
revenues
$
4,594
$
4,378
Retirement & Income Solutions (3):
Adjusted earnings available to common
shareholders
$
351
$
347
Less: Total notable items (2)
—
—
Adjusted earnings available to common
shareholders, excluding total notable items (2)
$
351
$
347
Adjusted premiums, fees and other
revenues
$
1,220
$
6,492
Less: PRT
556
5,952
Adjusted premiums, fees and other
revenues, excluding PRT
$
664
$
540
Property & Casualty (3):
Adjusted earnings available to common
shareholders
$
70
$
63
Less: Total notable items (2)
—
—
Adjusted earnings available to common
shareholders, excluding total notable items (2)
$
70
$
63
Adjusted premiums, fees and other
revenues
$
917
$
897
See footnotes on last page.
MetLife, Inc.
Adjusted Earnings Available to
Common Shareholders (Continued)
(Unaudited)
(In millions)
For the Three Months Ended
June 30,
2019
2018
Asia:
Adjusted earnings available to common
shareholders
$
359
$
363
Less: Total notable items (2)
—
—
Adjusted earnings available to common
shareholders, excluding total notable items (2)
$
359
$
363
Adjusted earnings available to common
shareholders on a constant currency basis
$
359
$
352
Adjusted earnings available to common
shareholders, excluding total notable items, on a constant currency
basis (2)
$
359
$
352
Adjusted premiums, fees and other
revenues
$
2,063
$
2,066
Adjusted premiums, fees and other
revenues, on a constant currency basis
$
2,063
$
2,020
Latin America:
Adjusted earnings available to common
shareholders
$
159
$
145
Less: Total notable items (2)
—
—
Adjusted earnings available to common
shareholders, excluding total notable items (2)
$
159
$
145
Adjusted earnings available to common
shareholders on a constant currency basis
$
159
$
135
Adjusted earnings available to common
shareholders, excluding total notable items, on a constant currency
basis (2)
$
159
$
135
Adjusted premiums, fees and other
revenues
$
1,064
$
972
Adjusted premiums, fees and other
revenues, on a constant currency basis
$
1,064
$
922
EMEA:
Adjusted earnings available to common
shareholders
$
77
$
86
Less: Total notable items (2)
—
—
Adjusted earnings available to common
shareholders, excluding total notable items (2)
$
77
$
86
Adjusted earnings available to common
shareholders on a constant currency basis
$
77
$
77
Adjusted earnings available to common
shareholders, excluding total notable items, on a constant currency
basis (2)
$
77
$
77
Adjusted premiums, fees and other
revenues
$
669
$
673
Adjusted premiums, fees and other
revenues, on a constant currency basis
$
669
$
637
MetLife Holdings (3):
Adjusted earnings available to common
shareholders
$
299
$
280
Less: Total notable items (2)
—
—
Adjusted earnings available to common
shareholders, excluding total notable items (2)
$
299
$
280
Adjusted premiums, fees and other
revenues
$
1,275
$
1,326
Corporate & Other (3):
Adjusted earnings available to common
shareholders
$
(307
)
$
(219
)
Less: Total notable items (2)
(70
)
(62
)
Adjusted earnings available to common
shareholders, excluding total notable items (2)
$
(237
)
$
(157
)
Adjusted premiums, fees and other
revenues
$
98
$
85
See footnotes on last page.
MetLife, Inc.
(Unaudited)
(1)
Adjusted earnings available to common
shareholders, excluding total notable items, per diluted common
share is calculated on a standalone basis and may not equal the sum
of (i) adjusted earnings available to common shareholders per
diluted common share and (ii) total notable items per diluted
common share.
(2)
Notable items reflect the unexpected
impact of events that affect MetLife’s results, but that were
unknown and that MetLife could not anticipate when it devised its
Business Plan. Notable items also include certain items regardless
of the extent anticipated in the Business Plan to help investors
have a better understanding of MetLife's results and to evaluate
and forecast those results. Notable items can affect MetLife’s
results either positively or negatively.
(3)
Results on a constant currency basis are
not included as constant currency impact is not significant.
(4)
Book values exclude $3,340 million and
$3,340 million of equity related to preferred stock at June 30,
2019 and 2018, respectively.
(5)
Annualized using quarter-to-date
results.
(6)
Net income (loss) available to MetLife,
Inc.'s common shareholders and adjusted earnings available to
common shareholders, used to calculate returns on tangible equity,
exclude the impact of amortization of VODA and VOCRA, net of income
tax, for the three months ended June 30, 2019 and June 30, 2018 of
$9 million and $10 million, respectively.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190731005947/en/
For Media: Ashia Razzaq MetLife (212) 578-1538 For Investors:
John Hall MetLife (212) 578-7888
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