MetLife, Inc. (NYSE: MET) today announced its full year and
fourth quarter 2023 results.
Full Year Results Summary*
- Net income of $1.4 billion, compared to net income of $5.1
billion for the full year 2022. Net income of $1.81 per share, down
71 percent from the prior year.
- Adjusted earnings of $5.5 billion, compared to adjusted
earnings of $5.8 billion for the full year 2022. Adjusted earnings
of $7.25 per share, up 1 percent from the prior year.
- Adjusted earnings, excluding total notable items, of $5.6
billion, compared to $5.7 billion for the full year 2022. On a per
share basis, adjusted earnings, excluding total notable items, of
$7.33, up 4 percent from $7.05 for the full year 2022.
- Book value of $35.85 per share, up 7 percent from $33.45 per
share at December 31, 2022.
- Book value, excluding accumulated other comprehensive income
(AOCI) other than foreign currency translation adjustments (FCTA),
of $53.75 per share, down 1 percent from $54.30 per share at
December 31, 2022.
- Return on equity (ROE) of 5.4 percent.
- Adjusted ROE, excluding AOCI other than FCTA, of 13.6 percent;
adjusted ROE, excluding notable items and AOCI other than FCTA, of
13.8 percent.
- Holding company cash and liquid assets of $5.2 billion at
December 31, 2023, which is above the target cash buffer of $3.0 -
$4.0 billion.
Fourth Quarter Results Summary*
- Net income of $574 million, or $0.77 per share, compared to net
income of $1.5 billion, or $1.96 per share, in the fourth quarter
of 2022.
- Adjusted earnings of $1.4 billion, or $1.83 per share, compared
to adjusted earnings of $1.3 billion, or $1.59 per share, in the
fourth quarter of 2022.
- Adjusted earnings, excluding total notable items, of $1.4
billion, or $1.93 per share, compared to adjusted earnings,
excluding total notable items, of $1.3 billion, or $1.59 per share,
in the fourth quarter of 2022.
- ROE of 9.6 percent.
- Adjusted ROE, excluding AOCI other than FCTA, of 13.8 percent;
adjusted ROE, excluding notable items and AOCI other than FCTA, of
14.6 percent.
"The positive momentum in our market-leading portfolio of
businesses drove MetLife's strong fourth-quarter and full-year 2023
results," said MetLife President and CEO Michel Khalaf. "We have
exited 2023 even stronger than we entered the year with excellent
capital and liquidity, arming us with considerable financial
flexibility going forward."
*Long-Duration Targeted Improvements (LDTI) Financial
results presented in this news release reflect LDTI accounting,
pursuant to Financial Accounting Standards Board Accounting
Standards Update No. 2018-12, which became effective on January 1,
2023. For more information, refer to "Non-GAAP and Other Financial
Disclosures."
Fourth Quarter and Full Year 2023 Summary
($ in millions, except per share data)
Three Months Ended
December 31,
Year Ended
December 31,
2023
2022
Change
2023
2022
Change
Premiums, fees and other revenues
$
13,687
$
10,898
26
%
$
51,961
$
56,365
(8
)%
Net investment income
5,366
4,464
20
%
19,908
15,916
25
%
Net investment gains (losses)
(174
)
350
(2,824
)
(1,260
)
Net derivative gains (losses)
149
(104
)
(2,140
)
(2,251
)
Total revenues
$
19,028
$
15,608
$
66,905
$
68,770
Adjusted premiums, fees and other
revenues
$
13,671
$
10,873
26
%
$
51,966
$
56,150
(7
)%
Adjusted premiums, fees and other
revenues, excluding pension risk transfers (PRT)
$
11,811
$
10,942
8
%
$
46,642
$
43,931
6
%
Market risk benefit remeasurement gains
(losses)
$
(431
)
$
512
$
994
$
3,674
Net income (loss)
$
574
$
1,549
(63
)%
$
1,380
$
5,099
(73
)%
Net income (loss) per share
$
0.77
$
1.96
(61
)%
$
1.81
$
6.30
(71
)%
Adjusted earnings
$
1,361
$
1,260
8
%
$
5,525
$
5,793
(5
)%
Adjusted earnings per share
$
1.83
$
1.59
15
%
$
7.25
$
7.16
1
%
Adjusted earnings, excluding total notable
items
$
1,437
$
1,260
14
%
$
5,587
$
5,704
(2
)%
Adjusted earnings, excluding total notable
items per share
$
1.93
$
1.59
21
%
$
7.33
$
7.05
4
%
Book value per share
$
35.85
$
33.45
7
%
$
35.85
$
33.45
7
%
Book value per share, excluding AOCI other
than FCTA
$
53.75
$
54.30
(1
)%
$
53.75
$
54.30
(1
)%
Expense ratio
18.6
%
21.8
%
18.7
%
16.2
%
Direct expense ratio, excluding total
notable items related to direct expenses and PRT
12.4
%
13.5
%
12.2
%
12.5
%
Adjusted expense ratio, excluding total
notable items related to adjusted other expenses and PRT
20.6
%
21.2
%
20.5
%
20.2
%
ROE
9.6
%
24.0
%
5.4
%
15.3
%
Adjusted ROE, excluding AOCI other than
FCTA
13.8
%
12.1
%
13.6
%
13.7
%
Adjusted ROE, excluding total notable
items (excludes AOCI other than FCTA)
14.6
%
12.1
%
13.8
%
13.5
%
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 fourth quarter of 2023, titled “4Q23
Supplemental Slides and Outlook,” are available on the MetLife
Investor Relations website at https://investor.metlife.com and in
the Form 8-K furnished by MetLife to the U.S. Securities and
Exchange Commission in connection with this earnings release.
Supplemental information about MetLife's diversified global
investment portfolio is contained in the "4Q23 - General Account
Assets Under Management Fact Sheet," available on the
above-mentioned website. Additionally, further information is
available under the heading "Consolidated Company Outlook" in Item
8.01 of the Form 8-K.
Total Company Discussion
MetLife reported fourth quarter 2023 premiums, fees and other
revenues of $13.7 billion, up 26 percent compared to the fourth
quarter of 2022. Adjusted premiums, fees and other revenues were
also $13.7 billion, up 26 percent on a reported basis and up 25
percent on a constant currency basis from the prior-year
period.
Net investment income was $5.4 billion, up 20 percent from the
fourth quarter of 2022, driven by higher interest rates and
increases in the estimated fair value of certain securities that do
not qualify as separate accounts under GAAP. Adjusted net
investment income was $5.0 billion, up 11 percent from the
prior-year period, largely driven by higher interest rates and
asset growth.
Net investment losses were $174 million, or $137 million after
tax during the quarter primarily driven by normal trading activity
in the portfolio. Net derivative gains amounted to $149 million, or
$118 million after tax during the quarter, largely driven by a
decrease in long-term interest rates.
Net income was $574 million, compared to net income of $1.5
billion in the fourth quarter of 2022. The decline in net income
from the prior-year period was driven by market risk benefit
remeasurement losses, partially offset by an increase in net
derivative gains. On a per-share basis, net income was $0.77,
compared to net income of $1.96 in the prior-year period.
MetLife reported adjusted earnings of $1.4 billion, up 8 percent
on a reported basis, and up 6 percent on a constant currency basis,
from the fourth quarter of 2022. On a per-share basis, adjusted
earnings were $1.83, up 15 percent from the prior-year period.
Adjusted Earnings by Segment Summary*
Three Months Ended
December 31, 2023
Year Ended
December 31, 2023
Segment
Change from
prior-year period
Change from
prior-year period
(on a constant
currency basis)
Change from
prior year
Change from
prior year
(on a constant
currency basis)
Group Benefits
19%
24%
Retirement and Income Solutions (RIS)
10%
4%
Asia
12%
11%
(21)%
(19)%
Latin America
13%
4%
15%
4%
Europe, the Middle East and Africa
(EMEA)
(27)%
(27)%
6%
12%
MetLife Holdings
(15)%
(29)%
*The percentages in this table are on a reported and constant
currency basis, and do not exclude notable items.
In the fourth quarter of 2023, MetLife reorganized from five
segments into the following six segments to reflect changes in
management's responsibilities: Group Benefits, RIS, Asia, Latin
America, EMEA and MetLife Holdings. The Group Benefits and RIS
businesses were previously reported as the U.S. segment. These
changes were applied retrospectively and did not have an impact on
prior period total consolidated net income (loss) or adjusted
earnings.
Business Discussions
All comparisons of the results for the fourth quarter of 2023 in
the business discussions that follow are with the fourth quarter of
2022, unless otherwise noted. The fourth quarter of 2023 notable
items table follows the Business Discussions section of this
release.
Group Benefits
($ in millions)
Three Months Ended
December 31, 2023
Three Months Ended
December 31, 2022
Change
Adjusted earnings
$466
$392
19%
Adjusted premiums, fees and other
revenues
$6,001
$5,799
3%
Notable item(s)
$0
$0
- Adjusted earnings were $466 million, up 19 percent,
driven by favorable life underwriting margins and volume
growth.
- Adjusted premiums, fees and other revenues were $6.0
billion, up 3 percent, driven by solid underlying growth across
most products, including voluntary.
- Sales were up 9 percent for the full year 2023, driven
by solid growth across both core and voluntary products, across all
market segments.
RIS
($ in millions)
Three Months Ended
December 31, 2023
Three Months Ended
December 31, 2022
Change
Adjusted earnings
$421
$381
10%
Adjusted premiums, fees and other
revenues
$2,883
$517
NM*
Adjusted premiums, fees and other
revenues, excluding PRT
$1,023
$586
75%
Notable item(s)
$0
$0
*Not meaningful. For more information, refer to "Non-GAAP and
Other Financial Disclosures."
- Adjusted earnings were $421 million, up 10 percent,
driven by favorable investment and underwriting margins.
- Adjusted premiums, fees and other revenues were $2.9
billion, compared to $517 million in the prior-year period, largely
driven by higher pension risk transfers of $1.9 billion.
- Excluding pension risk transfers, adjusted premiums, fees
and other revenues were $1.0 billion, up 75 percent, driven by
strong structured settlement sales, post-retirement benefit sales
and growth in UK longevity reinsurance.
- Sales were down 35 percent for the full year 2023,
primarily due to higher pension risk transfer and stable value
sales in the prior year.
ASIA
($ in millions)
Three Months Ended
December 31, 2023
Three Months Ended
December 31, 2022
Change
Adjusted earnings
$296
$265
12%
Adjusted earnings (constant currency)
$296
$267
11%
Adjusted premiums, fees and other
revenues
$1,705
$1,728
(1)%
Notable item(s)
$0
$0
Asia general account assets under
management (at amortized cost)
$130,093
$126,335
3%
- Adjusted earnings were $296 million, up 12 percent on a
reported basis, and up 11 percent on a constant currency basis,
primarily driven by higher recurring interest margins.
- Adjusted premiums, fees and other revenues were $1.7
billion, down 1 percent on a reported basis, and up 1 percent on a
constant currency basis.
- Asia general account assets under management (at amortized
cost) were $130.1 billion, up 3 percent on a reported basis,
and up 6 percent on a constant currency basis.
- Sales were $611 million, essentially flat on a constant
currency basis.
LATIN AMERICA
($ in millions)
Three Months Ended
December 31, 2023
Three Months Ended
December 31, 2022
Change
Adjusted earnings
$207
$184
13%
Adjusted earnings (constant currency)
$207
$200
4%
Adjusted premiums, fees and other
revenues
$1,486
$1,151
29%
Notable item(s)
$0
$0
- Adjusted earnings were $207 million, up 13 percent on a
reported basis, and up 4 percent on a constant currency basis,
primarily driven by volume growth and higher Chilean encaje
returns, partially offset by less favorable underwriting.
- Adjusted premiums, fees and other revenues were $1.5
billion, up 29 percent on a reported basis, and up 19 percent on a
constant currency basis, driven by strong sales and solid
persistency across the region.
- Sales were $344 million, up 7 percent on a constant
currency basis, driven by growth in Mexico and Chile.
EMEA
($ in millions)
Three Months Ended
December 31, 2023
Three Months Ended
December 31, 2022
Change
Adjusted earnings
$47
$64
(27)%
Adjusted earnings (constant currency)
$47
$64
(27)%
Adjusted premiums, fees and other
revenues
$595
$565
5%
Notable item(s)
$0
$0
- Adjusted earnings were $47 million, down 27 percent on
both a reported and a constant currency basis, driven by an
unfavorable tax charge compared to a favorable tax benefit in the
prior-year period as well as less favorable underwriting margins.
Higher recurring interest margins were a partial offset.
- Adjusted premiums, fees and other revenues were $595
million, up 5 percent on both a reported and constant currency
basis.
- Sales were $209 million, up 18 percent on a constant
currency basis, driven by growth across the region.
METLIFE HOLDINGS
($ in millions)
Three Months Ended
December 31, 2023
Three Months Ended
December 31, 2022
Change
Adjusted earnings
$156
$184
(15)%
Adjusted premiums, fees and other
revenues
$901
$1,010
(11)%
Notable item(s)
$0
$0
- Adjusted earnings were $156 million, down 15
percent, largely driven by foregone earnings as a result of the
reinsurance transaction that became effective in November.
- Adjusted premiums, fees and other revenues were
$901 million, down 11 percent.
CORPORATE & OTHER
($ in millions)
Three Months Ended
December 31, 2023
Three Months Ended
December 31, 2022
Change
Adjusted earnings
$(232)
$(210)
Notable item(s)
$(76)
$0
- Adjusted loss of $232 million, compared to an adjusted
loss of $210 million in the prior-year period. The notable item in
the current-year period is related to litigation reserves and
settlement costs.
INVESTMENTS
($ in millions)
Three Months Ended
December 31, 2023
Three Months Ended
December 31, 2022
Change
Adjusted net investment income
$5,047
$4,530
11%
- Adjusted net investment income was $5.0 billion, up 11
percent, largely driven by higher recurring investment income due
to higher interest rates and asset growth. Variable investment
income was $63 million, compared to variable investment income of
$24 million in the prior-year period, primarily driven by higher
private equity returns.
FOURTH QUARTER 2023 NOTABLE ITEMS
Adjusted Earnings
($ in millions)
Three Months Ended December
31, 2023
Notable Items
Group
Benefits
RIS
Asia
Latin
America
EMEA
MetLife
Holdings
Corporate
&
Other
Total
Litigation reserves and settlement
costs
$0
$0
$0
$0
$0
$0
$(76)
$(76)
Total notable items
$0
$0
$0
$0
$0
$0
$(76)
$(76)
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 individual and institutional customers build a more confident
future. Founded in 1868, MetLife has operations in more than 40
markets globally and holds leading 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 combined fourth quarter and full year 2023 earnings and outlook
conference call and audio webcast on Thursday, February 1, 2024,
from 9-10 a.m. (ET). The conference call will be available live via
telephone and the internet. To listen via telephone, dial
877-692-8955 (U.S.) or 234-720-6979 (outside the U.S.). The
participant access code is 2510803. To listen to the conference
call via the internet, click the link to the webcast on the MetLife
Investor Relations web page (https://investor.metlife.com). 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, February 1,
2024, until Thursday, February 8, 2024, at 11:59 p.m. (ET). To
listen to a replay of the conference call via telephone, dial
866-207-1041 (U.S.) or 402-970-0847 (outside the U.S.). The access
code for the replay is 4572614. 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)
return on equity; and
(vii)
return on MetLife, Inc.’s common
stockholders’ equity; and
(viii)
adjusted return on equity, excluding AOCI
other than FCTA.
(viii)
adjusted return on MetLife, Inc.’s common
stockholders’ equity, excluding AOCI other than FCTA.
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
for MetLife and its investors 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 PRT;
(iv)
premiums, fees and other revenues;
(v)
adjusted net investment income;
(v)
net investment income
(vi)
adjusted capitalization of deferred policy
acquisition costs (DAC);
(vi)
capitalization of DAC;
(vii)
adjusted earnings available to common
shareholders;
(vii)
net income (loss) available to MetLife,
Inc.’s common shareholders;
(viii)
adjusted earnings available to common
shareholders, excluding total notable items;
(viii)
net income (loss) available to MetLife,
Inc.’s common shareholders;
(ix)
adjusted earnings available to common
shareholders per diluted common share;
(ix)
net income (loss) available to MetLife,
Inc.’s common shareholders per diluted common share;
(x)
adjusted earnings available to common
shareholders, excluding total notable items, per diluted common
share;
(x)
net income (loss) available to MetLife,
Inc.’s common shareholders per diluted common share;
(xi)
adjusted return on equity;
(xi)
return on equity;
(xii)
adjusted return on equity, excluding AOCI
other than FCTA;
(xii)
return on equity;
(xiii)
adjusted return on equity, excluding total
notable items (excludes AOCI other than FCTA);
(xiii)
return on equity;
(xiv)
investment portfolio gains (losses);
(xiv)
net investment gains (losses);
(xv)
derivative gains (losses);
(xv)
net derivative gains (losses);
(xvi)
total MetLife, Inc.’s common stockholders’
equity, excluding AOCI other than FCTA;
(xvi)
total MetLife, Inc.’s stockholders’
equity;
(xvii)
total MetLife, Inc.’s common stockholders’
equity, excluding total notable items (excludes AOCI other than
FCTA);
(xvii)
total MetLife, Inc.’s stockholders’
equity;
(xviii)
book value per common share, excluding
AOCI other than FCTA;
(xviii)
book value per common share;
(xix)
free cash flow of all holding
companies;
(xix)
MetLife, Inc. (parent company only) net
cash provided by (used in) operating activities;
(xx)
adjusted other expenses;
(xx)
other expenses;
(xxi)
adjusted other expenses, net of adjusted
capitalization of DAC;
(xxi)
other expenses, net of capitalization of
DAC;
(xxii)
adjusted other expenses, net of adjusted
capitalization of DAC, excluding total notable items related to
adjusted other expenses;
(xxii)
other expenses, net of capitalization of
DAC;
(xxiii)
adjusted expense ratio;
(xxiii)
expense ratio;
(xxiv)
adjusted expense ratio, excluding total
notable items related to adjusted other expenses and PRT;
(xxiv)
expense ratio;
(xxv)
direct expenses;
(xxv)
other expenses;
(xxvi)
direct expenses, excluding total notable
items related to direct expenses;
(xxvi)
other expenses;
(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. As a result, comparable
prior period amounts are updated each period to reflect the most
recent period average foreign currency exchange rates.
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 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
measures 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.
Effective January 1, 2023, MetLife adopted ASU 2018-12,
Financial Services - Insurance (Topic 944): Targeted Improvements
to the Accounting for Long-Duration Contracts, as amended ("LDTI"),
with a transition date of January 1, 2021, which impacted the
calculation of adjusted earnings. Due to the adoption of LDTI, the
measurement model was simplified for DAC and value of business
acquired ("VOBA"), and most embedded derivatives were reclassified
as market risk benefits. As a result, MetLife updated its
calculation of adjusted earnings to remove certain adjustments
related to the amortization of DAC, VOBA and related intangibles
and adjusted for changes in measurement of certain guarantees.
Under LDTI, adjusted earnings excludes changes in fair value
associated with market risk benefits, changes in discount rates on
certain annuitization guarantees, losses at contract inception for
certain single premium business, and asymmetrical accounting
associated with in-force reinsurance. All periods presented herein
reflect the updated calculation of adjusted earnings.
Adjusted earnings is defined as adjusted revenues less adjusted
expenses, net of income tax. 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 (i) market volatility which
could distort trends, (ii) asymmetrical and non-economic
accounting, and (iii) revenues and costs related to divested
businesses, non-core products and certain entities required to be
consolidated under GAAP. Also, these measures exclude results of
discontinued operations under GAAP.
Market volatility can have a significant impact on MetLife’s
financial results. Adjusted earnings excludes net investment gains
(losses), net derivative gains (losses), market risk benefits
remeasurement gains (losses) and goodwill impairments. Further,
policyholder benefits and claims exclude (i) changes in the
discount rate on certain annuitization guarantees accounted for as
additional liabilities and (ii) market value adjustments.
Asymmetrical and non-economic accounting adjustments are made to
the line items indicated in calculating adjusted earnings:
- Net investment income includes 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").
- Other revenues include settlements of foreign currency earnings
hedges and exclude asymmetrical accounting associated with in-force
reinsurance.
- Policyholder benefits and claims excludes (i) amortization of
basis adjustments associated with de-designated fair value hedges
of future policy benefits, (ii) inflation-indexed benefit
adjustments associated with contracts backed by inflation-indexed
investments, (iii) asymmetrical accounting associated with in-force
reinsurance, and (iv) non-economic losses incurred at contract
inception for certain single premium annuity business. These losses
are amortized into adjusted earnings within policyholder benefits
and claims over the estimated lives of the contracts.
- Interest credited to policyholder account balances excludes
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 asymmetrical accounting
associated with in-force reinsurance.
Divested businesses are those that have been or will be sold or
exited by MetLife but do not meet the discontinued operations
criteria under GAAP. Divested businesses also include 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.
Other adjustments are made to the line items indicated in
calculating adjusted earnings:
- Net investment income and interest credited to policyholder
account balances excludes certain amounts related to
contractholder-directed equity securities ("Unit-linked contract
income") and ("Unit-linked contract costs").
- Other revenues include fee revenue on synthetic GICs accounted
for as freestanding derivatives.
- Other revenues exclude and other expenses include fees received
in connection with services provided under transition service
agreements.
- Other expenses exclude (i) implementation of new insurance
regulatory requirements and other costs, and (ii) acquisition,
integration and other related costs. Other expenses include (i)
deductions for net income attributable to noncontrolling interests,
and (ii) benefits accrued on synthetic GICs accounted for as
freestanding derivatives.
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.
In addition, adjusted earnings available to common shareholders
excludes the impact of preferred stock redemption premium which is
reported as a reduction to net income (loss) available to MetLife,
Inc.’s common shareholders.
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, as well as
investment portfolio gains (losses) of divested businesses.
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 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),
future policy benefits discount rate remeasurement gains (losses),
market risk benefits instrument-specific credit risk remeasurement
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), future policy benefits discount rate
remeasurement gains (losses), market risk benefits
instrument-specific credit risk remeasurement 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.
- 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.
- Adjusted return on MetLife, Inc.'s common stockholders' equity,
excluding total notable items (excludes AOCI other than FCTA):
adjusted earnings available to common shareholders, excluding total
notable items, divided by MetLife, Inc.'s average common
stockholders' equity, excluding total notable items (excludes AOCI
other than FCTA).
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.
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: adjusted direct expenses, divided by
adjusted premiums, fees and other revenues. Direct expenses are
comprised of employee-related costs, third-party staffing costs,
and general and administrative expenses.
- Direct expense ratio, excluding total notable items related to
direct expenses and PRT: adjusted direct expenses, excluding total
notable items related to direct expenses, divided by adjusted
premiums, fees and other revenues, excluding PRT.
- Adjusted expense ratio: adjusted other expenses, net of
adjusted capitalization of DAC, divided by adjusted premiums, fees
and other revenues.
- Adjusted expense ratio, excluding total notable items related
to adjusted other expenses and PRT: adjusted other expenses, net of
adjusted capitalization of DAC, excluding total notable items
related to adjusted other expenses, divided by adjusted premiums,
fees and other revenues, excluding PRT.
Asia General account (GA) assets under management (GA AUM)
and related measures
Asia GA AUM is used by MetLife to describe assets in its Asia GA
investment portfolio. Asia GA AUM is stated at estimated fair value
and is comprised of Asia GA total investments, the portion of the
Asia GA investment portfolio classified within assets held-for-sale
and cash and cash equivalents, excluding policy loans,
contractholder-directed equity securities, fair value option
securities, mortgage loans originated for third parties and certain
other invested assets. Mortgage loans, net of mortgage loans
originated for third parties ("net mortgage loans") (including
commercial ("net commercial mortgage loans"), agricultural ("net
agricultural mortgage loans") and residential mortgage loans) and
real estate equity (including real estate and real estate joint
ventures) included in Asia GA AUM (at net asset value, net of
deduction for encumbering debt) have been adjusted from carrying
value to estimated fair value. At the segment level, intersegment
balances (intercompany activity, primarily related to investments
in subsidiaries, that eliminate at the MetLife consolidated level)
are excluded from Asia GA AUM.
Asia GA AUM (at amortized cost) excludes the following
adjustments: (i) unrealized gain (loss) on investments carried at
estimated fair value and (ii) adjustments from carrying value to
estimated fair value on net mortgage loans (including net
commercial mortgage loans, net agricultural mortgage loans and
residential mortgage loans) and real estate and real estate joint
ventures. Asia GA AUM (at amortized cost) is presented net of
related allowance for credit loss.
Statistical sales information:
- 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.
- RIS: 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.
- 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 and outlook:
- 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.
- Holding company cash and liquid assets are held by MetLife,
Inc. collectively with other MetLife holding companies and include
cash and cash equivalents, short term investments and publicly
traded securities excluding assets that are pledged or otherwise
committed. Assets pledged or otherwise committed include amounts
received in connection with securities lending, repurchase
agreements, derivatives, regulatory deposits, the collateral
financing arrangement, funding agreements and secured borrowings,
as well as amounts held in the closed block.
- 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 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 represent a positive (negative) impact
to adjusted earnings available to common shareholders.
- We refer to observable forward yield curves as of a particular
date in connection with making our estimates for future results.
The observable forward yield curves at a given time are based on
implied future interest rates along a range of interest rate
durations. This includes the 10-year U.S. Treasury rate which we
use as a benchmark rate to describe longer-term interest rates used
in our estimates for future results.
- Not Meaningful (NM) indicates a percentage change in a
financial metric over a specified period of time and reflects
changes in factors that are subject to volatility, and should not,
accordingly be viewed as representative of a reasonable trend
currently or in the future. For example,
($ in millions)
Three Months Ended
December 31, 2023
Three Months Ended
December 31, 2022
Change
Adjusted premiums, fees and other revenues
- RIS
$2,883
$517
458%
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 and do not relate strictly to historical
or current facts. They use words and terms such as “anticipate,”
"are confident," “assume,” “believe,” “continue,” “could,”
“estimate,” “expect,” “if,” “intend,” “likely,” “may,” “plan,”
“potential,” “project,” “should,” “will,” “would,” and other words
and terms of similar meaning or that are otherwise tied to future
periods or future performance, in each case in all derivative
forms. They include statements relating to future actions,
prospective services or products, future performance or results of
current and anticipated services or products, future sales efforts,
future expenses, the outcome of contingencies such as legal
proceedings, and future trends in operations and financial
results.
Many factors determine the results of MetLife, Inc., its
subsidiaries and affiliates, and they involve unpredictable risks
and uncertainties. Our forward-looking statements depend on our
assumptions, our expectations, and our understanding of the
economic environment, but they may be inaccurate and may change.
MetLife, Inc. does not guarantee any future performance. Our
results could differ materially from those MetLife, Inc. expresses
or implies in forward-looking statements. The risks, uncertainties
and other factors identified in MetLife, Inc.’s filings with the
U.S. Securities and Exchange Commission, and others, may cause such
differences. These factors include:
(1)
economic condition difficulties,
including risks relating to interest rates, credit spreads,
declining equity or debt markets, real estate, obligors and
counterparties, government default, currency exchange rates,
derivatives, climate change, public health and terrorism and
security;
(2)
global capital and credit market
adversity;
(3)
credit facility
inaccessibility;
(4)
financial strength or credit
ratings downgrades;
(5)
unavailability, unaffordability,
or inadequate reinsurance, including reinsurance risks that arise
from reinsurers' credit risk, and the potential shortfall or
failure of risk mitigants to protect against such risks;
(6)
statutory life insurance reserve
financing costs or limited market capacity;
(7)
legal, regulatory, and
supervisory and enforcement policy changes;
(8)
changes in tax rates, tax laws or
interpretations;
(9)
litigation and regulatory
investigations;
(10)
unsuccessful efforts to meet all
environmental, social, and governance standards or to enhance our
sustainability;
(11)
MetLife, Inc.’s inability to pay
dividends and repurchase common stock;
(12)
MetLife, Inc.’s subsidiaries’
inability to pay dividends to MetLife, Inc.;
(13)
investment defaults, downgrades,
or volatility;
(14)
investment sales or lending
difficulties;
(15)
collateral or derivative-related
payments;
(16)
investment valuations,
allowances, or impairments changes;
(17)
claims or other results that
differ from our estimates, assumptions, or models;
(18)
global political, legal, or
operational risks;
(19)
business competition;
(20)
technological changes;
(21)
catastrophes;
(22)
climate changes or responses to
it;
(23)
deficiencies in our closed
block;
(24)
goodwill or other asset
impairment, or deferred income tax asset allowance;
(25)
impairment of VOBA, value of
distribution agreements acquired or value of customer relationships
acquired;
(26)
product guarantee volatility,
costs, and counterparty risks;
(27)
risk management failures;
(28)
insufficient protection from
operational risks;
(29)
failure to protect
confidentiality and integrity of data or other cybersecurity or
disaster recovery failures;
(30)
accounting standards changes;
(31)
excessive risk-taking;
(32)
marketing and distribution
difficulties;
(33)
pension and other postretirement
benefit assumption changes;
(34)
inability to protect our
intellectual property or avoid infringement claims;
(35)
acquisition, integration, growth,
disposition, or reorganization difficulties;
(36)
Brighthouse Financial, Inc.
separation risks;
(37)
MetLife, Inc.’s Board of
Directors influence over the outcome of stockholder votes through
the voting provisions of the MetLife Policyholder Trust; and
(38)
legal- and corporate
governance-related effects on business combinations.
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 subsequent reports to the U.S.
Securities and Exchange Commission.
MetLife, Inc.
GAAP Consolidated Statements
of Operations
(In millions)
For the Three Months
Ended
For the Year Ended
December 31,
December 31,
2023
2022
2023
2022
Revenues
Premiums
$
11,786
$
9,005
$
44,283
$
48,510
Universal life and investment-type product
policy fees
1,241
1,266
5,152
5,225
Net investment income
5,366
4,464
19,908
15,916
Other revenues
660
627
2,526
2,630
Net investment gains (losses)
(174
)
350
(2,824
)
(1,260
)
Net derivative gains (losses)
149
(104
)
(2,140
)
(2,251
)
Total revenues
19,028
15,608
66,905
68,770
Expenses
Policyholder benefits and claims
11,779
9,115
44,590
49,507
Policyholder liability remeasurement
(gains) losses
(3
)
20
(45
)
114
Market risk benefit remeasurement (gains)
losses
431
(512
)
(994
)
(3,674
)
Interest credited to policyholder account
balances
2,405
1,727
7,860
3,894
Policyholder dividends
159
155
622
706
Amortization of DAC and VOBA
504
457
1,952
1,831
Amortization of negative VOBA
(6
)
(7
)
(26
)
(29
)
Interest expense on debt
269
248
1,045
938
Other expenses, net of capitalization of
DAC
2,549
2,379
9,739
9,119
Total expenses
18,087
13,582
64,743
62,406
Income (loss) before provision for income
tax
941
2,026
2,162
6,364
Provision for income tax expense
(benefit)
327
445
560
1,062
Net income (loss)
614
1,581
1,602
5,302
Less: Net income (loss) attributable to
noncontrolling interests
7
3
24
18
Net income (loss) attributable to MetLife,
Inc.
607
1,578
1,578
5,284
Less: Preferred stock dividends
33
29
198
185
Net income (loss) available to MetLife,
Inc.'s common shareholders
$
574
$
1,549
$
1,380
$
5,099
See footnotes on last page.
MetLife, Inc.
(In millions, except per share
data)
For the Three Months
Ended
For the Year Ended
December 31,
December 31,
2023
2022
2023
2022
Reconciliation to Adjusted Earnings
Available to Common Shareholders
Earnings Per
Weighted
Average
Common Share
Diluted (1)
Earnings Per
Weighted
Average
Common Share
Diluted (1)
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
$
574
$
0.77
$
1,549
$
1.96
$
1,380
$
1.81
$
5,099
$
6.30
Adjustments from net income (loss)
available to common shareholders to adjusted earnings available to
common shareholders:
Less: Net investment gains (losses)
(174
)
(0.23
)
350
0.44
(2,824
)
(3.70
)
(1,260
)
(1.56
)
Net derivative gains (losses)
149
0.20
(104
)
(0.13
)
(2,140
)
(2.81
)
(2,251
)
(2.78
)
Market risk benefit remeasurement gains
(losses)
(431
)
(0.58
)
512
0.65
994
1.30
3,674
4.54
Premiums
—
—
—
—
—
—
41
0.05
Universal life and investment-type product
policy fees
—
—
—
—
—
—
11
0.01
Net investment income
319
0.43
(66
)
(0.08
)
159
0.21
(2,273
)
(2.80
)
Other revenues
16
0.02
25
0.03
(5
)
(0.01
)
163
0.20
Policyholder benefits and claims and
policyholder dividends
36
0.05
26
0.03
5
0.01
(484
)
(0.60
)
Policyholder liability remeasurement
(gains) losses
—
—
—
—
—
—
—
—
Interest credited to policyholder account
balances
(685
)
(0.93
)
(244
)
(0.31
)
(1,251
)
(1.65
)
1,385
1.72
Capitalization of DAC
—
—
—
—
—
—
11
0.01
Amortization of DAC and VOBA
—
—
—
—
—
—
(8
)
(0.01
)
Amortization of negative VOBA
—
—
—
—
—
—
—
—
Interest expense on debt
—
—
—
—
—
—
—
—
Other expenses
(16
)
(0.02
)
(58
)
(0.07
)
(93
)
(0.12
)
(265
)
(0.33
)
Goodwill impairment
—
—
—
—
—
—
—
—
Provision for income tax (expense)
benefit
6
0.01
(149
)
(0.19
)
1,034
1.36
580
0.72
Add: Net income (loss) attributable to
noncontrolling interests
7
0.01
3
—
24
0.03
18
0.03
Preferred stock redemption premium
—
—
—
—
—
—
—
—
Adjusted earnings available to common
shareholders
1,361
1.83
1,260
1.59
5,525
7.25
5,793
7.16
Less: Total notable items (2)
(76
)
(0.10
)
—
—
(62
)
(0.08
)
89
0.11
Adjusted earnings available to common
shareholders, excluding total notable items (2)
$
1,437
$
1.93
$
1,260
$
1.59
$
5,587
$
7.33
$
5,704
$
7.05
Adjusted earnings available to common
shareholders on a constant currency basis
$
1,361
$
1.83
$
1,278
$
1.62
$
5,525
$
7.25
$
5,823
$
7.20
Adjusted earnings available to common
shareholders, excluding total notable items, on a constant currency
basis (2)
$
1,437
$
1.93
$
1,278
$
1.62
$
5,587
$
7.33
$
5,734
$
7.09
Weighted average common shares outstanding
- diluted
743.4
790.2
762.3
808.9
See footnotes on last page.
MetLife, Inc.
(In millions)
For the Three Months
Ended
For the Year Ended
December 31,
December 31,
2023
2022
2023
2022
Premiums, Fees and Other
Revenues
Premiums, fees and other revenues
$
13,687
$
10,898
$
51,961
$
56,365
Less: Adjustments to premiums, fees and
other revenues:
Asymmetrical and non-economic
accounting
29
—
29
—
Other adjustments
(13
)
25
(34
)
160
Divested businesses
—
—
—
55
Adjusted premiums, fees and other
revenues
$
13,671
$
10,873
$
51,966
$
56,150
Adjusted premiums, fees and other
revenues, on a constant currency basis
$
13,671
$
10,926
$
51,966
$
56,150
Less: PRT
1,860
(69
)
5,324
12,219
Adjusted premiums, fees and other
revenues, excluding PRT, on a constant currency basis
$
11,811
$
10,995
$
46,642
$
43,931
Net Investment Income
Net investment income
$
5,366
$
4,464
$
19,908
$
15,916
Less: Adjustments to net investment
income
Investment hedge adjustments
(253
)
(277
)
(1,012
)
(976
)
Unit-linked contract income
580
209
1,183
(1,298
)
Other adjustments
(8
)
2
(12
)
(10
)
Divested businesses
—
—
—
11
Adjusted net investment income
$
5,047
$
4,530
$
19,749
$
18,189
Revenues and Expenses
Total revenues
$
19,028
$
15,608
$
66,905
$
68,770
Less: Adjustments to total revenues:
Net investment gains (losses)
(174
)
350
(2,824
)
(1,260
)
Net derivative gains (losses)
149
(104
)
(2,140
)
(2,251
)
Investment hedge adjustments
(253
)
(277
)
(1,012
)
(976
)
Asymmetrical and non-economic
accounting
29
—
29
—
Unit-linked contract income
580
209
1,183
(1,298
)
Other adjustments
(21
)
27
(46
)
150
Divested businesses
—
—
—
66
Total adjusted revenues
$
18,718
$
15,403
$
71,715
$
74,339
Total expenses
$
18,087
$
13,582
$
64,743
$
62,406
Less: Adjustments to total expenses:
Market risk benefit remeasurement (gains)
losses
431
(512
)
(994
)
(3,674
)
Goodwill impairment
—
—
—
—
Asymmetrical and non-economic
accounting
129
143
247
588
Market volatility
(62
)
(105
)
(184
)
(193
)
Unit-linked contract costs
582
180
1,183
(1,322
)
Other adjustments
7
37
55
191
Divested businesses
9
21
38
97
Total adjusted expenses
$
16,991
$
13,818
$
64,398
$
66,719
See footnotes on last page.
MetLife, Inc.
(In millions, except per share
and ratio data)
For the Three Months
Ended
For the Year Ended
December 31,
December 31,
2023
2022
2023
2022
Expense Detail and Ratios
Reconciliation of Capitalization of DAC
to Adjusted Capitalization of DAC
Capitalization of DAC
$
(728
)
$
(699
)
$
(2,917
)
$
(2,614
)
Less: Divested businesses
—
—
—
(11
)
Adjusted capitalization of DAC
$
(728
)
$
(699
)
$
(2,917
)
$
(2,603
)
Reconciliation of Other Expenses to
Adjusted Other Expenses
Other expenses
$
3,277
$
3,078
$
12,656
$
11,733
Less: Other adjustments
7
37
55
191
Less: Divested businesses
9
21
38
74
Adjusted other expenses
$
3,261
$
3,020
$
12,563
$
11,468
Other Detail and Ratios
Other expenses, net of capitalization of
DAC
$
2,549
$
2,379
$
9,739
$
9,119
Premiums, fees and other revenues
$
13,687
$
10,898
$
51,961
$
56,365
Expense ratio
18.6
%
21.8
%
18.7
%
16.2
%
Direct expenses
$
1,559
$
1,481
$
5,808
$
5,490
Less: Total notable items related to
direct expenses (2)
96
—
96
—
Direct expenses, excluding total notable
items related to direct expenses (2)
$
1,463
$
1,481
$
5,712
$
5,490
Adjusted other expenses
$
3,261
$
3,020
$
12,563
$
11,468
Adjusted capitalization of DAC
(728
)
(699
)
(2,917
)
(2,603
)
Adjusted other expenses, net of adjusted
capitalization of DAC
2,533
2,321
9,646
8,865
Less: Total notable items related to
adjusted other expenses (2)
96
—
96
—
Adjusted other expenses, net of adjusted
capitalization of DAC, excluding total notable items related to
adjusted other expenses (2)
$
2,437
$
2,321
$
9,550
$
8,865
Adjusted premiums, fees and other
revenues
$
13,671
$
10,873
$
51,966
$
56,150
Less: PRT
1,860
(69
)
5,324
12,219
Adjusted premiums, fees and other
revenues, excluding PRT
$
11,811
$
10,942
$
46,642
$
43,931
Direct expense ratio
11.4
%
13.6
%
11.2
%
9.8
%
Direct expense ratio, excluding total
notable items related to direct expenses and PRT (2)
12.4
%
13.5
%
12.2
%
12.5
%
Adjusted expense ratio
18.5
%
21.3
%
18.6
%
15.8
%
Adjusted expense ratio, excluding total
notable items related to adjusted other expenses and PRT (2)
20.6
%
21.2
%
20.5
%
20.2
%
See footnotes on last page.
MetLife, Inc.
(In millions, except per share
data)
December 31,
Equity Details
2023
2022
Total MetLife, Inc.'s stockholders'
equity
$
30,015
$
29,881
Less: Preferred stock
3,818
3,818
MetLife, Inc.'s common stockholders'
equity
26,197
26,063
Less: Net unrealized investment gains
(losses), net of income tax
(14,323
)
(21,089
)
Future policy benefits discount rate
remeasurement gain (losses), net of income tax
2,658
6,115
Market risk benefits instrument-specific
credit risk remeasurement gains (losses), net of income tax
27
107
Defined benefit plans adjustment, net of
income tax
(1,446
)
(1,377
)
Total MetLife, Inc.'s common stockholders'
equity, excluding AOCI other than FCTA
39,281
42,307
Less: Accumulated year-to-date total
notable items (2)
(62
)
89
Total MetLife, Inc.'s common stockholders'
equity, excluding total notable items (excludes AOCI other than
FCTA) (2)
$
39,343
$
42,218
December 31,
Book Value (3)
2023
2022
Book value per common share
$
35.85
$
33.45
Less: Net unrealized investment gains
(losses), net of income tax
(19.60
)
(27.07
)
Future policy benefits discount rate
remeasurement gain (losses), net of income tax
3.64
7.85
Market risk benefits instrument-specific
credit risk remeasurement gains (losses), net of income tax
0.04
0.14
Defined benefit plans adjustment, net of
income tax
(1.98
)
(1.77
)
Book value per common share, excluding
AOCI other than FCTA
$
53.75
$
54.30
Common shares outstanding, end of period
(4)
730.8
779.1
For the Three Months
Ended
For the Year Ended
December 31, (5)
December 31,
Return on Equity
2023
2022
2023
2022
Return on MetLife, Inc.'s:
Common stockholders' equity
9.6
%
24.0
%
5.4
%
15.3
%
Adjusted return on MetLife, Inc.'s:
Common stockholders' equity
22.7
%
19.5
%
21.4
%
17.4
%
Common stockholders' equity, excluding
AOCI other than FCTA
13.8
%
12.1
%
13.6
%
13.7
%
Common stockholders' equity, excluding
total notable items (excludes AOCI other than FCTA) (2)
14.6
%
12.1
%
13.8
%
13.5
%
For the Three Months
Ended
For the Year Ended
December 31,
December 31,
Average Common Stockholders'
Equity
2023
2022
2023
2022
Average common stockholders' equity
$
24,019
$
25,817
$
25,784
$
33,221
Average common stockholders' equity,
excluding AOCI other than FCTA
$
39,368
$
41,640
$
40,599
$
42,282
Average common stockholders' equity,
excluding total notable items (excludes AOCI other than FCTA)
(2)
$
39,392
$
41,551
$
40,608
$
42,231
See footnotes on last page.
MetLife, Inc.
Adjusted Earnings Available to
Common Shareholders
(In millions)
For the Three Months
Ended
For the Year Ended
December 31,
December 31,
2023
2022
2023
2022
Group Benefits (6):
Adjusted earnings available to common
shareholders
$
466
$
392
$
1,655
$
1,332
Less: Total notable items (2)
—
—
27
—
Adjusted earnings available to common
shareholders, excluding total notable items (2)
$
466
$
392
$
1,628
$
1,332
Adjusted premiums, fees and other
revenues
$
6,001
$
5,799
$
23,929
$
23,266
Retirement & Income Solutions (6):
Adjusted earnings available to common
shareholders
$
421
$
381
$
1,708
$
1,635
Less: Total notable items (2)
—
—
61
79
Adjusted earnings available to common
shareholders, excluding total notable items (2)
$
421
$
381
$
1,647
$
1,556
Adjusted premiums, fees and other
revenues
$
2,883
$
517
$
8,832
$
14,314
Less: PRT
1,860
(69
)
5,324
12,219
Adjusted premiums, fees and other
revenues, excluding PRT
$
1,023
$
586
$
3,508
$
2,095
Asia:
Adjusted earnings available to common
shareholders
$
296
$
265
$
1,282
$
1,617
Less: Total notable items (2)
—
—
(94
)
(32
)
Adjusted earnings available to common
shareholders, excluding total notable items (2)
$
296
$
265
$
1,376
$
1,649
Adjusted earnings available to common
shareholders on a constant currency basis
$
296
$
267
$
1,282
$
1,583
Adjusted earnings available to common
shareholders, excluding total notable items, on a constant currency
basis (2)
$
296
$
267
$
1,376
$
1,615
Adjusted premiums, fees and other
revenues
$
1,705
$
1,728
$
6,969
$
7,346
Adjusted premiums, fees and other
revenues, on a constant currency basis
$
1,705
$
1,686
$
6,969
$
6,974
Latin America:
Adjusted earnings available to common
shareholders
$
207
$
184
$
840
$
729
Less: Total notable items (2)
—
—
—
1
Adjusted earnings available to common
shareholders, excluding total notable items (2)
$
207
$
184
$
840
$
728
Adjusted earnings available to common
shareholders on a constant currency basis
$
207
$
200
$
840
$
806
Adjusted earnings available to common
shareholders, excluding total notable items, on a constant currency
basis (2)
$
207
$
200
$
840
$
805
Adjusted premiums, fees and other
revenues
$
1,486
$
1,151
$
5,727
$
4,438
Adjusted premiums, fees and other
revenues, on a constant currency basis
$
1,486
$
1,247
$
5,727
$
4,831
See footnotes on last page.
MetLife, Inc.
Adjusted Earnings Available to
Common Shareholders (Continued)
(In millions)
For the Three Months
Ended
For the Year Ended
December 31,
December 31,
2023
2022
2023
2022
EMEA:
Adjusted earnings available to common
shareholders
$
47
$
64
$
265
$
249
Less: Total notable items (2)
—
—
18
15
Adjusted earnings available to common
shareholders, excluding total notable items (2)
$
47
$
64
$
247
$
234
Adjusted earnings available to common
shareholders on a constant currency basis
$
47
$
64
$
265
$
236
Adjusted earnings available to common
shareholders, excluding total notable items, on a constant currency
basis (2)
$
47
$
64
$
247
$
221
Adjusted premiums, fees and other
revenues
$
595
$
565
$
2,346
$
2,281
Adjusted premiums, fees and other
revenues, on a constant currency basis
$
595
$
564
$
2,346
$
2,210
MetLife Holdings (6):
Adjusted earnings available to common
shareholders
$
156
$
184
$
733
$
1,031
Less: Total notable items (2)
—
—
2
26
Adjusted earnings available to common
shareholders, excluding total notable items (2)
$
156
$
184
$
731
$
1,005
Adjusted premiums, fees and other
revenues
$
901
$
1,010
$
3,708
$
4,123
Corporate & Other (6):
Adjusted earnings available to common
shareholders
$
(232
)
$
(210
)
$
(958
)
$
(800
)
Less: Total notable items (2)
(76
)
—
(76
)
—
Adjusted earnings available to common
shareholders, excluding total notable items (2)
$
(156
)
$
(210
)
$
(882
)
$
(800
)
Adjusted premiums, fees and other
revenues
$
100
$
103
$
455
$
382
See footnotes on last page.
MetLife, Inc.
For the Three Months
Ended
For the Year Ended
March 31, 2023
June 30, 2023
September 30, 2023
December 31, 2023
December 31, 2023
Variable investment income
(post-tax, in millions) (7)
Group Benefits
$
—
$
4
$
1
$
1
$
6
RIS
(3
)
29
35
23
84
Asia
(25
)
84
37
10
106
Latin America
(2
)
4
5
4
11
EMEA
—
—
—
—
—
MetLife Holdings
2
41
35
23
101
Corporate & Other
(7
)
13
28
(11
)
23
Total variable investment income
$
(35
)
$
175
$
141
$
50
$
331
Segments: Group Benefits, RIS,
Asia, Latin America and EMEA (8)
Capital Deployed
Value of New
Business
Internal Rate of
Return
Payback (Years)
Value of new business ($ in
billions)
2022
$
3.7
$
2.3
17
%
6
2021
$
2.8
$
1.9
17
%
6
2020
$
3.2
$
1.9
17
%
6
2019
$
3.8
$
1.8
15
%
7
2018
$
3.8
$
2.1
15
%
7
Average asset balances (in
billions)
Private equity
$
14.5
Real estate and other funds
4.4
Total average asset balances
$
18.9
See footnotes on last page.
Condensed Reconciliation of
Net Cash Provided by Operating Activities of MetLife, Inc.
to Free Cash Flow of All
Holding Companies
(In billions, except
ratios)
For the Year Ended December
31,
2023
2022
MetLife, Inc. (parent company only) net
cash provided by operating activities
$
4.2
$
4.4
Adjustments from net cash provided by
operating activities to free cash flow:
Add: Incremental debt to be at or below
target leverage ratios
—
1.0
Add: Adjustments from net cash provided by
operating activities to free cash flow (9)
(0.7
)
(0.2
)
MetLife, Inc. (parent company only) free
cash flow
3.5
5.2
Other MetLife, Inc. holding companies free
cash flow (10)
0.1
(0.5
)
Free cash flow of all holding
companies
$
3.6
$
4.7
Ratio of net cash provided by operating
activities to consolidated net income (loss) available to MetLife,
Inc.'s common shareholders:
MetLife, Inc. (parent company only) net
cash provided by operating activities
$
4.2
$
4.4
Consolidated net income (loss) available
to MetLife, Inc.'s common shareholders
$
1.4
$
5.1
Ratio of net cash provided by operating
activities (parent company only) to consolidated net income (loss)
available to MetLife, Inc.'s common shareholders (11)
303
%
87
%
Ratio of free cash flow to adjusted
earnings available to common shareholders:
Free cash flow of all holding companies
(12)
$
3.6
$
4.7
Consolidated adjusted earnings available
to common shareholders (12)
$
5.5
$
5.8
Ratio of free cash flow of all holding
companies to consolidated adjusted earnings available to common
shareholders (12)
66
%
81
%
See footnotes on last page.
MetLife, Inc.
December 31, 2023
Cash & Capital (13), (14), (15) (in
billions)
Holding Companies Cash & Liquid
Assets
$
5.2
Footnotes
(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
(i) adjusted earnings available to common shareholders per diluted
common share, less (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)
Book values exclude $3,818
million of equity related to preferred stock at both December 31,
2023 and 2022.
(4)
There were share repurchases of
approximately $0.9 billion and $3.1 billion for the three months
and year ended December 31, 2023, respectively. There were share
repurchases of approximately $500 million in January 2024.
(5)
Annualized using quarter-to-date
results.
(6)
Results on a constant currency
basis are not included as constant currency impact is not
significant.
(7)
Assumes a 21% tax rate.
(8)
Excludes MetLife Holdings; Value
of New Business is the present value of future profits net of the
cost of capital and time value of guarantees from new sales.
(9)
Adjustments include: (i) capital
contributions to subsidiaries; (ii) returns of capital from
subsidiaries; (iii) repayments on and (issuances of) loans to
subsidiaries, net; and (iv) investment portfolio and derivatives
changes and other, net.
(10)
Components include: (i) dividends
and returns of capital from subsidiaries; (ii) capital
contributions to subsidiaries; (iii) repayments on and (issuances
of) loans to subsidiaries, net; (iv) other expenses; (v) dividends
and returns of capital to MetLife, Inc. and (vi) investment
portfolio and derivatives changes and other, net.
(11)
Including the free cash flow of
other MetLife, Inc. holding companies of $0.1 billion and ($0.5)
billion for the years ended December 31, 2023 and 2022,
respectively, in the numerator of the ratio, this ratio, as
adjusted, would be 311% and 77%, respectively.
(12)
i) Consolidated adjusted earnings
available to common shareholders for the year ended December 31,
2023, was negatively impacted by notable items, related to
litigation reserves and settlement costs of ($0.1) billion, net of
income tax, offset by actuarial assumption review and other
insurance adjustments of $0.01 billion, net of income tax.
Excluding these notable items from the denominator of the ratio,
the adjusted free cash flow ratio for 2023, would be 65%.
ii) Consolidated adjusted
earnings available to common shareholders for the year ended
December 31, 2022, was positively impacted by notable items,
related to actuarial assumption review and other insurance
adjustments of $0.1 billion, net of income tax. Excluding these
notable items from the denominator of the ratio, the adjusted free
cash flow ratio for 2022, would be 82%.
(13)
The 2023 combined U.S. risk based
capital (RBC) ratio was approximately 400%, which is above
MetLife's 360% target on an NAIC basis. This ratio includes
MetLife, Inc.'s principal U.S. insurance subsidiaries, excluding
American Life Insurance Company. MetLife calculates RBC annually as
of December 31 and, accordingly, the calculation does not reflect
conditions and factors occurring after the year end.
(14)
The total U.S. statutory adjusted
capital is expected to be approximately $19.5 billion at December
31, 2023, up 10% from September 30, 2023. This balance includes
MetLife, Inc.'s principal U.S. insurance subsidiaries, excluding
American Life Insurance Company.
(15)
The expected Japan solvency
margin ratio as of December 31, 2023 is approximately 720%.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240131598615/en/
For Media: Dave Franecki (973) 264-7465,
Dave.Franecki@metlife.com For Investors: John Hall (212) 578-7888,
John.A.Hall@metlife.com
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