MetLife, Inc. (NYSE: MET) today reported the following results for the
first quarter of 2013:
MetLife reported operating earnings* of $1.6 billion, or $1.48 per
share, up 12% over the first quarter of 2012, reflecting growth in all
three business regions. Operating earnings in the Americas grew 12%,
Asia increased 11% (12% on a constant currency basis) and Europe, the
Middle East and Africa (EMEA) grew 21% (17% on a constant currency
basis).
First quarter 2013 operating earnings included the following items:
-
further adjustments to the lapse updates related to variable annuities
in the Americas’ Retail business, which benefited operating earnings
by $29 million, or $0.03 per share
-
variable investment income above the company’s 2013 quarterly plan
range by $22 million, or $0.02 per share, after tax and the impact of
deferred policy acquisition costs (DAC)
On a GAAP basis, MetLife reported first quarter 2013 net income of $956
million, or $0.87 per share, including $410 million, after tax, in net
derivative losses. MetLife uses derivatives as part of its broader
asset-liability management strategy to hedge certain risks, such as
movements in interest rates and foreign currencies. This hedging
activity often generates derivative gains or losses and creates
fluctuations in net income because the risk being hedged may not have
the same GAAP accounting treatment.
Premiums, fees & other revenues* were $11.8 billion, up 2% (4% on a
constant currency basis) over the first quarter of 2012. Excluding
pension closeout sales (which often fluctuate significantly from quarter
to quarter), total premiums, fees & other revenues grew 3%.
Book value, excluding accumulated other comprehensive income (AOCI), was
$47.37 per share, up 2% from the first quarter of 2012.
“MetLife had a very strong first quarter as all three of our business
regions contributed to a 12% increase in operating earnings over the
first quarter of 2012, and we generated an annualized operating return
on equity of 12.7%,” said Steven A. Kandarian, chairman, president and
chief executive officer of MetLife, Inc. “We continue to leverage the
strength of our diverse, global businesses, and remain committed to
delivering value for shareholders, as demonstrated by our previously
announced common stock dividend increase.”
FIRST QUARTER 2013 SUMMARY
($ in millions, except per share data)
|
|
For the three months ended March 31,
|
|
|
|
2013
|
|
2012
|
|
Change
|
Premiums, fees & other revenues
|
|
$
|
11,843
|
$
|
11,568
|
|
2
|
%
|
Total operating revenues
|
|
$
|
16,975
|
$
|
16,645
|
|
2
|
%
|
Net income (loss)
|
|
$
|
956
|
$
|
(174
|
)
|
–
|
|
Net income (loss) per share
|
|
$
|
0.87
|
$
|
(0.16
|
)
|
–
|
|
Operating earnings
|
|
$
|
1,635
|
$
|
1,464
|
|
12
|
%
|
Operating earnings per share
|
|
$
|
1.48
|
$
|
1.37
|
|
8
|
%
|
Book value per share
|
|
$
|
57.03
|
$
|
53.37
|
|
7
|
%
|
Book value per share, excluding AOCI
|
|
$
|
47.37
|
$
|
46.52
|
|
2
|
%
|
*Information regarding the non-GAAP financial measures
included in this press release and the reconciliation of these measures
to the most directly comparable GAAP measures is provided in the
Non-GAAP and Other Financial Disclosures discussion below, as well as in
the tables that accompany this release and/or the First Quarter 2013
Financial Supplement, which is available on the Investor Relations
section of www.metlife.com.
BUSINESS DISCUSSIONS
All comparisons of the results for the first quarter 2013 in the
business discussions that follow are with the first quarter of 2012,
unless otherwise noted. All comparisons on a constant currency basis are
calculated using the average foreign currency exchange rates for the
current period and are applied to the prior period.
THE AMERICAS
Total operating earnings for the Americas increased 12% to $1.3 billion,
driven by the Retail business. Premiums, fees & other revenues for the
Americas were $8.6 billion, up 4% primarily due to growth in Group,
Voluntary & Worksite Benefits. Excluding pension closeouts, premiums,
fees & other revenues for the Americas were up 5%.
Retail
Operating earnings for Retail were $626 million, up 33% due to higher
net investment income, an increase in fees, further adjustments to the
lapse updates related to variable annuities, and lower expenses.
Premiums, fees & other revenues for Retail were $3.0 billion, relatively
unchanged as an increase in fee income driven by higher equity markets
as well as higher individual disability and property/casualty premiums
were offset by lower lifetime income annuity premiums. First quarter
2013 variable annuity sales were $3.5 billion, down 29%.
Group, Voluntary & Worksite Benefits
Operating earnings for Group, Voluntary & Worksite Benefits were $230
million, down 5% as lower underwriting results in the group life
business more than offset higher interest margins and favorable
underwriting results in the dental business. Premiums, fees & other
revenues for Group, Voluntary & Worksite Benefits were $4.2 billion, up
8% due to growth in the dental business as well as favorable persistency
across the business.
Corporate Benefit Funding
Operating earnings for Corporate Benefit Funding were $299 million,
relatively unchanged from $298 million. While the first quarter of 2013
benefitted from improved interest margins, growth over the prior year
period was impacted by unusually strong underwriting results in the
first quarter of 2012. Premiums, fees & other revenues for Corporate
Benefit Funding were $605 million, down 3% as lower pension closeout
sales more than offset higher institutional income annuity sales.
Excluding pension closeouts, premiums, fees & other revenues were up 14%.
Latin America
Operating earnings for Latin America were $143 million, down 3% (2% on a
constant currency basis) as lower net investment income more than offset
business growth in several countries. Premiums, fees & other revenues in
Latin America were $904 million, up 2% (3% on a constant currency
basis). Total sales for the region increased 20%, driven by growth in
Mexico and in direct marketing channels across the region.
ASIA
Operating earnings for Asia were $333 million, up 11% (12% on a constant
currency basis) due to business growth, an increase in variable
investment income and higher fee income driven by increases in
policyholder surrenders for certain foreign currency fixed annuity
products in Japan. Premiums, fees & other revenues in Asia were $2.5
billion, up 2% (12% on a constant currency basis) due to business growth
in Korea and Australia as well as the aforementioned higher fee income.
Total sales for the region declined 13% primarily due to the continued
macro volatility in Japan, which more than offset growth in several
other countries, including India.
EMEA
Operating earnings for EMEA were $87 million, up 21% (17% on a constant
currency basis), reflecting business growth in several emerging markets;
the benefit of a tax-related item; the benefit of a reserve adjustment
in Greece; and continued expense discipline. EMEA premiums, fees & other
revenues were $685 million, down 11% (12% on a constant currency basis)
due to the previously announced exit from certain businesses in the U.K.
Total sales for the region increased 13% driven by strong growth in
emerging markets led by the Gulf, Russia and Turkey.
INVESTMENTS
Net investment income was $5.1 billion, up 1%. Variable investment
income was $337 million ($217 million, after tax and DAC), compared with
$239 million ($155 million, after tax and DAC) in the first quarter of
2012.
Investment portfolio net gains were $161 million, after tax, compared
with net losses of $145 million, after tax, in the first quarter of 2012.
Increases in interest rates, changes in foreign currencies and the
impact of MetLife’s credit spreads during the quarter contributed to
derivative net losses of $493 million, after tax and other adjustments.
Derivative net losses in the first quarter of 2012 were $1.3 billion,
after tax and other adjustments. Derivative gains or losses related to
MetLife’s credit spreads do not have an economic impact on the company.
CORPORATE & OTHER
Corporate & Other had an operating loss of $83 million, compared with an
operating loss of $67 million in the first quarter of 2012.
Conference Call
MetLife will hold its first quarter 2013 earnings conference call and
audio Webcast on Thursday, May 2, 2013, from 8:00 to 9:00 a.m. (ET). The
conference call will be available live via telephone and the Internet.
To listen over the telephone, dial (800) 230-1074 (U.S.) or (612)
288-0337 (outside the U.S.). To listen to the conference call over the
Internet, visit www.metlife.com
(through a link on the Investor Relations page). Those who want to
listen to the call on the telephone or via the Internet should dial in
or go to the Web site at least fifteen minutes prior to the call to
register, and/or download and install any necessary audio software.
The conference call will be available for replay via telephone and the
Internet beginning at 10:00 a.m. (ET) on Thursday, May 2, 2013, until
Thursday, May 9, 2013 at 11:59 p.m. (ET). To listen to a replay of the
conference call over the telephone, dial (320) 365-3844. The access code
for the replay is 277735. To access the replay of the conference call
over the Internet, visit the above-mentioned Web site.
About MetLife
MetLife, Inc. is a leading global provider of insurance, annuities and
employee benefit programs, serving 90 million customers. Through its
subsidiaries and affiliates, MetLife holds leading market positions in
the United States, Japan, Latin America, Asia, Europe and the Middle
East. For more information, visit www.metlife.com.
Non-GAAP and Other Financial Disclosures
Any references in this press release (except in this section and in the
tables that accompany this release) to net income (loss), net income
(loss) per share, operating earnings, operating earnings per share, book
value per share, book value per share, excluding AOCI, premiums, fees
and other revenues, and operating return on equity, should be read as
net income (loss) available to MetLife, Inc.’s common shareholders, net
income (loss) available to MetLife, Inc.’s common shareholders per
diluted common share, operating earnings available to common
shareholders, operating earnings available to common shareholders per
diluted common share, book value per common share, book value per common
share, excluding AOCI, premiums, fees and other revenues (operating),
and operating return on MetLife, Inc.’s common equity, excluding AOCI,
respectively.
Operating earnings is the measure of segment profit or loss that MetLife
uses to evaluate segment performance and allocate resources. Consistent
with accounting principles generally accepted in the United States of
America (GAAP) accounting guidance for segment reporting, operating
earnings is MetLife’s measure of segment performance. Operating earnings
is also a measure by which MetLife senior management’s and many other
employees’ performance is evaluated for the purposes of determining
their compensation under applicable compensation plans.
Operating earnings is defined as operating revenues less operating
expenses, both net of income tax. Operating earnings available to common
shareholders is defined as operating earnings less preferred stock
dividends.
Operating revenues and operating expenses exclude results of
discontinued operations and other businesses that have been or will be
sold or exited by MetLife. Operating revenues also excludes net
investment gains (losses) (NIGL) and net derivative gains (losses)
(NDGL). Operating expenses also excludes goodwill impairments.
The following additional adjustments are made to GAAP revenues, in the
line items indicated, in calculating operating revenues:
-
Universal life and investment-type product policy fees excludes the
amortization of unearned revenue related to NIGL and NDGL and certain
variable annuity guaranteed minimum income benefits (GMIB) fees (GMIB
fees);
-
Net investment income: (i) includes amounts for scheduled periodic
settlement payments and amortization of premium on derivatives that
are hedges of investments but do not qualify for hedge accounting
treatment, (ii) includes income from discontinued real estate
operations, (iii) excludes post-tax operating earnings adjustments
relating to insurance joint ventures accounted for under the equity
method, (iv) excludes certain amounts related to
contractholder-directed unit-linked investments, and (v) excludes
certain amounts related to securitization entities that are variable
interest entities (VIEs) consolidated under GAAP; and
-
Other revenues are adjusted for settlements of foreign currency
earnings hedges.
The following additional adjustments are made to GAAP expenses, in the
line items indicated, in calculating operating expenses:
-
Policyholder benefits and claims and policyholder dividends excludes:
(i) changes in the policyholder dividend obligation related to NIGL
and NDGL, (ii) inflation-indexed benefit adjustments associated with
contracts backed by inflation-indexed investments and amounts
associated with periodic crediting rate adjustments based on the total
return of a contractually referenced pool of assets, (iii) benefits
and hedging costs related to GMIBs (GMIB costs), and (iv) market value
adjustments associated with surrenders or terminations of contracts
(Market value adjustments);
-
Interest credited to policyholder account balances includes
adjustments for scheduled periodic settlement payments and
amortization of premium on derivatives that are hedges of policyholder
account balances but do not qualify for hedge accounting treatment and
excludes amounts related to net investment income earned on
contractholder-directed unit-linked investments;
-
Amortization of DAC and value of business acquired (VOBA) excludes
amounts related to: (i) NIGL and NDGL, (ii) GMIB fees and GMIB costs
and (iii) Market value adjustments;
-
Amortization of negative VOBA excludes amounts related to Market value
adjustments;
-
Interest expense on debt excludes certain amounts related to
securitization entities that are VIEs consolidated under GAAP; and
-
Other expenses excludes costs related to: (i) noncontrolling
interests, (ii) implementation of new insurance regulatory
requirements, and (iii) acquisition and integration costs.
Operating earnings also excludes the recognition of certain contingent
assets and liabilities that could not be recognized at acquisition or
adjusted for during the measurement period under GAAP business
combination accounting guidance.
MetLife believes the presentation of operating earnings and operating
earnings available to common shareholders as MetLife measures it for
management purposes enhances the understanding of the company’s
performance by highlighting the results of operations and the underlying
profitability drivers of the business. Operating revenues, operating
expenses, operating earnings, operating earnings available to common
shareholders, operating earnings available to common shareholders per
diluted common share, book value per common share, excluding AOCI, book
value per diluted common share, excluding AOCI, operating return on
MetLife, Inc.’s common equity, operating return on MetLife, Inc.’s
common equity, excluding AOCI, investment portfolio gains (losses) and
derivative gains (losses) should not be viewed as substitutes for the
following financial measures calculated in accordance with GAAP: GAAP
revenues, GAAP expenses, income (loss) from continuing operations, net
of income tax, net income (loss) available to MetLife, Inc.’s common
shareholders, net income (loss) available to MetLife, Inc.’s common
shareholders per diluted common share, book value per common share, book
value per diluted common share, return on MetLife, Inc.’s common equity,
return on MetLife, Inc.’s common equity, excluding AOCI, net investment
gains (losses) and net derivative gains (losses), respectively.
Reconciliations of these measures to the most directly comparable GAAP
measures are included in the First Quarter 2013 Financial Supplement
and/or in the tables that accompany this earnings press release.
Operating return on MetLife, Inc.’s common equity is defined as
operating earnings available to common shareholders divided by average
GAAP common equity.
Operating expense ratio is calculated by dividing operating expenses
(other expenses, net of capitalization of DAC) by operating premiums,
fees and other revenues.
Statistical sales information for life insurance is calculated by
MetLife using the LIMRA International, Inc. definition of sales for core
direct sales, excluding company sponsored internal exchanges,
corporate-owned life insurance, bank-owned life insurance, and private
placement variable universal life insurance. Individual annuities sales
consists of statutory premiums direct and assumed, excluding company
sponsored internal exchanges.
Forward-Looking Statements
This press release may contain or incorporate by reference information
that includes or is based upon forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements give expectations or forecasts of future
events. These statements can be identified by the fact that they do not
relate strictly to historical or current facts. They use words such as
“anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,”
“believe” and other words and terms of similar meaning in connection
with a discussion of future operating or financial performance. In
particular, these include statements relating to future actions,
prospective services or products, future performance or results of
current and anticipated services or products, sales efforts, expenses,
the outcome of contingencies such as legal proceedings, trends in
operations and financial results.
Any or all forward-looking statements may turn out to be wrong. They can
be affected by inaccurate assumptions or by known or unknown risks and
uncertainties. Many such factors will be important in determining the
actual future results of MetLife, Inc., its subsidiaries and affiliates.
These statements are based on current expectations and the current
economic environment. They involve a number of risks and uncertainties
that are difficult to predict. These statements are not guarantees of
future performance. Actual results could differ materially from those
expressed or implied in the forward-looking statements. Risks,
uncertainties, and other factors that might cause such differences
include the risks, uncertainties and other factors identified in
MetLife, Inc.’s filings with the U.S. Securities and Exchange Commission
(the “SEC”). These factors include: (1) difficult conditions in the
global capital markets; (2) increased volatility and disruption of the
capital and credit markets, which may affect our ability to meet
liquidity needs and access capital, including through our credit
facilities, generate fee income and market-related revenue and finance
statutory reserve requirements and may require us to pledge collateral
or make payments related to declines in value of specified assets; (3)
exposure to financial and capital market risk, including as a result of
the disruption in Europe and possible withdrawal of one or more
countries from the Euro zone; (4) impact of comprehensive financial
services regulation reform on us, as a potential non-bank systemically
important financial institution, or otherwise; (5) numerous rulemaking
initiatives required or permitted by the Dodd-Frank Wall Street Reform
and Consumer Protection Act which may impact how we conduct our
business, including those compelling the liquidation of certain
financial institutions; (6) regulatory, legislative or tax changes
relating to our insurance, international, or other operations that may
affect the cost of, or demand for, our products or services, or increase
the cost or administrative burdens of providing benefits to employees;
(7) adverse results or other consequences from litigation, arbitration
or regulatory investigations; (8) potential liquidity and other risks
resulting from our participation in a securities lending program and
other transactions; (9) investment losses and defaults, and changes to
investment valuations; (10) changes in assumptions related to investment
valuations, deferred policy acquisition costs, deferred sales
inducements, value of business acquired or goodwill; (11) impairments of
goodwill and realized losses or market value impairments to illiquid
assets; (12) defaults on our mortgage loans; (13) the defaults or
deteriorating credit of other financial institutions that could
adversely affect us; (14) economic, political, legal, currency and other
risks relating to our international operations, including with respect
to fluctuations of exchange rates; (15) downgrades in our claims paying
ability, financial strength or credit ratings; (16) a deterioration in
the experience of the “closed block” established in connection with the
reorganization of Metropolitan Life Insurance Company; (17) availability
and effectiveness of reinsurance or indemnification arrangements, as
well as any default or failure of counterparties to perform; (18)
differences between actual claims experience and underwriting and
reserving assumptions; (19) ineffectiveness of risk management policies
and procedures; (20) catastrophe losses; (21) increasing cost and
limited market capacity for statutory life insurance reserve financings;
(22) heightened competition, including with respect to pricing, entry of
new competitors, consolidation of distributors, the development of new
products by new and existing competitors, and for personnel; (23)
exposure to losses related to variable annuity guarantee benefits,
including from significant and sustained downturns or extreme volatility
in equity markets, reduced interest rates, unanticipated policyholder
behavior, mortality or longevity, and the adjustment for nonperformance
risk; (24) our ability to address unforeseen liabilities, asset
impairments, or rating actions arising from acquisitions or
dispositions, including our acquisition of American Life Insurance
Company and Delaware American Life Insurance Company (collectively,
“ALICO”) and to successfully integrate and manage the growth of acquired
businesses with minimal disruption; (25) uncertainty with respect to the
outcome of the closing agreement entered into with the United States
Internal Revenue Service in connection with the acquisition of ALICO;
(26) the dilutive impact on our stockholders resulting from the
settlement of our outstanding common equity units; (27) regulatory and
other restrictions affecting MetLife, Inc.’s ability to pay dividends
and repurchase common stock; (28) MetLife, Inc.’s primary reliance, as a
holding company, on dividends from its subsidiaries to meet debt payment
obligations and the applicable regulatory restrictions on the ability of
the subsidiaries to pay such dividends; (29) the possibility that
MetLife, Inc.’s Board of Directors may control the outcome of
stockholder votes through the voting provisions of the MetLife
Policyholder Trust; (30) changes in accounting standards, practices
and/or policies; (31) increased expenses relating to pension and
postretirement benefit plans, as well as health care and other employee
benefits; (32) inability to protect our intellectual property rights or
claims of infringement of the intellectual property rights of others;
(33) inability to attract and retain sales representatives; (34)
provisions of laws and our incorporation documents may delay, deter or
prevent takeovers and corporate combinations involving MetLife; (35) the
effects of business disruption or economic contraction due to disasters
such as terrorist attacks, cyberattacks, other hostilities, or natural
catastrophes, including any related impact on the value of our
investment portfolio, our disaster recovery systems, cyber- or other
information security systems and management continuity planning; (36)
the effectiveness of our programs and practices in avoiding giving our
associates incentives to take excessive risks; and (37) other risks and
uncertainties described from time to time in MetLife, Inc.’s filings
with the SEC.
MetLife, Inc. does not undertake any obligation to publicly correct or
update any forward-looking statement if MetLife, Inc. later becomes
aware that such statement is not likely to be achieved. Please consult
any further disclosures MetLife, Inc. makes on related subjects in
reports to the SEC.
MetLife, Inc.
|
Consolidated Statements of Operating Earnings Available to Common
Shareholders
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
|
|
March 31,
|
|
|
|
2013
|
|
2012
|
|
|
|
(In millions)
|
OPERATING REVENUES
|
|
|
|
Premiums
|
$
|
9,151
|
|
|
$
|
9,107
|
|
Universal life and investment-type product policy fees
|
|
2,211
|
|
|
|
2,009
|
|
Net investment income
|
|
5,132
|
|
|
|
5,077
|
|
Other revenues
|
|
481
|
|
|
|
452
|
|
|
Total operating revenues
|
|
16,975
|
|
|
|
16,645
|
|
|
|
|
|
|
|
OPERATING EXPENSES
|
|
|
|
Policyholder benefits and claims and policyholder dividends
|
|
9,106
|
|
|
|
8,939
|
|
Interest credited to policyholder account balances
|
|
1,554
|
|
|
|
1,539
|
|
Capitalization of DAC
|
|
(1,256
|
)
|
|
|
(1,362
|
)
|
Amortization of DAC and VOBA
|
|
1,016
|
|
|
|
1,018
|
|
Amortization of negative VOBA
|
|
(131
|
)
|
|
|
(137
|
)
|
Interest expense on debt
|
|
288
|
|
|
|
315
|
|
Other expenses
|
|
4,087
|
|
|
|
4,243
|
|
|
Total operating expenses
|
|
14,664
|
|
|
|
14,555
|
|
|
|
|
|
|
|
Operating earnings before provision for income tax
|
|
2,311
|
|
|
|
2,090
|
|
Provision for income tax expense (benefit)
|
|
646
|
|
|
|
596
|
|
Operating earnings
|
|
1,665
|
|
|
|
1,494
|
|
Preferred stock dividends
|
|
30
|
|
|
|
30
|
|
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
|
$
|
1,635
|
|
|
$
|
1,464
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation to Net Income (Loss) and Financial Statement
Line Item Adjustments from GAAP
|
|
|
|
Operating earnings
|
$
|
1,665
|
|
|
$
|
1,494
|
|
Adjustments from operating earnings to income (loss) from continuing
operations:
|
|
|
|
|
Net investment gains (losses) (1)
|
|
314
|
|
|
|
(110
|
)
|
|
Net derivative gains (losses)
|
|
(630
|
)
|
|
|
(1,978
|
)
|
|
Premiums
|
|
-
|
|
|
|
22
|
|
|
Universal life and investment-type product policy fees
|
|
80
|
|
|
|
69
|
|
|
Net investment income
|
|
945
|
|
|
|
1,123
|
|
|
Other revenues
|
|
(1
|
)
|
|
|
145
|
|
|
Policyholder benefits and claims and policyholder dividends
|
|
(602
|
)
|
|
|
(508
|
)
|
|
Interest credited to policyholder account balances
|
|
(1,036
|
)
|
|
|
(1,018
|
)
|
|
Capitalization of DAC
|
|
-
|
|
|
|
2
|
|
|
Amortization of DAC and VOBA
|
|
192
|
|
|
|
304
|
|
|
Amortization of negative VOBA
|
|
15
|
|
|
|
18
|
|
|
Interest expense on debt
|
|
(33
|
)
|
|
|
(43
|
)
|
|
Other expenses (1)
|
|
(308
|
)
|
|
|
(525
|
)
|
|
Provision for income tax (expense) benefit (1)
|
|
394
|
|
|
|
871
|
|
Income (loss) from continuing operations, net of income tax
|
|
995
|
|
|
|
(134
|
)
|
Income (loss) from discontinued operations, net of income tax
|
|
(3
|
)
|
|
|
14
|
|
Net income (loss)
|
|
992
|
|
|
|
(120
|
)
|
Less: Net income (loss) attributable to noncontrolling interests
|
|
6
|
|
|
|
24
|
|
Net income (loss) attributable to MetLife, Inc.
|
|
986
|
|
|
|
(144
|
)
|
Less: Preferred stock dividends
|
|
30
|
|
|
|
30
|
|
Net income (loss) available to MetLife, Inc.'s common shareholders
|
$
|
956
|
|
|
$
|
(174
|
)
|
|
|
|
|
|
|
See footnotes on last page.
|
|
|
|
MetLife, Inc.
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
|
|
March 31,
|
|
|
|
2013
|
|
|
2012
|
|
|
|
|
|
Earnings Per Weighted Average Common Shares Diluted (2)
|
|
|
Earnings Per Weighted Average Common Shares Diluted (2), (3)
|
|
|
|
(In millions, except per share data)
|
Reconciliation to Net Income (Loss) Available to MetLife, Inc.'s
Common Shareholders
|
|
|
|
|
|
|
|
Operating earnings available to common shareholders
|
$
|
1,635
|
|
|
$
|
1.48
|
|
|
$
|
1,464
|
|
|
$
|
1.37
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments from operating earnings available to common shareholders
to net income (loss) available
|
|
|
|
|
|
|
|
to MetLife, Inc.'s common shareholders:
|
|
|
|
|
|
|
|
|
Add: Net investment gains (losses) (1)
|
|
314
|
|
|
|
0.28
|
|
|
|
(110
|
)
|
|
|
(0.10
|
)
|
|
Add: Net derivative gains (losses)
|
|
(630
|
)
|
|
|
(0.57
|
)
|
|
|
(1,978
|
)
|
|
|
(1.85
|
)
|
|
Add: Other adjustments to continuing operations (1)
|
|
(748
|
)
|
|
|
(0.67
|
)
|
|
|
(411
|
)
|
|
|
(0.38
|
)
|
|
Add: Provision for income tax (expense) benefit (1)
|
|
394
|
|
|
|
0.36
|
|
|
|
871
|
|
|
|
0.81
|
|
|
Add: Income (loss) from discontinued operations, net of income tax
|
|
(3
|
)
|
|
|
-
|
|
|
|
14
|
|
|
|
0.01
|
|
|
Less: Net income (loss) attributable to noncontrolling interests
|
|
6
|
|
|
|
0.01
|
|
|
|
24
|
|
|
|
0.02
|
|
Net income (loss) available to MetLife, Inc.'s common shareholders
|
$
|
956
|
|
|
$
|
0.87
|
|
|
$
|
(174
|
)
|
|
$
|
(0.16
|
)
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding - diluted
|
|
|
|
1,103.9
|
|
|
|
|
|
1,070.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
(In millions)
|
Reconciliation to GAAP Premiums, Fees and Other Revenues
|
|
|
|
|
|
|
|
Total operating premiums, fees and other revenues
|
|
|
|
|
$
|
11,843
|
|
|
$
|
11,568
|
|
Add: Adjustments to premiums, fees and other revenues
|
|
|
|
|
|
79
|
|
|
|
236
|
|
Total premiums, fees and other revenues
|
|
|
|
|
$
|
11,922
|
|
|
$
|
11,804
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation to GAAP Revenues and GAAP Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating revenues
|
|
|
|
|
$
|
16,975
|
|
|
$
|
16,645
|
|
Add: Net investment gains (losses) (1)
|
|
|
|
|
|
314
|
|
|
|
(110
|
)
|
Add: Net derivative gains (losses)
|
|
|
|
|
|
(630
|
)
|
|
|
(1,978
|
)
|
Add: Adjustments related to net investment gains (losses) and net
derivative gains (losses)
|
|
|
|
|
|
(3
|
)
|
|
|
(6
|
)
|
Add: Other adjustments to revenues
|
|
|
|
|
|
1,027
|
|
|
|
1,365
|
|
Total revenues
|
|
|
|
|
$
|
17,683
|
|
|
$
|
15,916
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses
|
|
|
|
|
$
|
14,664
|
|
|
$
|
14,555
|
|
Add: Adjustments related to net investment gains (losses) and net
derivative gains (losses)
|
|
|
|
|
|
(78
|
)
|
|
|
(192
|
)
|
Add: Other adjustments to expenses (1)
|
|
|
|
|
|
1,850
|
|
|
|
1,962
|
|
Total expenses
|
|
|
|
|
$
|
16,436
|
|
|
$
|
16,325
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
Book Value Per Common Share (4)
|
|
|
|
|
2013
|
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
Book value per common share, excluding accumulated other
comprehensive
|
|
|
|
|
|
|
|
|
income (loss) - (actual common shares outstanding)
|
|
|
|
|
$
|
47.37
|
|
|
$
|
46.52
|
|
Add: Accumulated other comprehensive income (loss) per common share
|
|
|
|
|
|
9.66
|
|
|
|
6.85
|
|
Book value per common share - (actual common shares outstanding)
|
|
|
|
|
$
|
57.03
|
|
|
$
|
53.37
|
|
|
|
|
|
|
|
|
|
|
|
Common shares outstanding, end of period (in millions)
|
|
|
|
|
|
1,094.2
|
|
|
|
1,060.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on MetLife, Inc.'s Common Equity (5)
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
March 31,
|
|
|
|
|
|
|
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating return on MetLife, Inc.'s common equity, excluding
accumulated other comprehensive income (loss) (6)
|
|
|
|
|
12.7
|
%
|
|
|
Operating return on MetLife, Inc.'s common equity (6)
|
|
|
|
|
10.5
|
%
|
|
|
Return on MetLife, Inc.'s common equity, excluding accumulated other
comprehensive income (loss) (7)
|
|
|
|
|
7.4
|
%
|
|
|
Return on MetLife, Inc.'s common equity (7)
|
|
|
|
|
6.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
See footnotes on last page.
|
|
|
|
|
|
|
|
MetLife, Inc.
|
Reconciliations to Net Income (Loss) Available to Common
Shareholders
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
|
|
|
March 31,
|
|
|
|
|
2013
|
|
2012
|
|
|
|
|
(In millions)
|
Total Americas Operations:
|
|
|
|
|
|
|
Operating earnings available to common shareholders
|
|
$ 1,298
|
|
$ 1,158
|
|
|
Add: Net investment gains (losses)
|
|
112
|
|
(35)
|
|
|
Add: Net derivative gains (losses)
|
|
(171)
|
|
(1,107)
|
|
|
Add: Other adjustments to continuing operations
|
|
(337)
|
|
(190)
|
|
|
Add: Provision for income tax (expense) benefit
|
|
138
|
|
466
|
|
|
Add: Income (loss) from discontinued operations, net of income tax
|
|
-
|
|
14
|
|
|
Net income (loss) available to MetLife, Inc.'s common shareholders
|
|
$ 1,040
|
|
$ 306
|
|
|
|
|
|
|
|
Retail:
|
|
|
|
|
|
|
Operating earnings available to common shareholders
|
|
$ 626
|
|
$ 469
|
|
|
Add: Net investment gains (losses)
|
|
73
|
|
67
|
|
|
Add: Net derivative gains (losses)
|
|
(156)
|
|
(526)
|
|
|
Add: Other adjustments to continuing operations
|
|
(264)
|
|
(106)
|
|
|
Add: Provision for income tax (expense) benefit
|
|
122
|
|
198
|
|
|
Add: Income (loss) from discontinued operations, net of income tax
|
|
-
|
|
10
|
|
|
Net income (loss) available to MetLife, Inc.'s common shareholders
|
|
$ 401
|
|
$ 112
|
|
|
|
|
|
|
|
Group, Voluntary & Worksite Benefits:
|
|
|
|
|
|
|
Operating earnings available to common shareholders
|
|
$ 230
|
|
$ 243
|
|
|
Add: Net investment gains (losses)
|
|
17
|
|
(7)
|
|
|
Add: Net derivative gains (losses)
|
|
(129)
|
|
(375)
|
|
|
Add: Other adjustments to continuing operations
|
|
(40)
|
|
(36)
|
|
|
Add: Provision for income tax (expense) benefit
|
|
53
|
|
147
|
|
|
Net income (loss) available to MetLife, Inc.'s common shareholders
|
|
$ 131
|
|
$ (28)
|
|
|
|
|
|
|
|
Corporate Benefit Funding:
|
|
|
|
|
|
|
Operating earnings available to common shareholders
|
|
$ 299
|
|
$ 298
|
|
|
Add: Net investment gains (losses)
|
|
22
|
|
(98)
|
|
|
Add: Net derivative gains (losses)
|
|
105
|
|
(243)
|
|
|
Add: Other adjustments to continuing operations
|
|
32
|
|
21
|
|
|
Add: Provision for income tax (expense) benefit
|
|
(56)
|
|
111
|
|
|
Add: Income (loss) from discontinued operations, net of income tax
|
|
-
|
|
4
|
|
|
Net income (loss) available to MetLife, Inc.'s common shareholders
|
|
$ 402
|
|
$ 93
|
|
|
|
|
|
|
|
Latin America:
|
|
|
|
|
|
|
Operating earnings available to common shareholders
|
|
$ 143
|
|
$ 148
|
|
|
Add: Net investment gains (losses)
|
|
-
|
|
3
|
|
|
Add: Net derivative gains (losses)
|
|
9
|
|
37
|
|
|
Add: Other adjustments to continuing operations
|
|
(65)
|
|
(69)
|
|
|
Add: Provision for income tax (expense) benefit
|
|
19
|
|
10
|
|
|
Net income (loss) available to MetLife, Inc.'s common shareholders
|
|
$ 106
|
|
$ 129
|
|
|
|
|
|
|
|
Asia:
|
|
|
|
|
|
|
|
|
Operating earnings available to common shareholders
|
|
$ 333
|
|
$ 301
|
|
|
Add: Net investment gains (losses) (1)
|
|
128
|
|
(78)
|
|
|
Add: Net derivative gains (losses)
|
|
(552)
|
|
(30)
|
|
|
Add: Other adjustments to continuing operations
|
|
(269)
|
|
(2)
|
|
|
Add: Provision for income tax (expense) benefit (1)
|
|
283
|
|
53
|
|
|
Add: Income (loss) from discontinued operations, net of income tax
|
|
(3)
|
|
-
|
|
|
Less: Net income (loss) attributable to noncontrolling interests
|
|
4
|
|
7
|
|
|
Net income (loss) available to MetLife, Inc.'s common shareholders
|
|
$ (84)
|
|
$ 237
|
|
|
|
|
|
|
|
EMEA:
|
|
|
|
|
|
|
|
Operating earnings available to common shareholders
|
|
$ 87
|
|
$ 72
|
|
|
Add: Net investment gains (losses)
|
|
16
|
|
(18)
|
|
|
Add: Net derivative gains (losses)
|
|
(6)
|
|
29
|
|
|
Add: Other adjustments to continuing operations
|
|
8
|
|
14
|
|
|
Add: Provision for income tax (expense) benefit
|
|
(22)
|
|
(22)
|
|
|
Less: Net income (loss) attributable to noncontrolling interests
|
|
2
|
|
17
|
|
|
Net income (loss) available to MetLife, Inc.'s common shareholders
|
|
$ 81
|
|
$ 58
|
|
|
|
|
|
|
|
Corporate & Other:
|
|
|
|
|
|
|
Operating earnings available to common shareholders
|
|
$ (83)
|
|
$ (67)
|
|
|
Add: Net investment gains (losses)
|
|
58
|
|
21
|
|
|
Add: Net derivative gains (losses)
|
|
99
|
|
(870)
|
|
|
Add: Other adjustments to continuing operations
|
|
(150)
|
|
(233)
|
|
|
Add: Provision for income tax (expense) benefit
|
|
(5)
|
|
374
|
|
|
Net income (loss) available to MetLife, Inc.'s common shareholders
|
|
$ (81)
|
|
$ (775)
|
|
|
|
|
|
|
|
See footnotes on last page.
|
|
|
|
|
MetLife, Inc.
|
GAAP Interim Condensed Consolidated Statements of Operations
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
|
|
March 31,
|
|
|
|
2013
|
|
2012
|
|
|
|
|
|
|
Revenues
|
|
|
|
Premiums
|
$
|
9,151
|
|
|
$
|
9,129
|
|
Universal life and investment-type product policy fees
|
|
2,291
|
|
|
|
2,078
|
|
Net investment income
|
|
6,077
|
|
|
|
6,200
|
|
Other revenues
|
|
480
|
|
|
|
597
|
|
Net investment gains (losses):
|
|
|
|
|
Other-than-temporary impairments on fixed maturity securities
|
|
(29
|
)
|
|
|
(135
|
)
|
|
Other-than-temporary impairments on fixed maturity securities
|
|
|
|
|
|
transferred to other comprehensive income (loss)
|
|
(31
|
)
|
|
|
2
|
|
|
Other net investment gains (losses) (1)
|
|
374
|
|
|
|
23
|
|
|
|
Total net investment gains (losses)
|
|
314
|
|
|
|
(110
|
)
|
|
Net derivative gains (losses)
|
|
(630
|
)
|
|
|
(1,978
|
)
|
|
|
Total revenues
|
|
17,683
|
|
|
|
15,916
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
Policyholder benefits and claims
|
|
9,395
|
|
|
|
9,104
|
|
Interest credited to policyholder account balances
|
|
2,590
|
|
|
|
2,557
|
|
Policyholder dividends
|
|
313
|
|
|
|
343
|
|
Other expenses (1)
|
|
4,138
|
|
|
|
4,321
|
|
|
|
Total expenses
|
|
16,436
|
|
|
|
16,325
|
|
|
|
|
|
|
|
Income (loss) from continuing operations before provision for income
tax
|
|
1,247
|
|
|
|
(409
|
)
|
Provision for income tax expense (benefit) (1)
|
|
252
|
|
|
|
(275
|
)
|
Income (loss) from continuing operations, net of income tax
|
|
995
|
|
|
|
(134
|
)
|
Income (loss) from discontinued operations, net of income tax
|
|
(3
|
)
|
|
|
14
|
|
Net income (loss)
|
|
992
|
|
|
|
(120
|
)
|
Less: Net income (loss) attributable to noncontrolling interests
|
|
6
|
|
|
|
24
|
|
Net income (loss) attributable to MetLife, Inc.
|
|
986
|
|
|
|
(144
|
)
|
Less: Preferred stock dividends
|
|
30
|
|
|
|
30
|
|
Net income (loss) available to MetLife, Inc.'s common shareholders
|
$
|
956
|
|
|
$
|
(174
|
)
|
(1)
|
|
For the three months ended March 31, 2013, a net investment gain of
$11 million, an expense of $154 million and a tax benefit of $119
million related to a settlement of an acquisition tax contingency
are included.
|
|
|
|
|
|
(2)
|
|
For the three months ended March 31, 2013 and 2012, all shares
related to the assumed issuance of shares in settlement of the
applicable purchase contracts of the common equity units have been
excluded from the weighted average common shares outstanding -
diluted, as these assumed shares would be anti-dilutive to operating
earnings available to common shareholders per common share - diluted
and net income available to MetLife, Inc.’s common shareholders per
common share - diluted.
|
|
|
|
|
|
|
|
|
|
(3)
|
|
For the three months ended March 31, 2012, 6.6 million shares
related to the assumed exercise or issuance of stock-based awards
are excluded from the weighted average common shares outstanding -
diluted, as to include these assumed shares would be anti-dilutive
to net income (loss) available to MetLife, Inc.'s common
shareholders per common share - diluted. These shares were included
in the calculation of operating earnings available to common
shareholders per common share - diluted.
|
|
|
|
|
|
|
|
|
|
(4)
|
|
Book value per common share and book value per common share,
excluding accumulated other comprehensive income (loss), exclude
$2,043 million of equity related to preferred stock.
|
|
|
|
|
|
(5)
|
|
Annualized using year-to-date results.
|
|
|
|
(6)
|
|
Operating return on MetLife, Inc.'s common equity is defined as
operating earnings available to common shareholders divided by
average GAAP common equity.
|
|
|
|
|
|
(7)
|
|
Return on MetLife, Inc.'s common equity is defined as net income
available to common shareholders divided by average GAAP common
equity.
|