MetLife, Inc. (NYSE:MET) today reported the following results for the
third quarter of 2013:
MetLife reported operating earnings* of $1.5 billion, up 6% over the
third quarter of 2012. On a per share basis, operating earnings were
$1.34, up 2% over the prior year quarter. Growth on a per share basis
was dampened by the increase in the common share count resulting from
the conversion of equity units issued in 2010 to fund the Alico
acquisition. Operating earnings in the Americas grew 7%. Operating
earnings in Asia decreased 1% on a reported basis, but increased 7% on a
constant currency basis. Operating earnings in Europe, the Middle East
and Africa (EMEA) increased 37% on a reported basis and 28% on a
constant currency basis.
Third quarter 2013 operating earnings included the following items:
-
strengthening of group total and permanent disability claim reserves
in Australia, net of reinsurance, which reduced operating earnings by
$57 million or $0.05 per share
-
results of the annual actuarial assumption review, which increased
operating earnings by $28 million or $0.03 per share
-
favorable catastrophe experience and prior year loss reserve
development, which increased operating earnings by $21 million
relative to plan, or $0.02 per share
MetLife reported third quarter 2013 net income of $942 million, or $0.84
per share, including $355 million, after tax, in net derivative losses.
Increases in interest rates, changes in foreign currencies and the
impact of MetLife’s own credit during the quarter contributed to the 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. Net income also reflects a total
after tax charge of $69 million related to the annual actuarial
assumption review.
Premiums, fees & other revenues* were $11.9 billion, up 3% (6% on a
constant currency basis) over the third quarter of 2012.
Book value excluding accumulated other comprehensive income (AOCI) * was
$47.99 per share, up slightly from $47.70 in the third quarter of 2012.
“MetLife’s third quarter results reflect continued growth in emerging
markets, solid performance in the United States, and disciplined expense
management,” said Steven A. Kandarian, chairman, president and chief
executive officer of MetLife, Inc. “We are supplementing strong organic
growth in emerging markets with acquisitions such as Provida, the
largest pension provider in Chile, which closed earlier this month. We
continue to shift our business toward lower-risk, protection-oriented
products as we focus on providing long-term value for our shareholders.”
THIRD QUARTER 2013 SUMMARY
|
($ in millions, except per share data)
|
|
For the three months ended September 30,
|
|
|
2013
|
|
2012
|
|
Change
|
Premiums, fees & other revenues
|
|
$
|
11,856
|
|
$
|
11,563
|
|
|
3%
|
Total operating revenues
|
|
$
|
16,899
|
|
$
|
16,611
|
|
|
2%
|
Net income
|
|
$
|
942
|
|
$
|
(984
|
)
|
|
–
|
Net income per share
|
|
$
|
0.84
|
|
$
|
(0.92
|
)
|
|
–
|
Operating earnings
|
|
$
|
1,500
|
|
$
|
1,417
|
|
|
6%
|
Operating earnings per share
|
|
$
|
1.34
|
|
$
|
1.32
|
|
|
2%
|
Book value per share
|
|
$
|
52.54
|
|
$
|
58.35
|
|
|
(10%)
|
Book value per share, excluding AOCI
|
|
$
|
47.99
|
|
$
|
47.70
|
|
|
0.6%
|
*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 Third 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 third quarter of 2013 in the
business discussions that follow are with the third quarter of 2012,
unless otherwise noted. All comparisons on a constant currency basis,
including total sales, 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 7% to $1.3 billion,
driven by strong results in the United States. Premiums, fees & other
revenues for the Americas were $8.7 billion, up 4%, primarily driven by
results in Latin America, Corporate Benefit Funding and Retail.
Retail
Operating earnings for Retail were $659 million, up 34%, due to fee
growth driven by favorable market performance, disciplined expense
management and the results of the annual actuarial assumption review.
Premiums, fees & other revenues for Retail were $3.1 billion, up 6%,
driven by separate account annuity fee growth, broker dealer annuity
sales, and increased property & casualty sales. Third quarter 2013
variable annuity sales were $2.7 billion, down 41%.
Group, Voluntary & Worksite Benefits
Operating earnings for Group, Voluntary & Worksite Benefits were $226
million, down 20%, driven by lower underwriting results in group life
and disability, caused by higher average claim size. Premiums, fees &
other revenues for Group, Voluntary & Worksite Benefits were $4.0
billion, up 1%.
Corporate Benefit Funding
Operating earnings for Corporate Benefit Funding were $300 million, down
1%, with higher interest margins offset by lower underwriting income and
higher expenses. Premiums, fees & other revenues for Corporate Benefit
Funding were $612 million, up 8%, due to higher U.S. pension closeouts
and structured settlement sales, offset by lower U.K. closeouts and
income annuities.
Latin America
Operating earnings for Latin America were $133 million, down 13% (8% on
a constant currency basis), reflecting one-time adjustments,
particularly in the prior year. Premiums, fees & other revenues in Latin
America were $914 million, up 14% (17% on a constant currency basis).
Total sales increased 4%, reflecting the positive impact of group life
growth in Chile and an increase in direct marketing sales in Argentina.
ASIA
Operating earnings for Asia were $257 million, down 1% on a reported
basis, but up 7% on a constant currency basis. Operating earnings
included some noteworthy items, representing a net charge of $47
million, including a charge related to the strengthening of group life
total and permanent disability reserves in Australia, net of
reinsurance, which has emerged as an industry-wide issue. Adjusted for
these items, operating earnings are up 17%. Premiums, fees and other
revenues in Asia were $2.4 billion, down 5% on a reported basis, but up
12% on a constant currency basis, supported by continued improvement in
product persistency. Total sales for the region were flat from the year
ago period at $899 million.
EMEA
Operating earnings for EMEA were $85 million, up 37% on a reported basis
and 28% on a constant currency basis driven by business growth, expense
discipline and certain one-time items. Premiums, fees & other revenues
were $707 million, up 8% (6% on a constant currency basis), and sales
for the region increased 10%, driven by strong growth in emerging
markets.
INVESTMENTS
Net investment income was relatively unchanged at $5.0 billion. Variable
investment income was $236 million ($153 million, after tax and DAC),
compared with $260 million ($165 million, after tax and DAC) in the
third quarter of 2012.
Investment portfolio net losses were $10 million, after tax, compared
with net gains of $43 million, after tax, in the third quarter of 2012.
Increases in interest rates, changes in foreign currencies and the
impact of MetLife’s own credit during the quarter contributed to
derivative net losses of $476 million, after tax and other adjustments.
Derivative net losses in the third quarter of 2012 were $543 million,
after tax and other adjustments. Derivative gains or losses related to
MetLife’s own credit do not have an economic impact on the company.
CORPORATE & OTHER
Corporate & Other had an operating loss of $160 million, compared with
an operating loss of $134 million in the third quarter of 2012,
primarily due to lower investment income.
Conference Call
MetLife will hold its third quarter 2013 earnings conference call and
audio Webcast on Thursday, Oct. 31, 2013, from 8:00 to 9:00 a.m. (EDT).
The conference call will be available live via telephone and the
Internet. To listen via telephone, dial (800) 230-1074 (U.S.) or (612)
288-0337 (outside the U.S.). To listen to the conference call via the
Internet, visit www.metlife.com
(through a link on the Investor Relations page). Those who want to
listen to the call via telephone or the Internet should dial in or go to
the website at least 15 minutes prior to the call to register, and/or
download and install any necessary audio software.
The conference call will be available for replay via telephone and the
Internet beginning at 10:00 a.m. (EDT) on Thursday, Oct. 31, 2013, until
Thursday, Nov. 7, 2013 at 11:59 p.m. (EST). To listen to a replay of the
conference call via telephone, dial (800) 475-6701 (U.S.) or (320)
365-3844 (outside the U.S.). The access code for the replay is 277737.
To access the replay of the conference call via the Internet, visit the
above-mentioned website.
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 or that are used to replicate certain
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 contract holder-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 contract
holder-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 Third 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,
including assets supporting risks ceded to certain of our captive
reinsurers or hedging arrangements associated with those risks; (3)
exposure to financial and capital market risks, 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 and to successfully
integrate and manage the growth of acquired businesses with minimal
disruption; (25) the dilutive impact on our stockholders resulting from
the settlement of our outstanding common equity units; (26) regulatory
and other restrictions affecting MetLife, Inc.’s ability to pay
dividends and repurchase common stock; (27) 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; (28) 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; (29) changes in accounting standards,
practices and/or policies; (30) increased expenses relating to pension
and postretirement benefit plans, as well as health care and other
employee benefits; (31) inability to protect our intellectual property
rights or claims of infringement of the intellectual property rights of
others; (32) inability to attract and retain sales representatives; (33)
provisions of laws and our incorporation documents may delay, deter or
prevent takeovers and corporate combinations involving MetLife; (34) 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; (35)
the effectiveness of our programs and practices in avoiding giving our
associates incentives to take excessive risks; and (36) 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
|
For the Nine Months Ended
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
|
2013
|
|
|
|
2012
|
|
|
|
2013
|
|
|
|
2012
|
|
|
|
|
(In millions)
|
|
(In millions)
|
OPERATING REVENUES
|
|
|
|
|
|
|
|
Premiums
|
$
|
9,094
|
|
|
$
|
9,080
|
|
|
$
|
27,402
|
|
|
$
|
27,326
|
|
Universal life and investment-type product policy fees
|
|
2,276
|
|
|
|
2,048
|
|
|
|
6,768
|
|
|
|
6,056
|
|
Net investment income
|
|
5,043
|
|
|
|
5,048
|
|
|
|
15,279
|
|
|
|
15,297
|
|
Other revenues
|
|
486
|
|
|
|
435
|
|
|
|
1,467
|
|
|
|
1,313
|
|
|
Total operating revenues
|
|
16,899
|
|
|
|
16,611
|
|
|
|
50,916
|
|
|
|
49,992
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES
|
|
|
|
|
|
|
|
Policyholder benefits and claims and policyholder dividends
|
|
9,316
|
|
|
|
8,995
|
|
|
|
27,626
|
|
|
|
27,066
|
|
Interest credited to policyholder account balances
|
|
1,472
|
|
|
|
1,589
|
|
|
|
4,547
|
|
|
|
4,653
|
|
Capitalization of DAC
|
|
(1,153
|
)
|
|
|
(1,301
|
)
|
|
|
(3,621
|
)
|
|
|
(3,976
|
)
|
Amortization of DAC and VOBA
|
|
979
|
|
|
|
1,051
|
|
|
|
3,100
|
|
|
|
3,231
|
|
Amortization of negative VOBA
|
|
(113
|
)
|
|
|
(155
|
)
|
|
|
(368
|
)
|
|
|
(456
|
)
|
Interest expense on debt
|
|
288
|
|
|
|
286
|
|
|
|
863
|
|
|
|
898
|
|
Other expenses
|
|
4,031
|
|
|
|
4,120
|
|
|
|
12,132
|
|
|
|
12,414
|
|
|
Total operating expenses
|
|
14,820
|
|
|
|
14,585
|
|
|
|
44,279
|
|
|
|
43,830
|
|
|
|
|
|
|
|
|
|
|
|
Operating earnings before provision for income tax
|
|
2,079
|
|
|
|
2,026
|
|
|
|
6,637
|
|
|
|
6,162
|
|
Provision for income tax expense (benefit)
|
|
549
|
|
|
|
579
|
|
|
|
1,818
|
|
|
|
1,758
|
|
Operating earnings
|
|
1,530
|
|
|
|
1,447
|
|
|
|
4,819
|
|
|
|
4,404
|
|
Preferred stock dividends
|
|
30
|
|
|
|
30
|
|
|
|
91
|
|
|
|
91
|
|
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
|
$
|
1,500
|
|
|
$
|
1,417
|
|
|
$
|
4,728
|
|
|
$
|
4,313
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation to Net Income (Loss) and
Financial Statement Line Item Adjustments from GAAP
|
|
|
|
|
|
|
|
Operating earnings
|
$
|
1,530
|
|
|
$
|
1,447
|
|
|
$
|
4,819
|
|
|
$
|
4,404
|
|
Adjustments from operating earnings to income (loss) from continuing
operations, net of income tax:
|
|
|
|
|
|
|
|
|
Net investment gains (losses) (1)
|
|
(85
|
)
|
|
|
22
|
|
|
|
339
|
|
|
|
(152
|
)
|
|
Net derivative gains (losses)
|
|
(546
|
)
|
|
|
(718
|
)
|
|
|
(2,866
|
)
|
|
|
(604
|
)
|
|
Premiums
|
|
-
|
|
|
|
16
|
|
|
|
1
|
|
|
|
60
|
|
|
Universal life and investment-type product policy fees
|
|
96
|
|
|
|
83
|
|
|
|
266
|
|
|
|
250
|
|
|
Net investment income
|
|
(17
|
)
|
|
|
469
|
|
|
|
1,106
|
|
|
|
1,139
|
|
|
Other revenues
|
|
(10
|
)
|
|
|
20
|
|
|
|
(21
|
)
|
|
|
132
|
|
|
Policyholder benefits and claims and policyholder dividends
|
|
(468
|
)
|
|
|
(303
|
)
|
|
|
(1,155
|
)
|
|
|
(942
|
)
|
|
Interest credited to policyholder account balances
|
|
(128
|
)
|
|
|
(513
|
)
|
|
|
(1,489
|
)
|
|
|
(1,028
|
)
|
|
Capitalization of DAC
|
|
-
|
|
|
|
1
|
|
|
|
-
|
|
|
|
5
|
|
|
Amortization of DAC and VOBA
|
|
138
|
|
|
|
43
|
|
|
|
477
|
|
|
|
30
|
|
|
Amortization of negative VOBA
|
|
13
|
|
|
|
15
|
|
|
|
42
|
|
|
|
50
|
|
|
Interest expense on debt
|
|
(29
|
)
|
|
|
(40
|
)
|
|
|
(96
|
)
|
|
|
(128
|
)
|
|
Other expenses (1)
|
|
(67
|
)
|
|
|
(263
|
)
|
|
|
(457
|
)
|
|
|
(1,187
|
)
|
|
Goodwill impairment
|
|
-
|
|
|
|
(1,868
|
)
|
|
|
-
|
|
|
|
(1,868
|
)
|
|
Provision for income tax (expense) benefit (1), (2)
|
|
546
|
|
|
|
632
|
|
|
|
1,510
|
|
|
|
1,048
|
|
Income (loss) from continuing operations, net of income tax
|
|
973
|
|
|
|
(957
|
)
|
|
|
2,476
|
|
|
|
1,209
|
|
Income (loss) from discontinued operations, net of income tax
|
|
2
|
|
|
|
-
|
|
|
|
1
|
|
|
|
17
|
|
Net income (loss)
|
|
975
|
|
|
|
(957
|
)
|
|
|
2,477
|
|
|
|
1,226
|
|
Less: Net income (loss) attributable to noncontrolling interests
|
|
3
|
|
|
|
(3
|
)
|
|
|
17
|
|
|
|
29
|
|
Net income (loss) attributable to MetLife, Inc.
|
|
972
|
|
|
|
(954
|
)
|
|
|
2,460
|
|
|
|
1,197
|
|
Less: Preferred stock dividends
|
|
30
|
|
|
|
30
|
|
|
|
91
|
|
|
|
91
|
|
Net income (loss) available to MetLife, Inc.'s common shareholders
|
$
|
942
|
|
|
$
|
(984
|
)
|
|
$
|
2,369
|
|
|
$
|
1,106
|
|
|
|
|
|
|
|
|
|
|
|
See footnotes on last page.
|
|
|
|
|
|
|
|
MetLife, Inc. (Unaudited)
|
|
|
|
|
For the Three Months Ended September 30,
|
|
|
For the Nine Months Ended September 30,
|
|
|
|
2013
|
|
|
2012
|
|
|
|
2013
|
|
|
2012
|
|
|
|
|
|
Earnings Per Weighted Average Common Shares
Diluted
|
|
Earnings Per Weighted Average Common Shares
Diluted (3), (4)
|
|
|
Earnings Per Weighted Average Common Shares
Diluted
|
|
Earnings Per Weighted Average Common Shares
Diluted (3)
|
|
|
|
(In millions, except per share data)
|
|
|
(In millions, except per share data)
|
Reconciliation to Net Income (Loss) Available to MetLife, Inc.'s
Common Shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating earnings available to common shareholders
|
$
|
1,500
|
|
|
$
|
1.34
|
|
|
$
|
1,417
|
|
|
$
|
1.32
|
|
|
|
$
|
4,728
|
|
|
$
|
4.26
|
|
|
$
|
4,313
|
|
|
$
|
4.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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)
|
|
(85
|
)
|
|
|
(0.08
|
)
|
|
|
22
|
|
|
|
0.02
|
|
|
|
|
339
|
|
|
|
0.31
|
|
|
|
(152
|
)
|
|
|
(0.14
|
)
|
|
Add: Net derivative gains (losses)
|
|
(546
|
)
|
|
|
(0.49
|
)
|
|
|
(718
|
)
|
|
|
(0.67
|
)
|
|
|
|
(2,866
|
)
|
|
|
(2.58
|
)
|
|
|
(604
|
)
|
|
|
(0.57
|
)
|
|
Add: Goodwill impairment
|
|
-
|
|
|
|
-
|
|
|
|
(1,868
|
)
|
|
|
(1.74
|
)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(1,868
|
)
|
|
|
(1.75
|
)
|
|
Add: Other adjustments to continuing operations (1)
|
|
(472
|
)
|
|
|
(0.42
|
)
|
|
|
(472
|
)
|
|
|
(0.44
|
)
|
|
|
|
(1,326
|
)
|
|
|
(1.19
|
)
|
|
|
(1,619
|
)
|
|
|
(1.51
|
)
|
|
Add: Provision for income tax (expense) benefit (1), (2)
|
|
546
|
|
|
|
0.49
|
|
|
|
632
|
|
|
|
0.59
|
|
|
|
|
1,510
|
|
|
|
1.36
|
|
|
|
1,048
|
|
|
|
0.98
|
|
|
Add: Income (loss) from discontinued operations, net of income tax
|
|
2
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
1
|
|
|
|
-
|
|
|
|
17
|
|
|
|
0.02
|
|
|
Less: Net income (loss) attributable to noncontrolling interests
|
|
3
|
|
|
|
-
|
|
|
|
(3
|
)
|
|
|
-
|
|
|
|
|
17
|
|
|
|
0.02
|
|
|
|
29
|
|
|
|
0.03
|
|
Net income (loss) available to MetLife, Inc.'s common shareholders
|
$
|
942
|
|
|
$
|
0.84
|
|
|
$
|
(984
|
)
|
|
$
|
(0.92
|
)
|
|
|
$
|
2,369
|
|
|
$
|
2.14
|
|
|
$
|
1,106
|
|
|
$
|
1.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding - diluted
|
|
|
|
1,117.3
|
|
|
|
|
|
1,071.0
|
|
|
|
|
|
|
1,108.9
|
|
|
|
|
|
1,070.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
For the Nine Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
2013
|
|
|
2012
|
|
|
2013
|
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In millions)
|
|
(In millions)
|
|
|
|
|
|
|
|
|
|
Reconciliation to GAAP Premiums, Fees and Other Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating premiums, fees and other revenues
|
$
|
11,856
|
|
|
$
|
11,563
|
|
|
$
|
35,637
|
|
|
$
|
34,695
|
|
|
|
|
|
|
|
|
|
|
Add: Adjustments to premiums, fees and other revenues
|
|
86
|
|
|
|
119
|
|
|
|
246
|
|
|
|
442
|
|
|
|
|
|
|
|
|
|
|
Total premiums, fees and other revenues
|
$
|
11,942
|
|
|
$
|
11,682
|
|
|
$
|
35,883
|
|
|
$
|
35,137
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation to GAAP Revenues and GAAP Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating revenues
|
$
|
16,899
|
|
|
$
|
16,611
|
|
|
$
|
50,916
|
|
|
$
|
49,992
|
|
|
|
|
|
|
|
|
|
|
Add: Net investment gains (losses) (1)
|
|
(85
|
)
|
|
|
22
|
|
|
|
339
|
|
|
|
(152
|
)
|
|
|
|
|
|
|
|
|
|
Add: Net derivative gains (losses)
|
|
(546
|
)
|
|
|
(718
|
)
|
|
|
(2,866
|
)
|
|
|
(604
|
)
|
|
|
|
|
|
|
|
|
|
Add: Adjustments related to net investment gains (losses) and net
derivative gains (losses)
|
|
(2
|
)
|
|
|
(4
|
)
|
|
|
-
|
|
|
|
10
|
|
|
|
|
|
|
|
|
|
|
Add: Other adjustments to revenues
|
|
71
|
|
|
|
592
|
|
|
|
1,352
|
|
|
|
1,571
|
|
|
|
|
|
|
|
|
|
|
Total revenues
|
$
|
16,337
|
|
|
$
|
16,503
|
|
|
$
|
49,741
|
|
|
$
|
50,817
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses
|
$
|
14,820
|
|
|
$
|
14,585
|
|
|
$
|
44,279
|
|
|
$
|
43,830
|
|
|
|
|
|
|
|
|
|
|
Add: Adjustments related to net investment gains (losses) and net
derivative gains (losses)
|
|
(53
|
)
|
|
|
14
|
|
|
|
(235
|
)
|
|
|
79
|
|
|
|
|
|
|
|
|
|
|
Add: Goodwill impairment
|
|
-
|
|
|
|
1,868
|
|
|
|
-
|
|
|
|
1,868
|
|
|
|
|
|
|
|
|
|
|
Add: Other adjustments to expenses (1)
|
|
594
|
|
|
|
1,046
|
|
|
|
2,913
|
|
|
|
3,121
|
|
|
|
|
|
|
|
|
|
|
Total expenses
|
$
|
15,361
|
|
|
$
|
17,513
|
|
|
$
|
46,957
|
|
|
$
|
48,898
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
|
|
|
|
|
|
|
|
Book Value Per Common Share (5)
|
|
|
|
|
|
2013
|
|
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per common share, excluding accumulated other
comprehensive
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
income (loss) - (actual common shares outstanding)
|
|
|
|
|
$
|
47.99
|
|
|
$
|
47.70
|
|
|
|
|
|
|
|
|
|
|
Add: Accumulated other comprehensive income (loss) per common share
|
|
|
|
|
|
4.55
|
|
|
|
10.65
|
|
|
|
|
|
|
|
|
|
|
Book value per common share - (actual common shares outstanding)
|
|
|
|
|
$
|
52.54
|
|
|
$
|
58.35
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares outstanding, end of period (In millions)
|
|
|
|
|
|
1,120.8
|
|
|
|
1,062.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
|
|
|
|
|
|
|
|
Return on MetLife, Inc.'s Common Equity (6)
|
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating return on MetLife, Inc.'s common equity, excluding
accumulated other comprehensive income (loss) (7)
|
|
|
|
|
|
11.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Operating return on MetLife, Inc.'s common equity (7)
|
|
|
|
|
|
10.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Return on MetLife, Inc.'s common equity, excluding accumulated other
comprehensive income (loss) (8)
|
|
|
|
|
|
7.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Return on MetLife, Inc.'s common equity (8)
|
|
|
|
|
|
6.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See footnotes on last page.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MetLife, Inc. Reconciliations to Net Income (Loss)
Available to Common Shareholders (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
|
|
|
|
For the Nine Months Ended
|
|
|
|
|
|
September 30,
|
|
|
|
September 30,
|
|
|
|
|
|
|
2013
|
|
|
|
2012
|
|
|
|
|
|
2013
|
|
|
|
2012
|
|
|
|
|
|
|
(In millions)
|
|
|
|
(In millions)
|
Total Americas Operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating earnings available to common shareholders
|
|
|
$
|
1,318
|
|
|
$
|
1,230
|
|
|
|
|
$
|
3,947
|
|
|
$
|
3,516
|
|
|
|
Add: Net investment gains (losses)
|
|
|
|
(51
|
)
|
|
|
31
|
|
|
|
|
|
62
|
|
|
|
198
|
|
|
|
Add: Net derivative gains (losses)
|
|
|
|
(512
|
)
|
|
|
(65
|
)
|
|
|
|
|
(1,651
|
)
|
|
|
629
|
|
|
|
Add: Goodwill impairment
|
|
|
|
-
|
|
|
|
(1,692
|
)
|
|
|
|
|
-
|
|
|
|
(1,692
|
)
|
|
|
Add: Other adjustments to continuing operations
|
|
|
|
(378
|
)
|
|
|
(246
|
)
|
|
|
|
|
(594
|
)
|
|
|
(871
|
)
|
|
|
Add: Provision for income tax (expense) benefit
|
|
|
|
326
|
|
|
|
328
|
|
|
|
|
|
764
|
|
|
|
229
|
|
|
|
Add: Income (loss) from discontinued operations, net of income tax
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
17
|
|
|
|
Less: Net income (loss) attributable to noncontrolling interests
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
1
|
|
|
|
Net income (loss) available to MetLife, Inc.'s common shareholders
|
|
|
$
|
703
|
|
|
$
|
(414
|
)
|
|
|
|
$
|
2,528
|
|
|
$
|
2,025
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating earnings available to common shareholders
|
|
|
$
|
659
|
|
|
$
|
492
|
|
|
|
|
$
|
1,866
|
|
|
$
|
1,369
|
|
|
|
Add: Net investment gains (losses)
|
|
|
|
(28
|
)
|
|
|
53
|
|
|
|
|
|
68
|
|
|
|
178
|
|
|
|
Add: Net derivative gains (losses)
|
|
|
|
(202
|
)
|
|
|
191
|
|
|
|
|
|
(779
|
)
|
|
|
637
|
|
|
|
Add: Goodwill impairment
|
|
|
|
-
|
|
|
|
(1,692
|
)
|
|
|
|
|
-
|
|
|
|
(1,692
|
)
|
|
|
Add: Other adjustments to continuing operations
|
|
|
|
(302
|
)
|
|
|
(254
|
)
|
|
|
|
|
(598
|
)
|
|
|
(622
|
)
|
|
|
Add: Provision for income tax (expense) benefit
|
|
|
|
186
|
|
|
|
224
|
|
|
|
|
|
458
|
|
|
|
153
|
|
|
|
Add: Income (loss) from discontinued operations, net of income tax
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
10
|
|
|
|
Net income (loss) available to MetLife, Inc.'s common shareholders
|
|
|
$
|
313
|
|
|
$
|
(986
|
)
|
|
|
|
$
|
1,015
|
|
|
$
|
33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Group, Voluntary & Worksite Benefits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating earnings available to common shareholders
|
|
|
$
|
226
|
|
|
$
|
283
|
|
|
|
|
$
|
731
|
|
|
$
|
793
|
|
|
|
Add: Net investment gains (losses)
|
|
|
|
(3
|
)
|
|
|
5
|
|
|
|
|
|
(14
|
)
|
|
|
11
|
|
|
|
Add: Net derivative gains (losses)
|
|
|
|
(173
|
)
|
|
|
(81
|
)
|
|
|
|
|
(612
|
)
|
|
|
99
|
|
|
|
Add: Other adjustments to continuing operations
|
|
|
|
(44
|
)
|
|
|
(33
|
)
|
|
|
|
|
(129
|
)
|
|
|
(107
|
)
|
|
|
Add: Provision for income tax (expense) benefit
|
|
|
|
78
|
|
|
|
38
|
|
|
|
|
|
265
|
|
|
|
(1
|
)
|
|
|
Net income (loss) available to MetLife, Inc.'s common shareholders
|
|
|
$
|
84
|
|
|
$
|
212
|
|
|
|
|
$
|
241
|
|
|
$
|
795
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate Benefit Funding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating earnings available to common shareholders
|
|
|
$
|
300
|
|
|
$
|
303
|
|
|
|
|
$
|
949
|
|
|
$
|
919
|
|
|
|
Add: Net investment gains (losses)
|
|
|
|
(15
|
)
|
|
|
(25
|
)
|
|
|
|
|
4
|
|
|
|
21
|
|
|
|
Add: Net derivative gains (losses)
|
|
|
|
(140
|
)
|
|
|
(194
|
)
|
|
|
|
|
(244
|
)
|
|
|
(149
|
)
|
|
|
Add: Other adjustments to continuing operations
|
|
|
|
(14
|
)
|
|
|
(3
|
)
|
|
|
|
|
45
|
|
|
|
11
|
|
|
|
Add: Provision for income tax (expense) benefit
|
|
|
|
59
|
|
|
|
78
|
|
|
|
|
|
68
|
|
|
|
41
|
|
|
|
Add: Income (loss) from discontinued operations, net of income tax
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
7
|
|
|
|
Net income (loss) available to MetLife, Inc.'s common shareholders
|
|
|
$
|
190
|
|
|
$
|
159
|
|
|
|
|
$
|
822
|
|
|
$
|
850
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Latin America:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating earnings available to common shareholders
|
|
|
$
|
133
|
|
|
$
|
152
|
|
|
|
|
$
|
401
|
|
|
$
|
435
|
|
|
|
Add: Net investment gains (losses)
|
|
|
|
(5
|
)
|
|
|
(2
|
)
|
|
|
|
|
4
|
|
|
|
(12
|
)
|
|
|
Add: Net derivative gains (losses)
|
|
|
|
3
|
|
|
|
19
|
|
|
|
|
|
(16
|
)
|
|
|
42
|
|
|
|
Add: Other adjustments to continuing operations
|
|
|
|
(18
|
)
|
|
|
44
|
|
|
|
|
|
88
|
|
|
|
(153
|
)
|
|
|
Add: Provision for income tax (expense) benefit
|
|
|
|
3
|
|
|
|
(12
|
)
|
|
|
|
|
(27
|
)
|
|
|
36
|
|
|
|
Less: Net income (loss) attributable to noncontrolling interests
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
-
|
|
|
|
1
|
|
|
|
Net income (loss) available to MetLife, Inc.'s common shareholders
|
|
|
$
|
116
|
|
|
$
|
201
|
|
|
|
|
$
|
450
|
|
|
$
|
347
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asia:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating earnings available to common shareholders
|
|
|
$
|
257
|
|
|
$
|
259
|
|
|
|
|
$
|
920
|
|
|
$
|
839
|
|
|
|
Add: Net investment gains (losses) (1)
|
|
|
|
52
|
|
|
|
(47
|
)
|
|
|
|
|
265
|
|
|
|
(168
|
)
|
|
|
Add: Net derivative gains (losses)
|
|
|
|
164
|
|
|
|
(31
|
)
|
|
|
|
|
(874
|
)
|
|
|
(11
|
)
|
|
|
Add: Other adjustments to continuing operations (1)
|
|
|
|
(31
|
)
|
|
|
(15
|
)
|
|
|
|
|
(417
|
)
|
|
|
(11
|
)
|
|
|
Add: Provision for income tax (expense) benefit (1), (2)
|
|
|
|
94
|
|
|
|
27
|
|
|
|
|
|
531
|
|
|
|
59
|
|
|
|
Add: Income (loss) from discontinued operations, net of income tax
|
|
|
|
1
|
|
|
|
-
|
|
|
|
|
|
(3
|
)
|
|
|
-
|
|
|
|
Less: Net income (loss) attributable to noncontrolling interests
|
|
|
|
6
|
|
|
|
8
|
|
|
|
|
|
15
|
|
|
|
25
|
|
|
|
Net income (loss) available to MetLife, Inc.'s common shareholders
|
|
|
$
|
531
|
|
|
$
|
185
|
|
|
|
|
$
|
407
|
|
|
$
|
683
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EMEA:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating earnings available to common shareholders
|
|
|
$
|
85
|
|
|
$
|
62
|
|
|
|
|
$
|
240
|
|
|
$
|
212
|
|
|
|
Add: Net investment gains (losses)
|
|
|
|
10
|
|
|
|
73
|
|
|
|
|
|
49
|
|
|
|
37
|
|
|
|
Add: Net derivative gains (losses)
|
|
|
|
30
|
|
|
|
13
|
|
|
|
|
|
20
|
|
|
|
56
|
|
|
|
Add: Other adjustments to continuing operations
|
|
|
|
9
|
|
|
|
(12
|
)
|
|
|
|
|
(4
|
)
|
|
|
(22
|
)
|
|
|
Add: Provision for income tax (expense) benefit
|
|
|
|
(17
|
)
|
|
|
(32
|
)
|
|
|
|
|
(36
|
)
|
|
|
(18
|
)
|
|
|
Less: Net income (loss) attributable to noncontrolling interests
|
|
|
|
1
|
|
|
|
(5
|
)
|
|
|
|
|
3
|
|
|
|
6
|
|
|
|
Net income (loss) available to MetLife, Inc.'s common shareholders
|
|
|
$
|
116
|
|
|
$
|
109
|
|
|
|
|
$
|
266
|
|
|
$
|
259
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate & Other:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating earnings available to common shareholders
|
|
|
$
|
(160
|
)
|
|
$
|
(134
|
)
|
|
|
|
$
|
(379
|
)
|
|
$
|
(254
|
)
|
|
|
Add: Net investment gains (losses)
|
|
|
|
(96
|
)
|
|
|
(35
|
)
|
|
|
|
|
(37
|
)
|
|
|
(219
|
)
|
|
|
Add: Net derivative gains (losses)
|
|
|
|
(228
|
)
|
|
|
(635
|
)
|
|
|
|
|
(361
|
)
|
|
|
(1,278
|
)
|
|
|
Add: Goodwill impairment
|
|
|
|
-
|
|
|
|
(176
|
)
|
|
|
|
|
-
|
|
|
|
(176
|
)
|
|
|
Add: Other adjustments to continuing operations
|
|
|
|
(72
|
)
|
|
|
(199
|
)
|
|
|
|
|
(311
|
)
|
|
|
(715
|
)
|
|
|
Add: Provision for income tax (expense) benefit
|
|
|
|
143
|
|
|
|
309
|
|
|
|
|
|
251
|
|
|
|
778
|
|
|
|
Add: Income (loss) from discontinued operations, net of income tax
|
|
|
|
1
|
|
|
|
-
|
|
|
|
|
|
4
|
|
|
|
-
|
|
|
|
Less: Net income (loss) attributable to noncontrolling interests
|
|
|
|
(4
|
)
|
|
|
(6
|
)
|
|
|
|
|
(1
|
)
|
|
|
(3
|
)
|
|
|
Net income (loss) available to MetLife, Inc.'s common shareholders
|
|
|
$
|
(408
|
)
|
|
$
|
(864
|
)
|
|
|
|
$
|
(832
|
)
|
|
$
|
(1,861
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See footnotes on last page.
|
|
|
|
|
|
|
|
|
|
|
|
MetLife, Inc. GAAP Interim Condensed Consolidated
Statements of Operations (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended September 30,
|
|
For the Nine Months Ended September 30,
|
|
|
|
|
|
|
2013
|
|
|
|
2012
|
|
|
|
2013
|
|
|
|
2012
|
|
|
|
|
|
|
(In millions)
|
|
(In millions)
|
Revenues
|
|
|
|
|
|
|
|
|
|
Premiums
|
|
|
$
|
9,094
|
|
|
$
|
9,096
|
|
|
$
|
27,403
|
|
|
$
|
27,386
|
|
Universal life and investment-type product policy fees
|
|
|
|
2,372
|
|
|
|
2,131
|
|
|
|
7,034
|
|
|
|
6,306
|
|
Net investment income
|
|
|
|
5,026
|
|
|
|
5,517
|
|
|
|
16,385
|
|
|
|
16,436
|
|
Other revenues
|
|
|
|
476
|
|
|
|
455
|
|
|
|
1,446
|
|
|
|
1,445
|
|
Net investment gains (losses):
|
|
|
|
|
|
|
|
|
|
|
Other-than-temporary impairments on fixed maturity securities
|
|
|
|
(13
|
)
|
|
|
(57
|
)
|
|
|
(77
|
)
|
|
|
(310
|
)
|
|
Other-than-temporary impairments on fixed maturity securities
|
|
|
|
|
|
|
|
|
|
|
|
transferred to other comprehensive income (loss)
|
|
|
|
(21
|
)
|
|
|
10
|
|
|
|
(56
|
)
|
|
|
39
|
|
|
Other net investment gains (losses) (1)
|
|
|
|
(51
|
)
|
|
|
69
|
|
|
|
472
|
|
|
|
119
|
|
|
|
Total net investment gains (losses)
|
|
|
|
(85
|
)
|
|
|
22
|
|
|
|
339
|
|
|
|
(152
|
)
|
|
Net derivative gains (losses)
|
|
|
|
(546
|
)
|
|
|
(718
|
)
|
|
|
(2,866
|
)
|
|
|
(604
|
)
|
|
|
Total revenues
|
|
|
|
16,337
|
|
|
|
16,503
|
|
|
|
49,741
|
|
|
|
50,817
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
Policyholder benefits and claims
|
|
|
|
9,472
|
|
|
|
8,943
|
|
|
|
27,827
|
|
|
|
26,958
|
|
Interest credited to policyholder account balances
|
|
|
|
1,600
|
|
|
|
2,102
|
|
|
|
6,036
|
|
|
|
5,681
|
|
Policyholder dividends
|
|
|
|
312
|
|
|
|
355
|
|
|
|
954
|
|
|
|
1,050
|
|
Goodwill impairment
|
|
|
|
-
|
|
|
|
1,868
|
|
|
|
-
|
|
|
|
1,868
|
|
Other expenses (1)
|
|
|
|
3,977
|
|
|
|
4,245
|
|
|
|
12,140
|
|
|
|
13,341
|
|
|
|
Total expenses
|
|
|
|
15,361
|
|
|
|
17,513
|
|
|
|
46,957
|
|
|
|
48,898
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from continuing operations before provision for income
tax
|
|
|
|
976
|
|
|
|
(1,010
|
)
|
|
|
2,784
|
|
|
|
1,919
|
|
Provision for income tax expense (benefit) (1), (2)
|
|
|
|
3
|
|
|
|
(53
|
)
|
|
|
308
|
|
|
|
710
|
|
Income (loss) from continuing operations, net of income tax
|
|
|
|
973
|
|
|
|
(957
|
)
|
|
|
2,476
|
|
|
|
1,209
|
|
Income (loss) from discontinued operations, net of income tax
|
|
|
|
2
|
|
|
|
-
|
|
|
|
1
|
|
|
|
17
|
|
Net income (loss)
|
|
|
|
975
|
|
|
|
(957
|
)
|
|
|
2,477
|
|
|
|
1,226
|
|
Less: Net income (loss) attributable to noncontrolling interests
|
|
|
|
3
|
|
|
|
(3
|
)
|
|
|
17
|
|
|
|
29
|
|
Net income (loss) attributable to MetLife, Inc.
|
|
|
|
972
|
|
|
|
(954
|
)
|
|
|
2,460
|
|
|
|
1,197
|
|
Less: Preferred stock dividends
|
|
|
|
30
|
|
|
|
30
|
|
|
|
91
|
|
|
|
91
|
|
Net income (loss) available to MetLife, Inc.'s common shareholders
|
|
|
$
|
942
|
|
|
$
|
(984
|
)
|
|
$
|
2,369
|
|
|
$
|
1,106
|
|
(1)
|
|
The nine months ended September 30, 2013 includes net investment
gains of $19 million, expenses of $154 million and a tax benefit
of $119 million related to a settlement of an acquisition tax
contingency.
|
|
|
|
(2)
|
|
The three and nine months ended September 30, 2013 includes a
deferred tax benefit of $95 million related to the conversion of
the Japan branch to a subsidiary. The three and nine months ended
September 30, 2013 also includes a deferred tax benefit of $52
million due to a revised estimate of effective tax rates related
to net investment gains (losses) and other comprehensive income.
|
|
|
|
(3)
|
|
For the three and nine months ended September 30, 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.
|
|
|
|
(4)
|
|
For the three months ended September 30, 2012, 6.0 million shares
related to the assumed exercise or issuance of stock-based awards
are excluded from the weighted average common shares outstanding -
diluted, as these assumed shares would be anti-dilutive to net
income (loss) available to MetLife, Inc.'s common shareholders per
common share - diluted. These shares were included in the
calculation of operating earnings available to common shareholders
per common share - diluted.
|
|
|
|
(5)
|
|
Book value per common share and book value per common share,
excluding accumulated other comprehensive income (loss), exclude
$2,043 million of equity related to preferred stock.
|
|
|
|
(6)
|
|
Annualized using quarter-to-date results.
|
|
|
|
(7)
|
|
Operating return on MetLife, Inc.'s common equity is defined as
operating earnings available to common shareholders divided by
average GAAP common equity.
|
|
|
|
(8)
|
|
Return on MetLife, Inc.'s common equity is defined as net income
available to common shareholders divided by average GAAP common
equity.
|
Copyright Business Wire 2013