MetLife (MET) 8-K Metlife Announces Fourth Quarter and Full Year 2008 Results

Fourth Quarter

Financial Supplement

December 31, 2008

TABLE OF CONTENTS

HIGHLIGHTS
Corporate Overview	2
METLIFE, INC.
Consolidated Balance Sheets	3
Consolidated Statements of Operating Earnings Available to Common Shareholders	4
Consolidating Balance Sheet	5
Consolidating Statement of Operating Earnings Available to Common Shareholders	6
SUMMARY OF SEGMENT OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS	10
INSTITUTIONAL
Statements of Operating Earnings Available to Common Shareholders	11
Future Policy Benefits, Policyholder Account Balances and Separate Account Liabilities	15
Other Expenses by Major Category	16
Spreads by Product	17
INDIVIDUAL
Statements of Operating Earnings Available to Common Shareholders	18
Premiums and Deposits by Product	23
Additional Statistical Information	24
Future Policy Benefits, Policyholder Account Balances and Separate Account Liabilities	25
Expenses by Major Category	26
Spreads by Product	27
INTERNATIONAL
Statement of Operating Earnings Available to Common Shareholders	28
AUTO & HOME
Statements of Operating Earnings Available to Common Shareholders	32
Written Premiums by Product and Selected Financial Information and Supplemental Data	35
CORPORATE, OTHER & ELIMINATIONS
Statement of Operating Earnings Available to Common Shareholders	36
INVESTMENTS
Investment Results by Asset Category and Annualized Yields	37
Fixed Maturity Securities and Equity Securities Gross Unrealized Gains and Losses Aging Schedules	39
Summary of Fixed Maturity Securities Available-for-Sale By Sector and Quality Distribution and Summary of Commercial Mortgage Loans By Region and Property Type	40
Summary of Real Estate and Summary of Mortgages and Consumer Loans	41
OTHER INFORMATION`
Company Ratings	42

NOTE:

The Quarterly Financial Supplement (“QFS”) includes financial measures, such as operating earnings available to common shareholders and operating earnings available to common shareholders per diluted common share, that are not based on generally accepted accounting principles (“GAAP”). Operating earnings available to common shareholders is defined as GAAP net income, excluding net investment gains and losses, net of income tax, adjustments related to net investment gains and losses, net of income tax, and discontinued operations other than discontinued real estate, net of income tax, less preferred stock dividends. Scheduled periodic settlement payments on derivative instruments not qualifying for hedge accounting treatment are included in operating earnings. Operating earnings available to common shareholders per diluted common share is calculated by dividing operating earnings available to common shareholders by the number of weighted average diluted common shares outstanding for the period indicated. MetLife believes these measures enhance the understanding and comparability of its performance by excluding net investment gains and losses, net of income tax, and adjustments related to net investment gains and losses, net of income tax, both of which can fluctuate significantly from period to period, and discontinued operations other than discontinued real estate, net of income tax, thereby highlighting the results from operations and the underlying profitability drivers of the business. Operating earnings available to common shareholders and operating earnings available to common shareholders per diluted common share should not be viewed as substitutes for GAAP net income available to common shareholders and GAAP net income available to common shareholders per diluted common share, respectively. Reconciliations of operating earnings available to common shareholders to GAAP net income available to common shareholders and operating earnings available to common shareholders per diluted common share to GAAP net income available to common shareholders per diluted common share, the most directly comparable GAAP measures, are included in the QFS and in MetLife’s earnings press release dated February 3, 2009, for the three months ended December 31, 2008, which are available at www.metlife.com.

1

CORPORATE OVERVIEW
Unaudited (In millions, except per share data)

	For the Three Months Ended
	December 31,			March 31,			June 30,			September 30,			December 31,
	2007			2008			2008			2008			2008
Net income (5)	$	1,118		$	648		$	946		$	630			985
Preferred stock dividends		35			33			31			30			31
Net income available to common shareholders		1,083			615			915			600			954
Net investment gains (losses)		(163	)		(738	)		(330	)		739			2,100
Net investment gains (losses) tax provision		38			262			104			(282	)		(755	)
Net investment gains (losses), net of income tax (1) (2)		(125	)		(476	)		(226	)		457			1,345
Adjustments related to universal life and investment-type product policy fees		2			5			(3	)		—			16
Adjustments related to policyholder benefits and dividends		9			(127	)		165			(96	)		(123	)
Adjustments related to other expenses		19			114			144			(1	)		(778	)
Adjustments related to tax provision		(9	)		6			(109	)		36			308
Adjustments related to net investment gains (losses), net of income tax (3)		21			(2	)		197			(61	)		(577	)
Discontinued operations, net of income tax		26			21			62			(430	)		38
Operating earnings available to common shareholders (4)	$	1,161		$	1,072		$	882		$	634		$	148
Net income available to common shareholders per common share — diluted (5)	$	1.44		$	0.84		$	1.26		$	0.83		$	1.20
Net investment gains (losses), net of income tax		($0.16	)		($0.65	)		($0.31	)	$	0.63		$	1.69
Adjustments related to net investment gains (losses), net of income tax	$	0.03		$	0.00		$	0.27			($0.08	)		($0.73	)
Discontinued operations, net of income tax	$	0.03		$	0.03		$	0.09			($0.59	)	$	0.05
Operating earnings available to common shareholders — diluted	$	1.54		$	1.46		$	1.21		$	0.87		$	0.19
Weighted average common shares outstanding — diluted		754.1			732.7			726.5			726.9			793.6
Book value per common share (actual common shares outstanding)	$	45.44		$	43.64		$	42.97		$	36.46		$	27.33
Book value per common share, excluding accumulated other comprehensive income (actual common shares outstanding)	$	43.96		$	45.09		$	46.51		$	47.12		$	45.29
Book value per common share — diluted (weighted average common shares outstanding)	$	43.94		$	42.25		$	41.98		$	35.48		$	27.33
Book value per common share, excluding accumulated other comprehensive income — diluted (weighted average common shares outstanding)	$	42.51		$	43.65		$	45.43		$	45.85		$	45.29
	For the Three Months Ended
	December 31,			March 31,			June 30,			September 30,			December 31,
	2007			2008			2008			2008			2008
Common shares outstanding, beginning of period		740.3			729.2			709.4			709.7			707.3
Treasury stock, net		(11.1	)		(19.8	)		0.3			(2.4	)		75.0
Newly issued shares		—			—			—			—			11.3
Common shares outstanding, end of period		729.2			709.4			709.7			707.3			793.6
Weighted average common shares outstanding — basic		735.9			720.4			712.8			718.1			790.0
Dilutive effect of stock-based awards		11.0			8.7			9.4			8.6			3.6
Dilutive effect of stock purchase contracts underlying common equity units		7.2			3.6			4.3			0.2			—
Weighted average common shares outstanding — diluted		754.1			732.7			726.5			726.9			793.6
MetLife Policyholder Trust shares		260.7			256.6			253.4			246.7			242.7

(1)	Net investment gains (losses), net of income tax, excludes scheduled periodic settlement payments on derivative instruments not qualifying for hedge accounting treatment of $44 million, ($6) million, ($25) million, ($1) million, and 34 million for the three months ended December 31, 2007, March 31, 2008, June 30, 2008, September 30, 2008, and December 31, 2008 respectively. For QFS purposes, these settlements are included in net investment income.
(2)	Net investment gains (losses), net of income tax, from real estate and real estate joint ventures includes discontinued operations of $5 million for the three months ended both December 31, 2007 and 2008. There were no net investment gains (losses) from other real estate and real estate joint ventures for any other periods presented.
(3)	Adjustments related to net investment gains (losses), net of income tax, includes amortization of unearned revenue and deferred policy acquisition costs, adjustments to the policyholder dividend obligation and amounts allocable to certain participating contracts.
(4)	Presentation of operating earnings available to common shareholders throughout the QFS differs from other public filings with respect to discontinued operations, scheduled periodic settlement payments on derivatives not qualifying for hedge accounting treatment and acquistion-related costs incurred to effect a business combination. Presentation of discontinued operations in other public filings is in accordance with the Statement of Financial Accounting Standards (“SFAS”) No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets. Presentation of scheduled periodic settlement payments on derivatives not qualifying for hedge accounting treatment in other public filings is in accordance with SFAS No.133, Accounting for Derivative Instruments and Hedging Activities (“SFAS 133”). Presentation of acquisition-related costs incurred to effect a business combination after January 1, 2009 in other public filings is in accordance with SFAS No. 141(r) (As Amended), Business Combinations (“SFAS 141(r)”), adopted on January 1, 2009. The transaction cost adjustment will be reflected as a separate line item in each of the 2009 net income reconciliations.
(5)	During the fourth quarter of 2008, the Company recorded a cumulative out-of-period adjustment in connection with the exclusion of certain derivatives gains from the estimation of cumulative gross profits used in the determination of DAC amortization. The adjustment decreased deferred policy acquisition costs and increased DAC amortization by $124 million and decreased net income by $80 million in the fourth quarter of 2008. Had the amounts been reflected during the first, second and third quarters of 2008 - in the periods in which they arose - DAC amortization would have increased (decreased) by $100 million, $(61) million, and $85 million, respectively, resulting in an increase (decrease) of net income by ($65) million, $40 million and ($55) million, respectively. Net income available to common shareholders per diluted common share would have been higher (lower) by ($0.09), $0.06, ($0.08) and $0.10 during the first, second, third and fourth quarters, respectively, of 2008 had the amounts been reflected in the periods in which they arose. Based upon an evaluation of all relevant quantitative and qualitative factors, we believe this correcting adjustment was not material to our full year results for 2008 or the trends of earnings.

2

METLIFE, INC.

CONSOLIDATED BALANCE SHEETS

	��
		December 31,			March 31,			June 30,			September 30,			December 31,
Unaudited (In millions)		2007			2008			2008			2008			2008
ASSETS
Assets
Fixed maturity securities, available-for-sale, at estimated fair value		$	232,336		$	234,183		$	231,013		$	212,125		$	188,251
Equity securities, available-for-sale, at estimated fair value			5,911			5,368			5,228			3,474			3,197
Trading securities, at estimated fair value			779			807			883			787			946
Mortgage and consumer loans:
Held-for-investment, at amortized cost			46,149			46,477			47,979			49,182			49,352
Held-for-sale, principally at estimated fair value			5			443			179			1,424			2,012
Mortgage and consumer loans, net			46,154			46,920			48,158			50,606			51,364
Policy loans			9,326			9,666			9,683			9,742			9,802
Real estate and real estate joint ventures			6,728			6,959			7,292			7,365			7,585
Real estate held-for-sale			39			1			36			190			1
Other limited partnership interests			6,155			6,349			6,707			6,353			6,039
Short-term investments			2,544			2,543			1,929			2,570			13,878
Other invested assets			8,076			9,808			8,617			9,755			17,248
Total Investments		$	318,048		$	322,604		$	319,546		$	302,967		$	298,311
Cash and cash equivalents			9,961			10,560			13,414			20,181			24,207
Accrued investment income			3,545			3,270			3,207			3,266			3,061
Premiums and other receivables			13,373			13,648			14,056			17,843			16,973
Deferred policy acquisition costs and value of business acquired			17,810			18,159			18,879			20,119			20,144
Current income tax recoverable			334			417			712			763			—
Deferred income tax assets			—			—			—			1,631			4,927
Goodwill			4,814			4,999			5,065			5,036			5,008
Other assets			8,239			8,311			8,175			8,822			7,262
Assets of subsidiaries held-for-sale			22,883			23,117			23,732			887			946
Separate account assets			160,142			152,554			149,686			139,803			120,839
Total Assets		$	559,149		$	557,639		$	556,472		$	521,318		$	501,678
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities
Future policy benefits		$	126,016		$	127,631		$	127,539		$	128,589		$	130,555
Policyholder account balances			130,342			134,588			136,720			138,779			149,805
Other policyholder funds			7,838			8,105			8,223			8,273			7,762
Policyholder dividends payable			991			990			1,034			1,073			1,023
Policyholder dividend obligation			789			119			—			—			—
Short-term debt			667			632			623			1,106			2,659
Long-term debt			9,100			9,124			9,167			10,810			9,667
Collateral financing arrangements			4,882			4,942			4,997			5,132			5,192
Junior subordinated debt securities			4,075			4,075			4,825			3,759			3,758
Current income tax payable			—			—			—			—			342
Deferred income tax liability			1,502			557			261			—			—
Payables for collateral under securities loaned and other transactions			44,136			46,648			45,979			43,300			31,059
Other liabilities			12,829			13,713			13,306			12,111			14,535
Liabilities of subsidiaries held-for-sale			20,661			20,962			21,571			750			748
Separate account liabilities			160,142			152,554			149,686			139,803			120,839
Total Liabilities			523,970			524,640			523,931			493,485			477,944
Stockholders’ Equity
Preferred stock, at par value			1			1			1			1			1
Common stock, at par value			8			8			8			8			8
Additional paid-in capital			17,098			17,600			17,647			17,602			15,811
Retained earnings			19,884			20,526			21,441			22,041			22,403
Treasury stock, at cost			(2,890	)		(4,108	)		(4,047	)		(4,279	)		(236	)
Accumulated other comprehensive income (loss)			1,078			(1,028	)		(2,509	)		(7,540	)		(14,253	)
Total Stockholders’ Equity			35,179			32,999			32,541			27,833			23,734
Total Liabilities and Stockholders’ Equity		$	559,149		$	557,639		$	556,472		$	521,318		$	501,678

3

METLIFE, INC.

CONSOLIDATED STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS

	For the Three Months Ended
	December 31,			March 31,			June 30,			September 30,			December 31,
Unaudited (In millions)	2007			2008			2008			2008			2008
REVENUES
Premiums	$	5,932		$	6,291		$	6,340		$	6,785		$	6,498
Universal life and investment-type product policy fees		1,389			1,392			1,399			1,352			1,220
Investment income, net		4,791			4,288			4,281			4,050			3,685
Other revenues		359			369			351			421			445
		12,471			12,340			12,371			12,608			11,848
EXPENSES
Policyholder benefits and dividends		6,511			6,885			7,190			7,616			7,316
Interest credited to policyholder account balances		1,381			1,218			1,184			1,121			1,220
Interest credited to bank deposits		49			44			39			40			43
Interest expenses		250			269			253			253			276
Other expenses		2,605			2,344			2,455			2,629			2,758
		10,796			10,760			11,121			11,659			11,613
Operating earnings before provision for income tax		1,675			1,580			1,250			949			235
Provision for income tax		479			475			337			285			56
Operating earnings		1,196			1,105			913			664			179
Preferred stock dividends		35			33			31			30			31
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS	$	1,161		$	1,072		$	882		$	634		$	148
Net Income Reconciliation
Operating earnings available to common shareholders	$	1,161		$	1,072		$	882		$	634		$	148
Net investment gains (losses)		(163	)		(738	)		(330	)		739			2,100
Net investment gains (losses) tax provision		38			262			104			(282	)		(755	)
Net investment gains (losses), net of income tax		(125	)		(476	)		(226	)		457			1,345
Adjustments related to universal life and investment-type product policy fees		2			5			(3	)		—			16
Adjustments related to policyholder benefits and dividends		9			(127	)		165			(96	)		(123	)
Adjustments related to other expenses		19			114			144			(1	)		(778	)
Adjustments related to tax provision		(9	)		6			(109	)		36			308
Adjustments related to net investment gains (losses), net of income tax (1)		21			(2	)		197			(61	)		(577	)
Discontinued operations, net of income tax		26			21			62			(430	)		38
Net income available to common shareholders		1,083			615			915			600			954
Preferred stock dividends		35			33			31			30			31
Net income	$	1,118		$	648		$	946		$	630		$	985
Premiums, Fees and Other Revenues	$	7,680		$	8,052		$	8,090		$	8,558		$	8,163

(1) Adjustments related to net investment gains (losses), net of income tax, includes amortization of unearned revenue and deferred policy acquisition costs, adjustments to the policyholder dividend obligation and amounts allocable to certain participating contracts.

4

METLIFE, INC.

CONSOLIDATING BALANCE SHEET

	December 31, 2008
																Corporate, Other
Unaudited (In millions)	Consolidated			Institutional			Individual			International			Auto & Home			& Eliminations
ASSETS
Total investments	$	298,311		$	132,440		$	112,710		$	15,475		$	3,382		$	34,304
Cash and cash equivalents		24,207			906			6,091			1,584			(96	)		15,722
Accrued investment income		3,061			1,133			1,197			231			55			445
Premiums and other receivables		16,973			6,261			2,608			852			891			6,361
Deferred policy acquisition costs and value of business acquired		20,144			1,013			16,505			2,436			183			7
Current income tax recoverable		—			—			—			—			—			—
Deferred income tax assets		4,927			4,153			(313	)		77			294			716
Goodwill		5,008			1,051			2,957			373			157			470
Other assets		7,262			1,346			2,540			392			366			2,618
Assets of subsidiaries held-for-sale		946			(24	)		725			—			—			245
Separate account assets		120,839			46,912			69,456			4,471			—			—
Total Assets	$	501,678		$	195,191		$	214,476		$	25,891		$	5,232		$	60,888
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities
Future policy benefits	$	130,555		$	55,285		$	57,754		$	9,241		$	3,083		$	5,192
Policyholder account balances		149,805			75,332			61,869			5,654			—			6,950
Other policyholder funds		7,762			3,199			2,964			1,227			43			329
Policyholder dividends payable		1,023			—			1,023			—			—			—
Short-term debt		2,659			300			—			—			—			2,359
Long-term debt		9,667			—			95			208			—			9,364
Collateral financing arrangements		5,192			—			—			—			—			5,192
Junior subordinated debt securities		3,758			—			—			—			—			3,758
Current income tax payable		342			(186	)		(357	)		283			(8	)		610
Payables for collateral under securities loaned and other transactions		31,059			6,840			10,105			22			1			14,091
Other liabilities		14,535			4,273			3,437			1,325			591			4,909
Liabilities of subsidiaries held-for-sale		748			—			735			—			—			13
Separate account liabilities		120,839			46,912			69,456			4,471			—			—
Total Liabilities		477,944			191,955			207,081			22,431			3,710			52,767
Stockholders’ Equity
Preferred stock, at par value		1			—			—			—			—			1
Common stock, at par value		8			—			—			—			—			8
Allocated equity (1)		38,214			10,281			10,767			3,730			1,908			11,528
Treasury stock		(236	)		—			—			—			—			(236	)
Accumulated other comprehensive income (loss)		(14,253	)		(7,045	)		(3,372	)		(270	)		(386	)		(3,180	)
Total Stockholders’ Equity		23,734			3,236			7,395			3,460			1,522			8,121
Total Liabilities and Stockholders’ Equity	$	501,678		$	192,091		$	214,476		$	25,891		$	5,232		$	63,988

(1) Allocated equity includes additional paid-in capital and retained earnings.

5

METLIFE, INC.

CONSOLIDATING STATEMENT OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS

	For the Three Months Ended December 31, 2008
																Corporate, Other
Unaudited (In millions)	Consolidated			Institutional			Individual			International			Auto & Home			& Eliminations
REVENUES
Premiums	$	6,498		$	3,727		$	1,277		$	753		$	739		$	2
Universal life and investment-type product policy fees		1,220			239			733			248			—			—
Investment income, net		3,685			1,686			1,509			298			37			155
Other revenues		445			191			121			5			8			120
		11,848			5,843			3,640			1,304			784			277
EXPENSES
Policyholder benefits and dividends		7,316			4,157			1,991			724			432			12
Interest credited to policyholder account balances		1,220			644			540			29			—			7
Capitalization of deferred policy acquisition costs		(787	)		(55	)		(474	)		(152	)		(107	)		1
Amortization of deferred policy acquisition costs		929			20			665			133			111			—
Other expenses		2,935			665			1,078			378			196			618
		11,613			5,431			3,800			1,112			632			638
Operating earnings before provision for income tax		235			412			(160	)		192			152			(361	)
Provision for income tax		56			140			(54	)		98			40			(168	)
Operating earnings		179			272			(106	)		94			112			(193	)
Preferred stock dividends		31			—			—			—			—			31
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS	$	148		$	272			($106	)	$	94		$	112			($224	)
Net Income Reconciliation
Operating earnings available to common shareholders	$	148		$	272			($106	)	$	94		$	112			($224	)
Net investment gains (losses)		2,100			570			652			(118	)		(43	)		1,039
Net investment gains (losses) tax provision		(755	)		(201	)		(224	)		24			15			(369	)
Net investment gains (losses), net of income tax		1,345			369			428			(94	)		(28	)		670
Adjustments related to universal life and investment-type product policy fees		16			—			16			—			—			—
Adjustments related to policyholder benefits and dividends		(123	)		21			(93	)		(51	)		—			—
Adjustments related to other expenses		(778	)		—			(778	)		—			—			—
Adjustments related to tax provision		308			(7	)		297			18			—			—
Adjustments related to net investment gains (losses), net of income tax (1)		(577	)		14			(558	)		(33	)		—			—
Discontinued operations, net of income tax		38			—			(20	)		—			—			58
Net income available to common shareholders		954			655			(256	)		(33	)		84			504
Preferred stock dividends		31			—			—			—			—			31
Net income	$	985		$	655			($256	)		($33	)	$	84		$	535
Premiums, Fees and Other Revenues	$	8,163		$	4,157		$	2,131		$	1,006		$	747		$	122

(1) Adjustments related to net investment gains (losses), net of income tax, includes amortization of unearned revenue and deferred policy acquisition costs, adjustments to the policyholder dividend obligation and amounts allocable to certain participating contracts.

6

METLIFE, INC.
CONSOLIDATING STATEMENT OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS

	For the Three Months Ended December 31, 2007
																Corporate, Other
Unaudited (In millions)	Consolidated			Institutional			Individual			International			Auto & Home			& Eliminations
REVENUES
Premiums	$	5,932		$	3,113		$	1,222		$	824		$	761		$	12
Universal life and investment-type product policy fees		1,389			224			885			280			—			—
Investment income, net		4,791			2,210			1,808			359			54			360
Other revenues		359			180			152			2			15			10
		12,471			5,727			4,067			1,465			830			382
EXPENSES
Policyholder benefits and dividends		6,511			3,495			1,949			574			479			14
Interest credited to policyholder account balances		1,381			778			518			85			—			—
Capitalization of deferred policy acquisition costs		(849	)		(58	)		(419	)		(257	)		(113	)		(2	)
Amortization of deferred policy acquisition costs		585			69			302			93			119			2
Other expenses		3,168			641			1,140			763			211			413
		10,796			4,925			3,490			1,258			696			427
Operating earnings before provision for income tax		1,675			802			577			207			134			(45	)
Provision for income tax		479			275			197			14			31			(38	)
Operating earnings		1,196			527			380			193			103			(7	)
Preferred stock dividends		35			—			—			—			—			35
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS	$	1,161		$	527		$	380		$	193		$	103			($42	)
Net Income Reconciliation
Operating earnings available to common shareholders	$	1,161		$	527		$	380		$	193		$	103			($42	)
Net investment gains (losses)		(163	)		(128	)		(21	)		(9	)		3			(8	)
Net investment gains (losses) tax provision		38			42			8			4			(1	)		(15	)
Net investment gains (losses), net of income tax		(125	)		(86	)		(13	)		(5	)		2			(23	)
Adjustments related to universal life and investment-type product policy fees		2			—			2			—			—			—
Adjustments related to policyholder benefits and dividends		9			27			(51	)		34			—			(1	)
Adjustments related to other expenses		19			—			19			—			—			—
Adjustments related to tax provision		(9	)		(9	)		11			(11	)		—			—
Adjustments related to net investment gains (losses), net of income tax (1)		21			18			(19	)		23			—			(1	)
Discontinued operations, net of income tax		26			—			—			(6	)		—			32
Net income available to common shareholders		1,083			459			348			205			105			(34	)
Preferred stock dividends		35			—			—			—			—			35
Net income	$	1,118		$	459		$	348		$	205		$	105		$	1
Premiums, Fees and Other Revenues	$	7,680		$	3,517		$	2,259		$	1,106		$	776		$	22

(1) Adjustments related to net investment gains (losses), net of income tax, includes amortization of unearned revenue and deferred policy acquisition costs, adjustments to the policyholder dividend obligation and amounts allocable to certain participating contracts.

7

METLIFE, INC.
CONSOLIDATING STATEMENT OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS

	For the Year Ended December 31, 2008
																Corporate, Other
Unaudited (In millions)	Consolidated			Institutional			Individual			International			Auto & Home			& Eliminations
REVENUES
Premiums	$	25,914		$	14,964		$	4,481		$	3,470		$	2,971		$	28
Universal life and investment-type product policy fees		5,363			886			3,382			1,095			—			—
Investment income, net		16,304			7,501			6,528			1,285			186			804
Other revenues		1,586			775			571			18			38			184
		49,167			24,126			14,962			5,868			3,195			1,016
EXPENSES
Policyholder benefits and dividends		29,007			16,650			7,200			3,185			1,924			48
Interest credited to policyholder account balances		4,743			2,537			2,028			171			—			7
Capitalization of deferred policy acquisition costs		(3,092	)		(233	)		(1,614	)		(798	)		(444	)		(3	)
Amortization of deferred policy acquisition costs		2,968			151			1,977			381			454			5
Other expenses		11,527			2,490			4,259			2,088			794			1,896
		45,153			21,595			13,850			5,027			2,728			1,953
Operating earnings before provision for income tax		4,014			2,531			1,112			841			467			(937	)
Provision for income tax		1,153			857			369			319			104			(496	)
Operating earnings		2,861			1,674			743			522			363			(441	)
Preferred stock dividends		125			—			—			—			—			125
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS	$	2,736		$	1,674		$	743		$	522		$	363			($566	)
Operating Return on Common Equity (1)		8.0	%
Net Income Reconciliation
Operating earnings available to common shareholders	$	2,736		$	1,674		$	743		$	522		$	363			($566	)
Net investment gains (losses)		1,771			163			651			131			(134	)		960
Net investment gains (losses) tax provision		(671	)		(56	)		(227	)		(81	)		46			(353	)
Net investment gains (losses), net of income tax		1,100			107			424			50			(88	)		607
Adjustments related to universal life and investment-type product policy fees		18			—			18			—			—			—
Adjustments related to policyholder benefits and dividends		(181	)		125			(318	)		12			—			—
Adjustments related to other expenses		(521	)		—			(521	)		—			—			—
Adjustments related to tax provision		241			(44	)		289			(4	)		—			—
Adjustments related to net investment gains (losses), net of income tax (2)		(443	)		81			(532	)		8			—			—
Cumulative effect of a change in accounting principle, net of income tax		—			—			—			—			—			—
Discontinued operations, net of income tax		(309	)		—			(16	)		—			—			(293	)
Net income available to common shareholders		3,084			1,862			619			580			275			(252	)
Preferred stock dividends		125			—			—			—			—			125
Net income	$	3,209		$	1,862		$	619		$	580		$	275			($127	)
Premiums, Fees and Other Revenues	$	32,863		$	16,625		$	8,434		$	4,583		$	3,009		$	212
Net Income Return on Common Equity, excluding AOCI (3)		9.1	%
Net Income Return on Common Equity (3)		11.2	%

(1)	Operating return on common equity is defined as operating earnings available to common shareholders divided by average GAAP common equity, excluding accumulated other comprehensive income.
(2)	Adjustments related to net investment gains (losses), net of income tax, includes amortization of unearned revenue and deferred policy acquisition costs, adjustments to the policyholder dividend obligation and amounts allocable to certain participating contracts.
(3)	Net income return on common equity is defined as net income available to common shareholders divided by average GAAP common equity.

8

METLIFE, INC.
CONSOLIDATING STATEMENT OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS

	For the Year Ended December 31, 2007
																Corporate, Other
Unaudited (In millions)	Consolidated			Institutional			Individual			International			Auto & Home			& Eliminations
REVENUES
Premiums	$	22,970		$	12,392		$	4,481		$	3,096		$	2,966		$	35
Universal life and investment-type product policy fees		5,250			802			3,453			995			—			—
Investment income, net		18,328			8,384			7,071			1,249			196			1,428
Other revenues		1,465			726			600			24			43			72
		48,013			22,304			15,605			5,364			3,205			1,535
EXPENSES
Policyholder benefits and dividends		25,349			13,802			7,168			2,521			1,811			47
Interest credited to policyholder account balances		5,435			3,068			2,013			354			—			—
Capitalization of deferred policy acquisition costs		(3,064	)		(249	)		(1,593	)		(743	)		(471	)		(8	)
Amortization of deferred policy acquisition costs		2,375			251			1,336			309			468			11
Other expenses		11,243			2,437			4,389			2,183			832			1,402
		41,338			19,309			13,313			4,624			2,640			1,452
Operating earnings before provision for income tax		6,675			2,995			2,292			740			565			83
Provision for income tax		1,968			1,028			786			172			139			(157	)
Operating earnings		4,707			1,967			1,506			568			426			240
Preferred stock dividends		137			—			—			—			—			137
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS	$	4,570		$	1,967		$	1,506		$	568		$	426		$	103
Operating Return on Common Equity (1)		14.6	%
Net Income Reconciliation
Operating earnings available to common shareholders	$	4,570		$	1,967		$	1,506		$	568		$	426		$	103
Net investment gains (losses)		(844	)		(796	)		(156	)		54			15			39
Net investment gains (losses) tax provision		280			279			54			(16	)		(5	)		(32	)
Net investment gains (losses), net of income tax		(564	)		(517	)		(102	)		38			10			7
Adjustments related to universal life and investment-type product policy fees		(12	)		—			(12	)		—			—			—
Adjustments related to policyholder benefits and dividends		(156	)		(3	)		(210	)		57			—			—
Adjustments related to other expenses		125			—			125			—			—			—
Adjustments related to tax provision		19			2			36			(19	)		—			—
Adjustments related to net investment gains (losses), net of income tax (2)		(24	)		(1	)		(61	)		38			—			—
Discontinued operations, net of income tax		198			—			14			(9	)		—			193
Net income available to common shareholders		4,180			1,449			1,357			635			436			303
Preferred stock dividends		137			—			—			—			—			137
Net income	$	4,317		$	1,449		$	1,357		$	635		$	436		$	440
Premiums, Fees and Other Revenues	$	29,685		$	13,920		$	8,534		$	4,115		$	3,009		$	107
Net Income Return on Common Equity, excluding AOCI (3)		13.3	%
Net Income Return on Common Equity (3)		12.9	%

(1)	Operating return on common equity is defined as operating earnings available to common shareholders divided by average GAAP common equity, excluding accumulated other comprehensive income.
(2)	Adjustments related to net investment gains (losses), net of income tax, includes amortization of unearned revenue and deferred policy acquisition costs, adjustments to the policyholder dividend obligation and amounts allocable to certain participating contracts.
(3)	Net income return on common equity is defined as net income available to common shareholders divided by average GAAP common equity.

9

SUMMARY OF SEGMENT OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS (1)

	For the Three Months Ended
	December 31,			March 31,			June 30,			September 30,			December 31,
Unaudited (In millions)	2007			2008			2008			2008			2008
INSTITUTIONAL	$	527		$	558		$	448		$	396		$	272
INDIVIDUAL		380			312			322			215			(106	)
INTERNATIONAL		193			137			147			144			94
AUTO & HOME		103			98			52			101			112
CORPORATE, OTHER & ELIMINATIONS		(42	)		(33	)		(87	)		(222	)		(224	)
CONSOLIDATED	$	1,161		$	1,072		$	882		$	634		$	148

(1) A reconciliation of operating earnings available to common shareholders to net income for each segment appears in this QFS as follows: (i) Institutional Operations, page 11; (ii) Individual Operations, page 18; (iii) International Operations, page 28; (iv) Auto & Home Operations, page 32; and (v) Corporate, Other & Eliminations, page 36. A Consolidated reconciliation of operating earnings available to common shareholders to net income for MetLife, Inc. appears on page 4.

10

INSTITUTIONAL

STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS

	For the Three Months Ended															For the Year Ended
Unaudited (In millions, except number of	December 31,			March 31,			June 30,			September 30,			December 31,			December 31,			December 31,
sales representatives)	2007			2008			2008			2008			2008			2007			2008
REVENUES
Premiums	$	3,113		$	3,573		$	3,599		$	4,065		$	3,727		$	12,392		$	14,964
Universal life and investment-type product policy fees		224			224			208			215			239			802			886
Investment income, net		2,210			2,026			1,939			1,850			1,686			8,384			7,501
Other revenues		180			190			171			223			191			726			775
		5,727			6,013			5,917			6,353			5,843			22,304			24,126
EXPENSES
Policyholder benefits and dividends		3,495			3,926			4,048			4,519			4,157			13,802			16,650
Interest credited to policyholder account balances		778			669			601			623			644			3,068			2,537
Other expenses		652			574			592			612			630			2,439			2,408
		4,925			5,169			5,241			5,754			5,431			19,309			21,595
Operating earnings before provision for income tax		802			844			676			599			412			2,995			2,531
Provision for income tax		275			286			228			203			140			1,028			857
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS	$	527		$	558		$	448		$	396		$	272		$	1,967		$	1,674
Net Income Reconciliation
Operating earnings available to common shareholders	$	527		$	558		$	448		$	396		$	272		$	1,967		$	1,674
Net investment gains (losses)		(128	)		(744	)		122			215			570			(796	)		163
Net investment gains (losses) tax provision		42			260			(41	)		(74	)		(201	)		279			(56	)
Net investment gains (losses), net of income tax		(86	)		(484	)		81			141			369			(517	)		107
Adjustments related to universal life and investment-type product policy fees		—			—			—			—			—			—			—
Adjustments related to policyholder benefits and dividends		27			15			32			57			21			(3	)		125
Adjustments related to other expenses		—			—			—			—			—			—			—
Adjustments related to tax provision		(9	)		(5	)		(12	)		(20	)		(7	)		2			(44	)
Adjustments related to net investment gains (losses), net of income tax (1)		18			10			20			37			14			(1	)		81
Discontinued operations, net of income tax		—			—			—			—			—			—			—
Net income available to common shareholders		459			84			549			574			655			1,449			1,862
Net Income Reconciliation
Preferred stock dividends		—			—			—			—			—			—			—
Net income	$	459		$	84		$	549		$	574		$	655		$	1,449		$	1,862
Premiums, Fees and Other Revenues	$	3,517		$	3,987		$	3,978		$	4,503		$	4,157		$	13,920		$	16,625
Number of Sales Representatives		637			656			647			628			632			637			632

(1) Adjustments related to net investment gains (losses), net of income tax, includes amortization of deferred policy acquisition costs and amounts allocable to certain participating contracts.

11

INSTITUTIONAL
STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS — PRODUCT LEVEL
GROUP LIFE

	For the Three Months Ended															For the Year Ended
	December 31,			March 31,			June 30,			September 30,			December 31,			December 31,			December 31,
Unaudited (In millions)	2007			2008			2008			2008			2008			2007			2008
REVENUES
Premiums	$	1,525		$	1,642		$	1,693		$	1,666		$	1,645		$	6,231		$	6,646
Universal life and investment-type product policy fees		221			220			205			211			234			790			870
Investment income, net		358			334			341			315			293			1,370			1,283
Other revenues		16			16			16			19			37			79			88
		2,120			2,212			2,255			2,211			2,209			8,470			8,887
EXPENSES
Policyholder benefits and dividends		1,599			1,736			1,751			1,692			1,721			6,404			6,900
Interest credited to policyholder account balances		147			128			122			121			119			608			490
Other expenses		232			168			176			178			192			752			714
		1,978			2,032			2,049			1,991			2,032			7,764			8,104
Operating earnings before provision for income tax		142			180			206			220			177			706			783
Provision for income tax		49			61			70			75			60			243			266
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS	$	93		$	119		$	136		$	145		$	117		$	463		$	517
Net investment gains (losses), net of income tax		(61	)		(115	)		1			32			(85	)		(111	)		(167	)
Adjustments related to net investment gains (losses), net of income tax		2			1			—			1			1			3			3
Discontinued operations, net of income tax		—			—			—			—			—			—			—
Net income available to common shareholders		34			5			137			178			33			355			353
Preferred stock dividends		—			—			—			—			—			—			—
Net income	$	34		$	5		$	137		$	178		$	33		$	355		$	353
Premiums, Fees and Other Revenues	$	1,762		$	1,878		$	1,914		$	1,896		$	1,916		$	7,100		$	7,604
Incurred Loss Ratio (Mortality Experience) of Term Life		93.2	%		93.8	%		91.3	%		90.7	%		93.3	%

12

INSTITUTIONAL
STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS — PRODUCT LEVEL
RETIREMENT & SAVINGS

	;
	For the Three Months Ended														For the Year Ended
	December 31,			March 31,			June 30,		September 30,			December 31,			December 31,			December 31,
Unaudited (In millions)	2007			2008			2008		2008			2008			2007			2008
REVENUES
Premiums	$	313		$	540		$	494	$	994		$	632		$	1,225		$	2,660
Universal life and investment-type product policy fees		1			2			1		2			1			7			6
Investment income, net		1,639			1,502			1,406		1,359			1,239			6,254			5,506
Other revenues		69			64			59		103			56			264			282
		2,022			2,108			1,960		2,458			1,928			7,750			8,454
EXPENSES
Policyholder benefits and dividends		818			1,002			1,072		1,574			1,185			3,218			4,833
Interest credited to policyholder account balances		625			535			473		496			518			2,453			2,022
Other expenses		69			86			85		93			99			345			363
		1,512			1,623			1,630		2,163			1,802			6,016			7,218
Operating earnings before provision for income tax		510			485			330		295			126			1,734			1,236
Provision for income tax		174			164			111		100			42			594			417
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS	$	336		$	321		$	219	$	195		$	84		$	1,140		$	819
Net investment gains (losses), net of income tax		(147	)		(437	)		140		(20	)		(712	)		(537	)		(1,029	)
Adjustments related to net investment gains (losses), net of income tax		22			5			11		22			10			10			48
Discontinued operations, net of income tax		—			—			—		—			—			—			—
Net income available to common shareholders		211			(111	)		370		197			(618	)		613			(162	)
Preferred stock dividends		—			—			—		—			—			—			—
Net income	$	211			($111	)	$	370	$	197			($618	)	$	613			($162	)
Premiums, Fees and Other Revenues	$	383		$	606		$	554	$	1,099		$	689		$	1,496		$	2,948

13

INSTITUTIONAL
STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS — PRODUCT LEVEL
NON-MEDICAL HEALTH & OTHER

	For the Three Months Ended															For the Year Ended
	December 31,			March 31,			June 30,			September 30,			December 31,			December 31,			December 31,
Unaudited (In millions)	2007			2008			2008			2008			2008			2007			2008
REVENUES
Premiums	$	1,275		$	1,391		$	1,412		$	1,405		$	1,450		$	4,936		$	5,658
Universal life and investment-type product policy fees		2			2			2			2			4			5			10
Investment income, net		213			190			192			176			154			760			712
Other revenues		95			110			96			101			98			383			405
		1,585			1,693			1,702			1,684			1,706			6,084			6,785
EXPENSES
Policyholder benefits and dividends		1,078			1,188			1,225			1,253			1,251			4,180			4,917
Interest credited to policyholder account balances		6			6			6			6			7			7			25
Other expenses		351			320			331			341			339			1,342			1,331
		1,435			1,514			1,562			1,600			1,597			5,529			6,273
Operating earnings before provision for income tax		150			179			140			84			109			555			512
Provision for income tax		52			61			47			28			38			191			174
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS	$	98		$	118		$	93		$	56		$	71		$	364		$	338
Net investment gains (losses), net of income tax		122			68			(60	)		129			1,166			131			1,303
Adjustments related to net investment gains (losses), net of income tax		(6	)		4			9			14			3			(14	)		30
Discontinued operations, net of income tax		—			—			—			—			—			—			—
Net income available to common shareholders		214			190			42			199			1,240			481			1,671
Preferred stock dividends		—			—			—			—			—			—			—
Net income	$	214		$	190		$	42		$	199		$	1,240		$	481		$	1,671
Premiums, Fees and Other Revenues	$	1,372		$	1,503		$	1,510		$	1,508		$	1,552		$	5,324		$	6,073
Group Disability Premiums, Fees and Other Revenues (Included in Total)	$	410		$	438		$	404		$	395		$	418		$	1,558		$	1,655
Incurred Loss Ratio (Morbidity Experience) of Group Disability		90.6	%		80.6	%		89.7	%		95.6	%		92.9	%		90.6	%		92.9	%

14

INSTITUTIONAL

FUTURE POLICY BENEFITS, POLICYHOLDER ACCOUNT BALANCES AND SEPARATE ACCOUNT LIABILITIES

FUTURE POLICY BENEFITS AND POLICYHOLDER ACCOUNT BALANCES

GROUP LIFE	For the Three Months Ended
		December 31,			March 31,			June 30,			September 30,			December 31,
Unaudited (In millions)		2007			2008			2008			2008			2008
Balance, beginning of period		$	17,314		$	17,323		$	17,637		$	17,899		$	17,648
Premiums and deposits			2,939			3,164			3,697			3,299			3,163
Interest on reserves			189			169			146			163			162
Surrenders and withdrawals			(1,398	)		(1,293	)		(1,597	)		(1,805	)		(1,702	)
Benefits and reserves			(1,605	)		(1,735	)		(1,750	)		(1,691	)		(1,713	)
Other			(116	)		9			(234	)		(217	)		(168	)
Balance, end of period		$	17,323		$	17,637		$	17,899		$	17,648		$	17,390

RETIREMENT & SAVINGS	For the Three Months Ended
		December 31,			March 31,			June 30,			September 30,			December 31,
Unaudited (In millions)		2007			2008			2008			2008			2008
Balance, beginning of period		$	91,401		$	89,532		$	92,653		$	94,202		$	95,834
Premiums and deposits			2,064			5,894			9,267			12,761			19,552
Interest on reserves			1,162			1,081			1,151			1,051			1,081
Surrenders and withdrawals			(4,338	)		(3,563	)		(7,329	)		(10,512	)		(15,120	)
Benefits and reserves			(605	)		(701	)		(747	)		(802	)		(734	)
Other			(152	)		410			(793	)		(866	)		494
Balance, end of period		$	89,532		$	92,653		$	94,202		$	95,834		$	101,107
NON-MEDICAL HEALTH & OTHER	For the Three Months Ended
		December 31,			March 31,			June 30,			September 30,			December 31,
Unaudited (In millions)		2007			2008			2008			2008			2008
Balance, beginning of period		$	10,819		$	11,118		$	11,301		$	11,539		$	11,822
Premiums and deposits			1,224			1,369			1,385			1,389			1,429
Interest on reserves			110			116			120			125			127
Surrenders and withdrawals			18			14			8			(2	)		(14	)
Benefits and reserves			(1,113	)		(1,217	)		(1,252	)		(1,281	)		(1,271	)
Other			60			(99	)		(23	)		52			27
Balance, end of period		$	11,118		$	11,301		$	11,539		$	11,822		$	12,120

SEPARATE ACCOUNT LIABILITIES

GROUP LIFE	For the Three Months Ended
		December 31,			March 31,			June 30,			September 30,			December 31,
Unaudited (In millions)		2007			2008			2008			2008			2008
Balance, beginning of period		$	15,261		$	16,914		$	16,649		$	15,597		$	16,527
Premiums and deposits			1,134			174			167			132			236
Investment performance			630			(151	)		(142	)		(627	)		(949	)
Surrenders and withdrawals			(101	)		(243	)		(290	)		(144	)		(119	)
Policy charges			(1	)		(32	)		(35	)		(33	)		(34	)
Other			(9	)		(13	)		(752	)		1,602			(295	)
Balance, end of period		$	16,914		$	16,649		$	15,597		$	16,527		$	15,366
RETIREMENT & SAVINGS	For the Three Months Ended
		December 31,			March 31,			June 30,			September 30,			December 31,
Unaudited (In millions)		2007			2008			2008			2008			2008
Balance, beginning of period		$	35,607		$	34,533		$	34,510		$	33,482		$	32,628
Premiums and deposits			754			1,141			690			1,309			1,266
Investment performance			(186	)		467			(229	)		(1,301	)		(235	)
Surrenders and withdrawals			(1,614	)		(1,608	)		(1,228	)		(1,243	)		(1,482	)
Policy charges			(36	)		(23	)		(23	)		(21	)		(19	)
Other			8			—			(238	)		402			(1,375	)
Balance, end of period		$	34,533		$	34,510		$	33,482		$	32,628		$	30,783
NON-MEDICAL HEALTH & OTHER	For the Three Months Ended
		December 31,			March 31,			June 30,			September 30,			December 31,
Unaudited (In millions)		2007			2008			2008			2008			2008
Balance, beginning of period		$	552		$	599		$	645		$	667		$	705
Premiums and deposits			80			65			55			44			49
Investment performance			26			11			(16	)		(6	)		27
Surrenders and withdrawals			(25	)		(20	)		(14	)		(4	)		(9	)
Policy charges			(18	)		(7	)		(4	)		(5	)		(9	)
Other			(16	)		(3	)		1			9			—
Balance, end of period		$	599		$	645		$	667		$	705		$	763

15

INSTITUTIONAL

OTHER EXPENSES BY MAJOR CATEGORY

	For the Three Months Ended
		December 31,		March 31,		June 30,		September 30,		December 31,
Unaudited (In millions)		2007		2008		2008		2008		2008
Direct and allocated expenses		$	474	$	422	$	434	$	452	$	441
Pension and other post-retirement benefit costs			5		2		2		2		31
Premium tax and other tax, licenses and fees			84		47		54		58		44
			563		471		490		512		516
Commissions and other expenses			89		103		102		100		114
Total Other Expenses		$	652	$	574	$	592	$	612	$	630

16

INSTITUTIONAL

SPREADS BY PRODUCT

GROUP LIFE	For the Three Months Ended
		December 31,			March 31,			June 30,			September 30,			December 31,
Unaudited		2007			2008			2008			2008			2008
Investment income yield			6.81	%		6.24	%		6.31	%		5.82	%		5.38	%
Average crediting rate			4.30	%		3.83	%		3.62	%		3.55	%		3.40	%
Annualized General Account Spread			2.51	%		2.41	%		2.69	%		2.27	%		1.98	%

RETIREMENT & SAVINGS	For the Three Months Ended
		December 31,			March 31,			June 30,			September 30,			December 31,
Unaudited		2007			2008			2008			2008			2008
Investment income yield			7.14	%		6.50	%		5.88	%		5.69	%		4.95	%
Average crediting rate			5.44	%		4.99	%		4.59	%		4.73	%		4.71	%
Annualized General Account Spread			1.70	%		1.51	%		1.29	%		0.96	%		0.24	%

NON-MEDICAL HEALTH & OTHER	For the Three Months Ended
		December 31,			March 31,			June 30,			September 30,			December 31,
Unaudited		2007			2008			2008			2008			2008
Investment income yield			7.59	%		6.37	%		6.20	%		5.34	%		4.25	%
Average crediting rate			4.86	%		4.77	%		4.84	%		4.85	%		4.73	%
Annualized General Account Spread			2.73	%		1.60	%		1.36	%		0.49	%		(0.48	%)

17

INDIVIDUAL

STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS

	For the Three Months Ended																For the Year Ended
		December 31,			March 31,			June 30,			September 30,			December 31,				December 31,			December 31,
Unaudited (In millions)		2007			2008			2008			2008			2008				2007			2008
REVENUES
Premiums		$	1,222		$	1,063		$	1,067		$	1,074		$	1,277			$	4,481		$	4,481
Universal life and investment-type product policy fees			885			878			898			873			733				3,453			3,382
Investment income, net			1,808			1,684			1,690			1,645			1,509				7,071			6,528
Other revenues			152			149			154			147			121				600			571
			4,067			3,774			3,809			3,739			3,640				15,605			14,962
EXPENSES
Policyholder benefits and dividends			1,949			1,708			1,757			1,744			1,991				7,168			7,200
Interest credited to policyholder account balances			518			502			494			492			540				2,013			2,028
Capitalization of deferred policy acquisition costs			(419	)		(354	)		(388	)		(398	)		(474	)			(1,593	)		(1,614	)
Amortization of deferred policy acquisition costs			302			417			386			509			665				1,336			1,977
Other expenses			1,140			1,033			1,078			1,070			1,078				4,389			4,259
			3,490			3,306			3,327			3,417			3,800				13,313			13,850
Operating earnings before provision for income tax			577			468			482			322			(160	)			2,292			1,112
Provision for income tax			197			156			160			107			(54	)			786			369
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS		$	380		$	312		$	322		$	215			($106	)		$	1,506		$	743
Net Income Reconciliation
Operating earnings available to common shareholders		$	380		$	312		$	322		$	215			($106	)		$	1,506		$	743
Net investment gains (losses)			(21	)		(98	)		(256	)		353			652				(156	)		651
Net investment gains (losses) tax provision			8			34			89			(126	)		(224	)			54			(227	)
Net investment gains (losses), net of income tax			(13	)		(64	)		(167	)		227			428				(102	)		424
Adjustments related to universal life and investment-type product policy fees			2			5			(3	)		—			16				(12	)		18
Adjustments related to policyholder benefits and dividends			(51	)		(77	)		(77	)		(71	)		(93	)			(210	)		(318	)
Adjustments related to other expenses			19			114			144			(1	)		(778	)			125			(521	)
Adjustments related to tax provision			11			(14	)		(21	)		27			297				36			289
Adjustments related to net investment gains (losses), net of income tax (1)			(19	)		28			43			(45	)		(558	)			(61	)		(532	)
Discontinued operations, net of income tax			—			—			1			3			(20	)			14			(16	)
Net income available to common shareholders			348			276			199			400			(256	)			1,357			619
Preferred stock dividends			—			—			—			—			—				—			—
Net income		$	348		$	276		$	199		$	400			($256	)		$	1,357		$	619
Premiums, Fees and Other Revenues		$	2,259		$	2,090		$	2,119		$	2,094		$	2,131			$	8,534		$	8,434

(1) Adjustments related to net investment gains (losses), net of income tax, includes amortization of unearned revenue and deferred policy acquisition costs, adjustments to the policyholder dividend obligation and amounts allocable to certain participating contracts.

18

INDIVIDUAL
STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS — PRODUCT LEVEL
TRADITIONAL LIFE

	For the Three Months Ended																For the Year Ended
		December 31,			March 31,			June 30,			September 30,			December 31,			December 31,			December 31,
Unaudited (In millions)		2007			2008			2008			2008			2008			2007			2008
REVENUES
Premiums		$	1,140		$	981		$	986		$	1,015		$	1,138		$	4,142		$	4,120
Universal life and investment-type product policy fees			—			—			—			—			—			—			—
Investment income, net			841			799			834			811			724			3,297			3,168
Other revenues			1			1			(1	)		2			—			1			2
			1,982			1,781			1,819			1,828			1,862			7,440			7,290
EXPENSES
Policyholder benefits and dividends			1,673			1,429			1,448			1,468			1,566			6,105			5,911
Interest credited to policyholder account balances			—			—			—			—			—			—			—
Capitalization of deferred policy acquisition costs			(69	)		(58	)		(63	)		(66	)		(56	)		(251	)		(243	)
Amortization of deferred policy acquisition costs			(30	)		45			45			56			51			147			197
Other expenses			254			231			244			238			241			997			954
			1,828			1,647			1,674			1,696			1,802			6,998			6,819
Operating earnings before provision for income tax			154			134			145			132			60			442			471
Provision for income tax			51			43			47			43			20			146			153
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS		$	103		$	91		$	98		$	89		$	40		$	296		$	318
Net investment gains (losses), net of income tax			(33	)		(92	)		8			(16	)		(16	)		(66	)		(116	)
Adjustments related to net investment gains (losses), net of income tax			(4	)		11			(20	)		(27	)		(125	)		(56	)		(161	)
Discontinued operations, net of income tax			(1	)		(1	)		—			1			(5	)		1			(5	)
Net income available to common shareholders			65			9			86			47			(106	)		175			36
Preferred stock dividends			—			—			—			—			—			—			—
Net income		$	65		$	9		$	86		$	47			($106	)	$	175		$	36
Premiums, Fees and Other Revenues		$	1,141		$	982		$	985		$	1,017		$	1,138		$	4,143		$	4,122

19

INDIVIDUAL
STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS — PRODUCT LEVEL
VARIABLE & UNIVERSAL LIFE

	For the Three Months Ended																For the Year Ended
		December 31,			March 31,			June 30,			September 30,			December 31,				December 31,			December 31,
Unaudited (In millions)		2007			2008			2008			2008			2008				2007			2008
REVENUES
Premiums		$	—		$	—		$	—		$	—		$	—			$	—		$	—
Universal life and investment-type product policy fees			349			391			395			389			354				1,466			1,529
Investment income, net			222			218			214			210			187				854			829
Other revenues			2			1			1			4			—				5			6
			573			610			610			603			541				2,325			2,364
EXPENSES
Policyholder benefits and dividends			119			157			140			146			154				459			597
Interest credited to policyholder account balances			153			150			154			157			155				599			616
Capitalization of deferred policy acquisition costs			(124	)		(100	)		(103	)		(95	)		(93	)			(410	)		(391	)
Amortization of deferred policy acquisition costs			62			128			115			135			46				367			424
Other expenses			245			215			212			214			206				891			847
			455			550			518			557			468				1,906			2,093
Operating earnings before provision for income tax			118			60			92			46			73				419			271
Provision for income tax			40			20			30			15			25				144			90
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS		$	78		$	40		$	62		$	31		$	48			$	275		$	181
Net investment gains (losses), net of income tax			4			(22	)		(17	)		(2	)		45				(61	)		4
Adjustments related to net investment gains (losses), net of income tax			(4	)		3			5			3			(8	)			8			3
Discontinued operations, net of income tax			1			1			1			2			(13	)			12			(9	)
Net income available to common shareholders			79			22			51			34			72				234			179
Preferred stock dividends			—			—			—			—			—				—			—
Net income		$	79		$	22		$	51		$	34		$	72			$	234		$	179
Premiums, Fees and Other Revenues		$	351		$	392		$	396		$	393		$	354			$	1,471		$	1,535

20

INDIVIDUAL
STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS — PRODUCT LEVEL
ANNUITIES

	For the Three Months Ended																For the Year Ended
		December 31,			March 31,			June 30,			September 30,			December 31,				December 31,			December 31,
Unaudited (In millions)		2007			2008			2008			2008			2008				2007			2008
REVENUES
Premiums		$	82		$	82		$	81		$	59		$	139			$	339		$	361
Universal life and investment-type product policy fees			475			431			444			430			338				1,763			1,643
Investment income, net			696			625			598			583			557				2,735			2,363
Other revenues			46			42			47			43			33				174			165
			1,299			1,180			1,170			1,115			1,067				5,011			4,532
EXPENSES
Policyholder benefits and dividends			157			122			169			130			271				605			692
Interest credited to policyholder account balances			344			334			321			316			366				1,321			1,337
Capitalization of deferred policy acquisition costs			(226	)		(196	)		(222	)		(237	)		(325	)			(932	)		(980	)
Amortization of deferred policy acquisition costs			270			244			226			318			568				822			1,356
Other expenses			471			424			455			463			495				1,820			1,837
			1,016			928			949			990			1,375				3,636			4,242
Operating earnings before provision for income tax			283			252			221			125			(308	)			1,375			290
Provision for income tax			98			85			75			42			(104	)			476			98
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS		$	185		$	167		$	146		$	83			($204	)		$	899		$	192
Net investment gains (losses), net of income tax			25			66			(150	)		237			409				47			562
Adjustments related to net investment gains (losses), net of income tax			(11	)		14			58			(21	)		(425	)			(13	)		(374	)
Discontinued operations, net of income tax			—			—			—			—			(2	)			1			(2	)
Net income available to common shareholders			199			247			54			299			(222	)			934			378
Preferred stock dividends			—			—			—			—			—				—			—
Net income		$	199		$	247		$	54		$	299			($222	)		$	934		$	378
Premiums, Fees and Other Revenues		$	603		$	555		$	572		$	532		$	510			$	2,276		$	2,169

21

INDIVIDUAL
STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS — PRODUCT LEVEL
OTHER

	For the Three Months Ended																For the Year Ended
		December 31,			March 31,			June 30,			September 30,			December 31,				December 31,			December 31,
Unaudited (In millions)		2007			2008			2008			2008			2008				2007			2008
REVENUES
Premiums		$	—		$	—		$	—		$	—		$	—			$	—		$	—
Universal life and investment-type product policy fees			61			56			59			54	��		41				224			210
Investment income, net			49			42			44			41			41				185			168
Other revenues			103			105			107			98			88				420			398
			213			203			210			193			170				829			776
EXPENSES
Policyholder benefits and dividends			—			—			—			—			—				(1	)		—
Interest credited to policyholder account balances			21			18			19			19			19				93			75
Capitalization of deferred policy acquisition costs			—			—			—			—			—				—			—
Amortization of deferred policy acquisition costs			—			—			—			—			—				—			—
Other expenses			170			163			167			155			136				681			621
			191			181			186			174			155				773			696
Operating earnings before provision for income tax			22			22			24			19			15				56			80
Provision for income tax			8			8			8			7			5				20			28
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS		$	14		$	14		$	16			12		$	10			$	36		$	52
Net investment gains (losses), net of income tax			(9	)		(16	)		(8	)		8			(10	)			(22	)		(26	)
Adjustments related to net investment gains (losses), net of income tax			—			—			—			—			—				—			—
Discontinued operations, net of income tax			—			—			—			—			—				—			—
Net income available to common shareholders			5			(2	)		8			20			—				14			26
Preferred stock dividends			—			—			—			—			—				—			—
Net income		$	5			($2	)	$	8		$	20		$	0			$	14		$	26
Premiums, Fees and Other Revenues		$	164		$	161		$	166		$	152		$	129			$	644		$	608

22

INDIVIDUAL

PREMIUMS AND DEPOSITS BY PRODUCT (1)

	For the Three Months Ended
	December 31,			March 31,			June 30,			September 30,			December 31,
Unaudited (In millions)	2007			2008			2008			2008			2008
Life First Year and Renewal, Annuity Type
Life First Year Premiums and Deposits (2)
Traditional Life	$	55		$	50		$	52		$	50		$	54
Variable Life 1st Year		61			50			41			46			37
Universal Life 1st Year		191			145			149			162			137
Total Life First Year Premiums & Deposits		307			245			242			258			228
Life Renewal Premiums and Deposits
Traditional Life		1,201			982			1,052			1,035			1,198
Variable & Universal Life		575			613			552			566			572
Total Life Renewal Premiums and Deposits		1,776			1,595			1,604			1,601			1,770
Annuities Deposits (3)
Fixed Annuity Deposits		261			272			277			499			4,122
Variable Annuity Deposits		3,697			3,192			3,538			3,787			3,424
Total Annuity Deposits		3,958			3,464			3,815			4,286			7,546
Total Premiums and Deposits	$	6,041		$	5,304		$	5,661		$	6,145		$	9,544
Separate Account and General Account
Separate Accounts
Variable & Universal Life	$	284		$	266		$	251		$	248		$	243
Variable Annuities		2,450			2,121			2,285			2,212			2,005
Total Separate Accounts		2,734			2,387			2,536			2,460			2,248
General Accounts
Traditional Life		1,256			1,032			1,104			1,085			1,252
Variable & Universal Life		543			542			491			526			503
Fixed Annuities		261			272			277			499			4,122
Variable Annuities		1,247			1,071			1,253			1,575			1,419
Total General Account		3,307			2,917			3,125			3,685			7,296
Total Premiums and Deposits	$	6,041		$	5,304		$	5,661		$	6,145		$	9,544
Percentage of Premiums and Deposits to Separate Accounts, Excluding Transfers from General Account
Variable & Universal Life		34.3	%		32.9	%		33.8	%		32.0	%		32.6	%
Annuities		61.9	%		61.2	%		59.9	%		51.6	%		26.6	%

(1)	Statutory premiums direct and assumed, excluding Company-sponsored internal exchanges.
(2)	Of the $228 million of Life First Year Premiums and Deposits received during the three months ended December 31, 2008, approximately 42% were distributed through MetLife agents, 19% through New England Financial agents, 36% through MetLife’s Independent Distribution channel and 3% through other distribution channels.
(3)	Of the $7,546 million of Annuities Deposits received during the three months ended December 31, 2008, approximately 17% were distributed through MetLife agents, 5% through New England Financial agents, 71% through MetLife’s Independent Distribution channel and 7% through MetLife Resources representatives.

23

INDIVIDUAL

ADDITIONAL STATISTICAL INFORMATION

	For the Three Months Ended
	December 31,			March 31,			June 30,			September 30,			December 31,
Unaudited	2007			2008			2008			2008			2008
Mortality as a Percentage of Expected		82.7	%		93.2	%		89.8	%		83.2	%		83.9	%
Lapse / Surrender (General and Separate Account) (1)
Traditional Life		5.8	%		5.8	%		5.9	%		5.9	%		6.1	%
Variable & Universal Life		5.2	%		5.4	%		5.5	%		5.5	%		5.7	%
Variable Annuities		10.2	%		10.0	%		9.7	%		9.5	%		9.5	%
Fixed Annuities		14.4	%		13.9	%		12.5	%		11.2	%		11.3	%
Actual Number of Sales Representatives
MetLife Distribution		6,243			6,423			6,447			6,484			6,362
New England Financial		2,155			2,220			2,278			2,335			2,278
Independent Distribution Wholesalers		200			193			201			199			201
MetLife Resources		698			688			688			655			660
Walnut Street and Tower Square Securities		1,351			1,354			1,371			1,361			1,329
P&C Specialists		592			565			552			546			523
Total Agents		11,239			11,443			11,537			11,580			11,353

(1) Lapse/Surrender rates are calculated for the most recent 12 months of experience, excluding Company-sponsored internal exchanges.

24

INDIVIDUAL

FUTURE POLICY BENEFITS, POLICYHOLDER ACCOUNT BALANCES AND SEPARATE ACCOUNT LIABILITIES

FUTURE POLICY BENEFITS AND POLICYHOLDER ACCOUNT BALANCES

TRADITIONAL LIFE	For the Three Months Ended
	December 31,			March 31,			June 30,			September 30,			December 31,
Unaudited (In millions)	2007			2008			2008			2008			2008
Balance, beginning of period	$	52,093		$	52,379		$	52,452		$	52,596		$	52,734
Premiums and deposits (1)		1,231			1,066			1,075			1,099			1,227
Interest on reserves		532			529			533			535			539
Surrenders and withdrawals		(452	)		(463	)		(459	)		(453	)		(491	)
Benefit payments		(616	)		(614	)		(546	)		(528	)		(541	)
Other		(409	)		(445	)		(459	)		(515	)		(499	)
Balance, end of period	$	52,379		$	52,452		$	52,596		$	52,734		$	52,969
VARIABLE & UNIVERSAL LIFE	For the Three Months Ended
	December 31,			March 31,			June 30,			September 30,			December 31,
Unaudited (In millions)	2007			2008			2008			2008			2008
Balance, beginning of period	$	15,340		$	15,532		$	15,720		$	15,849		$	16,046
Premiums and deposits (1) (2)		532			547			491			528			500
Interest on reserves		152			149			155			157			156
Surrenders and withdrawals		(119	)		(153	)		(135	)		(126	)		(181	)
Net transfers from (to) separate account		28			27			9			22			44
Policy charges		(367	)		(373	)		(378	)		(390	)		(389	)
Benefit payments		(35	)		(41	)		(39	)		(43	)		(30	)
Other		1			32			26			49			45
Balance, end of period	$	15,532		$	15,720		$	15,849		$	16,046		$	16,191
ANNUITIES	For the Three Months Ended
	December 31,			March 31,			June 30,			September 30,			December 31,
Unaudited (In millions)	2007			2008			2008			2008			2008
Balance, beginning of period	$	41,305		$	40,840		$	41,096		$	40,916		$	41,765
Premiums and deposits (1) (2)		1,577			1,428			1,635			2,127			5,622
Interest on reserves		417			415			401			405			457
Surrenders and withdrawals		(1,410	)		(1,245	)		(1,154	)		(1,130	)		(1,615	)
Net transfers from (to) separate account		(942	)		(307	)		(683	)		(315	)		1
Policy charges		(3	)		(5	)		(4	)		(6	)		(8	)
Benefit payments		(276	)		(295	)		(287	)		(267	)		(287	)
Other		172			265			(88	)		35			2,002
Balance, end of period	$	40,840		$	41,096		$	40,916		$	41,765		$	47,937

SEPARATE ACCOUNT LIABILITIES

VARIABLE & UNIVERSAL LIFE	For the Three Months Ended
	December 31,			March 31,			June 30,			September 30,			December 31,
Unaudited (In millions)	2007			2008			2008			2008			2008
Balance, beginning of period	$	11,074		$	10,838		$	9,928		$	9,798		$	8,831
Premiums and deposits (1)		295			276			296			273			257
Investment performance		(167	)		(842	)		(29	)		(914	)		(1,565	)
Surrenders and withdrawals		(180	)		(160	)		(226	)		(156	)		(120	)
Net transfers from (to) fixed account		(28	)		(27	)		(9	)		(22	)		(44	)
Policy charges		(163	)		(156	)		(160	)		(159	)		(150	)
Other		7			(1	)		(2	)		11			(17	)
Balance, end of period	$	10,838		$	9,928		$	9,798		$	8,831		$	7,192
ANNUITIES	For the Three Months Ended
	December 31,			March 31,			June 30,			September 30,			December 31,
Unaudited (In millions)	2007			2008			2008			2008			2008
Balance, beginning of period	$	93,340		$	92,080		$	84,826		$	84,273		$	75,938
Premiums and deposits (1)		2,780			2,271			2,477			2,404			2,149
Investment performance		(1,881	)		(7,109	)		(930	)		(8,645	)		(13,820	)
Surrenders and withdrawals		(2,706	)		(2,363	)		(2,397	)		(2,047	)		(1,723	)
Net transfers from (to) fixed account		942			307			683			315			(1	)
Policy charges		(397	)		(364	)		(384	)		(364	)		(288	)
Other		2			4			(2	)		2			9
Balance, end of period	$	92,080		$	84,826		$	84,273		$	75,938		$	62,264

(1)	Includes Company-sponsored internal exchanges.
(2)	Includes premiums and deposits directed to General Account investment option of a variable life or variable annuity product.

25

INDIVIDUAL

EXPENSES BY MAJOR CATEGORY

	For the Three Months Ended
	December 31,			March 31,			June 30,			September 30,			December 31,
Unaudited (In millions)	2007			2008			2008			2008			2008
INSURANCE EXPENSES (NET OF CAPITALIZATION OF DAC)
Insurance Expenses	$	968		$	870		$	920		$	929		$	1,009
DAC Capitalization (1)		(433	)		(367	)		(402	)		(405	)		(485	)
Net Insurance Expenses	$	535		$	503		$	518		$	524		$	524
EXPENSES
Commissions	$	341		$	292		$	313		$	321		$	397
Other deferrable expenses		173			147			164			162			158
Direct and allocated expenses, not deferred		404			386			403			401			395
Pension and other post-retirement benefit costs		19			11			11			11			37
Premium tax and other tax, licenses and fees		31			34			29			34			22
Insurance Expenses		968			870			920			929			1,009
Broker-dealer and other expenses		177			166			169			155			138
Reinsurance allowances		(5	)		(3	)		(11	)		(14	)		(69	)
Total Other Expenses	$	1,140		$	1,033		$	1,078		$	1,070		$	1,078

(1) Excludes $14 million, $13 million, $14 million, $7 million and $11 million of DAC capitalization related to reinsurance allowances for the three months ended December 31, 2007, March 31, 2008, June 30, 2008, September 30, 2008 and December 31, 2008 respectively.

26

INDIVIDUAL

SPREADS BY PRODUCT

VARIABLE & UNIVERSAL LIFE	For the Three Months Ended
	December 31,			March 31,			June 30,			September 30,			December 31,
Unaudited	2007			2008			2008			2008			2008
Investment income yield		6.53	%		6.45	%		6.35	%		6.13	%		5.30	%
Average crediting rate		4.52	%		4.48	%		4.54	%		4.49	%		4.47	%
Annualized General Account Spread		2.01	%		1.97	%		1.81	%		1.64	%		0.83	%

ANNUITIES	For the Three Months Ended
	December 31,			March 31,			June 30,			September 30,			December 31,
Unaudited	2007			2008			2008			2008			2008
Investment income yield		6.89	%		6.25	%		6.02	%		5.72	%		5.05	%
Average crediting rate		3.91	%		3.82	%		3.75	%		3.71	%		3.88	%
Annualized General Account Spread		2.98	%		2.43	%		2.27	%		2.01	%		1.17	%

27

INTERNATIONAL

STATEMENT OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS

	For the Three Months Ended															For the Year Ended
	December 31,			March 31,			June 30,			September 30,			December 31,			December 31,			December 31,
Unaudited (In millions, except number of sales representatives)	2007			2008			2008			2008			2008			2007			2008
REVENUES
Premiums	$	824		$	904		$	920		$	893		$	753		$	3,096		$	3,470
Universal life and investment-type product policy fees		280			290			293			264			248			995			1,095
Investment income, net		359			274			365			348			298			1,249			1,285
Other revenues		2			7			6			—			5			24			18
		1,465			1,475			1,584			1,505			1,304			5,364			5,868
EXPENSES
Policyholder benefits and dividends		574			762			830			869			724			2,521			3,185
Interest credited to policyholder account balances		85			47			89			6			29			354			171
Capitalization of deferred policy acquisition costs		(257	)		(239	)		(203	)		(204	)		(152	)		(743	)		(798	)
Amortization of deferred policy acquisition costs		93			113			99			36			133			309			381
Other expenses		763			556			574			580			378			2,183			2,088
		1,258			1,239			1,389			1,287			1,112			4,624			5,027
Operating earnings before provision for income tax		207			236			195			218			192			740			841
Provision for income tax		14			99			48			74			98			172			319
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS	$	193		$	137		$	147		$	144		$	94		$	568		$	522
Net Income Reconciliation
Operating earnings available to common shareholders	$	193		$	137		$	147		$	144		$	94		$	568		$	522
Net investment gains (losses)		(9	)		131			(145	)		263			(118	)		54			131
Net investment gains (losses) tax provision		4			(42	)		37			(100	)		24			(16	)		(81	)
Net investment gains (losses), net of income tax		(5	)		89			(108	)		163			(94	)		38			50
Adjustments related to universal life and investment-type product policy fees		—			—			—			—			—			—			—
Adjustments related to policyholder benefits and dividends		34			(65	)		210			(82	)		(51	)		57			12
Adjustments related to other expenses		—			—			—			—			—			—			—
Adjustments related to tax provision		(11	)		25			(76	)		29			18			(19	)		(4	)
Adjustments related to net investment gains (losses), net of income tax (1)		23			(40	)		134			(53	)		(33	)		38			8
Discontinued operations, net of income tax		(6	)		—			—			—			—			(9	)		—
Net income available to common shareholders		205			186			173			254			(33	)		635			580
Preferred stock dividends		—			—			—			—			—			—			—
Net income	$	205		$	186		$	173		$	254			($33	)	$	635		$	580
Premiums, Fees and Other Revenues	$	1,106		$	1,201		$	1,219		$	1,157		$	1,006		$	4,115		$	4,583
Number of Sales Representatives		4,386			4,847			5,067			5,136			5,137			4,386			5,137

(1) Adjustments related to net investment gains (losses), net of income tax, includes amortization of deferred policy acquisition costs and amounts allocable to certain participating contracts.

28

INTERNATIONAL — LATIN AMERICA REGION
STATEMENT OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS

	For the Three Months Ended																For the Year Ended
		December 31,			March 31,			June 30,			September 30,			December 31,				December 31,			December 31,
Unaudited (In millions, except number of sales representatives)		2007			2008			2008			2008			2008				2007			2008
REVENUES
Premiums		$	397		$	492		$	491		$	481		$	358			$	1,615		$	1,822
Universal life and investment-type product policy fees			154			161			172			150			133				572			616
Investment income, net			270			241			290			331			244				914			1,106
Other revenues			(1	)		6			4			(2	)		5				18			13
			820			900			957			960			740				3,119			3,557
EXPENSES
Policyholder benefits and dividends			231			468			520			557			393				1,420			1,938
Interest credited to policyholder account balances			80			78			87			84			68				302			317
Capitalization of deferred policy acquisition costs			(48	)		(50	)		(52	)		(50	)		(34	)			(181	)		(186	)
Amortization of deferred policy acquisition costs			35			32			40			(18	)		57				109			111
Other expenses			359			195			223			244			93				935			755
			657			723			818			817			577				2,585			2,935
Operating earnings before provision for income tax			163			177			139			143			163				534			622
Provision for income tax			(3	)		68			42			44			48				107			202
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS		$	166		$	109		$	97		$	99		$	115			$	427		$	420
Net Income Reconciliation
Operating earnings available to common shareholders		$	166		$	109		$	97		$	99		$	115			$	427		$	420
Net investment gains (losses)			3			38			(83	)		(34	)		(78	)			8			(157	)
Net investment gains (losses) tax provision			(2	)		(6	)		13			5			12				2			24
Net investment gains (losses), net of income tax			1			32			(70	)		(29	)		(66	)			10			(133	)
Adjustments related to universal life and investment-type product policy fees			—			—			—			—			—				—			—
Adjustments related to policyholder benefits and dividends			34			(72	)		217			(82	)		(51	)			59			12
Adjustments related to other expenses			—			—			—			—			—				—			—
Adjustments related to tax provision			(11	)		25			(76	)		29			18				(19	)		(4	)
Adjustments related to net investment gains (losses), net of income tax (1)			23			(47	)		141			(53	)		(33	)			40			8
Discontinued operations, net of income tax			—			—			—			—			—				—			—
Net income available to common shareholders			190			94			168			17			16				477			295
Preferred stock dividends			—			—			—			—			—				—			—
Net income		$	190		$	94		$	168		$	17		$	16			$	477		$	295
Premiums, Fees and Other Revenues		$	550		$	659		$	667		$	629		$	496			$	2,205		$	2,451
Number of Sales Representatives			283			271			257			187			134				283			134

(1) Adjustments related to net investment gains (losses), net of income tax, includes amortization of deferred policy acquisition costs and amounts allocable to certain participating contracts.

29

INTERNATIONAL — ASIA PACIFIC REGION
STATEMENT OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS

	For the Three Months Ended															For the Year Ended
	December 31,			March 31,			June 30,			September 30,			December 31,			December 31,			December 31,
Unaudited (In millions, except number of sales representatives)	2007			2008			2008			2008			2008			2007			2008
REVENUES
Premiums	$	345		$	321		$	332		$	314		$	302		$	1,198		$	1,269
Universal life and investment-type product policy fees		120			118			108			104			109			404			439
Investment income, net		78			24			63			23			51			297			161
Other revenues		2			1			2			1			—			4			4
		545			464			505			442			462			1,903			1,873
EXPENSES
Policyholder benefits and dividends		323			274			286			287			305			1,040			1,152
Interest credited to policyholder account balances		4			(33	)		1			(62	)		(37	)		49			(131	)
Capitalization of deferred policy acquisition costs		(156	)		(129	)		(111	)		(109	)		(75	)		(435	)		(424	)
Amortization of deferred policy acquisition costs		48			67			47			42			58			175			214
Other expenses		275			230			213			194			154			821			791
		494			409			436			352			405			1,650			1,602
Operating earnings before provision for income tax		51			55			69			90			57			253			271
Provision for income tax		25			34			9			35			55			85			133
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS	$	26		$	21		$	60		$	55		$	2		$	168		$	138
Net Income Reconciliation
Operating earnings available to common shareholders	$	26		$	21		$	60		$	55		$	2		$	168		$	138
Net investment gains (losses)		(1	)		89			(63	)		298			(33	)		46			291
Net investment gains (losses) tax provision		2			(35	)		24			(105	)		8			(16	)		(108	)
Net investment gains (losses), net of income tax		1			54			(39	)		193			(25	)		30			183
Adjustments related to universal life and investment-type product policy fees		—			—			—			—			—			—			—
Adjustments related to policyholder benefits and dividends		—			7			(7	)		—			—			(2	)		—
Adjustments related to other expenses		—			—			—			—			—			—			—
Adjustments related to tax provision		—			—			—			—			—			—			—
Adjustments related to net investment gains (losses), net of income tax (1)		—			7			(7	)		—			—			(2	)		—
Discontinued operations, net of income tax		(6	)		—			—			—			—			(9	)		—
Net income available to common shareholders		21			82			14			248			(23	)		187			321
Preferred stock dividends		—			—			—			—			—			—			—
Net income	$	21		$	82		$	14		$	248			($23	)	$	187		$	321
Premiums, Fees and Other Revenues	$	467		$	440		$	442		$	419		$	411		$	1,606		$	1,712
Number of Sales Representatives		4,103			4,576			4,810			4,949			5,003			4,103			5,003

(1) Adjustments related to net investment gains (losses), net of income tax, includes amortization of deferred policy acquisition costs and amounts allocable to certain participating contracts.

30

INTERNATIONAL — EUROPEAN REGION
STATEMENT OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS

	For the Three Months Ended															For the Year Ended
	December			March			June			September			December			December 31,			December 31,
Unaudited (In millions, except number of sales representatives)	2007			2008			2008			2008			2008			2007			2008
REVENUES
Premiums	$	82		$	91		$	97		$	98		$	93		$	283		$	379
Universal life and investment-type product policy fees		6			11			13			10			6			19			40
Investment income, net		11			9			12			(6	)		3			38			18
Other revenues		1			—			—			1			—			2			1
		100			111			122			103			102			342			438
EXPENSES
Policyholder benefits and dividends		20			20			24			25			26			61			95
Interest credited to policyholder account balances		1			2			1			(16	)		(2	)		3			(15	)
Capitalization of deferred policy acquisition costs		(53	)		(60	)		(40	)		(45	)		(43	)		(127	)		(188	)
Amortization of deferred policy acquisition costs		10			14			12			12			18			25			56
Other expenses		129			131			138			142			131			427			542
		107			107			135			118			130			389			490
Operating earnings before provision for income tax		(7	)		4			(13	)		(15	)		(28	)		(47	)		(52	)
Provision for income tax		(8	)		(3	)		(3	)		(5	)		(5	)		(20	)		(16	)
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS	$	1		$	7			($10	)		($10	)		($23	)		($27	)		($36	)
Net Income Reconciliation
Operating earnings available to common shareholders	$	1		$	7			($10	)		($10	)		($23	)		($27	)		($36	)
Net investment gains (losses)		(11	)		4			1			(1	)		(7	)		—			(3	)
Net investment gains (losses) tax provision		4			(1	)		—			—			4			(2	)		3
Net investment gains (losses), net of income tax		(7	)		3			1			(1	)		(3	)		(2	)		—
Adjustments related to universal life and investment-type product policy fees		—			—			—			—			—			—			—
Adjustments related to policyholder benefits and dividends		—			—			—			—			—			—			—
Adjustments related to other expenses		—			—			—			—			—			—			—
Adjustments related to tax provision		—			—			—			—			—			—			—
Adjustments related to net investment gains (losses), net of income tax (1)		—			—			—			—			—			—			—
Discontinued operations, net of income tax		—			—			—			—			—			—			—
Net income available to common shareholders		(6	)		10			(9	)		(11	)		(26	)		(29	)		(36	)
Preferred stock dividends		—			—			—			—			—			—			—
Net income		($6	)	$	10			($9	)		($11	)		($26	)		($29	)		($36	)
Premiums, Fees and Other Revenues	$	89		$	102		$	110		$	109		$	99		$	304		$	420
Number of Sales Representatives		—			—			—			—			—			—			—

(1) Adjustments related to net investment gains (losses), net of income tax, includes amortization of deferred policy acquisition costs and amounts allocable to certain participating contracts.

31

AUTO & HOME

STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS

	For the Three Months Ended															For the Year Ended
	December 31,			March 31,			June 30,			September 30,			December 31,			December 31,			December 31,
Unaudited (In millions)	2007			2008			2008			2008			2008			2007			2008
REVENUES
Earned premiums	$	761		$	745		$	742		$	745		$	739		$	2,966		$	2,971
Investment income, net		54			51			50			48			37			196			186
Other revenues		15			11			10			9			8			43			38
		830			807			802			802			784			3,205			3,195
EXPENSES
Losses and loss adjustment expense		479			479			541			472			432			1,811			1,924
Other expenses		217			203			205			196			200			829			804
		696			682			746			668			632			2,640			2,728
Operating earnings before provision for income tax		134			125			56			134			152			565			467
Provision for income tax		31			27			4			33			40			139			104
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS	$	103		$	98		$	52		$	101		$	112		$	426		$	363
Net Income Reconciliation
Operating earnings available to common shareholders	$	103		$	98		$	52		$	101		$	112		$	426		$	363
Net investment gains (losses)	��	3			(11	)		(13	)		(67	)		(43	)		15			(134	)
Net investment gains (losses) tax provision		(1	)		4			4			23			15			(5	)		46
Net investment gains (losses), net of income tax		2			(7	)		(9	)		(44	)		(28	)		10			(88	)
Adjustments related to universal life and investment-type product policy fees		—			—			—			—			—			—			—
Adjustments related to policyholder benefits and dividends		—			—			—			—			—			—			—
Adjustments related to other expenses		—			—			—			—			—			—			—
Adjustments related to tax provision		—			—			—			—			—			—			—
Adjustments related to net investment gains (losses), net of income tax		—			—			—			—			—			—			—
Discontinued operations, net of income tax		—			—			—			—			—			—			—
Net income available to common shareholders		105			91			43			57			84			436			275
Preferred stock dividends		—			—			—			—			—			—			—
Net income	$	105		$	91		$	43		$	57		$	84		$	436		$	275
Premiums, Fees and Other Revenues	$	776		$	756		$	752		$	754		$	747		$	3,009		$	3,009

32

AUTO & HOME
STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS — PRODUCT LEVEL
AUTO

	For the Three Months Ended														For the Year Ended
	December 31,		March 31,			June 30,			September 30,			December 31,			December 31,		December 31,
Unaudited (In millions)	2007		2008			2008			2008			2008			2007		2008
REVENUES
Earned premiums	$	535	$	517		$	516		$	517		$	511		$	2,084	$	2,061
Investment income, net		38		37			35			35			28			140		135
Other revenues		7		7			7			5			4			24		23
		580		561			558			557			543			2,248		2,219
EXPENSES
Losses and loss adjustment expense		352		331			316			293			343			1,325		1,283
Other expenses		144		135			138			130			136			555		539
		496		466			454			423			479			1,880		1,822
Operating earnings before provision for income tax		84		95			104			134			64			368		397
Provision for income tax		19		21			24			35			15			88		95
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS	$	65	$	74		$	80		$	99		$	49		$	280	$	302
Net investment gains (losses), net of income tax		1		(5	)		(6	)		(30	)		(20	)		7		(61	)
Adjustments related to net investment gains (losses), net of income tax		—		—			—			—			—			—		—
Discontinued operations, net of income tax		—		—			—			—			—			—		—
Net income available to common shareholders		66		69			74			69			29			287		241
Preferred stock dividends		—		—			—			—			—			—		—
Net income	$	66	$	69		$	74		$	69		$	29		$	287	$	241
Premiums, Fees and Other Revenues	$	542	$	524		$	523		$	522		$	515		$	2,108	$	2,084

33

AUTO & HOME
STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS — PRODUCT LEVEL
HOMEOWNERS & OTHER

	For the Three Months Ended														For the Year Ended
	December 31,		March 31,			June 30,			September 30,			December 31,			December 31,		December 31,
Unaudited (In millions)	2007		2008			2008			2008			2008			2007		2008
REVENUES
Earned premiums	$	226	$	228		$	226		$	228		$	228		$	882	$	910
Investment income, net		16		14			15			13			9			56		51
Other revenues		8		4			3			4			4			19		15
		250		246			244			245			241			957		976
EXPENSES
Losses and loss adjustment expense		127		148			225			179			89			486		641
Other expenses		73		68			67			66			64			274		265
		200		216			292			245			153			760		906
Operating earnings before provision for income tax		50		30			(48	)		(0	)		88			197		70
Provision for income tax		12		6			(20	)		(2	)		25			51		9
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS	$	38	$	24			($28	)	$	2		$	63		$	146	$	61
Net investment gains (losses), net of income tax		1		(2	)		(3	)		(14	)		(8	)		3		(27	)
Adjustments related to net investment gains (losses), net of income tax		—		—			—			—			—			—		—
Discontinued operations, net of income tax		—		—			—			—			—			—		—
Net income available to common shareholders		39		22			(31	)		(12	)		55			149		34
Preferred stock dividends		—		—			—			—			—			—		—
Net income	$	39	$	22			($31	)		($12	)	$	55		$	149	$	34
Premiums, Fees and Other Revenues	$	234	$	232		$	229		$	232		$	232		$	901	$	925

34

AUTO & HOME

WRITTEN PREMIUMS BY PRODUCT AND SELECTED FINANCIAL INFORMATION AND SUPPLEMENTAL DATA

		For the Three Months Ended
		December 31,			March 31,			June 30,			September 30,			December 31,
Unaudited (In millions, except number of sales representatives)		2007			2008			2008			2008			2008
Written Premiums by Product
Preferred/Standard Automobile	��	$	510		$	510		$	513		$	512		$	483
Non-Standard Automobile			8			9			7		$	8			7
Homeowners & Other			216			197			236		$	250			218
Total		$	734		$	716		$	756		$	770		$	708
Selected Financial Information and Supplemental Data
Total Auto & Home
Loss and loss adjustment expense ratio			62.9	%		64.1	%		72.8	%		63.3	%		58.5	%
Other expense ratio			28.2	%		26.7	%		26.7	%		25.7	%		26.4	%
Total combined ratio (1)			91.1	%		90.8	%		99.5	%		89.0	%		84.9	%
Effect of catastrophe losses			1.6	%		3.2	%		17.6	%		9.4	%		2.0	%
Combined ratio excluding catastrophes			89.5	%		87.6	%		81.9	%		79.6	%		82.9	%
Auto
Loss and loss adjustment expense ratio			65.9	%		63.8	%		61.1	%		56.7	%		67.2	%
Other expense ratio			26.3	%		25.4	%		25.6	%		24.4	%		25.9	%
Total combined ratio (1)			92.2	%		89.2	%		86.7	%		81.1	%		93.1	%
Effect of catastrophe losses			(1.4	%)		0.5	%		2.7	%		1.0	%		0.0	%
Combined ratio excluding catastrophes			93.6	%		88.7	%		84.0	%		80.1	%		93.1	%
Homeowners & Other
Loss and loss adjustment expense ratio			55.7	%		64.9	%		99.5	%		78.5	%		39.0	%
Other expense ratio			32.8	%		29.6	%		28.8	%		28.5	%		27.6	%
Total combined ratio (1)			88.5	%		94.5	%		128.3	%		107.0	%		66.6	%
Effect of catastrophe losses			8.3	%		9.4	%		51.8	%		28.5	%		6.7	%
Combined ratio excluding catastrophes			80.2	%		85.1	%		76.5	%		78.5	%		59.9	%
Pre-Tax Catastrophe Losses
Auto			($7	)	$	3		$	14		$	5			($0	)
Homeowners & Other			19			21			117			65			15
Total		$	12		$	24		$	131		$	70		$	15
Catastrophe points on combined ratios			1.6			3.2			17.6			9.4			2.0

(1) The total combined ratio reflects payment fees as a credit to other expenses for the three months ended December 31, 2007, March 31, 2008, June 30, 2008, September 30, 2008, December 31, 2008, which resulted in a 0.6, 0.7, 0.6, 0.7 and 0.6 of a percentage point decrease in the combined ratio, respectively. The decreases for Auto and Homeowners & Other were 0.7 and 0.4 of a percentage point, respectively, for December 31, 2007, 0.8 and 0.4 of a percentage point, respectively, for March 31, 2008, 0.7 and 0.4 of a percentage point, respectively, for June 30, 2008, 0.7 and 0.4 of a percentage point, respectively, for September 30, 2008, and 0.7 and 0.5 of a percentage point, respectively, for December 31, 2008.

35

CORPORATE, OTHER & ELIMINATIONS

STATEMENT OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS

	For the Three Months Ended															For the Year Ended
	December 31,			March 31,			June 30,			September 30,			December 31,			December 31,			December 31,
Unaudited (In millions)	2007			2008			2008			2008			2008			2007			2008
REVENUES
Premiums	$	12		$	6		$	12		$	8		$	2		$	35		$	28
Investment income, net		360			253			237			159			155			1,428			804
Other revenues		10			12			10			42			120			72			184
		382			271			259			209			277			1,535			1,016
EXPENSES
Policyholder benefits and dividends		14			10			14			12			12			47			48
Interest credited to policyholder account balances		—			—			—			—			7			—			7
Interest credited to bank deposits		49			44			39			40			43			199			166
Interest expense		248			266			249			250			268			875			1,033
Other expenses		116			44			116			231			308			331			699
		427			364			418			533			638			1,452			1,953
Operating earnings before provision for income tax		(45	)		(93	)		(159	)		(324	)		(361	)		83			(937	)
Benefit for income tax		(38	)		(93	)		(103	)		(132	)		(168	)		(157	)		(496	)
Operating earnings		(7	)		—			(56	)		(192	)		(193	)		240			(441	)
Preferred stock dividends		35			33			31			30			31			137			125
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS		($42	)		($33	)		($87	)		($222	)		($224	)	$	103			($566	)
Net Income Reconciliation
Operating earnings available to common shareholders		($42	)		($33	)		($87	)		($222	)		($224	)	$	103			($566	)
Net investment gains (losses)		(8	)		(16	)		(38	)		(25	)		1,039			39			960
Net investment gains (losses) tax provision		(15	)		6			15			(5	)		(369	)		(32	)		(353	)
Net investment gains (losses), net of income tax		(23	)		(10	)		(23	)		(30	)		670			7			607
Adjustments related to universal life and investment-type product policy fees		—			—			—			—			—			—			—
Adjustments related to policyholder benefits and dividends		(1	)		—			—			—			—			—			—
Adjustments related to other expenses		—			—			—			—			—			—			—
Adjustments related to tax benefit (provision)		—			—			—			—			—			—			—
Adjustments related to net investment gains (losses), net of income tax		(1	)		—			—			—			—			—			—
Discontinued operations, net of income tax		32			21			61			(433	)		58			193			(293	)
Net income available to common shareholders		(34	)		(22	)		(49	)		(685	)		504			303			(252	)
Preferred stock dividends		35			33			31			30			31			137			125
Net income	$	1		$	11			($18	)		($655	)	$	535		$	440			($127	)
Premiums, Fees and Other Revenues	$	22		$	18		$	22		$	50		$	122		$	107		$	212

36

METLIFE, INC.

INVESTMENT RESULTS BY ASSET CATEGORY AND ANNUALIZED YIELDS

	For the Three Months Ended
	December 31,			March 31,			June 30,			September 30,			December 31,
Unaudited (In millions)	2007			2008			2008			2008			2008
Fixed Maturity Securities
Yield (1)		6.59	%		6.50	%		6.51	%		6.38	%		6.18	%
Investment income (2)	$	3,196		$	3,137		$	3,186		$	3,107		$	2,973
Investment gains (losses)		($67	)		($203	)		($301	)		($919	)		($526	)
Ending carrying value (2)	$	233,115		$	234,990		$	231,896		$	212,912		$	189,197
Mortgage and Consumer Loans
Yield (1)		6.57	%		6.19	%		6.10	%		5.99	%		6.05	%
Investment income (3)	$	696		$	676		$	674		$	687		$	737
Investment gains (losses)		($31	)		($28	)		($35	)	$	26			($99	)
Ending carrying value	$	46,154		$	46,920		$	48,158		$	50,606		$	51,364
Real Estate and Real Estate Joint Ventures (4)
Yield (1)		9.78	%		5.07	%		6.78	%		2.84	%		(2.36	%)
Investment income	$	160		$	87		$	121		$	53			($44	)
Investment gains (losses)	$	12			($2	)	$	3		$	2			($13	)
Ending carrying value	$	6,767		$	6,960		$	7,328		$	7,555		$	7,586
Policy Loans
Yield (1)		6.21	%		6.24	%		6.25	%		6.09	%		6.32	%
Investment income	$	144		$	148		$	151		$	148		$	154
Ending carrying value	$	9,326		$	9,666		$	9,683		$	9,742		$	9,802
Equity Securities
Yield (1)		6.92	%		4.86	%		6.01	%		4.00	%		6.25	%
Investment income	$	92		$	65		$	80		$	45		$	59
Investment gains (losses)	$	56			($10	)		($3	)		($181	)		($63	)
Ending carrying value	$	5,911		$	5,368		$	5,228		$	3,474		$	3,197
Other Limited Partnership Interests
Yield (1)		25.22	%		8.99	%		4.63	%		(3.91	%)		(20.14	%)
Investment income	$	340		$	132		$	71			($62	)		($311	)
Investment gains (losses)		($7	)		($3	)		($12	)		($16	)		($109	)
Ending carrying value	$	6,155		$	6,349		$	6,707		$	6,353		$	6,039
Cash and Short-Term Investments
Yield (1)		4.23	%		3.12	%		2.66	%		1.89	%		0.71	%
Investment income	$	113		$	95		$	86		$	78		$	48
Investment gains (losses)	$	0		$	1		$	0		$	0		$	2
Ending carrying value	$	12,505		$	13,103		$	15,343		$	22,751		$	38,085
Other Invested Assets (5) (6) (7) (8)
Investment income	$	168		$	67		$	30		$	102		$	184
Investment gains (losses)		($126	)		($493	)	$	18		$	1,827		$	2,908
Ending carrying value	$	8,076		$	9,808		$	8,617		$	9,755		$	17,248
Total Investments
Gross investment income yield (1)		7.01	%		6.20	%		6.08	%		5.68	%		4.95	%
Investment fees and expenses yield		(0.16	%)		(0.17	%)		(0.16	%)		(0.15	%)		(0.15	%)
Net Investment Income Yield		6.85	%		6.03	%		5.92	%		5.53	%		4.80	%
Gross investment income	$	4,909		$	4,407		$	4,399		$	4,158		$	3,800
Investment fees and expenses		(118	)		(119	)		(118	)		(108	)		(115	)
Net Investment Income	$	4,791		$	4,288		$	4,281		$	4,050		$	3,685
Ending carrying value	$	328,009		$	333,164		$	332,960		$	323,148		$	322,518
Gross investment gains	$	475		$	405		$	283		$	1,105		$	782
Gross investment losses (7)		(435	)		(531	)		(346	)		(464	)		(664	)
Writedowns (7)		(73	)		(186	)		(262	)		(1,048	)		(546	)
Subtotal		(33	)		(312	)		(325	)		(407	)		(428	)
Derivative & other instruments not qualifying for hedge accounting (7) (8)		(130	)		(426	)		(5	)		1,146			2,528
Investment Gains (Losses)		(163	)		(738	)		(330	)		739			2,100
Investment gains (losses) tax benefit (provision)		38			262			104			(282	)		(755	)
Investment Gains (Losses), Net of Income Tax		($125	)		($476	)		($226	)	$	457			1,345

(1)	Yields are based on quarterly average asset carrying values, excluding recognized and unrealized investment gains (losses), and for yield calculation purposes, average assets exclude collateral associated with the Company’s securities lending program.
(2)	Fixed maturity securities includes $779 million, $808 million, $883 million, $788 million and $946 million in ending carrying value, and ($2) million, ($51) million, $9 million, ($95) million and ($56) million of investment income (loss) related to trading securities at or for the three months ended December 31, 2007, March 31, 2008, June 30, 2008, September 30, 2008 and December 31, 2008, respectively.
(3)	Investment income from mortgage and consumer loans includes prepayment fees.
(4)	Included in investment income from real estate and real estate joint ventures is $4 million, ($1) million, $2 million and $2 million related to discontinued operations for the three months ended December 31, 2007, March 31, 2008, June 30, 2008 and September 30, 2008, respectively. There was no investment income from real estate and real estate joint ventures related to discontinued operations for the three months ended December 31, 2008. Included in investment gains (losses) from real estate and real estate joint ventures is $7 million and $8 million for the three months ended December 31, 2007 and December 31, 2008, respectively. There were no discontinued operations from real estate and real estate joint ventures for any other period.
(5)	Included in investment income from other invested assets are scheduled periodic settlement payments on derivative instruments that do not qualify for hedge accounting under SFAS 133 of $67 million, ($9) million, ($38) million, ($1) million and $53 million for the three months ended December 31, 2007, March 31, 2008, June 30, 2008, September 30, 2008 and December 31, 2008, respectively. These amounts are excluded from investment gains (losses). Additionally, excluded from investment gains (losses) is $9 million, $18 million, $11 million, $8 million and $7 million for the three months ended December 31, 2007, March 31, 2008, June 30, 2008, September 30, 2008 and December 31, 2008, respectively, related to settlement payments on derivatives used to hedge interest rate and currency risk on policyholder account balances that do not qualify for hedge accounting. Such amounts are included within interest credited to policyholder account balances.
(6)	Other invested assets is principally comprised of freestanding derivatives with positive fair values and leveraged leases. Freestanding derivatives with negative fair values are included within other liabilities. As yield is not considered a meaningful measure of performance for other invested assets, it has been excluded from the table above.
(7)	The components of investment gains (losses) for the three months ended September 30, 2008 are shown net of a realized gain under purchased credit default swaps that offsets losses incurred on certain fixed maturity securities.
(8)	Derivatives and other instruments not qualifying for hedge accounting is comprised of amounts for freestanding derivatives of $166 million, $0 million, ($365) million, $1,109 million, and $5,148 million; and embedded derivatives of ($296) million, ($426) million, $360 million, $37 million, and ($2,620) million for the three months ended December 31, 2007, March 31, 2008, June 30, 2008, September 30, 2008 and December 31, 2008, respectively.

37

METLIFE, INC.
INVESTMENT RESULTS BY ASSET CATEGORY AND ANNUALIZED YIELDS

	For the Year Ended
	December 31,			March 31,			June 30,			September 30,			December 31,
Unaudited (In millions)	2007			2008			2008			2008			2008
Fixed Maturity Securities
Yield (1)		6.42	%		6.50	%		6.51	%		6.46	%		6.40	%
Investment income (2)	$	12,425		$	3,137		$	6,323		$	9,430		$	12,403
Investment gains (losses)		($615	)		($203	)		($504	)		($1,423	)		($1,949	)
Ending carrying value (2)	$	233,115		$	234,990		$	231,896		$	212,912		$	189,197
Mortgage and Consumer Loans
Yield (1)		6.56	%		6.19	%		6.14	%		6.09	%		6.08	%
Investment income (3)	$	2,648		$	676		$	1,350		$	2,037		$	2,774
Investment gains (losses)	$	3			($28	)		($63	)		($37	)		($136	)
Ending carrying value	$	46,154		$	46,920		$	48,158		$	50,606		$	51,364
Real Estate and Real Estate Joint Ventures (4)
Yield (1)		10.29	%		5.07	%		5.94	%		4.86	%		2.98	%
Investment income	$	607		$	87		$	208		$	261		$	217
Investment gains (losses)	$	59			($2	)	$	1		$	3			($10	)
Ending carrying value	$	6,767		$	6,960		$	7,328		$	7,555		$	7,586
Policy Loans
Yield (1)		6.21	%		6.24	%		6.24	%		6.19	%		6.22	%
Investment income	$	572		$	148		$	299		$	447		$	601
Ending carrying value	$	9,326		$	9,666		$	9,683		$	9,742		$	9,802
Equity Securities
Yield (1)		5.14	%		4.86	%		5.43	%		5.01	%		5.25	%
Investment income	$	244		$	65		$	145		$	190		$	249
Investment gains (losses)	$	164			($10	)		($13	)		($194	)		($257	)
Ending carrying value	$	5,911		$	5,368		$	5,228		$	3,474		$	3,197
Other Limited Partnership Interests
Yield (1)		27.09	%		8.99	%		6.76	%		3.08	%		(2.77	%)
Investment income	$	1,309		$	132		$	203		$	141			($170	)
Investment gains (losses)	$	16			($3	)		($15	)		($31	)		($140	)
Ending carrying value	$	6,155		$	6,349		$	6,707		$	6,353		$	6,039
Cash and Short-Term Investments
Yield (1)		4.91	%		3.12	%		2.89	%		2.49	%		1.62	%
Investment income	$	424		$	95		$	181		$	259		$	307
Investment gains (losses)	$	3		$	1		$	1		$	1		$	3
Ending carrying value	$	12,505		$	13,103		$	15,343		$	22,751		$	38,085
Other Invested Assets (5) (6) (7) (8)
Investment income	$	526		$	67		$	97		$	199		$	383
Investment gains (losses)		($474	)		($493	)		($475	)	$	1,352		$	4,260
Ending carrying value	$	8,076		$	9,808		$	8,617		$	9,755		$	17,248
Total Investments
Gross investment income yield (1)		6.88	%		6.20	%		6.14	%		5.99	%		5.71	%
Investment fees and expenses yield		(0.16	%)		(0.17	%)		(0.16	%)		(0.16	%)		(0.16	%)
Net Investment Income Yield		6.72	%		6.03	%		5.98	%		5.83	%		5.55	%
Gross investment income	$	18,755		$	4,407		$	8,806		$	12,964		$	16,764
Investment fees and expenses		(427	)		(119	)		(237	)		(345	)		(460	)
Net Investment Income	$	18,328		$	4,288		$	8,569		$	12,619		$	16,304
Ending carrying value	$	328,009		$	333,164		$	332,960		$	323,148		$	322,518
Gross investment gains	$	1,386		$	405		$	688		$	1,793		$	2,575
Gross investment losses (7)		(1,710	)		(531	)		(877	)		(1,341	)		($2,005	)
Writedowns (7)		(140	)		(186	)		(448	)		(1,496	)		($2,042	)
Subtotal		(464	)		(312	)		(637	)		(1,044	)		(1,472	)
Derivative & other instruments not qualifying for hedge accounting (7) (8)		(380	)		(426	)		(431	)		715			3,243
Investment Gains (Losses)		(844	)		(738	)		(1,068	)		(329	)		1,771
Investment gains (losses) tax benefit (provision)		280			262			366			84			(671	)
Investment Gains (Losses), Net of Income Tax		($564	)		($476	)		($702	)		($245	)		1,100

(1)	Yields are based on quarterly average asset carrying values, excluding recognized and unrealized investment gains (losses), and for yield calculation purposes, average assets exclude collateral associated with the Company’s securities lending program.
(2)	Fixed maturity securities includes $779 million, $808 million, $883 million, $788 million and $946 million in ending carrying value, and $50 million, ($51) million, ($42) million, ($137) million and ($193) million of investment income (loss) related to trading securities at or for the year-to-date ended December 31, 2007, March 31, 2008, June 30, 2008, September 30, 2008 and December 31, 2008, respectively.
(3)	Investment income from mortgage and consumer loans includes prepayment fees.
(4)	Included in investment income from real estate and real estate joint ventures is $12 million, ($1) million, $1 million, $3 million and $3 million related to discontinued operations for year-to-date ended December 31, 2007, March 31, 2008, June 30, 2008, September 30, 2008 and December 31, 2008, respectively. Included in net investment gains (losses) from real estate and real estate joint ventures is $13 million and $8 million related to discontinued operations for year ended December 31, 2007 and December 31, 2008, respectively. There were no discontinued operations from real estate and real estate joint ventures for any other period.
(5)	Included in investment income from other invested assets are scheduled periodic settlement payments on derivative instruments that do not qualify for hedge accounting under SFAS 133 of $253 million, ($9) million, ($47) million, ($48) million and $5 million for the year-to-date ended December 31, 2007, March 31, 2008, June 30, 2008, September 30, 2008 and December 31, 2008, respectively. These amounts are excluded from investment gains (losses). Additionally, excluded from investment gains (losses) is $26 million, $18 million, $29 million, $37 million and $44 million for the year-to-date ended December 31, 2007, March 31, 2008, June 30, 2008, September 30, 2008 and December 31, 2008, respectively, related to settlement payments on derivatives used to hedge interest rate and currency risk on policyholder account balances that do not qualify for hedge accounting. Such amounts are included within interest credited to policyholder account balances.
(6)	Other invested assets is principally comprised of freestanding derivatives with positive fair values and leveraged leases. Freestanding derivatives with negative fair values are included within other liabilities. As yield is not a meaningful measure of performance for other invested assets, it has been excluded from the table above.
(7)	The components of investment gains (losses) for the nine months ending September 30, 2008 are shown net of a realized gain under purchased credit default swaps that offsets losses incurred on certain fixed maturity securities
(8)	Derivatives and other instruments not qualifying for hedge accounting is comprised of amounts for freestanding derivatives of ($59) million, $0 million, ($365) million, $744 million, and $5,892 million; and embedded derivatives of ($321) million, ($426) million, ($66) million, ($29) million, and ($2,649) million for the year-to-date ended December 31, 2007, March 31, 2008, June 30, 2008, September 30, 2008 and December 31, 2008, respectively.

38

METLIFE, INC.

GROSS UNREALIZED GAINS AND LOSSES AGING SCHEDULE

FIXED MATURITY SECURITIES (1)

	December 31, 2007					March 31, 2008					June 30, 2008					September 30, 2008					December 31, 2008
Unaudited (In millions)	Amount		% of Total			Amount		% of Total			Amount		% of Total			Amount		% of Total			Amount		% of Total
Less than 20%	$	3,866		90.6	%	$	5,912		70.1	%	$	6,952		75.0	%	$	9,141		54.8	%	$	8,034		27.9	%
20% or more for less than six months		383		9.0	%		2,450		29.0	%		1,980		21.3	%		5,665		34.0	%		17,191		59.6	%
20% or more for six months or greater		19		0.4	%		76		0.9	%		339		3.7	%		1,871		11.2	%		3,596		12.5	%
Total Gross Unrealized Losses	$	4,268		100.0	%	$	8,438		100.0	%	$	9,271		100.0	%	$	16,677		100.0	%	$	28,821		100.0	%
Total Gross Unrealized Gains	$	7,250				$	7,997				$	5,622				$	4,478				$	7,564
GROSS UNREALIZED GAINS AND LOSSES AGING SCHEDULE EQUITY SECURITIES (1)
	December 31, 2007					March 31, 2008					June 30, 2008					September 30, 2008					December 31, 2008
Unaudited (In millions)	Amount		% of Total			Amount		% of Total			Amount		% of Total			Amount		% of Total			Amount		% of Total
Less than 20%	$	316		70.4	%	$	211		29.3	%	$	171		23.0	%	$	60		9.4	%	$	75		7.7	%
20% or more for less than six months		133		29.6	%		508		70.6	%		567		76.0	%		415		65.0	%		519		53.0	%
20% or more for six months or greater		—		0.0	%		1		0.1	%		8		1.0	%		163		25.6	%		384		39.3	%
Total Gross Unrealized Losses	$	449		100.0	%	$	720		100.0	%	$	746		100.0	%	$	638		100.0	%	$	978		100.0	%
Total Gross Unrealized Gains	$	628				$	432				$	399				$	92				$	44

(1) The Company’s review of its Fixed Maturity Securities and Equity Securities for impairments includes an analysis of the total gross unrealized losses by three categories of securities: (i) securities where the estimated fair value had declined and remained below cost or amortized cost by less than 20%; (ii) securities where the estimated value had declined and remained below cost or amortized cost by 20% or more for less than six months; and (iii) securities where the estimated value had declined and remained below cost or amortized cost by 20% or more for six months or greater.

39

METLIFE, INC.
SUMMARY OF FIXED MATURITY SECURITIES AVAILABLE FOR SALE
BY SECTOR AND QUALITY DISTRIBUTION

		December 31, 2007					March 31, 2008					June 30, 2008					September 30, 2008					December 31, 2008
Unaudited (In millions)		Amount		% of Total			Amount		% of Total			Amount		% of Total			Amount		% of Total			Amount		% of Total
U.S. corporate securities		$	73,919		31.8	%	$	72,684		31.0	%	$	72,657		31.4	%	$	67,822		32.0	%	$	63,303		33.6	%
Residential mortgage-backed securities			54,995		23.7	%		55,114		23.5	%		53,165		23.0	%		46,912		22.1	%		36,028		19.2	%
Foreign corporate securities			37,166		16.0	%		36,621		15.7	%		36,401		15.8	%		34,321		16.2	%		29,679		15.8	%
US Treasury/agency securities			21,192		9.1	%		22,028		9.4	%		20,131		8.7	%		16,575		7.8	%		21,310		11.3	%
Commercial mortgage-backed securities			16,993		7.3	%		17,875		7.6	%		17,496		7.6	%		15,829		7.5	%		12,644		6.7	%
Asset-backed securities			10,572		4.6	%		11,123		4.8	%		12,608		5.5	%		12,763		6.0	%		10,523		5.6	%
Foreign government securities			12,813		5.5	%		12,881		5.5	%		12,833		5.6	%		11,933		5.6	%		10,153		5.4	%
State and political subdivision securities			4,368		1.9	%		5,558		2.4	%		5,438		2.3	%		5,912		2.8	%		4,557		2.4	%
Other fixed maturity securities			318		0.1	%		299		0.1	%		284		0.1	%		58		0.0	%		54		0.0	%
Total Fixed Maturity Securities		$	232,336		100.0	%	$	234,183		100.0	%	$	231,013		100.0	%	$	212,125		100.0	%	$	188,251		100.0	%
NAIC RATING (1)	RATING AGENCY EQUIVALENT DESIGNATION
1	Aaa / Aa / A	$	167,761		72.2	%	$	171,918		73.4	%	$	170,278		73.7	%	$	154,978		73.1	%	$	137,125		72.9	%
2	Baa		47,172		20.3	%		46,008		19.7	%		45,313		19.6	%		43,030		20.3	%		38,761		20.6	%
3	Ba		10,528		4.5	%		10,055		4.3	%		9,367		4.1	%		8,786		4.1	%		7,796		4.1	%
4	B		6,435		2.8	%		5,684		2.4	%		5,424		2.3	%		4,646		2.2	%		3,779		2.0	%
5	Caa and lower		428		0.2	%		487		0.2	%		604		0.3	%		622		0.3	%		715		0.4	%
6	In or near default		12		0.0	%		31		0.0	%		27		0.0	%		63		0.0	%		75		0.0	%
Total Fixed Maturity Securities		$	232,336		100.0	%	$	234,183		100.0	%	$	231,013		100.0	%	$	212,125		100.0	%	$	188,251		100.0	%

(1) Amounts presented are based on rating agency designations. Comparisons between NAIC ratings and rating agency designations are published by the NAIC.

SUMMARY OF COMMERCIAL MORTGAGE LOANS
BY REGION AND PROPERTY TYPE

	December 31, 2007					March 31, 2008					June 30, 2008					September 30, 2008					December 31, 2008
Unaudited (In millions)	Amount		% of Total			Amount		% of Total			Amount		% of Total			Amount		% of Total			Amount		% of Total
Pacific	$	8,436		24.4	%	$	8,421		24.2	%	$	8,657		24.6	%	$	8,581		23.9	%	$	8,837		24.6	%
South Atlantic		7,770		22.4	%		7,932		22.8	%		7,861		22.3	%		8,099		22.6	%		8,101		22.5	%
Middle Atlantic		5,042		14.5	%		5,037		14.5	%		5,291		15.1	%		5,784		16.1	%		5,931		16.5	%
International		3,642		10.5	%		3,759		10.8	%		3,903		11.1	%		3,695		10.3	%		3,414		9.5	%
West South Central		2,888		8.3	%		2,911		8.3	%		2,856		8.1	%		3,059		8.5	%		3,070		8.5	%
East North Central		2,866		8.3	%		2,591		7.5	%		2,570		7.3	%		2,607		7.3	%		2,591		7.2	%
New England		1,464		4.2	%		1,517		4.4	%		1,514		4.3	%		1,535		4.3	%		1,529		4.3	%
Mountain		1,002		2.9	%		1,109		3.2	%		1,058		3.0	%		1,058		2.9	%		1,052		2.9	%
West North Central		974		2.8	%		758		2.2	%		762		2.2	%		758		2.1	%		716		2.0	%
East South Central		481		1.4	%		479		1.4	%		470		1.3	%		470		1.3	%		468		1.3	%
Other		92		0.3	%		258		0.7	%		257		0.7	%		256		0.7	%		256		0.7	%
Total	$	34,657		100.0	%	$	34,772		100.0	%	$	35,199		100.0	%	$	35,902		100.0	%	$	35,965		100.0	%
Office	$	15,216		43.9	%	$	15,216		43.8	%	$	15,048		42.8	%	$	15,344		42.8	%	$	15,307		42.6	%
Retail		7,334		21.1	%		7,799		22.4	%		8,210		23.3	%		8,093		22.5	%		8,038		22.3	%
Apartments		4,368		12.6	%		3,952		11.4	%		4,022		11.4	%		4,135		11.5	%		4,113		11.4	%
Hotel		3,258		9.4	%		3,227		9.3	%		3,138		8.9	%		3,132		8.7	%		3,078		8.6	%
Industrial		2,622		7.6	%		2,782		8.0	%		2,871		8.2	%		2,849		8.0	%		2,901		8.1	%
Other		1,859		5.4	%		1,796		5.1	%		1,910		5.4	%		2,349		6.5	%		2,528		7.0	%
Total	$	34,657		100.0	%	$	34,772		100.0	%	$	35,199		100.0	%	$	35,902		100.0	%	$	35,965		100.0	%

METLIFE, INC.

SUMMARY OF REAL ESTATE

	December 31,		March 31,		June 30,		September 30,		December 31,
Unaudited (In millions)	2007		2008		2008		2008		2008
Wholly-owned	$	3,993	$	4,000	$	4,017	$	4,063	$	4,062
Joint ventures		2,771		2,957		3,308		3,489		3,522
Subtotal		6,764		6,957		7,325		7,552		7,584
Foreclosed		3		3		3		3		2
Total Real Estate (1)	$	6,767	$	6,960	$	7,328	$	7,555	$	7,586
SUMMARY OF MORTGAGES AND CONSUMER LOANS
	December 31,		March 31,		June 30,		September 30,		December 31,
Unaudited (In millions)	2007		2008		2008		2008		2008
Commercial mortgages	$	34,657	$	34,772	$	35,199	$	35,902	$	35,965
Agricultural mortgages		10,452		10,610		11,590		12,071		12,234
Consumer loans		1,040		1,095		1,190		1,209		1,153
Mortgage loans held-for-sale		5		443		179		1,424		2,012
Total	$	46,154	$	46,920	$	48,158	$	50,606	$	51,364

(1) Includes real estate held-for-sale and held-for-investment.

41

Company Ratings as of January 27, 2009

     Insurer financial strength ratings represent the opinions of rating agencies, including A.M. Best Company (“A.M. Best”), Fitch Ratings Insurance Group (“Fitch”), Moody’s Investors Service (“Moody’s”) and Standard & Poor’s (“S&P”), regarding the ability of an insurance company to meet its financial obligations to policyholders and contract holders. Credit ratings represent the opinions of rating agencies regarding an issuer’s ability to repay its indebtedness. Our insurer financial strength ratings and credit ratings as of January 27, 2009 are listed in the tables below:

	A.M. Best	Fitch	Moody’s	S&P
Insurer Financial Strength Ratings
First MetLife Investors Insurance Co.	A+	NR	NR	AA
General American Life Insurance Company	A+	AA	Aa2	AA
MetLife Insurance Company of Connecticut	A+	AA	Aa2	AA
MetLife Investors Insurance Company	A+	AA	Aa2	AA
MetLife Investors USA Insurance Company	A+	AA	Aa2	AA
Metropolitan Casualty Insurance Company	A	NR	NR	NR
Metropolitan Direct Property and Casualty Insurance Co.	A	NR	NR	NR
Metropolitan General Insurance Company	A	NR	NR	NR
Metropolitan Group Property & Casualty Insurance Co.	A	NR	NR	NR
Metropolitan Life Insurance Company	A+	AA	Aa2	AA
Metropolitan Lloyds Insurance Company of Texas	A	NR	NR	NR
Metropolitan Property and Casualty Insurance Company	A	NR	NR	NR
Metropolitan Tower Life Insurance Company	A+	NR	Aa3	NR
New England Life Insurance Company	A+	AA	Aa2	AA
Texas Life Insurance Company	A-	NR	NR	NR
Credit Ratings
MetLife Short Term Funding LLC
Commercial Paper	NR	NR	P-1	A-1+
General American Life Insurance Company
(Surplus Notes)	a+	NR	A1	A+
MetLife, Inc.
Commercial Paper	AMB-1	F1	P-1	A-1
Senior Unsecured Debt	a	A	A2	A
Subordinated Debt	a-	NR	A3	NR
Junior Subordinated Debt	bbb+	A-	Baa1	BBB+
Preferred Stock	bbb+	A-	Baa1	BBB+
Non-Cumulative Perpetual Preferred Stock	bbb+	A-	Baa1	BBB
MetLife Capital Trust III
Trust Preferred Stock	a-	A-	A3	BBB+
MetLife Capital Trust IV & X
Trust Securities	bbb+	A-	Baa1	BBB+
MetLife Funding, Inc.
Commercial Paper	AMB-1+	F1+	P-1	A-1+
Metropolitan Life Global Funding I
Senior Secured Debt	aa	NR	Aa2	AA
MetLife Institutional Funding I, LLC
Senior Secured Debt	aa	NR	Aa2	AA
Metropolitan Life Insurance Company
Surplus Notes	a+	A+	A1	A+

NR     Not Rated

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