EXHIBIT 99.1
Part II
| Item 6. | Selected Financial Data |
The following selected financial data has been derived from the Company’s audited consolidated financial statements which have been updated as described in Item 8.01 of this Current Report onForm 8-K as well as from the Consolidated Financial Statements and Financial Statement Schedules included within Item 8 of Part II of the Company’s Annual Report onForm 10-K for the year ended December 31, 2008 (the “2008 Annual Report”), as updated by Exhibit 99.3 to this Current Report onForm 8-K. The statement of income data for the years ended December 31, 2008, 2007 and 2006 and the balance sheet data at December 31, 2008 and 2007 have been derived from the Company’s audited financial statements included as Exhibit 99.3 to this Current Report onForm 8-K. The statement of income data for the years ended December 31, 2005 and 2004 and the balance sheet data at December 31, 2006, 2005 and 2004 have been derived from the Company’s audited financial statements not included herein. The selected financial data set forth below should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” as included in the 2008 Annual Report, portions of which have been updated by Exhibit 99.2 to this Current Report onForm 8-K. Some previously reported amounts have been reclassified due to the implementation of Statement of Financial Accounting Standards (“SFAS”) No. 160,Noncontrolling Interests in Consolidated Financial Statements — An Amendment of ARB No. 51(“SFAS 160”) discussed in footnote 8.
| Years Ended December 31, | ||||||||||||||||||||
| 2008 | 2007 | 2006 | 2005 | 2004 | ||||||||||||||||
| (In millions) | ||||||||||||||||||||
Statement of Income Data (1) | ||||||||||||||||||||
| Revenues (2), (3): | ||||||||||||||||||||
| Premiums | $ | 25,914 | $ | 22,970 | $ | 22,052 | $ | 20,979 | $ | 18,842 | ||||||||||
| Universal life and investment-type product policy fees | 5,381 | 5,238 | 4,711 | 3,775 | 2,819 | |||||||||||||||
| Net investment income | 16,297 | 18,063 | 16,247 | 14,064 | 11,627 | |||||||||||||||
| Other revenues | 1,586 | 1,465 | 1,301 | 1,221 | 1,152 | |||||||||||||||
| Net investment gains (losses) | 1,812 | (578 | ) | (1,382 | ) | (112 | ) | 114 | ||||||||||||
| Total revenues | 50,990 | 47,158 | 42,929 | 39,927 | 34,554 | |||||||||||||||
| Expenses (2), (3): | ||||||||||||||||||||
| Policyholder benefits and claims | 27,437 | 23,783 | 22,869 | 22,236 | 19,907 | |||||||||||||||
| Interest credited to policyholder account balances | 4,788 | 5,461 | 4,899 | 3,650 | 2,766 | |||||||||||||||
| Policyholder dividends | 1,751 | 1,723 | 1,698 | 1,678 | 1,664 | |||||||||||||||
| Other expenses (8) | 11,947 | 10,405 | 9,514 | 8,269 | 6,843 | |||||||||||||||
| Total expenses | 45,923 | 41,372 | 38,980 | 35,833 | 31,180 | |||||||||||||||
| Income from continuing operations before provision for income tax (8) | 5,067 | 5,786 | 3,949 | 4,094 | 3,374 | |||||||||||||||
| Provision for income tax (2)(8) | 1,582 | 1,677 | 1,029 | 1,158 | 930 | |||||||||||||||
| Income from continuing operations, net of income tax (8) | 3,485 | 4,109 | 2,920 | 2,936 | 2,444 | |||||||||||||||
| Income (loss) from discontinued operations, net of income tax (2)(8) | (207 | ) | 356 | 3,520 | 1,875 | 498 | ||||||||||||||
| Income before cumulative effect of a change in accounting, net of income tax (8) | 3,278 | 4,465 | 6,440 | 4,811 | 2,942 | |||||||||||||||
| Cumulative effect of a change in accounting, net of income tax (3) | — | — | — | — | (86 | ) | ||||||||||||||
| Net income (8) | 3,278 | 4,465 | 6,440 | 4,811 | 2,856 | |||||||||||||||
| Less: Net income attributable to noncontrolling interests (8) | 69 | 148 | 147 | 97 | 98 | |||||||||||||||
| Net income attributable to MetLife, Inc. (8) | 3,209 | 4,317 | 6,293 | 4,714 | 2,758 | |||||||||||||||
| Less: Preferred stock dividends | 125 | 137 | 134 | 63 | — | |||||||||||||||
| Net income available to MetLife, Inc.’s common shareholders | $ | 3,084 | $ | 4,180 | $ | 6,159 | $ | 4,651 | $ | 2,758 | ||||||||||
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| December 31, | ||||||||||||||||||||
| 2008 | 2007 | 2006 | 2005 | 2004 | ||||||||||||||||
| (In millions) | ||||||||||||||||||||
Balance Sheet Data (1) | ||||||||||||||||||||
| Assets: | ||||||||||||||||||||
| General account assets | $ | 380,839 | $ | 399,007 | $ | 383,758 | $ | 354,857 | $ | 271,137 | ||||||||||
| Separate account assets | 120,839 | 160,142 | 144,349 | 127,855 | 86,755 | |||||||||||||||
| Total assets (2) | $ | 501,678 | $ | 559,149 | $ | 528,107 | $ | 482,712 | $ | 357,892 | ||||||||||
| Liabilities: | ||||||||||||||||||||
| Life and health policyholder liabilities (4) | $ | 286,019 | $ | 262,652 | $ | 253,284 | $ | 244,683 | $ | 182,443 | ||||||||||
| Property and casualty policyholder liabilities (4) | 3,126 | 3,324 | 3,453 | 3,490 | 3,180 | |||||||||||||||
| Short-term debt | 2,659 | 667 | 1,449 | 1,414 | 1,445 | |||||||||||||||
| Long-term debt | 9,667 | 9,100 | 8,822 | 9,088 | 7,006 | |||||||||||||||
| Collateral financing arrangements | 5,192 | 4,882 | — | — | — | |||||||||||||||
| Junior subordinated debt securities | 3,758 | 4,075 | 3,381 | 2,134 | — | |||||||||||||||
| Payables for collateral under securities loaned and other transactions | 31,059 | 44,136 | 45,846 | 34,515 | 28,678 | |||||||||||||||
| Other (8) | 15,374 | 33,186 | 32,277 | 29,141 | 24,416 | |||||||||||||||
| Separate account liabilities | 120,839 | 160,142 | 144,349 | 127,855 | 86,755 | |||||||||||||||
| Total liabilities (2) (8) | 477,693 | 522,164 | 492,861 | 452,320 | 333,923 | |||||||||||||||
| Stockholders’ Equity: | ||||||||||||||||||||
| MetLife, Inc.’s stockholders’ equity: | ||||||||||||||||||||
| Preferred stock, at par value | 1 | 1 | 1 | 1 | — | |||||||||||||||
| Common stock, at par value | 8 | 8 | 8 | 8 | 8 | |||||||||||||||
| Additional paid-in capital | 15,811 | 17,098 | 17,454 | 17,274 | 15,037 | |||||||||||||||
| Retained earnings (5) | 22,403 | 19,884 | 16,574 | 10,865 | 6,608 | |||||||||||||||
| Treasury stock, at cost | (236 | ) | (2,890 | ) | (1,357 | ) | (959 | ) | (1,785 | ) | ||||||||||
| Accumulated other comprehensive income (loss) (6) | (14,253 | ) | 1,078 | 1,118 | 1,912 | 2,956 | ||||||||||||||
| Total MetLife, Inc.’s stockholders’ equity | 23,734 | 35,179 | 33,798 | 29,101 | 22,824 | |||||||||||||||
| Noncontrolling interests (8) | 251 | 1,806 | 1,448 | 1,291 | 1,145 | |||||||||||||||
| Total equity (8) | 23,985 | 36,985 | 35,246 | 30,392 | 23,969 | |||||||||||||||
| Total liabilities and stockholders’ equity | $ | 501,678 | $ | 559,149 | $ | 528,107 | $ | 482,712 | $ | 357,892 | ||||||||||
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| Years Ended December 31, | ||||||||||||||||||||
| 2008 | 2007 | 2006 | 2005 | 2004 | ||||||||||||||||
| (In millions, except per share data) | ||||||||||||||||||||
Other Data (1) | ||||||||||||||||||||
| Net income available to MetLife, Inc.’s common shareholders | $ | 3,084 | $ | 4,180 | $ | 6,159 | $ | 4,651 | $ | 2,758 | ||||||||||
| Return on MetLife, Inc.’s common equity (7) | 11.2 | % | 12.9 | % | 20.9 | % | 18.6 | % | 12.5 | % | ||||||||||
| Return on MetLife, Inc.’s common equity, excluding accumulated other comprehensive income (loss) | 9.1 | % | 13.3 | % | 22.1 | % | 20.7 | % | 14.4 | % | ||||||||||
EPS Data (1) | ||||||||||||||||||||
| Income from Continuing Operations Available to MetLife, Inc.’s Common Shareholders Per Common Share | ||||||||||||||||||||
| Basic | $ | 4.60 | $ | 5.33 | $ | 3.65 | $ | 3.85 | $ | 3.26 | ||||||||||
| Diluted | $ | 4.54 | $ | 5.20 | $ | 3.60 | $ | 3.82 | $ | 3.24 | ||||||||||
| Income (Loss) from Discontinued Operations Per Common Share | ||||||||||||||||||||
| Basic | $ | (0.41 | ) | $ | 0.29 | $ | 4.44 | $ | 2.36 | $ | 0.52 | |||||||||
| Diluted | $ | (0.40 | ) | $ | 0.28 | $ | 4.39 | $ | 2.34 | $ | 0.52 | |||||||||
| Cumulative Effect of a Change in Accounting Per Common Share (3) | ||||||||||||||||||||
| Basic | $ | — | $ | — | $ | — | $ | — | $ | (0.11 | ) | |||||||||
| Diluted | $ | — | $ | — | $ | — | $ | — | $ | (0.11 | ) | |||||||||
| Net Income Available to MetLife, Inc.’s Common Shareholders Per Common Share | ||||||||||||||||||||
| Basic | $ | 4.19 | $ | 5.62 | $ | 8.09 | $ | 6.21 | $ | 3.67 | ||||||||||
| Diluted | $ | 4.14 | $ | 5.48 | $ | 7.99 | $ | 6.16 | $ | 3.65 | ||||||||||
| Dividends Declared Per Common Share | $ | 0.74 | $ | 0.74 | $ | 0.59 | $ | 0.52 | $ | 0.46 | ||||||||||
| (1) | On July 1, 2005, the Company completed the acquisition of The Travelers Insurance Company, excluding certain assets, most significantly, Primerica, from Citigroup Inc. (“Citigroup”), and substantially all of Citigroup’s international insurance businesses. The 2005 selected financial data includes total revenues and total expenses of $966 million and $577 million, respectively, from the date of the acquisition. | |
| (2) | Discontinued Operations: |
Real Estate
Income related to real estate sold or classified as held-for-sale is presented as discontinued operations. The following information presents the components of income from discontinued real estate operations:
| Years Ended December 31, | ||||||||||||||||||||
| 2008 | 2007 | 2006 | 2005 | 2004 | ||||||||||||||||
| (In millions) | ||||||||||||||||||||
| Investment income | $ | 6 | $ | 21 | $ | 243 | $ | 405 | $ | 658 | ||||||||||
| Investment expense | (3 | ) | (9 | ) | (151 | ) | (246 | ) | (392 | ) | ||||||||||
| Net investment gains (losses) | 8 | 13 | 4,795 | 2,125 | 146 | |||||||||||||||
| Total revenues | 11 | 25 | 4,887 | 2,284 | 412 | |||||||||||||||
| Interest expense | — | — | — | — | 13 | |||||||||||||||
| Provision for income tax | 4 | 11 | 1,725 | 812 | 140 | |||||||||||||||
| Income from discontinued operations, net of income tax | $ | 7 | $ | 14 | $ | 3,162 | $ | 1,472 | $ | 259 | ||||||||||
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Operations
In the fourth quarter of 2008, the Company entered into an agreement to sell its wholly-owned subsidiary, Cova, to a third party to be completed in early 2009. In September 2008, the Company completed a tax-free split-off of its majority-owned subsidiary, Reinsurance Group of America, Incorporated (“RGA”). In September 2007, September 2005 and January 2005, the Company sold its MetLife Insurance Limited (“MetLife Australia”) annuities and pension businesses, P.T. Sejahtera (“MetLife Indonesia”) and SSRM Holdings, Inc. (“SSRM”), respectively. The assets, liabilities and operations of Cova, RGA, MetLife Australia, MetLife Indonesia and SSRM have been reclassified into discontinued operations for all years presented. The following tables present these discontinued operations:
| Years Ended December 31, | ||||||||||||||||||||
| 2008 | 2007 | 2006 | 2005 | 2004 | ||||||||||||||||
| (In millions) | ||||||||||||||||||||
| Revenues | $ | 4,086 | $ | 5,932 | $ | 5,467 | $ | 4,776 | $ | 4,492 | ||||||||||
| Expenses | 3,915 | 5,640 | 5,179 | 4,609 | 4,286 | |||||||||||||||
| Income before provision for income tax | 171 | 292 | 288 | 167 | 206 | |||||||||||||||
| Provision for income tax | 57 | 101 | 99 | 60 | 74 | |||||||||||||||
| Income from discontinued operations, net of income tax | 114 | 191 | 189 | 107 | 132 | |||||||||||||||
| Income from discontinued operations, net of income tax attributable to noncontrolling interests | 94 | 141 | 137 | 109 | 107 | |||||||||||||||
| Gain (loss) on sale of subsidiaries, net of income tax | (422 | ) | 10 | 32 | 187 | — | ||||||||||||||
| Income (loss) from discontinued operations, net of income tax available to MetLife, Inc.’s common shareholders | $ | (214 | ) | $ | 342 | $ | 358 | $ | 403 | $ | 239 | |||||||||
| December 31, | ||||||||||||||||||||
| 2008 | 2007 | 2006 | 2005 | 2004 | ||||||||||||||||
| (In millions) | ||||||||||||||||||||
| General account assets | $ | 946 | $ | 22,866 | $ | 21,918 | $ | 20,150 | $ | 16,852 | ||||||||||
| Separate account assets | — | 17 | 16 | 14 | 14 | |||||||||||||||
| Total assets | $ | 946 | $ | 22,883 | $ | 21,934 | $ | 20,164 | $ | 16,866 | ||||||||||
| Life and health policyholder liabilities (4) | 721 | 15,780 | 15,557 | 15,109 | 12,210 | |||||||||||||||
| Debt | — | 528 | 307 | 401 | 425 | |||||||||||||||
| Collateral financing arrangements | — | 850 | 850 | — | — | |||||||||||||||
| Junior subordinated debt securities | — | 399 | 399 | 399 | — | |||||||||||||||
| Shares subject to mandatory redemption | — | 159 | 159 | 159 | 158 | |||||||||||||||
| Other | 27 | 1,411 | 1,329 | 995 | 1,083 | |||||||||||||||
| Total liabilities | $ | 748 | $ | 19,127 | $ | 18,601 | $ | 17,063 | $ | 13,876 | ||||||||||
| (3) | The cumulative effect of a change in accounting, net of income tax, of $86 million for the year ended December 31, 2004, resulted from the adoption of Statement of Position (“SOP”)03-1,Accounting and Reporting by Insurance Enterprises for Certain Nontraditional Long-Duration Contracts and for Separate Account. | |
| (4) | Policyholder liabilities include future policy benefits, other policyholder funds and bank deposits. The life and health policyholder liabilities also include policyholder account balances, policyholder dividends payable and the policyholder dividend obligation. |
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| (5) | The cumulative effect of changes in accounting principles, net of income tax, of $329 million, which decreased retained earnings at January 1, 2007, resulted from $292 million related to the adoption ofSOP 05-1,Accounting by Insurance Enterprises for Deferred Acquisition Costs in Connection with Modifications or Exchanges of Insurance Contracts,and $37 million related to the adoption of Financial Accounting Standards Board Interpretation No. 48,Accounting for Uncertainty in Income Taxes — An Interpretation of FASB Statement No. 109. The cumulative effect of changes in accounting principles, net of income tax, of $27 million, which increased retained earnings at January 1, 2008, resulted from the adoption of SFAS No. 159,The Fair Value Option for Financial Assets and Financial Liabilities(“SFAS 159”). | |
| (6) | The cumulative effect of a change in accounting, net of income tax, of $744 million resulted from the adoption of SFAS No. 158,Employers’ Accounting for Defined Benefit Pension and Other Postretirement Plans,which decreased accumulated other comprehensive income (loss) at December 31, 2006. The cumulative effect of a change in accounting principle, net of income tax, of $10 million resulted from the adoption of SFAS 159, which decreased accumulated other comprehensive income (loss) at January 1, 2008. | |
| (7) | Return on common equity is defined as net income available to common shareholders divided by average common stockholders’ equity. | |
| (8) | As a result of the implementation of SFAS 160, which required retrospective application of presentation requirements, total equity at December 31, 2008, 2007, 2006, 2005 and 2004 increased by $251 million, $1,806 million, $1,448 million, $1,291 million and $1,145 million, respectively, representing noncontrolling interests, and other liabilities and total liabilities at December 31, 2008, 2007, 2006, 2005 and 2004 decreased by $251 million, $1,806 million, $1,448 million, $1,291 million and $1,145 million, respectively, as a result of the elimination of noncontrolling interests. Also as a result of the adoption of SFAS 160, income from continuing operations for the years ended December 31, 2008, 2007, 2006, 2005 and 2004 increased by $69 million, $148 million, $147 million, $97 million and $98 million, respectively, and net income attributable to noncontrolling interests for the years ended December 31, 2008, 2007, 2006, 2005 and 2004 increased by $69 million, $148 million, $147 million, $97 million and $98 million, respectively. |
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