![(METLIFE LOGO)](https://capedge.com/proxy/8-K/0000950123-10-097569/y87340y8734000.gif)
Third Quarter
Financial Supplement
Financial Supplement
September 30, 2010
![(GRAPHIC)](https://capedge.com/proxy/8-K/0000950123-10-097569/y87340y8734001.gif)
![(LOGO)](https://capedge.com/proxy/8-K/0000950123-10-097569/y87340y8734002.gif)
© 2010 Peanuts Worldwide LLC
![(METLIFE LOGO)](https://capedge.com/proxy/8-K/0000950123-10-097569/y87340y8734003.gif)
METLIFE, INC.
TABLE OF CONTENTS
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 Balance Sheet - U.S. Business | 6 | |||
Consolidating Statement of Operating Earnings Available to Common Shareholders | 7 | |||
SUMMARY OF SEGMENT OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS | 11 | |||
U.S. BUSINESS - INSURANCE PRODUCTS | ||||
Statements of Operating Earnings Available to Common Shareholders | 12 | |||
Future Policy Benefits and Policyholder Account Balances; and Separate Account Liabilities | 16 | |||
Other Expenses by Major Category and Individual Life Sales by Product | 17 | |||
Spread by Product | 18 | |||
U.S. BUSINESS - RETIREMENT PRODUCTS | ||||
Statements of Operating Earnings Available to Common Shareholders | 19 | |||
Future Policy Benefits and Policyholder Account Balances; and Separate Account Liabilities | 20 | |||
Other Expenses by Major Category and Individual Annuity Sales by Product | 21 | |||
Spread | 22 | |||
U.S. BUSINESS - CORPORATE BENEFIT FUNDING | ||||
Statements of Operating Earnings Available to Common Shareholders | 23 | |||
Future Policy Benefits and Policyholder Account Balances; and Separate Account Liabilities | 24 | |||
Other Expenses by Major Category | 25 | |||
Spread | 26 | |||
U.S. BUSINESS - AUTO & HOME | ||||
Statements of Operating Earnings Available to Common Shareholders | 27 | |||
Written Premiums by Product and Selected Financial Information and Supplemental Data | 30 | |||
INTERNATIONAL | ||||
Statements of Operating Earnings Available to Common Shareholders | 31 | |||
BANKING, CORPORATE & OTHER | ||||
Statements of Operating Earnings Available to Common Shareholders | 35 | |||
Banking - Supplemental Information | 38 | |||
INVESTMENTS | ||||
Investment Results by Asset Category and Annualized Yields | 39 | |||
Fixed Maturity Securities and Equity Securities Available-for-Sale Gross Unrealized Gains and Losses Aging Schedules | 41 | |||
Summary of Fixed Maturity Securities Available-for-Sale by Sector and Quality Distribution and Summary of Commercial Mortgage Loans by Region and Property Type | 42 | |||
Summary of Real Estate and Real Estate Joint Ventures and Summary of Mortgage Loans | 43 |
NOTE:
This Quarterly Financial Supplement (“QFS”) includes certain operating and statistical measures, such as sales and product spreads, among others, to provide supplemental data regarding the performance of our current business. This QFS also includes financial measures, such as operating earnings, operating revenues, operating expenses, operating earnings available to common shareholders and operating earnings available to common shareholders per diluted common share, which do not equate to and should not be viewed as substitutes for generally accepted accounting principles (“GAAP”) net income (loss) from continuing operations, net of income tax, GAAP revenues, GAAP expenses, GAAP net income (loss) available to MetLife, Inc.’s common shareholders and GAAP net income (loss) available to MetLife, Inc.’s common shareholders per diluted common share, respectively. Operating earnings is the measure of segment profit or loss we use to evaluate segment performance and allocate resources and, consistent with GAAP accounting guidance for segment reporting, is our measure of segment performance. Operating earnings is also a measure by which MetLife’s senior management’s and other employees’ performance is evaluated for the purposes of determining their compensation under applicable compensation plans.
Operating earnings is defined as operating revenues less operating expenses, net of income tax. Operating earnings available to common shareholders is defined as operating earnings less preferred stock dividends and 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.
Operating revenues is defined as GAAP revenues (i) less net investment gains (losses) and net derivatives gains (losses), (ii) less amortization of unearned revenue related to net investment gains (losses) and net derivatives gains (losses), (iii) plus scheduled periodic settlement payments on derivatives that are hedges of investments but do not qualify for hedge accounting treatment, (iv) plus income from discontinued real estate operations and (v) plus, for operating joint ventures reported under the equity method of accounting, the aforementioned adjustments, those identified in the definition of operating expenses and changes in fair value of hedges of operating joint venture liabilities, all net of income tax.
Operating expenses is defined as GAAP expenses (i) less changes in policyholder benefits associated with asset value fluctuations related to experience-rated contractholder liabilities and certain inflation-indexed liabilities, (ii) less costs related to business combinations and noncontrolling interests, (iii) less amortization of deferred policy acquisition costs (“DAC”) and value of business acquired (“VOBA”) and changes in the policyholder dividend obligation related to net investment gains (losses) and net derivatives gains (losses) and (iv) plus scheduled periodic settlement payments on derivatives that are hedges of policyholder account balances but do not qualify for hedge accounting treatment.
In addition, operating revenues and operating expenses do not reflect the consolidation of certain securitization entities that are variable interest entities (“VIEs”) as required under GAAP.
MetLife believes the presentation of operating earnings as we measure it for management purposes enhances the understanding of its performance by highlighting the results from operations and the underlying profitability drivers of the business. Reconciliations of operating earnings to GAAP net income (loss) from continuing operations, net of income tax, operating earnings available to common shareholders to GAAP net income (loss) available to MetLife, Inc.’s common shareholders and operating earnings available to common shareholders per diluted common share to GAAP net income (loss) available to MetLife, Inc.’s 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 October 28, 2010, for the three months ended September 30, 2010, which are available at www.metlife.com.
1
![(METLIFE LOGO)](https://capedge.com/proxy/8-K/0000950123-10-097569/y87340y8734003.gif)
METLIFE, INC.
CORPORATE OVERVIEW
For the Three Months Ended | |||||||||||||||||||||||
September 30, | December 31, | March 31, | June 30, | September 30, | |||||||||||||||||||
Unaudited (In millions, except per share data) | 2009 | 2009 | 2010 | 2010 | 2010 | ||||||||||||||||||
Operating earnings available to common shareholders | $ | 718 | $ | 793 | $ | 834 | $ | 1,022 | $ | 878 | |||||||||||||
Preferred stock dividends | 30 | 31 | 30 | 31 | 30 | ||||||||||||||||||
Operating earnings | 748 | 824 | 864 | 1,053 | 908 | ||||||||||||||||||
Adjustments from operating earnings to income (loss) from continuing operations, net of income tax: | |||||||||||||||||||||||
Net investment gains (losses) | (732 | ) | (116 | ) | 31 | (13 | ) | (342 | ) | ||||||||||||||
Net derivatives gains (losses) | (1,407 | ) | (782 | ) | 41 | 1,481 | (244 | ) | |||||||||||||||
Adjustments to continuing operations | 46 | 6 | (121 | ) | (563 | ) | (307 | ) | |||||||||||||||
Provision for income tax (expense) benefit | 721 | 378 | 18 | (417 | ) | 307 | |||||||||||||||||
Income (loss) from continuing operations, net of income tax | (624 | ) | 310 | 833 | 1,541 | 322 | |||||||||||||||||
Income (loss) from discontinued operations, net of income tax | (1 | ) | 3 | 1 | 6 | (2 | ) | ||||||||||||||||
Net income (loss) | (625 | ) | 313 | 834 | 1,547 | 320 | |||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interest | (5 | ) | (7 | ) | (1 | ) | (10 | ) | 4 | ||||||||||||||
Net income (loss) attributable to MetLife, Inc. | (620 | ) | 320 | 835 | 1,557 | 316 | |||||||||||||||||
Less: Preferred stock dividends | 30 | 31 | 30 | 31 | 30 | ||||||||||||||||||
Net income (loss) available to MetLife, Inc.’s common shareholders | $ | (650 | ) | $ | 289 | $ | 805 | $ | 1,526 | $ | 286 | ||||||||||||
Operating earnings available to common shareholders — diluted | $ | 0.87 | $ | 0.96 | $ | 1.01 | $ | 1.23 | $ | 0.99 | |||||||||||||
Net investment gains (losses) | (0.88 | ) | (0.14 | ) | 0.04 | (0.02 | ) | (0.39 | ) | ||||||||||||||
Net derivatives gains (losses) | (1.71 | ) | (0.94 | ) | 0.05 | 1.79 | (0.28 | ) | |||||||||||||||
Adjustments to continuing operations | 0.06 | 0.01 | (0.15 | ) | (0.68 | ) | (0.35 | ) | |||||||||||||||
Provision for income tax (expense) benefit | 0.86 | 0.45 | 0.02 | (0.50 | ) | 0.35 | |||||||||||||||||
Discontinued operations, net of income tax | — | — | — | 0.01 | — | ||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interest | (0.01 | ) | (0.01 | ) | — | (0.01 | ) | — | |||||||||||||||
Net income (loss) available to MetLife, Inc.’s common shareholders per common share — diluted | $ | (0.79 | ) | $ | 0.35 | $ | 0.97 | $ | 1.84 | $ | 0.32 | ||||||||||||
Weighted average common shares outstanding — diluted | 827.3 | 828.0 | 828.6 | 830.5 | 883.1 | ||||||||||||||||||
September 30, | December 31, | March 31, | June 30, | September 30, | |||||||||||||||||||
Unaudited | 2009 | 2009 | 2010 | 2010 | 2010 | ||||||||||||||||||
Book value per common share — (actual common shares outstanding) | $ | 39.36 | $ | 37.96 | $ | 41.21 | $ | 45.51 | $ | 48.93 | |||||||||||||
Book value per common share, excluding accumulated other comprehensive income (loss) — (actual common shares outstanding) | $ | 42.09 | $ | 41.69 | $ | 42.67 | $ | 44.50 | $ | 44.48 | |||||||||||||
Book value per common share — diluted — (weighted average common shares outstanding) | $ | 38.95 | $ | 37.54 | $ | 40.75 | $ | 44.95 | $ | 50.25 | |||||||||||||
Book value per common share, excluding accumulated other comprehensive income (loss) — diluted — (weighted average common shares outstanding) | $ | 41.65 | $ | 41.23 | $ | 42.19 | $ | 43.96 | $ | 45.68 | |||||||||||||
For the Three Months Ended | |||||||||||||||||||||||
September 30, | December 31, | March 31, | June 30, | September 30, | |||||||||||||||||||
Unaudited (In millions) | 2009 | 2009 | 2010 | 2010 | 2010 | ||||||||||||||||||
Common shares outstanding, beginning of period | 818.6 | 818.8 | 818.8 | 819.4 | 820.4 | ||||||||||||||||||
Treasury stock, net | 0.2 | — | 0.3 | — | — | ||||||||||||||||||
Newly issued shares | — | — | 0.3 | 1.0 | 86.5 | ||||||||||||||||||
Common shares outstanding, end of period | 818.8 | 818.8 | 819.4 | 820.4 | 906.9 | ||||||||||||||||||
Weighted average common shares outstanding — basic | 821.8 | 821.9 | 822.6 | 822.9 | 875.8 | ||||||||||||||||||
Dilutive effect of stock-based awards | 5.5 | 6.1 | 6.0 | 7.6 | 7.3 | ||||||||||||||||||
Weighted average common shares outstanding — diluted | 827.3 | 828.0 | 828.6 | 830.5 | 883.1 | ||||||||||||||||||
Policyholder Trust Shares | 236.8 | 233.2 | 229.9 | 227.4 | 225.9 | ||||||||||||||||||
2
![(METLIFE LOGO)](https://capedge.com/proxy/8-K/0000950123-10-097569/y87340y8734003.gif)
METLIFE, INC.
CONSOLIDATED BALANCE SHEETS
September 30, | December 31, | March 31, | June 30, | September 30, | |||||||||||||||||||
Unaudited (In millions) | 2009 | 2009 | 2010 | 2010 | 2010 | ||||||||||||||||||
ASSETS | |||||||||||||||||||||||
Investments: | |||||||||||||||||||||||
Fixed maturity securities available-for-sale, at estimated fair value | $ | 223,896 | $ | 227,642 | $ | 239,566 | $ | 246,348 | $ | 260,564 | |||||||||||||
Equity securities available-for-sale, at estimated fair value | 3,117 | 3,084 | 3,066 | 2,741 | 2,865 | ||||||||||||||||||
Trading securities, at estimated fair value (1) | 1,970 | 2,384 | 3,039 | 3,158 | 3,987 | ||||||||||||||||||
Mortgage loans: | |||||||||||||||||||||||
Held-for-investment, at amortized cost (1) | 48,239 | 48,181 | 55,433 | 55,601 | 57,098 | ||||||||||||||||||
Held-for-sale, principally at estimated fair value | 2,442 | 2,728 | 2,003 | 2,650 | 2,840 | ||||||||||||||||||
Mortgage loans, net | 50,681 | 50,909 | 57,436 | 58,251 | 59,938 | ||||||||||||||||||
Policy loans | 10,001 | 10,061 | 10,146 | 10,180 | 10,230 | ||||||||||||||||||
Real estate and real estate joint ventures | 6,982 | 6,852 | 6,821 | 6,832 | 6,981 | ||||||||||||||||||
Real estate held-for-sale | 50 | 44 | 45 | 9 | 9 | ||||||||||||||||||
Other limited partnership interests | 5,255 | 5,508 | 5,753 | 5,856 | 5,948 | ||||||||||||||||||
Short-term investments | 6,861 | 8,374 | 8,019 | 9,746 | 11,590 | ||||||||||||||||||
Other invested assets | 13,916 | 12,709 | 12,327 | 15,584 | 16,571 | ||||||||||||||||||
Total investments | 322,729 | 327,567 | 346,218 | 358,705 | 378,683 | ||||||||||||||||||
Cash and cash equivalents (1) | 15,562 | 10,112 | 9,202 | 10,702 | 14,557 | ||||||||||||||||||
Accrued investment income | 3,236 | 3,173 | 3,392 | 3,249 | 3,469 | ||||||||||||||||||
Premiums, reinsurance and other receivables | 16,903 | 16,752 | 17,554 | 18,177 | 18,654 | ||||||||||||||||||
Deferred policy acquisition costs and value of business acquired | 19,208 | 19,256 | 18,697 | 17,720 | 17,463 | ||||||||||||||||||
Current income tax recoverable | 412 | 316 | — | 243 | 178 | ||||||||||||||||||
Deferred income tax assets | 535 | 1,228 | 149 | — | — | ||||||||||||||||||
Goodwill | 5,033 | 5,047 | 5,049 | 5,037 | 4,966 | ||||||||||||||||||
Other assets | 7,140 | 6,822 | 6,869 | 6,712 | 6,913 | ||||||||||||||||||
Separate account assets | 144,434 | 149,041 | 158,436 | 153,362 | 172,372 | ||||||||||||||||||
Total assets | $ | 535,192 | $ | 539,314 | $ | 565,566 | $ | 573,907 | $ | 617,255 | |||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Future policy benefits | $ | 134,492 | $ | 135,879 | $ | 137,516 | $ | 140,239 | $ | 143,686 | |||||||||||||
Policyholder account balances | 139,171 | 138,673 | 141,734 | 142,822 | 145,360 | ||||||||||||||||||
Other policyholder funds | 8,549 | 8,446 | 8,682 | 8,660 | 8,912 | ||||||||||||||||||
Policyholder dividends payable | 911 | 761 | 745 | 775 | 834 | ||||||||||||||||||
Policyholder dividend obligation | — | — | — | 1,080 | 2,014 | ||||||||||||||||||
Payables for collateral under securities loaned and other transactions | 24,363 | 24,196 | 25,982 | 29,772 | 31,891 | ||||||||||||||||||
Bank deposits | 8,372 | 10,211 | 10,032 | 9,790 | 9,362 | ||||||||||||||||||
Short-term debt | 2,131 | 912 | 318 | 879 | 2,057 | ||||||||||||||||||
Long-term debt (1) | 13,202 | 13,220 | 20,177 | 20,647 | 24,512 | ||||||||||||||||||
Collateral financing arrangements | 5,297 | 5,297 | 5,297 | 5,297 | 5,297 | ||||||||||||||||||
Junior subordinated debt securities | 3,191 | 3,191 | 3,191 | 3,191 | 3,191 | ||||||||||||||||||
Current income tax payable | — | — | 66 | — | — | ||||||||||||||||||
Deferred income tax liability | — | — | — | 2,050 | 3,543 | ||||||||||||||||||
Other liabilities | 16,486 | 15,989 | 17,211 | 15,619 | 17,455 | ||||||||||||||||||
Separate account liabilities | 144,434 | 149,041 | 158,436 | 153,362 | 172,372 | ||||||||||||||||||
Total liabilities | 500,599 | 505,816 | 529,387 | 534,183 | 570,486 | ||||||||||||||||||
Stockholders’ Equity | |||||||||||||||||||||||
Preferred stock, at par value | 1 | 1 | 1 | 1 | 1 | ||||||||||||||||||
Common stock, at par value | 8 | 8 | 8 | 8 | 9 | ||||||||||||||||||
Additional paid-in capital | 16,865 | 16,859 | 16,871 | 16,896 | 20,451 | ||||||||||||||||||
Retained earnings | 19,822 | 19,501 | 20,294 | 21,820 | 22,096 | ||||||||||||||||||
Treasury stock, at cost | (194 | ) | (190 | ) | (172 | ) | (172 | ) | (172 | ) | |||||||||||||
Accumulated other comprehensive income (loss) | (2,234 | ) | (3,058 | ) | (1,191 | ) | 822 | 4,030 | |||||||||||||||
Total MetLife, Inc.’s stockholders’ equity | 34,268 | 33,121 | 35,811 | 39,375 | 46,415 | ||||||||||||||||||
Noncontrolling interests | 325 | 377 | 368 | 349 | 354 | ||||||||||||||||||
Total equity | 34,593 | 33,498 | 36,179 | 39,724 | 46,769 | ||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 535,192 | $ | 539,314 | $ | 565,566 | $ | 573,907 | $ | 617,255 | |||||||||||||
(1) | At March 31, 2010, June 30, 2010 and September 30, 2010, $7,377 million, $7,391 million and $7,371 million, respectively, of assets and $7,106 million, $7,129 million and $7,075 million, respectively, of liabilities related to certain securitization entities that are required to be consolidated under GAAP. See pages 39 and 40, note 3 for the amounts by asset category. |
3
![(METLIFE LOGO)](https://capedge.com/proxy/8-K/0000950123-10-097569/y87340y8734003.gif)
METLIFE, INC.
CONSOLIDATED STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
For the Three Months Ended | |||||||||||||||||||||||
September 30, | December 31, | March 31, | June 30, | September 30, | |||||||||||||||||||
Unaudited (In millions) | 2009 | 2009 | 2010 | 2010 | 2010 | ||||||||||||||||||
OPERATING REVENUES | |||||||||||||||||||||||
Premiums | $ | 6,601 | $ | 7,161 | $ | 6,854 | $ | 6,662 | $ | 6,562 | |||||||||||||
Universal life and investment-type product policy fees | 1,255 | 1,559 | 1,408 | 1,478 | 1,453 | ||||||||||||||||||
Net investment income | 3,956 | 4,000 | 4,293 | 4,143 | 4,337 | ||||||||||||||||||
Other revenues | 602 | 601 | 513 | 544 | 624 | ||||||||||||||||||
Total operating revenues | 12,414 | 13,321 | 13,068 | 12,827 | 12,976 | ||||||||||||||||||
OPERATING EXPENSES | |||||||||||||||||||||||
Policyholder benefits and dividends | 7,549 | 7,986 | 7,890 | 7,256 | 7,615 | ||||||||||||||||||
Interest credited to policyholder account balances | 1,259 | 1,195 | 1,146 | 1,048 | 1,261 | ||||||||||||||||||
Interest credited to bank deposits | 37 | 43 | 39 | 36 | 33 | ||||||||||||||||||
Capitalization of DAC | (722 | ) | (754 | ) | (744 | ) | (767 | ) | (778 | ) | |||||||||||||
Amortization of DAC and VOBA | 376 | 564 | 588 | 808 | 542 | ||||||||||||||||||
Interest expense | 274 | 269 | 264 | 266 | 294 | ||||||||||||||||||
Other expenses | 2,723 | 2,947 | 2,645 | 2,714 | 2,723 | ||||||||||||||||||
Total operating expenses | 11,496 | 12,250 | 11,828 | 11,361 | 11,690 | ||||||||||||||||||
Operating earnings before provision for income tax | 918 | 1,071 | 1,240 | 1,466 | 1,286 | ||||||||||||||||||
Provision for income tax expense (benefit) | 170 | 247 | 376 | 413 | 378 | ||||||||||||||||||
Operating earnings | 748 | 824 | 864 | 1,053 | 908 | ||||||||||||||||||
Preferred stock dividends | 30 | 31 | 30 | 31 | 30 | ||||||||||||||||||
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS | $ | 718 | $ | 793 | $ | 834 | $ | 1,022 | $ | 878 | |||||||||||||
Net Income Reconciliation | |||||||||||||||||||||||
Operating earnings | $ | 748 | $ | 824 | $ | 864 | $ | 1,053 | $ | 908 | |||||||||||||
Adjustments from operating earnings to income (loss) from continuing operations, net of income tax: | |||||||||||||||||||||||
Net investment gains (losses) | (732 | ) | (116 | ) | 31 | (13 | ) | (342 | ) | ||||||||||||||
Net derivatives gains (losses) | (1,407 | ) | (782 | ) | 41 | 1,481 | (244 | ) | |||||||||||||||
Universal life and investment-type product policy fees — amortization of unearned revenue related to net investment gains (losses) and net derivatives gains (losses) | (4 | ) | (6 | ) | (1 | ) | 7 | — | |||||||||||||||
Net investment income: | |||||||||||||||||||||||
Scheduled periodic settlement payments on derivatives not qualifying for hedge accounting | 4 | (29 | ) | (49 | ) | (61 | ) | (62 | ) | ||||||||||||||
Equity method operating joint ventures | (35 | ) | (45 | ) | (5 | ) | (97 | ) | — | ||||||||||||||
Real estate discontinued operations | (2 | ) | (2 | ) | (1 | ) | (1 | ) | 13 | ||||||||||||||
Net investment income related to certain consolidated securitization entities | — | — | 106 | 103 | 103 | ||||||||||||||||||
Policyholder benefits and policyholder dividends: | |||||||||||||||||||||||
Changes in policyholder dividend obligations related to net investment gains (losses) and net derivatives gains (losses) | — | — | — | — | — | ||||||||||||||||||
Changes in asset value fluctuations related to experience-rated contractholder liabilities and certain inflation-indexed liabilities | (63 | ) | (2 | ) | (24 | ) | (150 | ) | (174 | ) | |||||||||||||
Interest credited to policyholder account balances — scheduled periodic settlement payments on derivatives not qualifying for hedge accounting | 1 | 1 | 3 | (1 | ) | (5 | ) | ||||||||||||||||
Amortization of DAC and VOBA — related to net investment gains (losses) and net derivatives gains (losses) | 174 | 95 | (14 | ) | (212 | ) | (37 | ) | |||||||||||||||
Interest expense — related to certain consolidated securitization entities | — | — | (106 | ) | (103 | ) | (103 | ) | |||||||||||||||
Other expenses: | |||||||||||||||||||||||
Noncontrolling interest | (7 | ) | (8 | ) | (1 | ) | (12 | ) | 4 | ||||||||||||||
Business combination costs | (22 | ) | 2 | (29 | ) | (36 | ) | (46 | ) | ||||||||||||||
Provision for income tax (expense) benefit | 721 | 378 | 18 | (417 | ) | 307 | |||||||||||||||||
Income (loss) from continuing operations, net of income tax | (624 | ) | 310 | 833 | 1,541 | 322 | |||||||||||||||||
Income (loss) from discontinued operations, net of income tax | (1 | ) | 3 | 1 | 6 | (2 | ) | ||||||||||||||||
Net income (loss) | (625 | ) | 313 | 834 | 1,547 | 320 | |||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interest | (5 | ) | (7 | ) | (1 | ) | (10 | ) | 4 | ||||||||||||||
Net income (loss) attributable to MetLife, Inc. | (620 | ) | 320 | 835 | 1,557 | 316 | |||||||||||||||||
Less: Preferred stock dividends | 30 | 31 | 30 | 31 | 30 | ||||||||||||||||||
Net income (loss) available to MetLife, Inc.’s common shareholders | $ | (650 | ) | $ | 289 | $ | 805 | $ | 1,526 | $ | 286 | ||||||||||||
Premiums, Fees and Other Revenues | $ | 8,458 | $ | 9,321 | $ | 8,775 | $ | 8,684 | $ | 8,639 | |||||||||||||
4
![(METLIFE LOGO)](https://capedge.com/proxy/8-K/0000950123-10-097569/y87340y8734003.gif)
METLIFE, INC.
CONSOLIDATING BALANCE SHEET
September 30, 2010 | |||||||||||||||||||
Banking, | |||||||||||||||||||
Unaudited (In millions) | Consolidated | U.S. Business | International | Corporate & Other (1) | |||||||||||||||
ASSETS | |||||||||||||||||||
Total investments (1) | $ | 378,683 | $ | 288,602 | $ | 25,018 | $ | 65,063 | |||||||||||
Cash and cash equivalents (1) | 14,557 | 2,028 | 1,864 | 10,665 | |||||||||||||||
Accrued investment income | 3,469 | 2,766 | 346 | 357 | |||||||||||||||
Premiums, reinsurance and other receivables | 18,654 | 11,100 | 1,138 | 6,416 | |||||||||||||||
Deferred policy acquisition costs and value of business acquired | 17,463 | 14,365 | 3,092 | 6 | |||||||||||||||
Current income tax recoverable | 178 | 537 | (60 | ) | (299 | ) | |||||||||||||
Deferred income tax assets | — | — | — | — | |||||||||||||||
Goodwill | 4,966 | 4,163 | 333 | 470 | |||||||||||||||
Other assets | 6,913 | 4,443 | 507 | 1,963 | |||||||||||||||
Separate account assets | 172,372 | 163,289 | 9,083 | — | |||||||||||||||
Total assets | $ | 617,255 | $ | 491,293 | $ | 41,321 | $ | 84,641 | |||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||||||
Liabilities: | |||||||||||||||||||
Future policy benefits | $ | 143,686 | $ | 125,287 | $ | 12,769 | $ | 5,630 | |||||||||||
Policyholder account balances | 145,360 | 134,388 | 10,925 | 47 | |||||||||||||||
Other policyholder funds | 8,912 | 6,582 | 1,943 | 387 | |||||||||||||||
Policyholder dividends payable | 834 | 834 | — | — | |||||||||||||||
Policyholder dividend obligation | 2,014 | 2,014 | — | — | |||||||||||||||
Payables for collateral under securities loaned and other transactions | 31,891 | 17,784 | 35 | 14,072 | |||||||||||||||
Bank deposits | 9,362 | — | — | 9,362 | |||||||||||||||
Short-term debt | 2,057 | — | 13 | 2,044 | |||||||||||||||
Long-term debt (1) | 24,512 | 104 | 51 | 24,357 | |||||||||||||||
Collateral financing arrangements | 5,297 | — | — | 5,297 | |||||||||||||||
Junior subordinated debt securities | 3,191 | — | — | 3,191 | |||||||||||||||
Current income tax payable | — | — | — | — | |||||||||||||||
Deferred income tax liability | 3,543 | 3,652 | (165 | ) | 56 | ||||||||||||||
Other liabilities | 17,455 | 10,789 | 1,127 | 5,539 | |||||||||||||||
Separate account liabilities | 172,372 | 163,289 | 9,083 | — | |||||||||||||||
Total liabilities | 570,486 | 464,723 | 35,781 | 69,982 | |||||||||||||||
Stockholders’ Equity | |||||||||||||||||||
Preferred stock, at par value | 1 | — | — | 1 | |||||||||||||||
Common stock, at par value | 9 | — | — | 9 | |||||||||||||||
Allocated equity (2) | 42,547 | 23,953 | 4,505 | 14,089 | |||||||||||||||
Treasury stock, at cost | (172 | ) | — | — | (172 | ) | |||||||||||||
Accumulated other comprehensive income (loss) | 4,030 | �� | 2,620 | 832 | 578 | ||||||||||||||
Total MetLife, Inc.’s stockholders’ equity | 46,415 | 26,573 | 5,337 | 14,505 | |||||||||||||||
Noncontrolling interests | 354 | (3 | ) | 203 | 154 | ||||||||||||||
Total equity | 46,769 | 26,570 | 5,540 | 14,659 | |||||||||||||||
Total liabilities and stockholders’ equity | $ | 617,255 | $ | 491,293 | $ | 41,321 | $ | 84,641 | |||||||||||
(1) | At September 30, 2010, $7,371 million of assets and $7,075 million of liabilities related to certain securitization entities that are required to be consolidated under GAAP. See pages 39 and 40, note 3 for the amounts by asset category. | |
(2) | Allocated equity includes additional paid-in capital and retained earnings. |
5
![(METLIFE LOGO)](https://capedge.com/proxy/8-K/0000950123-10-097569/y87340y8734003.gif)
METLIFE, INC.
CONSOLIDATING BALANCE SHEET — U.S. BUSINESS
September 30, 2010 | |||||||||||||||||||||||
Insurance | Retirement | Corporate Benefit | |||||||||||||||||||||
Unaudited (In millions) | U.S. Business | Products | Products | Funding | Auto & Home | ||||||||||||||||||
ASSETS | |||||||||||||||||||||||
Total investments | $ | 288,602 | $ | 112,494 | $ | 54,735 | $ | 117,434 | $ | 3,939 | |||||||||||||
Cash and cash equivalents | 2,028 | 816 | 467 | 691 | 54 | ||||||||||||||||||
Accrued investment income | 2,766 | 1,142 | 524 | 1,043 | 57 | ||||||||||||||||||
Premiums, reinsurance and other receivables | 11,100 | 6,950 | 816 | 2,291 | 1,043 | ||||||||||||||||||
Deferred policy acquisition costs and value of business acquired | 14,365 | 8,886 | 5,208 | 79 | 192 | ||||||||||||||||||
Current income tax recoverable | 537 | 192 | 267 | 62 | 16 | ||||||||||||||||||
Deferred income tax assets | — | — | — | — | — | ||||||||||||||||||
Goodwill | 4,163 | 1,414 | 1,692 | 900 | 157 | ||||||||||||||||||
Other assets | 4,443 | 1,926 | 1,709 | 447 | 361 | ||||||||||||||||||
Separate account assets | 163,289 | 9,032 | 97,538 | 56,719 | — | ||||||||||||||||||
Total assets | $ | 491,293 | $ | 142,852 | $ | 162,956 | $ | 179,666 | $ | 5,819 | |||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Future policy benefits | $ | 125,287 | $ | 72,035 | $ | 4,482 | $ | 45,715 | $ | 3,055 | |||||||||||||
Policyholder account balances | 134,388 | 29,182 | 48,062 | 57,144 | — | ||||||||||||||||||
Other policyholder funds | 6,582 | 6,039 | 116 | 251 | 176 | ||||||||||||||||||
Policyholder dividends payable | 834 | 834 | — | — | — | ||||||||||||||||||
Policyholder dividend obligation | 2,014 | 2,014 | — | — | — | ||||||||||||||||||
Payables for collateral under securities loaned and other transactions | 17,784 | 4,280 | 3,015 | 10,489 | — | ||||||||||||||||||
Bank deposits | — | — | — | — | — | ||||||||||||||||||
Short-term debt | — | — | — | — | — | ||||||||||||||||||
Long-term debt | 104 | (6 | ) | 8 | 102 | — | |||||||||||||||||
Collateral financing arrangements | — | — | — | — | — | ||||||||||||||||||
Junior subordinated debt securities | — | — | — | — | — | ||||||||||||||||||
Current income tax payable | — | — | — | — | — | ||||||||||||||||||
Deferred income tax liability | 3,652 | 3,281 | 1,788 | (1,394 | ) | (23 | ) | ||||||||||||||||
Other liabilities | 10,789 | 5,652 | 996 | 3,439 | 702 | ||||||||||||||||||
Separate account liabilities | 163,289 | 9,032 | 97,538 | 56,719 | — | ||||||||||||||||||
Total liabilities | 464,723 | 132,343 | 156,005 | 172,465 | 3,910 | ||||||||||||||||||
Stockholders’ Equity | |||||||||||||||||||||||
Preferred stock, at par value | — | — | — | — | — | ||||||||||||||||||
Common stock, at par value | — | — | — | — | — | ||||||||||||||||||
Allocated equity (1) | 23,953 | 9,355 | 6,345 | 6,420 | 1,833 | ||||||||||||||||||
Treasury stock, at cost | — | — | — | — | — | ||||||||||||||||||
Accumulated other comprehensive income (loss) | 2,620 | 1,155 | 607 | 782 | 76 | ||||||||||||||||||
Total MetLife, Inc.’s stockholders’ equity | 26,573 | 10,510 | 6,952 | 7,202 | 1,909 | ||||||||||||||||||
Noncontrolling interests | (3 | ) | (1 | ) | (1 | ) | (1 | ) | — | ||||||||||||||
Total equity | 26,570 | 10,509 | 6,951 | 7,201 | 1,909 | ||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 491,293 | $ | 142,852 | $ | 162,956 | $ | 179,666 | $ | 5,819 | |||||||||||||
(1) | Allocated equity includes additional paid-in capital and retained earnings. |
6
![(METLIFE LOGO)](https://capedge.com/proxy/8-K/0000950123-10-097569/y87340y8734003.gif)
METLIFE, INC.
CONSOLIDATING STATEMENT OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
For the Three Months Ended September 30, 2010 | |||||||||||||||||||
Banking, | |||||||||||||||||||
Unaudited (In millions) | Consolidated | U.S. Business | International | Corporate & Other | |||||||||||||||
OPERATING REVENUES | |||||||||||||||||||
Premiums | $ | 6,562 | $ | 5,603 | $ | 956 | $ | 3 | |||||||||||
Universal life and investment-type product policy fees | 1,453 | 1,151 | 302 | — | |||||||||||||||
Net investment income | 4,337 | 3,638 | 474 | 225 | |||||||||||||||
Other revenues | 624 | 308 | 7 | 309 | |||||||||||||||
Total operating revenues | 12,976 | 10,700 | 1,739 | 537 | |||||||||||||||
OPERATING EXPENSES | |||||||||||||||||||
Policyholder benefits and dividends | 7,615 | 6,767 | 852 | (4 | ) | ||||||||||||||
Interest credited to policyholder account balances | 1,261 | 1,017 | 244 | — | |||||||||||||||
Interest credited to bank deposits | 33 | — | — | 33 | |||||||||||||||
Capitalization of DAC | (778 | ) | (598 | ) | (180 | ) | — | ||||||||||||
Amortization of DAC and VOBA | 542 | 433 | 110 | (1 | ) | ||||||||||||||
Interest expense | 294 | 3 | (1 | ) | 292 | ||||||||||||||
Other expenses | 2,723 | 1,926 | 519 | 278 | |||||||||||||||
Total operating expenses | 11,690 | 9,548 | 1,544 | 598 | |||||||||||||||
Operating earnings before provision for income tax | 1,286 | 1,152 | 195 | (61 | ) | ||||||||||||||
Provision for income tax expense (benefit) | 378 | 388 | 4 | (14 | ) | ||||||||||||||
Operating earnings | 908 | 764 | 191 | (47 | ) | ||||||||||||||
Preferred stock dividends | 30 | — | — | 30 | |||||||||||||||
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS | $ | 878 | $ | 764 | $ | 191 | $ | (77 | ) | ||||||||||
Net Income Reconciliation | |||||||||||||||||||
Operating earnings | $ | 908 | $ | 764 | $ | 191 | $ | (47 | ) | ||||||||||
Adjustments from operating earnings to income (loss) from continuing operations, net of income tax: | |||||||||||||||||||
Net investment gains (losses) | (342 | ) | 125 | (239 | ) | (228 | ) | ||||||||||||
Net derivatives gains (losses) | (244 | ) | 5 | (109 | ) | (140 | ) | ||||||||||||
Universal life and investment-type product policy fees — amortization of unearned revenue related to net investment gains (losses) and net derivatives gains (losses) | — | — | — | — | |||||||||||||||
Net investment income: | |||||||||||||||||||
Scheduled periodic settlement payments on derivatives not qualifying for hedge accounting | (62 | ) | (55 | ) | (11 | ) | 4 | ||||||||||||
Equity method operating joint ventures | — | — | — | — | |||||||||||||||
Real estate discontinued operations | 13 | — | — | 13 | |||||||||||||||
Net investment income related to certain consolidated securitization entities | 103 | — | — | 103 | |||||||||||||||
Policyholder benefits and policyholder dividends: | |||||||||||||||||||
Changes in policyholder dividend obligations related to net investment gains (losses) and net derivatives gains (losses) | — | — | — | — | |||||||||||||||
Changes in asset value fluctuations related to experience-rated contractholder liabilities and certain inflation-indexed liabilities | (174 | ) | (36 | ) | (138 | ) | — | ||||||||||||
Interest credited to policyholder account balances — scheduled periodic settlement payments on derivatives not qualifying for hedge accounting | (5 | ) | (5 | ) | — | — | |||||||||||||
Amortization of DAC and VOBA — related to net investment gains (losses) and net derivatives gains (losses) | (37 | ) | (37 | ) | — | — | |||||||||||||
Interest expense — related to certain consolidated securitization entities | (103 | ) | — | — | (103 | ) | |||||||||||||
Other expenses: | |||||||||||||||||||
Noncontrolling interest | 4 | — | 4 | — | |||||||||||||||
Business combination costs | (46 | ) | — | — | (46 | ) | |||||||||||||
Provision for income tax (expense) benefit | 307 | 2 | 169 | 136 | |||||||||||||||
Income (loss) from continuing operations, net of income tax | 322 | 763 | (133 | ) | (308 | ) | |||||||||||||
Income (loss) from discontinued operations, net of income tax | (2 | ) | 1 | — | (3 | ) | |||||||||||||
Net income (loss) | 320 | 764 | (133 | ) | (311 | ) | |||||||||||||
Less: Net income (loss) attributable to noncontrolling interest | 4 | — | 4 | — | |||||||||||||||
Net income (loss) attributable to MetLife, Inc. | 316 | 764 | (137 | ) | (311 | ) | |||||||||||||
Less: Preferred stock dividends | 30 | — | — | 30 | |||||||||||||||
Net income (loss) available to MetLife, Inc.’s common shareholders | $ | 286 | $ | 764 | $ | (137 | ) | $ | (341 | ) | |||||||||
Premiums, Fees and Other Revenues | $ | 8,639 | $ | 7,062 | $ | 1,265 | $ | 312 | |||||||||||
7
![(METLIFE LOGO)](https://capedge.com/proxy/8-K/0000950123-10-097569/y87340y8734003.gif)
METLIFE, INC.
CONSOLIDATING STATEMENT OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
CONSOLIDATING STATEMENT OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
For the Three Months Ended September 30, 2009 | |||||||||||||||||||
Banking, | |||||||||||||||||||
Unaudited (In millions) | Consolidated | U.S. Business | International | Corporate & Other | |||||||||||||||
OPERATING REVENUES | |||||||||||||||||||
Premiums | $ | 6,601 | $ | 5,728 | $ | 868 | $ | 5 | |||||||||||
Universal life and investment-type product policy fees | 1,255 | 1,033 | 222 | — | |||||||||||||||
Net investment income | 3,956 | 3,441 | 395 | 120 | |||||||||||||||
Other revenues | 602 | 324 | 4 | 274 | |||||||||||||||
Total operating revenues | 12,414 | 10,526 | 1,489 | 399 | |||||||||||||||
OPERATING EXPENSES | |||||||||||||||||||
Policyholder benefits and dividends | 7,549 | 6,844 | 705 | — | |||||||||||||||
Interest credited to policyholder account balances | 1,259 | 1,061 | 198 | — | |||||||||||||||
Interest credited to bank deposits | 37 | — | — | 37 | |||||||||||||||
Capitalization of DAC | (722 | ) | (558 | ) | (164 | ) | — | ||||||||||||
Amortization of DAC and VOBA | 376 | 297 | 79 | — | |||||||||||||||
Interest expense | 274 | 1 | 3 | 270 | |||||||||||||||
Other expenses | 2,723 | 1,945 | 481 | 297 | |||||||||||||||
Total operating expenses | 11,496 | 9,590 | 1,302 | 604 | |||||||||||||||
Operating earnings before provision for income tax | 918 | 936 | 187 | (205 | ) | ||||||||||||||
Provision for income tax expense (benefit) | 170 | 303 | 34 | (167 | ) | ||||||||||||||
Operating earnings | 748 | 633 | 153 | (38 | ) | ||||||||||||||
Preferred stock dividends | 30 | — | — | 30 | |||||||||||||||
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS | $ | 718 | $ | 633 | $ | 153 | $ | (68 | ) | ||||||||||
Net Income Reconciliation | |||||||||||||||||||
Operating earnings | $ | 748 | $ | 633 | $ | 153 | $ | (38 | ) | ||||||||||
Adjustments from operating earnings to income (loss) from continuing operations, net of income tax: | |||||||||||||||||||
Net investment gains (losses) | (732 | ) | (542 | ) | (18 | ) | (172 | ) | |||||||||||
Net derivatives gains (losses) | (1,407 | ) | (506 | ) | (556 | ) | (345 | ) | |||||||||||
Universal life and investment-type product policy fees — amortization of unearned revenue related to net investment gains (losses) and net derivatives gains (losses) | (4 | ) | (4 | ) | — | — | |||||||||||||
Net investment income: | |||||||||||||||||||
Scheduled periodic settlement payments on derivatives not qualifying for hedge accounting | 4 | (5 | ) | (3 | ) | 12 | |||||||||||||
Equity method operating joint ventures | (35 | ) | — | (35 | ) | — | |||||||||||||
Real estate discontinued operations | (2 | ) | (2 | ) | — | — | |||||||||||||
Net investment income related to certain consolidated securitization entities | — | — | — | — | |||||||||||||||
Policyholder benefits and policyholder dividends: | |||||||||||||||||||
Changes in policyholder dividend obligations related to net investment gains (losses) and net derivatives gains (losses) | — | — | — | — | |||||||||||||||
Changes in asset value fluctuations related to experience-rated contractholder liabilities and certain inflation-indexed liabilities | (63 | ) | (39 | ) | (24 | ) | — | ||||||||||||
Interest credited to policyholder account balances — scheduled periodic settlement payments on derivatives not qualifying for hedge accounting | 1 | 1 | — | — | |||||||||||||||
Amortization of DAC and VOBA — related to net investment gains (losses) and net derivatives gains (losses) | 174 | 174 | — | — | |||||||||||||||
Interest expense — related to certain consolidated securitization entities | — | — | — | — | |||||||||||||||
Other expenses: | |||||||||||||||||||
Noncontrolling interest | (7 | ) | — | (7 | ) | — | |||||||||||||
Business combination costs | (22 | ) | — | — | (22 | ) | |||||||||||||
Provision for income tax (expense) benefit | 721 | 327 | 207 | 187 | |||||||||||||||
Income (loss) from continuing operations, net of income tax | (624 | ) | 37 | (283 | ) | (378 | ) | ||||||||||||
Income (loss) from discontinued operations, net of income tax | (1 | ) | 1 | — | (2 | ) | |||||||||||||
Net income (loss) | (625 | ) | 38 | (283 | ) | (380 | ) | ||||||||||||
Less: Net income (loss) attributable to noncontrolling interest | (5 | ) | — | (5 | ) | — | |||||||||||||
Net income (loss) attributable to MetLife, Inc. | (620 | ) | 38 | (278 | ) | (380 | ) | ||||||||||||
Less: Preferred stock dividends | 30 | — | — | 30 | |||||||||||||||
Net income (loss) available to MetLife, Inc.’s common shareholders | $ | (650 | ) | $ | 38 | $ | (278 | ) | $ | (410 | ) | ||||||||
Premiums, Fees and Other Revenues | $ | 8,458 | $ | 7,085 | $ | 1,094 | $ | 279 | |||||||||||
8
![(METLIFE LOGO)](https://capedge.com/proxy/8-K/0000950123-10-097569/y87340y8734003.gif)
METLIFE, INC.
CONSOLIDATING STATEMENT OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
CONSOLIDATING STATEMENT OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
For the Nine Months Ended September 30, 2010 | |||||||||||||||||||
Banking, | |||||||||||||||||||
Unaudited (In millions) | Consolidated | U.S. Business | International | Corporate & Other | |||||||||||||||
OPERATING REVENUES | |||||||||||||||||||
Premiums | $ | 20,078 | $ | 17,328 | $ | 2,744 | $ | 6 | |||||||||||
Universal life and investment-type product policy fees | 4,339 | 3,431 | 908 | — | |||||||||||||||
Net investment income | 12,773 | 10,861 | 1,221 | 691 | |||||||||||||||
Other revenues | 1,681 | 916 | 12 | 753 | |||||||||||||||
Total operating revenues | 38,871 | 32,536 | 4,885 | 1,450 | |||||||||||||||
OPERATING EXPENSES | |||||||||||||||||||
Policyholder benefits and dividends | 22,761 | 20,243 | 2,529 | (11 | ) | ||||||||||||||
Interest credited to policyholder account balances | 3,455 | 3,018 | 437 | — | |||||||||||||||
Interest credited to bank deposits | 108 | — | — | 108 | |||||||||||||||
Capitalization of DAC | (2,289 | ) | (1,749 | ) | (540 | ) | — | ||||||||||||
Amortization of DAC and VOBA | 1,938 | 1,609 | 330 | (1 | ) | ||||||||||||||
Interest expense | 824 | 7 | 2 | 815 | |||||||||||||||
Other expenses | 8,082 | 5,723 | 1,534 | 825 | |||||||||||||||
Total operating expenses | 34,879 | 28,851 | 4,292 | 1,736 | |||||||||||||||
Operating earnings before provision for income tax | 3,992 | 3,685 | 593 | (286 | ) | ||||||||||||||
Provision for income tax expense (benefit) | 1,167 | 1,246 | 106 | (185 | ) | ||||||||||||||
Operating earnings | 2,825 | 2,439 | 487 | (101 | ) | ||||||||||||||
Preferred stock dividends | 91 | — | — | 91 | |||||||||||||||
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS | $ | 2,734 | $ | 2,439 | $ | 487 | $ | (192 | ) | ||||||||||
Net Income Reconciliation | |||||||||||||||||||
Operating earnings | $ | 2,825 | $ | 2,439 | $ | 487 | $ | (101 | ) | ||||||||||
Adjustments from operating earnings to income (loss) from continuing operations, net of income tax: | |||||||||||||||||||
Net investment gains (losses) | (324 | ) | 282 | (268 | ) | (338 | ) | ||||||||||||
Net derivatives gains (losses) | 1,278 | 1,208 | 157 | (87 | ) | ||||||||||||||
Universal life and investment-type product policy fees — amortization of unearned revenue related to net investment gains (losses) and net derivatives gains (losses) | 6 | 6 | — | — | |||||||||||||||
Net investment income: | |||||||||||||||||||
Scheduled periodic settlement payments on derivatives not qualifying for hedge accounting | (172 | ) | (159 | ) | (33 | ) | 20 | ||||||||||||
Equity method operating joint ventures | (102 | ) | — | (102 | ) | — | |||||||||||||
Real estate discontinued operations | 11 | (2 | ) | — | 13 | ||||||||||||||
Net investment income related to certain consolidated securitization entities | 312 | — | — | 312 | |||||||||||||||
Policyholder benefits and policyholder dividends: | |||||||||||||||||||
Changes in policyholder dividend obligations related to net investment gains (losses) and net derivatives gains (losses) | — | — | — | — | |||||||||||||||
Changes in asset value fluctuations related to experience-rated contractholder liabilities and certain inflation-indexed liabilities | (348 | ) | (77 | ) | (271 | ) | — | ||||||||||||
Interest credited to policyholder account balances — scheduled periodic settlement payments on derivatives not qualifying for hedge accounting | (3 | ) | (3 | ) | — | — | |||||||||||||
Amortization of DAC and VOBA — related to net investment gains (losses) and net derivatives gains (losses) | (263 | ) | (263 | ) | — | — | |||||||||||||
Interest expense — related to certain consolidated securitization entities | (312 | ) | — | — | (312 | ) | |||||||||||||
Other expenses: | |||||||||||||||||||
Noncontrolling interest | (9 | ) | 2 | (7 | ) | (4 | ) | ||||||||||||
Business combination costs | (111 | ) | — | — | (111 | ) | |||||||||||||
Provision for income tax (expense) benefit | (92 | ) | (356 | ) | 87 | 177 | |||||||||||||
Income (loss) from continuing operations, net of income tax | 2,696 | 3,077 | 50 | (431 | ) | ||||||||||||||
Income (loss) from discontinued operations, net of income tax | 5 | 8 | — | (3 | ) | ||||||||||||||
Net income (loss) | 2,701 | 3,085 | 50 | (434 | ) | ||||||||||||||
Less: Net income (loss) attributable to noncontrolling interest | (7 | ) | 1 | (6 | ) | (2 | ) | ||||||||||||
Net income (loss) attributable to MetLife, Inc. | 2,708 | 3,084 | 56 | (432 | ) | ||||||||||||||
Less: Preferred stock dividends | 91 | — | — | 91 | |||||||||||||||
Net income (loss) available to MetLife, Inc.’s common shareholders | $ | 2,617 | $ | 3,084 | $ | 56 | $ | (523 | ) | ||||||||||
Premiums, Fees and Other Revenues | $ | 26,098 | $ | 21,675 | $ | 3,664 | $ | 759 | |||||||||||
9
![(METLIFE LOGO)](https://capedge.com/proxy/8-K/0000950123-10-097569/y87340y8734003.gif)
METLIFE, INC.
CONSOLIDATING STATEMENT OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
For the Nine Months Ended September 30, 2009 | |||||||||||||||||||
Banking, | |||||||||||||||||||
Unaudited (In millions) | Consolidated | U.S. Business | International | Corporate & Other | |||||||||||||||
OPERATING REVENUES | |||||||||||||||||||
Premiums | $ | 19,299 | $ | 16,922 | $ | 2,366 | $ | 11 | |||||||||||
Universal life and investment-type product policy fees | 3,671 | 3,013 | 658 | — | |||||||||||||||
Net investment income | 11,089 | 9,861 | 922 | 306 | |||||||||||||||
Other revenues | 1,728 | 898 | 8 | 822 | |||||||||||||||
Total operating revenues | 35,787 | 30,694 | 3,954 | 1,139 | |||||||||||||||
OPERATING EXPENSES | |||||||||||||||||||
Policyholder benefits and dividends | 21,916 | 20,060 | 1,853 | 3 | |||||||||||||||
Interest credited to policyholder account balances | 3,658 | 3,223 | 435 | — | |||||||||||||||
Interest credited to bank deposits | 120 | — | — | 120 | |||||||||||||||
Capitalization of DAC | (2,265 | ) | (1,816 | ) | (449 | ) | — | ||||||||||||
Amortization of DAC and VOBA | 1,454 | 1,180 | 272 | 2 | |||||||||||||||
Interest expense | 775 | 7 | 6 | 762 | |||||||||||||||
Other expenses | 8,045 | 5,877 | 1,253 | 915 | |||||||||||||||
Total operating expenses | 33,703 | 28,531 | 3,370 | 1,802 | |||||||||||||||
Operating earnings before provision for income tax | 2,084 | 2,163 | 584 | (663 | ) | ||||||||||||||
Provision for income tax expense (benefit) | 421 | 693 | 142 | (414 | ) | ||||||||||||||
Operating earnings | 1,663 | 1,470 | 442 | (249 | ) | ||||||||||||||
Preferred stock dividends | 91 | — | — | 91 | |||||||||||||||
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS | $ | 1,572 | $ | 1,470 | $ | 442 | $ | (340 | ) | ||||||||||
Net Income Reconciliation | |||||||||||||||||||
Operating earnings | $ | 1,663 | $ | 1,470 | $ | 442 | $ | (249 | ) | ||||||||||
Adjustments from operating earnings to income (loss) from continuing operations, net of income tax: | |||||||||||||||||||
Net investment gains (losses) | (2,790 | ) | (2,442 | ) | (78 | ) | (270 | ) | |||||||||||
Net derivatives gains (losses) | (4,084 | ) | (3,097 | ) | (543 | ) | (444 | ) | |||||||||||
Universal life and investment-type product policy fees — amortization of unearned revenue related to net investment gains (losses) and net derivatives gains (losses) | (21 | ) | (21 | ) | — | — | |||||||||||||
Net investment income: | |||||||||||||||||||
Scheduled periodic settlement payments on derivatives not qualifying for hedge accounting | (59 | ) | (69 | ) | (3 | ) | 13 | ||||||||||||
Equity method operating joint ventures | (111 | ) | — | (111 | ) | — | |||||||||||||
Real estate discontinued operations | (5 | ) | (5 | ) | — | — | |||||||||||||
Net investment income related to certain consolidated securitization entities | — | — | — | — | |||||||||||||||
Policyholder benefits and policyholder dividends: | |||||||||||||||||||
Changes in policyholder dividend obligations related to net investment gains (losses) and net derivatives gains (losses) | (11 | ) | (11 | ) | — | — | |||||||||||||
Changes in asset value fluctuations related to experience-rated contractholder liabilities and certain inflation-indexed liabilities | (71 | ) | (64 | ) | (7 | ) | — | ||||||||||||
Interest credited to policyholder account balances — scheduled periodic settlement payments on derivatives not qualifying for hedge accounting | 3 | 3 | — | — | |||||||||||||||
Amortization of DAC and VOBA — related to net investment gains (losses) and net derivatives gains (losses) | 616 | 616 | — | — | |||||||||||||||
Interest expense — related to certain consolidated securitization entities | — | — | — | — | |||||||||||||||
Other expenses: | |||||||||||||||||||
Noncontrolling interest | (30 | ) | — | (21 | ) | (9 | ) | ||||||||||||
Business combination costs | (33 | ) | — | — | (33 | ) | |||||||||||||
Provision for income tax (expense) benefit | 2,305 | 1,781 | 259 | 265 | |||||||||||||||
Income (loss) from continuing operations, net of income tax | (2,628 | ) | (1,839 | ) | (62 | ) | (727 | ) | |||||||||||
Income (loss) from discontinued operations, net of income tax | 37 | 27 | — | 10 | |||||||||||||||
Net income (loss) | (2,591 | ) | (1,812 | ) | (62 | ) | (717 | ) | |||||||||||
Less: Net income (loss) attributable to noncontrolling interest | (25 | ) | — | (19 | ) | (6 | ) | ||||||||||||
Net income (loss) attributable to MetLife, Inc. | (2,566 | ) | (1,812 | ) | (43 | ) | (711 | ) | |||||||||||
Less: Preferred stock dividends | 91 | — | — | 91 | |||||||||||||||
Net income (loss) available to MetLife, Inc.’s common shareholders | $ | (2,657 | ) | $ | (1,812 | ) | $ | (43 | ) | $ | (802 | ) | |||||||
Premiums, Fees and Other Revenues | $ | 24,698 | $ | 20,833 | $ | 3,032 | $ | 833 | |||||||||||
10
![(METLIFE LOGO)](https://capedge.com/proxy/8-K/0000950123-10-097569/y87340y8734003.gif)
For the Three Months Ended | |||||||||||||||||||||||
September 30, | December 31, | March 31, | June 30, | September 30, | |||||||||||||||||||
Unaudited (In millions) | 2009 | 2009 | 2010 | 2010 | 2010 | ||||||||||||||||||
U.S. BUSINESS | |||||||||||||||||||||||
INSURANCE PRODUCTS | $ | 302 | $ | 400 | $ | 298 | $ | 369 | $ | 345 | |||||||||||||
RETIREMENT PRODUCTS | 105 | 207 | 159 | 238 | 149 | ||||||||||||||||||
CORPORATE BENEFIT FUNDING | 140 | 191 | 228 | 238 | 189 | ||||||||||||||||||
AUTO & HOME | 86 | 84 | 72 | 73 | 81 | ||||||||||||||||||
U.S. BUSINESS TOTAL | $ | 633 | $ | 882 | $ | 757 | $ | 918 | $ | 764 | |||||||||||||
INTERNATIONAL | 153 | 21 | 151 | 145 | 191 | ||||||||||||||||||
BANKING, CORPORATE & OTHER | (68 | ) | (110 | ) | (74 | ) | (41 | ) | (77 | ) | |||||||||||||
METLIFE, INC. CONSOLIDATED | $ | 718 | $ | 793 | $ | 834 | $ | 1,022 | $ | 878 | |||||||||||||
(1) | A reconciliation of operating earnings available to common shareholders to net income (loss) available to MetLife, Inc.’s common shareholders for each segment appears in the QFS as follows: (i) Insurance Products, page 12, (ii) Retirement Products, page 19, (iii) Corporate Benefit Funding, page 23, (iv) Auto & Home, page 27, (v) International, page 31, and (vi) Banking, Corporate & Other, page 35. A consolidated reconciliation of operating earnings available to common shareholders to net income (loss) for MetLife, Inc. appears on page 4. |
11
![(METLIFE LOGO)](https://capedge.com/proxy/8-K/0000950123-10-097569/y87340y8734003.gif)
U.S. BUSINESS
INSURANCE PRODUCTS
STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
For the Three Months Ended | For the Year-to-Date Period Ended | |||||||||||||||||||||||||||||||||||||
September 30, | December 31, | March 31, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||||||||||||||||||
Unaudited (In millions) | 2009 | 2009 | 2010 | 2010 | 2010 | 2009 | 2010 | |||||||||||||||||||||||||||||||
OPERATING REVENUES | ||||||||||||||||||||||||||||||||||||||
Premiums | $ | 4,222 | $ | 4,510 | $ | 4,323 | $ | 4,317 | $ | 4,234 | $ | 12,658 | $ | 12,874 | ||||||||||||||||||||||||
Universal life and investment-type product policy fees | 533 | 622 | 549 | 546 | 539 | 1,659 | 1,634 | |||||||||||||||||||||||||||||||
Net investment income | 1,437 | 1,483 | 1,504 | 1,495 | 1,515 | 4,131 | 4,514 | |||||||||||||||||||||||||||||||
Other revenues | 221 | 200 | 189 | 188 | 185 | 579 | 562 | |||||||||||||||||||||||||||||||
Total operating revenues | 6,413 | 6,815 | 6,565 | 6,546 | 6,473 | 19,027 | 19,584 | |||||||||||||||||||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||||||||||||||||
Policyholder benefits and dividends | 4,745 | 4,918 | 4,847 | 4,721 | 4,685 | 14,193 | 14,253 | |||||||||||||||||||||||||||||||
Interest credited to policyholder account balances | 240 | 248 | 234 | 237 | 243 | 704 | 714 | |||||||||||||||||||||||||||||||
Interest credited to bank deposits | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Capitalization of DAC | (218 | ) | (236 | ) | (206 | ) | (217 | ) | (204 | ) | (637 | ) | (627 | ) | ||||||||||||||||||||||||
Amortization of DAC and VOBA | 145 | 209 | 239 | 206 | 221 | 516 | 666 | |||||||||||||||||||||||||||||||
Interest expense | — | 3 | — | — | — | 3 | — | |||||||||||||||||||||||||||||||
Other expenses | 1,048 | 1,074 | 992 | 1,031 | 998 | 3,132 | 3,021 | |||||||||||||||||||||||||||||||
Total operating expenses | 5,960 | 6,216 | 6,106 | 5,978 | 5,943 | 17,911 | 18,027 | |||||||||||||||||||||||||||||||
Operating earnings before provision for income tax | 453 | 599 | 459 | 568 | 530 | 1,116 | 1,557 | |||||||||||||||||||||||||||||||
Provision for income tax expense (benefit) | 151 | 199 | 161 | 199 | 185 | 374 | 545 | |||||||||||||||||||||||||||||||
Operating earnings | 302 | 400 | 298 | 369 | 345 | 742 | 1,012 | |||||||||||||||||||||||||||||||
Preferred stock dividends | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS | $ | 302 | $ | 400 | $ | 298 | $ | 369 | $ | 345 | $ | 742 | $ | 1,012 | ||||||||||||||||||||||||
Net Income Reconciliation | ||||||||||||||||||||||||||||||||||||||
Operating earnings | $ | 302 | $ | 400 | $ | 298 | $ | 369 | $ | 345 | $ | 742 | $ | 1,012 | ||||||||||||||||||||||||
Adjustments from operating earnings to income (loss) from continuing operations, net of income tax: | ||||||||||||||||||||||||||||||||||||||
Net investment gains (losses) | (137 | ) | 48 | 13 | (4 | ) | 69 | (520 | ) | 78 | ||||||||||||||||||||||||||||
Net derivatives gains (losses) | (2 | ) | (253 | ) | 20 | 605 | 86 | (1,533 | ) | 711 | ||||||||||||||||||||||||||||
Universal life and investment-type product policy fees — amortization of unearned revenue related to net investment gains (losses) and net derivatives gains (losses) | (4 | ) | (6 | ) | (1 | ) | 7 | — | (21 | ) | 6 | |||||||||||||||||||||||||||
Net investment income: | ||||||||||||||||||||||||||||||||||||||
Scheduled periodic settlement payments on derivatives not qualifying for hedge accounting | (14 | ) | (17 | ) | (35 | ) | (35 | ) | (36 | ) | (57 | ) | (106 | ) | ||||||||||||||||||||||||
Equity method operating joint ventures | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Real estate discontinued operations | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Net investment income related to certain consolidated securitization entities | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Policyholder benefits and policyholder dividends: | ||||||||||||||||||||||||||||||||||||||
Changes in policyholder dividend obligations related to net investment gains (losses) and net derivatives gains (losses) | — | — | — | — | — | (11 | ) | — | ||||||||||||||||||||||||||||||
Changes in asset value fluctuations related to experience-rated contractholder liabilities and certain inflation-indexed liabilities | 1 | (4 | ) | (1 | ) | 1 | (5 | ) | 5 | (5 | ) | |||||||||||||||||||||||||||
Interest credited to policyholder account balances — scheduled periodic settlement payments on derivatives not qualifying for hedge accounting | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Amortization of DAC and VOBA — related to net investment gains (losses) and net derivatives gains (losses) | (47 | ) | (14 | ) | (10 | ) | (40 | ) | (28 | ) | (14 | ) | (78 | ) | ||||||||||||||||||||||||
Interest expense — related to certain consolidated securitization entities | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Other expenses: | ||||||||||||||||||||||||||||||||||||||
Noncontrolling interest | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Business combination costs | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Provision for income tax (expense) benefit | 72 | 85 | 5 | (188 | ) | (30 | ) | 752 | (213 | ) | ||||||||||||||||||||||||||||
Income (loss) from continuing operations, net of income tax | 171 | 239 | 289 | 715 | 401 | (657 | ) | 1,405 | ||||||||||||||||||||||||||||||
Income (loss) from discontinued operations, net of income tax | — | 3 | — | — | — | 19 | — | |||||||||||||||||||||||||||||||
Net income (loss) | 171 | 242 | 289 | 715 | 401 | (638 | ) | 1,405 | ||||||||||||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interest | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Net income (loss) attributable to MetLife, Inc. | 171 | 242 | 289 | 715 | 401 | (638 | ) | 1,405 | ||||||||||||||||||||||||||||||
Less: Preferred stock dividends | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Net income (loss) available to MetLife, Inc.’s common shareholders | $ | 171 | $ | 242 | $ | 289 | $ | 715 | $ | 401 | $ | (638 | ) | $ | 1,405 | |||||||||||||||||||||||
Premiums, Fees and Other Revenues | $ | 4,976 | $ | 5,332 | $ | 5,061 | $ | 5,051 | $ | 4,958 | $ | 14,896 | $ | 15,070 | ||||||||||||||||||||||||
12
![(METLIFE LOGO)](https://capedge.com/proxy/8-K/0000950123-10-097569/y87340y8734003.gif)
U.S. BUSINESS
INSURANCE PRODUCTS — GROUP LIFE
STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS — PRODUCT LEVEL
INSURANCE PRODUCTS — GROUP LIFE
STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS — PRODUCT LEVEL
For the Three Months Ended | For the Year-to-Date Period Ended | |||||||||||||||||||||||||||||||||||||
September 30, | December 31, | March 31, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||||||||||||||||||
Unaudited (In millions, except ratios) | 2009 | 2009 | 2010 | 2010 | 2010 | 2009 | 2010 | |||||||||||||||||||||||||||||||
OPERATING REVENUES | ||||||||||||||||||||||||||||||||||||||
Premiums | $ | 1,739 | $ | 1,829 | $ | 1,871 | $ | 1,841 | $ | 1,775 | $ | 5,238 | $ | 5,487 | ||||||||||||||||||||||||
Universal life and investment-type product policy fees | 152 | 145 | 152 | 149 | 159 | 480 | 460 | |||||||||||||||||||||||||||||||
Net investment income | 203 | 200 | 207 | 204 | 209 | 604 | 620 | |||||||||||||||||||||||||||||||
Other revenues | 2 | 2 | 3 | 1 | 2 | 7 | 6 | |||||||||||||||||||||||||||||||
Total operating revenues | 2,096 | 2,176 | 2,233 | 2,195 | 2,145 | 6,329 | 6,573 | |||||||||||||||||||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||||||||||||||||
Policyholder benefits and dividends | 1,732 | 1,821 | 1,865 | 1,793 | 1,781 | 5,296 | 5,439 | |||||||||||||||||||||||||||||||
Interest credited to policyholder account balances | 46 | 47 | 44 | 43 | 44 | 139 | 131 | |||||||||||||||||||||||||||||||
Interest credited to bank deposits | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Capitalization of DAC | (3 | ) | (4 | ) | (4 | ) | (4 | ) | (3 | ) | (12 | ) | (11 | ) | ||||||||||||||||||||||||
Amortization of DAC and VOBA | 6 | 4 | 5 | 4 | 4 | 21 | 13 | |||||||||||||||||||||||||||||||
Interest expense | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Other expenses | 151 | 153 | 141 | 145 | 143 | 457 | 429 | |||||||||||||||||||||||||||||||
Total operating expenses | 1,932 | 2,021 | 2,051 | 1,981 | 1,969 | 5,901 | 6,001 | |||||||||||||||||||||||||||||||
Operating earnings before provision for income tax | 164 | 155 | 182 | 214 | 176 | 428 | 572 | |||||||||||||||||||||||||||||||
Provision for income tax expense (benefit) | 56 | 52 | 64 | 75 | 61 | 146 | 200 | |||||||||||||||||||||||||||||||
Operating earnings | 108 | 103 | 118 | 139 | 115 | 282 | 372 | |||||||||||||||||||||||||||||||
Preferred stock dividends | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS | $ | 108 | $ | 103 | $ | 118 | $ | 139 | $ | 115 | $ | 282 | $ | 372 | ||||||||||||||||||||||||
Net Income Reconciliation | ||||||||||||||||||||||||||||||||||||||
Operating earnings | $ | 108 | $ | 103 | $ | 118 | $ | 139 | $ | 115 | $ | 282 | $ | 372 | ||||||||||||||||||||||||
Adjustments from operating earnings to income (loss) from continuing operations, net of income tax: | ||||||||||||||||||||||||||||||||||||||
Net investment gains (losses) | (39 | ) | (5 | ) | 2 | (6 | ) | 15 | (217 | ) | 11 | |||||||||||||||||||||||||||
Net derivatives gains (losses) | 6 | 1 | 23 | 58 | (1 | ) | (37 | ) | 80 | |||||||||||||||||||||||||||||
Universal life and investment-type product policy fees — amortization of unearned revenue related to net investment gains (losses) and net derivatives gains (losses) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Net investment income: | ||||||||||||||||||||||||||||||||||||||
Scheduled periodic settlement payments on derivatives not qualifying for hedge accounting | (6 | ) | (6 | ) | (18 | ) | (18 | ) | (17 | ) | (32 | ) | (53 | ) | ||||||||||||||||||||||||
Equity method operating joint ventures | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Real estate discontinued operations | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Net investment income related to certain consolidated securitization entities | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Policyholder benefits and policyholder dividends: | ||||||||||||||||||||||||||||||||||||||
Changes in policyholder dividend obligations related to net investment gains (losses) and net derivatives gains (losses) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Changes in asset value fluctuations related to experience-rated contractholder liabilities and certain inflation-indexed liabilities | 5 | (4 | ) | — | — | — | 8 | — | ||||||||||||||||||||||||||||||
Interest credited to policyholder account balances — scheduled periodic settlement payments on derivatives not qualifying for hedge accounting | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Amortization of DAC and VOBA — related to net investment gains (losses) and net derivatives gains (losses) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Interest expense — related to certain consolidated securitization entities | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Other expenses: | ||||||||||||||||||||||||||||||||||||||
Noncontrolling interest | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Business combination costs | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Provision for income tax (expense) benefit | 12 | 5 | (2 | ) | (12 | ) | 1 | 97 | (13 | ) | ||||||||||||||||||||||||||||
Income (loss) from continuing operations, net of income tax | 86 | 94 | 123 | 161 | 113 | 101 | 397 | |||||||||||||||||||||||||||||||
Income (loss) from discontinued operations, net of income tax | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Net income (loss) | 86 | 94 | 123 | 161 | 113 | 101 | 397 | |||||||||||||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interest | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Net income (loss) attributable to MetLife, Inc. | 86 | 94 | 123 | 161 | 113 | 101 | 397 | |||||||||||||||||||||||||||||||
Less: Preferred stock dividends | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Net income (loss) available to MetLife, Inc.’s common shareholders | $ | 86 | $ | 94 | $ | 123 | $ | 161 | $ | 113 | $ | 101 | $ | 397 | ||||||||||||||||||||||||
Premiums, Fees and Other Revenues | $ | 1,893 | $ | 1,976 | $ | 2,026 | $ | 1,991 | $ | 1,936 | $ | 5,725 | $ | 5,953 | ||||||||||||||||||||||||
Group Life Mortality Ratio | 89.2 | % | 89.7 | % | 89.5 | % | 86.6 | % | 89.0 | % | ||||||||||||||||||||||||||||
13
![(METLIFE LOGO)](https://capedge.com/proxy/8-K/0000950123-10-097569/y87340y8734003.gif)
U.S. BUSINESS
INSURANCE PRODUCTS — INDIVIDUAL LIFE
INSURANCE PRODUCTS — INDIVIDUAL LIFE
STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS — PRODUCT LEVEL
For the Three Months Ended | For the Year-to-Date Period Ended | |||||||||||||||||||||||||||||||||||||
September 30, | December 31, | March 31, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||||||||||||||||||
Unaudited (In millions, except ratios) | 2009 | 2009 | 2010 | 2010 | 2010 | 2009 | 2010 | |||||||||||||||||||||||||||||||
OPERATING REVENUES | ||||||||||||||||||||||||||||||||||||||
Premiums | $ | 1,035 | $ | 1,154 | $ | 967 | $ | 1,004 | $ | 988 | $ | 3,046 | $ | 2,959 | ||||||||||||||||||||||||
Universal life and investment-type product policy fees | 378 | 477 | 397 | 397 | 380 | 1,171 | 1,174 | |||||||||||||||||||||||||||||||
Net investment income | 1,036 | 1,062 | 1,086 | 1,066 | 1,086 | 3,015 | 3,238 | |||||||||||||||||||||||||||||||
Other revenues | 114 | 102 | 94 | 100 | 94 | 272 | 288 | |||||||||||||||||||||||||||||||
Total operating revenues | 2,563 | 2,795 | 2,544 | 2,567 | 2,548 | 7,504 | 7,659 | |||||||||||||||||||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||||||||||||||||
Policyholder benefits and dividends | 1,700 | 1,720 | 1,627 | 1,636 | 1,608 | 5,012 | 4,871 | |||||||||||||||||||||||||||||||
Interest credited to policyholder account balances | 188 | 195 | 185 | 188 | 195 | 547 | 568 | |||||||||||||||||||||||||||||||
Interest credited to bank deposits | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Capitalization of DAC | (169 | ) | (188 | ) | (159 | ) | (171 | ) | (162 | ) | (482 | ) | (492 | ) | ||||||||||||||||||||||||
Amortization of DAC and VOBA | 102 | 173 | 198 | 169 | 186 | 384 | 553 | |||||||||||||||||||||||||||||||
Interest expense | — | 3 | — | — | — | 3 | — | |||||||||||||||||||||||||||||||
Other expenses | 546 | 559 | 516 | 528 | 507 | 1,615 | 1,551 | |||||||||||||||||||||||||||||||
Total operating expenses | 2,367 | 2,462 | 2,367 | 2,350 | 2,334 | 7,079 | 7,051 | |||||||||||||||||||||||||||||||
Operating earnings before provision for income tax | 196 | 333 | 177 | 217 | 214 | 425 | 608 | |||||||||||||||||||||||||||||||
Provision for income tax expense (benefit) | 63 | 110 | 62 | 76 | 75 | 139 | 213 | |||||||||||||||||||||||||||||||
Operating earnings | 133 | 223 | 115 | 141 | 139 | 286 | 395 | |||||||||||||||||||||||||||||||
Preferred stock dividends | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS | $ | 133 | $ | 223 | $ | 115 | $ | 141 | $ | 139 | $ | 286 | $ | 395 | ||||||||||||||||||||||||
Net Income Reconciliation | ||||||||||||||||||||||||||||||||||||||
Operating earnings | $ | 133 | $ | 223 | $ | 115 | $ | 141 | $ | 139 | $ | 286 | $ | 395 | ||||||||||||||||||||||||
Adjustments from operating earnings to income (loss) from continuing operations, net of income tax: | ||||||||||||||||||||||||||||||||||||||
Net investment gains (losses) | (78 | ) | 56 | 17 | — | 21 | (184 | ) | 38 | |||||||||||||||||||||||||||||
Net derivatives gains (losses) | (82 | ) | (72 | ) | (11 | ) | 176 | (28 | ) | (406 | ) | 137 | ||||||||||||||||||||||||||
Universal life and investment-type product policy fees — amortization of unearned revenue related to net investment gains (losses) and net derivatives gains (losses) | (4 | ) | (6 | ) | (1 | ) | 7 | — | (21 | ) | 6 | |||||||||||||||||||||||||||
Net investment income: | ||||||||||||||||||||||||||||||||||||||
Scheduled periodic settlement payments on derivatives not qualifying for hedge accounting | — | (2 | ) | (10 | ) | (11 | ) | (10 | ) | (4 | ) | (31 | ) | |||||||||||||||||||||||||
Equity method operating joint ventures | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Real estate discontinued operations | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Net investment income related to certain consolidated securitization entities | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Policyholder benefits and policyholder dividends: | ||||||||||||||||||||||||||||||||||||||
Changes in policyholder dividend obligations related to net investment gains (losses) and net derivatives gains (losses) | — | — | — | — | — | (11 | ) | — | ||||||||||||||||||||||||||||||
Changes in asset value fluctuations related to experience-rated contractholder liabilities and certain inflation-indexed liabilities | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Interest credited to policyholder account balances — scheduled periodic settlement payments on derivatives not qualifying for hedge accounting | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Amortization of DAC and VOBA — related to net investment gains (losses) and net derivatives gains (losses) | (47 | ) | (14 | ) | (10 | ) | (40 | ) | (28 | ) | (14 | ) | (78 | ) | ||||||||||||||||||||||||
Interest expense — related to certain consolidated securitization entities | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Other expenses: | ||||||||||||||||||||||||||||||||||||||
Noncontrolling interest | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Business combination costs | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Provision for income tax (expense) benefit | 75 | 13 | 5 | (47 | ) | 16 | 224 | (26 | ) | |||||||||||||||||||||||||||||
Income (loss) from continuing operations, net of income tax | (3 | ) | 198 | 105 | 226 | 110 | (130 | ) | 441 | |||||||||||||||||||||||||||||
Income (loss) from discontinued operations, net of income tax | — | 3 | — | — | — | 19 | — | |||||||||||||||||||||||||||||||
Net income (loss) | (3 | ) | 201 | 105 | 226 | 110 | (111 | ) | 441 | |||||||||||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interest | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Net income (loss) attributable to MetLife, Inc. | (3 | ) | 201 | 105 | 226 | 110 | (111 | ) | 441 | |||||||||||||||||||||||||||||
Less: Preferred stock dividends | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Net income (loss) available to MetLife, Inc.’s common shareholders | $ | (3 | ) | $ | 201 | $ | 105 | $ | 226 | $ | 110 | $ | (111 | ) | $ | 441 | ||||||||||||||||||||||
Premiums, Fees and Other Revenues | $ | 1,527 | $ | 1,733 | $ | 1,458 | $ | 1,501 | $ | 1,462 | $ | 4,489 | $ | 4,421 | ||||||||||||||||||||||||
Mortality as a Percentage of Expected | 91.2 | % | 81.1 | % | 87.6 | % | 80.4 | % | 86.7 | % | ||||||||||||||||||||||||||||
Lapse Ratio | ||||||||||||||||||||||||||||||||||||||
Traditional Life | 6.9 | % | 6.8 | % | 6.7 | % | 6.4 | % | 6.2 | % | ||||||||||||||||||||||||||||
Variable & Universal Life | 6.8 | % | 6.5 | % | 6.1 | % | 5.9 | % | 5.9 | % | ||||||||||||||||||||||||||||
14
![(METLIFE LOGO)](https://capedge.com/proxy/8-K/0000950123-10-097569/y87340y8734003.gif)
U.S. BUSINESS
INSURANCE PRODUCTS — NON-MEDICAL HEALTH
STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS — PRODUCT LEVEL
INSURANCE PRODUCTS — NON-MEDICAL HEALTH
STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS — PRODUCT LEVEL
For the Three Months Ended | For the Year-to-Date Period Ended | |||||||||||||||||||||||||||||||||||||
September 30, | December 31, | March 31, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||||||||||||||||||
Unaudited (In millions, except ratios) | 2009 | 2009 | 2010 | 2010 | 2010 | 2009 | 2010 | |||||||||||||||||||||||||||||||
OPERATING REVENUES | ||||||||||||||||||||||||||||||||||||||
Premiums | $ | 1,448 | $ | 1,527 | $ | 1,485 | $ | 1,472 | $ | 1,471 | $ | 4,374 | $ | 4,428 | ||||||||||||||||||||||||
Universal life and investment-type product policy fees | 3 | — | — | — | — | 8 | — | |||||||||||||||||||||||||||||||
Net investment income | 198 | 221 | 211 | 225 | 220 | 512 | 656 | |||||||||||||||||||||||||||||||
Other revenues | 105 | 96 | 92 | 87 | 89 | 300 | 268 | |||||||||||||||||||||||||||||||
Total operating revenues | 1,754 | 1,844 | 1,788 | 1,784 | 1,780 | 5,194 | 5,352 | |||||||||||||||||||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||||||||||||||||
Policyholder benefits and dividends | 1,313 | 1,377 | 1,355 | 1,292 | 1,296 | 3,885 | 3,943 | |||||||||||||||||||||||||||||||
Interest credited to policyholder account balances | 6 | 6 | 5 | 6 | 4 | 18 | 15 | |||||||||||||||||||||||||||||||
Interest credited to bank deposits | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Capitalization of DAC | (46 | ) | (44 | ) | (43 | ) | (42 | ) | (39 | ) | (143 | ) | (124 | ) | ||||||||||||||||||||||||
Amortization of DAC and VOBA | 37 | 32 | 36 | 33 | 31 | 111 | 100 | |||||||||||||||||||||||||||||||
Interest expense | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Other expenses | 351 | 362 | 335 | 358 | 348 | 1,060 | 1,041 | |||||||||||||||||||||||||||||||
Total operating expenses | 1,661 | 1,733 | 1,688 | 1,647 | 1,640 | 4,931 | 4,975 | |||||||||||||||||||||||||||||||
Operating earnings before provision for income tax | 93 | 111 | 100 | 137 | 140 | 263 | 377 | |||||||||||||||||||||||||||||||
Provision for income tax expense (benefit) | 32 | 37 | 35 | 48 | 49 | 89 | 132 | |||||||||||||||||||||||||||||||
Operating earnings | 61 | 74 | 65 | 89 | 91 | 174 | 245 | |||||||||||||||||||||||||||||||
Preferred stock dividends | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS | $ | 61 | $ | 74 | $ | 65 | $ | 89 | $ | 91 | $ | 174 | $ | 245 | ||||||||||||||||||||||||
Net Income Reconciliation | ||||||||||||||||||||||||||||||||||||||
Operating earnings | $ | 61 | $ | 74 | $ | 65 | $ | 89 | $ | 91 | $ | 174 | $ | 245 | ||||||||||||||||||||||||
Adjustments from operating earnings to income (loss) from continuing operations, net of income tax: | ||||||||||||||||||||||||||||||||||||||
Net investment gains (losses) | (20 | ) | (3 | ) | (6 | ) | 2 | 33 | (119 | ) | 29 | |||||||||||||||||||||||||||
Net derivatives gains (losses) | 74 | (182 | ) | 8 | 371 | 115 | (1,090 | ) | 494 | |||||||||||||||||||||||||||||
Universal life and investment-type product policy fees — amortization of unearned revenue related to net investment gains (losses) and net derivatives gains (losses) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Net investment income: | ||||||||||||||||||||||||||||||||||||||
Scheduled periodic settlement payments on derivatives not qualifying for hedge accounting | (8 | ) | (9 | ) | (7 | ) | (6 | ) | (9 | ) | (21 | ) | (22 | ) | ||||||||||||||||||||||||
Equity method operating joint ventures | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Real estate discontinued operations | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Net investment income related to certain consolidated securitization entities | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Policyholder benefits and policyholder dividends: | ||||||||||||||||||||||||||||||||||||||
Changes in policyholder dividend obligations related to net investment gains (losses) and net derivatives gains (losses) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Changes in asset value fluctuations related to experience-rated contractholder liabilities and certain inflation-indexed liabilities | (4 | ) | — | (1 | ) | 1 | (5 | ) | (3 | ) | (5 | ) | ||||||||||||||||||||||||||
Interest credited to policyholder account balances — scheduled periodic settlement payments on derivatives not qualifying for hedge accounting | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Amortization of DAC and VOBA — related to net investment gains (losses) and net derivatives gains (losses) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Interest expense — related to certain consolidated securitization entities | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Other expenses: | ||||||||||||||||||||||||||||||||||||||
Noncontrolling interest | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Business combination costs | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Provision for income tax (expense) benefit | (15 | ) | 67 | 2 | (129 | ) | (47 | ) | 431 | (174 | ) | |||||||||||||||||||||||||||
Income (loss) from continuing operations, net of income tax | 88 | (53 | ) | 61 | 328 | 178 | (628 | ) | 567 | |||||||||||||||||||||||||||||
Income (loss) from discontinued operations, net of income tax | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Net income (loss) | 88 | (53 | ) | 61 | 328 | 178 | (628 | ) | 567 | |||||||||||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interest | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Net income (loss) attributable to MetLife, Inc. | 88 | (53 | ) | 61 | 328 | 178 | (628 | ) | 567 | |||||||||||||||||||||||||||||
Less: Preferred stock dividends | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Net income (loss) available to MetLife, Inc.’s common shareholders | $ | 88 | $ | (53 | ) | $ | 61 | $ | 328 | $ | 178 | $ | (628 | ) | $ | 567 | ||||||||||||||||||||||
Premiums, Fees and Other Revenues | $ | 1,556 | $ | 1,623 | $ | 1,577 | $ | 1,559 | $ | 1,560 | $ | 4,682 | $ | 4,696 | ||||||||||||||||||||||||
Non-Medical Health Benefit Ratio | 90.7 | % | 90.2 | % | 91.2 | % | 87.8 | % | 88.0 | % | ||||||||||||||||||||||||||||
15
![(METLIFE LOGO)](https://capedge.com/proxy/8-K/0000950123-10-097569/y87340y8734003.gif)
U.S. BUSINESS
INSURANCE PRODUCTS
FUTURE POLICY BENEFITS AND POLICYHOLDER ACCOUNT BALANCES; AND SEPARATE ACCOUNT LIABILITIES
INSURANCE PRODUCTS
FUTURE POLICY BENEFITS AND POLICYHOLDER ACCOUNT BALANCES; AND SEPARATE ACCOUNT LIABILITIES
FUTURE POLICY BENEFITS AND POLICYHOLDER ACCOUNT BALANCES
GROUP LIFE | |||||||||||||||||||||||
For the Three Months Ended | |||||||||||||||||||||||
September 30, | December 31, | March 31, | June 30, | September 30, | |||||||||||||||||||
Unaudited (In millions) | 2009 | 2009 | 2010 | 2010 | 2010 | ||||||||||||||||||
Balance, beginning of period | $ | 11,842 | $ | 11,911 | $ | 11,966 | $ | 12,060 | $ | 12,017 | |||||||||||||
Premiums and deposits | 3,600 | 3,486 | 3,598 | 3,515 | 3,509 | ||||||||||||||||||
Surrenders and withdrawals | (1,467 | ) | (1,363 | ) | (1,361 | ) | (1,442 | ) | (1,495 | ) | |||||||||||||
Benefit payments | (1,969 | ) | (1,914 | ) | (1,970 | ) | (1,923 | ) | (1,921 | ) | |||||||||||||
Net Flows | 164 | 209 | 267 | 150 | 93 | ||||||||||||||||||
Net transfers from (to) separate account | 2 | 1 | 1 | 1 | 1 | ||||||||||||||||||
Interest | 76 | 76 | 72 | 75 | 72 | ||||||||||||||||||
Policy charges | (132 | ) | (135 | ) | (128 | ) | (126 | ) | (125 | ) | |||||||||||||
Other | (41 | ) | (96 | ) | (118 | ) | (143 | ) | (53 | ) | |||||||||||||
Balance, end of period | $ | 11,911 | $ | 11,966 | $ | 12,060 | $ | 12,017 | $ | 12,005 | |||||||||||||
INDIVIDUAL LIFE | |||||||||||||||||||||||
For the Three Months Ended | |||||||||||||||||||||||
September 30, | December 31, | March 31, | June 30, | September 30, | |||||||||||||||||||
Unaudited (In millions) | 2009 | 2009 | 2010 | 2010 | 2010 | ||||||||||||||||||
Balance, beginning of period | $ | 72,920 | $ | 73,307 | $ | 73,934 | $ | 74,398 | $ | 74,855 | |||||||||||||
Premiums and deposits | 2,049 | 2,167 | 2,070 | 2,002 | 2,059 | ||||||||||||||||||
Surrenders and withdrawals | (978 | ) | (936 | ) | (908 | ) | (919 | ) | (937 | ) | |||||||||||||
Benefit payments | (576 | ) | (577 | ) | (670 | ) | (589 | ) | (616 | ) | |||||||||||||
Net Flows | 495 | 654 | 492 | 494 | 506 | ||||||||||||||||||
Net transfers from (to) separate account | (14 | ) | 39 | 29 | 29 | 37 | |||||||||||||||||
Interest | 755 | 763 | 749 | 748 | 756 | ||||||||||||||||||
Policy charges | (389 | ) | (397 | ) | (401 | ) | (401 | ) | (408 | ) | |||||||||||||
Other | (460 | ) | (432 | ) | (405 | ) | (413 | ) | (435 | ) | |||||||||||||
Balance, end of period | $ | 73,307 | $ | 73,934 | $ | 74,398 | $ | 74,855 | $ | 75,311 | |||||||||||||
NON-MEDICAL HEALTH | |||||||||||||||||||||||
For the Three Months Ended | |||||||||||||||||||||||
September 30, | December 31, | March 31, | June 30, | September 30, | |||||||||||||||||||
Unaudited (In millions) | 2009 | 2009 | 2010 | 2010 | 2010 | ||||||||||||||||||
Balance, beginning of period | $ | 12,579 | $ | 12,868 | $ | 13,239 | $ | 13,484 | $ | 13,689 | |||||||||||||
Premiums and deposits | 1,585 | 1,567 | 1,518 | 1,502 | 1,747 | ||||||||||||||||||
Surrenders and withdrawals | (106 | ) | (5 | ) | (5 | ) | (5 | ) | (255 | ) | |||||||||||||
Benefit payments | (1,074 | ) | (1,084 | ) | (1,137 | ) | (1,119 | ) | (1,083 | ) | |||||||||||||
Net Flows | 405 | 478 | 376 | 378 | 409 | ||||||||||||||||||
Net transfers from (to) separate account | — | — | — | — | — | ||||||||||||||||||
Interest | 140 | 147 | 148 | 152 | 150 | ||||||||||||||||||
Policy charges | — | — | — | — | — | ||||||||||||||||||
Other | (256 | ) | (254 | ) | (279 | ) | (325 | ) | (347 | ) | |||||||||||||
Balance, end of period | $ | 12,868 | $ | 13,239 | $ | 13,484 | $ | 13,689 | $ | 13,901 | |||||||||||||
SEPARATE ACCOUNT LIABILITIES | |||||||||||||||||||||||
GROUP LIFE | |||||||||||||||||||||||
For the Three Months Ended | |||||||||||||||||||||||
September 30, | December 31, | March 31, | June 30, | September 30, | |||||||||||||||||||
Unaudited (In millions) | 2009 | 2009 | 2010 | 2010 | 2010 | ||||||||||||||||||
Balance, beginning of period | $ | 366 | $ | 416 | $ | 433 | $ | 450 | $ | 411 | |||||||||||||
Premiums and deposits | 38 | 39 | 40 | 44 | 47 | ||||||||||||||||||
Surrenders and withdrawals | (10 | ) | (9 | ) | (9 | ) | (8 | ) | (8 | ) | |||||||||||||
Benefit payments | — | — | (1 | ) | — | — | |||||||||||||||||
Net Flows | 28 | 30 | 30 | 36 | 39 | ||||||||||||||||||
Investment Performance | 53 | 18 | 19 | (40 | ) | 42 | |||||||||||||||||
Net transfers from (to) general account | (2 | ) | (1 | ) | (1 | ) | (2 | ) | (1 | ) | |||||||||||||
Policy charges | (29 | ) | (30 | ) | (31 | ) | (33 | ) | (35 | ) | |||||||||||||
Other | — | — | — | — | — | ||||||||||||||||||
Balance, end of period | $ | 416 | $ | 433 | $ | 450 | $ | 411 | $ | 456 | |||||||||||||
INDIVIDUAL LIFE | |||||||||||||||||||||||
For the Three Months Ended | |||||||||||||||||||||||
September 30, | December 31, | March 31, | June 30, | September 30, | |||||||||||||||||||
Unaudited (In millions) | 2009 | 2009 | 2010 | 2010 | 2010 | ||||||||||||||||||
Balance, beginning of period | $ | 7,313 | $ | 8,232 | $ | 8,405 | $ | 8,682 | $ | 7,915 | |||||||||||||
Premiums and deposits | 210 | 215 | 208 | 197 | 193 | ||||||||||||||||||
Surrenders and withdrawals | (103 | ) | (140 | ) | (124 | ) | (141 | ) | (116 | ) | |||||||||||||
Benefit payments | (10 | ) | (7 | ) | (8 | ) | (9 | ) | (10 | ) | |||||||||||||
Net Flows | 97 | 68 | 76 | 47 | 67 | ||||||||||||||||||
Investment Performance | 953 | 297 | 374 | (643 | ) | 764 | |||||||||||||||||
Net transfers from (to) general account | 14 | (39 | ) | (29 | ) | (29 | ) | (37 | ) | ||||||||||||||
Policy charges | (147 | ) | (147 | ) | (143 | ) | (141 | ) | (140 | ) | |||||||||||||
Other | 2 | (6 | ) | (1 | ) | (1 | ) | 7 | |||||||||||||||
Balance, end of period | $ | 8,232 | $ | 8,405 | $ | 8,682 | $ | 7,915 | $ | 8,576 | |||||||||||||
NON-MEDICAL HEALTH | |||||||||||||||||||||||
For the Three Months Ended | |||||||||||||||||||||||
September 30, | December 31, | March 31, | June 30, | September 30, | |||||||||||||||||||
Unaudited (In millions) | 2009 | 2009 | 2010 | 2010 | 2010 | ||||||||||||||||||
Balance, beginning of period | $ | 832 | $ | 911 | $ | — | $ | — | $ | — | |||||||||||||
Premiums and deposits | 38 | — | — | — | — | ||||||||||||||||||
Surrenders and withdrawals | (4 | ) | (910 | ) | — | — | — | �� | |||||||||||||||
Benefit payments | — | — | — | — | — | ||||||||||||||||||
Net Flows | 34 | (910 | ) | — | — | — | |||||||||||||||||
Investment Performance | 30 | (1 | ) | — | — | — | |||||||||||||||||
Net transfers from (to) general account | — | — | — | — | — | ||||||||||||||||||
Policy charges | (8 | ) | — | — | — | — | |||||||||||||||||
Other | 23 | — | — | — | — | ||||||||||||||||||
Balance, end of period | $ | 911 | $ | — | $ | — | $ | — | $ | — | |||||||||||||
16
![(METLIFE LOGO)](https://capedge.com/proxy/8-K/0000950123-10-097569/y87340y8734003.gif)
U.S. BUSINESS
INSURANCE PRODUCTS
INSURANCE PRODUCTS
OTHER EXPENSES BY MAJOR CATEGORY AND INDIVIDUAL LIFE SALES BY PRODUCT
OTHER EXPENSES | |||||||||||||||||||||||
For the Three Months Ended | |||||||||||||||||||||||
September 30, | December 31, | March 31, | June 30, | September 30, | |||||||||||||||||||
Unaudited (In millions) | 2009 | 2009 | 2010 | 2010 | 2010 | ||||||||||||||||||
Direct and allocated expenses | $ | 568 | $ | 579 | $ | 554 | $ | 570 | $ | 555 | |||||||||||||
Pension and post-retirement benefit costs | 70 | 69 | 51 | 52 | 52 | ||||||||||||||||||
Premium taxes, other taxes, and licenses & fees | 82 | 75 | 69 | 78 | 76 | ||||||||||||||||||
Total fixed operating expenses | $ | 720 | $ | 723 | $ | 674 | $ | 700 | $ | 683 | |||||||||||||
Commissions and other variable expenses | 328 | 351 | 318 | 331 | 315 | ||||||||||||||||||
Total other expenses | $ | 1,048 | $ | 1,074 | $ | 992 | $ | 1,031 | $ | 998 | |||||||||||||
INDIVIDUAL LIFE SALES BY PRODUCT (1) | |||||||||||||||||||||||
For the Three Months Ended | |||||||||||||||||||||||
September 30, | December 31, | March 31, | June 30, | September 30, | |||||||||||||||||||
Unaudited (In millions) | 2009 | 2009 | 2010 | 2010 | 2010 | ||||||||||||||||||
Individual Life Sales | |||||||||||||||||||||||
Term Life | $ | 37 | $ | 37 | $ | 33 | $ | 35 | $ | 32 | |||||||||||||
Whole Life | 30 | 34 | 29 | 29 | 28 | ||||||||||||||||||
Variable Life | 10 | 10 | 9 | 10 | 9 | ||||||||||||||||||
Universal Life | 50 | 63 | 41 | 44 | 48 | ||||||||||||||||||
Total Individual Life sales (2) | $ | 127 | $ | 144 | $ | 112 | $ | 118 | $ | 117 | |||||||||||||
(1) | Statistical sales information is calculated by MetLife using the LIMRA International, Inc. definition of sales for core direct sales, excluding company sponsored internal exchanges, corporate-owned life insurance, bank-owned life insurance, and private placement variable universal life insurance. | |
(2) | Of the $117 million of Individual Life sales during the three months ended September 30, 2010, approximately 43% were distributed through MetLife agents, 14% through New England Financial agents, 41% through MetLife’s third party channels and 2% through other channels. |
17
![(METLIFE LOGO)](https://capedge.com/proxy/8-K/0000950123-10-097569/y87340y8734003.gif)
U.S. BUSINESS
INSURANCE PRODUCTS
INSURANCE PRODUCTS
SPREAD BY PRODUCT
GROUP LIFE
For the Three Months Ended | |||||||||||||||||||||||
September 30, | December 31, | March 31, | June 30, | September 30, | |||||||||||||||||||
Unaudited | 2009 | 2009 | 2010 | 2010 | 2010 | ||||||||||||||||||
Investment income yield | 5.20 | % | 5.02 | % | 5.42 | % | 5.32 | % | 5.54 | % | |||||||||||||
Average crediting rate | 2.20 | % | 2.18 | % | 2.15 | % | 2.13 | % | 2.08 | % | |||||||||||||
Annualized general account spread | 3.00 | % | 2.84 | % | 3.27 | % | 3.19 | % | 3.46 | % | |||||||||||||
VARIABLE & UNIVERSAL LIFE
For the Three Months Ended | |||||||||||||||||||||||
September 30, | December 31, | March 31, | June 30, | September 30, | |||||||||||||||||||
Unaudited | 2009 | 2009 | 2010 | 2010 | 2010 | ||||||||||||||||||
Investment income yield | 6.07 | % | 6.27 | % | 6.28 | % | 6.24 | % | 6.30 | % | |||||||||||||
Average crediting rate | 4.58 | % | 4.69 | % | 4.47 | % | 4.43 | % | 4.48 | % | |||||||||||||
Annualized general account spread (1) | 1.49 | % | 1.58 | % | 1.81 | % | 1.81 | % | 1.82 | % | |||||||||||||
NON-MEDICAL HEALTH
For the Three Months Ended | |||||||||||||||||||||||
September 30, | December 31, | March 31, | June 30, | September 30, | |||||||||||||||||||
Unaudited | 2009 | 2009 | 2010 | 2010 | 2010 | ||||||||||||||||||
Investment income yield | 5.57 | % | 6.14 | % | 5.95 | % | 6.23 | % | 5.96 | % | |||||||||||||
Average crediting rate | 4.69 | % | 4.81 | % | 4.80 | % | 4.80 | % | 4.78 | % | |||||||||||||
Annualized general account spread | 0.88 | % | 1.33 | % | 1.15 | % | 1.43 | % | 1.18 | % | |||||||||||||
(1) | This represents the general account spread for Variable and Universal Life, a component of Individual Life. |
18
![(METLIFE LOGO)](https://capedge.com/proxy/8-K/0000950123-10-097569/y87340y8734003.gif)
U.S. BUSINESS
RETIREMENT PRODUCTS
STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
For the Three Months Ended | For the Year-to-Date Period Ended | |||||||||||||||||||||||||||||||||||||
September 30, | December 31, | March 31,2010 | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||||||||||||||||||
Unaudited (In millions, except ratios) | 2009 | 2009 | 2010 | 2010 | 2010 | 2009 | 2010 | |||||||||||||||||||||||||||||||
OPERATING REVENUES | ||||||||||||||||||||||||||||||||||||||
Premiums | $ | 140 | $ | 192 | $ | 123 | $ | 151 | $ | 128 | $ | 431 | $ | 402 | ||||||||||||||||||||||||
Universal life and investment-type product policy fees | 466 | 493 | 513 | 561 | 554 | 1,219 | 1,628 | |||||||||||||||||||||||||||||||
Net investment income | 749 | 763 | 773 | 763 | 777 | 2,096 | 2,313 | |||||||||||||||||||||||||||||||
Other revenues | 61 | 47 | 48 | 54 | 56 | 125 | 158 | |||||||||||||||||||||||||||||||
Total operating revenues | 1,416 | 1,495 | 1,457 | 1,529 | 1,515 | 3,871 | 4,501 | |||||||||||||||||||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||||||||||||||||
Policyholder benefits and dividends | 424 | 296 | 354 | 49 | 456 | 1,102 | 859 | |||||||||||||||||||||||||||||||
Interest credited to policyholder account balances | 431 | 426 | 406 | 405 | 393 | 1,261 | 1,204 | |||||||||||||||||||||||||||||||
Interest credited to bank deposits | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Capitalization of DAC | (223 | ) | (230 | ) | (234 | ) | (262 | ) | (270 | ) | (837 | ) | (766 | ) | ||||||||||||||||||||||||
Amortization of DAC and VOBA | 42 | 100 | 133 | 372 | 98 | 324 | 603 | |||||||||||||||||||||||||||||||
Interest expense | — | (1 | ) | — | — | 1 | 1 | 1 | ||||||||||||||||||||||||||||||
Other expenses | 580 | 585 | 554 | 599 | 607 | 1,820 | 1,760 | |||||||||||||||||||||||||||||||
Total operating expenses | 1,254 | 1,176 | 1,213 | 1,163 | 1,285 | 3,671 | 3,661 | |||||||||||||||||||||||||||||||
Operating earnings before provision for income tax | 162 | 319 | 244 | 366 | 230 | 200 | 840 | |||||||||||||||||||||||||||||||
Provision for income tax expense (benefit) | 57 | 112 | 85 | 128 | 81 | 70 | 294 | |||||||||||||||||||||||||||||||
Operating earnings | 105 | 207 | 159 | 238 | 149 | 130 | 546 | |||||||||||||||||||||||||||||||
Preferred stock dividends | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS | $ | 105 | $ | 207 | $ | 159 | $ | 238 | $ | 149 | $ | 130 | $ | 546 | ||||||||||||||||||||||||
Net Income Reconciliation | ||||||||||||||||||||||||||||||||||||||
Operating earnings | $ | 105 | $ | 207 | $ | 159 | $ | 238 | $ | 149 | $ | 130 | $ | 546 | ||||||||||||||||||||||||
Adjustments from operating earnings to income (loss) from continuing operations, net of income tax: | ||||||||||||||||||||||||||||||||||||||
Net investment gains (losses) | (71 | ) | (82 | ) | 24 | 13 | 9 | (403 | ) | 46 | ||||||||||||||||||||||||||||
Net derivatives gains (losses) | (391 | ) | (92 | ) | 77 | 374 | 109 | (1,029 | ) | 560 | ||||||||||||||||||||||||||||
Universal life and investment-type product policy fees — amortization of unearned revenue related to net investment gains (losses) and net derivatives gains (losses) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Net investment income: | ||||||||||||||||||||||||||||||||||||||
Scheduled periodic settlement payments on derivatives not qualifying for hedge accounting | (49 | ) | (63 | ) | (65 | ) | (66 | ) | (66 | ) | (154 | ) | (197 | ) | ||||||||||||||||||||||||
Equity method operating joint ventures | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Real estate discontinued operations | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Net investment income related to certain consolidated securitization entities | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Policyholder benefits and policyholder dividends: | ||||||||||||||||||||||||||||||||||||||
Changes in policyholder dividend obligations related to net investment gains (losses) and net derivatives gains (losses) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Changes in asset value fluctuations related to experience-rated contractholder liabilities and certain inflation-indexed liabilities | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Interest credited to policyholder account balances — scheduled periodic settlement payments on derivatives not qualifying for hedge accounting | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Amortization of DAC and VOBA — related to net investment gains (losses) and net derivatives gains (losses) | 221 | 109 | (4 | ) | (172 | ) | (9 | ) | 630 | (185 | ) | |||||||||||||||||||||||||||
Interest expense — related to certain consolidated securitization entities | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Other expenses: | ||||||||||||||||||||||||||||||||||||||
Noncontrolling interest | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Business combination costs | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Provision for income tax (expense) benefit | 103 | 45 | (11 | ) | (54 | ) | (15 | ) | 335 | (80 | ) | |||||||||||||||||||||||||||
Income (loss) from continuing operations, net of income tax | (82 | ) | 124 | 180 | 333 | 177 | (491 | ) | 690 | |||||||||||||||||||||||||||||
Income (loss) from discontinued operations, net of income tax | — | — | — | — | — | 5 | — | |||||||||||||||||||||||||||||||
Net income (loss) | (82 | ) | 124 | 180 | 333 | 177 | (486 | ) | 690 | |||||||||||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interest | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Net income (loss) attributable to MetLife, Inc. | (82 | ) | 124 | 180 | 333 | 177 | (486 | ) | 690 | |||||||||||||||||||||||||||||
Less: Preferred stock dividends | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Net income (loss) available to MetLife, Inc.’s common shareholders | $ | (82 | ) | $ | 124 | $ | 180 | $ | 333 | $ | 177 | $ | (486 | ) | $ | 690 | ||||||||||||||||||||||
Premiums, Fees and Other Revenues | $ | 667 | $ | 732 | $ | 684 | $ | 766 | $ | 738 | $ | 1,775 | $ | 2,188 | ||||||||||||||||||||||||
Lapse Ratio | ||||||||||||||||||||||||||||||||||||||
Fixed Annuities | 8.6 | % | 7.5 | % | 6.8 | % | 6.7 | % | 6.3 | % | ||||||||||||||||||||||||||||
Variable Annuities | 7.9 | % | 7.1 | % | 6.8 | % | 6.8 | % | 7.3 | % | ||||||||||||||||||||||||||||
19
![(METLIFE LOGO)](https://capedge.com/proxy/8-K/0000950123-10-097569/y87340y8734003.gif)
U.S. BUSINESS
RETIREMENT PRODUCTS
RETIREMENT PRODUCTS
FUTURE POLICY BENEFITS AND POLICYHOLDER ACCOUNT BALANCES; AND SEPARATE ACCOUNT LIABILITIES
FUTURE POLICY BENEFITS AND POLICYHOLDER ACCOUNT BALANCES
For the Three Months Ended | |||||||||||||||||||||||
September 30, | December 31, | March 31, | June 30, | September 30, | |||||||||||||||||||
Unaudited (In millions) | 2009 | 2009 | 2010 | 2010 | 2010 | ||||||||||||||||||
Balance, beginning of period | $ | 51,228 | $ | 51,388 | $ | 50,799 | $ | 50,563 | $ | 52,600 | |||||||||||||
Premiums and deposits (1), (2) | 1,944 | 1,766 | 1,606 | 1,705 | 1,939 | ||||||||||||||||||
Surrenders and withdrawals | (890 | ) | (1,044 | ) | (847 | ) | (834 | ) | (1,159 | ) | |||||||||||||
Benefit payments | (363 | ) | (336 | ) | (374 | ) | (368 | ) | (364 | ) | |||||||||||||
Net Flows | 691 | 386 | 385 | 503 | 416 | ||||||||||||||||||
Net transfers from (to) separate account | (1,107 | ) | (946 | ) | (892 | ) | (689 | ) | (808 | ) | |||||||||||||
Interest | 522 | 518 | 494 | 496 | 481 | ||||||||||||||||||
Policy charges | (10 | ) | (10 | ) | (12 | ) | (14 | ) | (13 | ) | |||||||||||||
Other | 64 | (537 | ) | (211 | ) | 1,741 | (132 | ) | |||||||||||||||
Balance, end of period | $ | 51,388 | $ | 50,799 | $ | 50,563 | $ | 52,600 | $ | 52,544 | |||||||||||||
SEPARATE ACCOUNT LIABILITIES
For the Three Months Ended | |||||||||||||||||||||||
September 30, | December 31, | March 31, | June 30, | September 30, | |||||||||||||||||||
Unaudited (In millions) | 2009 | 2009 | 2010 | 2010 | 2010 | ||||||||||||||||||
Balance, beginning of period | $ | 70,538 | $ | 82,100 | $ | 87,113 | $ | 92,554 | $ | 87,323 | |||||||||||||
Premiums and deposits (1) | 2,279 | 2,633 | 3,004 | 3,348 | 3,312 | ||||||||||||||||||
Surrenders and withdrawals | (1,283 | ) | (1,456 | ) | (1,625 | ) | (1,622 | ) | (1,813 | ) | |||||||||||||
Benefit payments | (140 | ) | (150 | ) | (178 | ) | (193 | ) | (183 | ) | |||||||||||||
Net Flows | 856 | 1,027 | 1,201 | 1,533 | 1,316 | ||||||||||||||||||
Investment Performance | 9,964 | 3,430 | 3,755 | (7,000 | ) | 8,544 | |||||||||||||||||
Net transfers from (to) general account | 1,107 | 946 | 892 | 689 | 808 | ||||||||||||||||||
Policy charges | (366 | ) | (392 | ) | (406 | ) | (454 | ) | (453 | ) | |||||||||||||
Other | 1 | 2 | (1 | ) | 1 | — | |||||||||||||||||
Balance, end of period | $ | 82,100 | $ | 87,113 | $ | 92,554 | $ | 87,323 | $ | 97,538 | |||||||||||||
(1) | Includes company sponsored internal exchanges. | |
(2) | Includes premiums and deposits directed to the General Account investment option of a variable annuity product. |
20
![(METLIFE LOGO)](https://capedge.com/proxy/8-K/0000950123-10-097569/y87340y8734003.gif)
U.S. BUSINESS
RETIREMENT PRODUCTS
RETIREMENT PRODUCTS
OTHER EXPENSES BY MAJOR CATEGORY AND INDIVIDUAL ANNUITY SALES BY PRODUCT
OTHER EXPENSES
For the Three Months Ended | |||||||||||||||||||||||
September 30, | December 31, | March 31, | June 30, | September 30, | |||||||||||||||||||
Unaudited (In millions) | 2009 | 2009 | 2010 | 2010 | 2010 | ||||||||||||||||||
Direct and allocated expenses | $ | 183 | $ | 178 | $ | 173 | $ | 182 | $ | 179 | |||||||||||||
Pension and post-retirement benefit costs | 22 | 22 | 20 | 21 | 21 | ||||||||||||||||||
Premium taxes, other taxes, and licenses & fees | 7 | 10 | 7 | 8 | 8 | ||||||||||||||||||
Total fixed operating expenses | $ | 212 | $ | 210 | $ | 200 | $ | 211 | $ | 208 | |||||||||||||
Commissions and other variable expenses | 368 | 375 | 354 | 388 | 399 | ||||||||||||||||||
Total other expenses | $ | 580 | $ | 585 | $ | 554 | $ | 599 | $ | 607 | |||||||||||||
INDIVIDUAL ANNUITY SALES BY PRODUCT (1)
For the Three Months Ended | |||||||||||||||||||||||
September 30, | December 31, | March 31, | June 30, | September 30, | |||||||||||||||||||
Unaudited (in millions) | 2009 | 2009 | 2010 | 2010 | 2010 | ||||||||||||||||||
Individual Annuity Sales | |||||||||||||||||||||||
Annuities Sales (1) | |||||||||||||||||||||||
Fixed annuity sales | $ | 596 | $ | 499 | $ | 359 | $ | 373 | $ | 373 | |||||||||||||
Variable annuity sales | 3,441 | 3,711 | 4,034 | 4,474 | 4,662 | ||||||||||||||||||
Total annuity sales (2) | $ | 4,037 | $ | 4,210 | $ | 4,393 | $ | 4,847 | $ | 5,035 | |||||||||||||
Separate Account and General Account | |||||||||||||||||||||||
Separate Accounts | |||||||||||||||||||||||
Total variable annuities separate accounts | $ | 2,171 | $ | 2,518 | $ | 2,875 | $ | 3,218 | $ | 3,178 | |||||||||||||
General Accounts | |||||||||||||||||||||||
Fixed annuity | 596 | 499 | 359 | 373 | 373 | ||||||||||||||||||
Variable annuity | 1,270 | 1,193 | 1,159 | 1,256 | 1,484 | ||||||||||||||||||
Total general accounts | 1,866 | 1,692 | 1,518 | 1,629 | 1,857 | ||||||||||||||||||
Total premiums and deposits | $ | 4,037 | $ | 4,210 | $ | 4,393 | $ | 4,847 | $ | 5,035 | |||||||||||||
(1) | Statutory premiums direct and assumed, excluding company sponsored internal exchanges. | |
(2) | Of the $5,035 million of Annuity Sales during the three months ended September 30, 2010, approximately 19% were distributed through MetLife agents, 6% through New England Financial agents, 67% through MetLife’s third party channels, 7% through MetLife Resources representatives and 1% through other distribution channels. |
21
![(METLIFE LOGO)](https://capedge.com/proxy/8-K/0000950123-10-097569/y87340y8734003.gif)
U.S. BUSINESS
RETIREMENT PRODUCTS
RETIREMENT PRODUCTS
SPREAD
DEFERRED ANNUITIES
For the Three Months Ended | |||||||||||||||||||||||
September 30, | December 31, | March 31, | June 30, | September 30, | |||||||||||||||||||
Unaudited | 2009 | 2009 | 2010 | 2010 | 2010 | ||||||||||||||||||
Investment income yield | 5.86 | % | 5.92 | % | 6.19 | % | 6.07 | % | 6.36 | % | |||||||||||||
Average crediting rate | 3.88 | % | 3.85 | % | 3.75 | % | 3.69 | % | 3.68 | % | |||||||||||||
Annualized general account spread | 1.98 | % | 2.07 | % | 2.44 | % | 2.38 | % | 2.68 | % | |||||||||||||
22
![(METLIFE LOGO)](https://capedge.com/proxy/8-K/0000950123-10-097569/y87340y8734003.gif)
U.S. BUSINESS
CORPORATE BENEFIT FUNDING
CORPORATE BENEFIT FUNDING
STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
For the Three Months Ended | For the Year-to-Date Period Ended | |||||||||||||||||||||||||||||||||||||
September 30, | December 31, | March 31, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||||||||||||||||||
Unaudited (In millions) | 2009 | 2009 | 2010 | 2010 | 2010 | 2009 | 2010 | |||||||||||||||||||||||||||||||
OPERATING REVENUES | ||||||||||||||||||||||||||||||||||||||
Premiums | $ | 639 | $ | 903 | $ | 801 | $ | 573 | $ | 501 | $ | 1,658 | $ | 1,875 | ||||||||||||||||||||||||
Universal life and investment-type product policy fees | 34 | 41 | 55 | 56 | 58 | 135 | 169 | |||||||||||||||||||||||||||||||
Net investment income | 1,210 | 1,266 | 1,270 | 1,313 | 1,295 | 3,500 | 3,878 | |||||||||||||||||||||||||||||||
Other revenues | 34 | 67 | 64 | 59 | 59 | 172 | 182 | |||||||||||||||||||||||||||||||
Total operating revenues | 1,917 | 2,277 | 2,190 | 2,001 | 1,913 | 5,465 | 6,104 | |||||||||||||||||||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||||||||||||||||
Policyholder benefits and dividends | �� | 1,192 | 1,486 | 1,362 | 1,143 | 1,120 | 3,311 | 3,625 | ||||||||||||||||||||||||||||||
Interest credited to policyholder account balances | 390 | 375 | 355 | 364 | 381 | 1,258 | 1,100 | |||||||||||||||||||||||||||||||
Interest credited to bank deposits | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Capitalization of DAC | (5 | ) | (1 | ) | (8 | ) | (3 | ) | (6 | ) | (13 | ) | (17 | ) | ||||||||||||||||||||||||
Amortization of DAC and VOBA | 3 | 3 | 4 | 4 | 4 | 12 | 12 | |||||||||||||||||||||||||||||||
Interest expense | 1 | — | 2 | 2 | 2 | 3 | 6 | |||||||||||||||||||||||||||||||
Other expenses | 128 | 129 | 124 | 125 | 121 | 355 | 370 | |||||||||||||||||||||||||||||||
Total operating expenses | 1,709 | 1,992 | 1,839 | 1,635 | 1,622 | 4,926 | 5,096 | |||||||||||||||||||||||||||||||
Operating earnings before provision for income tax | 208 | 285 | 351 | 366 | 291 | 539 | 1,008 | |||||||||||||||||||||||||||||||
Provision for income tax expense (benefit) | 68 | 94 | 123 | 128 | 102 | 179 | 353 | |||||||||||||||||||||||||||||||
Operating earnings | 140 | 191 | 228 | 238 | 189 | 360 | 655 | |||||||||||||||||||||||||||||||
Preferred stock dividends | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS | $ | 140 | $ | 191 | $ | 228 | $ | 238 | $ | 189 | $ | 360 | $ | 655 | ||||||||||||||||||||||||
Net Income Reconciliation | ||||||||||||||||||||||||||||||||||||||
Operating earnings | $ | 140 | $ | 191 | $ | 228 | $ | 238 | $ | 189 | $ | 360 | $ | 655 | ||||||||||||||||||||||||
Adjustments from operating earnings to income (loss) from continuing operations, net of income tax: | ||||||||||||||||||||||||||||||||||||||
Net investment gains (losses) | (305 | ) | (61 | ) | 38 | 73 | 50 | (1,473 | ) | 161 | ||||||||||||||||||||||||||||
Net derivatives gains (losses) | (112 | ) | (152 | ) | (43 | ) | 173 | (186 | ) | (574 | ) | (56 | ) | |||||||||||||||||||||||||
Universal life and investment-type product policy fees — amortization of unearned revenue related to net investment gains (losses) and net derivatives gains (losses) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Net investment income: | ||||||||||||||||||||||||||||||||||||||
Scheduled periodic settlement payments on derivatives not qualifying for hedge accounting | 58 | 52 | 51 | 46 | 47 | 142 | 144 | |||||||||||||||||||||||||||||||
Equity method operating joint ventures | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Real estate discontinued operations | (2 | ) | (2 | ) | (1 | ) | (1 | ) | — | (5 | ) | (2 | ) | |||||||||||||||||||||||||
Net investment income related to certain consolidated securitization entities | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Policyholder benefits and policyholder dividends: | ||||||||||||||||||||||||||||||||||||||
Changes in policyholder dividend obligations related to net investment gains (losses) and net derivatives gains (losses) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Changes in asset value fluctuations related to experience-rated contractholder liabilities and certain inflation-indexed liabilities | (40 | ) | — | (4 | ) | (37 | ) | (31 | ) | (69 | ) | (72 | ) | |||||||||||||||||||||||||
Interest credited to policyholder account balances — scheduled periodic settlement payments on derivatives not qualifying for hedge accounting | 1 | 1 | 3 | (1 | ) | (5 | ) | 3 | (3 | ) | ||||||||||||||||||||||||||||
Amortization of DAC and VOBA — related to net investment gains (losses) and net derivatives gains (losses) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Interest expense — related to certain consolidated securitization entities | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Other expenses: | ||||||||||||||||||||||||||||||||||||||
Noncontrolling interest | — | 1 | 1 | 1 | — | — | 2 | |||||||||||||||||||||||||||||||
Business combination costs | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Provision for income tax (expense) benefit | 141 | 54 | (17 | ) | (94 | ) | 45 | 691 | (66 | ) | ||||||||||||||||||||||||||||
Income (loss) from continuing operations, net of income tax | (119 | ) | 84 | 256 | 398 | 109 | (925 | ) | 763 | |||||||||||||||||||||||||||||
Income (loss) from discontinued operations, net of income tax | 1 | 4 | 1 | 6 | 1 | 3 | 8 | |||||||||||||||||||||||||||||||
Net income (loss) | (118 | ) | 88 | 257 | 404 | 110 | (922 | ) | 771 | |||||||||||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interest | — | 1 | — | 1 | — | — | 1 | |||||||||||||||||||||||||||||||
Net income (loss) attributable to MetLife, Inc. | (118 | ) | 87 | 257 | 403 | 110 | (922 | ) | 770 | |||||||||||||||||||||||||||||
Less: Preferred stock dividends | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Net income (loss) available to MetLife, Inc.’s common shareholders | $ | (118 | ) | $ | 87 | $ | 257 | $ | 403 | $ | 110 | $ | (922 | ) | $ | 770 | ||||||||||||||||||||||
Premiums, Fees and Other Revenues | $ | 707 | $ | 1,011 | $ | 920 | $ | 688 | $ | 618 | $ | 1,965 | $ | 2,226 | ||||||||||||||||||||||||
23
![(METLIFE LOGO)](https://capedge.com/proxy/8-K/0000950123-10-097569/y87340y8734003.gif)
U.S. BUSINESS
CORPORATE BENEFIT FUNDING
CORPORATE BENEFIT FUNDING
FUTURE POLICY BENEFITS AND POLICYHOLDER ACCOUNT BALANCES; AND SEPARATE ACCOUNT LIABILITIES
FUTURE POLICY BENEFITS AND POLICYHOLDER ACCOUNT BALANCES
For the Three Months Ended | |||||||||||||||||||||||
September 30, | December 31, | March 31, | June 30, | September 30, | |||||||||||||||||||
Unaudited (In millions) | 2009 | 2009 | 2010 | 2010 | 2010 | ||||||||||||||||||
Balance, beginning of period | $ | 99,652 | $ | 97,897 | $ | 97,170 | $ | 100,187 | $ | 100,220 | |||||||||||||
Premiums and deposits | 10,427 | 9,836 | 11,720 | 12,136 | 12,450 | ||||||||||||||||||
Surrenders and withdrawals | (12,532 | ) | (10,466 | ) | (8,856 | ) | (13,432 | ) | (11,707 | ) | |||||||||||||
Benefit payments | (820 | ) | (800 | ) | (806 | ) | (821 | ) | (890 | ) | |||||||||||||
Net Flows | (2,925 | ) | (1,430 | ) | 2,058 | (2,117 | ) | (147 | ) | ||||||||||||||
Net transfers from (to) separate account | (16 | ) | 58 | 16 | (59 | ) | (98 | ) | |||||||||||||||
Interest | 1,044 | 1,049 | 1,036 | 1,048 | 1,068 | ||||||||||||||||||
Policy charges | (30 | ) | (20 | ) | (31 | ) | (34 | ) | (30 | ) | |||||||||||||
Other | 172 | (384 | ) | (62 | ) | 1,195 | 1,846 | ||||||||||||||||
Balance, end of period | $ | 97,897 | $ | 97,170 | $ | 100,187 | $ | 100,220 | $ | 102,859 | |||||||||||||
SEPARATE ACCOUNT LIABILITIES
For the Three Months Ended | |||||||||||||||||||||||
September 30, | December 31, | March 31, | June 30, | September 30, | |||||||||||||||||||
Unaudited (In millions) | 2009 | 2009 | 2010 | 2010 | 2010 | ||||||||||||||||||
Balance, beginning of period | $ | 42,293 | $ | 46,015 | $ | 45,732 | $ | 48,830 | $ | 49,929 | |||||||||||||
Premiums and deposits | 1,931 | 1,748 | 2,061 | 1,240 | 4,835 | ||||||||||||||||||
Surrenders and withdrawals | (1,177 | ) | (1,360 | ) | (1,501 | ) | (1,250 | ) | (1,637 | ) | |||||||||||||
Benefit payments | (10 | ) | (11 | ) | (11 | ) | (17 | ) | (9 | ) | |||||||||||||
Net Flows | 744 | 377 | 549 | (27 | ) | 3,189 | |||||||||||||||||
Investment Performance | 2,703 | 384 | 1,049 | 501 | 2,067 | ||||||||||||||||||
Net transfers from (to) general account | 16 | (58 | ) | (16 | ) | 59 | 98 | ||||||||||||||||
Policy charges | (55 | ) | (57 | ) | (61 | ) | (50 | ) | (57 | ) | |||||||||||||
Other | 314 | (929 | ) | 1,577 | 616 | 1,493 | |||||||||||||||||
Balance, end of period | $ | 46,015 | $ | 45,732 | $ | 48,830 | $ | 49,929 | $ | 56,719 | |||||||||||||
24
![(METLIFE LOGO)](https://capedge.com/proxy/8-K/0000950123-10-097569/y87340y8734003.gif)
U.S. BUSINESS
CORPORATE BENEFIT FUNDING
CORPORATE BENEFIT FUNDING
OTHER EXPENSES BY MAJOR CATEGORY
For the Three Months Ended | |||||||||||||||||||||||
September 30, | December 31, | March 31, | June 30, | September 30, | |||||||||||||||||||
Unaudited (In millions) | 2009 | 2009 | 2010 | 2010 | 2010 | ||||||||||||||||||
Direct and allocated expenses | $ | 63 | $ | 65 | $ | 55 | $ | 71 | $ | 60 | |||||||||||||
Pension and other post-retirement benefit costs | 15 | 15 | 11 | 12 | 12 | ||||||||||||||||||
Premium taxes, other taxes, and licenses and fees | 12 | 5 | 3 | 5 | 5 | ||||||||||||||||||
Total fixed operating expenses | $ | 90 | $ | 85 | $ | 69 | $ | 88 | $ | 77 | |||||||||||||
Commissions and other variable expenses | 38 | 44 | 55 | 37 | 44 | ||||||||||||||||||
Total other expenses | $ | 128 | $ | 129 | $ | 124 | $ | 125 | $ | 121 | |||||||||||||
25
![(METLIFE LOGO)](https://capedge.com/proxy/8-K/0000950123-10-097569/y87340y8734003.gif)
U.S. BUSINESS
CORPORATE BENEFIT FUNDING
CORPORATE BENEFIT FUNDING
SPREAD
CORPORATE BENEFIT FUNDING | For the Three Months Ended | ||||||||||||||||||||||
September 30, | December 31, | March 31, | June 30, | September 30, | |||||||||||||||||||
Unaudited | 2009 | 2009 | 2010 | 2010 | 2010 | ||||||||||||||||||
Investment income yield | 4.71 | % | 4.96 | % | 5.04 | % | 5.16 | % | 5.19 | % | |||||||||||||
Average crediting rate | 4.14 | % | 4.13 | % | 4.00 | % | 4.04 | % | 4.16 | % | |||||||||||||
Annualized general account spread | 0.57 | % | 0.83 | % | 1.04 | % | 1.12 | % | 1.03 | % | |||||||||||||
26
![(METLIFE LOGO)](https://capedge.com/proxy/8-K/0000950123-10-097569/y87340y8734003.gif)
U.S. BUSINESS
AUTO & HOME
STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
For the Three Months Ended | For the Year-to-Date Period Ended | |||||||||||||||||||||||||||||||||||||
September 30, | December 31, | March 31, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||||||||||||||||||
Unaudited (In millions) | 2009 | 2009 | 2010 | 2010 | 2010 | 2009 | 2010 | |||||||||||||||||||||||||||||||
OPERATING REVENUES | ||||||||||||||||||||||||||||||||||||||
Premiums (1) | $ | 727 | $ | 727 | $ | 714 | $ | 723 | $ | 740 | $ | 2,175 | $ | 2,177 | ||||||||||||||||||||||||
Universal life and investment-type product policy fees | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Net investment income | 45 | 46 | 53 | 52 | 51 | 134 | 156 | |||||||||||||||||||||||||||||||
Other revenues | 8 | 11 | (2 | ) | 8 | 8 | 22 | 14 | ||||||||||||||||||||||||||||||
Total operating revenues | 780 | 784 | 765 | 783 | 799 | 2,331 | 2,347 | |||||||||||||||||||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||||||||||||||||
Policyholder benefits and dividends (1) | 483 | 478 | 494 | 506 | 506 | 1,454 | 1,506 | |||||||||||||||||||||||||||||||
Interest credited to policyholder account balances | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Interest credited to bank deposits | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Capitalization of DAC | (112 | ) | (106 | ) | (104 | ) | (117 | ) | (118 | ) | (329 | ) | (339 | ) | ||||||||||||||||||||||||
Amortization of DAC and VOBA | 107 | 108 | 107 | 111 | 110 | 328 | 328 | |||||||||||||||||||||||||||||||
Interest expense | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Other expenses | 189 | 194 | 179 | 193 | 200 | 570 | 572 | |||||||||||||||||||||||||||||||
Total operating expenses | 667 | 674 | 676 | 693 | 698 | 2,023 | 2,067 | |||||||||||||||||||||||||||||||
Operating earnings before provision for income tax | 113 | 110 | 89 | 90 | 101 | 308 | 280 | |||||||||||||||||||||||||||||||
Provision for income tax expense (benefit) | 27 | 26 | 17 | 17 | 20 | 70 | 54 | |||||||||||||||||||||||||||||||
Operating earnings | 86 | 84 | 72 | 73 | 81 | 238 | 226 | |||||||||||||||||||||||||||||||
Preferred stock dividends | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS | $ | 86 | $ | 84 | $ | 72 | $ | 73 | $ | 81 | $ | 238 | $ | 226 | ||||||||||||||||||||||||
Net Income Reconciliation | ||||||||||||||||||||||||||||||||||||||
Operating earnings | $ | 86 | $ | 84 | $ | 72 | $ | 73 | $ | 81 | $ | 238 | $ | 226 | ||||||||||||||||||||||||
Adjustments from operating earnings to income (loss) from continuing operations, net of income tax: | ||||||||||||||||||||||||||||||||||||||
Net investment gains (losses) | (29 | ) | 5 | (1 | ) | 1 | (3 | ) | (46 | ) | (3 | ) | ||||||||||||||||||||||||||
Net derivatives gains (losses) | (1 | ) | — | — | (3 | ) | (4 | ) | 39 | (7 | ) | |||||||||||||||||||||||||||
Universal life and investment-type product policy fees — amortization of unearned revenue related to net investment gains (losses) and net derivatives gains (losses) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Net investment income: | ||||||||||||||||||||||||||||||||||||||
Scheduled periodic settlement payments on derivatives not qualifying for hedge accounting | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Equity method operating joint ventures | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Real estate discontinued operations | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Net investment income related to certain consolidated securitization entities | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Policyholder benefits and policyholder dividends: | ||||||||||||||||||||||||||||||||||||||
Changes in policyholder dividend obligations related to net investment gains (losses) and net derivatives gains (losses) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Changes in asset value fluctuations related to experience-rated contractholder liabilities and certain inflation-indexed liabilities | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Interest credited to policyholder account balances — scheduled periodic settlement payments on derivatives not qualifying for hedge accounting | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Amortization of DAC and VOBA — related to net investment gains (losses) and net derivatives gains (losses) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Interest expense — related to certain consolidated securitization entities | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Other expenses: | ||||||||||||||||||||||||||||||||||||||
Noncontrolling interest | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Business combination costs | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Provision for income tax (expense) benefit | 11 | (2 | ) | — | 1 | 2 | 3 | 3 | ||||||||||||||||||||||||||||||
Income (loss) from continuing operations, net of income tax | 67 | 87 | 71 | 72 | 76 | 234 | 219 | |||||||||||||||||||||||||||||||
Income (loss) from discontinued operations, net of income tax | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Net income (loss) | 67 | 87 | 71 | 72 | 76 | 234 | 219 | |||||||||||||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interest | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Net income (loss) attributable to MetLife, Inc. | 67 | 87 | 71 | 72 | 76 | 234 | 219 | |||||||||||||||||||||||||||||||
Less: Preferred stock dividends | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Net income (loss) available to MetLife, Inc.’s common shareholders | $ | 67 | $ | 87 | $ | 71 | $ | 72 | $ | 76 | $ | 234 | $ | 219 | ||||||||||||||||||||||||
Premiums, Fees and Other Revenues | $ | 735 | $ | 738 | $ | 712 | $ | 731 | $ | 748 | $ | 2,197 | $ | 2,191 | ||||||||||||||||||||||||
(1) | Premiums reflect earned premiums and policyholder benefits and dividends includes losses and loss adjustment expense. |
27
![(METLIFE LOGO)](https://capedge.com/proxy/8-K/0000950123-10-097569/y87340y8734003.gif)
U.S. BUSINESS
AUTO & HOME — AUTO
STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS — PRODUCT LEVEL
AUTO & HOME — AUTO
STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS — PRODUCT LEVEL
For the Three Months Ended | For the Year-to-Date Period Ended | |||||||||||||||||||||||||||||||||||||
September 30, | December 31, | March 31, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||||||||||||||||||
Unaudited (In millions) | 2009 | 2009 | 2010 | 2010 | 2010 | 2009 | 2010 | |||||||||||||||||||||||||||||||
OPERATING REVENUES | ||||||||||||||||||||||||||||||||||||||
Premiums (1) | $ | 500 | $ | 495 | $ | 484 | $ | 489 | $ | 500 | $ | 1,496 | $ | 1,473 | ||||||||||||||||||||||||
Universal life and investment-type product policy fees | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Net investment income | 28 | 29 | 34 | 34 | 32 | 83 | 100 | |||||||||||||||||||||||||||||||
Other revenues | 5 | 4 | 4 | 5 | 5 | 13 | 14 | |||||||||||||||||||||||||||||||
Total operating revenues | 533 | 528 | 522 | 528 | 537 | 1,592 | 1,587 | |||||||||||||||||||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||||||||||||||||
Policyholder benefits and dividends (1) | 353 | 373 | 336 | 320 | 355 | 1,019 | 1,011 | |||||||||||||||||||||||||||||||
Interest credited to policyholder account balances | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Interest credited to bank deposits | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Capitalization of DAC | (77 | ) | (65 | ) | (68 | ) | (76 | ) | (78 | ) | (222 | ) | (222 | ) | ||||||||||||||||||||||||
Amortization of DAC and VOBA | 74 | 68 | 69 | 74 | 74 | 219 | 217 | |||||||||||||||||||||||||||||||
Interest expense | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Other expenses | 124 | 128 | 120 | 127 | 130 | 377 | 377 | |||||||||||||||||||||||||||||||
Total operating expenses | 474 | 504 | 457 | 445 | 481 | 1,393 | 1,383 | |||||||||||||||||||||||||||||||
Operating earnings before provision for income tax | 59 | 24 | 65 | 83 | 56 | 199 | 204 | |||||||||||||||||||||||||||||||
Provision for income tax expense (benefit) | �� | 13 | — | 13 | 21 | 10 | 46 | 44 | ||||||||||||||||||||||||||||||
Operating earnings | 46 | 24 | 52 | 62 | 46 | 153 | 160 | |||||||||||||||||||||||||||||||
Preferred stock dividends | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS | $ | 46 | $ | 24 | $ | 52 | $ | 62 | $ | 46 | $ | 153 | $ | 160 | ||||||||||||||||||||||||
Net Income Reconciliation | ||||||||||||||||||||||||||||||||||||||
Operating earnings | $ | 46 | $ | 24 | $ | 52 | $ | 62 | $ | 46 | $ | 153 | $ | 160 | ||||||||||||||||||||||||
Adjustments from operating earnings to income (loss) from continuing operations, net of income tax: | ||||||||||||||||||||||||||||||||||||||
Net investment gains (losses) | (18 | ) | 1 | (1 | ) | 1 | (2 | ) | (28 | ) | (2 | ) | ||||||||||||||||||||||||||
Net derivatives gains (losses) | — | 1 | — | (2 | ) | (2 | ) | 24 | (4 | ) | ||||||||||||||||||||||||||||
Universal life and investment-type product policy fees — amortization of unearned revenue related to net investment gains (losses) and net derivatives gains (losses) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Net investment income: | ||||||||||||||||||||||||||||||||||||||
Scheduled periodic settlement payments on derivatives not qualifying for hedge accounting | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Equity method operating joint ventures | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Real estate discontinued operations | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Net investment income related to certain consolidated securitization entities | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Policyholder benefits and policyholder dividends: | ||||||||||||||||||||||||||||||||||||||
Changes in policyholder dividend obligations related to net investment gains (losses) and net derivatives gains (losses) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Changes in asset value fluctuations related to experience-rated contractholder liabilities and certain inflation-indexed liabilities | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Interest credited to policyholder account balances — scheduled periodic settlement payments on derivatives not qualifying for hedge accounting | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Amortization of DAC and VOBA — related to net investment gains (losses) and net derivatives gains (losses) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Interest expense — related to certain consolidated securitization entities | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Other expenses: | ||||||||||||||||||||||||||||||||||||||
Noncontrolling interest | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Business combination costs | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Provision for income tax (expense) benefit | 7 | (1 | ) | — | 1 | 1 | 2 | 2 | ||||||||||||||||||||||||||||||
Income (loss) from continuing operations, net of income tax | 35 | 25 | 51 | 62 | 43 | 151 | 156 | |||||||||||||||||||||||||||||||
Income (loss) from discontinued operations, net of income tax | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Net income (loss) | 35 | 25 | 51 | 62 | 43 | 151 | 156 | |||||||||||||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interest | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Net income (loss) attributable to MetLife, Inc. | 35 | 25 | 51 | 62 | 43 | 151 | 156 | |||||||||||||||||||||||||||||||
Less: Preferred stock dividends | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Net income (loss) available to MetLife, Inc.’s common shareholders | $ | 35 | $ | 25 | $ | 51 | $ | 62 | $ | 43 | $ | 151 | $ | 156 | ||||||||||||||||||||||||
Premiums, Fees and Other Revenues | $ | 505 | $ | 499 | $ | 488 | $ | 494 | $ | 505 | $ | 1,509 | $ | 1,487 | ||||||||||||||||||||||||
(1) | Premiums reflect earned premiums and policyholder benefits and dividends includes losses and loss adjustment expense. |
28
![(METLIFE LOGO)](https://capedge.com/proxy/8-K/0000950123-10-097569/y87340y8734003.gif)
U.S. BUSINESS
AUTO & HOME — HOMEOWNERS & OTHER
STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS — PRODUCT LEVEL
AUTO & HOME — HOMEOWNERS & OTHER
STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS — PRODUCT LEVEL
For the Three Months Ended | For the Year-to-Date Period Ended | |||||||||||||||||||||||||||||||||||||
September 30, | December 31, | March 31, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||||||||||||||||||
Unaudited (In millions) | 2009 | 2009 | 2010 | 2010 | 2010 | 2009 | 2010 | |||||||||||||||||||||||||||||||
OPERATING REVENUES | ||||||||||||||||||||||||||||||||||||||
Premiums (1) | $ | 227 | $ | 232 | $ | 230 | $ | 234 | $ | 240 | $ | 679 | $ | 704 | ||||||||||||||||||||||||
Universal life and investment-type product policy fees | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Net investment income | 17 | 17 | 19 | 18 | 19 | 51 | 56 | |||||||||||||||||||||||||||||||
Other revenues | 3 | 7 | (6 | ) | 3 | 3 | 9 | — | ||||||||||||||||||||||||||||||
Total operating revenues | 247 | 256 | 243 | 255 | 262 | 739 | 760 | |||||||||||||||||||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||||||||||||||||
Policyholder benefits and dividends (1) | 130 | 105 | 158 | 186 | 151 | 435 | 495 | |||||||||||||||||||||||||||||||
Interest credited to policyholder account balances | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Interest credited to bank deposits | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Capitalization of DAC | (35 | ) | (41 | ) | (36 | ) | (41 | ) | (40 | ) | (107 | ) | (117 | ) | ||||||||||||||||||||||||
Amortization of DAC and VOBA | 33 | 40 | 38 | 37 | 36 | 109 | 111 | |||||||||||||||||||||||||||||||
Interest expense | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Other expenses | 65 | 66 | 59 | 66 | 70 | 193 | 195 | |||||||||||||||||||||||||||||||
Total operating expenses | 193 | 170 | 219 | 248 | 217 | 630 | 684 | |||||||||||||||||||||||||||||||
Operating earnings before provision for income tax | 54 | 86 | 24 | 7 | 45 | 109 | 76 | |||||||||||||||||||||||||||||||
Provision for income tax expense (benefit) | 14 | 26 | 4 | (4 | ) | 10 | 24 | 10 | ||||||||||||||||||||||||||||||
Operating earnings | 40 | 60 | 20 | 11 | 35 | 85 | 66 | |||||||||||||||||||||||||||||||
Preferred stock dividends | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS | $ | 40 | $ | 60 | $ | 20 | $ | 11 | $ | 35 | $ | 85 | $ | 66 | ||||||||||||||||||||||||
Net Income Reconciliation | ||||||||||||||||||||||||||||||||||||||
Operating earnings | $ | 40 | $ | 60 | $ | 20 | $ | 11 | $ | 35 | $ | 85 | $ | 66 | ||||||||||||||||||||||||
Adjustments from operating earnings to income (loss) from continuing operations, net of income tax: | ||||||||||||||||||||||||||||||||||||||
Net investment gains (losses) | (11 | ) | 4 | — | — | (1 | ) | (18 | ) | (1 | ) | |||||||||||||||||||||||||||
Net derivatives gains (losses) | (1 | ) | (1 | ) | — | (1 | ) | (2 | ) | 15 | (3 | ) | ||||||||||||||||||||||||||
Universal life and investment-type product policy fees — amortization of unearned revenue related to net investment gains (losses) and net derivatives gains (losses) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Net investment income: | ||||||||||||||||||||||||||||||||||||||
Scheduled periodic settlement payments on derivatives not qualifying for hedge accounting | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Equity method operating joint ventures | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Real estate discontinued operations | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Net investment income related to certain consolidated securitization entities | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Policyholder benefits and policyholder dividends: | ||||||||||||||||||||||||||||||||||||||
Changes in policyholder dividend obligations related to net investment gains (losses) and net derivatives gains (losses) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Changes in asset value fluctuations related to experience-rated contractholder liabilities and certain inflation-indexed liabilities | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Interest credited to policyholder account balances — scheduled periodic settlement payments on derivatives not qualifying for hedge accounting | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Amortization of DAC and VOBA — related to net investment gains (losses) and net derivatives gains (losses) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Interest expense — related to certain consolidated securitization entities | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Other expenses: | ||||||||||||||||||||||||||||||||||||||
Noncontrolling interest | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Business combination costs | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Provision for income tax (expense) benefit | 4 | (1 | ) | — | — | 1 | 1 | 1 | ||||||||||||||||||||||||||||||
Income (loss) from continuing operations, net of income tax | 32 | 62 | 20 | 10 | 33 | 83 | 63 | |||||||||||||||||||||||||||||||
Income (loss) from discontinued operations, net of income tax | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Net income (loss) | 32 | 62 | 20 | 10 | 33 | 83 | 63 | |||||||||||||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interest | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Net income (loss) attributable to MetLife, Inc. | 32 | 62 | 20 | 10 | 33 | 83 | 63 | |||||||||||||||||||||||||||||||
Less: Preferred stock dividends | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Net income (loss) available to MetLife, Inc.’s common shareholders | $ | 32 | $ | 62 | $ | 20 | $ | 10 | $ | 33 | $ | 83 | $ | 63 | ||||||||||||||||||||||||
Premiums, Fees and Other Revenues | $ | 230 | $ | 239 | $ | 224 | $ | 237 | $ | 243 | $ | 688 | $ | 704 | ||||||||||||||||||||||||
(1) | Premiums reflect earned premiums and policyholder benefits and dividends includes losses and loss adjustment expense. |
29
![(METLIFE LOGO)](https://capedge.com/proxy/8-K/0000950123-10-097569/y87340y8734003.gif)
U.S. BUSINESS
AUTO & HOME
AUTO & HOME
WRITTEN PREMIUMS BY PRODUCT AND SELECTED FINANCIAL INFORMATION AND SUPPLEMENTAL DATA
For the Three Months Ended | |||||||||||||||||||||||
September 30, | December 31, | March 31, | June 30, | September 30, | |||||||||||||||||||
Unaudited (In millions, except ratios) | 2009 | 2009 | 2010 | 2010 | 2010 | ||||||||||||||||||
Written Premiums by Product | |||||||||||||||||||||||
Automobile | $ | 503 | $ | 475 | $ | 486 | $ | 509 | $ | 513 | |||||||||||||
Homeowners | 240 | 212 | 190 | 242 | 254 | ||||||||||||||||||
Other | 11 | 11 | 21 | 13 | 13 | ||||||||||||||||||
Total | $ | 754 | $ | 698 | $ | 697 | $ | 764 | $ | 780 | |||||||||||||
Selected Financial Information and Supplemental Data | |||||||||||||||||||||||
Total Auto & Home | |||||||||||||||||||||||
Loss and loss adjustment expense ratio | 66.1 | % | 65.6 | % | 69.5 | % | 69.8 | % | 68.3 | % | |||||||||||||
Policyholder benefits and dividends | 0.1 | % | 0.1 | % | (0.3 | %) | 0.1 | % | 0.0 | % | |||||||||||||
Other expense ratio | 25.5 | % | 27.2 | % | 25.5 | % | 26.0 | % | 25.9 | % | |||||||||||||
Payment fees credit | (0.6 | %) | (0.6 | %) | (0.6 | %) | (0.6 | %) | (0.6 | %) | |||||||||||||
Total combined ratio | 91.1 | % | 92.3 | % | 94.1 | % | 95.3 | % | 93.6 | % | |||||||||||||
Effect of catastrophe losses | 3.4 | % | 0.5 | % | 5.3 | % | 9.8 | % | 5.4 | % | |||||||||||||
Combined ratio excluding catastrophes | 87.7 | % | 91.8 | % | 88.8 | % | 85.5 | % | 88.2 | % | |||||||||||||
Auto | |||||||||||||||||||||||
Loss and loss adjustment expense ratio | 70.2 | % | 75.5 | % | 69.8 | % | 65.3 | % | 71.0 | % | |||||||||||||
Policyholder benefits and dividends | 0.1 | % | 0.1 | % | (0.3 | %) | 0.1 | % | 0.0 | % | |||||||||||||
Other expense ratio | 24.4 | % | 26.7 | % | 25.0 | % | 25.6 | % | 25.1 | % | |||||||||||||
Payment fees credit | (0.7 | %) | (0.7 | %) | (0.7 | %) | (0.7 | %) | (0.6 | %) | |||||||||||||
Total combined ratio | 94.0 | % | 101.6 | % | 93.8 | % | 90.3 | % | 95.5 | % | |||||||||||||
Effect of catastrophe losses | 0.4 | % | (0.2 | %) | 0.5 | % | 1.8 | % | 0.7 | % | |||||||||||||
Combined ratio excluding catastrophes | 93.6 | % | 101.8 | % | 93.3 | % | 88.5 | % | 94.8 | % | |||||||||||||
Homeowners & Other | |||||||||||||||||||||||
Loss and loss adjustment expense ratio | 56.9 | % | 44.7 | % | 68.7 | % | 79.3 | % | 62.6 | % | |||||||||||||
Policyholder benefits and dividends | 0.2 | % | 0.1 | % | (0.3 | %) | 0.1 | % | 0.0 | % | |||||||||||||
Other expense ratio | 28.0 | % | 28.2 | % | 26.7 | % | 26.8 | % | 27.5 | % | |||||||||||||
Payment fees credit | (0.4 | %) | (0.4 | %) | (0.4 | %) | (0.4 | %) | (0.4 | %) | |||||||||||||
Total combined ratio | 84.7 | % | 72.6 | % | 94.7 | % | 105.8 | % | 89.7 | % | |||||||||||||
Effect of catastrophe losses | 9.7 | % | 1.9 | % | 15.3 | % | 26.6 | % | 15.4 | % | |||||||||||||
Combined ratio excluding catastrophes | 75.0 | % | 70.7 | % | 79.4 | % | 79.2 | % | 74.3 | % | |||||||||||||
Pre-Tax Catastrophe Losses | |||||||||||||||||||||||
Auto | $ | 2 | $ | (1 | ) | $ | 3 | $ | 8 | $ | 3 | ||||||||||||
Homeowners & Other | 22 | 5 | 35 | 63 | 37 | ||||||||||||||||||
Total | $ | 24 | $ | 4 | $ | 38 | $ | 71 | $ | 40 | |||||||||||||
Catastrophe points on combined ratios | 3.4 | 0.5 | 5.3 | 9.8 | 5.4 | ||||||||||||||||||
30
![(METLIFE LOGO)](https://capedge.com/proxy/8-K/0000950123-10-097569/y87340y8734003.gif)
INTERNATIONAL
STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
For the Three Months Ended | For the Year-to-Date Period Ended | |||||||||||||||||||||||||||||||||||||
September 30, | December 31, | March 31, | June 30, | September 30, | ||||||||||||||||||||||||||||||||||
Unaudited (In millions) | 2009 | 2009 | 2010 | 2010 | 2010 | September 30, 2009 | September 30, 2010 | |||||||||||||||||||||||||||||||
OPERATING REVENUES | ||||||||||||||||||||||||||||||||||||||
Premiums | $ | 868 | $ | 821 | $ | 893 | $ | 895 | $ | 956 | $ | 2,366 | $ | 2,744 | ||||||||||||||||||||||||
Universal life and investment-type product policy fees | 222 | 403 | 291 | 315 | 302 | 658 | 908 | |||||||||||||||||||||||||||||||
Net investment income | 395 | 271 | 450 | 297 | 474 | 922 | 1,221 | |||||||||||||||||||||||||||||||
Other revenues | 4 | 6 | 1 | 4 | 7 | 8 | 12 | |||||||||||||||||||||||||||||||
Total operating revenues | 1,489 | 1,501 | 1,635 | 1,511 | 1,739 | 3,954 | 4,885 | |||||||||||||||||||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||||||||||||||||
Policyholder benefits and dividends | 705 | 807 | 838 | 839 | 852 | 1,853 | 2,529 | |||||||||||||||||||||||||||||||
Interest credited to policyholder account balances | 198 | 146 | 151 | 42 | 244 | 435 | 437 | |||||||||||||||||||||||||||||||
Interest credited to bank deposits | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Capitalization of DAC | (164 | ) | (181 | ) | (192 | ) | (168 | ) | (180 | ) | (449 | ) | (540 | ) | ||||||||||||||||||||||||
Amortization of DAC and VOBA | 79 | 143 | 105 | 115 | 110 | 272 | 330 | |||||||||||||||||||||||||||||||
Interest expense | 3 | 2 | 1 | 2 | (1 | ) | 6 | 2 | ||||||||||||||||||||||||||||||
Other expenses | 481 | 544 | 522 | 493 | 519 | 1,253 | 1,534 | |||||||||||||||||||||||||||||||
Total operating expenses | 1,302 | 1,461 | 1,425 | 1,323 | 1,544 | 3,370 | 4,292 | |||||||||||||||||||||||||||||||
Operating earnings before provision for income tax | 187 | 40 | 210 | 188 | 195 | 584 | 593 | |||||||||||||||||||||||||||||||
Provision for income tax expense (benefit) | 34 | 19 | 59 | 43 | 4 | 142 | 106 | |||||||||||||||||||||||||||||||
Operating earnings | 153 | 21 | 151 | 145 | 191 | 442 | 487 | |||||||||||||||||||||||||||||||
Preferred stock dividends | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS | $ | 153 | $ | 21 | $ | 151 | $ | 145 | $ | 191 | $ | 442 | $ | 487 | ||||||||||||||||||||||||
Net Income Reconciliation | ||||||||||||||||||||||||||||||||||||||
Operating earnings | $ | 153 | $ | 21 | $ | 151 | $ | 145 | $ | 191 | $ | 442 | $ | 487 | ||||||||||||||||||||||||
Adjustments from operating earnings to income (loss) from continuing operations, net of income tax: | ||||||||||||||||||||||||||||||||||||||
Net investment gains (losses) | (18 | ) | (27 | ) | (35 | ) | 6 | (239 | ) | (78 | ) | (268 | ) | |||||||||||||||||||||||||
Net derivatives gains (losses) | (556 | ) | (255 | ) | 6 | 260 | (109 | ) | (543 | ) | 157 | |||||||||||||||||||||||||||
Universal life and investment-type product policy fees — amortization of unearned revenue related to net investment gains (losses) and net derivatives gains (losses) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Net investment income: | ||||||||||||||||||||||||||||||||||||||
Scheduled periodic settlement payments on derivatives not qualifying for hedge accounting | (3 | ) | (10 | ) | (8 | ) | (14 | ) | (11 | ) | (3 | ) | (33 | ) | ||||||||||||||||||||||||
Equity method operating joint ventures | (35 | ) | (45 | ) | (5 | ) | (97 | ) | — | (111 | ) | (102 | ) | |||||||||||||||||||||||||
Real estate discontinued operations | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Net investment income related to certain consolidated securitization entities | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Policyholder benefits and policyholder dividends: | ||||||||||||||||||||||||||||||||||||||
Changes in policyholder dividend obligations related to net investment gains (losses) and net derivatives gains (losses) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Changes in asset value fluctuations related to experience-rated contractholder liabilities and certain inflation-indexed liabilities | (24 | ) | 2 | (19 | ) | (114 | ) | (138 | ) | (7 | ) | (271 | ) | |||||||||||||||||||||||||
Interest credited to policyholder account balances — scheduled periodic settlement payments on derivatives not qualifying for hedge accounting | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Amortization of DAC and VOBA — related to net investment gains (losses) and net derivatives gains (losses) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Interest expense — related to certain consolidated securitization entities | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Other expenses: | ||||||||||||||||||||||||||||||||||||||
Noncontrolling interest | (7 | ) | (11 | ) | (3 | ) | (8 | ) | 4 | (21 | ) | (7 | ) | |||||||||||||||||||||||||
Business combination costs | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Provision for income tax (expense) benefit | 207 | 107 | 24 | (106 | ) | 169 | 259 | 87 | ||||||||||||||||||||||||||||||
Income (loss) from continuing operations, net of income tax | (283 | ) | (218 | ) | 111 | 72 | (133 | ) | (62 | ) | 50 | |||||||||||||||||||||||||||
Income (loss) from discontinued operations, net of income tax | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Net income (loss) | (283 | ) | (218 | ) | 111 | 72 | (133 | ) | (62 | ) | 50 | |||||||||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interest | (5 | ) | (9 | ) | (2 | ) | (8 | ) | 4 | (19 | ) | (6 | ) | |||||||||||||||||||||||||
Net income (loss) attributable to MetLife, Inc. | (278 | ) | (209 | ) | 113 | 80 | (137 | ) | (43 | ) | 56 | |||||||||||||||||||||||||||
Less: Preferred stock dividends | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Net income (loss) available to MetLife, Inc.’s common shareholders | $ | (278 | ) | $ | (209 | ) | $ | 113 | $ | 80 | $ | (137 | ) | $ | (43 | ) | $ | 56 | ||||||||||||||||||||
Premiums, Fees and Other Revenues | $ | 1,094 | $ | 1,230 | $ | 1,185 | $ | 1,214 | $ | 1,265 | $ | 3,032 | $ | 3,664 | ||||||||||||||||||||||||
Actual Number of Sales Representatives | 5,622 | 6,318 | 6,102 | 6,205 | 6,661 | |||||||||||||||||||||||||||||||||
31
![(METLIFE LOGO)](https://capedge.com/proxy/8-K/0000950123-10-097569/y87340y8734003.gif)
INTERNATIONAL — LATIN AMERICA REGION
STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
For the Three Months Ended | For the Year-to-Date Period Ended | |||||||||||||||||||||||||||||||||||||
September 30, | December 31, | March 31, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||||||||||||||||||
Unaudited (In millions) | 2009 | 2009 | 2010 | 2010 | 2010 | 2009 | 2010 | |||||||||||||||||||||||||||||||
OPERATING REVENUES | ||||||||||||||||||||||||||||||||||||||
Premiums | $ | 420 | $ | 429 | $ | 454 | $ | 461 | $ | 519 | $ | 1,134 | $ | 1,434 | ||||||||||||||||||||||||
Universal life and investment-type product policy fees | 133 | 156 | 150 | 157 | 150 | 391 | 457 | |||||||||||||||||||||||||||||||
Net investment income | 193 | 119 | 280 | 246 | 230 | 503 | 756 | |||||||||||||||||||||||||||||||
Other revenues | 3 | 2 | 1 | 2 | 3 | 5 | 6 | |||||||||||||||||||||||||||||||
Total operating revenues | 749 | 706 | 885 | 866 | 902 | 2,033 | 2,653 | |||||||||||||||||||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||||||||||||||||
Policyholder benefits and dividends | 384 | 438 | 486 | 468 | 486 | 975 | 1,440 | |||||||||||||||||||||||||||||||
Interest credited to policyholder account balances | 86 | 86 | 90 | 83 | 108 | 245 | 281 | |||||||||||||||||||||||||||||||
Interest credited to bank deposits | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Capitalization of DAC | (40 | ) | (45 | ) | (49 | ) | (53 | ) | (57 | ) | (115 | ) | (159 | ) | ||||||||||||||||||||||||
Amortization of DAC and VOBA | 22 | 27 | 37 | 35 | 29 | 88 | 101 | |||||||||||||||||||||||||||||||
Interest expense | — | — | — | 2 | (1 | ) | — | 1 | ||||||||||||||||||||||||||||||
Other expenses | 193 | 209 | 202 | 201 | 224 | 441 | 627 | |||||||||||||||||||||||||||||||
Total operating expenses | 645 | 715 | 766 | 736 | 789 | 1,634 | 2,291 | |||||||||||||||||||||||||||||||
Operating earnings before provision for income tax | 104 | (9 | ) | 119 | 130 | 113 | 399 | 362 | ||||||||||||||||||||||||||||||
Provision for income tax expense (benefit) | 23 | 12 | 34 | 29 | 4 | 110 | 67 | |||||||||||||||||||||||||||||||
Operating earnings | 81 | (21 | ) | 85 | 101 | 109 | 289 | 295 | ||||||||||||||||||||||||||||||
Preferred stock dividends | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS | $ | 81 | $ | (21 | ) | $ | 85 | $ | 101 | $ | 109 | $ | 289 | $ | 295 | |||||||||||||||||||||||
Net Income Reconciliation | ||||||||||||||||||||||||||||||||||||||
Operating earnings | $ | 81 | $ | (21 | ) | $ | 85 | $ | 101 | $ | 109 | $ | 289 | $ | 295 | |||||||||||||||||||||||
Adjustments from operating earnings to income (loss) from continuing operations, net of income tax: | ||||||||||||||||||||||||||||||||||||||
Net investment gains (losses) | (12 | ) | 8 | (1 | ) | (6 | ) | (14 | ) | (69 | ) | (21 | ) | |||||||||||||||||||||||||
Net derivatives gains (losses) | (11 | ) | 27 | (12 | ) | (17 | ) | 38 | 52 | 9 | ||||||||||||||||||||||||||||
Universal life and investment-type product policy fees — amortization of unearned revenue related to net investment gains (losses) and net derivatives gains (losses) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Net investment income: | ||||||||||||||||||||||||||||||||||||||
Scheduled periodic settlement payments on derivatives not qualifying for hedge accounting | 2 | (3 | ) | (1 | ) | (6 | ) | 1 | 10 | (6 | ) | |||||||||||||||||||||||||||
Equity method operating joint ventures | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Real estate discontinued operations | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Net investment income related to certain consolidated securitization entities | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Policyholder benefits and policyholder dividends: | ||||||||||||||||||||||||||||||||||||||
Changes in policyholder dividend obligations related to net investment gains (losses) and net derivatives gains (losses) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Changes in asset value fluctuations related to experience-rated contractholder liabilities and certain inflation-indexed liabilities | (24 | ) | 2 | (19 | ) | (114 | ) | (138 | ) | (7 | ) | (271 | ) | |||||||||||||||||||||||||
Interest credited to policyholder account balances — scheduled periodic settlement payments on derivatives not qualifying for hedge accounting | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Amortization of DAC and VOBA — related to net investment gains (losses) and net derivatives gains (losses) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Interest expense — related to certain consolidated securitization entities | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Other expenses: | ||||||||||||||||||||||||||||||||||||||
Noncontrolling interest | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Business combination costs | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Provision for income tax (expense) benefit | 10 | (5 | ) | 13 | 38 | 33 | 2 | 84 | ||||||||||||||||||||||||||||||
Income (loss) from continuing operations, net of income tax | 46 | 8 | 65 | (4 | ) | 29 | 277 | 90 | ||||||||||||||||||||||||||||||
Income (loss) from discontinued operations, net of income tax | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Net income (loss) | 46 | 8 | 65 | (4 | ) | 29 | 277 | 90 | ||||||||||||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interest | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Net income (loss) attributable to MetLife, Inc. | 46 | 8 | 65 | (4 | ) | 29 | 277 | 90 | ||||||||||||||||||||||||||||||
Less: Preferred stock dividends | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Net income (loss) available to MetLife, Inc.’s common shareholders | $ | 46 | $ | 8 | $ | 65 | $ | (4 | ) | $ | 29 | $ | 277 | $ | 90 | |||||||||||||||||||||||
Premiums, Fees and Other Revenues | $ | 556 | $ | 587 | $ | 605 | $ | 620 | $ | 672 | $ | 1,530 | $ | 1,897 | ||||||||||||||||||||||||
Actual Number of Sales Representatives | 114 | 126 | 112 | 104 | 97 | |||||||||||||||||||||||||||||||||
32
![(METLIFE LOGO)](https://capedge.com/proxy/8-K/0000950123-10-097569/y87340y8734003.gif)
INTERNATIONAL — ASIA PACIFIC REGION
STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
For the Three Months Ended | For the Year-to-Date Period Ended | |||||||||||||||||||||||||||||||||||||
Unaudited (In millions) | September 30, 2009 | December 31, 2009 | March 31, 2010 | June 30, 2010 | September 30, 2010 | September 30, 2009 | September 30, 2010 | |||||||||||||||||||||||||||||||
OPERATING REVENUES | ||||||||||||||||||||||||||||||||||||||
Premiums | $ | 353 | $ | 281 | $ | 334 | $ | 352 | $ | 350 | $ | 971 | $ | 1,036 | ||||||||||||||||||||||||
Universal life and investment-type product policy fees | 78 | 230 | 120 | 135 | 126 | 232 | 381 | |||||||||||||||||||||||||||||||
Net investment income | 126 | 131 | 117 | 64 | 165 | 323 | 346 | |||||||||||||||||||||||||||||||
Other revenues | — | 1 | — | 1 | 2 | 1 | 3 | |||||||||||||||||||||||||||||||
Total operating revenues | 557 | 643 | 571 | 552 | 643 | 1,527 | 1,766 | |||||||||||||||||||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||||||||||||||||
Policyholder benefits and dividends | 292 | 323 | 308 | 346 | 325 | 803 | 979 | |||||||||||||||||||||||||||||||
Interest credited to policyholder account balances | 40 | 41 | 14 | (22 | ) | 64 | 109 | 56 | ||||||||||||||||||||||||||||||
Interest credited to bank deposits | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Capitalization of DAC | (88 | ) | (90 | ) | (92 | ) | (89 | ) | (93 | ) | (222 | ) | (274 | ) | ||||||||||||||||||||||||
Amortization of DAC and VOBA | 49 | 105 | 56 | 67 | 71 | 153 | 194 | |||||||||||||||||||||||||||||||
Interest expense | 2 | 1 | — | — | — | 3 | — | |||||||||||||||||||||||||||||||
Other expenses | 167 | 185 | 185 | 176 | 185 | 455 | 546 | |||||||||||||||||||||||||||||||
Total operating expenses | 462 | 565 | 471 | 478 | 552 | 1,301 | 1,501 | |||||||||||||||||||||||||||||||
Operating earnings before provision for income tax | 95 | 78 | 100 | 74 | 91 | 226 | 265 | |||||||||||||||||||||||||||||||
Provision for income tax expense (benefit) | 13 | 13 | 26 | 16 | 7 | 37 | 49 | |||||||||||||||||||||||||||||||
Operating earnings | 82 | 65 | 74 | 58 | 84 | 189 | 216 | |||||||||||||||||||||||||||||||
Preferred stock dividends | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS | $ | 82 | $ | 65 | $ | 74 | $ | 58 | $ | 84 | $ | 189 | $ | 216 | ||||||||||||||||||||||||
Net Income Reconciliation | ||||||||||||||||||||||||||||||||||||||
Operating earnings | $ | 82 | $ | 65 | $ | 74 | $ | 58 | $ | 84 | $ | 189 | $ | 216 | ||||||||||||||||||||||||
Adjustments from operating earnings to income (loss) from continuing operations, net of income tax: | ||||||||||||||||||||||||||||||||||||||
Net investment gains (losses) | (7 | ) | (34 | ) | 6 | 11 | (220 | ) | (13 | ) | (203 | ) | ||||||||||||||||||||||||||
Net derivatives gains (losses) | (548 | ) | (282 | ) | 20 | 279 | (143 | ) | (600 | ) | 156 | |||||||||||||||||||||||||||
Universal life and investment-type product policy fees — amortization of unearned revenue related to net investment gains (losses) and net derivatives gains (losses) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Net investment income: | ||||||||||||||||||||||||||||||||||||||
Scheduled periodic settlement payments on derivatives not qualifying for hedge accounting | (5 | ) | (7 | ) | (7 | ) | (8 | ) | (12 | ) | (13 | ) | (27 | ) | ||||||||||||||||||||||||
Equity method operating joint ventures | (35 | ) | (45 | ) | (5 | ) | (97 | ) | — | (111 | ) | (102 | ) | |||||||||||||||||||||||||
Real estate discontinued operations | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Net investment income related to certain consolidated securitization entities | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Policyholder benefits and policyholder dividends: | ||||||||||||||||||||||||||||||||||||||
Changes in policyholder dividend obligations related to net investment gains (losses) and net derivatives gains (losses) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Changes in asset value fluctuations related to experience-rated contractholder liabilities and certain inflation-indexed liabilities | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Interest credited to policyholder account balances — scheduled periodic settlement payments on derivatives not qualifying for hedge accounting | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Amortization of DAC and VOBA — related to net investment gains (losses) and net derivatives gains (losses) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Interest expense — related to certain consolidated securitization entities | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Other expenses: | ||||||||||||||||||||||||||||||||||||||
Noncontrolling interest | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Business combination costs | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Provision for income tax (expense) benefit | 198 | 112 | 10 | (145 | ) | 136 | 259 | 1 | ||||||||||||||||||||||||||||||
Income (loss) from continuing operations, net of income tax | (315 | ) | (191 | ) | 98 | 98 | (155 | ) | (289 | ) | 41 | |||||||||||||||||||||||||||
Income (loss) from discontinued operations, net of income tax | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Net income (loss) | (315 | ) | (191 | ) | 98 | 98 | (155 | ) | (289 | ) | 41 | |||||||||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interest | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Net income (loss) attributable to MetLife, Inc. | (315 | ) | (191 | ) | 98 | 98 | (155 | ) | (289 | ) | 41 | |||||||||||||||||||||||||||
Less: Preferred stock dividends | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Net income (loss) available to MetLife, Inc.’s common shareholders | $ | (315 | ) | $ | (191 | ) | $ | 98 | $ | 98 | $ | (155 | ) | $ | (289 | ) | $ | 41 | ||||||||||||||||||||
Premiums, Fees and Other Revenues | $ | 431 | $ | 512 | $ | 454 | $ | 488 | $ | 478 | $ | 1,204 | $ | 1,420 | ||||||||||||||||||||||||
Actual Number of Sales Representatives | 5,508 | 6,192 | 5,990 | 6,101 | 6,564 | |||||||||||||||||||||||||||||||||
33
![(METLIFE LOGO)](https://capedge.com/proxy/8-K/0000950123-10-097569/y87340y8734003.gif)
INTERNATIONAL — EUROPE/MIDDLE EAST/INDIA REGION
STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
For the Three Months Ended | For the Year-to-Date Period Ended | |||||||||||||||||||||||||||||||||||||
Unaudited (In millions) | September 30, 2009 | December 31, 2009 | March 31, 2010 | June 30, 2010 | September 30, 2010 | September 30, 2009 | September 30, 2010 | |||||||||||||||||||||||||||||||
OPERATING REVENUES | ||||||||||||||||||||||||||||||||||||||
Premiums | $ | 95 | $ | 111 | $ | 105 | $ | 82 | $ | 87 | $ | 261 | $ | 274 | ||||||||||||||||||||||||
Universal life and investment-type product policy fees | 11 | 17 | 21 | 23 | 26 | 35 | 70 | |||||||||||||||||||||||||||||||
Net investment income | 76 | 21 | 53 | (13 | ) | 79 | 96 | 119 | ||||||||||||||||||||||||||||||
Other revenues | 1 | 3 | — | 1 | 2 | 2 | 3 | |||||||||||||||||||||||||||||||
Total operating revenues | 183 | 152 | 179 | 93 | 194 | 394 | 466 | |||||||||||||||||||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||||||||||||||||
Policyholder benefits and dividends | 29 | 46 | 44 | 25 | 41 | 75 | 110 | |||||||||||||||||||||||||||||||
Interest credited to policyholder account balances | 72 | 19 | 47 | (19 | ) | 72 | 81 | 100 | ||||||||||||||||||||||||||||||
Interest credited to bank deposits | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Capitalization of DAC | (36 | ) | (46 | ) | (51 | ) | (26 | ) | (30 | ) | (112 | ) | (107 | ) | ||||||||||||||||||||||||
Amortization of DAC and VOBA | 8 | 11 | 12 | 13 | 10 | 31 | 35 | |||||||||||||||||||||||||||||||
Interest expense | 1 | 1 | 1 | — | — | 3 | 1 | |||||||||||||||||||||||||||||||
Other expenses | 121 | 150 | 135 | 116 | 110 | 357 | 361 | |||||||||||||||||||||||||||||||
Total operating expenses | 195 | 181 | 188 | 109 | 203 | 435 | 500 | |||||||||||||||||||||||||||||||
Operating earnings before provision for income tax | (12 | ) | (29 | ) | (9 | ) | (16 | ) | (9 | ) | (41 | ) | (34 | ) | ||||||||||||||||||||||||
Provision for income tax expense (benefit) | (2 | ) | (6 | ) | (1 | ) | (2 | ) | (7 | ) | (5 | ) | (10 | ) | ||||||||||||||||||||||||
Operating earnings | (10 | ) | (23 | ) | (8 | ) | (14 | ) | (2 | ) | (36 | ) | (24 | ) | ||||||||||||||||||||||||
Preferred stock dividends | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS | $ | (10 | ) | $ | (23 | ) | $ | (8 | ) | $ | (14 | ) | $ | (2 | ) | $ | (36 | ) | $ | (24 | ) | |||||||||||||||||
Net Income Reconciliation | ||||||||||||||||||||||||||||||||||||||
Operating earnings | $ | (10 | ) | $ | (23 | ) | $ | (8 | ) | $ | (14 | ) | $ | (2 | ) | $ | (36 | ) | $ | (24 | ) | |||||||||||||||||
Adjustments from operating earnings to income (loss) from continuing operations, net of income tax: | ||||||||||||||||||||||||||||||||||||||
Net investment gains (losses) | 1 | (1 | ) | (40 | ) | 1 | (5 | ) | 4 | (44 | ) | |||||||||||||||||||||||||||
Net derivatives gains (losses) | 3 | — | (2 | ) | (2 | ) | (4 | ) | 5 | (8 | ) | |||||||||||||||||||||||||||
Universal life and investment-type product policy fees — amortization of unearned revenue related to net investment gains (losses) and net derivatives gains (losses) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Net investment income: | ||||||||||||||||||||||||||||||||||||||
Scheduled periodic settlement payments on derivatives not qualifying for hedge accounting | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Equity method operating joint ventures | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Real estate discontinued operations | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Net investment income related to certain consolidated securitization entities | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Policyholder benefits and policyholder dividends: | ||||||||||||||||||||||||||||||||||||||
Changes in policyholder dividend obligations related to net investment gains (losses) and net derivatives gains (losses) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Changes in asset value fluctuations related to experience-rated contractholder liabilities and certain inflation-indexed liabilities | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Interest credited to policyholder account balances — scheduled periodic settlement payments on derivatives not qualifying for hedge accounting | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Amortization of DAC and VOBA — related to net investment gains (losses) and net derivatives gains (losses) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Interest expense — related to certain consolidated securitization entities | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Other expenses: | ||||||||||||||||||||||||||||||||||||||
Noncontrolling interest | (7 | ) | (11 | ) | (3 | ) | (8 | ) | 4 | (21 | ) | (7 | ) | |||||||||||||||||||||||||
Business combination costs | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Provision for income tax (expense) benefit | (1 | ) | — | 1 | 1 | — | (2 | ) | 2 | |||||||||||||||||||||||||||||
Income (loss) from continuing operations, net of income tax | (14 | ) | (35 | ) | (52 | ) | (22 | ) | (7 | ) | (50 | ) | (81 | ) | ||||||||||||||||||||||||
Income (loss) from discontinued operations, net of income tax | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Net income (loss) | (14 | ) | (35 | ) | (52 | ) | (22 | ) | (7 | ) | (50 | ) | (81 | ) | ||||||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interest | (5 | ) | (9 | ) | (2 | ) | (8 | ) | 4 | (19 | ) | (6 | ) | |||||||||||||||||||||||||
Net income (loss) attributable to MetLife, Inc. | (9 | ) | (26 | ) | (50 | ) | (14 | ) | (11 | ) | (31 | ) | (75 | ) | ||||||||||||||||||||||||
Less: Preferred stock dividends | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Net income (loss) available to MetLife, Inc.’s common shareholders | $ | (9 | ) | $ | (26 | ) | $ | (50 | ) | $ | (14 | ) | $ | (11 | ) | $ | (31 | ) | $ | (75 | ) | |||||||||||||||||
Premiums, Fees and Other Revenues | $ | 107 | $ | 131 | $ | 126 | $ | 106 | $ | 115 | $ | 298 | $ | 347 | ||||||||||||||||||||||||
Actual Number of Sales Representatives | — | — | — | — | — | |||||||||||||||||||||||||||||||||
34
![(METLIFE LOGO)](https://capedge.com/proxy/8-K/0000950123-10-097569/y87340y8734003.gif)
BANKING, CORPORATE & OTHER
STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
For the Three Months Ended | For the Year-to-Date Period Ended | |||||||||||||||||||||||||||||||||||||
September 30, | December 31, | March 31, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||||||||||||||||||
Unaudited (In millions) | 2009 | 2009 | 2010 | 2010 | 2010 | 2009 | 2010 | |||||||||||||||||||||||||||||||
OPERATING REVENUES | ||||||||||||||||||||||||||||||||||||||
Premiums | $ | 5 | $ | 8 | $ | — | $ | 3 | $ | 3 | $ | 11 | $ | 6 | ||||||||||||||||||||||||
Universal life and investment-type product policy fees | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Net investment income | 120 | 171 | 243 | 223 | 225 | 306 | 691 | |||||||||||||||||||||||||||||||
Other revenues | 274 | 270 | 213 | 231 | 309 | 822 | 753 | |||||||||||||||||||||||||||||||
Total operating revenues | 399 | 449 | 456 | 457 | 537 | 1,139 | 1,450 | |||||||||||||||||||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||||||||||||||||
Policyholder benefits and dividends | — | 1 | (5 | ) | (2 | ) | (4 | ) | 3 | (11 | ) | |||||||||||||||||||||||||||
Interest credited to policyholder account balances | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Interest credited to bank deposits | 37 | 43 | 39 | 36 | 33 | 120 | 108 | |||||||||||||||||||||||||||||||
Capitalization of DAC | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Amortization of DAC and VOBA | — | 1 | — | — | (1 | ) | 2 | (1 | ) | |||||||||||||||||||||||||||||
Interest expense | 270 | 265 | 261 | 262 | 292 | 762 | 815 | |||||||||||||||||||||||||||||||
Other expenses | 297 | 421 | 274 | 273 | 278 | 915 | 825 | |||||||||||||||||||||||||||||||
Total operating expenses | 604 | 731 | 569 | 569 | 598 | 1,802 | 1,736 | |||||||||||||||||||||||||||||||
Operating earnings before provision for income tax | (205 | ) | (282 | ) | (113 | ) | (112 | ) | (61 | ) | (663 | ) | (286 | ) | ||||||||||||||||||||||||
Provision for income tax expense (benefit) | (167 | ) | (203 | ) | (69 | ) | (102 | ) | (14 | ) | (414 | ) | (185 | ) | ||||||||||||||||||||||||
Operating earnings | (38 | ) | (79 | ) | (44 | ) | (10 | ) | (47 | ) | (249 | ) | (101 | ) | ||||||||||||||||||||||||
Preferred stock dividends | 30 | 31 | 30 | 31 | 30 | 91 | 91 | |||||||||||||||||||||||||||||||
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS | $ | (68 | ) | $ | (110 | ) | $ | (74 | ) | $ | (41 | ) | $ | (77 | ) | $ | (340 | ) | $ | (192 | ) | |||||||||||||||||
Net Income Reconciliation | ||||||||||||||||||||||||||||||||||||||
Operating earnings | $ | (38 | ) | $ | (79 | ) | $ | (44 | ) | $ | (10 | ) | $ | (47 | ) | $ | (249 | ) | $ | (101 | ) | |||||||||||||||||
Adjustments from operating earnings to income (loss) from continuing operations, net of income tax: | ||||||||||||||||||||||||||||||||||||||
Net investment gains (losses) | (172 | ) | 1 | (8 | ) | (102 | ) | (228 | ) | (270 | ) | (338 | ) | |||||||||||||||||||||||||
Net derivatives gains (losses) | (345 | ) | (30 | ) | (19 | ) | 72 | (140 | ) | (444 | ) | (87 | ) | |||||||||||||||||||||||||
Universal life and investment-type product policy fees — amortization of unearned revenue related to net investment gains (losses) and net derivatives gains (losses) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Net investment income: | ||||||||||||||||||||||||||||||||||||||
Scheduled periodic settlement payments on derivatives not qualifying for hedge accounting | 12 | 9 | 8 | 8 | 4 | 13 | 20 | |||||||||||||||||||||||||||||||
Equity method operating joint ventures | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Real estate discontinued operations | — | — | — | — | 13 | — | 13 | |||||||||||||||||||||||||||||||
Net investment income related to certain consolidated securitization entities | — | — | 106 | 103 | 103 | — | 312 | |||||||||||||||||||||||||||||||
Policyholder benefits and policyholder dividends: | ||||||||||||||||||||||||||||||||||||||
Changes in policyholder dividend obligations related to net investment gains (losses) and net derivatives gains (losses) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Changes in asset value fluctuations related to experience-rated contractholder liabilities and certain inflation-indexed liabilities | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Interest credited to policyholder account balances — scheduled periodic settlement payments on derivatives not qualifying for hedge accounting | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Amortization of DAC and VOBA — related to net investment gains (losses) and net derivatives gains (losses) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Interest expense — related to certain consolidated securitization entities | — | — | (106 | ) | (103 | ) | (103 | ) | — | (312 | ) | |||||||||||||||||||||||||||
Other expenses: | ||||||||||||||||||||||||||||||||||||||
Noncontrolling interest | — | 2 | 1 | (5 | ) | — | (9 | ) | (4 | ) | ||||||||||||||||||||||||||||
Business combination costs | (22 | ) | 2 | (29 | ) | (36 | ) | (46 | ) | (33 | ) | (111 | ) | |||||||||||||||||||||||||
Provision for income tax (expense) benefit | 187 | 89 | 17 | 24 | 136 | 265 | 177 | |||||||||||||||||||||||||||||||
Income (loss) from continuing operations, net of income tax | (378 | ) | (6 | ) | (74 | ) | (49 | ) | (308 | ) | (727 | ) | (431 | ) | ||||||||||||||||||||||||
Income (loss) from discontinued operations, net of income tax | (2 | ) | (4 | ) | — | — | (3 | ) | 10 | (3 | ) | |||||||||||||||||||||||||||
Net income (loss) | (380 | ) | (10 | ) | (74 | ) | (49 | ) | (311 | ) | (717 | ) | (434 | ) | ||||||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interest | — | 1 | 1 | (3 | ) | — | (6 | ) | (2 | ) | ||||||||||||||||||||||||||||
Net income (loss) attributable to MetLife, Inc. | (380 | ) | (11 | ) | (75 | ) | (46 | ) | (311 | ) | (711 | ) | (432 | ) | ||||||||||||||||||||||||
Less: Preferred stock dividends | 30 | 31 | 30 | 31 | 30 | 91 | 91 | |||||||||||||||||||||||||||||||
Net income (loss) available to MetLife, Inc.’s common shareholders | $ | (410 | ) | $ | (42 | ) | $ | (105 | ) | $ | (77 | ) | $ | (341 | ) | $ | (802 | ) | $ | (523 | ) | |||||||||||||||||
Premiums, Fees and Other Revenues | $ | 279 | $ | 278 | $ | 213 | $ | 234 | $ | 312 | $ | 833 | $ | 759 | ||||||||||||||||||||||||
35
![(METLIFE LOGO)](https://capedge.com/proxy/8-K/0000950123-10-097569/y87340y8734003.gif)
BANKING, CORPORATE & OTHER — BANKING
STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
For the Three Months Ended | For the Year-to-Date Period Ended | |||||||||||||||||||||||||||||||||||||
September 30, | December 31, | March 31, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||||||||||||||||||
Unaudited (In millions) | 2009 | 2009 | 2010 | 2010 | 2010 | 2009 | 2010 | |||||||||||||||||||||||||||||||
OPERATING REVENUES | ||||||||||||||||||||||||||||||||||||||
Premiums | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||||
Universal life and investment-type product policy fees | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Net investment income | 115 | 119 | 108 | 113 | 117 | 365 | 338 | |||||||||||||||||||||||||||||||
Other revenues | 264 | 258 | 191 | 224 | 293 | 790 | 708 | |||||||||||||||||||||||||||||||
Total operating revenues | 379 | 377 | 299 | 337 | 410 | 1,155 | 1,046 | |||||||||||||||||||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||||||||||||||||
Policyholder benefits and dividends | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Interest credited to policyholder account balances | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Interest credited to bank deposits | 37 | 43 | 39 | 36 | 33 | 120 | 108 | |||||||||||||||||||||||||||||||
Capitalization of DAC | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Amortization of DAC and VOBA | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Interest expense | 16 | 13 | 12 | 12 | 17 | 43 | 41 | |||||||||||||||||||||||||||||||
Other expenses | 178 | 214 | 160 | 179 | 193 | 609 | 532 | |||||||||||||||||||||||||||||||
Total operating expenses | 231 | 270 | 211 | 227 | 243 | 772 | 681 | |||||||||||||||||||||||||||||||
Operating earnings before provision for income tax | 148 | 107 | 88 | 110 | 167 | 383 | 365 | |||||||||||||||||||||||||||||||
Provision for income tax expense (benefit) | 68 | 42 | 35 | 43 | 66 | 150 | 144 | |||||||||||||||||||||||||||||||
Operating earnings | 80 | 65 | 53 | 67 | 101 | 233 | 221 | |||||||||||||||||||||||||||||||
Preferred stock dividends | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS | $ | 80 | $ | 65 | $ | 53 | $ | 67 | $ | 101 | $ | 233 | $ | 221 | ||||||||||||||||||||||||
Net Income Reconciliation | ||||||||||||||||||||||||||||||||||||||
Operating earnings | $ | 80 | $ | 65 | $ | 53 | $ | 67 | $ | 101 | $ | 233 | $ | 221 | ||||||||||||||||||||||||
Adjustments from operating earnings to income (loss) from continuing operations, net of income tax: | ||||||||||||||||||||||||||||||||||||||
Net investment gains (losses) | (35 | ) | (17 | ) | (5 | ) | (7 | ) | (18 | ) | (112 | ) | (30 | ) | ||||||||||||||||||||||||
Net derivatives gains (losses) | (7 | ) | (1 | ) | (7 | ) | (32 | ) | (9 | ) | — | (48 | ) | |||||||||||||||||||||||||
Universal life and investment-type product policy fees — amortization of unearned revenue related to net investment gains (losses) and net derivatives gains (losses) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Net investment income: | ||||||||||||||||||||||||||||||||||||||
Scheduled periodic settlement payments on derivatives not qualifying for hedge accounting | — | 1 | — | — | — | 1 | — | |||||||||||||||||||||||||||||||
Equity method operating joint ventures | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Real estate discontinued operations | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Net investment income related to certain consolidated securitization entities | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Policyholder benefits and policyholder dividends: | ||||||||||||||||||||||||||||||||||||||
Changes in policyholder dividend obligations related to net investment gains (losses) and net derivatives gains (losses) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Changes in asset value fluctuations related to experience-rated contractholder liabilities and certain inflation-indexed liabilities | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Interest credited to policyholder account balances — scheduled periodic settlement payments on derivatives not qualifying for hedge accounting | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Amortization of DAC and VOBA — related to net investment gains (losses) and net derivatives gains (losses) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Interest expense — related to certain consolidated securitization entities | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Other expenses: | ||||||||||||||||||||||||||||||||||||||
Noncontrolling interest | — | 1 | — | 1 | (1 | ) | 1 | — | ||||||||||||||||||||||||||||||
Business combination costs | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Provision for income tax (expense) benefit | 19 | 8 | 5 | 15 | 11 | 43 | 31 | |||||||||||||||||||||||||||||||
Income (loss) from continuing operations, net of income tax | 57 | 57 | 46 | 44 | 84 | 166 | 174 | |||||||||||||||||||||||||||||||
Income (loss) from discontinued operations, net of income tax | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Net income (loss) | 57 | 57 | 46 | 44 | 84 | 166 | 174 | |||||||||||||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interest | — | — | — | 1 | (1 | ) | 1 | — | ||||||||||||||||||||||||||||||
Net income (loss) attributable to MetLife, Inc. | 57 | 57 | 46 | 43 | 85 | 165 | 174 | |||||||||||||||||||||||||||||||
Less: Preferred stock dividends | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Net income (loss) available to MetLife, Inc.’s common shareholders | $ | 57 | $ | 57 | $ | 46 | $ | 43 | $ | 85 | $ | 165 | $ | 174 | ||||||||||||||||||||||||
Premiums, Fees and Other Revenues | $ | 264 | $ | 258 | $ | 191 | $ | 224 | $ | 293 | $ | 790 | $ | 708 | ||||||||||||||||||||||||
36
![(METLIFE LOGO)](https://capedge.com/proxy/8-K/0000950123-10-097569/y87340y8734003.gif)
BANKING, CORPORATE & OTHER — CORPORATE & OTHER
STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
For the Three Months Ended | For the Year-to-Date Period Ended | |||||||||||||||||||||||||||||||||||||
September 30, | December 31, | March 31, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||||||||||||||||||
Unaudited (In millions) | 2009 | 2009 | 2010 | 2010 | 2010 | 2009 | 2010 | |||||||||||||||||||||||||||||||
OPERATING REVENUES | ||||||||||||||||||||||||||||||||||||||
Premiums | $ | 5 | $ | 8 | $ | — | $ | 3 | $ | 3 | $ | 11 | $ | 6 | ||||||||||||||||||||||||
Universal life and investment-type product policy fees | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Net investment income | 5 | 52 | 135 | 110 | 108 | (59 | ) | 353 | ||||||||||||||||||||||||||||||
Other revenues | 10 | 12 | 22 | 7 | 16 | 32 | 45 | |||||||||||||||||||||||||||||||
Total operating revenues | 20 | 72 | 157 | 120 | 127 | (16 | ) | 404 | ||||||||||||||||||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||||||||||||||||
Policyholder benefits and dividends | — | 1 | (5 | ) | (2 | ) | (4 | ) | 3 | (11 | ) | |||||||||||||||||||||||||||
Interest credited to policyholder account balances | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Interest credited to bank deposits | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Capitalization of DAC | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Amortization of DAC and VOBA | — | 1 | — | — | (1 | ) | 2 | (1 | ) | |||||||||||||||||||||||||||||
Interest expense | 254 | 252 | 249 | 250 | 275 | 719 | 774 | |||||||||||||||||||||||||||||||
Other expenses | 119 | 207 | 114 | 94 | 85 | 306 | 293 | |||||||||||||||||||||||||||||||
Total operating expenses | 373 | 461 | 358 | 342 | 355 | 1,030 | 1,055 | |||||||||||||||||||||||||||||||
Operating earnings before provision for income tax | (353 | ) | (389 | ) | (201 | ) | (222 | ) | (228 | ) | (1,046 | ) | (651 | ) | ||||||||||||||||||||||||
Provision for income tax expense (benefit) | (235 | ) | (245 | ) | (104 | ) | (145 | ) | (80 | ) | (564 | ) | (329 | ) | ||||||||||||||||||||||||
Operating earnings | (118 | ) | (144 | ) | (97 | ) | (77 | ) | (148 | ) | (482 | ) | (322 | ) | ||||||||||||||||||||||||
Preferred stock dividends | 30 | 31 | 30 | 31 | 30 | 91 | 91 | |||||||||||||||||||||||||||||||
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS | $ | (148 | ) | $ | (175 | ) | $ | (127 | ) | $ | (108 | ) | $ | (178 | ) | $ | (573 | ) | $ | (413 | ) | |||||||||||||||||
Net Income Reconciliation | ||||||||||||||||||||||||||||||||||||||
Operating earnings | $ | (118 | ) | $ | (144 | ) | $ | (97 | ) | $ | (77 | ) | $ | (148 | ) | $ | (482 | ) | $ | (322 | ) | |||||||||||||||||
Adjustments from operating earnings to income (loss) from continuing operations, net of income tax: | ||||||||||||||||||||||||||||||||||||||
Net investment gains (losses) | (137 | ) | 18 | (3 | ) | (95 | ) | (210 | ) | (158 | ) | (308 | ) | |||||||||||||||||||||||||
Net derivatives gains (losses) | (338 | ) | (29 | ) | (12 | ) | 104 | (131 | ) | (444 | ) | (39 | ) | |||||||||||||||||||||||||
Universal life and investment-type product policy fees — amortization of unearned revenue related to net investment gains (losses) and net derivatives gains (losses) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Net investment income: | ||||||||||||||||||||||||||||||||||||||
Scheduled periodic settlement payments on derivatives not qualifying for hedge accounting | 12 | 8 | 8 | 8 | 4 | 12 | 20 | |||||||||||||||||||||||||||||||
Equity method operating joint ventures | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Real estate discontinued operations | — | — | — | — | 13 | — | 13 | |||||||||||||||||||||||||||||||
Net investment income related to certain consolidated securitization entities | — | — | 106 | 103 | 103 | — | 312 | |||||||||||||||||||||||||||||||
Policyholder benefits and policyholder dividends: | ||||||||||||||||||||||||||||||||||||||
Changes in policyholder dividend obligations related to net investment gains (losses) and net derivatives gains (losses) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Changes in asset value fluctuations related to experience-rated contractholder liabilities and certain inflation-indexed liabilities | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Interest credited to policyholder account balances — scheduled periodic settlement payments on derivatives not qualifying for hedge accounting | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Amortization of DAC and VOBA — related to net investment gains (losses) and net derivatives gains (losses) | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||
Interest expense — related to certain consolidated securitization entities | — | — | (106 | ) | (103 | ) | (103 | ) | — | (312 | ) | |||||||||||||||||||||||||||
Other expenses: | ||||||||||||||||||||||||||||||||||||||
Noncontrolling interest | — | 1 | 1 | (6 | ) | 1 | (10 | ) | (4 | ) | ||||||||||||||||||||||||||||
Business combination costs | (22 | ) | 2 | (29 | ) | (36 | ) | (46 | ) | (33 | ) | (111 | ) | |||||||||||||||||||||||||
Provision for income tax (expense) benefit | 168 | 81 | 12 | 9 | 125 | 222 | 146 | |||||||||||||||||||||||||||||||
Income (loss) from continuing operations, net of income tax | (435 | ) | (63 | ) | (120 | ) | (93 | ) | (392 | ) | (893 | ) | (605 | ) | ||||||||||||||||||||||||
Income (loss) from discontinued operations, net of income tax | (2 | ) | (4 | ) | — | — | (3 | ) | 10 | (3 | ) | |||||||||||||||||||||||||||
Net income (loss) | (437 | ) | (67 | ) | (120 | ) | (93 | ) | (395 | ) | (883 | ) | (608 | ) | ||||||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interest | — | 1 | 1 | (4 | ) | 1 | (7 | ) | (2 | ) | ||||||||||||||||||||||||||||
Net income (loss) attributable to MetLife, Inc. | (437 | ) | (68 | ) | (121 | ) | (89 | ) | (396 | ) | (876 | ) | (606 | ) | ||||||||||||||||||||||||
Less: Preferred stock dividends | 30 | 31 | 30 | 31 | 30 | 91 | 91 | |||||||||||||||||||||||||||||||
Net income (loss) available to MetLife, Inc.’s common shareholders | $ | (467 | ) | $ | (99 | ) | $ | (151 | ) | $ | (120 | ) | $ | (426 | ) | $ | (967 | ) | $ | (697 | ) | |||||||||||||||||
Premiums, Fees and Other Revenues | $ | 15 | $ | 20 | $ | 22 | $ | 10 | $ | 19 | $ | 43 | $ | 51 | ||||||||||||||||||||||||
37
![(METLIFE LOGO)](https://capedge.com/proxy/8-K/0000950123-10-097569/y87340y8734003.gif)
BANKING, CORPORATE & OTHER — BANKING (1), (2)
SUPPLEMENTAL INFORMATION
At or For the Three Months Ended | At or For the Year-to-Date Period Ended | |||||||||||||||||||||||||||||||||||||
September 30, | December 31, | March 31, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||||||||||||||||||
Unaudited (In millions, except ratios) | 2009 | 2009 | 2010 | 2010 | 2010 | 2009 | 2010 | |||||||||||||||||||||||||||||||
The following supplemental information for MetLife Bank is presented in accordance with Banking Standards: | ||||||||||||||||||||||||||||||||||||||
Income Statement | ||||||||||||||||||||||||||||||||||||||
Net interest income, net of interest expense | $ | 66 | $ | 64 | $ | 58 | $ | 64 | $ | 67 | $ | 199 | $ | 189 | ||||||||||||||||||||||||
Provision for credit losses | (27 | ) | 6 | (4 | ) | — | (11 | ) | (83 | ) | (15 | ) | ||||||||||||||||||||||||||
Non interest income | 248 | 242 | 185 | 192 | 281 | 771 | 658 | |||||||||||||||||||||||||||||||
Non interest expense | (181 | ) | (220 | ) | (163 | ) | (185 | ) | (197 | ) | (615 | ) | (545 | ) | ||||||||||||||||||||||||
Income before taxes | 106 | 92 | 76 | 71 | 140 | 272 | 287 | |||||||||||||||||||||||||||||||
Income tax expense | 49 | 35 | 30 | 28 | 55 | 107 | 113 | |||||||||||||||||||||||||||||||
Net income (loss) available to MetLife, Inc.’s common shareholders | $ | 57 | $ | 57 | $ | 46 | $ | 43 | $ | 85 | $ | 165 | $ | 174 | ||||||||||||||||||||||||
Selected Balance Sheet Accounts | ||||||||||||||||||||||||||||||||||||||
Loans Held-for-Investment: | ||||||||||||||||||||||||||||||||||||||
Commercial Loans & Mortgages | $ | 1,965 | $ | 2,079 | $ | 2,104 | $ | 2,113 | $ | 2,320 | ||||||||||||||||||||||||||||
Consumer | 805 | 834 | 938 | 1,194 | 1,289 | |||||||||||||||||||||||||||||||||
Agriculture | 176 | 173 | 174 | 189 | 215 | |||||||||||||||||||||||||||||||||
Total Loans | 2,946 | 3,086 | 3,216 | 3,496 | 3,824 | |||||||||||||||||||||||||||||||||
Allowance for Loan Losses | (101 | ) | (93 | ) | (73 | ) | (71 | ) | (62 | ) | ||||||||||||||||||||||||||||
Total Loans Held-for-Investments (Net) | $ | 2,845 | $ | 2,993 | $ | 3,143 | $ | 3,425 | $ | 3,762 | ||||||||||||||||||||||||||||
Net Charge-offs | $ | 13 | $ | 2 | $ | 24 | $ | 1 | $ | 20 | $ | 13 | $ | 45 | ||||||||||||||||||||||||
Loans Held-for-Sale | $ | 2,442 | $ | 2,728 | $ | 2,003 | $ | 2,629 | $ | 2,837 | ||||||||||||||||||||||||||||
Total Assets | $ | 13,140 | $ | 14,107 | $ | 13,573 | $ | 14,549 | $ | 16,576 | ||||||||||||||||||||||||||||
Total Deposits | $ | 8,372 | $ | 10,211 | $ | 10,032 | $ | 9,790 | $ | 9,362 | ||||||||||||||||||||||||||||
Key Ratios & Statistics | ||||||||||||||||||||||||||||||||||||||
Tier 1 Common Equity | $ | 859 | $ | 897 | $ | 947 | $ | 1,011 | $ | 1,093 | ||||||||||||||||||||||||||||
Tier 1 Capital | $ | 860 | $ | 898 | $ | 948 | $ | 1,013 | $ | 1,093 | ||||||||||||||||||||||||||||
Risk Weighted Assets | $ | 6,796 | $ | 7,381 | $ | 6,909 | $ | 7,221 | $ | 8,069 | ||||||||||||||||||||||||||||
Tier 1 Common Equity Ratio | 12.64 | % | 12.15 | % | 13.71 | % | 14.00 | % | 13.54 | % | ||||||||||||||||||||||||||||
Tier 1 Capital Ratio | 12.65 | % | 12.16 | % | 13.73 | % | 14.03 | % | 13.54 | % | ||||||||||||||||||||||||||||
Total Capital Ratio | 13.90 | % | 13.41 | % | 14.83 | % | 15.06 | % | 14.34 | % | ||||||||||||||||||||||||||||
Tier 1 Leverage | 6.37 | % | 6.64 | % | 7.05 | % | 7.38 | % | 7.27 | % | ||||||||||||||||||||||||||||
Net Interest Margin | 2.20 | % | 1.98 | % | 1.91 | % | 2.02 | % | 1.94 | % | 2.22 | % | 1.95 | % | ||||||||||||||||||||||||
Allowance / Total Loans | 3.44 | % | 3.01 | % | 2.27 | % | 2.04 | % | 1.63 | % | ||||||||||||||||||||||||||||
Allowance / Non Performing Assets | 135.94 | % | 113.00 | % | 162.00 | % | 176.00 | % | 144.00 | % | ||||||||||||||||||||||||||||
(1) | All amounts on this page relate to MetLife Bank only. | |
(2) | Current period numbers are preliminary, subject to regulatory filing on October 29, 2010. |
38
![(METLIFE LOGO)](https://capedge.com/proxy/8-K/0000950123-10-097569/y87340y8734003.gif)
METLIFE, INC.
INVESTMENT PORTFOLIO RESULTS BY ASSET CATEGORY AND ANNUALIZED YIELDS
At or For the Three Months Ended | |||||||||||||||||||||||
September 30, | December 31, | March 31, | June 30, | September 30, | |||||||||||||||||||
Unaudited (In millions) | 2009 | 2009 | 2010 | 2010 | 2010 | ||||||||||||||||||
Fixed Maturity Securities | |||||||||||||||||||||||
Yield (1) | 5.89 | % | 5.59 | % | 5.73 | % | 5.33 | % | 5.79 | % | |||||||||||||
Investment income (2), (3) | $ | 3,090 | $ | 2,973 | $ | 3,134 | $ | 2,959 | $ | 3,257 | |||||||||||||
Investment gains (losses) (3) | (455 | ) | (221 | ) | (67 | ) | (126 | ) | (65 | ) | |||||||||||||
Ending carrying value (2), (3) | 225,866 | 230,026 | 242,331 | 249,249 | 264,320 | ||||||||||||||||||
Mortgage Loans | |||||||||||||||||||||||
Yield (1) | 5.33 | % | 5.50 | % | 5.40 | % | 5.55 | % | 5.54 | % | |||||||||||||
Investment income (3), (4) | 675 | 686 | 672 | 695 | 712 | ||||||||||||||||||
Investment gains (losses) (3) | (129 | ) | (42 | ) | (28 | ) | 11 | 37 | |||||||||||||||
Ending carrying value (3) | 50,681 | 50,909 | 50,371 | 51,144 | 52,845 | ||||||||||||||||||
Real Estate and Real Estate Joint Ventures | |||||||||||||||||||||||
Yield (1) | (6.09 | %) | (5.64 | %) | (2.11 | %) | 3.15 | % | 2.80 | % | |||||||||||||
Investment income | (109 | ) | (98 | ) | (36 | ) | 54 | 48 | |||||||||||||||
Investment gains (losses) (3) | (70 | ) | 7 | (22 | ) | (17 | ) | (1 | ) | ||||||||||||||
Ending carrying value | 7,032 | 6,896 | 6,866 | 6,841 | 6,990 | ||||||||||||||||||
Policy Loans | |||||||||||||||||||||||
Yield (1) | 6.56 | % | 6.67 | % | 7.04 | % | 6.25 | % | 6.18 | % | |||||||||||||
Investment income | 163 | 167 | 178 | 159 | 157 | ||||||||||||||||||
Ending carrying value | 10,001 | 10,061 | 10,146 | 10,180 | 10,230 | ||||||||||||||||||
Equity Securities | |||||||||||||||||||||||
Yield (1) | 4.50 | % | 6.13 | % | 3.39 | % | 5.40 | % | 2.74 | % | |||||||||||||
Investment income | 37 | 47 | 25 | 39 | 19 | ||||||||||||||||||
Investment gains (losses) | (53 | ) | 31 | 27 | 74 | (1 | ) | ||||||||||||||||
Ending carrying value | 3,117 | 3,084 | 3,066 | 2,741 | 2,865 | ||||||||||||||||||
Other Limited Partnership Interests | |||||||||||||||||||||||
Yield (1) | 9.75 | % | 16.90 | % | 18.85 | % | 11.13 | % | 11.48 | % | |||||||||||||
Investment income | 127 | 227 | 265 | 161 | 170 | ||||||||||||||||||
Investment gains (losses) | (12 | ) | — | (1 | ) | (10 | ) | (4 | ) | ||||||||||||||
Ending carrying value | 5,255 | 5,508 | 5,753 | 5,856 | 5,948 | ||||||||||||||||||
Cash and Short-term Investments | |||||||||||||||||||||||
Yield (1) | 0.45 | % | 0.34 | % | 0.36 | % | 0.37 | % | 0.41 | % | |||||||||||||
Investment income | 20 | 14 | 13 | 15 | 20 | ||||||||||||||||||
Investment gains (losses) | 5 | 1 | 1 | — | — | ||||||||||||||||||
Ending carrying value (3) | 22,423 | 18,486 | 17,183 | 20,421 | 26,100 | ||||||||||||||||||
Other Invested Assets (5) | |||||||||||||||||||||||
Investment income | 54 | 95 | 154 | 166 | 75 | ||||||||||||||||||
Investment gains (losses) (3) | (31 | ) | 11 | 58 | 17 | (67 | ) | ||||||||||||||||
Ending carrying value | 13,916 | 12,709 | 12,327 | 15,584 | 16,571 | ||||||||||||||||||
Total Investments | |||||||||||||||||||||||
Investment income yield (1) | 5.14 | % | 5.21 | % | 5.53 | % | 5.23 | % | 5.31 | % | |||||||||||||
Investment fees and expenses yield | (0.13 | ) | (0.14 | ) | (0.14 | ) | (0.13 | ) | (0.14 | ) | |||||||||||||
Net Investment Income Yield | 5.01 | % | 5.07 | % | 5.39 | % | 5.10 | % | 5.17 | % | |||||||||||||
Investment income | 4,057 | 4,111 | 4,405 | 4,248 | 4,458 | ||||||||||||||||||
Investment fees and expenses | (101 | ) | (111 | ) | (112 | ) | (105 | ) | (121 | ) | |||||||||||||
Net Investment Income (3) | $ | 3,956 | $ | 4,000 | $ | 4,293 | $ | 4,143 | $ | 4,337 | |||||||||||||
Ending Carrying Value (3) | $ | 338,291 | $ | 337,679 | $ | 348,043 | $ | 362,016 | $ | 385,869 | |||||||||||||
Gross investment gains | $ | 327 | $ | 288 | $ | 274 | $ | 413 | $ | 212 | |||||||||||||
Gross investment losses | (411 | ) | (204 | ) | (157 | ) | (292 | ) | (215 | ) | |||||||||||||
Writedowns | (661 | ) | (297 | ) | (149 | ) | (172 | ) | (98 | ) | |||||||||||||
Investment Portfolio Gains (Losses) (3) | (745 | ) | (213 | ) | (32 | ) | (51 | ) | (101 | ) | |||||||||||||
Investment portfolio gains (losses) income tax benefit (provision) | 264 | 143 | 8 | 11 | 29 | ||||||||||||||||||
Investment Portfolio Gains (Losses), Net of Income Tax | (481 | ) | (70 | ) | (24 | ) | (40 | ) | (72 | ) | |||||||||||||
Derivatives Gains (Losses) (3) | (1,437 | ) | (855 | ) | (10 | ) | 1,322 | (311 | ) | ||||||||||||||
Derivatives gains (losses) income tax benefit (provision) | 491 | 298 | 11 | (540 | ) | 121 | |||||||||||||||||
Derivatives Gains (Losses), Net of Income Tax | $ | (946 | ) | $ | (557 | ) | $ | 1 | $ | 782 | $ | (190 | ) | ||||||||||
(1) | Yields are based on quarterly average asset carrying values, excluding recognized and unrealized investment gains (losses), and for yield calculation purposes, average of quarterly ending assets exclude collateral received from counterparties associated with the Company’s securities lending program and exclude the effects of consolidating under GAAP certain VIEs that are treated as consolidated securitization entities. | |
(2) | Fixed maturity securities includes $1,970 million, $2,384 million, $2,765 million, $2,901 million and $3,756 million in ending carrying value, and $163 million, $90 million, $79 million, ($56) million and $194 million of investment income related to trading securities at or for the three months ended September 30, 2009, December 31, 2009, March 31, 2010, June 30, 2010 and September 30, 2010, respectively. | |
(3) | Certain measures in this yield table vary from the most directly comparable measures presented in accordance with GAAP. The reconciliation of the yield table measures to the most directly comparable measures presented in accordance with GAAP are: 1) Ending carrying value adjustments for the effects of consolidating under GAAP certain VIEs that are treated as consolidated securitization entities which include trading securities (included within fixed maturity securities in the yield table above) of $274 million, $257 million and $231 million, mortgage loans of $7,065 million, $7,107 million and $7,093 million and cash and short-term investments of $38 million, $27 million and $47 million at March 31, 2010, June 30, 2010 and September 30, 2010, respectively; 2) Investment income and net investment income adjustments as presented on page 4 within the Net Income Reconciliation; 3) Investment portfolio gains (losses) presented in the above yield table and GAAP net investment gains (losses) adjustments as presented below; and 4) Derivatives gains (losses) presented in the above yield table and GAAP net derivatives gains (losses) adjustments as presented below: |
For the Three Months Ended | ||||||||||||||||||||
September 30, 2009 | December 31, 2009 | March 31, 2010 | June 30, 2010 | September 30, 2010 | ||||||||||||||||
Investment portfolio gains (losses) — in above yield table | $ | (745 | ) | $ | (213 | ) | $ | (32 | ) | $ | (51 | ) | $ | (101 | ) | |||||
Real estate discontinued operations | — | (8 | ) | — | (10 | ) | — | |||||||||||||
Net investment gains (losses) related to certain consolidated securitization entities | — | — | 10 | (2 | ) | 16 | ||||||||||||||
Other gains (losses) reported in net investment gains (losses) on GAAP basis | 13 | 105 | 53 | 50 | (257 | ) | ||||||||||||||
Net investment gains (losses) — GAAP basis | $ | (732 | ) | $ | (116 | ) | $ | 31 | $ | (13 | ) | $ | (342 | ) | ||||||
For the Three Months Ended | ||||||||||||||||||||
September 30, 2009 | December 31, 2009 | March 31, 2010 | June 30, 2010 | September 30, 2010 | ||||||||||||||||
Derivative gains (losses) — in above yield table | $ | (1,437 | ) | $ | (855 | ) | $ | (10 | ) | $ | 1,322 | $ | (311 | ) | ||||||
Scheduled periodic settlement payments on derivatives not qualifying for hedge accounting | (4 | ) | 29 | 49 | 61 | 62 | ||||||||||||||
Equity method operating joint ventures | 35 | 45 | 5 | 97 | — | |||||||||||||||
Interest credited to policyholder account balances — scheduled periodic settlement payments on derivatives not qualifying for hedge accounting | (1 | ) | (1 | ) | (3 | ) | 1 | 5 | ||||||||||||
Net derivatives gains (losses) — GAAP basis | $ | (1,407 | ) | $ | (782 | ) | $ | 41 | $ | 1,481 | $ | (244 | ) | |||||||
(4) | Investment income from mortgage loans includes prepayment fees. | |
(5) | Other invested assets is principally comprised of freestanding derivatives with positive estimated fair values and leveraged leases. Freestanding derivatives with negative estimated fair values are included within other liabilities. However, the accruals of settlement payments in other liabilities are included in net investment income for GAAP. As yield is not considered a meaningful measure of performance for other invested assets, it has been excluded from the above yield table. |
39
![(METLIFE LOGO)](https://capedge.com/proxy/8-K/0000950123-10-097569/y87340y8734003.gif)
METLIFE, INC.
INVESTMENT PORTFOLIO RESULTS BY ASSET CATEGORY AND ANNUALIZED YIELDS
INVESTMENT PORTFOLIO RESULTS BY ASSET CATEGORY AND ANNUALIZED YIELDS
At or For the Year-to-Date Period Ended | |||||||||||||||||||||||
September 30, | December 31, | March 31, | June 30, | September 30, | |||||||||||||||||||
Unaudited (In millions) | 2009 | 2009 | 2010 | 2010 | 2010 | ||||||||||||||||||
Fixed Maturity Securities | |||||||||||||||||||||||
Yield (1) | 5.83 | % | 5.77 | % | 5.73 | % | 5.53 | % | 5.62 | % | |||||||||||||
Investment income (2), (3) | $ | 8,926 | $ | 11,899 | $ | 3,134 | $ | 6,093 | $ | 9,350 | |||||||||||||
Investment gains (losses) (3) | (1,442 | ) | (1,663 | ) | (67 | ) | (193 | ) | (258 | ) | |||||||||||||
Ending carrying value (2), (3) | 225,866 | 230,026 | 242,331 | 249,249 | 264,320 | ||||||||||||||||||
Mortgage Loans | |||||||||||||||||||||||
Yield (1) | 5.34 | % | 5.38 | % | 5.40 | % | 5.47 | % | 5.49 | % | |||||||||||||
Investment income (3), (4) | 2,049 | 2,735 | 672 | 1,367 | 2,079 | ||||||||||||||||||
Investment gains (losses) (3) | (400 | ) | (442 | ) | (28 | ) | (17 | ) | 20 | ||||||||||||||
Ending carrying value (3) | 50,681 | 50,909 | 50,371 | 51,144 | 52,845 | ||||||||||||||||||
Real Estate and Real Estate Joint Ventures | |||||||||||||||||||||||
Yield (1) | (8.05 | %) | (7.47 | %) | (2.11 | %) | 0.52 | % | 1.28 | % | |||||||||||||
Investment income | (443 | ) | (541 | ) | (36 | ) | 18 | 66 | |||||||||||||||
Investment gains (losses) (3) | (163 | ) | (156 | ) | (22 | ) | (39 | ) | (40 | ) | |||||||||||||
Ending carrying value | 7,032 | 6,896 | 6,866 | 6,841 | 6,990 | ||||||||||||||||||
Policy Loans | |||||||||||||||||||||||
Yield (1) | 6.49 | % | 6.54 | % | 7.04 | % | 6.64 | % | 6.49 | % | |||||||||||||
Investment income | 481 | 648 | 178 | 337 | 494 | ||||||||||||||||||
Ending carrying value | 10,001 | 10,061 | 10,146 | 10,180 | 10,230 | ||||||||||||||||||
Equity Securities | |||||||||||||||||||||||
Yield (1) | 4.83 | % | 5.12 | % | 3.39 | % | 4.37 | % | 3.84 | % | |||||||||||||
Investment income | 128 | 175 | 25 | 64 | 83 | ||||||||||||||||||
Investment gains (losses) | (430 | ) | (399 | ) | 27 | 101 | 100 | ||||||||||||||||
Ending carrying value | 3,117 | 3,084 | 3,066 | 2,741 | 2,865 | ||||||||||||||||||
Other Limited Partnership Interests | |||||||||||||||||||||||
Yield (1) | (1.32 | %) | 3.22 | % | 18.85 | % | 14.93 | % | 13.75 | % | |||||||||||||
Investment income | (54 | ) | 173 | 265 | 426 | 596 | |||||||||||||||||
Investment gains (losses) | (356 | ) | (356 | ) | (1 | ) | (11 | ) | (15 | ) | |||||||||||||
Ending carrying value | 5,255 | 5,508 | 5,753 | 5,856 | 5,948 | ||||||||||||||||||
Cash and Short-term Investments | |||||||||||||||||||||||
Yield (1) | 0.46 | % | 0.44 | % | 0.36 | % | 0.37 | % | 0.39 | % | |||||||||||||
Investment income | 80 | 94 | 13 | 28 | 48 | ||||||||||||||||||
Investment gains (losses) | 5 | 6 | 1 | 1 | 1 | ||||||||||||||||||
Ending carrying value (3) | 22,423 | 18,486 | 17,183 | 20,421 | 26,100 | ||||||||||||||||||
Other Invested Assets (5) | |||||||||||||||||||||||
Investment income | 244 | 339 | 154 | 320 | 395 | ||||||||||||||||||
Investment gains (losses) (3) | (41 | ) | (32 | ) | 58 | 75 | 8 | ||||||||||||||||
Ending carrying value | 13,916 | 12,709 | 12,327 | 15,584 | 16,571 | ||||||||||||||||||
Total Investments | |||||||||||||||||||||||
Investment income yield (1) | 4.80 | % | 4.90 | % | 5.53 | % | 5.38 | % | 5.35 | % | |||||||||||||
Investment fees and expenses yield | (0.14 | ) | (0.14 | ) | (0.14 | ) | (0.13 | ) | (0.14 | ) | |||||||||||||
Net Investment Income Yield | 4.66 | % | 4.76 | % | 5.39 | % | 5.25 | % | 5.21 | % | |||||||||||||
Investment income | 11,411 | 15,522 | 4,405 | 8,653 | 13,111 | ||||||||||||||||||
Investment fees and expenses | (322 | ) | (433 | ) | (112 | ) | (217 | ) | (338 | ) | |||||||||||||
Net Investment Income (3) | $ | 11,089 | $ | 15,089 | $ | 4,293 | $ | 8,436 | $ | 12,773 | |||||||||||||
Ending Carrying Value (3) | $ | 338,291 | $ | 337,679 | $ | 348,043 | $ | 362,016 | $ | 385,869 | |||||||||||||
Gross investment gains | $ | 945 | $ | 1,232 | $ | 274 | $ | 687 | $ | 899 | |||||||||||||
Gross investment losses | (1,224 | ) | (1,429 | ) | (157 | ) | (449 | ) | (664 | ) | |||||||||||||
Writedowns | (2,548 | ) | (2,845 | ) | (149 | ) | (321 | ) | (419 | ) | |||||||||||||
Investment Portfolio Gains (Losses) (3) | (2,827 | ) | (3,042 | ) | (32 | ) | (83 | ) | (184 | ) | |||||||||||||
Investment portfolio gains (losses) income tax benefit (provision) | 978 | 1,121 | 8 | 19 | 48 | ||||||||||||||||||
Investment Portfolio Gains (Losses), Net of Income Tax | (1,849 | ) | (1,921 | ) | (24 | ) | (64 | ) | (136 | ) | |||||||||||||
Derivatives Gains (Losses) (3) | (4,251 | ) | (5,106 | ) | (10 | ) | 1,312 | 1,001 | |||||||||||||||
Derivatives gains (losses) income tax benefit (provision) | 1,505 | 1,803 | 11 | (529 | ) | (408 | ) | ||||||||||||||||
Derivatives Gains (Losses), Net of Income Tax | $ | (2,746 | ) | $ | (3,303 | ) | $ | 1 | $ | 783 | $ | 593 | |||||||||||
(1) | Yields are based on average of quarterly asset carrying values, excluding recognized and unrealized investment gains (losses), and for yield calculation purposes, average of quarterly ending assets exclude collateral received from counterparties associated with the Company’s securities lending program and exclude the effects of consolidating under GAAP certain VIEs that are treated as consolidated securitization entities. | |
(2) | Fixed maturity securities includes $1,970 million, $2,384 million, $2,765 million, $2,901 million and $3,756 million in ending carrying value, and $310 million, $400 million, $79 million, $23 million and $217 million of investment income related to trading securities at or for the year-to-date period ended September 30, 2009, December 31, 2009, March 31, 2010, June 30, 2010 and September 30, 2010, respectively. | |
(3) | Certain measures in this yield table vary from the most directly comparable measures presented in accordance with GAAP. The reconciliation of the yield table measures to the most directly comparable measures presented in accordance with GAAP are: 1) Ending carrying value adjustments for the effects of consolidating under GAAP certain VIEs that are treated as consolidated securitization entities which include trading securities (included within fixed maturity securities in the yield table above) of $274 million, $257 million and $231 million, mortgage loans of $7,065 million, $7,107 million and $7,093 million and cash and short-term investments of $38 million, $27 million and $47 million at March 31, 2010, June 30, 2010 and September 30, 2010, respectively; 2) Investment income and net investment income adjustments as presented on page 4 within the Net Income Reconciliation; 3) Investment portfolio gains (losses) presented in the above yield table and GAAP net investment gains (losses) adjustments as presented below; and 4) Derivatives gains (losses) presented in the above yield table and GAAP net derivatives gains (losses) adjustments as presented below: |
For the Year-to-Date Period Ended | ||||||||||||||||||||
September 30, 2009 | December 31, 2009 | March 31, 2010 | June 30, 2010 | September 30, 2010 | ||||||||||||||||
Investment portfolio gains (losses) — in above yield table | $ | (2,827 | ) | $ | (3,042 | ) | $ | (32 | ) | $ | (83 | ) | $ | (184 | ) | |||||
Real estate discontinued operations | — | (8 | ) | — | (10 | ) | (10 | ) | ||||||||||||
Net investment gains (losses) related to certain consolidated securitization entities | — | — | 10 | 8 | 24 | |||||||||||||||
Other gains (losses) reported in net investment gains (losses) on GAAP basis | 37 | 144 | 53 | 103 | (154 | ) | ||||||||||||||
Net investment gains (losses) — GAAP basis | $ | (2,790 | ) | $ | (2,906 | ) | $ | 31 | $ | 18 | $ | (324 | ) | |||||||
For the Year-to-Date Period Ended | ||||||||||||||||||||
September 30, 2009 | December 31, 2009 | March 31, 2010 | June 30, 2010 | September 30, 2010 | ||||||||||||||||
Derivative gains (losses) — in above yield table | $ | (4,251 | ) | $ | (5,106 | ) | $ | (10 | ) | $ | 1,312 | $ | 1,001 | |||||||
Scheduled periodic settlement payments on derivatives not qualifying for hedge accounting | 59 | 88 | 49 | 110 | 172 | |||||||||||||||
Equity method operating joint ventures | 111 | 156 | 5 | 102 | 102 | |||||||||||||||
Interest credited to policyholder account balances — scheduled periodic settlement payments on derivatives not qualifying for hedge accounting | (3 | ) | (4 | ) | (3 | ) | (2 | ) | 3 | |||||||||||
Net derivatives gains (losses) — GAAP basis | $ | (4,084 | ) | $ | (4,866 | ) | $ | 41 | $ | 1,522 | $ | 1,278 | ||||||||
(4) | Investment income from mortgage loans includes prepayment fees. | |
(5) | Other invested assets is principally comprised of freestanding derivatives with positive estimated fair values and leveraged leases. Freestanding derivatives with negative estimated fair values are included within other liabilities. However, the accruals of settlement payments in other liabilities are included in net investment income for GAAP. As yield is not considered a meaningful measure of performance for other invested assets, it has been excluded from the above yield table. |
40
![(METLIFE LOGO)](https://capedge.com/proxy/8-K/0000950123-10-097569/y87340y8734003.gif)
METLIFE, INC.
GROSS UNREALIZED GAINS AND LOSSES AGING SCHEDULE
FIXED MATURITY SECURITIES AVAILABLE-FOR-SALE (1)
September 30, 2009 | December 31, 2009 | March 31, 2010 | June 30, 2010 | September 30, 2010 | |||||||||||||||||||||||||||||||||||||||
Unaudited (In millions) | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | |||||||||||||||||||||||||||||||||
Less than 20% | $ | 4,050 | 35.4 | % | $ | 4,815 | 45.9 | % | $ | 4,244 | 51.4 | % | $ | 3,070 | 46.2 | % | $ | 2,037 | 44.4 | % | |||||||||||||||||||||||
20% or more for less than six months | 540 | 4.7 | % | 713 | 6.8 | % | 480 | 5.8 | % | 595 | 9.0 | % | 285 | 6.2 | % | ||||||||||||||||||||||||||||
20% or more for six months or greater | 6,850 | 59.9 | % | 4,958 | 47.3 | % | 3,528 | 42.8 | % | 2,971 | 44.8 | % | 2,271 | 49.4 | % | ||||||||||||||||||||||||||||
Total Gross Unrealized Losses | $ | 11,440 | 100.0 | % | $ | 10,486 | 100.0 | % | $ | 8,252 | 100.0 | % | $ | 6,636 | 100.0 | % | $ | 4,593 | 100.0 | % | |||||||||||||||||||||||
Total Gross Unrealized Gains | $ | 10,062 | $ | 8,419 | $ | 9,757 | $ | 14,107 | $ | 19,498 | |||||||||||||||||||||||||||||||||
GROSS UNREALIZED GAINS AND LOSSES AGING SCHEDULE EQUITY SECURITIES AVAILABLE-FOR-SALE (1) | |||||||||||||||||||||||||||||||||||||||||||
September 30, 2009 | December 31, 2009 | March 31, 2010 | June 30, 2010 | September 30, 2010 | |||||||||||||||||||||||||||||||||||||||
Unaudited (In millions) | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | |||||||||||||||||||||||||||||||||
Less than 20% | $ | 85 | 21.3 | % | $ | 83 | 30.2 | % | $ | 84 | 34.0 | % | $ | 65 | 20.3 | % | $ | 67 | 29.3 | % | |||||||||||||||||||||||
20% or more for less than six months | 13 | 3.3 | % | 14 | 5.1 | % | 35 | 14.2 | % | 129 | 40.3 | % | 25 | 10.9 | % | ||||||||||||||||||||||||||||
20% or more for six months or greater | 300 | 75.4 | % | 178 | 64.7 | % | 128 | 51.8 | % | 126 | 39.4 | % | 137 | 59.8 | % | ||||||||||||||||||||||||||||
Total Gross Unrealized Losses | $ | 398 | 100.0 | % | $ | 275 | 100.0 | % | $ | 247 | 100.0 | % | $ | 320 | 100.0 | % | $ | 229 | 100.0 | % | |||||||||||||||||||||||
Total Gross Unrealized Gains | $ | 166 | $ | 172 | $ | 208 | $ | 105 | $ | 158 | |||||||||||||||||||||||||||||||||
(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 fair 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 fair value had declined and remained below cost or amortized cost by 20% or more for six months or greater. |
41
![(METLIFE LOGO)](https://capedge.com/proxy/8-K/0000950123-10-097569/y87340y8734003.gif)
METLIFE, INC.
SUMMARY OF FIXED MATURITY SECURITIES AVAILABLE-FOR-SALE
BY SECTOR AND QUALITY DISTRIBUTION
September 30, 2009 | December 31, 2009 | March 31, 2010 | June 30, 2010 | September 30, 2010 | |||||||||||||||||||||||||||||||||||||||||
Unaudited (In millions) | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | |||||||||||||||||||||||||||||||||||
U.S. corporate securities | $ | 71,642 | 32.1 | % | $ | 72,187 | 31.7 | % | $ | 74,133 | 31.0 | % | $ | 76,848 | 31.2 | % | $ | 81,020 | 31.1 | % | |||||||||||||||||||||||||
Residential mortgage-backed securities | 43,397 | 19.4 | % | 44,020 | 19.3 | % | 42,980 | 17.9 | % | 42,750 | 17.3 | % | 45,900 | 17.6 | % | ||||||||||||||||||||||||||||||
Foreign corporate securities | 36,592 | 16.3 | % | 38,030 | 16.7 | % | 40,105 | 16.7 | % | 40,863 | 16.6 | % | 44,970 | 17.2 | % | ||||||||||||||||||||||||||||||
U.S. Treasury, agency and government guaranteed securities | 25,467 | 11.4 | % | 25,447 | 11.2 | % | 30,741 | 12.8 | % | 32,862 | 13.3 | % | 34,360 | 13.2 | % | ||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | 15,535 | 6.9 | % | 15,622 | 6.9 | % | 16,495 | 6.9 | % | 15,984 | 6.5 | % | 15,533 | 6.0 | % | ||||||||||||||||||||||||||||||
Foreign government securities | 11,447 | 5.1 | % | 11,947 | 5.2 | % | 13,164 | 5.5 | % | 13,559 | 5.5 | % | 14,844 | 5.7 | % | ||||||||||||||||||||||||||||||
Asset-backed securities | 13,251 | 5.9 | % | 13,162 | 5.8 | % | 13,892 | 5.8 | % | 14,419 | 5.9 | % | 14,306 | 5.5 | % | ||||||||||||||||||||||||||||||
State and political subdivision securities | 6,549 | 2.9 | % | 7,208 | 3.2 | % | 8,039 | 3.4 | % | 9,048 | 3.7 | % | 9,614 | 3.7 | % | ||||||||||||||||||||||||||||||
Other fixed maturity securities | 16 | 0.0 | % | 19 | 0.0 | % | 17 | 0.0 | % | 15 | 0.0 | % | 17 | 0.0 | % | ||||||||||||||||||||||||||||||
Total fixed maturity securities available-for-sale | $ | 223,896 | 100.0 | % | $ | 227,642 | 100.0 | % | $ | 239,566 | 100.0 | % | $ | 246,348 | 100.0 | % | $ | 260,564 | 100.0 | % | |||||||||||||||||||||||||
RATING | |||||||||||||||||||||||||||||||||||||||||||||
NAIC | AGENCY | ||||||||||||||||||||||||||||||||||||||||||||
RATING | DESIGNATION | ||||||||||||||||||||||||||||||||||||||||||||
(1) | (2) | (2) | (2) | (2) | |||||||||||||||||||||||||||||||||||||||||
1 | Aaa / Aa / A | $ | 153,893 | 68.7 | % | $ | 151,136 | 66.4 | % | $ | 160,030 | 66.8 | % | $ | 164,338 | 66.7 | % | $ | 173,111 | 66.5 | % | ||||||||||||||||||||||||
2 | Baa | 48,612 | 21.7 | % | 56,305 | 24.7 | % | 59,061 | 24.6 | % | 61,217 | 24.8 | % | 66,005 | 25.3 | % | |||||||||||||||||||||||||||||
3 | Ba | 9,860 | 4.4 | % | 12,003 | 5.3 | % | 12,105 | 5.1 | % | 12,773 | 5.2 | % | 13,289 | 5.1 | % | |||||||||||||||||||||||||||||
4 | B | 5,927 | 2.7 | % | 6,461 | 2.9 | % | 6,937 | 2.9 | % | 6,924 | 2.8 | % | 7,022 | 2.7 | % | |||||||||||||||||||||||||||||
5 | Caa and lower | 5,330 | 2.4 | % | 1,425 | 0.6 | % | 1,282 | 0.5 | % | 910 | 0.4 | % | 835 | 0.3 | % | |||||||||||||||||||||||||||||
6 | In or near default | 274 | 0.1 | % | 312 | 0.1 | % | 151 | 0.1 | % | 186 | 0.1 | % | 302 | 0.1 | % | |||||||||||||||||||||||||||||
Total fixed maturity securities available-for-sale | $ | 223,896 | 100.0 | % | $ | 227,642 | 100.0 | % | $ | 239,566 | 100.0 | % | $ | 246,348 | 100.0 | % | $ | 260,564 | 100.0 | % | |||||||||||||||||||||||||
(1) | Amounts presented are based on rating agency designations and equivalent ratings of the National Association of Insurance Commissioners (“NAIC”). The rating agency designations are based on availability of applicable ratings from those rating agencies on the NAIC acceptable rating organizations list. | |
(2) | Amounts presented are based on rating agency designations and equivalent ratings of the NAIC, with the exception of non-agency residential mortgage-backed securities held by the Company’s domestic insurance subsidiaries. Amounts presented for non-agency residential mortgage-backed securities held by the Company’s domestic insurance subsidiaries are based on final ratings from the revised NAIC rating methodology which became effective December 31, 2009, which may not correspond to the rating agency designations. Specifically, certain non-agency residential mortgage-backed securities rated Caa and lower and in or near default based on rating agency designations are presented at December 31, 2009, March 31, 2010, June 30, 2010 and September 30, 2010 with their final NAIC rating ranging from NAIC 1 to NAIC 4 based on the revised NAIC rating methodology effective December 31, 2009. |
SUMMARY OF COMMERCIAL MORTGAGE LOANS
BY REGION AND PROPERTY TYPE
BY REGION AND PROPERTY TYPE
September 30, 2009 | December 31, 2009 | March 31, 2010 | June 30, 2010 | September 30, 2010 | |||||||||||||||||||||||||||||||||||||||
Unaudited (In millions) | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | |||||||||||||||||||||||||||||||||
Pacific | $ | 8,806 | 25.3 | % | $ | 8,684 | 25.1 | % | $ | 8,497 | 24.5 | % | $ | 8,346 | 24.2 | % | $ | 8,520 | 24.0 | % | |||||||||||||||||||||||
South Atlantic | 7,454 | 21.4 | % | 7,342 | 21.2 | % | 7,426 | 21.4 | % | 7,485 | 21.7 | % | 7,637 | 21.5 | % | ||||||||||||||||||||||||||||
Middle Atlantic | 5,639 | 16.2 | % | 5,948 | 17.2 | % | 6,075 | 17.4 | % | 5,980 | 17.4 | % | 6,302 | 17.7 | % | ||||||||||||||||||||||||||||
International | 3,590 | 10.3 | % | 3,564 | 10.3 | % | 3,676 | 10.6 | % | 3,564 | 10.4 | % | 3,546 | 10.0 | % | ||||||||||||||||||||||||||||
East North Central | 2,545 | 7.3 | % | 2,487 | 7.2 | % | 2,513 | 7.2 | % | 2,460 | 7.1 | % | 2,966 | 8.4 | % | ||||||||||||||||||||||||||||
West South Central | 2,906 | 8.3 | % | 2,870 | 8.3 | % | 2,868 | 8.3 | % | 2,963 | 8.6 | % | 2,925 | 8.2 | % | ||||||||||||||||||||||||||||
New England | 1,451 | 4.2 | % | 1,414 | 4.1 | % | 1,394 | 4.0 | % | 1,400 | 4.1 | % | 1,400 | 3.9 | % | ||||||||||||||||||||||||||||
Mountain | 1,039 | 3.0 | % | 944 | 2.7 | % | 928 | 2.7 | % | 892 | 2.6 | % | 892 | 2.5 | % | ||||||||||||||||||||||||||||
West North Central | 667 | 2.0 | % | 641 | 1.9 | % | 632 | 1.8 | % | 629 | 1.9 | % | 627 | 1.8 | % | ||||||||||||||||||||||||||||
East South Central | 460 | 1.3 | % | 443 | 1.3 | % | 441 | 1.3 | % | 452 | 1.3 | % | 452 | 1.3 | % | ||||||||||||||||||||||||||||
Other | 253 | 0.7 | % | 250 | 0.7 | % | 277 | 0.8 | % | 250 | 0.7 | % | 250 | 0.7 | % | ||||||||||||||||||||||||||||
Total | $ | 34,810 | 100.0 | % | $ | 34,587 | 100.0 | % | $ | 34,727 | 100.0 | % | $ | 34,421 | 100.0 | % | $ | 35,517 | 100.0 | % | |||||||||||||||||||||||
Office | $ | 14,988 | 43.1 | % | $ | 14,986 | 43.3 | % | $ | 15,046 | 43.3 | % | $ | 15,020 | 43.6 | % | $ | 15,728 | 44.2 | % | |||||||||||||||||||||||
Retail | 8,081 | 23.2 | % | 7,870 | 22.8 | % | 8,032 | 23.1 | % | 7,900 | 23.0 | % | 8,154 | 23.0 | % | ||||||||||||||||||||||||||||
Apartments | 3,725 | 10.7 | % | 3,696 | 10.7 | % | 3,656 | 10.6 | % | 3,607 | 10.5 | % | 3,695 | 10.4 | % | ||||||||||||||||||||||||||||
Hotel | 2,967 | 8.5 | % | 2,947 | 8.5 | % | 2,946 | 8.5 | % | 3,037 | 8.8 | % | 3,006 | 8.5 | % | ||||||||||||||||||||||||||||
Industrial | 2,804 | 8.1 | % | 2,759 | 8.0 | % | 2,776 | 8.0 | % | 2,847 | 8.3 | % | 2,862 | 8.1 | % | ||||||||||||||||||||||||||||
Other | 2,245 | 6.4 | % | 2,329 | 6.7 | % | 2,271 | 6.5 | % | 2,010 | 5.8 | % | 2,072 | 5.8 | % | ||||||||||||||||||||||||||||
Total | $ | 34,810 | 100.0 | % | $ | 34,587 | 100.0 | % | $ | 34,727 | 100.0 | % | $ | 34,421 | 100.0 | % | $ | 35,517 | 100.0 | % | |||||||||||||||||||||||
42
![(METLIFE LOGO)](https://capedge.com/proxy/8-K/0000950123-10-097569/y87340y8734003.gif)
METLIFE, INC.
SUMMARY OF REAL ESTATE AND REAL ESTATE JOINT VENTURES
September 30, | December 31, | March 31, | June 30, | September 30, | |||||||||||||||||||
Unaudited (In millions) | 2009 | 2009 | 2010 | 2010 | 2010 | ||||||||||||||||||
Wholly-owned | $ | 4,061 | $ | 4,071 | $ | 4,079 | $ | 4,033 | $ | 4,136 | |||||||||||||
Joint ventures | 2,846 | 2,698 | 2,651 | 2,657 | 2,711 | ||||||||||||||||||
Subtotal | 6,907 | 6,769 | 6,730 | 6,690 | 6,847 | ||||||||||||||||||
Foreclosed | 125 | 127 | 136 | 151 | 143 | ||||||||||||||||||
Total Real Estate and Real Estate Joint Ventures (1) | $ | 7,032 | $ | 6,896 | $ | 6,866 | $ | 6,841 | $ | 6,990 | |||||||||||||
SUMMARY OF MORTGAGE LOANS
September 30, | December 31, | March 31, | June 30, | September 30, | |||||||||||||||||||
Unaudited (In millions) | 2009 | 2009 | 2010 | 2010 | 2010 | ||||||||||||||||||
Commercial mortgage loans | $ | 34,810 | $ | 34,587 | $ | 34,727 | $ | 34,421 | $ | 35,517 | |||||||||||||
Agricultural mortgage loans | 12,059 | 12,140 | 12,093 | 12,284 | 12,522 | ||||||||||||||||||
Residential and consumer loans | 1,370 | 1,454 | 1,548 | 1,789 | 1,966 | ||||||||||||||||||
Mortgage loans held-for-sale | 2,442 | 2,728 | 2,003 | 2,650 | 2,840 | ||||||||||||||||||
Total (2) | $ | 50,681 | $ | 50,909 | $ | 50,371 | $ | 51,144 | $ | 52,845 | |||||||||||||
(1) | Includes real estate held-for-sale and held-for-investment. | |
(2) | Effective January 1, 2010, balance excludes the effects of consolidating under GAAP certain VIEs that are treated as consolidated securitization entities. See page 39, note 3 for the amount excluded at March 31, 2010, June 30, 2010 and September 30, 2010. |
43
![(GRAPHIC)](https://capedge.com/proxy/8-K/0000950123-10-097569/y87340y8734000.gif)
![(LOGO)](https://capedge.com/proxy/8-K/0000950123-10-097569/y87340y8734002.gif)
© 2010 Peanuts Worldwide LLC