Fourth Quarter
Financial Supplement
December 31, 2011
|
METLIFE, INC.
TABLE OF CONTENTS
1
METLIFE, INC.
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. Operating earnings is the measure of segment profit or loss we use to evaluate segment performance and allocate resources. Consistent with accounting principles generally accepted in the United States of America (“GAAP”) accounting guidance for segment reporting, operating earnings is our measure of segment performance. Operating earnings is also a measure by which senior management’s and many other employees’ performance is evaluated for the purposes of determining their compensation under applicable compensation plans.
Operating earnings is defined as operating revenues less operating expenses, both net of income tax. Operating earnings available to common shareholders is defined as operating earnings less preferred stock dividends.
Operating revenues and operating expenses exclude results of discontinued operations and other businesses that have been or will be sold or exited by MetLife, Inc. (“Divested businesses”). Operating revenues also excludes net investment gains (losses) (“NIGL”) and net derivative gains (losses) (“NDGL”).
The following additional adjustments are made to GAAP revenues, in the line items indicated, in calculating operating revenues:
• | Universal life and investment-type product policy fees excludes the amortization of unearned revenue related to NIGL and NDGL (“Unearned revenue adjustments”) and certain variable annuity guaranteed minimum income benefits (“GMIB”) fees (“GMIB fees”); |
• | Net investment income: (i) includes amounts for scheduled periodic settlement payments and amortization of premium on derivatives that are hedges of investments but do not qualify for hedge accounting treatment (“Investment hedge adjustments”), (ii) includes income from discontinued real estate operations, (iii) excludes post-tax operating earnings adjustments relating to insurance joint ventures accounted for under the equity method (“Joint venture adjustments”), (iv) excludes certain amounts related to contractholder-directed unit-linked investments (“Unit-linked contract income”), and (v) excludes certain amounts related to securitization entities that are variable interest entities (“VIEs”) consolidated under GAAP (“Securitization entities income”); and |
• | Other revenues are adjusted for settlements of foreign currency earnings hedges. |
The following additional adjustments are made to GAAP expenses, in the line items indicated, in calculating operating expenses:
• | Policyholder benefits and claims and policyholder dividends excludes: (i) changes in the policyholder dividend obligation related to NIGL and NDGL (“PDO adjustments”), (ii) inflation-indexed benefit adjustments associated with contracts backed by inflation-indexed investments and amounts associated with periodic crediting rate adjustments based on the total return of a contractually referenced pool of assets (“Inflation adjustments and pass through adjustments”), (iii) benefits and hedging costs related to GMIBs (“GMIB costs”), and (iv) market value adjustments associated with surrenders or terminations of contracts (“Market value adjustments”); |
• | Interest credited to policyholder account balances includes adjustments for scheduled periodic settlement payments and amortization of premium on derivatives that are hedges of policyholder account balances but do not qualify for hedge accounting treatment (“PAB hedge adjustments”) and excludes amounts related to net investment income earned on contractholder-directed unit-linked investments (“Unit-linked contract costs”); |
• | Amortization of deferred policy acquisition costs (“DAC”) and value of business acquired (“VOBA”) excludes amounts related to: (i) NIGL and NDGL, (ii) GMIB fees and GMIB costs, and (iii) Market value adjustments; |
• | Amortization of negative VOBA excludes amounts related to Market value adjustments; |
• | Interest expense on debt excludes certain amounts related to securitization entities that are VIEs consolidated under GAAP (“Securitization entities debt expense”); and |
• | Other expenses excludes costs related to: (i) noncontrolling interests, (ii) implementation of new insurance regulatory requirements (“Regulatory implementation costs”), and (iii) business combinations. |
We believe the presentation of operating earnings and operating earnings available to common shareholders as we measure it for management purposes enhances the understanding of our performance by highlighting the results of operations and the underlying profitability drivers of our business. Operating revenues, operating expenses, operating earnings, operating earnings available to common shareholders, operating earnings available to common shareholders per diluted common share, book value per common share, excluding accumulated other comprehensive income (loss) (“AOCI”), and book value per diluted common share, excluding AOCI, should not be viewed as substitutes for the following financial measures calculated in accordance with GAAP: GAAP revenues, GAAP expenses, GAAP income (loss) from continuing operations, net of income tax, GAAP net income (loss) available to MetLife, Inc.’s common shareholders, GAAP net income (loss) available to MetLife, Inc.’s common shareholders per diluted common share, book value per common share and book value per diluted common share, respectively. Reconciliations of these measures to the most directly comparable GAAP measures are included in this QFS, including in the Appendix on page 36, and in MetLife’s earnings press release dated February 14, 2012, for the three months and year ended December 31, 2011, which is available at www.metlife.com.
2
METLIFE, INC. | ||||||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||||||
Unaudited (In millions, except per share data) (1) | December 31, 2010 | March 31, 2011 | June 30, 2011 | September 30, 2011 | December 31, 2011 | |||||||||||||||||||
Operating earnings available to common shareholders | $ | 1,194 | $ | 1,441 | $ | 1,353 | $ | 1,166 | $ | 1,398 | ||||||||||||||
Preferred stock dividends | 31 | 30 | 31 | 30 | 31 | |||||||||||||||||||
Operating earnings | 1,225 | 1,471 | 1,384 | 1,196 | 1,429 | |||||||||||||||||||
Adjustments from operating earnings to income (loss) from continuing operations: | ||||||||||||||||||||||||
Net investment gains (losses) | (84 | ) | (99 | ) | (155 | ) | (55 | ) | (558 | ) | ||||||||||||||
Net derivative gains (losses) | (1,543 | ) | (315 | ) | 352 | 4,196 | 591 | |||||||||||||||||
Other adjustments to continuing operations | (58 | ) | (204 | ) | (457 | ) | (459 | ) | (521 | ) | ||||||||||||||
Provision for income tax (expense) benefit | 526 | 201 | 75 | (1,307 | ) | 186 | ||||||||||||||||||
Income (loss) from continuing operations, net of income tax | 66 | 1,054 | 1,199 | 3,571 | 1,127 | |||||||||||||||||||
Income (loss) from discontinued operations, net of income tax | 19 | (41 | ) | 31 | 5 | 25 | ||||||||||||||||||
Net income (loss) | 85 | 1,013 | 1,230 | 3,576 | 1,152 | |||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interest | 3 | 7 | (7 | ) | (6 | ) | (4 | ) | ||||||||||||||||
Net income (loss) attributable to MetLife, Inc. | 82 | 1,006 | 1,237 | 3,582 | 1,156 | |||||||||||||||||||
Less: Preferred stock dividends | 31 | 30 | 31 | 30 | 31 | |||||||||||||||||||
Less: Preferred stock redemption premium (2) | - | 146 | - | - | - | |||||||||||||||||||
Net income (loss) available to MetLife, Inc.'s common shareholders | $ | 51 | $ | 830 | $ | 1,206 | $ | 3,552 | $ | 1,125 | ||||||||||||||
Operating earnings available to common shareholders - diluted | $ | 1.18 | $ | 1.35 | $ | 1.26 | $ | 1.09 | $ | 1.31 | ||||||||||||||
Net investment gains (losses) | (0.08 | ) | (0.09 | ) | (0.14 | ) | (0.05 | ) | (0.52 | ) | ||||||||||||||
Net derivative gains (losses) | (1.52 | ) | (0.29 | ) | 0.33 | 3.94 | 0.55 | |||||||||||||||||
Other adjustments to continuing operations | (0.07 | ) | (0.19 | ) | (0.43 | ) | (0.43 | ) | (0.48 | ) | ||||||||||||||
Provision for income tax (expense) benefit | 0.52 | 0.19 | 0.07 | (1.23 | ) | 0.18 | ||||||||||||||||||
Discontinued operations, net of income tax | 0.02 | (0.04 | ) | 0.03 | - | 0.02 | ||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interest | - | 0.01 | (0.01 | ) | (0.01 | ) | - | |||||||||||||||||
Less: Preferred stock redemption premium | - | 0.14 | - | - | - | |||||||||||||||||||
Net income (loss) available to MetLife, Inc.'s common shareholders per common share - diluted | $ | 0.05 | $ | 0.78 | $ | 1.13 | $ | 3.33 | $ | 1.06 | ||||||||||||||
Weighted average common shares outstanding - diluted (2) | 1,014.9 | 1,069.5 | 1,071.0 | 1,066.2 | 1,066.3 | |||||||||||||||||||
Unaudited | December 31, 2010 | March 31, 2011 | June 30, 2011 | September 30, 2011 | December 31, 2011 | |||||||||||||||||||
Book value per common share - (actual common shares outstanding) (3) | $ | 44.18 | $ | 45.24 | $ | 48.48 | $ | 55.13 | $ | 54.59 | ||||||||||||||
Book value per common share, excluding accumulated other comprehensive income (loss) - (actual common shares outstanding) (3) | $ | 43.23 | $ | 44.18 | $ | 45.31 | $ | 48.69 | $ | 49.02 | ||||||||||||||
Book value per common share - diluted - (weighted average common shares outstanding) (3) | $ | 45.90 | $ | 44.67 | $ | 47.87 | $ | 54.68 | $ | 54.16 | ||||||||||||||
Book value per common share, excluding accumulated other comprehensive income (loss) - diluted - (weighted average common shares outstanding) (3) | $ | 44.91 | $ | 43.63 | $ | 44.73 | $ | 48.29 | $ | 48.64 | ||||||||||||||
For the Three Months Ended | ||||||||||||||||||||||||
Unaudited (In millions) | December 31, 2010 | March 31, 2011 | June 30, 2011 | September 30, 2011 | December 31, 2011 | |||||||||||||||||||
Common shares outstanding, beginning of period | 906.9 | 1,054.4 | 1,056.1 | 1,057.4 | 1,057.6 | |||||||||||||||||||
Newly issued shares (2) | 147.5 | 1.7 | 1.3 | 0.2 | 0.4 | |||||||||||||||||||
Common shares outstanding, end of period | 1,054.4 | 1,056.1 | 1,057.4 | 1,057.6 | 1,058.0 | |||||||||||||||||||
Weighted average common shares outstanding - basic (2) | 1,007.3 | 1,058.5 | 1,059.8 | 1,060.2 | 1,060.4 | |||||||||||||||||||
Dilutive effect of stock purchase contracts underlying common equity units | - | 2.6 | 4.0 | - | - | |||||||||||||||||||
Dilutive effect of stock-based awards | 7.6 | 8.4 | 7.2 | 6.0 | 5.9 | |||||||||||||||||||
Weighted average common shares outstanding - diluted (2) | 1,014.9 | 1,069.5 | 1,071.0 | 1,066.2 | 1,066.3 | |||||||||||||||||||
Policyholder Trust Shares | 222.3 | 219.0 | 216.5 | 215.3 | 212.9 | |||||||||||||||||||
(1) | Certain amounts in the prior periods have been reclassified to conform with the current period segment presentation. During the fourth quarter of 2011, MetLife, Inc. began reporting certain operations of MetLife Bank, National Association ("MetLife Bank") and insurance operations in the Caribbean Region, Panama and Costa Rica (the "Caribbean Business") as Divested businesses. | |||||||||||||||||||||||
(2) | In connection with the financing of the acquisition of American Life Insurance Company and Delaware American Life Insurance Company (collectively, "ALICO") in November 2010, MetLife, Inc. issued to AM Holdings LLC (formerly known as ALICO Holdings LLC)("AM Holdings") 6,857,000 shares of convertible preferred stock. For purposes of the December 31, 2010 common share and weighted average common share calculations, the convertible preferred stock was treated as 68,570,000 shares of common stock. On March 8, 2011, MetLife, Inc. issued 68,570,000 shares of common stock for net proceeds of $3.0 billion, which were used to repurchase and cancel the 6,857,000 shares of convertible preferred stock held by AM Holdings, resulting in a preferred stock redemption premium of $146 million. As the convertible preferred stock shares were treated as common shares in the December 31, 2010 share calculations, there is no impact to the March 31, 2011 share calculations for the 68,570,000 shares of common stock issued on March 8, 2011. | |||||||||||||||||||||||
(3) | Book value per common share, book value per common share, excluding AOCI, book value per common share—diluted and book value per common share, excluding AOCI—diluted exclude $2,043 million of equity related to preferred stock. |
3
METLIFE, INC. | ||||||||||||||||||||||||
| ||||||||||||||||||||||||
Unaudited (In millions) | December 31, 2010 | March 31, 2011 | June 30, 2011 | September 30, 2011 | December 31, 2011 | |||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Investments: | ||||||||||||||||||||||||
Fixed maturity securities available-for-sale, at estimated fair value | $ | 324,797 | $ | 333,664 | $ | 341,744 | $ | 353,927 | $ | 350,271 | ||||||||||||||
Equity securities available-for-sale, at estimated fair value | 3,602 | 3,584 | 3,238 | 3,118 | 3,023 | |||||||||||||||||||
Trading and other securities, at estimated fair value (1) | 18,589 | 19,365 | 19,700 | 18,698 | 18,268 | |||||||||||||||||||
Mortgage loans: | ||||||||||||||||||||||||
Held-for-investment, principally at amortized cost (1) | 58,976 | 59,397 | 60,819 | 59,209 | 56,915 | |||||||||||||||||||
Held-for-sale, principally at estimated fair value (2) | 3,321 | 2,435 | 2,805 | 3,740 | 15,178 | |||||||||||||||||||
Mortgage loans, net | 62,297 | 61,832 | 63,624 | 62,949 | 72,093 | |||||||||||||||||||
Policy loans | 11,761 | 11,872 | 11,858 | 11,932 | 11,892 | |||||||||||||||||||
Real estate and real estate joint ventures | 8,030 | 8,042 | 8,234 | 8,197 | 8,563 | |||||||||||||||||||
Other limited partnership interests | 6,416 | 6,409 | 6,453 | 6,538 | 6,378 | |||||||||||||||||||
Short-term investments, principally at estimated fair value | 9,384 | 8,822 | 12,419 | 15,913 | 17,310 | |||||||||||||||||||
Other invested assets, principally at estimated fair value | 15,430 | 13,693 | 14,900 | 23,138 | 23,628 | |||||||||||||||||||
Total investments | 460,306 | 467,283 | 482,170 | 504,410 | 511,426 | |||||||||||||||||||
Cash and cash equivalents, principally at estimated fair value (1) | 12,957 | 10,692 | 9,628 | 10,001 | 10,461 | |||||||||||||||||||
Accrued investment income | 4,328 | 4,478 | 4,341 | 4,793 | 4,344 | |||||||||||||||||||
Premiums, reinsurance and other receivables | 19,799 | 20,315 | 21,070 | 23,137 | 22,481 | |||||||||||||||||||
Deferred policy acquisition costs and value of business acquired | 27,092 | 27,979 | 28,241 | 27,623 | 27,971 | |||||||||||||||||||
Goodwill | 11,781 | 11,946 | 12,036 | 12,006 | 11,935 | |||||||||||||||||||
Other assets | 8,174 | 9,321 | 8,246 | 8,340 | 7,984 | |||||||||||||||||||
Assets of subsidiaries held-for-sale | 3,331 | 3,413 | 3,369 | 3,421 | - | |||||||||||||||||||
Separate account assets | 183,138 | 195,914 | 202,382 | 191,499 | 203,023 | |||||||||||||||||||
Total assets | $ | 730,906 | $ | 751,341 | $ | 771,483 | $ | 785,230 | $ | 799,625 | ||||||||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||
Future policy benefits | $ | 170,912 | $ | 172,987 | $ | 176,353 | $ | 182,736 | $ | 184,252 | ||||||||||||||
Policyholder account balances | 210,757 | 214,641 | 217,597 | 217,764 | 217,700 | |||||||||||||||||||
Other policy-related balances | 15,750 | 15,641 | 15,456 | 15,451 | 15,599 | |||||||||||||||||||
Policyholder dividends payable | 830 | 820 | 853 | 871 | 774 | |||||||||||||||||||
Policyholder dividend obligation | 876 | 793 | 1,281 | 2,782 | 2,919 | |||||||||||||||||||
Payables for collateral under securities loaned and other transactions | 27,272 | 28,625 | 30,079 | 34,933 | 33,716 | |||||||||||||||||||
Bank deposits | 10,316 | 9,313 | 10,022 | 10,685 | 10,507 | |||||||||||||||||||
Short-term debt | 306 | 572 | 102 | 451 | 686 | |||||||||||||||||||
Long-term debt (1) | 27,586 | 27,604 | 28,269 | 24,753 | 23,692 | |||||||||||||||||||
Collateral financing arrangements | 5,297 | 5,297 | 5,297 | 5,297 | 4,647 | |||||||||||||||||||
Junior subordinated debt securities | 3,191 | 3,191 | 3,192 | 3,192 | 3,192 | |||||||||||||||||||
Current income tax payable | 297 | 113 | 133 | 385 | 193 | |||||||||||||||||||
Deferred income tax liability | 1,856 | 2,238 | 3,764 | 7,214 | 7,535 | |||||||||||||||||||
Other liabilities (2) | 20,366 | 20,037 | 19,707 | 23,121 | 30,914 | |||||||||||||||||||
Liabilities of subsidiaries held-for-sale | 3,043 | 3,206 | 3,163 | 3,221 | - | |||||||||||||||||||
Separate account liabilities | 183,138 | 195,914 | 202,382 | 191,499 | 203,023 | |||||||||||||||||||
Total liabilities | 681,793 | 700,992 | 717,650 | 724,355 | 739,349 | |||||||||||||||||||
Redeemable noncontrolling interests in partially owned consolidated subsidiaries | 117 | 128 | 124 | 130 | 105 | |||||||||||||||||||
Equity | ||||||||||||||||||||||||
MetLife, Inc.’s stockholder’s equity: | ||||||||||||||||||||||||
Preferred stock, at par value | 1 | 1 | 1 | 1 | 1 | |||||||||||||||||||
Convertible preferred stock, at par value | - | - | - | - | - | |||||||||||||||||||
Common stock, at par value | 10 | 11 | 11 | 11 | 11 | |||||||||||||||||||
Additional paid-in capital | 26,423 | 26,668 | 26,714 | 26,744 | 26,782 | |||||||||||||||||||
Retained earnings | 21,363 | 22,193 | 23,399 | 26,951 | 27,289 | |||||||||||||||||||
Treasury stock, at cost | (172 | ) | (172 | ) | (172 | ) | (172 | ) | (172 | ) | ||||||||||||||
Accumulated other comprehensive income (loss) | 1,000 | 1,115 | 3,356 | 6,813 | 5,886 | |||||||||||||||||||
Total MetLife, Inc.'s stockholders' equity | 48,625 | 49,816 | 53,309 | 60,348 | 59,797 | |||||||||||||||||||
Noncontrolling interests | 371 | 405 | 400 | 397 | 374 | |||||||||||||||||||
Total equity | 48,996 | 50,221 | 53,709 | 60,745 | 60,171 | |||||||||||||||||||
Total liabilities and equity | $ | 730,906 | $ | 751,341 | $ | 771,483 | $ | 785,230 | $ | 799,625 | ||||||||||||||
(1) | At December 31, 2010, March 31, 2011, June 30, 2011, September 30, 2011 and December 31, 2011, $7,080 million, $6,991 million, $6,865 million, $3,380 million and $3,276 million, respectively, of assets and $6,820 million, $6,684 million, $6,547 million, $3,157 million and $3,068 million, respectively, of liabilities are included related to certain securitization entities that are required to be consolidated under GAAP. See pages 31 and 32, note 3 for the amounts by asset category. | |||||||||||||||||||||||
(2) | At December 31, 2011, $7,652 million of assets and $7,626 million of liabilities are included related to securitized reverse residential mortgage loans which have been sold, but do not qualify for de-recognition. |
4
5
6
METLIFE, INC. | ||||||||||||||||||||
CONSOLIDATING STATEMENT OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS (1)
| ||||||||||||||||||||
For the Three Months Ended December 31, 2010 | ||||||||||||||||||||
Unaudited (In millions) | Consolidated | U.S. Business | International | Corporate & Other | ||||||||||||||||
OPERATING REVENUES | ||||||||||||||||||||
Premiums | $ | 7,215 | $ | 5,608 | $ | 1,602 | $ | 5 | ||||||||||||
Universal life and investment-type product policy fees | 1,638 | 1,220 | 418 | - | ||||||||||||||||
Net investment income | 4,437 | 3,765 | 458 | 214 | ||||||||||||||||
Other revenues | 472 | 333 | 23 | 116 | ||||||||||||||||
Total operating revenues | 13,762 | 10,926 | 2,501 | 335 | ||||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||
Policyholder benefits and claims and policyholder dividends | 7,623 | 6,543 | 1,083 | (3 | ) | |||||||||||||||
Interest credited to policyholder account balances | 1,246 | 1,002 | 244 | - | ||||||||||||||||
Capitalization of DAC | (1,044 | ) | (626 | ) | (418 | ) | - | |||||||||||||
Amortization of DAC and VOBA | 890 | 629 | 259 | 2 | ||||||||||||||||
Amortization of negative VOBA | (57 | ) | - | (57 | ) | - | ||||||||||||||
Interest expense on debt | 315 | 3 | 1 | 311 | ||||||||||||||||
Other expenses | 3,124 | 2,023 | 988 | 113 | ||||||||||||||||
Total operating expenses | 12,097 | 9,574 | 2,100 | 423 | ||||||||||||||||
Operating earnings before provision for income tax | 1,665 | 1,352 | 401 | (88 | ) | |||||||||||||||
Provision for income tax expense (benefit) | 440 | 458 | 99 | (117 | ) | |||||||||||||||
Operating earnings | 1,225 | 894 | 302 | 29 | ||||||||||||||||
Preferred stock dividends | 31 | - | - | 31 | ||||||||||||||||
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS | $ | 1,194 | $ | 894 | $ | 302 | $ | (2 | ) | |||||||||||
Reconciliation to Net Income and Financial Statement Line Item Adjustments from GAAP | ||||||||||||||||||||
Operating earnings | $ | 1,225 | $ | 894 | $ | 302 | $ | 29 | ||||||||||||
Adjustments from operating earnings to income (loss) from continuing operations: | ||||||||||||||||||||
Net investment gains (losses) | (84 | ) | 129 | (21 | ) | (192 | ) | |||||||||||||
Net derivative gains (losses) | (1,543 | ) | (921 | ) | (648 | ) | 26 | |||||||||||||
Premiums | - | - | - | - | ||||||||||||||||
Universal life and investment-type product policy fees | 51 | 51 | - | - | ||||||||||||||||
Net investment income | 329 | (40 | ) | 179 | 190 | |||||||||||||||
Other revenues | 175 | - | - | 175 | ||||||||||||||||
Policyholder benefits and claims and policyholder dividends | (188 | ) | (200 | ) | 12 | - | ||||||||||||||
Interest credited to policyholder account balances | (219 | ) | (8 | ) | (211 | ) | - | |||||||||||||
Capitalization of DAC | - | - | - | - | ||||||||||||||||
Amortization of DAC and VOBA | 231 | 231 | - | - | ||||||||||||||||
Amortization of negative VOBA | 7 | - | 7 | - | ||||||||||||||||
Interest expense on debt | (99 | ) | - | - | (99 | ) | ||||||||||||||
Other expenses | (345 | ) | 3 | (1 | ) | (347 | ) | |||||||||||||
Provision for income tax (expense) benefit | 526 | 264 | 187 | 75 | ||||||||||||||||
Income (loss) from continuing operations, net of income tax | 66 | 403 | (194 | ) | (143 | ) | ||||||||||||||
Income (loss) from discontinued operations, net of income tax | 19 | 5 | 13 | 1 | ||||||||||||||||
Net income (loss) | 85 | 408 | (181 | ) | (142 | ) | ||||||||||||||
Less: Net income (loss) attributable to noncontrolling interest | 3 | 2 | 1 | - | ||||||||||||||||
Net income (loss) attributable to MetLife, Inc. | 82 | 406 | (182 | ) | (142 | ) | ||||||||||||||
Less: Preferred stock dividends | 31 | - | - | 31 | ||||||||||||||||
Less: Preferred stock redemption premium | - | - | - | - | ||||||||||||||||
Net income (loss) available to MetLife, Inc.'s common shareholders | $ | 51 | $ | 406 | $ | (182 | ) | $ | (173 | ) | ||||||||||
Premiums, Fees and Other Revenues (Operating) | $ | 9,325 | $ | 7,161 | $ | 2,043 | $ | 121 | ||||||||||||
(1) | Certain amounts in the prior periods have been reclassified to conform with the current period segment presentation. During the fourth quarter of 2011, MetLife, Inc. began reporting certain operations of MetLife Bank as Divested businesses. |
7
METLIFE, INC. | ||||||||||||||||||
CONSOLIDATING STATEMENT OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
| ||||||||||||||||||
For the Year Ended December 31, 2011 | ||||||||||||||||||
Unaudited (In millions) | Consolidated | U.S. Business | International | Corporate & Other | ||||||||||||||
OPERATING REVENUES | ||||||||||||||||||
Premiums | $ | 36,269 | $ | 23,508 | $ | 12,751 | $ | 10 | ||||||||||
Universal life and investment-type product policy fees | 7,528 | 4,958 | 2,570 | - | ||||||||||||||
Net investment income | 19,676 | 14,688 | 4,074 | 914 | ||||||||||||||
Other revenues | 1,911 | 1,418 | 174 | 319 | ||||||||||||||
Total operating revenues | 65,384 | 44,572 | 19,569 | 1,243 | ||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||
Policyholder benefits and claims and policyholder dividends | 36,227 | 27,522 | 8,697 | 8 | ||||||||||||||
Interest credited to policyholder account balances | 6,057 | 3,913 | 2,144 | - | ||||||||||||||
Capitalization of DAC | (6,849 | ) | (2,956 | ) | (3,893 | ) | - | |||||||||||
Amortization of DAC and VOBA | 4,799 | 2,366 | 2,432 | 1 | ||||||||||||||
Amortization of negative VOBA | (619 | ) | - | (619 | ) | - | ||||||||||||
Interest expense on debt | 1,305 | 10 | 1 | 1,294 | ||||||||||||||
Other expenses | 16,754 | 8,565 | 7,562 | 627 | ||||||||||||||
Total operating expenses | 57,674 | 39,420 | 16,324 | 1,930 | ||||||||||||||
Operating earnings before provision for income tax | 7,710 | 5,152 | 3,245 | (687 | ) | |||||||||||||
Provision for income tax expense (benefit) | 2,230 | 1,749 | 1,033 | (552 | ) | |||||||||||||
Operating earnings | 5,480 | 3,403 | 2,212 | (135 | ) | |||||||||||||
Preferred stock dividends | 122 | - | - | 122 | ||||||||||||||
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS | $ | 5,358 | $ | 3,403 | $ | 2,212 | $ | (257 | ) | |||||||||
Reconciliation to Net Income and Financial Statement Line Item Adjustments from GAAP | ||||||||||||||||||
Operating earnings | $ | 5,480 | $ | 3,403 | $ | 2,212 | $ | (135 | ) | |||||||||
Adjustments from operating earnings to income (loss) from continuing operations: | ||||||||||||||||||
Net investment gains (losses) | (867 | ) | 151 | (837 | ) | (181 | ) | |||||||||||
Net derivative gains (losses) | 4,824 | 3,950 | 985 | (111 | ) | |||||||||||||
Premiums | 92 | - | 92 | - | ||||||||||||||
Universal life and investment-type product policy fees | 278 | 270 | 8 | - | ||||||||||||||
Net investment income | (70 | ) | (257 | ) | (468 | ) | 655 | |||||||||||
Other revenues | 621 | - | 11 | 610 | ||||||||||||||
Policyholder benefits and claims and policyholder dividends | (676 | ) | (236 | ) | (440 | ) | - | |||||||||||
Interest credited to policyholder account balances | 454 | (19 | ) | 473 | - | |||||||||||||
Capitalization of DAC | 9 | - | 9 | - | ||||||||||||||
Amortization of DAC and VOBA | (592 | ) | (569 | ) | (23 | ) | - | |||||||||||
Amortization of negative VOBA | 78 | - | 78 | - | ||||||||||||||
Interest expense on debt | (324 | ) | - | - | (324 | ) | ||||||||||||
Other expenses | (1,511 | ) | - | (143 | ) | (1,368 | ) | |||||||||||
Provision for income tax (expense) benefit | (845 | ) | (1,150 | ) | 15 | 290 | ||||||||||||
Income (loss) from continuing operations, net of income tax | 6,951 | 5,543 | 1,972 | (564 | ) | |||||||||||||
Income (loss) from discontinued operations, net of income tax | 20 | 61 | (44 | ) | 3 | |||||||||||||
Net income (loss) | 6,971 | 5,604 | 1,928 | (561 | ) | |||||||||||||
Less: Net income (loss) attributable to noncontrolling interest | (10 | ) | (3 | ) | (5 | ) | (2 | ) | ||||||||||
Net income (loss) attributable to MetLife, Inc. | 6,981 | 5,607 | 1,933 | (559 | ) | |||||||||||||
Less: Preferred stock dividends | 122 | - | - | 122 | ||||||||||||||
Less: Preferred stock redemption premium | 146 | - | - | 146 | ||||||||||||||
Net income (loss) available to MetLife, Inc.'s common shareholders | $ | 6,713 | $ | 5,607 | $ | 1,933 | $ | (827 | ) | |||||||||
Premiums, Fees and Other Revenues (Operating) | $ | 45,708 | $ | 29,884 | $ | 15,495 | $ | 329 |
8
METLIFE, INC. CONSOLIDATING STATEMENT OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS (1) | ||||||||||||||||
| For the Year Ended December 31, 2010 |
| ||||||||||||||
Unaudited (In millions) | Consolidated | U.S. Business | International | Corporate & Other | ||||||||||||
OPERATING REVENUES | ||||||||||||||||
Premiums | $ | 27,071 | $ | 22,936 | $ | 4,124 | $ | 11 | ||||||||
Universal life and investment-type product policy fees | 5,817 | 4,497 | 1,320 | - | ||||||||||||
Net investment income | 16,880 | 14,626 | 1,611 | 643 | ||||||||||||
Other revenues | 1,675 | 1,249 | 35 | 391 | ||||||||||||
Total operating revenues | 51,443 | 43,308 | 7,090 | 1,045 | ||||||||||||
OPERATING EXPENSES | ||||||||||||||||
Policyholder benefits and claims and policyholder dividends | 29,972 | 26,624 | 3,362 | (14 | ) | |||||||||||
Interest credited to policyholder account balances | 4,697 | 4,020 | 677 | - | ||||||||||||
Capitalization of DAC | (3,299 | ) | (2,375 | ) | (924 | ) | - | |||||||||
Amortization of DAC and VOBA | 2,802 | 2,229 | 572 | 1 | ||||||||||||
Amortization of negative VOBA | (57 | ) | - | (57 | ) | - | ||||||||||
Interest expense on debt | 1,139 | 10 | 3 | 1,126 | ||||||||||||
Other expenses | 10,690 | 7,746 | 2,477 | 467 | ||||||||||||
Total operating expenses | 45,944 | 38,254 | 6,110 | 1,580 | ||||||||||||
Operating earnings before provision for income tax | 5,499 | 5,054 | 980 | (535 | ) | |||||||||||
Provision for income tax expense (benefit) | 1,544 | 1,710 | 200 | (366 | ) | |||||||||||
Operating earnings | 3,955 | 3,344 | 780 | (169 | ) | |||||||||||
Preferred stock dividends | 122 | - | - | 122 | ||||||||||||
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS | $ | 3,833 | $ | 3,344 | $ | 780 | $ | (291 | ) | |||||||
Reconciliation to Net Income and Financial Statement Line Item Adjustments from GAAP | ||||||||||||||||
Operating earnings | $ | 3,955 | $ | 3,344 | $ | 780 | $ | (169 | ) | |||||||
Adjustments from operating earnings to income (loss) from continuing operations: | ||||||||||||||||
Net investment gains (losses) | (408 | ) | 411 | (289 | ) | (530 | ) | |||||||||
Net derivative gains (losses) | (265 | ) | 287 | (491 | ) | (61 | ) | |||||||||
Premiums | - | - | - | - | ||||||||||||
Universal life and investment-type product policy fees | 211 | 211 | - | - | ||||||||||||
Net investment income | 631 | (210 | ) | 44 | 797 | |||||||||||
Other revenues | 653 | - | - | 653 | ||||||||||||
Policyholder benefits and claims and policyholder dividends | (698 | ) | (439 | ) | (259 | ) | - | |||||||||
Interest credited to policyholder account balances | (222 | ) | (11 | ) | (211 | ) | - | |||||||||
Capitalization of DAC | - | - | - | - | ||||||||||||
Amortization of DAC and VOBA | (41 | ) | (41 | ) | - | - | ||||||||||
Amortization of negative VOBA | 7 | - | 7 | - | ||||||||||||
Interest expense on debt | (411 | ) | - | - | (411 | ) | ||||||||||
Other expenses | (1,044 | ) | 5 | (8 | ) | (1,041 | ) | |||||||||
Provision for income tax (expense) benefit | 379 | (83 | ) | 274 | 188 | |||||||||||
Income (loss) from continuing operations, net of income tax | 2,747 | 3,474 | (153 | ) | (574 | ) | ||||||||||
Income (loss) from discontinued operations, net of income tax | 39 | 19 | 22 | (2 | ) | |||||||||||
Net income (loss) | 2,786 | 3,493 | (131 | ) | (576 | ) | ||||||||||
Less: Net income (loss) attributable to noncontrolling interest | (4 | ) | 3 | (5 | ) | (2 | ) | |||||||||
Net income (loss) attributable to MetLife, Inc. | 2,790 | 3,490 | (126 | ) | (574 | ) | ||||||||||
Less: Preferred stock dividends | 122 | - | - | 122 | ||||||||||||
Less: Preferred stock redemption premium | - | - | - | - | ||||||||||||
Net income (loss) available to MetLife, Inc.'s common shareholders | $ | 2,668 | $ | 3,490 | $ | (126 | ) | $ | (696 | ) | ||||||
Premiums, Fees and Other Revenues (Operating) | $ | 34,563 | $ | 28,682 | $ | 5,479 | $ | 402 | ||||||||
(1) Certain amounts in the prior periods have been reclassified to conform with the current period segment presentation. During the fourth quarter of 2011, MetLife, Inc. began reporting certain operations of MetLife Bank as Divested businesses. |
|
9
10
11
U.S. BUSINESS | ||||||||||||||||||||||||||||||
INSURANCE PRODUCTS - GROUP LIFE | ||||||||||||||||||||||||||||||
STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS - PRODUCT LEVEL
|
| |||||||||||||||||||||||||||||
For the Three Months Ended | For the Year Ended | |||||||||||||||||||||||||||||
Unaudited (In millions, except ratios) | December 31, 2010 | March 31, 2011 | June 30, 2011 | September 30, 2011 | December 31, 2011 | December 31, 2010 | December 31, 2011 | |||||||||||||||||||||||
OPERATING REVENUES | ||||||||||||||||||||||||||||||
Premiums | $ | 1,735 | $ | 1,765 | $ | 1,818 | $ | 1,711 | $ | 1,771 | $ | 7,222 | $ | 7,065 | ||||||||||||||||
Universal life and investment-type product policy fees | 156 | 159 | 155 | 159 | 157 | 616 | 630 | |||||||||||||||||||||||
Net investment income | 206 | 200 | 205 | 200 | 194 | 826 | 799 | |||||||||||||||||||||||
Other revenues | - | 2 | 1 | - | 1 | 6 | 4 | |||||||||||||||||||||||
Total operating revenues | 2,097 | 2,126 | 2,179 | 2,070 | 2,123 | 8,670 | 8,498 | |||||||||||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||||||||
Policyholder benefits and claims and policyholder dividends | 1,746 | 1,768 | 1,726 | 1,847 | 1,732 | 7,185 | 7,073 | |||||||||||||||||||||||
Interest credited to policyholder account balances | 42 | 40 | 42 | 43 | 40 | 173 | 165 | |||||||||||||||||||||||
Capitalization of DAC | (4 | ) | (5 | ) | (4 | ) | (4 | ) | (4 | ) | (15 | ) | (17 | ) | ||||||||||||||||
Amortization of DAC and VOBA | 2 | 3 | 5 | 3 | 5 | 15 | 16 | |||||||||||||||||||||||
Amortization of negative VOBA | - | - | - | - | - | - | - | |||||||||||||||||||||||
Interest expense on debt | - | - | - | - | - | - | - | |||||||||||||||||||||||
Other expenses | 160 | 140 | 141 | 141 | 142 | 589 | 564 | |||||||||||||||||||||||
Total operating expenses | 1,946 | 1,946 | 1,910 | 2,030 | 1,915 | 7,947 | 7,801 | |||||||||||||||||||||||
Operating earnings before provision for income tax | 151 | 180 | 269 | 40 | 208 | 723 | 697 | |||||||||||||||||||||||
Provision for income tax expense (benefit) | 53 | 63 | 94 | 14 | 73 | 253 | 244 | |||||||||||||||||||||||
Operating earnings | 98 | 117 | 175 | 26 | 135 | 470 | 453 | |||||||||||||||||||||||
Preferred stock dividends | - | - | - | - | - | - | - | |||||||||||||||||||||||
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS | $ | 98 | $ | 117 | $ | 175 | $ | 26 | $ | 135 | $ | 470 | $ | 453 | ||||||||||||||||
Reconciliation to Net Income and Financial Statement Line Item Adjustments from GAAP | ||||||||||||||||||||||||||||||
Operating earnings | $ | 98 | $ | 117 | $ | 175 | $ | 26 | $ | 135 | $ | 470 | $ | 453 | ||||||||||||||||
Adjustments from operating earnings to income (loss) from continuing operations: | ||||||||||||||||||||||||||||||
Net investment gains (losses) | (2 | ) | 3 | (6 | ) | (14 | ) | (1 | ) | 9 | (18 | ) | ||||||||||||||||||
Net derivative gains (losses) | (9 | ) | (22 | ) | 36 | 56 | 13 | 71 | 83 | |||||||||||||||||||||
Premiums | - | - | - | - | - | - | - | |||||||||||||||||||||||
Universal life and investment-type product policy fees | - | - | - | - | - | - | - | |||||||||||||||||||||||
Net investment income | (19 | ) | (18 | ) | (21 | ) | (21 | ) | (20 | ) | (71 | ) | (80 | ) | ||||||||||||||||
Other revenues | - | - | - | - | - | - | - | |||||||||||||||||||||||
Policyholder benefits and claims and policyholder dividends | - | - | - | - | - | - | - | |||||||||||||||||||||||
Interest credited to policyholder account balances | - | - | - | - | - | - | - | |||||||||||||||||||||||
Capitalization of DAC | - | - | - | - | - | - | - | |||||||||||||||||||||||
Amortization of DAC and VOBA | - | - | - | - | - | - | - | |||||||||||||||||||||||
Amortization of negative VOBA | - | - | - | - | - | - | - | |||||||||||||||||||||||
Interest expense on debt | - | - | - | - | - | - | - | |||||||||||||||||||||||
Other expenses | - | - | - | - | - | - | - | |||||||||||||||||||||||
Provision for income tax (expense) benefit | 10 | 13 | (3 | ) | (8 | ) | 3 | (3 | ) | 5 | ||||||||||||||||||||
Income (loss) from continuing operations, net of income tax | 78 | 93 | 181 | 39 | 130 | 476 | 443 | |||||||||||||||||||||||
Income (loss) from discontinued operations, net of income tax | 1 | - | - | 2 | - | - | 2 | |||||||||||||||||||||||
Net income (loss) | 79 | 93 | 181 | 41 | 130 | 476 | 445 | |||||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interest | - | - | - | - | - | - | - | |||||||||||||||||||||||
Net income (loss) attributable to MetLife, Inc. | 79 | 93 | 181 | 41 | 130 | 476 | 445 | |||||||||||||||||||||||
Less: Preferred stock dividends | - | - | - | - | - | - | - | |||||||||||||||||||||||
Less: Preferred stock redemption premium | - | - | - | - | - | - | - | |||||||||||||||||||||||
Net income (loss) available to MetLife, Inc.'s common shareholders | $ | 79 | $ | 93 | $ | 181 | $ | 41 | $ | 130 | $ | 476 | $ | 445 | ||||||||||||||||
Premiums, Fees and Other Revenues (Operating) | $ | 1,891 | $ | 1,926 | $ | 1,974 | $ | 1,870 | $ | 1,929 | $ | 7,844 | $ | 7,699 | ||||||||||||||||
Group Life Mortality Ratio | 89.7 | % | 88.2 | % | 82.1 | % | 98.5 | % | 85.2 | % |
12
U.S. BUSINESS
INSURANCE PRODUCTS—INDIVIDUAL LIFE
STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS—PRODUCT LEVEL
For the Three Months Ended | For the Year Ended | |||||||||||||||||||||||||||||
Unaudited (In millions, except ratios) | December 31, 2010 | March 31, 2011 | June 30, 2011 | September 30, 2011 | December 31, 2011 | December 31, 2010 | December 31, 2011 | |||||||||||||||||||||||
OPERATING REVENUES | ||||||||||||||||||||||||||||||
Premiums | $ | 1,113 | $ | 951 | $ | 988 | $ | 993 | $ | 1,098 | $ | 4,072 | $ | 4,030 | ||||||||||||||||
Universal life and investment-type product policy fees | 457 | 405 | 410 | 407 | 412 | 1,631 | 1,634 | |||||||||||||||||||||||
Net investment income | 1,116 | 1,097 | 1,119 | 1,074 | 1,039 | 4,354 | 4,329 | |||||||||||||||||||||||
Other revenues | 110 | 107 | 112 | 123 | 111 | 398 | 453 | |||||||||||||||||||||||
Total operating revenues | 2,796 | 2,560 | 2,629 | 2,597 | 2,660 | 10,455 | 10,446 | |||||||||||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||||||||
Policyholder benefits and claims and policyholder dividends | 1,750 | 1,603 | 1,628 | 1,709 | 1,562 | 6,621 | 6,502 | |||||||||||||||||||||||
Interest credited to policyholder account balances | 203 | 198 | 201 | 209 | 211 | 771 | 819 | |||||||||||||||||||||||
Capitalization of DAC | (172 | ) | (166 | ) | (171 | ) | (176 | ) | (182 | ) | (664 | ) | (695 | ) | ||||||||||||||||
Amortization of DAC and VOBA | 259 | 192 | 173 | 152 | 225 | 812 | 742 | |||||||||||||||||||||||
Amortization of negative VOBA | - | - | - | - | - | - | - | |||||||||||||||||||||||
Interest expense on debt | 1 | - | - | - | - | 1 | - | |||||||||||||||||||||||
Other expenses | 527 | 525 | 545 | 519 | 555 | 2,078 | 2,144 | |||||||||||||||||||||||
Total operating expenses | 2,568 | 2,352 | 2,376 | 2,413 | 2,371 | 9,619 | 9,512 | |||||||||||||||||||||||
Operating earnings before provision for income tax | 228 | 208 | 253 | 184 | 289 | 836 | 934 | |||||||||||||||||||||||
Provision for income tax expense (benefit) | 79 | 73 | 89 | 64 | 101 | 292 | 327 | |||||||||||||||||||||||
Operating earnings | 149 | 135 | 164 | 120 | 188 | 544 | 607 | |||||||||||||||||||||||
Preferred stock dividends | - | - | - | - | - | - | - | |||||||||||||||||||||||
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS | $ | 149 | $ | 135 | $ | 164 | $ | 120 | $ | 188 | $ | 544 | $ | 607 | ||||||||||||||||
Reconciliation to Net Income and Financial Statement Line Item Adjustments from GAAP | ||||||||||||||||||||||||||||||
Operating earnings | $ | 149 | $ | 135 | $ | 164 | $ | 120 | $ | 188 | $ | 544 | $ | 607 | ||||||||||||||||
Adjustments from operating earnings to income (loss) from continuing operations: | ||||||||||||||||||||||||||||||
Net investment gains (losses) | 28 | 25 | 1 | 21 | 7 | 66 | 54 | |||||||||||||||||||||||
Net derivative gains (losses) | (115 | ) | (70 | ) | 81 | 525 | 42 | 22 | 578 | |||||||||||||||||||||
Premiums | - | - | - | - | - | - | - | |||||||||||||||||||||||
Universal life and investment-type product policy fees | (5 | ) | (3 | ) | 1 | 16 | - | 1 | 14 | |||||||||||||||||||||
Net investment income | (13 | ) | (17 | ) | (19 | ) | (22 | ) | (23 | ) | (49 | ) | (81 | ) | ||||||||||||||||
Other revenues | - | - | - | - | - | - | - | |||||||||||||||||||||||
Policyholder benefits and claims and policyholder dividends | - | - | - | - | - | - | - | |||||||||||||||||||||||
Interest credited to policyholder account balances | - | - | - | - | - | - | - | |||||||||||||||||||||||
Capitalization of DAC | - | - | - | - | - | - | - | |||||||||||||||||||||||
Amortization of DAC and VOBA | (12 | ) | - | (4 | ) | (56 | ) | 145 | (90 | ) | 85 | |||||||||||||||||||
Amortization of negative VOBA | - | - | - | - | - | - | - | |||||||||||||||||||||||
Interest expense on debt | - | - | - | - | - | - | - | |||||||||||||||||||||||
Other expenses | 1 | - | - | - | - | 1 | - | |||||||||||||||||||||||
Provision for income tax (expense) benefit | 40 | 23 | (22 | ) | (169 | ) | (61 | ) | 16 | (229 | ) | |||||||||||||||||||
Income (loss) from continuing operations, net of income tax | 73 | 93 | 202 | 435 | 298 | 511 | 1,028 | |||||||||||||||||||||||
Income (loss) from discontinued operations, net of income tax | 1 | 20 | 8 | 7 | (1 | ) | 4 | 34 | �� | |||||||||||||||||||||
Net income (loss) | 74 | 113 | 210 | 442 | 297 | 515 | 1,062 | |||||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interest | - | - | - | - | 2 | - | 2 | |||||||||||||||||||||||
Net income (loss) attributable to MetLife, Inc. | 74 | 113 | 210 | 442 | 295 | 515 | 1,060 | |||||||||||||||||||||||
Less: Preferred stock dividends | - | - | - | - | - | - | - | |||||||||||||||||||||||
Less: Preferred stock redemption premium | - | - | - | - | - | - | - | |||||||||||||||||||||||
Net income (loss) available to MetLife, Inc.’s common shareholders | $ | 74 | $ | 113 | $ | 210 | $ | 442 | $ | 295 | $ | 515 | $ | 1,060 | ||||||||||||||||
Premiums, Fees and Other Revenues (Operating) | $ | 1,680 | $ | 1,463 | $ | 1,510 | $ | 1,523 | $ | 1,621 | $ | 6,101 | $ | 6,117 | ||||||||||||||||
Mortality as a Percentage of Expected | 82.9 | % | 92.5 | % | 84.4 | % | 98.5 | % | 81.1 | % | ||||||||||||||||||||
Lapse Ratio | ||||||||||||||||||||||||||||||
Traditional Life | 6.4 | % | 6.5 | % | 6.6 | % | 6.8 | % | 6.1 | % | ||||||||||||||||||||
Variable & Universal Life | 6.1 | % | 6.0 | % | 5.8 | % | 5.8 | % | 5.4 | % |
13
U.S. BUSINESS
INSURANCE PRODUCTS—NON-MEDICAL HEALTH
STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS—PRODUCT LEVEL
For the Three Months Ended | For the Year Ended | |||||||||||||||||||||||||||||
Unaudited (In millions, except ratios) | December 31, 2010 | March 31, 2011 | June 30, 2011 | September 30, 2011 | December 31, 2011 | December 31, 2010 | December 31, 2011 | |||||||||||||||||||||||
OPERATING REVENUES | ||||||||||||||||||||||||||||||
Premiums | $ | 1,478 | $ | 1,476 | $ | 1,462 | $ | 1,455 | $ | 1,461 | $ | 5,906 | $ | 5,854 | ||||||||||||||||
Universal life and investment-type product policy fees | - | - | - | - | - | - | - | |||||||||||||||||||||||
Net investment income | 232 | 232 | 248 | 252 | 247 | 888 | 979 | |||||||||||||||||||||||
Other revenues | 89 | 91 | 91 | 93 | 97 | 357 | 372 | |||||||||||||||||||||||
Total operating revenues | 1,799 | 1,799 | 1,801 | 1,800 | 1,805 | 7,151 | 7,205 | |||||||||||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||||||||
Policyholder benefits and claims and policyholder dividends | 1,326 | 1,294 | 1,280 | 1,260 | 1,298 | 5,269 | 5,132 | |||||||||||||||||||||||
Interest credited to policyholder account balances | 4 | 3 | 3 | 3 | 4 | 19 | 13 | |||||||||||||||||||||||
Capitalization of DAC | (38 | ) | (45 | ) | (39 | ) | (33 | ) | (35 | ) | (162 | ) | (152 | ) | ||||||||||||||||
Amortization of DAC and VOBA | 39 | 36 | 36 | 31 | 36 | 139 | 139 | |||||||||||||||||||||||
Amortization of negative VOBA | - | - | - | - | - | - | - | |||||||||||||||||||||||
Interest expense on debt | - | - | - | - | - | - | - | |||||||||||||||||||||||
Other expenses | 372 | 360 | 352 | 356 | 367 | 1,413 | 1,435 | |||||||||||||||||||||||
Total operating expenses | 1,703 | 1,648 | 1,632 | 1,617 | 1,670 | 6,678 | 6,567 | |||||||||||||||||||||||
Operating earnings before provision for income tax | 96 | 151 | 169 | 183 | 135 | 473 | 638 | |||||||||||||||||||||||
Provision for income tax expense (benefit) | 34 | 53 | 59 | 64 | 47 | 166 | 223 | |||||||||||||||||||||||
Operating earnings | 62 | 98 | 110 | 119 | 88 | 307 | 415 | |||||||||||||||||||||||
Preferred stock dividends | - | - | - | - | - | - | - | |||||||||||||||||||||||
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS | $ | 62 | $ | 98 | $ | 110 | $ | 119 | $ | 88 | $ | 307 | $ | 415 | ||||||||||||||||
Reconciliation to Net Income and Financial Statement | ||||||||||||||||||||||||||||||
Operating earnings | $ | 62 | $ | 98 | $ | 110 | $ | 119 | $ | 88 | $ | 307 | $ | 415 | ||||||||||||||||
Adjustments from operating earnings to income (loss) from continuing operations: | ||||||||||||||||||||||||||||||
Net investment gains (losses) | (1 | ) | 9 | 8 | 8 | (8 | ) | 28 | 17 | |||||||||||||||||||||
Net derivative gains (losses) | (372 | ) | (77 | ) | 144 | 1,016 | 105 | 122 | 1,188 | |||||||||||||||||||||
Premiums | - | - | - | - | - | - | - | |||||||||||||||||||||||
Universal life and investment-type product policy fees | - | - | - | - | - | - | - | |||||||||||||||||||||||
Net investment income | (9 | ) | (14 | ) | (16 | ) | (17 | ) | (16 | ) | (31 | ) | (63 | ) | ||||||||||||||||
Other revenues | - | - | - | - | - | - | - | |||||||||||||||||||||||
Policyholder benefits and claims and policyholder dividends | - | - | - | 1 | (1 | ) | (5 | ) | - | |||||||||||||||||||||
Interest credited to policyholder account balances | - | - | - | - | - | - | - | |||||||||||||||||||||||
Capitalization of DAC | - | - | - | - | - | - | - | |||||||||||||||||||||||
Amortization of DAC and VOBA | - | - | - | - | - | - | - | |||||||||||||||||||||||
Amortization of negative VOBA | - | - | - | - | - | - | - | |||||||||||||||||||||||
Interest expense on debt | - | - | - | - | - | - | - | |||||||||||||||||||||||
Other expenses | - | - | - | 1 | (1 | ) | - | - | ||||||||||||||||||||||
Provision for income tax (expense) benefit | 133 | 29 | (48 | ) | (353 | ) | (27 | ) | (41 | ) | (399 | ) | ||||||||||||||||||
Income (loss) from continuing operations, net of income tax | (187 | ) | 45 | 198 | 775 | 140 | 380 | 1,158 | ||||||||||||||||||||||
Income (loss) from discontinued operations, net of income tax | - | - | - | - | - | - | - | |||||||||||||||||||||||
Net income (loss) | (187 | ) | 45 | 198 | 775 | 140 | 380 | 1,158 | ||||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interest | - | - | - | - | (1 | ) | - | (1 | ) | |||||||||||||||||||||
Net income (loss) attributable to MetLife, Inc. | (187 | ) | 45 | 198 | 775 | 141 | 380 | 1,159 | ||||||||||||||||||||||
Less: Preferred stock dividends | - | - | - | - | - | - | - | |||||||||||||||||||||||
Less: Preferred stock redemption premium | - | - | - | - | - | - | - | |||||||||||||||||||||||
Net income (loss) available to MetLife, Inc.’s common shareholders | $ | (187 | ) | $ | 45 | $ | 198 | $ | 775 | $ | 141 | $ | 380 | $ | 1,159 | |||||||||||||||
Premiums, Fees and Other Revenues (Operating) | $ | 1,567 | $ | 1,567 | $ | 1,553 | $ | 1,548 | $ | 1,558 | $ | 6,263 | $ | 6,226 | ||||||||||||||||
Non-Medical Health Benefit Ratio | 89.7 | % | 87.7 | % | 87.5 | % | 86.6 | % | 88.9 | % |
14
U.S. BUSINESS
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 | ||||||||||||||||||||
Unaudited (In millions) | December 31, 2010 | March 31,2011 | June 30, 2011 | September 30, 2011 | December 31, 2011 | |||||||||||||||
Balance, beginning of period | $ | 12,005 | $ | 11,892 | $ | 11,963 | $ | 11,744 | $ | 11,587 | ||||||||||
Premiums and deposits | 3,292 | 3,418 | 3,038 | 2,791 | 2,731 | |||||||||||||||
Surrenders and withdrawals | (1,423 | ) | (1,379 | ) | (1,231 | ) | (1,087 | ) | (896 | ) | ||||||||||
Benefit payments | (1,900 | ) | (1,888 | ) | (1,844 | ) | (1,827 | ) | (1,833 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net Flows | (31 | ) | 151 | (37 | ) | (123 | ) | 2 | ||||||||||||
Net transfers from (to) separate account | - | 2 | 2 | 3 | 2 | |||||||||||||||
Interest | 73 | 67 | 69 | 69 | 68 | |||||||||||||||
Policy charges | (123 | ) | (120 | ) | (133 | ) | (109 | ) | (122 | ) | ||||||||||
Other | (32 | ) | (29 | ) | (120 | ) | 3 | (81 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Balance, end of period | $ | 11,892 | $ | 11,963 | $ | 11,744 | $ | 11,587 | $ | 11,456 | ||||||||||
INDIVIDUAL LIFE
| ||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||
Unaudited (In millions) | December 31, 2010 | March 31,2011 | June 30, 2011 | September 30, 2011 | December 31, 2011 | |||||||||||||||
Balance, beginning of period | $ | 75,300 | $ | 76,264 | $ | 76,713 | $ | 77,207 | $ | 77,654 | ||||||||||
Premiums and deposits | 2,181 | 2,108 | 2,055 | 2,066 | 2,157 | |||||||||||||||
Surrenders and withdrawals | (944 | ) | (943 | ) | (895 | ) | (905 | ) | (887 | ) | ||||||||||
Benefit payments | (621 | ) | (678 | ) | (627 | ) | (694 | ) | (670 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net Flows | 616 | 487 | 533 | 467 | 600 | |||||||||||||||
Net transfers from (to) separate account | 32 | 23 | 36 | 27 | 27 | |||||||||||||||
Interest | 766 | 765 | 767 | 777 | 780 | |||||||||||||||
Policy charges | (414 | ) | (419 | ) | (428 | ) | (435 | ) | (446 | ) | ||||||||||
Other | (36 | ) | (407 | ) | (414 | ) | (389 | ) | (666 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Balance, end of period | $ | 76,264 | $ | 76,713 | $ | 77,207 | $ | 77,654 | $ | 77,949 | ||||||||||
NON-MEDICAL HEALTH
| ||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||
Unaudited (In millions) | December 31, 2010 | March 31,2011 | June 30, 2011 | September 30, 2011 | December 31, 2011 | |||||||||||||||
Balance, beginning of period | $ | 13,901 | $ | 14,187 | $ | 14,384 | $ | 14,581 | $ | 14,802 | ||||||||||
Premiums and deposits | 1,500 | 1,504 | 1,488 | 1,583 | 1,488 | |||||||||||||||
Surrenders and withdrawals | (3 | ) | (3 | ) | (3 | ) | (103 | ) | (3 | ) | ||||||||||
Benefit payments | (1,093 | ) | (1,136 | ) | (1,116 | ) | (1,074 | ) | (1,073 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net Flows | 404 | 365 | 369 | 406 | 412 | |||||||||||||||
Net transfers from (to) separate account | - | - | - | - | - | |||||||||||||||
Interest | 157 | 157 | 161 | 164 | 167 | |||||||||||||||
Policy charges | - | - | - | - | - | |||||||||||||||
Other | (275 | ) | (325 | ) | (333 | ) | (349 | ) | (200 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Balance, end of period | $ | 14,187 | $ | 14,384 | $ | 14,581 | $ | 14,802 | $ | 15,181 | ||||||||||
SEPARATE ACCOUNT LIABILITIES
GROUP LIFE
| ||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||
Unaudited (In millions) | December 31, 2010 | March 31,2011 | June 30, 2011 | September 30, 2011 | December 31, 2011 | |||||||||||||||
Balance, beginning of period | $ | 456 | $ | 491 | $ | 516 | $ | 516 | $ | 444 | ||||||||||
Premiums and deposits | 45 | 50 | 47 | 47 | 47 | |||||||||||||||
Surrenders and withdrawals | (14 | ) | (10 | ) | (7 | ) | (8 | ) | (7 | ) | ||||||||||
Benefit payments | (1 | ) | - | - | - | - | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net Flows | 30 | 40 | 40 | 39 | 40 | |||||||||||||||
Investment performance | 40 | 24 | - | (70 | ) | 34 | ||||||||||||||
Net transfers from (to) general account | - | (2 | ) | (2 | ) | (3 | ) | (2 | ) | |||||||||||
Policy charges | (35 | ) | (37 | ) | (38 | ) | (38 | ) | (38 | ) | ||||||||||
Other | - | - | - | - | - | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Balance, end of period | $ | 491 | $ | 516 | $ | 516 | $ | 444 | $ | 478 | ||||||||||
INDIVIDUAL LIFE
| ||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||
Unaudited (In millions) | December 31, 2010 | March 31,2011 | June 30, 2011 | September 30, 2011 | December 31, 2011 | |||||||||||||||
Balance, beginning of period | $ | 8,576 | $ | 9,076 | $ | 9,368 | $ | 9,301 | $ | 8,071 | ||||||||||
Premiums and deposits | 190 | 193 | 184 | 178 | 240 | |||||||||||||||
Surrenders and withdrawals | (153 | ) | (139 | ) | (131 | ) | (116 | ) | (109 | ) | ||||||||||
Benefit payments | (9 | ) | (12 | ) | (14 | ) | (8 | ) | (8 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net Flows | 28 | 42 | 39 | 54 | 123 | |||||||||||||||
Investment performance | 652 | 413 | 69 | (1,121 | ) | 576 | ||||||||||||||
Net transfers from (to) general account | (32 | ) | (23 | ) | (36 | ) | (27 | ) | (27 | ) | ||||||||||
Policy charges | (139 | ) | (139 | ) | (139 | ) | (136 | ) | (136 | ) | ||||||||||
Other | (9 | ) | (1 | ) | - | - | (661 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Balance, end of period | $ | 9,076 | $ | 9,368 | $ | 9,301 | $ | 8,071 | 7,946 |
15
U.S. BUSINESS
INSURANCE PRODUCTS
OTHER EXPENSES BY MAJOR CATEGORY AND INDIVIDUAL LIFE SALES BY PRODUCT
OTHER EXPENSES
For the Three Months Ended | ||||||||||||||||||||
Unaudited (In millions) | December 31, 2010 | March 31, 2011 | June 30, 2011 | September 30, 2011 | December 31, 2011 | |||||||||||||||
Direct and allocated expenses | $ | 593 | $ | 581 | $ | 584 | $ | 562 | $ | 617 | ||||||||||
Pension and post-retirement benefit costs | 52 | 51 | 51 | 55 | 51 | |||||||||||||||
Premium taxes, other taxes, and licenses & fees | 81 | 71 | 73 | 66 | 68 | |||||||||||||||
Total fixed operating expenses | $ | 726 | $ | 703 | $ | 708 | $ | 683 | $ | 736 | ||||||||||
Commissions and other variable expenses | 333 | 322 | 330 | 333 | 328 | |||||||||||||||
Total other expenses | $ | 1,059 | $ | 1,025 | $ | 1,038 | $ | 1,016 | $ | 1,064 | ||||||||||
INDIVIDUAL LIFE SALES BY PRODUCT (1) | ||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||
Unaudited (In millions) | December 31, 2010 | March 31, 2011 | June 30, 2011 | September 30, 2011 | December 31, 2011 | |||||||||||||||
Individual Life Sales | ||||||||||||||||||||
Term Life | $ | 32 | $ | 30 | $ | 33 | $ | 32 | $ | 35 | ||||||||||
Whole Life | 29 | 27 | 30 | 27 | 29 | |||||||||||||||
Variable Life | 8 | 9 | 11 | 9 | 16 | |||||||||||||||
Universal Life | 61 | 57 | 54 | 52 | 56 | |||||||||||||||
Total Individual Life sales (2) | $ | 130 | $ | 123 | $ | 128 | $ | 120 | $ | 136 |
(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 $136 million of Individual Life Sales during the three months ended December 31, 2011, approximately 33% were distributed through MetLife agents, 12% through New England Financial agents, 51% through MetLife’s third party channels and 4% through other channels. |
16
U.S. BUSINESS
INSURANCE PRODUCTS
GROUP LIFE
For the Three Months Ended | ||||||||||||||||||||
Unaudited | December 31, 2010 | March 31, 2011 | June 30, 2011 | September 30, 2011 | December 31, 2011 | |||||||||||||||
Investment income yield | 5.40% | 5.52% | 5.73% | 5.66% | 5.62% | |||||||||||||||
Average crediting rate | 2.06% | 2.01% | 2.07% | 2.11% | 2.01% | |||||||||||||||
Annualized general account spread | 3.34% | 3.51% | 3.66% | 3.55% | 3.61% |
VARIABLE & UNIVERSAL LIFE
For the Three Months Ended | ||||||||||||||||||||
Unaudited | December 31, 2010 | March 31, 2011 | June 30, 2011 | September 30, 2011 | December 31, 2011 | |||||||||||||||
Investment income yield | 6.44% | 6.72% | 6.57% | 6.33% | 5.80% | |||||||||||||||
Average crediting rate | 4.63% | 4.53% | 4.47% | 4.55% | 4.49% | |||||||||||||||
Annualized general account spread (1) | 1.81% | 2.19% | 2.10% | 1.78% | 1.31% |
NON-MEDICAL HEALTH
For the Three Months Ended | ||||||||||||||||||||
Unaudited | December 31, 2010 | March 31, 2011 | June 30, 2011 | September 30, 2011 | December 31, 2011 | |||||||||||||||
Investment income yield | 6.38% | 6.19% | 6.53% | 6.35% | 6.40% | |||||||||||||||
Average crediting rate | 4.72% | 4.70% | 4.70% | 4.66% | 4.68% | |||||||||||||||
Annualized general account spread | 1.66% | 1.49% | 1.83% | 1.69% | 1.72% |
(1) | This represents the general account spread for Variable & Universal Life, a component of Individual Life. |
17
18
U.S. BUSINESS
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 | ||||||||||||||||||||
Unaudited (In millions) | December 31, 2010 | March 31, 2011 | June 30, 2011 | September 30, 2011 | December 31, 2011 | |||||||||||||||
Balance, beginning of period | $ | 57,485 | $ | 55,346 | $ | 54,973 | $ | 55,675 | $ | 60,319 | ||||||||||
Premiums and deposits (1), (2) | 1,775 | 1,745 | 2,027 | 2,812 | 2,311 | |||||||||||||||
Surrenders and withdrawals | (999 | ) | (913 | ) | (921 | ) | (991 | ) | (1,300 | ) | ||||||||||
Benefit payments | (469 | ) | (496 | ) | (493 | ) | (503 | ) | (487 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net Flows | 307 | 336 | 613 | 1,318 | 524 | |||||||||||||||
Net transfers from (to) separate account | (1,131 | ) | (846 | ) | (733 | ) | (624 | ) | (1,401 | ) | ||||||||||
Interest | 560 | 545 | 546 | 551 | 540 | |||||||||||||||
Policy charges | (16 | ) | (17 | ) | (20 | ) | (19 | ) | (15 | ) | ||||||||||
Other | (1,859 | ) | (391 | ) | 296 | 3,418 | (823 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Balance, end of period | $ | 55,346 | $ | 54,973 | $ | 55,675 | $ | 60,319 | $ | 59,144 | ||||||||||
SEPARATE ACCOUNT LIABILITIES
| ||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||
Unaudited (In millions) | December 31, 2010 | March 31, 2011 | June 30, 2011 | September 30, 2011 | December 31, 2011 | |||||||||||||||
Balance, beginning of period | $ | 97,587 | $ | 107,335 | $ | 114,569 | $ | 118,522 | $ | 108,707 | ||||||||||
Premiums and deposits (1) | 3,978 | 4,564 | 5,703 | 6,787 | 5,778 | |||||||||||||||
Surrenders and withdrawals | (1,851 | ) | (2,106 | ) | (2,330 | ) | (2,112 | ) | (1,993 | ) | ||||||||||
Benefit payments | (205) | (206) | (219) | (209) | (203) | |||||||||||||||
Net Flows | 1,922 | 2,252 | 3,154 | 4,466 | 3,582 | |||||||||||||||
Investment performance | 7,191 | 4,664 | 655 | (14,336 | ) | 7,219 | ||||||||||||||
Net transfers from (to) general account | 1,131 | 846 | 733 | 624 | 1,401 | |||||||||||||||
Policy charges | (496 | ) | (529 | ) | (589 | ) | (574 | ) | (589 | ) | ||||||||||
Other | - | 1 | - | 5 | (34) | |||||||||||||||
Balance, end of period | $ | 107,335 | $ | 114,569 | $ | 118,522 | $ | 108,707 | $ | 120,286 |
(1) | Includes company sponsored internal exchanges. |
(2) | Includes premiums and deposits directed to the General Account investment option of a variable annuity product. |
19
U.S. BUSINESS
RETIREMENT PRODUCTS
OTHER EXPENSES BY MAJOR CATEGORY AND INDIVIDUAL ANNUITY SALES BY PRODUCT
OTHER EXPENSES
For the Three Months Ended | ||||||||||||||||||||
Unaudited (In millions) | December 31, 2010 | March 31, 2011 | June 30, 2011 | September 30, 2011 | December 31, 2011 | |||||||||||||||
Direct and allocated expenses | $ | 180 | $ | 181 | $ | 198 | $ | 187 | $ | 203 | ||||||||||
Pension and post-retirement benefit costs | 21 | 20 | 20 | 21 | 20 | |||||||||||||||
Premium taxes, other taxes, and licenses & fees | 6 | 7 | 7 | 6 | 12 | |||||||||||||||
Total fixed operating expenses | $ | 207 | $ | 208 | $ | 225 | $ | 214 | $ | 235 | ||||||||||
Commissions and other variable expenses | 446 | 470 | 559 | 653 | 579 | |||||||||||||||
Total other expenses | $ | 653 | $ | 678 | $ | 784 | $ | 867 | $ | 814 | ||||||||||
INDIVIDUAL ANNUITY SALES BY PRODUCT (1) | ||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||
Unaudited (in millions) | December 31, 2010 | March 31, 2011 | June 30, 2011 | September 30, 2011 | December 31, 2011 | |||||||||||||||
Individual Annuity Sales | ||||||||||||||||||||
Annuities Sales (1) | ||||||||||||||||||||
Fixed annuity sales | $ | 383 | $ | 362 | $ | 376 | $ | 617 | $ | 548 | ||||||||||
Variable annuity sales | 5,129 | 5,691 | 6,971 | 8,561 | 7,229 | |||||||||||||||
Total annuity sales (2) | $ | 5,512 | $ | 6,053 | $ | 7,347 | $ | 9,178 | $ | 7,777 | ||||||||||
Separate Account and General Account | ||||||||||||||||||||
Separate Accounts | ||||||||||||||||||||
Total variable annuities separate accounts | $ | 3,809 | $ | 4,384 | $ | 5,398 | $ | 6,442 | $ | 5,538 | ||||||||||
General Accounts | ||||||||||||||||||||
Fixed annuity | 383 | 362 | 376 | 617 | 548 | |||||||||||||||
Variable annuity | 1,320 | 1,307 | 1,573 | 2,119 | 1,691 | |||||||||||||||
Total general accounts | 1,703 | 1,669 | 1,949 | 2,736 | 2,239 | |||||||||||||||
Total premiums and deposits | $ | 5,512 | $ | 6,053 | $ | 7,347 | $ | 9,178 | $ | 7,777 |
(1) | Statutory premiums direct and assumed, excluding company sponsored internal exchanges. |
(2) | Of the $7,777 million of Individual Annuity Sales during the three months ended December 31, 2011, approximately 16% were distributed through MetLife agents, 5% through New England Financial agents, 71% through MetLife’s third party channels, 6% through MetLife Resources representatives, 1% through Retirement & Benefit Funding, and 1% through other distribution channels. |
20
U.S. BUSINESS | ||||||||||||||||||||
RETIREMENT PRODUCTS | ||||||||||||||||||||
DEFERRED ANNUITIES | ||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||
Unaudited | December 31, 2010 | March 31, 2011 | June 30, 2011 | September 30, 2011 | December 31, 2011 | |||||||||||||||
Investment income yield | 6.47 | % | 6.17 | % | 6.11 | % | 6.07 | % | 6.48 | % | ||||||||||
Average crediting rate | 3.65 | % | 3.58 | % | 3.54 | % | 3.50 | % | 3.47 | % | ||||||||||
Annualized general account spread | 2.82 | % | 2.59 | % | 2.57 | % | 2.57 | % | 3.01 | % |
21
U.S. BUSINESS
CORPORATE BENEFIT FUNDING
STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
For the Three Months Ended | For the Year Ended | |||||||||||||||||||||||||||||
Unaudited (In millions) | December 31, 2010 | March 31, 2011 | June 30, 2011 | September 30, 2011 | December 31, 2011 | December 31, 2010 | December 31, 2011 | |||||||||||||||||||||||
OPERATING REVENUES | ||||||||||||||||||||||||||||||
Premiums | $ | 391 | $ | 291 | $ | 781 | $ | 724 | $ | 622 | $ | 1,938 | $ | 2,418 | ||||||||||||||||
Universal life and investment-type product policy fees | 57 | 54 | 58 | 69 | 50 | 226 | 231 | |||||||||||||||||||||||
Net investment income | 1,313 | 1,311 | 1,325 | 1,289 | 1,256 | 4,954 | 5,181 | |||||||||||||||||||||||
Other revenues | 65 | 60 | 61 | 61 | 67 | 246 | 249 | |||||||||||||||||||||||
Total operating revenues | 1,826 | 1,716 | 2,225 | 2,143 | 1,995 | 7,364 | 8,079 | |||||||||||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||||||||
Policyholder benefits and claims and policyholder dividends | 926 | 821 | 1,292 | 1,287 | 1,194 | 4,041 | 4,594 | |||||||||||||||||||||||
Interest credited to policyholder account balances | 346 | 335 | 330 | 327 | 329 | 1,445 | 1,321 | |||||||||||||||||||||||
Capitalization of DAC | (2 | ) | (12 | ) | (6 | ) | (6 | ) | (3 | ) | (19 | ) | (27 | ) | ||||||||||||||||
Amortization of DAC and VOBA | 4 | 5 | 5 | 4 | 3 | 16 | 17 | |||||||||||||||||||||||
Amortization of negative VOBA | - | - | - | - | - | - | - | |||||||||||||||||||||||
Interest expense on debt | 3 | 2 | 2 | 2 | 2 | 6 | 8 | |||||||||||||||||||||||
Other expenses | 114 | 119 | 118 | 126 | 124 | 460 | 487 | |||||||||||||||||||||||
Total operating expenses | 1,391 | 1,270 | 1,741 | 1,740 | 1,649 | 5,949 | 6,400 | |||||||||||||||||||||||
Operating earnings before provision for income tax | 435 | 446 | 484 | 403 | 346 | 1,415 | 1,679 | |||||||||||||||||||||||
Provision for income tax expense (benefit) | 152 | 157 | 170 | 139 | 122 | 495 | 588 | |||||||||||||||||||||||
Operating earnings | 283 | 289 | 314 | 264 | 224 | 920 | 1,091 | |||||||||||||||||||||||
Preferred stock dividends | - | - | - | - | - | - | - | |||||||||||||||||||||||
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS | $ | 283 | $ | 289 | $ | 314 | $ | 264 | $ | 224 | $ | 920 | $ | 1,091 | ||||||||||||||||
Reconciliation to Net Income and Financial Statement Line Item Adjustments from GAAP | ||||||||||||||||||||||||||||||
Operating earnings | $ | 283 | $ | 289 | $ | 314 | $ | 264 | $ | 224 | $ | 920 | $ | 1,091 | ||||||||||||||||
Adjustments from operating earnings to income (loss) from continuing operations: | ||||||||||||||||||||||||||||||
Net investment gains (losses) | 65 | 12 | (12 | ) | 86 | (63 | ) | 176 | 23 | |||||||||||||||||||||
Net derivative gains (losses) | (39 | ) | (127 | ) | (52 | ) | 407 | 138 | (162 | ) | 366 | |||||||||||||||||||
Premiums | - | - | - | - | - | - | - | |||||||||||||||||||||||
Universal life and investment-type product policy fees | - | - | - | - | - | - | - | |||||||||||||||||||||||
Net investment income | 48 | 44 | 35 | 38 | 28 | 190 | 145 | |||||||||||||||||||||||
Other revenues | - | - | - | - | - | - | - | |||||||||||||||||||||||
Policyholder benefits and claims and policyholder dividends | 30 | 8 | (12 | ) | (38 | ) | 7 | (42 | ) | (35 | ) | |||||||||||||||||||
Interest credited to policyholder account balances | (8 | ) | (8 | ) | (8 | ) | (2 | ) | (1 | ) | (11 | ) | (19 | ) | ||||||||||||||||
Capitalization of DAC | - | - | - | - | - | - | - | |||||||||||||||||||||||
Amortization of DAC and VOBA | - | - | - | - | - | - | - | |||||||||||||||||||||||
Amortization of negative VOBA | - | - | - | - | - | - | - | |||||||||||||||||||||||
Interest expense on debt | - | - | - | - | - | - | - | |||||||||||||||||||||||
Other expenses | 1 | - | 1 | 2 | (3 | ) | 3 | - | ||||||||||||||||||||||
Provision for income tax (expense) benefit | (28 | ) | 25 | 17 | (173 | ) | (35 | ) | (54 | ) | (166 | ) | ||||||||||||||||||
Income (loss) from continuing operations, net of income tax | 352 | 243 | 283 | 584 | 295 | 1,020 | 1,405 | |||||||||||||||||||||||
Income (loss) from discontinued operations, net of income tax | 3 | - | 21 | 5 | (1 | ) | 14 | 25 | ||||||||||||||||||||||
Net income (loss) | 355 | 243 | 304 | 589 | 294 | 1,034 | 1,430 | |||||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interest | 1 | - | - | 2 | (4 | ) | 2 | (2 | ) | |||||||||||||||||||||
Net income (loss) attributable to MetLife, Inc. | 354 | 243 | 304 | 587 | 298 | 1,032 | 1,432 | |||||||||||||||||||||||
Less: Preferred stock dividends | - | - | - | - | - | - | - | |||||||||||||||||||||||
Less: Preferred stock redemption premium | - | - | - | - | - | - | - | |||||||||||||||||||||||
Net income (loss) available to MetLife, Inc.’s common shareholders | $ | 354 | $ | 243 | $ | 304 | $ | 587 | $ | 298 | $ | 1,032 | $ | 1,432 | ||||||||||||||||
Premiums, Fees and Other Revenues (Operating) | $ | 513 | $ | 405 | $ | 900 | $ | 854 | $ | 739 | $ | 2,410 | $ | 2,898 |
22
23
U.S. BUSINESS | ||||||||||||||||||||
CORPORATE BENEFIT FUNDING | ||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||
Unaudited (In millions) | December 31, 2010 | March 31, 2011 | June 30, 2011 | September 30, 2011 | December 31, 2011 | |||||||||||||||
Direct and allocated expenses | $ | 65 | $ | 64 | $ | 64 | $ | 66 | $ | 81 | ||||||||||
Pension and post-retirement benefit costs | 11 | 11 | 11 | 11 | 11 | |||||||||||||||
Premium taxes, other taxes, and licenses & fees | 1 | 6 | 5 | 10 | 4 | |||||||||||||||
Total fixed operating expenses | $ | 77 | $ | 81 | $ | 80 | $ | 87 | $ | 96 | ||||||||||
Commissions and other variable expenses | 37 | 38 | 38 | 39 | 28 | |||||||||||||||
Total other expenses | $ | 114 | $ | 119 | $ | 118 | $ | 126 | $ | 124 |
24
25
26
27
INTERNATIONAL
JAPAN
STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
For the Three Months Ended | For the Year Ended | |||||||||||||||||||||||||||||
Unaudited (In millions) | December 31, 2010 | March 31, 2011 | June 30, 2011 | September 30, 2011 | December 31, 2011 | December 31, 2010 | December 31, 2011 | |||||||||||||||||||||||
OPERATING REVENUES | ||||||||||||||||||||||||||||||
Premiums | $ | 499 | $ | 1,517 | $ | 1,602 | $ | 1,601 | $ | 1,605 | $ | 499 | $ | 6,325 | ||||||||||||||||
Universal life and investment-type product policy fees | 55 | 194 | 195 | 220 | 215 | 55 | 824 | |||||||||||||||||||||||
Net investment income | 145 | 439 | 517 | 540 | 583 | 145 | 2,079 | |||||||||||||||||||||||
Other revenues | 7 | 9 | 4 | 5 | 4 | 7 | 22 | |||||||||||||||||||||||
Total operating revenues | 706 | 2,159 | 2,318 | 2,366 | 2,407 | 706 | 9,250 | |||||||||||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||||||||
Policyholder benefits and claims and policyholder dividends | 309 | 949 | 1,019 | 999 | 1,006 | 309 | 3,973 | |||||||||||||||||||||||
Interest credited to policyholder account balances | 123 | 369 | 388 | 401 | 403 | 123 | 1,561 | |||||||||||||||||||||||
Capitalization of DAC | (149 | ) | (522 | ) | (519 | ) | (619 | ) | (590 | ) | (149 | ) | (2,250 | ) | ||||||||||||||||
Amortization of DAC and VOBA | 82 | 292 | 371 | 318 | 331 | 82 | 1,312 | |||||||||||||||||||||||
Amortization of negative VOBA | (49 | ) | (146 | ) | (141 | ) | (135 | ) | (133 | ) | (49 | ) | (555 | ) | ||||||||||||||||
Interest expense on debt | - | - | - | - | - | - | - | |||||||||||||||||||||||
Other expenses | 244 | 770 | 823 | 909 | 896 | 244 | 3,398 | |||||||||||||||||||||||
Total operating expenses | 560 | 1,712 | 1,941 | 1,873 | 1,913 | 560 | 7,439 | |||||||||||||||||||||||
Operating earnings before provision for income tax | 146 | 447 | 377 | 493 | 494 | 146 | 1,811 | |||||||||||||||||||||||
Provision for income tax expense (benefit) | 52 | 157 | 132 | 178 | 168 | 52 | 635 | |||||||||||||||||||||||
Operating earnings | 94 | 290 | 245 | 315 | 326 | 94 | 1,176 | |||||||||||||||||||||||
Preferred stock dividends | - | - | - | - | - | - | - | |||||||||||||||||||||||
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS | $ | 94 | $ | 290 | $ | 245 | $ | 315 | $ | 326 | $ | 94 | $ | 1,176 | ||||||||||||||||
Reconciliation to Net Income and Financial Statement Line Item Adjustments from GAAP | ||||||||||||||||||||||||||||||
Operating earnings | $ | 94 | $ | 290 | $ | 245 | $ | 315 | $ | 326 | $ | 94 | $ | 1,176 | ||||||||||||||||
Adjustments from operating earnings to income (loss) from continuing operations: | ||||||||||||||||||||||||||||||
Net investment gains (losses) | (9 | ) | (47 | ) | (47 | ) | (21 | ) | (106 | ) | (9 | ) | (221 | ) | ||||||||||||||||
Net derivative gains (losses) | (144 | ) | (8 | ) | 135 | 101 | (28 | ) | (144 | ) | 200 | |||||||||||||||||||
Premiums | - | - | - | - | - | - | - | |||||||||||||||||||||||
Universal life and investment-type product policy fees | - | - | - | - | - | - | - | |||||||||||||||||||||||
Net investment income | 116 | 259 | (168 | ) | (354 | ) | (156 | ) | 116 | (419 | ) | |||||||||||||||||||
Other revenues | - | - | 3 | 5 | 4 | - | 12 | |||||||||||||||||||||||
Policyholder benefits and claims and policyholder dividends | 5 | (8 | ) | (10 | ) | (9 | ) | (22 | ) | 5 | (49 | ) | ||||||||||||||||||
Interest credited to policyholder account balances | (116 | ) | (259 | ) | 197 | 332 | 164 | (116 | ) | 434 | ||||||||||||||||||||
Capitalization of DAC | - | - | - | - | - | - | - | |||||||||||||||||||||||
Amortization of DAC and VOBA | - | - | - | (20 | ) | 1 | - | (19 | ) | |||||||||||||||||||||
Amortization of negative VOBA | 7 | 19 | 19 | 19 | 17 | 7 | 74 | |||||||||||||||||||||||
Interest expense on debt | - | - | - | - | - | - | - | |||||||||||||||||||||||
Other expenses | - | - | 5 | (15 | ) | 15 | - | 5 | ||||||||||||||||||||||
Provision for income tax (expense) benefit | 49 | 16 | (48 | ) | (12 | ) | 41 | 49 | (3 | ) | ||||||||||||||||||||
Income (loss) from continuing operations, net of income tax | 2 | 262 | 331 | 341 | 256 | 2 | 1,190 | |||||||||||||||||||||||
Income (loss) from discontinued operations, net of income tax | - | - | - | - | - | - | - | |||||||||||||||||||||||
Net income (loss) | 2 | 262 | 331 | 341 | 256 | 2 | 1,190 | |||||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interest | - | - | 1 | 2 | 2 | - | 5 | |||||||||||||||||||||||
Net income (loss) attributable to MetLife, Inc. | 2 | 262 | 330 | 339 | 254 | 2 | 1,185 | |||||||||||||||||||||||
Less: Preferred stock dividends | - | - | - | - | - | - | - | |||||||||||||||||||||||
Less: Preferred stock redemption premium | - | - | - | - | - | - | - | |||||||||||||||||||||||
Net income (loss) available to MetLife, Inc.'s common shareholders | $ | 2 | $ | 262 | $ | 330 | $ | 339 | $ | 254 | $ | 2 | $ | 1,185 | ||||||||||||||||
Premiums, Fees and Other Revenues (Operating) | $ | 561 | $ | 1,720 | $ | 1,801 | $ | 1,826 | $ | 1,824 | $ | 561 | $ | 7,171 |
28
29
30
31
METLIFE, INC. |
| |||||||||||||||||||||
INVESTMENT PORTFOLIO RESULTS BY ASSET CATEGORY AND ANNUALIZED YIELDS |
| |||||||||||||||||||||
At or For the Year Ended | ||||||||||||||||||||||
Unaudited (In millions) | December 31, 2010 | March 31, 2011 | June 30, 2011 | September 30, 2011 | December 31, 2011 | |||||||||||||||||
Fixed Maturity Securities | ||||||||||||||||||||||
Yield (1) | 5.54% | 4.91% | 4.93% | 4.95% | 4.94% | |||||||||||||||||
Investment income (2), (3), (4) | $ | 12,567 | $ | 3,693 | $ | 7,487 | $ | 11,208 | $ | 15,016 | ||||||||||||
Investment gains (losses) (3) | (255 | ) | (163 | ) | (268 | ) | (454 | ) | (932 | ) | ||||||||||||
Ending carrying value (2), (3) | 325,391 | 334,409 | 342,607 | 354,611 | 351,011 | |||||||||||||||||
Mortgage Loans | ||||||||||||||||||||||
Yield (1) | 5.51% | 5.54% | 5.52% | 5.54% | 5.53% | |||||||||||||||||
Investment income (3), (4) | 2,821 | 759 | 1,524 | 2,330 | 3,162 | |||||||||||||||||
Investment gains (losses) (3) | 22 | 47 | 115 | 160 | 175 | |||||||||||||||||
Ending carrying value (3) | 55,457 | 55,061 | 56,927 | 59,722 | 61,303 | |||||||||||||||||
Real Estate and Real Estate Joint Ventures | ||||||||||||||||||||||
Yield (1) | 1.10% | 2.83% | 3.85% | 4.15% | 3.76% | |||||||||||||||||
Investment income (3) | 77 | 57 | 156 | 252 | 307 | |||||||||||||||||
Investment gains (losses) (3) | (40 | ) | 29 | 76 | 241 | 230 | ||||||||||||||||
Ending carrying value | 8,030 | 8,042 | 8,234 | 8,197 | 8,563 | |||||||||||||||||
Policy Loans | ||||||||||||||||||||||
Yield (1) | 6.38% | 5.42% | 5.41% | 5.46% | 5.43% | |||||||||||||||||
Investment income | 649 | 160 | 320 | 482 | 641 | |||||||||||||||||
Ending carrying value | 11,761 | 11,872 | 11,858 | 11,932 | 11,892 | |||||||||||||||||
Equity Securities | ||||||||||||||||||||||
Yield (1) | 4.40% | 3.45% | 4.70% | 4.42% | 4.44% | |||||||||||||||||
Investment income | 128 | 30 | 78 | 106 | 141 | |||||||||||||||||
Investment gains (losses) | 104 | 36 | (34 | ) | (37 | ) | (23 | ) | ||||||||||||||
Ending carrying value | 3,602 | 3,584 | 3,238 | 3,118 | 3,023 | |||||||||||||||||
Other Limited Partnership Interests | ||||||||||||||||||||||
Yield (1) | 14.99% | 15.14% | 12.52% | 12.07% | 10.58% | |||||||||||||||||
Investment income | 879 | 243 | 402 | 582 | 681 | |||||||||||||||||
Investment gains (losses) | (18 | ) | 3 | 8 | 8 | 4 | ||||||||||||||||
Ending carrying value | 6,416 | 6,409 | 6,453 | 6,538 | 6,378 | |||||||||||||||||
Cash and Short-term Investments | ||||||||||||||||||||||
Yield (1), (5) | 0.61% | 1.09% | 1.09% | 1.10% | 1.04% | |||||||||||||||||
Investment income | 81 | 43 | 84 | 122 | 155 | |||||||||||||||||
Investment gains (losses) | 2 | - | 1 | 1 | 2 | |||||||||||||||||
Ending carrying value (3) | 22,302 | 19,455 | 22,026 | 25,901 | 27,750 | |||||||||||||||||
Other Invested Assets (1) | ||||||||||||||||||||||
Investment income | 492 | 12 | 177 | 336 | 454 | |||||||||||||||||
Investment gains (losses) (3) | (8 | ) | 4 | (3 | ) | (3 | ) | (9 | ) | |||||||||||||
Ending carrying value | 15,430 | 13,693 | 14,900 | 23,138 | 23,628 | |||||||||||||||||
Total Investments | ||||||||||||||||||||||
Investment income yield (1) | 5.51% | 4.92% | 5.00% | 5.05% | 5.01% | |||||||||||||||||
Investment fees and expenses yield | (0.14 | ) | (0.12 | ) | (0.13 | ) | (0.13 | ) | (0.13 | ) | ||||||||||||
Net Investment Income Yield (1), (3), (5) | 5.37% | 4.80% | 4.87% | 4.92% | 4.88% | |||||||||||||||||
Investment income | $ | 17,694 | $ | 4,997 | $ | 10,228 | $ | 15,418 | $ | 20,557 | ||||||||||||
Investment fees and expenses | (465 | ) | (128 | ) | (266 | ) | (403 | ) | (546 | ) | ||||||||||||
Net Investment Income including Divested businesses | 17,229 | 4,869 | 9,962 | 15,015 | 20,011 | |||||||||||||||||
Less: Net investment Income from Divested businesses (5) | 349 | 84 | 164 | 246 | 335 | |||||||||||||||||
Net Investment Income (3) | 16,880 | 4,785 | 9,798 | 14,769 | 19,676 | |||||||||||||||||
Ending Carrying Value (3) | $ | 448,389 | $ | 452,525 | $ | 466,243 | $ | 493,157 | $ | 493,548 | ||||||||||||
Investment portfolio gains (losses) including Divested businesses | $ | (193 | ) | $ | (44 | ) | $ | (105 | ) | $ | (84 | ) | $ | (553 | ) | |||||||
Less: Investment portfolio gains (losses) from Divested businesses (5) | (33 | ) | (3 | ) | (9 | ) | (2 | ) | (140 | ) | ||||||||||||
Investment Portfolio Gains (Losses) (3), (5) | (160 | ) | (41 | ) | (96 | ) | (82 | ) | (413 | ) | ||||||||||||
Gross investment gains | 1,180 | 285 | 633 | 1,107 | 1,354 | |||||||||||||||||
Gross investment losses | (840 | ) | (243 | ) | (531 | ) | (730 | ) | (1,058 | ) | ||||||||||||
Writedowns | (500 | ) | (83 | ) | (198 | ) | (459 | ) | (709 | ) | ||||||||||||
Investment Portfolio Gains (Losses) (3), (5) | (160 | ) | (41 | ) | (96 | ) | (82 | ) | (413 | ) | ||||||||||||
Investment portfolio gains (losses) income tax (expense) benefit | 46 | 14 | 35 | 30 | 148 | |||||||||||||||||
Investment Portfolio Gains (Losses), Net of Income Tax | $ | (114 | ) | $ | (27 | ) | $ | (61 | ) | $ | (52 | ) | $ | (265 | ) | |||||||
Derivative Gains (Losses) including Divested businesses | $ | (614 | ) | $ | (386 | ) | $ | (93 | ) | $ | 4,036 | $ | 4,545 | |||||||||
Less: Derivative gains (losses) from Divested businesses (5) | (41 | ) | (2 | ) | (11 | ) | (150 | ) | (163 | ) | ||||||||||||
Derivative gains (losses) (3), (5) | (573 | ) | (384 | ) | (82 | ) | 4,186 | 4,708 | ||||||||||||||
Derivative gains (losses) income tax (expense) benefit | 144 | 131 | 24 | (1,472 | ) | (1,643 | ) | |||||||||||||||
Derivative Gains (Losses), Net of Income Tax | $ | (429 | ) | $ | (253 | ) | $ | (58 | ) | $ | 2,714 | $ | 3,065 | |||||||||
(1) | Yields are calculated as investment income as a percent of average quarterly asset carrying values. Investment income excludes recognized gains and losses and reflects the adjustments described on page 2. Asset carrying values exclude unrealized investment gains (losses), collateral received from counterparties associated with our securities lending program, freestanding derivative assets, collateral received from derivative counterparties, the effects of consolidating under GAAP certain VIEs that are treated as CSEs, contractholder-directed unit-linked investments and securitized reverse residential mortgage loans. A yield is not presented for other invested assets, as it is not considered a meaningful measure of performance for this asset class. | |||||||||||||||||||||
(2) | Fixed maturity securities includes $594 million, $745 million, $863 million, $684 million and $740 million in ending carrying value, and $234 million, $28 million, $44 million, $6 million and $31 million of investment income related to trading and other securities at or for the year-to-date period ended December 31, 2010, March 31, 2011, June 30, 2011, September 30, 2011 and December 31, 2011, 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) Fixed maturity securities ending carrying value excludes contractholder-directed unit-linked investments of $17,794 million, $18,459 million, $18,690 million, $17,874 million and $17,411 million at December 31, 2010, March 31, 2011, June 30, 2011, September 30, 2011 and December 31, 2011, respectively; 2) Ending carrying value excludes the effects of consolidating under GAAP certain VIEs that are treated as CSEs which are accounted for under the fair value option as follows: trading and other securities (included within fixed maturity securities in the yield table above) of $201 million, $161 million, $147 million, $140 million and $117 million, mortgage loans of $6,840 million, $6,771 million, $6,697 million, $3,227 million and $3,138 million and cash and short-term investments of $39 million, $59 million, $21 million, $13 million and $21 million at December 31, 2010, March 31, 2011, June 30, 2011, September 30, 2011 and December 31, 2011, respectively ;3) Mortgage loans ending carrying value excludes securitized reverse residential mortgage loans of $7,652 million at December 31, 2011; 4) Net investment income adjustments as presented on page 36 within the reconciliation to Net Income; 5) Investment portfolio gains (losses) presented in the above yield table and GAAP net investment gains (losses) adjustments as presented below; and 6) Derivative gains (losses) presented in the above yield table and GAAP net derivative gains (losses) adjustments as presented below:
|
| ||||||||||||||||||||
For the Year-to-Date Period Ended | ||||||||||||||||||||||
December 31, 2010 | March 31, 2011 | June 30, 2011 | September 30, 2011 | December 31, 2011 | ||||||||||||||||||
Investment portfolio gains (losses)—in above yield table | $ | (193 | ) | $ | (44 | ) | $ | (105 | ) | $ | (84 | ) | $ | (553 | ) | |||||||
Real estate discontinued operations | (14 | ) | (28 | ) | (71 | ) | (97 | ) | (96 | ) | ||||||||||||
Net investment gains (losses) related to certain CSEs | 6 | 25 | 9 | 2 | 5 | |||||||||||||||||
Other gains (losses) reported in net investment gains (losses) on GAAP basis | (207 | ) | (52 | ) | (87 | ) | (130 | ) | (223 | ) | ||||||||||||
Net investment gains (losses) - GAAP basis | $ | (408 | ) | $ | (99 | ) | $ | (254 | ) | $ | (309 | ) | $ | (867 | ) | |||||||
For the Year-to-Date Period Ended | ||||||||||||||||||||||
December 31, 2010 | March 31, 2011 | June 30, 2011 | September 30, 2011 | December 31, 2011 | ||||||||||||||||||
Derivative gains (losses)—in above yield table | $ | (614 | ) | $ | (386 | ) | $ | (93 | ) | $ | 4,036 | $ | 4,545 | |||||||||
Investment hedge adjustments | 208 | 39 | 94 | 164 | 249 | |||||||||||||||||
Joint venture adjustments | 130 | 23 | 23 | 23 | 23 | |||||||||||||||||
Settlement of foreign currency earnings hedges | - | 1 | (3 | ) | (8 | ) | (12 | ) | ||||||||||||||
PAB hedge adjustments | 11 | 8 | 16 | 18 | 19 | |||||||||||||||||
Net derivative gains (losses) - GAAP basis | $ | (265 | ) | $ | (315 | ) | $ | 37 | $ | 4,233 | $ | 4,824 | ||||||||||
(4) | Investment income from fixed maturity securities and mortgage loans includes prepayment fees. | |||||||||||||||||||||
(5) | Prior period yields have been recast to conform to the current period presentation to exclude from asset carrying values freestanding derivatives and collateral received from derivative counterparties. Also, net investment income, investment portfolio gains (losses), and derivative gains (losses) are presented including and excluding the impact of Divested businesses. Yields are calculated including the net investment income and ending carrying values of the Divested businesses. See page 2 for discussion of Divested businesses. |
32
METLIFE, INC. | ||||||||||||||||||||||||||||||||||||||||
GROSS UNREALIZED GAINS AND LOSSES AGING SCHEDULE | ||||||||||||||||||||||||||||||||||||||||
December 31, 2010 | March 31, 2011 | June 30, 2011 | September 30, 2011 | December 31, 2011 | ||||||||||||||||||||||||||||||||||||
Unaudited (In millions) | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | ||||||||||||||||||||||||||||||
Less than 20% | $ | 4,268 | 64.9% | $ | 4,806 | 72.8% | $ | 3,315 | 62.1% | $ | 2,818 | 53.7% | $ | 2,896 | 52.5% | |||||||||||||||||||||||||
20% or more for less than six months | 368 | 5.6% | 446 | 6.8% | 825 | 15.5% | 1,377 | 26.2% | 1,332 | 24.2% | ||||||||||||||||||||||||||||||
20% or more for six months or greater | 1,944 | 29.5% | 1,344 | 20.4% | 1,197 | 22.4% | 1,055 | 20.1% | 1,285 | 23.3% | ||||||||||||||||||||||||||||||
Total Gross Unrealized Losses | $ | 6,580 | 100.0% | $ | 6,596 | 100.0% | $ | 5,337 | 100.0% | $ | 5,250 | 100.0% | $ | 5,513 | 100.0% | |||||||||||||||||||||||||
Total Gross Unrealized Gains | $ | 13,760 | $ | 13,208 | $ | 16,178 | $ | 25,168 | $ | 25,973 | ||||||||||||||||||||||||||||||
GROSS UNREALIZED GAINS AND LOSSES AGING SCHEDULE | ||||||||||||||||||||||||||||||||||||||||
EQUITY SECURITIES AVAILABLE-FOR-SALE (1) | ||||||||||||||||||||||||||||||||||||||||
December 31, 2010 | March 31, 2011 | June 30, 2011 | September 30, 2011 | December 31, 2011 | ||||||||||||||||||||||||||||||||||||
Unaudited (In millions) | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | ||||||||||||||||||||||||||||||
Less than 20% | $ | 71 | 29.5% | $ | 74 | 34.9% | $ | 42 | 36.5% | $ | 53 | 23.3% | $ | 76 | 25.4% | |||||||||||||||||||||||||
20% or more for less than six months | 22 | 9.1% | 18 | 8.5% | 4 | 3.5% | 89 | 39.0% | 123 | 41.1% | ||||||||||||||||||||||||||||||
20% or more for six months or greater | 148 | 61.4% | 120 | 56.6% | 69 | 60.0% | 86 | 37.7% | 100 | 33.5% | ||||||||||||||||||||||||||||||
Total Gross Unrealized Losses | $ | 241 | 100.0% | $ | 212 | 100.0% | $ | 115 | 100.0% | $ | 228 | 100.0% | $ | 299 | 100.0% | |||||||||||||||||||||||||
Total Gross Unrealized Gains | $ | 222 | $ | 283 | $ | 225 | $ | 119 | $ | 114 | ||||||||||||||||||||||||||||||
(1) MetLife, Inc.'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. |
|
33
METLIFE, INC. | ||||||||||||||||||||||||||||||||||||||||||
BY SECTOR AND QUALITY DISTRIBUTION
|
| |||||||||||||||||||||||||||||||||||||||||
December 31, 2010 | March 31, 2011 | June 30, 2011 | September 30, 2011 | December 31, 2011 | ||||||||||||||||||||||||||||||||||||||
Unaudited (In millions) | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | ||||||||||||||||||||||||||||||||
U.S. corporate securities | $ | 91,772 | 28.3% | $ | 93,549 | 28.0% | $ | 96,797 | 28.3% | $ | 106,575 | 30.1% | $ | 105,785 | 30.2% | |||||||||||||||||||||||||||
Foreign corporate securities | 67,888 | 20.9% | 68,697 | 20.6% | 70,538 | 20.6% | 63,522 | 18.0% | 64,018 | 18.3% | ||||||||||||||||||||||||||||||||
Foreign government securities | 42,002 | 12.9% | 45,189 | 13.6% | 49,246 | 14.4% | 52,959 | 15.0% | 52,536 | 15.0% | ||||||||||||||||||||||||||||||||
Residential mortgage-backed securities (1) | 45,852 | 14.1% | 46,120 | 13.8% | 44,615 | 13.1% | 42,890 | 12.1% | 42,637 | 12.2% | ||||||||||||||||||||||||||||||||
U.S. Treasury and agency securities | 33,304 | 10.2% | 35,479 | 10.6% | 35,565 | 10.4% | 41,834 | 11.8% | 40,012 | 11.4% | ||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | 20,675 | 6.4% | 19,785 | 5.9% | 19,518 | 5.7% | 19,585 | 5.5% | 19,069 | 5.4% | ||||||||||||||||||||||||||||||||
State and political subdivision securities | 10,129 | 3.1% | 10,961 | 3.3% | 11,669 | 3.4% | 13,141 | 3.7% | 13,235 | 3.8% | ||||||||||||||||||||||||||||||||
Asset-backed securities (1) | 13,168 | 4.1% | 13,877 | 4.2% | 13,792 | 4.1% | 13,421 | 3.8% | 12,979 | 3.7% | ||||||||||||||||||||||||||||||||
Other fixed maturity securities | 7 | 0.0% | 7 | 0.0% | 4 | 0.0% | - | 0.0% | - | 0.0% | ||||||||||||||||||||||||||||||||
Total fixed maturity securities available-for-sale | $ | 324,797 | 100.0% | $ | 333,664 | 100.0% | $ | 341,744 | 100.0% | $ | 353,927 | 100.0% | $ | 350,271 | 100.0% | |||||||||||||||||||||||||||
NAIC | RATING AGENCY | |||||||||||||||||||||||||||||||||||||||||
RATING | DESIGNATION | |||||||||||||||||||||||||||||||||||||||||
1 | Aaa / Aa / A | $ | 231,198 | 71.2% | $ | 236,943 | 71.0% | $ | 239,761 | 70.2% | $ | 250,596 | 70.8% | $ | 246,786 | 70.5% | ||||||||||||||||||||||||||
2 | Baa | 68,729 | 21.2% | 71,582 | 21.5% | 77,066 | 22.5% | 78,837 | 22.3% | 78,531 | 22.4% | |||||||||||||||||||||||||||||||
3 | Ba | 15,290 | 4.7% | 15,428 | 4.6% | 15,266 | 4.5% | 15,348 | 4.3% | 14,375 | 4.1% | |||||||||||||||||||||||||||||||
4 | B | 8,308 | 2.6% | 8,391 | 2.5% | 8,489 | 2.5% | 7,844 | 2.2% | 8,849 | 2.5% | |||||||||||||||||||||||||||||||
5 | Caa and lower | 1,142 | 0.3% | 1,172 | 0.4% | 1,103 | 0.3% | 1,157 | 0.3% | 1,668 | 0.5% | |||||||||||||||||||||||||||||||
6 | In or near default | 130 | 0.0% | 148 | 0.0% | 59 | 0.0% | 145 | 0.1% | 62 | 0.0% | |||||||||||||||||||||||||||||||
Total fixed maturity securities available-for-sale (2) | $ | 324,797 | 100.0% | $ | 333,664 | 100.0% | $ | 341,744 | 100.0% | $ | 353,927 | 100.0% | $ | 350,271 | 100.0% |
(1) | A reclassification from the asset-backed securities sector to the residential mortgage-backed securities sector has been made to the prior period amounts for securities backed by sub-prime mortgage loans. | |||||||||||||||||||||
(2) | Amounts presented are based on rating agency designations and equivalent ratings of the National Association of Insurance Commissioners ("NAIC"), except as described below. Amounts presented for certain structured securities (i.e., non-agency residential mortgage-backed securities, commercial mortgage-backed securities and asset-backed securities), held by MetLife, Inc.'s insurance subsidiaries that file NAIC statutory financial statements are based on ratings from revised NAIC rating methodologies. The NAIC's present methodology is to evaluate structured securities held by insurers using the revised NAIC rating methodologies on an annual basis. If such insurance subsidiaries of MetLife, Inc. acquire structured securities that have not been previously evaluated by the NAIC, but are expected to be evaluated by the NAIC in the upcoming annual review, an internally developed rating is used until a final rating becomes available. These revised NAIC ratings may not correspond to the rating agency designations. The rating agency designations are based on availability of applicable ratings from those rating agencies on the NAIC acceptable rating organizations list. |
SUMMARY OF REAL ESTATE AND REAL ESTATE JOINT VENTURES
| ||||||||||||||||||||
December 31, 2010 | March 31, 2011 | June 30, 2011 | September 30, 2011 | December 31, 2011 | ||||||||||||||||
Unaudited (In millions) | ||||||||||||||||||||
Traditional (3), (4) | $ | 5,171 | $ | 5,611 | $ | 5,709 | $ | 5,697 | $ | 5,959 | ||||||||||
Real estate joint ventures and funds | 2,707 | 2,266 | 2,356 | 2,327 | 2,340 | |||||||||||||||
Subtotal | 7,878 | 7,877 | 8,065 | 8,024 | 8,299 | |||||||||||||||
Foreclosed | 152 | 165 | 169 | 173 | 264 | |||||||||||||||
Total Real Estate and Real Estate Joint Ventures | $ | 8,030 | $ | 8,042 | $ | 8,234 | $ | 8,197 | $ | 8,563 |
(3) | Includes wholly-owned real estate and operating real estate joint ventures. | |
(4) | Includes real estate held-for-sale and held-for-investment. |
34
(1) As of December 31, 2011, Residential mortgage loans with a carrying value of $3,359 million were transferred to Mortgage loans held-for-sale in connection with the pending disposition of the depository business of MetLife Bank. | ||
(2) Excludes the effects of securitized reverse residential mortgage loans which have been sold, but do not qualify for de-recognition, of $7,652 million as of December 31, 2011. | ||
(3) Excludes the effects of consolidating under GAAP certain VIEs that are treated as CSEs. See page 31, note 3 for the amount excluded for each period presented. |
SUMMARY OF COMMERCIAL MORTGAGE LOANS | ||||||||||||||||||||||||||||||||||||||||
BY REGION AND PROPERTY TYPE (4) | ||||||||||||||||||||||||||||||||||||||||
December 31, 2010 | March 31, 2011 | June 30, 2011 | September 30, 2011 | December 31, 2011 | ||||||||||||||||||||||||||||||||||||
Unaudited (In millions) | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | ||||||||||||||||||||||||||||||
South Atlantic | $ | 7,910 | 20.9% | $ | 7,930 | 20.8% | $ | 8,323 | 21.3% | $ | 8,591 | 21.4% | $ | 9,022 | 22.3% | |||||||||||||||||||||||||
Pacific | 8,616 | 22.8% | 8,052 | 21.1% | 7,801 | 20.0% | 8,195 | 20.4% | 8,209 | 20.3% | ||||||||||||||||||||||||||||||
Middle Atlantic | 5,486 | 14.5% | 5,301 | 13.9% | 5,873 | 15.0% | 6,535 | 16.3% | 6,370 | 15.8% | ||||||||||||||||||||||||||||||
International | 4,095 | 10.8% | 4,636 | 12.2% | 4,518 | 11.6% | 4,540 | 11.3% | 4,713 | 11.7% | ||||||||||||||||||||||||||||||
West South Central | 2,922 | 7.7% | 2,921 | 7.7% | 3,019 | 7.7% | 3,145 | 7.9% | 3,220 | 8.0% | ||||||||||||||||||||||||||||||
East North Central | 2,900 | 7.7% | 2,848 | 7.5% | 3,111 | 8.0% | 3,101 | 7.7% | 2,984 | 7.3% | ||||||||||||||||||||||||||||||
New England | 1,310 | 3.5% | 1,482 | 3.9% | 1,510 | 3.9% | 1,491 | 3.7% | 1,563 | 3.9% | ||||||||||||||||||||||||||||||
Mountain | 811 | 2.2% | 842 | 2.2% | 838 | 2.1% | 823 | 2.1% | 746 | 1.8% | ||||||||||||||||||||||||||||||
East South Central | 461 | 1.2% | 460 | 1.2% | 467 | 1.2% | 454 | 1.1% | 487 | 1.2% | ||||||||||||||||||||||||||||||
West North Central | 643 | 1.7% | 631 | 1.7% | 628 | 1.6% | 511 | 1.3% | 365 | 0.9% | ||||||||||||||||||||||||||||||
Multi-Region and Other | 2,664 | 7.0% | 2,984 | 7.8% | 2,962 | 7.6% | 2,734 | 6.8% | 2,761 | 6.8% | ||||||||||||||||||||||||||||||
Total | $ | 37,818 | 100.0% | $ | 38,087 | 100.0% | $ | 39,050 | 100.0% | $ | 40,120 | 100.0% | $ | 40,440 | 100.0% | |||||||||||||||||||||||||
Office | $ | 16,857 | 44.6% | $ | 16,728 | 43.9% | $ | 17,951 | 46.0% | $ | 19,290 | 48.1% | $ | 18,582 | 45.9% | |||||||||||||||||||||||||
Retail | 9,215 | 24.3% | 9,217 | 24.2% | 8,901 | 22.8% | 8,564 | 21.3% | 9,524 | 23.6% | ||||||||||||||||||||||||||||||
Apartments | 3,630 | 9.6% | 3,536 | 9.3% | 3,755 | 9.6% | 4,166 | 10.4% | 4,011 | 9.9% | ||||||||||||||||||||||||||||||
Hotel | 3,089 | 8.2% | 3,223 | 8.5% | 3,135 | 8.0% | 2,982 | 7.4% | 3,114 | 7.7% | ||||||||||||||||||||||||||||||
Industrial | 2,910 | 7.7% | 3,138 | 8.2% | 3,046 | 7.8% | 3,138 | 7.8% | 3,102 | 7.7% | ||||||||||||||||||||||||||||||
Other | 2,117 | 5.6% | 2,245 | 5.9% | 2,262 | 5.8% | 1,980 | 5.0% | 2,107 | 5.2% | ||||||||||||||||||||||||||||||
Total | $ | 37,818 | 100.0% | $ | 38,087 | 100.0% | $ | 39,050 | 100.0% | $ | 40,120 | 100.0% | $ | 40,440 | 100.0% |
(4) Reclassifications have been made to the prior period amounts from various regions to the Multi-Region and Other region to conform to the current period presentation. |
35
METLIFE, INC. RECONCILIATION DETAIL (1) | ||||||||||||||||||||||||||||||
For the Three Months Ended | For the Year Ended | |||||||||||||||||||||||||||||
Unaudited (In millions) | December 31, 2010 | March 31, 2011 | June 30, 2011 | September 30, 2011 | December 31, 2011 | December 31, 2010 | December 31, 2011 | |||||||||||||||||||||||
Reconciliation to Net Income and Financial Statement Line Item Adjustments from GAAP | ||||||||||||||||||||||||||||||
Operating earnings | $ | 1,225 | $ | 1,471 | $ | 1,384 | $ | 1,196 | $ | 1,429 | $ | 3,955 | $ | 5,480 | ||||||||||||||||
Adjustments from operating earnings to income (loss) from continuing operations: | ||||||||||||||||||||||||||||||
Net investment gains (losses) | (84 | ) | (99 | ) | (155 | ) | (55 | ) | (558 | ) | (408 | ) | (867 | ) | ||||||||||||||||
Net derivative gains (losses) | (1,543 | ) | (315 | ) | 352 | 4,196 | 591 | (265 | ) | 4,824 | ||||||||||||||||||||
Premiums - Divested businesses | - | 22 | 24 | 23 | 23 | - | 92 | |||||||||||||||||||||||
Universal life and investment-type product policy fees | ||||||||||||||||||||||||||||||
Unearned revenue adjustments | (5 | ) | (3 | ) | 1 | 16 | - | 1 | 14 | |||||||||||||||||||||
GMIB fees | 56 | 58 | 58 | 74 | 66 | 210 | 256 | |||||||||||||||||||||||
Divested businesses | - | 2 | 2 | 2 | 2 | - | 8 | |||||||||||||||||||||||
Net investment income | ||||||||||||||||||||||||||||||
Investment hedge adjustments | (36 | ) | (39 | ) | (55 | ) | (70 | ) | (85 | ) | (208 | ) | (249 | ) | ||||||||||||||||
Income from discontinued real estate operations | (4 | ) | (2 | ) | (2 | ) | - | - | (2 | ) | (4 | ) | ||||||||||||||||||
Joint venture adjustments | (28 | ) | (23 | ) | - | - | - | (130 | ) | (23 | ) | |||||||||||||||||||
Unit-linked contract income | 211 | 419 | (32 | ) | (824 | ) | (16 | ) | 211 | (453 | ) | |||||||||||||||||||
Securitization entities income | 99 | 92 | 92 | 97 | 43 | 411 | 324 | |||||||||||||||||||||||
Divested businesses | 87 | 84 | 80 | 82 | 89 | 349 | 335 | |||||||||||||||||||||||
Other revenues | ||||||||||||||||||||||||||||||
Settlement of foreign currency earnings hedges | — | (1 | ) | 4 | 5 | 4 | - | 12 | ||||||||||||||||||||||
Divested businesses | 175 | 99 | 130 | 198 | 182 | 653 | 609 | |||||||||||||||||||||||
Policyholder benefits and claims and policyholder dividends | ||||||||||||||||||||||||||||||
PDO adjustments | - | - | - | - | - | - | - | |||||||||||||||||||||||
Inflation adjustments and pass through adjustments | 42 | (10 | ) | (197 | ) | (189 | ) | (24 | ) | (306 | ) | (420 | ) | |||||||||||||||||
GMIB costs | (230 | ) | (145 | ) | (10 | ) | 411 | (448 | ) | (392 | ) | (192 | ) | |||||||||||||||||
Market value adjustments | - | (2 | ) | (1 | ) | (4 | ) | - | - | (7 | ) | |||||||||||||||||||
Divested businesses | - | (13 | ) | (15 | ) | (16 | ) | (13 | ) | - | (57 | ) | ||||||||||||||||||
Interest credited to policyholder account balances | ||||||||||||||||||||||||||||||
PAB hedge adjustments | (8 | ) | (8 | ) | (8 | ) | (2 | ) | (1 | ) | (11 | ) | (19 | ) | ||||||||||||||||
Unit-linked contract costs | (211 | ) | (435 | ) | 77 | 801 | 40 | (211 | ) | 483 | ||||||||||||||||||||
Divested businesses | - | (2 | ) | (3 | ) | (3 | ) | (2 | ) | - | (10 | ) | ||||||||||||||||||
Capitalization of DAC -Divested businesses | - | 2 | 2 | 3 | 2 | - | 9 | |||||||||||||||||||||||
Amortization of DAC and VOBA | ||||||||||||||||||||||||||||||
Related to NIGL and NDGL | 138 | 30 | (124 | ) | (471 | ) | (7 | ) | (125 | ) | (572 | ) | ||||||||||||||||||
Related to GMIB fees and GMIB costs | 93 | 37 | (4 | ) | (150 | ) | 101 | 84 | (16 | ) | ||||||||||||||||||||
Related to market value adjustments | - | - | - | - | - | - | - | |||||||||||||||||||||||
Divested businesses | - | (1 | ) | (1 | ) | (1 | ) | (1 | ) | - | (4 | ) | ||||||||||||||||||
Amortization of negative VOBA | ||||||||||||||||||||||||||||||
Related to market value adjustments | 7 | 19 | 19 | 19 | 17 | 7 | 74 | |||||||||||||||||||||||
Divested businesses | - | 1 | 1 | 1 | 1 | - | 4 | |||||||||||||||||||||||
Interest expense on debt -Securitization entities debt expense | (99 | ) | (92 | ) | (92 | ) | (97 | ) | (43 | ) | (411 | ) | (324 | ) | ||||||||||||||||
Other expenses | ||||||||||||||||||||||||||||||
Noncontrolling interest | 2 | 7 | (9 | ) | (8 | ) | 1 | (7 | ) | (9 | ) | |||||||||||||||||||
Regulatory implementation costs | - | (1 | ) | (10 | ) | (3 | ) | (9 | ) | - | (23 | ) | ||||||||||||||||||
Business combinations | (101 | ) | (68 | ) | (126 | ) | (85 | ) | (133 | ) | (212 | ) | (412 | ) | ||||||||||||||||
Divested businesses | (246 | ) | (231 | ) | (258 | ) | (268 | ) | (310 | ) | (825 | ) | (1,067 | ) | ||||||||||||||||
Provision for income tax (expense) benefit | 526 | 201 | 75 | (1,307 | ) | 186 | 379 | (845 | ) | |||||||||||||||||||||
Income (loss) from continuing operations, net of income tax | 66 | 1,054 | 1,199 | 3,571 | 1,127 | 2,747 | 6,951 | |||||||||||||||||||||||
Income (loss) from discontinued operations, net of income tax | 19 | (41 | ) | 31 | 5 | 25 | 39 | 20 | ||||||||||||||||||||||
Net income (loss) | 85 | 1,013 | 1,230 | 3,576 | 1,152 | 2,786 | 6.971 | |||||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interest | 3 | 7 | (7 | ) | (6 | ) | (4 | ) | (4 | ) | (10 | ) | ||||||||||||||||||
Net income (loss) attributable to MetLife, Inc. | 82 | 1,006 | 1,237 | 3,582 | 1,156 | 2,790 | 6,981 | |||||||||||||||||||||||
Less: Preferred stock dividends | 31 | 30 | 31 | 30 | 31 | 122 | 122 | |||||||||||||||||||||||
Less: Preferred stock redemption premium | - | 146 | - | - | - | - | 146 | |||||||||||||||||||||||
Net income (loss) available to MetLife, Inc.'s common shareholders | $ | 51 | $ | 830 | $ | 1,206 | $ | 3,552 | $ | 1,125 | $ | 2,668 | $ | 6,713 | ||||||||||||||||
(1) Certain amounts in the prior periods have been reclassified to conform with the current period segment presentation. During the fourth quarter of 2011, MetLife, Inc. began reporting certain operations of MetLife Bank and the Caribbean Business as Divested businesses. |
|
36