EXHIBIT 12.1
MetLife, Inc.
Ratio of Earnings to Fixed Charges
Years Ended December 31, | ||||||||||||||||||||
2011 | 2010 | 2009 | 2008 | 2007 | ||||||||||||||||
(In millions, except ratios) | ||||||||||||||||||||
Income (loss) from continuing operations before provision for income tax | $ | 9,185 | $ | 3,730 | $ | (4,615 | ) | $ | 4,937 | $ | 5,479 | |||||||||
Undistributed income and losses from investees | (180 | ) | (424 | ) | 1,473 | 784 | (596 | ) | ||||||||||||
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Adjusted earnings before fixed charges (1) | $ | 9,005 | $ | 3,306 | $ | (3,142 | ) | $ | 5,721 | $ | 4,883 | |||||||||
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Add: fixed charges | ||||||||||||||||||||
Interest and debt issue costs (2) | 1,666 | 1,565 | 1,083 | 1,157 | 1,117 | |||||||||||||||
Estimated interest component of rent expense | 34 | 50 | 74 | 46 | 71 | |||||||||||||||
Interest credited to bank deposits | 95 | 137 | 163 | 166 | 199 | |||||||||||||||
Interest credited to policyholder account balances | 5,603 | 4,919 | 4,845 | 4,787 | 5,458 | |||||||||||||||
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Total fixed charges | $ | 7,398 | $ | 6,671 | $ | 6,165 | $ | 6,156 | $ | 6,845 | ||||||||||
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Preferred stock dividends (3) | 385 | 173 | 225 | 181 | 193 | |||||||||||||||
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Total fixed charges plus preferred stock dividends | $ | 7,783 | $ | 6,844 | $ | 6,390 | $ | 6,337 | $ | 7,038 | ||||||||||
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Total earnings and fixed charges | $ | 16,403 | $ | 9,977 | $ | 3,023 | $ | 11,877 | $ | 11,728 | ||||||||||
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Ratio of earnings to fixed charges (1) | 2.22 | 1.50 | — | 1.93 | 1.71 | |||||||||||||||
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Total earnings including fixed charges and preferred stock dividends | $ | 16,788 | $ | 10,150 | $ | 3,248 | $ | 12,058 | $ | 11,921 | ||||||||||
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Ratio of earnings to fixed charges and preferred stock dividends (1) | 2.16 | 1.48 | — | 1.90 | 1.69 | |||||||||||||||
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(1) | Earnings were insufficient to cover fixed charges at a 1:1 ratio by $3,142 million for the year ended December 31, 2009, primarily due to increased derivatives losses on freestanding derivatives, partially offset by gains on embedded derivatives. |
(2) | Interest costs include $324 million and $411 million related to variable interest entities for the years ended December 31, 2011 and 2010, respectively. Excluding these costs would result in a ratio of earnings to fixed charges and ratio of earnings to fixed charges including preferred stock dividends of 2.27 and 2.21 and 1.53 and 1.51, respectively. |
(3) | For the year ended December 31, 2011, preferred stock dividends includes the redemption premium of $211 million associated with the convertible preferred stock repurchased and canceled in March 2011. |