Table of Contents
Second Quarter
Financial Supplement
June 30, 2012
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NOTE TO FINANCIALS
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) acquisition and integration costs. | |||||||
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 38, and in MetLife’s earnings press release dated August 1, 2012, for the three months ended June 30, 2012, which is available at www.metlife.com. |
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METLIFE, INC. | ||||||||||||||||||||||||
CONSOLIDATING STATEMENT OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
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| For the Three Months Ended June 30, 2011 | |||||||||||||||||||||||
Unaudited (In millions) | Consolidated | The Americas | Asia | EMEA | Corporate & Other | |||||||||||||||||||
OPERATING REVENUES | ||||||||||||||||||||||||
Premiums | $ | 9,270 | $ | 6,684 | $ | 1,884 | $ | 689 | $ | 13 | ||||||||||||||
Universal life and investment-type product policy fees | 1,908 | 1,439 | 296 | 135 | 38 | |||||||||||||||||||
Net investment income | 5,011 | 4,012 | 596 | 178 | 225 | |||||||||||||||||||
Other revenues | 458 | 349 | 8 | 29 | 72 | |||||||||||||||||||
Total operating revenues | 16,647 | 12,484 | 2,784 | 1,031 | 348 | |||||||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||
Policyholder benefits and claims and policyholder dividends | 9,272 | 7,581 | 1,272 | 395 | 24 | |||||||||||||||||||
Interest credited to policyholder account balances | 1,508 | 1,065 | 398 | 45 | - | |||||||||||||||||||
Capitalization of DAC | (1,365 | ) | (705 | ) | (467 | ) | (193 | ) | - | |||||||||||||||
Amortization of DAC and VOBA | 1,136 | 554 | 401 | 181 | - | |||||||||||||||||||
Amortization of negative VOBA | (163 | ) | (2 | ) | (141 | ) | (20 | ) | - | |||||||||||||||
Interest expense on debt | 328 | 4 | (1 | ) | - | 325 | ||||||||||||||||||
Other expenses | 4,172 | 2,477 | 1,063 | 514 | 118 | |||||||||||||||||||
Total operating expenses | 14,888 | 10,974 | 2,525 | 922 | 467 | |||||||||||||||||||
Operating earnings before provision for income tax | 1,759 | 1,510 | 259 | 109 | (119 | ) | ||||||||||||||||||
Provision for income tax expense (benefit) | 521 | 495 | 88 | 45 | (107 | ) | ||||||||||||||||||
Operating earnings | 1,238 | 1,015 | 171 | 64 | (12 | ) | ||||||||||||||||||
Preferred stock dividends | 31 | - | - | - | 31 | |||||||||||||||||||
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS | $ | 1,207 | $ | 1,015 | $ | 171 | $ | 64 | $ | (43 | ) | |||||||||||||
Reconciliation to Net Income (Loss) and Financial Statement Line | ||||||||||||||||||||||||
Operating earnings | $ | 1,238 | $ | 1,015 | $ | 171 | $ | 64 | $ | (12 | ) | |||||||||||||
Adjustments from operating earnings to income (loss) from continuing operations: | ||||||||||||||||||||||||
Net investment gains (losses) | (155 | ) | 16 | (32 | ) | (34 | ) | (105 | ) | |||||||||||||||
Net derivative gains (losses) | 352 | 484 | 5 | (12 | ) | (125 | ) | |||||||||||||||||
Premiums | 24 | 24 | - | - | - | |||||||||||||||||||
Universal life and investment-type product policy fees | 61 | 61 | - | - | - | |||||||||||||||||||
Net investment income | 83 | (33 | ) | (175 | ) | 121 | 170 | |||||||||||||||||
Other revenues | 134 | 2 | 2 | - | 130 | |||||||||||||||||||
Policyholder benefits and claims and policyholder dividends | (223 | ) | (213 | ) | (10 | ) | - | - | ||||||||||||||||
Interest credited to policyholder account balances | 66 | (30 | ) | 204 | (108 | ) | - | |||||||||||||||||
Capitalization of DAC | 2 | 2 | - | - | - | |||||||||||||||||||
Amortization of DAC and VOBA | (118 | ) | (118 | ) | - | - | - | |||||||||||||||||
Amortization of negative VOBA | 20 | 1 | 19 | - | - | |||||||||||||||||||
Interest expense on debt | (92 | ) | - | - | - | (92 | ) | |||||||||||||||||
Other expenses | (403 | ) | (14 | ) | 3 | (47 | ) | (345 | ) | |||||||||||||||
Provision for income tax (expense) benefit | 73 | (72 | ) | 10 | 6 | 129 | ||||||||||||||||||
Income (loss) from continuing operations, net of income tax | 1,062 | 1,125 | 197 | (10 | ) | (250 | ) | |||||||||||||||||
Income (loss) from discontinued operations, net of income tax | 31 | 29 | 1 | - | 1 | |||||||||||||||||||
Net income (loss) | 1,093 | 1,154 | 198 | (10 | ) | (249 | ) | |||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interest | (7 | ) | - | 1 | (3 | ) | (5 | ) | ||||||||||||||||
Net income (loss) attributable to MetLife, Inc. | 1,100 | 1,154 | 197 | (7 | ) | (244 | ) | |||||||||||||||||
Less: Preferred stock dividends | 31 | - | - | - | 31 | |||||||||||||||||||
Less: Preferred stock redemption premium | - | - | - | - | - | |||||||||||||||||||
Net income (loss) available to MetLife, Inc.’s common shareholders | $ | 1,069 | $ | 1,154 | $ | 197 | $ | (7 | ) | $ | (275 | ) | ||||||||||||
Total Operating Premiums, Fees and Other Revenues | $ | 11,636 | $ | 8,472 | $ | 2,188 | $ | 853 | $ | 123 |
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METLIFE, INC. CONSOLIDATING STATEMENT OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
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For the Year-to-Date Period Ended June 30, 2012 | ||||||||||||||||||||||||
Unaudited (In millions) | Consolidated | The Americas | Asia | EMEA | Corporate & Other | |||||||||||||||||||
OPERATING REVENUES | ||||||||||||||||||||||||
Premiums | $ | 18,246 | $ | 12,836 | $ | 3,958 | $ | 1,424 | $ | 28 | ||||||||||||||
Universal life and investment-type product policy fees | 4,008 | 3,064 | 638 | 227 | 79 | |||||||||||||||||||
Net investment income | 10,272 | 8,094 | 1,383 | 342 | 453 | |||||||||||||||||||
Other revenues | 953 | 783 | 13 | 63 | 94 | |||||||||||||||||||
Total operating revenues | 33,479 | 24,777 | 5,992 | 2,056 | 654 | |||||||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||
Policyholder benefits and claims and policyholder dividends | 18,071 | 14,527 | 2,643 | 838 | 63 | |||||||||||||||||||
Interest credited to policyholder account balances | 3,064 | 2,138 | 853 | 61 | 12 | |||||||||||||||||||
Capitalization of DAC | (2,675 | ) | (1,156 | ) | (1,099 | ) | (420 | ) | - | |||||||||||||||
Amortization of DAC and VOBA | 2,180 | 1,062 | 759 | 359 | - | |||||||||||||||||||
Amortization of negative VOBA | (301 | ) | (3 | ) | (257 | ) | (41 | ) | - | |||||||||||||||
Interest expense on debt | 612 | 5 | 5 | 1 | 601 | |||||||||||||||||||
Other expenses | 8,404 | 4,794 | 2,219 | 1,018 | 373 | |||||||||||||||||||
Total operating expenses | 29,355 | 21,367 | 5,123 | 1,816 | 1,049 | |||||||||||||||||||
Operating earnings before provision for income tax | 4,124 | 3,410 | 869 | 240 | (395 | ) | ||||||||||||||||||
Provision for income tax expense (benefit) | 1,174 | 1,124 | 297 | 82 | (329 | ) | ||||||||||||||||||
Operating earnings | 2,950 | 2,286 | 572 | 158 | (66 | ) | ||||||||||||||||||
Preferred stock dividends | 61 | - | - | - | 61 | |||||||||||||||||||
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS | $ | 2,889 | $ | 2,286 | $ | 572 | $ | 158 | $ | (127 | ) | |||||||||||||
Reconciliation to Net Income (Loss) and Financial Statement Line Item Adjustments from GAAP | ||||||||||||||||||||||||
Operating earnings | $ | 2,950 | $ | 2,286 | $ | 572 | $ | 158 | $ | (66 | ) | |||||||||||||
Adjustments from operating earnings to income (loss) from continuing operations: | ||||||||||||||||||||||||
Net investment gains (losses) | (174 | ) | 167 | (139 | ) | (18 | ) | (184 | ) | |||||||||||||||
Net derivative gains (losses) | 114 | 694 | 20 | 43 | (643 | ) | ||||||||||||||||||
Premiums | 44 | 44 | - | - | - | |||||||||||||||||||
Universal life and investment-type product policy fees | 167 | 156 | (2 | ) | 13 | - | ||||||||||||||||||
Net investment income | 647 | (136 | ) | 149 | 282 | 352 | ||||||||||||||||||
Other revenues | 37 | 1 | 11 | - | 25 | |||||||||||||||||||
Policyholder benefits and claims and policyholder dividends | (639 | ) | (595 | ) | (44 | ) | - | - | ||||||||||||||||
Interest credited to policyholder account balances | (515 | ) | (79 | ) | (161 | ) | (275 | ) | - | |||||||||||||||
Capitalization of DAC | 4 | 4 | - | - | - | |||||||||||||||||||
Amortization of DAC and VOBA | (13 | ) | 1 | 2 | (16 | ) | - | |||||||||||||||||
Amortization of negative VOBA | 35 | 2 | 33 | - | - | |||||||||||||||||||
Interest expense on debt | (88 | ) | - | - | - | (88 | ) | |||||||||||||||||
Other expenses | (814 | ) | (23 | ) | 11 | (9 | ) | (793 | ) | |||||||||||||||
Provision for income tax (expense) benefit | 411 | (99 | ) | 33 | 13 | 464 | ||||||||||||||||||
Income (loss) from continuing operations, net of income tax | 2,166 | 2,423 | 485 | 191 | (933 | ) | ||||||||||||||||||
Income (loss) from discontinued operations, net of income tax | 17 | 17 | - | - | - | |||||||||||||||||||
Net income (loss) | 2,183 | 2,440 | 485 | 191 | (933 | ) | ||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interest | 32 | 1 | 11 | 17 | 3 | |||||||||||||||||||
Net income (loss) attributable to MetLife, Inc. | 2,151 | 2,439 | 474 | 174 | (936 | ) | ||||||||||||||||||
Less: Preferred stock dividends | 61 | - | - | - | 61 | |||||||||||||||||||
Less: Preferred stock redemption premium | - | - | - | - | - | |||||||||||||||||||
Net income (loss) available to MetLife, Inc.’s common shareholders | $ | 2,090 | $ | 2,439 | $ | 474 | $ | 174 | $ | (997 | ) | |||||||||||||
Total Operating Premiums, Fees and Other Revenues | $ | 23,207 | $ | 16,683 | $ | 4,609 | $ | 1,714 | $ | 201 |
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METLIFE, INC. CONSOLIDATING STATEMENT OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
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For the Year-to-Date Period Ended June 30, 2011 | ||||||||||||||||||||||||
Unaudited (In millions) | Consolidated | The Americas | Asia | EMEA | Corporate & Other | |||||||||||||||||||
OPERATING REVENUES | ||||||||||||||||||||||||
Premiums | $ | 17,802 | $ | 12,702 | $ | 3,687 | $ | 1,386 | $ | 27 | ||||||||||||||
Universal life and investment-type product policy fees | 3,740 | 2,832 | 593 | 239 | 76 | |||||||||||||||||||
Net investment income | 9,794 | 7,857 | 1,109 | 351 | 477 | |||||||||||||||||||
Other revenues | 926 | 696 | 20 | 55 | 155 | |||||||||||||||||||
Total operating revenues | 32,262 | 24,087 | 5,409 | 2,031 | 735 | |||||||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||
Policyholder benefits and claims and policyholder dividends | 17,711 | 14,398 | 2,470 | 803 | 40 | |||||||||||||||||||
Interest credited to policyholder account balances | 2,987 | 2,125 | 778 | 84 | - | |||||||||||||||||||
Capitalization of DAC | (2,627 | ) | (1,335 | ) | (918 | ) | (374 | ) | - | |||||||||||||||
Amortization of DAC and VOBA | 2,133 | 1,058 | 730 | 345 | - | |||||||||||||||||||
Amortization of negative VOBA | (326 | ) | (4 | ) | (287 | ) | (35 | ) | - | |||||||||||||||
Interest expense on debt | 651 | 6 | - | 1 | 644 | |||||||||||||||||||
Other expenses | 8,062 | 4,801 | 2,053 | 972 | 236 | |||||||||||||||||||
Total operating expenses | 28,591 | 21,049 | 4,826 | 1,796 | 920 | |||||||||||||||||||
Operating earnings before provision for income tax | 3,671 | 3,038 | 583 | 235 | (185 | ) | ||||||||||||||||||
Provision for income tax expense (benefit) | 1,085 | 999 | 188 | 92 | (194 | ) | ||||||||||||||||||
Operating earnings | 2,586 | 2,039 | 395 | 143 | 9 | |||||||||||||||||||
Preferred stock dividends | 61 | - | - | - | 61 | |||||||||||||||||||
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS | $ | 2,525 | $ | 2,039 | $ | 395 | $ | 143 | $ | (52 | ) | |||||||||||||
Reconciliation to Net Income (Loss) and Financial Statement Line Item Adjustments from GAAP | ||||||||||||||||||||||||
Operating earnings | $ | 2,586 | $ | 2,039 | $ | 395 | $ | 143 | $ | 9 | ||||||||||||||
Adjustments from operating earnings to income (loss) from continuing operations: | ||||||||||||||||||||||||
Net investment gains (losses) | (254 | ) | 94 | (158 | ) | (88 | ) | (102 | ) | |||||||||||||||
Net derivative gains (losses) | 37 | 176 | 61 | 7 | (207 | ) | ||||||||||||||||||
Premiums | 46 | 46 | - | - | - | |||||||||||||||||||
Universal life and investment-type product policy fees | 118 | 118 | - | - | - | |||||||||||||||||||
Net investment income | 612 | (62 | ) | 68 | 261 | 345 | ||||||||||||||||||
Other revenues | 232 | - | 3 | - | 229 | |||||||||||||||||||
Policyholder benefits and claims and policyholder dividends | (393 | ) | (375 | ) | (18 | ) | - | - | ||||||||||||||||
Interest credited to policyholder account balances | (379 | ) | (51 | ) | (63 | ) | (265 | ) | - | |||||||||||||||
Capitalization of DAC | 4 | 4 | - | - | - | |||||||||||||||||||
Amortization of DAC and VOBA | (60 | ) | (60 | ) | - | - | - | |||||||||||||||||
Amortization of negative VOBA | 40 | 2 | 38 | - | - | |||||||||||||||||||
Interest expense on debt | (184 | ) | - | - | - | (184 | ) | |||||||||||||||||
Other expenses | (696 | ) | (27 | ) | 1 | (43 | ) | (627 | ) | |||||||||||||||
Provision for income tax (expense) benefit | 277 | 24 | 38 | 26 | 189 | |||||||||||||||||||
Income (loss) from continuing operations, net of income tax | 1,986 | 1,928 | 365 | 41 | (348 | ) | ||||||||||||||||||
Income (loss) from discontinued operations, net of income tax | (9 | ) | 50 | (60 | ) | - | 1 | |||||||||||||||||
Net income (loss) | 1,977 | 1,978 | 305 | 41 | (347 | ) | ||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interest | - | - | 1 | 4 | (5 | ) | ||||||||||||||||||
Net income (loss) attributable to MetLife, Inc. | 1,977 | 1,978 | 304 | 37 | (342 | ) | ||||||||||||||||||
Less: Preferred stock dividends | 61 | - | - | - | 61 | |||||||||||||||||||
Less: Preferred stock redemption premium | 146 | - | - | - | 146 | |||||||||||||||||||
Net income (loss) available to MetLife, Inc.’s common shareholders | $ | 1,770 | $ | 1,978 | $ | 304 | $ | 37 | $ | (549 | ) | |||||||||||||
Total Operating Premiums, Fees and Other Revenues | $ | 22,468 | $ | 16,230 | $ | 4,300 | $ | 1,680 | $ | 258 |
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SUMMARY OF SEGMENT OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS (1) | ||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||
Unaudited (In millions) | June 30, 2011 | September 30, 2011 | December 31, 2011 | March 31, 2012 | June 30, 2012 | |||||||||||||||
THE AMERICAS | ||||||||||||||||||||
RETAIL | $ | 333 | $ | 200 | $ | 386 | $ | 408 | $ 380 | |||||||||||
GROUP, VOLUNTARY & WORKSITE BENEFITS | 228 | 167 | 298 | 304 | 295 | |||||||||||||||
CORPORATE BENEFIT FUNDING | 325 | 272 | 226 | 298 | 318 | |||||||||||||||
LATIN AMERICA | 129 | 141 | 123 | 148 | 135 | |||||||||||||||
THE AMERICAS TOTAL | $ | 1,015 | $ | 780 | $ | 1,033 | $ | 1,158 | $ 1,128 | |||||||||||
ASIA | 171 | 222 | 250 | 297 | 275 | |||||||||||||||
EMEA | 64 | 65 | 56 | 76 | 82 | |||||||||||||||
CORPORATE & OTHER | (43 | ) | (71 | ) | (92 | ) | (68 | ) | (59) | |||||||||||
METLIFE, INC. CONSOLIDATED | $ | 1,207 | $ | 996 | $ | 1,247 | $ | 1,463 | $ 1,426 | |||||||||||
(1) A reconciliation of operating earnings available to common shareholders to net income (loss) available to MetLife, Inc.’s common shareholders for each segment appears in the QFS as follows: (i) Retail, Page 11, (ii) Group, Voluntary & Worksite Benefits, Page 17, (iii) Corporate Benefit Funding, Page 25, (iv) Latin America, Page 29, (v) Asia, Page 30, (vi) EMEA, Page 31, and (vii) Corporate & Other, Page 32. A consolidated reconciliation of operating earnings available to common shareholders to net income (loss) available to MetLife, Inc.’s common shareholders appears on Page 5. |
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THE AMERICAS RETAIL - LIFE STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS -PRODUCT LEVEL
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For the Three Months Ended | For the Year-to-Date Period Ended | |||||||||||||||||||||||||||||||
Unaudited (In millions, except ratios) | June 30, 2011 | September 30, 2011 | December 31, 201 | March 31, 2012 | June 30, 2012 | June 30, 2011 | June 30, 2012 | |||||||||||||||||||||||||
OPERATING REVENUES | ||||||||||||||||||||||||||||||||
Premiums | $ | 988 | $ | 993 | $ | 1,098 | $ | 959 | $ | 981 | $ | 1,939 | $ | 1,940 | ||||||||||||||||||
Universal life and investment-type product policy fees | 410 | 407 | 412 | 413 | 410 | 815 | 823 | |||||||||||||||||||||||||
Net investment income | 1,118 | 1,074 | 1,040 | 1,096 | 1,089 | 2,215 | 2,185 | |||||||||||||||||||||||||
Other revenues | 112 | 123 | 111 | 120 | 125 | 219 | 245 | |||||||||||||||||||||||||
Total operating revenues | 2,628 | 2,597 | 2,661 | 2,588 | 2,605 | 5,188 | 5,193 | |||||||||||||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||||||||||
Policyholder benefits and claims and policyholder dividends | 1,628 | 1,709 | 1,562 | 1,614 | 1,605 | 3,231 | 3,219 | |||||||||||||||||||||||||
Interest credited to policyholder account balances | 201 | 209 | 211 | 216 | 213 | 399 | 429 | |||||||||||||||||||||||||
Capitalization of DAC | (136 | ) | (132 | ) | (146 | ) | (123 | ) | (119 | ) | (269 | ) | (242 | ) | ||||||||||||||||||
Amortization of DAC and VOBA | 153 | 130 | 205 | 148 | 149 | 314 | 297 | |||||||||||||||||||||||||
Amortization of negative VOBA | - | - | - | - | - | - | - | |||||||||||||||||||||||||
Interest expense on debt | - | - | - | - | (1 | ) | - | (1 | ) | |||||||||||||||||||||||
Other expenses | 545 | 519 | 556 | 538 | 521 | 1,070 | 1,059 | |||||||||||||||||||||||||
Total operating expenses | 2,391 | 2,435 | 2,388 | 2,393 | 2,368 | 4,745 | 4,761 | |||||||||||||||||||||||||
Operating earnings before provision for income tax | 237 | 162 | 273 | 195 | 237 | 443 | 432 | |||||||||||||||||||||||||
Provision for income tax expense (benefit) | 85 | 55 | 96 | 69 | 83 | 156 | 152 | |||||||||||||||||||||||||
Operating earnings | 152 | 107 | 177 | 126 | 154 | 287 | 280 | |||||||||||||||||||||||||
Preferred stock dividends | - | - | - | - | - | - | - | |||||||||||||||||||||||||
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS | $ | 152 | $ | 107 | $ | 177 | $ | 126 | $ | 154 | $ | 287 | $ | 280 | ||||||||||||||||||
Reconciliation to Net Income (Loss) and Financial Statement Line Item Adjustments from GAAP | ||||||||||||||||||||||||||||||||
Operating earnings | $ | 152 | $ | 107 | $ | 177 | $ | 126 | $ | 154 | $ | 287 | $ | 280 | ||||||||||||||||||
Adjustments from operating earnings to income (loss) from continuing operations: | ||||||||||||||||||||||||||||||||
Net investment gains (losses) | 6 | 21 | 7 | 36 | 17 | 32 | 53 | |||||||||||||||||||||||||
Net derivative gains (losses) | 81 | 525 | 42 | (165 | ) | 310 | 11 | 145 | ||||||||||||||||||||||||
Premiums | - | - | - | - | - | - | - | |||||||||||||||||||||||||
Universal life and investment-type product policy fees | 1 | 16 | - | (5 | ) | 8 | (2 | ) | 3 | |||||||||||||||||||||||
Net investment income | (20 | ) | (23 | ) | (23 | ) | (22 | ) | (30 | ) | (37 | ) | (52 | ) | ||||||||||||||||||
Other revenues | - | - | - | - | - | - | - | |||||||||||||||||||||||||
Policyholder benefits and claims and policyholder dividends | - | - | - | - | - | - | - | |||||||||||||||||||||||||
Interest credited to policyholder account balances | - | - | - | - | - | - | - | |||||||||||||||||||||||||
Capitalization of DAC | - | - | - | - | - | - | - | |||||||||||||||||||||||||
Amortization of DAC and VOBA | (3 | ) | (51 | ) | 117 | 11 | (25 | ) | (3 | ) | (14 | ) | ||||||||||||||||||||
Amortization of negative VOBA | - | - | - | - | - | - | - | |||||||||||||||||||||||||
Interest expense on debt | - | - | - | - | - | - | - | |||||||||||||||||||||||||
Other expenses | - | - | - | - | - | - | - | |||||||||||||||||||||||||
Provision for income tax (expense) benefit | (23 | ) | (172 | ) | (50 | ) | 51 | (98 | ) | (1 | ) | (47 | ) | |||||||||||||||||||
Income (loss) from continuing operations, net of income tax | 194 | 423 | 270 | 32 | 336 | 287 | 368 | |||||||||||||||||||||||||
Income (loss) from discontinued operations, net of income tax | 9 | 8 | (2 | ) | 9 | - | 29 | 9 | ||||||||||||||||||||||||
Net income (loss) | 203 | 431 | 268 | 41 | 336 | 316 | 377 | |||||||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interest | - | - | 2 | - | - | - | - | |||||||||||||||||||||||||
Net income (loss) attributable to MetLife, Inc. | 203 | 431 | 266 | 41 | 336 | 316 | 377 | |||||||||||||||||||||||||
Less: Preferred stock dividends | - | - | - | - | - | - | - | |||||||||||||||||||||||||
Less: Preferred stock redemption premium | - | - | - | - | - | - | - | |||||||||||||||||||||||||
Net income (loss) available to MetLife, Inc.’s common shareholders | $ | 203 | $ | 431 | $ | 266 | $ | 41 | $ | 336 | $ | 316 | $ | 377 | ||||||||||||||||||
Total Operating Premiums, Fees and Other Revenues | $ | 1,510 | $ | 1,523 | $ | 1,621 | $ | 1,492 | $ | 1,516 | $ | 2,973 | $ | 3,008 | ||||||||||||||||||
Mortality as a Percentage of Expected | 84.4 | % | 98.5 | % | 81.1 | % | 91.6 | % | 85.6 | % | ||||||||||||||||||||||
Lapse Ratio | ||||||||||||||||||||||||||||||||
Traditional Life | 6.6 | % | 6.8 | % | 6.1 | % | 5.9 | % | 6.0 | % | ||||||||||||||||||||||
Variable & Universal Life | 5.8 | % | 5.8 | % | 5.4 | % | 5.3 | % | 5.3 | % |
12
Table of Contents
THE AMERICAS | ||||||||||||||||||||||||||||||||
RETAIL - ANNUITIES | ||||||||||||||||||||||||||||||||
STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS - PRODUCT LEVEL
|
| |||||||||||||||||||||||||||||||
For the Three Months Ended | For the Year-to-Date Period Ended | |||||||||||||||||||||||||||||||
Unaudited (In millions, except ratios) | June 30, 2011 | September 30, 2011 | December 31, 2011 | March 31, 2012 | June 30, 2012 | June 30, 2011 | June 30, 2012 | |||||||||||||||||||||||||
OPERATING REVENUES | ||||||||||||||||||||||||||||||||
Premiums | $ | 147 | $ | 282 | $ | 208 | $ | 177 | $ | 100 | $ | 221 | $ | 277 | ||||||||||||||||||
Universal life and investment-type product policy fees | 622 | 620 | 634 | 701 | 709 | 1,208 | 1,410 | |||||||||||||||||||||||||
Net investment income | 709 | 714 | 736 | 760 | 750 | 1,420 | 1,510 | |||||||||||||||||||||||||
Other revenues | 75 | 77 | 80 | 85 | 88 | 150 | 173 | |||||||||||||||||||||||||
Total operating revenues | 1,553 | 1,693 | 1,658 | 1,723 | 1,647 | 2,999 | 3,370 | |||||||||||||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||||||||||
Policyholder benefits and claims and policyholder dividends | 248 | 413 | 316 | 288 | 232 | 424 | 520 | |||||||||||||||||||||||||
Interest credited to policyholder account balances | 394 | 408 | 398 | 380 | 377 | 787 | 757 | |||||||||||||||||||||||||
Capitalization of DAC | (363 | ) | (450 | ) | (390 | ) | (282 | ) | (248 | ) | (651 | ) | (530 | ) | ||||||||||||||||||
Amortization of DAC and VOBA | 215 | 319 | 204 | 185 | 258 | 392 | 443 | |||||||||||||||||||||||||
Amortization of negative VOBA | - | - | - | - | - | - | - | |||||||||||||||||||||||||
Interest expense on debt | - | - | 1 | - | 1 | - | 1 | |||||||||||||||||||||||||
Other expenses | 779 | 858 | 808 | 718 | 680 | 1,451 | 1,398 | |||||||||||||||||||||||||
Total operating expenses | 1,273 | 1,548 | 1,337 | 1,289 | 1,300 | 2,403 | 2,589 | |||||||||||||||||||||||||
Operating earnings before provision for income tax | 280 | 145 | 321 | 434 | 347 | 596 | 781 | |||||||||||||||||||||||||
Provision for income tax expense (benefit) | 99 | 52 | 112 | 152 | 121 | 209 | 273 | |||||||||||||||||||||||||
Operating earnings | 181 | 93 | 209 | 282 | 226 | 387 | 508 | |||||||||||||||||||||||||
Preferred stock dividends | - | - | - | - | - | - | - | |||||||||||||||||||||||||
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS | $ | 181 | $ | 93 | $ | 209 | $ | 282 | $ | 226 | $ | 387 | $ | 508 | ||||||||||||||||||
Reconciliation to Net Income (Loss) and Financial Statement Line Item Adjustments from GAAP | ||||||||||||||||||||||||||||||||
Operating earnings | $ | 181 | $ | 93 | $ | 209 | $ | 282 | $ | 226 | $ | 387 | $ | 508 | ||||||||||||||||||
Adjustments from operating earnings to income (loss) from continuing operations: | ||||||||||||||||||||||||||||||||
Net investment gains (losses) | 41 | 23 | 15 | 30 | 35 | 50 | 65 | |||||||||||||||||||||||||
Net derivative gains (losses) | 255 | 918 | 518 | (357 | ) | 650 | 251 | 293 | ||||||||||||||||||||||||
Premiums | - | - | - | - | - | - | - | |||||||||||||||||||||||||
Universal life and investment-type product policy fees | 58 | 74 | 66 | 72 | 74 | 116 | 146 | |||||||||||||||||||||||||
Net investment income | (31 | ) | (45 | ) | (57 | ) | (60 | ) | (62 | ) | (67 | ) | (122 | ) | ||||||||||||||||||
Other revenues | - | - | - | - | - | - | - | |||||||||||||||||||||||||
Policyholder benefits and claims and policyholder dividends | (12 | ) | 407 | (449 | ) | (393 | ) | 50 | (159 | ) | (343 | ) | ||||||||||||||||||||
Interest credited to policyholder account balances | - | - | - | - | - | - | - | |||||||||||||||||||||||||
Capitalization of DAC | - | - | - | - | - | - | - | |||||||||||||||||||||||||
Amortization of DAC and VOBA | (114 | ) | (484 | ) | (44 | ) | 293 | (275 | ) | (55 | ) | 18 | ||||||||||||||||||||
Amortization of negative VOBA | - | - | - | - | - | - | - | |||||||||||||||||||||||||
Interest expense on debt | - | - | - | - | - | - | - | |||||||||||||||||||||||||
Other expenses | - | - | - | - | - | - | - | |||||||||||||||||||||||||
Provision for income tax (expense) benefit | (68 | ) | (310 | ) | (18 | ) | 145 | (165 | ) | (47 | ) | (20 | ) | |||||||||||||||||||
Income (loss) from continuing operations, net of income tax | 310 | 676 | 240 | 12 | 533 | 476 | 545 | |||||||||||||||||||||||||
Income (loss) from discontinued operations, net of income tax | - | - | - | 1 | - | - | 1 | |||||||||||||||||||||||||
Net income (loss) | 310 | 676 | 240 | 13 | 533 | 476 | 546 | |||||||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interest | - | 1 | (2 | ) | - | - | - | - | ||||||||||||||||||||||||
Net income (loss) attributable to MetLife, Inc. | 310 | 675 | 242 | 13 | 533 | 476 | 546 | |||||||||||||||||||||||||
Less: Preferred stock dividends | - | - | - | - | - | - | - | |||||||||||||||||||||||||
Less: Preferred stock redemption premium | - | - | - | - | - | - | - | |||||||||||||||||||||||||
Net income (loss) available to MetLife, Inc.’s common shareholders | $ | 310 | $ | 675 | $ | 242 | $ | 13 | $ | 533 | $ | 476 | $ | 546 | ||||||||||||||||||
Total Operating Premiums, Fees and Other Revenues | $ | 844 | $ | 979 | $ | 922 | $ | 963 | $ | 897 | $ | 1,579 | $ | 1,860 | ||||||||||||||||||
Lapse Ratio | ||||||||||||||||||||||||||||||||
Fixed Annuities | 6.4 | % | 6.6 | % | 7.8 | % | 9.5 | % | 9.8 | % | ||||||||||||||||||||||
Variable Annuities | 7.4 | % | 6.9 | % | 6.8 | % | 6.5 | % | 6.2 | % |
13
Table of Contents
RETAIL FUTURE POLICY BENEFITS AND POLICYHOLDER ACCOUNT BALANCES; AND SEPARATE ACCOUNT LIABILITIES
FUTURE POLICY BENEFITS AND POLICYHOLDER ACCOUNT BALANCES
LIFE
| ||||||||||||||||||||||
| For the Three Months Ended | |||||||||||||||||||||
Unaudited (In millions) | June 30, 2011 | September 30, 2011 | December 31, 2011 | March 31, 2012 | June 30, 2012 | |||||||||||||||||
Balance, beginning of period | $ | 76,713 | $ | 77,207 | $ | 77,654 | $ | 77,949 | $ | 78,471 | ||||||||||||
Premiums and deposits (1), (2) | 2,055 | 2,066 | 2,157 | 2,041 | 2,026 | |||||||||||||||||
Surrenders and withdrawals | (895 | ) | (905 | ) | (887 | ) | (886 | ) | (913 | ) | ||||||||||||
Benefit payments | (627 | ) | (694 | ) | (670 | ) | (676 | ) | (620 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net Flows | 533 | 467 | 600 | 479 | 493 | |||||||||||||||||
Net transfers from (to) separate account | 36 | 27 | 27 | 28 | 23 | |||||||||||||||||
Interest | 767 | 777 | 780 | 788 | 785 | |||||||||||||||||
Policy charges | (428 | ) | (435 | ) | (446 | ) | (445 | ) | (443 | ) | ||||||||||||
Other | (414 | ) | (389 | ) | (666 | ) | (328 | ) | (436 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||
Balance, end of period | $ | 77,207 | $ | 77,654 | $ | 77,949 | $ | 78,471 | $ | 78,893 | ||||||||||||
ANNUITIES
| ||||||||||||||||||||||
| For the Three Months Ended | |||||||||||||||||||||
Unaudited (In millions) | June 30, 2011 | September 30, 2011 | December 31, 2011 | March 31, 2012 | June 30, 2012 | |||||||||||||||||
Balance, beginning of period | $ | 50,334 | $ | 50,885 | $ | 54,991 | $ | 53,899 | $ | 51,360 | ||||||||||||
Premiums and deposits (1), (2) | 1,931 | 2,699 | 2,216 | 1,483 | 1,245 | |||||||||||||||||
Surrenders and withdrawals | (921 | ) | (991 | ) | (1,300 | ) | (1,346 | ) | (905 | ) | ||||||||||||
Benefit payments | (376 | ) | (384 | ) | (370 | ) | (400 | ) | (391 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net Flows | 634 | 1,324 | 546 | (263 | ) | (51 | ) | |||||||||||||||
Net transfers from (to) separate account | (733 | ) | (624 | ) | (1,401 | ) | (1,251 | ) | (750 | ) | ||||||||||||
Interest | 479 | 484 | 472 | 450 | 444 | |||||||||||||||||
Policy charges | (20 | ) | (19 | ) | (15 | ) | (15 | ) | (16 | ) | ||||||||||||
Other | 191 | 2,941 | (694 | ) | (1,460 | ) | 1,239 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||
Balance, end of period | $ | 50,885 | $ | 54,991 | $ | 53,899 | $ | 51,360 | $ | 52,226 | ||||||||||||
SEPARATE ACCOUNT LIABILITIES | ||||||||||||||||||||||
LIFE
| ||||||||||||||||||||||
| For the Three Months Ended | |||||||||||||||||||||
Unaudited (In millions) | June 30, 2011 | September 30, 2011 | December 31, 2011 | March 31, 2012 | June 30, 2012 | |||||||||||||||||
Balance, beginning of period | $ | 9,368 | $ | 9,301 | $ | 8,071 | $ | 7,946 | $ | 8,641 | ||||||||||||
Premiums and deposits (2) | 184 | 178 | 240 | 180 | 174 | |||||||||||||||||
Surrenders and withdrawals | (131 | ) | (116 | ) | (109 | ) | (111 | ) | (116 | ) | ||||||||||||
Benefit payments | (14 | ) | (8 | ) | (8 | ) | (12 | ) | (10 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net Flows | 39 | 54 | 123 | 57 | 48 | |||||||||||||||||
Investment performance | 69 | (1,121 | ) | 576 | 809 | (304 | ) | |||||||||||||||
Net transfers from (to) general account | (36 | ) | (27 | ) | (27 | ) | (28 | ) | (23 | ) | ||||||||||||
Policy charges | (139 | ) | (136 | ) | (136 | ) | (134 | ) | (133 | ) | ||||||||||||
Other | - | - | (661 | ) | (9 | ) | 3 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||
Balance, end of period | $ | 9,301 | $ | 8,071 | $ | 7,946 | $ | 8,641 | $ | 8,232 | ||||||||||||
ANNUITIES
| ||||||||||||||||||||||
| For the Three Months Ended | |||||||||||||||||||||
Unaudited (In millions) | June 30, 2011 | September 30, 2011 | December 31, 2011 | March 31, 2012 | June 30, 2012 | |||||||||||||||||
Balance, beginning of period | $ | 114,510 | $ | 118,463 | $ | 108,655 | $ | 120,263 | $ | 133,462 | ||||||||||||
Premiums and deposits (2) | 5,703 | 6,787 | 5,778 | 4,232 | 3,870 | |||||||||||||||||
Surrenders and withdrawals | (2,330 | ) | (2,112 | ) | (1,993 | ) | (2,151 | ) | (2,103 | ) | ||||||||||||
Benefit payments | (219 | ) | (209 | ) | (203 | ) | (242 | ) | (254 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net Flows | 3,154 | 4,466 | 3,582 | 1,839 | 1,513 | |||||||||||||||||
Investment performance | 655 | (14,329 | ) | 7,214 | 10,760 | (3,587 | ) | |||||||||||||||
Net transfers from (to) general account | 733 | 624 | 1,401 | 1,251 | 750 | |||||||||||||||||
Policy charges | (589 | ) | (574 | ) | (589 | ) | (652 | ) | (723 | ) | ||||||||||||
Other | - | 5 | - | 1 | 1 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||
Balance, end of period | $ | 118,463 | $ | 108,655 | $ | 120,263 | $ | 133,462 | $ | 131,416 | ||||||||||||
(1) Includes premiums and deposits directed to the General Account investment option of variable products. |
14
Table of Contents
RETAIL OTHER EXPENSES BY MAJOR CATEGORY AND SALES BY PRODUCT
OTHER EXPENSES
| ||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||
Unaudited (In millions) | June 30, 2011 | September 30, 2011 | December 31, 2011 | March 31, 2012 | June 30, 2012 | |||||||||||||||
Direct and allocated expenses | $ | 424 | $ | 390 | $ | 437 | $ | 429 | $ 419 | |||||||||||
Pension and post-retirement benefit costs | 51 | 55 | 51 | 52 | 52 | |||||||||||||||
Premium taxes, other taxes, and licenses & fees | 32 | 25 | 37 | 36 | 33 | |||||||||||||||
Total fixed operating expenses | $ | 507 | $ | 470 | $ | 525 | $ | 517 | $ 504 | |||||||||||
Commissions and other variable expenses | 817 | 907 | 839 | 739 | 697 | |||||||||||||||
Total other expenses | $ | 1,324 | $ | 1,377 | $ | 1,364 | $ | 1,256 | $ 1,201 | |||||||||||
SALES BY PRODUCT | ||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||
Unaudited (In millions) | June 30, 2011 | September 30, 2011 | December 31, 2011 | March 31, 2012 | June 30, 2012 | |||||||||||||||
Life Sales (1) | ||||||||||||||||||||
Term life | $ | 33 | $ | 32 | $ | 35 | $ | 34 | $ 36 | |||||||||||
Whole life | 30 | 27 | 29 | 28 | 33 | |||||||||||||||
Variable life | 11 | 9 | 16 | 8 | 8 | |||||||||||||||
Universal life | 54 | 52 | 56 | 42 | 37 | |||||||||||||||
Total life | $ | 128 | $ | 120 | $ | 136 | $ | 112 | $ 114 | |||||||||||
Annuities Sales (2) | ||||||||||||||||||||
Fixed annuity | $ | 283 | $ | 506 | $ | 453 | $ | 435 | $ 225 | |||||||||||
Variable annuity | 6,968 | 8,559 | 7,229 | 4,926 | 4,613 | |||||||||||||||
Total annuity | $ | 7,251 | $ | 9,065 | $ | 7,682 | $ | 5,361 | $ 4,838 | |||||||||||
Annuity Separate Account and General Account | ||||||||||||||||||||
Separate Account | ||||||||||||||||||||
Total variable annuity separate account | $ | 5,398 | $ | 6,442 | $ | 5,538 | $ | 3,964 | $ 3,669 | |||||||||||
General Account | ||||||||||||||||||||
Fixed annuity | 283 | 506 | 453 | 435 | 225 | |||||||||||||||
Variable annuity | 1,570 | 2,117 | 1,691 | 962 | 944 | |||||||||||||||
Total general account | 1,853 | 2,623 | 2,144 | 1,397 | 1,169 | |||||||||||||||
Total annuity premiums and deposits | $ | 7,251 | $ | 9,065 | $ | 7,682 | $ | 5,361 | $ 4,838 | |||||||||||
(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) Statutory premiums direct and assumed, excluding company sponsored internal exchanges. |
15
Table of Contents
RETAIL SPREAD BY PRODUCT
VARIABLE & UNIVERSAL LIFE |
| |||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||||
Unaudited | June 30, 2011 | September 30, 2011 | December 31, 2011 | March 31, 2012 | June 30, 2012 | |||||||||||||||||
Investment income yield | 6.57% | 6.33% | 5.80% | 6.42% | 6.45% | |||||||||||||||||
Average crediting rate | 4.47% | 4.55% | 4.49% | 4.61% | 4.52% | |||||||||||||||||
Annualized general account spread (1) | 2.10% | 1.78% | 1.31% | 1.81% | 1.93% | |||||||||||||||||
DEFERRED ANNUITIES |
| |||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||||
Unaudited | June 30, 2011 | September 30, 2011 | December 31, 2011 | March 31, 2012 | June 30, 2012 | |||||||||||||||||
Investment income yield | 6.11% | 6.07% | 6.48% | 6.48% | 6.42% | |||||||||||||||||
Average crediting rate | 3.54% | 3.50% | 3.47% | 3.39% | 3.41% | |||||||||||||||||
Annualized general account spread (2) | 2.57% | 2.57% | 3.01% | 3.09% | 3.01% | |||||||||||||||||
(1) This represents the general account spread for Variable & Universal Life, a component of Life. |
16
Table of Contents
17
Table of Contents
THE AMERICAS | ||||||||||||||||||||||||||||||||
GROUP, VOLUNTARY & WORKSITE BENEFITS - GROUP LIFE | ||||||||||||||||||||||||||||||||
STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS - PRODUCT LEVEL
|
| |||||||||||||||||||||||||||||||
For the Three Months Ended | For the Year-to-Date Period Ended | |||||||||||||||||||||||||||||||
Unaudited (In millions, except ratios) | June 30, 2011 | September 30, 2011 | December 31, 2011 | March 31, 2012 | June 30, 2012 | June 30, 2011 | June 30, 2012 | |||||||||||||||||||||||||
OPERATING REVENUES | ||||||||||||||||||||||||||||||||
Premiums | $ | 1,818 | $ | 1,711 | $ | 1,771 | $ | 1,820 | $ | 1,831 | $ | 3,583 | $ | 3,651 | ||||||||||||||||||
Universal life and investment-type product policy fees | 155 | 159 | 157 | 166 | 165 | 314 | 331 | |||||||||||||||||||||||||
Net investment income | 205 | 200 | 194 | 194 | 187 | 405 | 381 | |||||||||||||||||||||||||
Other revenues | 1 | - | 1 | - | 1 | 3 | 1 | |||||||||||||||||||||||||
Total operating revenues | 2,179 | 2,070 | 2,123 | 2,180 | 2,184 | 4,305 | 4,364 | |||||||||||||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||||||||||
Policyholder benefits and claims and policyholder dividends | 1,726 | 1,847 | 1,732 | 1,835 | 1,816 | 3,494 | 3,651 | |||||||||||||||||||||||||
Interest credited to policyholder account balances | 42 | 43 | 40 | 39 | 40 | 82 | 79 | |||||||||||||||||||||||||
Capitalization of DAC | (3 | ) | (3 | ) | (2 | ) | - | (1 | ) | (7 | ) | (1 | ) | |||||||||||||||||||
Amortization of DAC and VOBA | 4 | 1 | 4 | 1 | - | 7 | 1 | |||||||||||||||||||||||||
Amortization of negative VOBA | - | - | - | - | - | - | - | |||||||||||||||||||||||||
Interest expense on debt | - | - | - | - | - | - | - | |||||||||||||||||||||||||
Other expenses | 141 | 141 | 142 | 145 | 146 | 281 | 291 | |||||||||||||||||||||||||
Total operating expenses | 1,910 | 2,029 | 1,916 | 2,020 | 2,001 | 3,857 | 4,021 | |||||||||||||||||||||||||
Operating earnings before provision for income tax | 269 | 41 | 207 | 160 | 183 | 448 | 343 | |||||||||||||||||||||||||
Provision for income tax expense (benefit) | 94 | 14 | 73 | 55 | 65 | 157 | 120 | |||||||||||||||||||||||||
Operating earnings | 175 | 27 | 134 | 105 | 118 | 291 | 223 | |||||||||||||||||||||||||
Preferred stock dividends | - | - | - | - | - | - | - | |||||||||||||||||||||||||
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS | $ | 175 | $ | 27 | $ | 134 | $ | 105 | $ | 118 | $ | 291 | $ | 223 | ||||||||||||||||||
Reconciliation to Net Income (Loss) and Financial Statement Line | ||||||||||||||||||||||||||||||||
Operating earnings | $ | 175 | $ | 27 | $ | 134 | $ | 105 | $ | 118 | $ | 291 | $ | 223 | ||||||||||||||||||
Adjustments from operating earnings to income (loss) from continuing operations: | ||||||||||||||||||||||||||||||||
Net investment gains (losses) | (6 | ) | (14 | ) | (1 | ) | - | (13 | ) | (3 | ) | (13 | ) | |||||||||||||||||||
Net derivative gains (losses) | 36 | 56 | 13 | (19 | ) | 32 | 14 | 13 | ||||||||||||||||||||||||
Premiums | - | - | - | - | - | - | - | |||||||||||||||||||||||||
Universal life and investment-type product policy fees | - | - | - | - | - | - | - | |||||||||||||||||||||||||
Net investment income | (21 | ) | (21 | ) | (20 | ) | (19 | ) | (18 | ) | (39 | ) | (37 | ) | ||||||||||||||||||
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 | (3 | ) | (8 | ) | 3 | 13 | - | 10 | 13 | |||||||||||||||||||||||
Income (loss) from continuing operations, net of income tax | 181 | 40 | 129 | 80 | 119 | 273 | 199 | |||||||||||||||||||||||||
Income (loss) from discontinued operations, net of income tax | - | 2 | - | - | - | - | - | |||||||||||||||||||||||||
Net income (loss) | 181 | 42 | 129 | 80 | 119 | 273 | 199 | |||||||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interest | - | - | - | - | - | - | - | |||||||||||||||||||||||||
Net income (loss) attributable to MetLife, Inc. | 181 | 42 | 129 | 80 | 119 | 273 | 199 | |||||||||||||||||||||||||
Less: Preferred stock dividends | - | - | - | - | - | - | - | |||||||||||||||||||||||||
Less: Preferred stock redemption premium | - | - | - | - | - | - | - | |||||||||||||||||||||||||
Net income (loss) available to MetLife, Inc.’s common shareholders | $ | 181 | $ | 42 | $ | 129 | $ | 80 | $ | 119 | $ | 273 | $ | 199 | ||||||||||||||||||
Total Operating Premiums, Fees and Other Revenues | $ | 1,974 | $ | 1,870 | $ | 1,929 | $ | 1,986 | $ | 1,997 | $ | 3,900 | $ | 3,983 | ||||||||||||||||||
Group Life Mortality Ratio | 82.1 | % | 98.5 | % | 85.2 | % | 89.1 | % | 87.3 | % |
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Table of Contents
THE AMERICAS | ||||||||||||||||||||||||||||||||
GROUP, VOLUNTARY & WORKSITE BENEFITS - NON-MEDICAL HEALTH | ||||||||||||||||||||||||||||||||
STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS - PRODUCT LEVEL
|
| |||||||||||||||||||||||||||||||
For the Three Months Ended | For the Year-to-Date Period Ended | |||||||||||||||||||||||||||||||
Unaudited (In millions, except ratios) | June 30, 2011 | September 30, 2011 | December 31, 2011 | March 31, 2012 | June 30, 2012 | June 30, 2011 | June 30, 2012 | |||||||||||||||||||||||||
OPERATING REVENUES | ||||||||||||||||||||||||||||||||
Premiums | $ | 1,462 | $ | 1,455 | $ | 1,461 | $ | 1,500 | $ | 1,586 | $ | 2,938 | $ | 3,086 | ||||||||||||||||||
Universal life and investment-type product policy fees | - | - | - | - | - | - | - | |||||||||||||||||||||||||
Net investment income | 249 | 252 | 246 | 244 | 256 | 481 | 500 | |||||||||||||||||||||||||
Other revenues | 91 | 93 | 97 | 104 | 98 | 182 | 202 | |||||||||||||||||||||||||
Total operating revenues | 1,802 | 1,800 | 1,804 | 1,848 | 1,940 | 3,601 | 3,788 | |||||||||||||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||||||||||
Policyholder benefits and claims and policyholder dividends | 1,280 | 1,260 | 1,298 | 1,301 | 1,366 | 2,574 | 2,667 | |||||||||||||||||||||||||
Interest credited to policyholder account balances | 3 | 3 | 4 | 3 | 3 | 6 | 6 | |||||||||||||||||||||||||
Capitalization of DAC | (32 | ) | (29 | ) | (21 | ) | (16 | ) | (17 | ) | (69 | ) | (33 | ) | ||||||||||||||||||
Amortization of DAC and VOBA | 31 | 26 | 29 | 13 | 11 | 57 | 24 | |||||||||||||||||||||||||
Amortization of negative VOBA | - | - | - | - | - | - | - | |||||||||||||||||||||||||
Interest expense on debt | - | - | - | - | - | - | - | |||||||||||||||||||||||||
Other expenses | 353 | 356 | 366 | 380 | 373 | 712 | 753 | |||||||||||||||||||||||||
Total operating expenses | 1,635 | 1,616 | 1,676 | 1,681 | 1,736 | 3,280 | 3,417 | |||||||||||||||||||||||||
Operating earnings before provision for income tax | 167 | 184 | 128 | 167 | 204 | 321 | 371 | |||||||||||||||||||||||||
Provision for income tax expense (benefit) | 58 | 65 | 45 | 59 | 71 | 112 | 130 | |||||||||||||||||||||||||
Operating earnings | 109 | 119 | 83 | 108 | 133 | 209 | 241 | |||||||||||||||||||||||||
Preferred stock dividends | - | - | - | - | - | - | - | |||||||||||||||||||||||||
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS | $ | 109 | $ | 119 | $ | 83 | $ | 108 | $ | 133 | $ | 209 | $ | 241 | ||||||||||||||||||
Reconciliation to Net Income (Loss) and Financial Statement Line Item Adjustments from GAAP | ||||||||||||||||||||||||||||||||
Operating earnings | $ | 109 | $ | 119 | $ | 83 | $ | 108 | $ | 133 | $ | 209 | $ | 241 | ||||||||||||||||||
Adjustments from operating earnings to income (loss) from continuing operations: | ||||||||||||||||||||||||||||||||
Net investment gains (losses) | 4 | 7 | (8 | ) | (7 | ) | 21 | 12 | 14 | |||||||||||||||||||||||
Net derivative gains (losses) | 144 | 1,016 | 105 | (361 | ) | 540 | 67 | 179 | ||||||||||||||||||||||||
Premiums | - | - | - | - | - | - | - | |||||||||||||||||||||||||
Universal life and investment-type product policy fees | - | - | - | - | - | - | - | |||||||||||||||||||||||||
Net investment income | (16 | ) | (17 | ) | (16 | ) | (19 | ) | (22 | ) | (30 | ) | (41 | ) | ||||||||||||||||||
Other revenues | - | - | - | - | - | - | - | |||||||||||||||||||||||||
Policyholder benefits and claims and policyholder dividends | - | 1 | (1 | ) | - | - | - | - | ||||||||||||||||||||||||
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 | (47 | ) | (351 | ) | (27 | ) | 137 | (190 | ) | (18 | ) | (53 | ) | |||||||||||||||||||
Income (loss) from continuing operations, net of income tax | 194 | 776 | 135 | (142 | ) | 482 | 240 | 340 | ||||||||||||||||||||||||
Income (loss) from discontinued operations, net of income tax | - | - | - | - | - | - | - | |||||||||||||||||||||||||
Net income (loss) | 194 | 776 | 135 | (142 | ) | 482 | 240 | 340 | ||||||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interest | - | - | (1 | ) | - | - | - | - | ||||||||||||||||||||||||
Net income (loss) attributable to MetLife, Inc. | 194 | 776 | 136 | (142 | ) | 482 | 240 | 340 | ||||||||||||||||||||||||
Less: Preferred stock dividends | - | - | - | - | - | - | - | |||||||||||||||||||||||||
Less: Preferred stock redemption premium | - | - | - | - | - | - | - | |||||||||||||||||||||||||
Net income (loss) available to MetLife, Inc.’s common shareholders | $ | 194 | $ | 776 | $ | 136 | $ | (142 | ) | $ | 482 | $ | 240 | $ | 340 | |||||||||||||||||
Total Operating Premiums, Fees and Other Revenues | $ | 1,553 | $ | 1,548 | $ | 1,558 | $ | 1,604 | $ | 1,684 | $ | 3,120 | $ | 3,288 | ||||||||||||||||||
Non-Medical Health Benefit Ratio | 87.5 | % | 86.6 | % | 88.9 | % | 86.7 | % | 86.1 | % |
19
Table of Contents
THE AMERICAS | ||||||||||||||||||||||||||||||||
GROUP, VOLUNTARY & WORKSITE BENEFITS - PROPERTY & CASUALTY | ||||||||||||||||||||||||||||||||
STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS - PRODUCT LEVEL
| ||||||||||||||||||||||||||||||||
For the Three Months Ended | For the Year-to-Date Period Ended | |||||||||||||||||||||||||||||||
Unaudited (In millions) | June 30, 2011 | September 30, 2011 | December 31, 2011 | March 31, 2012 | June 30, 2012 | June 30, 2011 | June 30, 2012 | |||||||||||||||||||||||||
OPERATING REVENUES | ||||||||||||||||||||||||||||||||
Premiums (1) | $ | 748 | $ | 760 | $ | 757 | $ | 753 | $ | 761 | $ | 1,483 | $ | 1,514 | ||||||||||||||||||
Universal life and investment-type product policy fees | - | - | - | - | - | - | - | |||||||||||||||||||||||||
Net investment income | 51 | 50 | 51 | 53 | 51 | 104 | 104 | |||||||||||||||||||||||||
Other revenues | 7 | 8 | 10 | 8 | 17 | 15 | 25 | |||||||||||||||||||||||||
Total operating revenues | 806 | 818 | 818 | 814 | 829 | 1,602 | 1,643 | |||||||||||||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||||||||||
Policyholder benefits and claims and policyholder dividends (1) | 719 | 613 | 511 | 503 | 584 | 1,251 | 1,087 | |||||||||||||||||||||||||
Interest credited to policyholder account balances | - | - | - | - | - | - | - | |||||||||||||||||||||||||
Capitalization of DAC | (88 | ) | (93 | ) | (84 | ) | (86 | ) | (94 | ) | (169 | ) | (180 | ) | ||||||||||||||||||
Amortization of DAC and VOBA | 84 | 88 | 86 | 87 | 87 | 169 | 174 | |||||||||||||||||||||||||
Amortization of negative VOBA | - | - | - | - | - | - | - | |||||||||||||||||||||||||
Interest expense on debt | - | - | - | - | - | - | - | |||||||||||||||||||||||||
Other expenses | 198 | 200 | 201 | 191 | 205 | 391 | 396 | |||||||||||||||||||||||||
Total operating expenses | 913 | 808 | 714 | 695 | 782 | 1,642 | 1,477 | |||||||||||||||||||||||||
Operating earnings before provision for income tax | (107 | ) | 10 | 104 | 119 | 47 | (40 | ) | 166 | |||||||||||||||||||||||
Provision for income tax expense (benefit) | (51 | ) | (11 | ) | 23 | 28 | 3 | (41 | ) | 31 | ||||||||||||||||||||||
Operating earnings | (56) | 21 | 81 | 91 | 44 | 1 | 135 | |||||||||||||||||||||||||
Preferred stock dividends | - | - | - | - | - | - | - | |||||||||||||||||||||||||
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS | $ | (56) | $ | 21 | $ | 81 | $ | 91 | $ | 44 | $ | 1 | $ | 135 | ||||||||||||||||||
Reconciliation to Net Income (Loss) and Financial Statement Line Item Adjustments from GAAP | ||||||||||||||||||||||||||||||||
Operating earnings | $ | (56 | ) | $ | 21 | $ | 81 | $ | 91 | $ | 44 | $ | 1 | $ | 135 | |||||||||||||||||
Adjustments from operating earnings to income (loss) from continuing operations: | ||||||||||||||||||||||||||||||||
Net investment gains (losses) | (6 | ) | (4 | ) | 1 | 1 | 11 | (6 | ) | 12 | ||||||||||||||||||||||
Net derivative gains (losses) | (3 | ) | (7 | ) | (2 | ) | 1 | (5 | ) | (3 | ) | (4 | ) | |||||||||||||||||||
Premiums | - | - | - | - | - | - | - | |||||||||||||||||||||||||
Universal life and investment-type product policy fees | - | - | - | - | - | - | - | |||||||||||||||||||||||||
Net investment income | - | - | - | - | - | - | - | |||||||||||||||||||||||||
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 | 3 | 4 | - | (1 | ) | (2 | ) | 3 | (3 | ) | ||||||||||||||||||||||
Income (loss) from continuing operations, net of income tax | (62 | ) | 14 | 80 | 92 | 48 | (5 | ) | 140 | |||||||||||||||||||||||
Income (loss) from discontinued operations, net of income tax | - | - | - | - | - | - | - | |||||||||||||||||||||||||
Net income (loss) | (62 | ) | 14 | 80 | 92 | 48 | (5 | ) | 140 | |||||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interest | - | - | - | - | - | - | - | |||||||||||||||||||||||||
Net income (loss) attributable to MetLife, Inc. | (62 | ) | 14 | 80 | 92 | 48 | (5 | ) | 140 | |||||||||||||||||||||||
Less: Preferred stock dividends | - | - | - | - | - | - | - | |||||||||||||||||||||||||
Less: Preferred stock redemption premium | - | - | - | - | - | - | - | |||||||||||||||||||||||||
Net income (loss) available to MetLife, Inc.’s common shareholders | $ | (62 | ) | $ | 14 | $ | 80 | $ | 92 | $ | 48 | $ | (5 | ) | $ | 140 | ||||||||||||||||
Total Operating Premiums, Fees and Other Revenues | $ | 755 | $ | 768 | $ | 767 | $ | 761 | $ | 778 | $ | 1,498 | $ | 1,539 | ||||||||||||||||||
(1) Premiums reflect earned premiums and policyholder benefits and claims and policyholder dividends includes losses and loss adjustment expense. |
|
20
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21
Table of Contents
GROUP, VOLUNTARY & WORKSITE BENEFITS | ||||||||||||||||||||||
OTHER EXPENSES BY MAJOR CATEGORY | ||||||||||||||||||||||
OTHER EXPENSES | ||||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||||
Unaudited (In millions) | June 30, 2011 | September 30, 2011 | December 31, 2011 | March 31, 2012 | June 30, 2012 | |||||||||||||||||
Direct and allocated expenses | $ | 441 | $ | 445 | $ | 468 | $ | 479 | $ | 463 | ||||||||||||
Pension and post-retirement benefit costs | 25 | 25 | 25 | 24 | 24 | |||||||||||||||||
Premium taxes, other taxes, and licenses & fees | 68 | 68 | 63 | 67 | 73 | |||||||||||||||||
Total fixed operating expenses | $ | 534 | $ | 538 | $ | 556 | $ | 570 | $ | 560 | ||||||||||||
Commissions and other variable expenses | 158 | 159 | 153 | 146 | 164 | |||||||||||||||||
Total other expenses | $ | 692 | $ | 697 | $ | 709 | $ | 716 | $ | 724 |
22
Table of Contents
GROUP, VOLUNTARY & WORKSITE BENEFITS SPREAD BY PRODUCT
GROUP LIFE | ||||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||||
Unaudited | June 30, 2011 | September 30, 2011 | December 31, 2011 | March 31, 2012 | June 30, 2012 | |||||||||||||||||
Investment income yield | 5.73 | % | 5.66 | % | 5.62 | % | 5.69 | % | 5.53 | % | ||||||||||||
Average crediting rate | 2.07 | % | 2.11 | % | 2.01 | % | 2.01 | % | 1.98 | % | ||||||||||||
Annualized general account spread | 3.66 | % | 3.55 | % | 3.61 | % | 3.68 | % | 3.55 | % | ||||||||||||
NON-MEDICAL HEALTH | ||||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||||
Unaudited | June 30, 2011 | September 30, 2011 | December 31, 2011 | March 31, 2012 | June 30, 2012 | |||||||||||||||||
Investment income yield | 6.53 | % | 6.35 | % | 6.40 | % | 6.37 | % | 6.52 | % | ||||||||||||
Average crediting rate | 4.70 | % | 4.66 | % | 4.68 | % | 4.68 | % | 4.67 | % | ||||||||||||
Annualized general account spread | 1.83 | % | 1.69 | % | 1.72 | % | 1.69 | % | 1.85 | % |
23
Table of Contents
GROUP, VOLUNTARY & WORKSITE BENEFITS - PROPERTY & CASUALTY |
NET WRITTEN PREMIUMS BY PRODUCT AND SELECTED FINANCIAL INFORMATION AND SUPPLEMENTAL DATA |
For the Three Months Ended | ||||||||||||||||||||||
Unaudited (In millions, except ratios) | June 30, 2011 | September 30, 2011 | December 31, 2011 | March 31, 2012 | June 30, 2012 | |||||||||||||||||
Net Written Premiums by Product | ||||||||||||||||||||||
Automobile | $ | 509 | $ | 529 | $ | 491 | $ | 502 | $ | 518 | ||||||||||||
Homeowners | 255 | 265 | 238 | 214 | 273 | |||||||||||||||||
Other | 14 | 13 | 11 | 25 | 13 | |||||||||||||||||
Total | $ | 778 | $ | 807 | $ | 740 | $ | 741 | $ | 804 | ||||||||||||
Selected Financial Information and Supplemental Data | ||||||||||||||||||||||
Total Property & Casualty | ||||||||||||||||||||||
Net earned premium | $ | 748 | $ | 760 | $ | 757 | $ | 753 | $ | 761 | ||||||||||||
Loss and loss adjustment expense ratio | 96.1 | % | 80.6 | % | 67.5 | % | 66.9 | % | 76.6 | % | ||||||||||||
Policyholder benefits and dividends | 0.1 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.1 | % | ||||||||||||
Other expense ratio | 26.0 | % | 25.7 | % | 26.7 | % | 25.3 | % | 26.1 | % | ||||||||||||
Payment fees credit | (0.5 | %) | (0.5 | %) | (0.5 | %) | (0.5 | %) | (0.5 | %) | ||||||||||||
Total combined ratio | 121.7 | % | 105.8 | % | 93.7 | % | 91.7 | % | 102.3 | % | ||||||||||||
Effect of catastrophe losses | 35.8 | % | 17.7 | % | 3.6 | % | 3.5 | % | 18.9 | % | ||||||||||||
Combined ratio excluding catastrophes | 85.9 | % | 88.1 | % | 90.1 | % | 88.2 | % | 83.4 | % | ||||||||||||
Auto | ||||||||||||||||||||||
Net earned premium | $ | 501 | $ | 508 | $ | 503 | $ | 497 | $ | 503 | ||||||||||||
Loss and loss adjustment expense ratio | 71.4 | % | 67.6 | % | 74.7 | % | 70.3 | % | 67.1 | % | ||||||||||||
Policyholder benefits and dividends | 0.1 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.1 | % | ||||||||||||
Other expense ratio | 25.3 | % | 25.2 | % | 26.0 | % | 24.8 | % | 25.8 | % | ||||||||||||
Payment fees credit | (0.6 | %) | (0.6 | %) | (0.6 | %) | (0.6 | %) | (0.5 | %) | ||||||||||||
Total combined ratio | 96.2 | % | 92.2 | % | 100.1 | % | 94.5 | % | 92.5 | % | ||||||||||||
Effect of catastrophe losses | 5.7 | % | 2.8 | % | 0.6 | % | 0.6 | % | 5.3 | % | ||||||||||||
Combined ratio excluding catastrophes | 90.5 | % | 89.4 | % | 99.5 | % | 93.9 | % | 87.2 | % | ||||||||||||
Homeowners & Other | ||||||||||||||||||||||
Net earned premium | $ | 247 | $ | 252 | $ | 254 | $ | 256 | $ | 258 | ||||||||||||
Loss and loss adjustment expense ratio | 146.1 | % | 106.7 | % | 53.3 | % | 60.2 | % | 95.1 | % | ||||||||||||
Policyholder benefits and dividends | 0.1 | % | 0.0 | % | 0.0 | % | 0.0 | % | 0.2 | % | ||||||||||||
Other expense ratio | 27.4 | % | 27.0 | % | 28.3 | % | 26.6 | % | 26.6 | % | ||||||||||||
Payment fees credit | (0.4 | %) | (0.4 | %) | (0.4 | %) | (0.4 | %) | (0.3 | %) | ||||||||||||
Total combined ratio | 173.2 | % | 133.3 | % | 81.2 | % | 86.4 | % | 121.6 | % | ||||||||||||
Effect of catastrophe losses | 96.8 | % | 47.7 | % | 9.4 | % | 8.9 | % | 45.6 | % | ||||||||||||
Combined ratio excluding catastrophes | 76.4 | % | 85.6 | % | 71.8 | % | 77.5 | % | 76.0 | % | ||||||||||||
Pre-Tax Catastrophe Losses | ||||||||||||||||||||||
Auto | $ | 28 | $ | 14 | $ | 4 | $ | 3 | $ | 27 | ||||||||||||
Homeowners & Other | 239 | 121 | 23 | 23 | 117 | |||||||||||||||||
Total | $ | 267 | $ | 135 | $ | 27 | $ | 26 | $ | 144 |
24
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25
Table of Contents
CORPORATE BENEFIT FUNDING FUTURE POLICY BENEFITS AND POLICYHOLDER ACCOUNT BALANCES; AND SEPARATE ACCOUNT LIABILITIES | ||||||||||||||||||||||
FUTURE POLICY BENEFITS AND POLICYHOLDER ACCOUNT BALANCES
| ||||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||||
Unaudited (In millions) | June 30, 2011 | September 30, 2011 | December 31, 2011 | March 31, 2012 | June 30, 2012 | |||||||||||||||||
Balance, beginning of period | $ | 103,328 | $ | 104,538 | $ | 104,585 | $ | 106,024 | $ | 108,339 | ||||||||||||
Premiums and deposits | 11,148 | 14,309 | 13,677 | 17,655 | 19,383 | |||||||||||||||||
Surrenders and withdrawals | (10,718 | ) | (17,348 | ) | (12,491 | ) | (14,745 | ) | (14,885 | ) | ||||||||||||
Benefit payments | (827 | ) | (881 | ) | (860 | ) | (838 | ) | (850 | ) | ||||||||||||
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Net Flows | (397 | ) | (3,920 | ) | 326 | 2,072 | 3,648 | |||||||||||||||
Net transfers from (to) separate account | (4 | ) | (12 | ) | (31 | ) | (5 | ) | (11 | ) | ||||||||||||
Interest | 1,028 | 1,015 | 1,010 | 1,021 | 1,059 | |||||||||||||||||
Policy charges | (34 | ) | (34 | ) | (32 | ) | (21 | ) | (31 | ) | ||||||||||||
Other | 617 | 2,998 | 166 | (752 | ) | 1,426 | ||||||||||||||||
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Balance, end of period | $ | 104,538 | $ | 104,585 | $ | 106,024 | $ | 108,339 | $ | 114,430 | ||||||||||||
SEPARATE ACCOUNT LIABILITIES
| ||||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||||
Unaudited (In millions) | June 30, 2011 | September 30, 2011 | December 31, 2011 | March 31, 2012 | June 30, 2012 | |||||||||||||||||
Balance, beginning of period | $ | 61,061 | $ | 63,252 | $ | 65,054 | $ | 64,851 | $ | 68,635 | ||||||||||||
Premiums and deposits | 2,853 | 3,064 | 1,984 | 2,383 | 1,546 | |||||||||||||||||
Surrenders and withdrawals | (1,404 | ) | (2,050 | ) | (2,106 | ) | (1,311 | ) | (1,198 | ) | ||||||||||||
Benefit payments | (23 | ) | (17 | ) | (13 | ) | (16 | ) | (17 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||
Net Flows | 1,426 | 997 | (135 | ) | 1,056 | 331 | ||||||||||||||||
Investment performance | 1,012 | 799 | 1,354 | 1,115 | 1,077 | |||||||||||||||||
Net transfers from (to) general account | 4 | 12 | 31 | 5 | 11 | |||||||||||||||||
Policy charges | (61 | ) | (63 | ) | (79 | ) | (84 | ) | (81 | ) | ||||||||||||
Other | (190 | ) | 57 | (1,374 | ) | 1,692 | (269 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||||
Balance, end of period | $ | 63,252 | $ | 65,054 | $ | 64,851 | $ | 68,635 | $ | 69,704 |
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CORPORATE BENEFIT FUNDING OTHER EXPENSES BY MAJOR CATEGORY | ||||||||||||||
For the Three Months Ended | ||||||||||||||
Unaudited (In millions) | June 30, 2011 | September 30, 2011 | December 31, 2011 | March 31, 2012 | June 30, 2012 | |||||||||
Direct and allocated expenses | $ 69 | $ 72 | $ 84 | $ 76 | $ 61 | |||||||||
Pension and post-retirement benefit costs | 12 | 12 | 12 | 11 | 11 | |||||||||
Premium taxes, other taxes, and licenses & fees | 5 | 10 | 4 | 3 | 5 | |||||||||
Total fixed operating expenses | $ 86 | $ 94 | $ 100 | $ 90 | $ 77 | |||||||||
Commissions and other variable expenses | 36 | 42 | 29 | 38 | 43 | |||||||||
Total other expenses | $ 122 | $ 136 | $ 129 | $ 128 | $ 120 |
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CORPORATE BENEFIT FUNDING | ||||||||||||||||||||||
SPREAD | ||||||||||||||||||||||
CORPORATE BENEFIT FUNDING | ||||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||||
Unaudited | June 30, 2011 | September 30, 2011 | December 31, 2011 | March 31, 2012 | June 30, 2012 | |||||||||||||||||
Investment income yield | 5.33% | 5.23% | 5.12% | 5.35% | 5.27% | |||||||||||||||||
Average crediting rate | 3.76% | 3.81% | 3.87% | 3.87% | 3.72% | |||||||||||||||||
Annualized general account spread | 1.57% | 1.42% | 1.25% | 1.48% | 1.55% |
28
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29
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30
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31
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32
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33
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34
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GROSS UNREALIZED GAINS AND LOSSES AGING SCHEDULE FIXED MATURITY SECURITIES AVAILABLE-FOR-SALE (1)
| ||||||||||||||||||||||||||||||||||||||||||
June 30, 2011 | September 30, 2011 | December 31, 2011 | March 31, 2012 | June 30, 2012 | ||||||||||||||||||||||||||||||||||||||
Unaudited (In millions) | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | ||||||||||||||||||||||||||||||||
Less than 20% | $ | 3,315 | 62.1% | $ | 2,818 | 53.7% | $ | 2,896 | 52.5% | $ | 1,963 | 52.6% | $ | 1,813 | 52.1% | |||||||||||||||||||||||||||
20% or more for less than six months | 825 | 15.5% | 1,377 | 26.2% | 1,332 | 24.2% | 258 | 6.9% | 272 | 7.8% | ||||||||||||||||||||||||||||||||
20% or more for six months or greater | 1,197 | 22.4% | 1,055 | 20.1% | 1,285 | 23.3% | 1,512 | 40.5% | 1,397 | 40.1% | ||||||||||||||||||||||||||||||||
Total Gross Unrealized Losses | $ | 5,337 | 100.0% | $ | 5,250 | 100.0% | $ | 5,513 | 100.0% | $ | 3,733 | 100.0% | $ | 3,482 | 100.0% | |||||||||||||||||||||||||||
Total Gross Unrealized Gains | $ | 16,178 | $ | 25,168 | $ | 25,973 | $ | 25,203 | $ | 30,950 | ||||||||||||||||||||||||||||||||
GROSS UNREALIZED GAINS AND LOSSES AGING SCHEDULE EQUITY SECURITIES AVAILABLE-FOR-SALE (1) | ||||||||||||||||||||||||||||||||||||||||||
June 30, 2011 | September 30, 2011 | December 31, 2011 | March 31, 2012 | June 30, 2012 | ||||||||||||||||||||||||||||||||||||||
Unaudited (In millions) | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | ||||||||||||||||||||||||||||||||
Less than 20% | $ | 42 | 36.5% | $ | 53 | 23.3% | $ | 76 | 25.4% | $ | 33 | 18.6% | $ | 56 | 25.3% | |||||||||||||||||||||||||||
20% or more for less than six months | 4 | 3.5% | 89 | 39.0% | 123 | 41.1% | 14 | 7.9% | 19 | 8.6% | ||||||||||||||||||||||||||||||||
20% or more for six months or greater | 69 | 60.0% | 86 | 37.7% | 100 | 33.5% | 130 | 73.5% | 146 | 66.1% | ||||||||||||||||||||||||||||||||
Total Gross Unrealized Losses | $ | 115 | 100.0% | $ | 228 | 100.0% | $ | 299 | 100.0% | $ | 177 | 100.0% | $ | 221 | 100.0% | |||||||||||||||||||||||||||
Total Gross Unrealized Gains | $ | 225 | $ | 119 | $ | 114 | $ | 158 | $ | 130 | ||||||||||||||||||||||||||||||||
(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. |
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SUMMARY OF FIXED MATURITY SECURITIES AVAILABLE-FOR-SALE BY SECTOR AND QUALITY DISTRIBUTION
|
| |||||||||||||||||||||||||||||||||||||||||||
Unaudited (In millions) | June 30, 2011 | September 30, 2011 | December 31, 2011 | March 31, 2012 | June 30, 2012 | |||||||||||||||||||||||||||||||||||||||
Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | |||||||||||||||||||||||||||||||||||
U.S. corporate securities | $ | 96,797 | 28.3% | $ | 106,575 | 30.1% | $ | 105,785 | 30.2% | $ | 105,273 | 29.7% | $ | 110,373 | 30.1% | |||||||||||||||||||||||||||||
Foreign corporate securities | 70,538 | 20.6% | 63,522 | 18.0% | 64,018 | 18.3% | 65,354 | 18.4% | 63,345 | 17.3% | ||||||||||||||||||||||||||||||||||
Foreign government securities | 49,246 | 14.4% | 52,959 | 15.0% | 52,536 | 15.0% | 55,338 | 15.6% | 56,193 | 15.3% | ||||||||||||||||||||||||||||||||||
U.S. Treasury and agency securities | 35,565 | 10.4% | 41,834 | 11.8% | 40,012 | 11.4% | 41,416 | 11.7% | 47,841 | 13.1% | ||||||||||||||||||||||||||||||||||
Residential mortgage-backed securities | 44,615 | 13.1% | 42,890 | 12.1% | 42,637 | 12.2% | 41,279 | 11.7% | 41,064 | 11.2% | ||||||||||||||||||||||||||||||||||
Commercial mortgage-backed securities | 19,518 | 5.7% | 19,585 | 5.5% | 19,069 | 5.4% | 18,732 | 5.3% | 19,017 | 5.2% | ||||||||||||||||||||||||||||||||||
State and political subdivision securities | 11,669 | 3.4% | 13,141 | 3.7% | 13,235 | 3.8% | 13,916 | 3.9% | 14,614 | 4.0% | ||||||||||||||||||||||||||||||||||
Asset-backed securities | 13,792 | 4.1% | 13,421 | 3.8% | 12,979 | 3.7% | 13,143 | 3.7% | 13,892 | 3.8% | ||||||||||||||||||||||||||||||||||
Other fixed maturity securities | 4 | 0.0% | - | 0.0% | - | 0.0% | - | 0.0% | - | 0.0% | ||||||||||||||||||||||||||||||||||
Total fixed maturity securities available-for-sale | $ | 341,744 | 100.0% | $ | 353,927 | 100.0% | $ | 350,271 | 100.0% | $ | 354,451 | 100.0% | $ | 366,339 | 100.0% | |||||||||||||||||||||||||||||
NAIC | RATING AGENCY | |||||||||||||||||||||||||||||||||||||||||||
RATING | DESIGNATION | |||||||||||||||||||||||||||||||||||||||||||
1 | Aaa / Aa / A | $ | 239,761 | 70.2% | $ | 250,596 | 70.8% | $ | 246,786 | 70.5% | $ | 248,544 | 70.1% | $ | 258,302 | 70.5% | ||||||||||||||||||||||||||||
2 | Baa | 77,066 | 22.5% | 78,837 | 22.3% | 78,531 | 22.4% | 80,882 | 22.8% | 83,515 | 22.8% | |||||||||||||||||||||||||||||||||
3 | Ba | 15,266 | 4.5% | 15,348 | 4.3% | 14,375 | 4.1% | 14,618 | 4.1% | 14,848 | 4.1% | |||||||||||||||||||||||||||||||||
4 | B | 8,489 | 2.5% | 7,844 | 2.2% | 8,849 | 2.5% | 9,051 | 2.6% | 8,503 | 2.3% | |||||||||||||||||||||||||||||||||
5 | Caa and lower | 1,103 | 0.3% | 1,157 | 0.3% | 1,668 | 0.5% | 1,334 | 0.4% | 1,121 | 0.3% | |||||||||||||||||||||||||||||||||
6 | In or near default | 59 | 0.0% | 145 | 0.1% | 62 | 0.0% | 22 | 0.0% | 50 | 0.0% | |||||||||||||||||||||||||||||||||
Total fixed maturity securities available-for-sale (1) | $ | 341,744 | 100.0% | $ | 353,927 | 100.0% | $ | 350,271 | 100.0% | $ | 354,451 | 100.0% | $ | 366,339 | 100.0% | |||||||||||||||||||||||||||||
(1) 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
|
|
June 30, 2011 | September 30, 2011 | December 31, 2011 | March 31, 2012 | June 30, 2012 | ||||||||||||||||||||||||||||||||||||||||
Unaudited (In millions) | ||||||||||||||||||||||||||||||||||||||||||||
Traditional (2), (3) | $ | 5,709 | $ | 5,697 | $ | 5,959 | $ | 6,954 | $ | 7,083 | ||||||||||||||||||||||||||||||||||
Real estate joint ventures and funds | 2,356 | 2,327 | 2,340 | 1,172 | 1,109 | |||||||||||||||||||||||||||||||||||||||
Subtotal | 8,065 | 8,024 | 8,299 | 8,126 | 8,192 | |||||||||||||||||||||||||||||||||||||||
Foreclosed | 169 | 173 | 264 | 346 | 285 | |||||||||||||||||||||||||||||||||||||||
Total Real Estate and Real Estate Joint Ventures | $ | 8,234 | $ | 8,197 | $ | 8,563 | $ | 8,472 | $ | 8,477 | ||||||||||||||||||||||||||||||||||
(2) Includes wholly-owned real estate and operating real estate joint ventures.
(3) Includes real estate held-for-sale and held-for-investment. |
|
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Table of Contents
SUMMARY OF MORTGAGE LOANS (1), (2)
| |||||||||||||||||||||||||||||||||||||||||||||||||||||
Unaudited (In millions) | June 30, 2011 | September 30, 2011 | December 31, 2011 | March 31, 2012 | June 30, 2012 | ||||||||||||||||||||||||||||||||||||||||||||||||
Commercial mortgage loans | $ | 39,050 | $ | 40,120 | $ | 40,440 | $ | 40,329 | $ | 41,035 | |||||||||||||||||||||||||||||||||||||||||||
Agricultural mortgage loans | 12,981 | 12,967 | 13,129 | 12,946 | 12,848 | ||||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgage loans | 2,657 | 3,424 | 689 | 788 | 747 | ||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage loans held-for-sale | 2,805 | 3,740 | 7,526 | 3,664 | 1,481 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total Mortgage Loans | 57,493 | 60,251 | 61,784 | 57,727 | 56,111 | ||||||||||||||||||||||||||||||||||||||||||||||||
Valuation allowances | (566 | ) | (529 | ) | (481 | ) | (446 | ) | (361 | ) | |||||||||||||||||||||||||||||||||||||||||||
Total Mortgage Loans, net | $ | 56,927 | $ | 59,722 | $ | 61,303 | $ | 57,281 | $ | 55,750 | |||||||||||||||||||||||||||||||||||||||||||
(1) Excludes the effects of securitized reverse residential mortgage loans which have been sold, but do not qualify for de-recognition. See Page 33, note 3 for the amount excluded for each period presented.
(2) Excludes the effects of consolidating under GAAP certain VIEs that are treated as CSEs. See Page 33, note 3 for the amount excluded for each period presented.
SUMMARY OF COMMERCIAL MORTGAGE LOANS BY REGION AND PROPERTY TYPE
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2011 | September 30, 2011 | December 31, 2011 | March 31, 2012 | June 30, 2012 | |||||||||||||||||||||||||||||||||||||||||||||||||
Unaudited (In millions) | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | |||||||||||||||||||||||||||||||||||||||||||
South Atlantic | $ | 8,323 | 21.3% | $ | 8,591 | 21.4% | $ | 9,022 | 22.3% | $ | 8,968 | 22.2% | $ | 8,966 | 21.9% | ||||||||||||||||||||||||||||||||||||||
Pacific | 7,801 | 20.0% | 8,195 | 20.4% | 8,209 | 20.3% | 8,015 | 19.9% | 7,973 | 19.4% | |||||||||||||||||||||||||||||||||||||||||||
Middle Atlantic | 5,873 | 15.0% | 6,535 | 16.3% | 6,370 | 15.8% | 6,288 | 15.6% | 6,412 | 15.6% | |||||||||||||||||||||||||||||||||||||||||||
International | 4,518 | 11.6% | 4,540 | 11.3% | 4,713 | 11.7% | 4,839 | 12.0% | 4,955 | 12.1% | |||||||||||||||||||||||||||||||||||||||||||
West South Central | 3,019 | 7.7% | 3,145 | 7.9% | 3,220 | 8.0% | 3,289 | 8.1% | 3,492 | 8.5% | |||||||||||||||||||||||||||||||||||||||||||
East North Central | 3,111 | 8.0% | 3,101 | 7.7% | 2,984 | 7.3% | 2,936 | 7.3% | 3,110 | 7.6% | |||||||||||||||||||||||||||||||||||||||||||
New England | 1,510 | 3.9% | 1,491 | 3.7% | 1,563 | 3.9% | 1,572 | 3.9% | 1,553 | 3.8% | |||||||||||||||||||||||||||||||||||||||||||
Mountain | 838 | 2.1% | 823 | 2.1% | 746 | 1.8% | 810 | 2.0% | 992 | 2.4% | |||||||||||||||||||||||||||||||||||||||||||
East South Central | 467 | 1.2% | 454 | 1.1% | 487 | 1.2% | 483 | 1.2% | 460 | 1.1% | |||||||||||||||||||||||||||||||||||||||||||
West North Central | 628 | 1.6% | 511 | 1.3% | 365 | 0.9% | 346 | 0.9% | 338 | 0.8% | |||||||||||||||||||||||||||||||||||||||||||
Multi-Region and Other | 2,962 | 7.6% | 2,734 | 6.8% | 2,761 | 6.8% | 2,783 | 6.9% | 2,784 | 6.8% | |||||||||||||||||||||||||||||||||||||||||||
Total | $ | 39,050 | 100.0% | $ | 40,120 | 100.0% | $ | 40,440 | 100.0% | $ | 40,329 | 100.0% | $ | 41,035 | 100.0% | ||||||||||||||||||||||||||||||||||||||
Office | $ | 17,951 | 46.0% | $ | 19,290 | 48.1% | $ | 18,582 | 45.9% | $ | 18,320 | 45.4% | $ | 18,502 | 45.1% | ||||||||||||||||||||||||||||||||||||||
Retail | 8,901 | 22.8% | 8,564 | 21.3% | 9,524 | 23.6% | 9,545 | 23.7% | 9,669 | 23.6% | |||||||||||||||||||||||||||||||||||||||||||
Apartments | 3,755 | 9.6% | 4,166 | 10.4% | 4,011 | 9.9% | 3,930 | 9.7% | 4,303 | 10.5% | |||||||||||||||||||||||||||||||||||||||||||
Industrial | 3,046 | 7.8% | 3,138 | 7.8% | 3,102 | 7.7% | 3,288 | 8.2% | 3,224 | 7.9% | |||||||||||||||||||||||||||||||||||||||||||
Hotel | 3,135 | 8.0% | 2,982 | 7.4% | 3,114 | 7.7% | 3,136 | 7.8% | 3,181 | 7.7% | |||||||||||||||||||||||||||||||||||||||||||
Other | 2,262 | 5.8% | 1,980 | 5.0% | 2,107 | 5.2% | 2,110 | 5.2% | 2,156 | 5.2% | |||||||||||||||||||||||||||||||||||||||||||
Total | $ | 39,050 | 100.0% | $ | 40,120 | 100.0% | $ | 40,440 | 100.0% | $ | 40,329 | 100.0% | $ | 41,035 | 100.0% |
37
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APPENDIX RECONCILIATION DETAIL
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| |||||||||||||||||||||||||||||||
For the Three Months Ended | For the Year-to-Date Period Ended | |||||||||||||||||||||||||||||||
Unaudited (In millions) | June 30, 2011 | September 30, 2011 | December 31, 2011 | March 31, 2012 | June 30, 2012 | June 30, 2011 | June 30, 2012 | |||||||||||||||||||||||||
Reconciliation to Net Income (Loss) and Financial Statement Line Item Adjustments from GAAP | ||||||||||||||||||||||||||||||||
Operating earnings | $ | 1,238 | $ | 1,026 | $ | 1,278 | $ | 1,493 | $ | 1,457 | $ | 2,586 | $ | 2,950 | ||||||||||||||||||
Adjustments from operating earnings to income (loss) from continuing operations: | ||||||||||||||||||||||||||||||||
Net investment gains (losses) | (155 | ) | (55 | ) | (558 | ) | (110 | ) | (64 | ) | (254 | ) | (174 | ) | ||||||||||||||||||
Net derivative gains (losses) | 352 | 4,196 | 591 | (1,978 | ) | 2,092 | 37 | 114 | ||||||||||||||||||||||||
Premiums -Divested businesses | 24 | 23 | 23 | 22 | 22 | 46 | 44 | |||||||||||||||||||||||||
Universal life and investment-type product policy fees | ||||||||||||||||||||||||||||||||
Unearned revenue adjustments | 1 | 16 | - | (6 | ) | 20 | (2 | ) | 14 | |||||||||||||||||||||||
GMIB fees | 58 | 74 | 66 | 72 | 74 | 116 | 146 | |||||||||||||||||||||||||
Divested businesses | 2 | 2 | 2 | 3 | 4 | 4 | 7 | |||||||||||||||||||||||||
Net investment income | ||||||||||||||||||||||||||||||||
Investment hedge adjustments | (55 | ) | (70 | ) | (85 | ) | (89 | ) | (113 | ) | (94 | ) | (202 | ) | ||||||||||||||||||
Income from discontinued real estate operations | (2 | ) | (3 | ) | (1 | ) | - | (2 | ) | (6 | ) | (2 | ) | |||||||||||||||||||
Joint venture adjustments | - | - | - | - | - | (23 | ) | - | ||||||||||||||||||||||||
Unit-linked contract income | (32 | ) | (824 | ) | (16 | ) | 1,015 | (517 | ) | 387 | 498 | |||||||||||||||||||||
Securitization entities income | 92 | 97 | 43 | 43 | 42 | 184 | 85 | |||||||||||||||||||||||||
Divested businesses | 80 | 82 | 89 | 146 | 122 | 164 | 268 | |||||||||||||||||||||||||
Other revenues | ||||||||||||||||||||||||||||||||
Settlement of foreign currency earnings hedges | 4 | 5 | 4 | 5 | 6 | 3 | 11 | |||||||||||||||||||||||||
Divested businesses | 130 | 198 | 182 | 103 | (77 | ) | 229 | 26 | ||||||||||||||||||||||||
Policyholder benefits and claims and policyholder dividends | ||||||||||||||||||||||||||||||||
PDO adjustments | - | - | - | - | - | - | - | |||||||||||||||||||||||||
Inflation adjustments and pass through adjustments | (197 | ) | (189 | ) | (24 | ) | (98 | ) | (169 | ) | (207 | ) | (267 | ) | ||||||||||||||||||
GMIB costs | (10 | ) | 411 | (448 | ) | (388 | ) | 52 | (155 | ) | (336 | ) | ||||||||||||||||||||
Market value adjustments | (1 | ) | (4 | ) | - | (7 | ) | (2 | ) | (3 | ) | (9 | ) | |||||||||||||||||||
Divested businesses | (15 | ) | (16 | ) | (13 | ) | (15 | ) | (12 | ) | (28 | ) | (27 | ) | ||||||||||||||||||
Interest credited to policyholder account balances | ||||||||||||||||||||||||||||||||
PAB hedge adjustments | (8 | ) | (2 | ) | (1 | ) | (2 | ) | (1 | ) | (16 | ) | (3 | ) | ||||||||||||||||||
Unit-linked contract costs | 77 | 801 | 40 | (1,016 | ) | 509 | (358 | ) | (507 | ) | ||||||||||||||||||||||
Divested businesses | (3 | ) | (3 | ) | (2 | ) | - | (5 | ) | (5 | ) | (5 | ) | |||||||||||||||||||
Capitalization of DAC -Divested businesses | 2 | 3 | 2 | 2 | 2 | 4 | 4 | |||||||||||||||||||||||||
Amortization of DAC and VOBA | ||||||||||||||||||||||||||||||||
Related to NIGL and NDGL | (112 | ) | (426 | ) | (16 | ) | 192 | (257 | ) | (84 | ) | (65 | ) | |||||||||||||||||||
Related to GMIB fees and GMIB costs | (5 | ) | (129 | ) | 90 | 113 | (58 | ) | 26 | 55 | ||||||||||||||||||||||
Related to market value adjustments | - | - | - | - | - | - | - | |||||||||||||||||||||||||
Divested businesses | (1 | ) | (1 | ) | (1 | ) | (1 | ) | (2 | ) | (2 | ) | (3 | ) | ||||||||||||||||||
Amortization of negative VOBA | ||||||||||||||||||||||||||||||||
Related to market value adjustments | 19 | 19 | 17 | 17 | 16 | 38 | 33 | |||||||||||||||||||||||||
Divested businesses | 1 | 1 | 1 | 1 | 1 | 2 | 2 | |||||||||||||||||||||||||
Interest expense on debt | ||||||||||||||||||||||||||||||||
Securitization entities debt expense | (92 | ) | (97 | ) | (43 | ) | (43 | ) | (42 | ) | (184 | ) | (85 | ) | ||||||||||||||||||
Divested businesses | - | - | - | (2 | ) | (1 | ) | - | (3 | ) | ||||||||||||||||||||||
Other expenses | ||||||||||||||||||||||||||||||||
Noncontrolling interest | (9 | ) | (7 | ) | 1 | 24 | 11 | (2 | ) | 35 | ||||||||||||||||||||||
Regulatory implementation costs | (10 | ) | (3 | ) | (9 | ) | (7 | ) | (14 | ) | (11 | ) | (21 | ) | ||||||||||||||||||
Acquisition and integration costs | (126 | ) | (85 | ) | (133 | ) | (75 | ) | (56 | ) | (194 | ) | (131 | ) | ||||||||||||||||||
Divested businesses | (258 | ) | (268 | ) | (310 | ) | (419 | ) | (278 | ) | (489 | ) | (697 | ) | ||||||||||||||||||
Provision for income tax (expense) benefit | 73 | (1,330 | ) | 194 | 871 | (460 | ) | 277 | 411 | |||||||||||||||||||||||
Income (loss) from continuing operations, net of income tax | 1,062 | 3,442 | 963 | (134 | ) | 2,300 | 1,986 | 2,166 | ||||||||||||||||||||||||
Income (loss) from discontinued operations, net of income tax | 31 | 8 | 25 | 14 | 3 | (9 | ) | 17 | ||||||||||||||||||||||||
Net income (loss) | 1,093 | 3,450 | 988 | (120 | ) | 2,303 | 1,977 | 2,183 | ||||||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interest | (7 | ) | (6 | ) | (2 | ) | 24 | 8 | - | 32 | ||||||||||||||||||||||
Net income (loss) attributable to MetLife, Inc. | 1,100 | 3,456 | 990 | (144 | ) | 2,295 | 1,977 | 2,151 | ||||||||||||||||||||||||
Less: Preferred stock dividends | 31 | 30 | 31 | 30 | 31 | 61 | 61 | |||||||||||||||||||||||||
Less: Preferred stock redemption premium | - | - | - | - | - | 146 | - | |||||||||||||||||||||||||
Net income (loss) available to MetLife, Inc.’s common shareholders | $ | 1,069 | $ | 3,426 | $ | 959 | $ | (174 | ) | $ | 2,264 | $ | 1,770 | $ | 2,090 |
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