Exhibit 12.1
MetLife, Inc.
Ratio of Earnings to Fixed Charges
Years Ended December 31, | ||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | ||||||||||||||||
Income (loss) from continuing operations before provision for income tax | $ | 1,442 | $ | 9,184 | $ | 3,729 | $ | (4,618 | ) | $ | 4,936 | |||||||||
Less: Undistributed income (loss) from equity investees | 377 | 180 | 424 | (1,473 | ) | (784 | ) | |||||||||||||
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Adjusted earnings before fixed charges (1) | $ | 1,065 | $ | 9,004 | $ | 3,305 | $ | (3,145 | ) | $ | 5,720 | |||||||||
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Add: Fixed charges | ||||||||||||||||||||
Interest and debt issue costs (2) | 1,389 | 1,666 | 1,565 | 1,083 | 1,157 | |||||||||||||||
Estimated interest component of rent expense | 28 | 34 | 50 | 74 | 46 | |||||||||||||||
Interest credited to bank deposits | 78 | 95 | 137 | 163 | 166 | |||||||||||||||
Interest credited to policyholder account balances | 7,729 | 5,603 | 4,919 | 4,845 | 4,787 | |||||||||||||||
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Total fixed charges | $ | 9,224 | $ | 7,398 | $ | 6,671 | $ | 6,165 | $ | 6,156 | ||||||||||
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Preferred stock dividends (3) | 134 | 385 | 173 | 225 | 181 | |||||||||||||||
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Total fixed charges plus preferred stock dividends | $ | 9,358 | $ | 7,783 | $ | 6,844 | $ | 6,390 | $ | 6,337 | ||||||||||
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Total earnings and fixed charges | $ | 10,289 | $ | 16,402 | $ | 9,976 | $ | 3,020 | $ | 11,876 | ||||||||||
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Ratio of earnings to fixed charges (1) | 1.12 | 2.22 | 1.50 | — | 1.93 | |||||||||||||||
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Total earnings including fixed charges and preferred stock dividends | $ | 10,423 | $ | 16,787 | $ | 10,149 | $ | 3,245 | $ | 12,057 | ||||||||||
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Ratio of earnings to fixed charges and preferred stock dividends (1) | 1.11 | 2.16 | 1.48 | — | 1.90 | |||||||||||||||
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(1) | Earnings were insufficient to cover fixed charges at a 1:1 ratio by $3,145 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 $163 million, $324 million and $411 million related to variable interest entities for the years ended December 2012, 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 1.12 and 1.12, 2.49 and 2.40, 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. |
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