Table of Contents
Exhibit 99.2
Second Quarter
Financial Supplement
June 30, 2015
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METLIFE
As used in this Quarterly Financial Supplement (“QFS”), “MetLife,” “we” and “our” refer to MetLife, Inc., a Delaware corporation incorporated in 1999, its subsidiaries and affiliates.
This 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 (“Divested businesses”). Operating revenues also excludes net investment gains (losses) (“NIGL”) and net derivative gains (losses) (“NDGL”). Operating expenses also excludes goodwill impairments.
The following additional adjustments are made to GAAP revenues, in the line items indicated, in calculating operating revenues: | ||
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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”); | |
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Net investment income: (i) includes amounts for scheduled periodic settlement payments and amortization of premium on derivatives that are hedges of investments or that are used to replicate certain 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 (“Operating 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 | |
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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: | ||
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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 and other pass through adjustments (“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”); | |
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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”); | |
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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; | |
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Amortization of negative VOBA excludes amounts related to Market value adjustments; | |
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Interest expense on debt excludes certain amounts related to securitization entities that are VIEs consolidated under GAAP (“Securitization entities debt expense”); and | |
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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. | |
Operating earnings also excludes the recognition of certain contingent assets and liabilities that could not be recognized at acquisition or adjusted for during the measurement period under GAAP business combination accounting guidance. In addition to the tax impact of the adjustments mentioned above, provision for income tax (expense) benefit also includes the impact related to the timing of certain tax credits, as well as certain tax reforms.
MetLife, Inc.’s tangible common stockholders’ equity is defined as MetLife, Inc.’s common stockholders’ equity, excluding the net unrealized investment gains (losses) and defined benefit plans adjustment components of accumulated other comprehensive income (loss) (“AOCI”) and is also reduced by the impact of goodwill, value of distribution agreements (“VODA”) and value of customer relationships acquired (“VOCRA”), all net of income tax. MetLife, Inc.’s common stockholders’ equity, excluding AOCI other than foreign currency translation adjustments (“FCTA”), is defined as MetLife, Inc.’s common stockholders’ equity, excluding the net unrealized investment gains (losses) and defined benefit plans adjustment components of AOCI, net of income tax.
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, investment portfolio gains (losses) and derivative gains (losses) should not be viewed as substitutes for the following financial measures calculated in accordance with GAAP: GAAP revenues, GAAP expenses, income (loss) from continuing operations, net of income tax, net income (loss) available to MetLife, Inc.’s common shareholders, net income (loss) available to MetLife, Inc.’s common shareholders per diluted common share, net investment gains (losses) and net derivative gains (losses), respectively. MetLife, Inc.’s tangible common stockholders’ equity and MetLife, Inc.’s common stockholders’ equity, excluding AOCI other than FCTA, should not be viewed as substitutes for total MetLife, Inc.’s stockholders’ equity calculated in accordance with GAAP. Reconciliations of these measures to the most directly comparable GAAP measures are included in this QFS, including in the Appendix, and in our earnings news release dated July 29, 2015, for the period ended June 30, 2015, which is available at www.metlife.com.
In addition, the following are return on equity and allocated equity definitions: | ||
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Operating return on MetLife, Inc.’s tangible common stockholders’ equity - operating earnings available to common shareholders, excluding amortization of VODA and VOCRA, net of income tax, divided by MetLife, Inc.’s average tangible common stockholders’ equity. | |
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Operating return on MetLife, Inc.’s common stockholders’ equity, excluding AOCI other than FCTA - operating earnings available to common shareholders divided by MetLife, Inc.’s average common stockholders’ equity, excluding AOCI other than FCTA. | |
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Operating return on MetLife, Inc.’s common stockholders’ equity - operating earnings available to common shareholders divided by MetLife, Inc.’s average common stockholders’ equity. | |
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Operating return on allocated equity - operating earnings available to common shareholders divided by allocated equity. | |
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Operating return on allocated tangible equity - operating earnings available to common shareholders, excluding amortization of VODA and VOCRA, net of income tax, divided by allocated tangible equity. | |
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Return on MetLife, Inc.’s tangible common stockholders’ equity - net income (loss) available to MetLife, Inc.’s common shareholders, excluding goodwill impairment and amortization of VODA and VOCRA, net of income tax, divided by MetLife, Inc.’s average tangible common stockholders’ equity. | |
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Return on MetLife, Inc.’s common stockholders’ equity, excluding AOCI other than FCTA - net income (loss) available to MetLife, Inc.’s common shareholders divided by MetLife, Inc.’s average common stockholders’ equity, excluding AOCI other than FCTA. | |
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Return on MetLife, Inc.’s common stockholders’ equity - net income (loss) available to MetLife, Inc.’s common shareholders divided by MetLife, Inc.’s average common stockholders’ equity. | |
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Return on allocated equity - net income (loss) available to MetLife, Inc.’s common shareholders divided by allocated equity. | |
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Return on allocated tangible equity - net income (loss) available to MetLife, Inc.’s common shareholders, excluding amortization of VODA and VOCRA, net of income tax, divided by allocated tangible equity. | |
Please see Page 11 for information on allocated equity. |
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METLIFE
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For the Three Months Ended | ||||||||||||||||||||
Unaudited (In millions, except per share data) | June 30, 2014 | September 30, 2014 | December 31, 2014 | March 31, 2015 | June 30, 2015 | |||||||||||||||
Operating earnings available to common shareholders | $ | 1,590 | $ | 1,825 | $ | 1,583 | $ | 1,638 | $ | 1,765 | ||||||||||
Preferred stock dividends | 31 | 30 | 31 | 30 | 31 | |||||||||||||||
Operating earnings | 1,621 | 1,855 | 1,614 | 1,668 | 1,796 | |||||||||||||||
Adjustments from operating earnings to income (loss) from continuing operations, net of income tax: | ||||||||||||||||||||
Net investment gains (losses) (1) | (125 | ) | 109 | 230 | 286 | (133 | ) | |||||||||||||
Net derivative gains (losses) | 311 | 478 | 185 | 821 | (912 | ) | ||||||||||||||
Goodwill impairment | - | - | - | - | - | |||||||||||||||
Other adjustments to continuing operations | (475 | ) | (146 | ) | (453 | ) | (310 | ) | (177 | ) | ||||||||||
Provision for income tax (expense) benefit | 44 | (202 | ) | (49 | ) | (302 | ) | 545 | ||||||||||||
Income (loss) from continuing operations, net of income tax | 1,376 | 2,094 | 1,527 | 2,163 | 1,119 | |||||||||||||||
Income (loss) from discontinued operations, net of income tax | - | - | - | - | - | |||||||||||||||
Net income (loss) | 1,376 | 2,094 | 1,527 | 2,163 | 1,119 | |||||||||||||||
Less: Net income (loss) attributable to noncontrolling interests | 10 | - | 6 | 5 | 4 | |||||||||||||||
Net income (loss) attributable to MetLife, Inc. | 1,366 | 2,094 | 1,521 | 2,158 | 1,115 | |||||||||||||||
Less: Preferred stock dividends | 31 | 30 | 31 | 30 | 31 | |||||||||||||||
Less: Preferred stock repurchase premium | - | - | - | - | 42 | |||||||||||||||
Net income (loss) available to MetLife, Inc.’s common shareholders | $ | 1,335 | $ | 2,064 | $ | 1,490 | $ | 2,128 | $ | 1,042 | ||||||||||
Operating earnings available to common shareholders per common share - diluted | $ | 1.39 | $ | 1.60 | $ | 1.38 | $ | 1.44 | $ | 1.56 | ||||||||||
Net investment gains (losses) | (0.11 | ) | 0.10 | 0.20 | 0.25 | (0.12 | ) | |||||||||||||
Net derivative gains (losses) | 0.27 | 0.42 | 0.16 | 0.72 | (0.81 | ) | ||||||||||||||
Goodwill impairment | - | - | - | - | - | |||||||||||||||
Other adjustments to continuing operations | (0.41 | ) | (0.13 | ) | (0.39 | ) | (0.27 | ) | (0.15 | ) | ||||||||||
Provision for income tax (expense) benefit | 0.04 | (0.18 | ) | (0.04 | ) | (0.27 | ) | 0.48 | ||||||||||||
Discontinued operations, net of income tax | - | - | - | - | - | |||||||||||||||
Less: Net income (loss) attributable to noncontrolling interests | 0.01 | - | 0.01 | - | - | |||||||||||||||
Less: Preferred stock repurchase premium | - | - | - | - | 0.04 | |||||||||||||||
Net income (loss) available to MetLife, Inc.’s common shareholders per common share - diluted | $ | 1.17 | $ | 1.81 | $ | 1.30 | $ | 1.87 | $ | 0.92 | ||||||||||
For the Three Months Ended | ||||||||||||||||||||
Unaudited (In millions, except per share data) | June 30, 2014 | September 30, 2014 | December 31, 2014 | March 31, 2015 | June 30, 2015 | |||||||||||||||
Notable items impacting operating earnings available to common shareholders: | ||||||||||||||||||||
Variable investment income, as compared to plan | $ | 11 | $ | 62 | $ | - | $ | - | $ | - | ||||||||||
Catastrophe experience and prior year development, net | (21 | ) | 38 | 16 | (16 | ) | - | |||||||||||||
Actuarial assumption review and other insurance adjustments | 56 | 16 | 5 | - | - | |||||||||||||||
Litigation reserves & settlement costs | - | - | (117 | ) | - | - | ||||||||||||||
Tax adjustments | - | (9 | ) | 27 | - | 61 | ||||||||||||||
Total notable items (2) | $ | 46 | $ | 107 | $ | (69 | ) | $ | (16 | ) | $ | 61 | ||||||||
Notable items impacting operating earnings available to common shareholders per common share - diluted: | ||||||||||||||||||||
Variable investment income, as compared to plan | $ | 0.01 | $ | 0.05 | $ | - | $ | - | $ | - | ||||||||||
Catastrophe experience and prior year development, net | $ | (0.02 | ) | $ | 0.03 | $ | 0.01 | $ | (0.01 | ) | $ | - | ||||||||
Actuarial assumption review and other insurance adjustments | $ | 0.05 | $ | 0.01 | $ | - | $ | - | $ | - | ||||||||||
Litigation reserves & settlement costs | $ | - | $ | - | $ | (0.10 | ) | $ | - | $ | - | |||||||||
Tax adjustments | $ | - | $ | (0.01 | ) | $ | 0.02 | $ | - | $ | 0.05 | |||||||||
Total notable items (2) | $ | 0.04 | $ | 0.09 | $ | (0.06 | ) | $ | (0.01 | ) | $ | 0.05 | ||||||||
For the Three Months Ended | ||||||||||||||||||||
Unaudited (In millions) | June 30, 2014 | September 30, 2014 | December 31, 2014 | March 31, 2015 | June 30, 2015 | |||||||||||||||
Weighted average common shares outstanding - diluted | 1,142.3 | 1,141.0 | 1,147.3 | 1,135.8 | 1,128.4 | |||||||||||||||
(1) The three months ended June 30, 2014 includes a pre-tax net investment loss of $138 million related to the sale of MetLife, Inc.’s wholly-owned subsidiary, MetLife Assurance Limited.
(2) Notable items represent a positive (negative) impact to operating earnings available to common shareholders and operating earnings available to common shareholders per common share - diluted. The per share data for each notable item is calculated on a stand alone basis and may not sum to total notable items. |
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METLIFE CORPORATE OVERVIEW (CONTINUED)
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Unaudited | June 30, 2014 | September 30, 2014 | December 31, 2014 | March 31, 2015 | June 30, 2015 | |||||||||||||||
Book value per common share, excluding AOCI other than FCTA (1) | $ | 48.60 | $ | 49.69 | $ | 49.53 | $ | 50.45 | $ | 50.73 | ||||||||||
Book value per common share - tangible common stockholders’ equity (excludes AOCI other than FCTA) (1) | $ | 38.69 | $ | 39.95 | $ | 40.36 | $ | 41.32 | $ | 41.73 | ||||||||||
Book value per common share (1) | $ | 59.96 | $ | 61.44 | $ | 61.85 | $ | 64.37 | $ | 60.27 | ||||||||||
For the Three Months Ended | ||||||||||||||||||||
Unaudited | June 30, 2014 | September 30, 2014 | December 31, 2014 | March 31, 2015 | June 30, 2015 | |||||||||||||||
Operating return on MetLife, Inc.’s (2): | ||||||||||||||||||||
Common stockholders’ equity, excluding AOCI other than FCTA | 11.7% | 13.2% | 11.3% | 11.7% | 12.5% | |||||||||||||||
Tangible common stockholders’ equity (excludes AOCI other than FCTA) (3) | 14.9% | 16.7% | 14.1% | 14.4% | 15.3% | |||||||||||||||
Common stockholders’ equity | 9.7% | 10.7% | 9.1% | 9.2% | 10.2% | |||||||||||||||
Return on MetLife, Inc.’s (2): | ||||||||||||||||||||
Common stockholders’ equity, excluding AOCI other than FCTA | 9.9% | 15.0% | 10.7% | 15.2% | 7.4% | |||||||||||||||
Tangible common stockholders’ equity (excludes AOCI other than FCTA) (3) | 12.5% | 18.8% | 13.3% | 18.7% | 9.1% | |||||||||||||||
Common stockholders’ equity | 8.1% | 12.1% | 8.6% | 12.0% | 6.0% | |||||||||||||||
For the Three Months Ended | ||||||||||||||||||||
Unaudited (In millions) | June 30, 2014 | September 30, 2014 | December 31, 2014 | March 31, 2015 | June 30, 2015 | |||||||||||||||
Common shares outstanding, beginning of period | 1,124.8 | 1,126.6 | 1,119.1 | 1,131.9 | 1,114.3 | |||||||||||||||
Share repurchases (4) | - | (8.1 | ) | (10.7 | ) | (19.9 | ) | (0.2 | ) | |||||||||||
Newly issued shares | 1.8 | 0.6 | 23.5 | 2.3 | 2.7 | |||||||||||||||
Common shares outstanding, end of period | 1,126.6 | 1,119.1 | 1,131.9 | 1,114.3 | 1,116.8 | |||||||||||||||
Weighted average common shares outstanding - basic | 1,128.0 | 1,125.1 | 1,135.8 | 1,125.7 | 1,117.8 | |||||||||||||||
Dilutive effect of stock purchase contracts underlying common equity units | 3.8 | 4.6 | - | - | - | |||||||||||||||
Dilutive effect of the exercise or issuance of stock-based awards | 10.5 | 11.3 | 11.5 | 10.1 | 10.6 | |||||||||||||||
Weighted average common shares outstanding - diluted | 1,142.3 | 1,141.0 | 1,147.3 | 1,135.8 | 1,128.4 | |||||||||||||||
MetLife Policyholder Trust Shares | 185.7 | 183.6 | 180.5 | 178.3 | 175.0 | |||||||||||||||
(1) Calculated using common shares outstanding, end of period.
(2) Annualized using quarter-to-date results. See page A-4 for the operating return on MetLife, Inc.’s common stockholders’ equity and return on MetLife, Inc.’s common stockholders’ equity for the year ended December 31, 2014.
(3) Operating earnings available to common shareholders and net income available to common shareholders, used to calculate returns on tangible equity, exclude the impact of amortization of VODA and VOCRA, net of income tax.
(4) For the three months ended June 30, 2014, the number of shares repurchased was less than 100,000 shares. |
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METLIFE
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Unaudited (In millions) | June 30, 2014 | September 30, 2014 | December 31, 2014 | March 31, 2015 | June 30, 2015 | |||||||||||||||
ASSETS | ||||||||||||||||||||
Investments: | ||||||||||||||||||||
Fixed maturity securities available-for-sale, at estimated fair value | $ | 367,056 | $ | 368,070 | $ | 365,425 | $ | 366,275 | $ | 351,353 | ||||||||||
Equity securities available-for-sale, at estimated fair value | 3,863 | 3,689 | 3,631 | 3,713 | 3,677 | |||||||||||||||
Fair value option and trading securities, at estimated fair value (1) | 17,831 | 17,246 | 16,689 | 16,471 | 16,460 | |||||||||||||||
Mortgage loans | 57,223 | 58,038 | 60,118 | 62,409 | 64,010 | |||||||||||||||
Policy loans | 11,785 | 11,756 | 11,618 | 11,606 | 11,575 | |||||||||||||||
Real estate and real estate joint ventures | 10,101 | 10,393 | 10,525 | 10,310 | 10,207 | |||||||||||||||
Other limited partnership interests | 7,964 | 8,214 | 8,085 | 8,074 | 8,099 | |||||||||||||||
Short-term investments, principally at estimated fair value | 12,366 | 12,240 | 8,621 | 14,130 | 14,594 | |||||||||||||||
Other invested assets, principally at estimated fair value | 17,116 | 17,905 | 21,283 | 23,763 | 20,409 | |||||||||||||||
Total investments | 505,305 | 507,551 | 505,995 | 516,751 | 500,384 | |||||||||||||||
Cash and cash equivalents, principally at estimated fair value (1) | 7,393 | 8,783 | 10,808 | 8,127 | 8,074 | |||||||||||||||
Accrued investment income | 4,234 | 4,380 | 4,120 | 4,298 | 3,990 | |||||||||||||||
Premiums, reinsurance and other receivables | 23,730 | 23,814 | 22,244 | 24,190 | 24,872 | |||||||||||||||
Deferred policy acquisition costs and value of business acquired | 25,915 | 25,503 | 24,442 | 24,003 | 24,379 | |||||||||||||||
Goodwill | 10,430 | 10,216 | 9,872 | 9,717 | 9,644 | |||||||||||||||
Other assets | 9,136 | 8,900 | 7,862 | 7,980 | 7,589 | |||||||||||||||
Separate account assets | 324,977 | 319,480 | 316,994 | 324,724 | 319,477 | |||||||||||||||
Total assets | $ | 911,120 | $ | 908,627 | $ | 902,337 | $ | 919,790 | $ | 898,409 | ||||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||
Liabilities | ||||||||||||||||||||
Future policy benefits | $ | 189,675 | $ | 189,282 | $ | 189,586 | $ | 191,217 | $ | 188,928 | ||||||||||
Policyholder account balances | 213,799 | 215,226 | 209,294 | 206,591 | 204,262 | |||||||||||||||
Other policy-related balances | 15,361 | 15,026 | 14,422 | 14,586 | 14,393 | |||||||||||||||
Policyholder dividends payable | 682 | 710 | 684 | 677 | 699 | |||||||||||||||
Policyholder dividend obligation | 2,986 | 2,825 | 3,155 | 3,483 | 2,328 | |||||||||||||||
Payables for collateral under securities loaned and other transactions | 33,187 | 33,776 | 35,326 | 37,312 | 35,532 | |||||||||||||||
Short-term debt | 100 | 100 | 100 | 100 | 100 | |||||||||||||||
Long-term debt (1) | 16,783 | 16,389 | 16,286 | 17,714 | 16,770 | |||||||||||||||
Collateral financing arrangements | 4,196 | 4,196 | 4,196 | 4,196 | 4,164 | |||||||||||||||
Junior subordinated debt securities | 3,193 | 3,193 | 3,193 | 3,193 | 3,193 | |||||||||||||||
Current income tax payable | 232 | 293 | 184 | 243 | 71 | |||||||||||||||
Deferred income tax liability | 10,453 | 11,357 | 11,821 | 13,305 | 10,762 | |||||||||||||||
Other liabilities | 25,214 | 25,373 | 24,437 | 28,040 | 27,741 | |||||||||||||||
Separate account liabilities | 324,977 | 319,480 | 316,994 | 324,724 | 319,477 | |||||||||||||||
Total liabilities | 840,838 | 837,226 | 829,678 | 845,381 | 828,420 | |||||||||||||||
Redeemable noncontrolling interests in partially-owned consolidated subsidiaries | 108 | 102 | 99 | 95 | 92 | |||||||||||||||
Equity | ||||||||||||||||||||
Preferred stock, at par value | 1 | 1 | 1 | 1 | - | |||||||||||||||
Common stock, at par value | 11 | 11 | 12 | 12 | 12 | |||||||||||||||
Additional paid-in capital | 29,438 | 29,488 | 30,543 | 30,632 | 30,718 | |||||||||||||||
Retained earnings | 29,259 | 30,928 | 32,020 | 33,754 | 34,376 | |||||||||||||||
Treasury stock, at cost | (176 | ) | (615 | ) | (1,172 | ) | (2,158 | ) | (2,172 | ) | ||||||||||
Accumulated other comprehensive income (loss) | 11,058 | 10,992 | 10,649 | 11,529 | 6,443 | |||||||||||||||
Total MetLife, Inc.’s stockholders’ equity | 69,591 | 70,805 | 72,053 | 73,770 | 69,377 | |||||||||||||||
Noncontrolling interests | 583 | 494 | 507 | 544 | 520 | |||||||||||||||
Total equity | 70,174 | 71,299 | 72,560 | 74,314 | 69,897 | |||||||||||||||
Total liabilities and equity | $ | 911,120 | $ | 908,627 | $ | 902,337 | $ | 919,790 | $ | 898,409 | ||||||||||
(1) At June 30, 2014, September 30, 2014, December 31, 2014, March 31, 2015 and June 30, 2015, $656 million, $331 million, $295 million, $287 million and $280 million, respectively, of assets and $505 million, $186 million, $151 million, $143 million and $134 million, respectively, of liabilities related to certain securitization entities that are required to be consolidated under GAAP are included. See Pages 31 and 32, note 3, for the amounts by asset category. |
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METLIFE CONSOLIDATING STATEMENT OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
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For the Three Months Ended June 30, 2014 | ||||||||||||||||||||
Unaudited (In millions) | Consolidated | Americas | Asia | EMEA | Corporate & Other | |||||||||||||||
OPERATING REVENUES | ||||||||||||||||||||
Premiums | $ | 9,853 | $ | 7,334 | $ | 1,913 | $ | 584 | $ | 22 | ||||||||||
Universal life and investment-type product policy fees | 2,360 | 1,809 | 400 | 117 | 34 | |||||||||||||||
Net investment income | 5,095 | 4,126 | 724 | 112 | 133 | |||||||||||||||
Other revenues | 493 | 453 | 24 | 11 | 5 | |||||||||||||||
Total operating revenues | 17,801 | 13,722 | 3,061 | 824 | 194 | |||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||
Policyholder benefits and claims and policyholder dividends | 9,964 | 8,249 | 1,425 | 271 | 19 | |||||||||||||||
Interest credited to policyholder account balances | 1,425 | 987 | 394 | 35 | 9 | |||||||||||||||
Capitalization of DAC | (1,031 | ) | (404 | ) | (457 | ) | (170 | ) | - | |||||||||||
Amortization of DAC and VOBA | 1,025 | 503 | 362 | 160 | - | |||||||||||||||
Amortization of negative VOBA | (99 | ) | (1 | ) | (92 | ) | (6 | ) | - | |||||||||||
Interest expense on debt | 299 | 2 | - | - | 297 | |||||||||||||||
Other expenses | 3,979 | 2,384 | 977 | 456 | 162 | |||||||||||||||
Total operating expenses | 15,562 | 11,720 | 2,609 | 746 | 487 | |||||||||||||||
Operating earnings before provision for income tax | 2,239 | 2,002 | 452 | 78 | (293 | ) | ||||||||||||||
Provision for income tax expense (benefit) | 618 | 617 | 128 | 6 | (133 | ) | ||||||||||||||
Operating earnings | 1,621 | 1,385 | 324 | 72 | (160 | ) | ||||||||||||||
Preferred stock dividends | 31 | - | - | - | 31 | |||||||||||||||
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS | $ | 1,590 | $ | 1,385 | $ | 324 | $ | 72 | $ | (191 | ) | |||||||||
Reconciliation to Net Income (Loss) and Financial Statement Line Item Adjustments from GAAP | ||||||||||||||||||||
Operating earnings | $ | 1,621 | $ | 1,385 | $ | 324 | $ | 72 | $ | (160 | ) | |||||||||
Adjustments from operating earnings to income (loss) from continuing operations, net of income tax: | ||||||||||||||||||||
Net investment gains (losses) (1) | (125 | ) | (189 | ) | 82 | 2 | (20 | ) | ||||||||||||
Net derivative gains (losses) | 311 | 429 | (35 | ) | 49 | (132 | ) | |||||||||||||
Premiums | 20 | 2 | - | 18 | - | |||||||||||||||
Universal life and investment-type product policy fees | 98 | 93 | 1 | 4 | - | |||||||||||||||
Net investment income | 164 | (126 | ) | 2 | 273 | 15 | ||||||||||||||
Other revenues | (3 | ) | 1 | (4 | ) | - | - | |||||||||||||
Policyholder benefits and claims and policyholder dividends | (421 | ) | (387 | ) | (26 | ) | (8 | ) | - | |||||||||||
Interest credited to policyholder account balances | (284 | ) | (32 | ) | 2 | (254 | ) | - | ||||||||||||
Capitalization of DAC | 1 | - | - | 1 | - | |||||||||||||||
Amortization of DAC and VOBA | (37 | ) | (37 | ) | 3 | (3 | ) | - | ||||||||||||
Amortization of negative VOBA | 12 | - | 12 | - | - | |||||||||||||||
Interest expense on debt | (13 | ) | - | - | - | (13 | ) | |||||||||||||
Other expenses | (12 | ) | 2 | 4 | - | (18 | ) | |||||||||||||
Goodwill impairment | - | - | - | - | - | |||||||||||||||
Provision for income tax (expense) benefit | 44 | 62 | (27 | ) | (38 | ) | 47 | |||||||||||||
Income (loss) from continuing operations, net of income tax | 1,376 | 1,203 | 338 | 116 | (281 | ) | ||||||||||||||
Income (loss) from discontinued operations, net of income tax | - | - | - | - | - | |||||||||||||||
Net income (loss) | 1,376 | 1,203 | 338 | 116 | (281 | ) | ||||||||||||||
Less: Net income (loss) attributable to noncontrolling interests | 10 | 4 | 4 | 1 | 1 | |||||||||||||||
Net income (loss) attributable to MetLife, Inc. | 1,366 | 1,199 | 334 | 115 | (282 | ) | ||||||||||||||
Less: Preferred stock dividends | 31 | - | - | - | 31 | |||||||||||||||
Less: Preferred stock repurchase premium | - | - | - | - | - | |||||||||||||||
Net income (loss) available to MetLife, Inc.’s common shareholders | $ | 1,335 | $ | 1,199 | $ | 334 | $ | 115 | $ | (313 | ) | |||||||||
Total Operating Premiums, Fees and Other Revenues | $ | 12,706 | $ | 9,596 | $ | 2,337 | $ | 712 | $ | 61 | ||||||||||
(1) Consolidated and Americas results include a pre-tax net investment loss of $138 million related to the sale of MetLife, Inc.’s wholly-owned subsidiary, MetLife Assurance Limited. |
|
8
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METLIFE CONSOLIDATING STATEMENT OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
|
| |||||||||||||||||||
For the Year-to-Date Period Ended June 30, 2015 | ||||||||||||||||||||
Unaudited (In millions) | Consolidated | Americas | Asia | EMEA | Corporate & Other | |||||||||||||||
OPERATING REVENUES | ||||||||||||||||||||
Premiums | $ | 18,566 | $ | 13,936 | $ | 3,561 | $ | 1,033 | $ | 36 | ||||||||||
Universal life and investment-type product policy fees | 4,629 | 3,567 | 797 | 216 | 49 | |||||||||||||||
Net investment income | 10,167 | 8,399 | 1,363 | 167 | 238 | |||||||||||||||
Other revenues | 1,030 | 906 | 56 | 29 | 39 | |||||||||||||||
Total operating revenues | 34,392 | 26,808 | 5,777 | 1,445 | 362 | |||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||
Policyholder benefits and claims and policyholder dividends | 18,950 | 15,711 | 2,715 | 504 | 20 | |||||||||||||||
Interest credited to policyholder account balances | 2,673 | 1,930 | 665 | 64 | 14 | |||||||||||||||
Capitalization of DAC | (1,895 | ) | (797 | ) | (833 | ) | (265 | ) | - | |||||||||||
Amortization of DAC and VOBA | 1,954 | 1,030 | 662 | 261 | 1 | |||||||||||||||
Amortization of negative VOBA | (173 | ) | (1 | ) | (164 | ) | (8 | ) | - | |||||||||||
Interest expense on debt | 604 | 1 | - | - | 603 | |||||||||||||||
Other expenses | 7,682 | 4,839 | 1,773 | 751 | 319 | |||||||||||||||
Total operating expenses | 29,795 | 22,713 | 4,818 | 1,307 | 957 | |||||||||||||||
Operating earnings before provision for income tax | 4,597 | 4,095 | 959 | 138 | (595 | ) | ||||||||||||||
Provision for income tax expense (benefit) | 1,133 | 1,271 | 207 | 18 | (363 | ) | ||||||||||||||
Operating earnings | 3,464 | 2,824 | 752 | 120 | (232 | ) | ||||||||||||||
Preferred stock dividends | 61 | - | - | - | 61 | |||||||||||||||
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS | $ | 3,403 | $ | 2,824 | $ | 752 | $ | 120 | $ | (293 | ) | |||||||||
Reconciliation to Net Income (Loss) and Financial Statement Line Item Adjustments from GAAP | ||||||||||||||||||||
Operating earnings | $ | 3,464 | $ | 2,824 | $ | 752 | $ | 120 | $ | (232 | ) | |||||||||
Adjustments from operating earnings to income (loss) from continuing operations, net of income tax: | ||||||||||||||||||||
Net investment gains (losses) | 153 | 260 | 125 | 8 | (240 | ) | ||||||||||||||
Net derivative gains (losses) | (91 | ) | 69 | 27 | 14 | (201 | ) | |||||||||||||
Premiums | (1 | ) | (1 | ) | - | - | - | |||||||||||||
Universal life and investment-type product policy fees | 199 | 191 | 10 | (2 | ) | - | ||||||||||||||
Net investment income | 241 | (351 | ) | 302 | 282 | 8 | ||||||||||||||
Other revenues | (17 | ) | - | (17 | ) | - | - | |||||||||||||
Policyholder benefits and claims and policyholder dividends | (329 | ) | (236 | ) | (93 | ) | - | - | ||||||||||||
Interest credited to policyholder account balances | (620 | ) | (38 | ) | (306 | ) | (276 | ) | - | |||||||||||
Capitalization of DAC | - | - | - | - | - | |||||||||||||||
Amortization of DAC and VOBA | 32 | 37 | (7 | ) | 2 | - | ||||||||||||||
Amortization of negative VOBA | 19 | - | 19 | - | - | |||||||||||||||
Interest expense on debt | (2 | ) | - | - | - | (2 | ) | |||||||||||||
Other expenses | (9 | ) | 6 | - | 1 | (16 | ) | |||||||||||||
Goodwill impairment | - | - | - | - | - | |||||||||||||||
Provision for income tax (expense) benefit | 243 | 16 | 101 | (19 | ) | 145 | ||||||||||||||
Income (loss) from continuing operations, net of income tax | 3,282 | 2,777 | 913 | 130 | (538 | ) | ||||||||||||||
Income (loss) from discontinued operations, net of income tax | - | - | - | - | - | |||||||||||||||
Net income (loss) | 3,282 | 2,777 | 913 | 130 | (538 | ) | ||||||||||||||
Less: Net income (loss) attributable to noncontrolling interests | 9 | 6 | 1 | 1 | 1 | |||||||||||||||
Net income (loss) attributable to MetLife, Inc. | 3,273 | 2,771 | 912 | 129 | (539 | ) | ||||||||||||||
Less: Preferred stock dividends | 61 | - | - | - | 61 | |||||||||||||||
Less: Preferred stock repurchase premium | 42 | - | - | - | 42 | |||||||||||||||
Net income (loss) available to MetLife, Inc.’s common shareholders | $ | 3,170 | $ | 2,771 | $ | 912 | $ | 129 | $ | (642 | ) | |||||||||
Total Operating Premiums, Fees and Other Revenues | $ | 24,225 | $ | 18,409 | $ | 4,414 | $ | 1,278 | $ | 124 |
9
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METLIFE CONSOLIDATING STATEMENT OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
|
| |||||||||||||||||||
For the Year-to-Date Period Ended June 30, 2014 | ||||||||||||||||||||
Unaudited (In millions) | Consolidated | Americas | Asia | EMEA | Corporate & Other | |||||||||||||||
OPERATING REVENUES | ||||||||||||||||||||
Premiums | $ | 19,070 | $ | 14,044 | $ | 3,803 | $ | 1,181 | $ | 42 | ||||||||||
Universal life and investment-type product policy fees | 4,683 | 3,601 | 789 | 226 | 67 | |||||||||||||||
Net investment income | 10,180 | 8,255 | 1,424 | 219 | 282 | |||||||||||||||
Other revenues | 984 | 880 | 51 | 27 | 26 | |||||||||||||||
Total operating revenues | 34,917 | 26,780 | 6,067 | 1,653 | 417 | |||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||
Policyholder benefits and claims and policyholder dividends | 19,337 | 15,941 | 2,822 | 532 | 42 | |||||||||||||||
Interest credited to policyholder account balances | 2,826 | 1,958 | 781 | 69 | 18 | |||||||||||||||
Capitalization of DAC | (2,077 | ) | (780 | ) | (951 | ) | (346 | ) | - | |||||||||||
Amortization of DAC and VOBA | 2,075 | 1,051 | 700 | 324 | - | |||||||||||||||
Amortization of negative VOBA | (202 | ) | (1 | ) | (186 | ) | (15 | ) | - | |||||||||||
Interest expense on debt | 593 | 4 | - | - | 589 | |||||||||||||||
Other expenses | 7,930 | 4,705 | 1,968 | 920 | 337 | |||||||||||||||
Total operating expenses | 30,482 | 22,878 | 5,134 | 1,484 | 986 | |||||||||||||||
Operating earnings before provision for income tax | 4,435 | 3,902 | 933 | 169 | (569 | ) | ||||||||||||||
Provision for income tax expense (benefit) | 1,222 | 1,193 | 276 | 26 | (273 | ) | ||||||||||||||
Operating earnings | 3,213 | 2,709 | 657 | 143 | (296 | ) | ||||||||||||||
Preferred stock dividends | 61 | - | - | - | 61 | |||||||||||||||
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS | $ | 3,152 | $ | 2,709 | $ | 657 | $ | 143 | $ | (357 | ) | |||||||||
Reconciliation to Net Income (Loss) and Financial Statement Line Item Adjustments from GAAP | ||||||||||||||||||||
Operating earnings | $ | 3,213 | $ | 2,709 | $ | 657 | $ | 143 | $ | (296 | ) | |||||||||
Adjustments from operating earnings to income (loss) from continuing operations, net of income tax: | ||||||||||||||||||||
Net investment gains (losses) (1) | (536 | ) | (706 | ) | 239 | (7 | ) | (62 | ) | |||||||||||
Net derivative gains (losses) | 654 | 715 | (42 | ) | 87 | (106 | ) | |||||||||||||
Premiums | 22 | 1 | - | 21 | - | |||||||||||||||
Universal life and investment-type product policy fees | 196 | 188 | 1 | 7 | - | |||||||||||||||
Net investment income | 114 | (239 | ) | (33 | ) | 360 | 26 | |||||||||||||
Other revenues | (16 | ) | 1 | (17 | ) | - | - | |||||||||||||
Policyholder benefits and claims and policyholder dividends | (675 | ) | (621 | ) | (44 | ) | (10 | ) | - | |||||||||||
Interest credited to policyholder account balances | (352 | ) | (49 | ) | 37 | (340 | ) | - | ||||||||||||
Capitalization of DAC | 1 | - | - | 1 | - | |||||||||||||||
Amortization of DAC and VOBA | (45 | ) | (42 | ) | 4 | (7 | ) | - | ||||||||||||
Amortization of negative VOBA | 24 | - | 24 | - | - | |||||||||||||||
Interest expense on debt | (31 | ) | - | - | - | (31 | ) | |||||||||||||
Other expenses | (15 | ) | 2 | 10 | (2 | ) | (25 | ) | ||||||||||||
Goodwill impairment | - | - | - | - | - | |||||||||||||||
Provision for income tax (expense) benefit | 164 | 231 | (68 | ) | (51 | ) | 52 | |||||||||||||
Income (loss) from continuing operations, net of income tax | 2,718 | 2,190 | 768 | 202 | (442 | ) | ||||||||||||||
Income (loss) from discontinued operations, net of income tax | (3 | ) | (3 | ) | - | - | - | |||||||||||||
Net income (loss) | 2,715 | 2,187 | 768 | 202 | (442 | ) | ||||||||||||||
Less: Net income (loss) attributable to noncontrolling interests | 21 | 9 | 10 | 1 | 1 | |||||||||||||||
Net income (loss) attributable to MetLife, Inc. | 2,694 | 2,178 | 758 | 201 | (443 | ) | ||||||||||||||
Less: Preferred stock dividends | 61 | - | - | - | 61 | |||||||||||||||
Less: Preferred stock repurchase premium | - | - | - | - | - | |||||||||||||||
Net income (loss) available to MetLife, Inc.’s common shareholders | $ | 2,633 | $ | 2,178 | $ | 758 | $ | 201 | $ | (504 | ) | |||||||||
Total Operating Premiums, Fees and Other Revenues | $ | 24,737 | $ | 18,525 | $ | 4,643 | $ | 1,434 | $ | 135 | ||||||||||
(1) Consolidated and Americas results include a pre-tax net investment loss of $633 million related to the sale of MetLife, Inc.’s wholly-owned subsidiary, MetLife Assurance Limited. |
|
10
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11
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12
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AMERICAS RETAIL - LIFE & OTHER STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
|
| |||||||||||||||||||||||||||||
For the Three Months Ended | For the Year-to-Date Period Ended | |||||||||||||||||||||||||||||
Unaudited (In millions) | June 30, 2014 | September 30, 2014 | December 31, 2014 | March 31, 2015 | June 30, 2015 | June 30, 2014 | June 30, 2015 | |||||||||||||||||||||||
OPERATING REVENUES | ||||||||||||||||||||||||||||||
Premiums | $ | 1,508 | $ | 1,521 | $ | 1,627 | $ | 1,494 | $ | 1,522 | $ | 2,994 | $ | 3,016 | ||||||||||||||||
Universal life and investment-type product policy fees | 394 | 434 | 402 | 392 | 384 | 794 | 776 | |||||||||||||||||||||||
Net investment income | 1,222 | 1,247 | 1,263 | 1,245 | 1,275 | 2,471 | 2,520 | |||||||||||||||||||||||
Other revenues | 154 | 165 | 166 | 144 | 153 | 291 | 297 | |||||||||||||||||||||||
Total operating revenues | 3,278 | 3,367 | 3,458 | 3,275 | 3,334 | 6,550 | 6,609 | |||||||||||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||||||||
Policyholder benefits and claims and policyholder dividends | 1,991 | 1,974 | 2,055 | 2,070 | 2,016 | 4,023 | 4,086 | |||||||||||||||||||||||
Interest credited to policyholder account balances | 226 | 230 | 229 | 227 | 230 | 445 | 457 | |||||||||||||||||||||||
Capitalization of DAC | (168 | ) | (158 | ) | (163 | ) | (158 | ) | (159 | ) | (313 | ) | (317 | ) | ||||||||||||||||
Amortization of DAC and VOBA | 196 | 164 | 193 | 210 | 205 | 397 | 415 | |||||||||||||||||||||||
Amortization of negative VOBA | - | - | - | - | - | - | - | |||||||||||||||||||||||
Interest expense on debt | (1 | ) | (1 | ) | 1 | (1 | ) | (1 | ) | (1 | ) | (2 | ) | |||||||||||||||||
Other expenses | 646 | 621 | 648 | 632 | 634 | 1,233 | 1,266 | |||||||||||||||||||||||
Total operating expenses | 2,890 | 2,830 | 2,963 | 2,980 | 2,925 | 5,784 | 5,905 | |||||||||||||||||||||||
Operating earnings before provision for income tax | 388 | 537 | 495 | 295 | 409 | 766 | 704 | |||||||||||||||||||||||
Provision for income tax expense (benefit) | 122 | 172 | 162 | 92 | 131 | 245 | 223 | |||||||||||||||||||||||
Operating earnings | 266 | 365 | 333 | 203 | 278 | 521 | 481 | |||||||||||||||||||||||
Preferred stock dividends | - | - | - | - | - | - | - | |||||||||||||||||||||||
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS | $ | 266 | $ | 365 | $ | 333 | $ | 203 | $ | 278 | $ | 521 | $ | 481 | ||||||||||||||||
Reconciliation to Net Income (Loss) and Financial Statement Line Item Adjustments from GAAP | ||||||||||||||||||||||||||||||
Operating earnings | $ | 266 | $ | 365 | $ | 333 | $ | 203 | $ | 278 | $ | 521 | $ | 481 | ||||||||||||||||
Adjustments from operating earnings to income (loss) from continuing operations, net of income tax: | ||||||||||||||||||||||||||||||
Net investment gains (losses) | 1 | (9 | ) | (35 | ) | 1 | 19 | (13 | ) | 20 | ||||||||||||||||||||
Net derivative gains (losses) | 6 | 98 | 119 | 186 | (110 | ) | 75 | 76 | ||||||||||||||||||||||
Premiums | - | - | - | - | - | - | - | |||||||||||||||||||||||
Universal life and investment-type product policy fees | (1 | ) | - | - | - | (1 | ) | (1 | ) | (1 | ) | |||||||||||||||||||
Net investment income | (54 | ) | (56 | ) | (57 | ) | (60 | ) | (59 | ) | (109 | ) | (119 | ) | ||||||||||||||||
Other revenues | - | - | - | - | - | - | - | |||||||||||||||||||||||
Policyholder benefits and claims and policyholder dividends | - | - | 6 | 17 | (10 | ) | - | 7 | ||||||||||||||||||||||
Interest credited to policyholder account balances | - | - | - | - | - | - | - | |||||||||||||||||||||||
Capitalization of DAC | - | - | - | - | - | - | - | |||||||||||||||||||||||
Amortization of DAC and VOBA | (11 | ) | 68 | (19 | ) | (19 | ) | 24 | (27 | ) | 5 | |||||||||||||||||||
Amortization of negative VOBA | - | - | - | - | - | - | - | |||||||||||||||||||||||
Interest expense on debt | - | - | - | - | - | - | - | |||||||||||||||||||||||
Other expenses | - | - | - | - | - | - | - | |||||||||||||||||||||||
Goodwill impairment | - | - | - | - | - | - | - | |||||||||||||||||||||||
Provision for income tax (expense) benefit | 21 | (36 | ) | (2 | ) | (44 | ) | 48 | 27 | 4 | ||||||||||||||||||||
Income (loss) from continuing operations, net of income tax | 228 | 430 | 345 | 284 | 189 | 473 | 473 | |||||||||||||||||||||||
Income (loss) from discontinued operations, net of income tax | - | - | - | - | - | (2 | ) | - | ||||||||||||||||||||||
Net income (loss) | 228 | 430 | 345 | 284 | 189 | 471 | 473 | |||||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interests | - | - | - | - | - | - | - | |||||||||||||||||||||||
Net income (loss) attributable to MetLife, Inc. | 228 | 430 | 345 | 284 | 189 | 471 | 473 | |||||||||||||||||||||||
Less: Preferred stock dividends | - | - | - | - | - | - | - | |||||||||||||||||||||||
Less: Preferred stock repurchase premium | - | - | - | - | - | - | - | |||||||||||||||||||||||
Net income (loss) available to MetLife, Inc.’s common shareholders | $ | 228 | $ | 430 | $ | 345 | $ | 284 | $ | 189 | $ | 471 | $ | 473 | ||||||||||||||||
Total Operating Premiums, Fees and Other Revenues | $ | 2,056 | $ | 2,120 | $ | 2,195 | $ | 2,030 | $ | 2,059 | $ | 4,079 | $ | 4,089 |
13
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AMERICAS RETAIL - ANNUITIES STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
|
| |||||||||||||||||||||||||||||
For the Three Months Ended | For the Year-to-Date Period Ended | |||||||||||||||||||||||||||||
Unaudited (In millions) | June 30, 2014 | September 30, 2014 | December 31, 2014 | March 31, 2015 | June 30, 2015 | June 30, 2014 | June 30, 2015 | |||||||||||||||||||||||
OPERATING REVENUES | ||||||||||||||||||||||||||||||
Premiums | $ | 304 | $ | 348 | $ | 248 | $ | 255 | $ | 225 | $ | 542 | $ | 480 | ||||||||||||||||
Universal life and investment-type product policy fees | 862 | 877 | 858 | 844 | 868 | 1,709 | 1,712 | |||||||||||||||||||||||
Net investment income | 725 | 718 | 718 | 735 | 728 | 1,470 | 1,463 | |||||||||||||||||||||||
Other revenues | 111 | 110 | 108 | 107 | 110 | 219 | 217 | |||||||||||||||||||||||
Total operating revenues | 2,002 | 2,053 | 1,932 | 1,941 | 1,931 | 3,940 | 3,872 | |||||||||||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||||||||
Policyholder benefits and claims and policyholder dividends | 447 | 581 | 396 | 379 | 357 | 822 | 736 | |||||||||||||||||||||||
Interest credited to policyholder account balances | 335 | 337 | 333 | 315 | 321 | 671 | 636 | |||||||||||||||||||||||
Capitalization of DAC | (81 | ) | (81 | ) | (84 | ) | (89 | ) | (98 | ) | (170 | ) | (187 | ) | ||||||||||||||||
Amortization of DAC and VOBA | 182 | 171 | 180 | 165 | 195 | 410 | 360 | |||||||||||||||||||||||
Amortization of negative VOBA | - | - | - | - | - | - | - | |||||||||||||||||||||||
Interest expense on debt | 1 | - | 1 | - | 1 | 1 | 1 | |||||||||||||||||||||||
Other expenses | 535 | 542 | 577 | 544 | 586 | 1,090 | 1,130 | |||||||||||||||||||||||
Total operating expenses | 1,419 | 1,550 | 1,403 | 1,314 | 1,362 | 2,824 | 2,676 | |||||||||||||||||||||||
Operating earnings before provision for income tax | 583 | 503 | 529 | 627 | 569 | 1,116 | 1,196 | |||||||||||||||||||||||
Provision for income tax expense (benefit) | 172 | 83 | 144 | 177 | 157 | 324 | 334 | |||||||||||||||||||||||
Operating earnings | 411 | 420 | 385 | 450 | 412 | 792 | 862 | |||||||||||||||||||||||
Preferred stock dividends | - | - | - | - | - | - | - | |||||||||||||||||||||||
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS | $ | 411 | $ | 420 | $ | 385 | $ | 450 | $ | 412 | $ | 792 | $ | 862 | ||||||||||||||||
Reconciliation to Net Income (Loss) and Financial Statement Line Item Adjustments from GAAP | ||||||||||||||||||||||||||||||
Operating earnings | $ | 411 | $ | 420 | $ | 385 | $ | 450 | $ | 412 | $ | 792 | $ | 862 | ||||||||||||||||
Adjustments from operating earnings to income (loss) from continuing operations, net of income tax: | ||||||||||||||||||||||||||||||
Net investment gains (losses) | 9 | 18 | 3 | 67 | (10 | ) | 29 | 57 | ||||||||||||||||||||||
Net derivative gains (losses) | 219 | 185 | (134 | ) | 127 | 15 | 221 | 142 | ||||||||||||||||||||||
Premiums | - | - | - | - | - | - | - | |||||||||||||||||||||||
Universal life and investment-type product policy fees | 93 | 96 | 96 | 94 | 95 | 186 | 189 | |||||||||||||||||||||||
Net investment income | (60 | ) | (53 | ) | (60 | ) | (68 | ) | (46 | ) | (122 | ) | (114 | ) | ||||||||||||||||
Other revenues | - | - | - | - | - | - | - | |||||||||||||||||||||||
Policyholder benefits and claims and policyholder dividends | (215 | ) | (34 | ) | (135 | ) | (113 | ) | (150 | ) | (333 | ) | (263 | ) | ||||||||||||||||
Interest credited to policyholder account balances | - | - | - | - | - | - | - | |||||||||||||||||||||||
Capitalization of DAC | - | - | - | - | - | - | - | |||||||||||||||||||||||
Amortization of DAC and VOBA | (26 | ) | (121 | ) | 19 | (43 | ) | 75 | (15 | ) | 32 | |||||||||||||||||||
Amortization of negative VOBA | - | - | - | - | - | - | - | |||||||||||||||||||||||
Interest expense on debt | - | - | - | - | - | - | - | |||||||||||||||||||||||
Other expenses | - | - | - | - | - | - | - | |||||||||||||||||||||||
Goodwill impairment | - | - | - | - | - | - | - | |||||||||||||||||||||||
Provision for income tax (expense) benefit | (7 | ) | (32 | ) | 73 | (22 | ) | 7 | 12 | (15 | ) | |||||||||||||||||||
Income (loss) from continuing operations, net of income tax | 424 | 479 | 247 | 492 | 398 | 770 | 890 | |||||||||||||||||||||||
Income (loss) from discontinued operations, net of income tax | - | - | - | - | - | - | - | |||||||||||||||||||||||
Net income (loss) | 424 | 479 | 247 | 492 | 398 | 770 | 890 | |||||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interests | - | - | - | - | - | - | - | |||||||||||||||||||||||
Net income (loss) attributable to MetLife, Inc. | 424 | 479 | 247 | 492 | 398 | 770 | 890 | |||||||||||||||||||||||
Less: Preferred stock dividends | - | - | - | - | - | - | - | |||||||||||||||||||||||
Less: Preferred stock repurchase premium | - | - | - | - | - | - | - | |||||||||||||||||||||||
Net income (loss) available to MetLife, Inc.’s common shareholders | $ | 424 | $ | 479 | $ | 247 | $ | 492 | $ | 398 | $ | 770 | $ | 890 | ||||||||||||||||
Total Operating Premiums, Fees and Other Revenues | $ | 1,277 | $ | 1,335 | $ | 1,214 | $ | 1,206 | $ | 1,203 | $ | 2,470 | $ | 2,409 |
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AMERICAS RETAIL
VARIABLE & UNIVERSAL LIFE (1)
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For the Three Months Ended | ||||||||||||||||||||
Unaudited | June 30, 2014 | September 30, 2014 | December 31, 2014 | March 31, 2015 | June 30, 2015 | |||||||||||||||
Investment income yield excluding variable investment income | 6.15% | 6.06% | 6.13% | 6.01% | 6.29% | |||||||||||||||
Variable investment income yield | 0.02% | 0.51% | 0.38% | 0.32% | 0.39% | |||||||||||||||
Total investment income yield | 6.17% | 6.57% | 6.51% | 6.33% | 6.68% | |||||||||||||||
Average crediting rate | 4.50% | 4.51% | 4.50% | 4.53% | 4.53% | |||||||||||||||
Annualized general account spread | 1.67% | 2.06% | 2.01% | 1.80% | 2.15% | |||||||||||||||
Annualized general account spread excluding variable investment income yield | 1.65% | 1.55% | 1.63% | 1.48% | 1.76% | |||||||||||||||
ANNUITIES (2)
| ||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||
Unaudited | June 30, 2014 | September 30, 2014 | December 31, 2014 | March 31, 2015 | June 30, 2015 | |||||||||||||||
Investment income yield excluding variable investment income | 5.83% | 5.64% | 5.64% | 5.72% | 5.48% | |||||||||||||||
Variable investment income yield | 0.25% | 0.31% | 0.22% | 0.22% | 0.37% | |||||||||||||||
Total investment income yield | 6.08% | 5.95% | 5.86% | 5.94% | 5.85% | |||||||||||||||
Average crediting rate | 3.51% | 3.53% | 3.52% | 3.48% | 3.51% | |||||||||||||||
Annualized general account spread | 2.57% | 2.42% | 2.34% | 2.46% | 2.34% | |||||||||||||||
Annualized general account spread excluding variable investment income yield | 2.32% | 2.11% | 2.12% | 2.24% | 1.97% | |||||||||||||||
OTHER STATISTICAL INFORMATION
| ||||||||||||||||||||
For the Three Months Ended | ||||||||||||||||||||
Unaudited (In millions, except ratios) | June 30, 2014 | September 30, 2014 | December 31, 2014 | March 31, 2015 | June 30, 2015 | |||||||||||||||
Life (3) | ||||||||||||||||||||
Operating premiums, fees and other revenues | $ | 1,377 | $ | 1,427 | $ | 1,499 | $ | 1,370 | $ | 1,386 | ||||||||||
Interest Adjusted Benefit Ratio | 48.9% | 51.7% | 53.9% | 59.3% | 53.0% | |||||||||||||||
Lapse Ratio (4) | ||||||||||||||||||||
Traditional life | 5.8% | 5.9% | 5.9% | 5.8% | 5.6% | |||||||||||||||
Variable & universal life | 4.1% | 4.0% | 3.8% | 3.8% | 3.6% | |||||||||||||||
Fixed annuity | 10.3% | 10.1% | 10.6% | 9.8% | 9.9% | |||||||||||||||
Variable annuity | 6.5% | 6.7% | 6.9% | 7.0% | 7.0% | |||||||||||||||
Retail Property & Casualty | ||||||||||||||||||||
Operating premiums, fees and other revenues | $ | 452 | $ | 457 | $ | 458 | $ | 445 | $ | 448 | ||||||||||
Combined ratio including catastrophes | 107.5% | 83.6% | 85.8% | 89.3% | 100.1% | |||||||||||||||
Combined ratio excluding catastrophes | 83.6% | 79.3% | 81.5% | 79.4% | 80.2% | |||||||||||||||
(1) Represents the general account spread for variable & universal life, a component of Life & Other.
(2) Represents the general account spread for deferred and payout annuities.
(3) Represents traditional life and variable & universal life, components of Life & Other.
(4) Lapse ratios are calculated based on the average of the most recent 12 months of experience. |
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ASIA
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For the Three Months Ended | ||||||||||||||||||||
Unaudited (In millions) | June 30, 2014 | September 30, 2014 | December 31, 2014 | March 31, 2015 | June 30, 2015 | |||||||||||||||
Direct and allocated expenses | $ | 337 | $ | 346 | $ | 332 | $ | 299 | $ | 320 | ||||||||||
Pension and post-retirement benefit costs | 18 | 18 | 19 | 19 | 17 | |||||||||||||||
Premium taxes, other taxes, and licenses & fees | 38 | 42 | 48 | 36 | 37 | |||||||||||||||
Total fixed operating expenses | $ | 393 | $ | 406 | $ | 399 | $ | 354 | $ | 374 | ||||||||||
Commissions and other variable expenses | 584 | 621 | 581 | 550 | 495 | |||||||||||||||
Total other expenses | $ | 977 | $ | 1,027 | $ | 980 | $ | 904 | $ | 869 | ||||||||||
Total other expenses on a constant currency basis (1) | $ | 858 | $ | 905 | $ | 921 | $ | 897 | $ | 869 | ||||||||||
SALES ON A CONSTANT CURRENCY BASIS (1), (2)
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For the Three Months Ended | ||||||||||||||||||||
Unaudited (In millions) | June 30, 2014 | September 30, 2014 | December 31, 2014 | March 31, 2015 | June 30, 2015 | |||||||||||||||
Japan: | ||||||||||||||||||||
Life | $ | 153 | $ | 150 | $ | 173 | $ | 169 | $ | 198 | ||||||||||
Accident & Health | 89 | 85 | 129 | 111 | 118 | |||||||||||||||
Annuities | 97 | 94 | 74 | 65 | 62 | |||||||||||||||
Other | 5 | 6 | 5 | 4 | 6 | |||||||||||||||
Total Japan | 344 | 335 | 381 | 349 | 384 | |||||||||||||||
Other Asia | 245 | 363 | 247 | 262 | 212 | |||||||||||||||
Total sales | $ | 589 | $ | 698 | $ | 628 | $ | 611 | $ | 596 | ||||||||||
(1) Calculated using the average foreign currency exchange rates for the current period and are applied to the prior periods presented. As a result, amounts will be updated each period to reflect the average foreign currency exchange rates for the current period.
(2) Statistical sales information is calculated using 10% of single-premium deposits (mainly from retirement products such as variable annuity, fixed annuity and pensions), 20% of single-premium deposits from credit insurance and 100% of annualized full year premiums and fees from recurring-premium policy sales of all products (mainly from risk and protection products such as individual life, accident & health and group). Sales statistics do not correspond to revenues under GAAP, but are used as relevant measures of business activity. |
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INVESTMENTS INVESTMENT PORTFOLIO RESULTS BY ASSET CATEGORY AND ANNUALIZED YIELDS
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At or For the Year-to-Date Period Ended | ||||||||||||||||||||
Unaudited (In millions, except yields) | June 30, 2014 | September 30, 2014 | December 31, 2014 | March 31, 2015 | June 30, 2015 | |||||||||||||||
Fixed Maturity Securities | ||||||||||||||||||||
Yield (1) | 4.83% | 4.80% | 4.81% | 4.64% | 4.72% | |||||||||||||||
Investment income (2), (3), (4) | $ | 7,481 | $ | 11,185 | $ | 14,946 | $ | 3,569 | $ | 7,234 | ||||||||||
Investment gains (losses) (3) | 149 | 302 | 548 | 133 | 248 | |||||||||||||||
Ending carrying value (2), (3) | 368,428 | 369,432 | 366,783 | 367,640 | 352,610 | |||||||||||||||
Mortgage Loans | ||||||||||||||||||||
Yield (1) | 5.06% | 5.19% | 5.15% | 4.80% | 4.95% | |||||||||||||||
Investment income (3), (4) | 1,417 | 2,191 | 2,928 | 730 | 1,531 | |||||||||||||||
Investment gains (losses) (3) | 5 | (25 | ) | (36 | ) | (43 | ) | (52 | ) | |||||||||||
Ending carrying value (3) | 56,585 | 57,725 | 59,838 | 62,137 | 63,744 | |||||||||||||||
Real Estate and Real Estate Joint Ventures | ||||||||||||||||||||
Yield (1) | 3.98% | 3.88% | 3.67% | 3.10% | 5.23% | |||||||||||||||
Investment income (3) | 203 | 297 | 376 | 81 | 270 | |||||||||||||||
Investment gains (losses) (3) | 59 | 145 | 217 | 27 | (6 | ) | ||||||||||||||
Ending carrying value | 10,101 | 10,393 | 10,525 | 10,310 | 10,207 | |||||||||||||||
Policy Loans | ||||||||||||||||||||
Yield (1) | 5.35% | 5.36% | 5.36% | 5.24% | 5.23% | |||||||||||||||
Investment income | 315 | 473 | 629 | 152 | 303 | |||||||||||||||
Ending carrying value | 11,785 | 11,756 | 11,618 | 11,606 | 11,575 | |||||||||||||||
Equity Securities | ||||||||||||||||||||
Yield (1) | 4.30% | 4.18% | 4.30% | 4.01% | 4.30% | |||||||||||||||
Investment income | 67 | 98 | 133 | 31 | 66 | |||||||||||||||
Investment gains (losses) | 50 | 64 | 65 | 8 | 16 | |||||||||||||||
Ending carrying value | 3,863 | 3,689 | 3,631 | 3,713 | 3,677 | |||||||||||||||
Other Limited Partnership Interests | ||||||||||||||||||||
Yield (1) | 13.81% | 14.14% | 13.01% | 10.62% | 11.50% | |||||||||||||||
Investment income | 535 | 834 | 1,033 | 215 | 465 | |||||||||||||||
Investment gains (losses) | (38 | ) | (52 | ) | (78 | ) | 16 | 7 | ||||||||||||
Ending carrying value | 7,964 | 8,214 | 8,085 | 8,074 | 8,099 | |||||||||||||||
Cash and Short-term Investments | ||||||||||||||||||||
Yield (1) | 1.11% | 1.09% | 1.07% | 1.00% | 1.02% | |||||||||||||||
Investment income | 84 | 124 | 161 | 33 | 66 | |||||||||||||||
Investment gains (losses) | (1 | ) | (1 | ) | 11 | 6 | (6 | ) | ||||||||||||
Ending carrying value | 19,759 | 21,023 | 19,429 | 22,257 | 22,668 | |||||||||||||||
Other Invested Assets (1) | ||||||||||||||||||||
Investment income | 420 | 653 | 906 | 327 | 550 | |||||||||||||||
Investment gains (losses) (3) | (6 | ) | (24 | ) | (120 | ) | 18 | (1 | ) | |||||||||||
Ending carrying value | 17,116 | 17,905 | 21,283 | 23,763 | 20,409 | |||||||||||||||
Total Investments | ||||||||||||||||||||
Investment income yield (1) | 5.02% | 5.02% | 5.01% | 4.89% | 4.99% | |||||||||||||||
Investment fees and expenses yield | (0.13 | )% | (0.13 | )% | (0.13 | )% | (0.15 | )% | (0.15 | )% | ||||||||||
Net Investment Income Yield (1), (3), (5) | 4.89% | 4.89% | 4.88% | 4.74% | 4.84% | |||||||||||||||
Investment income | $ | 10,522 | $ | 15,855 | $ | 21,112 | $ | 5,138 | $ | 10,485 | ||||||||||
Investment fees and expenses | (275 | ) | (412 | ) | (556 | ) | (156 | ) | (318 | ) | ||||||||||
Net investment income including Divested businesses | 10,247 | 15,443 | 20,556 | 4,982 | 10,167 | |||||||||||||||
Less: Net investment income from Divested businesses (5) | 67 | 70 | 72 | - | - | |||||||||||||||
Net Investment Income (3) | $ | 10,180 | $ | 15,373 | $ | 20,484 | $ | 4,982 | $ | 10,167 | ||||||||||
Ending Carrying Value (3) | $ | 495,601 | $ | 500,137 | $ | 501,192 | $ | 509,500 | $ | 492,989 | ||||||||||
Investment portfolio gains (losses) including Divested businesses | $ | 218 | $ | 409 | $ | 607 | $ | 165 | $ | 206 | ||||||||||
Less: Investment portfolio gains (losses) from Divested businesses (5) | - | 2 | 2 | - | - | |||||||||||||||
Investment Portfolio Gains (Losses) (3), (5) | $ | 218 | $ | 407 | $ | 605 | $ | 165 | $ | 206 | ||||||||||
Gross investment gains | $ | 711 | $ | 1,130 | $ | 1,689 | $ | 445 | $ | 864 | ||||||||||
Gross investment losses | (385 | ) | (552 | ) | (789 | ) | (236 | ) | (497 | ) | ||||||||||
Writedowns | (108 | ) | (171 | ) | (295 | ) | (44 | ) | (161 | ) | ||||||||||
Investment Portfolio Gains (Losses) (3), (5) | 218 | 407 | 605 | 165 | 206 | |||||||||||||||
Investment portfolio gains (losses) income tax (expense) benefit | (87 | ) | (191 | ) | (260 | ) | (52 | ) | 51 | |||||||||||
Investment Portfolio Gains (Losses), Net of Income Tax | $ | 131 | $ | 216 | $ | 345 | $ | 113 | $ | 257 | ||||||||||
Derivative Gains (Losses) including Divested businesses | $ | 287 | $ | 593 | $ | 575 | $ | 611 | $ | (492 | ) | |||||||||
Less: Derivative gains (losses) from Divested businesses (5) | 80 | 80 | 80 | - | - | |||||||||||||||
Derivative gains (losses) (3), (5) | 207 | 513 | 495 | 611 | (492 | ) | ||||||||||||||
Derivative gains (losses) income tax (expense) benefit | (58 | ) | (177 | ) | (199 | ) | (217 | ) | 165 | |||||||||||
Derivative Gains (Losses), Net of Income Tax | $ | 149 | $ | 336 | $ | 296 | $ | 394 | $ | (327 | ) | |||||||||
(1) Yields are calculated as investment income as a percent of average quarterly asset carrying values. Investment income excludes recognized gains and losses and reflects the GAAP adjustments described on Page 2 and as presented on Page A-1. Asset carrying values exclude unrealized gains (losses), collateral received in connection with our securities lending program, freestanding derivative assets, collateral received from derivative counterparties, the effects of consolidating under GAAP certain VIEs that are treated as CSEs and contractholder-directed unit-linked investments. A yield is not presented for other invested assets, as it is not considered a meaningful measure of performance for this asset class.
(2) Fixed maturity securities includes $1,372 million, $1,362 million, $1,358 million, $1,365 million and $1,257 million in ending carrying value, and $81 million, $95 million, $103 million, $37 million and $39 million of investment income related to fair value option and trading securities at or for the year-to-date period ended June 30, 2014, September 30, 2014, December 31, 2014, March 31, 2015 and June 30, 2015, respectively.
(3) The reconciliation of the remaining yield table captions to the most directly comparable measures presented in accordance with GAAP are as follows at or for the periods ended June 30, 2014, September 30, 2014, December 31, 2014, March 31, 2015 and June 30, 2015, respectively: A) Fair value option and trading securities (included within fixed maturity securities above) ending carrying value excludes contractholder-directed unit-linked investments of $16,441 million, $15,866 million, $15,316 million, $15,091 million and $15,189 million; B) Ending carrying value excludes the following effects of consolidating under GAAP certain VIEs that are treated as CSEs: Fair value option and trading securities (included within fixed maturity securities above) of $18 million, $18 million, $15 million, $15 million and $14 million and mortgage loans of $638 million, $313 million, $280 million, $272 million and $266 million; C) Net investment income adjustments as presented on Page A-1; D) Investment portfolio gains (losses) as presented above and the GAAP adjustments as presented below; and E) Derivative gains (losses) as presented above and GAAP adjustments as presented below:
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For the Year-to-Date Period Ended | ||||||||||||||||||||
June 30, 2014 | September 30, 2014 | December 31, 2014 | March 31, 2015 | June 30, 2015 | ||||||||||||||||
Investment portfolio gains (losses) including Divested businesses - in above yield table | $ | 218 | $ | 407 | $ | 605 | $ | 165 | $ | 206 | ||||||||||
Real estate discontinued operations | 5 | 5 | 5 | - | - | |||||||||||||||
Operating joint venture adjustments | - | - | - | (1 | ) | 3 | ||||||||||||||
Net investment gains (losses) related to certain CSEs | 3 | 6 | 5 | (2 | ) | - | ||||||||||||||
Other gains (losses) reported in net investment gains (losses) on GAAP basis | (762 | ) | (845 | ) | (812 | ) | 124 | (56 | ) | |||||||||||
Net investment gains (losses) - GAAP basis | $ | (536 | ) | $ | (427 | ) | $ | (197 | ) | $ | 286 | $ | 153 | |||||||
For the Year-to-Date Period Ended | ||||||||||||||||||||
June 30, 2014 | September 30, 2014 | December 31, 2014 | March 31, 2015 | June 30, 2015 | ||||||||||||||||
Derivative gains (losses) including Divested businesses - in above yield table | $ | 287 | $ | 593 | $ | 575 | $ | 611 | $ | (492 | ) | |||||||||
Investment hedge adjustments (5) | 344 | 513 | 705 | 200 | 380 | |||||||||||||||
Operating joint venture adjustments | (1 | ) | (2 | ) | 1 | - | - | |||||||||||||
Settlement of foreign currency earnings hedges | 17 | 17 | 22 | 8 | 17 | |||||||||||||||
PAB hedge adjustments | 7 | 11 | 14 | 2 | 4 | |||||||||||||||
Net derivative gains (losses) - GAAP basis | $ | 654 | $ | 1,132 | $ | 1,317 | $ | 821 | $ | (91 | ) | |||||||||
(4) Investment income from fixed maturity securities and mortgage loans includes prepayment fees.
(5) Yields are calculated including net investment income of Divested businesses and related carrying values. The net investment income adjustment on Page A-1 for Divested businesses at or for the year-to-date period ended June 30, 2014, September 30, 2014, December 31, 2014, March 31, 2015 and June 30, 2015, excludes $1 million, $1 million, $1 million, $0 and $0, respectively, for the investment hedge adjustment that are included in the investment hedge adjustment line of the derivatives gains (loss) GAAP adjustments reconciliation table presented above.
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INVESTMENTS
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Unaudited (In millions) | June 30, 2014 | September 30, 2014 | December 31, 2014 | March 31, 2015 | June 30, 2015 | |||||||||||||||||||||||||||||||||||
Commercial mortgage loans | $40,604 | $40,540 | $41,088 | $42,164 | $42,953 | |||||||||||||||||||||||||||||||||||
Agricultural mortgage loans | 11,961 | 11,929 | 12,378 | 12,333 | 12,498 | |||||||||||||||||||||||||||||||||||
Residential mortgage loans | 4,314 | 5,563 | 6,677 | 7,955 | 8,618 | |||||||||||||||||||||||||||||||||||
Total Mortgage Loans | 56,879 | 58,032 | 60,143 | 62,452 | 64,069 | |||||||||||||||||||||||||||||||||||
Valuation allowances | (294) | (307) | (305) | (315) | (325) | |||||||||||||||||||||||||||||||||||
Total Mortgage Loans, net | $56,585 | $57,725 | $59,838 | $62,137 | $63,744 | |||||||||||||||||||||||||||||||||||
(1) Excludes the effects of consolidating under GAAP certain VIEs that are treated as CSEs. See Page 31, note 3, for the amount excluded for each period presented. |
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SUMMARY OF COMMERCIAL MORTGAGE LOANS BY REGION AND PROPERTY TYPE
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June 30, 2014 | September 30, 2014 | December 31, 2014 | March 31, 2015 | June 30, 2015 | ||||||||||||||||||||||||||||||||||||
Unaudited (In millions) | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | ||||||||||||||||||||||||||||||
Pacific | $ | 9,017 | 22.2% | $ | 8,815 | 21.7% | $ | 8,620 | 21.0% | $ | 9,197 | 21.8% | $ | 9,221 | 21.5% | |||||||||||||||||||||||||
Middle Atlantic | 7,232 | 17.8% | 7,582 | 18.7% | 7,689 | 18.7% | 7,617 | 18.1% | 7,864 | 18.3% | ||||||||||||||||||||||||||||||
International | 6,763 | 16.7% | 6,636 | 16.4% | 7,251 | 17.7% | 7,630 | 18.1% | 7,222 | 16.8% | ||||||||||||||||||||||||||||||
South Atlantic | 6,714 | 16.5% | 6,705 | 16.5% | 6,384 | 15.5% | 6,249 | 14.8% | 6,355 | 14.8% | ||||||||||||||||||||||||||||||
West South Central | 3,734 | 9.2% | 3,763 | 9.3% | 3,990 | 9.7% | 3,939 | 9.3% | 4,404 | 10.3% | ||||||||||||||||||||||||||||||
East North Central | 2,455 | 6.0% | 2,589 | 6.4% | 2,430 | 5.9% | 2,520 | 6.0% | 2,260 | 5.3% | ||||||||||||||||||||||||||||||
New England | 1,406 | 3.5% | 1,197 | 3.0% | 1,155 | 2.8% | 1,151 | 2.7% | 1,352 | 3.1% | ||||||||||||||||||||||||||||||
Mountain | 935 | 2.3% | 933 | 2.3% | 932 | 2.3% | 1,169 | 2.8% | 1,168 | 2.7% | ||||||||||||||||||||||||||||||
East South Central | 383 | 0.9% | 384 | 0.9% | 424 | 1.0% | 423 | 1.0% | 390 | 0.9% | ||||||||||||||||||||||||||||||
West North Central | 144 | 0.4% | 142 | 0.4% | 140 | 0.3% | 138 | 0.3% | 150 | 0.3% | ||||||||||||||||||||||||||||||
Multi-Region and Other | 1,821 | 4.5% | 1,794 | 4.4% | 2,073 | 5.1% | 2,131 | 5.1% | 2,567 | 6.0% | ||||||||||||||||||||||||||||||
Total | $ | 40,604 | 100.0% | $ | 40,540 | 100.0% | $ | 41,088 | 100.0% | $ | 42,164 | 100.0% | $ | 42,953 | 100.0% | |||||||||||||||||||||||||
Office | $ | 20,692 | 51.0% | $ | 21,160 | 52.2% | $ | 21,400 | 52.1% | $ | 21,094 | 50.0% | $ | 21,334 | 49.7% | |||||||||||||||||||||||||
Retail | 9,049 | 22.3% | 9,263 | 22.8% | 9,389 | 22.9% | 9,543 | 22.6% | 9,982 | 23.2% | ||||||||||||||||||||||||||||||
Apartment | 3,948 | 9.7% | 3,392 | 8.4% | 3,786 | 9.2% | 4,696 | 11.2% | 4,806 | 11.2% | ||||||||||||||||||||||||||||||
Hotel | 4,154 | 10.2% | 4,317 | 10.6% | 4,196 | 10.2% | 4,483 | 10.6% | 4,431 | 10.3% | ||||||||||||||||||||||||||||||
Industrial | 2,444 | 6.0% | 2,178 | 5.4% | 2,133 | 5.2% | 2,157 | 5.1% | 2,205 | 5.1% | ||||||||||||||||||||||||||||||
Other | 317 | 0.8% | 230 | 0.6% | 184 | 0.4% | 191 | 0.5% | 195 | 0.5% | ||||||||||||||||||||||||||||||
Total | $ | 40,604 | 100.0% | $ | 40,540 | 100.0% | $ | 41,088 | 100.0% | $ | 42,164 | 100.0% | $ | 42,953 | 100.0% |
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Appendix
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APPENDIX METLIFE
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For the Three Months Ended | For the Year-to-Date Period Ended | |||||||||||||||||||||||||||||
Unaudited (In millions) | June 30, 2014 | September 30, 2014 | December 31, 2014 | March 31, 2015 | June 30, 2015 | June 30, 2014 | June 30, 2015 | |||||||||||||||||||||||
Reconciliation to Net Income (Loss) and Financial Statement Line Item Adjustments from GAAP | ||||||||||||||||||||||||||||||
Operating earnings | $ | 1,621 | $ | 1,855 | $ | 1,614 | $ | 1,668 | $ | 1,796 | $ | 3,213 | $ | 3,464 | ||||||||||||||||
Adjustments from operating earnings to income (loss) from continuing operations, net of income tax: | ||||||||||||||||||||||||||||||
Net investment gains (losses) (1) | (125 | ) | 109 | 230 | 286 | (133 | ) | (536 | ) | 153 | ||||||||||||||||||||
Net derivative gains (losses) | 311 | 478 | 185 | 821 | (912 | ) | 654 | (91 | ) | |||||||||||||||||||||
Premiums -Divested businesses | 20 | 18 | 5 | - | (1 | ) | 22 | (1 | ) | |||||||||||||||||||||
Universal life and investment-type product policy fees | ||||||||||||||||||||||||||||||
Unearned revenue adjustments | 3 | 8 | 6 | 4 | 3 | 6 | 7 | |||||||||||||||||||||||
GMIB fees | 93 | 96 | 96 | 94 | 95 | 186 | 189 | |||||||||||||||||||||||
Divested businesses | 2 | 2 | 1 | 2 | 1 | 4 | 3 | |||||||||||||||||||||||
Net investment income | ||||||||||||||||||||||||||||||
Investment hedge adjustments | (165 | ) | (169 | ) | (192 | ) | (200 | ) | (180 | ) | (343 | ) | (380 | ) | ||||||||||||||||
Income from discontinued real estate operations | - | - | - | - | - | (1 | ) | - | ||||||||||||||||||||||
Operating joint venture adjustments | 1 | 1 | (3 | ) | 1 | (4 | ) | 1 | (3 | ) | ||||||||||||||||||||
Unit-linked contract income | 295 | 379 | 527 | 677 | (55 | ) | 360 | 622 | ||||||||||||||||||||||
Securitization entities income | 13 | 3 | 4 | 1 | 1 | 31 | 2 | |||||||||||||||||||||||
Divested businesses | 20 | 3 | 2 | - | - | 66 | - | |||||||||||||||||||||||
Other revenues | ||||||||||||||||||||||||||||||
Settlement of foreign currency earnings hedges | (4 | ) | - | (5 | ) | (8 | ) | (9 | ) | (17 | ) | (17 | ) | |||||||||||||||||
Divested businesses | 1 | - | 18 | - | - | 1 | - | |||||||||||||||||||||||
Policyholder benefits and claims and policyholder dividends | ||||||||||||||||||||||||||||||
PDO adjustments | - | - | 6 | 17 | (10 | ) | - | 7 | ||||||||||||||||||||||
Inflation and pass through adjustments | (160 | ) | 93 | (104 | ) | (3 | ) | 25 | (249 | ) | 22 | |||||||||||||||||||
GMIB costs | (215 | ) | (34 | ) | (134 | ) | (112 | ) | (150 | ) | (332 | ) | (262 | ) | ||||||||||||||||
Market value adjustments | (26 | ) | (54 | ) | (85 | ) | (51 | ) | (45 | ) | (43 | ) | (96 | ) | ||||||||||||||||
Divested businesses | (20 | ) | (10 | ) | (3 | ) | - | - | (51 | ) | - | |||||||||||||||||||
Interest credited to policyholder account balances | ||||||||||||||||||||||||||||||
PAB hedge adjustments | (4 | ) | (4 | ) | (3 | ) | (2 | ) | (2 | ) | (7 | ) | (4 | ) | ||||||||||||||||
Unit-linked contract costs | (280 | ) | (387 | ) | (534 | ) | (662 | ) | 46 | (345 | ) | (616 | ) | |||||||||||||||||
Divested businesses | - | - | (2 | ) | - | - | - | - | ||||||||||||||||||||||
Capitalization of DAC -Divested businesses | 1 | - | - | - | - | 1 | - | |||||||||||||||||||||||
Amortization of DAC and VOBA | ||||||||||||||||||||||||||||||
Related to NIGL and NDGL | (63 | ) | 27 | (4 | ) | (112 | ) | 104 | (64 | ) | (8 | ) | ||||||||||||||||||
Related to GMIB fees and GMIB costs | 26 | (81 | ) | (1 | ) | 40 | - | 19 | 40 | |||||||||||||||||||||
Related to market value adjustments | - | - | - | - | - | - | - | |||||||||||||||||||||||
Divested businesses | - | (1 | ) | - | - | - | - | - | ||||||||||||||||||||||
Amortization of negative VOBA | ||||||||||||||||||||||||||||||
Related to market value adjustments | 12 | 11 | 11 | 10 | 9 | 24 | 19 | |||||||||||||||||||||||
Divested businesses | - | - | - | - | - | - | - | |||||||||||||||||||||||
Interest expense on debt | ||||||||||||||||||||||||||||||
Securitization entities debt expense | (13 | ) | (3 | ) | (4 | ) | (1 | ) | (1 | ) | (31 | ) | (2 | ) | ||||||||||||||||
Divested businesses | - | - | - | - | - | - | - | |||||||||||||||||||||||
Other expenses | ||||||||||||||||||||||||||||||
Noncontrolling interest | 11 | (3 | ) | 12 | 5 | 7 | 24 | 12 | ||||||||||||||||||||||
Regulatory implementation costs | (2 | ) | - | (1 | ) | (1 | ) | (1 | ) | (2 | ) | (2 | ) | |||||||||||||||||
Acquisition & integration costs | (10 | ) | (17 | ) | (24 | ) | (8 | ) | (7 | ) | (14 | ) | (15 | ) | ||||||||||||||||
Divested businesses | (11 | ) | (24 | ) | (42 | ) | (1 | ) | (3 | ) | (23 | ) | (4 | ) | ||||||||||||||||
Goodwill impairment | - | - | - | - | - | - | - | |||||||||||||||||||||||
Provision for income tax (expense) benefit | 44 | (202 | ) | (49 | ) | (302 | ) | 545 | 164 | 243 | ||||||||||||||||||||
Income (loss) from continuing operations, net of income tax | 1,376 | 2,094 | 1,527 | 2,163 | 1,119 | 2,718 | 3,282 | |||||||||||||||||||||||
Income (loss) from discontinued operations, net of income tax | - | - | - | - | - | (3 | ) | - | ||||||||||||||||||||||
Net income (loss) | 1,376 | 2,094 | 1,527 | 2,163 | 1,119 | 2,715 | 3,282 | |||||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interests | 10 | - | 6 | 5 | 4 | 21 | 9 | |||||||||||||||||||||||
Net income (loss) attributable to MetLife, Inc. | 1,366 | 2,094 | 1,521 | 2,158 | 1,115 | 2,694 | 3,273 | |||||||||||||||||||||||
Less: Preferred stock dividends | 31 | 30 | 31 | 30 | 31 | 61 | 61 | |||||||||||||||||||||||
Less: Preferred stock repurchase premium | - | - | - | - | 42 | - | 42 | |||||||||||||||||||||||
Net income (loss) available to MetLife, Inc.’s common shareholders | $ | 1,335 | $ | 2,064 | $ | 1,490 | $ | 2,128 | $ | 1,042 | $ | 2,633 | $ | 3,170 | ||||||||||||||||
(1) The three months ended and year-to-date period ended June 30, 2014 include a pre-tax net investment loss of $138 million and $633 million, respectively, related to the sale of MetLife, Inc.’s wholly-owned subsidiary, MetLife Assurance Limited. |
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APPENDIX METLIFE
METLIFE TOTAL
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For the Three Months Ended | For the Year-to-Date Period Ended | |||||||||||||||||||||||||||||||
Unaudited (In millions) | June 30, 2014 | September 30, 2014 | December 31, 2014 | March 31, 2015 | June 30, 2015 | June 30, 2014 | June 30, 2015 | |||||||||||||||||||||||||
Variable investment income, as compared to plan | $ | 11 | $ | 62 | $ | - | $ | - | $ | - | $ | 74 | $ | - | ||||||||||||||||||
Catastrophe experience and prior year development, net | (21 | ) | 38 | 16 | (16 | ) | - | (21 | ) | (16 | ) | |||||||||||||||||||||
Actuarial assumption review and other insurance adjustments | 56 | 16 | 5 | - | - | 56 | - | |||||||||||||||||||||||||
Litigation reserves & settlement costs | - | - | (117 | ) | - | - | (57 | ) | - | |||||||||||||||||||||||
Tax adjustments | - | (9 | ) | 27 | - | 61 | - | 61 | ||||||||||||||||||||||||
Total notable items | $ | 46 | $ | 107 | $ | (69 | ) | $ | (16 | ) | $ | 61 | $ | 52 | $ | 45 | ||||||||||||||||
RETAIL
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For the Three Months Ended | For the Year-to-Date Period Ended | |||||||||||||||||||||||||||||||
Unaudited (In millions) | June 30, 2014 | September 30, 2014 | December 31, 2014 | March 31, 2015 | June 30, 2015 | June 30, 2014 | June 30, 2015 | |||||||||||||||||||||||||
Variable investment income, as compared to plan | $ | (9 | ) | $ | 25 | $ | - | $ | - | $ | - | $ | 17 | $ | - | |||||||||||||||||
Catastrophe experience and prior year development, net | (20 | ) | 23 | 6 | (3 | ) | (2 | ) | (20 | ) | (5 | ) | ||||||||||||||||||||
Actuarial assumption review and other insurance adjustments | 56 | 19 | (9 | ) | - | - | 56 | - | ||||||||||||||||||||||||
Tax adjustments | - | 38 | - | - | - | - | - | |||||||||||||||||||||||||
Total notable items | $ | 27 | $ | 105 | $ | (3 | ) | $ | (3 | ) | $ | (2 | ) | $ | 53 | $ | (5 | ) | ||||||||||||||
RETAIL - LIFE & OTHER
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For the Three Months Ended | For the Year-to-Date Period Ended | |||||||||||||||||||||||||||||||
Unaudited (In millions) | June 30, 2014 | September 30, 2014 | December 31, 2014 | March 31, 2015 | June 30, 2015 | June 30, 2014 | June 30, 2015 | |||||||||||||||||||||||||
Variable investment income, as compared to plan | $ | (12 | ) | $ | 17 | $ | - | $ | - | $ | - | $ | 3 | $ | - | |||||||||||||||||
Catastrophe experience and prior year development, net | (20 | ) | 23 | 6 | (3 | ) | (2 | ) | (20 | ) | (5 | ) | ||||||||||||||||||||
Actuarial assumption review and other insurance adjustments | 56 | 37 | (9 | ) | - | - | 56 | - | ||||||||||||||||||||||||
Tax adjustments | - | 5 | - | - | - | - | - | |||||||||||||||||||||||||
Total notable items | $ | 24 | $ | 82 | $ | (3 | ) | $ | (3 | ) | $ | (2 | ) | $ | 39 | $ | (5 | ) | ||||||||||||||
RETAIL - ANNUITIES
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For the Three Months Ended | For the Year-to-Date Period Ended | |||||||||||||||||||||||||||||||
Unaudited (In millions) | June 30, 2014 | September 30, 2014 | December 31, 2014 | March 31, 2015 | June 30, 2015 | June 30, 2014 | June 30, 2015 | |||||||||||||||||||||||||
Variable investment income, as compared to plan | $ | 3 | $ | 8 | $ | - | $ | - | $ | - | $ | 14 | $ | - | ||||||||||||||||||
Actuarial assumption review and other insurance adjustments | - | (18 | ) | - | - | - | - | - | ||||||||||||||||||||||||
Tax adjustments | - | 33 | - | - | - | - | - | |||||||||||||||||||||||||
Total notable items | $ | 3 | $ | 23 | $ | - | $ | - | $ | - | $ | 14 | $ | - | ||||||||||||||||||
GROUP, VOLUNTARY & WORKSITE BENEFITS
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For the Three Months Ended | For the Year-to-Date Period Ended | |||||||||||||||||||||||||||||||
Unaudited (In millions) | June 30, 2014 | September 30, 2014 | December 31, 2014 | March 31, 2015 | June 30, 2015 | June 30, 2014 | June 30, 2015 | |||||||||||||||||||||||||
Variable investment income, as compared to plan | $ | (1 | ) | $ | 8 | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||||||
Catastrophe experience and prior year development, net | (1 | ) | 15 | 10 | (12 | ) | 2 | (1 | ) | (10 | ) | |||||||||||||||||||||
Actuarial assumption review and other insurance adjustments | - | - | (9 | ) | - | - | - | - | ||||||||||||||||||||||||
Total notable items | $ | (2 | ) | $ | 23 | $ | 1 | $ | (12 | ) | $ | 2 | $ | (1 | ) | $ | (10 | ) | ||||||||||||||
(1) Notable items represent a positive (negative) impact to operating earnings available to common shareholders. |
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APPENDIX METLIFE NOTABLE ITEMS (CONTINUED) (1)
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For the Three Months Ended | For the Year-to-Date Period Ended | |||||||||||||||||||||||||||||
Unaudited (In millions) | June 30, 2014 | September 30, 2014 | December 31, 2014 | March 31, 2015 | June 30, 2015 | June 30, 2014 | June 30, 2015 | |||||||||||||||||||||||
Variable investment income, as compared to plan | $ | 21 | $ | 33 | $ | - | $ | - | $ | - | $ | 36 | $ | - | ||||||||||||||||
Total notable items | $ | 21 | $ | 33 | $ | - | $ | - | $ | - | $ | 36 | $ | - | ||||||||||||||||
LATIN AMERICA
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For the Three Months Ended | For the Year-to-Date Period Ended | |||||||||||||||||||||||||||||
Unaudited (In millions) | June 30, 2014 | September 30, 2014 | December 31, 2014 | March 31, 2015 | June 30, 2015 | June 30, 2014 | June 30, 2015 | |||||||||||||||||||||||
Catastrophe experience and prior year development, net | $ | - | $ | - | $ | - | $ | (1 | ) | $ | - | $ | - | $ | (1 | ) | ||||||||||||||
Tax adjustments | - | (41 | ) | 13 | - | - | - | - | ||||||||||||||||||||||
Total notable items | $ | - | $ | (41 | ) | $ | 13 | $ | (1 | ) | $ | - | $ | - | $ | (1 | ) | |||||||||||||
ASIA
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For the Three Months Ended | For the Year-to-Date Period Ended | |||||||||||||||||||||||||||||
Unaudited (In millions) | June 30, 2014 | September 30, 2014 | December 31, 2014 | March 31, 2015 | June 30, 2015 | June 30, 2014 | June 30, 2015 | |||||||||||||||||||||||
Variable investment income, as compared to plan | $ | - | $ | 3 | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||
Actuarial assumption review and other insurance adjustments | - | (13 | ) | 23 | - | - | - | - | ||||||||||||||||||||||
Tax adjustments | - | - | - | - | 61 | - | 61 | |||||||||||||||||||||||
Total notable items | $ | - | $ | (10 | ) | $ | 23 | $ | - | $ | 61 | $ | - | $ | 61 | |||||||||||||||
EMEA
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For the Three Months Ended | For the Year-to-Date Period Ended | |||||||||||||||||||||||||||||
Unaudited (In millions) | June 30, 2014 | September 30, 2014 | December 31, 2014 | March 31, 2015 | June 30, 2015 | June 30, 2014 | June 30, 2015 | |||||||||||||||||||||||
Actuarial assumption review and other insurance adjustments | $ | - | $ | 10 | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||
Tax adjustments | - | - | 14 | - | - | - | - | |||||||||||||||||||||||
Total notable items | $ | - | $ | 10 | $ | 14 | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||
CORPORATE & OTHER
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For the Three Months Ended | For the Year-to-Date Period Ended | |||||||||||||||||||||||||||||
Unaudited (In millions) | June 30, 2014 | September 30, 2014 | December 31, 2014 | March 31, 2015 | June 30, 2015 | June 30, 2014 | June 30, 2015 | |||||||||||||||||||||||
Variable investment income, as compared to plan | $ | - | $ | (7 | ) | $ | - | $ | - | $ | - | $ | 21 | $ | - | |||||||||||||||
Litigation reserves & settlement costs | - | - | (117 | ) | - | - | (57 | ) | - | |||||||||||||||||||||
Tax adjustments | - | (6 | ) | - | - | - | - | - | ||||||||||||||||||||||
Total notable items | $ | - | $ | (13 | ) | $ | (117 | ) | $ | - | $ | - | $ | (36 | ) | $ | - | |||||||||||||
(1) Notable items represent a positive (negative) impact to operating earnings available to common shareholders. |
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