[METLIFE REGISTRATION MARK]
Fourth Quarter
Financial Supplement
December 31, 2004
4
[SNOOPY GRAPHIC]
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TABLE OF CONTENTS
HIGHLIGHTS
CORPORATE OVERVIEW 2
METLIFE, INC.
CONSOLIDATED BALANCE SHEETS 3
CONSOLIDATED STATEMENTS OF OPERATING EARNINGS 4
TOTAL COMPANY HEADCOUNT 5
CONSOLIDATING BALANCE SHEET 6
CONSOLIDATING STATEMENT OF OPERATING EARNINGS 7
INSURANCE OPERATIONS
CONSOLIDATED STATEMENTS OF OPERATING EARNINGS 11
CONSOLIDATING STATEMENT OF OPERATING EARNINGS 12
SUMMARY OF SEGMENT OPERATING EARNINGS 16
INSTITUTIONAL OPERATIONS
STATEMENTS OF OPERATING EARNINGS 17
PREMIUMS, FEES AND OTHER REVENUES BY PRODUCT AND ADDITIONAL STATISTICAL INFORMATION 21
FUTURE POLICY BENEFITS AND POLICYHOLDER ACCOUNT BALANCES AND
SEPARATE ACCOUNT LIABILITIES 22
OTHER EXPENSES BY MAJOR CATEGORY 23
SPREADS BY PRODUCT 24
INDIVIDUAL OPERATIONS
STATEMENTS OF OPERATING EARNINGS 25
PREMIUMS AND DEPOSITS BY PRODUCT AND MANUFACTURER AND MUTUAL FUND SALES 30
ADDITIONAL STATISTICAL INFORMATION 31
FUTURE POLICY BENEFITS AND POLICYHOLDER ACCOUNT BALANCES AND
SEPARATE ACCOUNT LIABILITIES 32
INSURANCE EXPENSES AND OTHER EXPENSES BY MAJOR CATEGORY 33
SPREADS BY PRODUCT 34
AUTO & HOME OPERATIONS
STATEMENTS OF OPERATING EARNINGS 35
WRITTEN PREMIUMS BY PRODUCT AND SELECTED FINANCIAL INFORMATION AND SUPPLEMENTAL DATA 39
INTERNATIONAL OPERATIONS
STATEMENTS OF OPERATING EARNINGS 40
REINSURANCE OPERATIONS
STATEMENTS OF OPERATING EARNINGS 41
PRE-TAX AND PRE-MINORITY INTEREST OPERATING EARNINGS BY REGION AND RESERVES BY REGION 42
ASSET MANAGEMENT OPERATIONS
STATEMENTS OF OPERATING EARNINGS
CHANGE IN ASSETS UNDER MANAGEMENT AND COMPOSITION OF ASSETS UNDER MANAGEMENT 43
44
CORPORATE, OTHER & ELIMINATIONS
STATEMENTS OF OPERATING EARNINGS 45
METLIFE, INC.
INVESTMENT RESULTS BY ASSET CATEGORY AND ANNUALIZED YIELDS 46
FIXED MATURITIES AND EQUITY SECURITIES GROSS UNREALIZED GAINS AND LOSSES AGING SCHEDULE 48
SUMMARY OF FIXED MATURITIES BY SECTOR AND BY QUALITY DISTRIBUTION, AND
SUMMARY OF COMMERCIAL MORTGAGE LOANS BY REGION AND PROPERTY TYPE 49
SUMMARY OF REAL ESTATE, SUMMARY OF MORTGAGES & OTHER LOANS AND DISTRIBUTION OF
ASSETS UNDER MANAGEMENT 50
OTHER INFORMATION
COMPANY RATINGS 51
NOTE:
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The Quarterly Financial Supplement ("QFS") includes financial measures,
operating earnings and operating earnings per diluted share, that are not based
on generally accepted accounting principles ("GAAP"). Operating earnings is
defined as GAAP net income excluding certain net investment gains and losses,
net of income taxes, adjustments related to investment gains and losses, net of
income taxes, and the impact from the cumulative effect of a change in
accounting, net of income taxes. Discounted operations and
scheduled settlement payments on derivative instruments not qualifying for hedge
accounting treatment are included in operating earnings. Operating earnings per
diluted share is calculated by dividing operating earnings as defined above by
the number of weighted average diluted shares outstanding for the period
indicated. MetLife uses operating earnings and operating earnings per diluted
share in analyzing its performance; it believes that these measures enhance the
understanding and comparability of its performance by excluding the net effect
of investment gains and losses, net of income taxes, and adjustments related to
net investment gains and losses, net of income taxes, both of which can
fluctuate significantly from period to period, as well as the impact of the
cumulative effect of a change in accounting, net of income taxes, thereby
highlighting the results from operations and the underlying profitability
drivers of the business. Operating earnings and operating earnings per diluted
share should not be viewed as substitutes for GAAP net income and GAAP net
income per diluted share, respectively. Reconciliations of operating earnings to
GAAP net income and operating earnings per diluted share to GAAP net income per
diluted share, the most directly comparable GAAP measures, are included in the
QFS and in MetLife's earnings press release, dated February 9, 2005, for the
quarter ended December 31, 2004, which are available at www.metlife.com.
1
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CORPORATE OVERVIEW
Unaudited (Dollars and shares in millions, except per share data)
For the Three Months Ended
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December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31,
2004 2004 2004 2004 2003 2003 2003 2003
-------------------------------------------------------------------------------------------------
Net income (1) $511 $695 $954(8) $598 $701 $574 $580 $362
Net investment gains
(losses) (214) 178 157 123 139 (151) (54) (170)
Minority interest - net
investment gains (losses) 5 2 (8) (8) (9) (2) (2) 4
Net investment gains
(losses) tax benefit
(provision) 71 (62) (47) (39) (58) 85 16 57
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Net investment gains (losses), net
of income taxes (2) (3) (12) (138) 118 102 76 72 (68) (40) (109)
Adjustments related to
policyholder benefits and
dividends (9) (74) 116 31 132 29 (5) 28
Adjustments related to other
expenses 5 6 (5) (17) 6 10 5 10
Adjustments related to tax
benefit (provision) 1 24 (39) (5) (48) (13) 0 (13)
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Adjustments related to net
investment gains (losses), net
of income taxes (4) (3) (44) 72 9 90 26 0 25
Cumulative effect of a change in
accounting, net of income
taxes (5) 0 0 0 (86) (26) 0 0 0
-------------------------------------------------------------------------------------------------
Operating earnings $652 $621(7) $780(8) $599 $565 $616(9) $620(10) $446
=================================================================================================
Net income per share - diluted $0.68 $0.92 $1.26 $0.79 $0.92 $0.75 $0.79 $0.47(11)
Net investment gains (losses), net
of income taxes (0.19) 0.16 0.13 0.10 0.09 (0.09) (0.05) (0.15)
Adjustments related to net
investment gains (losses),
net of income taxes 0.00 (0.06) 0.09 0.01 0.12 0.03 0.00 0.03
Cumulative effect of a change in
accounting, net of income
taxes 0.00 0.00 0.00 (0.11) (0.03) 0.00 0.00 0.00
Impact of conversion of securities 0.00 0.00 0.00 0.00 0.00 0.00 0.00 (0.03)
-------------------------------------------------------------------------------------------------
Operating earnings per share
- diluted $0.87 $0.82 $1.03 $0.79 $0.74 $0.81 $0.84 $0.62
=================================================================================================
Weighted average common shares
outstanding - diluted 747.7 753.4 758.0 760.3 761.3 760.9 731.3 722.4
Book value per common share
(actual shares outstanding) $31.16 $30.86 $28.28 $29.48 $27.93 $27.50 $27.13 $25.76
Book value per common share,
excluding accumulated other
comprehensive income (actual
shares outstanding) $27.13 $27.11 $25.99 $24.93 $24.24 $23.54 $22.78 $22.45
Book value per common share
- diluted $30.53 $30.49 $27.98 $29.29 $27.78 $27.47 $28.20 $24.97
Book value per common share,
excluding accumulated other
comprehensive income
- diluted $26.57 $26.79 $25.72 $24.76 $24.11 $23.52 $23.68 $21.77
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At or for the Three Months Ended
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December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31,
2004 2004 2004 2004 2003 2003 2003 2003
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Shares outstanding, beginning of
period 744.5 750.0 755.4 757.2 760.2 760.2 700.4 700.3
Treasury stock (12.0) (5.5) (5.4) (1.8) (3.0) 0.0 59.8 0.1
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Shares outstanding, end of period 732.5 744.5 750.0 755.4 757.2 760.2 760.2 700.4
Weighted average common shares
outstanding - basic 741.1 748.0 753.3 756.5 759.0 760.1 731.3 700.3
Dilutive effect of convertible
securities 0.0 0.0 0.0 0.0 0.0 0.0 0.0 22.1
Dilutive effect of stock options 5.4 4.2 3.5 3.1 1.6 0.0 0.0 0.0
Dilutive effect of deferred stock
compensation 1.2 1.2 1.2 0.7 0.7 0.8 0.0 0.0
-------------------------------------------------------------------------------------------------
Weighted average common shares
outstanding - diluted 747.7 753.4 758.0 760.3 761.3 760.9 731.3 722.4
=================================================================================================
Policyholder Trust Shares 321.3 325.1 335.0 347.2 362.5 372.7 382.4 386.4
SUPPLEMENTAL DATA
Adjusted long-term debt to total
capital excluding accumulated
other comprehensive income (6) 25.2% 22.8% 21.9% 20.5% 21.3% 21.4% 22.0% 23.7%
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(1) Presentation of net income throughout the QFS differs from other public
filings with respect to discontinued operations and scheduled settlement
payments on derivatives not qualifying for hedge accounting treatment.
Presentation of discontinued operations in other public filings is in
accordance with the Statement of Financial Accounting Standards ("SFAS")
No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets.
Presentation of scheduled settlement payments on derivatives not
qualifying for hedge accounting treatment in other public filings is in
accordance with SFAS No. 133, Accounting for Derivative Instruments and
Hedging Activities ("SFAS 133").
(2) Net investment gains (losses), net of income taxes, excludes scheduled
settlement payments on derivative instruments not qualifying for hedge
accounting treatment of $2 million, $8 million, $14 million, $9 million,
$18 million, $22 million, $8 million and $5 million for the three months
ended December 31, 2004, September 30, 2004, June 30, 2004, March 31,
2004, December 31, 2003, September 30, 2003, June 30, 2003 and March 31,
2003, respectively. For QFS purposes, these settlements are included in
net investment income.
(3) Net investment gains (losses), net of income taxes, from real estate and
real estate joint ventures include discontinued operations of $2 million,
($10) million, $85 million, $13 million, $205 million, $4 million, $0
million, and $57 million for the three months ended December 31, 2004,
September 30, 2004, June 30, 2004, March 31, 2004, December 31, 2003,
September 30, 2003, June 30, 2003, and March 31, 2003, respectively.
(4) Adjustments related to net investment gains (losses), net of income taxes,
includes amortization of deferred policy acquisition costs, adjustments to
the policyholder dividend obligation, and amounts allocable to certain
participating contracts.
(5) The cumulative effect of a change in accounting, net of income taxes, for
the period ended March 31, 2004, is in accordance with AICPA Statement of
Position 03-1, Accounting and Reporting by Insurance Enterprises for
Certain Nontraditional Long-Duration Contracts and for Separate Accounts.
In September 2004, an AICPA Technical Practice Aid ("SOP 03-1 Technical
Practice Aid") was issued which clarifies recognition of certain
liabilities to comply with SOP 03-1. The cumulative effect of a change in
accounting, net of income taxes, for the three months ended March 31, 2004
was adjusted by a $72 million benefit in accordance with the SOP 03-1
Technical Practice Aid. For the period ended December 31, 2003, the
cumulative effect of a change in accounting, net of income taxes, is in
accordance with FASB Implementation Issue No. B36, Embedded Derivatives:
Modified Coinsurance Arrangements and Debt Instruments That Incorporate
Credit Risk Exposures That Are Unrelated or Only Partially Related to the
Creditworthiness of the Obligor under Those Instruments.
(6) Adjusted long-term debt at December 31, 2004, September 30, 2004, June 30,
2004, March 31, 2004, December 31, 2003, September 30, 2003, June 30,
2003, and March 31, 2003 consists of $6,669 million, $6,004 million,
$5,503 million, $4,907 million, $4,909 million, $4,912 million, $4,917
million and $4,919 million of long-term debt, respectively, and $111
million, $36 million, $36 million, $36 million, $142 million, $36 million,
$35 million, and $49 million of short-term debt, respectively. Total
capital is defined as equity less accumulated other comprehensive income
plus adjusted long-term debt and company obligated mandatorily redeemable
capital securities.
(7) Operating earnings for the three months ended September 30, 2004 includes
a $9 million benefit ($0.01 per diluted share), from a revision of the
estimate of income taxes for 2003.
(8) Operating earnings and net income for the three months ended June 30, 2004
includes a $32 million charge, net of income taxes ($0.04 per diluted
share), from a contribution to the MetLife Foundation made by Metropolitan
Life Insurance Company, a $31 million benefit, net of income taxes ($0.04
per diluted share), from a reduction of a previously established premium
tax liability and a $105 million benefit ($0.14 per diluted share) related
to a previously disclosed resolution of an IRS audit.
(9) Operating earnings for the three months ended September 30, 2003 includes
a $28 million benefit, net of income taxes ($0.04 per diluted share), from
a reduction of a previously established liability related to the Company's
race-conscious underwriting settlement and a $36 million benefit ($0.05
per diluted share), from a revision of the estimate of income taxes for
2002.
(10) Operating earnings for the three months ended June 30, 2003 includes a $64
million benefit, net of income taxes ($0.09 per diluted share), from a
reduction of a previously established liability related to the Company's
race-conscious underwriting settlement, $62 million of earnings, net of
income taxes ($0.08 per diluted share), from the merger of the Company's
Mexican operations and a reduction in policyholder liabilities resulting
from a change in reserve methodology, and a $31 million charge, net of
income taxes ($0.05 per diluted share), related to previously deferred
expenses.
(11) Accounting standards require gains or losses resulting from the redemption
of a subsidiary's redeemable preferred stock be excluded from the income
statement. Rather, such gains or losses are recorded in capital in excess
of par value on the balance sheet. However, such gains or losses are
included in the calculation of net income per share. During the first
quarter of 2003, net income per share includes a $21 million charge, net
of income taxes ($0.03 per diluted share), associated with the Company's
redemption of MetLife Capital Trust I's mandatorily redeemable capital
securities.
(12) Net investment gains (losses), net of income taxes, for the three months
ended December 31, 2004 includes a loss of $17 million related to the
value of an embedded derivative associated with a funds withheld
reinsurance treaty that was converted to a coinsurance agreement.
2
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METLIFE, INC.
CONSOLIDATED BALANCE SHEETS
As of
----------------------------------------------------------------------------------------------
December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31,
Unaudited (Dollars in millions) 2004 2004 2004 2004 2003 2003 2003 2003
- ------------------------------------------------------------------------------------------------------------------------------------
ASSETS (1)
Fixed maturities available-for-
sale, at fair value $176,763 $176,091 $170,192 $174,100 $167,752 $159,940 $158,822 $144,341
Equity securities, at fair value 2,237 1,897 1,744 1,756 1,598 1,659 1,617 1,474
Mortgage and other loans 32,406 29,620 28,118 26,562 26,249 25,535 25,288 25,046
Real estate and real estate joint
ventures 4,329 4,281 4,154 4,699 4,680 5,255 4,491 4,475
Policy loans 8,899 8,801 8,766 8,758 8,749 8,668 8,627 8,615
Other limited partnership
interests 2,907 2,846 2,805 2,549 2,600 2,559 2,500 2,393
Short-term investments 2,696 2,464 2,089 1,998 1,826 2,718 2,640 3,188
Other invested assets 4,946 4,405 5,119 5,094 4,645 4,617 4,261 3,948
----------------------------------------------------------------------------------------------
Investments 235,183 230,405 222,987 225,516 218,099 210,951 208,246 193,480
Cash and cash equivalents 4,106 3,631 4,459 3,146 3,733 5,372 5,714 4,938
Accrued investment income 2,338 2,491 2,330 2,337 2,186 2,265 2,241 2,179
Premiums and other receivables 6,650 7,122 7,406 7,412 7,047 7,107 7,486 6,768
Deferred policy acquisition costs 14,336 13,920 13,828 12,961 12,943 12,367 11,899 11,889
Goodwill and other intangible assets 646 643 638 638 643 654 652 745
Other 6,701 6,786 6,617 6,666 6,434 6,269 6,123 6,303
Separate account assets 86,769 81,181 79,747 78,336 75,756 69,998 67,460 60,620
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$356,729 $346,179 $338,012 $337,012 $326,841 $314,983 $309,821 $286,922
==============================================================================================
LIABILITIES AND EQUITY (1)
LIABILITIES
- -----------
Future policy benefits $102,402 $100,357 $97,061 $99,000 $96,278 $95,095 $95,360 $92,744
Policyholder account balances 83,570 81,798 79,943 77,981 75,901 74,857 72,207 69,060
Short-term debt 1,464 1,566 3,218 3,068 3,642 2,935 3,443 2,441
Long-term debt 7,412 6,695 6,226 5,707 5,703 5,703 5,562 5,481
Shares subject to mandatory
redemption 278 277 277 277 277 277 0 0
Payables under securities loaned
transactions 28,678 28,662 28,132 28,045 27,083 24,666 23,028 19,566
Other 23,331 22,668 22,010 22,250 21,052 20,547 21,861 18,694
Separate account liabilities 86,769 81,181 79,747 78,336 75,756 69,998 67,460 60,620
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333,904 323,204 316,614 314,664 305,692 294,078 288,921 268,606
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Company-obligated mandatorily
redeemable capital securities 0 0 0 0 0 0 277 277
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EQUITY
- ------
Common stock, at par value 8 8 8 8 8 8 8 8
Capital in excess of par value 15,037 15,027 15,013 15,001 14,991 14,960 14,956 14,952
Retained earnings 6,609 6,440 5,745 4,791 4,193 3,667 3,093 3,169
Treasury stock (1,785) (1,294) (1,085) (896) (835) (739) (740) (2,402)
Accumulated other comprehensive
income 2,956 2,794 1,717 3,444 2,792 3,009 3,306 2,312
----------------------------------------------------------------------------------------------
22,825 22,975 21,398 22,348 21,149 20,905 20,623 18,039
----------------------------------------------------------------------------------------------
$356,729 $346,179 $338,012 $337,012 $326,841 $314,983 $309,821 $286,922
==============================================================================================
(1) Certain amounts in prior periods presented throughout the QFS have been
reclassified to conform with current period presentation.
3
(METLIFE LOGO)
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METLIFE, INC.
CONSOLIDATED STATEMENTS OF OPERATING EARNINGS
For the Three Months Ended
---------------------------------------------------------------------------------------------
December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31,
Unaudited (Dollars in millions) 2004 2004 2004 2004 2003 2003 2003 2003
- ------------------------------------------------------------------------------------------------------------------------------------
REVENUES (1)
Premiums $5,882 $5,736 $5,331 $5,367 $5,679 $5,079 $5,083 $4,832
Universal life and investment-type
product policy fees 757 738 726 679 698 623 603 572
Investment income, net 3,348 3,108 3,157 3,001 3,070 2,914 2,889 2,899
Other revenues 396 347 361 359 360 340 361 303
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10,383 9,929 9,575 9,406 9,807 8,956 8,936 8,606
---------------------------------------------------------------------------------------------
EXPENSES (1)
Policyholder benefits and dividends 6,381 6,318 5,913 5,928 6,244 5,651 5,472 5,456
Interest credited to policyholder
account balances 778 739 743 738 760 767 761 747
Interest expense 116 113 109 99 109 104 112 116
Other expenses 2,163 1,875 1,807 1,768 1,903 1,590 1,738 1,642
---------------------------------------------------------------------------------------------
9,438 9,045 8,572 8,533 9,016 8,112 8,083 7,961
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Operating earnings before
provision for income taxes 945 884 1,003 873 791 844 853 645
Provision for income taxes 293 263 223 274 226 228 233 199
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OPERATING EARNINGS $652 $621(4) $780 $599(5) $565 $616(6) $620(7) $446
=============================================================================================
NET INCOME RECONCILIATION (2)
- -----------------------------
Operating earnings $652 $621 $780 $599 $565 $616 $620 $446
Net investment gains (losses) (214) 178 157 123 139 (151) (54) (170)
Minority interest - net
investment gains (losses) 5 2 (8) (8) (9) (2) (2) 4
Net investment gains (losses)
tax benefit (provision) 71 (62) (47) (39) (58) 85 16 57
---------------------------------------------------------------------------------------------
Net investment gains (losses), net
of income taxes (138) 118 102 76 72 (68) (40) (109)
Adjustments related to
policyholder benefits and
dividends (9) (74) 116 31 132 29 (5) 28
Adjustments related to other
expenses 5 6 (5) (17) 6 10 5 10
Adjustments related to tax
benefit (provision) 1 24 (39) (5) (48) (13) 0 (13)
---------------------------------------------------------------------------------------------
Adjustments related to net investment
gains (losses), net of income
taxes (3) (44) 72 9 90 26 0 25
Cumulative effect of a change in
accounting, net of income
taxes (3) 0 0 0 (86) (26) 0 0 0
---------------------------------------------------------------------------------------------
Net income $511 $695 $954 $598 $701 $574 $580 $362
=============================================================================================
For the Year-to-Date Period Ended
------------------------------------------------------------------------------
December 31, September 30, June 30, December 31, September 30, June 30,
Unaudited (Dollars in millions) 2004 2004 2004 2003 2003 2003
- ---------------------------------------------------------------------------------------------------------------------
REVENUES (1)
Premiums $22,316 $16,434 $10,698 $20,673 $14,994 $9,915
Universal life and investment-type
product policy fees 2,900 2,143 1,405 2,496 1,798 1,175
Investment income, net 12,614 9,266 6,158 11,772 8,702 5,788
Other revenues 1,463 1,067 720 1,364 1,004 664
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39,293 28,910 18,981 36,305 26,498 17,542
------------------------------------------------------------------------------
EXPENSES (1)
Policyholder benefits and dividends 24,540 18,159 11,841 22,823 16,579 10,928
Interest credited to policyholder
account balances 2,998 2,220 1,481 3,035 2,275 1,508
Interest expense 437 321 208 441 332 228
Other expenses 7,613 5,450 3,575 6,873 4,970 3,380
------------------------------------------------------------------------------
35,588 26,150 17,105 33,172 24,156 16,044
------------------------------------------------------------------------------
Operating earnings before
provision for income taxes 3,705 2,760 1,876 3,133 2,342 1,498
Provision for income taxes 1,053 760 497 886 660 432
------------------------------------------------------------------------------
OPERATING EARNINGS $2,652 $2,000(4) $1,379(5) $2,247 $1,682(6) $1,066(7)
==============================================================================
NET INCOME RECONCILIATION (2)
- -----------------------------
Operating earnings $2,652 $2,000 $1,379 $2,247 $1,682 $1,066
Net investment gains (losses) 244 458 280 (236) (375) (224)
Minority interest - net
investment gains (losses) (9) (14) (16) (9) 0 2
Net investment gains (losses)
tax benefit (provision) (77) (148) (86) 100 158 73
------------------------------------------------------------------------------
Net investment gains (losses), net
of income taxes 158 296 178 (145) (217) (149)
Adjustments related to
policyholder benefits and
dividends 64 73 147 184 52 23
Adjustments related to other
expenses (11) (16) (22) 31 25 15
Adjustments related to tax
benefit (provision) (19) (20) (44) (74) (26) (13)
------------------------------------------------------------------------------
Adjustments related to net investment
gains (losses), net of income
taxes 34 37 81 141 51 25
Cumulative effect of a change in
accounting, net of income
taxes (3) (86) (86) (86) (26) 0 0
------------------------------------------------------------------------------
Net income $2,758 $2,247 $1,552 $2,217 $1,516 $942
==============================================================================
(1) Certain amounts in prior periods presented throughout the QFS have been
reclassified to conform with current period presentation.
(2) Adjustments related to net investment gains (losses), net of income taxes,
includes amortization of deferred policy acquisition costs, adjustments to
the policyholder dividend obligation, and amounts allocable to certain
participating contracts.
(3) The cumulative effect of a change in accounting, net of income taxes, for
the period ended March 31, 2004, is in accordance with AICPA Statement of
Position 03-1, Accounting and Reporting by Insurance Enterprises for
Certain Nontraditional Long-Duration Contracts and for Separate Accounts.
In September 2004, an AICPA Technical Practice Aid ("SOP 03-1 Technical
Practice Aid") was issued which clarifies recognition of certain
liabilities to comply with SOP 03-1. For the period ended December 31,
2003, the cumulative effect of a change in accounting, net of income
taxes, is in accordance with FASB Implementation Issue No. B36, Embedded
Derivatives: Modified Coinsurance Arrangements and Debt Instruments That
Incorporate Credit Risk Exposures That Are Unrelated or Only Partially
Related to the Creditworthiness of the Obligor under Those Instruments.
(4) Operating earnings for the three months ended September 30, 2004 includes
a $9 million benefit, from a revision of the estimate of income taxes for
2003.
(5) Operating earnings and net income for the three months ended June 30, 2004
includes a $32 million charge, net of income taxes, from a contribution to
the MetLife Foundation made by Metropolitan Life Insurance Company, a $31
million benefit, net of income taxes, from a reduction of a previously
established premium tax liability and a $105 million benefit related to a
previously disclosed resolution of an IRS audit.
(6) Operating earnings for the period ended September 30, 2003 includes a $28
million benefit, net of income taxes, from a reduction of a previously
established liability related to the Company's race-conscious underwriting
settlement and $36 million benefit from a revision of the estimate of
income taxes for 2002.
(7) Operating earnings for the period ended June 30, 2003 includes a $64
million benefit, net of income taxes, from a reduction of a previously
established liability related to the Company's race-conscious underwriting
settlement, $62 million of earnings, net of income taxes, from the merger
of the Company's Mexican operations and a reduction in policyholder
liabilities resulting from a change in reserve methodology, and a $31
million charge, net of income taxes, related to previously deferred
expenses.
4
(METLIFE LOGO)
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METLIFE, INC.
TOTAL COMPANY HEADCOUNT
As of
-----------------------------------------------------------------------------------------------
December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31,
2004 2004 2004 2004 2003 2003 2003 2003
-----------------------------------------------------------------------------------------------
TOTAL COMPANY HEADCOUNT (1) (2)
DOMESTIC
SALES
Individual 10,790 11,034 11,045 10,994 11,196 11,590 11,954 12,035
Institutional 762 779 794 786 789 797 804 730
Auto & Home 87 80 88 88 79 77 78 83
Asset Management 66 72 77 66 69 68 69 72
-----------------------------------------------------------------------------------------------
Total domestic sales 11,705 11,965 12,004 11,934 12,133 12,532 12,905 12,920
OTHER THAN SALES
Individual (3) 4,632 4,558 4,531 4,488 4,542 4,634 4,675 4,761
Institutional 5,773 5,988 5,781 5,666 5,573 5,493 5,578 5,577
Auto & Home 3,391 3,388 3,348 3,365 3,376 3,424 3,422 3,450
Reinsurance 733 713 706 682 656 642 637 630
Asset Management 842 861 861 870 960 989 996 992
Operations 2,032 1,979 1,997 2,018 2,028 1,980 1,922 1,938
Technology 3,577 3,531 3,526 3,524 3,422 3,422 3,451 3,494
Corporate 3,804 3,714 3,665 3,647 3,548 3,562 3,511 3,545
-----------------------------------------------------------------------------------------------
Total domestic other than
sales 24,784 24,732 24,415 24,260 24,105 24,146 24,192 24,387
-----------------------------------------------------------------------------------------------
TOTAL DOMESTIC HEADCOUNT 36,489 36,697 36,419 36,194 36,238 36,678 37,097 37,307
-----------------------------------------------------------------------------------------------
INTERNATIONAL
SALES
Professional sales 3,491 3,222 1,810 1,602 1,602 1,240 1,240 1,146
Other 10,883 10,240 10,521 9,707 8,808 8,048 7,932 7,894
Other than sales 3,057 3,001 2,874 2,762 2,837 2,821 2,789 2,761
-----------------------------------------------------------------------------------------------
TOTAL INTERNATIONAL HEADCOUNT 17,431 16,463 15,205 14,071 13,247 12,109 11,961 11,801
-----------------------------------------------------------------------------------------------
TOTAL COMPANY HEADCOUNT 53,920 53,160 51,624 50,265 49,485 48,787 49,058 49,108
===============================================================================================
(1) Certain amounts in prior periods presented throughout the QFS have been
reclassified to conform with current period presentation.
(2) In July 2004, the Client Service organization moved from Operations to
Individual.
(3) Excludes certain employees of development agencies that are temporarily
considered Metlife employees.
5
(METLIFE LOGO)
- --------------------------------------------------------------------------------
METLIFE, INC.
CONSOLIDATING BALANCE SHEET
AT DECEMBER 31, 2004
Insurance Reinsurance Asset Corporate, Other
Unaudited (Dollars in millions) Consolidated Operations Operations Management & Eliminations
- ------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Total investments $235,183 $204,848 $10,407 $364 $19,564
Deferred policy acquisition costs 14,336 11,717 2,620 0 (1)
Goodwill and other intangible assets 646 525 99 18 4
Other 19,795 15,109 1,363 170 3,153
Separate account assets 86,769 86,769 14 0 (14)
--------------------------------------------------------------------------------
$356,729 $318,968 $14,503 $552 $22,706
================================================================================
LIABILITIES AND EQUITY
LIABILITIES
- -----------
Future policy benefits $102,402 $99,311 $4,511 $0 ($1,420)
Policyholder account balances 83,570 78,673 4,901 0 (4)
Debt 8,876 82 406 19 8,369
Shares subject to mandatory redemption 278 0 158 0 120
Payables under securities loaned transactions 28,678 22,402 0 0 6,276
Other 23,331 14,057 3,610 223 5,441
Separate account liabilities 86,769 86,769 14 0 (14)
--------------------------------------------------------------------------------
333,904 301,294 13,600 242 18,768
EQUITY
- ------
Common stock, at par value 8 0 0 0 8
Allocated equity (1) 21,646 15,173 703 300 5,470
Treasury stock (1,785) 0 0 0 (1,785)
Accumulated other comprehensive income 2,956 2,501 200 10 245
--------------------------------------------------------------------------------
22,825 17,674 903 310 3,938
--------------------------------------------------------------------------------
$356,729 $318,968 $14,503 $552 $22,706
================================================================================
(1) Allocated equity includes additional paid-in capital and retained
earnings.
6
(METLIFE LOGO)
- --------------------------------------------------------------------------------
METLIFE, INC.
CONSOLIDATING STATEMENT OF OPERATING EARNINGS
FOR THE THREE MONTHS ENDED DECEMBER 31, 2004
Insurance Reinsurance Asset Corporate, Other
Unaudited (Dollars in millions) Consolidated Operations Operations Management & Eliminations
- ------------------------------------------------------------------------------------------------------------------------------------
REVENUES
Premiums $5,882 $4,959 $922 $0 $1
Universal life and investment-type product policy
fees 757 757 0 0 0
Investment income, net 3,348 2,947 204 19 178
Other revenues 396 294 16 86 0
----------------------------------------------------------------------------
10,383 8,957 1,142 105 179
----------------------------------------------------------------------------
EXPENSES
Policyholder benefits and dividends 6,381 5,618 760 0 3
Interest credited to policyholder account
balances 778 717 61 0 0
Capitalization of deferred policy acquisition
costs (733) (585) (148) 0 0
Amortization of deferred policy acquisition costs 494 410 84 0 0
Other expenses 2,518 1,912 339 110 157
----------------------------------------------------------------------------
9,438 8,072 1,096 110 160
----------------------------------------------------------------------------
Operating earnings before provision (benefit) for
income taxes 945 885 46 (5) 19
Provision (benefit) for income taxes 293 288 15 (2) (8)
----------------------------------------------------------------------------
OPERATING EARNINGS $652 $597 $31 ($3) $27
============================================================================
NET INCOME RECONCILIATION (1)
- ----------------------------------
Operating earnings $652 $597 $31 ($3) $27
Net investment gains (losses) (214) (126) (2) 0 (86)
Minority interest - net investment gains
(losses) 5 4 1 0 0
Net investment gains (losses) tax benefit
(provision) 71 37 1 0 33
----------------------------------------------------------------------------
Net investment gains (losses), net of income taxes (138) (85) 0 0 (53)
Adjustments related to policyholder
benefits and dividends (9) (9) 0 0 0
Adjustments related to other expenses 5 4 1 0 0
Adjustments related to tax benefit
(provision) 1 2 0 0 (1)
----------------------------------------------------------------------------
Adjustments related to net investment gains
(losses), net of income taxes (3) (3) 1 0 (1)
Cumulative effect of a change in accounting, net
of income taxes 0 0 0 0 0
----------------------------------------------------------------------------
Net income $511 $509 $32 ($3) ($27)
============================================================================
(1) Adjustments related to net investment gains (losses), net of income taxes,
includes amortization of deferred policy acquisition costs, adjustments to
the policyholder dividend obligation, and amounts allocable to certain
participating contracts.
7
(METLIFE LOGO)
- --------------------------------------------------------------------------------
METLIFE, INC.
CONSOLIDATING STATEMENT OF OPERATING EARNINGS
FOR THE THREE MONTHS ENDED DECEMBER 31, 2003
Insurance Reinsurance Asset Corporate, Other
Unaudited (Dollars in millions) Consolidated Operations Operations Management & Eliminations
- ------------------------------------------------------------------------------------------------------------------------------------
REVENUES
Premiums $5,679 $4,735 $949 $0 ($5)
Universal life and investment-type product policy fees 698 698 0 0 0
Investment income, net 3,070 2,856 120 17 77
Other revenues 360 305 14 47 (6)
---------------------------------------------------------------------------
9,807 8,594 1,083 64 66
---------------------------------------------------------------------------
EXPENSES
Policyholder benefits and dividends 6,244 5,456 788 0 0
Interest credited to policyholder account balances 760 711 49 0 0
Capitalization of deferred policy acquisition costs (841) (531) (310) 0 0
Amortization of deferred policy acquisition costs 500 349 151 0 0
Other expenses 2,353 1,813 374 54 112
---------------------------------------------------------------------------
9,016 7,798 1,052 54 112
---------------------------------------------------------------------------
Operating earnings before provision (benefit) for
income taxes 791 796 31 10 (46)
Provision (benefit) for income taxes 226 259 11 4 (48)
---------------------------------------------------------------------------
OPERATING EARNINGS $565 $537 $20 $6 $2
===========================================================================
NET INCOME RECONCILIATION (1)
- -----------------------------
Operating earnings $565 $537 $20 $6 $2
Net investment gains (losses) 139 (305) 25 (1) 420
Minority interest - net investment gains
(losses) (9) 0 (9) 0 0
Net investment gains (losses) tax benefit
(provision) (58) 104 (5) 0 (157)
---------------------------------------------------------------------------
Net investment gains (losses), net of income taxes 72 (201) 11 (1) 263
Adjustments related to policyholder benefits and
dividends 132 178 0 0 (46)
Adjustments related to other expenses 6 8 0 0 (2)
Adjustments related to tax benefit (provision) (48) (65) 0 0 17
---------------------------------------------------------------------------
Adjustments related to net investment gains (losses),
net of income taxes 90 121 0 0 (31)
Cumulative effect of a change in accounting, net of
income taxes (26) (26) 0 0 0
---------------------------------------------------------------------------
Net income $701 $431 $31 $5 $234
===========================================================================
(1) Adjustments related to net investment gains (losses), net of income taxes,
includes amortization of deferred policy acquisition costs, adjustments to
the policyholder dividend obligation, and amounts allocable to certain
participating contracts.
8
(METLIFE LOGO)
- --------------------------------------------------------------------------------
METLIFE, INC.
CONSOLIDATING STATEMENT OF OPERATING EARNINGS
FOR THE YEAR ENDED DECEMBER 31, 2004
Insurance Reinsurance Asset Corporate, Other
Unaudited (Dollars in millions) Consolidated Operations Operations Management & Eliminations
- ------------------------------------------------------------------------------------------------------------------------------------
REVENUES
Premiums $22,316 $18,958 $3,367 $0 ($9)
Universal life and investment-type product policy fees 2,900 2,898 0 0 2
Investment income, net 12,614 11,425 614 73 502
Other revenues 1,463 1,134 57 265 7
---------------------------------------------------------------------------
39,293 34,415 4,038 338 502
---------------------------------------------------------------------------
EXPENSES
Policyholder benefits and dividends 24,540 21,787 2,745 0 8
Interest credited to policyholder account balances 2,998 2,786 212 0 0
Capitalization of deferred policy acquisition costs (3,101) (2,324) (777) 0 0
Amortization of deferred policy acquisition costs 1,895 1,477 418 0 0
Other expenses 9,256 7,107 1,308 296 545
---------------------------------------------------------------------------
35,588 30,833 3,906 296 553
---------------------------------------------------------------------------
Operating earnings before provision (benefit) for
income taxes 3,705 3,582 132 42 (51)
Provision (benefit) for income taxes 1,053 1,171 46 17 (181)
---------------------------------------------------------------------------
OPERATING EARNINGS $2,652(4) $2,411(5) $86 $25 $130(6)
===========================================================================
OPERATING RETURN ON EQUITY ("ROE") (1) 13.9% 15.9% 12.2% 8.3%
OPERATING ROE EXCLUDING FOOTNOTE ITEMS BELOW 13.3%(4) 15.7%(5) 12.2% 8.3%
NET INCOME RECONCILIATION (2)
- -----------------------------
Operating earnings $2,652 $2,411 $86 $25 $130
Net investment gains (losses) 244 226 34 0 (16)
Minority interest - net investment gains
(losses) (9) 4 (13) 0 0
Net investment gains (losses) tax benefit
(provision) (77) (74) (6) 0 3
---------------------------------------------------------------------------
Net investment gains (losses), net of income taxes 158 156 15 0 (13)
Adjustments related to policyholder benefits
and dividends 64 64 0 0 0
Adjustments related to other expenses (11) (9) (2) 0 0
Adjustments related to tax benefit (provision) (19) (20) 1 0 0
---------------------------------------------------------------------------
Adjustments related to net investment gains (losses),
net of income taxes 34 35 (1) 0 0
Cumulative effect of a change in accounting, net of
income taxes (3) (86) (90) 5 0 (1)
---------------------------------------------------------------------------
Net income $2,758 $2,512 $105 $25 $116
===========================================================================
(1) Consolidated operating return on equity is defined as operating earnings
divided by average GAAP equity excluding accumulated other comprehensive
income. Segment operating return on equity is defined as segment operating
earnings divided by allocated equity.
(2) Adjustments related to net investment gains (losses), net of income taxes,
includes amortization of deferred policy acquisition costs, adjustments to
the policyholder dividend obligation, and amounts allocable to certain
participating contracts.
(3) The cumulative effect of a change in accounting, net of income taxes, for
the period ended December 31, 2004, is in accordance with AICPA Statement
of Position 03-1, Accounting and Reporting by Insurance Enterprises for
Certain Nontraditional Long-Duration Contracts and for Separate Accounts.
(4) Consolidated operating earnings for the year ended December 31, 2004
includes a $9 million benefit from a revision of the estimate of income
taxes for 2003, $32 million charge, net of income taxes, from a
contribution to the MetLife Foundation made by Metropolitan Life Insurance
Company, a $31 million benefit, net of income taxes, from a reduction of a
previously established premium tax liability and a $105 million benefit
related to a previously disclosed resolution of an IRS audit.
(5) Insurance Operations operating earnings for the year ended December 31,
2004 includes a $31 million benefit, net of income taxes, from a reduction
of a previously established premium tax liability.
(6) Corporate, Other & Eliminations operating earnings for the year ended
December 31, 2004 includes a $9 million benefit from a revision of the
estimate of income taxes for 2003, $32 million charge, net of income
taxes, from a contribution to the MetLife Foundation made by Metropolitan
Life Insurance Company, and a $105 million benefit related to a previously
disclosed resolution of an IRS audit.
9
(METLIFE LOGO)
- --------------------------------------------------------------------------------
METLIFE, INC.
CONSOLIDATING STATEMENT OF OPERATING EARNINGS
FOR THE YEAR ENDED DECEMBER 31, 2003
Insurance Reinsurance Asset Corporate, Other
Unaudited (Dollars in millions) Consolidated Operations Operations Management & Eliminations
- ------------------------------------------------------------------------------------------------------------------------------------
REVENUES
Premiums $20,673 $18,023 $2,668 $0 ($18)
Universal life and investment-type product policy fees 2,496 2,496 0 0 0
Investment income, net 11,772 10,981 473 66 252
Other revenues 1,364 1,111 49 165 39
---------------------------------------------------------------------------
36,305 32,611 3,190 231 273
---------------------------------------------------------------------------
EXPENSES
Policyholder benefits and dividends 22,823 20,662 2,157 0 4
Interest credited to policyholder account balances 3,035 2,851 184 0 0
Capitalization of deferred policy acquisition costs (2,792) (2,026) (767) 0 1
Amortization of deferred policy acquisition costs 1,818 1,447 372 0 (1)
Other expenses 8,288 6,658 1,126 204 300
---------------------------------------------------------------------------
33,172 29,592 3,072 204 304
---------------------------------------------------------------------------
Operating earnings before provision (benefit) for
income taxes 3,133 3,019 118 27 (31)
Provision (benefit) for income taxes 886 976 41 11 (142)
---------------------------------------------------------------------------
OPERATING EARNINGS $2,247(4) $2,043(5) $77 $16 $111(6)
===========================================================================
OPERATING RETURN ON EQUITY ("ROE") (1) 13.3% 14.6% 12.5% 12.3%
OPERATING ROE EXCLUDING FOOTNOTE ITEMS BELOW 12.4%(4) 14.8%(5) 12.5% 12.3%
NET INCOME RECONCILIATION (2)
- -----------------------------
Operating earnings $2,247 $2,043 $77 $16 $111
Net investment gains (losses) (236) (595) 31 9 319
Minority interest - net investment gains (losses) (9) 0 (9) 0 0
Net investment gains (losses) tax benefit
(provision) 100 222 (7) (3) (112)
---------------------------------------------------------------------------
Net investment gains (losses), net of income taxes (145) (373) 15 6 207
Adjustments related to policyholder benefits and
dividends 184 230 0 0 (46)
Adjustments related to other expenses 31 33 0 0 (2)
Adjustments related to tax benefit (provision) (74) (92) 0 0 18
---------------------------------------------------------------------------
Adjustments related to net investment gains (losses),
net of income taxes 141 171 0 0 (30)
Cumulative effect of a change in accounting, net of
income taxes (3) (26) (26) 0 0 0
---------------------------------------------------------------------------
Net income $2,217 $1,815 $92 $22 $288
===========================================================================
(1) Consolidated operating return on equity is defined as operating earnings
divided by average GAAP equity excluding accumulated other comprehensive
income. Segment operating return on equity is defined as segment operating
earnings divided by allocated equity.
(2) Adjustments related to net investment gains (losses), net of income taxes,
includes amortization of deferred policy acquisition costs, adjustments to
the policyholder dividend obligation, and amounts allocable to certain
participating contracts.
(3) The cumulative effect of a change in accounting, net of income taxes, for
the period ended December 31, 2003, is in accordance with FASB
Implementation Issue No. B36, Embedded Derivatives: Modified Coinsurance
Arrangements and Debt Instruments That Incorporate Credit Risk Exposures
That Are Unrelated or Only Partially Related to the Creditworthiness of
the Obligor under Those Instruments.
(4) Consolidated operating earnings for the year ended December 31, 2003
includes a $92 million after-tax benefit from a reduction of a previously
established liability related to the Company's race conscious underwriting
settlement, $62 million of after-tax earnings from the merger of the
Company's Mexican operations and a reduction in policyholder liabilities
resulting from a change in reserve methodology, a $31 million after-tax
charge related to previously deferred expenses, and a $36 million benefit
from a revision of the estimate of income taxes for 2002.
(5) Insurance Operations operating earnings for the year ended December 31,
2003 includes $62 million of after-tax earnings from the merger of the
Company's Mexican operations and a reduction in policyholder liabilities
resulting from a change in reserve methodology, and a $31 million
after-tax charge related to previously deferred expenses.
(6) Corporate, Other & Eliminations operating earnings for the year ended
December 31, 2003 includes a $92 million after-tax benefit from a
reduction of a previously established liability to the Company's race
conscious underwriting settlement, and a $36 million benefit from a
revision of the estimate of income taxes for 2002.
10
(METLIFE LOGO)
- --------------------------------------------------------------------------------
INSURANCE OPERATIONS
CONSOLIDATED STATEMENTS OF OPERATING EARNINGS
For the Three Months Ended
-------------------------------------------------------------------------------------------------
December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31,
Unaudited (Dollars in millions) 2004 2004 2004 2004 2003 2003 2003 2003
- ------------------------------------------------------------------------------------------------------------------------------------
REVENUES
Premiums $4,959 $4,919 $4,528 $4,552 $4,735 $4,504 $4,500 $4,284
Universal life and investment-type
product policy fees 757 736 726 679 698 623 603 572
Investment income, net 2,947 2,834 2,858 2,786 2,856 2,711 2,710 2,704
Other revenues 294 271 275 294 305 270 291 245
-------------------------------------------------------------------------------------------------
8,957 8,760 8,387 8,311 8,594 8,108 8,104 7,805
-------------------------------------------------------------------------------------------------
EXPENSES
Policyholder benefits and
dividends 5,618 5,642 5,260 5,267 5,456 5,179 5,006 5,021
Interest credited to policyholder
account balances 717 691 691 687 711 720 716 704
Capitalization of deferred policy
acquisition costs (585) (557) (648) (534) (531) (517) (502) (476)
Amortization of deferred policy
acquisition costs 410 381 350 336 349 339 415 344
Other expenses 1,912 1,746 1,777 1,672 1,813 1,605 1,684 1,556
-------------------------------------------------------------------------------------------------
8,072 7,903 7,430 7,428 7,798 7,326 7,319 7,149
-------------------------------------------------------------------------------------------------
Operating earnings before
provision for income taxes 885 857 957 883 796 782 785 656
Provision for income taxes 288 283 311 289 259 268 230 219
-------------------------------------------------------------------------------------------------
OPERATING EARNINGS $597 $574 $646(4) $594 $537 $514 $555(5) $437
=================================================================================================
NET INCOME RECONCILIATION (2)
- -----------------------------
Operating earnings $597 $574 $646 $594 $537 $514 $555 $437
Net investment gains (losses) (126) 212 42 98 (305) (126) (23) (141)
Minority interest - net
investment gains (losses) 4 0 0 0 0 0 0 0
Net investment gains
(losses) tax benefit
(provision) 37 (71) (7) (33) 104 63 6 49
-------------------------------------------------------------------------------------------------
Net investment gains (losses), net
of income taxes (85) 141 35 65 (201) (63) (17) (92)
Adjustments related to
policyholder benefits and
dividends (9) (74) 116 31 178 29 (5) 28
Adjustments related to other
expenses 4 (8) 8 (13) 8 10 5 10
Adjustments related to tax
benefit (provision) 2 28 (44) (6) (65) (14) (1) (12)
-------------------------------------------------------------------------------------------------
Adjustments related to net
investment gains (losses), net
of income taxes (3) (54) 80 12 121 25 (1) 26
Cumulative effect of a change in
accounting, net of income
taxes (3) 0 0 0 (90) (26) 0 0 0
-------------------------------------------------------------------------------------------------
Net income $509 $661 $761 $581 $431 $476 $537 $371
=================================================================================================
For the Year-to-Date Period Ended
---------------------------------------------------------------------------------
December 31, September 30, June 30, December 31, September 30, June 30,
Unaudited (Dollars in millions) 2004 2004 2004 2003 2003 2003
- ----------------------------------- ---------------------------------------------------------------------------------
REVENUES
Premiums $18,958 $13,999 $9,080 $18,023 $13,288 $8,784
Universal life and investment-type
product policy fees 2,898 2,141 1,405 2,496 1,798 1,175
Investment income, net 11,425 8,478 5,644 10,981 8,125 5,414
Other revenues 1,134 840 569 1,111 806 536
---------------------------------------------------------------------------------
34,415 25,458 16,698 32,611 24,017 15,909
---------------------------------------------------------------------------------
EXPENSES
Policyholder benefits and
dividends 21,787 16,169 10,527 20,662 15,206 10,027
Interest credited to policyholder
account balances 2,786 2,069 1,378 2,851 2,140 1,420
Capitalization of deferred policy
acquisition costs (2,324) (1,739) (1,182) (2,026) (1,495) (978)
Amortization of deferred policy
acquisition costs 1,477 1,067 686 1,447 1,098 759
Other expenses 7,107 5,195 3,449 6,658 4,845 3,240
---------------------------------------------------------------------------------
30,833 22,761 14,858 29,592 21,794 14,468
---------------------------------------------------------------------------------
Operating earnings before
provision for income taxes 3,582 2,697 1,840 3,019 2,223 1,441
Provision for income taxes 1,171 883 600 976 717 449
---------------------------------------------------------------------------------
OPERATING EARNINGS $2,411 $1,814 $1,240(4) $2,043 $1,506 $992(5)
=================================================================================
NET INCOME RECONCILIATION (2)
- -----------------------------
Operating earnings $2,411 $1,814 $1,240 $2,043 $1,506 $992
Net investment gains (losses) 226 352 140 (595) (290) (164)
Minority interest - net
investment gains (losses) 4 0 0 0 0 0
Net investment gains
(losses) tax benefit
(provision) (74) (111) (40) 222 118 55
---------------------------------------------------------------------------------
Net investment gains (losses), net
of income taxes 156 241 100 (373) (172) (109)
Adjustments related to
policyholder benefits and
dividends 64 73 147 230 52 23
Adjustments related to other
expenses (9) (13) (5) 33 25 15
Adjustments related to tax
benefit (provision) (20) (22) (50) (92) (27) (13)
---------------------------------------------------------------------------------
Adjustments related to net
investment gains (losses), net
of income taxes 35 38 92 171 50 25
Cumulative effect of a change in
accounting, net of income
taxes (3) (90) (90) (90) (26) 0 0
---------------------------------------------------------------------------------
Net income $2,512 $2,003 $1,342 $1,815 $1,384 $908
=================================================================================
(1) Adjustments related to net investment gains (losses), net of income
taxes, includes amortization of deferred policy acquisition costs,
adjustments to the policyholder dividend obligation, and amounts allocable
to certain participating contracts.
(2) The cumulative effect of a change in accounting, net of income taxes, for
the period ended March 31, 2004, is in accordance with AICPA Statement of
Position 03-1, Accounting and Reporting by Insurance Enterprises for
Certain Nontraditional Long-Duration Contracts and for Separate Accounts.
In September 2004, an AICPA Technical Practice Aid ("SOP 03-1 Technical
Practice Aid") was issued which clarifies recognition of certain
liabilities to comply with SOP 03-1. The cumulative effect of a change in
accounting, net of income taxes, for the three months ended March 31, 2004
was adjusted by a $70 million benefit in accordance with the SOP 03-1
Technical Practice Aid. For the period ended December 31, 2003, the
cumulative effect of a change in accounting, net of income taxes, is in
accordance with FASB Implementation Issue No. B36, Embedded Derivatives:
Modified Coinsurance Arrangements and Debt Instruments That Incorporate
Credit Risk Exposures That Are Unrelated or Only Partially Related to the
Creditworthiness of the Obligor under Those Instruments.
(3) Operating earnings for the period ended June 30, 2004 includes a $31
million benefit, net of income taxes, from a reduction of a previously
established premium tax liability.
(4) Operating earnings for the period ended June 30, 2003 includes $62 million
of earnings, net of income taxes, from the merger of the Company's Mexican
operations and a reduction in policyholder liabilities resulting from a
change in reserve methodology, and a $31 million charge, net of income
taxes, related to previously deferred expenses.
11
(METLIFE LOGO)
- --------------------------------------------------------------------------------
INSURANCE OPERATIONS
CONSOLIDATING STATEMENT OF OPERATING EARNINGS
FOR THE THREE MONTHS ENDED DECEMBER 31, 2004
Insurance Institutional Individual Auto & International
Unaudited (Dollars in millions) Operations Operations Operations Home Operations
- -----------------------------------------------------------------------------------------------------------------------------------
REVENUES
Premiums $4,959 $2,585 $1,164 $737 $473
Universal life and investment-type product policy fees 757 181 486 0 90
Investment income, net 2,947 1,180 1,552 41 174
Other revenues 294 161 112 12 9
------------------------------------------------------------------------
8,957 4,107 3,314 790 746
------------------------------------------------------------------------
EXPENSES
Policyholder benefits and dividends 5,618 2,860 1,801 497 460
Interest credited to policyholder account balances 717 259 412 0 46
Capitalization of deferred policy acquisition costs (585) (71) (284) (113) (117)
Amortization of deferred policy acquisition costs 410 31 228 113 38
Other expenses 1,912 562 857 210 283
------------------------------------------------------------------------
8,072 3,641 3,014 707 710
------------------------------------------------------------------------
Operating earnings before provision for income taxes 885 466 300 83 36
Provision for income taxes 288 158 100 20 10
------------------------------------------------------------------------
OPERATING EARNINGS $597 $308 $200 $63 $26
========================================================================
NET INCOME RECONCILIATION(1)
- ----------------------------
Operating earnings $597 $308 $200 $63 $26
Net investment gains (losses) (126) (69) (50) (3) (4)
Minority interest - net investment gains
(losses) 4 0 4 0 0
Net investment gains (losses) tax benefit
(provision) 37 24 11 1 1
------------------------------------------------------------------------
Net investment gains (losses), net of income taxes (85) (45) (35) (2) (3)
Adjustments related to policyholder benefits
and dividends (9) (33) 30 0 (6)
Adjustments related to other expenses 4 0 4 0 0
Adjustments related to tax benefit (provision) 2 12 (12) 0 2
------------------------------------------------------------------------
Adjustments related to net investment gains
(losses), net of income taxes (3) (21) 22 0 (4)
Cumulative effect of a change in accounting, net
of income taxes 0 0 0 0 0
------------------------------------------------------------------------
Net income $509 $242 $187 $61 $19
========================================================================
(1) Adjustments related to net investment gains (losses), net of income taxes,
includes amortization of deferred policy acquisition costs, adjustments to
the policyholder dividend obligation, and amounts allocable to certain
participating contracts.
12
(METLIFE LOGO)
- --------------------------------------------------------------------------------
INSURANCE OPERATIONS
CONSOLIDATING STATEMENT OF OPERATING EARNINGS
FOR THE THREE MONTHS ENDED DECEMBER 31, 2003
Insurance Institutional Individual Auto & International
Unaudited (Dollars in millions) Operations Operations Operations Home Operations
- -----------------------------------------------------------------------------------------------------------------------------------
REVENUES
Premiums $4,735 $2,363 $1,184 $740 $448
Universal life and investment-type product policy fees 698 153 465 0 80
Investment income, net 2,856 1,103 1,585 39 129
Other revenues 305 154 116 9 26
------------------------------------------------------------------------
8,594 3,773 3,350 788 683
------------------------------------------------------------------------
EXPENSES
Policyholder benefits and dividends 5,456 2,629 1,863 536 428
Interest credited to policyholder account balances 711 229 446 0 36
Capitalization of deferred policy acquisition costs (531) (55) (279) (107) (90)
Amortization of deferred policy acquisition costs 349 (6) 174 108 73
Other expenses 1,813 546 880 183 204
------------------------------------------------------------------------
7,798 3,343 3,084 720 651
------------------------------------------------------------------------
Operating earnings before provision for income taxes 796 430 266 68 32
Provision for income taxes 259 153 93 15 (2)
------------------------------------------------------------------------
OPERATING EARNINGS $537 $277 $173 $53 $34
========================================================================
NET INCOME RECONCILIATION(1)
- ----------------------------
Operating earnings $537 $277 $173 $53 $34
Net investment gains (losses) (305) (164) (130) (11) 0
Minority interest - net investment gains (losses) 0 0 0 0 0
Net investment gains (losses) tax benefit (provision) 104 47 54 4 (1)
------------------------------------------------------------------------
Net investment gains (losses), net of income taxes (201) (117) (76) (7) (1)
Adjustments related to policyholder benefits and
dividends 178 89 92 0 (3)
Adjustments related to other expenses 8 0 8 0 0
Adjustments related to tax benefit (provision) (65) (31) (35) 0 1
------------------------------------------------------------------------
Adjustments related to net investment gains (losses),
net of income taxes 121 58 65 0 (2)
Cumulative effect of a change in accounting, net of
income taxes (26) (26) 0 0 0
------------------------------------------------------------------------
Net income $431 $192 $162 $46 $31
========================================================================
(1) Adjustments related to net investment gains (losses), net of income taxes,
includes amortization of deferred policy acquisition costs, adjustments to
the policyholder dividend obligation, and amounts allocable to certain
participating contracts.
13
(METLIFE LOGO)
- --------------------------------------------------------------------------------
INSURANCE OPERATIONS
CONSOLIDATING STATEMENT OF OPERATING EARNINGS
FOR THE YEAR ENDED DECEMBER 31, 2004
Insurance Institutional Individual Auto & International
Unaudited (Dollars in millions) Operations Operations Operations Home Operations
- -----------------------------------------------------------------------------------------------------------------------------------
REVENUES
Premiums $18,958 $10,103 $4,172 $2,948 $1,735
Universal life and investment-type product policy fees 2,898 717 1,831 0 350
Investment income, net 11,425 4,519 6,150 171 585
Other revenues 1,134 632 444 35 23
------------------------------------------------------------------------
34,415 15,971 12,597 3,154 2,693
------------------------------------------------------------------------
EXPENSES
Policyholder benefits and dividends 21,787 11,234 6,779 2,081 1,693
Interest credited to policyholder account balances 2,786 960 1,674 0 152
Capitalization of deferred policy acquisition costs (2,324) (343) (1,143) (454) (384)
Amortization of deferred policy acquisition costs 1,477 117 774 449 137
Other expenses 7,107 2,133 3,303 800 871
------------------------------------------------------------------------
30,833 14,101 11,387 2,876 2,469
------------------------------------------------------------------------
Operating earnings before provision for income taxes 3,582 1,870 1,210 278 224
Provision for income taxes 1,171 634 405 64 68
------------------------------------------------------------------------
OPERATING EARNINGS 2,411 (4) $1,236 (5) $805 $214 $156
========================================================================
OPERATING RETURN ON EQUITY ("ROE")(1) 15.9% 21.5% 11.4% 20.6% 11.6%
OPERATING ROE EXCLUDING FOOTNOTE ITEMS BELOW 15.7%(4) 21.0%(5) 11.4% 20.6% 11.6%
NET INCOME RECONCILIATION(2)
- ----------------------------
Operating earnings $2,411 $1,236 $805 $214 $156
Net investment gains (losses) 226 154 58 (9) 23
Minority interest - net investment gains (losses) 4 0 4 0 0
Net investment gains (losses) tax benefit (provision) (74) (54) (16) 3 (7)
------------------------------------------------------------------------
Net investment gains (losses), net of income taxes 156 100 46 (6) 16
Adjustments related to policyholder benefits and
dividends 64 (7) 39 0 32
Adjustments related to other expenses (9) 0 (9) 0 0
Adjustments related to tax benefit (provision) (20) 2 (11) 0 (11)
------------------------------------------------------------------------
Adjustments related to net investment gains (losses),
net of income taxes 35 (5) 19 0 21
Cumulative effect of a change in accounting, net of
income taxes(3) (90) (60) 0 0 (30)
------------------------------------------------------------------------
Net income $2,512 $1,271 $870 $208 $163
========================================================================
(1) Segment operating return on equity is defined as segment operating
earnings divided by allocated equity.
(2) Adjustments related to net investment gains (losses), net of income taxes,
includes amortization of deferred policy acquisition costs, adjustments to
the policyholder dividend obligation, and amounts allocable to certain
participating contracts.
(3) The cumulative effect of a change in accounting, net of income taxes, for
the period ended December 31, 2004, is in accordance with AICPA Statement
of Position 03-1, Accounting and Reporting by Insurance Enterprises for
Certain Nontraditional Long-Duration Contracts and for Separate Accounts.
(4) Insurance Operations operating earnings for the year ended December 31,
2004 includes $31 million benefit, net of income taxes, from a reduction
of a previously established premium tax liability, and a $10 million
benefit, net of income taxes, as a result of the SOP 03-1 Technical
Practice Aid which clarifies recognition of certain liabilities in
accordance with SOP 03-1.
(5) Institutional Operations operating earnings for the period ended June 30,
2004 includes a $31 million benefit, net of income taxes from a reduction
of a previously established premium tax liability.
14
(METLIFE LOGO)
- --------------------------------------------------------------------------------
INSURANCE OPERATIONS
CONSOLIDATING STATEMENT OF OPERATING EARNINGS
FOR THE YEAR ENDED DECEMBER 31, 2003
Insurance Institutional Individual Auto & International
Unaudited (Dollars in millions) Operations Operations Operations Home Operations
- ------------------------------------------------------------------------------------------------------------------------------------
REVENUES
Premiums $18,023 $9,093 $4,344 $2,908 $1,678
Universal life and investment-type product policy fees 2,496 635 1,589 0 272
Investment income, net 10,981 4,094 6,227 158 502
Other revenues 1,111 592 407 32 80
-------------------------------------------------------------
32,611 14,414 12,567 3,098 2,532
-------------------------------------------------------------
EXPENSES
Policyholder benefits and dividends 20,662 10,130 6,883 2,140 1,509
Interest credited to policyholder account balances 2,851 915 1,793 0 143
Capitalization of deferred policy acquisition costs (2,026) (199) (1,099) (441) (287)
Amortization of deferred policy acquisition costs 1,447 68 718 436 225
Other expenses 6,658 1,915 3,261 761 721
-------------------------------------------------------------
29,592 12,829 11,556 2,896 2,311
-------------------------------------------------------------
Operating earnings before provision (benefit) for income taxes 3,019 1,585 1,011 202 221
Provision (benefit) for income taxes 976 565 356 35 20
-------------------------------------------------------------
OPERATING EARNINGS $2,043(4) $1,020 $655(5) $167 $201(6)
=============================================================
OPERATING RETURN ON EQUITY ("ROE") (1) 14.6% 20.1% 9.9% 15.6% 16.0%
OPERATING ROE EXCLUDING FOOTNOTE ITEMS BELOW 14.8%(4) 20.1% 10.4%(5) 15.6% 11.0%(6)
NET INCOME RECONCILIATION (2)
- -----------------------------
Operating earnings $2,043 $1,020 $655 $167 $201
Net investment gains (losses) (595) (302) (285) (15) 7
Minority interest - net investment gains (losses) 0 0 0 0 0
Net investment gains (losses) tax benefit (provision) 222 99 116 5 2
-------------------------------------------------------------
Net investment gains (losses), net of income taxes (373) (203) (169) (10) 9
Adjustments related to policyholder benefits and dividends 230 89 144 0 (3)
Adjustments related to other expenses 33 0 33 0 0
Adjustments related to tax benefit (provision) (92) (31) (62) 0 1
-------------------------------------------------------------
Adjustments related to net investment gains (losses), net of
income taxes 171 58 115 0 (2)
Cumulative effect of a change in accounting, net of income
taxes (3) (26) (26) 0 0 0
-------------------------------------------------------------
Net income $1,815 $849 $601 $157 $208
=============================================================
(1) Segment operating return on equity is defined as segment operating
earnings divided by allocated equity.
(2) Adjustments related to net investment gains (losses), net of income taxes,
includes amortization of deferred policy acquisition costs, adjustments to
the policyholder dividend obligation, and amounts allocable to certain
participating contracts.
(3) The cumulative effect of a change in accounting, net of income taxes, for
the period ended December 31, 2003, is in accordance with FASB
Implementation Issue No. B36, Embedded Derivatives: Modified Coinsurance
Arrangements and Debt Instruments That Incorporate Credit Risk Exposures
That Are Unrelated or Only Partially Related to the Creditworthiness of
the Obligor under Those Instruments.
(4) Insurance Operations operating earnings for the year ended December 31,
2003 includes $62 million of after-tax earnings from the merger of the
Company's Mexican operations and a reduction in policyholder liabilities
resulting from a change in reserve methodology, and a $31 million
after-tax charge related to previously deferred expenses.
(5) Individual Operations operating earnings for the year ended December 31,
2003 includes a $31 million after-tax charge related to previously
deferred expenses.
(6) International Operations operating earnings for the year ended December
31, 2003 includes $62 million of after-tax earnings from the merger of the
Company's Mexican operations and a reduction in policyholder liabilities
resulting from a change in reserve methodology.
15
(METLIFE LOGO)
- --------------------------------------------------------------------------------
SUMMARY OF SEGMENT OPERATING EARNINGS (1)
For the Three Months Ended
---------------------------------------------------------------------------------------------------
December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31,
Unaudited (Dollars in millions) 2004 2004 2004 2004 2003 2003 2003 2003
- ------------------------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL OPERATIONS $308 $294 $317 $317 $277 $264 $260 $219
INDIVIDUAL OPERATIONS 200 201 217 187 173 171 151 160
AUTO & HOME OPERATIONS 63 34 71 46 53 42 42 30
INTERNATIONAL OPERATIONS 26 45 41 44 34 37 102 28
REINSURANCE OPERATIONS 31 14 23 18 20 18 19 20
ASSET MANAGEMENT OPERATIONS (3) 7 16 5 6 4 5 1
CORPORATE, OTHER & ELIMINATIONS 27 26 95 (18) 2 80 41 (12)
------------------------------------------------------------------------------------------------
CONSOLIDATED $652 $621(2) $780(3) $599(4) $565 $616(5) $620(6) $446
================================================================================================
For the Year-to-Date Period Ended
------------------------------------------------------------------------
December 31, September 30, June 30, December 31, September 30, June 30,
Unaudited (Dollars in millions) 2004 2004 2004 2003 2003 2003
- ----------------------------------------------------------------------------------------------------------
INSTITUTIONAL OPERATIONS
INDIVIDUAL OPERATIONS $1,236 $928 $634 $1,020 $743 $479
AUTO & HOME OPERATIONS 805 605 404 655 482 311
INTERNATIONAL OPERATIONS 214 151 117 167 114 72
REINSURANCE OPERATIONS 156 130 85 201 167 130
ASSET MANAGEMENT OPERATIONS 86 55 41 77 57 39
CORPORATE, OTHER & ELIMINATIONS 25 28 21 16 10 6
CONSOLIDATED 130 103 77 111 109 29
----------------------------------------------------------------------
$2,652 $2,000(2) $1,379(3) $2,247 $1,682(5) $1,066(6)
======================================================================
(1) A reconciliation of operating earnings to net income for each segment
appears in this QFS as follows: (i) Institutional Operations, page 17;
(ii) Individual Operations, page 25; (iii) Auto & Home Operations, page
35; (iv) International Operations, page 40; (v) Reinsurance Operations,
page 41; and (vi) Asset Management Operations, page 43, and for Corporate,
Other and Eliminations, on page 45. A reconciliation of operating earnings
to net income for MetLife, Inc., Consolidated, appears on Page 4.
(2) Operating earnings for the period ended September 30, 2004 includes a $9
million benefit from a revision of the estimate of income taxes for 2003.
(3) Operating earnings and net income for the three months ended June 30, 2004
includes a $32 million charge, net of income taxes, from a contribution to
the MetLife Foundation made by Metropolitan Life Insurance Company, a $31
million benefit, net of income taxes, from a reduction of a previously
established premium tax liability and a $105 million benefit related to a
previously disclosed resolution of an IRS audit. Additionally, earnings
for the three months ended June 30, 2004 was adjusted by a $7 million
benefit, net of income taxes, as a result of the SOP 03-1 Technical
Practice Aid which clarifies recognition of certain liabilities in
accordance with SOP 03-1.
(4) Operating earnings and net income for the three months ended March 31,
2004 was adjusted by a $3 million benefit, net of income taxes, as a
result of the SOP 03-1 Technical Practice Aid which clarifies recognition
of certain liabilities in accordance with SOP 03-1.
(5) Operating earnings for the period ended September 30, 2003 includes a $28
million benefit, net of income taxes from a reduction of a previously
established liability related to the Company's race-conscious underwriting
settlement and a $36 million benefit from a revision of the estimate of
income taxes for 2002.
(6) Operating earnings for the period ended June 30, 2003 includes a $64
million benefit, net of income taxes, from a reduction of a previously
established liability related to the Company's race-conscious underwriting
settlement, $62 million of earnings, net of income taxes, from the merger
of the Company's Mexican operations and a reduction in policyholder
liabilities resulting from a change in reserve methodology, and a $31
million charge, net of income taxes, related to previously deferred
expenses.
16
(METLIFE LOGO)
- --------------------------------------------------------------------------------
INSTITUTIONAL OPERATIONS
STATEMENTS OF OPERATING EARNINGS - TOTAL
UNAUDITED (DOLLARS IN MILLIONS)
For the Three Months Ended
----------------------------------------------------------------------------------------------
December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31,
Institutional Operations 2004 2004 2004 2004 2003 2003 2003 2003
- ------------------------------------------------------------------------------------------------------------------------------------
REVENUES
Premiums $2,585 $2,711 $2,382 $2,425 $2,363 $2,260 $2,334 $2,136
Universal life and investment-type
product policy fees 181 178 187 171 153 167 154 161
Investment income, net 1,180 1,115 1,128 1,096 1,103 1,003 1,009 979
Other revenues 161 152 155 164 154 144 152 142
----------------------------------------------------------------------------------------------
4,107 4,156 3,852 3,856 3,773 3,574 3,649 3,418
---------------------------------------------------------------------------------------------
EXPENSES
Policyholder benefits and dividends 2,860 2,976 2,699 2,699 2,629 2,523 2,560 2,418
Interest credited to policyholder
account balances 259 242 232 227 229 234 228 224
Other expenses 522 494 440 451 485 407 456 436
---------------------------------------------------------------------------------------------
3,641 3,712 3,371 3,377 3,343 3,164 3,244 3,078
---------------------------------------------------------------------------------------------
Operating earnings before provision
for income taxes 466 444 481 479 430 410 405 340
Provision for income taxes 158 150 164 162 153 146 145 121
---------------------------------------------------------------------------------------------
OPERATING EARNINGS $308 $294 $317(3) $317 $277 $264 $260 $219
=============================================================================================
NET INCOME RECONCILIATION (1)
- -----------------------------
Operating earnings $308 $294 $317 $317 $277 $264 $260 $219
Net investment gains (losses) (69) 105 18 100 (164) (59) (9) (70)
Minority interest - net
investment gains (losses) 0 0 0 0 0 0 0 0
Net investment gains (losses)
tax benefit (provision) 24 (33) (9) (36) 47 23 3 26
---------------------------------------------------------------------------------------------
Net investment gains (losses), net
of income taxes (45) 72 9 64 (117) (36) (6) (44)
Adjustments related to
policyholder benefits and
dividends (33) (35) 78 (17) 89 0 0 0
Adjustments related to other
expenses 0 0 0 0 0 0 0 0
Adjustments related to tax benefit
(provision) 12 11 (27) 6 (31) 0 0 0
---------------------------------------------------------------------------------------------
Adjustments related to net investment
gains (losses), net of income taxes (21) (24) 51 (11) 58 0 0 0
Cumulative effect of a change in
accounting, net of income taxes (2) 0 0 0 (60) (26) 0 0 0
---------------------------------------------------------------------------------------------
Net income $242 $342 $377 $310 $192 $228 $254 $175
=============================================================================================
For the Year-to-Date Period Ended
---------------------------------------------------------------------------
December 31, September 30, June 30, December 31, September 30, June 30,
Institutional Operations 2004 2004 2004 2003 2003 2003
- ------------------------------------------------------------------------------------------------------------------------------------
REVENUES
Premiums $10,103 $7,518 $4,807 $9,093 $6,730 $4,470
Universal life and investment-type product policy fees 717 536 358 635 482 315
Investment income, net 4,519 3,339 2,224 4,094 2,991 1,988
Other revenues 632 471 319 592 438 294
---------------------------------------------------------------------------
15,971 11,864 7,708 14,414 10,641 7,067
---------------------------------------------------------------------------
EXPENSES
Policyholder benefits and dividends 11,234 8,374 5,398 10,130 7,501 4,978
Interest credited to policyholder account balances 960 701 459 915 686 452
Other expenses 1,907 1,385 891 1,784 1,299 892
---------------------------------------------------------------------------
14,101 10,460 6,748 12,829 9,486 6,322
---------------------------------------------------------------------------
Operating earnings before provision for income taxes 1,870 1,404 960 1,585 1,155 745
Provision for income taxes 634 476 326 565 412 266
---------------------------------------------------------------------------
OPERATING EARNINGS $1,236 $928 $634(3) $1,020 $743 $479
===========================================================================
NET INCOME RECONCILIATION (1)
- -----------------------------
Operating earnings $1,236 $928 $634 $1,020 $743 $479
Net investment gains (losses) 154 223 118 (302) (138) (79)
Minority interest - net investment gains (losses) 0 0 0 0 0 0
Net investment gains (losses) tax benefit (provision) (54) (78) (45) 99 52 29
---------------------------------------------------------------------------
Net investment gains (losses), net of income taxes 100 145 73 (203) (86) (50)
Adjustments related to policyholder benefits and
dividends (7) 26 61 89 0 0
Adjustments related to other expenses 0 0 0 0 0 0
Adjustments related to tax benefit (provision) 2 (10) (21) (31) 0 0
---------------------------------------------------------------------------
Adjustments related to net investment gains (losses),
net of income taxes (5) 16 40 58 0 0
Cumulative effect of a change in accounting, net of
income taxes (2) (60) (60) (60) (26) 0 0
---------------------------------------------------------------------------
Net income $1,271 $1,029 $687 $849 $657 $429
===========================================================================
(1) Adjustments related to net investment gains (losses), net of income taxes,
includes amortization of deferred policy acquisition costs and amounts
allocable to certain participating contracts.
(2) The cumulative effect of a change in accounting, net of income taxes, for
the period ended March 31, 2004, is in accordance with AICPA Statement of
Position 03-1, Accounting and Reporting by Insurance Enterprises for
Certain Nontraditional Long-Duration Contracts and for Separate Accounts.
In September 2004, an AICPA Technical Practice Aid ("SOP 03-1 Technical
Practice Aid") was issued which clarifies recognition of certain
liabilities to comply with SOP 03-1. For the period ended December 31,
2003, the cumulative effect of a change in accounting, net of income
taxes, is in accordance with FASB Implementation Issue No. B36, Embedded
Derivatives: Modified Coinsurance Arrangements and Debt Instruments That
Incorporate Credit Risk Exposures That Are Unrelated or Only Partially
Related to the Creditworthiness of the Obligor under Those Instruments.
(3) Operating earnings for the period ended June 30, 2004 includes a $31
million benefit, net of income taxes, from a reduction of a previously
established premium tax liability.
17
(METLIFE LOGO)
- --------------------------------------------------------------------------------
INSTITUTIONAL OPERATIONS
STATEMENTS OF OPERATING EARNINGS - PRODUCT LEVEL
UNAUDITED (DOLLARS IN MILLIONS)
For the Three Months Ended
----------------------------------------------------------------------------------------------
December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31,
Group Life 2004 2004 2004 2004 2003 2003 2003 2003
- ------------------------------------------------------------------------------------------------------------------------------------
REVENUES
Premiums $1,318 $1,271 $1,244 $1,282 $1,223 $1,167 $1,175 $1,163
Universal life and investment-type
product policy fees 181 178 187 171 153 167 154 161
Investment income, net 252 250 269 259 271 262 248 242
Other revenues 14 10 13 19 18 17 13 16
----------------------------------------------------------------------------------------------
1,765 1,709 1,713 1,731 1,665 1,613 1,590 1,582
----------------------------------------------------------------------------------------------
EXPENSES
Policyholder benefits and dividends 1,382 1,331 1,326 1,392 1,272 1,237 1,229 1,234
Interest credited to policyholder
account balances 101 100 101 100 100 113 104 106
Other expenses 136 126 88 123 138 116 133 121
----------------------------------------------------------------------------------------------
1,619 1,557 1,515 1,615 1,510 1,466 1,466 1,461
----------------------------------------------------------------------------------------------
Operating earnings before provision
for income taxes 146 152 198 116 155 147 124 121
Provision for income taxes 50 52 68 39 56 53 45 43
----------------------------------------------------------------------------------------------
OPERATING EARNINGS $96 $100 $130(1) $77 $99 $94 $79 $78
----------------------------------------------------------------------------------------------
Net investment gains (losses), net of
income taxes (44) 4 (4) 17 (53) 3 (8) (13)
Adjustments related to net investment
gains (losses), net of income taxes 0 0 0 0 0 0 0 0
Cumulative effect of a change in
accounting, net of income taxes 0 0 0 0 0 0 0 0
----------------------------------------------------------------------------------------------
Net income $52 $104 $126 $94 $46 $97 $71 $65
==============================================================================================
For the Year-to-Date Period Ended
-------------------------------------------------------------------------
December 31, September 30, June 30, December 31, September 30, June 30,
Group Life 2004 2004 2004 2003 2003 2003
- ------------------------------------------------------------------------------------------------------------------------------------
REVENUES
Premiums $5,115 $3,797 $2,526 $4,728 $3,505 $2,338
Universal life and investment-type product policy fees 717 536 358 635 482 315
Investment income, net 1,030 778 528 1,023 752 490
Other revenues 56 42 32 64 46 29
-------------------------------------------------------------------------
6,918 5,153 3,444 6,450 4,785 3,172
-------------------------------------------------------------------------
EXPENSES
Policyholder benefits and dividends 5,431 4,049 2,718 4,972 3,700 2,463
Interest credited to policyholder account balances 402 301 201 423 323 210
Other expenses 473 337 211 508 370 254
-------------------------------------------------------------------------
6,306 4,687 3,130 5,903 4,393 2,927
-------------------------------------------------------------------------
Operating earnings before provision for income taxes 612 466 314 547 392 245
Provision for income taxes 209 159 107 197 141 88
-------------------------------------------------------------------------
OPERATING EARNINGS $403 $307 $207(1) $350 $251 $157
-------------------------------------------------------------------------
Net investment gains (losses), net of income taxes
Adjustments related to net investment gains (losses), (27) 17 13 (71) (18) (21)
net of income taxes 0 0 0 0 0 0
Cumulative effect of a change in accounting, net of
income taxes 0 0 0 0 0 0
-------------------------------------------------------------------------
Net income $376 $324 $220 $279 $233 $136
=========================================================================
(1) Operating earnings for the period ended June 30, 2004 includes a $31
million benefit, net of income taxes, from a reduction of a previously
established premium tax liability.
18
(METLIFE LOGO)
- --------------------------------------------------------------------------------
INSTITUTIONAL OPERATIONS
STATEMENTS OF OPERATING EARNINGS - PRODUCT LEVEL
UNAUDITED (DOLLARS IN MILLIONS)
For the Three Months Ended
---------------------------------------------------------------------------------------------
December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31,
Retirement & Savings 2004 2004 2004 2004 2003 2003 2003 2003
- -----------------------------------------------------------------------------------------------------------------------------------
REVENUES
Premiums $298 $504 $225 $265 $305 $289 $351 $174
Universal life and investment-type
product policy fees 0 0 0 0 0 0 0 0
Investment income, net 803 750 736 730 732 653 674 642
Other revenues 55 54 55 57 58 48 52 45
---------------------------------------------------------------------------------------------
1,156 1,308 1,016 1,052 1,095 990 1,077 861
---------------------------------------------------------------------------------------------
EXPENSES
Policyholder benefits and dividends 675 868 598 589 682 641 681 531
Interest credited to policyholder
account balances 158 142 131 127 129 121 124 118
Other expenses 88 83 84 69 90 68 87 86
---------------------------------------------------------------------------------------------
921 1,093 813 785 901 830 892 735
---------------------------------------------------------------------------------------------
Operating earnings before provision
for income taxes 235 215 203 267 194 160 185 126
Provision for income taxes 78 71 68 89 69 56 65 44
---------------------------------------------------------------------------------------------
OPERATING EARNINGS $157 $144 $135 $178 $125 $104 $120 $82
---------------------------------------------------------------------------------------------
Net investment gains (losses), net of
income taxes 4 49 28 32 (58) (48) 2 (25)
Adjustments related to net investment
gains (losses), net of income taxes (15) (3) 20 0 58 0 0 0
Cumulative effect of a change in
accounting, net of income taxes (1) 0 0 0 (40) (26) 0 0 0
---------------------------------------------------------------------------------------------
Net income $146 $190 $183 $170 $99 $56 $122 $57
=============================================================================================
For the Year-to-Date Period Ended
-------------------------------------------------------------------------
December 31, September 30, June 30, December 31, September 30, June 30,
Retirement & Savings 2004 2004 2004 2003 2003 2003
- ------------------------------------------------------------------------------------------------------------------------------------
REVENUES
Premiums $1,292 $994 $490 $1,119 $814 $525
Universal life and investment-type product policy fees 0 0 0 0 0 0
Investment income, net 3,019 2,216 1,466 2,701 1,969 1,316
Other revenues 221 166 112 203 145 97
-------------------------------------------------------------------------
4,532 3,376 2,068 4,023 2,928 1,938
-------------------------------------------------------------------------
EXPENSES
Policyholder benefits and dividends 2,730 2,055 1,187 2,535 1,853 1,212
Interest credited to policyholder account balances 558 400 258 492 363 242
Other expenses 324 236 153 331 241 173
-------------------------------------------------------------------------
3,612 2,691 1,598 3,358 2,457 1,627
-------------------------------------------------------------------------
Operating earnings before provision for income taxes 920 685 470 665 471 311
Provision for income taxes 306 228 157 234 165 109
-------------------------------------------------------------------------
OPERATING EARNINGS $614 $457 $313 $431 $306 $202
-------------------------------------------------------------------------
Net investment gains (losses), net of income taxes 113 109 60 (129) (71) (23)
Adjustments related to net investment gains (losses),
net of income taxes 2 17 20 58 0 0
Cumulative effect of a change in accounting, net of
income taxes (1) (40) (40) (40) (26) 0 0
-------------------------------------------------------------------------
Net income $689 $543 $353 $334 $235 $179
=========================================================================
(1) The cumulative effect of a change in accounting, net of income taxes, for
the period ended March 31, 2004, is in accordance with AICPA Statement of
Position 03-1, Accounting and Reporting by Insurance Enterprises for
Certain Nontraditional Long-Duration Contracts and for Separate Accounts.
In September 2004, an AICPA Technical Practice Aid ("SOP 03-1 Technical
Practice Aid") was issued which clarifies recognition of certain
liabilities to comply with SOP 03-1. For the period ended December 31,
2003, the cumulative effect of a change in accounting, net of income
taxes, is in accordance with FASB Implementation Issue No. B36, Embedded
Derivatives: Modified Coinsurance Arrangements and Debt Instruments That
Incorporate Credit Risk Exposures That Are Unrelated or Only Partially
Related to the Creditworthiness of the Obligor under Those Instruments.
19
(METLIFE LOGO)
- --------------------------------------------------------------------------------
INSTITUTIONAL OPERATIONS
STATEMENTS OF OPERATING EARNINGS - PRODUCT LEVEL
UNAUDITED (DOLLARS IN MILLIONS)
For the Three Months Ended
-------------------------------------------------------------------------------------------
December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31,
Non-Medical Health & Other 2004 2004 2004 2004 2003 2003 2003 2003
- -----------------------------------------------------------------------------------------------------------------------------------
REVENUES
Premiums $969 $936 $913 $878 $835 $804 $808 $799
Universal life and investment-type
product policy fees 0 0 0 0 0 0 0 0
Investment income, net 125 115 123 107 100 88 87 95
Other revenues 92 88 87 88 78 79 87 81
-------------------------------------------------------------------------------------------
1,186 1,139 1,123 1,073 1,013 971 982 975
-------------------------------------------------------------------------------------------
EXPENSES
Policyholder benefits and dividends 803 777 775 718 675 645 650 653
Interest credited to policyholder
account balances 0 0 0 0 0 0 0 0
Other expenses 298 285 268 259 257 223 236 229
-------------------------------------------------------------------------------------------
1,101 1,062 1,043 977 932 868 886 882
-------------------------------------------------------------------------------------------
Operating earnings before provision
for income taxes 85 77 80 96 81 103 96 93
Provision for income taxes 30 27 28 34 28 37 35 34
-------------------------------------------------------------------------------------------
OPERATING EARNINGS $55 $50 $52 $62 $53 $66 $61 $59
-------------------------------------------------------------------------------------------
Net investment gains (losses), net of
income taxes (5) 19 (15) 15 (6) 9 0 (6)
Adjustments related to net investment
gains (losses), net of income taxes (6) (21) 31 (11) 0 0 0 0
Cumulative effect of a change in
accounting, net of income taxes (1) 0 0 0 (20) 0 0 0 0
-------------------------------------------------------------------------------------------
Net income $44 $48 $68 $46 $47 $75 $61 $53
===========================================================================================
For the Year-to-Date Period Ended
-------------------------------------------------------------------------
December 31, September 30, June 30, December 31, September 30, June 30,
Non-Medical Health & Other 2004 2004 2004 2003 2003 2003
- ------------------------------------------------------------------------------------------------------------------------------------
REVENUES
Premiums $3,696 $2,727 $1,791 $3,246 $2,411 $1,607
Universal life and investment-type product policy fees 0 0 0 0 0 0
Investment income, net 470 345 230 370 270 182
Other revenues 355 263 175 325 247 168
-------------------------------------------------------------------------
4,521 3,335 2,196 3,941 2,928 1,957
-------------------------------------------------------------------------
EXPENSES
Policyholder benefits and dividends 3,073 2,270 1,493 2,623 1,948 1,303
Interest credited to policyholder account balances 0 0 0 0 0 0
Other expenses 1,110 812 527 945 688 465
-------------------------------------------------------------------------
4,183 3,082 2,020 3,568 2,636 1,768
-------------------------------------------------------------------------
Operating earnings before provision for income taxes 338 253 176 373 292 189
Provision for income taxes 119 89 62 134 106 69
-------------------------------------------------------------------------
OPERATING EARNINGS $219 $164 $114 $239 $186 $120
-------------------------------------------------------------------------
Net investment gains (losses), net of income taxes
Adjustments related to net investment gains (losses), 14 19 0 (3) 3 (6)
net of income taxes (7) (1) 20 0 0 0
Cumulative effect of a change in accounting, net of
income taxes (1) (20) (20) (20) 0 0 0
-------------------------------------------------------------------------
Net income $206 $162 $114 $236 $189 $114
=========================================================================
(1) The cumulative effect of a change in accounting, net of income taxes, for
the period ended March 31, 2004, is in accordance with AICPA Statement of
Position 03-1, Accounting and Reporting by Insurance Enterprises for
Certain Nontraditional Long-Duration Contracts and for Separate Accounts.
In September 2004, an AICPA Technical Practice Aid ("SOP 03-1 Technical
Practice Aid") was issued which clarifies recognition of certain
liabilities to comply with SOP 03-1.
20
(METLIFE LOGO)
- --------------------------------------------------------------------------------
INSTITUTIONAL OPERATIONS
PREMIUMS, FEES AND OTHER REVENUES BY PRODUCT
AND ADDITIONAL STATISTICAL INFORMATION
For the Three Months Ended
-------------------------------------------------------------------------------------------
December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31,
Unaudited (Dollars in millions) 2004 2004 2004 2004 2003 2003 2003 2003
- ------------------------------------------------------------------------------------------------------------------------------------
PREMIUMS, FEES AND OTHER REVENUES
BY PRODUCT
Group Life $1,513 $1,459 $1,444 $1,472 $1,394 $1,351 $1,342 $1,340
Retirement & Savings 353 558 280 322 363 337 403 219
Non-Medical Health & Other 1,061 1,024 1,000 966 913 883 895 880
-------------------------------------------------------------------------------------------
Total Premiums, Fees and Other Revenues $2,927 $3,041 $2,724 $2,760 $2,670 $2,571 $2,640 $2,439
===========================================================================================
Group Disability (Included in
Non-Medical Health & Other) $269 $254 $250 $246 $237 $227 $238 $241
ADDITIONAL STATISTICAL INFORMATION
INCURRED LOSS RATIO
(MORTALITY EXPERIENCE):
Term Life 90.9% 91.3% 93.3% 95.7% 91.4% 91.3% 92.0% 93.2%
INCURRED LOSS RATIO
(MORBIDITY EXPERIENCE):
Group Disability 98.7% 92.0% 92.7% 93.3% 102.7% 99.8% 95.1% 96.5%
-------------------------------------------------------------------------------------------
21
(METLIFE LOGO)
- --------------------------------------------------------------------------------
INSTITUTIONAL OPERATIONS
FUTURE POLICY BENEFITS AND POLICYHOLDER ACCOUNT BALANCES
AND SEPARATE ACCOUNT LIABILITIES
Unaudited (Dollars in millions)
FUTURE POLICY BENEFITS AND POLICYHOLDER ACCOUNT BALANCES
For the Three Months Ended
----------------------------------------------------------------------------------------------------
December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31,
Group Life 2004 2004 2004 2004 2003 2003 2003 2003
- -----------------------------------------------------------------------------------------------------------------------------------
Balance, beginning of period $14,959 $14,834 $14,642 $14,678 $14,453 $14,189 $13,993 $13,756
Premiums and deposits 2,522 2,543 2,621 2,719 2,935 2,728 2,676 2,877
Interest on reserves 135 131 131 130 132 141 134 136
Surrenders and withdrawals (1,115) (1,081) (1,118) (1,144) (1,344) (1,078) (1,103) (1,426)
Benefits and reserves (1,348) (1,296) (1,297) (1,387) (1,203) (1,238) (1,197) (1,223)
Other (131) (172) (145) (354) (295) (289) (314) (127)
---------------------------------------------------------------------------------------------------
Balance, end of period $15,022 $14,959 $14,834 $14,642 $14,678 $14,453 $14,189 $13,993
===================================================================================================
For the Three Months Ended
----------------------------------------------------------------------------------------------------
December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31,
Retirement & Savings 2004 2004 2004 2004 2003 2003 2003 2003
- -----------------------------------------------------------------------------------------------------------------------------------
Balance, beginning of period $44,497 $42,287 $42,634 $40,298 $40,191 $39,111 $36,206 $35,548
Premiums and deposits 2,696 2,525 2,003 2,424 1,763 3,156 3,040 1,060
Interest on reserves 595 567 551 542 537 526 526 518
Surrenders and withdrawals (1,566) (1,361) (928) (1,222) (1,330) (1,396) (1,113) (602)
Benefits and reserves (495) (504) (470) (468) (468) (471) (521) (465)
Other (1) 252 983 (1,503) 1,060 (395) (735) 973 147
---------------------------------------------------------------------------------------------------
Balance, end of period $45,979 $44,497 $42,287 $42,634 $40,298 $40,191 $39,111 $36,206
===================================================================================================
For the Three Months Ended
----------------------------------------------------------------------------------------------------
December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31,
Non-Medical Health & Other 2004 2004 2004 2004 2003 2003 2003 2003
- -----------------------------------------------------------------------------------------------------------------------------------
Balance, beginning of period $6,601 $6,407 $6,003 $4,708 $4,621 $4,552 $4,483 $4,396
Premiums and deposits 893 846 831 795 762 727 728 736
Interest on reserves 64 63 60 57 56 56 55 55
Surrenders and withdrawals 18 27 25 24 16 17 24 12
Benefits and reserves (791) (753) (728) (693) (615) (591) (591) (609)
Other (1) (1) 11 216 1,112 (132) (140) (147) (107)
---------------------------------------------------------------------------------------------------
Balance, end of period $6,784 $6,601 $6,407 $6,003 $4,708 $4,621 $4,552 $4,483
===================================================================================================
SEPARATE ACCOUNT LIABILITIES
For the Three Months Ended
----------------------------------------------------------------------------------------------------
December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31,
Group Life 2004 2004 2004 2004 2003 2003 2003 2003
- -----------------------------------------------------------------------------------------------------------------------------------
Balance, beginning of period $8,337 $8,066 $7,754 $7,045 $6,951 $6,953 $6,376 $6,011
Premiums and deposits 133 182 156 160 85 298 169 299
Investment performance 63 166 239 645 113 23 582 175
Surrenders and withdrawals (341) (77) (86) (92) (104) (323) (174) (109)
Policy charges 0 0 0 0 0 0 0 0
Other 0 0 3 (4) 0 0 0 0
---------------------------------------------------------------------------------------------------
Balance, end of period $8,192 $8,337 $8,066 $7,754 $7,045 $6,951 $6,953 $6,376
===================================================================================================
For the Three Months Ended
----------------------------------------------------------------------------------------------------
December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31,
Retirement & Savings 2004 2004 2004 2004 2003 2003 2003 2003
- -----------------------------------------------------------------------------------------------------------------------------------
Balance, beginning of period $27,666 $26,962 $27,376 $27,081 $26,570 $26,526 $25,105 $24,775
Premiums and deposits 758 834 694 1,369 1,103 726 1,008 752
Investment performance 971 732 (277) 802 661 206 1,481 393
Surrenders and withdrawals (883) (818) (842) (1,262) (1,235) (874) (1,050) (793)
Policy charges (19) (19) (20) (21) (18) (14) (18) (22)
Other (1) 14 (25) 31 (593) 0 0 0 0
---------------------------------------------------------------------------------------------------
Balance, end of period $28,507 $27,666 $26,962 $27,376 $27,081 $26,570 $26,526 $25,105
===================================================================================================
For the Three Months Ended
----------------------------------------------------------------------------------------------------
December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31,
Non-Medical Health & Other 2004 2004 2004 2004 2003 2003 2003 2003
- -----------------------------------------------------------------------------------------------------------------------------------
Balance, beginning of period $200 $160 $139 $1,505 $1,462 $1,348 $1,241 $1,150
Premiums and deposits 76 89 82 84 73 76 80 63
Investment performance (45) 62 14 16 15 63 58 47
Surrenders and withdrawals (18) (27) (25) (24) (16) (17) (23) (12)
Policy charges (28) (9) (9) (15) (29) (8) (8) (7)
Other (1) 29 (75) (41) (1,427) 0 0 0 0
---------------------------------------------------------------------------------------------------
Balance, end of period $214 $200 $160 $139 $1,505 $1,462 $1,348 $1,241
===================================================================================================
(1) Beginning with the period ended March 31, 2004, the balances include
liabilities recorded in accordance with AICPA Statement of Position 03-1,
Accounting and Reporting by Insurance Enterprises for Certain
Nontraditional Long-Duration Contracts and for Separate Accounts.
22
(METLIFE LOGO)
- --------------------------------------------------------------------------------
INSTITUTIONAL OPERATIONS
OTHER EXPENSES BY MAJOR CATEGORY
For the Three Months Ended
----------------------------------------------------------------------------------------------------
December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31,
Unaudited (Dollars in millions) 2004 2004 2004 2004 2003 2003 2003 2003
- -----------------------------------------------------------------------------------------------------------------------------------
OTHER EXPENSES BY MAJOR
CATEGORY
Direct and allocated
expenses $394 $355 $361 $352 $370 $303 $327 $320
Pension and other post-
retirement benefit costs 17 17 21 18 31 23 35 26
Premium taxes and other
taxes, licenses and fees 33 38 (11) 35 28 30 39 36
---------------------------------------------------------------------------------------------------
Subtotal Insurance Expenses $444 $410 $371 $405 $429 $356 $401 $382
Commissions and other
expenses 78 84 69 46 56 51 55 54
---------------------------------------------------------------------------------------------------
Total Other Expenses $522 $494 $440 $451 $485 $407 $456 $436
===================================================================================================
23
(METLIFE LOGO)
- --------------------------------------------------------------------------------
INSTITUTIONAL OPERATIONS
SPREADS BY PRODUCT
UNAUDITED
For the Three Months Ended
----------------------------------------------------------------------------------------------------
December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31,
Group Life 2004 2004 2004 2004 2003 2003 2003 2003
- -----------------------------------------------------------------------------------------------------------------------------------
ANNUALIZED GENERAL ACCOUNT
SPREADS BY SEGMENT (%)
Investment income yield 5.34% 5.32% 5.87% 5.66% 6.11% 5.83% 5.57% 5.62%
Average crediting rate 3.58% 3.45% 3.44% 3.49% 3.56% 3.85% 3.72% 3.87%
----------------------------------------------------------------------------------------------------
Spread 1.76% 1.87% 2.43% 2.17% 2.55% 1.98% 1.85% 1.75%
====================================================================================================
For the Three Months Ended
----------------------------------------------------------------------------------------------------
December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31,
Retirement & Savings 2004 2004 2004 2004 2003 2003 2003 2003
- -----------------------------------------------------------------------------------------------------------------------------------
ANNUALIZED GENERAL ACCOUNT
SPREADS BY SEGMENT (%)
Investment income yield 7.17% 6.85% 6.93% 7.06% 7.35% 6.82% 7.37% 7.22%
Average crediting rate 5.34% 5.29% 5.33% 5.42% 5.58% 5.62% 5.92% 6.05%
----------------------------------------------------------------------------------------------------
Spread 1.83% 1.56% 1.60% 1.64% 1.77% 1.20% 1.45% 1.17%
====================================================================================================
For the Three Months Ended
----------------------------------------------------------------------------------------------------
December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31,
Non-Medical Health & Other 2004 2004 2004 2004 2003 2003 2003 2003
- -----------------------------------------------------------------------------------------------------------------------------------
ANNUALIZED GENERAL ACCOUNT
SPREADS BY SEGMENT (%)
Investment income yield 7.53% 6.86% 7.77% 6.96% 7.48% 6.49% 6.60% 7.27%
Average crediting rate 5.47% 5.43% 5.33% 5.35% 5.38% 5.43% 5.49% 5.52%
----------------------------------------------------------------------------------------------------
Spread 2.06% 1.43% 2.44% 1.61% 2.10% 1.06% 1.11% 1.75%
====================================================================================================
24
(METLIFE LOGO)
- --------------------------------------------------------------------------------
INDIVIDUAL OPERATIONS
STATEMENTS OF OPERATING EARNINGS - TOTAL
UNAUDITED (DOLLARS IN MILLIONS)
For the Three Months Ended
---------------------------------------------------------------------------------------------------
December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31,
Individual Operations 2004 2004 2004 2004 2003 2003 2003 2003
- -----------------------------------------------------------------------------------------------------------------------------------
REVENUES
Premiums $1,164 $1,023 $1,007 $978 $1,184 $1,064 $1,055 $1,041
Universal life and invest-
ment-type product policy fees 486 467 453 425 465 386 378 360
Investment income, net 1,552 1,528 1,549 1,521 1,585 1,550 1,529 1,563
Other revenues 112 109 106 117 116 96 109 86
---------------------------------------------------------------------------------------------------
3,314 3,127 3,115 3,041 3,350 3,096 3,071 3,050
---------------------------------------------------------------------------------------------------
EXPENSES
Policyholder benefits and
dividends 1,801 1,681 1,653 1,644 1,863 1,703 1,625 1,692
Interest credited to policy-
holder account balances 412 412 427 423 446 452 452 443
Capitalization of deferred
policy acquisition costs (284) (268) (298) (293) (279) (280) (280) (260)
Amortization of deferred
policy acquisition costs 228 210 170 166 174 162 207 175
Other expenses 857 789 837 820 880 795 833 753
---------------------------------------------------------------------------------------------------
3,014 2,824 2,789 2,760 3,084 2,832 2,837 2,803
---------------------------------------------------------------------------------------------------
Operating earnings before
provision for income taxes 300 303 326 281 266 264 234 247
Provision for income taxes 100 102 109 94 93 93 83 87
---------------------------------------------------------------------------------------------------
OPERATING EARNINGS $200 $201 $217 $187 $173 $171 $151(3) $160
====================================================================================================
Net Income Reconciliation
- -------------------------
Operating earnings $200 $201 $217 $187 $173 $171 $151 $160
Net investment gains
(losses) (50) 105 31 (28) (130) (77) (11) (67)
Minority interest - net
investment gains (losses) 4 0 0 0 0 0 0 0
Net investment gains
(losses) tax benefit
(provision) 11 (37) 1 9 54 35 5 22
---------------------------------------------------------------------------------------------------
Net investment gains
(losses), net of income taxes (35) 68 32 (19) (76) (42) (6) (45)
Adjustments related to
policyholder benefits
and dividends 30 (25) (11) 45 92 29 (5) 28
Adjustments related to
other expenses 4 (8) 8 (13) 8 10 5 10
Adjustments related to
tax benefit (provision) (12) 12 0 (11) (35) (14) (1) (12)
---------------------------------------------------------------------------------------------------
Adjustments related to net
investment gains (losses),
net of income taxes 22 (21) (3) 21 65 25 (1) 26
Cumulative effect of a change
in accounting, net of income
taxes (1) (2) 0 0 0 0 0 0 0 0
---------------------------------------------------------------------------------------------------
Net income $187 $248 $246 $189 $162 $154 $144 $141
====================================================================================================
For the Year-to-Date Period Ended
-----------------------------------------------------------------------------
December 31, September 30, June 30, December 31, September 30, June 30,
Individual Operations 2004 2004 2004 2003 2003 2003
- ------------------------------- -----------------------------------------------------------------------------
REVENUES
Premiums $4,172 $3,008 $1,985 $4,344 $3,160 $2,096
Universal life and invest-
ment-type product policy fees 1,831 1,345 878 1,589 1,124 738
Investment income, net 6,150 4,598 3,070 6,227 4,642 3,092
Other revenues 444 332 223 407 291 195
-----------------------------------------------------------------------------
12,597 9,283 6,156 12,567 9,217 6,121
-----------------------------------------------------------------------------
EXPENSES
Policyholder benefits and
dividends 6,779 4,978 3,297 6,883 5,020 3,317
Interest credited to policy-
holder account balances 1,674 1,262 850 1,793 1,347 895
Capitalization of deferred
policy acquisition costs (1,143) (859) (591) (1,099) (820) (540)
Amortization of deferred
policy acquisition costs 774 546 336 718 544 382
Other expenses 3,303 2,446 1,657 3,261 2,381 1,586
-----------------------------------------------------------------------------
11,387 8,373 5,549 11,556 8,472 5,640
-----------------------------------------------------------------------------
Operating earnings before
provision for income taxes 1,210 910 607 1,011 745 481
Provision for income taxes 405 305 203 356 263 170
-----------------------------------------------------------------------------
OPERATING EARNINGS $805 $605 $404 $655 $482 $311(3)
=============================================================================
Net Income Reconciliation
- -------------------------
Operating earnings $805 $605 $404 $655 $482 $311
Net investment gains
(losses) 58 108 3 (285) (155) (78)
Minority interest - net
investment gains (losses) 4 0 0 0 0 0
Net investment gains
(losses) tax benefit
(provision) (16) (27) 10 116 62 27
-----------------------------------------------------------------------------
Net investment gains
(losses), net of income taxes 46 81 13 (169) (93) (51)
Adjustments related to
policyholder benefits
and dividends 39 9 34 144 52 23
Adjustments related to
other expenses (9) (13) (5) 33 25 15
Adjustments related to
tax benefit (provision) (11) 1 (11) (62) (27) (13)
-----------------------------------------------------------------------------
Adjustments related to net
investment gains (losses),
net of income taxes 19 (3) 18 115 50 25
Cumulative effect of a change
in accounting, net of income
taxes (1) (2) 0 0 0 0 0 0
-----------------------------------------------------------------------------
Net income $870 $683 $435 $601 $439 $285
=============================================================================
(1) Adjustments related to net investment gains (losses), net of income taxes,
includes amortization of deferred policy acquisition costs, adjustments to
the policyholder dividend obligation, and amounts allocable to certain
participating contracts.
(2) The cumulative effect of a change in accounting, net of income taxes, for
the period ended March 31, 2004, is in accordance with AICPA Statement of
Position 03-1, Accounting and Reporting by Insurance Enterprises for
Certain Nontraditional Long-Duration Contracts and for Separate Accounts.
In September 2004, an AICPA Technical Practice Aid ("SOP 03-1 Technical
Practice Aid") was issued which clarifies recognition of certain
liabilities to comply with SOP 03-1.
(3) Operating earnings for the period ended June 30, 2003 include a $31
million charge, net of income taxes, related to previously deferred
expenses.
25
(METLIFE LOGO)
- --------------------------------------------------------------------------------
INDIVIDUAL OPERATIONS
STATEMENTS OF OPERATING EARNINGS - PRODUCT LEVEL
UNAUDITED (DOLLARS IN MILLIONS)
For the Three Months Ended
---------------------------------------------------------------------------------------------------
December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31,
Traditional Life 2004 2004 2004 2004 2003 2003 2003 2003
- ------------------------------------------------------------------------------------------------------------------------------------
REVENUES
Premiums $1,113 $989 $980 $959 $1,159 $1,037 $1,025 $1,010
Universal life and investment-
type product policy fees 0 0 0 0 0 0 0 0
Investment income, net 825 831 848 843 873 847 846 869
Other revenues 4 1 0 1 6 0 10 0
---------------------------------------------------------------------------------------------------
1,942 1,821 1,828 1,803 2,038 1,884 1,881 1,879
---------------------------------------------------------------------------------------------------
EXPENSES
Policyholder benefits and
dividends 1,629 1,517 1,496 1,480 1,684 1,564 1,512 1,529
Interest credited to policy-
holder account balances 0 0 0 0 0 0 0 0
Capitalization of deferred
policy acquisition costs (50) (44) (42) (41) (42) (39) (43) (47)
Amortization of deferred
policy acquisition costs 74 51 51 56 54 56 62 58
Other expenses 240 213 206 211 236 200 233 221
---------------------------------------------------------------------------------------------------
1,893 1,737 1,711 1,706 1,932 1,781 1,764 1,761
---------------------------------------------------------------------------------------------------
Operating earnings before
provision for income taxes 49 84 117 97 106 103 117 118
Provision for income taxes 17 29 40 33 38 37 42 42
---------------------------------------------------------------------------------------------------
OPERATING EARNINGS $32 $55 $77 $64 $68 $66 $75(1) $76
---------------------------------------------------------------------------------------------------
Net investment gains (losses),
net of income taxes 15 60 20 (15) (43) (20) (13) (13)
Adjustments related to net
investment gains (losses),
net of income taxes 18 (18) (4) 22 57 25 0 19
Cumulative effect of a change
in accounting, net of income
taxes 0 0 0 0 0 0 0 0
---------------------------------------------------------------------------------------------------
Net income $65 $97 $93 $71 $82 $71 $62 $82
===================================================================================================
For the Year-to-Date Period Ended
-----------------------------------------------------------------------------
December 31, September 30, June 30, December 31, September 30, June 30,
Traditional Life 2004 2004 2004 2003 2003 2003
- --------------------------------------------------------------------------------------------------------------
REVENUES
Premiums $4,041 $2,928 $1,939 $4,231 $3,072 $2,035
Universal life and investment-
type product policy fees 0 0 0 0 0 0
Investment income, net 3,347 2,522 1,691 3,435 2,562 1,715
Other revenues 6 2 1 16 10 10
-----------------------------------------------------------------------------
7,394 5,452 3,631 7,682 5,644 3,760
-----------------------------------------------------------------------------
EXPENSES
Policyholder benefits and
dividends 6,122 4,493 2,976 6,289 4,605 3,041
Interest credited to policy-
holder account balances 0 0 0 0 0 0
Capitalization of deferred
policy acquisition costs (177) (127) (83) (171) (129) (90)
Amortization of deferred
policy acquisition costs 232 158 107 230 176 120
Other expenses 870 630 417 890 654 454
-----------------------------------------------------------------------------
7,047 5,154 3,417 7,238 5,306 3,525
-----------------------------------------------------------------------------
Operating earnings before
provision for income taxes 347 298 214 444 338 235
Provision for income taxes 119 102 73 159 121 84
-----------------------------------------------------------------------------
OPERATING EARNINGS $228 $196 $141 $285 $217 151(1)
-----------------------------------------------------------------------------
Net investment gains (losses),
net of income taxes 80 65 5 (89) (46) (26)
Adjustments related to net
investment gains (losses),
net of income taxes 18 0 18 101 44 19
Cumulative effect of a change
in accounting, net of income
taxes 0 0 0 0 0 0
-----------------------------------------------------------------------------
Net income $326 $261 $164 $297 $215 $144
=============================================================================
(1) Operating earnings for the period ended June 30, 2003 includes a $2
million charge, net of income taxes, related to previously deferred
expenses.
26
(METLIFE LOGO)
- --------------------------------------------------------------------------------
INDIVIDUAL OPERATIONS
STATEMENTS OF OPERATING EARNINGS - PRODUCT LEVEL
UNAUDITED (DOLLARS IN MILLIONS)
For the Three Months Ended
----------------------------------------------------------------------------------------------------
December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31,
Variable & Universal Life 2004 2004 2004 2004 2003 2003 2003 2003
- ------------------------------------------------------------------------------------------------------------------------------------
REVENUES
Premiums $0 $0 $0 $0 $0 $0 $0 $0
Universal life and invest-
ment-type product policy
fees 272 279 264 245 301 256 262 255
Investment income, net 149 147 143 140 143 145 144 142
Other revenues (1) 1 (3) 4 4 (1) (1) (2)
----------------------------------------------------------------------------------------------------
420 427 404 389 448 400 405 395
----------------------------------------------------------------------------------------------------
EXPENSES
Policyholder benefits and
dividends 56 76 88 87 126 69 57 87
Interest credited to
policyholder account
balances 114 117 116 113 118 122 117 117
Capitalization of deferred
policy acquisition costs (79) (74) (86) (70) (88) (82) (86) (81)
Amortization of deferred
policy acquisition costs 82 73 52 48 64 47 102 59
Other expenses 186 176 186 175 205 196 205 177
----------------------------------------------------------------------------------------------------
359 368 356 353 425 352 395 359
----------------------------------------------------------------------------------------------------
Operating earnings before
provision for income taxes 61 59 48 36 23 48 10 36
Provision for income taxes 21 20 16 12 8 18 4 13
----------------------------------------------------------------------------------------------------
OPERATING EARNINGS $40 $39 $32 $24 $15 $30 $6(2) $23
----------------------------------------------------------------------------------------------------
Net investment gains
(losses), net of income
taxes (1) 5 (5) 3 (5) (8) 7 (5)
Adjustments related to net
investment gains (losses),
net of income taxes 0 (2) 2 (1) 1 0 0 0
Cumulative effect of a
change in accounting, net
of income taxes (1) 0 0 0 (11) 0 0 0 0
----------------------------------------------------------------------------------------------------
Net income $39 $42 $29 $15 $11 $22 $13 $18
====================================================================================================
For the Year-to-Date Period Ended
-----------------------------------------------------------------------------
December 31, September 30, June 30, December 31, September 30, June 30,
Variable & Universal Life 2004 2004 2004 2003 2003 2003
- --------------------------------------------------------------------------------------------------------------
REVENUES
Premiums $0 $0 $0 $0 $0 $0
Universal life and invest-
ment-type product policy
fees 1,060 788 509 1,074 773 517
Investment income, net 579 430 283 574 431 286
Other revenues 1 2 1 0 (4) (3)
-----------------------------------------------------------------------------
1,640 1,220 793 1,648 1,200 800
-----------------------------------------------------------------------------
EXPENSES
Policyholder benefits and
dividends 307 251 175 339 213 144
Interest credited to
policyholder account
balances 460 346 229 474 356 234
Capitalization of deferred
policy acquisition costs (309) (230) (156) (337) (249) (167)
Amortization of deferred
policy acquisition costs 255 173 100 272 208 161
Other expenses 723 537 361 783 578 382
-----------------------------------------------------------------------------
1,436 1,077 709 1,531 1,106 754
-----------------------------------------------------------------------------
Operating earnings before
provision for income taxes 204 143 84 117 94 46
Provision for income taxes 69 48 28 43 35 17
-----------------------------------------------------------------------------
OPERATING EARNINGS $135 $95 $56 $74 $59 $29(2)
-----------------------------------------------------------------------------
Net investment gains
(losses), net of income
taxes 2 3 (2) (11) (6) 2
Adjustments related to net
investment gains (losses),
net of income taxes (1) (1) 1 1 0 0
Cumulative effect of a
change in accounting, net
of income taxes (1) (11) (11) (11) 0 0 0
-----------------------------------------------------------------------------
Net income $125 $86 $44 $64 $53 $31
=============================================================================
(1) The cumulative effect of a change in accounting, net of income taxes, for
the period ended March 31, 2004, is in accordance with AICPA Statement of
Position 03-1, Accounting and Reporting by Insurance Enterprises for
Certain Nontraditional Long-Duration Contracts and for Separate Accounts.
In September 2004, an AICPA Technical Practice Aid ("SOP 03-1 Technical
Practice Aid") was issued which clarifies recognition of certain
liabilities to comply with SOP 03-1.
(2) Operating earnings for the period ended June 30, 2003 includes a $29
million charge, net of income taxes, related to previously deferred
expenses.
27
(METLIFE LOGO)
- --------------------------------------------------------------------------------
INDIVIDUAL OPERATIONS
STATEMENTS OF OPERATING EARNINGS - PRODUCT LEVEL
UNAUDITED (DOLLARS IN MILLIONS)
For the Three Months Ended
----------------------------------------------------------------------------------------------------
December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31,
Annuities 2004 2004 2004 2004 2003 2003 2003 2003
- ------------------------------------------------------------------------------------------------------------------------------------
REVENUES
Premiums $48 $34 $26 $18 $20 $19 $23 $24
Universal life and invest-
ment-type product policy
fees 177 156 156 151 137 106 95 82
Investment income, net 513 491 494 475 503 489 479 487
Other revenues 11 11 10 7 7 3 7 1
----------------------------------------------------------------------------------------------------
749 692 686 651 667 617 604 594
----------------------------------------------------------------------------------------------------
EXPENSES
Policyholder benefits and
dividends 111 78 58 68 53 55 46 64
Interest credited to
policyholder account
balances 267 266 281 280 299 303 307 296
Capitalization of deferred
policy acquisition costs (154) (149) (169) (181) (148) (158) (149) (131)
Amortization of deferred
policy acquisition costs 62 84 64 59 53 55 41 55
Other expenses 281 268 302 299 281 261 274 234
----------------------------------------------------------------------------------------------------
567 547 536 525 538 516 519 518
----------------------------------------------------------------------------------------------------
Operating earnings before
provision for income taxes 182 145 150 126 129 101 85 76
Provision for income taxes 59 47 49 41 44 34 29 26
----------------------------------------------------------------------------------------------------
OPERATING EARNINGS $123 $98 $101 $85 $85 $67 $56 $50
----------------------------------------------------------------------------------------------------
Net investment gains
(losses), net of income
taxes (58) 9 17 2 (31) (15) (1) (21)
Adjustments related to net
investment gains (losses),
net of income taxes 4 (1) (1) 0 7 1 0 6
Cumulative effect of a
change in accounting, net
of income taxes (1) 0 0 0 11 0 0 0 0
----------------------------------------------------------------------------------------------------
Net income $69 $106 $117 $98 $61 $53 $55 $35
====================================================================================================
For the Year-to-Date Period Ended
-----------------------------------------------------------------------------
December 31, September 30, June 30, December 31, September 30, June 30,
Annuities 2004 2004 2004 2003 2003 2003
- ------------------------------------------------------------------------------------------------------------
REVENUES
Premiums $126 $78 $44 $86 $66 $47
Universal life and invest-
ment-type product policy
fees 640 463 307 420 283 177
Investment income, net 1,973 1,460 969 1,958 1,455 966
Other revenues 39 28 17 18 11 8
-----------------------------------------------------------------------------
2,778 2,029 1,337 2,482 1,815 1,198
-----------------------------------------------------------------------------
EXPENSES
Policyholder benefits and
dividends 315 204 126 218 165 110
Interest credited to
policyholder account
balances 1,094 827 561 1,205 906 603
Capitalization of deferred
policy acquisition costs (653) (499) (350) (586) (438) (280)
Amortization of deferred
policy acquisition costs 269 207 123 204 151 96
Other expenses 1,150 869 601 1,050 769 508
-----------------------------------------------------------------------------
2,175 1,608 1,061 2,091 1,553 1,037
-----------------------------------------------------------------------------
Operating earnings before
provision for income taxes 603 421 276 391 262 161
Provision for income taxes 196 137 90 133 89 55
-----------------------------------------------------------------------------
OPERATING EARNINGS $407 $284 $186 $258 $173 $106
-----------------------------------------------------------------------------
Net investment gains
(losses), net of income
taxes (30) 28 19 (68) (37) (22)
Adjustments related to net
investment gains (losses),
net of income taxes 2 (2) (1) 14 7 6
Cumulative effect of a
change in accounting, net
of income taxes (1) 11 11 11 0 0 0
-----------------------------------------------------------------------------
Net income $390 $321 $215 $204 $143 $90
=============================================================================
(1) The cumulative effect of a change in accounting, net of income taxes, for
the period ended March 31, 2004, is in accordance with AICPA Statement of
Position 03-1, Accounting and Reporting by Insurance Enterprises for
Certain Nontraditional Long-Duration Contracts and for Separate Accounts.
In September 2004, an AICPA Technical Practice Aid ("SOP 03-1 Technical
Practice Aid") was issued which clarifies recognition of certain
liabilities to comply with SOP 03-1.
28
(METLIFE LOGO)
- --------------------------------------------------------------------------------
INDIVIDUAL OPERATIONS
STATEMENTS OF OPERATING EARNINGS - PRODUCT LEVEL
UNAUDITED (DOLLARS IN MILLIONS)
For the Three Months Ended
----------------------------------------------------------------------------------------------------
December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31,
Other 2004 2004 2004 2004 2003 2003 2003 2003
- -----------------------------------------------------------------------------------------------------------------------------------
REVENUES
Premiums $3 $0 $1 $1 $5 $8 $7 $7
Universal life and invest-
ment-type product policy
fees 37 32 33 29 27 24 21 23
Investment income, net 65 59 64 63 66 69 60 65
Other revenues 98 96 99 105 99 94 93 87
----------------------------------------------------------------------------------------------------
203 187 197 198 197 195 181 182
----------------------------------------------------------------------------------------------------
EXPENSES
Policyholder benefits and
dividends 5 10 11 9 0 15 10 12
Interest credited to
policyholder account
balances 31 29 30 30 29 27 28 30
Capitalization of deferred
policy acquisition costs (1) (1) (1) (1) (1) (1) (2) (1)
Amortization of deferred
policy acquisition costs 10 2 3 3 3 4 2 3
Other expenses 150 132 143 135 158 138 121 121
----------------------------------------------------------------------------------------------------
195 172 186 176 189 183 159 165
----------------------------------------------------------------------------------------------------
Operating earnings before
provision for income taxes 8 15 11 22 8 12 22 17
Provision for income taxes 3 6 4 8 3 4 8 6
----------------------------------------------------------------------------------------------------
OPERATING EARNINGS $5 $9 $7 $14 $5 $8 $14 $11
----------------------------------------------------------------------------------------------------
Net investment gains
(losses), net of income
taxes 9 (6) 0 (9) 3 1 0 (6)
Adjustments related to net
investment gains (losses),
net of income taxes 0 0 0 0 0 (1) 0 1
Cumulative effect of a
change in accounting, net
of income taxes 0 0 0 0 0 0 0 0
----------------------------------------------------------------------------------------------------
Net income $14 $3 $7 $5 $8 $8 $14 $6
====================================================================================================
For the Year-to-Date Period Ended
----------------------------------------------------------------------------
December 31, September 30, June 30, December 31, September 30, June 30,
Other 2004 2004 2004 2003 2003 2003
- ------------------------------------------------------------------------------------------------------------
REVENUES
Premiums $5 $2 $2 $27 $22 $14
Universal life and invest-
ment-type product policy
fees 131 94 62 95 68 44
Investment income, net 251 186 127 260 194 125
Other revenues 398 300 204 373 274 180
----------------------------------------------------------------------------
785 582 395 755 558 363
----------------------------------------------------------------------------
EXPENSES
Policyholder benefits and
dividends 35 30 20 37 37 22
Interest credited to
policyholder account
balances 120 89 60 114 85 58
Capitalization of deferred
policy acquisition costs (4) (3) (2) (5) (4) (3)
Amortization of deferred
policy acquisition costs 18 8 6 12 9 5
Other expenses 560 410 278 538 380 242
----------------------------------------------------------------------------
729 534 362 696 507 324
----------------------------------------------------------------------------
Operating earnings before
provision for income taxes 56 48 33 59 51 39
Provision for income taxes 21 18 12 21 18 14
----------------------------------------------------------------------------
OPERATING EARNINGS $35 $30 $21 $38 $33 $25
----------------------------------------------------------------------------
Net investment gains
(losses), net of income
taxes (6) (15) (9) (2) (5) (6)
Adjustments related to net
investment gains (losses),
net of income taxes 0 0 0 0 0 1
Cumulative effect of a
change in accounting, net
of income taxes 0 0 0 0 0 0
----------------------------------------------------------------------------
Net income $29 $15 $12 $36 $28 $20
============================================================================
29
(METLIFE LOGO)
- --------------------------------------------------------------------------------
INDIVIDUAL OPERATIONS
PREMIUMS AND DEPOSITS BY PRODUCT AND MANUFACTURER
AND MUTUAL FUND SALES
For the Three Months Ended
----------------------------------------------------------------------------------------------
December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31,
Unaudited (Dollars in millions) 2004 2004 2004 2004 2003 2003 2003 2003
- ------------------------------------------------------------------------------------------------------------------------------------
PREMIUMS AND DEPOSITS BY PRODUCT (1)
TOTAL (2)
Traditional Life
1st Year (3) $51 $44 $47 $45 $53 $50 $49 $53
Renewal 1,163 $1,017 1,030 965 1,228 1,052 1,053 1,000
Variable & Universal Life
Variable 1st Year excluding
Single Premium COLI/BOLI (3) 51 51 61 51 53 86 59 91
Universal 1st Year excluding
Single Premium COLI/BOLI (3) 118 125 116 104 108 82 71 55
Single Premium COLI/BOLI 4 20 49 3 27 18 3 13
Renewal 452 447 418 471 414 392 393 455
Annuities (3) 2,566 2,410 2,882 3,436 2,844 2,843 2,933 2,611
Other 252 245 251 258 335 287 301 281
---------------------------------------------------------------------------------------------
Total Premiums and Deposits $4,657 $4,359 $4,854 $5,333 $5,062 $4,810 $4,862 $4,559
=============================================================================================
PREMIUMS AND DEPOSITS TO SEPARATE
ACCOUNTS
Variable & Universal Life $294 $300 $287 $284 $275 $294 $273 $301
Annuities 1,525 1,352 1,523 2,120 1,782 1,437 1,229 940
Other 157 152 157 160 258 171 191 167
---------------------------------------------------------------------------------------------
Total Separate Accounts $1,976 $1,804 $1,967 $2,564 $2,315 $1,902 $1,693 $1,408
=============================================================================================
FIRST YEAR LIFE PREMIUMS AND DEPOSITS
BY MANUFACTURER (4)
MetLife $85 $78 $85 $79 $81 $74 $70 $73
New England Financial 32 28 38 28 35 26 29 32
General American 97 128 143 90 119 128 76 99
MetLife Investors Group 10 6 7 6 6 8 7 8
---------------------------------------------------------------------------------------------
Total First Year Life Premiums and
Deposits $224 $240 $273 $203 $241 $236 $182 $212
=============================================================================================
ANNUITY DEPOSITS BY TYPE
Fixed Annuity Deposits $497 $403 $659 $506 $257 $320 $340 $424
Variable Annuity Deposits 2,069 2,007 2,223 2,930 2,587 2,523 2,593 2,187
---------------------------------------------------------------------------------------------
Total Annuity Deposits $2,566 $2,410 $2,882 $3,436 $2,844 $2,843 $2,933 $2,611
=============================================================================================
ANNUITY DEPOSITS BY MANUFACTURER (5)
MetLife $904 $927 $965 $1,030 $870 $950 $1,053 $974
New England Financial 191 169 197 252 249 235 233 211
General American 10 13 11 10 13 9 11 10
MetLife Investors Group 1,461 1,301 1,709 2,144 1,712 1,649 1,636 1,416
---------------------------------------------------------------------------------------------
Total Annuity Deposits $2,566 $2,410 $2,882 $3,436 $2,844 $2,843 $2,933 $2,611
=============================================================================================
MUTUAL FUND SALES
Proprietary $35 $38 $53 $65 $59 $47 $49 $38
Third Party 900 651 811 980 1,192 722 809 753
---------------------------------------------------------------------------------------------
Total Mutual Fund Sales $935 $689 $864 $1,045 $1,251 $769 $858 $791
============================================================================================
(1) Statutory premiums direct and assumed.
(2) Includes premiums and deposits to separate accounts.
(3) Excludes company-sponsored internal exchanges.
(4) Approximately 11% of MetLife manufactured life insurance premiums and
deposits were sold by other-than MetLife Financial Services agents during
the three months ended December 31, 2004 (4% sold by General American; 6%
sold by New England Financial; and 1% sold by MetLife Resources).
Approximately 4% of New England Financial manufactured life insurance
premiums and deposits were sold by other-than New England Financial agents
during the three months ended December 31, 2004 (4% sold by MetLife
Financial Services). Approximately 73% of General American manufactured
life insurance premiums and deposits were sold by other-than General
American agents during the three months ended December 31, 2004 (49% sold
by MetLife Financial Services; 24% sold by New England Financial).
Approximately 7% of MetLife Investors Group manufactured life insurance
premiums and deposits were sold by other-than MetLife Investors Group
Wholesalers during the three months ended December 31, 2004 (4% sold by
MetLife Financial Services; 2% sold by General American; and 1% sold by
New England Financial).
(5) Approximately 24% of MetLife manufactured annuity deposits were sold by
other-than MetLife Financial Services agents during the three months ended
December 31, 2004 (24% MetLife Resources). Approximately 6% of MetLife
Investors Group manufactured annuity deposits were sold by other-than
MetLife Investors Group Wholesalers during the three months ended December
31, 2004 (3% Walnut Street Securities; 2% MetLife Resources; and 1% New
England Financial).
30
(METLIFE LOGO)
- --------------------------------------------------------------------------------
INDIVIDUAL OPERATIONS
ADDITIONAL STATISTICAL INFORMATION
At or for the Three Months Ended
----------------------------------------------------------------------------------------------
December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31,
Unaudited 2004 2004 2004 2004 2003 2003 2003 2003
- ------------------------------------------------------------------------------------------------------------------------------------
PERCENTAGE OF PREMIUMS AND DEPOSITS
TO SEPARATE ACCOUNTS, EXCLUDING
TRANSFERS FROM GENERAL ACCOUNT:
Variable & Universal Life 43.0% 46.4% 44.1% 45.0% 45.6% 50.8% 52.0% 49.1%
Annuities 58.3% 56.1% 52.9% 61.7% 62.6% 50.6% 41.9% 36.0%
Other 62.3% 62.2% 62.5% 62.1% 77.3% 59.5% 63.3% 59.5%
MORTALITY AS A PERCENTAGE OF
EXPECTED 85.6% 78.8% 78.1% 85.4% 84.2% 80.3% 99.4%(4) 87.2%
LAPSES / SURRENDERS (GENERAL AND
SEPARATE ACCOUNT) (1)
Traditional Life 6.1% 6.2% 6.2% 6.3% 6.1% 6.0% 6.0% 5.8%
Variable & Universal Life 7.0% 7.0% 7.1% 7.0% 7.0% 7.2% 7.2% 6.8%
Variable Annuities 7.6% 7.5% 7.7% 7.8% 8.2% 8.7% 9.0% 9.2%
Fixed Annuities 6.7% 7.6% 8.0% 7.4% 6.6% 6.7% 6.4% 6.7%
NUMBER OF SALES REPRESENTATIVES
MetLife Financial Services 5,597 5,700 5,633 5,594 5,531 5,587 5,728 5,798
New England Financial 2,383 2,504 2,553 2,531 2,845 2,992 3,004 2,916
General American (2) 380 430 448 448 429 471 522 557
Independent Distribution
Wholesalers 100 102 101 95 91 91 89 83
MetLife Resources 427 399 397 397 401 384 379 362
Walnut Street Securities (3) 1,359 1,370 1,413 1,468 1,462 1,649 1,823 1,923
P&C Specialists 544 529 500 461 437 416 409 396
----------------------------------------------------------------------------------------------
Total Agents 10,790 11,034 11,045 10,994 11,196 11,590 11,954 12,035
==============================================================================================
(1) Lapses/Surrenders rates are calculated for the most recent 12 months of
experience.
(2) Based on minimum annual production of $25,000 in life insurance sales.
(3) At December 31, 2004, the number of Walnut Street Securities
representatives includes 140 brokers who are also reported as General
American agents above.
(4) Includes a $45 million pre-tax death benefit that was 100% reinsured.
Excluding this item, the mortality ratio was 88.4%.
31
(METLIFE LOGO)
- --------------------------------------------------------------------------------
INDIVIDUAL OPERATIONS
FUTURE POLICY BENEFITS AND POLICYHOLDER ACCOUNT BALANCES
AND SEPARATE ACCOUNT LIABILITIES
UNAUDITED (DOLLARS IN MILLIONS)
FUTURE POLICY BENEFITS AND POLICYHOLDER ACCOUNT BALANCES
For the Three Months Ended
-----------------------------------------------------------------------------------------------
December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31,
Traditional Life 2004 2004 2004 2004 2003 2003 2003 2003
- ------------------------------------------------------------------------------------------------------------------------------------
Balance, beginning of period $48,893 $48,828 $48,613 $48,503 $48,140 $47,835 $47,572 $47,397
Premiums and deposits (1) 1,199 1,069 1,067 1,038 1,246 975 1,043 1,026
Interest on reserves 494 493 491 489 486 483 479 476
Surrenders and withdrawals (472) (466) (462) (477) (478) (407) (402) (395)
Benefit payments (458) (464) (437) (486) (420) (456) (492) (484)
Other (447) (567) (444) (454) (471) (290) (365) (448)
-----------------------------------------------------------------------------------------------
Balance, end of period $49,209 $48,893 $48,828 $48,613 $48,503 $48,140 $47,835 $47,572
===============================================================================================
For the Three Months Ended
-----------------------------------------------------------------------------------------------
December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31,
Variable & Universal Life 2004 2004 2004 2004 2003 2003 2003 2003
- ------------------------------------------------------------------------------------------------------------------------------------
Balance, beginning of period $9,887 $9,797 $9,644 $9,475 $9,327 $9,221 $9,140 $8,993
Premiums and deposits (1) (2) 342 340 370 346 318 272 247 287
Interest on reserves 115 114 115 119 122 121 120 118
Surrenders and withdrawals (168) (153) (158) (233) (137) (117) (122) (113)
Net transfers from (to) separate
account 54 44 56 75 83 54 65 66
Policy charges (228) (224) (204) (199) (199) (195) (184) (198)
Benefit payments (24) (25) (27) (34) (22) (22) (24) (25)
Other 13 (6) 1 95 (17) (7) (21) 12
-----------------------------------------------------------------------------------------------
Balance, end of period $9,991 $9,887 $9,797 $9,644 $9,475 $9,327 $9,221 $9,140
===============================================================================================
For the Three Months Ended
-----------------------------------------------------------------------------------------------
December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31,
Annuities 2004 2004 2004 2004 2003 2003 2003 2003
- ------------------------------------------------------------------------------------------------------------------------------------
Balance, beginning of period $31,955 $31,908 $31,491 $31,350 $31,258 $30,772 $29,917 $28,935
Premiums and deposits (1) (2) 1,182 1,120 1,432 1,426 1,126 1,492 1,836 1,766
Interest on reserves 339 297 390 298 343 361 357 359
Surrenders and withdrawals (677) (517) (740) (797) (647) (678) (665) (667)
Net transfers from (to) separate
account (425) (339) (566) (610) (653) (562) (517) (171)
Policy charges (1) (8) (4) (6) 2 0 (3) (1)
Benefit payments (191) (235) (99) (128) (70) (129) (143) (168)
Other 2 (271) 4 (42) (9) 2 (10) (136)
-----------------------------------------------------------------------------------------------
Balance, end of period $32,184 $31,955 $31,908 $31,491 $31,350 $31,258 $30,772 $29,917
===============================================================================================
SEPARATE ACCOUNT LIABILITIES
For the Three Months Ended
-----------------------------------------------------------------------------------------------
December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31,
Variable & Universal Life 2004 2004 2004 2004 2003 2003 2003 2003
- ------------------------------------------------------------------------------------------------------------------------------------
Balance, beginning of period $7,258 $7,130 $6,989 $6,835 $6,424 $6,149 $5,482 $5,489
Premiums and deposits (1) 294 299 287 284 275 294 273 301
Investment performance 583 (123) 85 191 376 177 603 (105)
Surrenders and withdrawals (224) (98) (104) (177) (87) (74) (72) (71)
Net transfers from (to) fixed
account (54) (44) (56) (75) (83) (54) (65) (66)
Policy charges (72) (69) (71) (69) (70) (68) (72) (66)
Other 0 163 0 0 0 0 0 0
-----------------------------------------------------------------------------------------------
Balance, end of period $7,785 $7,258 $7,130 $6,989 $6,835 $6,424 $6,149 $5,482
===============================================================================================
For the Three Months Ended
-----------------------------------------------------------------------------------------------
December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31,
Annuities 2004 2004 2004 2004 2003 2003 2003 2003
- ------------------------------------------------------------------------------------------------------------------------------------
Balance, beginning of period $33,491 $32,989 $31,505 $28,667 $24,310 $22,133 $18,464 $18,270
Premiums and deposits (1) 1,524 1,353 1,524 2,120 1,782 1,438 1,229 940
Investment performance 3,039 (413) 144 834 2,520 734 2,500 (435)
Surrenders and withdrawals (744) (668) (642) (617) (508) (475) (508) (423)
Net transfers from (to) fixed
account 425 339 566 610 653 562 517 171
Policy charges (138) (109) (112) (105) (90) (82) (69) (59)
Other 0 0 4 (4) 0 0 0 0
-----------------------------------------------------------------------------------------------
Balance, end of period $37,597 $33,491 $32,989 $31,505 $28,667 $24,310 $22,133 $18,464
===============================================================================================
(1) Includes company-sponsored internal exchanges.
(2) Includes premiums and deposits directed to the General Account investment
option of a variable life or variable annuity product.
32
(METLIFE LOGO)
- --------------------------------------------------------------------------------
INDIVIDUAL OPERATIONS
INSURANCE EXPENSES AND OTHER
EXPENSES BY MAJOR CATEGORY
For the Three Months Ended
-----------------------------------------------------------------------------------------------
December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31,
Unaudited (Dollars in millions) 2004 2004 2004 2004 2003 2003 2003 2003
- ------------------------------------------------------------------------------------------------------------------------------------
INSURANCE EXPENSES (NET OF
CAPITALIZATION OF DAC)
Insurance Expenses $753 $705 $752 $757 $775 $709 $758 $682
DAC Capitalization (1) (308) (300) (333) (324) (336) (309) (304) (285)
-----------------------------------------------------------------------------------------------
Net $445 $405 $419 $433 $439 $400 $454 $397
===============================================================================================
OTHER EXPENSES BY MAJOR CATEGORY
Commissions $218 $218 $241 $252 $244 $220 $214 $195
Other deferrable expenses 114 103 114 92 108 101 107 113
Direct and allocated expenses, not
deferred 370 327 335 353 347 322 371 310
Pension and other post-retirement
benefit costs 27 28 32 31 50 41 40 36
Premium taxes and other taxes,
licenses and fees 24 29 30 29 26 25 26 28
-----------------------------------------------------------------------------------------------
Subtotal Insurance Expenses $753 $705 $752 $757 $775 $709 $758 $682
Broker-dealer and other expenses 141 126 134 116 150 124 118 110
Reinsurance allowances (37) (42) (49) (53) (45) (38) (43) (39)
-----------------------------------------------------------------------------------------------
Total Other Expenses $857 $789 $837 $820 $880 $795 $833 $753
===============================================================================================
(1) Excludes $24 million, $32 million, $35 million, $31 million, $57 million,
$29 million, $24 million, and $25 million, of DAC capitalization related to
reinsurance allowances for the three months ended December 31, 2004,
September 30, 2004, June 30, 2004, March 31, 2004, December 31, 2003,
September 30, 2003, June 30, 2003, and March 31, 2003, respectively.
33
(METLIFE LOGO)
- --------------------------------------------------------------------------------
INDIVIDUAL OPERATIONS
SPREADS BY PRODUCT
UNAUDITED
For the Three Months Ended
-----------------------------------------------------------------------------------------------
December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31,
VARIABLE & UNIVERSAL LIFE 2004 2004 2004 2004 2003 2003 2003 2003
- ------------------------------------------------------------------------------------------------------------------------------------
ANNUALIZED GENERAL ACCOUNT
SPREADS BY PRODUCT (%)
Investment income yield 7.00% 7.04% 7.05% 6.98% 7.23% 7.25% 7.31% 7.39%
Average crediting rate 5.08% 5.17% 5.25% 5.26% 5.50% 5.63% 5.57% 5.64%
-----------------------------------------------------------------------------------------------
Spread 1.92% 1.87% 1.80% 1.72% 1.73% 1.62% 1.74% 1.75%
===============================================================================================
For the Three Months Ended
-----------------------------------------------------------------------------------------------
December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31,
ANNUITIES 2004 2004 2004 2004 2003 2003 2003 2003
- ------------------------------------------------------------------------------------------------------------------------------------
ANNUALIZED GENERAL ACCOUNT
SPREADS BY PRODUCT (%)
Investment income yield 6.37% 6.08% 6.23% 5.85% 6.50% 6.50% 6.31% 6.64%
Average crediting rate 3.57% 3.64% 3.79% 3.90% 4.16% 4.28% 4.36% 4.47%
-----------------------------------------------------------------------------------------------
Spread 2.80% 2.44% 2.44% 1.95% 2.34% 2.22% 1.95% 2.17%
===============================================================================================
34
(METLIFE LOGO)
- --------------------------------------------------------------------------------
AUTO & HOME OPERATIONS
STATEMENTS OF OPERATING EARNINGS - TOTAL
UNAUDITED (DOLLARS IN MILLIONS)
For the Three Months Ended
----------------------------------------------------------------------------------------------
December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31,
Auto & Home Operations 2004 2004 2004 2004 2003 2003 2003 2003
- ------------------------------------------------------------------------------------------------------------------------------------
REVENUES
Earned premiums $737 $740 $734 $737 $740 $735 $721 $712
Investment income, net 41 40 44 46 39 39 41 39
Other revenues 12 8 6 9 9 10 4 9
----------------------------------------------------------------------------------------------
790 788 784 792 788 784 766 760
----------------------------------------------------------------------------------------------
EXPENSES
Losses 398 460 413 446 447 465 446 452
Loss adjustment expense 99 93 82 90 89 78 81 82
Other expenses 210 194 193 198 184 187 186 199
----------------------------------------------------------------------------------------------
707 747 688 734 720 730 713 733
----------------------------------------------------------------------------------------------
Operating earnings before provision
(benefit) for income taxes 83 41 96 58 68 54 53 27
Provision (benefit) for income taxes 20 7 25 12 15 12 11 (3)
----------------------------------------------------------------------------------------------
OPERATING EARNINGS $63 $34 $71 $46 $53 $42 $42 $30
==============================================================================================
NET INCOME RECONCILIATION
- -------------------------
Operating earnings $63 $34 $71 $46 $53 $42 $42 $30
Net investment gains (losses) (3) (1) (5) 0 (11) 2 (2) (4)
Minority interest - net
investment gains (losses) 0 0 0 0 0 0 0 0
Net investment gains (losses) tax
benefit (provision) 1 0 2 0 4 (1) 1 1
----------------------------------------------------------------------------------------------
Net investment gains (losses), net
of income taxes (2) (1) (3) 0 (7) 1 (1) (3)
Adjustments related to
policyholder benefits and
dividends 0 0 0 0 0 0 0 0
Adjustments related to other
expenses 0 0 0 0 0 0 0 0
Adjustments related to tax
benefit (provision) 0 0 0 0 0 0 0 0
----------------------------------------------------------------------------------------------
Adjustments related to net investment
gains (losses), net of income taxes 0 0 0 0 0 0 0 0
Cumulative effect of a change in
accounting, net of income taxes 0 0 0 0 0 0 0 0
----------------------------------------------------------------------------------------------
Net income $61 $33 $68 $46 $46 $43 $41 $27
==============================================================================================
For the Year-to-Date Period Ended
---------------------------------------------------------------------------
December 31, September 30, June 30, December 31, September 30, June 30,
Auto & Home Operations 2004 2004 2004 2003 2003 2003
- -----------------------------------------------------------------------------------------------------------------
REVENUES
Earned premiums $2,948 $2,211 $1,471 $2,908 $2,168 $1,433
Investment income, net 171 130 90 158 119 80
Other revenues 35 23 15 32 23 13
---------------------------------------------------------------------------
3,154 2,364 1,576 3,098 2,310 1,526
---------------------------------------------------------------------------
EXPENSES
Losses 1,717 1,319 859 1,810 1,363 898
Loss adjustment expense 364 265 172 330 241 163
Other expenses 795 585 391 756 572 385
---------------------------------------------------------------------------
2,876 2,169 1,422 2,896 2,176 1,446
---------------------------------------------------------------------------
Operating earnings before provision
(benefit) for income taxes 278 195 154 202 134 80
Provision (benefit) for income taxes 64 44 37 35 20 8
---------------------------------------------------------------------------
OPERATING EARNINGS $214 $151 $117 $167 $114 $72
===========================================================================
NET INCOME RECONCILIATION
- -------------------------
Operating earnings $214 $151 $117 $167 $114 $72
Net investment gains (losses) (9) (6) (5) (15) (4) (6)
Minority interest - net
investment gains (losses) 0 0 0 0 0 0
Net investment gains (losses) tax
benefit (provision) 3 2 2 5 1 2
---------------------------------------------------------------------------
Net investment gains (losses), net
of income taxes (6) (4) (3) (10) (3) (4)
Adjustments related to
policyholder benefits and
dividends 0 0 0 0 0 0
Adjustments related to other
expenses 0 0 0 0 0 0
Adjustments related to tax
benefit (provision) 0 0 0 0 0 0
---------------------------------------------------------------------------
Adjustments related to net investment
gains (losses), net of income taxes 0 0 0 0 0 0
Cumulative effect of a change in
accounting, net of income taxes 0 0 0 0 0 0
---------------------------------------------------------------------------
Net income $208 $147 $114 $157 $111 $68
===========================================================================
35
(METLIFE LOGO)
- --------------------------------------------------------------------------------
AUTO & HOME OPERATIONS
STATEMENTS OF OPERATING EARNINGS - PRODUCT LEVEL
UNAUDITED (DOLLARS IN MILLIONS)
For the Three Months Ended
----------------------------------------------------------------------------------------------
December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31,
Auto 2004 2004 2004 2004 2003 2003 2003 2003
- ------------------------------------------------------------------------------------------------------------------------------------
REVENUES
Earned premiums $538 $539 $538 $542 $545 $545 $535 $530
Investment income, net 34 30 34 36 26 27 29 27
Other revenues 6 6 5 6 5 7 7 6
----------------------------------------------------------------------------------------------
578 575 577 584 576 579 571 563
----------------------------------------------------------------------------------------------
EXPENSES (1)
Losses 312 300 296 351 357 359 347 366
Loss adjustment expense 85 66 63 72 76 61 68 75
Other expenses 148 136 135 139 126 131 131 143
----------------------------------------------------------------------------------------------
545 502 494 562 559 551 546 584
----------------------------------------------------------------------------------------------
Operating earnings (loss) before
provision (benefit) for income
taxes 33 73 83 22 17 28 25 (21)
Provision (benefit) for income taxes 3 21 22 0 (2) 5 4 (17)
----------------------------------------------------------------------------------------------
OPERATING EARNINGS (LOSS) $30 $52 $61 $22 $19 $23 $21 ($4)
----------------------------------------------------------------------------------------------
Net investment gains (losses), net of
income taxes (1) (1) (3) 0 (5) 0 0 (2)
Adjustments related to net investment
gains (losses), net of income
taxes 0 0 0 0 0 0 0 0
Cumulative effect of a change in
accounting, net of income taxes 0 0 0 0 0 0 0 0
----------------------------------------------------------------------------------------------
Net income $29 $51 $58 $22 $14 $23 $21 ($6)
==============================================================================================
For the Year-to-Date Period Ended
----------------------------------------------------------------------------
December 31, September 30, June 30, December 31, September 30, June 30,
Auto 2004 2004 2004 2003 2003 2003
- ------------------------------------------------------------------------------------------------------------------
REVENUES
Earned premiums $2,157 $1,619 $1,080 $2,155 $1,610 $1,065
Investment income, net 134 100 70 109 83 56
Other revenues 23 17 11 25 20 13
----------------------------------------------------------------------------
2,314 1,736 1,161 2,289 1,713 1,134
----------------------------------------------------------------------------
EXPENSES (1)
Losses $1,259 $947 647 1,429 1,072 713
Loss adjustment expense 286 201 135 280 204 143
Other expenses 558 410 274 531 405 274
----------------------------------------------------------------------------
2,103 1,558 1,056 2,240 1,681 1,130
----------------------------------------------------------------------------
Operating earnings (loss) before
provision (benefit) for income
taxes 211 178 105 49 32 4
Provision (benefit) for income taxes 46 43 22 (10) (8) (13)
----------------------------------------------------------------------------
OPERATING EARNINGS (LOSS) $165 $135 $83 $59 $40 $17
----------------------------------------------------------------------------
Net investment gains (losses), net of
income taxes (5) (4) (3) (7) (2) (2)
Adjustments related to net investment
gains (losses), net of income
taxes 0 0 0 0 0 0
Cumulative effect of a change in
accounting, net of income taxes 0 0 0 0 0 0
----------------------------------------------------------------------------
Net income $160 $131 $80 $52 $38 $15
============================================================================
(1) Certain amounts in prior periods presented have been reclassified/restated
to conform with current period presentation.
36
(METLIFE LOGO)
- --------------------------------------------------------------------------------
AUTO & HOME OPERATIONS
STATEMENTS OF OPERATING EARNINGS - PRODUCT LEVEL
UNAUDITED (DOLLARS IN MILLIONS)
-------------------------------------------------------------------------------------------------------
For the Three Months Ended
December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31,
Homeowners 2004 2004 2004 2004 2003 2003 2003 2003
- ------------------------------------------------------------------------------------------------------------------------------------
REVENUES (1)
Earned premiums $188 $ 188 $185 $182 $183 $177 $173 $167
Investment income, net 6 11 9 9 11 12 10 10
Other revenues 2 2 1 1 2 1 2 1
-------------------------------------------------------------------------------------------------------
196 201 195 192 196 190 185 178
-------------------------------------------------------------------------------------------------------
EXPENSES (1)
Losses 83 155 106 89 82 95 96 76
Loss adjustment expense 13 26 19 18 12 16 13 8
Other expenses 57 52 54 52 52 52 50 48
-------------------------------------------------------------------------------------------------------
153 233 179 159 146 163 159 132
-------------------------------------------------------------------------------------------------------
Operating earnings before
provision for income
taxes 43 (32) 16 33 50 27 26 46
Provision for income taxes 15 (14) 4 11 16 8 6 14
-------------------------------------------------------------------------------------------------------
OPERATING EARNINGS $28 ($18) $12 $22 $34 $19 $20 $32
-------------------------------------------------------------------------------------------------------
Net investment gains
(losses), net of
income taxes (1) 0 0 0 (2) 1 (1) (1)
Adjustments related to net
investment gains
(losses), net of
income taxes 0 0 0 0 0 0 0 0
Cumulative effect of a
change in accounting,
net of income taxes 0 0 0 0 0 0 0 0
-------------------------------------------------------------------------------------------------------
Net income $ 27 ($18) $12 $22 $32 $20 $19 $31
=======================================================================================================
For the Year-to-Date Period Ended
-------------------------------------------------------------------------------
December 31, September 30, June 30, December 31, September 30, June 30,
Homeowners 2004 2004 2004 2003 2003 2003
- ------------------------------------------------------------------------------------------------------------
REVENUES (1)
Earned premiums $743 $555 $367 $700 $517 $340
Investment income, net 35 29 18 43 32 20
Other revenues 6 4 2 6 4 3
-------------------------------------------------------------------------------
784 588 387 749 553 363
-------------------------------------------------------------------------------
EXPENSES (1)
Losses $433 $350 195 349 267 172
Loss adjustment expense 76 63 37 49 37 21
Other expenses 215 158 106 202 150 98
-------------------------------------------------------------------------------
724 571 338 600 454 291
-------------------------------------------------------------------------------
Operating earnings before
provision for income
taxes 60 17 49 149 99 72
Provision for income taxes 16 1 15 44 28 20
-------------------------------------------------------------------------------
OPERATING EARNINGS $44 $16 $34 $105 $71 $52
-------------------------------------------------------------------------------
Net investment gains
(losses), net of
income taxes (1) 0 0 (3) (1) (2)
Adjustments related to net
investment gains
(losses), net of
income taxes 0 0 0 0 0 0
Cumulative effect of a
change in accounting,
net of income taxes 0 0 0 0 0 0
-------------------------------------------------------------------------------
Net income $43 $16 $34 $102 $70 $ 50
===============================================================================
(1) Certain amounts in prior periods presented have been reclassified/restated
to conform with current period presentation.
37
(METLIFE LOGO)
- --------------------------------------------------------------------------------
AUTO & HOME OPERATIONS
STATEMENTS OF OPERATING EARNINGS - PRODUCT LEVEL
UNAUDITED (DOLLARS IN MILLIONS)
For the Three Months Ended
--------------------------------------------------------------------------------------------------
December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31,
Other 2004 2004 2004 2004 2003 2003 2003 2003
- ------------------------------------------------------------------------------------------------------------------------------------
REVENUES (1)
Earned premiums $11 $13 $11 $13 $12 $13 $13 $15
Investment income, net 1 (1) 1 1 2 0 2 2
Other revenues 4 0 0 2 2 2 (5) 2
--------------------------------------------------------------------------------------------------
16 12 12 16 16 15 10 19
--------------------------------------------------------------------------------------------------
EXPENSES (1)
Losses 3 5 11 6 8 11 3 10
Loss adjustment expense 1 1 0 0 1 1 0 (1)
Other expenses 5 6 4 7 6 4 5 8
--------------------------------------------------------------------------------------------------
9 12 15 13 15 16 8 17
--------------------------------------------------------------------------------------------------
Operating earnings (loss) before
provision (benefit) for
income taxes 7 0 (3) 3 1 (1) 2 2
Provision (benefit) for income
taxes 2 0 (1) 1 1 (1) 1 0
--------------------------------------------------------------------------------------------------
OPERATING EARNINGS $5 $0 ($2) $2 $0 $0 $1 $2
--------------------------------------------------------------------------------------------------
Net investment gains (losses),
net of income taxes 0 0 0 0 0 0 0 0
Adjustments related to net
investment gains (losses),
net of income taxes 0 0 0 0 0 0 0 0
Cumulative effect of a change in
accounting, net of income
taxes 0 0 0 0 0 0 0 0
--------------------------------------------------------------------------------------------------
Net income $5 $0 ($2) $2 $0 $0 $1 $2
==================================================================================================
For the Year-to-Date Period Ended
----------------------------------------------------------------------------
December 31, September 30, June 30, December 31, September 30, June 30,
Other 2004 2004 2004 2003 2003 2003
- --------------------------------------------------------------------------------------------------------------
REVENUES (1)
Earned premiums $48 $37 $24 $53 $41 $28
Investment income, net 2 1 2 6 4 4
Other revenues 6 2 2 1 (1) (3)
----------------------------------------------------------------------------
56 40 28 60 44 29
----------------------------------------------------------------------------
EXPENSES (1)
Losses $25 $22 17 32 24 13
Loss adjustment expense 2 1 0 1 0 (1)
Other expenses 22 17 11 23 17 13
----------------------------------------------------------------------------
49 40 28 56 41 25
----------------------------------------------------------------------------
Operating earnings (loss) before
provision (benefit) for
income taxes 7 0 0 4 3 4
Provision (benefit) for income
taxes 2 0 0 1 0 1
----------------------------------------------------------------------------
OPERATING EARNINGS $5 $0 $0 $3 $3 $3
----------------------------------------------------------------------------
Net investment gains (losses),
net of income taxes 0 0 0 0 0 0
Adjustments related to net
investment gains (losses),
net of income taxes 0 0 0 0 0 0
Cumulative effect of a change in
accounting, net of income
taxes 0 0 0 0 0 0
----------------------------------------------------------------------------
Net income $5 $0 $0 $3 $3 $3
============================================================================
(1) Certain amounts in prior periods presented have been reclassified/restated
to conform with current period presentation.
38
(METLIFE LOGO)
- --------------------------------------------------------------------------------
AUTO & HOME OPERATIONS
WRITTEN PREMIUMS BY PRODUCT AND SELECTED FINANCIAL INFORMATION
AND SUPPLEMENTAL DATA
For the Three Months Ended
--------------------------------------------------------------------------------------------------
December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31,
Unaudited (Dollars in millions) 2004 2004 2004 2004 2003 2003 2003 2003
- ------------------------------------------------------------------------------------------------------------------------------------
WRITTEN PREMIUMS BY PRODUCT
Preferred/Standard Automobile $502 $534 $521 $517 $514 $538 $524 $505
Non-Standard Automobile 21 19 19 21 21 23 23 24
Homeowners 186 212 199 155 183 204 192 149
Other 9 11 9 20 9 11 12 20
--------------------------------------------------------------------------------------------------
Total $718 $776 $748 $713 $727 $776 $751 $698
==================================================================================================
SELECTED FINANCIAL INFORMATION
AND SUPPLEMENTAL DATA
TOTAL AUTO & HOME
Loss and loss adjustment expense
ratio 67.2% 74.6% 67.5% 72.7% 72.2% 73.8% 73.2% 75.0%
Other expense ratio 28.0% 25.5% 25.6% 26.1% 25.1% 25.5% 25.6% 28.0%
--------------------------------------------------------------------------------------------------
Total combined ratio (1) 95.2% 100.1% 93.1% 98.8% 97.3% 99.3% 98.8% 103.0%
Effect of catastrophe losses 3.0% 15.3% 5.0% 2.3% 1.9% 3.4% 3.2% 1.8%
--------------------------------------------------------------------------------------------------
Combined ratio excluding
catastrophes 92.2% 84.8% 88.1% 96.5% 95.4% 95.9% 95.6% 101.2%
==================================================================================================
AUTO
Loss and loss adjustment expense
ratio 73.7% 68.0% 66.9% 78.1% 79.3% 77.0% 77.5% 83.3%
Other expense ratio 26.9% 24.3% 24.3% 24.8% 23.5% 24.1% 24.2% 27.2%
--------------------------------------------------------------------------------------------------
Total combined ratio (1) 100.6% 92.3% 91.2% 102.9% 102.8% 101.1% 101.7% 110.5%
Effect of catastrophe losses 0.5% 1.7% 1.1% 0.1% 0.5% 0.2% 1.2% 0.2%
--------------------------------------------------------------------------------------------------
Combined ratio excluding
catastrophes 100.1% 90.6% 90.1% 102.8% 102.3% 100.9% 100.5% 110.3%
==================================================================================================
HOMEOWNERS
Loss and loss adjustment expense
ratio 50.8% 96.0% 67.3% 58.7% 51.4% 62.3% 63.4% 50.2%
Other expense ratio 30.1% 27.6% 28.8% 28.2% 28.7% 29.3% 29.2% 28.5%
--------------------------------------------------------------------------------------------------
Total combined ratio (1) 80.9% 123.6% 96.1% 86.9% 80.1% 91.6% 92.6% 78.7%
Effect of catastrophe losses 10.2% 55.4% 16.6% 9.0% 6.3% 13.4% 9.7% 6.9%
--------------------------------------------------------------------------------------------------
Combined ratio excluding
catastrophes 70.7% 68.2% 79.5% 77.9% 73.8% 78.2% 82.9% 71.8%
==================================================================================================
OTHER
Loss and loss adjustment expense
ratio 33.7% 40.3% 100.9% 44.6% 68.4% 99.5% 24.1% 57.7%
Other expense ratio 43.8% 39.9% 35.4% 50.7% 42.7% 34.2% 38.8% 52.0%
--------------------------------------------------------------------------------------------------
Total combined ratio (1) 77.5% 80.2% 136.3% 95.3% 111.1% 133.7% 62.9% 109.7%
Effect of catastrophe losses 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
--------------------------------------------------------------------------------------------------
Combined ratio excluding
catastrophes 77.5% 80.2% 136.3% 95.3% 111.1% 133.7% 62.9% 109.7%
==================================================================================================
PRE-TAX CATASTROPHE LOSSES
Auto $3 $9 $6 $0 $3 $1 $7 $1
Homeowners 20 104 31 16 12 24 17 12
Other 0 0 0 0 0 0 0 0
--------------------------------------------------------------------------------------------------
Total $23 $113 $37 $16 $15 $25 $24 $13
==================================================================================================
Catastrophe points on combined
ratios 3.0 15.3 5.0 2.3 1.9 3.4 3.2 1.8
--------------------------------------------------------------------------------------------------
(1) The combined ratio reflects payment fees as a credit to Other Expenses,
for the three months ended December 31, 2004, September 30, 2004, June 30,
2004 and March 31, 2004, which resulted in a 0.7, 0.7, 0.7 and 0.8 of a
percentage point decrease in the combined ratio for the periods ended,
respectively. The decreases for Auto, Homeowners & Other were, 0.8, 0.4,
0.7 of a percentage point, respectively, for December 31, 2004, 0.8, 0.4,
0.7, of a percentage point, respectively, for September 30, 2004, 0.8, 0.5
and 0.6 of a percentage point, respectively, for June 30, 2004 and 0.9,
0.5 and 0.4 of a percentage point, respectively, for March 31, 2004.
39
(METLIFE LOGO)
- --------------------------------------------------------------------------------
INTERNATIONAL OPERATIONS
STATEMENTS OF OPERATING EARNINGS
For the Three Months Ended
--------------------------------------------------------------------------------------------------
December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31,
Unaudited (Dollars in millions) 2004 2004 2004 2004 2003 2003 2003 2003
- ------------------------------------------------------------------------------------------------------------------------------------
REVENUES
Premiums $473 $445 $405 $412 $448 $445 $390 $395
Universal life and
investment-type
product policy fees 90 91 86 83 80 70 71 51
Investment income, net 174 151 137 123 129 119 131 123
Other revenues 9 2 8 4 26 20 26 8
--------------------------------------------------------------------------------------------------
746 689 636 622 683 654 618 577
--------------------------------------------------------------------------------------------------
EXPENSES
Policyholder benefits and
dividends 460 432 413 388 428 410 294 377
Interest credited to
policyholder
account balances 46 37 32 37 36 34 36 37
Capitalization of deferred
policy acquisition
costs (117) (103) (93) (71) (90) (72) (59) (66)
Amortization of deferred
policy acquisition
costs 38 32 36 31 73 41 77 34
Other expenses 283 222 194 172 204 187 177 153
--------------------------------------------------------------------------------------------------
710 620 582 557 651 600 525 535
--------------------------------------------------------------------------------------------------
Operating earnings before
provision (benefit)
for income taxes 36 69 54 65 32 54 93 42
Provision (benefit) for
income taxes 10 24 13 21 (2) 17 (9) 14
--------------------------------------------------------------------------------------------------
OPERATING EARNINGS $26 $45 $41 $44 $34 $37 $102 (3) $28
==================================================================================================
NET INCOME RECONCILIATION (1)
Operating earnings $26 $45 $41 $44 $34 $37 $102 $28
Net investment gains
(losses) (4) 3 (2) 26 0 8 (1) 0
Minority interest - net
investment gains
(losses) 0 0 0 0 0 0 0 0
Net investment gains
(losses) tax
benefit
(provision) 1 (1) (1) (6) (1) 6 (3) 0
--------------------------------------------------------------------------------------------------
Net investment gains (losses),
net of income taxes (3) 2 (3) 20 (1) 14 (4) 0
Adjustments related to
policyholder
benefits and
dividends (6) (14) 49 3 (3) 0 0 0
Adjustments related to
other expenses 0 0 0 0 0 0 0 0
Adjustments related to
tax benefit
(provision) 2 5 (17) (1) 1 0 0 0
--------------------------------------------------------------------------------------------------
Adjustments related to net
investment gains
(losses), net of
income taxes (4) (9) 32 2 (2) 0 0 0
Cumulative effect of a change
in accounting, net of
income taxes (2) 0 0 0 (30) 0 0 0 0
--------------------------------------------------------------------------------------------------
Net income $19 $38 $70 $36 $31 $51 $98 $28
==================================================================================================
For the Year-to-Date Period Ended
-----------------------------------------------------------------------------
December 31, September 30, June 30, December 31, September 30, June 30,
Unaudited (Dollars in millions) 2004 2004 2004 2003 2003 2003
- ---------------------------------------------------------------------------------------------------------------
REVENUES
Premiums $1,735 $1,262 $817 $1,678 $1,230 $785
Universal life and
investment-type
product policy fees 350 260 169 272 192 122
Investment income, net 585 411 260 502 373 254
Other revenues 23 14 12 80 54 34
-----------------------------------------------------------------------------
2,693 1,947 1,258 2,532 1,849 1,195
-----------------------------------------------------------------------------
EXPENSES
Policyholder benefits and
dividends 1,693 1,233 801 1,509 1,081 671
Interest credited to
policyholder
account balances 152 106 69 143 107 73
Capitalization of deferred
policy acquisition
costs (384) (267) (164) (287) (197) (125)
Amortization of deferred
policy acquisition
costs 137 99 67 225 152 111
Other expenses 871 588 366 721 517 330
-----------------------------------------------------------------------------
2,469 1,759 1,139 2,311 1,660 1,060
-----------------------------------------------------------------------------
Operating earnings before
provision (benefit)
for income taxes 224 188 119 221 189 135
Provision (benefit) for
income taxes 68 58 34 20 22 5
-----------------------------------------------------------------------------
OPERATING EARNINGS $156 $130 $85 $201 $167 $130 (3)
=============================================================================
NET INCOME RECONCILIATION (1)
Operating earnings $156 $130 $85 $201 $167 $130
Net investment gains
(losses) 23 27 24 7 7 (1)
Minority interest - net
investment gains
(losses) 0 0 0 0 0 0
Net investment gains
(losses) tax
benefit
(provision) (7) (8) (7) 2 3 (3)
-----------------------------------------------------------------------------
Net investment gains (losses),
net of income taxes 16 19 17 9 10 (4)
Adjustments related to
policyholder
benefits and
dividends 32 38 52 (3) 0 0
Adjustments related to
other expenses 0 0 0 0 0 0
Adjustments related to
tax benefit
(provision) (11) (13) (18) 1 0 0
-----------------------------------------------------------------------------
Adjustments related to net
investment gains
(losses), net of
income taxes 21 25 34 (2) 0 0
Cumulative effect of a change
in accounting, net of
income taxes (2) (30) (30) (30) 0 0 0
-----------------------------------------------------------------------------
Net income $163 $144 $106 $208 $177 $126
=============================================================================
(1) Adjustments related to net investment gains (losses), net of income taxes,
includes amortization of deferred policy acquisition costs and amounts
allocable to certain participating contracts.
(2) The cumulative effect of a change in accounting, net of income taxes, for
the period ended March 31, 2004, is in accordance with AICPA Statement of
Position 03-1, Accounting and Reporting by Insurance Enterprises for Certain
Nontraditional Long-Duration Contracts and for Separate Accounts. In
September 2004, an AICPA Technical Practice Aid ("SOP 03-1 Technical
Practice Aid") was issued which clarifies recognition of certain liabilities
to comply with SOP 03-1.
(3) Operating earnings for the period ended June 30, 2003 includes $62 million
earnings, net of income taxes, from the merger of the Company's Mexican
operations and a reduction in policyholder liabilities resulting from a
change in reserve methodology.
40
(METLIFE LOGO)
- --------------------------------------------------------------------------------
REINSURANCE OPERATIONS
STATEMENTS OF OPERATING EARNINGS
For the Three Months Ended
--------------------------------------------------------------------------------------------------
December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31,
Unaudited (Dollars in millions) 2004 2004 2004 2004 2003 2003 2003 2003
- ------------------------------------------------------------------------------------------------------------------------------------
REVENUES
Premiums, net $922 $822 $807 $816 $949 $579 $588 $552
Investment income, net 204 144 136 130 120 122 121 110
Other revenues 16 14 15 12 14 11 12 12
--------------------------------------------------------------------------------------------------
1,142 980 958 958 1,083 712 721 674
--------------------------------------------------------------------------------------------------
EXPENSES
Claims and other policy benefits 760 675 651 659 788 470 466 433
Interest credited to
policyholder account
balances 61 48 52 51 49 47 45 43
Policy acquisition costs and
other insurance expenses 192 156 133 139 130 112 116 108
Other expenses 44 47 46 45 54 33 38 36
--------------------------------------------------------------------------------------------------
1,057 926 882 894 1,021 662 665 620
--------------------------------------------------------------------------------------------------
Operating earnings before
provision for income
taxes and minority interest 85 54 76 64 62 50 56 54
Provision for income taxes 15 9 13 9 11 9 11 10
--------------------------------------------------------------------------------------------------
Operating earnings before
minority interest 70 45 63 55 51 41 45 44
Elimination of minority
interest, before tax 39 31 40 37 31 23 26 24
--------------------------------------------------------------------------------------------------
CONTRIBUTION TO METLIFE $31 $14 $23 $18 $20 $18 $19 $20
==================================================================================================
NET INCOME RECONCILIATION (1)
- -----------------------------
Operating earnings $31 $14 $23 $18 $20 $18 $19 $20
Net investment gains
(losses) (2) (17) 32 21 25 5 5 (4)
Minority interest - net
investment gains
(losses) 1 2 (8) (8) (9) (2) (2) 4
Net investment gains
(losses) tax benefit
(provision) 1 6 (9) (4) (5) (2) 0 0
------------------------------------------------------------------------------------------------
Net investment gains (losses),
net of income taxes 0 (9) 15 9 11 1 3 0
Adjustments related to
policyholder benefits
and dividends 0 0 0 0 0 0 0 0
Adjustments related to
other expenses 1 14 (13) (4) 0 0 0 0
Adjustments related to
tax benefit (provision) 0 (5) 5 1 0 0 0 0
--------------------------------------------------------------------------------------------------
Adjustments related to net
investment gains (losses),
net of income taxes 1 9 (8) (3) 0 0 0 0
Cumulative effect of a change
in accounting, net of
income taxes (2) 0 0 0 5 0 0 0 0
--------------------------------------------------------------------------------------------------
Net income $32 $14 $30 $29 $31 $19 $22 $20
==================================================================================================
For the Year-to-Date Period Ended
----------------------------------------------------------------------------
December 31, September 30, June 30, December 31, September 30, June 30,
Unaudited (Dollars in millions) 2004 2004 2004 2003 2003 2003
- --------------------------------------------------------------------------------------------------------------
REVENUES
Premiums, net $3,367 $2,445 $1,623 $2,668 $1,719 $1,140
Investment income, net 614 410 266 473 353 231
Other revenues 57 41 27 49 35 24
----------------------------------------------------------------------------
4,038 2,896 1,916 3,190 2,107 1,395
----------------------------------------------------------------------------
EXPENSES
Claims and other policy benefits 2,745 1,985 1,310 2,157 1,369 899
Interest credited to
policyholder account
balances 212 151 103 184 135 88
Policy acquisition costs and
other insurance expenses 620 428 272 466 336 224
Other expenses 182 138 91 161 107 74
----------------------------------------------------------------------------
3,759 2,702 1,776 2,968 1,947 1,285
----------------------------------------------------------------------------
Operating earnings before
provision for income
taxes and minority interest 279 194 140 222 160 110
Provision for income taxes 46 31 22 41 30 21
----------------------------------------------------------------------------
Operating earnings before
minority interest 233 163 118 181 130 89
Elimination of minority
interest, before tax 147 108 77 104 73 50
----------------------------------------------------------------------------
CONTRIBUTION TO METLIFE $86 $55 $41 $77 $57 $39
============================================================================
NET INCOME RECONCILIATION (1)
- -----------------------------
Operating earnings $86 $55 $41 $77 $57 $39
Net investment gains
(losses) 34 36 53 31 6 1
Minority interest - net
investment gains
(losses) (13) (14) (16) (9) 0 2
Net investment gains
(losses) tax benefit
(provision) (6) (7) (13) (7) (2) 0
----------------------------------------------------------------------------
Net investment gains (losses),
net of income taxes 15 15 24 15 4 3
Adjustments related to
policyholder benefits
and dividends 0 0 0 0 0 0
Adjustments related to
other expenses (2) (3) (17) 0 0 0
Adjustments related to
tax benefit (provision) 1 1 6 0 0 0
----------------------------------------------------------------------------
Adjustments related to net
investment gains (losses),
net of income taxes (1) (2) (11) 0 0 0
Cumulative effect of a change
in accounting, net of
income taxes (2) 5 5 5 0 0 0
----------------------------------------------------------------------------
Net income $105 $73 $59 $92 $61 $42
============================================================================
(1) Adjustments related to net investment gains (losses), net of income taxes,
includes amortization of deferred policy acquisition costs.
(2) The cumulative effect of a change in accounting, net of income taxes, for
the period ended March 31, 2004, is in accordance with AICPA Statement of
Position 03-1, Accounting and Reporting by Insurance Enterprises for Certain
Nontraditional Long-Duration Contracts and for Separate Accounts. In
September 2004, an AICPA Technical Practice Aid ("SOP 03-1 Technical
Practice Aid") was issued which clarifies recognition of certain liabilities
to comply with SOP 03-1.
41
(METLIFE LOGO)
- --------------------------------------------------------------------------------
REINSURANCE OPERATIONS
PRE-TAX AND PRE-MINORITY INTEREST OPERATING
EARNINGS BY REGION AND RESERVES BY REGION
For the Three Months Ended
--------------------------------------------------------------
December 31, September 30, June 30, March 31, December 31,
Unaudited (Dollars in millions) 2004 2004 2004 2004 2003
- --------------------------------------------------------------------------------------------------------------
PRE-TAX AND PRE-MINORITY INTEREST
OPERATING EARNINGS BY REGION
United States $82 $69 $60 $52 $52
Canada 17 16 15 16 14
Latin America 0 0 0 0 0
Asia-Pacific 2 (2) 5 6 7
Other international markets 4 9 11 3 8
Corporate (20) (38) (15) (13) (19)
--------------------------------------------------------------
Total pre-tax and pre-minority interest
operating earnings $85 $54 $76 $64 $62
==============================================================
POLICY BENEFITS AND INTEREST
SENSITIVE CONTRACT LIABILITIES BY REGION
Traditional U.S. $4,253 $4,458 $4,385 $4,636 $4,386
Asset intensive 4,085 3,893 3,645 3,343 3,201
Other 124 58 125 120 112
--------------------------------------------------------------
Total U.S. 8,462 8,409 8,155 8,099 7,699
--------------------------------------------------------------
Canada 1,375 1,243 1,167 1,151 1,270
Latin America 0 0 0 0 0
Asia-Pacific 517 456 357 420 409
Other international markets 610 549 497 499 405
--------------------------------------------------------------
Total International 2,502 2,248 2,021 2,070 2,084
--------------------------------------------------------------
Total policy benefits and interest sensitive
contract liabilities $10,964 $10,657 $10,176 $10,169 $9,783
==============================================================
For the Three Months Ended
----------------------------------
September 30, June 30, March 31,
Unaudited (Dollars in millions) 2003 2003 2003
- ----------------------------------------------------------------------------------
PRE-TAX AND PRE-MINORITY INTEREST
OPERATING EARNINGS BY REGION
United States $38 $49 $45
Canada 13 12 11
Latin America 0 0 0
Asia-Pacific 7 4 2
Other international markets 3 3 2
Corporate (11) (12) (6)
----------------------------------
Total pre-tax and pre-minority interest
operating earnings $50 $56 $54
==================================
POLICY BENEFITS AND INTEREST
SENSITIVE CONTRACT LIABILITIES BY REGION
Traditional U.S. $3,743 $3,721 $3,653
Asset intensive 3,029 2,918 2,718
Other 113 110 112
----------------------------------
Total U.S. 6,885 6,749 6,483
----------------------------------
Canada 1,049 1,049 972
Latin America 0 0 0
Asia-Pacific 376 344 302
Other international markets 368 316 271
----------------------------------
Total International 1,793 1,709 1,545
----------------------------------
Total policy benefits and interest sensitive
contract liabilities $8,678 $8,458 $8,028
==================================
42
(METLIFE LOGO)
- --------------------------------------------------------------------------------
ASSET MANAGEMENT OPERATIONS (1)
STATEMENTS OF OPERATING EARNINGS
UNAUDITED (DOLLARS IN MILLIONS)
For the Three Months Ended
--------------------------------------------------------------------------------------------------
December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31,
Asset Management Operations 2004 2004 2004 2004 2003 2003 2003 2003
- ------------------------------------------------------------------------------------------------------------------------------------
REVENUES (2)
Investment and advisory service
fees
Mutual funds $24 $23 $23 $22 $20 $20 $17 $16
MetLife and affiliates
separately managed
accounts 9 9 9 9 9 9 9 9
Third party client separate
accounts 36 22 44 13 16 13 16 10
Other revenues 36 19 20 20 19 16 17 15
--------------------------------------------------------------------------------------------------
105 73 96 64 64 58 59 50
--------------------------------------------------------------------------------------------------
EXPENSES (2)
Employee compensation and
benefits 80 36 41 27 28 26 26 27
Promoting and servicing 9 10 12 8 11 6 7 7
General and administrative 21 15 17 20 15 20 17 14
--------------------------------------------------------------------------------------------------
110 61 70 55 54 52 50 48
--------------------------------------------------------------------------------------------------
Operating earnings before
provision for income taxes (5) 12 26 9 10 6 9 2
Provision for income taxes (2) 5 10 4 4 2 4 1
--------------------------------------------------------------------------------------------------
OPERATING EARNINGS ($3) $7 $16 $5 $6 $4 $5 $1
==================================================================================================
NET INCOME RECONCILIATION
- -------------------------
Operating earnings ($3) $7 $16 $5 $6 $4 $5 $1
Net investment gains
(losses) 0 0 0 0 (1) 2 0 8
Minority interest - net
investment gains
(losses) 0 0 0 0 0 0 0 0
Net investment gains
(losses) tax benefit
(provision) 0 0 0 0 0 0 0 (3)
--------------------------------------------------------------------------------------------------
Net investment gains (losses),
net of income taxes 0 0 0 0 (1) 2 0 5
Adjustments related to
policyholder benefits
and dividends 0 0 0 0 0 0 0 0
Adjustments related to
other expenses 0 0 0 0 0 0 0 0
Adjustments related to tax
benefit (provision) 0 0 0 0 0 0 0 0
--------------------------------------------------------------------------------------------------
Adjustments related to net
investment gains (losses),
net of income taxes 0 0 0 0 0 0 0 0
Cumulative effect of a change in
accounting, net of income
taxes 0 0 0 0 0 0 0 0
--------------------------------------------------------------------------------------------------
Net income ($3) $7 $16 $5 $5 $6 $5 $6
==================================================================================================
For the Year-to-Date Period Ended
----------------------------------------------------------------------------
December 31, September 30, June 30, December 31, September 30, June 30,
Asset Management Operations 2004 2004 2004 2003 2003 2003
- --------------------------------------------------------------------------------------------------------------
REVENUES (2)
Investment and advisory service
fees
Mutual funds $92 $68 $45 $73 $53 $33
MetLife and affiliates
separately managed
accounts 36 27 18 36 27 18
Third party client separate
accounts 115 79 57 55 39 26
Other revenues 95 59 40 67 48 32
----------------------------------------------------------------------------
338 233 160 231 167 109
----------------------------------------------------------------------------
EXPENSES (2)
Employee compensation and
benefits 184 104 68 107 79 53
Promoting and servicing 39 30 20 31 20 14
General and administrative 73 52 37 66 51 31
----------------------------------------------------------------------------
296 186 125 204 150 98
----------------------------------------------------------------------------
Operating earnings before
provision for income taxes 42 47 35 27 17 11
Provision for income taxes 17 19 14 11 7 5
----------------------------------------------------------------------------
OPERATING EARNINGS $25 $28 $21 $16 $10 $6
============================================================================
NET INCOME RECONCILIATION
- -------------------------
Operating earnings $25 $28 $21 $16 $10 $6
Net investment gains
(losses) 0 0 0 9 10 8
Minority interest - net
investment gains
(losses) 0 0 0 0 0 0
Net investment gains
(losses) tax benefit
(provision) 0 0 0 (3) (3) (3)
----------------------------------------------------------------------------
Net investment gains (losses),
net of income taxes 0 0 0 6 7 5
Adjustments related to
policyholder benefits
and dividends 0 0 0 0 0 0
Adjustments related to
other expenses 0 0 0 0 0 0
Adjustments related to tax
benefit (provision) 0 0 0 0 0 0
----------------------------------------------------------------------------
Adjustments related to net
investment gains (losses),
net of income taxes 0 0 0 0 0 0
Cumulative effect of a change in
accounting, net of income
taxes 0 0 0 0 0 0
----------------------------------------------------------------------------
Net income $25 $28 $21 $22 $17 $11
============================================================================
(1) As previously reported, on January 31, 2005, the Company sold its
wholly-owned subsidiary, SSRM Holdings, Inc., representing substantially
all of the Company's Asset Management operations, to a third party.
(2) Certain amounts in prior periods presented have been reclassified/restated
to conform with current period presentation.
43
(METLIFE LOGO)
- --------------------------------------------------------------------------------
ASSET MANAGEMENT OPERATIONS
CHANGE IN ASSETS UNDER MANAGEMENT AND
COMPOSITION OF ASSETS UNDER MANAGEMENT
At or for the Three Months Ended
--------------------------------------------------------------------------------------------------
December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31,
Unaudited (Dollars in millions) 2004 2004 2004 2004 2003 2003 2003 2003
- ------------------------------------------------------------------------------------------------------------------------------------
CHANGE IN ASSETS
Beginning assets $52,140 $51,727 $50,443 $47,518 $45,711 $46,130 $43,552 $44,577
Contributions 3,338 1,675 3,266 3,183 1,983 1,190 1,564 1,004
Redemptions (3,511) (1,930) (1,713) (1,798) (2,215) (2,039) (2,040) (2,063)
Market appreciation 2,592 668 (269) 1,540 2,039 430 3,054 34
--------------------------------------------------------------------------------------------------
Ending Carrying Value $54,559 $52,140 $51,727 $50,443 $47,518 $45,711 $46,130 $43,552
==================================================================================================
ASSETS UNDER MANAGEMENT
STATE STREET RESEARCH
MetLife Separate Account $16,213 $17,109 $16,695 $17,307 $16,762 $17,244 $17,499 $17,160
MetLife Retail Funds 8,203 7,744 7,958 7,394 7,362 6,894 6,759 5,618
Third Party Individual and
Retail Funds 10,316 9,787 10,112 9,819 9,255 8,140 7,854 6,966
Third Party Institutional 19,827 17,500 16,962 15,923 14,139 13,433 14,018 13,808
--------------------------------------------------------------------------------------------------
Total State Street Research $54,559 $52,140 $51,727 $50,443 $47,518 $45,711 $46,130 $43,552
==================================================================================================
44
(METLIFE LOGO)
- --------------------------------------------------------------------------------
CORPORATE, OTHER & ELIMINATIONS
STATEMENTS OF OPERATING EARNINGS
For the Three Months Ended
--------------------------------------------------------------------------------------------------
December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31,
Unaudited (Dollars in millions) 2004 2004 2004 2004 2003 2003 2003 2003
- ------------------------------------------------------------------------------------------------------------------------------------
REVENUES
Premiums $1 ($5) ($4) ($1) ($5) ($4) ($5) ($4)
Universal life and
investment-type product
policy fees 0 2 0 0 0 0 0 0
Investment income, net 178 112 145 67 77 64 42 69
Other revenues 0 7 (7) 7 (6) 18 15 12
--------------------------------------------------------------------------------------------------
179 116 134 73 66 78 52 77
--------------------------------------------------------------------------------------------------
EXPENSES
Policyholder benefits and
dividends 3 1 2 2 0 2 0 2
Interest credited to
policyholder account balances 0 0 0 0 0 0 0 0
Interest expense 97 94 88 78 91 77 88 94
Other expenses 60 29 60 39 21 (30) (65) 24
--------------------------------------------------------------------------------------------------
160 124 150 119 112 49 23 120
--------------------------------------------------------------------------------------------------
Operating earnings before
(benefit) provision for
income taxes 19 (8) (16) (46) (46) 29 29 (43)
Benefit for income taxes (8) (34) (111) (28) (48) (51) (12) (31)
--------------------------------------------------------------------------------------------------
OPERATING EARNINGS (LOSS) $27 $26 (2) $95 (3) ($18) $2 $80 (4) $41 (5) ($12)
==================================================================================================
NET INCOME RECONCILIATION (1)
- -----------------------------
Operating earnings (loss) $27 $26 $95 ($18) $2 $80 $41 ($12)
Net investment gains
(losses) (86) (17) 83 4 420 (32) (36) (33)
Minority interest - net
investment gains
(losses) 0 0 0 0 0 0 0 0
Net investment gains
(losses) tax benefit
(provision) 33 3 (31) (2) (157) 24 10 11
--------------------------------------------------------------------------------------------------
Net investment gains (losses),
net of income taxes (53) (14) 52 2 263 (8) (26) (22)
Adjustments related to
policyholder benefits
and dividends 0 0 0 0 (46) 0 0 0
Adjustments related to
other expenses 0 0 0 0 (2) 0 0 0
Adjustments related to tax
benefit (provision) (1) 1 0 0 17 1 1 (1)
--------------------------------------------------------------------------------------------------
Adjustments related to net
investment gains (losses),
net of income taxes (1) 1 0 0 (31) 1 1 (1)
Cumulative effect of a change in
accounting, net of income
taxes 0 0 0 (1) 0 0 0 0
--------------------------------------------------------------------------------------------------
Net income ($27) $13 $147 ($17) $234 $73 $16 ($35)
==================================================================================================
For the Year-to-Date Period Ended
----------------------------------------------------------------------------
December 31, September 30, June 30, December 31, September 30, June 30,
Unaudited (Dollars in millions) 2004 2004 2004 2003 2003 2003
- --------------------------------------------------------------------------------------------------------------
REVENUES
Premiums ($9) ($10) ($5) ($18) ($13) ($9)
Universal life and
investment-type product
policy fees 2 2 0 0 0 0
Investment income, net 502 324 212 252 175 111
Other revenues 7 7 0 39 45 27
----------------------------------------------------------------------------
502 323 207 273 207 129
----------------------------------------------------------------------------
EXPENSES
Policyholder benefits and
dividends 8 5 4 4 4 2
Interest credited to
policyholder account balances 0 0 0 0 0 0
Interest expense 357 260 166 350 259 182
Other expenses 188 128 99 (50) (71) (41)
----------------------------------------------------------------------------
553 393 269 304 192 143
----------------------------------------------------------------------------
Operating earnings before
(benefit) provision for
income taxes (51) (70) (62) (31) 15 (14)
Benefit for income taxes (181) (173) (139) (142) (94) (43)
----------------------------------------------------------------------------
OPERATING EARNINGS (LOSS) $130 $103 (2) $77 (3) $111 $109 (4) $29 (5)
============================================================================
NET INCOME RECONCILIATION (1)
- -----------------------------
Operating earnings (loss) $130 $103 $77 $111 $109 $29
Net investment gains
(losses) (16) 70 87 319 (101) (69)
Minority interest - net
investment gains
(losses) 0 0 0 0 0 0
Net investment gains
(losses) tax benefit
(provision) 3 (30) (33) (112) 45 21
----------------------------------------------------------------------------
Net investment gains (losses),
net of income taxes (13) 40 54 207 (56) (48)
Adjustments related to
policyholder benefits
and dividends 0 0 0 (46) 0 0
Adjustments related to
other expenses 0 0 0 (2) 0 0
Adjustments related to tax
benefit (provision) 0 1 0 18 1 0
----------------------------------------------------------------------------
Adjustments related to net
investment gains (losses),
net of income taxes 0 1 0 (30) 1 0
Cumulative effect of a change in
accounting, net of income
taxes (1) (1) (1) 0 0 0
----------------------------------------------------------------------------
Net income $116 $143 $130 $288 $54 ($19)
============================================================================
(1) Adjustments related to net investment gains (losses), net of income taxes,
includes amounts allocable to certain participating contracts.
(2) Operating earnings for the three months ended September 30, 2004 includes
a $9 million benefit from a revision of the estimate of income taxes for
2003.
(3) Operating earnings for the period ended June 30, 2004 includes a $32
million charge, net of income taxes, from a contribution to the MetLife
Foundation made by Metropolitan Life Insurance Company and a $105 million
benefit related to a previously disclosed resolution of an IRS audit.
(4) Operating earnings for the period ended September 30, 2003 includes a $28
million benefit, net of income taxes, from a reduction of a previously
established liability related to the Company's race-conscious underwriting
settlement and a $36 million benefit from a revision of the estimate of
income taxes for 2002.
(5) Operating earnings for the period ended June 30, 2003 includes a $64
million benefit, net of income taxes, from a reduction of a previously
established liability related to the Company's race-conscious underwriting
settlement.
45
(METLIFE LOGO)
- --------------------------------------------------------------------------------
METLIFE, INC.
INVESTMENT RESULTS
BY ASSET CATEGORY AND
ANNUALIZED YIELDS
At or for the Three Months Ended
--------------------------------------------------------------------------------------------------------
Unaudited December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31,
(Dollars in millions) 2004 2004 2004 2004 2003 2003 2003 2003
- -----------------------------------------------------------------------------------------------------------------------------------
FIXED MATURITIES (1)
Yield (2) 6.46% 6.44% 6.64% 6.62% 6.92% 6.83% 6.87% 7.01%
Income $2,273 $2,246 $2,291 $2,232 $2,245 $2,140 $2,073 $2,044
Investment gains (losses) ($21) $61 ($3) $34 ($183) ($23) ($43) ($149)
Ending Carrying Value $176,763 $176,091 $170,192 $174,100 $167,752 $159,940 $158,822 $144,341
MORTGAGE AND OTHER LOANS
Yield (3) 6.93% 7.02% 6.83% 6.81% 7.61% 7.37% 7.50% 7.51%
Income $537 $507 $468 $449 $493 $468 $472 $470
Investment gains (losses) ($39) ($8) $0 $0 $2 ($36) ($8) ($14)
Ending Carrying Value $32,406 $29,620 $28,118 $26,562 $26,249 $25,535 $25,289 $25,046
REAL ESTATE AND REAL
ESTATE JOINT VENTURES
Yield (3) 10.94% 10.53% 13.36% 11.85% 11.06% 10.14% 11.20% 11.16%
Income (4) (7) $118 $111 $148 $139 $137 $124 $125 $127
Investment gains
(losses) (5) $13 ($5) $133 $21 $344 $10 ($6) $92
Ending Carrying Value $4,329 $4,281 $4,154 $4,699 $4,680 $5,255 $4,491 $4,475
POLICY LOANS
Yield (3) 6.23% 6.14% 6.13% 6.12% 6.15% 6.54% 6.46% 6.47%
Income $138 $135 $134 $134 $135 $141 $139 $139
Ending Carrying Value $8,899 $8,801 $8,766 $8,758 $8,749 $8,668 $8,627 $8,615
EQUITY SECURITIES AND
OTHER LIMITED
PARTNERSHIP
INTERESTS (1)
Yield (3) 18.10% 7.37% 10.27% 3.03% 3.80% (1.26%) 3.62% 6.11%
Income (7) $199 $76 $100 $29 $36 ($11) $32 $54
Investment gains (losses) $25 $96 $87 $0 $33 ($6) $1 ($71)
Ending Carrying Value $5,144 $4,743 $4,549 $4,305 $4,198 $4,218 $4,117 $3,867
CASH AND SHORT-TERM
INVESTMENTS (1)
Yield (3) 3.64% 3.14% 2.37% 2.67% 1.67% 1.95% 2.23% 4.57%
Income (7) $50 $43 $30 $30 $24 $35 $42 $64
Investment gains (losses) ($1) $0 $0 $0 $5 $0 $0 ($4)
Ending Carrying Value $6,802 $6,095 $6,548 $5,144 $5,559 $8,090 $8,354 $8,126
OTHER INVESTED ASSETS
Yield (3) 10.62% 5.57% 4.35% 5.11% 7.78% 9.32% 8.47% 8.45%
Income (6) $105 $55 $47 $52 $74 $84 $69 $63
Investment gains
(losses) (7) (8) (9) ($191) $34 ($60) $68 ($62) ($96) $2 ($24)
Ending Carrying Value $4,946 $4,406 $5,119 $5,094 $4,645 $4,617 $4,261 $3,948
TOTAL INVESTMENTS
Gross investment income
yield 6.88% 6.51% 6.72% 6.56% 6.88% 6.66% 6.82% 7.10%
Investment fees and
expenses yield (0.14%) (0.13%) (0.13%) (0.14%) (0.16%) (0.15%) (0.14%) (0.15%)
--------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME
YIELD 6.74% 6.38% 6.59% 6.42% 6.72% 6.51% 6.68% 6.95%
========================================================================================================
Gross investment income $3,420 $3,173 $3,218 $3,065 $3,144 $2,981 $2,952 $2,961
Investment fees and
expenses (72) (65) (61) (64) (74) (67) (63) (62)
--------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $3,348 $3,108 $3,157 $3,001 $3,070 $2,914 $2,889 $2,899
========================================================================================================
Ending Carrying Value $239,289 $234,037 $227,446 $228,662 $221,832 $216,323 $213,961 $198,418
========================================================================================================
Gross investment gains $309 $351 $411 $243 $564 $153 $137 $221
Gross investment losses (175) (201) (126) (85) (280) (106) (85) (89)
Writedowns (79) (44) (77) (12) (73) (89) (103) (268)
--------------------------------------------------------------------------------------------------------
Subtotal 55 106 208 146 211 (42) (51) (136)
Derivative & other
instruments not
qualifying for hedge
accounting (269) 72 (51) (23) (72) (109) (3) (34)
--------------------------------------------------------------------------------------------------------
NET INVESTMENT GAINS
(LOSSES) (214) 178 157 123 139 (151) (54) (170)
Minority interest - net
investment gains
(losses) 5 2 (8) (8) (9) (2) (2) 4
Net investment gains
(losses) tax benefit
(provision) 71 (62) (47) (39) (58) 85 16 58
--------------------------------------------------------------------------------------------------------
NET INVESTMENT GAINS
(LOSSES), NET OF INCOME
TAXES ($138) $118 $102 $76 $72 ($68) ($40) ($108)
========================================================================================================
(1) Included in ending assets, investment income and investment gains (losses)
is $2,139 million, $22 million, and $3 million, respectively, related to
the consolidation of separate accounts under SOP 03-1 for the three months
ended December 31, 2004.
(2) The fixed maturity yield is annualized and is based on quarterly average
amortized cost.
(3) Yields are annualized and based on quarterly average carrying values.
(4) Included in income from real estate and real estate joint ventures is $1
million, $4 million, $28 million, $21 million, $32 million, $26 million,
$13 million, and $22 million related to discontinued operations for the
three months ended December 31, 2004, September 30, 2004, June 30, 2004,
March 31, 2004, December 31, 2003, September 30, 2003, June 30, 2003, and
March 31, 2003, respectively.
(5) Included in investment gains (losses) from real estate and real estate
joint ventures is $3 million, ($16) million, $132 million, $20 million,
$322 million, $8 million, $0 million, and $90 million related to
discontinued operations for the three months ended December 31, 2004,
September 30, 2004, June 30, 2004, March 31, 2004, December 31, 2003,
September 30, 2003, June 30, 2003, and March 31, 2003, respectively.
(6) Included in investment income from other invested assets are scheduled
settlement payments on derivative instruments that do not qualify for
hedge accounting under SFAS 133 of $3 million, $12 million, $22 million,
$14 million, $29 million, $35 million, $12 million, and $8 million for the
three months ended December 31, 2004, September 30, 2004, June 30, 2004,
March 31, 2004, December 31, 2003, September 30, 2003, June 30, 2003, and
March 31, 2003, respectively. These amounts are excluded from net
investment gains (losses) in other invested assets.
(7) Included in investment income from real estate, equity securities, cash
and short-term investments, other invested assets, and investment fees &
expenses is a total of $18 million, $16 million, $15 million, $16
million, $15 million, $14 million, $14 million, and $13 million related
to discontinued operations pertaining to the sale of State Street
Research Management for the three months ended December 31, 2004,
September 30, 2004, June 30, 2004, March 31, 2004, December 31, 2003,
September 30, 2003, June 30, 2003, and March 31, 2003, respectively.
(8) Included in investment gains (losses) from other invested assets is $0
million, $0 million, $0 million, $0 million, $0 million, $2 million, $0
million, and $8 million related to discontinued operations pertaining to
the sale of State Street Research Management for the three months ended
December 31, 2004, September 30, 2004, June 30, 2004, March 31, 2004,
December 31, 2003, September 30, 2003, June 30, 2003, and March 31, 2003,
respectively.
(9) Included in investment gains (losses) from other invested assets for the
three months ended December 31, 2004, is a loss of $26 million related
to the value of an embedded derivative associated with a funds withheld
reinsurance treaty that was converted to a coinsurance agreement.
46
(METLIFE LOGO)
- --------------------------------------------------------------------------------
METLIFE, INC.
INVESTMENT RESULTS
BY ASSET CATEGORY AND
ANNUALIZED YIELDS
At or for the Year-to-date
-------------------------------------------------------------------------------------------------
December 31, September 30, June 30, March 31, December 31, September 30, June 30, March 31,
Unaudited (Dollars in millions) 2004 2004 2004 2004 2003 2003 2003 2003
- ------------------------------------------------------------------------------------------------------------------------------------
FIXED MATURITIES (1)
Yield (2) 6.55% 6.58% 6.64% 6.62% 6.89% 6.89% 6.91% 7.01%
Income $9,042 $6,769 $4,523 $2,232 $8,502 $6,257 $4,117 $2,044
Investment gains (losses) $71 $92 $31 $34 ($398) ($215) ($192) ($149)
Ending Carrying Value $176,763 $176,091 $170,192 $174,100 $167,752 $159,940 $158,822 $144,341
MORTGAGE AND OTHER LOANS
Yield (3) 6.86% 6.87% 6.80% 6.81% 7.48% 7.45% 7.50% 7.51%
Income $1,961 $1,424 $917 $449 $1,903 $1,410 $942 $470
Investment gains (losses) ($47) ($8) $0 $0 ($56) ($58) ($22) ($14)
Ending Carrying Value $32,406 $29,620 $28,118 $26,562 $26,249 $25,535 $25,289 $25,046
REAL ESTATE AND REAL ESTATE
JOINT VENTURES
Yield (3) 11.64% 11.91% 12.71% 11.85% 10.90% 10.63% 11.14% 11.16%
Income (4) (7) $516 $398 $287 $139 $513 $376 $252 $127
Investment gains (losses) (5) $162 $149 $154 $21 $440 $96 $86 $92
Ending Carrying Value $4,329 $4,281 $4,154 $4,699 $4,680 $5,255 $4,491 $4,475
POLICY LOANS
Yield (3) 6.15% 6.13% 6.12% 6.12% 6.40% 6.49% 6.47% 6.47%
Income $541 $403 $268 $134 $554 $419 $278 $139
Ending Carrying Value $8,899 $8,801 $8,766 $8,758 $8,749 $8,668 $8,627 $8,615
EQUITY SECURITIES AND OTHER
LIMITED PARTNERSHIP
INTERESTS (1)
Yield (3) 9.90% 6.92% 6.70% 3.03% 3.02% 2.73% 4.80% 6.11%
Income (7) $404 $205 $129 $29 $111 $75 $86 $54
Investment gains (losses) $208 $183 $87 $0 ($43) ($76) ($70) ($71)
Ending Carrying Value $5,144 $4,743 $4,549 $4,305 $4,198 $4,218 $4,117 $3,867
CASH AND SHORT-TERM
INVESTMENTS (1)
Yield (3) 2.99% 2.75% 2.45% 2.67% 2.73% 2.93% 3.40% 4.57%
Income (7) $153 $103 $60 $30 $165 $141 $106 $64
Investment gains (losses) ($1) $0 $0 $0 $1 ($4) ($4) ($4)
Ending Carrying Value $6,802 $6,095 $6,548 $5,144 $5,559 $8,090 $8,354 $8,126
OTHER INVESTED ASSETS
Yield (3) 6.38% 5.10% 4.76% 5.11% 8.53% 8.75% 8.43% 8.45%
Income (6) $259 $154 $99 $52 $290 $216 $132 $63
Investment gains
(losses) (7) (8) (9) ($149) $42 $8 $68 ($180) ($118) ($22) ($24)
Ending Carrying Value $4,946 $4,406 $5,119 $5,094 $4,645 $4,617 $4,261 $3,948
TOTAL INVESTMENTS
Gross investment income yield 6.67% 6.60% 6.64% 6.56% 6.86% 6.85% 6.94% 7.10%
Investment fees and expenses
yield (0.14%) (0.13%) (0.13%) (0.14%) (0.15%) (0.15%) (0.15%) (0.15%)
-------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME YIELD 6.53% 6.47% 6.51% 6.42% 6.71% 6.70% 6.79% 6.95%
=================================================================================================
Gross investment income $12,876 $9,456 $6,283 $3,065 $12,038 $8,894 $5,913 $2,961
Investment fees and expenses (262) (190) (125) (64) (266) (192) (125) (62)
-------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $12,614 $9,266 $6,158 $3,001 $11,772 $8,702 $5,788 $2,899
=================================================================================================
Ending Carrying Value $239,289 $234,037 $227,446 $228,662 $221,832 $216,323 $213,961 $198,418
=================================================================================================
Gross investment gains $1,314 $1,005 $654 $243 $1,075 $511 $358 $221
Gross investment losses (587) (412) (211) (85) (560) (280) (174) (89)
Writedowns (212) (133) (89) (12) (533) (460) (371) (268)
-------------------------------------------------------------------------------------------------
Subtotal 515 460 354 146 (18) (229) (187) (136)
Derivative & other instruments not
qualifying for hedge accounting (271) (2) (74) (23) (218) (146) (37) (34)
-------------------------------------------------------------------------------------------------
NET INVESTMENT GAINS (LOSSES) 244 458 280 123 (236) (375) (224) (170)
Minority interest - net investment
gains (losses) (9) (14) (16) (8) (9) 0 2 4
Net investment gains (losses) tax
benefit (provision) (77) (148) (86) (39) 101 159 74 58
-------------------------------------------------------------------------------------------------
NET INVESTMENT GAINS (LOSSES),
NET OF INCOME TAXES $158 $296 $178 $76 ($144) ($216) ($148) ($108)
=================================================================================================
(1) Included in ending assets, investment income and investment gains (losses)
is $2,139 million, $86 million, and $25 million, respectively, related to
the consolidation of separate accounts under SOP 03-1 for the year-to-date
periods ended December 31, 2004.
(2) The fixed maturity yield is annualized and is based on quarterly average
amortized cost.
(3) Yields are annualized and based on year-to-date average carrying values.
(4) Included in income from real estate and real estate joint ventures is $54
million, $53 million, $49 million, $21 million, $93 million, $61 million,
$35 million, and $22 million related to discontinued operations for the
year-to-date periods ended December 31, 2004, September 30, 2004, June 30,
2004, March 31, 2004, December 31, 2003, September 30, 2003, June 30,
2003, and March 31, 2003, respectively.
(5) Included in investment gains (losses) from real estate and real estate
joint ventures is $139 million, $136 million, $152 million, $20 million,
$420 million, $98 million, $90 million, and $90 million related to
discontinued operations for the year-to-date periods ended December 31,
2004, September 30, 2004, June 30, 2004, March 31, 2004, December 31,
2003, September 30, 2003, June 30, 2003, and March 31, 2003, respectively.
(6) Included in investment income from other invested assets are scheduled
settlement payments on derivative instruments that do not qualify for
hedge accounting under SFAS 133 of $51 million, $48 million, $36 million,
$14 million, $84 million, $55 million, $20 million, and $8 million for the
year-to-date periods ended December 31, 2004, September 30, 2004, June 30,
2004, March 31, 2004, December 31, 2003, September 30, 2003, June 30,
2003, and March 31, 2003, respectively. These amounts are excluded from
net investment gains (losses) in other invested assets.
(7) Included in investment income from real estate, equity securities, cash
and short-term investments, other invested assets, and investment fees &
expenses is a total of $65 million, $47 million, $31 million, $16
million, $56 million, $41 million, $27 million, and $13 million related
to discontinued operations pertaining to the sale of State Street
Research Management for the year-to-date periods ended December 31,
2004, September 30, 2004, June 30, 2004, March 31, 2004, December 31,
2003, September 30, 2003, June 30, 2003, and March 31, 2003, respectively.
(8) Included in investment gains (losses) from other invested assets is $0
million, $0 million, $0 million, $0 million, $10 million, $10 million, $8
million, and $8 million related to discontinued operations pertaining to
the sale of State Street Research Management for the year-to-date periods
ended December 31, 2004, September 30, 2004, June 30, 2004, March 31,
2004, December 31, 2003, September 30, 2003, June 30, 2003, and March 31,
2003, respectively.
(9) Included in investment gains (losses) from other invested assets, for the
year-to-date periods ended December 31, 2004, is a loss of $26 million
related to the value of an embedded derivative associated with a funds
withheld reinsurance treaty that was converted to a coinsurance agreement.
47
(METLIFE LOGO)
- --------------------------------------------------------------------------------
METLIFE, INC.
GROSS UNREALIZED GAINS AND LOSSES AGING SCHEDULE
FIXED MATURITIES (1) (2)
At December 31, 2004 At September 30, 2004 At June 30, 2004 At March 31, 2004
-----------------------------------------------------------------------------------
Unaudited (Dollars in millions) Amount % of Total Amount % of Total Amount % of Total Amount % of Total
- ------------------------------------------------------------------------------------------------------------------------------------
Less than 20% $463 92.4% $530 90.8% $1,735 96.6% $364 86.3%
20% or more for less than six months 17 3.4% 44 7.5% 47 2.6% 52 12.3%
20% or more for six months or greater 21 4.2% 10 1.7% 15 0.8% 6 1.4%
-----------------------------------------------------------------------------------
Total Gross Unrealized Losses $501 100.0% $584 100.0% $1,797 100.0% $422 100.0%
===================================================================================
Total Gross Unrealized Gains $10,268 $9,703 $7,087 $12,137
======= ======= ======= =======
At December 31, 2003 At September 30, 2003 At June 30, 2003 At March 31, 2003
-----------------------------------------------------------------------------------
Unaudited (Dollars in millions) Amount % of Total Amount % of Total Amount % of Total Amount % of Total
- ------------------------------------------------------------------------------------------------------------------------------------
Less than 20% $677 91.1% $826 83.4% $612 76.8% $773 61.0%
20% or more for less than six months 22 3.0% 82 8.3% 74 9.3% 216 17.0%
20% or more for six months or greater 44 5.9% 82 8.3% 111 13.9% 279 22.0%
-----------------------------------------------------------------------------------
Total Gross Unrealized Losses $743 100.0% $990 100.0% $797 100.0% $1,268 100.0%
===================================================================================
Total Gross Unrealized Gains $10,162 $10,945 $12,563 $9,643
======= ======= ======= =======
GROSS UNREALIZED GAINS AND LOSSES AGING SCHEDULE
EQUITY SECURITIES (1) (2)
At December 31, 2004 At September 30, 2004 At June 30, 2004 At March 31, 2004
-----------------------------------------------------------------------------------
Unaudited (Dollars in millions) Amount % of Total Amount % of Total Amount % of Total Amount % of Total
- ------------------------------------------------------------------------------------------------------------------------------------
Less than 20% $7 87.5% $10 40.0% $13 44.8% $5 45.5%
20% or more for less than six months 1 12.5% 15 60.0% 16 55.2% 6 54.5%
20% or more for six months or greater 0 0.0% 0 0.0% 0 0.0% 0 0.0%
-----------------------------------------------------------------------------------
Total Gross Unrealized Losses $8 100.0% $25 100.0% $29 100.0% $11 100.0%
===================================================================================
Total Gross Unrealized Gains $283 $305 $336 $383
======= ======= ======= =======
At December 31, 2003 At September 30, 2003 At June 30, 2003 At March 31, 2003
----------------------------------------------------------------------------------
Unaudited (Dollars in millions) Amount % of Total Amount % of Total Amount % of Total Amount % of Total
- ------------------------------------------------------------------------------------------------------------------------------------
Less than 20% $6 100.0% $5 100.0% $8 88.9% $33 26.6%
20% or more for less than six months 0 0.0% 0 0.0% 1 11.1% 91 73.4%
20% or more for six months or greater 0 0.0% 0 0.0% 0 0.0% 0 0.0%
-----------------------------------------------------------------------------------
Total Gross Unrealized Losses $6 100.0% $5 100.0% $9 100.0% $124 100.0%
===================================================================================
Total Gross Unrealized Gains $382 $274 $208 $114
======= ======= ======= =======
(1) The Company's review of its fixed maturities 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 amortized cost by less than 20%; (ii)
securities where the estimated fair value had declined and remained below
amortized cost by 20% or more for less than six months; and (iii)
securities where the estimated value had declined and remained below
amortized cost by 20% or more for six months or greater.
(2) Certain amounts in prior periods presented have been reclassified/restated
to conform with current period presentation.
48
(METLIFE LOGO)
- --------------------------------------------------------------------------------
METLIFE, INC.
SUMMARY OF FIXED MATURITIES
BY SECTOR AND QUALITY DISTRIBUTION
At December 31, 2004 At September 30, 2004 At June 30, 2004 At March 31, 2004
--------------------------------------------------------------------------------------
Unaudited (Dollars in millions) Amount % of Total Amount % of Total Amount % of Total Amount % of Total
- ------------------------------------------------------------------------------------------------------------------------------------
US treasuries/agencies $17,826 10.1% $16,561 9.4% $16,664 9.8% $17,065 9.8%
State & political subdivisions 3,899 2.2% 3,853 2.2% 3,675 2.2% 3,580 2.0%
US corporate securities 61,720 34.9% 63,130 35.8% 60,619 35.6% 63,215 36.3%
Foreign government securities 8,585 4.9% 8,380 4.8% 8,019 4.7% 8,444 4.8%
Foreign corporate securities 27,838 15.7% 27,076 15.4% 24,732 14.5% 24,654 14.2%
Residential mortgage-backed securities 32,230 18.2% 30,978 17.6% 30,698 18.0% 31,825 18.3%
Commercial mortgage-backed securities 12,501 7.1% 12,016 6.8% 12,019 7.1% 11,955 6.9%
Asset-backed securities 10,876 6.1% 12,912 7.3% 12,444 7.3% 12,327 7.1%
Other fixed income assets 985 0.6% 644 0.4% 780 0.5% 491 0.3%
--------------------------------------------------------------------------------------
Total 176,460 99.8% 175,550 99.7% 169,650 99.7% 173,556 99.7%
Redeemable preferred stock 303 0.2% 541 0.3% 542 0.3% 544 0.3%
--------------------------------------------------------------------------------------
Total Fixed Maturities $176,763 100.0% $176,091 100.0% $170,192 100.0% $174,100 100.0%
======================================================================================
NAIC RATING AGENCY
RATING (1) EQUIVALENT DESIGNATION
1 Aaa / Aa / A $118,779 67.2% $117,658 66.8% $113,607 66.8% $116,165 66.7%
2 Baa 45,311 25.6% 45,728 25.9% 43,829 25.8% 44,842 25.8%
3 Ba 7,500 4.2% 7,514 4.3% 7,334 4.3% 7,731 4.4%
4 B 4,414 2.5% 4,089 2.3% 4,086 2.4% 3,929 2.3%
5 Caa and lower 366 0.2% 443 0.3% 583 0.3% 700 0.4%
6 In or near default 90 0.1% 118 0.1% 211 0.1% 189 0.1%
--------------------------------------------------------------------------------------
Total 176,460 99.8% 175,550 99.7% 169,650 99.7% 173,556 99.7%
Redeemable preferred stock 303 0.2% 541 0.3% 542 0.3% 544 0.3%
--------------------------------------------------------------------------------------
Total Fixed Maturities $176,763 100.0% $176,091 100.0% $170,192 100.0% $174,100 100.0%
======================================================================================
At December 31, 2003 At September 30, 2003 At June 30, 2003 At March 31, 2003
--------------------------------------------------------------------------------------
Unaudited (Dollars in millions) Amount % of Total Amount % of Total Amount % of Total Amount % of Total
- ------------------------------------------------------------------------------------------------------------------------------------
US treasuries/agencies $15,945 9.5% $14,730 9.2% $13,992 8.8% $12,489 8.7%
State & political subdivisions 3,349 2.0% 3,276 2.0% 3,022 1.9% 2,683 1.8%
US corporate securities 60,391 36.0% 57,746 36.1% 56,548 35.6% 52,167 36.1%
Foreign government securities 8,764 5.2% 9,027 5.7% 8,938 5.6% 8,374 5.8%
Foreign corporate securities 23,842 14.2% 21,787 13.6% 22,030 13.9% 19,542 13.5%
Residential mortgage-backed securities 31,454 18.8% 31,831 19.9% 33,166 20.9% 30,260 21.0%
Commercial mortgage-backed securities 11,031 6.6% 9,318 5.8% 8,649 5.4% 7,509 5.2%
Asset-backed securities 11,863 7.1% 11,033 6.9% 11,222 7.1% 10,224 7.1%
Other fixed income assets 576 0.3% 687 0.5% 771 0.5% 655 0.5%
--------------------------------------------------------------------------------------
Total 167,215 99.7% 159,435 99.7% 158,338 99.7% 143,903 99.7%
Redeemable preferred stock 537 0.3% 505 0.3% 484 0.3% 438 0.3%
--------------------------------------------------------------------------------------
Total Fixed Maturities $167,752 100.0% $159,940 100.0% $158,822 100.0% $144,341 100.0%
======================================================================================
NAIC RATING AGENCY
RATING (1) EQUIVALENT DESIGNATION
1 Aaa / Aa / A $112,333 67.0% $107,284 67.1% $107,243 67.5% $97,087 67.3%
2 Baa 42,057 25.0% 39,066 24.4% 38,263 24.1% 34,326 23.8%
3 Ba 8,011 4.8% 7,913 5.0% 7,727 4.9% 7,624 5.3%
4 B 3,814 2.3% 3,962 2.5% 3,854 2.4% 3,658 2.5%
5 Caa and lower 629 0.4% 545 0.3% 724 0.5% 627 0.4%
6 In or near default 371 0.2% 665 0.4% 527 0.3% 581 0.4%
--------------------------------------------------------------------------------------
Total 167,215 99.7% 159,435 99.7% 158,338 99.7% 143,903 99.7%
Redeemable preferred stock 537 0.3% 505 0.3% 484 0.3% 438 0.3%
--------------------------------------------------------------------------------------
Total Fixed Maturities $167,752 100.0% $159,940 100.0% $158,822 100.0% $144,341 100.0%
======================================================================================
(1) Amounts presented are based on rating agency designations. Comparisons
between NAIC ratings and rating agency designations are published by the
NAIC.
METLIFE, INC.
SUMMARY OF COMMERCIAL MORTGAGE LOANS BY
REGION AND PROPERTY TYPE
At December 31, 2004 At September 30, 2004 At June 30, 2004 At March 31, 2004
--------------------------------------------------------------------------------------
Unaudited (Dollars in millions) Amount % of Total Amount % of Total Amount % of Total Amount % of Total
- ------------------------------------------------------------------------------------------------------------------------------------
South Atlantic $5,696 22.8% $5,502 23.6% $5,247 23.8% $4,929 23.8%
Pacific 6,075 24.3% 5,608 24.3% 5,327 24.2% 5,172 25.1%
Middle Atlantic 4,057 16.2% 3,704 15.9% 3,513 16.0% 3,450 16.6%
East North Central 2,550 10.2% 2,443 10.5% 2,294 10.4% 1,894 9.1%
New England 1,412 5.6% 1,285 5.5% 1,302 5.9% 1,295 6.2%
West South Central 2,024 8.1% 1,775 7.6% 1,470 6.7% 1,415 6.8%
Mountain 778 3.1% 741 3.2% 785 3.6% 763 3.7%
West North Central 667 2.7% 615 2.6% 625 2.8% 606 2.9%
International 1,364 5.5% 1,219 5.2% 1,064 4.8% 943 4.5%
East South Central 268 1.1% 276 1.2% 278 1.3% 265 1.3%
Other 99 0.4% 99 0.4% 100 0.5% 0 0.0%
-------------------------------------------------------------------------------------
Total $24,990 100.0% $23,267 100.0% $22,005 100.0% $20,732 100.0%
=====================================================================================
Office $11,500 46.0% $10,826 46.6% $10,301 46.8% $9,570 46.1%
Retail 5,698 22.8% 5,288 22.7% 5,221 23.7% 4,961 23.9%
Apartments 3,264 13.1% 3,095 13.3% 3,001 13.6% 2,916 14.1%
Industrial 2,499 10.0% 2,034 8.7% 1,951 8.9% 1,852 8.9%
Hotel 1,245 5.0% 1,227 5.3% 1,098 5.0% 1,027 5.0%
Other 784 3.1% 797 3.4% 433 2.0% 406 2.0%
-------------------------------------------------------------------------------------
Total $24,990 100.0% $23,267 100.0% $22,005 100.0% $20,732 100.0%
=====================================================================================
At December 31, 2003 At September 30, 2003 At June 30, 2003 At March 31, 2003
--------------------------------------------------------------------------------------
Unaudited (Dollars in millions) Amount % of Total Amount % of Total Amount % of Total Amount % of Total
- ------------------------------------------------------------------------------------------------------------------------------------
South Atlantic $4,978 24.5% $5,027 25.2% $5,139 25.9% $5,167 26.3%
Pacific 5,005 24.7% 4,587 23.0% 4,130 20.8% 4,198 21.4%
Middle Atlantic 3,455 17.0% 3,522 17.6% 3,543 17.9% 3,416 17.4%
East North Central 1,821 9.0% 1,808 9.1% 2,331 11.8% 2,260 11.5%
New England 1,278 6.3% 1,269 6.4% 1,181 6.0% 1,168 6.0%
West South Central 1,370 6.8% 1,352 6.8% 1,256 6.3% 1,149 5.9%
Mountain 740 3.6% 798 4.0% 845 4.3% 858 4.4%
West North Central 619 3.0% 582 2.9% 580 2.9% 598 3.0%
International 836 4.1% 811 4.1% 631 3.2% 631 3.2%
East South Central 198 1.0% 189 0.9% 187 0.9% 178 0.9%
Other 0 0.0% 0 0.0% 0 0.0% 0 0.0%
------------------------------------------------------------------------------------
Total $20,300 100.0% $19,945 100.0% $19,823 100.0% $19,623 100.0%
====================================================================================
Office $9,170 45.2% $8,919 44.7% $9,414 47.4% $9,301 47.5%
Retail 5,006 24.7% 4,825 24.2% 4,471 22.6% 4,321 22.0%
Apartments 2,832 13.9% 2,932 14.7% 2,805 14.2% 2,867 14.6%
Industrial 1,911 9.4% 1,940 9.7% 1,922 9.7% 1,893 9.6%
Hotel 1,032 5.1% 1,038 5.2% 955 4.8% 996 5.1%
Other 349 1.7% 291 1.5% 256 1.3% 245 1.2%
------------------------------------------------------------------------------------
Total $20,300 100.0% $19,945 100.0% $19,823 100.0% $19,623 100.0%
====================================================================================
49
(METLIFE LOGO)
- --------------------------------------------------------------------------------
METLIFE, INC.
SUMMARY OF REAL ESTATE
At December 31, At September 30, At June 30, At March 31,
Unaudited (Dollars in millions) 2004 2004 2004 2004
- ------------------------------------------------------------------------------------------------------------------------------------
Wholly owned $3,935 $3,911 $3,823 $4,409
Joint ventures 390 368 329 287
-----------------------------------------------------------------------
Subtotal 4,325 4,279 4,152 4,696
Foreclosed 4 2 2 3
-----------------------------------------------------------------------
Total Real Estate (1) $4,329 $4,281 $4,154 $4,699
=======================================================================
At December 31, At September 30, At June 30, At March 31,
Unaudited (Dollars in millions) 2003 2003 2003 2003
- ------------------------------------------------------------------------------ -----------------------------------------------------
Wholly owned $4,362 $4,927 $4,184 $4,199
Joint ventures 315 322 303 271
-----------------------------------------------------------------------
Subtotal 4,677 5,249 4,487 4,470
Foreclosed 3 6 4 5
-----------------------------------------------------------------------
Total Real Estate (1) $4,680 $5,255 $4,491 $4,475
=======================================================================
(1) Includes real estate held-for-sale and held-for-investment.
METLIFE, INC.
SUMMARY OF MORTGAGES AND OTHER LOANS
At December 31, At September 30, At June 30, At March 31,
Unaudited (Dollars in millions) 2004 2004 2004 2004
- ------------------------------------------------------------------------------------------------------------------------------------
COMMERCIAL MORTGAGES $24,990 $23,267 $22,005 $20,732
AGRICULTURAL MORTGAGES 5,907 5,593 5,377 5,226
OTHER LOANS 1,509 760 736 604
-----------------------------------------------------------------------
TOTAL $32,406 $29,620 $28,118 $26,562
=======================================================================
At December 31, At September 30, At June 30, At March 31,
Unaudited (Dollars in millions) 2003 2003 2003 2003
- ------------------------------------------------------------------------------------------------------------------------------------
COMMERCIAL MORTGAGES $20,300 $19,945 $19,823 $19,623
AGRICULTURAL MORTGAGES 5,327 5,131 5,090 5,052
OTHER LOANS 622 459 376 371
-----------------------------------------------------------------------
TOTAL $26,249 $25,535 $25,289 $25,046
=======================================================================
METLIFE, INC.
DISTRIBUTION OF ASSETS UNDER MANAGEMENT
At December 31, At September 30, At June 30, At March 31,
Unaudited (Dollars in millions) 2004 2004 2004 2004
- ------------------------------------------------------------------------------------------------------------------------------------
METLIFE $269.9 $265.0 $258.3 $258.9
METLIFE SEPARATE ACCOUNT 86.8 81.2 79.7 78.3
STATE STREET THIRD PARTY 30.1 27.3 27.1 25.7
---------------------------------------------------------------------
TOTAL ASSETS UNDER MANAGEMENT $386.8 $373.5 $365.1 $362.9
=====================================================================
At December 31, At September 30, At June 30, At March 31,
Unaudited (Dollars in millions) 2003 2003 2003 2003
- ------------------------------------------------------------------------------------------------------------------------------------
METLIFE $251.0 $245.0 $242.3 $226.3
METLIFE SEPARATE ACCOUNT 75.8 70.0 67.5 60.6
STATE STREET THIRD PARTY 23.4 21.6 21.9 20.8
------------------------------------------------------------------------
TOTAL ASSETS UNDER MANAGEMENT $350.2 $336.6 $331.7 $307.7
========================================================================
50
(METLIFE LOGO)
- --------------------------------------------------------------------------------
COMPANY RATINGS AS OF FEBRUARY 8, 2005(1)
Moody's Standard & A.M. Best Fitch
Investors Service Poor's Company Ratings
----------------- ---------- --------- -------
FINANCIAL STRENGTH RATINGS
Metropolitan Life Insurance Company Aa2 * AA * A+ AA
Metropolitan Life Insurance Company (Short-term rating) P-1 A-1+ NR NR
First MetLife Investors Insurance Co. NR AA * A+ NR
General American Life Insurance Company Aa2 * AA * A+ AA
MetLife Investors Insurance Company Aa2 * AA * A+ AA
MetLife Investors Insurance Company of California NR AA * A+ NR
MetLife Investors USA Insurance Company Aa3 * AA * A+ AA
New England Life Insurance Company Aa2 * AA * A+ AA
Paragon Life Insurance Company NR AA * A+ AA
Texas Life Insurance Company NR NR A NR
RGA Reinsurance Company A1 AA- * A+ AA-
Metropolitan Property and Casualty Insurance Company Aa3 * NR A NR
Metropolitan Casualty Insurance Company NR NR A NR
Metropolitan Direct Property and Casualty Insurance Co. NR NR A NR
Metropolitan General Insurance Company NR NR A NR
Metropolitan Group Property & Casualty Insurance Co. NR NR A NR
Metropolitan Lloyds Insurance Company of Texas NR NR A NR
CREDIT RATINGS
MetLife, Inc.
Senior Unsecured A2 * A * a * A
Commercial Paper P-1 * A-1 * AMB-1+ * F1
Metropolitan Life Insurance Company
Surplus Notes A1 * A+ * a+ * A+
MetLife Funding, Inc.
Commercial Paper P-1 A-1+ AMB-1+ * F1+
General American Life Insurance Company
Surplus Notes A1 * A+ * a+ * NR
GenAmerica Capital I
Preferred Stock A3 * BBB+ * NR A-
Reinsurance Group of America, Incorporated
Senior Unsecured Baa1 A- * a- A-
RGA Capital Trust I
Preferred Stock Baa2 BBB * bbb+ BBB+
* Moody's outlook for these ratings is negative. Standard & Poor's and A.M.
Best Company ratings are credit watch with negative implications.
(1) NR indicates not rated.
51