PUBLIC RELATIONS
METLIFE, INC.
FOR IMMEDIATE RELEASE NEWS ONE METLIFE PLAZA
27-01 QUEENS PLAZA NORTH
LONG ISLAND CITY, NY 11101
METLIFE [SNOOPY GRAPHIC]
Contacts: For Media: For Investors:
John Calagna Tracey Dedrick
(212) 578-6252 (212) 578-5140
METLIFE ANNOUNCES THIRD QUARTER 2005 RESULTS
- -NET INCOME AVAILABLE TO COMMON SHAREHOLDERS OF $0.97 PER DILUTED COMMON SHARE-
- OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
OF $1.01 PER DILUTED COMMON SHARE, A 23% INCREASE -
NEW YORK, October 27, 2005 - MetLife, Inc. (NYSE: MET) today reported third
quarter 2005 net income available to common shareholders of $742 million, or
$0.97 per diluted common share, compared with $695 million, or $0.92 per diluted
common share, for the third quarter of 2004.
<Table>
<Caption>
For the three months ended September 30,
-------------------------------------------------------------------
2005 2004
------------------------------ ------------------------------
(Dollars in millions, except per diluted common share data)
Net income available to
common shareholders $ 742 $ 695
Net income available to
common shareholders per
diluted common share $ 0.97 $ 0.92
Operating earnings available
to common shareholders(1) $ 780 $ 618
Operating earnings available
to common shareholders per
diluted common share(1) $ 1.01 $ 0.82
Book value per diluted common
share $34.75 $30.50
Book value per diluted common
share, excluding
accumulated other
comprehensive income(1) $32.32 $26.79
</Table>
(1) Operating earnings, operating earnings available to common shareholders,
operating earnings available to common shareholders per diluted common share and
book value per diluted common share (excluding accumulated other comprehensive
income) are not calculated based on generally accepted accounting principles
("GAAP"). Information
regarding non-GAAP financial measures in this press release and the
reconciliation of them to GAAP measures are provided in the Non-GAAP and Other
Financial Disclosures section below, as well as in the tables that accompany
this release.
THIRD QUARTER HIGHLIGHTS
- - Achieved quarterly net income available to common shareholders of $742
million
- - Earned total premiums, fees and other revenues of $8 billion, a 19%
increase over the prior year period
- - Reached $483 billion in assets under management
- - Completed acquisition of Travelers Life & Annuity and substantially all of
Citigroup's international insurance businesses on July 1, which
contributed approximately 10% to operating earnings available to common
shareholders, excluding integration and related expenses for the quarter
"During the third quarter of 2005, MetLife continued to deliver overall strong
results reflecting, in part, an important contribution from the businesses we
acquired as a result of the Travelers transaction. We remain on track to
complete the integration of the Travelers business by November 1," said Robert
H. Benmosche, chairman and chief executive officer of MetLife, Inc. "We have
been extremely effective over the past few months integrating Travelers, while
maintaining intense focus on achieving our overall financial objectives. This
focus, along with the 2005 annual dividend we announced earlier this week,
further demonstrates our commitment to providing value to MetLife's
shareholders and fulfilling the promises we continue to make to our customers."
Operating earnings available to common shareholders for the third quarter of
2005 were $780 million, or $1.01 per diluted common share, compared with $618
million, or $0.82 per diluted common share, for the prior year period.
ESTIMATED KATRINA LOSSES
MetLife estimates that the company's total net losses from Hurricane Katrina,
which impacted the Auto & Home and Institutional (primarily disability business)
segments, will be $130 million, net of income taxes and reinsurance recoverables
and including premiums related to the catastrophe, or $0.17 per diluted common
share. MetLife estimates its gross losses from Katrina to be approximately $340
million, primarily arising from the company's homeowners business.
THIRD QUARTER SEGMENT OVERVIEW
Reconciliations of segment net income available to common shareholders to
segment operating earnings available to common shareholders are provided in the
tables that accompany this release.
During the quarter, MetLife had integration-related expenses of $38 million and
recorded an accrual of $75 million for an employee bonus tied to the timely
completion of the Travelers integration.
INSTITUTIONAL BUSINESS EARNINGS UP 30%
Institutional Business operating earnings available to common shareholders for
the third quarter of 2005 were $386 million, compared with $298 million in the
prior year period. Strong growth in the asset base for retirement & savings, due
in large part to the Travelers acquisition, as well as higher net investment
income, contributed to the earnings growth in the segment. In addition,
non-medical health & other earnings increased 39%, primarily due to business
growth across the majority of products. This includes a $12 million increase,
net of income taxes, in disability benefits related to Hurricane Katrina.
2
During the quarter, group life premiums, fees and other revenues grew 16% over
the prior year period primarily due to sales growth and favorable renewal
activity, including a substantial, one-time premium on a large participating
contract. Retirement & savings net investment income grew 61% compared to the
prior year period largely due to the Travelers acquisition, higher corporate
joint venture income and an increase in the asset base driven by favorable
guaranteed interest contract sales. Non-medical health premiums, fees and other
revenues increased 13% over the prior year period due to continued growth across
all product lines.
INDIVIDUAL BUSINESS EARNINGS UP 66%
Individual Business operating earnings available to common shareholders were
$331 million in the third quarter of 2005, compared with $200 million in the
prior year period. The strong growth in the segment was driven by the Travelers
acquisition, as well as continued growth in the business. Traditional life
results benefited from strong investment performance and favorable mortality in
the open block of business. Fees for the investment-type products within the
annuity business doubled compared with the prior year period as a result of
growth in the separate account assets. Annuity results also benefited from
strong investment performance. Traditional life first year premiums and deposits
were up 18%, driven by higher term life sales.
AUTO & HOME EARNINGS
The Auto & Home segment reported an operating loss of $26 million in the third
quarter of 2005, compared with operating earnings available to common
shareholders of $34 million in the prior year period. During the quarter, the
segment had catastrophe losses of $130 million, net of income taxes and
reinsurance recoverables and including premiums related to the catastrophes.
These losses were primarily due to Hurricane Katrina ($116 million, net of
income taxes and reinsurance recoverables and including premiums related to the
catastrophe) and Hurricanes Rita and Ophelia ($6 million, net of income taxes).
While the homeowners business was significantly impacted by hurricanes, earnings
in the auto business increased 25%.
INTERNATIONAL EARNINGS UP 40%
International operating earnings available to common shareholders were $66
million in the third quarter of 2005, compared with $47 million in the prior
year period. Earnings in this segment increased due in part to a one-time $15
million tax benefit, as well as continued business growth in Latin America and
Asia Pacific.
INVESTMENTS
During the third quarter of 2005, variable income was at higher than normal
levels, primarily from corporate joint ventures.
EARNINGS CONFERENCE CALL
MetLife will hold its third quarter earnings conference call and audio Webcast
on Friday, October 28, 2005, from 8:00 to 9:00 a.m. (ET). The conference call
will be available live via telephone and the Internet. To listen over the
telephone, dial (612) 326-1003 (domestic and international callers). To listen
to the conference call over the Internet, visit www.metlife.com (through a link
on the Investor Relations page).
3
NON-GAAP AND OTHER FINANCIAL DISCLOSURES
MetLife analyzes its performance using non-GAAP measures called operating
earnings, operating earnings available to common shareholders and operating
earnings available to common shareholders per diluted common share. Operating
earnings is defined as GAAP net income excluding net investment gains and
losses, net of income taxes, adjustments related to net investment gains and
losses, net of income taxes, the impact from the cumulative effect of a change
in accounting, net of income taxes, and discontinued operations other than
discontinued real estate, net of income taxes. Scheduled settlement payments on
derivative instruments not qualifying for hedge accounting treatment are
included in operating earnings. Operating earnings available to common
shareholders is defined as operating earnings less preferred stock dividends,
which are recorded in Corporate & Other. Operating earnings available to common
shareholders per diluted common share is calculated by dividing operating
earnings available to common shareholders by the number of weighted average
diluted common shares outstanding for the period indicated. MetLife believes
these measures enhance the understanding and comparability of its performance by
excluding net 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, the impact of the cumulative
effect of a change in accounting, net of income taxes, and discontinued
operations other than discontinued real estate, net of income taxes, thereby
highlighting the results from operations and the underlying profitability
drivers of the business. Operating earnings, operating earnings available to
common shareholders and operating earnings available to common shareholders per
diluted common share should not be viewed as substitutes for GAAP net income,
GAAP net income available to common shareholders and GAAP net income available
to common shareholders per diluted common share, respectively.
4
<Table>
<Caption>
For the three months ended September 30,
---------------------------------------------------------------------------------
2005 2004
------------------------------------- -------------------------------------
(Dollars in millions, except per diluted common share data)
Net income available to
common shareholders $742 $ 0.97 $ 695 $ 0.92
Net investment (gains)
losses, net of income
taxes(1) 15 0.02 (118) (0.16)
Adjustments related to net
investment (gains) losses,
net of income taxes(2) 30 0.03 44 0.06
Discontinued operations, net
of income taxes(3) (7) (0.01) (3) --
------------------------------------- -------------------------------------
Operating earnings available
to common shareholders $780 $ 1.01 $ 618 $ 0.82
===================================== =====================================
Book value per diluted common
share $34.75 $30.50
Accumulated other
comprehensive income per
diluted common share $(2.43) $(3.71)
--------------- ---------------
Book value per diluted common
share, excluding
accumulated other
comprehensive income $32.32 $26.79
=============== ===============
(1) Net investment (gains) losses, net of income taxes, includes (gains) losses
on sales of real estate and real estate joint ventures related to discontinued
operations of $(30) million and $10 million for the three months ended September
30, 2005 and 2004, respectively, and excludes (gains) losses of $(17) million
and $(8) million for the three months ended September 30, 2005 and 2004,
respectively, from scheduled settlement payments on derivative instruments not
qualifying for hedge accounting treatment.
(2) Adjustments related to net investment (gains) losses, net of income taxes,
include amortization of deferred policy acquisition costs, adjustments to the
policyholder dividend obligation and amounts allocable to certain participating
contracts.
(3) Excludes (gains) losses on sales of real estate and real estate joint
ventures related to discontinued operations.
This release contains statements which constitute forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995,
including statements relating to trends in the operations and financial results
and the business and the products of the company and its subsidiaries, as well
as other statements including words such as "anticipate," "believe," "plan,"
"estimate," "expect," "intend" and other similar expressions. Forward-looking
statements are made based upon management's current expectations and beliefs
concerning future developments and their potential effects on the company.
Such forward-looking statements are not guarantees of future performance.
Actual results may differ materially from those included in the forward-looking
statements as a result of risks and uncertainties including, but not limited to,
the following: (i) changes in general economic conditions, including the
performance of financial markets and interest rates; (ii) heightened
competition, including with respect to pricing, entry of new competitors and the
5
development of new products by new and existing competitors; (iii) unanticipated
changes in industry trends; (iv) the company's primary reliance, as a holding
company, on dividends from its subsidiaries to meet debt payment obligations and
the applicable regulatory restrictions on the ability of the subsidiaries to pay
such dividends; (v) deterioration in the experience of the "closed block"
established in connection with the reorganization of Metropolitan Life Insurance
Company; (vi) catastrophe losses; (vii) adverse results or other consequences
from litigation, arbitration or regulatory investigations; (viii) regulatory,
accounting or tax changes that may affect the cost of, or demand for, the
company's products or services; (ix) downgrades in the company's and its
affiliates' claims paying ability, financial strength or credit ratings; (x)
changes in rating agency policies or practices; (xi) discrepancies between
actual claims experience and assumptions used in setting prices for the
company's products and establishing the liabilities for the company's
obligations for future policy benefits and claims; (xii) discrepancies between
actual experience and assumptions used in establishing liabilities related to
other contingencies or obligations; (xiii) the effects of business disruption or
economic contraction due to terrorism or other hostilities; (xiv) the company's
ability to identify and consummate on successful terms any future acquisitions,
and to successfully integrate acquired businesses with minimal disruption; and
(xv) other risks and uncertainties described from time to time in the company's
filings with the Securities and Exchange Commission, including its S-1 and S-3
registration statements. The company specifically disclaims any obligation to
update or revise any forward-looking statement, whether as a result of new
information, future developments or otherwise.
MetLife, Inc. is a leading provider of insurance and other financial services to
millions of individual and institutional customers throughout the United States.
Through its subsidiaries and affiliates, MetLife, Inc. offers life insurance,
annuities, automobile and homeowner's insurance and retail banking services to
individuals, as well as group insurance, reinsurance and retirement and savings
products and services to corporations and other institutions. Outside the U.S.,
the MetLife companies have direct insurance operations in Asia Pacific, Latin
America and Europe. For more information, please visit www.metlife.com.
For a copy of MetLife's Quarterly Financial Supplement, please visit
www.metlife.com.
# # #
6
MetLife, Inc.
Consolidated Statements of Income
Unaudited
(Dollar amounts in millions)
Three months ended Nine months ended
September 30, September 30,
------------------- -------------------
2005 2004 2005 2004
---- ---- ---- ----
Premiums $ 6,514 $ 5,679 $ 18,514 $ 16,400
Universal life and investment-type product policy fees 1,112 736 2,716 2,120
Net investment income 4,088 3,059 10,784 9,076
Other revenues 348 292 948 889
Net investment gains (losses) (50) 206 268 369
-------- -------- -------- --------
Total revenues 12,012 9,972 33,230 28,854
-------- -------- -------- --------
Policyholder benefits and claims 6,837 5,924 19,018 16,775
Interest credited to policyholder account balances 1,149 739 2,764 2,220
Policyholder dividends 426 407 1,261 1,252
Other expenses 2,615 1,933 6,591 5,645
-------- -------- -------- --------
Total expenses 11,027 9,003 29,634 25,892
-------- -------- -------- --------
Income from continuing operations before provision
for income taxes 985 969 3,596 2,962
Provision for income taxes 246 290 1,049 817
-------- -------- -------- --------
Income from continuing operations 739 679 2,547 2,145
Income from discontinued operations, net of income taxes 34 16 1,458 188
-------- -------- -------- --------
Income before cumulative effect of a change in accounting,
net of income taxes 773 695 4,005 2,333
Cumulative effect of a change in accounting, net of income taxes (1) -- -- -- (86)
-------- -------- -------- --------
Net income 773 695 4,005 2,247
Preferred stock dividend 31 -- 31 --
-------- -------- -------- --------
Net income available to common shareholders $ 742 $ 695 $ 3,974 $ 2,247
======== ======== ======== ========
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS RECONCILIATION
- -------------------------------------------------------------------
Net income available to common shareholders 742 695 3,974 2,247
Net investment gains (losses) (23) 178 2,181 458
Minority interest - net investment gains (losses) (1) 2 (12) (14)
Net investment gains (losses) tax benefit (provision) 9 (62) (766) (148)
-------- -------- -------- --------
Net investment gains (losses), net of income taxes (2)(3) (15) 118 1,403 296
Adjustments related to policyholder benefits and dividends (55) (74) (71) 73
Adjustments related to other expenses 7 6 (17) (16)
Adjustments related to tax benefit (provision) 18 24 31 (20)
-------- -------- -------- --------
Adjustments related to net investment gains (losses),
net of income taxes (4) (30) (44) (57) 37
Cumulative effect of a change in accounting,
net of income taxes (1) -- -- -- (86)
Discontinued operations, net of income taxes (5) 7 3 156 18
-------- -------- -------- --------
Operating earnings available to common shareholders $ 780 $ 618 $ 2,472 $ 1,982
======== ======== ======== ========
(1) The cumulative effect of a change in accounting, net of income taxes, for
the nine months ended September 30, 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.
(2) Net investment gains (losses), net of income taxes, includes gains
(losses) on sales of real estate and real estate joint ventures related to
discontinued operations, of $30 million and $1,269 million, respectively,
for the three months and nine months ended September 30, 2005 and ($10)
million and $88 million, respectively, for the three months and nine
months ended September 30, 2004.
(3) Net investment gains (losses), net of income taxes, excludes gains
(losses) of $17 million and $40 million, respectively, for the three
months and nine months ended September 30, 2005 and $8 million and $31
million, respectively, for the three months and nine months ended
September 30, 2004 from scheduled settlement payments on derivative
instruments not qualifying for hedge accounting treatment.
(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) Excludes gains (losses) on sales of real estate and real estate joint
ventures related to discontinued operations.
MetLife, Inc.
Financial Highlights
Unaudited
(Dollar amounts in millions, except per common share data or
unless otherwise noted)
At or for the three months At or for the nine months
ended September 30, ended September 30,
------------------- -------------------
2005 2004 2005 2004
---- ---- ---- ----
Other Financial Data:
Net income available to common shareholders $ 742 $ 695 $ 3,974 $ 2,247
Operating earnings available to common shareholders $ 780 $ 618 $ 2,472 $ 1,982
Total assets under management (billions) $ 482.8 $ 346.2 $ 482.8 $ 346.2
Individual Business Sales Data:
Total first year life premiums and deposits $ 357 $ 240 $ 777 $ 716
Variable and Universal life first year premiums and
deposits (including COLI/BOLI) $ 305 $ 196 $ 626 $ 580
Total annuity deposits $ 3,624 $ 2,410 $ 8,660 $ 8,728
Mutual fund sales $ 1,006 $ 689 $ 2,876 $ 2,598
Earnings Per Share Calculation:
Weighted average common shares outstanding - diluted 768.7 753.4 753.1 757.3
Operating earnings available to common shareholders
per common share - diluted $ 1.01 $ 0.82 $ 3.28 $ 2.62
Net income available to common shareholders per
common share - diluted $ 0.97 $ 0.92 $ 5.28 $ 2.97
MetLife, Inc.
Balance Sheet Data
September 30, 2005 (Unaudited) and December 31, 2004 (Audited)
(Dollar amounts in millions)
At At
September 30, December 31,
2005 2004
------------- ------------
Balance Sheet Data:
General account assets $ 358,775 $ 270,039
Separate account assets 124,044 86,769
--------- ---------
Total assets $ 482,819 $ 356,808
========= =========
Policyholder liabilities (including amounts of closed block) $ 260,256 $ 194,104
Short-term debt 1,303 1,445
Long-term debt 9,492 7,412
Junior subordinated debt securities underlying common equity units 2,134 --
Shares subject to mandatory redemption 278 278
Other liabilities 56,555 43,976
Separate account liabilities 124,044 86,769
--------- ---------
Total liabilities 454,062 333,984
--------- ---------
Preferred stock, at par value 1 --
Common stock, at par value 8 8
Additional paid-in capital 17,273 15,037
Retained earnings 10,582 6,608
Treasury stock (981) (1,785)
Accumulated other comprehensive income 1,874 2,956
--------- ---------
Total stockholders' equity 28,757 22,824
--------- ---------
Total liabilities and stockholders' equity $ 482,819 $ 356,808
========= =========
MetLife, Inc.
Reconciliations of Net Income Available to Common Shareholders
to Operating Earnings Available to Common Shareholders
Unaudited
(Dollar amounts in millions)
Three months ended Nine months ended
September 30, September 30,
------------------------ -------------------------
2005 2004 (1) 2005 (1) 2004 (1)
---- -------- -------- --------
Total Institutional Operations
Net income available to common shareholders $ 343 $ 335 $ 1,282 $ 1,030
Net investment gains (losses), net of income taxes (61) 61 209 134
Adjustments related to net investment gains (losses),
net of income taxes 18 (24) 17 16
Cumulative effect of a change in accounting,
net of income taxes -- -- -- (60)
--------- --------- --------- ---------
Operating earnings available to common shareholders $ 386 $ 298 $ 1,056 $ 940
========= ========= ========= =========
Institutional Operations
Group Life
Net income available to common shareholders $ 113 $ 103 $ 283 $ 321
Net investment gains (losses), net of income taxes 7 3 (3) 18
Adjustments related to net investment gains (losses),
net of income taxes 4 -- 4 --
--------- --------- --------- ---------
Operating earnings available to common shareholders $ 102 $ 100 $ 282 $ 303
========= ========= ========= =========
Retirement & Savings
Net income available to common shareholders $ 178 $ 185 $ 796 $ 543
Net investment gains (losses), net of income taxes (45) 39 198 99
Adjustments related to net investment gains (losses),
net of income taxes 7 (3) 8 17
Cumulative effect of a change in accounting,
net of income taxes -- -- -- (40)
--------- --------- --------- ---------
Operating earnings available to common shareholders $ 216 $ 149 $ 590 $ 467
========= ========= ========= =========
Non-Medical Health & Other
Net income available to common shareholders $ 52 $ 47 $ 203 $ 166
Net investment gains (losses), net of income taxes (23) 19 14 17
Adjustments related to net investment gains (losses),
net of income taxes 7 (21) 5 (1)
Cumulative effect of a change in accounting,
net of income taxes -- -- -- (20)
--------- --------- --------- ---------
Operating earnings available to common shareholders $ 68 $ 49 $ 184 $ 170
========= ========= ========= =========
Total Individual Operations
Net income available to common shareholders $ 314 $ 259 $ 1,265 $ 685
Net investment gains (losses), net of income taxes (6) 80 353 92
Adjustments related to net investment gains (losses),
net of income taxes (11) (21) (31) (3)
--------- --------- --------- ---------
Operating earnings available to common shareholders $ 331 $ 200 $ 943 $ 596
========= ========= ========= =========
Individual Operations
Traditional Life
Net income available to common shareholders $ 109 $ 101 $ 551 $ 264
Net investment gains (losses), net of income taxes 31 61 300 65
Adjustments related to net investment gains (losses),
net of income taxes (22) (18) (29) --
--------- --------- --------- ---------
Operating earnings available to common shareholders $ 100 $ 58 $ 280 $ 199
========= ========= ========= =========
Variable & Universal Life
Net income available to common shareholders $ 46 $ 42 $ 133 $ 86
Net investment gains (losses), net of income taxes (12) 5 (11) 3
Adjustments related to net investment gains (losses),
net of income taxes 7 (2) 3 (1)
Cumulative effect of a change in accounting,
net of income taxes -- -- -- (11)
--------- --------- --------- ---------
Operating earnings available to common shareholders $ 51 $ 39 $ 141 $ 95
========= ========= ========= =========
Annuities
Net income available to common shareholders $ 148 $ 106 $ 556 $ 321
Net investment gains (losses), net of income taxes (29) 9 66 28
Adjustments related to net investment gains (losses),
net of income taxes 4 (1) (5) (2)
Cumulative effect of a change in accounting,
net of income taxes -- -- -- 11
--------- --------- --------- ---------
Operating earnings available to common shareholders $ 173 $ 98 $ 495 $ 284
========= ========= ========= =========
Other
Net income (loss) available to common shareholders $ 11 $ 10 $ 25 $ 14
Net investment gains (losses), net of income taxes 4 5 (2) (4)
--------- --------- --------- ---------
Operating earnings (loss) available to common shareholders $ 7 $ 5 $ 27 $ 18
========= ========= ========= =========
Total Auto & Home
Net income available to common shareholders $ (29) $ 33 $ 145 $ 147
Net investment gains (losses), net of income taxes (3) (1) (6) (4)
--------- --------- --------- ---------
Operating earnings available to common shareholders $ (26) $ 34 $ 151 $ 151
========= ========= ========= =========
Auto & Home
Auto
Net income available to common shareholders $ 63 $ 51 $ 171 $ 131
Net investment gains (losses), net of income taxes (2) (1) (4) (4)
--------- --------- --------- ---------
Operating earnings available to common shareholders $ 65 $ 52 $ 175 $ 135
========= ========= ========= =========
Three months ended Nine months ended
September 30, September 30,
------------------------ -------------------------
2005 2004 (1) 2005 (1) 2004 (1)
---- -------- -------- --------
Homeowners
Net income available to common shareholders $ (86) $ (18) $ (23) $ 16
Net investment gains (losses), net of income taxes -- -- (1) --
--------- --------- --------- ---------
Operating earnings available to common shareholders $ (86) $ (18) $ (22) $ 16
========= ========= ========= =========
Other
Net income (loss) available to common shareholders $ (6) $ -- $ (3) $ --
Net investment gains (losses), net of income taxes (1) -- (1) --
--------- --------- --------- ---------
Operating earnings (loss) available to common shareholders $ (5) $ -- $ (2) $ --
========= ========= ========= =========
International
Net income available to common shareholders $ 41 $ 38 $ 162 $ 144
Net investment gains (losses), net of income taxes 3 2 8 19
Adjustments related to net investment gains (losses),
net of income taxes (35) (9) (36) 25
Cumulative effect of a change in accounting,
net of income taxes -- -- -- (30)
Discontinued operations, net of income taxes 7 (2) 5 (5)
--------- --------- --------- ---------
Operating earnings available to common shareholders $ 66 $ 47 $ 185 $ 135
========= ========= ========= =========
Reinsurance
Net income available to common shareholders $ 28 $ 14 $ 64 $ 70
Net investment gains (losses), net of income taxes 4 (11) 16 15
Adjustments related to net investment gains (losses),
net of income taxes (2) 10 (7) (1)
Cumulative effect of a change in accounting,
net of income taxes -- -- -- --
--------- --------- --------- ---------
Operating earnings available to common shareholders $ 26 $ 15 $ 55 $ 56
========= ========= ========= =========
(1) Certain amounts in prior periods presented have been reclassified to
conform with current period presentation.