(METLIFE LOGO)
THIRD QUARTER
FINANCIAL SUPPLEMENT
SEPTEMBER 30, 2005
3
(SNOOPY GRAPHIC)
PEANUTS (C) United Feature Syndicate, Inc.
(METLIFE LOGO)
TABLE OF CONTENTS
HIGHLIGHTS
CORPORATE OVERVIEW 2
METLIFE, INC.
Consolidated Balance Sheets 3
Consolidated Statements of Operating Earnings Available to Common Shareholders 4
Consolidating Balance Sheet 5
Consolidating Statement of Operating Earnings Available to Common Shareholders 6
SUMMARY OF SEGMENT OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS 10
INSTITUTIONAL OPERATIONS
Statements of Operating Earnings Available to Common Shareholders 11
Premiums, Fees and Other Revenues by Product and Additional Statistical Information 15
Future Policy Benefits and Policyholder Account Balances and
Separate Account Liabilities 16
Other Expenses by Major Category 17
Spreads by Product 18
INDIVIDUAL OPERATIONS
Statements of Operating Earnings Available to Common Shareholders 19
Premiums and Deposits by Product and Mutual Fund Sales 24
Additional Statistical Information 25
Future Policy Benefits and Policyholder Account Balances and
Separate Account Liabilities 26
Insurance Expenses and Other Expenses by Major Category 27
Spreads by Product 28
AUTO & HOME OPERATIONS
Statements of Operating Earnings Available to Common Shareholders 29
Written Premiums by Product and Selected Financial Information and Supplemental Data 33
INTERNATIONAL OPERATIONS
Statement of Operating Earnings Available to Common Shareholders 34
REINSURANCE OPERATIONS
Statement of Operating Earnings Available to Common Shareholders 35
Pre-tax and Pre-minority Interest Operating Earnings
by Region and Reserves by Region 36
CORPORATE, OTHER & ELIMINATIONS
Statement of Operating Earnings Available to Common Shareholders 37
METLIFE, INC.
Investment Results by Asset Category and Annualized Yields 38
Fixed Maturities and Equity Securities Gross Unrealized Gains and Losses Aging Schedule 40
Summary of Fixed Maturities by Sector and Quality Distribution, and Summary of Commercial
Mortgage Loans by Region and Property Type 41
Summary of Real Estate, Summary of Mortgages and Consumer Loans and Distribution of
Assets Under Management 42
OTHER INFORMATION
Company Ratings 43
NOTE:
THE QUARTERLY FINANCIAL SUPPLEMENT ("QFS") INCLUDES FINANCIAL MEASURES,
OPERATING EARNINGS, OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS AND
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS PER DILUTED COMMON SHARE,
THAT ARE NOT BASED ON GENERALLY ACCEPTED ACCOUNTING PRINCIPLES ("GAAP").
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. RECONCILIATIONS
OF OPERATING EARNINGS TO GAAP NET INCOME, OPERATING EARNINGS AVAILABLE TO COMMON
SHAREHOLDERS TO GAAP NET INCOME AVAILABLE TO COMMON SHAREHOLDERS AND OPERATING
EARNINGS AVAILABLE TO COMMON SHAREHOLDERS PER DILUTED COMMON SHARE TO GAAP NET
INCOME AVAILABLE TO COMMON SHAREHOLDERS PER DILUTED COMMON SHARE, THE MOST
DIRECTLY COMPARABLE GAAP MEASURES, ARE INCLUDED IN THE QFS AND IN METLIFE'S
EARNINGS PRESS RELEASE DATED OCTOBER 27, 2005, FOR THE QUARTER ENDED
SEPTEMBER 30, 2005, WHICH ARE AVAILABLE AT WWW.METLIFE.COM.
1
(METLIFE LOGO)
CORPORATE OVERVIEW
Unaudited (Dollars and shares in millions, except per share data)
For the Three Months Ended
------------------------------------------------------------------
September 30, December 31, March 31, June 30, September 30,
2004 2004 2005 2005 2005
------------------------------------------------------------------
Net income (1) $695 $511 $987 $2,245 $773
Preferred stock dividend 0 0 0 0 31
------------------------------------------------------------------
Net income available to common shareholders 695 511 987 2,245 742
Net investment gains (losses) 178 (214) (21) 2,225 (23)
Minority interest - net investment gains (losses) 2 5 (9) (2) (1)
Net investment gains (losses) tax benefit (provision) (62) 71 9 (784) 9
------------------------------------------------------------------
Net investment gains (losses), net of income taxes (2) (3) (4) 118 (138) (21) 1,439 (15)
Adjustments related to policyholder benefits and
dividends (74) (9) 70 (86) (55)
Adjustments related to other expenses 6 5 (15) (9) 7
Adjustments related to tax benefit (provision) 24 1 (19) 32 18
------------------------------------------------------------------
Adjustments related to net investment gains (losses), net of
income taxes (5) (44) (3) 36 (63) (30)
------------------------------------------------------------------
Cumulative effect of a change in accounting, net of income
taxes 0 0 0 0 0
Discontinued operations, net of income taxes 3 (8) 150 (1) 7
------------------------------------------------------------------
Operating earnings available to common shareholders $618 (7) $660 $822 $870 (8) $780 (9)
==================================================================
Net income available to common shareholders per common share -
diluted $0.92 $0.68 $1.33 $3.02 $0.97
Net investment gains (losses), net of income taxes 0.16 (0.18) (0.03) 1.94 (0.02)
Adjustments related to net investment gains (losses), net of
income taxes (0.06) (0.01) 0.05 (0.09) (0.03)
Cumulative effect of a change in accounting, net of income
taxes 0.00 0.00 0.00 0.00 0.00
Discontinued operations, net of income taxes 0.00 (0.01) 0.20 0.00 0.01
------------------------------------------------------------------
Operating earnings available to common shareholders - diluted $0.82 $0.88 $1.11 $1.17 $1.01
==================================================================
Weighted average common shares outstanding - diluted 753.4 747.7 739.6 743.1 768.7
Book value per common share (actual common shares outstanding) $30.86 $31.16 $31.43 $35.60 $35.29
Book value per common share, excluding accumulated other
comprehensive income (actual common shares outstanding) $27.11 $27.12 $28.48 $31.41 $32.81
Book value per common share - diluted (weighted average common
shares outstanding) $30.50 $30.53 $31.15 $35.16 $34.75
Book value per common share, excluding accumulated other
comprehensive income - diluted (weighted average common
shares outstanding) $26.79 $26.57 $28.23 $31.02 $32.32
------------------------------------------------------------------
For the Three Months Ended
------------------------------------------------------------------
September 30, December 31, March 31, June 30, September 30,
2004 2004 2005 2005 2005
------------------------------------------------------------------
Common shares outstanding, beginning of period 750.0 744.5 732.5 733.1 733.9
Treasury stock (5.5) (12.0) 0.6 0.8 23.2
------------------------------------------------------------------
Common shares outstanding, end of period 744.5 732.5 733.1 733.9 757.1
Weighted average common shares outstanding - basic 749.2 742.3 734.0 736.5 759.8
Dilutive effect of convertible securities 0.0 0.0 0.0 0.0 0.0
Dilutive effect of stock options 4.2 5.4 5.6 6.4 8.6
Dilutive effect of LTPCP shares 0.0 0.0 0.0 0.2 0.3
------------------------------------------------------------------
Weighted average common shares outstanding - diluted 753.4 747.7 739.6 743.1 768.7
==================================================================
Policyholder Trust Shares 325.1 321.3 315.4 310.9 307.8
SUPPLEMENTAL DATA
Adjusted long-term debt to total capital (6)
22.8% 25.2% 24.2% 29.4% 28.3%
------------------------------------------------------------------
(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.
(2) Net investment gains (losses), net of income taxes, excludes scheduled
settlement payments on derivative instruments not qualifying for hedge
accounting treatment of $8 million, $2 million, $16 million, $8 million
and $17 million, for the three months ended September 30, 2004, December
31, 2004, March 31, 2005, June 30, 2005 and September 30, 2005,
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 includes discontinued operations of ($10)
million, $2 million, $12 million, $1,227 million and $30 million, for the
three months ended September 30, 2004, December 31, 2004, March 31, 2005,
June 30, 2005 and September 30,2005, respectively.
(4) Net investment gains (losses), net of income taxes, for the three months
ended December 31, 2004, includes a charge 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.
(5) 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.
(6) Adjusted long-term debt at September 30, 2004, December 31, 2004, March
31, 2005, June 30, 2005 and September 30, 2005 consists of $6,004 million,
$6,669 million, $6,657 million, $8,319 million and $8,297 million of
long-term debt, respectively, $0, $0, $0, $2,134 and $2,134 million of
junior subordinated debt securities underlying common equity units, and
$36 million, $111 million, $113 million, $115 million and $272 million of
adjusted short-term debt, respectively. Non-recourse debt not included in
adjusted long-term debt consists of $691 million, $743 million, $757
million, $985 million and $1,195 million, respectively. Non-core
borrowings not included in adjusted short-term debt consist of $1,530
million, $1,334 million, $1,007 million, $1,864 million and $1,031
million, respectively. Total capital is defined as adjusted long-term
debt, shares subject to mandatory redemption and stockholders' equity net
of accumulated other comprehensive income.
(7) Operating earnings available to common shareholders for the three months
ended September 30, 2004 includes a $9 million benefit ($0.01 per diluted
common share), from a revision of the estimate of income taxes for 2003.
(8) Operating earnings available to common shareholders for the three months
ended June 30, 2005 includes a $30 million benefit, net of income taxes
($0.04 per diluted common share), associated with the reduction of a
previously established liability for settlement death benefits related to
the Company's sales practices class action settlement recorded in 1999, an
$18 million benefit, net of income taxes ($0.02 per diluted common share),
associated with the reduction of a previously established liability
related to the Company's demutualization in 2000, and an $8 million
charge, net of income taxes ($0.01 per diluted common share), associated
with establishment of a liability associated with the Argentine pension
business.
(9) Operating earnings available to common shareholders for the three months
ended September 30, 2005 includes a $31 million benefit ($0.04 per diluted
common share) from a revision of the estimate of income taxes for 2004.
2
(METLIFE LOGO)
METLIFE, INC.
CONSOLIDATED BALANCE SHEETS
As of
------------------------------------------------------------------
September 30, December 31, March 31, June 30, September 30,
Unaudited (Dollars in millions) 2004 2004 2005 2005 2005
---------------------------------------------------------------------------------------------------------------------------------
ASSETS (1)
Fixed maturities, at fair value $176,075 $176,746 $182,638 $185,203 $232,419
Equity securities, at fair value 1,869 2,188 2,516 2,632 3,159
Mortgage and consumer loans 29,620 32,406 31,977 33,586 36,094
Policy loans 8,801 8,899 8,953 8,975 9,841
Real estate and real estate joint ventures 4,263 4,233 4,306 3,803 4,505
Other limited partnership interests 2,846 2,907 3,051 3,383 4,345
Short-term investments 2,450 2,662 2,550 2,169 4,481
Other invested assets 4,394 4,926 4,960 6,079 7,499
------------------------------------------------------------------
TOTAL INVESTMENTS 230,318 234,967 240,951 245,830 302,343
Cash and cash equivalents 3,590 4,048 3,920 13,601 6,950
Accrued investment income 2,491 2,338 2,433 2,450 3,299
Premiums and other receivables 7,088 6,695 7,514 7,821 14,391
Deferred policy acquisition costs 13,913 14,327 14,789 14,865 19,211
Assets of subsidiaries held-for-sale 245 410 32 33 0
Goodwill, net 628 633 612 614 4,564
Other assets 6,723 6,621 6,634 6,758 8,017
Separate account assets 81,181 86,769 85,786 89,459 124,044
------------------------------------------------------------------
TOTAL ASSETS $346,177 $356,808 $362,671 $381,431 $482,819
==================================================================
LIABILITIES AND EQUITY (1)
LIABILITIES
------------
Future policy benefits $98,193 $100,154 $100,624 $103,175 $121,591
Policyholder account balances 81,788 83,558 85,790 86,516 127,431
Other policyholder funds 7,031 7,251 7,523 7,650 8,521
Policyholder dividends payable 954 898 896 939 978
Policyholder dividend obligation 2,161 2,243 1,737 2,477 1,735
Short-term debt 1,566 1,445 1,120 1,979 1,303
Long-term debt 6,695 7,412 7,414 9,304 9,492
Junior subordinated debt securities underlying common
equity units 0 0 0 2,134 2,134
Shares subject to mandatory redemption 277 278 278 278 278
Liabilities of subsidiaries held-for-sale 103 268 27 28 0
Current income tax payable 501 421 31 635 97
Deferred income tax payable 2,468 2,473 2,414 3,201 1,456
Payables under securities loaned transactions 28,662 28,678 31,713 31,632 40,127
Other liabilities 11,622 12,136 14,280 13,853 14,875
Separate account liabilities 81,181 86,769 85,786 89,459 124,044
------------------------------------------------------------------
TOTAL LIABILITIES 323,202 333,984 339,633 353,260 454,062
------------------------------------------------------------------
EQUITY
-------
Preferred stock, at par value 0 0 0 1 1
Common stock, at par value 8 8 8 8 8
Additional paid-in capital 15,027 15,037 15,043 16,974 17,273
Retained earnings 6,440 6,608 7,595 9,841 10,582
Treasury stock (1,294) (1,785) (1,764) (1,733) (981)
Accumulated other comprehensive income 2,794 2,956 2,156 3,080 1,874
------------------------------------------------------------------
TOTAL STOCKHOLDERS' EQUITY 22,975 22,824 23,038 28,171 28,757
------------------------------------------------------------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $346,177 $356,808 $362,671 $381,431 $482,819
==================================================================
(1) Certain amounts in prior periods presented throughout the QFS have been
reclassified to conform with current period presentation.
3
(METLIFE LOGO)
METLIFE, INC.
CONSOLIDATED STATEMENTS OF OPERATING EARNINGS
AVAILABLE TO COMMON SHAREHOLDERS
For the Three Months Ended
------------------------------------------------------------------
September 30, December 31, March 31, June 30, September 30,
Unaudited (Dollars in millions) 2004 2004 2005 2005 2005
- ------------------------------------------------------------------------------------------------------------------------------------
REVENUES (1)
Premiums $5,679 $5,800 $5,966 $6,034 $6,514
Universal life and investment-type product policy fees 736 747 791 813 1,112
Investment income, net 3,107 3,347 3,279 3,508 4,112
Other revenues 292 310 299 301 348
------------------------------------------------------------------
9,814 10,204 10,335 10,656 12,086
------------------------------------------------------------------
EXPENSES (1)
Policyholder benefits and dividends 6,260 6,289 6,411 6,589 7,208
Interest credited to policyholder account balances 739 777 795 820 1,156
Interest credited to bank deposits 11 14 17 25 30
Interest expense 113 116 119 125 183
Other expenses 1,815 2,052 1,811 1,844 2,408
------------------------------------------------------------------
8,938 9,248 9,153 9,403 10,985
------------------------------------------------------------------
Operating earnings before provision for income taxes 876 956 1,182 1,253 1,101
Provision for income taxes 258 296 360 383 290
------------------------------------------------------------------
Operating earnings 618 660 822 870 811
Preferred stock dividend 0 0 0 0 31
------------------------------------------------------------------
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $618 (3) $660 $822 $870 (4) $780 (5)
==================================================================
NET INCOME RECONCILIATION (1)
- --------------------------------
Operating earnings available to common shareholders $618 $660 $822 $870 $780
Net investment gains (losses) 178 (214) (21) 2,225 (23)
Minority interest - net investment gains (losses) 2 5 (9) (2) (1)
Net investment gains (losses) tax benefit (provision) (62) 71 9 (784) 9
------------------------------------------------------------------
Net investment gains (losses), net of income taxes 118 (138) (21) 1,439 (15)
Adjustments related to policyholder benefits and dividends (74) (9) 70 (86) (55)
Adjustments related to other expenses 6 5 (15) (9) 7
Adjustments related to tax benefit (provision) 24 1 (19) 32 18
------------------------------------------------------------------
Adjustments related to net investment gains (losses), net of
income taxes (2) (44) (3) 36 (63) (30)
Cumulative effect of a change in accounting, net of income taxes 0 0 0 0 0
Discontinued operations, net of income taxes 3 (8) 150 (1) 7
------------------------------------------------------------------
Net income available to common shareholders 695 511 987 2,245 742
Preferred stock dividend 0 0 0 0 31
------------------------------------------------------------------
Net income $695 $511 $987 $2,245 $773
------------------------------------------------------------------
(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) Operating earnings available to common shareholders for the three months
ended September 30, 2004 includes a $9 million benefit from a revision of
the estimate of income taxes for 2003.
(4) Operating earnings available to common shareholders for the three months
ended June 30, 2005 includes a $30 million benefit, net of income taxes,
associated with the reduction of a previously established liability for
settlement death benefits related to the Company's sales practices class
action settlement recorded in 1999, an $18 million benefit, net of income
taxes, associated with the reduction of a previously established liability
related to the Company's demutualization in 2000, and an $8 million
charge, net of income taxes, associated with establishment of a liability
associated with the Argentine pension business.
(5) Operating earnings available to common shareholders for the three months
ended September 30, 2005 includes a $31 million benefit from a revision of
the estimate of income taxes for 2004.
4
(METLIFE LOGO)
METLIFE, INC.
CONSOLIDATING BALANCE SHEET
AT SEPTEMBER 30, 2005
Corporate, Other
Unaudited (Dollars in millions) Consolidated Institutional Individual Auto & Home International Reinsurance & Eliminations
- ------------------------------------------------------------------------------------------------------------------------------------
ASSETS (1)
Total investments $302,343 $124,214 $124,243 $3,780 $13,112 $11,090 $25,904
Cash and cash equivalents 6,950 (237) 1,206 (90) 176 72 5,823
Accrued investment income 3,299 1,025 1,526 60 152 97 439
Premiums and other receivables 14,391 4,260 3,397 1,092 744 1,049 3,849
Deferred policy acquisition
costs 19,211 1,237 13,266 190 1,723 2,796 (1)
Assets of subsidiaries
held-for-sale 0 0 0 0 0 0 0
Goodwill, net 4,564 889 2,747 157 289 95 387
Other assets 8,017 1,589 2,935 410 284 58 2,741
Separate account assets 124,044 44,737 78,255 0 1,039 13 0
--------------------------------------------------------------------------------------------------
Total Assets $482,819 $177,714 $227,575 $5,599 $17,519 $15,270 $39,142
==================================================================================================
LIABILITIES AND EQUITY (1)
LIABILITIES
- -------------
Future policy benefits $121,591 $48,916 $55,031 $3,598 $6,556 $4,372 $3,118
Policyholder account balances 127,431 53,628 59,324 0 5,203 5,365 3,911
Other policyholder funds 8,521 2,764 2,686 49 1,025 1,630 367
Policyholder dividends payable 978 0 978 0 0 0 0
Policyholder dividend
obligation 1,735 0 1,735 0 0 0 0
Short-term debt 1,303 0 78 0 0 0 1,225
Long-term debt 9,492 363 149 0 51 403 8,526
Junior subordinated debt
securities underlying common
equity units 2,134 0 0 0 0 0 2,134
Shares subject to mandatory
redemption 278 0 0 0 0 159 119
Liabilities of subsidiaries
held-for-sale 0 0 0 0 0 0 0
Current income tax payable 97 11 (315) (83) (66) (4) 554
Deferred income tax payable 1,456 (1,212) 1,641 38 138 813 38
Payables under securities
loaned transactions 40,127 15,996 15,845 100 0 0 8,186
Other liabilities 14,875 3,131 3,234 749 833 1,390 5,538
Separate account liabilities 124,044 44,737 78,255 0 1,039 13 0
--------------------------------------------------------------------------------------------------
Total Liabilities 454,062 168,334 218,641 4,451 14,779 14,141 33,716
EQUITY
- --------
Preferred stock, at par value 1 0 0 0 0 0 1
Common stock, at par value 8 0 0 0 0 0 8
Allocated equity (2) 27,855 8,733 8,497 998 2,349 901 6,377
Treasury stock (981) 0 0 0 0 0 (981)
Accumulated other comprehensive
income 1,874 647 437 150 391 228 21
--------------------------------------------------------------------------------------------------
Total Stockholders' Equity 28,757 9,380 8,934 1,148 2,740 1,129 5,426
--------------------------------------------------------------------------------------------------
Total Liabilities and
Stockholders' Equity $482,819 $177,714 $227,575 $5,599 $17,519 $15,270 $39,142
==================================================================================================
(1) Certain amounts in prior periods presented throughout the QFS have been
reclassified to conform with current period presentation.
(2) Allocated equity includes additional paid-in capital and retained
earnings.
5
(METLIFE LOGO)
METLIFE, INC.
CONSOLIDATING STATEMENT OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2005
Corporate, Other
Unaudited (Dollars in millions) Consolidated Institutional Individual Auto & Home International Reinsurance & Eliminations
- ------------------------------------------------------------------------------------------------------------------------------------
REVENUES
Premiums $6,514 $3,066 $1,140 $716 $614 $976 $2
Universal life and
investment-type product
policy fees 1,112 197 746 0 170 (2) 1
Investment income, net 4,112 1,707 1,751 46 238 158 212
Other revenues 348 163 150 8 9 13 5
--------------------------------------------------------------------------------------------------
12,086 5,133 3,787 770 1,031 1,145 220
--------------------------------------------------------------------------------------------------
EXPENSES
Policyholder benefits and
dividends 7,208 3,455 1,770 615 578 779 11
Interest credited to
policyholder account balances 1,156 508 500 0 84 64 0
Capitalization of deferred
policy acquisition costs (935) (74) (384) (123) (137) (217) 0
Amortization of deferred policy
acquisition costs 656 51 310 116 68 111 0
Other expenses 2,900 610 1,096 216 359 366 253
--------------------------------------------------------------------------------------------------
10,985 4,550 3,292 824 952 1,103 264
--------------------------------------------------------------------------------------------------
Operating earnings before
provision (benefit) for
income taxes 1,101 583 495 (54) 79 42 (44)
Provision (benefit) for income
taxes 290 197 164 (28) 13 16 (72)
--------------------------------------------------------------------------------------------------
Operating earnings 811 386 331 (26) 66 26 28
Preferred stock dividend 31 0 0 0 0 0 31
--------------------------------------------------------------------------------------------------
OPERATING EARNINGS AVAILABLE TO
COMMON SHAREHOLDERS $780 (2) $386 $331 ($26) $66 $26 ($3)
==================================================================================================
NET INCOME RECONCILIATION
- ---------------------------
Operating earnings available to
common shareholders $780 $386 $331 ($26) $66 $26 ($3)
Net investment gains
(losses) (23) (97) (6) (5) 5 7 73
Minority interest - net
investment gains (losses) (1) 0 0 0 0 (1) 0
Net investment gains
(losses) tax benefit
(provision) 9 36 0 2 (2) (2) (25)
--------------------------------------------------------------------------------------------------
Net investment gains (losses),
net of income taxes (15) (61) (6) (3) 3 4 48
Adjustments related to
policyholder benefits and
dividends (55) 28 (29) 0 (54) 0 0
Adjustments related to
other expenses 7 0 11 0 0 (4) 0
Adjustments related to tax
benefit (provision) 18 (10) 7 0 19 2 0
--------------------------------------------------------------------------------------------------
Adjustments related to net
investment gains (losses),
net of income taxes (1) (30) 18 (11) 0 (35) (2) 0
Cumulative effect of a change
in accounting, net of income
taxes 0 0 0 0 0 0 0
Discontinued operations, net of
income taxes 7 0 0 0 7 0 0
--------------------------------------------------------------------------------------------------
Net income available to common
shareholders 742 343 314 (29) 41 28 45
Preferred stock dividend 31 0 0 0 0 0 31
--------------------------------------------------------------------------------------------------
Net income $773 $343 $314 ($29) $41 $28 $76
==================================================================================================
(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) Operating earnings available to common shareholders for the three months
ended September 30, 2005 includes a $31 million benefit from a revision of
the estimate of income taxes for 2004.
6
(METLIFE LOGO)
METLIFE, INC.
CONSOLIDATING STATEMENT OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2004
Corporate, Other
Unaudited (Dollars in millions) Consolidated Institutional Individual Auto & Home International Reinsurance & Eliminations
- ------------------------------------------------------------------------------------------------------------------------------------
REVENUES (1)
Premiums $5,679 $2,662 $1,032 $740 $437 $819 ($11)
Universal life and
investment-type product
policy fees 736 183 461 0 90 0 2
Investment income, net 3,107 1,145 1,507 40 151 134 130
Other revenues 292 159 102 8 2 13 8
--------------------------------------------------------------------------------------------------
9,814 4,149 3,102 788 680 966 129
--------------------------------------------------------------------------------------------------
EXPENSES (1)
Policyholder benefits and
dividends 6,260 2,934 1,687 554 424 659 2
Interest credited to
policyholder account balances 739 255 399 0 37 55 (7)
Capitalization of deferred
policy acquisition costs (752) (71) (267) (117) (103) (194) 0
Amortization of deferred policy
acquisition costs 479 29 206 110 32 102 0
Other expenses 2,212 551 777 200 219 320 145
--------------------------------------------------------------------------------------------------
8,938 3,698 2,802 747 609 942 140
--------------------------------------------------------------------------------------------------
Operating earnings before
provision (benefit) for
income taxes 876 451 300 41 71 24 (11)
Provision (benefit) for income
taxes 258 153 100 7 24 9 (35)
--------------------------------------------------------------------------------------------------
Operating earnings 618 298 200 34 47 15 24
Preferred stock dividend 0 0 0 0 0 0 0
--------------------------------------------------------------------------------------------------
OPERATING EARNINGS AVAILABLE TO
COMMON SHAREHOLDERS $618 (3) $298 $200 $34 $47 $15 $24
==================================================================================================
NET INCOME RECONCILIATION (1)
- ------------------------------
Operating earnings available to
common shareholders $618 $298 $200 $34 $47 $15 $24
Net investment gains
(losses) 178 88 123 (1) 3 (19) (16)
Minority interest - net
investment gains (losses) 2 0 0 0 0 2 0
Net investment gains
(losses) tax benefit
(provision) (62) (27) (43) 0 (1) 6 3
--------------------------------------------------------------------------------------------------
Net investment gains (losses),
net of income taxes 118 61 80 (1) 2 (11) (13)
Adjustments related to
policyholder benefits and
dividends (74) (35) (25) 0 (14) 0 0
Adjustments related to
other expenses 6 0 (8) 0 0 15 (1)
Adjustments related to tax
benefit (provision) 24 11 12 0 5 (5) 1
--------------------------------------------------------------------------------------------------
Adjustments related to net
investment gains (losses),
net of income taxes (2) (44) (24) (21) 0 (9) 10 0
Cumulative effect of a change
in accounting, net of income
taxes 0 0 0 0 0 0 0
Discontinued operations, net of
income taxes 3 0 0 0 (2) 0 5
--------------------------------------------------------------------------------------------------
Net income available to common
shareholders 695 335 259 33 38 14 16
Preferred stock dividend 0 0 0 0 0 0 0
--------------------------------------------------------------------------------------------------
Net income $695 $335 $259 $33 $38 $14 $16
==================================================================================================
(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) Operating earnings available to common shareholders for the three months
ended September 30, 2004 includes a $9 million benefit from a revision of
the estimate of income taxes for 2003.
7
(METLIFE LOGO)
METLIFE, INC.
CONSOLIDATING STATEMENT OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2005
Corporate, Other
Unaudited (Dollars in millions) Consolidated Institutional Individual Auto & Home International Reinsurance & Eliminations
- ------------------------------------------------------------------------------------------------------------------------------------
REVENUES (1)
Premiums $18,514 $8,744 $3,233 $2,182 $1,550 $2,807 ($2)
Universal life and
investment-type product
policy fees 2,716 575 1,726 0 414 0 1
Investment income, net 10,899 4,319 4,860 135 582 445 558
Other revenues 948 487 367 25 11 45 13
--------------------------------------------------------------------------------------------------
33,077 14,125 10,186 2,342 2,557 3,297 570
--------------------------------------------------------------------------------------------------
EXPENSES (1)
Policyholder benefits and
dividends 20,208 9,760 5,139 1,541 1,456 2,346 (34)
Interest credited to
policyholder account balances 2,771 1,135 1,287 0 186 163 0
Capitalization of deferred
policy acquisition costs (2,560) (206) (917) (345) (400) (692) 0
Amortization of deferred policy
acquisition costs 1,740 125 661 342 180 428 4
Other expenses 7,382 1,715 2,604 615 877 969 602
--------------------------------------------------------------------------------------------------
29,541 12,529 8,774 2,153 2,299 3,214 572
--------------------------------------------------------------------------------------------------
Operating earnings before
provision (benefit) for
income taxes 3,536 1,596 1,412 189 258 83 (2)
Provision (benefit) for income
taxes 1,033 540 469 38 73 28 (115)
--------------------------------------------------------------------------------------------------
Operating earnings 2,503 1,056 943 151 185 55 113
Preferred stock dividend 31 0 0 0 0 0 31
--------------------------------------------------------------------------------------------------
OPERATING EARNINGS AVAILABLE TO
COMMON SHAREHOLDERS $2,472 (3) $1,056 $943 $151 $185 $55 $82
==================================================================================================
NET INCOME RECONCILIATION (1)
- ------------------------------
Operating earnings available to
common shareholders $2,472 $1,056 $943 $151 $185 $55 $82
Net investment gains
(losses) 2,181 323 554 (9) 12 28 1,273
Minority interest - net
investment gains (losses) (12) 0 (4) 0 0 (8) 0
Net investment gains
(losses) tax benefit
(provision) (766) (114) (197) 3 (4) (4) (450)
--------------------------------------------------------------------------------------------------
Net investment gains (losses),
net of income taxes 1,403 209 353 (6) 8 16 823
Adjustments related to
policyholder benefits and
dividends (71) 26 (41) 0 (56) 0 0
Adjustments related to
other expenses (17) 0 (8) 0 0 (9) 0
Adjustments related to tax
benefit (provision) 31 (9) 18 0 20 2 0
--------------------------------------------------------------------------------------------------
Adjustments related to net
investment gains (losses),
net of income taxes (2) (57) 17 (31) 0 (36) (7) 0
Cumulative effect of a change
in accounting, net of income
taxes 0 0 0 0 0 0 0
Discontinued operations, net of
income taxes 156 0 0 0 5 0 151
--------------------------------------------------------------------------------------------------
Net income available to common
shareholders 3,974 1,282 1,265 145 162 64 1,056
Preferred stock dividend 31 0 0 0 0 0 31
--------------------------------------------------------------------------------------------------
Net income $4,005 $1,282 $1,265 $145 $162 $64 $1,087
==================================================================================================
(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) Operating earnings available to common shareholders for the nine months
ended September 30, 2005 includes a $30 million benefit, net of income
taxes, associated with the reduction of a previously established liability
for settlement death benefits related to the Company's sales practices
class action settlement recorded in 1999, an $18 million benefit, net of
income taxes, associated with the reduction of a previously established
liability related to the Company's demutualization in 2000, an $8 million
charge, net of income taxes, associated with establishment of a liability
associated with the Argentine pension business and a $31 million benefit
from a revision of the estimate of income taxes for 2004.
8
(METLIFE LOGO)
METLIFE, INC.
CONSOLIDATING STATEMENT OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2004
Corporate, Other
Unaudited (Dollars in millions) Consolidated Institutional Individual Auto & Home International Reinsurance & Eliminations
- ------------------------------------------------------------------------------------------------------------------------------------
REVENUES (1)
Premiums $16,400 $7,519 $3,033 $2,211 $1,229 $2,431 ($23)
Universal life and
investment-type product
policy fees 2,120 534 1,325 0 259 0 2
Investment income, net 9,263 3,433 4,530 130 410 381 379
Other revenues 888 489 314 23 14 40 8
--------------------------------------------------------------------------------------------------
28,671 11,975 9,202 2,364 1,912 2,852 366
--------------------------------------------------------------------------------------------------
EXPENSES (1)
Policyholder benefits and
dividends 18,104 8,381 4,992 1,585 1,201 1,943 2
Interest credited to
policyholder account balances 2,220 743 1,220 0 106 151 0
Capitalization of deferred
policy acquisition costs (2,368) (275) (856) (341) (267) (629) 0
Amortization of deferred policy
acquisition costs 1,399 93 537 336 100 331 2
Other expenses 6,592 1,609 2,414 589 579 969 432
--------------------------------------------------------------------------------------------------
25,947 10,551 8,307 2,169 1,719 2,765 436
--------------------------------------------------------------------------------------------------
Operating earnings before
provision (benefit) for
income taxes 2,724 1,424 895 195 193 87 (70)
Provision (benefit) for income
taxes 742 484 299 44 58 31 (174)
--------------------------------------------------------------------------------------------------
Operating earnings 1,982 940 596 151 135 56 104
Preferred stock dividend 0 0 0 0 0 0 0
--------------------------------------------------------------------------------------------------
OPERATING EARNINGS AVAILABLE TO
COMMON SHAREHOLDERS $1,982 (3) $940 $596 $151 $135 $56 $104
==================================================================================================
NET INCOME RECONCILIATION (1)
- ------------------------------
Operating earnings available to
common shareholders $1,982 $940 $596 $151 $135 $56 $104
Net investment gains
(losses) 458 208 123 (6) 27 36 70
Minority interest - net
investment gains (losses) (14) 0 0 0 0 (14) 0
Net investment gains
(losses) tax benefit
(provision) (148) (74) (31) 2 (8) (7) (30)
--------------------------------------------------------------------------------------------------
Net investment gains (losses),
net of income taxes 296 134 92 (4) 19 15 40
Adjustments related to
policyholder benefits and
dividends 73 26 9 0 38 0 0
Adjustments related to
other expenses (16) 0 (13) 0 0 (2) (1)
Adjustments related to tax
benefit (provision) (20) (10) 1 0 (13) 1 1
--------------------------------------------------------------------------------------------------
Adjustments related to net
investment gains (losses),
net of income taxes (2) 37 16 (3) 0 25 (1) 0
Cumulative effect of a change
in accounting, net of income
taxes (86) (60) 0 0 (30) 0 4
Discontinued operations, net of
income taxes 18 0 0 0 (5) 0 23
--------------------------------------------------------------------------------------------------
Net income available to common
shareholders 2,247 1,030 685 147 144 70 171
Preferred stock dividend 0 0 0 0 0 0 0
--------------------------------------------------------------------------------------------------
Net income $2,247 $1,030 $685 $147 $144 $70 $171
==================================================================================================
(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) Operating earnings available to common shareholders for the nine months
ended September 30, 2004 includes a $9 million benefit from a revision of
the estimate of income taxes for 2003.
9
(METLIFE LOGO)
SUMMARY OF SEGMENT OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS (1) (2)
For the Three Months Ended
-------------------------------------------------------------------------------
September 30, December 31, March 31, June 30, September 30,
Unaudited (Dollars in millions) 2004 2004 2005 2005 2005
- --------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL OPERATIONS $298 $309 $324 $346 $386
INDIVIDUAL OPERATIONS 200 207 321 291 331
AUTO & HOME OPERATIONS 34 63 76 101 (26)
INTERNATIONAL OPERATIONS 47 30 68 51 66
REINSURANCE OPERATIONS 15 21 25 4 26
CORPORATE, OTHER & ELIMINATIONS 24 30 8 77 (3)
-------------------------------------------------------------------------------
CONSOLIDATED $618 (3) $660 $822 $870(4) $780 (5)
===============================================================================
(1) Certain amounts in prior periods presented throughout the QFS have been
reclassified to conform with current period presentation.
(2) A reconciliation of operating earnings available to common shareholders to
net income for each segment appears in this QFS as follows: (i)
Institutional Operations, page 11; (ii) Individual Operations, page 19;
(iii) Auto & Home Operations, page 29; (iv) International Operations, page
34; (v) Reinsurance Operations, page 35; and Corporate, Other and
Eliminations, page 37. A reconciliation of operating earnings available to
common shareholders to net income for MetLife, Inc., Consolidated, appears
on Page 4.
(3) Operating earnings available to common shareholders for the three months
ended September 30, 2004 includes a $9 million benefit from a revision of
the estimate of income taxes for 2003.
(4) Operating earnings available to common shareholders for the three months
ended June 30, 2005 includes a $30 million benefit, net of income taxes,
associated with the reduction of a previously established liability for
settlement death benefits related to the Company's sales practices class
action settlement recorded in 1999, an $18 million benefit, net of income
taxes, associated with the reduction of a previously established liability
related to the Company's demutualization in 2000, and an $8 million
charge, net of income taxes, associated with establishment of a liability
associated with the Argentine pension business.
(5) Operating earnings available to common shareholders for the three months
ended September 30, 2005 includes a $31 million benefit from a revision of
the estimate of income taxes for 2004.
10
(METLIFE LOGO)
INSTITUTIONAL OPERATIONS
STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS - TOTAL
UNAUDITED (DOLLARS IN MILLIONS)
For the Three Months Ended
-----------------------------------------------------------------------
September 30, December 31, March 31, June 30, September 30,
Institutional Operations 2004 2004 2005 2005 2005
- ------------------------------------------------------------------------------------------------------------------------------------
REVENUES (1)
Premiums $2,662 $2,518 $2,844 $2,834 $3,066
Universal life and investment-type product policy fees 183 177 193 185 197
Investment income, net 1,145 1,211 1,248 1,364 1,707
Other revenues 159 165 161 163 163
-----------------------------------------------------------------------
4,149 4,071 4,446 4,546 5,133
-----------------------------------------------------------------------
EXPENSES (1)
Policyholder benefits and dividends 2,934 2,785 3,146 3,159 3,455
Interest credited to policyholder account balances 255 273 301 326 508
Other expenses 509 545 510 537 587
-----------------------------------------------------------------------
3,698 3,603 3,957 4,022 4,550
-----------------------------------------------------------------------
Operating earnings before provision for income taxes 451 468 489 524 583
Provision for income taxes 153 159 165 178 197
-----------------------------------------------------------------------
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $298 $309 $324 $346 $386
=======================================================================
NET INCOME RECONCILIATION (1)
- ----------------------------------------------------
Operating earnings available to common shareholders $298 $309 $324 $346 $386
Net investment gains (losses) 88 (77) 5 415 (97)
Minority interest - net investment gains (losses) 0 0 0 0 0
Net investment gains (losses) tax benefit
(provision) (27) 26 (3) (147) 36
-----------------------------------------------------------------------
Net investment gains (losses), net of income taxes 61 (51) 2 268 (61)
Adjustments related to policyholder benefits and
dividends (35) (33) 35 (37) 28
Adjustments related to other expenses 0 0 0 0 0
Adjustments related to tax benefit (provision) 11 12 (12) 13 (10)
-----------------------------------------------------------------------
Adjustments related to net investment gains (losses), net
of income taxes (2) (24) (21) 23 (24) 18
Cumulative effect of a change in accounting, net of
income taxes 0 0 0 0 0
Discontinued operations, net of income taxes 0 0 0 0 0
-----------------------------------------------------------------------
Net income available to common shareholders 335 237 349 590 343
Preferred stock dividend 0 0 0 0 0
-----------------------------------------------------------------------
Net income $335 $237 $349 $590 $343
-----------------------------------------------------------------------
For the Year-to-Date Period Ended
---------------------------------
September 30, September 30,
Institutional Operations 2004 2005
- ----------------------------------------------------------------------------------------------
REVENUES (1)
Premiums $7,519 $8,744
Universal life and investment-type product policy fees 534 575
Investment income, net 3,433 4,319
Other revenues 489 487
---------------------------------
11,975 14,125
---------------------------------
EXPENSES (1)
Policyholder benefits and dividends 8,381 9,760
Interest credited to policyholder account balances 743 1,135
Other expenses 1,427 1,634
---------------------------------
10,551 12,529
---------------------------------
Operating earnings before provision for income taxes 1,424 1,596
Provision for income taxes 484 540
---------------------------------
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $ 940 $ 1,056
=================================
NET INCOME RECONCILIATION (1)
- ----------------------------------------------------
Operating earnings available to common shareholders $940 $1,056
Net investment gains (losses) 208 323
Minority interest - net investment gains (losses) 0 0
Net investment gains (losses) tax benefit
(provision) (74) (114)
---------------------------------
Net investment gains (losses), net of income taxes 134 209
Adjustments related to policyholder benefits and
dividends 26 26
Adjustments related to other expenses 0 0
Adjustments related to tax benefit (provision) (10) (9)
---------------------------------
Adjustments related to net investment gains (losses), net
of income taxes (2) 16 17
Cumulative effect of a change in accounting, net of
income taxes (60) 0
Discontinued operations, net of income taxes 0 0
---------------------------------
Net income available to common shareholders 1,030 1,282
Preferred stock dividend 0 0
---------------------------------
Net income $1,030 $1,282
---------------------------------
(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 and amounts
allocable to certain participating contracts.
11
(METLIFE LOGO)
INSTITUTIONAL OPERATIONS
STATEMENTS OF OPERATING EARNINGS
AVAILABLE TO COMMON SHAREHOLDERS - PRODUCT LEVEL
UNAUDITED (DOLLARS IN MILLIONS)
For the Three Months Ended
-----------------------------------------------------------------------
September 30, December 31, March 31, June 30, September 30,
Group Life 2004 2004 2005 2005 2005
- ------------------------------------------------------------------------------------------------------------------------------------
REVENUES (1)
Premiums $1,265 $1,283 $1,364 $1,435 $1,485
Universal life and investment-type product policy fees 177 171 187 180 192
Investment income, net 252 255 271 281 296
Other revenues 11 14 13 14 11
--------------------------------------------------------------------
1,705 1,723 1,835 1,910 1,984
--------------------------------------------------------------------
EXPENSES (1)
Policyholder benefits and dividends 1,310 1,324 1,444 1,519 1,542
Interest credited to policyholder account balances 100 101 99 105 119
Other expenses 143 154 146 159 168
--------------------------------------------------------------------
1,553 1,579 1,689 1,783 1,829
--------------------------------------------------------------------
Operating earnings before provision for income taxes 152 144 146 127 155
Provision for income taxes 52 49 49 44 53
--------------------------------------------------------------------
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $100 $95 $97 $83 $102
====================================================================
Net investment gains (losses), net of income taxes 3 (43) (9) (1) 7
Adjustments related to net investment gains (losses), net
of income taxes 0 0 0 0 4
Cumulative effect of a change in accounting, net of
income taxes 0 0 0 0 0
Discontinued operations, net of income taxes 0 0 0 0 0
--------------------------------------------------------------------
Net income available to common shareholders 103 52 88 82 113
Preferred stock dividend 0 0 0 0 0
--------------------------------------------------------------------
Net income $103 $52 $88 $82 $113
--------------------------------------------------------------------
For the Year-to-Date Period Ended
---------------------------------
September 30, September 30,
Group Life 2004 2005
- ----------------------------------------------------------------------------------------------
REVENUES (1)
Premiums $3,918 $4,284
Universal life and investment-type product policy fees 514 559
Investment income, net 785 848
Other revenues 43 38
---------------------------------
5,260 5,729
---------------------------------
EXPENSES (1)
Policyholder benefits and dividends 4,113 4,505
Interest credited to policyholder account balances 301 323
Other expenses 386 473
---------------------------------
4,800 5,301
---------------------------------
Operating earnings before provision for income taxes 460 428
Provision for income taxes 157 146
---------------------------------
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $303 $282
=================================
Net investment gains (losses), net of income taxes 18 (3)
Adjustments related to net investment gains (losses), net
of income taxes 0 4
Cumulative effect of a change in accounting, net of
income taxes 0 0
Discontinued operations, net of income taxes 0 0
---------------------------------
Net income available to common shareholders 321 283
Preferred stock dividend 0 0
---------------------------------
Net income $321 $283
---------------------------------
(1) Certain amounts in prior periods presented throughout the QFS have been
reclassified to conform with current period presentation.
12
(METLIFE LOGO)
INSTITUTIONAL OPERATIONS
STATEMENTS OF OPERATING EARNINGS
AVAILABLE TO COMMON SHAREHOLDERS - PRODUCT LEVEL
UNAUDITED (DOLLARS IN MILLIONS)
For the Three Months Ended
-----------------------------------------------------------------------
September 30, December 31, March 31, June 30, September 30,
Retirement & Savings 2004 2004 2005 2005 2005
- ------------------------------------------------------------------------------------------------------------------------------------
REVENUES (1)
Premiums $505 $300 $496 $384 $557
Universal life and investment-type product policy fees 6 6 6 5 5
Investment income, net 778 831 846 926 1,255
Other revenues 58 56 59 59 63
-----------------------------------------------------------------------
1,347 1,193 1,407 1,374 1,880
-----------------------------------------------------------------------
EXPENSES (1)
Policyholder benefits and dividends 871 675 864 751 1,041
Interest credited to policyholder account balances 155 172 202 221 389
Other expenses 98 110 93 87 126
-----------------------------------------------------------------------
1,124 957 1,159 1,059 1,556
-----------------------------------------------------------------------
Operating earnings before provision for income taxes 223 236 248 315 324
Provision for income taxes 74 79 83 106 108
-----------------------------------------------------------------------
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $149 $157 $165 $209 $216
=======================================================================
Net investment gains (losses), net of income taxes 39 (1) 12 231 (45)
Adjustments related to net investment gains (losses), net
of income taxes (3) (15) 11 (10) 7
Cumulative effect of a change in accounting, net of
income taxes 0 0 0 0 0
Discontinued operations, net of income taxes 0 0 0 0 0
-----------------------------------------------------------------------
Net income available to common shareholders 185 141 188 430 178
Preferred stock dividend 0 0 0 0 0
-----------------------------------------------------------------------
Net income $185 $141 $188 $430 $178
-----------------------------------------------------------------------
For the Year-to-Date Period Ended
---------------------------------
September 30, September 30,
Retirement & Savings 2004 2005
- ----------------------------------------------------------------------------------------------
REVENUES (1)
Premiums $997 $1,437
Universal life and investment-type product policy fees 20 16
Investment income, net 2,300 3,027
Other revenues 175 181
---------------------------------
3,492 4,661
---------------------------------
EXPENSES (1)
Policyholder benefits and dividends 2,064 2,656
Interest credited to policyholder account balances 442 812
Other expenses 284 306
---------------------------------
2,790 3,774
---------------------------------
Operating earnings before provision for income taxes 702 887
Provision for income taxes 235 297
---------------------------------
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $467 $590
=================================
Net investment gains (losses), net of income taxes 99 198
Adjustments related to net investment gains (losses), net
of income taxes 17 8
Cumulative effect of a change in accounting, net of
income taxes (40) 0
Discontinued operations, net of income taxes 0 0
---------------------------------
Net income available to common shareholders 543 796
Preferred stock dividend 0 0
---------------------------------
Net income $543 $796
---------------------------------
(1) Certain amounts in prior periods presented throughout the QFS have been
reclassified to conform with current period presentation.
13
(METLIFE LOGO)
INSTITUTIONAL OPERATIONS
STATEMENTS OF OPERATING EARNINGS
AVAILABLE TO COMMON SHAREHOLDERS - PRODUCT LEVEL
UNAUDITED (DOLLARS IN MILLIONS)
For the Three Months Ended
-----------------------------------------------------------------------
September 30, December 31, March 31, June 30, September 30,
Non-Medical Health & Other 2004 2004 2005 2005 2005
- ------------------------------------------------------------------------------------------------------------------------------------
REVENUES (1)
Premiums $892 $935 $984 $1,015 $1,024
Universal life and investment-type product policy fees 0 0 0 0 0
Investment income, net 115 125 131 157 156
Other revenues 90 95 89 90 89
-----------------------------------------------------------------------
1,097 1,155 1,204 1,262 1,269
-----------------------------------------------------------------------
EXPENSES (1)
Policyholder benefits and dividends 753 786 838 889 872
Interest credited to policyholder account balances 0 0 0 0 0
Other expenses 268 281 271 291 293
-----------------------------------------------------------------------
1,021 1,067 1,109 1,180 1,165
-----------------------------------------------------------------------
Operating earnings before provision for income taxes 76 88 95 82 104
Provision for income taxes 27 31 33 28 36
-----------------------------------------------------------------------
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $49 $57 $62 $54 $68
=======================================================================
Net investment gains (losses), net of income taxes 19 (7) (1) 38 (23)
Adjustments related to net investment gains (losses), net
of income taxes (21) (6) 12 (14) 7
Cumulative effect of a change in accounting, net of
income taxes 0 0 0 0 0
Discontinued operations, net of income taxes 0 0 0 0 0
-----------------------------------------------------------------------
Net income available to common shareholders 47 44 73 78 52
Preferred stock dividend 0 0 0 0 0
-----------------------------------------------------------------------
Net income $47 $44 $73 $78 $52
-----------------------------------------------------------------------
For the Year-to-Date Period Ended
---------------------------------
September 30, September 30,
Non-Medical Health & Other 2004 2005
- ----------------------------------------------------------------------------------------------
REVENUES (1)
Premiums $2,604 $3,023
Universal life and investment-type product policy fees 0 0
Investment income, net 348 444
Other revenues 271 268
---------------------------------
3,223 3,735
---------------------------------
EXPENSES (1)
Policyholder benefits and dividends 2,204 2,599
Interest credited to policyholder account balances 0 0
Other expenses 757 855
---------------------------------
2,961 3,454
---------------------------------
Operating earnings before provision for income taxes 262 281
Provision for income taxes 92 97
---------------------------------
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $170 $184
=================================
Net investment gains (losses), net of income taxes 17 14
Adjustments related to net investment gains (losses), net
of income taxes (1) 5
Cumulative effect of a change in accounting, net of
income taxes (20) 0
Discontinued operations, net of income taxes 0 0
---------------------------------
Net income available to common shareholders 166 203
Preferred stock dividend 0 0
---------------------------------
Net income $166 $203
---------------------------------
(1) Certain amounts in prior periods presented throughout the QFS have been
reclassified to conform with current period presentation.
14
(METLIFE LOGO)
INSTITUTIONAL OPERATIONS
PREMIUMS, FEES AND OTHER REVENUES BY PRODUCT
AND ADDITIONAL STATISTICAL INFORMATION
For the Three Months Ended
-----------------------------------------------------------------------
September 30, December 31, March 31, June 30, September 30,
Unaudited (Dollars in millions) 2004 2004 2005 2005 2005
- ------------------------------------------------------------------------------------------------------------------------------------
PREMIUMS, FEES AND OTHER REVENUES BY PRODUCT (1) (2)
Group Life $1,453 $1,468 $1,564 $1,629 $1,688
Retirement & Savings 569 362 561 448 625
Non-Medical Health & Other 982 1,030 1,073 1,105 1,113
-----------------------------------------------------------------------
Total Premiums, Fees and Other Revenues $3,004 $2,860 $3,198 $3,182 $3,426
=======================================================================
Group Disability (Included in Non-Medical Health & Other) $285 $312 $320 $331 $325
ADDITIONAL STATISTICAL INFORMATION
INCURRED LOSS RATIO (MORTALITY EXPERIENCE):
Term Life (1) 89.8% 89.8% 94.2% 94.7% 91.5%
INCURRED LOSS RATIO (MORBIDITY EXPERIENCE):
Group Disability (1) 91.4% 95.7% 89.5% 83.5% 95.0%
NUMBER OF SALES REPRESENTATIVES 779 762 783 778 787
(1) Certain amounts in prior periods presented throughout the QFS have been
reclassified to conform with current period presentation.
(2) With respect to premiums, fees and other revenues, certain experience
rating refunds and changes to premium stabilization reserves are included
in premiums and fees. The following table excludes these amounts:
Group Life $1,499 $1,554 $1,648 $1,633 $1,699
Retirement & Savings 569 362 561 448 625
Non-Medical Health & Other 986 1,024 1,080 1,104 1,116
-----------------------------------------------------------------------
Total Premiums, Fees and Other Revenues $3,054 $2,940 $3,289 $3,185 $3,440
-----------------------------------------------------------------------
15
(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 (1)
- ------------------------------------------------------------
For the Three Months Ended
----------------------------------------------------------------------------------
September 30, December 31, March 31, June 30, September 30,
Group Life 2004 2004 2005 2005 2005
- ------------------------------------------------------------------------------------------------------------------
Balance, beginning of period $15,010 $15,134 $15,200 $15,354 $15,449
Premiums and deposits 2,539 2,488 2,744 2,921 2,921
Interest on reserves 133 137 137 144 159
Surrenders and withdrawals (1,081) (1,115) (1,159) (1,324) (1,263)
Benefits and reserves (1,312) (1,313) (1,444) (1,519) (1,295)
Other (155) (131) (124) (127) 319 (2)
----------------------------------------------------------------------------------
Balance, end of period $15,134 $15,200 $15,354 $15,449 $16,290
==================================================================================
For the Three Months Ended
----------------------------------------------------------------------------------
September 30, December 31, March 31, June 30, September 30,
Retirement & Savings 2004 2004 2005 2005 2005
- ------------------------------------------------------------------------------------------------------------------
Balance, beginning of period $44,134 $46,332 $47,758 $49,233 $51,020
Premiums and deposits 2,553 2,729 2,750 2,122 2,751
Interest on reserves 583 610 630 650 933
Surrenders and withdrawals (1,400) (1,651) (876) (1,786) (2,604)
Benefits and reserves (520) (512) (501) (508) (671)
Other 982 250 (528) 1,309 26,504 (2)
----------------------------------------------------------------------------------
Balance, end of period $46,332 $47,758 $49,233 $51,020 $77,933
==================================================================================
For the Three Months Ended
----------------------------------------------------------------------------------
September 30, December 31, March 31, June 30, September 30,
Non-Medical Health & Other 2004 2004 2005 2005 2005
- ------------------------------------------------------------------------------------------------------------------
Balance, beginning of period $7,151 $7,344 $7,563 $7,721 $7,968
Premiums and deposits 859 912 952 978 996
Interest on reserves 61 62 65 66 74
Surrenders and withdrawals 27 18 19 23 21
Benefits and reserves (768) (809) (850) (880) (917)
Other 14 36 (28) 60 179 (2)
----------------------------------------------------------------------------------
Balance, end of period $7,344 $7,563 $7,721 $7,968 $8,321
==================================================================================
SEPARATE ACCOUNT LIABILITIES (1)
- --------------------------------
For the Three Months Ended
----------------------------------------------------------------------------------
September 30, December 31, March 31, June 30, September 30,
Group Life 2004 2004 2005 2005 2005
- ------------------------------------------------------------------------------------------------------------------
Balance, beginning of period $8,066 $8,337 $8,192 $7,976 $8,050
Premiums and deposits 182 133 114 120 232
Investment performance 166 63 168 40 219
Surrenders and withdrawals (77) (341) (498) (86) (108)
Policy charges 0 0 0 0 (7)
Other 0 0 0 0 1,545 (2)
----------------------------------------------------------------------------------
Balance, end of period $8,337 $8,192 $7,976 $8,050 $9,931
==================================================================================
For the Three Months Ended
----------------------------------------------------------------------------------
September 30, December 31, March 31, June 30, September 30,
Retirement & Savings 2004 2004 2005 2005 2005
- ------------------------------------------------------------------------------------------------------------------
Balance, beginning of period $30,670 $31,173 $32,055 $30,654 $32,105
Premiums and deposits 987 915 1,587 965 1,108
Investment performance 688 1,262 (1,141) 1,890 538
Surrenders and withdrawals (1,122) (1,287) (1,827) (1,351) (2,029)
Policy charges (25) (22) (25) (26) (23)
Other (25) 14 5 (27) 2,809 (2)
----------------------------------------------------------------------------------
Balance, end of period $31,173 $32,055 $30,654 $32,105 $34,508
==================================================================================
For the Three Months Ended
----------------------------------------------------------------------------------
September 30, December 31, March 31, June 30, September 30,
Non-Medical Health & Other 2004 2004 2005 2005 2005
- ------------------------------------------------------------------------------------------------------------------
Balance, beginning of period $160 $200 $214 $243 $276
Premiums and deposits 89 76 88 85 81
Investment performance 62 (45) (108) 191 66
Surrenders and withdrawals (27) (18) (19) (23) (21)
Policy charges (9) (28) (17) (18) (18)
Other (75) 29 85 (202) (86)
----------------------------------------------------------------------------------
Balance, end of period $200 $214 $243 $276 $298
==================================================================================
(1) Certain amounts in prior periods presented throughout the QFS have been
reclassified to conform with current period presentation.
(2) Includes the beginning balances of Travelers of $771, $27,661 and $347 for
Group Life, Retirement & Savings and Non-Medical Health & Other,
respectively, in Future Policy Benefits and Policyholder Account Balances
and $1,545 and $2,428 for Group Life and Retirement & Savings,
respectively, in Separate Account Liabilities.
16
(METLIFE LOGO)
INSTITUTIONAL OPERATIONS
OTHER EXPENSES BY MAJOR CATEGORY
For the Three Months Ended
--------------------------------------------------------------------------------
September 30, December 31, March 31, June 30, September 30,
Unaudited (Dollars in millions) 2004 2004 2005 2005 2005
- ------------------------------------------------------------------------------------------------------------------------------------
OTHER EXPENSES BY MAJOR CATEGORY (1)
Direct and allocated expenses $377 $418 $380 $396 $417
Pension and other post-retirement benefit costs 18 18 20 18 19
Premium taxes and other taxes, licenses and fees 37 33 32 41 46
--------------------------------------------------------------------------------
Sub-total Insurance Expenses 432 469 432 455 482
Commissions and other expenses 77 76 78 82 105
--------------------------------------------------------------------------------
Total Other Expenses $509 $545 $510 $537 $587
================================================================================
(1) Certain amounts in prior periods presented throughout the QFS have been
reclassified to conform with current period presentation.
17
(METLIFE LOGO)
INSTITUTIONAL OPERATIONS
SPREADS BY PRODUCT (1)
UNAUDITED
For the Three Months Ended
-----------------------------------------------------------------------------------
September 30, December 31, March 31, June 30, September 30,
Group Life 2004 2004 2005 2005 2005
- -------------------------------------------------------------------------------------------------------------------
ANNUALIZED GENERAL ACCOUNT
SPREADS BY SEGMENT (%)
Investment income yield 5.49% 5.47% 5.68% 5.86% 5.89%
Average crediting rate 3.42% 3.57% 3.65% 3.78% 3.92%
-----------------------------------------------------------------------------------
Spread 2.07% 1.90% 2.03% 2.08% 1.97%
===================================================================================
For the Three Months Ended
-----------------------------------------------------------------------------------
September 30, December 31, March 31, June 30, September 30,
Retirement & Savings 2004 2004 2005 2005 2005
- -------------------------------------------------------------------------------------------------------------------
ANNUALIZED GENERAL ACCOUNT
SPREADS BY SEGMENT (%)
Investment income yield 7.11% 7.36% 7.12% 7.66% 6.57%
Average crediting rate 5.30% 5.34% 5.47% 5.51% 4.97%
-----------------------------------------------------------------------------------
Spread 1.81% 2.02% 1.65% 2.15% 1.60%
===================================================================================
For the Three Months Ended
-----------------------------------------------------------------------------------
September 30, December 31, March 31, June 30, September 30,
Non-Medical Health & Other 2004 2004 2005 2005 2005
- -------------------------------------------------------------------------------------------------------------------
ANNUALIZED GENERAL ACCOUNT
SPREADS BY SEGMENT (%)
Investment income yield 7.25% 7.96% 7.55% 9.17% 8.19%
Average crediting rate 4.88% 4.87% 4.92% 4.94% 4.93%
-----------------------------------------------------------------------------------
Spread 2.37% 3.09% 2.63% 4.23% 3.26%
===================================================================================
(1) Certain amounts in prior periods presented throughout the QFS have been
reclassified to conform with current period presentation.
18
(METLIFE LOGO)
INDIVIDUAL OPERATIONS
STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS - TOTAL
UNAUDITED (DOLLARS IN MILLIONS)
For the Three Months Ended
---------------------------------------------------------------
September 30, December 31, March 31, June 30, September 30,
Individual Operations 2004 2004 2005 2005 2005
- ------------------------------------------------------------------------------------------------------------------------------------
REVENUES (1)
Premiums $1,032 $1,171 $1,028 $1,065 $1,140
Universal life and investment-type product policy fees 461 480 479 501 746
Investment income, net 1,507 1,540 1,538 1,571 1,751
Other revenues 102 108 112 105 150
---------------------------------------------------------------
3,102 3,299 3,157 3,242 3,787
---------------------------------------------------------------
EXPENSES (1)
Policyholder benefits and dividends 1,687 1,811 1,636 1,733 1,770
Interest credited to policyholder account balances 399 398 392 395 500
Capitalization of deferred policy acquisition costs (267) (283) (254) (279) (384)
Amortization of deferred policy acquisition costs 206 218 182 169 310
Other expenses 777 844 720 788 1,096
---------------------------------------------------------------
2,802 2,988 2,676 2,806 3,292
---------------------------------------------------------------
Operating earnings before provision for income taxes 300 311 481 436 495
Provision for income taxes 100 104 160 145 164
---------------------------------------------------------------
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $200 $207 $321 $291 $331
===============================================================
NET INCOME RECONCILIATION (1)
- -----------------------------
Operating earnings $200 $207 $321 $291 $331
Net investment gains (losses) 123 (42) 59 501 (6)
Minority interest - net investment gains (losses) 0 4 (4) 0 0
Net investment gains (losses) tax benefit (provision) (43) 9 (23) (174) 0
---------------------------------------------------------------
Net investment gains (losses), net of income taxes 80 (29) 32 327 (6)
Adjustments related to policyholder benefits and dividends (25) 30 21 (33) (29)
Adjustments related to other expenses (8) 4 2 (21) 11
Adjustments related to tax benefit (provision) 12 (12) (8) 19 7
---------------------------------------------------------------
Adjustments related to net investment gains (losses), net of income
taxes (2) (21) 22 15 (35) (11)
Cumulative effect of a change in accounting, net of income taxes 0 0 0 0 0
Discontinued operations, net of income taxes 0 0 0 0 0
---------------------------------------------------------------
Net income available to common shareholders 259 200 368 583 314
Preferred stock dividend 0 0 0 0 0
---------------------------------------------------------------
Net income $259 $200 $368 $583 $314
---------------------------------------------------------------
For the Year-to-Date Period Ended
---------------------------------
September 30, September 30,
Individual Operations 2004 2005
- ------------------------------------------------------------------- ---------------------------------
REVENUES (1)
Premiums $3,033 $3,233
Universal life and investment-type product policy fees 1,325 1,726
Investment income, net 4,530 4,860
Other revenues 314 367
---------------------------------
9,202 10,186
---------------------------------
EXPENSES (1)
Policyholder benefits and dividends 4,992 5,139
Interest credited to policyholder account balances 1,220 1,287
Capitalization of deferred policy acquisition costs (856) (917)
Amortization of deferred policy acquisition costs 537 661
Other expenses 2,414 2,604
---------------------------------
8,307 8,774
---------------------------------
Operating earnings before provision for income taxes 895 1,412
Provision for income taxes 299 469
---------------------------------
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $596 $943
=================================
NET INCOME RECONCILIATION (1)
- -----------------------------
Operating earnings $596 $943
Net investment gains (losses) 123 554
Minority interest - net investment gains (losses) 0 (4)
Net investment gains (losses) tax benefit (provision) (31) (197)
---------------------------------
Net investment gains (losses), net of income taxes 92 353
Adjustments related to policyholder benefits and dividends 9 (41)
Adjustments related to other expenses (13) (8)
Adjustments related to tax benefit (provision) 1 18
---------------------------------
Adjustments related to net investment gains (losses), net of income
taxes (2) (3) (31)
Cumulative effect of a change in accounting, net of income taxes 0 0
Discontinued operations, net of income taxes 0 0
---------------------------------
Net income available to common shareholders 685 1,265
Preferred stock dividend 0 0
---------------------------------
Net income $685 $1,265
---------------------------------
(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.
19
(METLIFE LOGO)
INDIVIDUAL OPERATIONS
STATEMENTS OF OPERATING EARNINGS
AVAILABLE TO COMMON SHAREHOLDERS - PRODUCT LEVEL
UNAUDITED (DOLLARS IN MILLIONS)
For the Year-to-Date
For the Three Months Ended Period Ended
----------------------------------------------------------------- ----------------------------
September 30, December 31, March 31, June 30, September 30, September 30, September 30,
Traditional Life 2004 2004 2005 2005 2005 2004 2005
- ------------------------------------------------------------------------------------------------------ ----------------------------
REVENUES (1)
Premiums $ 998 $ 1,123 $ 965 $ 992 $ 1,020 $ 2,955 $ 2,977
Universal life and investment-type
product policy fees 0 0 0 0 0 0 0
Investment income, net 840 844 842 832 838 2,548 2,512
Other revenues 1 4 2 0 1 2 3
----------------------------------------------------------------- ----------------------------
1,839 1,971 1,809 1,824 1,859 5,505 5,492
----------------------------------------------------------------- ----------------------------
EXPENSES (1)
Policyholder benefits and dividends 1,531 1,644 1,447 1,523 1,468 4,537 4,438
Interest credited to policyholder
account balances 0 0 0 0 0 0 0
Capitalization of deferred policy
acquisition costs (44) (50) (43) (60) (47) (127) (150)
Amortization of deferred policy
acquisition costs 50 74 52 48 58 159 158
Other expenses 214 241 185 209 230 633 624
----------------------------------------------------------------- ----------------------------
1,751 1,909 1,641 1,720 1,709 5,202 5,070
----------------------------------------------------------------- ----------------------------
Operating earnings before provision
for income taxes 88 62 168 104 150 303 422
Provision for income taxes 30 22 56 36 50 104 142
----------------------------------------------------------------- ----------------------------
OPERATING EARNINGS AVAILABLE TO
COMMON SHAREHOLDERS $ 58 $ 40 $ 112 $ 68 $ 100 $ 199 $ 280
================================================================= ============================
Net investment gains (losses), net
of income taxes 61 16 45 224 31 65 300
Adjustments related to net
investment gains (losses), net of
income taxes (18) 18 15 (22) (22) 0 (29)
Cumulative effect of a change in
accounting, net of income taxes 0 0 0 0 0 0 0
Discontinued operations, net of
income taxes 0 0 0 0 0 0 0
----------------------------------------------------------------- ----------------------------
Net income available to common
shareholders 101 74 172 270 109 264 551
Preferred stock dividend 0 0 0 0 0 0 0
----------------------------------------------------------------- ----------------------------
Net income $ 101 $ 74 $ 172 $ 270 $ 109 $ 264 $ 551
----------------------------------------------------------------- ----------------------------
(1) Certain amounts in prior periods presented throughout the QFS have been
reclassified to conform with current period presentation.
20
(METLIFE LOGO)
INDIVIDUAL OPERATIONS
STATEMENTS OF OPERATING EARNINGS
AVAILABLE TO COMMON SHAREHOLDERS - PRODUCT LEVEL
UNAUDITED (DOLLARS IN MILLIONS)
For the Year-to-Date
For the Three Months Ended Period Ended
----------------------------------------------------------------- ----------------------------
September 30, December 31, March 31, June 30, September 30, September 30, September 30,
Variable & Universal Life 2004 2004 2005 2005 2005 2004 2005
- ------------------------------------------------------------------------------------------------------ ----------------------------
REVENUES
Premiums $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Universal life and investment-type
product policy fees 279 272 265 277 384 788 926
Investment income, net 147 149 152 151 196 430 499
Other revenues 1 (1) 0 (3) 0 2 (3)
----------------------------------------------------------------- ----------------------------
427 420 417 425 580 1,220 1,422
----------------------------------------------------------------- ----------------------------
EXPENSES
Policyholder benefits and dividends 76 56 93 97 120 251 310
Interest credited to policyholder
account balances 117 114 114 117 145 346 376
Capitalization of deferred policy
acquisition costs (74) (79) (65) (72) (133) (230) (270)
Amortization of deferred policy
acquisition costs 73 82 49 64 105 173 218
Other expenses 176 186 148 160 266 537 574
----------------------------------------------------------------- ----------------------------
368 359 339 366 503 1,077 1,208
----------------------------------------------------------------- ----------------------------
Operating earnings before provision
for income taxes 59 61 78 59 77 143 214
Provision for income taxes 20 21 27 20 26 48 73
----------------------------------------------------------------- ----------------------------
OPERATING EARNINGS AVAILABLE TO
COMMON SHAREHOLDERS $ 39 $ 40 $ 51 $ 39 $ 51 $ 95 $ 141
================================================================= ============================
Net investment gains (losses), net
of income taxes 5 (1) (8) 9 (12) 3 (11)
Adjustments related to net
investment gains (losses), net of
income taxes (2) 0 (2) (2) 7 (1) 3
Cumulative effect of a change in
accounting, net of income taxes 0 0 0 0 0 (11) 0
Discontinued operations, net of
income taxes 0 0 0 0 0 0 0
----------------------------------------------------------------- ----------------------------
Net income available to common
shareholders 42 39 41 46 46 86 133
Preferred stock dividend 0 0 0 0 0 0 0
----------------------------------------------------------------- ----------------------------
Net income $ 42 $ 39 $ 41 $ 46 $ 46 $ 86 $ 133
----------------------------------------------------------------- ----------------------------
21
(METLIFE LOGO)
INDIVIDUAL OPERATIONS
STATEMENTS OF OPERATING EARNINGS
AVAILABLE TO COMMON SHAREHOLDERS - PRODUCT LEVEL
UNAUDITED (DOLLARS IN MILLIONS)
For the Year-to-Date
For the Three Months Ended Period Ended
----------------------------------------------------------------- ----------------------------
September 30, December 31, March 31, June 30, September 30, September 30, September 30,
Annuities 2004 2004 2005 2005 2005 2004 2005
- ------------------------------------------------------------------------------------------------------ ----------------------------
REVENUES
Premiums $ 34 $ 48 $ 63 $ 73 $ 118 $ 78 $ 254
Universal life and investment-type
product policy fees 156 177 185 198 318 463 701
Investment income, net 491 513 511 551 681 1,460 1,743
Other revenues 11 11 11 13 26 28 50
----------------------------------------------------------------- ----------------------------
692 749 770 835 1,143 2,029 2,748
----------------------------------------------------------------- ----------------------------
EXPENSES
Policyholder benefits and dividends 78 111 96 113 178 204 387
Interest credited to policyholder
account balances 266 267 261 260 338 827 859
Capitalization of deferred policy
acquisition costs (149) (154) (145) (147) (204) (499) (496)
Amortization of deferred policy
acquisition costs 84 62 81 57 147 207 285
Other expenses 268 281 259 292 427 869 978
----------------------------------------------------------------- ----------------------------
547 567 552 575 886 1,608 2,013
----------------------------------------------------------------- ----------------------------
Operating earnings before provision
for income taxes 145 182 218 260 257 421 735
Provision for income taxes 47 59 71 85 84 137 240
----------------------------------------------------------------- ----------------------------
OPERATING EARNINGS AVAILABLE TO
COMMON SHAREHOLDERS $ 98 $ 123 $ 147 $ 175 $ 173 $ 284 $ 495
================================================================= ============================
Net investment gains (losses), net
of income taxes 9 (58) 1 94 (29) 28 66
Adjustments related to net
investment gains (losses), net of
income taxes (1) 4 2 (11) 4 (2) (5)
Cumulative effect of a change in
accounting, net of income taxes 0 0 0 0 0 11 0
Discontinued operations, net of
income taxes 0 0 0 0 0 0 0
----------------------------------------------------------------- ----------------------------
Net income available to common
shareholders 106 69 150 258 148 321 556
Preferred stock dividend 0 0 0 0 0 0 0
----------------------------------------------------------------- ----------------------------
Net income $ 106 $ 69 $ 150 $ 258 $ 148 $ 321 $ 556
----------------------------------------------------------------- ----------------------------
22
(METLIFE LOGO)
INDIVIDUAL OPERATIONS
STATEMENTS OF OPERATING EARNINGS
AVAILABLE TO COMMON SHAREHOLDERS - PRODUCT LEVEL
UNAUDITED (DOLLARS IN MILLIONS)
For the Year-to-Date
For the Three Months Ended Period Ended
----------------------------------------------------------------- ----------------------------
September 30, December 31, March 31, June 30, September 30, September 30, September 30,
Other 2004 2004 2005 2005 2005 2004 2005
- ------------------------------------------------------------------------------------------------------ ----------------------------
REVENUES (1)
Premiums $ 0 $ 0 $ 0 $ 0 $ 2 $ 0 $ 2
Universal life and investment-type
product policy fees 26 31 29 26 44 74 99
Investment income, net 29 34 33 37 36 92 106
Other revenues 89 94 99 95 123 282 317
----------------------------------------------------------------- ----------------------------
144 159 161 158 205 448 524
----------------------------------------------------------------- ----------------------------
EXPENSES (1)
Policyholder benefits and dividends 2 0 0 0 4 0 4
Interest credited to policyholder
account balances 16 17 17 18 17 47 52
Capitalization of deferred policy
acquisition costs 0 0 (1) 0 0 0 (1)
Amortization of deferred policy
acquisition costs (1) 0 0 0 0 (2) 0
Other expenses 119 136 128 127 173 375 428
----------------------------------------------------------------- ----------------------------
136 153 144 145 194 420 483
----------------------------------------------------------------- ----------------------------
Operating earnings before provision
for income taxes 8 6 17 13 11 28 41
Provision for income taxes 3 2 6 4 4 10 14
----------------------------------------------------------------- ----------------------------
OPERATING EARNINGS AVAILABLE TO
COMMON SHAREHOLDERS $ 5 $ 4 $ 11 $ 9 $ 7 $ 18 $ 27
================================================================= ============================
Net investment gains (losses), net
of income taxes 5 14 (6) 0 4 (4) (2)
Adjustments related to net
investment gains (losses), net of
income taxes 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
Discontinued operations, net of
income taxes 0 0 0 0 0 0 0
----------------------------------------------------------------- ----------------------------
Net income available to common
shareholders 10 18 5 9 11 14 25
Preferred stock dividend 0 0 0 0 0 0 0
----------------------------------------------------------------- ----------------------------
Net income $ 10 $ 18 $ 5 $ 9 $ 11 $ 14 $ 25
----------------------------------------------------------------- ----------------------------
(1) Certain amounts in prior periods presented throughout the QFS have been
reclassified to conform with current period presentation.
23
(METLIFE LOGO)
INDIVIDUAL OPERATIONS
PREMIUMS AND DEPOSITS BY PRODUCT AND MUTUAL FUND SALES
For the Three Months Ended
----------------------------------------------------------------------
September 30, December 31, March 31, June 30, September 30,
Unaudited (Dollars in millions) 2004 2004 2005 2005 2005
- ------------------------------------------------------------------------------------------------------------------------------------
PREMIUMS AND DEPOSITS BY PRODUCT (1) (2)
TOTAL (3)
Life First Year Premiums & Deposits
Traditional Life $ 44 $ 51 $ 47 $ 52 $ 52
Variable Life 1st Year excluding Single Premium COLI/BOLI 51 51 57 41 56
Universal Life 1st Year excluding Single Premium COLI/BOLI 125 118 102 110 245
Single Premium COLI/BOLI 20 4 1 10 4
----------------------------------------------------------------------
Total Life First Year Premiums & Deposits (4) 240 224 207 213 357
Life Renewal Premiums & Deposits
Traditional Life 1,017 1,163 943 1,020 1,033
Variable & Universal Life 447 452 472 416 532
Annuities (5) 2,410 2,566 2,540 2,496 3,624
----------------------------------------------------------------------
Total Premiums and Deposits $4,114 $4,405 $4,162 $4,145 $5,546
======================================================================
PREMIUMS AND DEPOSITS TO SEPARATE ACCOUNTS
Variable & Universal Life $ 300 $ 294 $ 279 $ 246 $ 297
Annuities 1,352 1,525 1,532 1,503 2,306
----------------------------------------------------------------------
Total Separate Accounts $1,652 $1,819 $1,811 $1,749 $2,603
======================================================================
ANNUITY DEPOSITS BY TYPE
Fixed Annuity Deposits $ 403 $ 497 $ 429 $ 356 $ 496
Variable Annuity Deposits 2,007 2,069 2,111 2,140 3,128
----------------------------------------------------------------------
Total Annuity Deposits $2,410 $2,566 $2,540 $2,496 $3,624
======================================================================
----------------------------------------------------------------------
MUTUAL FUND SALES $ 689 $ 935 $ 954 $ 916 $1,006
----------------------------------------------------------------------
(1) Certain amounts in prior periods presented throughout the QFS have been
reclassified to conform with current period presentation.
(2) Statutory premiums direct and assumed.
(3) Includes premiums and deposits to separate accounts and excludes Company
sponsored internal changes.
(4) Of the $357 million of First Year Life Premiums and Deposits received
during the three months ended September 30, 2005, approximately 30% were
distributed through MetLife agents, 11% through New England Financial
agents, 56% through MetLife's Independent Distribution channel and 3%
through other distribution channels.
(5) Of the $3,624 million of Annuity Deposits received during the three months
ended September 30, 2005, approximately 20% were distributed through
MetLife agents, 6% through New England Financial agents, 58% through
MetLife's Independent Distribution channel and 16% through MetLife
Resources representatives.
24
(METLIFE LOGO)
INDIVIDUAL OPERATIONS
ADDITIONAL STATISTICAL INFORMATION
For the Three Months Ended
-------------------------------------------------------------------------
September 30, December 31, March 31, June 30, September 30,
Unaudited 2004 2004 2005 2005 2005
- ------------------------------------------------------------------------------------------------------------------------------------
PERCENTAGE OF PREMIUMS AND DEPOSITS TO SEPARATE ACCOUNTS,
EXCLUDING TRANSFERS FROM GENERAL ACCOUNT: (1)
Variable & Universal Life 46.4% 43.0% 43.0% 41.4% 33.4%
Annuities 56.1% 58.3% 60.3% 60.2% 63.6%
MORTALITY AS A PERCENTAGE OF EXPECTED 78.8% 85.6% 85.6% 84.7% 86.4%
LAPSES / SURRENDERS (GENERAL AND SEPARATE ACCOUNT) (2)
Traditional Life 6.2% 6.1% 6.2% 6.1% 6.1%
Variable & Universal Life 7.0% 7.0% 6.6% 6.3% 6.2%
Variable Annuities 7.5% 7.6% 7.6% 7.7% 8.4%
Fixed Annuities 7.6% 6.7% 6.3% 5.8% 6.4%
NUMBER OF SALES REPRESENTATIVES
MetLife Distribution 5,700 5,597 5,718 5,773 5,774
New England Financial 2,504 2,383 2,231 2,255 2,228
General American (3) 430 380 343 345 353
Independent Distribution Wholesalers 102 100 116 124 279
MetLife Resources 399 427 422 428 857
Walnut Street and Tower Square Securities (4) 1,370 1,359 1,294 1,263 1,869
P&C Specialists 529 544 570 617 672
-------------------------------------------------------------------------
Total Agents 11,034 10,790 10,694 10,805 12,032
-------------------------------------------------------------------------
(1) Certain amounts in prior periods presented throughout the QFS have been
reclassified to conform with current period presentation.
(2) Lapses/Surrenders rates are calculated for the most recent 12 months of
experience.
(3) Based on minimum annual production of $25,000 in life insurance sales.
(4) At September 30, 2005, the number of Walnut Street and Tower Square
Securities representatives includes 58 brokers who are also reported as
General American agents above.
25
(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
---------------------------------------------------------------------------------------
September 30, December 31, March 31, June 30, September 30,
Traditional Life 2004 2004 2005 2005 2005
---------------------------------------------------------------------------------------------------------------------------------
Balance, beginning of period $ 48,828 $ 48,893 $ 49,209 $ 49,371 $ 49,582
Premiums and deposits (1) 1,069 1,199 1,032 1,066 1,101
Interest on reserves 493 494 499 503 514
Surrenders and withdrawals (466) (472) (447) (437) (443)
Benefit payments (464) (458) (484) (492) (498)
Other (567) (447) (438) (429) 306 (2)
---------------------------------------------------------------------------------------
Balance, end of period $ 48,893 $ 49,209 $ 49,371 $ 49,582 $ 50,562
=======================================================================================
For the Three Months Ended
---------------------------------------------------------------------------------------
September 30, December 31, March 31, June 30, September 30,
Variable & Universal Life 2004 2004 2005 2005 2005
---------------------------------------------------------------------------------------------------------------------------------
Balance, beginning of period $ 9,797 $ 9,887 $ 9,991 $ 10,087 $ 10,154
Premiums and deposits (1) (3) 340 342 353 320 548
Interest on reserves 114 115 112 117 161
Surrenders and withdrawals (153) (168) (161) (160) (178)
Net transfers from (to) separate account 44 54 44 55 52
Policy charges (224) (228) (225) (231) (350)
Benefit payments (25) (24) (27) (30) (36)
Other (6) 13 0 (4) 3,563 (2)
---------------------------------------------------------------------------------------
Balance, end of period $ 9,887 $ 9,991 $ 10,087 $ 10,154 $ 13,914
=======================================================================================
For the Three Months Ended
---------------------------------------------------------------------------------------
September 30, December 31, March 31, June 30, September 30,
Annuities 2004 2004 2005 2005 2005
---------------------------------------------------------------------------------------------------------------------------------
Balance, beginning of period $ 31,908 $ 31,955 $ 32,184 $ 32,304 $ 32,421
Premiums and deposits (1) (3) 1,120 1,182 1,089 1,101 1,410
Interest on reserves 297 339 312 309 401
Surrenders and withdrawals (517) (677) (587) (679) (1,014)
Net transfers from (to) separate account (339) (425) (427) (346) (544)
Policy charges (8) (1) (1) (3) (2)
Benefit payments (235) (191) (277) (273) (309)
Other (271) 2 11 8 14,327 (2)
---------------------------------------------------------------------------------------
Balance, end of period $ 31,955 $ 32,184 $ 32,304 $ 32,421 $ 46,690
=======================================================================================
SEPARATE ACCOUNT LIABILITIES
- ----------------------------
For the Three Months Ended
---------------------------------------------------------------------------------------
September 30, December 31, March 31, June 30, September 30,
Variable & Universal Life 2004 2004 2005 2005 2005
---------------------------------------------------------------------------------------------------------------------------------
Balance, beginning of period $ 7,130 $ 7,258 $ 7,785 $ 7,747 $ 7,900
Premiums and deposits (1) 299 294 279 247 297
Investment performance (123) 583 (94) 135 318
Surrenders and withdrawals (98) (224) (109) (109) (137)
Net transfers from (to) fixed account (44) (54) (44) (55) (52)
Policy charges (69) (72) (70) (65) (89)
Other 163 0 0 0 927 (2)
---------------------------------------------------------------------------------------
Balance, end of period $ 7,258 $ 7,785 $ 7,747 $ 7,900 $ 9,164
=======================================================================================
For the Three Months Ended
---------------------------------------------------------------------------------------
September 30, December 31, March 31, June 30, September 30,
Annuities 2004 2004 2005 2005 2005
---------------------------------------------------------------------------------------------------------------------------------
Balance, beginning of period $ 32,989 $ 33,491 $ 37,597 $ 38,051 $ 39,771
Premiums and deposits (1) 1,353 1,524 1,532 1,503 2,306
Investment performance (413) 3,039 (604) 806 2,701
Surrenders and withdrawals (668) (744) (764) (796) (1,723)
Net transfers from (to) fixed account 339 425 427 346 544
Policy charges (109) (138) (137) (139) (266)
Other 0 0 0 0 25,813 (2)
---------------------------------------------------------------------------------------
Balance, end of period $ 33,491 $ 37,597 $ 38,051 $ 39,771 $ 69,146
=======================================================================================
(1) Includes Company-sponsored internal exchanges.
(2) Includes the beginning balances of Travelers of $764, $3,541 and $14,309
for Traditional Life, Variable & Universal Life and Annuities,
respectively, in Future Policy Benefits and Policyholder Account Balances
and $928 and $25,813 for Variable & Universal Life and Annuities,
respectively, in Separate Account Liabilities.
(3) Includes premiums and deposits directed to the General Account investment
option of a variable life or variable annuity product.
26
(METLIFE LOGO)
INDIVIDUAL OPERATIONS
INSURANCE EXPENSES AND OTHER
EXPENSES BY MAJOR CATEGORY
For the Three Months Ended
-----------------------------------------------------------------------
September 30, December 31, March 31, June 30, September 30,
Unaudited (Dollars in millions) 2004 2004 2005 2005 2005
- ---------------------------------------------------------------------------------------------------------------------------
INSURANCE EXPENSES (NET OF CAPITALIZATION
OF DAC) (1)
Insurance Expenses $682 $729 $606 $674 $936
DAC Capitalization (2) (299) (308) (272) (292) (401)
-----------------------------------------------------------------------
Net $383 $421 $334 $382 $535
=======================================================================
OTHER EXPENSES BY MAJOR CATEGORY (1)
Commissions $210 $210 $196 $206 $329
Other deferrable expenses 109 121 102 113 126
Direct and allocated expenses, not deferred 306 348 251 317 422
Pension and other post-retirement benefit costs 27 26 29 29 29
Premium taxes and other taxes, licenses and fees 30 24 28 9 30
-----------------------------------------------------------------------
Subtotal Insurance Expenses 682 729 606 674 936
Broker-dealer and other expenses 126 140 132 132 177
Reinsurance allowances (31) (25) (18) (18) (17)
-----------------------------------------------------------------------
Total Other Expenses $777 $844 $720 $788 $1,096
-----------------------------------------------------------------------
(1) Certain amounts in prior periods presented throughout the QFS have been
reclassified to conform with current period presentation.
(2) Excludes $32 million, $25 million, $18 million, $13 million and $17
million of DAC capitalization related to reinsurance allowances for the
three months ended September 30, 2004, December 31, 2004, March 31, 2005,
June 30, 2005 and September 30, 2005, respectively.
27
(METLIFE LOGO)
INDIVIDUAL OPERATIONS
SPREADS BY PRODUCT (1)
UNAUDITED
For the Three Months Ended
-----------------------------------------------------------------------
September 30, December 31, March 31, June 30, September 30,
VARIABLE & UNIVERSAL LIFE 2004 2004 2005 2005 2005
- -----------------------------------------------------------------------------------------------------
ANNUALIZED GENERAL ACCOUNT
SPREADS BY PRODUCT (%)
Investment income yield 6.96% 6.90% 6.96% 6.85% 6.91%
Average crediting rate 4.93% 4.83% 4.84% 4.92% 4.65%
-----------------------------------------------------------------------
Spread 2.03% 2.07% 2.12% 1.93% 2.26%
-----------------------------------------------------------------------
For the Three Months ended
-----------------------------------------------------------------------
September 30, December 31, March 31, June 30, September 30,
ANNUITIES 2004 2004 2005 2005 2005
- -----------------------------------------------------------------------------------------------------
ANNUALIZED GENERAL ACCOUNT
SPREADS BY PRODUCT (%)
Investment income yield 6.03% 6.28% 6.17% 6.62% 6.41%
Average crediting rate 3.61% 3.54% 3.49% 3.44% 3.64%
-----------------------------------------------------------------------
Spread 2.42% 2.74% 2.68% 3.18% 2.77%
-----------------------------------------------------------------------
(1) Certain amounts in prior periods presented throughout the QFS have been
reclassified to conform with current period presentation.
28
AUTO & HOME OPERATIONS
STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS - TOTAL
UNAUDITED (DOLLARS IN MILLIONS)
For the Three Months Ended
-----------------------------------------------------------------------
September 30, December 31, March 31, June 30, September 30,
Auto & Home Operations 2004 2004 2005 2005 2005
- ------------------------------------------------------------------------------------------------------------------------------------
REVENUES
Earned premiums $740 $737 $728 $738 $716
Investment income, net 40 41 43 46 46
Other revenues 8 12 9 8 8
-----------------------------------------------------------------------
788 790 780 792 770
-----------------------------------------------------------------------
EXPENSES
Losses 460 398 392 360 483
Loss adjustment expense 93 99 85 88 132
Other expenses 194 210 200 204 209
-----------------------------------------------------------------------
747 707 677 652 824
-----------------------------------------------------------------------
Operating earnings before provision
(benefit) for income taxes 41 83 103 140 (54)
Provision (benefit) for income taxes 7 20 27 39 (28)
-----------------------------------------------------------------------
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $34 $63 $76 $101 ($26)
=======================================================================
NET INCOME RECONCILIATION
- -------------------------
Operating earnings available to common shareholders $34 $63 $76 $101 ($26)
Net investment gains (losses) (1) (3) 0 (4) (5)
Minority interest - net investment gains (losses) 0 0 0 0 0
Net investment gains (losses) tax benefit
(provision) 0 1 0 1 2
-----------------------------------------------------------------------
Net investment gains (losses), net of income taxes (1) (2) 0 (3) (3)
Adjustments related to policyholder benefits and
dividends 0 0 0 0 0
Adjustments related to other expenses 0 0 0 0 0
Adjustments related to tax benefit (provision) 0 0 0 0 0
-----------------------------------------------------------------------
Adjustments related to net investment gains (losses), net
of income taxes (1) 0 0 0 0 0
Cumulative effect of a change in accounting, net of
income taxes 0 0 0 0 0
Discontinued operations, net of income taxes 0 0 0 0 0
-----------------------------------------------------------------------
Net income available to common shareholders 33 61 76 98 (29)
Preferred stock dividend 0 0 0 0 0
-----------------------------------------------------------------------
Net income $33 $61 $76 $98 ($29)
-----------------------------------------------------------------------
For the Year-to-Date Period Ended
---------------------------------
September 30, September 30,
Auto & Home Operations 2004 2005
- ----------------------------------------------------------------------------------------------
REVENUES
Earned premiums $2,211 $2,182
Investment income, net 130 135
Other revenues 23 25
---------------------------------
2,364 2,342
---------------------------------
EXPENSES
Losses 1,319 1,235
Loss adjustment expense 265 305
Other expenses 585 613
---------------------------------
2,169 2,153
---------------------------------
Operating earnings before provision
(benefit) for income taxes 195 189
Provision (benefit) for income taxes 44 38
---------------------------------
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $151 $151
=================================
NET INCOME RECONCILIATION
- -------------------------
Operating earnings available to common shareholders $151 $151
Net investment gains (losses) (6) (9)
Minority interest - net investment gains (losses) 0 0
Net investment gains (losses) tax benefit
(provision) 2 3
---------------------------------
Net investment gains (losses), net of income taxes (4) (6)
Adjustments related to policyholder benefits and
dividends 0 0
Adjustments related to other expenses 0 0
Adjustments related to tax benefit (provision) 0 0
---------------------------------
Adjustments related to net investment gains (losses), net
of income taxes (1) 0 0
Cumulative effect of a change in accounting, net of
income taxes 0 0
Discontinued operations, net of income taxes 0 0
---------------------------------
Net income available to common shareholders 147 145
Preferred stock dividend 0 0
---------------------------------
Net income $147 $145
---------------------------------
(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.
29
(METLIFE LOGO)
AUTO & HOME OPERATIONS
STATEMENTS OF OPERATING EARNINGS
AVAILABLE TO COMMON SHAREHOLDERS - PRODUCT LEVEL
UNAUDITED (DOLLARS IN MILLIONS)
For the Three Months Ended
-----------------------------------------------------------------------
September 30, December 31, March 31, June 30, September 30,
Auto 2004 2004 2005 2005 2005
- ------------------------------------------------------------------------------------------------------------------------------------
REVENUES
Earned premiums $539 $538 $531 $533 $534
Investment income, net 30 34 32 35 34
Other revenues 6 6 6 6 6
-----------------------------------------------------------------------
575 578 569 574 574
-----------------------------------------------------------------------
EXPENSES
Losses 300 312 304 272 275
Loss adjustment expense 66 85 74 70 64
Other expenses 136 148 137 141 143
-----------------------------------------------------------------------
502 545 515 483 482
-----------------------------------------------------------------------
Operating earnings before provision
for income taxes 73 33 54 91 92
Provision for income taxes 21 3 11 24 27
-----------------------------------------------------------------------
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $52 $30 $43 $67 $65
=======================================================================
Net investment gains (losses), net of income taxes (1) (1) 0 (2) (2)
Adjustments related to net investment gains (losses), net
of income taxes 0 0 0 0 0
Cumulative effect of a change in accounting, net of
income taxes 0 0 0 0 0
Discontinued operations, net of income taxes 0 0 0 0 0
-----------------------------------------------------------------------
Net income available to common shareholders 51 29 43 65 63
Preferred stock dividend 0 0 0 0 0
-----------------------------------------------------------------------
Net income $51 $29 $43 $65 $63
-----------------------------------------------------------------------
For the Year-to-Date Period Ended
---------------------------------
September 30, September 30,
Auto 2004 2005
- ----------------------------------------------------------------------------------------------
REVENUES
Earned premiums $1,619 $1,598
Investment income, net 100 101
Other revenues 17 18
---------------------------------
1,736 1,717
---------------------------------
EXPENSES
Losses 947 851
Loss adjustment expense 201 208
Other expenses 410 421
---------------------------------
1,558 1,480
---------------------------------
Operating earnings before provision
for income taxes 178 237
Provision for income taxes 43 62
---------------------------------
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $135 $175
=================================
Net investment gains (losses), net of income taxes (4) (4)
Adjustments related to net investment gains (losses), net
of income taxes 0 0
Cumulative effect of a change in accounting, net of
income taxes 0 0
Discontinued operations, net of income taxes 0 0
---------------------------------
Net income available to common shareholders 131 171
Preferred stock dividend 0 0
---------------------------------
Net income $131 $171
---------------------------------
30
(METLIFE LOGO)
AUTO & HOME OPERATIONS
STATEMENTS OF OPERATING EARNINGS
AVAILABLE TO COMMON SHAREHOLDERS - PRODUCT LEVEL
UNAUDITED (DOLLARS IN MILLIONS)
For the Three Months Ended
-----------------------------------------------------------------------
September 30, December 31, March 31, June 30, September 30,
Homeowners 2004 2004 2005 2005 2005
- ------------------------------------------------------------------------------------------------------------------------------------
REVENUES
Earned premiums $188 $188 $184 $193 $170
Investment income, net 11 6 10 10 12
Other revenues 2 2 1 2 1
-----------------------------------------------------------------------
201 196 195 205 183
-----------------------------------------------------------------------
EXPENSES
Losses 155 83 82 82 195
Loss adjustment expense 26 13 11 17 65
Other expenses 52 57 56 58 61
-----------------------------------------------------------------------
233 153 149 157 321
-----------------------------------------------------------------------
Operating earnings (loss) before provision
(benefit) for income taxes (32) 43 46 48 (138)
Provision (benefit) for income taxes (14) 15 15 15 (52)
-----------------------------------------------------------------------
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS ($18) $28 $31 $33 ($86)
=======================================================================
Net investment gains (losses), net of income taxes 0 (1) 0 (1) 0
Adjustments related to net investment gains (losses), net
of income taxes 0 0 0 0 0
Cumulative effect of a change in accounting, net of
income taxes 0 0 0 0 0
Discontinued operations, net of income taxes 0 0 0 0 0
-----------------------------------------------------------------------
Net income available to common shareholders (18) 27 31 32 (86)
Preferred stock dividend 0 0 0 0 0
-----------------------------------------------------------------------
Net income ($18) $27 $31 $32 ($86)
-----------------------------------------------------------------------
For the Year-to-Date Period Ended
---------------------------------
September 30, September 30,
Homeowners 2004 2005
- ----------------------------------------------------------------------------------------------
REVENUES
Earned premiums $555 $547
Investment income, net 29 32
Other revenues 4 4
---------------------------------
588 583
---------------------------------
EXPENSES
Losses 350 359
Loss adjustment expense 63 93
Other expenses 158 175
---------------------------------
571 627
---------------------------------
Operating earnings (loss) before provision
(benefit) for income taxes 17 (44)
Provision (benefit) for income taxes 1 (22)
---------------------------------
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $16 ($22)
=================================
Net investment gains (losses), net of income taxes 0 (1)
Adjustments related to net investment gains (losses), net
of income taxes 0 0
Cumulative effect of a change in accounting, net of
income taxes 0 0
Discontinued operations, net of income taxes 0 0
---------------------------------
Net income available to common shareholders 16 (23)
Preferred stock dividend 0 0
---------------------------------
Net income $16 ($23)
---------------------------------
31
(METLIFE LOGO)
AUTO & HOME OPERATIONS
STATEMENTS OF OPERATING EARNINGS
AVAILABLE TO COMMON SHAREHOLDERS - PRODUCT LEVEL
UNAUDITED (DOLLARS IN MILLIONS)
For the Three Months Ended
-----------------------------------------------------------------------
September 30, December 31, March 31, June 30, September 30,
Other 2004 2004 2005 2005 2005
- ------------------------------------------------------------------------------------------------------------------------------------
REVENUES
Earned premiums $13 $11 $13 $12 $12
Investment income, net (1) 1 1 1 0
Other revenues 0 4 2 0 1
-----------------------------------------------------------------------
12 16 16 13 13
-----------------------------------------------------------------------
EXPENSES
Losses 5 3 6 6 13
Loss adjustment expense 1 1 0 1 3
Other expenses 6 5 7 5 5
-----------------------------------------------------------------------
12 9 13 12 21
-----------------------------------------------------------------------
Operating earnings (loss) before provision
(benefit) for income taxes 0 7 3 1 (8)
Provision (benefit) for income taxes 0 2 1 0 (3)
-----------------------------------------------------------------------
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $0 $5 $2 $1 ($5)
=======================================================================
Net investment gains (losses), net of income taxes 0 0 0 0 (1)
Adjustments related to net investment gains (losses), net
of income taxes 0 0 0 0 0
Cumulative effect of a change in accounting, net of
income taxes 0 0 0 0 0
Discontinued operations, net of income taxes 0 0 0 0 0
-----------------------------------------------------------------------
Net income available to common shareholders 0 5 2 1 (6)
Preferred stock dividend 0 0 0 0 0
-----------------------------------------------------------------------
Net income $0 $5 $2 $1 ($6)
-----------------------------------------------------------------------
For the Year-to-Date Period Ended
---------------------------------
September 30, September 30,
Other 2004 2005
- ---------------------------------------------------------------------------------------------
REVENUES
Earned premiums $37 $37
Investment income, net 1 2
Other revenues 2 3
---------------------------------
40 42
---------------------------------
EXPENSES
Losses 22 25
Loss adjustment expense 1 4
Other expenses 17 17
---------------------------------
40 46
---------------------------------
Operating earnings (loss) before provision
(benefit) for income taxes 0 (4)
Provision (benefit) for income taxes 0 (2)
---------------------------------
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $0 ($2)
=================================
Net investment gains (losses), net of income taxes 0 (1)
Adjustments related to net investment gains (losses), net
of income taxes 0 0
Cumulative effect of a change in accounting, net of
income taxes 0 0
Discontinued operations, net of income taxes 0 0
---------------------------------
Net income available to common shareholders 0 (3)
Preferred stock dividend 0 0
---------------------------------
Net income $0 ($3)
---------------------------------
32
(METLIFE LOGO)
AUTO & HOME OPERATIONS
WRITTEN PREMIUMS BY PRODUCT AND SELECTED FINANCIAL INFORMATION
AND SUPPLEMENTAL DATA
For the Three Months Ended
--------------------------------------------------------------------------------
September 30, December 31, March 31, June 30, September 30,
Unaudited (Dollars in millions) 2004 2004 2005 2005 2005
- --------------------------------------------------------------------------------------------------------------------------
WRITTEN PREMIUMS BY PRODUCT
Preferred/Standard Automobile $534 $502 $512 $519 $528
Non-Standard Automobile 19 21 17 15 14
Homeowners 212 186 160 212 200
Other 11 9 17 12 11
--------------------------------------------------------------------------------
Total $776 $718 $706 $758 $753
================================================================================
SELECTED FINANCIAL INFORMATION AND
SUPPLEMENTAL DATA
TOTAL AUTO & HOME
Loss and loss adjustment expense ratio 74.6% 67.2% 65.7% 60.4% 85.8%
Other expense ratio 25.5% 28.0% 26.7% 27.2% 28.5%
--------------------------------------------------------------------------------
Total combined ratio (1) 100.1% 95.2% 92.4% 87.6% 114.3%
Effect of catastrophe losses (2) 15.3% 3.0% 1.5% 1.2% 27.5%
--------------------------------------------------------------------------------
Combined ratio excluding catastrophes 84.8% 92.2% 90.9% 86.4% 86.8%
================================================================================
AUTO
Loss and loss adjustment expense ratio 68.0% 73.7% 71.5% 63.6% 63.3%
Other expense ratio 24.3% 26.9% 25.0% 26.0% 26.0%
--------------------------------------------------------------------------------
Total combined ratio (1) 92.3% 100.6% 96.5% 89.6% 89.3%
Effect of catastrophe losses (2) 1.7% 0.5% 0.4% 0.1% 2.7%
--------------------------------------------------------------------------------
Combined ratio excluding catastrophes 90.6% 100.1% 96.1% 89.5% 86.6%
================================================================================
HOMEOWNERS
Loss and loss adjustment expense ratio 96.0% 50.8% 50.2% 51.4% 153.1%
Other expense ratio 27.6% 30.1% 29.7% 29.8% 35.4%
--------------------------------------------------------------------------------
Total combined ratio (1) 123.6% 80.9% 79.9% 81.2% 188.5%
Effect of catastrophe losses (2) 55.4% 10.2% 4.9% 4.4% 106.3%
--------------------------------------------------------------------------------
Combined ratio excluding catastrophes 68.2% 70.7% 75.0% 76.8% 82.2%
================================================================================
OTHER
Loss and loss adjustment expense ratio 40.3% 33.7% 49.3% 60.7% 127.0%
Other expense ratio 39.9% 43.8% 56.1% 38.7% 39.4%
--------------------------------------------------------------------------------
Total combined ratio (1) 80.2% 77.5% 105.4% 99.4% 166.4%
Effect of catastrophe losses 0.0% 0.0% 0.0% 0.0% 0.0%
--------------------------------------------------------------------------------
Combined ratio excluding catastrophes 80.2% 77.5% 105.4% 99.4% 166.4%
================================================================================
PRE-TAX CATASTROPHE LOSSES
Auto $9 $3 $2 $1 $13
Homeowners 104 20 9 9 156
Other 0 0 0 0 0
--------------------------------------------------------------------------------
Total $113 $23 $11 $10 $169
================================================================================
CATASTROPHE POINTS ON COMBINED RATIOS 15.3 3.0 1.5 1.2 27.5
NUMBER OF SALES REPRESENTATIVES 80 87 89 89 85
--------------------------------------------------------------------------------
(1) The combined ratio reflects payment fees as a credit to Other Expenses for
the three months ended September 30, 2004, December 31, 2004, March 31,
2005, June 30, 2005 and September 30, 2005, which resulted in a 0.7, 0.7,
0.8, 0.7 and 0.7 of a percentage point decrease in the combined ratio for
the periods ended, respectively. The decreases for Auto, Homeowners and
Other were 0.8, 0.4 and 0.7 of a percentage point, respectively, for
September 30, 2004, 0.8, 0.4 and 0.7 of a percentage point, respectively,
for December 31, 2004, 0.8, 0.5 and 0.5 of a percentage point,
respectively, for March 31, 2005, 0.7, 0.4 and 0.8 of a percentage point,
respectively, for June 30, 2005, and 0.8, 0.5, and 0.8 of a percentage
point, respectively, for September 30, 2005.
(2) Includes the effect of both catastrophe losses and $32 million in
reinstatement reinsurance premiums within Auto ($2 million) and Homeowners
($30 million).
33
(METLIFE LOGO)
INTERNATIONAL OPERATIONS
STATEMENT OF OPERATING EARNINGS
AVAILABLE TO COMMON SHAREHOLDERS
For the Three Months Ended
-----------------------------------------------------------------------
September 30, December 31, March 31, June 30, September 30,
Unaudited (Dollars in millions) 2004 2004 2005 2005 2005
- ------------------------------------------------------------------------------------------------------------------------------------
REVENUES (1)
Premiums $437 $461 $466 $470 $614
Universal life and investment-type product policy fees 90 90 119 125 170
Investment income, net 151 175 149 195 238
Other revenues 2 9 3 (1) 9
-----------------------------------------------------------------------
680 735 737 789 1,031
-----------------------------------------------------------------------
EXPENSES (1)
Policyholder benefits and dividends 424 448 410 468 578
Interest credited to policyholder account balances 37 45 47 55 84
Capitalization of deferred policy acquisition costs (103) (117) (125) (138) (137)
Amortization of deferred policy acquisition costs 32 40 56 56 68
Other expenses 219 279 244 274 359
-----------------------------------------------------------------------
609 695 632 715 952
-----------------------------------------------------------------------
Operating earnings before provision for income taxes 71 40 105 74 79
Provision for income taxes 24 10 37 23 13
-----------------------------------------------------------------------
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $47 $30 $68 $51 $66
=======================================================================
NET INCOME RECONCILIATION (1)
- -----------------------------
Operating earnings available to common shareholders $47 $30 $68 $51 $66
Net investment gains (losses) 3 (4) 0 7 5
Minority interest - net investment gains (losses) 0 0 0 0 0
Net investment gains (losses) tax benefit
(provision) (1) 1 0 (2) (2)
-----------------------------------------------------------------------
Net investment gains (losses), net of income taxes 2 (3) 0 5 3
Adjustments related to policyholder benefits and
dividends (14) (6) 14 (16) (54)
Adjustments related to other expenses 0 0 0 0 0
Adjustments related to tax benefit (provision) 5 2 (5) 6 19
-----------------------------------------------------------------------
Adjustments related to net investment gains (losses), net
of income taxes (2) (9) (4) 9 (10) (35)
Cumulative effect of a change in accounting, net of
income taxes 0 0 0 0 0
Discontinued operations, net of income taxes (2) (4) (1) (1) 7
-----------------------------------------------------------------------
Net income available to common shareholders 38 19 76 45 41
Preferred stock dividend 0 0 0 0 0
-----------------------------------------------------------------------
Net income $38 $19 $76 $45 $41
-----------------------------------------------------------------------
-----------------------------------------------------------------------
NUMBER OF PROFESSIONAL SALES REPRESENTATIVES 3,222 3,491 3,749 3,913 3,861
-----------------------------------------------------------------------
For the Year-to-Date Period Ended
---------------------------------
September 30, September 30,
Unaudited (Dollars in millions) 2004 2005
- ----------------------------------------------------------------------------------------------
REVENUES (1)
Premiums $1,229 $1,550
Universal life and investment-type product policy fees 259 414
Investment income, net 410 582
Other revenues 14 11
---------------------------------
1,912 2,557
---------------------------------
EXPENSES (1)
Policyholder benefits and dividends 1,201 1,456
Interest credited to policyholder account balances 106 186
Capitalization of deferred policy acquisition costs (267) (400)
Amortization of deferred policy acquisition costs 100 180
Other expenses 579 877
---------------------------------
1,719 2,299
---------------------------------
Operating earnings before provision for income taxes 193 258
Provision for income taxes 58 73
---------------------------------
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $135 $185
=================================
NET INCOME RECONCILIATION (1)
- -----------------------------
Operating earnings available to common shareholders $135 $185
Net investment gains (losses) 27 12
Minority interest - net investment gains (losses) 0 0
Net investment gains (losses) tax benefit
(provision) (8) (4)
---------------------------------
Net investment gains (losses), net of income taxes 19 8
Adjustments related to policyholder benefits and
dividends 38 (56)
Adjustments related to other expenses 0 0
Adjustments related to tax benefit (provision) (13) 20
---------------------------------
Adjustments related to net investment gains (losses), net
of income taxes (2) 25 (36)
Cumulative effect of a change in accounting, net of
income taxes (30) 0
Discontinued operations, net of income taxes (5) 5
---------------------------------
Net income available to common shareholders 144 162
Preferred stock dividend 0 0
---------------------------------
Net income $144 $162
---------------------------------
(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 and amounts
allocable to certain participating contracts.
34
(METLIFE LOGO)
REINSURANCE OPERATIONS
STATEMENT OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
For the Three Months Ended
---------------------------------------------------------------------------------
September 30, December 31, March 31, June 30, September 30,
Unaudited (Dollars in millions) 2004 2004 2005 2005 2005
- ------------------------------------------------------------------------------------------------------------------------------------
REVENUES (1)
Premiums, net $819 $917 $903 $930 $974
Investment income, net 134 183 150 137 158
Other revenues 13 16 11 21 13
--------------------------------------------------------------------------------
966 1,116 1,064 1,088 1,145
--------------------------------------------------------------------------------
EXPENSES (1)
Claims and other policy benefits 659 752 739 828 779
Interest credited to policyholder account
balances 55 61 56 43 64
Policy acquisition costs and other insurance
expenses 151 189 144 156 162
Other expenses 46 44 44 47 48
--------------------------------------------------------------------------------
911 1,046 983 1,074 1,053
--------------------------------------------------------------------------------
Operating earnings before provision for income
taxes and minority interest 55 70 81 14 92
Provision for income taxes 9 10 13 (1) 16
--------------------------------------------------------------------------------
Operating earnings available to common
shareholders before minority interest 46 60 68 15 76
Elimination of minority interest, before tax 31 39 43 11 50
--------------------------------------------------------------------------------
CONTRIBUTION TO METLIFE $15 $21 $25 $4 (3) $26
================================================================================
NET INCOME RECONCILIATION (1)
- -----------------------------
Operating earnings $15 $21 $25 $4 $26
Net investment gains (losses) (19) (3) 28 (7) 7
Minority interest - net investment gains
(losses) 2 1 (5) (2) (1)
Net investment gains (losses) tax
benefit (provision) 6 1 (8) 6 (2)
--------------------------------------------------------------------------------
Net investment gains (losses), net of income
taxes (11) (1) 15 (3) 4
Adjustments related to policyholder
benefits and dividends 0 0 0 0 0
Adjustments related to other expenses 15 1 (17) 12 (4)
Adjustments related to tax benefit
(provision) (5) 0 6 (6) 2
--------------------------------------------------------------------------------
Adjustments related to net investment gains
(losses), net of income taxes (2) 10 1 (11) 6 (2)
Cumulative effect of a change in accounting,
net of income taxes 0 0 0 0 0
Discontinued operations, net of income taxes 0 0 0 0 0
--------------------------------------------------------------------------------
Net income available to common shareholders 14 21 29 7 28
Preferred stock dividend 0 0 0 0 0
--------------------------------------------------------------------------------
Net income $14 $21 $29 $7 $28
--------------------------------------------------------------------------------
For the Year-to-Date Period Ended
----------------------------------
September 30, September 30,
Unaudited (Dollars in millions) 2004 2005
- -------------------------------------------------------------------------------------
REVENUES (1)
Premiums, net $2,431 $2,807
Investment income, net 381 445
Other revenues 40 45
----------------------------------
2,852 3,297
----------------------------------
EXPENSES (1)
Claims and other policy benefits 1,943 2,346
Interest credited to policyholder account
balances 151 163
Policy acquisition costs and other insurance
expenses 429 462
Other expenses 134 139
----------------------------------
2,657 3,110
----------------------------------
Operating earnings before provision for income
taxes and minority interest 195 187
Provision for income taxes 31 28
----------------------------------
Operating earnings available to common
shareholders before minority interest 164 159
Elimination of minority interest, before tax 108 104
----------------------------------
CONTRIBUTION TO METLIFE $56 $55
==================================
NET INCOME RECONCILIATION (1)
- -----------------------------
Operating earnings $56 $55
Net investment gains (losses) 36 28
Minority interest - net investment gains
(losses) (14) (8)
Net investment gains (losses) tax
benefit (provision) (7) (4)
----------------------------------
Net investment gains (losses), net of income
taxes 15 16
Adjustments related to policyholder
benefits and dividends 0 0
Adjustments related to other expenses (2) (9)
Adjustments related to tax benefit
(provision) 1 2
----------------------------------
Adjustments related to net investment gains
(losses), net of income taxes (2) (1) (7)
Cumulative effect of a change in accounting,
net of income taxes 0 0
Discontinued operations, net of income taxes 0 0
----------------------------------
Net income available to common shareholders 70 64
Preferred stock dividend 0 0
----------------------------------
Net income $70 $64
----------------------------------
(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.
(3) Operating earnings available to common shareholders for the three months
ended June 30, 2005 includes an $8 million charge, net of income taxes,
associated with establishment of a liability associated with the Argentine
pension business.
35
(METLIFE LOGO)
REINSURANCE OPERATIONS
PRE-TAX AND PRE-MINORITY INTEREST OPERATING
EARNINGS BY REGION AND RESERVES BY REGION
For the Three Months Ended
---------------------------------------------------------------------------------
September 30, December 31, March 31, June 30, September 30,
Unaudited (Dollars in millions) 2004 2004 2005 2005 2005
- ------------------------------------------------------------------------------------------------------------------------------------
PRE-TAX AND PRE-MINORITY INTEREST
OPERATING EARNINGS BY REGION
United States $70 $67 $48 $28 $78
Canada 16 17 23 17 21
Asia-Pacific (2) 2 5 14 4
Other international markets 9 4 15 (7) 15
Corporate (38) (20) (10) (38) (26)
---------------------------------------------------------------------------------
Total pre-tax and pre-minority interest
operating earnings $55 $70 $81 $14 $92
=================================================================================
POLICY BENEFITS AND INTEREST
SENSITIVE CONTRACT LIABILITIES BY REGION
Traditional U.S. $3,716 $3,753 $3,785 $3,865 $3,966
Asset intensive 3,893 4,085 4,159 4,267 4,497
Other 58 124 122 126 90
---------------------------------------------------------------------------------
Total U.S. 7,667 7,962 8,066 8,258 8,553
---------------------------------------------------------------------------------
Canada 1,243 1,375 1,367 1,389 1,507
Asia-Pacific 456 517 548 611 629
Other international markets 549 610 693 702 677
---------------------------------------------------------------------------------
Total International 2,248 2,502 2,608 2,702 2,813
---------------------------------------------------------------------------------
Total policy benefits and interest sensitive
contract liabilities $9,915 $10,464 $10,674 $10,960 $11,366
---------------------------------------------------------------------------------
(1) Certain amounts in prior periods presented throughout the QFS have been
reclassified to conform with current period presentation.
36
(METLIFE LOGO)
CORPORATE, OTHER & ELIMINATIONS
STATEMENT OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
For the Year-to-Date
For the Three Months Ended Period Ended
--------------------------------------------------------------- ----------------------------
September 30, December 31, March 31, June 30, September 30, September 30, September 30,
Unaudited (Dollars in millions) 2004 2004 2005 2005 2005 2004 2005
- ------------------------------------------------------------------------------------------------------ ----------------------------
REVENUES (1)
Premiums ($11) ($4) ($3) ($1) $2 ($23) ($2)
Universal life and investment-type
product policy fees 2 0 0 0 1 2 1
Investment income, net 130 197 151 195 212 379 558
Other revenues 8 0 3 5 5 8 13
--------------------------------------------------------------- ----------------------------
129 193 151 199 220 366 570
--------------------------------------------------------------- ----------------------------
EXPENSES (1)
Policyholder benefits and dividends 2 (4) 2 (47) 11 2 (34)
Interest credited to policyholder
account balances (7) 0 (1) 1 0 0 0
Interest credited to bank deposits 11 14 17 25 30 26 72
Interest expense 95 96 104 110 166 261 380
Other expenses 39 64 63 34 57 147 154
--------------------------------------------------------------- ----------------------------
140 170 185 123 264 436 572
--------------------------------------------------------------- ----------------------------
Operating earnings before (benefit)
provision for income taxes (11) 23 (34) 76 (44) (70) (2)
Benefit (provision) for income taxes (35) (7) (42) (1) (72) (174) (115)
--------------------------------------------------------------- ----------------------------
Operating earnings 24 30 8 77 28 104 113
Preferred stock dividend 0 0 0 0 31 0 31
--------------------------------------------------------------- ----------------------------
OPERATING EARNINGS AVAILABLE TO
COMMON SHAREHOLDERS $24 (3) $30 $8 $77 (4) ($3) (5) $104 $82
=============================================================== ============================
NET INCOME RECONCILIATION (1)
- -----------------------------
Operating earnings available to
common shareholders $24 $30 $8 $77 ($3) $104 $82
Net investment gains (losses) (16) (85) (113) 1,313 73 70 1,273
Minority interest - net
investment gains (losses) 0 0 0 0 0 0 0
Net investment gains (losses)
tax benefit (provision) 3 33 43 (468) (25) (30) (450)
--------------------------------------------------------------- ----------------------------
Net investment gains (losses), net of
income taxes (13) (52) (70) 845 48 40 823
Adjustments related to
policyholder benefits and
dividends 0 0 0 0 0 0 0
Adjustments related to other
expenses (1) 0 0 0 0 (1) 0
Adjustments related to tax
benefit (provision) 1 (1) 0 0 0 1 0
--------------------------------------------------------------- ----------------------------
Adjustments related to net investment
gains (losses), net of income
taxes (2) 0 (1) 0 0 0 0 0
Cumulative effect of a change in
accounting, net of income taxes 0 0 0 0 0 4 0
Discontinued operations, net of
income taxes 5 (4) 151 0 0 23 151
--------------------------------------------------------------- ----------------------------
Net income available to common
shareholders 16 (27) 89 922 45 171 1,056
Preferred stock dividend 0 0 0 0 31 0 31
--------------------------------------------------------------- ----------------------------
Net income $16 ($27) $89 $922 $76 $171 $1,087
--------------------------------------------------------------- ----------------------------
(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 amounts allocable to certain participating contracts.
(3) Operating earnings available to common shareholders for the three months
ended September 30, 2004 includes a $9 million benefit from a revision of
the estimate of income taxes for 2003.
(4) Operating earnings available to common shareholders for the three months
ended June 30, 2005 includes a $30 million benefit, net of income taxes,
associated with the reduction of a previously established liability for
settlement death benefits related to the Company's sales practices class
action settlement recorded in 1999 and an $18 million benefit, net of
income taxes, associated with the reduction of a previously established
liability related to the Company's demutualization in 2000.
(5) Operating earnings available to common shareholders for the three months
ended September 30, 2005 includes a $31 million benefit from a revision of
the estimate of income taxes for 2004.
37
(METLIFE LOGO)
METLIFE, INC.
INVESTMENT RESULTS
BY ASSET CATEGORY AND
ANNUALIZED YIELDS (1)
At or For the Three Months Ended
----------------------------------------------------------------------
September 30, December 31, March 31, June 30, September 30,
Unaudited (Dollars in millions) 2004 2004 2005 2005 2005
- ------------------------------------------------------------------------------------------------------------------------------------
FIXED MATURITIES (2)
Yield (3) 6.44% 6.46% 6.33% 6.31% 6.04%
Income (4) $2,246 $2,272 $2,278 $2,305 $2,865
Investment gains (losses) $61 ($21) ($114) ($89) ($98)
Ending Carrying Value (4) $176,075 $176,746 $182,638 $185,203 $232,419
MORTGAGE AND CONSUMER LOANS
Yield (5) 7.02% 6.93% 6.55% 6.68% 6.79%
Income $507 $537 $527 $547 $611
Investment gains (losses) ($8) ($39) ($11) ($8) $13
Ending Carrying Value $29,620 $32,406 $31,977 $33,586 $36,094
REAL ESTATE AND REAL ESTATE
JOINT VENTURES
Yield (5) 10.55% 11.04% 11.11% 12.82% 11.22%
Income (6) $111 $117 $119 $130 $118
Investment gains (losses) (7) ($5) $13 $18 $1,904 $51
Ending Carrying Value $4,263 $4,233 $4,306 $3,803 $4,505
POLICY LOANS
Yield (5) 6.14% 6.23% 6.17% 6.19% 6.15%
Income $135 $138 $138 $139 $152
Ending Carrying Value $8,801 $8,899 $8,953 $8,975 $9,841
EQUITY SECURITIES AND OTHER LIMITED
PARTNERSHIP INTERESTS (2)
Yield (5) 7.42% 18.26% 9.84% 21.01% 8.76%
Income $75 $199 $118 $276 $162
Investment gains (losses) $96 $25 $95 $12 $20
Ending Carrying Value $4,715 $5,095 $5,567 $6,015 $7,504
CASH AND SHORT-TERM INVESTMENTS (2)
Yield (5) 3.16% 3.67% 4.76% 3.66% 3.29%
Income $43 $50 $64 $93 $116
Investment gains (losses) $0 ($1) ($1) $0 $0
Ending Carrying Value $6,040 $6,710 $6,470 $15,770 $11,431
OTHER INVESTED ASSETS
Yield (5) 5.51% 10.55% 9.06% 7.74% 9.93%
Income (8) $55 $104 $95 $94 $175
Investment gains (losses) (9) $34 ($191) ($8) $406 ($9)
Ending Carrying Value $4,394 $4,926 $4,960 $6,079 $7,499
TOTAL INVESTMENTS
Gross investment income yield 6.51% 6.88% 6.55% 6.76% 6.26%
Investment fees and expenses yield (0.13%) (0.14%) (0.12%) (0.15%) (0.13%)
----------------------------------------------------------------------
NET INVESTMENT INCOME YIELD 6.38% 6.74% 6.43% 6.61% 6.13%
======================================================================
Gross investment income $3,172 $3,417 $3,339 $3,584 $4,199
Investment fees and expenses (65) (70) (60) (76) (87)
----------------------------------------------------------------------
NET INVESTMENT INCOME $3,107 $3,347 $3,279 $3,508 $4,112
======================================================================
Ending Carrying Value $233,908 $239,015 $244,871 $259,431 $309,293
======================================================================
Gross investment gains $351 $309 $373 $2,133 $342
Gross investment losses (201) (175) (322) (231) (304)
Writedowns (44) (79) (51) (42) (14)
----------------------------------------------------------------------
Subtotal 106 55 0 1,860 24
Derivative & other instruments not qualifying for hedge
accounting 72 (269) (21) 365 (47)
----------------------------------------------------------------------
NET INVESTMENT GAINS (LOSSES) 178 (214) (21) 2,225 (23)
Minority interest - net investment gains (losses) 2 5 (9) (2) (1)
Net investment gains (losses) tax benefit (provision) (62) 71 9 (784) 9
----------------------------------------------------------------------
NET INVESTMENT GAINS (LOSSES), NET OF INCOME TAXES $118 ($138) ($21) $1,439 ($15)
----------------------------------------------------------------------
(1) Certain amounts in prior periods presented throughout the QFS have been
reclassified to conform with current period presentation.
(2) Included in ending carrying value, income and investment gains (losses)
are $6,665 million, $85 million and ($14) million, respectively, related
to the consolidation of separate accounts under AICPA Statement of
Position 03-1 for the three months ended September 30, 2005.
(3) The fixed maturities yield is annualized and is based on quarterly average
amortized cost.
(4) Fixed maturities includes $805 million and $14 million in ending carrying
value and income, respectively, relating to trading securities for the
three months ended September 30, 2005. The annualized yields on trading
securities was 5.84% for the three months ended September 30, 2005.
(5) Yields are annualized and based on quarterly average carrying values.
(6) Included in income from real estate and real estate joint ventures is $35
million, $30 million, $39 million, $15 million and ($2) million related to
discontinued operations for the three months ended September 30, 2004,
December 31, 2004, March 31, 2005, June 30, 2005 and September 30, 2005,
respectively.
(7) Included in investment gains (losses) from real estate and real estate
joint ventures is ($16) million, $10 million, $18 million, $1,905 million
and $46 million related to discontinued operations for the three months
ended September 30, 2004, December 31, 2004, March 31, 2005, June 30, 2005
and September 30, 2005, respectively.
(8) Included in income from other invested assets are scheduled settlement
payments on derivative instruments that do not qualify for hedge
accounting under Statement of Financial Accounting Standards No. 133 of
$12 million, $3 million, $24 million, $13 million and $26 million for the
three months ended September 30, 2004, December 31, 2004, March 31, 2005,
June 30, 2005 and September 30, 2005, respectively.
(9) Included in investment gains (losses) for the three months ended December
31, 2004 is a charge of $26 million related to a funds withheld
reinsurance treaty that was converted to a coinsurance agreement.
38
(METLIFE LOGO)
METLIFE, INC.
INVESTMENT RESULTS
BY ASSET CATEGORY AND
ANNUALIZED YIELDS (1)
At or For the Year-to-date Ended
----------------------------------------------------------------------
September 30, December 31, March 31, June 30, September 30,
Unaudited (Dollars in millions) 2004 2004 2005 2005 2005
- ------------------------------------------------------------------------------------------------------------------------------------
FIXED MATURITIES (2)
Yield (3) 6.58% 6.55% 6.33% 6.34% 5.93%
Income (4) $6,768 $9,040 $2,278 $4,583 $7,448
Investment gains (losses) $92 $71 ($114) ($203) ($301)
Ending Carrying Value (4) $176,075 $176,746 $182,638 $185,203 $232,419
MORTGAGE AND CONSUMER LOANS
Yield (5) 6.87% 6.86% 6.55% 6.58% 6.60%
Income $1,424 $1,961 $527 $1,074 $1,685
Investment gains (losses) ($8) ($47) ($11) ($19) ($6)
Ending Carrying Value $29,620 $32,406 $31,977 $33,586 $36,094
REAL ESTATE AND REAL ESTATE
JOINT VENTURES
Yield (5) 11.92% 11.69% 11.11% 12.08% 11.64%
Income (6) $398 $515 $119 $249 $367
Investment gains (losses) (7) $149 $162 $18 $1,922 $1,973
Ending Carrying Value $4,263 $4,233 $4,306 $3,803 $4,505
POLICY LOANS
Yield (5) 6.13% 6.15% 6.17% 6.18% 6.08%
Income $403 $541 $138 $277 $429
Ending Carrying Value $8,801 $8,899 $8,953 $8,975 $9,841
EQUITY SECURITIES AND OTHER LIMITED
PARTNERSHIP INTERESTS (2)
Yield (5) 6.96% 9.96% 9.84% 15.69% 11.96%
Income $205 $404 $118 $394 $556
Investment gains (losses) $183 $208 $95 $107 $127
Ending Carrying Value $4,715 $5,095 $5,567 $6,015 $7,504
CASH AND SHORT-TERM INVESTMENTS (2)
Yield (5) 2.77% 3.01% 4.76% 3.64% 3.47%
Income $103 $153 $64 $157 $273
Investment gains (losses) $0 ($1) ($1) ($1) ($1)
Ending Carrying Value $6,040 $6,710 $6,470 $15,770 $11,431
OTHER INVESTED ASSETS
Yield (5) 5.03% 6.30% 9.06% 8.14% 8.59%
Income (8) $152 $256 $95 $189 $364
Investment gains (losses) (9) $42 ($149) ($8) $398 $389
Ending Carrying Value $4,394 $4,926 $4,960 $6,079 $7,499
TOTAL INVESTMENTS
Gross investment income yield 6.60% 6.67% 6.55% 6.64% 6.25%
Investment fees and expenses yield (0.13%) (0.14%) (0.12%) (0.13%) (0.13%)
----------------------------------------------------------------------
NET INVESTMENT INCOME YIELD 6.47% 6.53% 6.43% 6.51% 6.12%
======================================================================
Gross investment income $9,453 $12,870 $3,339 $6,923 $11,122
Investment fees and expenses (190) (260) (60) (136) (223)
----------------------------------------------------------------------
NET INVESTMENT INCOME $9,263 $12,610 $3,279 $6,787 $10,899
======================================================================
Ending Carrying Value $233,908 $239,015 $244,871 $259,431 $309,293
======================================================================
Gross investment gains $1,005 $1,314 $373 $2,506 $2,848
Gross investment losses (412) (587) (322) (553) (857)
Writedowns (133) (212) (51) (93) (107)
----------------------------------------------------------------------
Subtotal 460 515 0 1,860 1,884
Derivative & other instruments not qualifying for hedge
accounting (2) (271) (21) 344 297
----------------------------------------------------------------------
NET INVESTMENT GAINS (LOSSES) 458 244 (21) 2,204 2,181
Minority interest - net investment gains (losses) (14) (9) (9) (11) (12)
Net investment gains (losses) tax benefit (provision) (148) (77) 9 (775) (766)
----------------------------------------------------------------------
NET INVESTMENT GAINS (LOSSES), NET OF INCOME TAXES $296 $158 ($21) $1,418 $1,403
----------------------------------------------------------------------
(1) Certain amounts in prior periods presented throughout the QFS have been
reclassified to conform with current period presentation.
(2) Included in ending carrying value, income and investment gains (losses) is
$6,665 million, $130 million and $0 million, respectively, related to the
consolidation of separate accounts under AICPA Statement of Position 03-1
for year-to-date September 30, 2005.
(3) The fixed maturities yield is annualized and is based on quarterly average
amortized cost.
(4) Fixed maturities includes $805 million and $17 million in ending carrying
value and income, respectively, relating to trading securities for the
three months ended September 30, 2005. The annualized yields on trading
securities was 4.12% for the nine months ended September 30, 2005.
(5) Yields are annualized and based on quarterly average carrying values.
(6) Included in income from real estate and real estate joint ventures is $139
million, $169 million, $39 million, $54 million and $52 million related to
discontinued operations for year-to-date September 30, 2004, December 31,
2004, March 31, 2005, June 30, 2005 and September 30, 2005, respectively.
(7) Included in investment gains (losses) from real estate and real estate
joint ventures is $136 million, $146 million, $18 million, $1,923 million
and $1,969 million related to discontinued operations for year-to-date
September 30, 2004, December 31, 2004, March 31, 2005, June 30, 2005 and
September 30, 2005, respectively.
(8) Included in income from other invested assets are scheduled settlement
payments on derivative instruments that do not qualify for hedge
accounting under Statement of Financial Accounting Standards No. 133 of
$48 million, $51 million, $24 million, $37 million and $63 million for the
year-to-date September 30, 2004, December 31, 2004, March 31, 2005, June
30, 2005 and September 30, 2005, respectively.
(9) Included in investment gains (losses) for the three months ended December
31, 2004 is a charge of $26 million related to a funds withheld
reinsurance treaty that was converted to a coinsurance agreement.
39
(METLIFE LOGO)
METLIFE, INC.
GROSS UNREALIZED GAINS AND LOSSES AGING SCHEDULE
FIXED MATURITIES (1) (2)
At September 30, 2004 At December 31, 2004 At March 31, 2005 At June 30, 2005
--------------------------------------------------------------------------------------------
Unaudited (Dollars in millions) Amount % of Total Amount % of Total Amount % of Total Amount % of Total
- ------------------------------------------------------------------------------------------------------------------------------------
Less than 20% $530 90.8% $463 92.4% $1,185 99.1% $416 95.4%
20% or more for less than six months 44 7.5% 17 3.4% 5 0.4% 13 3.0%
20% or more for six months or greater 10 1.7% 21 4.2% 6 0.5% 7 1.6%
--------------------------------------------------------------------------------------------
Total Gross Unrealized Losses $584 100.0% $501 100.0% $1,196 100.0% $436 100.0%
--------------------------------------------------------------------------------------------
Total Gross Unrealized Gains $9,703 $10,267 $8,485 $11,250
======= ======= ======= =======
At September 30, 2005
--------------------------
Unaudited (Dollars in millions) Amount % of Total
- ------------------------------------------------------------------
Less than 20% $1,758 95.9%
20% or more for less than six months 69 3.8%
20% or more for six months or greater 6 0.3%
--------------------------
Total Gross Unrealized Losses $1,833 100.0%
--------------------------
Total Gross Unrealized Gains $8,814
=======
GROSS UNREALIZED GAINS AND LOSSES AGING SCHEDULE
EQUITY SECURITIES (1) (2)
At September 30, 2004 At December 31, 2004 At March 31, 2005 At June 30, 2005
--------------------------------------------------------------------------------------------
Unaudited (Dollars in millions) Amount % of Total Amount % of Total Amount % of Total Amount % of Total
- ------------------------------------------------------------------------------------------------------------------------------------
Less than 20% $10 40.0% $7 87.5% $44 78.6% $25 62.5%
20% or more for less than six months 15 60.0% 1 12.5% 12 21.4% 15 37.5%
20% or more for six months or greater 0 0.0% 0 0.0% 0 0.0% 0 0.0%
--------------------------------------------------------------------------------------------
Total Gross Unrealized Losses $25 100.0% $8 100.0% $56 100.0% $40 100.0%
--------------------------------------------------------------------------------------------
Total Gross Unrealized Gains $305 $283 $169 $206
======= ======= ======= =======
At September 30, 2005
--------------------------
Unaudited (Dollars in millions) Amount % of Total
- ------------------------------------------------------------------
Less than 20% $29 70.7%
20% or more for less than six months 12 29.3%
20% or more for six months or greater 0 0.0%
--------------------------
Total Gross Unrealized Losses $41 100.0%
--------------------------
Total Gross Unrealized Gains $256
=======
(1) Certain amounts in prior periods presented throughout the QFS have been
reclassified to conform with current period presentation.
(2) 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.
40
(METLIFE LOGO)
METLIFE, INC.
SUMMARY OF FIXED MATURITIES
BY SECTOR AND QUALITY DISTRIBUTION (1)
At September 30, 2004 At December 31, 2004 At March 31, 2005
--------------------------------------------------------------------------
Unaudited (Dollars in millions) Amount % of Total Amount % of Total Amount % of Total
- ----------------------------------------------------------------------------------------------------------------------
U.S. corporate securities $63,130 35.8% $61,720 34.9% $60,417 33.1%
Residential mortgage-backed securities 30,978 17.6% 32,230 18.2% 34,650 19.0%
Foreign corporate securities 27,076 15.4% 27,838 15.7% 27,766 15.2%
US treasury/agency securities 16,561 9.4% 17,826 10.1% 21,770 11.9%
Commercial mortgage-backed securities 12,016 6.8% 12,501 7.1% 13,372 7.3%
Asset-backed securities 12,912 7.3% 10,876 6.1% 10,826 5.9%
Foreign government securities 8,364 4.8% 8,568 4.9% 8,917 4.9%
State and political subdivision securities 3,853 2.2% 3,899 2.2% 3,934 2.2%
Other fixed maturity securities 644 0.4% 985 0.6% 703 0.4%
--------------------------------------------------------------------------
Total bonds 175,534 99.7% 176,443 99.8% 182,355 99.9%
Redeemable preferred stock 541 0.3% 303 0.2% 149 0.1%
--------------------------------------------------------------------------
Total fixed maturities $176,075 100.0% $176,746 100.0% $182,504 100.0%
==========================================================================
NAIC RATING AGENCY
RATING (1) EQUIVALENT DESIGNATION
1 Aaa / Aa / A $117,658 66.8% $118,779 67.2% $125,899 69.0%
2 Baa 45,728 25.9% 45,311 25.6% 44,054 24.1%
3 Ba 7,514 4.3% 7,500 4.2% 7,392 4.1%
4 B 4,073 2.3% 4,397 2.5% 4,634 2.5%
5 Caa and lower 443 0.3% 366 0.2% 325 0.2%
6 In or near default 118 0.1% 90 0.1% 51 0.0%
--------------------------------------------------------------------------
Total bonds 175,534 99.7% 176,443 99.8% 182,355 99.9%
Redeemable preferred stock 541 0.3% 303 0.2% 149 0.1%
--------------------------------------------------------------------------
Total Fixed Maturities $176,075 100.0% $176,746 100.0% $182,504 100.0%
==========================================================================
At June 30, 2005 At September 30, 2005
------------------------------------------------
Unaudited (Dollars in millions) Amount % of Total Amount % of Total
- --------------------------------------------------------------------------------------------
U.S. corporate securities $61,614 33.3% $78,472 33.9%
Residential mortgage-backed securities 34,795 18.8% 43,200 18.7%
Foreign corporate securities 28,557 15.4% 35,215 15.2%
US treasury/agency securities 21,051 11.4% 26,468 11.4%
Commercial mortgage-backed securities 13,836 7.5% 17,389 7.5%
Asset-backed securities 10,373 5.6% 13,868 6.0%
Foreign government securities 10,129 5.5% 11,049 4.8%
State and political subdivision securities 3,780 2.0% 4,722 2.0%
Other fixed maturity securities 716 0.4% 1,038 0.4%
------------------------------------------------
Total bonds 184,851 99.9% 231,421 99.9%
Redeemable preferred stock 155 0.1% 193 0.1%
------------------------------------------------
Total fixed maturities $185,006 100.0% $231,614 100.0%
================================================
NAIC RATING AGENCY
RATING (1) EQUIVALENT DESIGNATION
1 Aaa / Aa / A $127,913 69.1% $164,341 70.9%
2 Baa 44,202 23.9% 51,438 22.2%
3 Ba 7,476 4.0% 9,665 4.2%
4 B 4,895 2.7% 5,532 2.4%
5 Caa and lower 335 0.2% 317 0.1%
6 In or near default 30 0.0% 128 0.1%
------------------------------------------------
Total bonds 184,851 99.9% 231,421 99.9%
Redeemable preferred stock 155 0.1% 193 0.1%
------------------------------------------------
Total Fixed Maturities $185,006 100.0% $231,614 100.0%
================================================
(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 September 30, 2004 At December 31, 2004 At March 31, 2005
--------------------------------------------------------------------------
Unaudited (Dollars in millions) Amount % of Total Amount % of Total Amount % of Total
- ----------------------------------------------------------------------------------------------------------------------
Pacific $5,608 24.3% $6,075 24.3% $5,888 23.9%
South Atlantic 5,502 23.6% 5,696 22.8% 5,613 22.8%
Middle Atlantic 3,704 15.9% 4,057 16.2% 3,898 15.8%
East North Central 2,443 10.5% 2,550 10.2% 2,565 10.4%
West South Central 1,775 7.6% 2,024 8.1% 2,139 8.7%
New England 1,285 5.5% 1,412 5.6% 1,409 5.7%
International 1,219 5.2% 1,364 5.5% 1,343 5.5%
Mountain 741 3.2% 778 3.1% 780 3.2%
West North Central 615 2.6% 667 2.7% 631 2.5%
East South Central 276 1.2% 268 1.1% 267 1.1%
Other 99 0.4% 99 0.4% 98 0.4%
--------------------------------------------------------------------------
Total $23,267 100.0% $24,990 100.0% $24,631 100.0%
==========================================================================
Office $10,826 46.6% $11,500 46.0% $10,798 43.8%
Retail 5,288 22.7% 5,698 22.8% 5,754 23.4%
Apartments 3,095 13.3% 3,264 13.1% 3,330 13.5%
Industrial 2,034 8.7% 2,499 10.0% 2,749 11.2%
Hotel 1,227 5.3% 1,245 5.0% 1,212 4.9%
Other 797 3.4% 784 3.1% 788 3.2%
--------------------------------------------------------------------------
Total $23,267 100.0% $24,990 100.0% $24,631 100.0%
==========================================================================
At June 30, 2005 At September 30, 2005
------------------------------------------------
Unaudited (Dollars in millions) Amount % of Total Amount % of Total
- --------------------------------------------------------------------------------------------
Pacific $6,224 23.8% $6,664 24.5%
South Atlantic 6,005 23.0% 6,168 22.6%
Middle Atlantic 4,007 15.4% 4,273 15.7%
East North Central 2,868 11.0% 2,894 10.6%
West South Central 2,140 8.2% 2,131 7.8%
New England 1,438 5.5% 1,536 5.6%
International 1,395 5.3% 1,455 5.3%
Mountain 868 3.3% 938 3.5%
West North Central 698 2.7% 710 2.6%
East South Central 360 1.4% 384 1.4%
Other 97 0.4% 97 0.4%
------------------------------------------------
Total $26,100 100.0% $27,250 100.0%
================================================
Office $11,776 45.0% $12,873 47.2%
Retail 6,073 23.3% 6,078 22.3%
Apartments 3,416 13.1% 3,435 12.7%
Industrial 2,813 10.8% 2,701 9.9%
Hotel 1,295 5.0% 1,419 5.2%
Other 727 2.8% 744 2.7%
------------------------------------------------
Total $26,100 100.0% $27,250 100.0%
================================================
(1) Certain amounts in prior periods presented throughout the QFS have been
reclassified to conform with current period presentation.
41
(METLIFE LOGO)
METLIFE, INC.
SUMMARY OF REAL ESTATE
At September 30, At December 31, At March 31, At June 30, At September 30,
Unaudited (Dollars in millions) 2004 2004 2005 2005 2005
- -------------------------------------------------------------------------------------------------------------------------------
Wholly owned $3,911 $3,843 $3,768 $3,277 $3,921
Joint ventures 350 386 534 523 581
---------------------------------------------------------------------------------
Subtotal 4,261 4,229 4,302 3,800 4,502
Foreclosed 2 4 4 3 3
---------------------------------------------------------------------------------
Total Real Estate (2) $4,263 $4,233 $4,306 $3,803 $4,505
=================================================================================
SUMMARY OF MORTGAGES AND CONSUMER LOANS (1)
At September 30, At December 31, At March 31, At June 30, At September 30,
Unaudited (Dollars in millions) 2004 2004 2005 2005 2005
- -------------------------------------------------------------------------------------------------------------------------------
COMMERCIAL MORTGAGES $23,267 $24,990 $24,631 $26,100 $27,250
AGRICULTURAL MORTGAGES 5,593 5,907 5,929 6,040 7,474
CONSUMER LOANS 760 1,509 1,417 1,446 1,370
---------------------------------------------------------------------------------
TOTAL $29,620 $32,406 $31,977 $33,586 $36,094
=================================================================================
DISTRIBUTION OF ASSETS UNDER MANAGEMENT
At September 30, At December 31, At March 31, At June 30, At September 30,
Unaudited (Dollars in billions) 2004 2004 2005 2005 2005
- -------------------------------------------------------------------------------------------------------------------------------
METLIFE $265.0 $270.0 $276.9 $291.9 $358.8
METLIFE SEPARATE ACCOUNT 81.2 86.8 85.8 89.5 124.0
---------------------------------------------------------------------------------
TOTAL ASSETS UNDER MANAGEMENT $346.2 $356.8 $362.7 $381.4 $482.8
=================================================================================
(1) Includes real estate held-for-sale and held-for-investment.
42
(METLIFE LOGO)
COMPANY RATINGS AS OF OCTOBER 26, 2005 (1)
Moody's Standard & A.M. Best Fitch
Investors Service Poor's Company Ratings
----------------- ---------- --------- -------
FINANCIAL STRENGTH RATINGS
- --------------------------
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
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 Life Insurance Company Aa2 * AA * A+ AA
Metropolitan Life Insurance Company (Short-term rating) P-1 A-1+ NR NR
Metropolitan Lloyds Insurance Company of Texas NR NR A NR
Metropolitan Property and Casualty Insurance Company Aa3 * NR A NR
Metropolitan Tower Life Insurance Company Aa3 * NR A+ NR
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
The Travelers Life and Annuity Company Aa2 * AA * A+ AA
The Travelers Insurance Company Aa2 * AA * A+ AA
The Travelers Insurance Company (Short-term rating) P-1 NR NR NR
RGA Reinsurance Company A1 AA- * A+ AA-
CREDIT RATINGS
- --------------
GenAmerica Capital I
Preferred Stock A3 * BBB+ * NR A-
General American Life Insurance Company
Surplus Notes A1 * A+ * a+ * NR
MetLife, Inc.
Senior Unsecured A2 * A * a * A
Commercial Paper P-1 * A-1 AMB-1 * F1
Subordinated Debt (p) A3 * NR a- * NR
Preferred Stock Baa1 * BBB+ * bbb+ * A-
Perpetual Preferred Stock Baa1 * BBB * bbb+ * A-
MetLife Capital Trust II
Preferred Stock A3 * BBB+ * a- * A-
MetLife Capital Trust III
Preferred Stock A3 * BBB+ * a- * A-
MetLife Funding, Inc.
Commercial Paper P-1 A-1+ AMB-1+ * F1+
Metropolitan Life Global Funding I
Senior Secured Aa2 * AA aa * NR
Metropolitan Life Insurance Company
Surplus Notes A1 * A+ * a+ * A+
Reinsurance Group of America, Incorporated
Senior Unsecured Baa1 A- * a- A-
RGA Capital Trust I
Preferred Stock Baa2 BBB * bbb+ BBB+
* Moody's, Standard & Poor's and A.M. Best's outlook for these ratings is
negative.
(1) For entities owned as of September 30, 2005.
(P) Preliminary
(NR) Not Rated
43