Exhibit 99.1
Public Relations
FOR IMMEDIATE RELEASE NEWS MetLife, Inc.
One MetLife Plaza
27-01 Queens Plaza North
Long Island City, NY 11101
[METLIFE LOGO]
Contacts: For Media: For Investors:
John Calagna Tracey Dedrick
(212) 578-6252 (212) 578-5140
METLIFE ANNOUNCES FOURTH QUARTER AND FULL YEAR 2005 RESULTS
4TH QUARTER NET INCOME AVAILABLE TO COMMON SHAREHOLDERS
OF $0.88 PER DILUTED COMMON SHARE, UP 29%
4TH QUARTER OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
OF $1.04 PER DILUTED COMMON SHARE, UP 18%
RECORD 2005 NET INCOME AVAILABLE TO COMMON SHAREHOLDERS
OF $6.16 PER DILUTED COMMON SHARE, UP 69%
RECORD 2005 OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
OF $4.33 PER DILUTED COMMON SHARE, UP 24%
NEW YORK, February 9, 2006 -- MetLife, Inc. (NYSE: MET) today reported fourth
quarter 2005 net income available to common shareholders of $677 million, or
$0.88 per diluted common share, compared with $511 million, or $0.68 per diluted
common share, for the fourth quarter of 2004. The company also reported that net
income available to common shareholders for 2005 was a record $4.65 billion, or
$6.16 per diluted common share, compared with $2.76 billion, or $3.65 per
diluted common share, for 2004.
<Table>
<Caption>
For the three months For the year
ended December 31, ended December 31,
------------------------ ------------------------
2005 2004 2005 2004
--------- --------- --------- ---------
(in millions, except per diluted common share data)
Net income available to common shareholders $ 677 $ 511 $ 4,651 $ 2,758
Net income available to common shareholders per
diluted common share $ 0.88 $ 0.68 $ 6.16 $ 3.65
Operating earnings available to common shareholders(1) $ 799 $ 660 $ 3,271 $ 2,642
Operating earnings available to common shareholders
per diluted common share(1) $ 1.04 $ 0.88 $ 4.33 $ 3.50
Book value per diluted common share $ 35.19 $ 30.53 $ 35.83 $ 30.23
Book value per diluted common share, excluding
accumulated other comprehensive income(1) $ 32.70 $ 26.57 $ 33.29 $ 26.32
</Table>
(1) Operating earnings available to common shareholders, operating earnings
available to common shareholders per diluted common share and book value per
diluted common share (excluding accumulated other comprehensive income) are not
calculated based on generally accepted accounting principles ("GAAP").
Information regarding non-GAAP financial measures in this press release and the
reconciliation of them to GAAP measures are provided in the Non-GAAP and Other
Financial Disclosures section below, as well as in the tables that accompany
this release.
1
FOURTH QUARTER HIGHLIGHTS
- - Earned total premiums, fees and other revenues of $7.8 billion, a 13%
increase over the prior year period
- - Annuity deposits reached $3.6 billion, an increase of 39% over the prior year
period
Operating earnings available to common shareholders for the fourth quarter of
2005 were $799 million, or $1.04 per diluted common share, compared with $660
million, or $0.88 per diluted common share, for the prior year period.
"In 2005, MetLife once again demonstrated its ability to deliver strong results
as we generated record full year net income and operating earnings," said Robert
H. Benmosche, chairman and chief executive officer of MetLife, Inc. "In addition
to reaching our financial targets, we completed and integrated the acquisition
of Travelers Life & Annuity and substantially all of Citigroup's international
insurance businesses. With strong business fundamentals, leading market
positions and a multitude of opportunities to leverage our strong brand in the
marketplace, MetLife is well positioned to achieve further growth and success."
FULL YEAR HIGHLIGHTS
- - Increased total premiums, fees and other revenues to $30 billion, up 14% from
the prior year
- - Grew book value per diluted common share, excluding accumulated other
comprehensive income, 26% from the prior year to $33.29 per diluted common
share
- - Achieved record operating earnings available to common shareholders in
Institutional Business, Individual Business, Auto & Home and International
Operating earnings available to common shareholders for 2005 were $3.27 billion,
or $4.33 per diluted common share, compared with $2.64 billion, or $3.50 per
diluted common share, for 2004.
FOURTH QUARTER SEGMENT OVERVIEW
Reconciliations of segment net income available to common shareholders to
segment operating earnings available to common shareholders are provided in the
tables that accompany this release.
During the quarter, MetLife had $64 million of expenses related to the Travelers
integration.
INSTITUTIONAL BUSINESS EARNINGS UP 26%
Institutional Business operating earnings available to common shareholders in
the fourth quarter of 2005 were $389 million, compared with $309 million in the
prior year period. During the quarter, group life earnings increased 24% largely
due to business growth across the majority of products and favorable
underwriting and investment results. Growth in the asset base for retirement &
savings, due in large part to the Travelers acquisition, as well as higher net
investment income, also contributed to the earnings growth in the segment. This
was partially offset by an adjustment to deferred policy acquisition costs in
the long-term care business.
During the quarter, group life premiums, fees and other revenues grew 6% over
the prior year period primarily due to sales growth and business retention.
Retirement & savings net investment income grew 53% compared to the prior year
period largely due to the Travelers acquisition and an increase in the asset
base. In addition, non-medical health premiums, fees and other revenues
increased 11% over the prior year period primarily due to continued growth
across all product lines.
2
INDIVIDUAL BUSINESS EARNINGS UP 52%
Individual Business operating earnings available to common shareholders were
$314 million in the fourth quarter of 2005, compared with $207 million in the
prior year period. The strong growth in the segment was driven by the Travelers
acquisition, as well as continued growth in the business and favorable
mortality. Fees for investment-type products within the annuity business nearly
doubled compared with the prior year period as a result of growth in the
separate account assets. Annuity results also benefited from strong investment
performance. In addition, combined life results increased 18% largely due to
growth in the business and favorable mortality. Total first year life premiums
and deposits were up 61%, reflecting broader distribution, largely due to the
Travelers acquisition.
In connection with MetLife's acquisition of Travelers, the company has performed
reviews of Travelers underwriting criteria in its effort to refine its estimated
fair values for the purchase price allocation. As a result of these reviews and
actuarial analyses, and to be consistent with MetLife's existing reserving
methodologies, the company has established an excess mortality reserve on a
specific group of policies. This resulted in an adjustment to the purchase price
allocation, an increase to goodwill of $234 million, net of income taxes, and
a charge of $20 million, net of income taxes, to fourth quarter results. The
company expects to complete its reviews and refine its estimate of the excess
mortality reserve by June 30, 2006.
AUTO & HOME EARNINGS UP 29%
Auto & Home operating earnings available to common shareholders were $81 million
in the fourth quarter of 2005, compared with $63 million in the prior year
period. Auto & Home's results benefited from an improved non-catastrophe
combined ratio of 83.0% including favorable claim development related to prior
accident years. These factors were partially offset by higher catastrophe losses
and reinsurance reinstatement premiums of $42 million, net of income taxes,
which included $32 million, net of income taxes, related to Hurricane Wilma.
INTERNATIONAL EARNINGS UP 60%
International operating earnings available to common shareholders were $48
million in the fourth quarter of 2005, compared with $30 million in the prior
year period. International earnings increased due to continued business growth
in Latin America and Asia Pacific, as well as a one-time $13 million tax
benefit. The earnings increase was partially offset by higher one-time expenses,
including certain costs of integrating the CitiInsurance operations.
INVESTMENTS
During the fourth quarter of 2005, corporate joint venture income, commercial
mortgage prepayment fees and corporate bond prepayment fees were at higher than
normal levels.
Earnings Conference Call
- ------------------------
MetLife will hold its fourth quarter and full year 2005 earnings conference call
and audio Webcast on Friday, February 10, 2006, from 8:00 to 9:00 a.m. (ET). The
conference call will be available live via telephone and the Internet. To listen
over the telephone, dial (612) 326-1003 (domestic and international callers). To
listen to the conference call over the Internet, visit www.metlife.com (through
a link on the Investor Relations page). Those who want to listen to the call on
the telephone or via the Internet should dial in or go to the Web site at least
fifteen minutes prior to the call to register, and/or download and install any
necessary audio software.
The conference call will be available for replay via telephone and the Internet
beginning at 11:30 a.m. (ET) on Friday, February 10, 2006, until Friday,
February 17, 2006, at 11:59 p.m. (ET). To listen to a
3
replay of the conference call over the telephone, dial (320) 365-3844 (domestic
and international callers). The access code for the replay is 813433. To access
the replay of the conference call over the Internet, visit the above-mentioned
Web site.
Non-GAAP and Other Financial Disclosures
- ----------------------------------------
MetLife analyzes its performance using so-called non-GAAP measures, including
operating earnings available to common shareholders and operating earnings
available to common shareholders per diluted common share. Operating earnings
available to common shareholders 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, less
preferred stock dividends which are recorded in Corporate & Other. Scheduled
settlement payments on derivative instruments not qualifying for hedge
accounting treatment are included in operating earnings available to common
shareholders. 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 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 available to common shareholders and GAAP net
income available to common shareholders per diluted common share, respectively.
4
<Table>
<Caption>
For the three months ended December 31,
----------------------------------------------------------
2005 2004
------------------------ ------------------------
(in millions, except per diluted common share data)
Net income available to common shareholders $ 677 $ 0.88 $ 511 $ 0.68
Net investment (gains) losses, net of
income taxes(1) 146 0.20 138 0.18
Adjustments related to net investment
(gains) losses, net of income taxes(2) (12) (0.02) 3 0.01
Discontinued operations, net of income
taxes(3) (12) (0.02) 8 0.01
------- ------- ------- -------
Operating earnings available to common
shareholders $ 799 $ 1.04 $ 660 $ 0.88
======= ======= ======= =======
Book value per diluted common
share $ 35.19 $ 30.53
Accumulated other comprehensive income per
diluted common share $ (2.49) $ (3.96)
------- -------
Book value per diluted common share,
excluding accumulated other
comprehensive income $ 32.70 $ 26.57
======= =======
(1) Net investment (gains) losses, net of income taxes, includes (gains) losses
on sales of real estate and real estate joint ventures related to discontinued
operations of $(100) million and $(2) million for the three months ended
December 31, 2005 and 2004, respectively, and excludes (gains) losses of $(23)
million and $(2) million for the three months ended December 31, 2005 and 2004,
respectively, from scheduled settlement payments on derivative instruments not
qualifying for hedge accounting treatment.
(2) Adjustments related to net investment (gains) losses, net of income taxes,
include amortization of deferred policy acquisition costs, adjustments to the
policyholder dividend obligation and amounts allocable to certain participating
contracts.
(3) Discontinued operations, net of income taxes, excludes (gains) losses on
sales of real estate and real estate joint ventures related to discontinued
operations.
5
<Table>
<Caption>
For the year ended December 31,
----------------------------------------------------------
2005 2004
------------------------ ------------------------
(in millions, except per diluted common share data)
Net income available to common shareholders $ 4,651 $ 6.16 $ 2,758 $ 3.65
Net investment (gains) losses, net of
income taxes(1) (1,257) (1.67) (158) (0.21)
Adjustments related to net investment
(gains) losses, net of income taxes(2) 45 0.06 (34) (0.04)
Cumulative effect of a change in accounting -- -- 86 0.11
Discontinued operations, net of income
taxes(3) (168) (0.22) (10) (0.01)
------- ------- ------- -------
Operating earnings available to common
shareholders $ 3,271 $ 4.33 $ 2,642 $ 3.50
======= ======= ======= =======
Book value per diluted common
share $ 35.83 $ 30.23
Accumulated other comprehensive income per
diluted common share $ (2.54) $ (3.91)
------- -------
Book value per diluted common share,
excluding accumulated other
comprehensive income $ 33.29 $ 26.32
======= =======
(1) Net investment (gains) losses, net of income taxes, includes (gains) losses
on sales of real estate and real estate joint ventures related to discontinued
operations of $(1,369) million and $(90) million for the full year ended
December 31, 2005 and 2004, respectively, and excludes (gains) losses of $(64)
million and $(33) million for the full year ended December 31, 2005 and 2004,
respectively, from scheduled settlement payments on derivative instruments not
qualifying for hedge accounting treatment.
(2) Adjustments related to net investment (gains) losses, net of income taxes,
include amortization of deferred policy acquisition costs, adjustments to the
policyholder dividend obligation and amounts allocable to certain participating
contracts.
(3) Discontinued operations, net of income taxes, excludes (gains) losses on
sales of real estate and real estate joint ventures related to discontinued
operations.
This release contains statements which constitute forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995,
including statements relating to trends in the operations and financial results
and the business and the products of the company and its subsidiaries, as well
as other statements including words such as "anticipate," "believe," "plan,"
"estimate," "expect," "intend" and other similar expressions. Forward-looking
statements are made based upon management's current expectations and beliefs
concerning future developments and their potential effects on the company. Such
forward-looking statements are not guarantees of future performance.
Actual results may differ materially from those included in the forward-looking
statements as a result of risks and uncertainties including, but not limited to,
the following: (i) changes in general economic conditions, including the
performance of financial markets and interest rates; (ii) heightened
competition, including with respect to pricing, entry of new competitors and the
development of new
6
products by new and existing competitors; (iii) unanticipated changes in
industry trends; (iv) the company's primary reliance, as a holding company, on
dividends from its subsidiaries to meet debt payment obligations and the
applicable regulatory restrictions on the ability of the subsidiaries to pay
such dividends; (v) deterioration in the experience of the "closed block"
established in connection with the reorganization of Metropolitan Life Insurance
Company; (vi) catastrophe losses; (vii) adverse results or other consequences
from litigation, arbitration or regulatory investigations; (viii) regulatory,
accounting or tax changes that may affect the cost of, or demand for, the
company's products or services; (ix) downgrades in the company's and its
affiliates' claims paying ability, financial strength or credit ratings; (x)
changes in rating agency policies or practices; (xi) discrepancies between
actual claims experience and assumptions used in setting prices for the
company's products and establishing the liabilities for the company's
obligations for future policy benefits and claims; (xii) discrepancies between
actual experience and assumptions used in establishing liabilities related to
other contingencies or obligations; (xiii) the effects of business disruption or
economic contraction due to terrorism or other hostilities; (xiv) the company's
ability to identify and consummate on successful terms any future acquisitions,
and to successfully integrate acquired businesses with minimal disruption; and
(xv) other risks and uncertainties described from time to time in the company's
filings with the Securities and Exchange Commission, including its S-1 and S-3
registration statements. The company specifically disclaims any obligation to
update or revise any forward-looking statement, whether as a result of new
information, future developments or otherwise.
MetLife, Inc. is a leading provider of insurance and other financial services to
millions of individual and institutional customers throughout the United States.
Through its subsidiaries and affiliates, MetLife, Inc. offers life insurance,
annuities, automobile and homeowner's insurance and retail banking services to
individuals, as well as group insurance, reinsurance and retirement and savings
products and services to corporations and other institutions. Outside the U.S.,
the MetLife companies have direct insurance operations in Asia Pacific, Latin
America and Europe. For more information, please visit www.metlife.com.
For a copy of MetLife's Quarterly Financial Supplement, please visit
www.metlife.com.
# # #
7
MetLife, Inc.
Consolidated Statements of Income
Unaudited
(in millions)
Three months ended December 31, Year ended December 31,
------------------------------- -----------------------
2005 2004 2005 2004
-------- ------- -------- --------
Premiums $ 6,346 $ 5,800 $ 24,860 $ 22,200
Universal life and investment-type product policy fees 1,112 747 3,828 2,867
Net investment income 4,126 3,288 14,910 12,364
Other revenues 323 309 1,271 1,198
Net investment gains (losses) (361) (194) (93) 175
-------- ------- -------- --------
Total revenues 11,546 9,950 44,776 38,804
-------- ------- -------- --------
Policyholder benefits and claims 6,488 5,887 25,506 22,662
Interest credited to policyholder account balances 1,161 777 3,925 2,997
Policyholder dividends 418 414 1,679 1,666
Other expenses 2,676 2,168 9,267 7,813
-------- ------- -------- --------
Total expenses 10,743 9,246 40,377 35,138
-------- ------- -------- --------
Income from continuing operations before provision for income taxes 803 704 4,399 3,666
Provision for income taxes 211 212 1,260 1,029
-------- ------- -------- --------
Income from continuing operations 592 492 3,139 2,637
Income from discontinued operations, net of income taxes 117 19 1,575 207
-------- ------- -------- --------
Income before cumulative effect of a change in accounting, net of
income taxes 709 511 4,714 2,844
Cumulative effect of a change in accounting, net of income taxes (1) -- -- -- (86)
-------- ------- -------- --------
Net income 709 511 4,714 2,758
Preferred stock dividends 32 -- 63 --
-------- ------- -------- --------
Net income available to common shareholders $ 677 $ 511 $ 4,651 $ 2,758
======== ======= ======== ========
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS RECONCILIATION
Net income available to common shareholders 677 511 4,651 2,758
Net investment gains (losses) (234) (214) 1,947 244
Minority interest -- net investment gains (losses) 3 5 (9) (9)
Net investment gains (losses) tax benefit (provision) 85 71 (681) (77)
-------- ------- -------- --------
Net investment gains (losses), net of income taxes (2) (3) (146) (138) 1,257 158
Adjustments related to policyholder benefits and dividends (9) (9) (80) 64
Adjustments related to other expenses 30 5 13 (11)
Adjustments related to tax benefit (provision) (9) 1 22 (19)
-------- ------- -------- --------
Adjustments related to net investment gains (losses), net of income
taxes (4) 12 (3) (45) 34
Cumulative effect of a change in accounting, net of income taxes (1) -- -- -- (86)
Discontinued operations, net of income taxes (5) 12 (8) 168 10
-------- ------- -------- --------
Operating earnings available to common shareholders $ 799 $ 660 $ 3,271 $ 2,642
======== ======= ======== ========
(1) The cumulative effect of a change in accounting, net of income taxes, for
the year ended December 31, 2004 is in accordance with AICPA Statement of
Position 03-1, Accounting and Reporting by Insurance Enterprises for
Certain Nontraditional Long-Duration Contracts and for Separate Accounts.
(2) Net investment gains (losses), net of income taxes, includes gains (losses)
on sales of real estate and real estate joint ventures related to
discontinued operations, of $100 million and $2 million for the three
months ended December 31, 2005 and 2004, respectively, and $1,369 million
and $90 million for the years ended December 31, 2005 and 2004,
respectively.
(3) Net investment gains (losses), net of income taxes, excludes gains (losses)
of $23 million and $2 million for the three months ended December 31, 2005
and 2004, respectively, and $64 million and $33 million for the years ended
December 31, 2005 and 2004, respectively, from scheduled settlement
payments on derivative instruments not qualifying for hedge accounting
treatment.
(4) Adjustments related to net investment gains (losses), net of income taxes,
includes amortization of deferred policy acquisition costs, adjustments to
the policyholder dividend obligation and amounts allocable to certain
participating contracts.
(5) Discontinued operations, net of income taxes, excludes gains (losses) on
sales of real estate and real estate joint ventures related to discontinued
operations.
MetLife, Inc.
Financial Highlights
Unaudited
(in millions, except per common share data or unless otherwise noted)
At or for the three months At or for the year
ended December 31, ended December 31,
-------------------------- ------------------
2005 2004 2005 2004
------ ------ ------- -------
Other Financial Data:
Net income available to common shareholders $ 677 $ 511 $ 4,651 $ 2,758
Operating earnings available to common shareholders $ 799 $ 660 $ 3,271 $ 2,642
Total assets under management (billions) $481.2 $356.8 $ 481.2 $ 356.8
Individual Business Sales Data:
Total first year life premiums and deposits $ 360 $ 224 $ 1,137 $ 940
Variable and Universal life first year premiums and
deposits (including COLI/BOLI) $ 306 $ 173 $ 932 $ 753
Total annuity deposits $3,570 $2,566 $12,230 $11,294
Mutual fund sales $1,254 $ 935 $ 4,130 $ 3,533
Earnings Per Share Calculation:
Weighted average common shares outstanding -- diluted 769.0 747.7 755.3 755.0
Operating earnings available to common shareholders
per common share -- diluted $ 1.04 $ 0.88 $ 4.33 $ 3.50
Net income available to common shareholders per common
share -- diluted $ 0.88 $ 0.68 $ 6.16 $ 3.65
MetLife, Inc.
Balance Sheet Data
December 31, 2005 (Unaudited) and December 31, 2004 (Audited)
(in millions)
At December 31,
-------------------------
2005 2004
--------- ---------
Balance Sheet Data:
General account assets $ 353,349 $ 270,039
Separate account assets 127,869 86,769
--------- ---------
Total assets $ 481,218 $ 356,808
========= =========
Policyholder liabilities (including amounts of closed block) $ 262,370 $ 196,792
Short-term debt 1,609 1,445
Long-term debt 9,888 7,412
Junior subordinated debt securities underlying common equity units 2,134 --
Shares subject to mandatory redemption 278 278
Other liabilities 47,969 41,288
Separate account liabilities 127,869 86,769
--------- ---------
Total liabilities 452,117 333,984
--------- ---------
Preferred stock, at par value 1 --
Common stock, at par value 8 8
Additional paid-in capital 17,274 15,037
Retained earnings 10,865 6,608
Treasury stock (959) (1,785)
Accumulated other comprehensive income 1,912 2,956
--------- ---------
Total stockholders' equity 29,101 22,824
--------- ---------
Total liabilities and stockholders' equity $ 481,218 $ 356,808
========= =========
MetLife, Inc.
Reconciliations of Net Income Available to Common Shareholders to Operating
Earnings Available to Common Shareholders
Unaudited
(in millions)
Three months ended Year ended
December 31, December 31,
------------------ ---------------------
2005 2004 2005 2004
----- ----- ------- -------
Total Institutional Operations
Net income available to common shareholders $ 280 $ 237 $ 1,562 $ 1,267
Net investment gains (losses), net of income taxes (97) (51) 112 83
Adjustments related to net investment gains (losses), net of income taxes (12) (21) 5 (5)
Cumulative effect of a change in accounting, net of income taxes -- -- -- (60)
----- ----- ------- -------
Operating earnings available to common shareholders $ 389 $ 309 $ 1,445 $ 1,249
===== ===== ======= =======
Institutional Operations
Group Life
Net income available to common shareholders $ 81 $ 52 $ 364 $ 373
Net investment gains (losses), net of income taxes (38) (43) (41) (25)
Adjustments related to net investment gains (losses), net of income taxes 1 -- 5 --
----- ----- ------- -------
Operating earnings available to common shareholders $ 118 $ 95 $ 400 $ 398
===== ===== ======= =======
Retirement & Savings
Net income available to common shareholders $ 147 $ 141 $ 943 $ 684
Net investment gains (losses), net of income taxes (61) (1) 137 98
Adjustments related to net investment gains (losses), net of income taxes (2) (15) 6 2
Cumulative effect of a change in accounting, net of income taxes -- -- -- (40)
----- ----- ------- -------
Operating earnings available to common shareholders $ 210 $ 157 $ 800 $ 624
===== ===== ======= =======
Non-Medical Health & Other
Net income available to common shareholders $ 52 $ 44 $ 255 $ 210
Net investment gains (losses), net of income taxes 2 (7) 16 10
Adjustments related to net investment gains (losses), net of income taxes (11) (6) (6) (7)
Cumulative effect of a change in accounting, net of income taxes -- -- -- (20)
----- ----- ------- -------
Operating earnings available to common shareholders $ 61 $ 57 $ 245 $ 227
===== ===== ======= =======
Total Individual Operations
Net income available to common shareholders $ 238 $ 200 $ 1,503 $ 885
Net investment gains (losses), net of income taxes (115) (29) 238 63
Adjustments related to net investment gains (losses), net of income taxes 39 22 8 19
----- ----- ------- -------
Operating earnings available to common shareholders $ 314 $ 207 $ 1,257 $ 803
===== ===== ======= =======
Individual Operations
Traditional Life
Net income available to common shareholders $ 94 $ 74 $ 645 $ 338
Net investment gains (losses), net of income taxes 15 16 315 81
Adjustments related to net investment gains (losses), net of income taxes 20 18 (9) 18
----- ----- ------- -------
Operating earnings available to common shareholders $ 59 $ 40 $ 339 $ 239
===== ===== ======= =======
Variable & Universal Life
Net income available to common shareholders $ 23 $ 39 $ 156 $ 125
Net investment gains (losses), net of income taxes (22) (1) (33) 2
Adjustments related to net investment gains (losses), net of income taxes 10 -- 13 (1)
Cumulative effect of a change in accounting, net of income taxes -- -- -- (11)
----- ----- ------- -------
Operating earnings available to common shareholders $ 35 $ 40 $ 176 $ 135
===== ===== ======= =======
Annuities
Net income available to common shareholders $ 119 $ 69 $ 675 $ 390
Net investment gains (losses), net of income taxes (99) (58) (33) (30)
Adjustments related to net investment gains (losses), net of income taxes 9 4 4 2
Cumulative effect of a change in accounting, net of income taxes -- -- -- 11
----- ----- ------- -------
Operating earnings available to common shareholders $ 209 $ 123 $ 704 $ 407
===== ===== ======= =======
Other
Net income available to common shareholders $ 2 $ 18 $ 27 $ 32
Net investment gains (losses), net of income taxes (9) 14 (11) 10
----- ----- ------- -------
Operating earnings available to common shareholders $ 11 $ 4 $ 38 $ 22
===== ===== ======= =======
Total Auto & Home
Net income available to common shareholders $ 79 $ 61 $ 224 $ 208
Net investment gains (losses), net of income taxes (2) (2) (8) (6)
----- ----- ------- -------
Operating earnings available to common shareholders $ 81 $ 63 $ 232 $ 214
===== ===== ======= =======
Auto & Home
Auto
Net income available to common shareholders $ 47 $ 29 $ 218 $ 160
Net investment gains (losses), net of income taxes (2) (1) (6) (5)
----- ----- ------- -------
Operating earnings available to common shareholders $ 49 $ 30 $ 224 $ 165
===== ===== ======= =======
Three months ended Year ended
December 31, December 31,
------------------- ---------------------
2005 2004 2005 2004
----- ----- ------- -------
Homeowners
Net income available to common shareholders $ 28 $ 27 $ 5 $ 43
Net investment gains (losses), net of income taxes (1) (1) (2) (1)
----- ----- ------- -------
Operating earnings available to common shareholders $ 29 $ 28 $ 7 $ 44
===== ===== ======= =======
Other
Net income available to common shareholders $ 4 $ 5 $ 1 $ 5
Net investment gains (losses), net of income taxes 1 -- -- --
----- ----- ------- -------
Operating earnings available to common shareholders $ 3 $ 5 $ 1 $ 5
===== ===== ======= =======
International
Net income available to common shareholders $ 30 $ 19 $ 192 $ 163
Net investment gains (losses), net of income taxes (4) (3) 4 16
Adjustments related to net investment gains (losses), net of income taxes (14) (4) (50) 21
Cumulative effect of a change in accounting, net of income taxes -- -- -- (30)
Discontinued operations, net of income taxes -- (4) 5 (9)
----- ----- ------- -------
Operating earnings available to common shareholders $ 48 $ 30 $ 233 $ 165
===== ===== ======= =======
Reinsurance
Net income available to common shareholders $ 28 $ 21 $ 92 $ 91
Net investment gains (losses), net of income taxes (2) (1) 14 14
Adjustments related to net investment gains (losses), net of income taxes (1) 1 (8) --
Cumulative effect of a change in accounting, net of income taxes -- -- -- --
----- ----- ------- -------
Operating earnings available to common shareholders $ 31 $ 21 $ 86 $ 77
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