(METLIFE LOGO)
FOURTH QUARTER
FINANCIAL SUPPLEMENT
DECEMBER 31, 2005
4
(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 FEBRUARY 9, 2006, FOR THE QUARTER ENDED DECEMBER
31, 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
----------------------------------------------------------------
December 31, March 31, June 30, September 30, December 31,
2004 2005 2005 2005 2005
----------------------------------------------------------------
Net income (1) $511 $987 $2,245 $773 $709
Preferred stock dividends 0 0 0 31 32
----------------------------------------------------------------
Net income available to common shareholders 511 987 2,245 742 677
Net investment gains (losses) (214) (21) 2,225 (23) (234)
Minority interest - net investment gains (losses) 5 (9) (2) (1) 3
Net investment gains (losses) tax benefit (provision) 71 9 (784) 9 85
----------------------------------------------------------------
Net investment gains (losses), net of income taxes (2) (3) (4) (138) (21) 1,439 (15) (146)
Adjustments related to policyholder benefits and
dividends (9) 70 (86) (55) (9)
Adjustments related to other expenses 5 (15) (9) 7 30
Adjustments related to tax benefit (provision) 1 (19) 32 18 (9)
----------------------------------------------------------------
Adjustments related to net investment gains (losses), net of
income taxes (5) (3) 36 (63) (30) 12
Cumulative effect of a change in accounting, net of income
taxes 0 0 0 0 0
Discontinued operations, net of income taxes (8) 150 (1) 7 12
----------------------------------------------------------------
Operating earnings available to common shareholders $660 $822 $870 (7) $780 (8) $799
================================================================
Net income available to common shareholders per common share -
diluted $0.68 $1.33 $3.02 $0.97 $0.88
Net investment gains (losses), net of income taxes (0.18) (0.03) 1.94 (0.02) (0.20)
Adjustments related to net investment gains (losses), net of
income taxes (0.01) 0.05 (0.09) (0.03) 0.02
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 (0.01) 0.20 0.00 0.01 0.02
----------------------------------------------------------------
Operating earnings available to common shareholders - diluted $0.88 $1.11 $1.17 $1.01 $1.04
================================================================
Weighted average common shares outstanding - diluted 747.7 739.6 743.1 768.7 769.0
Book value per common share (actual common shares outstanding) $31.16 $31.43 $35.60 $35.29 $35.72
Book value per common share, excluding accumulated other
comprehensive income (actual common shares outstanding) $27.12 $28.48 $31.41 $32.81 $33.20
Book value per common share - diluted (weighted average common
shares outstanding) $30.53 $31.15 $35.16 $34.75 $35.19
Book value per common share, excluding accumulated other
comprehensive income - diluted (weighted average common
shares outstanding) $26.57 $28.23 $31.02 $32.32 $32.70
----------------------------------------------------------------
For the Three Months Ended
----------------------------------------------------------------
December 31, March 31, June 30, September 30, December 31,
2004 2005 2005 2005 2005
----------------------------------------------------------------
Common shares outstanding, beginning of period 744.5 732.5 733.1 733.9 757.1
Treasury stock (12.0) 0.6 0.8 23.2 0.4
----------------------------------------------------------------
Common shares outstanding, end of period 732.5 733.1 733.9 757.1 757.5
Weighted average common shares outstanding - basic 742.3 734.0 736.5 759.8 761.1
Dilutive effect of convertible securities 0.0 0.0 0.0 0.0 0.0
Dilutive effect of stock options 5.4 5.6 6.4 8.6 7.7
Dilutive effect of LTPCP shares 0.0 0.0 0.2 0.3 0.2
----------------------------------------------------------------
Weighted average common shares outstanding - diluted 747.7 739.6 743.1 768.7 769.0
================================================================
Policyholder Trust Shares 321.3 315.4 310.9 307.8 298.8
SUPPLEMENTAL DATA
Adjusted long-term debt to total capital (6) 25.2% 24.2% 29.4% 28.3% 29.0%
----------------------------------------------------------------
(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 $2 million, $16 million, $8 million, $17 million
and $23 million, for the three months ended December 31, 2004, March 31,
2005, June 30, 2005, September 30, 2005 and December 31, 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 $2 million,
$12 million, $1,227 million, $30 million and $100 million, for the three
months ended December 31, 2004, March 31, 2005, June 30, 2005, September
30,2005 and December 31, 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 December 31, 2004, March 31, 2005, June 30,
2005, September 30, 2005 and December 31, 2005 consists of $6,669 million,
$6,657 million, $8,319 million, $8,297 million and $8,017 million of
long-term debt, respectively, $0, $0, $2,134, $2,134 and $2,134 million of
junior subordinated debt securities underlying common equity units, and
$111 million, $113 million, $115 million, $272 million and $1,073 million
of adjusted short-term debt, respectively. Non-recourse debt not included
in adjusted long-term debt consists of $743 million, $757 million, $985
million, $1,195 million and $1,871 million, respectively. Non-core
borrowings not included in adjusted short-term debt consist of $1,334
million, $1,007 million, $1,864 million, $1,031 million and $536 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 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 an
establishment of a liability associated with the Argentine pension
business.
(8) 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
--------------------------------------------------------------
December 31, March 31, June 30, September 30, December 31,
Unaudited (Dollars in millions) 2004 2005 2005 2005 2005
- ------------------------------------------------------------------------------------------------------------------------------------
ASSETS (1)
Fixed maturities, at fair value $176,377 $182,267 $184,830 $232,041 $230,875
Equity securities, at fair value 2,188 2,463 2,531 3,058 3,338
Mortgage and consumer loans 32,406 31,977 33,586 36,094 37,190
Policy loans 8,899 8,953 8,975 9,841 9,981
Real estate and real estate joint ventures 4,233 4,377 3,998 4,705 4,665
Other limited partnership interests 2,907 3,051 3,383 4,345 4,276
Short-term investments 2,662 2,550 2,169 4,481 3,306
Other invested assets 5,295 5,331 6,452 7,877 8,078
--------------------------------------------------------------
TOTAL INVESTMENTS 234,967 240,969 245,924 302,442 301,709
Cash and cash equivalents 4,048 3,920 13,601 6,950 4,018
Accrued investment income 2,338 2,433 2,450 3,299 3,036
Premiums and other receivables 6,695 7,514 7,821 14,391 12,186
Deferred policy acquisition costs 14,327 14,789 14,865 19,211 19,653
Assets of subsidiaries held-for-sale 410 32 33 0 0
Goodwill, net 633 612 614 4,564 4,797
Other assets 6,621 6,634 6,758 8,017 7,950
Separate account assets 86,769 85,786 89,459 124,044 127,869
--------------------------------------------------------------
TOTAL ASSETS $356,808 $362,689 $381,525 $482,918 $481,218
==============================================================
LIABILITIES AND EQUITY (1)
LIABILITIES
------------
Future policy benefits $100,154 $100,624 $103,175 $121,591 $123,204
Policyholder account balances 86,246 88,826 90,080 127,431 128,312
Other policyholder funds 7,251 7,523 7,650 8,521 8,331
Policyholder dividends payable 898 896 939 978 917
Policyholder dividend obligation 2,243 1,737 2,477 1,735 1,606
Short-term debt 1,445 1,120 1,979 1,303 1,609
Long-term debt 7,412 7,430 9,389 9,576 9,888
Junior subordinated debt securities underlying common
equity units 0 0 2,134 2,134 2,134
Shares subject to mandatory redemption 278 278 278 278 278
Liabilities of subsidiaries held-for-sale 268 27 28 0 0
Current income tax payable 421 31 635 97 69
Deferred income tax payable 2,473 2,414 3,201 1,456 1,706
Payables under securities loaned transactions 28,678 31,713 31,632 40,127 33,893
Other liabilities 9,448 11,246 10,298 14,890 12,301
Separate account liabilities 86,769 85,786 89,459 124,044 127,869
--------------------------------------------------------------
TOTAL LIABILITIES 333,984 339,651 353,354 454,161 452,117
--------------------------------------------------------------
EQUITY
-------
Preferred stock, at par value 0 0 1 1 1
Common stock, at par value 8 8 8 8 8
Additional paid-in capital 15,037 15,043 16,974 17,273 17,274
Retained earnings 6,608 7,595 9,841 10,582 10,865
Treasury stock (1,785) (1,764) (1,733) (981) (959)
Accumulated other comprehensive income 2,956 2,156 3,080 1,874 1,912
--------------------------------------------------------------
TOTAL STOCKHOLDERS' EQUITY 22,824 23,038 28,171 28,757 29,101
--------------------------------------------------------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $356,808 $362,689 $381,525 $482,918 $481,218
==============================================================
(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
-----------------------------------------------------------------
December 31, March 31, June 30, September 30, December 31,
Unaudited (Dollars in millions) 2004 2005 2005 2005 2005
- ------------------------------------------------------------------------------------------------------------------------------------
REVENUES
Premiums $5,800 $5,966 $6,034 $6,514 $6,346
Universal life and investment-type product policy
fees 747 791 813 1,112 1,112
Investment income, net 3,347 3,279 3,508 4,112 4,167
Other revenues 310 299 301 348 323
-----------------------------------------------------------------
10,204 10,335 10,656 12,086 11,948
-----------------------------------------------------------------
EXPENSES
Policyholder benefits and dividends 6,289 6,411 6,589 7,208 6,897
Interest credited to policyholder account balances 777 795 820 1,156 1,167
Interest credited to bank deposits 14 17 25 30 37
Interest expense 116 119 125 183 185
Other expenses 2,052 1,811 1,844 2,408 2,487
-----------------------------------------------------------------
9,248 9,153 9,403 10,985 10,773
-----------------------------------------------------------------
Operating earnings before provision (benefit) for
income taxes 956 1,182 1,253 1,101 1,175
Provision for income taxes 296 360 383 290 344
-----------------------------------------------------------------
Operating earnings 660 822 870 811 831
Preferred stock dividends 0 0 0 31 32
-----------------------------------------------------------------
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $660 $822 $870 (2) $780 (3) $799
=================================================================
NET INCOME RECONCILIATION
- --------------------------
Operating earnings available to common shareholders $660 $822 $870 $780 $799
Net investment gains (losses) (214) (21) 2,225 (23) (234)
Minority interest - net investment gains (losses) 5 (9) (2) (1) 3
Net investment gains (losses) tax benefit
(provision) 71 9 (784) 9 85
-----------------------------------------------------------------
Net investment gains (losses), net of income taxes (138) (21) 1,439 (15) (146)
Adjustments related to policyholder benefits and
dividends (9) 70 (86) (55) (9)
Adjustments related to other expenses 5 (15) (9) 7 30
Adjustments related to tax benefit (provision) 1 (19) 32 18 (9)
-----------------------------------------------------------------
Adjustments related to net investment gains (losses),
net of income taxes (1) (3) 36 (63) (30) 12
Cumulative effect of a change in accounting, net of
income taxes 0 0 0 0 0
Discontinued operations, net of income taxes (8) 150 (1) 7 12
-----------------------------------------------------------------
Net income available to common shareholders 511 987 2,245 742 677
Preferred stock dividends 0 0 0 31 32
-----------------------------------------------------------------
Net income $511 $987 $2,245 $773 $709
=================================================================
(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 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 an establishment of a liability
associated with the Argentine pension business.
(3) 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 DECEMBER 31, 2005
Corporate, Other
Unaudited (Dollars in millions) Consolidated Institutional Individual Auto & Home International Reinsurance & Eliminations
- ------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Total investments $301,709 $122,754 $122,015 $3,840 $13,642 $11,827 $27,631
Cash and cash equivalents 4,018 68 1,298 (116) 129 53 2,586
Accrued investment income 3,036 1,037 1,286 58 151 62 442
Premiums and other receivables 12,186 3,080 2,729 909 713 1,115 3,640
Deferred policy acquisition
costs 19,653 1,259 13,540 186 1,853 2,815 0
Assets of subsidiaries
held-for-sale 0 0 0 0 0 0 0
Goodwill, net 4,797 959 2,903 157 288 96 394
Other assets 7,950 1,791 3,271 363 302 67 2,156
Separate account assets 127,869 45,239 81,070 0 1,546 14 0
--------------------------------------------------------------------------------------------------
Total Assets $481,218 $176,187 $228,112 $5,397 $18,624 $16,049 $36,849
==================================================================================================
LIABILITIES AND EQUITY
LIABILITIES
- -------------
Future policy benefits $123,204 $49,181 $55,793 $3,456 $6,944 $4,515 $3,315
Policyholder account balances 128,312 54,180 59,011 0 5,279 5,504 4,338
Other policyholder funds 8,331 2,637 2,704 34 1,037 1,732 187
Policyholder dividends payable 917 0 917 0 0 0 0
Policyholder dividend obligation 1,606 0 1,606 0 0 0 0
Short-term debt 1,609 0 28 0 0 0 1,581
Long-term debt 9,888 33 182 0 53 800 8,820
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 69 (29) (310) (43) (67) 33 485
Deferred income tax payable 1,706 (1,024) 1,702 34 97 834 63
Payables under securities
loaned transactions 33,893 13,885 13,128 93 0 0 6,787
Other liabilities 12,301 2,554 2,678 671 942 1,286 4,170
Separate account liabilities 127,869 45,239 81,070 0 1,546 14 0
--------------------------------------------------------------------------------------------------
Total Liabilities 452,117 166,656 218,509 4,245 15,831 14,877 31,999
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 (1) 28,139 8,724 9,198 1,015 2,460 927 5,815
Treasury stock (959) 0 0 0 0 0 (959)
Accumulated other comprehensive
income 1,912 807 405 137 333 245 (15)
--------------------------------------------------------------------------------------------------
Total Stockholders' Equity 29,101 9,531 9,603 1,152 2,793 1,172 4,850
--------------------------------------------------------------------------------------------------
Total Liabilities and
Stockholders' Equity $481,218 $176,187 $228,112 $5,397 $18,624 $16,049 $36,849
==================================================================================================
(1) 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 DECEMBER 31, 2005
Corporate, Other
Unaudited (Dollars in millions) Consolidated Institutional Individual Auto & Home International Reinsurance & Eliminations
- ------------------------------------------------------------------------------------------------------------------------------------
REVENUES
Premiums $6,346 $2,643 $1,269 $729 $636 $1,062 $7
Universal life and
investment-type product
policy fees 1,112 197 750 0 165 0 0
Investment income, net 4,167 1,732 1,711 46 262 161 255
Other revenues 323 166 110 8 9 13 17
--------------------------------------------------------------------------------------------------
11,948 4,738 3,840 783 1,072 1,236 279
--------------------------------------------------------------------------------------------------
EXPENSES
Policyholder benefits and
dividends 6,897 3,025 1,940 456 600 860 16
Interest credited to
policyholder account balances 1,167 530 488 0 92 57 0
Capitalization of deferred
policy acquisition costs (1,044) (72) (409) (110) (141) (312) 0
Amortization of deferred policy
acquisition costs 724 49 303 113 43 212 4
Other expenses 3,029 618 1,049 213 441 371 337
--------------------------------------------------------------------------------------------------
10,773 4,150 3,371 672 1,035 1,188 357
--------------------------------------------------------------------------------------------------
Operating earnings before
provision (benefit) for
income taxes 1,175 588 469 111 37 48 (78)
Provision (benefit) for income
taxes 344 199 155 30 (11) 17 (46)
--------------------------------------------------------------------------------------------------
Operating earnings 831 389 314 81 48 31 (32)
Preferred stock dividends 32 0 0 0 0 0 32
--------------------------------------------------------------------------------------------------
OPERATING EARNINGS AVAILABLE TO
COMMON SHAREHOLDERS $799 $389 $314 $81 $48 $31 ($64)
==================================================================================================
NET INCOME RECONCILIATION
- ---------------------------
Operating earnings available to
common shareholders $799 $389 $314 $81 $48 $31 ($64)
Net investment gains
(losses) (234) (156) (180) (3) (7) (6) 118
Minority interest - net
investment gains (losses) 3 0 0 0 0 3 0
Net investment gains
(losses) tax benefit
(provision) 85 59 65 1 3 1 (44)
--------------------------------------------------------------------------------------------------
Net investment gains (losses),
net of income taxes (146) (97) (115) (2) (4) (2) 74
Adjustments related to
policyholder benefits
and dividends (9) (18) 30 0 (21) 0 0
Adjustments related to
other expenses 30 0 31 0 0 (1) 0
Adjustments related to
tax benefit (provision) (9) 6 (22) 0 7 0 0
--------------------------------------------------------------------------------------------------
Adjustments related to net
investment gains (losses),
net of income taxes (1) 12 (12) 39 0 (14) (1) 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 12 0 0 0 0 0 12
--------------------------------------------------------------------------------------------------
Net income available to common
shareholders 677 280 238 79 30 28 22
Preferred stock dividends 32 0 0 0 0 0 32
--------------------------------------------------------------------------------------------------
Net income $709 $280 $238 $79 $30 $28 $54
==================================================================================================
(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.
6
(METLIFE LOGO)
METLIFE, INC.
CONSOLIDATING STATEMENT OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
FOR THE THREE MONTHS ENDED DECEMBER 31, 2004
Corporate, Other
Unaudited (Dollars in millions) Consolidated Institutional Individual Auto & Home International Reinsurance & Eliminations
- -----------------------------------------------------------------------------------------------------------------------------------
REVENUES
Premiums $5,800 $2,518 $1,171 $737 $461 $917 ($4)
Universal life and
investment-type product
policy fees 747 177 480 0 90 0 0
Investment income, net 3,347 1,211 1,540 41 175 183 197
Other revenues 310 165 108 12 9 16 0
--------------------------------------------------------------------------------------------------
10,204 4,071 3,299 790 735 1,116 193
--------------------------------------------------------------------------------------------------
EXPENSES
Policyholder benefits and
dividends 6,289 2,785 1,811 497 448 752 (4)
Interest credited to
policyholder account balances 777 273 398 0 45 61 0
Capitalization of deferred
policy acquisition costs (732) (71) (283) (113) (117) (148) 0
Amortization of deferred
policy acquisition costs 498 43 218 113 40 80 4
Other expenses 2,416 573 844 210 279 340 170
--------------------------------------------------------------------------------------------------
9,248 3,603 2,988 707 695 1,085 170
--------------------------------------------------------------------------------------------------
Operating earnings before
provision (benefit) for
income taxes 956 468 311 83 40 31 23
Provision (benefit) for income
taxes 296 159 104 20 10 10 (7)
--------------------------------------------------------------------------------------------------
Operating earnings 660 309 207 63 30 21 30
Preferred stock dividends 0 0 0 0 0 0 0
--------------------------------------------------------------------------------------------------
OPERATING EARNINGS AVAILABLE
TO COMMON SHAREHOLDERS $660 $309 $207 $63 $30 $21 $30
==================================================================================================
NET INCOME RECONCILIATION
- ---------------------------
Operating earnings available to
common shareholders $660 $309 $207 $63 $30 $21 $30
Net investment gains
(losses) (214) (77) (42) (3) (4) (3) (85)
Minority interest - net
investment gains (losses) 5 0 4 0 0 1 0
Net investment gains
(losses) tax benefit
(provision) 71 26 9 1 1 1 33
--------------------------------------------------------------------------------------------------
Net investment gains (losses),
net of income taxes (138) (51) (29) (2) (3) (1) (52)
Adjustments related to
policyholder benefits and
dividends (9) (33) 30 0 (6) 0 0
Adjustments related to
other expenses 5 0 4 0 0 1 0
Adjustments related to tax
benefit (provision) 1 12 (12) 0 2 0 (1)
--------------------------------------------------------------------------------------------------
Adjustments related to net
investment gains (losses),
net of income taxes (1) (3) (21) 22 0 (4) 1 (1)
Cumulative effect of a change
in accounting, net of income
taxes 0 0 0 0 0 0 0
Discontinued operations, net
of income taxes (8) 0 0 0 (4) 0 (4)
--------------------------------------------------------------------------------------------------
Net income available to common
shareholders 511 237 200 61 19 21 (27)
Preferred stock dividends 0 0 0 0 0 0 0
--------------------------------------------------------------------------------------------------
Net income $511 $237 $200 $61 $19 $21 ($27)
==================================================================================================
(1) Adjustments related to net investment gains (losses), net of income taxes,
includes amortization of deferred policy acquisition costs, adjustments to
the policyholder dividend obligation and amounts allocable to certain
participating contracts.
7
(METLIFE LOGO)
METLIFE, INC.
CONSOLIDATING STATEMENT OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2005
Corporate, Other
Unaudited (Dollars in millions) Consolidated Institutional Individual Auto & Home International Reinsurance & Eliminations
- ------------------------------------------------------------------------------------------------------------------------------------
REVENUES
Premiums $24,860 $11,387 $4,502 $2,911 $2,186 $3,869 $5
Universal life and
investment-type product
policy fees 3,828 772 2,476 0 579 0 1
Investment income, net 15,066 6,051 6,571 181 844 606 813
Other revenues 1,271 653 477 33 20 58 30
--------------------------------------------------------------------------------------------------
45,025 18,863 14,026 3,125 3,629 4,533 849
--------------------------------------------------------------------------------------------------
EXPENSES
Policyholder benefits and
dividends 27,105 12,785 7,079 1,997 2,056 3,206 (18)
Interest credited to
policyholder account balances 3,938 1,665 1,775 0 278 220 0
Capitalization of deferred
policy acquisition costs (3,604) (278) (1,326) (455) (541) (1,004) 0
Amortization of deferred policy
acquisition costs 2,464 174 964 455 223 640 8
Other expenses 10,411 2,333 3,653 828 1,318 1,340 939
--------------------------------------------------------------------------------------------------
40,314 16,679 12,145 2,825 3,334 4,402 929
--------------------------------------------------------------------------------------------------
Operating earnings before
provision (benefit) for
income taxes 4,711 2,184 1,881 300 295 131 (80)
Provision (benefit) for income
taxes 1,377 739 624 68 62 45 (161)
--------------------------------------------------------------------------------------------------
Operating earnings 3,334 1,445 1,257 232 233 86 81
Preferred stock dividends 63 0 0 0 0 0 63
--------------------------------------------------------------------------------------------------
OPERATING EARNINGS AVAILABLE TO
COMMON SHAREHOLDERS $3,271(3) $1,445 $1,257 $232 $233 $86 $18
==================================================================================================
OPERATING RETURN ON COMMON
EQUITY (1) 14.4%
NET INCOME RECONCILIATION
- -------------------------
Operating earnings available to
common shareholders $3,271 $1,445 $1,257 $232 $233 $86 $18
Net investment gains (losses) 1,947 167 374 (12) 5 22 1,391
Minority interest - net
investment gains (losses) (9) 0 (4) 0 0 (5) 0
Net investment gains (losses)
tax benefit (provision) (681) (55) (132) 4 (1) (3) (494)
--------------------------------------------------------------------------------------------------
Net investment gains (losses),
net of income taxes 1,257 112 238 (8) 4 14 897
Adjustments related to
policyholder benefits and
dividends (80) 8 (11) 0 (77) 0 0
Adjustments related to other
expenses 13 0 23 0 0 (10) 0
Adjustments related to tax
benefit (provision) 22 (3) (4) 0 27 2 0
--------------------------------------------------------------------------------------------------
Adjustments related to net
investment gains (losses),
net of income taxes (2) (45) 5 8 0 (50) (8) 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 168 0 0 0 5 0 163
--------------------------------------------------------------------------------------------------
Net income available to common
shareholders 4,651 1,562 1,503 224 192 92 1,078
Preferred stock dividends 63 0 0 0 0 0 63
--------------------------------------------------------------------------------------------------
Net income $4,714 $1,562 $1,503 $224 $192 $92 $1,141
==================================================================================================
NET INCOME RETURN ON COMMON EQUITY
EXCLUDING AOCI(4) 20.4%
NET INCOME RETURN ON
COMMON EQUITY(4) 18.5%
(1) Operating return on common equity is defined as operating earnings
available to common shareholders divided by average GAAP common equity
excluding accumulated other comprehensive income.
(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 twelve months
ended December 31, 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 an 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.
(4) Net income return on common equity is defined as net income available to
common shareholders divided by average GAAP common equity.
8
(METLIFE LOGO)
METLIFE, INC.
CONSOLIDATING STATEMENT OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2004
Corporate, Other
Unaudited (Dollars in millions) Consolidated Institutional Individual Auto & Home International Reinsurance & Eliminations
- ------------------------------------------------------------------------------------------------------------------------------------
REVENUES
Premiums $22,200 $10,037 $4,204 $2,948 $1,690 $3,348 ($27)
Universal life and
investment-type product
policy fees 2,867 711 1,805 0 349 0 2
Investment income, net 12,610 4,644 6,070 171 585 564 576
Other revenues 1,198 654 422 35 23 56 8
--------------------------------------------------------------------------------------------------
38,875 16,046 12,501 3,154 2,647 3,968 559
--------------------------------------------------------------------------------------------------
EXPENSES
Policyholder benefits and
dividends 24,393 11,166 6,803 2,082 1,649 2,695 (2)
Interest credited to
policyholder account balances 2,997 1,016 1,618 0 151 212 0
Capitalization of deferred
policy acquisition costs (3,100) (346) (1,139) (454) (384) (777) 0
Amortization of deferred policy
acquisition costs 1,897 136 755 449 140 411 6
Other expenses 9,008 2,182 3,258 799 858 1,309 602
--------------------------------------------------------------------------------------------------
35,195 14,154 11,295 2,876 2,414 3,850 606
--------------------------------------------------------------------------------------------------
Operating earnings before
provision (benefit) for
income taxes 3,680 1,892 1,206 278 233 118 (47)
Provision (benefit) for income
taxes 1,038 643 403 64 68 41 (181)
--------------------------------------------------------------------------------------------------
Operating earnings 2,642 1,249 803 214 165 77 134
Preferred stock dividends 0 0 0 0 0 0 0
--------------------------------------------------------------------------------------------------
OPERATING EARNINGS AVAILABLE TO
COMMON SHAREHOLDERS $2,642 $1,249 $803 $214 $165 $77 $134
================================================================================================
OPERATING RETURN ON COMMON
EQUITY (1) 13.8%
NET INCOME RECONCILIATION
- -------------------------
Operating earnings available to
common shareholders $2,642 $1,249 $803 $214 $165 $77 $134
Net investment gains (losses) 244 131 81 (9) 23 33 (15)
Minority interest - net
investment gains (losses) (9) 0 4 0 0 (13) 0
Net investment gains (losses)
tax benefit (provision) (77) (48) (22) 3 (7) (6) 3
--------------------------------------------------------------------------------------------------
Net investment gains (losses),
net of income taxes 158 83 63 (6) 16 14 (12)
Adjustments related to
policyholder benefits and
dividends 64 (7) 39 0 32 0 0
Adjustments related to other
expenses (11) 0 (9) 0 0 (1) (1)
Adjustments related to tax
benefit (provision) (19) 2 (11) 0 (11) 1 0
--------------------------------------------------------------------------------------------------
Adjustments related to net
investment gains (losses),
net of income taxes (2) 34 (5) 19 0 21 0 (1)
Cumulative effect of a change in
accounting, net of income
taxes (4) (86) (60) 0 0 (30) 0 4
Discontinued operations, net of
income taxes 10 0 0 0 (9) 0 19
--------------------------------------------------------------------------------------------------
Net income available to common
shareholders 2,758 1,267 885 208 163 91 144
Preferred stock dividends 0 0 0 0 0 0 0
--------------------------------------------------------------------------------------------------
Net income $2,758 $1,267 $885 $208 $163 $91 $144
==================================================================================================
NET INCOME RETURN ON COMMON EQUITY
EXCLUDING AOCI (3) 14.4%
NET INCOME RETURN ON COMMON
EQUITY (3) 12.5%
(1) Operating return on common equity is defined as operating earnings
available to common shareholders divided by average GAAP common equity
excluding accumulated other comprehensive income.
(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) Net income return on common equity is defined as net income available to
common shareholders divided by average GAAP common equity.
(4) The cumulative effect of a change in accounting, net of income taxes 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.
9
(METLIFE LOGO)
SUMMARY OF SEGMENT OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS (1)
For the Three Months Ended
------------------------------------------------------------------------------
December 31, March 31, June 30, September 30, December 31,
Unaudited (Dollars in millions) 2004 2005 2005 2005 2005
- -------------------------------------------------------------------------------------------------------------------
INSTITUTIONAL OPERATIONS $309 $324 $346 $386 $389
INDIVIDUAL OPERATIONS 207 321 291 331 314
AUTO & HOME OPERATIONS 63 76 101 (26) 81
INTERNATIONAL OPERATIONS 30 68 51 66 48
REINSURANCE OPERATIONS 21 25 4 26 31
CORPORATE, OTHER & ELIMINATIONS 30 8 77 (3) (64)
------------------------------------------------------------------------------
CONSOLIDATED $660 $822 $870(2) $780(3) $799
==============================================================================
(1) 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 &
Eliminations, page 37. A reconciliation of operating earnings available to
common shareholders to net income for MetLife, Inc., Consolidated, appears
on page 4.
(2) 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 an establishment of a
liability associated with the Argentine pension business.
(3) 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
----------------------------------------------------------------------
December 31, March 31, June 30, September 30, December 31,
Institutional Operations 2004 2005 2005 2005 2005
- ------------------------------------------------------------------------------------------------------------------------------------
REVENUES
Premiums $2,518 $2,844 $2,834 $3,066 $2,643
Universal life and investment-type product policy fees 177 193 185 197 197
Investment income, net 1,211 1,248 1,364 1,707 1,732
Other revenues 165 161 163 163 166
----------------------------------------------------------------------
4,071 4,446 4,546 5,133 4,738
----------------------------------------------------------------------
EXPENSES
Policyholder benefits and dividends 2,785 3,146 3,159 3,455 3,025
Interest credited to policyholder account balances 273 301 326 508 530
Other expenses 545 510 537 587 595
----------------------------------------------------------------------
3,603 3,957 4,022 4,550 4,150
----------------------------------------------------------------------
Operating earnings before provision (benefit) for income
taxes 468 489 524 583 588
Provision (benefit) for income taxes 159 165 178 197 199
----------------------------------------------------------------------
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $309 $324 $346 $386 $389
======================================================================
NET INCOME RECONCILIATION
- ----------------------------------------------------------
Operating earnings available to common shareholders $309 $324 $346 $386 $389
Net investment gains (losses) (77) 5 415 (97) (156)
Minority interest - net investment gains (losses) 0 0 0 0 0
Net investment gains (losses) tax benefit
(provision) 26 (3) (147) 36 59
----------------------------------------------------------------------
Net investment gains (losses), net of income taxes (51) 2 268 (61) (97)
Adjustments related to policyholder benefits and
dividends (33) 35 (37) 28 (18)
Adjustments related to other expenses 0 0 0 0 0
Adjustments related to tax benefit (provision) 12 (12) 13 (10) 6
----------------------------------------------------------------------
Adjustments related to net investment gains (losses), net
of income taxes (1) (21) 23 (24) 18 (12)
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 237 349 590 343 280
Preferred stock dividends 0 0 0 0 0
----------------------------------------------------------------------
Net income $237 $349 $590 $343 $280
----------------------------------------------------------------------
For the Year-to-Date Period Ended
---------------------------------
December 31, December 31,
Institutional Operations 2004 2005
- -----------------------------------------------------------------------------------------------
REVENUES
Premiums $10,037 $11,387
Universal life and investment-type product policy fees 711 772
Investment income, net 4,644 6,051
Other revenues 654 653
---------------------------------
16,046 18,863
---------------------------------
EXPENSES
Policyholder benefits and dividends 11,166 12,785
Interest credited to policyholder account balances 1,016 1,665
Other expenses 1,972 2,229
---------------------------------
14,154 16,679
---------------------------------
Operating earnings before provision (benefit) for income
taxes 1,892 2,184
Provision (benefit) for income taxes 643 739
---------------------------------
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $1,249 $1,445
=================================
NET INCOME RECONCILIATION
- ----------------------------------------------------------
Operating earnings available to common shareholders $1,249 $1,445
Net investment gains (losses) 131 167
Minority interest - net investment gains (losses) 0 0
Net investment gains (losses) tax benefit
(provision) (48) (55)
---------------------------------
Net investment gains (losses), net of income taxes 83 112
Adjustments related to policyholder benefits and
dividends (7) 8
Adjustments related to other expenses 0 0
Adjustments related to tax benefit (provision) 2 (3)
---------------------------------
Adjustments related to net investment gains (losses), net
of income taxes (1) (5) 5
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 1,267 1,562
Preferred stock dividends 0 0
---------------------------------
Net income $1,267 $1,562
---------------------------------
(1) Adjustments related to net investment gains (losses), net of income taxes,
includes amortization of deferred policy acquisition costs and amounts
allocable to certain participating contracts.
11
(METLIFE LOGO)
INSTITUTIONAL OPERATIONS
STATEMENTS OF OPERATING EARNINGS
AVAILABLE TO COMMON SHAREHOLDERS - PRODUCT LEVEL
UNAUDITED (DOLLARS IN MILLIONS)
For the Three Months Ended
----------------------------------------------------------------------
December 31, March 31, June 30, September 30, December 31,
Group Life 2004 2005 2005 2005 2005
- ------------------------------------------------------------------------------------------------------------------------------------
REVENUES
Premiums $1,283 $1,364 $1,435 $1,485 $1,359
Universal life and investment-type product policy fees 171 187 180 192 194
Investment income, net 255 271 281 296 296
Other revenues 14 13 14 11 10
----------------------------------------------------------------------
1,723 1,835 1,910 1,984 1,859
----------------------------------------------------------------------
EXPENSES
Policyholder benefits and dividends 1,324 1,444 1,519 1,542 1,398
Interest credited to policyholder account balances 101 99 105 119 125
Other expenses 154 146 159 168 157
----------------------------------------------------------------------
1,579 1,689 1,783 1,829 1,680
----------------------------------------------------------------------
Operating earnings before provision (benefit) for income
taxes 144 146 127 155 179
Provision (benefit) for income taxes 49 49 44 53 61
----------------------------------------------------------------------
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $95 $97 $83 $102 $118
======================================================================
Net investment gains (losses), net of income taxes (43) (9) (1) 7 (38)
Adjustments related to net investment gains (losses), net
of income taxes 0 0 0 4 1
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 52 88 82 113 81
Preferred stock dividends 0 0 0 0 0
----------------------------------------------------------------------
Net income $52 $88 $82 $113 $81
----------------------------------------------------------------------
For the Year-to-Date Period Ended
---------------------------------
December 31, December 31,
Group Life 2004 2005
- -----------------------------------------------------------------------------------------------
REVENUES
Premiums $5,201 $5,643
Universal life and investment-type product policy fees 685 753
Investment income, net 1,040 1,144
Other revenues 57 48
---------------------------------
6,983 7,588
---------------------------------
EXPENSES
Policyholder benefits and dividends 5,437 5,903
Interest credited to policyholder account balances 402 448
Other expenses 540 630
---------------------------------
6,379 6,981
---------------------------------
Operating earnings before provision (benefit) for income
taxes 604 607
Provision (benefit) for income taxes 206 207
---------------------------------
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $398 $400
=================================
Net investment gains (losses), net of income taxes (25) (41)
Adjustments related to net investment gains (losses), net
of income taxes 0 5
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 373 364
Preferred stock dividends 0 0
---------------------------------
Net income $373 $364
---------------------------------
12
(METLIFE LOGO)
INSTITUTIONAL OPERATIONS
STATEMENTS OF OPERATING EARNINGS
AVAILABLE TO COMMON SHAREHOLDERS - PRODUCT LEVEL
UNAUDITED (DOLLARS IN MILLIONS)
For the Three Months Ended
----------------------------------------------------------------------
December 31, March 31, June 30, September 30, December 31,
Retirement & Savings 2004 2005 2005 2005 2005
- ------------------------------------------------------------------------------------------------------------------------------------
REVENUES
Premiums $300 $496 $384 $557 $234
Universal life and investment-type product policy fees 6 6 5 5 3
Investment income, net 831 846 926 1,255 1,273
Other revenues 56 59 59 63 67
----------------------------------------------------------------------
1,193 1,407 1,374 1,880 1,577
----------------------------------------------------------------------
EXPENSES
Policyholder benefits and dividends 675 864 751 1,041 743
Interest credited to policyholder account balances 172 202 221 389 405
Other expenses 110 93 87 126 113
----------------------------------------------------------------------
957 1,159 1,059 1,556 1,261
----------------------------------------------------------------------
Operating earnings before provision (benefit) for income
taxes 236 248 315 324 316
Provision (benefit) for income taxes 79 83 106 108 106
----------------------------------------------------------------------
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $157 $165 $209 $216 $210
======================================================================
Net investment gains (losses), net of income taxes (1) 12 231 (45) (61)
Adjustments related to net investment gains (losses), net
of income taxes (15) 11 (10) 7 (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 141 188 430 178 147
Preferred stock dividends 0 0 0 0 0
----------------------------------------------------------------------
Net income $141 $188 $430 $178 $147
----------------------------------------------------------------------
For the Year-to-Date Period Ended
---------------------------------
December 31, December 31,
Retirement & Savings 2004 2005
- -----------------------------------------------------------------------------------------------
REVENUES
Premiums $1,297 $1,671
Universal life and investment-type product policy fees 26 19
Investment income, net 3,131 4,300
Other revenues 231 248
---------------------------------
4,685 6,238
---------------------------------
EXPENSES
Policyholder benefits and dividends 2,739 3,399
Interest credited to policyholder account balances 614 1,217
Other expenses 394 419
---------------------------------
3,747 5,035
---------------------------------
Operating earnings before provision (benefit) for income
taxes 938 1,203
Provision (benefit) for income taxes 314 403
---------------------------------
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $624 $800
=================================
Net investment gains (losses), net of income taxes 98 137
Adjustments related to net investment gains (losses), net
of income taxes 2 6
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 684 943
Preferred stock dividends 0 0
---------------------------------
Net income $684 $943
---------------------------------
13
(METLIFE LOGO)
INSTITUTIONAL OPERATIONS
STATEMENTS OF OPERATING EARNINGS
AVAILABLE TO COMMON SHAREHOLDERS - PRODUCT LEVEL
UNAUDITED (DOLLARS IN MILLIONS)
For the Three Months Ended
----------------------------------------------------------------------
December 31, March 31, June 30, September 30, December 31,
Non-Medical Health & Other 2004 2005 2005 2005 2005
- ------------------------------------------------------------------------------------------------------------------------------------
REVENUES
Premiums $935 $984 $1,015 $1,024 $1,050
Universal life and investment-type product policy fees 0 0 0 0 0
Investment income, net 125 131 157 156 163
Other revenues 95 89 90 89 89
----------------------------------------------------------------------
1,155 1,204 1,262 1,269 1,302
----------------------------------------------------------------------
EXPENSES
Policyholder benefits and dividends 786 838 889 872 884
Interest credited to policyholder account balances 0 0 0 0 0
Other expenses 281 271 291 293 325
----------------------------------------------------------------------
1,067 1,109 1,180 1,165 1,209
----------------------------------------------------------------------
Operating earnings before provision (benefit) for income
taxes 88 95 82 104 93
Provision (benefit) for income taxes 31 33 28 36 32
----------------------------------------------------------------------
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $57 $62 $54 $68 $61
======================================================================
Net investment gains (losses), net of income taxes (7) (1) 38 (23) 2
Adjustments related to net investment gains (losses), net
of income taxes (6) 12 (14) 7 (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 44 73 78 52 52
Preferred stock dividends 0 0 0 0 0
----------------------------------------------------------------------
Net income $44 $73 $78 $52 $52
----------------------------------------------------------------------
For the Year-to-Date Period Ended
---------------------------------
December 31, December 31,
Non-Medical Health & Other 2004 2005
- -----------------------------------------------------------------------------------------------
REVENUES
Premiums $3,539 $4,073
Universal life and investment-type product policy fees 0 0
Investment income, net 473 607
Other revenues 366 357
---------------------------------
4,378 5,037
---------------------------------
EXPENSES
Policyholder benefits and dividends 2,990 3,483
Interest credited to policyholder account balances 0 0
Other expenses 1,038 1,180
---------------------------------
4,028 4,663
---------------------------------
Operating earnings before provision (benefit) for income
taxes 350 374
Provision (benefit) for income taxes 123 129
---------------------------------
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $227 $245
=================================
Net investment gains (losses), net of income taxes 10 16
Adjustments related to net investment gains (losses), net
of income taxes (7) (6)
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 210 255
Preferred stock dividends 0 0
---------------------------------
Net income $210 $255
---------------------------------
14
(METLIFE LOGO)
INSTITUTIONAL OPERATIONS
PREMIUMS, FEES AND OTHER REVENUES BY PRODUCT
AND ADDITIONAL STATISTICAL INFORMATION
For the Three Months Ended
----------------------------------------------------------------------
December 31, March 31, June 30, September 30, December 31,
Unaudited (Dollars in millions) 2004 2005 2005 2005 2005
- ------------------------------------------------------------------------------------------------------------------------------------
PREMIUMS, FEES AND OTHER REVENUES BY PRODUCT (1)
Group Life $1,468 $1,564 $1,629 $1,688 $1,563
Retirement & Savings 362 561 448 625 304
Non-Medical Health & Other 1,030 1,073 1,105 1,113 1,139
----------------------------------------------------------------------
Total Premiums, Fees and Other Revenues $2,860 $3,198 $3,182 $3,426 $3,006
======================================================================
Group Disability (Included in Non-Medical Health & Other) $312 $320 $331 $325 $335
ADDITIONAL STATISTICAL INFORMATION
INCURRED LOSS RATIO (MORTALITY EXPERIENCE):
Term Life 89.8% 94.2% 94.7% 91.5% 89.3%
INCURRED LOSS RATIO (MORBIDITY EXPERIENCE):
Group Disability 95.7% 89.5% 83.5% 95.0% 91.1%
NUMBER OF SALES REPRESENTATIVES 762 783 778 787 761
----------------------------------------------------------------------
(1) 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 $1,554 $1,648 $1,633 $1,699 $1,655
Retirement & Savings 362 561 448 625 304
Non-Medical Health & Other 1,024 1,080 1,104 1,116 1,146
----------------------------------------------------------------------
Total Premiums, Fees and Other Revenues $2,940 $3,289 $3,185 $3,440 $3,105
----------------------------------------------------------------------
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
For the Three Months Ended
-------------------------------------------------------------------------
December 31, March 31, June 30, September 30, December 31,
Group Life 2004 2005 2005 2005 2005
- ---------------------------------------------------------------------------------------------------------
Balance, beginning of period $15,134 $15,200 $15,354 $15,449 $16,290
Premiums and deposits 2,488 2,744 2,921 2,921 2,681
Interest on reserves 137 137 144 159 166
Surrenders and withdrawals (1,115) (1,159) (1,324) (1,263) (1,180)
Benefits and reserves (1,313) (1,444) (1,519) (1,295) (1,397)
Other (131) (124) (127) 319 (1) (160)
-------------------------------------------------------------------------
Balance, end of period $15,200 $15,354 $15,449 $16,290 $16,400
-------------------------------------------------------------------------
For the Three Months Ended
------------------------------------------------------------------------
December 31, March 31, June 30, September 30, December 31,
Retirement & Savings 2004 2005 2005 2005 2005
- --------------------------------------------------------------------------------------------------------
Balance, beginning of period $46,332 $47,758 $49,233 $51,020 $77,933
Premiums and deposits 2,729 2,750 2,122 2,751 3,282
Interest on reserves 610 630 650 933 937
Surrenders and withdrawals (1,651) (876) (1,786) (2,604) (2,378)
Benefits and reserves (512) (501) (508) (671) (655)
Other 250 (528) 1,309 26,504 (1) (714)
------------------------------------------------------------------------
Balance, end of period $47,758 $49,233 $51,020 $77,933 $78,405
------------------------------------------------------------------------
For the Three Months Ended
------------------------------------------------------------------------
December 31, March 31, June 30, September 30, December 31,
Non-Medical Health & Other 2004 2005 2005 2005 2005
- --------------------------------------------------------------------------------------------------------
Balance, beginning of period $7,344 $7,563 $7,721 $7,968 $8,321
Premiums and deposits 912 952 978 996 1,023
Interest on reserves 62 65 66 74 76
Surrenders and withdrawals 18 19 23 21 20
Benefits and reserves (809) (850) (880) (917) (915)
Other 36 (28) 60 179 (1) 31
------------------------------------------------------------------------
Balance, end of period $7,563 $7,721 $7,968 $8,321 $8,556
------------------------------------------------------------------------
SEPARATE ACCOUNT LIABILITIES
For the Three Months Ended
------------------------------------------------------------------------
December 31, March 31, June 30, September 30, December 31,
Group Life 2004 2005 2005 2005 2005
- --------------------------------------------------------------------------------------------------------
Balance, beginning of period $8,337 $8,192 $7,976 $8,050 $9,931
Premiums and deposits 133 114 120 232 706
Investment performance 63 168 40 219 29
Surrenders and withdrawals (341) (498) (86) (108) (121)
Policy charges 0 0 0 (7) (7)
Other 0 0 0 1,545 (1) 1
------------------------------------------------------------------------
Balance, end of period $8,192 $7,976 $8,050 $9,931 $10,539
------------------------------------------------------------------------
For the Three Months Ended
------------------------------------------------------------------------
December 31, March 31, June 30, September 30, December 31,
Retirement & Savings 2004 2005 2005 2005 2005
- --------------------------------------------------------------------------------------------------------
Balance, beginning of period $31,173 $32,055 $30,654 $32,105 $34,508
Premiums and deposits 915 1,587 965 1,108 1,204
Investment performance 1,262 (1,141) 1,890 538 527
Surrenders and withdrawals (1,287) (1,827) (1,351) (2,029) (1,775)
Policy charges (22) (25) (26) (23) (30)
Other 14 5 (27) 2,809 (1) (60)
------------------------------------------------------------------------
Balance, end of period $32,055 $30,654 $32,105 $34,508 $34,374
------------------------------------------------------------------------
For the Three Months Ended
------------------------------------------------------------------------
December 31, March 31, June 30, September 30, December 31,
Non-Medical Health & Other 2004 2005 2005 2005 2005
- --------------------------------------------------------------------------------------------------------
Balance, beginning of period $200 $214 $243 $276 $298
Premiums and deposits 76 88 85 81 78
Investment performance (45) (108) 191 66 (34)
Surrenders and withdrawals (18) (19) (23) (21) (19)
Policy charges (28) (17) (18) (18) (15)
Other 29 85 (202) (86) 18
------------------------------------------------------------------------
Balance, end of period $214 $243 $276 $298 $326
------------------------------------------------------------------------
(1) Includes the beginning balances of Travelers of $771 million,
$27,661 million and $347 million for Group Life, Retirement & Savings and
Non-Medical Health & Other, respectively, in Future Policy Benefits and
Policyholder Account Balances and $1,545 million and $2,428 million 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
----------------------------------------------------------------------
December 31, March 31, June 30, September 30, December 31,
Unaudited (Dollars in millions) 2004 2005 2005 2005 2005
- --------------------------------------------------------------------------------------------------------------------------
OTHER EXPENSES BY MAJOR CATEGORY
Direct and allocated expenses $418 $380 $396 $417 $431
Pension and other post-retirement benefit costs 18 20 18 19 19
Premium taxes and other taxes, licenses and fees 33 32 41 46 53
----------------------------------------------------------------------
Sub-total Insurance Expenses 469 432 455 482 503
Commissions and other expenses 76 78 82 105 92
----------------------------------------------------------------------
Total Other Expenses $545 $510 $537 $587 $595
----------------------------------------------------------------------
17
(METLIFE LOGO)
INSTITUTIONAL OPERATIONS
SPREADS BY PRODUCT
UNAUDITED
For the Three Months Ended
----------------------------------------------------------------------
December 31, March 31, June 30, September 30, December 31,
Group Life 2004 2005 2005 2005 2005
- --------------------------------------------------------------------------------------------------------
ANNUALIZED GENERAL ACCOUNT
SPREADS BY SEGMENT (%)
Investment income yield 5.47% 5.68% 5.86% 5.89% 5.98%
Average crediting rate 3.57% 3.65% 3.78% 3.92% 4.07%
----------------------------------------------------------------------
Spread 1.90% 2.03% 2.08% 1.97% 1.91%
----------------------------------------------------------------------
For the Three Months Ended
----------------------------------------------------------------------
December 31, March 31, June 30, September 30, December 31,
Retirement & Savings 2004 2005 2005 2005 2005
- --------------------------------------------------------------------------------------------------------
ANNUALIZED GENERAL ACCOUNT
SPREADS BY SEGMENT (%)
Investment income yield 7.36% 7.12% 7.66% 6.57% 6.59%
Average crediting rate 5.34% 5.47% 5.51% 4.97% 5.11%
----------------------------------------------------------------------
Spread 2.02% 1.65% 2.15% 1.60% 1.48%
----------------------------------------------------------------------
For the Three Months Ended
----------------------------------------------------------------------
December 31, March 31, June 30, September 30, December 31,
Non-Medical Health & Other 2004 2005 2005 2005 2005
- --------------------------------------------------------------------------------------------------------
ANNUALIZED GENERAL ACCOUNT
SPREADS BY SEGMENT (%)
Investment income yield 7.96% 7.55% 9.17% 8.19% 8.25%
Average crediting rate 4.87% 4.92% 4.94% 4.93% 4.95%
----------------------------------------------------------------------
Spread 3.09% 2.63% 4.23% 3.26% 3.30%
----------------------------------------------------------------------
18
(METLIFE LOGO)
INDIVIDUAL OPERATIONS
STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS - TOTAL
UNAUDITED (DOLLARS IN MILLIONS)
For the Three Months Ended
----------------------------------------------------------------------
December 31, March 31, June 30, September 30, December 31,
Individual Operations 2004 2005 2005 2005 2005
- ------------------------------------------------------------------------------------------------------------------------------------
REVENUES
Premiums $1,171 $1,028 $1,065 $1,140 $1,269
Universal life and investment-type product policy fees 480 479 501 746 750
Investment income, net 1,540 1,538 1,571 1,751 1,711
Other revenues 108 112 105 150 110
----------------------------------------------------------------------
3,299 3,157 3,242 3,787 3,840
----------------------------------------------------------------------
EXPENSES
Policyholder benefits and dividends 1,811 1,636 1,733 1,770 1,940
Interest credited to policyholder account balances 398 392 395 500 488
Capitalization of deferred policy acquisition costs (283) (254) (279) (384) (409)
Amortization of deferred policy acquisition costs 218 182 169 310 303
Other expenses 844 720 788 1,096 1,049
----------------------------------------------------------------------
2,988 2,676 2,806 3,292 3,371
----------------------------------------------------------------------
Operating earnings before provision (benefit) for income
taxes 311 481 436 495 469
Provision (benefit) for income taxes 104 160 145 164 155
----------------------------------------------------------------------
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $207 $321 $291 $331 $314
======================================================================
NET INCOME RECONCILIATION
- ----------------------------------------------------------
Operating earnings available to common shareholders $207 $321 $291 $331 $314
Net investment gains (losses) (42) 59 501 (6) (180)
Minority interest - net investment gains (losses) 4 (4) 0 0 0
Net investment gains (losses) tax benefit
(provision) 9 (23) (174) 0 65
----------------------------------------------------------------------
Net investment gains (losses), net of income taxes (29) 32 327 (6) (115)
Adjustments related to policyholder benefits and
dividends 30 21 (33) (29) 30
Adjustments related to other expenses 4 2 (21) 11 31
Adjustments related to tax benefit (provision) (12) (8) 19 7 (22)
----------------------------------------------------------------------
Adjustments related to net investment gains (losses), net
of income taxes (1) 22 15 (35) (11) 39
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 200 368 583 314 238
Preferred stock dividends 0 0 0 0 0
----------------------------------------------------------------------
Net income $200 $368 $583 $314 $238
----------------------------------------------------------------------
For the Year-to-Date Period Ended
---------------------------------
December 31, December 31,
Individual Operations 2004 2005
- -----------------------------------------------------------------------------------------------
REVENUES
Premiums $4,204 $4,502
Universal life and investment-type product policy fees 1,805 2,476
Investment income, net 6,070 6,571
Other revenues 422 477
---------------------------------
12,501 14,026
---------------------------------
EXPENSES
Policyholder benefits and dividends 6,803 7,079
Interest credited to policyholder account balances 1,618 1,775
Capitalization of deferred policy acquisition costs (1,139) (1,326)
Amortization of deferred policy acquisition costs 755 964
Other expenses 3,258 3,653
---------------------------------
11,295 12,145
---------------------------------
Operating earnings before provision (benefit) for income
taxes 1,206 1,881
Provision (benefit) for income taxes 403 624
---------------------------------
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $803 $1,257
=================================
NET INCOME RECONCILIATION
- ----------------------------------------------------------
Operating earnings available to common shareholders $803 $1,257
Net investment gains (losses) 81 374
Minority interest - net investment gains (losses) 4 (4)
Net investment gains (losses) tax benefit
(provision) (22) (132)
---------------------------------
Net investment gains (losses), net of income taxes 63 238
Adjustments related to policyholder benefits and
dividends 39 (11)
Adjustments related to other expenses (9) 23
Adjustments related to tax benefit (provision) (11) (4)
---------------------------------
Adjustments related to net investment gains (losses), net
of income taxes (1) 19 8
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 885 1,503
Preferred stock dividends 0 0
---------------------------------
Net income $885 $1,503
---------------------------------
(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.
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
--------------------------------------------------------------- --------------------------
December 31, March 31, June 30, September 30, December 31, December 31, December 31,
Traditional Life 2004 2005 2005 2005 2005 2004 2005
- ------------------------------------------------------------------------------------------------------ --------------------------
REVENUES
Premiums $ 1,123 $ 965 $ 992 $ 1,020 $ 1,139 $ 4,078 $ 4,116
Universal life and investment-type
product policy fees 0 0 0 0 0 0 0
Investment income, net 844 842 832 838 815 3,392 3,327
Other revenues 4 2 0 1 1 6 4
--------------------------------------------------------------- ---------------------------
1,971 1,809 1,824 1,859 1,955 7,476 7,447
--------------------------------------------------------------- ---------------------------
EXPENSES
Policyholder benefits and dividends 1,644 1,447 1,523 1,468 1,648 6,181 6,086
Interest credited to policyholder
account balances 0 0 0 0 0 0 0
Capitalization of deferred policy
acquisition costs (50) (43) (60) (47) (53) (177) (203)
Amortization of deferred policy
acquisition costs 74 52 48 58 46 233 204
Other expenses 241 185 209 230 224 874 848
--------------------------------------------------------------- ---------------------------
1,909 1,641 1,720 1,709 1,865 7,111 6,935
--------------------------------------------------------------- ---------------------------
Operating earnings before provision
(benefit) for income taxes 62 168 104 150 90 365 512
Provision (benefit) for income taxes 22 56 36 50 31 126 173
--------------------------------------------------------------- ---------------------------
OPERATING EARNINGS AVAILABLE TO
COMMON SHAREHOLDERS $ 40 $ 112 $ 68 $ 100 $ 59 $ 239 $ 339
=============================================================== ===========================
Net investment gains (losses), net
of income taxes 16 45 224 31 15 81 315
Adjustments related to net
investment gains (losses), net of
income taxes 18 15 (22) (22) 20 18 (9)
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 74 172 270 109 94 338 645
Preferred stock dividends 0 0 0 0 0 0 0
--------------------------------------------------------------- ---------------------------
Net income $ 74 $ 172 $ 270 $ 109 $ 94 $ 338 $ 645
--------------------------------------------------------------- ---------------------------
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
--------------------------------------------------------------- --------------------------
December 31, March 31, June 30, September 30, December 31, December 31, December 31,
Variable & Universal Life 2004 2005 2005 2005 2005 2004 2005
- ------------------------------------------------------------------------------------------------------ --------------------------
REVENUES
Premiums $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Universal life and investment-type
product policy fees 272 265 277 384 382 1,060 1,308
Investment income, net 149 152 151 196 190 579 689
Other revenues (1) 0 (3) 0 (1) 1 (4)
--------------------------------------------------------------- --------------------------
420 417 425 580 571 1,640 1,993
--------------------------------------------------------------- --------------------------
EXPENSES
Policyholder benefits and dividends 56 93 97 120 120 307 430
Interest credited to policyholder
account balances 114 114 117 145 146 460 522
Capitalization of deferred policy
acquisition costs (79) (65) (72) (133) (136) (309) (406)
Amortization of deferred policy
acquisition costs 82 49 64 105 113 255 331
Other expenses 186 148 160 266 275 723 849
--------------------------------------------------------------- --------------------------
359 339 366 503 518 1,436 1,726
--------------------------------------------------------------- --------------------------
Operating earnings before provision
(benefit) for income taxes 61 78 59 77 53 204 267
Provision (benefit) for income taxes 21 27 20 26 18 69 91
--------------------------------------------------------------- --------------------------
OPERATING EARNINGS AVAILABLE TO
COMMON SHAREHOLDERS $ 40 $ 51 $ 39 $ 51 $ 35 $ 135 $ 176
=============================================================== ==========================
Net investment gains (losses), net
of income taxes (1) (8) 9 (12) (22) 2 (33)
Adjustments related to net
investment gains (losses), net of
income taxes 0 (2) (2) 7 10 (1) 13
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 39 41 46 46 23 125 156
Preferred stock dividends 0 0 0 0 0 0 0
--------------------------------------------------------------- --------------------------
Net income $ 39 $ 41 $ 46 $ 46 $ 23 $ 125 $ 156
--------------------------------------------------------------- --------------------------
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
--------------------------------------------------------------- --------------------------
December 31, March 31, June 30, September 30, December 31, December 31, December 31,
Annuities 2004 2005 2005 2005 2005 2004 2005
- ------------------------------------------------------------------------------------------------------ --------------------------
REVENUES
Premiums $ 48 $ 63 $ 73 $ 118 $ 101 $ 126 $ 355
Universal life and investment-type
product policy fees 177 185 198 318 334 640 1,035
Investment income, net 513 511 551 681 665 1,973 2,408
Other revenues 11 11 13 26 29 39 79
--------------------------------------------------------------- --------------------------
749 770 835 1,143 1,129 2,778 3,877
--------------------------------------------------------------- --------------------------
EXPENSES
Policyholder benefits and dividends 111 96 113 178 152 315 539
Interest credited to policyholder
account balances 267 261 260 338 322 1,094 1,181
Capitalization of deferred policy
acquisition costs (154) (145) (147) (204) (220) (653) (716)
Amortization of deferred policy
acquisition costs 62 81 57 147 144 269 429
Other expenses 281 259 292 427 422 1,150 1,400
--------------------------------------------------------------- --------------------------
567 552 575 886 820 2,175 2,833
--------------------------------------------------------------- --------------------------
Operating earnings before
provision (benefit) for income
taxes 182 218 260 257 309 603 1,044
Provision (benefit) for income
taxes 59 71 85 84 100 196 340
--------------------------------------------------------------- --------------------------
OPERATING EARNINGS AVAILABLE TO
COMMON SHAREHOLDERS $ 123 $ 147 $ 175 $ 173 $ 209 $ 407 $ 704
=============================================================== ==========================
Net investment gains (losses), net
of income taxes (58) 1 94 (29) (99) (30) (33)
Adjustments related to net
investment gains (losses), net of
income taxes 4 2 (11) 4 9 2 4
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 69 150 258 148 119 390 675
Preferred stock dividends 0 0 0 0 0 0 0
--------------------------------------------------------------- --------------------------
Net income $ 69 $ 150 $ 258 $ 148 $ 119 $ 390 $ 675
--------------------------------------------------------------- --------------------------
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
--------------------------------------------------------------- --------------------------
December 31, March 31, June 30, September 30, December 31, December 31, December 31,
Other 2004 2005 2005 2005 2005 2004 2005
- ------------------------------------------------------------------------------------------------------ --------------------------
REVENUES
Premiums $ 0 $ 0 $ 0 $ 2 $ 29 $ 0 $ 31
Universal life and investment-type
product policy fees 31 29 26 44 34 105 133
Investment income, net 34 33 37 36 41 126 147
Other revenues 94 99 95 123 81 376 398
--------------------------------------------------------------- --------------------------
159 161 158 205 185 607 709
--------------------------------------------------------------- --------------------------
EXPENSES
Policyholder benefits and dividends 0 0 0 4 20 0 24
Interest credited to policyholder
account balances 17 17 18 17 20 64 72
Capitalization of deferred policy
acquisition costs 0 (1) 0 0 0 0 (1)
Amortization of deferred policy
acquisition costs 0 0 0 0 0 (2) 0
Other expenses 136 128 127 173 128 511 556
--------------------------------------------------------------- --------------------------
153 144 145 194 168 573 651
--------------------------------------------------------------- --------------------------
Operating earnings before
provision (benefit) for income
taxes 6 17 13 11 17 34 58
Provision (benefit) for income
taxes 2 6 4 4 6 12 20
--------------------------------------------------------------- --------------------------
OPERATING EARNINGS AVAILABLE TO
COMMON SHAREHOLDERS $ 4 $ 11 $ 9 $ 7 $ 11 $ 22 $ 38
=============================================================== ==========================
Net investment gains (losses), net
of income taxes 14 (6) 0 4 (9) 10 (11)
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 18 5 9 11 2 32 27
Preferred stock dividends 0 0 0 0 0 0 0
--------------------------------------------------------------- --------------------------
Net income $ 18 $ 5 $ 9 $ 11 $ 2 $ 32 $ 27
--------------------------------------------------------------- --------------------------
23
(METLIFE LOGO)
INDIVIDUAL OPERATIONS
PREMIUMS AND DEPOSITS BY PRODUCT AND MUTUAL FUND SALES
For the Three Months Ended
--------------------------------------------------------------
December 31, March 31, June 30, September 30, December 31,
Unaudited (Dollars in millions) 2004 2005 2005 2005 2005
- -----------------------------------------------------------------------------------------------------------------------------
PREMIUMS AND DEPOSITS BY PRODUCT (1)
TOTAL (2)
Life First Year Premiums and Deposits
Traditional Life $ 51 $ 47 $ 52 $ 52 $ 54
Variable Life 1st Year excluding Single Premium COLI/BOLI 51 57 41 56 63
Universal Life 1st Year excluding Single Premium COLI/BOLI 118 102 110 245 228
Single Premium COLI/BOLI 4 1 10 4 15
--------------------------------------------------------------
Total Life First Year
Premiums and Deposits (3) 224 207 213 357 360
Life Renewal Premiums and Deposits
Traditional Life 1,163 943 1,020 1,033 1,227
Variable & Universal Life 452 472 416 532 551
Annuities (4) 2,566 2,540 2,496 3,624 3,570
--------------------------------------------------------------
Total Premiums and Deposits $4,405 $4,162 $4,145 $5,546 $5,708
==============================================================
PREMIUMS AND DEPOSITS TO SEPARATE ACCOUNTS
Variable & Universal Life $ 294 $ 279 $ 246 $ 297 $ 307
Annuities 1,525 1,532 1,503 2,306 2,479
--------------------------------------------------------------
Total Separate Accounts $1,819 $1,811 $1,749 $2,603 $2,786
==============================================================
ANNUITY DEPOSITS BY TYPE
Fixed Annuity Deposits $ 497 $ 429 $ 356 $ 496 $ 464
Variable Annuity Deposits 2,069 2,111 2,140 3,128 3,106
--------------------------------------------------------------
Total Annuity Deposits $2,566 $2,540 $2,496 $3,624 $3,570
==============================================================
--------------------------------------------------------------
MUTUAL FUND SALES $ 935 $ 954 $ 916 $1,006 $1,254
--------------------------------------------------------------
(1) Statutory premiums direct and assumed.
(2) Includes premiums and deposits to separate accounts and excludes Company
sponsored internal changes.
(3) Of the $360 million of First Year Life Premiums and Deposits received
during the three months ended December 31, 2005, approximately 31% were
distributed through MetLife agents, 12% through New England Financial
agents, 51% through MetLife's Independent Distribution channel and 6%
through other distribution channels.
(4) Of the $3,570 million of Annuity Deposits received during the three months
ended December 31, 2005, approximately 23% were distributed through
MetLife agents, 6% through New England Financial agents, 57% through
MetLife's Independent Distribution channel and 14% through MetLife
Resources representatives.
24
(METLIFE LOGO)
INDIVIDUAL OPERATIONS
ADDITIONAL STATISTICAL INFORMATION
For the Three Months Ended
--------------------------------------------------------------
December 31, March 31, June 30, September 30, December 31,
Unaudited 2004 2005 2005 2005 2005
- -----------------------------------------------------------------------------------------------------------------------------
PERCENTAGE OF PREMIUMS AND DEPOSITS TO SEPARATE ACCOUNTS,
EXCLUDING TRANSFERS FROM GENERAL ACCOUNT:
Variable & Universal Life 43.0% 43.0% 41.4% 33.4% 33.6%
Annuities 58.3% 60.3% 60.2% 63.6% 69.4%
MORTALITY AS A PERCENTAGE OF EXPECTED 85.6% 85.6% 84.7% 86.4% 84.9%
LAPSES / SURRENDERS (GENERAL AND SEPARATE ACCOUNT) (1)
Traditional Life 6.1% 6.2% 6.1% 6.1% 6.0%
Variable & Universal Life 7.0% 6.6% 6.3% 6.2% 6.1%
Variable Annuities 7.6% 7.6% 7.7% 8.4% 8.9%
Fixed Annuities 6.7% 6.3% 5.8% 6.4% 8.0%
NUMBER OF SALES REPRESENTATIVES
MetLife Distribution 5,597 5,718 5,773 5,774 5,804
New England Financial 2,383 2,231 2,255 2,228 2,006
General American (2) 380 343 345 353 305
Independent Distribution Wholesalers 100 116 124 279 229
MetLife Resources 427 422 428 857 794
Walnut Street and Tower Square Securities (3) 1,359 1,294 1,263 1,869 1,676
P&C Specialists 544 570 617 672 682
--------------------------------------------------------------
Total Agents 10,790 10,694 10,805 12,032 11,496
--------------------------------------------------------------
(1) Lapses/Surrenders rates are calculated for the most recent 12 months of
experience.
(2) Based on minimum annual production of $25,000 in life insurance sales.
(3) At December 31, 2005, the number of Walnut Street and Tower Square
Securities representatives includes 43 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
------------------------------------------------------------------
December 31, March 31, June 30, September 30, December 31,
Traditional Life 2004 2005 2005 2005 2005
-------------------------------------------------------------------------------------------------------------
Balance, beginning of period $ 48,893 $ 49,209 $ 49,371 $ 49,582 $ 50,562
Premiums and deposits (1) 1,199 1,032 1,066 1,101 1,239
Interest on reserves 494 499 503 514 518
Surrenders and withdrawals (472) (447) (437) (443) (470)
Benefit payments (458) (484) (492) (498) (459)
Other (447) (438) (429) 306 (2) (446)
------------------------------------------------------------------
Balance, end of period $ 49,209 $ 49,371 $ 49,582 $ 50,562 $ 50,944
==================================================================
For the Three Months Ended
------------------------------------------------------------------
December 31, March 31, June 30, September 30, December 31,
Variable & Universal Life 2004 2005 2005 2005 2005
-------------------------------------------------------------------------------------------------------------
Balance, beginning of period $ 9,887 $ 9,991 $ 10,087 $ 10,154 $ 14,315
Premiums and deposits (1) (3) 342 353 320 548 567
Interest on reserves 115 112 117 151 148
Surrenders and withdrawals (168) (161) (160) (178) (185)
Net transfers from (to) separate account 54 44 55 52 45
Policy charges (228) (225) (231) (350) (351)
Benefit payments (24) (27) (30) (36) (34)
Other 13 0 (4) 3,974 (2) 347
------------------------------------------------------------------
Balance, end of period $ 9,991 $ 10,087 $ 10,154 $ 14,315 $ 14,852
==================================================================
For the Three Months Ended
------------------------------------------------------------------
December 31, March 31, June 30, September 30, December 31,
Annuities 2004 2005 2005 2005 2005
-------------------------------------------------------------------------------------------------------------
Balance, beginning of period $ 31,955 $ 32,184 $ 32,304 $ 32,421 $ 46,136
Premiums and deposits (1) (3) 1,182 1,089 1,101 1,410 1,298
Interest on reserves 339 312 309 401 398
Surrenders and withdrawals (677) (587) (679) (1,014) (1,178)
Net transfers from (to) separate account (425) (427) (346) (544) (625)
Policy charges (1) (1) (3) (2) (2)
Benefit payments (191) (277) (273) (309) (297)
Other 2 11 8 13,773 (2) 2
------------------------------------------------------------------
Balance, end of period $ 32,184 $ 32,304 $ 32,421 $ 46,136 $ 45,732
==================================================================
SEPARATE ACCOUNT LIABILITIES
- ----------------------------
For the Three Months Ended
------------------------------------------------------------------
December 31, March 31, June 30, September 30, December 31,
Variable & Universal Life 2004 2005 2005 2005 2005
-------------------------------------------------------------------------------------------------------------
Balance, beginning of period $ 7,258 $ 7,785 $ 7,747 $ 7,900 $ 9,164
Premiums and deposits (1) 294 279 247 297 307
Investment performance 583 (94) 135 318 155
Surrenders and withdrawals (224) (109) (109) (137) (177)
Net transfers from (to) fixed account (54) (44) (55) (52) (45)
Policy charges (72) (70) (65) (89) (96)
Other 0 0 0 927 (2) (1)
------------------------------------------------------------------
Balance, end of period $ 7,785 $ 7,747 $ 7,900 $ 9,164 $ 9,307
==================================================================
For the Three Months Ended
------------------------------------------------------------------
December 31, March 31, June 30, September 30, December 31,
Annuities 2004 2005 2005 2005 2005
-------------------------------------------------------------------------------------------------------------
Balance, beginning of period $ 33,491 $ 37,597 $ 38,051 $ 39,771 $ 69,146
Premiums and deposits (1) 1,524 1,532 1,503 2,306 2,479
Investment performance 3,039 (604) 806 2,701 1,507
Surrenders and withdrawals (744) (764) (796) (1,723) (1,724)
Net transfers from (to) fixed account 425 427 346 544 625
Policy charges (138) (137) (139) (266) (269)
Other 0 0 0 25,813 (2) 0
------------------------------------------------------------------
Balance, end of period $ 37,597 $ 38,051 $ 39,771 $ 69,146 $ 71,764
==================================================================
(1) Includes Company-sponsored internal exchanges.
(2) Includes the beginning balances of Travelers of $764 million, $3,952
million and $13,755 million for Traditional Life, Variable & Universal
Life and Annuities, respectively, in Future Policy Benefits and
Policyholder Account Balances and $928 million and $25,813 million for
Variable & Universal Life and Annuities, respectively, in Separate Account
Liabilities. Certain adjustments have been made to the Travelers opening
balances to conform to current period presentation.
(3) Includes premiums and deposits directed to General Account investment
option of a variable life and variable annuity product.
26
(METLIFE LOGO)
INDIVIDUAL OPERATIONS
INSURANCE EXPENSES AND OTHER
EXPENSES BY MAJOR CATEGORY
For the Three Months Ended
------------------------------------------------------------------
December 31, March 31, June 30, September 30, December 31,
Unaudited (Dollars in millions) 2004 2005 2005 2005 2005
- -----------------------------------------------------------------------------------------------------------------------
INSURANCE EXPENSES (NET OF CAPITALIZATION
OF DAC)
Insurance Expenses $ 729 $ 606 $ 674 $ 936 $ 941
DAC Capitalization (1) (308) (272) (292) (401) (426)
------------------------------------------------------------------
Net $ 421 $ 334 $ 382 $ 535 $ 515
==================================================================
OTHER EXPENSES BY MAJOR CATEGORY
Commissions $ 210 $ 196 $ 206 $ 329 $ 347
Other deferrable expenses 121 102 113 126 140
Direct and allocated expenses, not deferred 348 251 317 422 410
Pension and other post-retirement benefit costs 26 29 29 29 30
Premium taxes and other taxes, licenses and fees 24 28 9 30 14
------------------------------------------------------------------
Subtotal Insurance Expenses 729 606 674 936 941
Broker-dealer and other expenses 140 132 132 177 132
Reinsurance allowances (25) (18) (18) (17) (24)
------------------------------------------------------------------
Total Other Expenses $ 844 $ 720 $ 788 $ 1,096 $ 1,049
------------------------------------------------------------------
(1) Excludes $25 million, $18 million, $13 million, $17 million and $17
million of DAC capitalization related to reinsurance allowances for the
three months ended December 31, 2004, March 31, 2005, June 30, 2005,
September 30, 2005 and December 31, 2005, respectively.
27
(METLIFE LOGO)
INDIVIDUAL OPERATIONS
SPREADS BY PRODUCT
UNAUDITED
For the Three Months Ended
------------------------------------------------------------------
December 31, March 31, June 30, September 30, December 31,
VARIABLE & UNIVERSAL LIFE 2004 2005 2005 2005 2005
- -----------------------------------------------------------------------------------------------
ANNUALIZED GENERAL ACCOUNT
SPREADS BY PRODUCT (%)
Investment income yield 6.90% 6.96% 6.85% 6.91% 6.63%
Average crediting rate 4.83% 4.84% 4.92% 4.65% 4.67%
------------------------------------------------------------------
Spread 2.07% 2.12% 1.93% 2.26% 1.96%
------------------------------------------------------------------
For the Three Months ended
------------------------------------------------------------------
December 31, March 31, June 30, September 30, December 31,
ANNUITIES 2004 2005 2005 2005 2005
- -----------------------------------------------------------------------------------------------
ANNUALIZED GENERAL ACCOUNT
SPREADS BY PRODUCT (%)
Investment income yield 6.28% 6.17% 6.62% 6.41% 6.32%
Average crediting rate 3.54% 3.49% 3.44% 3.64% 3.64%
------------------------------------------------------------------
Spread 2.74% 2.68% 3.18% 2.77% 2.68%
------------------------------------------------------------------
28
(METLIFE LOGO)
AUTO & HOME OPERATIONS
STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS - TOTAL
UNAUDITED (DOLLARS IN MILLIONS)
For the Three Months Ended
-----------------------------------------------------------------
December 31, March 31, June 30, September 30, December 31,
Auto & Home Operations 2004 2005 2005 2005 2005
- ----------------------------------------------------------------------------------------------------------------------------
REVENUES
Premiums $ 737 $ 728 $ 738 $ 716 $ 729
Investment income, net 41 43 46 46 46
Other revenues 12 9 8 8 8
-----------------------------------------------------------------
790 780 792 770 783
-----------------------------------------------------------------
EXPENSES
Losses 398 392 360 483 391
Loss adjustment expense 99 85 88 132 63
Other expenses 210 200 204 209 218
-----------------------------------------------------------------
707 677 652 824 672
-----------------------------------------------------------------
Operating earnings before provision
(benefit) for income taxes 83 103 140 (54) 111
Provision (benefit) for income taxes 20 27 39 (28) 30
-----------------------------------------------------------------
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $ 63 $ 76 $ 101 $ (26) $ 81
=================================================================
NET INCOME RECONCILIATION
- -------------------------
Operating earnings available to common shareholders $ 63 $ 76 $ 101 $ (26) $ 81
Net investment gains (losses) (3) 0 (4) (5) (3)
Minority interest - net investment gains (losses) 0 0 0 0 0
Net investment gains (losses) tax benefit
(provision) 1 0 1 2 1
-----------------------------------------------------------------
Net investment gains (losses), net of income taxes (2) 0 (3) (3) (2)
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 61 76 98 (29) 79
Preferred stock dividends 0 0 0 0 0
-----------------------------------------------------------------
Net income $ 61 $ 76 $ 98 $ (29) $ 79
-----------------------------------------------------------------
For the Year-to-Date Period Ended
---------------------------------
December 31, December 31,
Auto & Home Operations 2004 2005
- --------------------------------------------------------------------------------------------
REVENUES
Premiums $ 2,948 $ 2,911
Investment income, net 171 181
Other revenues 35 33
---------------------------------
3,154 3,125
---------------------------------
EXPENSES
Losses 1,717 1,626
Loss adjustment expense 364 368
Other expenses 795 831
---------------------------------
2,876 2,825
---------------------------------
Operating earnings before provision
(benefit) for income taxes 278 300
Provision (benefit) for income taxes 64 68
---------------------------------
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $ 214 $ 232
=================================
NET INCOME RECONCILIATION
- -------------------------
Operating earnings available to common shareholders $ 214 $ 232
Net investment gains (losses) (9) (12)
Minority interest - net investment gains (losses) 0 0
Net investment gains (losses) tax benefit
(provision) 3 4
---------------------------------
Net investment gains (losses), net of income taxes (6) (8)
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 208 224
Preferred stock dividends 0 0
---------------------------------
Net income $ 208 $ 224
---------------------------------
(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
----------------------------------------------------------------
December 31, March 31, June 30, September 30, December 31,
Auto 2004 2005 2005 2005 2005
- -----------------------------------------------------------------------------------------------------------------------------------
REVENUES
Premiums $538 $531 $533 $534 $525
Investment income, net 34 32 35 34 37
Other revenues 6 6 6 6 5
----------------------------------------------------------------
578 569 574 574 567
----------------------------------------------------------------
EXPENSES
Losses 312 304 272 275 296
Loss adjustment expense 85 74 70 64 59
Other expenses 148 137 141 143 150
----------------------------------------------------------------
545 515 483 482 505
----------------------------------------------------------------
Operating earnings before provision (benefit)
for income taxes 33 54 91 92 62
Provision (benefit) for income taxes 3 11 24 27 13
----------------------------------------------------------------
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $30 $43 $67 $65 $49
================================================================
Net investment gains (losses), net of income taxes (1) 0 (2) (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 29 43 65 63 47
Preferred stock dividends 0 0 0 0 0
----------------------------------------------------------------
Net income $29 $43 $65 $63 $47
----------------------------------------------------------------
For the Year-to-Date Period Ended
-----------------------------------
December 31, December 31,
Auto 2004 2005
- -------------------------------------------------------------------------------------------------------
REVENUES
Premiums $2,157 $2,123
Investment income, net 134 138
Other revenues 23 23
-----------------------------------
2,314 2,284
-----------------------------------
EXPENSES
Losses 1,259 1,147
Loss adjustment expense 286 267
Other expenses 558 571
-----------------------------------
2,103 1,985
-----------------------------------
Operating earnings before provision (benefit)
for income taxes 211 299
Provision (benefit) for income taxes 46 75
-----------------------------------
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $165 $224
===================================
Net investment gains (losses), net of income taxes (5) (6)
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 160 218
Preferred stock dividends 0 0
-----------------------------------
Net income $160 $218
-----------------------------------
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
----------------------------------------------------------------
December 31, March 31, June 30, September 30, December 31,
Homeowners 2004 2005 2005 2005 2005
- ------------------------------------------------------------------------------------------------------------------------------------
REVENUES
Premiums $188 $184 $193 $170 $192
Investment income, net 6 10 10 12 8
Other revenues 2 1 2 1 2
----------------------------------------------------------------
196 195 205 183 202
----------------------------------------------------------------
EXPENSES
Losses 83 82 82 195 89
Loss adjustment expense 13 11 17 65 5
Other expenses 57 56 58 61 64
----------------------------------------------------------------
153 149 157 321 158
----------------------------------------------------------------
Operating earnings before provision (benefit)
for income taxes 43 46 48 (138) 44
Provision (benefit) for income taxes 15 15 15 (52) 15
----------------------------------------------------------------
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $28 $31 $33 ($86) $29
================================================================
Net investment gains (losses), net of income taxes (1) 0 (1) 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 27 31 32 (86) 28
Preferred stock dividends 0 0 0 0 0
----------------------------------------------------------------
Net income $27 $31 $32 ($86) $28
----------------------------------------------------------------
</Table>
For the Year-to-Date Period Ended
---------------------------------
December 31, December 31,
Homeowners 2004 2005
- -----------------------------------------------------------------------------------------------------
REVENUES
Premiums $743 $739
Investment income, net 35 40
Other revenues 6 6
---------------------------------
784 785
---------------------------------
EXPENSES
Losses 433 448
Loss adjustment expense 76 98
Other expenses 215 239
---------------------------------
724 785
---------------------------------
Operating earnings before provision (benefit)
for income taxes 60 0
Provision (benefit) for income taxes 16 (7)
---------------------------------
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $44 $7
=================================
Net investment gains (losses), net of income taxes (1) (2)
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 43 5
Preferred stock dividends 0 0
---------------------------------
Net income $43 $5
---------------------------------
</Table>
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
----------------------------------------------------------------
December 31, March 31, June 30, September 30, December 31,
Other 2004 2005 2005 2005 2005
- ------------------------------------------------------------------------------------------------------------------------------------
REVENUES
Premiums $11 $13 $12 $12 $12
Investment income, net 1 1 1 0 1
Other revenues 4 2 0 1 1
----------------------------------------------------------------
16 16 13 13 14
----------------------------------------------------------------
EXPENSES
Losses 3 6 6 13 6
Loss adjustment expense 1 0 1 3 (1)
Other expenses 5 7 5 5 4
----------------------------------------------------------------
9 13 12 21 9
----------------------------------------------------------------
Operating earnings before provision (benefit)
for income taxes 7 3 1 (8) 5
Provision (benefit) for income taxes 2 1 0 (3) 2
----------------------------------------------------------------
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $5 $2 $1 ($5) $3
================================================================
Net investment gains (losses), net of income taxes 0 0 0 (1) 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 5 2 1 (6) 4
Preferred stock dividends 0 0 0 0 0
----------------------------------------------------------------
Net income $5 $2 $1 ($6) $4
----------------------------------------------------------------
</Table>
For the Year-to-Date Period Ended
---------------------------------
December 31, December 31,
Other 2004 2005
- -----------------------------------------------------------------------------------------------------
REVENUES
Premiums $48 $49
Investment income, net 2 3
Other revenues 6 4
---------------------------------
56 56
---------------------------------
EXPENSES
Losses 25 31
Loss adjustment expense 2 3
Other expenses 22 21
---------------------------------
49 55
---------------------------------
Operating earnings before provision (benefit)
for income taxes 7 1
Provision (benefit) for income taxes 2 0
---------------------------------
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $5 $1
=================================
Net investment gains (losses), net of income taxes 0 0
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 5 1
Preferred stock dividends 0 0
---------------------------------
Net income $5 $1
---------------------------------
</Table>
32
(METLIFE LOGO)
AUTO & HOME OPERATIONS
WRITTEN PREMIUMS BY PRODUCT AND SELECTED FINANCIAL INFORMATION
AND SUPPLEMENTAL DATA
For the Three Months Ended
---------------------------------------------------------------------------
December 31, March 31, June 30, September 30, December 31,
Unaudited (Dollars in millions) 2004 2005 2005 2005 2005
- ------------------------------------------------------------------------------------------------------------------------------------
WRITTEN PREMIUMS BY PRODUCT
Preferred/Standard Automobile $502 $512 $519 $528 $492
Non-Standard Automobile 21 17 15 14 12
Homeowners 186 160 212 200 191
Other 9 17 12 11 9
---------------------------------------------------------------------------
Total $718 $706 $758 $753 $704
===========================================================================
SELECTED FINANCIAL INFORMATION AND
SUPPLEMENTAL DATA
TOTAL AUTO & HOME
Loss and loss adjustment expense ratio 67.2% 65.7% 60.4% 85.8% 62.3%
Other expense ratio 28.0% 26.7% 27.2% 28.5% 29.2%
---------------------------------------------------------------------------
Total combined ratio (1) 95.2% 92.4% 87.6% 114.3% 91.5%
Effect of catastrophe losses (2) 3.0% 1.5% 1.2% 27.5% 8.5%
---------------------------------------------------------------------------
Combined ratio excluding catastrophes 92.2% 90.9% 86.4% 86.8% 83.0%
===========================================================================
AUTO
Loss and loss adjustment expense ratio 73.7% 71.5% 63.6% 63.3% 67.6%
Other expense ratio 26.9% 25.0% 26.0% 26.0% 27.8%
---------------------------------------------------------------------------
Total combined ratio (1) 100.6% 96.5% 89.6% 89.3% 95.4%
Effect of catastrophe losses (2) 0.5% 0.4% 0.1% 2.7% 3.4%
---------------------------------------------------------------------------
Combined ratio excluding catastrophes 100.1% 96.1% 89.5% 86.6% 92.0%
===========================================================================
HOMEOWNERS
Loss and loss adjustment expense ratio 50.8% 50.2% 51.4% 153.1% 48.9%
Other expense ratio 30.1% 29.7% 29.8% 35.4% 32.9%
---------------------------------------------------------------------------
Total combined ratio (1) 80.9% 79.9% 81.2% 188.5% 81.8%
Effect of catastrophe losses (2) 10.2% 4.9% 4.4% 106.3% 20.9%
---------------------------------------------------------------------------
Combined ratio excluding catastrophes 70.7% 75.0% 76.8% 82.2% 60.9%
===========================================================================
OTHER
Loss and loss adjustment expense ratio 33.7% 49.3% 60.7% 127.0% 41.7%
Other expense ratio 43.8% 56.1% 38.7% 39.4% 33.3%
---------------------------------------------------------------------------
Total combined ratio (1) 77.5% 105.4% 99.4% 166.4% 75.0%
Effect of catastrophe losses 0.0% 0.0% 0.0% 0.0% 12.5%
---------------------------------------------------------------------------
Combined ratio excluding catastrophes 77.5% 105.4% 99.4% 166.4% 62.5%
===========================================================================
PRE-TAX CATASTROPHE LOSSES
Auto $3 $2 $1 $13 $17
Homeowners 20 9 9 156 34
Other 0 0 0 0 2
---------------------------------------------------------------------------
Total $23 $11 $10 $169 $53
===========================================================================
CATASTROPHE POINTS ON COMBINED RATIOS 3.0 1.5 1.2 27.5 8.5
NUMBER OF SALES REPRESENTATIVES 87 89 89 85 100
---------------------------------------------------------------------------
(1) The combined ratio reflects payment fees as a credit to Other expenses for
the three months ended December 31, 2004, March 31, 2005, June 30, 2005,
September 30, 2005 and December 31, 2005, which resulted in a 0.7, 0.8, 0.7,
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 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, 0.8, 0.5 and 0.8 of a percentage point, respectively, for September
30, 2005 and 0.8, 0.4 and 0.8 of a percentage point, respectively, for
December 31, 2005.
(2) Includes the effect of both catastrophe losses and $32 million in
reinstatement reinsurance premiums within Auto ($2 million) and Homeowners
($30 million) for third quarter of 2005 and $11 million in the fourth
quarter of 2005 for reinstatement reinsurance premiums within Auto
($1 million) and Homeowners ($10 million).
33
(METLIFE LOGO)
INTERNATIONAL OPERATIONS
STATEMENT OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
For the Three Months Ended
----------------------------------------------------------------------
December 31, March 31, June 30, September 30, December 31,
Unaudited (Dollars in millions) 2004 2005 2005 2005 2005
- ------------------------------------------------------------------------------------------------------------------------------------
REVENUES
Premiums $461 $466 $470 $614 $636
Universal life and investment-type product policy fees 90 119 125 170 165
Investment income, net 175 149 195 238 262
Other revenues 9 3 (1) 9 9
----------------------------------------------------------------------
735 737 789 1,031 1,072
----------------------------------------------------------------------
EXPENSES
Policyholder benefits and dividends 448 410 468 578 600
Interest credited to policyholder account balances 45 47 55 84 92
Capitalization of deferred policy acquisition costs (117) (125) (138) (137) (141)
Amortization of deferred policy acquisition costs 40 56 56 68 43
Other expenses 279 244 274 359 441
----------------------------------------------------------------------
695 632 715 952 1,035
----------------------------------------------------------------------
Operating earnings before provision (benefit) for income
taxes 40 105 74 79 37
Provision (benefit) for income taxes 10 37 23 13 (11)
----------------------------------------------------------------------
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $30 $68 $51 $66 $48
======================================================================
NET INCOME RECONCILIATION
- ----------------------------------------------------------
Operating earnings available to common shareholders $30 $68 $51 $66 $48
Net investment gains (losses) (4) 0 7 5 (7)
Minority interest - net investment gains (losses) 0 0 0 0 0
Net investment gains (losses) tax benefit (provision) 1 0 (2) (2) 3
----------------------------------------------------------------------
Net investment gains (losses), net of income taxes (3) 0 5 3 (4)
Adjustments related to policyholder benefits and
dividends (6) 14 (16) (54) (21)
Adjustments related to other expenses 0 0 0 0 0
Adjustments related to tax benefit (provision) 2 (5) 6 19 7
----------------------------------------------------------------------
Adjustments related to net investment gains (losses), net
of income taxes (1) (4) 9 (10) (35) (14)
Cumulative effect of a change in accounting, net of income
taxes 0 0 0 0 0
Discontinued operations, net of income taxes (4) (1) (1) 7 0
----------------------------------------------------------------------
Net income available to common shareholders 19 76 45 41 30
Preferred stock dividends 0 0 0 0 0
----------------------------------------------------------------------
Net income $19 $76 $45 $41 $30
----------------------------------------------------------------------
----------------------------------------------------------------------
NUMBER OF PROFESSIONAL SALES REPRESENTATIVES 3,491 3,749 3,913 3,861 3,783
----------------------------------------------------------------------
For the Year-to-Date Period Ended
---------------------------------
December 31 December 31,
Unaudited (Dollars in millions) 2004 2005
- -----------------------------------------------------------------------------------------------
REVENUES
Premiums $1,690 $2,186
Universal life and investment-type product policy fees 349 579
Investment income, net 585 844
Other revenues 23 20
---------------------------------
2,647 3,629
---------------------------------
EXPENSES
Policyholder benefits and dividends 1,649 2,056
Interest credited to policyholder account balances 151 278
Capitalization of deferred policy acquisition costs (384) (541)
Amortization of deferred policy acquisition costs 140 223
Other expenses 858 1,318
---------------------------------
2,414 3,334
---------------------------------
Operating earnings before provision (benefit) for income
taxes 233 295
Provision (benefit) for income taxes 68 62
---------------------------------
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $165 $233
=================================
NET INCOME RECONCILIATION
- ----------------------------------------------------------
Operating earnings available to common shareholders $165 $233
Net investment gains (losses) 23 5
Minority interest - net investment gains (losses) 0 0
Net investment gains (losses) tax benefit (provision) (7) (1)
---------------------------------
Net investment gains (losses), net of income taxes 16 4
Adjustments related to policyholder benefits and
dividends 32 (77)
Adjustments related to other expenses 0 0
Adjustments related to tax benefit (provision) (11) 27
---------------------------------
Adjustments related to net investment gains (losses), net
of income taxes (1) 21 (50)
Cumulative effect of a change in accounting, net of income
taxes (30) 0
Discontinued operations, net of income taxes (9) 5
---------------------------------
Net income available to common shareholders 163 192
Preferred stock dividends 0 0
---------------------------------
Net income $163 $192
---------------------------------
NUMBER OF PROFESSIONAL SALES REPRESENTATIVES
(1) Adjustments related to net investment gains (losses), net of income taxes,
includes amortization of deferred policy acquisition costs and amounts
allocable to certain participating contracts.
34
(METLIFE LOGO)
REINSURANCE OPERATIONS
STATEMENT OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
For the Three Months Ended
----------------------------------------------------------------------
December 31, March 31, June 30, September 30, December 31,
Unaudited (Dollars in millions) 2004 2005 2005 2005 2005
- ------------------------------------------------------------------------------------------------------------------------------------
REVENUES
Premiums $917 $903 $930 $974 $1,062
Investment income, net 183 150 137 158 161
Other revenues 16 11 21 13 13
----------------------------------------------------------------------
1,116 1,064 1,088 1,145 1,236
----------------------------------------------------------------------
EXPENSES
Claims and other policy benefits 752 739 828 779 860
Interest credited to policyholder account balances 61 56 43 64 57
Policy acquisition costs and other insurance expenses 189 144 156 162 159
Other expenses 44 44 47 48 57
----------------------------------------------------------------------
1,046 983 1,074 1,053 1,133
----------------------------------------------------------------------
Operating earnings before provision (benefit) for income
taxes and minority interest 70 81 14 92 103
Provision (benefit) for income taxes 10 13 (1) 16 17
----------------------------------------------------------------------
Operating earnings available to common shareholders before
minority interest 60 68 15 76 86
Elimination of minority interest, before tax 39 43 11 50 55
----------------------------------------------------------------------
CONTRIBUTION TO METLIFE $21 $25 $4(2) $26 $31
======================================================================
NET INCOME RECONCILIATION
- -------------------------
Operating earnings available to common shareholders $21 $25 $4 $26 $31
Net investment gains (losses) (3) 28 (7) 7 (6)
Minority interest - net investment gains (losses) 1 (5) (2) (1) 3
Net investment gains (losses) tax benefit (provision) 1 (8) 6 (2) 1
----------------------------------------------------------------------
Net investment gains (losses), net of income taxes (1) 15 (3) 4 (2)
Adjustments related to policyholder benefits and
dividends 0 0 0 0 0
Adjustments related to other expenses 1 (17) 12 (4) (1)
Adjustments related to tax benefit (provision) 0 6 (6) 2 0
----------------------------------------------------------------------
Adjustments related to net investment gains (losses), net
of income taxes (1) 1 (11) 6 (2) (1)
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 21 29 7 28 28
Preferred stock dividends 0 0 0 0 0
----------------------------------------------------------------------
Net income $21 $29 $7 $28 $28
----------------------------------------------------------------------
For the Year-to-Date Period Ended
---------------------------------
December 31, December 31,
Unaudited (Dollars in millions) 2004 2005
- -----------------------------------------------------------------------------------------------
REVENUES
Premiums $3,348 $3,869
Investment income, net 564 606
Other revenues 56 58
---------------------------------
3,968 4,533
---------------------------------
EXPENSES
Claims and other policy benefits 2,695 3,206
Interest credited to policyholder account balances 212 220
Policy acquisition costs and other insurance expenses 618 621
Other expenses 178 196
---------------------------------
3,703 4,243
---------------------------------
Operating earnings before provision (benefit) for income
taxes and minority interest 265 290
Provision (benefit) for income taxes 41 45
---------------------------------
Operating earnings available to common shareholders before
minority interest 224 245
Elimination of minority interest, before tax 147 159
---------------------------------
CONTRIBUTION TO METLIFE $77 $86
=================================
NET INCOME RECONCILIATION
- -------------------------
Operating earnings available to common shareholders $77 $86
Net investment gains (losses) 33 22
Minority interest - net investment gains (losses) (13) (5)
Net investment gains (losses) tax benefit (provision) (6) (3)
---------------------------------
Net investment gains (losses), net of income taxes 14 14
Adjustments related to policyholder benefits and
dividends 0 0
Adjustments related to other expenses (1) (10)
Adjustments related to tax benefit (provision) 1 2
---------------------------------
Adjustments related to net investment gains (losses), net
of income taxes (1) 0 (8)
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 91 92
Preferred stock dividends 0 0
---------------------------------
Net income $91 $92
---------------------------------
(1) Adjustments related to net investment gains (losses), net of income taxes,
includes amortization of deferred policy acquisition costs.
(2) 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 an 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
------------------------------------------------------------------------
December 31, March 31, June 30, September 30, December 31,
Unaudited (Dollars in millions) 2004 2005 2005 2005 2005
- -------------------------------------------------------------------------------------------------------------------------
PRE-TAX AND PRE-MINORITY INTEREST
OPERATING EARNINGS BY REGION
United States $67 $48 $28 $78 $80
Canada 17 23 17 21 20
Asia-Pacific 2 5 14 4 18
Other international markets 4 15 (7) 15 12
Corporate (20) (10) (38) (26) (27)
------------------------------------------------------------------------
Total pre-tax and pre-minority interest
operating earnings $70 $81 $14 $92 $103
========================================================================
POLICY BENEFITS AND INTEREST
SENSITIVE CONTRACT LIABILITIES BY REGION
Traditional U.S. $3,753 $3,785 $3,865 $3,966 $4,030
Asset intensive 4,085 4,159 4,267 4,497 4,657
Other 124 122 126 90 100
------------------------------------------------------------------------
Total U.S. 7,962 8,066 8,258 8,553 8,787
------------------------------------------------------------------------
Canada 1,375 1,367 1,389 1,507 1,596
Asia-Pacific 517 548 611 629 688
Other international markets 610 693 702 677 680
------------------------------------------------------------------------
Total International 2,502 2,608 2,702 2,813 2,964
------------------------------------------------------------------------
Total policy benefits and interest sensitive
contract liabilities $10,464 $10,674 $10,960 $11,366 $11,751
------------------------------------------------------------------------
36
(METLIFE LOGO)
CORPORATE,OTHER & ELIMINATIONS
STATEMENT OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
For the Three Months Ended
----------------------------------------------------------------------
December 31, March 31, June 30, September 30, December 31,
Unaudited (Dollars in millions) 2004 2005 2005 2005 2005
- ------------------------------------------------------------------------------------------------------------------------------------
REVENUES
Premiums ($4) ($3) ($1) $2 $7
Universal life and investment-type product policy fees 0 0 0 1 0
Investment income, net 197 151 195 212 255
Other revenues 0 3 5 5 17
----------------------------------------------------------------------
193 151 199 220 279
----------------------------------------------------------------------
EXPENSES
Policyholder benefits and dividends (4) 2 (47) 11 16
Interest credited to policyholder account balances 0 (1) 1 0 0
Interest credited to bank deposits 14 17 25 30 37
Interest expense 96 104 110 166 171
Other expenses 64 63 34 57 133
----------------------------------------------------------------------
170 185 123 264 357
----------------------------------------------------------------------
Operating earnings before provision (benefit) for income
taxes 23 (34) 76 (44) (78)
Provision (benefit) for income taxes (7) (42) (1) (72) (46)
----------------------------------------------------------------------
Operating earnings 30 8 77 28 (32)
Preferred stock dividends 0 0 0 31 32
----------------------------------------------------------------------
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $30 $8 $77(2) ($3)(3) ($64)
======================================================================
NET INCOME RECONCILIATION
- -------------------------
Operating earnings available to common shareholders $30 $8 $77 ($3) ($64)
Net investment gains (losses) (85) (113) 1,313 73 118
Minority interest - net investment gains (losses) 0 0 0 0 0
Net investment gains (losses) tax benefit
(provision) 33 43 (468) (25) (44)
----------------------------------------------------------------------
Net investment gains (losses), net of income taxes (52) (70) 845 48 74
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) (1) 0 0 0 0
----------------------------------------------------------------------
Adjustments related to net investment gains (losses), net
of income taxes (1) (1) 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 (4) 151 0 0 12
----------------------------------------------------------------------
Net income available to common shareholders (27) 89 922 45 22
Preferred stock dividends 0 0 0 31 32
----------------------------------------------------------------------
Net income ($27) $89 $922 $76 $54
----------------------------------------------------------------------
For the Year-to-Date Period Ended
---------------------------------
December 31, December 31,
Unaudited (Dollars in millions) 2004 2005
- -----------------------------------------------------------------------------------------------
REVENUES
Premiums ($27) $5
Universal life and investment-type product policy fees 2 1
Investment income, net 576 813
Other revenues 8 30
---------------------------------
559 849
---------------------------------
EXPENSES
Policyholder benefits and dividends (2) (18)
Interest credited to policyholder account balances 0 0
Interest credited to bank deposits 40 109
Interest expense 357 551
Other expenses 211 287
---------------------------------
606 929
---------------------------------
Operating earnings before provision (benefit) for income
taxes (47) (80)
Provision (benefit) for income taxes (181) (161)
---------------------------------
Operating earnings 134 81
Preferred stock dividends 0 63
---------------------------------
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $134 $18
=================================
NET INCOME RECONCILIATION
- -------------------------
Operating earnings available to common shareholders $134 $18
Net investment gains (losses) (15) 1,391
Minority interest - net investment gains (losses) 0 0
Net investment gains (losses) tax benefit
(provision) 3 (494)
---------------------------------
Net investment gains (losses), net of income taxes (12) 897
Adjustments related to policyholder benefits and
dividends 0 0
Adjustments related to other expenses (1) 0
Adjustments related to tax benefit (provision) 0 0
---------------------------------
Adjustments related to net investment gains (losses), net
of income taxes (1) (1) 0
Cumulative effect of a change in accounting, net of income
taxes 4 0
Discontinued operations, net of income taxes 19 163
---------------------------------
Net income available to common shareholders 144 1,078
Preferred stock dividends 0 63
---------------------------------
Net income 144 1,141
---------------------------------
(1) Adjustments related to net investment gains (losses), net of income taxes,
includes amounts allocable to certain participating contracts.
(2) 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.
(3) 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
------------------------------------------------------------------------
December 31, March 31, June 30, September 30, December 31,
Unaudited (Dollars in millions) 2004 2005 2005 2005 2005
- ------------------------------------------------------------------------------------------------------------------------------------
FIXED MATURITIES (2)
Yield (3) 6.44% 6.34% 6.34% 6.05% 6.20%
Income (4) $2,262 $2,279 $2,311 $2,866 $2,968
Investment gains (losses) ($21) ($114) ($89) ($98) ($567)
Ending Carrying Value (4) $176,377 $182,267 $184,830 $232,041 $230,875
MORTGAGE AND CONSUMER LOANS
Yield (5) 7.13% 6.76% 6.89% 6.96% 6.85%
Income $531 $517 $535 $593 $591
Investment gains (losses) ($39) ($11) ($8) $13 $23
Ending Carrying Value $32,406 $31,977 $33,586 $36,094 $37,190
REAL ESTATE AND REAL ESTATE
JOINT VENTURES
Yield (5) 11.04% 11.02% 12.41% 10.72% 8.59%
Income (6) $117 $119 $130 $118 $100
Investment gains (losses) (7) $13 $18 $1,904 $51 $166
Ending Carrying Value $4,233 $4,377 $3,998 $4,705 $4,665
POLICY LOANS
Yield (5) 6.23% 6.17% 6.19% 6.15% 5.80%
Income $138 $138 $139 $152 $143
Ending Carrying Value $8,899 $8,953 $8,975 $9,841 $9,981
EQUITY SECURITIES AND OTHER LIMITED
PARTNERSHIP INTERESTS (2)
Yield (5) 18.26% 9.90% 21.33% 9.23% 12.36%
Income $199 $118 $276 $162 $218
Investment gains (losses) $25 $95 $12 $20 $32
Ending Carrying Value $5,095 $5,514 $5,914 $7,403 $7,614
CASH AND SHORT-TERM INVESTMENTS (2)
Yield (5) 3.78% 4.77% 3.57% 3.45% 4.22%
Income $51 $64 $91 $122 $85
Investment gains (losses) ($1) ($1) $0 $0 ($1)
Ending Carrying Value $6,710 $6,470 $15,770 $11,431 $7,324
OTHER INVESTED ASSETS
Yield (5) 11.05% 9.09% 7.83% 10.00% 9.65%
Income (8) $119 $104 $102 $186 $178
Investment gains (losses) (9) ($191) ($8) $406 ($9) $113
Ending Carrying Value $5,295 $5,331 $6,452 $7,877 $8,078
TOTAL INVESTMENTS
Gross investment income yield 6.93% 6.60% 6.81% 6.30% 6.51%
Investment fees and expenses yield (0.14%) (0.12%) (0.15%) (0.13%) (0.17%)
------------------------------------------------------------------------
NET INVESTMENT INCOME YIELD 6.79% 6.48% 6.66% 6.17% 6.34%
========================================================================
Gross investment income $3,417 $3,339 $3,584 $4,199 $4,283
Investment fees and expenses (70) (60) (76) (87) (116)
------------------------------------------------------------------------
NET INVESTMENT INCOME $3,347 $3,279 $3,508 $4,112 $4,167
========================================================================
Ending Carrying Value $239,015 $244,889 $259,525 $309,392 $305,727
========================================================================
Gross investment gains $309 $373 $2,133 $342 $492
Gross investment losses (175) (322) (231) (304) (721)
Writedowns (79) (51) (42) (14) (9)
------------------------------------------------------------------------
Subtotal 55 0 1,860 24 (238)
Derivative & other instruments not qualifying for hedge
accounting (269) (21) 365 (47) 4
------------------------------------------------------------------------
NET INVESTMENT GAINS (LOSSES) (214) (21) 2,225 (23) (234)
Minority interest - net investment gains (losses) 5 (9) (2) (1) 3
Net investment gains (losses) tax benefit (provision) 71 9 (784) 9 85
------------------------------------------------------------------------
NET INVESTMENT GAINS (LOSSES), NET OF INCOME TAXES ($138) ($21) $1,439 ($15) ($146)
------------------------------------------------------------------------
(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 $7,102 million, $83 million and $8 million, respectively, related to
the consolidation of separate accounts under AICPA Statement of Position
03-1 for the three months ended December 31, 2005.
(3) The fixed maturities yield is annualized and is based on quarterly average
amortized cost.
(4) Fixed maturities includes $825 million and ($3) million in ending carrying
value and income, respectively, relating to trading securities for the
three months ended December 31, 2005. The annualized yields on trading
securities was (1.24)% for the three months ended December 31, 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 $30
million, $39 million, $15 million, ($2) million and $6 million related to
discontinued operations for the three months ended December 31, 2004,
March 31, 2005, June 30, 2005, September 30, 2005 and December 31, 2005,
respectively.
(7) Included in investment gains (losses) from real estate and real estate
joint ventures is $10 million, $18 million, $1,905 million, $46 million
and $156 million related to discontinued operations for the three months
ended December 31, 2004, March 31, 2005, June 30, 2005, September 30, 2005
and December 31, 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 $3
million, $24 million, $13 million, $26 million and $36 million for the
three months ended December 31, 2004, March 31, 2005, June 30, 2005,
September 30, 2005 and December 31, 2005, respectively. These amounts are
excluded from net investment gains (losses). Additionally, excluded from
net investment gains (losses) is ($7) million and ($6) million for the
three months ended September 30, 2005 and December 31, 2005, respectively,
related to derivative revaluation losses on derivatives used to hedge
interest rate and currency risk on policyholder account balances that do
not qualify for hedge accounting.
(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
------------------------------------------------------------------------
December 31, March 31, June 30, September 30, December 31,
Unaudited (Dollars in millions) 2004 2005 2005 2005 2005
- ------------------------------------------------------------------------------------------------------------------------------------
FIXED MATURITIES (2)
Yield (3) 6.53% 6.34% 6.37% 5.95% 6.02%
Income (4) $9,016 $2,279 $4,590 $7,456 $10,424
Investment gains (losses) $71 ($114) ($203) ($301) ($868)
Ending Carrying Value (4) $176,377 $182,267 $184,830 $232,041 $230,875
MORTGAGE AND CONSUMER LOANS
Yield (5) 6.99% 6.76% 6.79% 6.79% 6.81%
Income $1,951 $517 $1,052 $1,645 $2,236
Investment gains (losses) ($47) ($11) ($19) ($6) $17
Ending Carrying Value $32,406 $31,977 $33,586 $36,094 $37,190
REAL ESTATE AND REAL ESTATE
JOINT VENTURES
Yield (5) 11.69% 11.02% 11.82% 11.31% 10.59%
Income (6) $515 $119 $249 $367 $467
Investment gains (losses) (7) $162 $18 $1,922 $1,973 $2,139
Ending Carrying Value $4,233 $4,377 $3,998 $4,705 $4,665
POLICY LOANS
Yield (5) 6.15% 6.17% 6.18% 6.08% 6.00%
Income $541 $138 $277 $429 $572
Ending Carrying Value $8,899 $8,953 $8,975 $9,841 $9,981
EQUITY SECURITIES AND OTHER LIMITED
PARTNERSHIP INTERESTS (2)
Yield (5) 9.96% 9.90% 15.85% 12.47% 12.44%
Income $404 $118 $394 $556 $774
Investment gains (losses) $208 $95 $107 $127 $159
Ending Carrying Value $5,095 $5,514 $5,914 $7,403 $7,614
CASH AND SHORT-TERM INVESTMENTS (2)
Yield (5) 3.00% 4.77% 3.59% 3.52% 3.66%
Income $153 $64 $155 $277 $362
Investment gains (losses) ($1) ($1) ($1) ($1) ($2)
Ending Carrying Value $6,710 $6,470 $15,770 $11,431 $7,324
OTHER INVESTED ASSETS
Yield (5) 6.55% 9.09% 8.22% 8.67% 8.96%
Income (8) $290 $104 $206 $392 $570
Investment gains (losses) (9) ($149) ($8) $398 $389 $502
Ending Carrying Value $5,295 $5,331 $6,452 $7,877 $8,078
TOTAL INVESTMENTS
Gross investment income yield 6.69% 6.60% 6.69% 6.29% 6.35%
Investment fees and expenses yield (0.14%) (0.12%) (0.13%) (0.13%) (0.14%)
---------------------------------------------------------------------
NET INVESTMENT INCOME YIELD 6.55% 6.48% 6.56% 6.16% 6.21%
=====================================================================
Gross investment income $12,870 $3,339 $6,923 $11,122 $15,405
Investment fees and expenses (260) (60) (136) (223) (339)
---------------------------------------------------------------------
NET INVESTMENT INCOME $12,610 $3,279 $6,787 $10,899 $15,066
=====================================================================
Ending Carrying Value $239,015 $244,889 $259,525 $309,392 $305,727
=====================================================================
Gross investment gains $1,314 $373 $2,506 $2,848 $3,340
Gross investment losses (587) (322) (553) (857) (1,578)
Writedowns (212) (51) (93) (107) (116)
---------------------------------------------------------------------
Subtotal 515 0 1,860 1,884 1,646
Derivative & other instruments not qualifying for hedge
accounting (271) (21) 344 297 301
---------------------------------------------------------------------
NET INVESTMENT GAINS (LOSSES) 244 (21) 2,204 2,181 1,947
Minority interest - net investment gains (losses) (9) (9) (11) (12) (9)
Net investment gains (losses) tax benefit (provision) (77) 9 (775) (766) (681)
---------------------------------------------------------------------
NET INVESTMENT GAINS (LOSSES), NET OF INCOME TAXES $158 ($21) $1,418 $1,403 $1,257
---------------------------------------------------------------------
(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
$7,102 million, $213 million and $8 million, respectively, related to the
consolidation of separate accounts under AICPA Statement of Position 03-1
for year-to-date December 31, 2005.
(3) The fixed maturities yield is annualized and is based on quarterly average
amortized cost.
(4) Fixed maturities includes $825 million and $14 million in ending carrying
value and income, respectively, relating to trading securities for the
year ended December 31, 2005. The annualized yields on trading securities
was 2.74% for the twelve months ended December 31, 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 $169
million, $39 million, $54 million, $52 million and $58 million related to
discontinued operations for year-to-date December 31, 2004, March 31,
2005, June 30, 2005, September 30, 2005 and December 31, 2005,
respectively.
(7) Included in investment gains (losses) from real estate and real estate
joint ventures is $146 million, $18 million, $1,923 million, $1,969
million, and $2,125 million related to discontinued operations for
year-to-date December 31, 2004, March 31, 2005, June 30, 2005, September
30, 2005 and December 31, 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
$51 million, $24 million, $37 million, $63 million and $99 million for the
year to date December 31, 2004, March 31, 2005, June 30, 2005, September
30, 2005 and December 31, 2005, respectively. These amounts are excluded
from net investment gains (losses). Additionally, excluded from net
investment gains (losses) is ($7) million and ($13) million for the year-
to-date September 30, 2005 and December 31,2005, respectively, related to
derivative revaluation losses on derivatives used to hedge interest rate
and currency risk on policyholder account balances that do not qualify for
hedge accounting.
(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)
At December 31, 2004 At March 31, 2005 At June 30, 2005 At September 30, 2005
-------------------------------------------------------------------------------------------
Unaudited (Dollars in millions) Amount % of Total Amount % of Total Amount % of Total Amount % of Total
- ------------------------------------------------------------------------------------------------------------------------------------
Less than 20% $463 92.4% $1,185 99.1% $416 95.4% $1,758 95.9%
20% or more for less than six months 17 3.4% 5 0.4% 13 3.0% 69 3.8%
20% or more for six months or greater 21 4.2% 6 0.5% 7 1.6% 6 0.3%
-------------------------------------------------------------------------------------------
Total Gross Unrealized Losses $501 100.0% $1,196 100.0% $436 100.0% $1,833 100.0%
-------------------------------------------------------------------------------------------
Total Gross Unrealized Gains $10,267 $8,485 $11,250 $8,814
======= ======= ======= =======
At December 31, 2005
---------------------
Unaudited (Dollars in millions) Amount % of Total
- --------------------------------------------------------------
Less than 20% $2,159 97.9%
20% or more for less than six months 39 1.8%
20% or more for six months or greater 7 0.3%
---------------------
Total Gross Unrealized Losses $2,205 100.0%
---------------------
Total Gross Unrealized Gains $8,329
=======
GROSS UNREALIZED GAINS AND LOSSES AGING SCHEDULE
EQUITY SECURITIES (1)
At December 31, 2004 At March 31, 2005 At June 30, 2005 At September 30, 2005
-------------------------------------------------------------------------------------------
Unaudited (Dollars in millions) Amount % of Total Amount % of Total Amount % of Total Amount % of Total
- ------------------------------------------------------------------------------------------------------------------------------------
Less than 20% $7 87.5% $44 78.6% $25 62.5% $29 70.7%
20% or more for less than six months 1 12.5% 12 21.4% 15 37.5% 12 29.3%
20% or more for six months or greater 0 0.0% 0 0.0% 0 0.0% 0 0.0%
-------------------------------------------------------------------------------------------
Total Gross Unrealized Losses $8 100.0% $56 100.0% $40 100.0% $41 100.0%
-------------------------------------------------------------------------------------------
Total Gross Unrealized Gains $283 $169 $206 $256
======= ======= ======= =======
At December 31, 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 $295
=======
(1) The Company's review of its fixed maturities and equity securities for
impairments includes an analysis of the total gross unrealized losses by
three categories of securities: (i) securities where the estimated fair
value had declined and remained below amortized cost by less than 20%;
(ii) securities where the estimated 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 December 31, 2004 At March 31, 2005 At June 30, 2005 At September 30, 2005
---------------------------------------------------------------------------------------
Unaudited (Dollars in millions) Amount % of Total Amount % of Total Amount % of Total Amount % of Total
- -----------------------------------------------------------------------------------------------------------------------------------
U.S. corporate securities $61,720 34.9% $60,417 33.2% $61,614 33.4% $78,472 33.9%
Residential mortgage-backed securities 32,230 18.3% 34,650 19.0% 34,795 18.8% 43,200 18.8%
Foreign corporate securities 27,469 15.6% 27,395 15.0% 28,184 15.3% 34,837 15.1%
US treasury/agency securities 17,826 10.1% 21,770 12.0% 21,051 11.4% 26,468 11.4%
Commercial mortgage-backed securities 12,501 7.1% 13,372 7.3% 13,836 7.5% 17,389 7.5%
Asset-backed securities 10,876 6.2% 10,826 5.9% 10,373 5.6% 13,868 6.0%
Foreign government securities 8,568 4.8% 8,917 4.9% 10,129 5.5% 11,049 4.8%
State and political subdivision securities 3,899 2.2% 3,934 2.2% 3,780 2.0% 4,722 2.0%
Other fixed maturity securities 985 0.6% 703 0.4% 716 0.4% 1,038 0.4%
---------------------------------------------------------------------------------------
Total bonds 176,074 99.8% 181,984 99.9% 184,478 99.9% 231,043 99.9%
Redeemable preferred stock 303 0.2% 149 0.1% 155 0.1% 193 0.1%
---------------------------------------------------------------------------------------
Total fixed maturities $176,377 100.0% $182,133 100.0% $184,633 100.0% $231,236 100.0%
=======================================================================================
NAIC RATING AGENCY
RATING (1) EQUIVALENT DESIGNATION
1 Aaa / Aa / A $118,410 67.1% $125,528 68.9% $127,540 69.1% $163,963 70.9%
2 Baa 45,311 25.7% 44,054 24.2% 44,202 23.9% 51,438 22.2%
3 Ba 7,500 4.2% 7,392 4.1% 7,476 4.0% 9,665 4.2%
4 B 4,397 2.5% 4,634 2.5% 4,895 2.7% 5,532 2.4%
5 Caa and lower 366 0.2% 325 0.2% 335 0.2% 317 0.1%
6 In or near default 90 0.1% 51 0.0% 30 0.0% 128 0.1%
---------------------------------------------------------------------------------------
Total bonds 176,074 99.8% 181,984 99.9% 184,478 99.9% 231,043 99.9%
Redeemable preferred stock 303 0.2% 149 0.1% 155 0.1% 193 0.1%
---------------------------------------------------------------------------------------
Total Fixed Maturities $176,377 100.0% $182,133 100.0% $184,633 100.0% $231,236 100.0%
=======================================================================================
At December 31, 2005
---------------------
Unaudited (Dollars in millions) Amount % of Total
- -----------------------------------------------------------------
U.S. corporate securities $74,318 32.3%
Residential mortgage-backed securities 47,246 20.5%
Foreign corporate securities 34,981 15.2%
US treasury/agency securities 26,958 11.7%
Commercial mortgage-backed securities 17,698 7.7%
Asset-backed securities 11,573 5.0%
Foreign government securities 11,446 5.0%
State and political subdivision securities 4,750 2.1%
Other fixed maturity securities 888 0.4%
---------------------
Total bonds 229,858 99.9%
Redeemable preferred stock 192 0.1%
---------------------
Total fixed maturities $230,050 100.0%
=====================
NAIC RATING AGENCY
RATING (1) EQUIVALENT DESIGNATION
1 Aaa / Aa / A $165,577 72.0%
2 Baa 49,124 21.3%
3 Ba 9,142 4.0%
4 B 5,710 2.5%
5 Caa and lower 290 0.1%
6 In or near default 15 0.0%
---------------------
Total bonds 229,858 99.9%
Redeemable preferred stock 192 0.1%
---------------------
Total Fixed Maturities $230,050 100.0%
=====================
(1) Amounts presented are based on rating agency designations. Comparisons
between NAIC ratings and rating agency designations are published by the
NAIC.
METLIFE, INC.
SUMMARY OF COMMERCIAL MORTGAGE LOANS BY
REGION AND PROPERTY TYPE
At December 31, 2004 At March 31, 2005 At June 30, 2005 At September 30, 2005
---------------------------------------------------------------------------------------
Unaudited (Dollars in millions) Amount % of Total Amount % of Total Amount % of Total Amount % of Total
- -----------------------------------------------------------------------------------------------------------------------------------
Pacific $6,075 24.3% $5,888 23.9% $6,224 23.8% $6,664 24.5%
South Atlantic 5,696 22.8% 5,613 22.8% 6,005 23.0% 6,168 22.6%
Middle Atlantic 4,057 16.2% 3,898 15.8% 4,007 15.4% 4,273 15.7%
East North Central 2,550 10.2% 2,565 10.4% 2,868 11.0% 2,894 10.6%
West South Central 2,024 8.1% 2,139 8.7% 2,140 8.2% 2,131 7.8%
New England 1,412 5.6% 1,409 5.7% 1,438 5.5% 1,536 5.6%
International 1,364 5.5% 1,343 5.5% 1,395 5.3% 1,455 5.3%
Mountain 778 3.1% 780 3.2% 868 3.3% 938 3.5%
West North Central 667 2.7% 631 2.5% 698 2.7% 710 2.6%
East South Central 268 1.1% 267 1.1% 360 1.4% 384 1.4%
Other 99 0.4% 98 0.4% 97 0.4% 97 0.4%
---------------------------------------------------------------------------------------
Total $24,990 100.0% $24,631 100.0% $26,100 100.0% $27,250 100.0%
=======================================================================================
Office $11,500 46.0% $10,798 43.8% $11,776 45.0% $12,873 47.2%
Retail 5,698 22.8% 5,754 23.4% 6,073 23.3% 6,078 22.3%
Apartments 3,264 13.1% 3,330 13.5% 3,416 13.1% 3,435 12.7%
Industrial 2,499 10.0% 2,749 11.2% 2,813 10.8% 2,701 9.9%
Hotel 1,245 5.0% 1,212 4.9% 1,295 5.0% 1,419 5.2%
Other 784 3.1% 788 3.2% 727 2.8% 744 2.7%
---------------------------------------------------------------------------------------
Total $24,990 100.0% $24,631 100.0% $26,100 100.0% $27,250 100.0%
=======================================================================================
At December 31, 2005
--------------------
Unaudited (Dollars in millions) Amount % of Total
- ----------------------------------------------------------------
Pacific $6,818 24.3%
South Atlantic 6,093 21.7%
Middle Atlantic 4,689 16.7%
East North Central 3,078 11.0%
West South Central 2,069 7.4%
New England 1,295 4.6%
International 1,817 6.5%
Mountain 861 3.2%
West North Central 825 2.9%
East South Central 381 1.4%
Other 96 0.3%
--------------------
Total $28,022 100.0%
====================
Office $13,453 48.0%
Retail 6,398 22.8%
Apartments 3,102 11.1%
Industrial 2,656 9.5%
Hotel 1,355 4.8%
Other 1,058 3.8%
--------------------
Total $28,022 100.0%
--------------------
(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
December 31, March 31, June 30, September 30, December 31,
Unaudited (Dollars in millions) 2004 2005 2005 2005 2005
- ---------------------------------------------------------------------------------------------------------
Wholly owned $3,843 $3,767 $3,277 $3,919 $3,735
Joint ventures 386 606 718 783 926
----------------------------------------------------------------------
Subtotal 4,229 4,373 3,995 4,702 4,661
Foreclosed 4 4 3 3 4
----------------------------------------------------------------------
Total Real Estate (2) $4,233 $4,377 $3,998 $4,705 $4,665
======================================================================
SUMMARY OF MORTGAGES AND CONSUMER LOANS (1)
December 31, March 31, June 30, September 30, December 31,
Unaudited (Dollars in millions) 2004 2005 2005 2005 2005
- ----------------------------------------------------------------------------------------------------------
COMMERCIAL MORTGAGES $24,990 $24,631 $26,100 $27,250 $28,022
AGRICULTURAL MORTGAGES 5,907 5,929 6,040 7,474 7,700
CONSUMER LOANS 1,509 1,417 1,446 1,370 1,468
-----------------------------------------------------------------------
TOTAL $32,406 $31,977 $33,586 $36,094 $37,190
=======================================================================
DISTRIBUTION OF ASSETS UNDER MANAGEMENT
December 31, March 31, June 30, September 30, December 31,
Unaudited (Dollars in billions) 2004 2005 2005 2005 2005
- ---------------------------------------------------------------------------------------------------------
METLIFE $270.0 $276.9 $292.0 $358.9 $353.3
METLIFE SEPARATE ACCOUNT 86.8 85.8 89.5 124.0 127.9
----------------------------------------------------------------------
TOTAL ASSETS UNDER MANAGEMENT $356.8 $362.7 $381.5 $482.9 481.2
======================================================================
(1) Includes real estate held-for-sale and held-for-investment.
42
(METLIFE LOGO)
COMPANY RATINGS AS OF FEBRUARY 6, 2006
Moody's
Investors Standard & A.M. Best Fitch
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 Insurance Company Aa2 * AA * A+ AA
The Travelers Insurance Company (Short-term rating) P-1 NR NR NR
The Travelers Life and Annuity Company Aa2 * AA * A+ AA
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 Debt A2 * A * a * A
Commercial Paper P-1 * A-1 MB -1 * F1
Subordinated Debt (p) A3 * NR a- * NR
Preferred Stock Baa1 * BBB+ * bbb+ * A-
Non-Cumulative Perpetual Preferred Stock Baa1 * BBB * bbb+ * A-
MetLife Capital Trust II
Trust Preferred Stock A3 * BBB+ * a- * A-
MetLife Capital Trust III
Trust 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 Debt Aa2 * AA aa * NR
Metropolitan Life Insurance Company
Surplus Notes A1 * A+ * a+ * A+
Reinsurance Group of America, Incorporated
Senior Unsecured Debt Baa1 A- * a- * A-
Junior Subordinated Debt Baa3 BBB- * bbb * BBB+
RGA Capital Trust I
Preferred Stock Baa2 BBB * bbb+ * BBB+
RGA Capital Trust II
Preferred Stock Baa2 BBB * bbb+ * BBB+
* Moody's, Standard & Poor's and A.M. Best's outlook for these ratings is
negative.
(P) Preliminary
(NR) Not Rated
43