Exhibit 99.1
MetLife1Q2006Rls - 04-26-2006-4PM-DRAFT.doc
Contacts: For Media: John Calagna
(212) 578-6252
For Investors: Tracey Dedrick
(212) 578-5140
METLIFE ANNOUNCES FIRST QUARTER 2006 RESULTS
-- REPORTS NET INCOME AVAILABLE TO COMMON SHAREHOLDERS OF
$0.93 PER DILUTED COMMON SHARE --
-- REPORTS RECORD OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
OF $1.33 PER DILUTED COMMON SHARE --
-- UPDATES FULL YEAR 2006 OPERATING EARNINGS PER COMMON SHARE GUIDANCE --
NEW YORK, April 27, 2006 -- MetLife, Inc. (NYSE: MET) today reported first
quarter 2006 net income available to common shareholders of $714 million, or
$0.93 per diluted common share, compared with $987 million, or $1.33 per diluted
common share, for the first quarter of 2005.
<Table>
<Caption>
For the three months ended March 31,
------------------------------------------------------------
2006 2005
-------------------------- ---------------------------
(in millions, except per diluted common share data)
Net income available to common shareholders $714 $987
Net income available to common shareholders per
diluted common share $0.93 $1.33
Operating earnings available to common shareholders(1)
$1,025 $822
Operating earnings available to common shareholders
per diluted common share(1) $1.33 $1.11
Book value per diluted common share $34.50 $31.15
-
Book value per diluted common share, excluding
accumulated other comprehensive income(1)
$33.73 $28.23
-
</Table>
(1) Operating earnings available to common shareholders, operating earnings
available to common shareholders per diluted common share and book value per
diluted common share (excluding accumulated other comprehensive income) are not
calculated based on generally accepted accounting principles ("GAAP").
Information regarding non-GAAP financial measures in this press release and the
reconciliation of them to GAAP measures are provided in the Non-GAAP and Other
Financial Disclosures section below, as well as in the tables that accompany
this release.
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FIRST QUARTER HIGHLIGHTS
- - Earned total premiums, fees and other revenues of $7.9 billion, a 12%
increase over the prior year period
- - Annuity deposits in the United States reached a record $3.8 billion, an
increase of 51% over the prior year period
- - Total assets increased to approximately $500 billion
- - Continued strong investment results
Operating earnings available to common shareholders for the first quarter of
2006 were $1,025 million, or $1.33 per diluted common share, compared with $822
million, or $1.11 per diluted common share, for the prior year period.
"MetLife had a very strong first quarter as operating earnings available to
common shareholders reached a record $1 billion," said C. Robert Henrikson,
chairman of the board, president and chief executive officer of MetLife, Inc.
"During the quarter, we continued to see the benefits of the Travelers
acquisition, which added to our strong and diverse product portfolio and broad
distribution capabilities. Already the leader in a number of markets, MetLife is
well positioned to continue growing our core businesses as we focus on meeting
the needs of our customers and delivering value to shareholders."
EARNINGS GUIDANCE
In light of the company's strong performance in the first quarter of 2006 and
anticipated strong results for the remainder of the year, MetLife also announced
today that it is revising its previously announced full year 2006 operating
earnings guidance from $4.25 to $4.50 per common share to between $4.55 and
$4.75 per common share.
FIRST QUARTER SEGMENT OVERVIEW
Reconciliations of segment net income available to common shareholders to
segment operating earnings available to common shareholders are provided in the
tables that accompany this release.
INSTITUTIONAL BUSINESS EARNINGS UP 28%
Institutional Business operating earnings available to common shareholders in
the first quarter of 2006 were $416 million, compared with $324 million in the
prior year period, which includes the impact of the Travelers acquisition and
favorable investment and expense results across Institutional Business.
Retirement & savings earnings increased 58% over the prior year period due in
large part to the acquisition of Travelers, favorable investment results and an
increase in earnings from underwriting. Group life earnings were down slightly
versus the year ago period. Favorable expense results were offset by slightly
lower investment earnings. Underwriting results were in line with the previous
year period. Earnings in the non-medical health & other segment were up 3%,
driven by favorable investment and expense results, partially offset by lower
earnings from underwriting.
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Non-medical health premiums, fees and other revenues increased 12% over the
prior year period, reflecting continued strong growth across all product lines.
Group life premiums, fees, and other revenues grew by 13% over the prior year
period. Underlying business growth driven by favorable retention of existing
customers was the primary driver of the increase.
INDIVIDUAL BUSINESS EARNINGS UP 27%
Individual Business operating earnings available to common shareholders were
$408 million in the first quarter of 2006, compared with $321 million in the
prior year period. The strong growth in the segment was due to Travelers as well
as continued growth in the business. Fees for investment-type products within
the annuity business increased 92% compared with the prior year period as a
result of growth in the separate account assets. Annuity earnings increased 54%
over the prior year period as results continued to benefit from strong
investment performance and spread management. In addition, combined life
earnings were up 6% due to growth in the business, partially offset by
unfavorable mortality.
During the quarter, annuity deposits increased 51% over the prior year period to
reach a record $3.8 billion. In addition, total first year life premiums and
deposits increased nearly 50%, reflecting broader distribution resulting from
the Travelers acquisition and a growing agency sales force.
AUTO & HOME EARNINGS UP 22%
Auto & Home operating earnings available to common shareholders were $93 million
in the first quarter of 2006, compared with $76 million in the prior year
period. Auto & Home's strong results were due to an improved combined ratio of
89.6%, which resulted from lower automobile claim frequencies, moderate auto
claim severity and $9 million, net of income taxes, in favorable claim
development related to prior accident years in the first quarter of 2006. Mild
weather conditions in the Northeast during the first quarter contributed to the
excellent claim experience.
INTERNATIONAL EARNINGS UP 10%
International operating earnings available to common shareholders were $75
million in the first quarter of 2006, compared with $68 million in the prior
year period. Earnings in this segment increased due to unusually strong business
performance in Asia Pacific and Latin America.
STRONG INVESTMENT PERFORMANCE
During the first quarter of 2006, MetLife's investment results continued to be
strong, enhanced by sustained solid performance in corporate joint ventures. The
company undertook a strategic repositioning of its investment portfolio during
the quarter to take advantage of rising interest rates. This repositioning,
while enhancing the portfolio, contributed to higher net realized losses, net of
income taxes, of $406 million. Also included in this result were derivative
losses, net of income taxes, of $164 million. The company's derivative positions
provide MetLife with protection against interest rate and currency movements and
the losses related to positions that do not qualify for hedge accounting.
Earnings Conference Call
MetLife will hold its first quarter 2006 earnings conference call and audio
Webcast on Friday, April 28, 2006, from 8:00 to 9:00 a.m. (ET). The conference
call will be available live via telephone and the Internet. To listen over the
telephone, dial (612) 326-1003 (domestic and international callers). To listen
to the conference call over the Internet, visit www.metlife.com
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(through a link on the Investor Relations page). Those who want to listen to the
call on the telephone or via the Internet should dial in or go to the Web site
at least fifteen minutes prior to the call to register, and/or download and
install any necessary audio software.
The conference call will be available for replay via telephone and the Internet
beginning at 11:30 a.m. (ET) on Friday, April 28, 2006, until Friday, May 5,
2006, at 11:59 p.m. (ET). To listen to a replay of the conference call over the
telephone, dial (320) 365-3844 (domestic and international callers). The access
code for the replay is 823165. To access the replay of the conference call over
the Internet, visit the above-mentioned Web site.
Non-GAAP and Other Financial Disclosures
MetLife analyzes its performance using so-called non-GAAP measures, including
operating earnings available to common shareholders and operating earnings
available to common shareholders per diluted common share. Operating earnings
available to common shareholders is defined as GAAP net income, excluding net
investment gains and losses, net of income taxes, adjustments related to net
investment gains and losses, net of income taxes, and discontinued operations
other than discontinued real estate, net of income taxes, less preferred stock
dividends which are recorded in Corporate & Other. Scheduled settlement payments
on derivative instruments not qualifying for hedge accounting treatment are
included in operating earnings available to common shareholders. Operating
earnings available to common shareholders per diluted common share is calculated
by dividing operating earnings available to common shareholders by the number of
weighted average diluted common shares outstanding for the period indicated.
MetLife believes these measures enhance the understanding and comparability of
its performance by excluding net investment gains and losses, net of income
taxes, and adjustments related to net investment gains and losses, net of income
taxes, both of which can fluctuate significantly from period to period, and
discontinued operations other than discontinued real estate, net of income
taxes, thereby highlighting the results from operations and the underlying
profitability drivers of the business. Operating earnings available to common
shareholders and operating earnings available to common shareholders per diluted
common share should not be viewed as substitutes for GAAP net income available
to common shareholders and GAAP net income available to common shareholders per
diluted common share, respectively.
4
<Table>
<Caption>
For the three months ended March 31,
-----------------------------------------------------------
2006 2005
---------------------------- ---------------------------
(in millions, except per diluted common share data)
Net income available to common shareholders $714 $0.93 $987 $1.33
Net investment (gains) losses, net of income taxes(1) 406 0.53 21 0.03
Adjustments related to net investment (gains) losses,
net of income taxes(2) (95) (0.13) (36) (0.05)
Discontinued operations, net of income taxes(3) -- -- (150) (0.20)
------------ ------------ ----------- -----------
Operating earnings available to common shareholders $1,025 $1.33 $822 $1.11
============ ============ =========== ===========
Book value per diluted common share $34.50 $31.15
Accumulated other comprehensive income per diluted common
share (0.77) (2.92)
------------ -----------
Book value per diluted common share, excluding
accumulated other comprehensive income $33.73 $28.23
------------ -----------
</Table>
(1) Net investment (gains) losses, net of income taxes, includes (gains) losses
on sales of real estate and real estate joint ventures related to discontinued
operations of $3 million and $(12) million for the three months ended March 31,
2006 and 2005, respectively, and excludes (gains) losses of $(25) million and
$(16) million for the three months ended March 31, 2006 and 2005, respectively,
from scheduled settlement payments on derivative instruments not qualifying for
hedge accounting treatment.
(2) Adjustments related to net investment (gains) losses, net of income taxes,
include amortization of unearned revenue and deferred policy acquisition costs,
adjustments to the policyholder dividend obligation and amounts allocable to
certain participating contracts.
(3) Discontinued operations, net of income taxes, excludes (gains) losses on
sales of real estate and real estate joint ventures related to discontinued
operations.
This release contains statements which constitute forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995,
including statements relating to trends in the operations and financial results
and the business and the products of the company and its subsidiaries, as well
as other statements including words such as "anticipate," "believe," "plan,"
"estimate," "expect," "intend" and other similar expressions. Forward-looking
statements are made based upon management's current expectations and beliefs
concerning future developments and their potential effects on the company. Such
forward-looking statements are not guarantees of future performance.
Actual results may differ materially from those included in the forward-looking
statements as a result of risks and uncertainties including, but not limited to,
the following: (i) changes in general economic conditions, including the
performance of financial markets and interest rates; (ii) heightened
competition, including with respect to pricing, entry of new competitors and the
development of new products by new and existing competitors; (iii) unanticipated
changes in industry trends; (iv) the company's primary reliance, as a holding
company, on dividends from its subsidiaries to meet debt payment obligations and
the applicable regulatory restrictions on the ability of the subsidiaries to pay
such dividends; (v) deterioration in the experience of the "closed block"
established in connection with the reorganization of Metropolitan Life Insurance
Company; (vi) catastrophe losses; (vii) adverse results or other consequences
from litigation,
5
arbitration or regulatory investigations; (viii) regulatory, accounting or tax
changes that may affect the cost of, or demand for, the company's products or
services; (ix) downgrades in the company's and its affiliates' claims paying
ability, financial strength or credit ratings; (x) changes in rating agency
policies or practices; (xi) discrepancies between actual claims experience and
assumptions used in setting prices for the company's products and establishing
the liabilities for the company's obligations for future policy benefits and
claims; (xii) discrepancies between actual experience and assumptions used in
establishing liabilities related to other contingencies or obligations; (xiii)
the effects of business disruption or economic contraction due to terrorism or
other hostilities; (xiv) the company's ability to identify and consummate on
successful terms any future acquisitions, and to successfully integrate acquired
businesses with minimal disruption; and (xv) other risks and uncertainties
described from time to time in the company's filings with the Securities and
Exchange Commission, including its S-1 and S-3 registration statements. The
company specifically disclaims any obligation to update or revise any
forward-looking statement, whether as a result of new information, future
developments or otherwise.
MetLife, Inc. is a leading provider of insurance and other financial services to
millions of individual and institutional customers throughout the United States.
Through its subsidiaries and affiliates, MetLife, Inc. offers life insurance,
annuities, automobile and homeowner's insurance and retail banking services to
individuals, as well as group insurance, reinsurance and retirement and savings
products and services to corporations and other institutions. Outside the U.S.,
the MetLife companies have direct insurance operations in Asia Pacific, Latin
America and Europe. For more information, please visit www.metlife.com.
For a copy of MetLife's Quarterly Financial Supplement, please visit
www.metlife.com.
# # #
6
MetLife, Inc.
Consolidated Statements of Income
Unaudited
(in millions)
Three months ended March 31,
----------------------------------
2006 2005
--------------- ---------------
Premiums $ 6,428 $ 5,966
Universal life and investment-type product policy fees 1,175 791
Net investment income 4,239 3,216
Other revenues 328 299
Net investment gains (losses) (585) (15)
--------------- ---------------
Total revenues 11,585 10,257
--------------- ---------------
Policyholder benefits and claims 6,405 5,926
Interest credited to policyholder account balances 1,215 795
Policyholder dividends 421 415
Other expenses 2,498 1,971
--------------- ---------------
Total expenses 10,539 9,107
--------------- ---------------
Income from continuing operations before provision for income taxes 1,046 1,150
Provision for income taxes 296 350
--------------- ---------------
Income from continuing operations 750 800
Income (loss) from discontinued operations, net of income taxes (3) 187
--------------- ---------------
Net income 747 987
Preferred stock dividends 33 -
--------------- ---------------
Net income available to common shareholders $ 714 $ 987
=============== ===============
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS RECONCILIATION
---------------
Net income available to common shareholders 714 987
Net investment gains (losses) (624) (21)
Minority interest - net investment gains (losses) (2) (9)
Net investment gains (losses) tax provision 220 9
--------------- ---------------
Net investment gains (losses), net of income taxes (1) (2) (406) (21)
Adjustments related to universal life and investment -
type product policy fees (3) -
Adjustments related to policyholder benefits and dividends 108 70
Adjustments related to other expenses 42 (15)
Adjustments related to tax provision (52) (19)
--------------- ---------------
Adjustments related to net investment gains (losses), net of income taxes (3) 95 36
Discontinued operations, net of income taxes (4) - 150
--------------- ---------------
Operating earnings available to common shareholders $ 1,025 $ 822
=============== ===============
(1) Net investment gains (losses), net of income taxes, includes gains (losses)
on sales of real estate and real estate joint ventures related to
discontinued operations, of ($3) million and $12 million for the three
months ended March 31, 2006 and 2005, respectively.
(2) Net investment gains (losses), net of income taxes, excludes gains (losses)
of $25 million and $16 million for the three months ended March 31, 2006
and 2005, respectively, from scheduled settlement payments on derivative
instruments not qualifying for hedge accounting treatment.
(3) Adjustments related to net investment gains (losses), net of income taxes,
includes amortization of unearned revenue and deferred policy acquisition
costs, adjustments to the policyholder dividend obligation and amounts
allocable to certain participating contracts.
(4) Discontinued operations, net of income taxes, excludes gains (losses) on
sales of real estate and real estate joint ventures related to discontinued
operations.
MetLife, Inc.
Financial Highlights
Unaudited
(in millions, except per common share data or unless otherwise noted)
At or for the three months
ended March 31,
----------------------------------
2006 2005
--------------- ---------------
Other Financial Data:
Net income available to common shareholders $ 714 $ 987
Operating earnings available to common shareholders $ 1,025 $ 822
Total assets (billions) $ 499.1 $ 362.7
Individual Business Sales Data:
Total first year life premiums and deposits $ 309 $ 207
Variable and Universal life first year premiums and deposits (including COLI/BOLI) $ 259 $ 160
Total annuity deposits $ 3,843 $ 2,540
Earnings Per Share Calculation:
Weighted average common shares outstanding - diluted 768.8 739.6
Operating earnings available to common shareholders per common share - diluted $ 1.33 $ 1.11
Net income available to common shareholders per common share - diluted $ 0.93 $ 1.33
MetLife, Inc.
Balance Sheet Data
March 31, 2006 (Unaudited) and December 31, 2005 (Audited)
(in millions)
At March 31, At December 31,
----------------------------------
2006 2005
--------------- ---------------
Balance Sheet Data:
General account assets $ 366,580 $ 353,776
Separate account assets 132,522 127,869
--------------- ---------------
Total assets $ 499,102 $ 481,645
=============== ===============
Policyholder liabilities (including amounts of closed block) $ 262,960 $ 262,371
Short-term debt 1,360 1,414
Long-term debt 9,932 9,888
Junior subordinated debt securities underlying common equity units 2,134 2,134
Shares subject to mandatory redemption 278 278
Other liabilities 61,349 48,590
Separate account liabilities 132,522 127,869
--------------- ---------------
Total liabilities 470,535 452,544
--------------- ---------------
Preferred stock, at par value 1 1
Common stock, at par value 8 8
Additional paid-in capital 17,327 17,274
Retained earnings 11,579 10,865
Treasury stock (938) (959)
Accumulated other comprehensive income 590 1,912
--------------- ---------------
Total stockholders' equity 28,567 29,101
--------------- ---------------
Total liabilities and stockholders' equity $ 499,102 $ 481,645
=============== ===============
MetLife, Inc.
Reconciliations of Net Income Available to Common Shareholders to Operating
Earnings Available to Common Shareholders
Unaudited
(in millions)
Three months ended March 31,
------------------------------------
2006 2005
---------------- -----------------
Total Institutional Operations
Net income available to common shareholders $ 213 $ 349
Net investment gains (losses), net of income taxes (219) 2
Adjustments related to net investment gains (losses), net of income taxes 16 23
--------------- ---------------
Operating earnings available to common shareholders $ 416 $ 324
=============== ===============
Institutional Operations
Group Life
Net income available to common shareholders $ 90 $ 88
Net investment gains (losses), net of income taxes (2) (9)
Adjustments related to net investment gains (losses), net of income taxes 1 -
--------------- ---------------
Operating earnings available to common shareholders $ 91 $ 97
=============== ===============
Retirement & Savings
Net income available to common shareholders $ 86 $ 188
Net investment gains (losses), net of income taxes (168) 12
Adjustments related to net investment gains (losses), net of income taxes (7) 11
--------------- ---------------
Operating earnings available to common shareholders $ 261 $ 165
=============== ===============
Non-Medical Health & Other
Net income available to common shareholders $ 37 $ 73
Net investment gains (losses), net of income taxes (49) (1)
Adjustments related to net investment gains (losses), net of income taxes 22 12
--------------- ---------------
Operating earnings available to common shareholders $ 64 $ 62
=============== ===============
Total Individual Operations
Net income available to common shareholders $ 304 $ 368
Net investment gains (losses), net of income taxes (170) 32
Adjustments related to net investment gains (losses), net of income taxes 66 15
--------------- ---------------
Operating earnings available to common shareholders $ 408 $ 321
=============== ===============
Individual Operations
Traditional Life
Net income available to common shareholders $ 94 $ 172
Net investment gains (losses), net of income taxes (44) 45
Adjustments related to net investment gains (losses), net of income taxes 40 15
--------------- ---------------
Operating earnings available to common shareholders $ 98 $ 112
=============== ===============
Variable & Universal Life
Net income available to common shareholders $ 58 $ 41
Net investment gains (losses), net of income taxes (25) (8)
Adjustments related to net investment gains (losses), net of income taxes 9 (2)
--------------- ---------------
Operating earnings available to common shareholders $ 74 $ 51
=============== ===============
Annuities
Net income available to common shareholders $ 141 $ 150
Net investment gains (losses), net of income taxes (102) 1
Adjustments related to net investment gains (losses), net of income taxes 17 2
--------------- ---------------
Operating earnings available to common shareholders $ 226 $ 147
=============== ===============
Other
Net income available to common shareholders $ 11 $ 5
Net investment gains (losses), net of income taxes 1 (6)
--------------- ---------------
Operating earnings available to common shareholders $ 10 $ 11
=============== ===============
Total Auto & Home
Net income available to common shareholders $ 91 $ 76
Net investment gains (losses), net of income taxes (2) -
--------------- ---------------
Operating earnings available to common shareholders $ 93 $ 76
=============== ===============
Auto & Home
Auto
Net income available to common shareholders $ 64 $ 43
Net investment gains (losses), net of income taxes (1) -
--------------- ---------------
Operating earnings available to common shareholders $ 65 $ 43
=============== ===============
Three months ended March 31,
------------------------------------
2006 2005
---------------- -----------------
Homeowners
Net income available to common shareholders $ 27 $ 31
Net investment gains (losses), net of income taxes (1) -
--------------- ---------------
Operating earnings available to common shareholders $ 28 $ 31
=============== ===============
Other
Net income available to common shareholders $- $ 2
Net investment gains (losses), net of income taxes - -
--------------- ---------------
Operating earnings available to common shareholders $- $ 2
=============== ===============
International
Net income available to common shareholders $ 104 $ 76
Net investment gains (losses), net of income taxes 14 -
Adjustments related to net investment gains (losses), net of income taxes 15 9
Discontinued operations, net of income taxes - (1)
--------------- ---------------
Operating earnings available to common shareholders $ 75 $ 68
=============== ===============
Reinsurance
Net income available to common shareholders $ 26 $ 29
Net investment gains (losses), net of income taxes 4 15
Adjustments related to net investment gains (losses), net of income taxes (2) (11)
--------------- ---------------
Operating earnings available to common shareholders $ 24 $ 25
=============== ===============
</Table>