Exhibit 99.2
(METLIFE LOGO)
FIRST QUARTER
FINANCIAL SUPPLEMENT
MARCH 31, 2006
1
(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 8
INSTITUTIONAL OPERATIONS
Statements of Operating Earnings Available to Common Shareholders 9
Premiums, Fees and Other Revenues by Product and Additional Statistical Information 13
Future Policy Benefits and Policyholder Account Balances and Separate Account Liabilities 14
Other Expenses by Major Category 15
Spreads by Product 16
INDIVIDUAL OPERATIONS
Statements of Operating Earnings Available to Common Shareholders 17
Premiums and Deposits by Product 22
Additional Statistical Information 23
Future Policy Benefits and Policyholder Account Balances and Separate Account Liabilities 24
Insurance Expenses and Other Expenses by Major Category 25
Spreads by Product 26
AUTO & HOME OPERATIONS
Statements of Operating Earnings Available to Common Shareholders 27
Written Premiums by Product and Selected Financial Information and Supplemental Data 31
INTERNATIONAL OPERATIONS
Statement of Operating Earnings Available to Common Shareholders 32
REINSURANCE OPERATIONS
Statement of Operating Earnings Available to Common Shareholders 33
Pre-Tax and Pre-Minority Interest Operating Earnings by Region and Reserves by Region 34
CORPORATE, OTHER & ELIMINATIONS
Statement of Operating Earnings Available to Common Shareholders 35
METLIFE, INC
Investment Results by Asset Category and Annualized Yields 36
Fixed Maturities and Equity Securities Gross Unrealized Gains and Losses Aging Schedules 38
Summary of Fixed Maturities Available for Sale by Sector and Quality Distribution, and Summary of Commercial
Mortgage Loans by Region and Property Type 39
Summary of Real Estate and Summary of Mortgages and Consumer Loans 40
OTHER INFORMATION
Company Ratings 41
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 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 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 APRIL 27, 2006, FOR THE QUARTER ENDED MARCH 31,
2006, 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
-------------------------------------------------------------------
March 31, June 30, September 30, December 31, March 31,
2005 2005 2005 2005 2006
-------------------------------------------------------------------
Net income $987 $2,245 $773 $709 $747
Preferred stock dividends 0 0 31 32 33
-------------------------------------------------------------------
Net income available to common shareholders 987 2,245 742 677 714
Net investment gains (losses) (21) 2,225 (23) (234) (624)
Minority interest - net investment gains (losses) (9) (2) (1) 3 (2)
Net investment gains (losses) tax benefit (provision) 9 (784) 9 85 220
-------------------------------------------------------------------
Net investment gains (losses), net of income taxes (2) (3) (21) 1,439 (15) (146) (406)
Adjustments related to universal life and
investment-type product policy fees 0 0 0 0 (3)
Adjustments related to policyholder benefits and
dividends 70 (86) (55) (9) 108
Adjustments related to other expenses (15) (9) 7 30 42
Adjustments related to tax benefit (provision) (19) 32 18 (9) (52)
-------------------------------------------------------------------
Adjustments related to net investment gains (losses), net of
income taxes (4) 36 (63) (30) 12 95
Discontinued operations, net of income taxes 150 (1) 7 12 0
-------------------------------------------------------------------
Operating earnings available to common shareholders (1) $822 $870(6) $780(7) $799 $1,025
===================================================================
Net income available to common shareholders per common share -
diluted $1.33 $3.02 $0.97 $0.88 $0.93
Net investment gains (losses), net of income taxes (0.03) 1.94 (0.02) (0.20) (0.53)
Adjustments related to net investment gains (losses), net of
income taxes 0.05 (0.09) (0.03) 0.02 0.13
Discontinued operations, net of income taxes 0.20 0.00 0.01 0.02 0.00
-------------------------------------------------------------------
Operating earnings available to common shareholders - diluted $1.11 $1.17 $1.01 $1.04 $1.33
===================================================================
Weighted average common shares outstanding - diluted 739.6 743.1 768.7 769.0 768.8
Book value per common share (actual common shares outstanding) $31.43 $35.60 $35.29 $35.72 $ 34.98
Book value per common share, excluding accumulated other
comprehensive income (actual common shares outstanding) $28.48 $31.41 $32.81 $33.20 $ 34.21
Book value per common share - diluted (weighted average common
shares outstanding) $31.15 $35.16 $34.75 $35.19 $34.50
Book value per common share, excluding accumulated other
comprehensive income - diluted (weighted average common
shares outstanding) $28.23 $31.02 $32.32 $32.70 $33.73
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For the Three Months Ended
--------------------------------------------------------------------
March 31, June 30, September 30, December 31, March 31,
2005 2005 2005 2005 2006
--------------------------------------------------------------------
Common shares outstanding, beginning of period 732.5 733.1 733.9 757.1 757.5
Treasury stock 0.6 0.8 23.2 0.4 0.7
--------------------------------------------------------------------
Common shares outstanding, end of period 733.1 733.9 757.1 757.5 758.2
Weighted average common shares outstanding - basic 734.0 736.5 759.8 761.1 762.0
Dilutive effect of stock options 5.6 6.4 8.6 7.7 6.5
Dilutive effect of LTPCP shares 0.0 0.2 0.3 0.2 0.3
--------------------------------------------------------------------
Weighted average common shares outstanding - diluted 739.6 743.1 768.7 769.0 768.8
====================================================================
Policyholder Trust Shares 315.4 310.9 307.8 298.8 294.0
SUPPLEMENTAL DATA
Adjusted long-term debt to total capital (5) 24.2% 29.4% 28.3% 29.0% 28.5%
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(1) Presentation of operating earnings available to common shareholders
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 $16 million, $8 million, $17 million, $23 million
and $25 million, for the three months ended March 31, 2005, June 30, 2005,
September 30, 2005, December 31, 2005 and March 31, 2006, 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 $12 million,
$1,227 million, $30 million, $100 million and ($3) million, for the three
months ended March 31, 2005, June 30, 2005, September 30, 2005, December
31, 2005 and March 31, 2006, respectively.
(4) 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.
(5) Adjusted long-term debt at March 31, 2005, June 30, 2005, September 30,
2005, December 31, 2005 and March 31, 2006 consists of $6,657 million,
$8,319 million, $8,297 million, $8,017 million and $8,027 million of
long-term debt, respectively, $0, $2,134 million, $2,134 million, $2,134
million and $2,134 million of junior subordinated debt securities
underlying common equity units, and $113 million, $115 million, $272
million, $1,073 million and $1,084 million of adjusted short-term debt,
respectively. Non-recourse debt not included in adjusted long-term debt
consists of $757 million, $985 million, $1,195 million, $1,871 million and
$1,904 million, respectively. Non-core borrowings not included in adjusted
short-term debt consist of $1,007 million, $1,864 million, $1,031 million,
$536 million and $276 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.
(6) 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.
(7) 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
-----------------------------------------------------------
March 31, June 30, September 30, December 31, March 31,
Unaudited (Dollars in millions) 2005 2005 2005 2005 2006
- ----------------------------------------------------------------------------------------------------------------
ASSETS
Fixed maturities, at fair value $182,267 $184,830 $232,041 $230,875 $240,711
Equity securities, at fair value 2,463 2,531 3,058 3,338 3,356
Mortgage and consumer loans 31,977 33,586 36,094 37,190 37,351
Policy loans 8,953 8,975 9,841 9,981 9,987
Real estate and real estate joint ventures 4,377 3,998 4,705 4,665 4,700
Other limited partnership interests 3,051 3,383 4,345 4,276 4,514
Short-term investments 2,550 2,169 4,481 3,306 3,368
Other invested assets 5,331 6,452 7,877 8,078 8,386
-----------------------------------------------------------
TOTAL INVESTMENTS 240,969 245,924 302,442 301,709 312,373
Cash and cash equivalents 3,920 13,601 6,950 4,018 5,144
Accrued investment income 2,433 2,450 3,299 3,036 3,145
Premiums and other receivables 7,514 7,821 14,391 12,186 12,731
Deferred policy acquisition costs 14,789 14,865 19,211 19,641 20,245
Assets of subsidiaries held-for-sale 32 33 0 0 0
Goodwill 612 614 4,564 4,797 4,797
Other assets 6,634 6,758 8,017 8,389 8,145
Separate account assets 85,786 89,459 124,044 127,869 132,522
-----------------------------------------------------------
TOTAL ASSETS $362,689 $381,525 $482,918 $481,645 $499,102
===========================================================
LIABILITIES AND EQUITY LIABILITIES
- ----------------------------------
Future policy benefits $100,624 $103,175 $121,591 $123,204 $122,748
Policyholder account balances 88,826 90,080 127,431 128,312 129,860
Other policyholder funds 7,523 7,650 8,521 8,331 8,620
Policyholder dividends payable 896 939 978 917 918
Policyholder dividend obligation 1,737 2,477 1,735 1,607 814
Short-term debt 1,120 1,979 1,303 1,414 1,360
Long-term debt 7,430 9,389 9,576 9,888 9,932
Junior subordinated debt securities
underlying common equity units 0 2,134 2,134 2,134 2,134
Shares subject to mandatory redemption 278 278 278 278 278
Liabilities of subsidiaries held-for-sale 27 28 0 0 0
Current income tax payable 31 635 97 69 88
Deferred income tax payable 2,414 3,201 1,456 1,706 1,199
Payables for collateral under securities
loaned and other transactions 31,713 31,632 40,127 34,515 47,059
Other liabilities 11,246 10,298 14,890 12,300 13,003
Separate account liabilities 85,786 89,459 124,044 127,869 132,522
-----------------------------------------------------------
TOTAL LIABILITIES 339,651 353,354 454,161 452,544 470,535
-----------------------------------------------------------
EQUITY
-------
Preferred stock, at par value 0 1 1 1 1
Common stock, at par value 8 8 8 8 8
Additional paid-in capital 15,043 16,974 17,273 17,274 17,327
Retained earnings 7,595 9,841 10,582 10,865 11,579
Treasury stock (1,764) (1,733) (981) (959) (938)
Accumulated other comprehensive income 2,156 3,080 1,874 1,912 590
-----------------------------------------------------------
TOTAL STOCKHOLDERS' EQUITY 23,038 28,171 28,757 29,101 28,567
-----------------------------------------------------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $362,689 $381,525 $482,918 $481,645 $499,102
===========================================================
3
(METLIFE LOGO)
METLIFE, INC.
CONSOLIDATED STATEMENTS OF OPERATING EARNINGS
AVAILABLE TO COMMON SHAREHOLDERS
For the Three Months Ended
-------------------------------------------------------------
March 31, June 30, September 30, December 31, March 31,
Unaudited (Dollars in millions) 2005 2005 2005 2005 2006
- --------------------------------------------------------------------------------------------------------------------------------
REVENUES
Premiums $5,966 $6,034 $6,514 $6,346 $6,428
Universal life and investment-type product policy fees 791 813 1,112 1,112 1,178
Investment income, net 3,279 3,508 4,112 4,167 4,278
Other revenues 299 301 348 323 328
-------------------------------------------------------------
10,335 10,656 12,086 11,948 12,212
-------------------------------------------------------------
EXPENSES
Policyholder benefits and dividends 6,411 6,589 7,208 6,897 6,934
Interest credited to policyholder account balances 795 820 1,156 1,167 1,220
Interest credited to bank deposits 17 25 30 37 43
Interest expense 119 125 183 185 198
Other expenses 1,811 1,844 2,408 2,487 2,297
-------------------------------------------------------------
9,153 9,403 10,985 10,773 10,692
-------------------------------------------------------------
Operating earnings before provision (benefit) for
income taxes 1,182 1,253 1,101 1,175 1,520
Provision for income taxes 360 383 290 344 462
-------------------------------------------------------------
Operating earnings 822 870 811 831 1,058
Preferred stock dividends 0 0 31 32 33
-------------------------------------------------------------
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $822 $870 (2) $780 (3) $799 $1,025
=============================================================
NET INCOME RECONCILIATION
- --------------------------
Operating earnings available to common shareholders $822 $870 $780 $799 $1,025
Net investment gains (losses) (21) 2,225 (23) (234) (624)
Minority interest - net investment gains (losses) (9) (2) (1) 3 (2)
Net investment gains (losses) tax benefit (provision) 9 (784) 9 85 220
-------------------------------------------------------------
Net investment gains (losses), net of income taxes (21) 1,439 (15) (146) (406)
Adjustments related to universal life and investment-type
product policy fees 0 0 0 0 (3)
Adjustments related to policyholder benefits and dividends 70 (86) (55) (9) 108
Adjustments related to other expenses (15) (9) 7 30 42
Adjustments related to tax benefit (provision) (19) 32 18 (9) (52)
-------------------------------------------------------------
Adjustments related to net investment gains (losses),
net of income taxes (1) 36 (63) (30) 12 95
Discontinued operations, net of income taxes 150 (1) 7 12 0
-------------------------------------------------------------
Net income available to common shareholders 987 2,245 742 677 714
Preferred stock dividends 0 0 31 32 33
-------------------------------------------------------------
Net income $987 $2,245 $773 $709 $747
=============================================================
(1) 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.
(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 MARCH 31, 2006
Corporate, Other
Unaudited (Dollars in millions) Consolidated Institutional Individual Auto & Home International Reinsurance & Eliminations
- ------------------------------------------------------------------------------------------------------------------------------------
ASSETS
Total investments $312,373 $129,837 $123,916 $3,821 $13,972 $11,765 $29,062
Cash and cash equivalents 5,144 331 1,196 (87) (125) 346 3,483
Accrued investment income 3,145 1,086 1,247 61 178 79 494
Premiums and other receivables 12,731 3,494 2,947 902 809 1,130 3,449
Deferred policy acquisition costs 20,245 1,308 13,920 180 1,927 2,894 16
Assets of subsidiaries held-for-sale 0 0 0 0 0 0 0
Goodwill 4,797 956 2,902 157 286 96 400
Other assets 8,145 1,911 3,300 373 323 73 2,165
Separate account assets 132,522 44,962 85,630 0 1,915 15 0
----------------------------------------------------------------------------------------------
Total Assets $499,102 $183,885 $235,058 $5,407 $19,285 $16,398 $39,069
==============================================================================================
LIABILITIES AND EQUITY
LIABILITIES
Future policy benefits $122,748 $48,361 $55,845 $3,423 $7,138 $4,606 $3,375
Policyholder account balances 129,860 55,691 58,677 0 5,263 5,675 4,554
Other policyholder funds 8,620 2,779 2,747 26 1,113 1,775 180
Policyholder dividends payable 918 0 918 0 0 0 0
Policyholder dividend obligation 814 0 814 0 0 0 0
Short-term debt 1,360 0 2 0 0 0 1,358
Long-term debt 9,932 21 161 0 52 800 8,898
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 88 152 (190) (10) (60) 52 144
Deferred income tax payable 1,199 (1,333) 1,661 20 91 811 (51)
Payables for collateral under
securities loaned and other
transactions 47,059 21,238 16,641 112 0 0 9,068
Other liabilities 13,003 2,834 2,885 690 957 1,380 4,257
Separate account liabilities 132,522 44,962 85,630 0 1,915 15 0
----------------------------------------------------------------------------------------------
Total Liabilities 470,535 174,705 225,791 4,261 16,469 15,273 34,036
----------------------------------------------------------------------------------------------
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) 28,906 8,829 9,302 1,033 2,542 945 6,255
Treasury stock (938) 0 0 0 0 0 (938)
Accumulated other comprehensive
income 590 351 (35) 113 274 180 (293)
----------------------------------------------------------------------------------------------
Total Stockholders' Equity 28,567 9,180 9,267 1,146 2,816 1,125 5,033
----------------------------------------------------------------------------------------------
Total Liabilities and
Stockholders' Equity $499,102 $183,885 $235,058 $5,407 $19,285 $16,398 $39,069
==============================================================================================
(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 MARCH 31, 2006
Corporate, Other
Unaudited (Dollars in millions) Consolidated Institutional Individual Auto & Home International Reinsurance & Eliminations
- ------------------------------------------------------------------------------------------------------------------------------------
REVENUES
Premiums $6,428 $2,989 $1,082 $724 $631 $993 $9
Universal life and
investment-type product
policy fees 1,178 201 793 0 184 0 0
Investment income, net 4,278 1,787 1,741 45 235 174 296
Other revenues 328 170 125 7 4 15 7
--------------------------------------------------------------------------------------------------
12,212 5,147 3,741 776 1,054 1,182 312
--------------------------------------------------------------------------------------------------
EXPENSES
Policyholder benefits and
dividends 6,934 3,389 1,745 453 527 813 7
Interest credited to
policyholder account balances 1,220 594 476 0 87 63 0
Capitalization of deferred
policy acquisition costs (883) (81) (370) (105) (151) (176) 0
Amortization of deferred policy
acquisition costs 644 35 302 111 82 114 0
Other expenses 2,777 579 964 195 396 332 311
--------------------------------------------------------------------------------------------------
10,692 4,516 3,117 654 941 1,146 318
--------------------------------------------------------------------------------------------------
Operating earnings before
provision (benefit) for
income taxes 1,520 631 624 122 113 36 (6)
Provision (benefit) for income
taxes 462 215 216 29 38 12 (48)
--------------------------------------------------------------------------------------------------
Operating earnings 1,058 416 408 93 75 24 42
Preferred stock dividends 33 0 0 0 0 0 33
--------------------------------------------------------------------------------------------------
OPERATING EARNINGS AVAILABLE TO
COMMON SHAREHOLDERS $1,025 $416 $408 $93 $75 $24 $9
==================================================================================================
NET INCOME RECONCILIATION
- ----------------------------
Operating earnings available to
common shareholders $1,025 $416 $408 $93 $75 $24 $9
Net investment gains (losses) (624) (339) (265) 1 20 8 (49)
Minority interest - net
investment gains (losses) (2) 0 0 0 0 (2) 0
Net investment gains
(losses) tax benefit
(provision) 220 120 95 (3) (6) (2) 16
--------------------------------------------------------------------------------------------------
Net investment gains (losses),
net of income taxes (406) (219) (170) (2) 14 4 (33)
Adjustments related to
universal life and
investment-type product
policy fees (3) 0 (3) 0 0 0 0
Adjustments related to
policyholder benefits and
dividends 108 25 61 0 22 0 0
Adjustments related to other
expenses 42 0 45 0 0 (3) 0
Adjustments related to tax
benefit (provision) (52) (9) (37) 0 (7) 1 0
--------------------------------------------------------------------------------------------------
Adjustments related to net
investment gains (losses),
net of income taxes (1) 95 16 66 0 15 (2) 0
Discontinued operations,
net of income taxes 0 0 0 0 0 0 0
--------------------------------------------------------------------------------------------------
Net income available to common
shareholders 714 213 304 91 104 26 (24)
Preferred stock dividends 33 0 0 0 0 0 33
--------------------------------------------------------------------------------------------------
Net income $747 $213 $304 $91 $104 $26 $9
==================================================================================================
(1) 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.
6
(METLIFE LOGO)
METLIFE, INC.
CONSOLIDATING STATEMENT OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
FOR THE THREE MONTHS ENDED MARCH 31, 2005
Corporate, Other
Unaudited (Dollars in millions) Consolidated Institutional Individual Auto & Home International Reinsurance & Eliminations
- ------------------------------------------------------------------------------------------------------------------------------------
REVENUES
Premiums $5,966 $2,844 $1,028 $728 $466 $903 ($3)
Universal life and
investment-type product
policy fees 791 193 479 0 119 0 0
Investment income, net 3,279 1,248 1,538 43 149 150 151
Other revenues 299 161 112 9 3 11 3
-------------------------------------------------------------------------------------------------
10,335 4,446 3,157 780 737 1,064 151
-------------------------------------------------------------------------------------------------
EXPENSES
Policyholder benefits and
dividends 6,411 3,146 1,636 478 410 739 2
Interest credited to
policyholder account balances 795 301 392 0 47 56 (1)
Capitalization of deferred
policy acquisition costs (767) (64) (254) (103) (125) (221) 0
Amortization of deferred
policy acquisition costs 528 35 182 111 56 142 2
Other expenses 2,186 539 720 191 244 310 182
-------------------------------------------------------------------------------------------------
9,153 3,957 2,676 677 632 1,026 185
-------------------------------------------------------------------------------------------------
Operating earnings before
provision (benefit) for
income taxes 1,182 489 481 103 105 38 (34)
Provision (benefit) for income
taxes 360 165 160 27 37 13 (42)
-------------------------------------------------------------------------------------------------
Operating earnings 822 324 321 76 68 25 8
Preferred stock dividends 0 0 0 0 0 0 0
-------------------------------------------------------------------------------------------------
OPERATING EARNINGS AVAILABLE
TO COMMON SHAREHOLDERS $822 $324 $321 $76 $68 $25 $8
=================================================================================================
NET INCOME RECONCILIATION
- ---------------------------
Operating earnings available to
common shareholders $822 $324 $321 $76 $68 $25 $8
Net investment gains
(losses) (21) 5 59 0 0 28 (113)
Minority interest - net
investment gains (losses) (9) 0 (4) 0 0 (5) 0
Net investment gains
(losses) tax benefit
(provision) 9 (3) (23) 0 0 (8) 43
-------------------------------------------------------------------------------------------------
Net investment gains (losses),
net of income taxes (21) 2 32 0 0 15 (70)
Adjustments related to
universal life and
investment-type product
policy fees 0 0 0 0 0 0 0
Adjustments related to
policyholder benefits and
dividends 70 35 21 0 14 0 0
Adjustments related to other
expenses (15) 0 2 0 0 (17) 0
Adjustments related to tax
benefit (provision) (19) (12) (8) 0 (5) 6 0
-------------------------------------------------------------------------------------------------
Adjustments related to net
investment gains (losses),
net of income taxes (1) 36 23 15 0 9 (11) 0
Discontinued operations, net
of income taxes 150 0 0 0 (1) 0 151
-------------------------------------------------------------------------------------------------
Net income available to common
shareholders 987 349 368 76 76 29 89
Preferred stock dividends 0 0 0 0 0 0 0
-------------------------------------------------------------------------------------------------
Net income $987 $349 $368 $76 $76 $29 $89
=================================================================================================
(1) 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.
7
(METLIFE LOGO)
SUMMARY OF SEGMENT OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS (1)
For the Three Months Ended
------------------------------------------------------------------------
March 31, June 30, September 30, December 31, March 31,
Unaudited (Dollars in millions) 2005 2005 2005 2005 2006
- -----------------------------------------------------------------------------------------------------------------
INSTITUTIONAL OPERATIONS $324 $346 $386 $389 $416
INDIVIDUAL OPERATIONS 321 291 331 314 408
AUTO & HOME OPERATIONS 76 101 (26) 81 93
INTERNATIONAL OPERATIONS 68 51 66 48 75
REINSURANCE OPERATIONS 25 4 26 31 24
CORPORATE, OTHER & ELIMINATIONS 8 77 (3) (64) 9
------------------------------------------------------------------------
CONSOLIDATED $822 $870 (2) $780 (3) $799 $1,025
========================================================================
(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 9; (ii) Individual Operations, page 17;
(iii) Auto & Home Operations, page 27; (iv) International Operations, page
32; (v) Reinsurance Operations, page 33; and Corporate, Other &
Eliminations, page 35. 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.
8
(METLIFE LOGO)
INSTITUTIONAL OPERATIONS
STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS - TOTAL
UNAUDITED (DOLLARS IN MILLIONS)
For the Three Months Ended
--------------------------------------------------------------------
March 31, June 30, September 30, December 31, March 31,
Institutional Operations 2005 2005 2005 2005 2006
- ------------------------------------------------------------------------------------------------------------------------------------
REVENUES
Premiums $2,844 $2,834 $3,066 $2,643 $2,989
Universal life and investment-type product policy fees 193 185 197 197 201
Investment income, net 1,248 1,364 1,707 1,732 1,787
Other revenues 161 163 163 166 170
--------------------------------------------------------------------
4,446 4,546 5,133 4,738 5,147
--------------------------------------------------------------------
EXPENSES
Policyholder benefits and dividends 3,146 3,159 3,455 3,025 3,389
Interest credited to policyholder account balances 301 326 508 530 594
Other expenses 510 537 587 595 533
--------------------------------------------------------------------
3,957 4,022 4,550 4,150 4,516
--------------------------------------------------------------------
Operating earnings before provision (benefit) for income
taxes 489 524 583 588 631
Provision (benefit) for income taxes 165 178 197 199 215
--------------------------------------------------------------------
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $324 $346 $386 $389 $416
====================================================================
NET INCOME RECONCILIATION
- ---------------------------------------------------------
Operating earnings available to common shareholders $324 $346 $386 $389 $416
Net investment gains (losses) 5 415 (97) (156) (339)
Minority interest - net investment gains (losses) 0 0 0 0 0
Net investment gains (losses) tax benefit
(provision) (3) (147) 36 59 120
--------------------------------------------------------------------
Net investment gains (losses), net of income taxes 2 268 (61) (97) (219)
Adjustments related to universal life and
investment-type product policy fees 0 0 0 0 0
Adjustments related to policyholder benefits
and dividends 35 (37) 28 (18) 25
Adjustments related to other expenses 0 0 0 0 0
Adjustments related tax benefit (provision) (12) 13 (10) 6 (9)
--------------------------------------------------------------------
Adjustments related to net investment gains (losses), net
of income taxes (1) 23 (24) 18 (12) 16
Discontinued operations, net of income taxes 0 0 0 0 0
--------------------------------------------------------------------
Net income available to common shareholders 349 590 343 280 213
Preferred stock dividends 0 0 0 0 0
--------------------------------------------------------------------
Net income $349 $590 $343 $280 $213
--------------------------------------------------------------------
(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.
9
(METLIFE LOGO)
INSTITUTIONAL OPERATIONS
STATEMENTS OF OPERATING EARNINGS
AVAILABLE TO COMMON SHAREHOLDERS - PRODUCT LEVEL
UNAUDITED (DOLLARS IN MILLIONS)
For the Three Months Ended
--------------------------------------------------------------------
March 31, June 30, September 30, December 31, March 31,
Group Life 2005 2005 2005 2005 2006
- ------------------------------------------------------------------------------------------------------------------------------------
REVENUES
Premiums $1,364 $1,435 $1,485 $1,359 $1,551
Universal life and investment-type product policy fees 187 180 192 194 195
Investment income, net 271 281 296 296 303
Other revenues 13 14 11 10 15
--------------------------------------------------------------------
1,835 1,910 1,984 1,859 2,064
--------------------------------------------------------------------
EXPENSES
Policyholder benefits and dividends 1,444 1,519 1,542 1,398 1,636
Interest credited to policyholder account balances 99 105 119 125 134
Other expenses 146 159 168 157 155
--------------------------------------------------------------------
1,689 1,783 1,829 1,680 1,925
--------------------------------------------------------------------
Operating earnings before provision (benefit) for
income taxes 146 127 155 179 139
Provision (benefit) for income taxes 49 44 53 61 48
--------------------------------------------------------------------
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $97 $83 $102 $118 $91
====================================================================
Net investment gains (losses), net of income taxes (9) (1) 7 (38) (2)
Adjustments related to net investment gains (losses), net
of income taxes 0 0 4 1 1
Discontinued operations, net of income taxes 0 0 0 0 0
--------------------------------------------------------------------
Net income available to common shareholders 88 82 113 81 90
Preferred stock dividends 0 0 0 0 0
--------------------------------------------------------------------
Net income $88 $82 $113 $81 $90
--------------------------------------------------------------------
10
(METLIFE LOGO)
INSTITUTIONAL OPERATIONS
STATEMENTS OF OPERATING EARNINGS
AVAILABLE TO COMMON SHAREHOLDERS - PRODUCT LEVEL
UNAUDITED (DOLLARS IN MILLIONS)
For the Three Months Ended
--------------------------------------------------------------------
March 31, June 30, September 30, December 31, March 31,
Retirement & Savings 2005 2005 2005 2005 2006
- ------------------------------------------------------------------------------------------------------------------------------------
REVENUES
Premiums $496 $384 $557 $234 $334
Universal life and investment-type product policy fees 6 5 5 3 6
Investment income, net 846 926 1,255 1,273 1,325
Other revenues 59 59 63 67 62
--------------------------------------------------------------------
1,407 1,374 1,880 1,577 1,727
--------------------------------------------------------------------
EXPENSES
Policyholder benefits and dividends 864 751 1,041 743 774
Interest credited to policyholder account balances 202 221 389 405 460
Other expenses 93 87 126 113 98
--------------------------------------------------------------------
1,159 1,059 1,556 1,261 1,332
--------------------------------------------------------------------
Operating earnings before provision (benefit) for income
taxes 248 315 324 316 395
Provision (benefit) for income taxes 83 106 108 106 134
--------------------------------------------------------------------
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $165 $209 $216 $210 $261
====================================================================
Net investment gains (losses), net of income taxes 12 231 (45) (61) (168)
Adjustments related to net investment gains (losses), net
of income taxes 11 (10) 7 (2) (7)
Discontinued operations, net of income taxes 0 0 0 0 0
--------------------------------------------------------------------
Net income available to common shareholders 188 430 178 147 86
Preferred stock dividends 0 0 0 0 0
--------------------------------------------------------------------
Net income $188 $430 $178 $147 $86
--------------------------------------------------------------------
11
(METLIFE LOGO)
INSTITUTIONAL OPERATIONS
STATEMENTS OF OPERATING EARNINGS
AVAILABLE TO COMMON SHAREHOLDERS - PRODUCT LEVEL
UNAUDITED (DOLLARS IN MILLIONS)
For the Three Months Ended
--------------------------------------------------------------------
March 31, June 30, September 30, December 31, March 31,
Non-Medical Health & Other 2005 2005 2005 2005 2006
- ------------------------------------------------------------------------------------------------------------------------------------
REVENUES
Premiums $984 $1,015 $1,024 $1,050 $1,104
Universal life and investment-type product policy fees 0 0 0 0 0
Investment income, net 131 157 156 163 159
Other revenues 89 90 89 89 93
--------------------------------------------------------------------
1,204 1,262 1,269 1,302 1,356
--------------------------------------------------------------------
EXPENSES
Policyholder benefits and dividends 838 889 872 884 979
Interest credited to policyholder account balances 0 0 0 0 0
Other expenses 271 291 293 325 280
--------------------------------------------------------------------
1,109 1,180 1,165 1,209 1,259
--------------------------------------------------------------------
Operating earnings before provision (benefit) for income
taxes 95 82 104 93 97
Provision (benefit) for income taxes 33 28 36 32 33
--------------------------------------------------------------------
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $62 $54 $68 $61 $64
====================================================================
Net investment gains (losses), net of income taxes (1) 38 (23) 2 (49)
Adjustments related to net investment gains (losses), net
of income taxes 12 (14) 7 (11) 22
Discontinued operations, net of income taxes 0 0 0 0 0
--------------------------------------------------------------------
Net income available to common shareholders 73 78 52 52 37
Preferred stock dividends 0 0 0 0 0
--------------------------------------------------------------------
Net income $73 $78 $52 $52 $37
--------------------------------------------------------------------
12
(METLIFE LOGO)
INSTITUTIONAL OPERATIONS
PREMIUMS, FEES AND OTHER REVENUES BY PRODUCT
AND ADDITIONAL STATISTICAL INFORMATION
For the Three Months Ended
-----------------------------------------------------------------
March 31, June 30, September 30, December 31, March 31,
Unaudited (Dollars in millions) 2005 2005 2005 2005 2006
- --------------------------------------------------------------------------------------------------------------------------------
PREMIUMS, FEES AND OTHER REVENUES BY PRODUCT (1)
Group Life $1,564 $1,629 $1,688 $1,563 $1,761
Retirement & Savings 561 448 625 304 402
Non-Medical Health & Other 1,073 1,105 1,113 1,139 1,197
-----------------------------------------------------------------
Total Premiums, Fees and Other Revenues $3,198 $3,182 $3,426 $3,006 $3,360
=================================================================
Group Disability (Included in Non-Medical Health & Other) $320 $331 $325 $335 $347
ADDITIONAL STATISTICAL INFORMATION
INCURRED LOSS RATIO (MORTALITY EXPERIENCE):
Term Life 94.2% 94.7% 91.5% 89.3% 94.2%
INCURRED LOSS RATIO (MORBIDITY EXPERIENCE):
Group Disability 89.5% 83.5% 95.0% 91.1% 90.7%
NUMBER OF SALES REPRESENTATIVES 783 778 787 761 745
-----------------------------------------------------------------
(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 $1,648 $1,633 $1,699 $1,655 $1,828
Retirement & Savings 561 448 625 304 402
Non-Medical Health & Other 1,080 1,104 1,116 1,146 1,197
-----------------------------------------------------------------
Total Premiums, Fees and Other Revenues $3,289 $3,185 $3,440 $3,105 $3,427
-----------------------------------------------------------------
13
(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
-------------------------------------------------------------------------------------
March 31, June 30, September 30, December 31, March 31,
Group Life 2005 2005 2005 2005 2006
- -----------------------------------------------------------------------------------------------------------------------------
Balance, beginning of period $15,200 $15,354 $15,449 $16,290 $16,400
Premiums and deposits 2,744 2,921 2,921 2,681 3,372
Interest on reserves 137 144 159 166 176
Surrenders and withdrawals (1,159) (1,324) (1,263) (1,180) (1,196)
Benefits and reserves (1,444) (1,519) (1,295) (1,397) (1,623)
Other (124) (127) 319(1) (160) (178)
-------------------------------------------------------------------------------------
Balance, end of period $15,354 $15,449 $16,290 $16,400 $16,951
-------------------------------------------------------------------------------------
For the Three Months Ended
-------------------------------------------------------------------------------------
March 31, June 30, September 30, December 31, March 31,
Retirement & Savings 2005 2005 2005 2005 2006
- -----------------------------------------------------------------------------------------------------------------------------
Balance, beginning of period $47,758 $49,233 $51,020 $77,933 $78,405
Premiums and deposits 2,750 2,122 2,751 3,282 3,819
Interest on reserves 630 650 933 937 986
Surrenders and withdrawals (876) (1,786) (2,604) (2,378) (2,851)
Benefits and reserves (501) (508) (671) (655) (679)
Other (528) 1,309 26,504(1) (714) (1,428)
-------------------------------------------------------------------------------------
Balance, end of period $49,233 $51,020 $77,933 $78,405 $78,252
-------------------------------------------------------------------------------------
For the Three Months Ended
-------------------------------------------------------------------------------------
March 31, June 30, September 30, December 31, March 31,
Non-Medical Health & Other 2005 2005 2005 2005 2006
- -----------------------------------------------------------------------------------------------------------------------------
Balance, beginning of period $7,563 $7,721 $7,968 $8,321 $8,556
Premiums and deposits 952 978 996 1,023 1,066
Interest on reserves 65 66 74 76 78
Surrenders and withdrawals 19 23 21 20 20
Benefits and reserves (850) (880) (917) (915) (991)
Other (28) 60 179(1) 31 120
-------------------------------------------------------------------------------------
Balance, end of period $7,721 $7,968 $8,321 $8,556 $8,849
-------------------------------------------------------------------------------------
SEPARATE ACCOUNT LIABILITIES
For the Three Months Ended
-------------------------------------------------------------------------------------
March 31, June 30, September 30, December 31, March 31,
Group Life 2005 2005 2005 2005 2006
- -----------------------------------------------------------------------------------------------------------------------------
Balance, beginning of period $8,192 $7,976 $8,050 $9,931 $10,539
Premiums and deposits 114 120 232 706 189
Investment performance 168 40 219 29 329
Surrenders and withdrawals (498) (86) (108) (121) (101)
Policy charges 0 0 (7) (7) (7)
Other 0 0 1,545(1) 1 0
-------------------------------------------------------------------------------------
Balance, end of period $7,976 $8,050 $9,931 $10,539 $10,949
-------------------------------------------------------------------------------------
For the Three Months Ended
-------------------------------------------------------------------------------------
March 31, June 30, September 30, December 31, March 31,
Retirement & Savings 2005 2005 2005 2005 2006
- -----------------------------------------------------------------------------------------------------------------------------
Balance, beginning of period $32,055 $30,654 $32,105 $34,508 $34,374
Premiums and deposits 1,587 965 1,108 1,204 1,345
Investment performance (1,141) 1,890 538 527 550
Surrenders and withdrawals (1,827) (1,351) (2,029) (1,775) (2,592)
Policy charges (25) (26) (23) (30) (25)
Other 5 (27) 2,809 (1) (60) 1
-------------------------------------------------------------------------------------
Balance, end of period $30,654 $32,105 $34,508 $34,374 $33,653
-------------------------------------------------------------------------------------
For the Three Months Ended
-------------------------------------------------------------------------------------
March 31, June 30, September 30, December 31, March 31,
Non-Medical Health & Other 2005 2005 2005 2005 2006
- -----------------------------------------------------------------------------------------------------------------------------
Balance, beginning of period $214 $243 $276 $298 $326
Premiums and deposits 88 85 81 78 90
Investment performance (108) 191 66 (34) 90
Surrenders and withdrawals (19) (23) (21) (19) (20)
Policy charges (17) (18) (18) (15) (14)
Other 85 (202) (86) 18 (112)
-------------------------------------------------------------------------------------
Balance, end of period $243 $276 $298 $326 $360
-------------------------------------------------------------------------------------
(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.
14
(METLIFE LOGO)
INSTITUTIONAL OPERATIONS
OTHER EXPENSES BY MAJOR CATEGORY
For the Three Months Ended
-------------------------------------------------------------------------
March 31, June 30, September 30, December 31, March 31,
Unaudited (Dollars in millions) 2005 2005 2005 2005 2006
- ------------------------------------------------------------------------------------------------------------------------------------
OTHER EXPENSES BY MAJOR CATEGORY
Direct and allocated expenses $380 $396 $417 $431 $361
Pension and other post-retirement benefit costs 20 18 19 19 21
Premium taxes and other taxes, licenses and fees 32 41 46 53 50
-------------------------------------------------------------------------
Sub-total Insurance Expenses 432 455 482 503 432
Commissions and other expenses 78 82 105 92 101
-------------------------------------------------------------------------
Total Other Expenses $510 $537 $587 $595 $533
-------------------------------------------------------------------------
15
(METLIFE LOGO)
INSTITUTIONAL OPERATIONS
SPREADS BY PRODUCT
UNAUDITED
For the Three Months Ended
---------------------------------------------------------------------------------
March 31, June 30, September 30, December 31, March 31,
Group Life 2005 2005 2005 2005 2006
- -----------------------------------------------------------------------------------------------------------------------------
ANNUALIZED GENERAL ACCOUNT
SPREADS BY SEGMENT (%)
Investment income yield 5.68% 5.86% 5.89% 5.98% 6.07%
Average crediting rate 3.65% 3.78% 3.92% 4.07% 4.40%
---------------------------------------------------------------------------------
Spread 2.03% 2.08% 1.97% 1.91% 1.67%
---------------------------------------------------------------------------------
For the Three Months Ended
----------------------------------------------------------------------------------
March 31, June 30, September 30, December 31, March 31,
Retirement & Savings 2005 2005 2005 2005 2006
- ------------------------------------------------------------------------------------------------------------------------------
ANNUALIZED GENERAL ACCOUNT
SPREADS BY SEGMENT (%)
Investment income yield 7.12% 7.66% 6.57% 6.59% 6.74%
Average crediting rate 5.47% 5.51% 4.97% 5.11% 5.31%
----------------------------------------------------------------------------------
Spread 1.65% 2.15% 1.60% 1.48% 1.43%
----------------------------------------------------------------------------------
For the Three Months Ended
----------------------------------------------------------------------------------
March 31, June 30, September 30, December 31, March 31,
Non-Medical Health & Other 2005 2005 2005 2005 2006
- ------------------------------------------------------------------------------------------------------------------------------
ANNUALIZED GENERAL ACCOUNT
SPREADS BY SEGMENT (%)
Investment income yield 7.55% 9.17% 8.19% 8.25% 7.71%
Average crediting rate 4.92% 4.94% 4.93% 4.95% 4.99%
----------------------------------------------------------------------------------
Spread 2.63% 4.23% 3.26% 3.30% 2.72%
----------------------------------------------------------------------------------
16
(METLIFE LOGO)
INDIVIDUAL OPERATIONS
STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS - TOTAL
UNAUDITED (DOLLARS IN MILLIONS)
For the Three Months Ended
-------------------------------------------------------------------------
March 31, June 30, September 30, December 31, March 31,
Individual Operations 2005 2005 2005 2005 2006
- ------------------------------------------------------------------------------------------------------------------------------------
REVENUES
Premiums $1,028 $1,065 $1,140 $1,269 $1,082
Universal life and investment-type product policy fees 479 501 746 750 793
Investment income, net 1,538 1,571 1,751 1,711 1,741
Other revenues 112 105 150 110 125
-------------------------------------------------------------------------
3,157 3,242 3,787 3,840 3,741
-------------------------------------------------------------------------
EXPENSES
Policyholder benefits and dividends 1,636 1,733 1,770 1,940 1,745
Interest credited to policyholder account balances 392 395 500 488 476
Capitalization of deferred policy acquisition costs (254) (279) (384) (409) (370)
Amortization of deferred policy acquisition costs 182 169 310 303 302
Other expenses 720 788 1,096 1,049 964
-------------------------------------------------------------------------
2,676 2,806 3,292 3,371 3,117
-------------------------------------------------------------------------
Operating earnings before provision (benefit) for income
taxes 481 436 495 469 624
Provision (benefit) for income taxes 160 145 164 155 216
-------------------------------------------------------------------------
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $321 $291 $331 $314 $408
=========================================================================
NET INCOME RECONCILIATION
- --------------------------------------------------------
Operating earnings available to common shareholders $321 $291 $331 $314 $408
Net investment gains (losses) 59 501 (6) (180) (265)
Minority interest - net investment gains (losses) (4) 0 0 0 0
Net investment gains (losses) tax benefit
(provision) (23) (174) 0 65 95
-------------------------------------------------------------------------
Net investment gains (losses), net of income taxes 32 327 (6) (115) (170)
Adjustments related to universal life and
investment-type product policy fees 0 0 0 0 (3)
Adjustments related to policyholder benefits and
dividends 21 (33) (29) 30 61
Adjustments related to other expenses 2 (21) 11 31 45
Adjustments related to tax benefit (provision) (8) 19 7 (22) (37)
-------------------------------------------------------------------------
Adjustments related to net investment gains (losses),
net of income taxes(1) 15 (35) (11) 39 66
Discontinued operations, net of income taxes 0 0 0 0 0
-------------------------------------------------------------------------
Net income available to common shareholders 368 583 314 238 304
Preferred stock dividends 0 0 0 0 0
-------------------------------------------------------------------------
Net income $368 $583 $314 $238 $304
-------------------------------------------------------------------------
(1) 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.
17
(METLIFE LOGO)
INDIVIDUAL OPERATIONS
STATEMENTS OF OPERATING EARNINGS
AVAILABLE TO COMMON SHAREHOLDERS - PRODUCT LEVEL
UNAUDITED (DOLLARS IN MILLIONS)
For the Three Months Ended
--------------------------------------------------------------------------
March 31, June 30, September 30, December 31, March 31,
Traditional Life 2005 2005 2005 2005 2006
- ------------------------------------------------------------------------------------------------------------------------------------
REVENUES
Premiums $965 $992 $1,020 $1,139 $976
Universal life and investment-type product policy fees 0 0 0 0 0
Investment income, net 842 832 838 815 821
Other revenues 2 0 1 1 0
--------------------------------------------------------------------------
1,809 1,824 1,859 1,955 1,797
--------------------------------------------------------------------------
EXPENSES
Policyholder benefits and dividends 1,447 1,523 1,468 1,648 1,444
Interest credited to policyholder account balances 0 0 0 0 0
Capitalization of deferred policy acquisition costs (43) (60) (47) (53) (56)
Amortization of deferred policy acquisition costs 52 48 58 46 53
Other expenses 185 209 230 224 207
--------------------------------------------------------------------------
1,641 1,720 1,709 1,865 1,648
--------------------------------------------------------------------------
Operating earnings before provision (benefit) for income
taxes 168 104 150 90 149
Provision (benefit) for income taxes 56 36 50 31 51
--------------------------------------------------------------------------
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $112 $68 $100 $59 $98
==========================================================================
Net investment gains (losses), net of income taxes 45 224 31 15 (44)
Adjustments related to net investment gains (losses), net
of income taxes 15 (22) (22) 20 40
Discontinued operations, net of income taxes 0 0 0 0 0
--------------------------------------------------------------------------
Net income available to common shareholders 172 270 109 94 94
Preferred stock dividends 0 0 0 0 0
--------------------------------------------------------------------------
Net income $172 $270 $109 $94 $94
--------------------------------------------------------------------------
18
(METLIFE LOGO)
INDIVIDUAL OPERATIONS
STATEMENTS OF OPERATING EARNINGS
AVAILABLE TO COMMON SHAREHOLDERS - PRODUCT LEVEL
UNAUDITED (DOLLARS IN MILLIONS)
For the Three Months Ended
--------------------------------------------------------------------------
March 31, June 30, September 30, December 31, March 31,
Variable & Universal Life 2005 2005 2005 2005 2006
- ------------------------------------------------------------------------------------------------------------------------------------
REVENUES
Premiums $0 $0 $0 $0 $0
Universal life and investment-type product policy fees 265 277 384 382 395
Investment income, net 152 151 196 190 203
Other revenues 0 (3) 0 (1) (3)
--------------------------------------------------------------------------
417 425 580 571 595
--------------------------------------------------------------------------
EXPENSES
Policyholder benefits and dividends 93 97 120 120 123
Interest credited to policyholder account balances 114 117 145 146 142
Capitalization of deferred policy acquisition costs (65) (72) (133) (136) (102)
Amortization of deferred policy acquisition costs 49 64 105 113 110
Other expenses 148 160 266 275 208
--------------------------------------------------------------------------
339 366 503 518 481
--------------------------------------------------------------------------
Operating earnings before provision (benefit) for income
taxes 78 59 77 53 114
Provision (benefit) for income taxes 27 20 26 18 40
--------------------------------------------------------------------------
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $51 $39 $51 $35 $74
==========================================================================
Net investment gains (losses), net of income taxes (8) 9 (12) (22) (25)
Adjustments related to net investment gains (losses), net
of income taxes (2) (2) 7 10 9
Discontinued operations, net of income taxes 0 0 0 0 0
--------------------------------------------------------------------------
Net income available to common shareholders 41 46 46 23 58
Preferred stock dividends 0 0 0 0 0
--------------------------------------------------------------------------
Net income $41 $46 $46 $23 $58
--------------------------------------------------------------------------
19
(METLIFE LOGO)
INDIVIDUAL OPERATIONS
STATEMENTS OF OPERATING EARNINGS
AVAILABLE TO COMMON SHAREHOLDERS - PRODUCT LEVEL
UNAUDITED (DOLLARS IN MILLIONS)
For the Three Months Ended
--------------------------------------------------------------------------
March 31, June 30, September 30, December 31, March 31,
Annuities 2005 2005 2005 2005 2006
- ------------------------------------------------------------------------------------------------------------------------------------
REVENUES
Premiums $63 $73 $118 $101 $98
Universal life and investment-type product policy fees 185 198 318 334 356
Investment income, net 511 551 681 665 677
Other revenues 11 13 26 29 29
--------------------------------------------------------------------------
770 835 1,143 1,129 1,160
--------------------------------------------------------------------------
EXPENSES
Policyholder benefits and dividends 96 113 178 152 173
Interest credited to policyholder account balances 261 260 338 322 314
Capitalization of deferred policy acquisition costs (145) (147) (204) (220) (212)
Amortization of deferred policy acquisition costs 81 57 147 144 139
Other expenses 259 292 427 422 400
--------------------------------------------------------------------------
552 575 886 820 814
--------------------------------------------------------------------------
Operating earnings before provision (benefit) for income
taxes 218 260 257 309 346
Provision (benefit) for income taxes 71 85 84 100 120
--------------------------------------------------------------------------
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $147 $175 $173 $209 $226
==========================================================================
Net investment gains (losses), net of income taxes 1 94 (29) (99) (102)
Adjustments related to net investment gains (losses),
net of income taxes 2 (11) 4 9 17
Discontinued operations, net of income taxes 0 0 0 0 0
--------------------------------------------------------------------------
Net income available to common shareholders 150 258 148 119 141
Preferred stock dividends 0 0 0 0 0
--------------------------------------------------------------------------
Net income $150 $258 $148 $119 $141
--------------------------------------------------------------------------
20
(METLIFE LOGO)
INDIVIDUAL OPERATIONS
STATEMENTS OF OPERATING EARNINGS
AVAILABLE TO COMMON SHAREHOLDERS - PRODUCT LEVEL
UNAUDITED (DOLLARS IN MILLIONS)
For the Three Months Ended
--------------------------------------------------------------------------
March 31, June 30, September 30, December 31, March 31,
Other 2005 2005 2005 2005 2006
- ------------------------------------------------------------------------------------------------------------------------------------
REVENUES
Premiums $0 $0 $2 $29 $8
Universal life and investment-type product policy fees 29 26 44 34 42
Investment income, net 33 37 36 41 40
Other revenues 99 95 123 81 99
--------------------------------------------------------------------------
161 158 205 185 189
--------------------------------------------------------------------------
EXPENSES
Policyholder benefits and dividends 0 0 4 20 5
Interest credited to policyholder account balances 17 18 17 20 20
Capitalization of deferred policy acquisition costs (1) 0 0 0 0
Amortization of deferred policy acquisition costs 0 0 0 0 0
Other expenses 128 127 173 128 149
--------------------------------------------------------------------------
144 145 194 168 174
--------------------------------------------------------------------------
Operating earnings before provision (benefit) for income
taxes 17 13 11 17 15
Provision (benefit) for income taxes 6 4 4 6 5
--------------------------------------------------------------------------
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $11 $9 $7 $11 $10
==========================================================================
Net investment gains (losses), net of income taxes (6) 0 4 (9) 1
Adjustments related to net investment gains (losses),
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 9 11 2 11
Preferred stock dividends 0 0 0 0 0
--------------------------------------------------------------------------
Net income $5 $9 $11 $2 $11
--------------------------------------------------------------------------
21
(METLIFE LOGO)
INDIVIDUAL OPERATIONS
PREMIUMS AND DEPOSITS BY PRODUCT
For the Three Months Ended
-------------------------------------------------------------
March 31, June 30, September 30, December 31, March 31,
Unaudited (Dollars in millions) 2005 2005 2005 2005 2006
- -----------------------------------------------------------------------------------------------------------------------------------
PREMIUMS AND DEPOSITS BY PRODUCT (1)
TOTAL (2)
Life First Year Premiums and Deposits
Traditional Life $ 47 $ 52 $ 52 $ 54 $ 50
Variable Life 1st Year excluding Single Premium COLI/BOLI 57 41 56 63 50
Universal Life 1st Year excluding Single Premium COLI/BOLI 102 110 245 228 203
Single Premium COLI/BOLI 1 10 4 15 6
-------------------------------------------------------------
Total Life First Year Premiums & Deposits (3) 207 213 357 360 309
Life Renewal Premiums and Deposits
Traditional Life 943 1,020 1,033 1,227 959
Variable & Universal Life 472 416 532 551 600
Annuities (4) 2,540 2,496 3,624 3,570 3,843
-------------------------------------------------------------
Total Premiums and Deposits $4,162 $4,145 $5,546 $5,708 $5,711
=============================================================
PREMIUMS AND DEPOSITS TO SEPARATE ACCOUNTS
Variable & Universal Life $ 279 $ 246 $ 297 $ 307 $ 283
Annuities 1,532 1,503 2,306 2,479 2,532
-------------------------------------------------------------
Total Separate Accounts $1,811 $1,749 $2,603 $2,786 $2,815
=============================================================
ANNUITY DEPOSITS BY TYPE
Fixed Annuity Deposits $ 429 $ 356 $ 496 $ 464 $ 520
Variable Annuity Deposits 2,111 2,140 3,128 3,106 3,323
-------------------------------------------------------------
Total Annuity Deposits $2,540 $2,496 $3,624 $3,570 $3,843
=============================================================
(1) Statutory premiums direct and assumed.
(2) Includes premiums and deposits to separate accounts and excludes
Company sponsored internal changes.
(3) Of the $309 million of First Year Life Premiums and Deposits received
during the three months ended March 31, 2006, approximately 36% were
distributed through MetLife agents, 13% through New England Financial
agents, 48% through MetLife's Independent Distribution channel and 3%
through other distribution channels.
(4) Of the $3,843 million of Annuity Deposits received during the three
months ended March 31, 2006, approximately 23% were distributed through
MetLife agents, 6% through New England Financial agents, 58% through
MetLife's Independent Distribution channel and 13% through MetLife
Resources representatives.
22
(METLIFE LOGO)
INDIVIDUAL OPERATIONS
ADDITIONAL STATISTICAL INFORMATION
For the Three Months Ended
--------------------------------------------------------------
March 31, June 30, September 30, December 31, March 31,
Unaudited 2005 2005 2005 2005 2006
- -----------------------------------------------------------------------------------------------------------------------------------
PERCENTAGE OF PREMIUMS AND DEPOSITS TO SEPARATE ACCOUNTS,
EXCLUDING TRANSFERS FROM GENERAL ACCOUNT:
Variable & Universal Life 43.0% 41.4% 33.4% 33.6% 31.3%
Annuities 60.3% 60.2% 63.6% 69.4% 65.9%
MORTALITY AS A PERCENTAGE OF EXPECTED 85.6% 84.7% 86.4% 84.9% 94.0%
LAPSES / SURRENDERS (GENERAL AND SEPARATE ACCOUNT) (1)
Traditional Life 6.2% 6.1% 6.1% 6.0% 6.0%
Variable & Universal Life 6.6% 6.3% 6.2% 6.1% 6.3%
Variable Annuities 7.6% 7.7% 8.4% 8.9% 9.5%
Fixed Annuities 6.3% 5.8% 6.4% 8.0% 8.7%
NUMBER OF SALES REPRESENTATIVES
MetLife Distribution 5,718 5,773 5,774 5,804 5,954
New England Financial 2,231 2,255 2,228 2,006 2,068
Independent Distribution Wholesalers 116 124 279 229 220
MetLife Resources 422 428 857 794 751
Walnut Street and Tower Square Securities 1,294 1,263 1,869 1,676 1,632
P&C Specialists 570 617 672 682 658
--------------------------------------------------------------
Total Agents 10,351 10,460 11,679 11,191 11,283
==============================================================
(1) Lapses/Surrenders rates are calculated for the most recent 12 months of
experience.
23
(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
--------------------------------------------------------------
March 31, June 30, September 30, December 31, March 31,
Traditional Life 2005 2005 2005 2005 2006
- -----------------------------------------------------------------------------------------------------------------------------------
Balance, beginning of period $ 49,209 $ 49,371 $ 49,582 $ 50,562 $ 50,944
Premiums and deposits (1) 1,032 1,066 1,101 1,239 1,061
Interest on reserves 499 503 514 518 511
Surrenders and withdrawals (447) (437) (443) (470) (504)
Benefit payments (484) (492) (498) (459) (572)
Other (438) (429) 306(2) (446) (463)
--------------------------------------------------------------
Balance, end of period $ 49,371 $ 49,582 $ 50,562 $ 50,944 $ 50,977
==============================================================
For the Three Months Ended
--------------------------------------------------------------
March 31, June 30, September 30, December 31, March 31,
Variable & Universal Life 2005 2005 2005 2005 2006
- -----------------------------------------------------------------------------------------------------------------------------------
Balance, beginning of period $ 9,991 $ 10,087 $ 10,154 $ 14,315 $ 14,852
Premiums and deposits (1) (3) 353 320 548 567 572
Interest on reserves 112 117 151 148 142
Surrenders and withdrawals (161) (160) (178) (185) (168)
Net transfers from (to) separate account 44 55 52 45 49
Policy charges (225) (231) (350) (351) (363)
Benefit payments (27) (30) (36) (34) (48)
Other 0 (4) 3,974(2) 347 6
--------------------------------------------------------------
Balance, end of period $ 10,087 $ 10,154 $ 14,315 $ 14,852 $ 15,042
==============================================================
For the Three Months Ended
--------------------------------------------------------------
March 31, June 30, September 30, December 31, March 31,
Annuities 2005 2005 2005 2005 2006
- -----------------------------------------------------------------------------------------------------------------------------------
Balance, beginning of period $ 32,184 $ 32,304 $ 32,421 $ 46,136 $ 45,732
Premiums and deposits (1) (3) 1,089 1,101 1,410 1,298 1,398
Interest on reserves 312 309 401 398 395
Surrenders and withdrawals (587) (679) (1,014) (1,178) (1,231)
Net transfers from (to) separate account (427) (346) (544) (625) (621)
Policy charges (1) (3) (2) (2) (2)
Benefit payments (277) (273) (309) (297) (326)
Other 11 8 13,773(2) 2 (52)
--------------------------------------------------------------
Balance, end of period $ 32,304 $ 32,421 $ 46,136 $ 45,732 $ 45,293
==============================================================
SEPARATE ACCOUNT LIABILITIES
- ----------------------------
For the Three Months Ended
--------------------------------------------------------------
March 31, June 30, September 30, December 31, March 31,
Variable & Universal Life 2005 2005 2005 2005 2006
- -----------------------------------------------------------------------------------------------------------------------------------
Balance, beginning of period $ 7,785 $ 7,747 $ 7,900 $ 9,164 $ 9,307
Premiums and deposits (1) 279 247 297 307 283
Investment performance (94) 135 318 155 492
Surrenders and withdrawals (109) (109) (137) (177) (158)
Net transfers from (to) fixed account (44) (55) (52) (45) (51)
Policy charges (70) (65) (89) (96) (80)
Other 0 0 927(2) (1) (24)
--------------------------------------------------------------
Balance, end of period $ 7,747 $ 7,900 $ 9,164 $ 9,307 $ 9,769
==============================================================
For the Three Months Ended
--------------------------------------------------------------
March 31, June 30, September 30, December 31, March 31,
Annuities 2005 2005 2005 2005 2006
- -----------------------------------------------------------------------------------------------------------------------------------
Balance, beginning of period $ 37,597 $ 38,051 $ 39,771 $ 69,146 $ 71,764
Premiums and deposits (1) 1,532 1,503 2,306 2,479 2,532
Investment performance (604) 806 2,701 1,507 3,255
Surrenders and withdrawals (764) (796) (1,723) (1,724) (2,026)
Net transfers from (to) fixed account 427 346 544 625 621
Policy charges (137) (139) (266) (269) (280)
Other 0 0 25,813(2) 0 (5)
--------------------------------------------------------------
Balance, end of period $ 38,051 $ 39,771 $ 69,146 $ 71,764 $ 75,861
==============================================================
(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.
(3) Includes premiums and deposits directed to General Account investment
option of a variable life and variable annuity product.
24
(METLIFE LOGO)
INDIVIDUAL OPERATIONS
INSURANCE EXPENSES AND OTHER
EXPENSES BY MAJOR CATEGORY
For the Three Months Ended
--------------------------------------------------------------
March 31, June 30, September 30, December 31, March 31,
Unaudited (Dollars in millions) 2005 2005 2005 2005 2006
- -----------------------------------------------------------------------------------------------------------------------------------
INSURANCE EXPENSES (NET OF CAPITALIZATION
OF DAC)
Insurance Expenses $ 606 $ 674 $ 936 $ 941 $ 830
DAC Capitalization (1) (272) (292) (401) (426) (384)
--------------------------------------------------------------
Net $ 334 $ 382 $ 535 $ 515 $ 446
==============================================================
OTHER EXPENSES BY MAJOR CATEGORY
Commissions $ 196 $ 206 $ 329 $ 347 $ 315
Other deferrable expenses 102 113 126 140 120
Direct and allocated expenses, not deferred 251 317 422 410 334
Pension and other post-retirement benefit costs 29 29 29 30 34
Premium taxes and other taxes, licenses and fees 28 9 30 14 27
---------------------------------------------------------------
Subtotal Insurance Expenses 606 674 936 941 830
Broker-dealer and other expenses 132 132 177 132 155
Reinsurance allowances (18) (18) (17) (24) (21)
---------------------------------------------------------------
Total Other Expenses $ 720 $ 788 $ 1,096 $ 1,049 $ 964
==============================================================
(1) Excludes $18 million, $13 million, $17 million, $17 million and $14
million of DAC capitalization related to reinsurance allowances for the
three months ended March 31, 2005, June 30, 2005, September 30, 2005,
December 31, 2005 and March 31, 2006, respectively.
25
(METLIFE LOGO)
INDIVIDUAL OPERATIONS
SPREADS BY PRODUCT
UNAUDITED
For the Three Months Ended
--------------------------------------------------------------
March 31, June 30, September 30, December 31, March 31,
VARIABLE & UNIVERSAL LIFE 2005 2005 2005 2005 2006
- -----------------------------------------------------------------------------------------------------------------------------------
ANNUALIZED GENERAL ACCOUNT
SPREADS BY PRODUCT (%)
Investment income yield 6.96% 6.85% 6.91% 6.63% 6.69%
Average crediting rate 4.84% 4.92% 4.65% 4.67% 4.56%
--------------------------------------------------------------
Spread 2.12% 1.93% 2.26% 1.96% 2.13%
==============================================================
For the Three Months Ended
--------------------------------------------------------------
March 31, June 30, September 30, December 31, March 31,
ANNUITIES 2005 2005 2005 2005 2006
- -----------------------------------------------------------------------------------------------------------------------------------
ANNUALIZED GENERAL ACCOUNT
SPREADS BY PRODUCT (%)
Investment income yield 6.17% 6.62% 6.41% 6.32% 6.28%
Average crediting rate 3.49% 3.44% 3.64% 3.64% 3.65%
--------------------------------------------------------------
Spread 2.68% 3.18% 2.77% 2.68% 2.63%
==============================================================
</Table>
26
(METLIFE LOGO)
AUTO & HOME OPERATIONS
STATEMENTS OF OPERATING EARNINGS
AVAILABLE TO COMMON SHAREHOLDERS - TOTAL
UNAUDITED (DOLLARS IN MILLIONS)
For the Three Months Ended
---------------------------------------------------------------
March 31, June 30, September 30, December 31, March 31,
Auto & Home Operations 2005 2005 2005 2005 2006
- -----------------------------------------------------------------------------------------------------------------------------------
REVENUES
Earned premiums $ 728 $ 738 $ 716 $ 729 $ 724
Investment income, net 43 46 46 46 45
Other revenues 9 8 8 8 7
--------------------------------------------------------------
780 792 770 783 776
--------------------------------------------------------------
EXPENSES
Losses 392 360 483 391 379
Loss adjustment expense 85 88 132 63 72
Other expenses 200 204 209 218 203
--------------------------------------------------------------
677 652 824 672 654
--------------------------------------------------------------
Operating earnings before provision (benefit) for income taxes 103 140 (54) 111 122
Provision (benefit) for income taxes 27 39 (28) 30 29
--------------------------------------------------------------
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $ 76 $ 101 $ (26) $ 81 $ 93
==============================================================
NET INCOME RECONCILIATION
- -----------------------------------------------------------------
Operating earnings available to common shareholders $ 76 $ 101 $ (26) $ 81 $ 93
Net investment gains (losses) 0 (4) (5) (3) 1
Minority interest - net investment gains (losses) 0 0 0 0 0
Net investment gains (losses) tax benefit (provision) 0 1 2 1 (3)
--------------------------------------------------------------
Net investment gains (losses), net of income taxes 0 (3) (3) (2) (2)
Adjustments related to universal life and investment-type product
policy fees 0 0 0 0 0
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 0 0 0 0 0
Discontinued operations, net of income taxes 0 0 0 0 0
--------------------------------------------------------------
Net income available to common shareholders 76 98 (29) 79 91
Preferred stock dividends 0 0 0 0 0
--------------------------------------------------------------
Net income $ 76 $ 98 $ (29) $ 79 $ 91
==============================================================
27
(METLIFE LOGO)
AUTO & HOME OPERATIONS
STATEMENTS OF OPERATING EARNINGS
AVAILABLE TO COMMON SHAREHOLDERS-PRODUCT LEVEL
UNAUDITED (DOLLARS IN MILLIONS)
For the Three Months Ended
----------------------------------------------------------------
March 31, June 30, September 30, December 31, March 31,
Auto 2005 2005 2005 2005 2006
- ------------------------------------------------------------------------------------------------------------------------------------
REVENUES
Earned premiums $ 531 $ 533 $ 534 $ 525 $ 517
Investment income, net 32 35 34 37 34
Other revenues 6 6 6 5 6
----------------------------------------------------------------
569 574 574 567 557
----------------------------------------------------------------
EXPENSES
Losses 304 272 275 296 274
Loss adjustment expense 74 70 64 59 60
Other expenses 137 141 143 150 137
----------------------------------------------------------------
515 483 482 505 471
----------------------------------------------------------------
Operating earnings before provision (benefit) for income taxes 54 91 92 62 86
Provision (benefit) for income taxes 11 24 27 13 21
----------------------------------------------------------------
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $ 43 $ 67 $ 65 $ 49 $ 65
================================================================
Net investment gains (losses), net of income taxes 0 (2) (2) (2) (1)
Adjustments related to net investment gains (losses), 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 43 65 63 47 64
Preferred stock dividends 0 0 0 0 0
----------------------------------------------------------------
Net income $ 43 $ 65 $ 63 $ 47 $ 64
----------------------------------------------------------------
28
(METLIFE LOGO)
AUTO & HOME OPERATIONS
STATEMENTS OF OPERATING EARNINGS
AVAILABLE TO COMMON SHAREHOLDERS-PRODUCT LEVEL
UNAUDITED (DOLLARS IN MILLIONS)
For the Three Months Ended
---------------------------------------------------------------
March 31, June 30, September 30, December 31, March 31,
Homeowners 2005 2005 2005 2005 2006
- -----------------------------------------------------------------------------------------------------------------------------------
REVENUES
Earned premiums $ 184 $ 193 $ 170 $ 192 $ 194
Investment income, net 10 10 12 8 11
Other revenues 1 2 1 2 1
---------------------------------------------------------------
195 205 183 202 206
---------------------------------------------------------------
EXPENSES
Losses 82 82 195 89 98
Loss adjustment expense 11 17 65 5 12
Other expenses 56 58 61 64 59
---------------------------------------------------------------
149 157 321 158 169
---------------------------------------------------------------
Operating earnings before provision (benefit) for income taxes 46 48 (138) 44 37
Provision (benefit) for income taxes 15 15 (52) 15 9
---------------------------------------------------------------
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $ 31 $ 33 $ (86) $ 29 $ 28
===============================================================
Net investment gains (losses), net of income taxes 0 (1) 0 (1) (1)
Adjustments related to net investment gains (losses),
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 31 32 (86) 28 27
Preferred stock dividends 0 0 0 0 0
---------------------------------------------------------------
Net income $ 31 $ 32 $ (86) $ 28 $ 27
---------------------------------------------------------------
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
------------------------------------------------------------------
March 31, June 30, September 30, December 31, March 31,
Other 2005 2005 2005 2005 2006
- ----------------------------------------------------------------------------------------------------------------------------------
REVENUES
Earned premiums $ 13 $ 12 $ 12 $ 12 $ 13
Investment income, net 1 1 0 1 0
Other revenues 2 0 1 1 0
------------------------------------------------------------------
16 13 13 14 13
------------------------------------------------------------------
EXPENSES
Losses 6 6 13 6 7
Loss adjustment expense 0 1 3 (1) 0
Other expenses 7 5 5 4 7
------------------------------------------------------------------
13 12 21 9 14
------------------------------------------------------------------
Operating earnings before provision (benefit) for income taxes 3 1 (8) 5 (1)
Provision (benefit) for income taxes 1 0 (3) 2 (1)
------------------------------------------------------------------
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $ 2 $ 1 $ (5) $ 3 $ 0
==================================================================
Net investment gains (losses), net of income taxes 0 0 (1) 1 0
Adjustments related to net investment gains (losses),
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 2 1 (6) 4 0
Preferred stock dividends 0 0 0 0 0
------------------------------------------------------------------
Net income $ 2 $ 1 $ (6) $ 4 $ 0
------------------------------------------------------------------
30
(METLIFE LOGO)
AUTO & HOME OPERATIONS
WRITTEN PREMIUMS BY PRODUCT AND SELECTED FINANCIAL INFORMATION
AND SUPPLEMENTAL DATA
For the Three Months Ended
------------------------------------------------------------------------------
March 31, June 30, September 30, December 31, March 31,
Unaudited (Dollars in millions) 2005 2005 2005 2005 2006
- -----------------------------------------------------------------------------------------------------------------------------
WRITTEN PREMIUMS BY PRODUCT
Preferred/Standard Automobile $ 512 $ 519 $ 528 $ 492 $ 498
Non-Standard Automobile 17 15 14 12 12
Homeowners 160 212 200 191 169
Other 17 12 11 9 17
----------------------------------------------------------------------------
Total $ 706 $ 758 $ 753 $ 704 $ 696
============================================================================
SELECTED FINANCIAL INFORMATION AND
SUPPLEMENTAL DATA
TOTAL AUTO & HOME
Loss and loss adjustment expense ratio 65.7% 60.4% 85.8% 62.3% 62.4%
Other expense ratio 26.7% 27.2% 28.5% 29.2% 27.2%
---------------------------------------------------------------------------
Total combined ratio (1) 92.4% 87.6% 114.3% 91.5% 89.6%
Effect of catastrophe losses (2) 1.5% 1.2% 27.5% 8.5% 3.0%
---------------------------------------------------------------------------
Combined ratio excluding catastrophes 90.9% 86.4% 86.8% 83.0% 86.6%
===========================================================================
AUTO
Loss and loss adjustment expense ratio 71.5% 63.6% 63.3% 67.6% 64.7%
Other expense ratio 25.0% 26.0% 26.0% 27.8% 25.7%
---------------------------------------------------------------------------
Total combined ratio (1) 96.5% 89.6% 89.3% 95.4% 90.4%
Effect of catastrophe losses (2) 0.4% 0.1% 2.7% 3.4% 0.8%
---------------------------------------------------------------------------
Combined ratio excluding catastrophes 96.1% 89.5% 86.6% 92.0% 89.6%
===========================================================================
HOMEOWNERS
Loss and loss adjustment expense ratio 50.2% 51.4% 153.1% 48.9% 57.1%
Other expense ratio 29.7% 29.8% 35.4% 32.9% 29.3%
---------------------------------------------------------------------------
Total combined ratio (1) 79.9% 81.2% 188.5% 81.8% 86.4%
Effect of catastrophe losses (2) 4.9% 4.4% 106.3% 20.9% 8.9%
---------------------------------------------------------------------------
Combined ratio excluding catastrophes 75.0% 76.8% 82.2% 60.9% 77.5%
===========================================================================
OTHER
Loss and loss adjustment expense ratio 49.3% 60.7% 127.0% 41.7% 53.2%
Other expense ratio 56.1% 38.7% 39.4% 33.3% 52.3%
---------------------------------------------------------------------------
Total combined ratio(1) 105.4% 99.4% 166.4% 75.0% 105.5%
Effect of catastrophe losses 0.0% 0.0% 0.0% 12.5% 0.0%
---------------------------------------------------------------------------
Combined ratio excluding catastrophes 105.4% 99.4% 166.4% 62.5% 105.5%
===========================================================================
PRE-TAX CATASTROPHE LOSSES
Auto $ 2 $ 1 $ 13 $ 17 $ 4
Homeowners 9 9 156 34 17
Other 0 0 0 2 0
---------------------------------------------------------------------------
Total $ 11 $ 10 $ 169 $ 53 $ 21
===========================================================================
CATASTROPHE POINTS ON COMBINED RATIOS 1.5 1.2 27.5 8.5 3.0
NUMBER OF SALES REPRESENTATIVES 89 89 85 100 98
---------------------------------------------------------------------------
(1) The combined ratio reflects payment fees as a credit to Other expenses
for the three months ended March 31, 2005, June 30, 2005, September 30,
2005, December 31, 2005 and March 31, 2006, which resulted in a 0.8,
0.7, 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, 0.5 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, 0.8 of a percentage
point, respectively, for September 30, 2005, 0.8, 0.4 and 0.8 of a
percentage point, respectively, for December 31, 2005 and 0.8, 0.4 and
0.4 of a percentage point, respectively, for March 31, 2006.
(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).
31
(METLIFE LOGO)
INTERNATIONAL OPERATIONS
STATEMENT OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
For the Three Months Ended
------------------------------------------------------------
March 31, June 30, September 30, December 31, March 31,
Unaudited (Dollars in millions) 2005 2005 2005 2005 2006
- ----------------------------------------------------------------------------------------------------------------------------------
REVENUES
Premiums $ 466 $ 470 $ 614 $ 636 $ 631
Universal life and investment-type product policy fees 119 125 170 165 184
Investment income, net 149 195 238 262 235
Other revenues 3 (1) 9 9 4
------------------------------------------------------------
737 789 1,031 1,072 1,054
------------------------------------------------------------
EXPENSES
Policyholder benefits and dividends 410 468 578 600 527
Interest credited to policyholder account balances 47 55 84 92 87
Capitalization of deferred policy acquisition costs (125) (138) (137) (141) (151)
Amortization of deferred policy acquisition costs 56 56 68 43 82
Other expenses 244 274 359 441 396
------------------------------------------------------------
632 715 952 1,035 941
------------------------------------------------------------
Operating earnings before provision (benefit) for income taxes 105 74 79 37 113
Provision (benefit) for income taxes 37 23 13 (11) 38
------------------------------------------------------------
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $ 68 $ 51 $ 66 $ 48 $ 75
============================================================
NET INCOME RECONCILIATION
- ------------------------------------------------------------------
Operating earnings available to common shareholders $ 68 $ 51 $ 66 $ 48 $ 75
Net investment gains (losses) 0 7 5 (7) 20
Minority interest - net investment gains (losses) 0 0 0 0 0
Net investment gains (losses) tax benefit (provision) 0 (2) (2) 3 (6)
------------------------------------------------------------
Net investment gains (losses), net of income taxes 0 5 3 (4) 14
Adjustments related to universal life and investment-type
product policy fees 0 0 0 0 0
Adjustments related to policyholder benefits and dividends 14 (16) (54) (21) 22
Adjustments related to other expenses 0 0 0 0 0
Adjustments related to tax benefit (provision) (5) 6 19 7 (7)
------------------------------------------------------------
Adjustments related to net investment gains (losses), net of income
taxes (1) 9 (10) (35) (14) 15
Discontinued operations, net of income taxes (1) (1) 7 0 0
------------------------------------------------------------
Net income available to common shareholders 76 45 41 30 104
Preferred stock dividends 0 0 0 0 0
------------------------------------------------------------
Net income $ 76 $ 45 $ 41 $ 30 $ 104
============================================================
------------------------------------------------------------
NUMBER OF PROFESSIONAL SALES REPRESENTATIVES 3,749 3,913 3,861 3,783 3,776
------------------------------------------------------------
(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.
32
(METLIFE LOGO)
REINSURANCE OPERATIONS
STATEMENT OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
For the Three Months Ended
-----------------------------------------------------------
March 31, June 30, September 30, December 31, March 31,
Unaudited (Dollars in millions) 2005 2005 2005 2005 2006
- ----------------------------------------------------------------------------------------------------------------------------------
REVENUES
Premiums $ 903 $ 930 $ 974 $ 1,062 $ 993
Investment income, net 150 137 158 161 174
Other revenues 11 21 13 13 15
-----------------------------------------------------------
1,064 1,088 1,145 1,236 1,182
-----------------------------------------------------------
EXPENSES
Claims and other policy benefits 739 828 779 860 813
Interest credited to policyholder account balances 56 43 64 57 63
Policy acquisition costs and other insurance expenses 144 156 162 159 158
Other expenses 44 47 48 57 63
-----------------------------------------------------------
983 1,074 1,053 1,133 1,097
-----------------------------------------------------------
Operating earnings before provision (benefit) for income taxes and
minority interest 81 14 92 103 85
Provision (benefit) for income taxes 13 (1) 16 17 12
-----------------------------------------------------------
Operating earnings available to common shareholders before minority
interest 68 15 76 86 73
Elimination of minority interest, before tax 43 11 50 55 49
-----------------------------------------------------------
CONTRIBUTION TO METLIFE $ 25 $ 4(2) $ 26 $ 31 $ 24
===========================================================
NET INCOME RECONCILIATION
- --------------------------------------------------------------------
Operating earnings available to common shareholders $ 25 $ 4 $ 26 $ 31 $ 24
Net investment gains (losses) 28 (7) 7 (6) 8
Minority interest - net investment gains (losses) (5) (2) (1) 3 (2)
Net investment gains (losses) tax benefit (provision) (8) 6 (2) 1 (2)
-----------------------------------------------------------
Net investment gains (losses), net of income taxes 15 (3) 4 (2) 4
Adjustments related to universal life and investment-type product
policy fees 0 0 0 0 0
Adjustments related to policyholder benefits and dividends 0 0 0 0 0
Adjustments related to other expenses (17) 12 (4) (1) (3)
Adjustments related to tax benefit (provision) 6 (6) 2 0 1
-----------------------------------------------------------
Adjustments related to net investment gains (losses), net of income
taxes (1) (11) 6 (2) (1) (2)
Discontinued operations, net of income taxes 0 0 0 0 0
-----------------------------------------------------------
Net income available to common shareholders 29 7 28 28 26
Preferred stock dividends 0 0 0 0 0
-----------------------------------------------------------
Net income $ 29 $ 7 $ 28 $ 28 $ 26
-----------------------------------------------------------
(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.
33
REINSURANCE OPERATIONS
PRE-TAX AND PRE-MINORITY INTEREST OPERATING
EARNINGS BY REGION AND RESERVES BY REGION
For the Three Months Ended
-----------------------------------------------------------------------
March 31, June 30, September 30, December 31, March 31,
Unaudited (Dollars in millions) 2005 2005 2005 2005 2006
- ------------------------------------------------------------------------------- ---------------------------------------------------
PRE-TAX AND PRE-MINORITY INTEREST
OPERATING EARNINGS BY REGION (1)
United States $ 48 $ 28 $ 78 $ 80 $ 66
Canada 23 17 21 20 7
Asia-Pacific 5 14 4 18 7
Other international markets 15 (7) 15 12 15
Corporate (10) (38) (26) (27) (10)
-----------------------------------------------------------------------
Total pre-tax and pre-minority interest
operating earnings $ 81 $ 14 $ 92 $ 103 $ 85
=======================================================================
POLICY BENEFITS AND INTEREST
SENSITIVE CONTRACT LIABILITIES BY REGION
Traditional U.S. $ 3,785 $ 3,865 $ 3,966 $ 4,030 $ 4,157
Asset intensive 4,159 4,267 4,497 4,657 4,773
Other 122 126 90 100 77
-----------------------------------------------------------------------
Total U.S.
8,066 8,258 8,553 8,787 9,007
-----------------------------------------------------------------------
Canada 1,367 1,389 1,507 1,596 1,622
Asia-Pacific 548 611 629 688 708
Other international markets 693 702 677 680 719
-----------------------------------------------------------------------
Total International 2,608 2,702 2,813 2,964 3,049
-----------------------------------------------------------------------
Total policy benefits and interest sensitive
contract liabilities $ 10,674 $ 10,960 $ 11,366 $ 11,751 $ 12,056
=======================================================================
(1) Effective for the three months ended March 31, 2006, Reinsurance Group
of America Incorporated ("RGA") changed its method of allocating
capital to its regional markets from a method based on regulatory
capital requirements to one based upon underlying economic capital
levels. This approach is based upon a more detailed, internally
developed risk capital model that its management believes better
captures the unique risks inherent in each regional business. The
primary effect of the change relates to the amount of net investment
income and capital charges that are allocated to each region. This
change does not affect RGA's consolidated financial results.
34
(METLIFE LOGO)
CORPORATE, OTHER & ELIMINATIONS
STATEMENT OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
For the Three Months Ended
-----------------------------------------------------------------
March 31, June 30, September 30, December 31, March 31,
Unaudited (Dollars in millions) 2005 2005 2005 2005 2006
- -----------------------------------------------------------------------------------------------------------------------------------
REVENUES
Premiums $ (3) $ (1) $ 2 $ 7 $ 9
Universal life and investment-type product
policy fees 0 0 1 0 0
Investment income, net 151 195 212 255 296
Other revenues 3 5 5 17 7
-----------------------------------------------------------------
151 199 220 279 312
-----------------------------------------------------------------
EXPENSES
Policyholder benefits and dividends 2 (47) 11 16 7
Interest credited to policyholder account balances (1) 1 0 0 0
Interest credited to bank deposits 17 25 30 37 43
Interest expense 104 110 166 171 175
Other expenses 63 34 57 133 93
-----------------------------------------------------------------
185 123 264 357 318
-----------------------------------------------------------------
Operating earnings before provision (benefit) for
income taxes (34) 76 (44) (78) (6)
Provision (benefit) for income taxes (42) (1) (72) (46) (48)
-----------------------------------------------------------------
Operating earnings 8 77 28 (32) 42
Preferred stock dividends 0 0 31 32 33
-----------------------------------------------------------------
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $ 8 $ 77(1) $ (3)(2) $ (64) $ 9
=================================================================
NET INCOME RECONCILIATION
- --------------------------------------------------------------
Operating earnings available to common shareholders $ 8 $ 77 $ (3) $ (64) $ 9
Net investment gains (losses) (113) 1,313 73 118 (49)
Minority interest - net investment gains (losses) 0 0 0 0 0
Net investment gains (losses) tax benefit (provision) 43 (468) (25) (44) 16
-----------------------------------------------------------------
Net investment gains (losses), net of income taxes (70) 845 48 74 (33)
Adjustments related to universal life and
investment-type product policy fees 0 0 0 0 0
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 0 0 0 0 0
Discontinued operations, net of income taxes 151 0 0 12 0
-----------------------------------------------------------------
Net income available to common shareholders 89 922 45 22 (24)
Preferred stock dividends 0 0 31 32 33
-----------------------------------------------------------------
Net income $ 89 $ 922 $ 76 $ 54 $ 9
=================================================================
(1) 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.
(2) Operating earnings available to common shareholders for the three months
ended September 30, 2005 includes a $31 million benefit from a revision of
the estimate of income taxes for 2004.
35
(METLIFE LOGO)
METLIFE, INC.
INVESTMENT RESULTS
BY ASSET CATEGORY AND
ANNUALIZED YIELDS (1)
At or For the Three Months Ended
----------------------------------------------------------------------------
March 31, June 30, September 30, December 31, March 31,
UNAUDITED (DOLLARS IN MILLIONS) 2005 2005 2005 2005 2006
- ------------------------------------------------------------------------------------------------------------------------------------
FIXED MATURITIES
Yield (2) 6.34% 6.34% 6.05% 6.20% 6.15%
Income (3) $ 2,279 $ 2,311 $ 2,866 $ 2,968 $ 3,002
Investment gains (losses) $ (114) $ (89) $ (98) $ (567) $ (412)
Ending Carrying Value (3) $ 182,267 $ 184,830 $ 232,041 $ 230,875 $ 240,711
MORTGAGE AND CONSUMER LOANS
Yield (4) 6.76% 6.89% 6.96% 6.85% 6.68%
Income $ 517 $ 535 $ 593 $ 591 $ 585
Investment gains (losses) $ (11) $ (8) $ 13 $ 23 $ 4
Ending Carrying Value $ 31,977 $ 33,586 $ 36,094 $ 37,190 $ 37,351
REAL ESTATE AND REAL ESTATE
JOINT VENTURES
Yield (4) 11.02% 12.41% 10.72% 8.59% 12.50%
Income (5) $ 119 $ 130 $ 118 $ 100 $ 146
Investment gains (losses) (6) $ 18 $ 1,904 $ 51 $ 166 $ 17
Ending Carrying Value $ 4,377 $ 3,998 $ 4,705 $ 4,665 $ 4,700
POLICY LOANS
Yield (4) 6.17% 6.19% 6.15% 5.80% 5.84%
Income $ 138 $ 139 $ 152 $ 143 $ 146
Ending Carrying Value $ 8,953 $ 8,975 $ 9,841 $ 9,981 $ 9,987
EQUITY SECURITIES AND OTHER LIMITED
PARTNERSHIP INTERESTS
Yield (4) 9.90% 21.33% 9.23% 12.36% 12.53%
Income $ 118 $ 276 $ 162 $ 218 $ 229
Investment gains (losses) $ 95 $ 12 $ 20 $ 32 $ 27
Ending Carrying Value $ 5,514 $ 5,914 $ 7,403 $ 7,614 $ 7,870
CASH AND SHORT-TERM INVESTMENTS
Yield (4) 4.77% 3.57% 3.45% 4.22% 4.63%
Income $ 64 $ 91 $ 122 $ 85 $ 80
Investment gains (losses) $ (1) $ 0 $ 0 $ (1) $ (1)
Ending Carrying Value $ 6,470 $ 15,770 $ 11,431 $ 7,324 $ 8,512
OTHER INVESTED ASSETS
Yield (4) 9.09% 7.83% 10.00% 9.65% 8.92%
Income (7) $ 104 $ 102 $ 186 $ 178 $ 171
Investment gains (losses) $ (8) $ 406 $ (9) $ 113 $ (259)
Ending Carrying Value $ 5,331 $ 6,452 $ 7,877 $ 8,078 $ 8,386
TOTAL INVESTMENTS
Gross investment income yield 6.60% 6.81% 6.30% 6.51% 6.54%
Investment fees and expenses yield (0.12%) (0.15%) (0.13%) (0.17%) (0.12%)
----------------------------------------------------------------------------
NET INVESTMENT INCOME YIELD 6.48% 6.66% 6.17% 6.34% 6.42%
============================================================================
Gross investment income $ 3,339 $ 3,584 $ 4,199 $ 4,283 $ 4,359
Investment fees and expenses (60) (76) (87) (116) (81)
----------------------------------------------------------------------------
NET INVESTMENT INCOME $ 3,279 $ 3,508 $ 4,112 $ 4,167 $ 4,278
============================================================================
Ending Carrying Value $ 244,889 $ 259,525 $ 309,392 $ 305,727 $ 317,517
============================================================================
Gross investment gains $ 373 $ 2,133 $ 342 $ 492 $ 237
Gross investment losses (322) (231) (304) (721) (587)
Writedowns (51) (42) (14) (9) (22)
----------------------------------------------------------------------------
Subtotal 0 1,860 24 (238) (372)
Derivative & other instruments not qualifying for
hedge accounting (21) 365 (47) 4 (252)
----------------------------------------------------------------------------
NET INVESTMENT GAINS (LOSSES) (21) 2,225 (23) (234) (624)
Minority interest - net investment gains (losses) (9) (2) (1) 3 (2)
Net investment gains (losses) tax benefit (provision) 9 (784) 9 85 220
----------------------------------------------------------------------------
NET INVESTMENT GAINS (LOSSES), NET OF INCOME TAXES $ (21) $ 1,439 $ (15) $ (146) $ (406)
============================================================================
(1) Certain amounts in prior periods presented throughout the QFS have been
reclassified to conform with current period presentation.
(2) The fixed maturities yield is annualized and is based on quarterly average
amortized cost.
(3) Fixed maturities includes $134 million, $197 million, $805 million,
$825 million and $883 million in ending carrying value and $1 million,
$2 million, $14 million, ($3) million and $19 million of investment income
(loss) related to trading securities at or for the three months ended
March 31, 2005, June 30, 2005, September 30, 2005, December 31, 2005 and
March 31, 2006, respectively.
(4) Yields are annualized and based on quarterly average carrying values.
(5) Included in income from real estate and real estate joint ventures is $39
million, $15 million, ($2) million, $6 million and $0 million related to
discontinued operations for the three months ended March 31, 2005, June 30,
2005, September 30, 2005, December 31, 2005 and March 31, 2006,
respectively.
(6) Included in investment gains (losses) from real estate and real estate
joint ventures is $18 million, $1,905 million, $46 million, $156 million
and ($5) million related to discontinued operations for the three months
ended March 31, 2005, June 30, 2005, September 30, 2005, December 31, 2005
and March 31, 2006, respectively.
(7) 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 $24 million,
$13 million, $26 million, $36 million and $39 million for the three months
ended March 31, 2005, June 30, 2005, September 30, 2005, December 31, 2005
and March 31, 2006, respectively. These amounts are excluded from net
investment gains (losses). Additionally, excluded from net investment gains
(losses) is ($7) million, ($6) million and ($4) million for the three
months ended September 30, 2005, December 31, 2005 and March 31, 2006,
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.
36
(METLIFE LOGO)
METLIFE, INC.
INVESTMENT RESULTS
BY ASSET CATEGORY AND
ANNUALIZED YIELDS (1)
UNAUDITED (DOLLARS IN MILLIONS)
At or For the Year-to-Date Ended
----------------------------------------------------------------------------
March 31, June 30, September 30, December 31, March 31,
2005 2005 2005 2005 2006
- ------------------------------------------------------------------------------------------------------------------------------------
FIXED MATURITIES
Yield (2) 6.34% 6.37% 5.95% 6.02% 6.15%
Income (3) $ 2,279 $ 4,590 $ 7,456 $ 10,424 $ 3,002
Investment gains (losses) $ (114) $ (203) $ (301) $ (868) $ (412)
Ending Carrying Value (3) $ 182,267 $ 184,830 $ 232,041 $ 230,875 $ 240,711
MORTGAGE AND CONSUMER LOANS
Yield (4) 6.76% 6.79% 6.79% 6.81% 6.68%
Income $ 517 $ 1,052 $ 1,645 $ 2,236 $ 585
Investment gains (losses) $ (11) $ (19) $ (6) $ 17 $ 4
Ending Carrying Value $ 31,977 $ 33,586 $ 36,094 $ 37,190 $ 37,351
REAL ESTATE AND REAL ESTATE
JOINT VENTURES
Yield (4) 11.02% 11.82% 11.31% 10.59% 12.50%
Income (5) $ 119 $ 249 $ 367 $ 467 $ 146
Investment gains (losses) (6) $ 18 $ 1,922 $ 1,973 $ 2,139 $ 17
Ending Carrying Value $ 4,377 $ 3,998 $ 4,705 $ 4,665 $ 4,700
POLICY LOANS
Yield (4) 6.17% 6.18% 6.08% 6.00% 5.84%
Income $ 138 $ 277 $ 429 $ 572 $ 146
Ending Carrying Value $ 8,953 $ 8,975 $ 9,841 $ 9,981 $ 9,987
EQUITY SECURITIES AND OTHER LIMITED
PARTNERSHIP INTERESTS
Yield (4) 9.90% 15.85% 12.47% 12.44% 12.53%
Income $ 118 $ 394 $ 556 $ 774 $ 229
Investment gains (losses) $ 95 $ 107 $ 127 $ 159 $ 27
Ending Carrying Value $ 5,514 $ 5,914 $ 7,403 $ 7,614 $ 7,870
CASH AND SHORT-TERM INVESTMENTS
Yield (4) 4.77% 3.59% 3.52% 3.66% 4.63%
Income $ 64 $ 155 $ 277 $ 362 $ 80
Investment gains (losses) $ (1) $ (1) $ (1) $ (2) $ (1)
Ending Carrying Value $ 6,470 $ 15,770 $ 11,431 $ 7,324 $ 8,512
OTHER INVESTED ASSETS
Yield (4) 9.09% 8.22% 8.67% 8.96% 8.92%
Income (7) $ 104 $ 206 $ 392 $ 570 $ 171
Investment gains (losses) $ (8) $ 398 $ 389 $ 502 $ (259)
Ending Carrying Value $ 5,331 $ 6,452 $ 7,877 $ 8,078 $ 8,386
TOTAL INVESTMENTS
Gross investment income yield 6.60% 6.69% 6.29% 6.35% 6.54%
Investment fees and expenses yield (0.12%) (0.13%) (0.13%) (0.14%) (0.12%)
----------------------------------------------------------------------------
NET INVESTMENT INCOME YIELD 6.48% 6.56% 6.16% 6.21% 6.42%
============================================================================
Gross investment income $ 3,339 $ 6,923 $ 11,122 $ 15,405 $ 4,359
Investment fees and expenses (60) (136) (223) (339) (81)
----------------------------------------------------------------------------
NET INVESTMENT INCOME $ 3,279 $ 6,787 $ 10,899 $ 15,066 $ 4,278
============================================================================
Ending Carrying Value $ 244,889 $ 259,525 $ 309,392 $ 305,727 $ 317,517
============================================================================
Gross investment gains $ 373 $ 2,506 $ 2,848 $ 3,340 $ 237
Gross investment losses (322) (553) (857) (1,578) (587)
Writedowns (51) (93) (107) (116) (22)
----------------------------------------------------------------------------
Subtotal 0 1,860 1,884 1,646 (372)
Derivative & other instruments not qualifying
for hedge accounting (21) 344 297 301 (252)
----------------------------------------------------------------------------
NET INVESTMENT GAINS (LOSSES) (21) 2,204 2,181 1,947 (624)
Minority interest - net investment gains (losses) (9) (11) (12) (9) (2)
Net investment gains (losses) tax benefit (provision) 9 (775) (766) (681) 220
----------------------------------------------------------------------------
NET INVESTMENT GAINS (LOSSES), NET OF INCOME TAXES $ (21) $ 1,418 $ 1,403 $ 1,257 $ (406)
----------------------------------------------------------------------------
(1) Certain amounts in prior periods presented throughout the QFS have been
reclassified to conform with current period presentation.
(2) The fixed maturities yield is annualized and is based on quarterly average
amortized cost.
(3) Fixed maturities includes $134 million, $197 million, $805 million,
$825 million and $883 million in ending carrying value and $1 million,
$3 million, $17 million, $14 million and $19 million of investment income
related to trading securities at or for year-to-date ended March 31, 2005,
June 30, 2005, September 30, 2005, December 31, 2005 and March 31, 2006,
respectively.
(4) Yields are annualized and based on quarterly average carrying values.
(5) Included in income from real estate and real estate joint ventures is $39
million, $54 million, $52 million, $58 million and $0 million related to
discontinued operations for year-to-date March 31, 2005, June 30, 2005,
September 30, 2005, December 31, 2005 and March 31, 2006, respectively.
(6) Included in investment gains (losses) from real estate and real estate
joint ventures is $18 million, $1,923 million, $1,969 million, $2,125
million, and ($5) million related to discontinued operations for
year-to-date March 31, 2005, June 30, 2005, September 30, 2005, December
31, 2005 and March 31, 2006, respectively.
(7) 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 $24 million,
$37 million, $63 million, $99 million and $39 million for the year-to-date
March 31, 2005, June 30, 2005, September 30, 2005, December 31, 2005 and
March 31, 2006, respectively. These amounts are excluded from net
investment gains (losses). Additionally, excluded from net investment gains
(losses) is ($7) million, ($13) million and ($4) for the year-to-date
September 30, 2005, December 31, 2005 and March 31, 2006, 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.
37
(METLIFE LOGO)
METLIFE, INC.
GROSS UNREALIZED GAINS AND LOSSES AGING SCHEDULE
FIXED MATURITIES (1)
UNAUDITED (DOLLARS IN MILLIONS)
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
- ---------------------------------------------------------------------------------------------------------------------
Less than 20% $ 1,185 99.1% $ 416 95.4% $ 1,758 95.9%
20% or more for less than six months 5 0.4% 13 3.0% 69 3.8%
20% or more for six months or greater 6 0.5% 7 1.6% 6 0.3%
-----------------------------------------------------------------------------
Total Gross Unrealized Losses $ 1,196 100.0% $ 436 100.0% $ 1,833 100.0%
-----------------------------------------------------------------------------
Total Gross Unrealized Gains $ 8,485 $ 11,250 $ 8,814
========== ========== ==========
At December 31, 2005 At March 31, 2006
--------------------------------------------------
Unaudited (Dollars in millions) Amount % of Total Amount % of Total
- --------------------------------------------------------------------------------------------
Less than 20% $ 2,159 97.9% $ 4,379 98.7%
20% or more for less than six months 39 1.8% 47 1.1%
20% or more for six months or greater 7 0.3% 9 0.2%
--------------------------------------------------
Total Gross Unrealized Losses $ 2,205 100.0% $ 4,435 100.0%
--------------------------------------------------
Total Gross Unrealized Gains $ 8,329 $ 6,123
========== ==========
GROSS UNREALIZED GAINS AND LOSSES AGING SCHEDULE
EQUITY SECURITIES (1)
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
- ---------------------------------------------------------------------------------------------------------------------------
Less than 20% $ 44 78.6% $ 25 62.5% $ 29 70.7%
20% or more for less than six months 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%
-----------------------------------------------------------------------------------
Total Gross Unrealized Losses $ 56 100.0% $ 40 100.0% $ 41 100.0%
-----------------------------------------------------------------------------------
Total Gross Unrealized Gains $ 169 $ 206 $ 256
=========== =========== ===========
At December 31, 2005 At March 31, 2006
------------------------------------------------------
Unaudited (Dollars in millions) Amount % of Total Amount % of Total
- --------------------------------------------------------------------------------------------------
Less than 20% $ 29 70.7% $ 30 75.0%
20% or more for less than six months 12 29.3% 10 25.0%
20% or more for six months or greater 0 0.0% 0 0.0%
------------------------------------------------------
Total Gross Unrealized Losses $ 41 100.0% $ 40 100.0%
------------------------------------------------------
Total Gross Unrealized Gains $ 295 $ 384
=========== ===========
(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.
38
(METLIFE LOGO)
METLIFE, INC.
SUMMARY OF FIXED MATURITIES AVAILABLE FOR SALE
BY SECTOR AND QUALITY DISTRIBUTION (1)
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
- --------------------------------------------------------------------------------------------------------------------------------
U.S. corporate securities $ 60,417 33.2% $ 61,614 33.4% $ 78,472 33.9%
Residential mortgage-backed securities 34,650 19.0% 34,795 18.8% 43,200 18.8%
Foreign corporate securities 27,395 15.0% 28,184 15.3% 34,837 15.1%
US Treasury/agency securities 21,770 12.0% 21,051 11.4% 26,468 11.4%
Commercial mortgage-backed securities 13,372 7.3% 13,836 7.5% 17,389 7.5%
Asset-backed securities 10,826 5.9% 10,373 5.6% 13,868 6.0%
Foreign government securities 8,917 4.9% 10,129 5.5% 11,049 4.8%
State and political subdivision securities 3,934 2.2% 3,780 2.0% 4,722 2.0%
Other fixed maturity securities 703 0.4% 716 0.4% 1,038 0.4%
-----------------------------------------------------------------------------------
Total bonds 181,984 99.9% 184,478 99.9% 231,043 99.9%
Redeemable preferred stock 149 0.1% 155 0.1% 193 0.1%
-----------------------------------------------------------------------------------
Total fixed maturities $ 182,133 100.0% $ 184,633 100.0% $ 231,236 100.0%
===================================================================================
NAIC RATING AGENCY
RATING(1) EQUIVALENT DESIGNATION
1 Aaa/Aa/A $ 125,528 68.9% $ 127,540 69.1% $ 163,963 70.9%
2 Baa 44,054 24.2% 44,202 23.9% 51,438 22.2%
3 Ba 7,392 4.1% 7,476 4.0% 9,665 4.2%
4 B 4,634 2.5% 4,895 2.7% 5,532 2.4%
5 Caa and lower 325 0.2% 335 0.2% 317 0.1%
6 In or near default 51 0.0% 30 0.0% 128 0.1%
-----------------------------------------------------------------------------------
Total bonds 181,984 99.9% 184,478 99.9% 231,043 99.9%
Redeemable preferred stock 149 0.1% 155 0.1% 193 0.1%
-----------------------------------------------------------------------------------
Total Fixed Maturities $ 182,133 100.0% $ 184,633 100.0% $ 231,236 100.0%
===================================================================================
At December 31, 2005 At March 31, 2006
------------------------------------------------------
Unaudited (Dollars in millions) Amount % of Total Amount % of Total
- ----------------------------------------------------------------------------------------------------
U.S. corporate securities $ 74,318 32.3% $ 73,897 30.8%
Residential mortgage-backed securities 47,246 20.5% 52,016 21.7%
Foreign corporate securities 34,981 15.2% 35,028 14.6%
US Treasury/agency securities 26,958 11.7% 27,724 11.6%
Commercial mortgage-backed securities 17,698 7.7% 20,029 8.3%
Asset-backed securities 11,573 5.0% 13,630 5.7%
Foreign government securities 11,446 5.0% 11,539 4.8%
State and political subdivision securities 4,750 2.1% 4,839 2.0%
Other fixed maturity securities 888 0.4% 934 0.4%
------------------------------------------------------
Total bonds 229,858 99.9% 239,636 99.9%
Redeemable preferred stock 192 0.1% 192 0.1%
------------------------------------------------------
Total fixed maturities $ 230,050 100.0% $ 239,828 100.0%
======================================================
NAIC RATING AGENCY
RATING(1) EQUIVALENT DESIGNATION
1 Aaa/Aa/A $ 165,577 72.0% $ 176,017 73.4%
2 Baa 49,124 21.3% 47,852 20.0%
3 Ba 9,142 4.0% 9,456 3.9%
4 B 5,710 2.5% 5,997 2.5%
5 Caa and lower 290 0.1% 291 0.1%
6 In or near default 15 0.0% 23 0.0%
------------------------------------------------------
Total bonds 229,858 99.9% 239,636 99.9%
Redeemable preferred stock 192 0.1% 192 0.1%
------------------------------------------------------
Total Fixed Maturities $ 230,050 100.0% $ 239,828 100.0%
======================================================
(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 March 31, 2005 At June 30, 2005 At September 30, 2005
-----------------------------------------------------------------------------------
Unaudited (Dollars in millions) Amount % of Total Amount % of Total Amount % of Total
- ------------------------------------------------------------------------------------------------------------------------
Pacific $ 5,888 23.9% $ 6,224 23.8% $ 6,664 24.5%
South Atlantic 5,613 22.8% 6,005 23.0% 6,168 22.6%
Middle Atlantic 3,898 15.8% 4,007 15.4% 4,273 15.7%
East North Central 2,565 10.4% 2,868 11.0% 2,894 10.6%
West South Central 2,139 8.7% 2,140 8.2% 2,131 7.8%
New England 1,409 5.7% 1,438 5.5% 1,536 5.6%
International 1,343 5.5% 1,395 5.3% 1,455 5.3%
Mountain 780 3.2% 868 3.3% 938 3.5%
West North Central 631 2.5% 698 2.7% 710 2.6%
East South Central 267 1.1% 360 1.4% 384 1.4%
Other 98 0.4% 97 0.4% 97 0.4%
-----------------------------------------------------------------------------------
Total $ 24,631 100.0% $ 26,100 100.0% $ 27,250 100.0%
===================================================================================
Office $ 10,798 43.8% $ 11,776 45.0% $ 12,873 47.2%
Retail 5,754 23.4% 6,073 23.3% 6,078 22.3%
Apartments 3,330 13.5% 3,416 13.1% 3,435 12.7%
Industrial 2,749 11.2% 2,813 10.8% 2,701 9.9%
Hotel 1,212 4.9% 1,295 5.0% 1,419 5.2%
Other 788 3.2% 727 2.8% 744 2.7%
-----------------------------------------------------------------------------------
Total $ 24,631 100.0% $ 26,100 100.0% $ 27,250 100.0%
===================================================================================
At December 31, 2005 At March 31, 2006
------------------------------------------------------
Unaudited (Dollars in millions) Amount % of Total Amount % of Total
------------------------------------------------------
Pacific $ 6,818 24.3% $ 7,038 24.9%
South Atlantic 6,093 21.8% 6,343 22.4%
Middle Atlantic 4,689 16.7% 4,177 14.8%
East North Central 3,078 11.0% 3,161 11.2%
West South Central 2,069 7.4% 2,288 8.1%
New England 1,295 4.6% 1,261 4.5%
International 1,817 6.5% 1,896 6.7%
Mountain 861 3.1% 821 2.9%
West North Central 825 2.9% 817 2.9%
East South Central 381 1.4% 380 1.3%
Other 96 0.3% 96 0.3%
------------------------------------------------------
Total $ 28,022 100.0% $ 28,278 100.0%
======================================================
Office $ 13,453 48.0% $ 13,636 48.2%
Retail 6,398 22.8% 6,270 22.2%
Apartments 3,102 11.1% 3,283 11.6%
Industrial 2,656 9.5% 2,763 9.8%
Hotel 1,355 4.8% 1,490 5.3%
Other 1,058 3.8% 836 2.9%
------------------------------------------------------
Total $ 28,022 100.0% $ 28,278 100.0%
======================================================
(1) Certain amounts in prior periods presented throughout the QFS have been
reclassified to conform with current period presentation.
39
(METLIFE LOGO)
METLIFE, INC.
SUMMARY OF REAL ESTATE
<Table>
<Caption>
March 31, June 30, September 30, December 31, March 31,
Unaudited (Dollars in millions) 2005 2005 2005 2005 2006
- ----------------------------------------------------------------------------------------------------------------------------
Wholly owned $3,767 $3,277 $3,919 $3,735 $3,902
Joint ventures 606 718 783 926 794
--------------------------------------------------------------------------
Subtotal 4,373 3,995 4,702 4,661 4,696
Foreclosed 4 3 3 4 4
--------------------------------------------------------------------------
Total Real Estate (1) $4,377 $3,998 $4,705 $4,665 $4,700
==========================================================================
SUMMARY OF MORTGAGES AND CONSUMER LOANS
March 31, June 30, September 30, December 31, March 31,
Unaudited (Dollars in millions) 2005 2005 2005 2005 2006
- -----------------------------------------------------------------------------------------------------------------------------
COMMERCIAL MORTGAGES $24,631 $26,100 $27,250 $28,022 $28,278
AGRICULTURAL MORTGAGES 5,929 6,040 7,474 7,700 7,689
CONSUMER LOANS 1,417 1,446 1,370 1,468 1,384
--------------------------------------------------------------------------
TOTAL $31,977 $33,586 $36,094 $37,190 $37,351
==========================================================================
(1) Includes real estate held-for-sale and held-for-investment.
40
(METLIFE LOGO)
COMPANY RATINGS AS OF APRIL 26, 2006
<Table>
<Caption>
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 AMB-1 * F1
Subordinated Debt A3 *(P) 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+
</Table>
* Moody's, Standard & Poor's and A.M. Best's outlook for these ratings is
negative.
(P) Preliminary
NR Not Rated
41