METLIFE(R)
THIRD QUARTER
FINANCIAL SUPPLEMENT
SEPTEMBER 30, 2006
3
[METLIFE LOGO]
(METLIFE(R) LOGO)
TABLE OF CONTENTS
HIGHLIGHTS
CORPORATE OVERVIEW 2
METLIFE, INC.
CONSOLIDATED BALANCE SHEETS 3
CONSOLIDATED STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON
SHAREHOLDERS 4
CONSOLIDATING BALANCE SHEET 5
CONSOLIDATING STATEMENT OF OPERATING EARNINGS AVAILABLE TO COMMON
SHAREHOLDERS 6
SUMMARY OF SEGMENT OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS 10
INSTITUTIONAL OPERATIONS
STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS 11
PREMIUMS, FEES AND OTHER REVENUES BY PRODUCT AND ADDITIONAL
STATISTICAL INFORMATION 15
FUTURE POLICY BENEFITS AND POLICYHOLDER ACCOUNT BALANCES AND
SEPARATE ACCOUNT LIABILITIES 16
OTHER EXPENSES BY MAJOR CATEGORY 17
SPREADS BY PRODUCT 18
INDIVIDUAL OPERATIONS
STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS 19
PREMIUMS AND DEPOSITS BY PRODUCT 24
ADDITIONAL STATISTICAL INFORMATION 25
FUTURE POLICY BENEFITS AND POLICYHOLDER ACCOUNT BALANCES AND
SEPARATE ACCOUNT LIABILITIES 26
INSURANCE EXPENSES AND OTHER EXPENSES BY MAJOR CATEGORY 27
SPREADS BY PRODUCT 28
AUTO & HOME OPERATIONS
STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS 29
WRITTEN PREMIUMS BY PRODUCT AND SELECTED FINANCIAL INFORMATION AND
SUPPLEMENTAL DATA 32
INTERNATIONAL OPERATIONS
STATEMENT OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS 33
REINSURANCE OPERATIONS
STATEMENT OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS 34
PRE-TAX AND PRE-MINORITY INTEREST OPERATING EARNINGS BY REGION AND
RESERVES BY REGION 35
CORPORATE, OTHER & ELIMINATIONS
STATEMENT OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS 36
METLIFE, INC.
INVESTMENT RESULTS BY ASSET CATEGORY AND ANNUALIZED YIELDS 37
FIXED MATURITIES AND EQUITY SECURITIES GROSS UNREALIZED GAINS AND
LOSSES AGING SCHEDULES 39
SUMMARY OF REAL ESTATE AND SUMMARY OF MORTGAGES AND CONSUMER LOANS 40
OTHER INFORMATION
COMPANY RATINGS 41
</Table>
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 periodic 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 October 30, 2006, for the quarter ended September
30, 2006, which are available at www.metlife.com.
1
(METLIFE(R) LOGO)
CORPORATE OVERVIEW
Unaudited (Dollars and shares in millions, except per share data)
For the Three Months Ended
-----------------------------------------------------------------------
September 30, December 31, March 31, June 30, September 30,
2005 2005 2006 2006 2006
------------- ------------ --------- -------- -------------
Net income $ 773 $ 709 $ 747 $ 650 $1,033
Preferred stock dividends 31 32 33 33 34
------ ------ ------ ------ ------
Net income available to common shareholders 742 677 714 617 999
------ ------ ------ ------ ------
Net investment gains (losses) (23) (234) (624) (817) 254
Minority interest - net investment gains
(losses) (1) 3 (2) 4 0
Net investment gains (losses) tax benefit
(provision) 9 85 220 289 (92)
------ ------ ------ ------ ------
Net investment gains (losses), net of income
taxes (1) (2) (15) (146) (406) (524) 162
------ ------ ------ ------ ------
Adjustments related to universal life and
investment-type product policy fees 0 0 (3) (9) 3
Adjustments related to policyholder benefits
and dividends (55) (9) 108 84 (204)
Adjustments related to other expenses 7 30 42 126 14
Adjustments related to tax benefit (provision) 18 (9) (52) (72) 66
------ ------ ------ ------ ------
Adjustments related to net investment gains
(losses), net of income taxes (3) (30) 12 95 129 (121)
------ ------ ------ ------ ------
Discontinued operations, net of income taxes 7 12 0 30 0
------ ------ ------ ------ ------
Operating earnings available to common shareholders (4) $ 780(6) $ 799 $1,025 $ 982 $958
====== ====== ====== ====== ======
Net income available to common shareholders per
common share - diluted $ 0.97 $ 0.88 $ 0.93 $ 0.80 $ 1.29
Net investment gains (losses), net of income taxes (0.02) (0.20) (0.53) (0.69) 0.21
Adjustments related to net investment gains
(losses), net of income taxes (0.03) 0.02 0.13 0.17 (0.16)
Discontinued operations, net of income taxes 0.01 0.02 0.00 0.04 0.00
------ ------ ------ ------ ------
Operating earnings available to common
shareholders - diluted $1.01 $ 1.04 $ 1.33 $ 1.28 $ 1.24
====== ====== ====== ====== ======
Weighted average common shares
outstanding - diluted 768.7 769.0 768.8 769.9 773.7
Book value per common share (actual common
shares outstanding) $35.29 $35.72 $34.98 $33.77 $38.91
Book value per common share, excluding accumulated
other comprehensive income (actual common
shares outstanding) $32.81 $33.20 $34.21 $35.08 $36.42
Book value per common share - diluted (weighted
average common shares outstanding) $34.75 $35.19 $34.50 $33.30 $38.22
Book value per common share, excluding accumulated
other comprehensive income - diluted
(weighted average common shares
outstanding) $32.32 $32.70 $33.73 $34.59 $35.78
For the Three Months Ended
-----------------------------------------------------------------------
September 30, December 31, March 31, June 30, September 30,
2005 2005 2006 2006 2006
------------- ------------ --------- -------- -------------
Common shares outstanding, beginning of period 733.9 757.1 757.5 758.2 759.2
Treasury stock 23.2 0.4 0.7 1.0 0.8
------ ------ ------ ------ ------
Common shares outstanding, end of period 757.1 757.5 758.2 759.2 760.0
====== ====== ====== ====== ======
Weighted average common shares outstanding - basic 759.8 761.1 762.0 763.1 762.4
Dilutive effect of stock-based awards 8.9 7.9 6.8 6.8 9.3
Dilutive effect of stock purchase contracts
underlying common equity units 0.0 0.0 0.0 0.0 2.0
------ ------ ------ ------ ------
Weighted average common shares
outstanding - diluted 768.7 769.0 768.8 769.9 773.7
====== ====== ====== ====== ======
Policyholder Trust Shares 307.8 298.8 294.0 285.3 281.9
SUPPLEMENTAL DATA
Adjusted long-term debt to total capital (5) 28.3% 28.6% 28.5% 27.8% 27.1%
(1) Net investment gains (losses), net of income taxes, excludes scheduled
periodic settlement payments on derivative instruments not qualifying for
hedge accounting treatment of $17 million, $23 million, $25 million, $44
million and $61 million for the three months ended September 30, 2005,
December 31, 2005, March 31, 2006, June 30, 2006, and September 30, 2006,
respectively. For QFS purposes, these settlements are included in net
investment income.
(2) Net investment gains (losses), net of income taxes, from real estate and
real estate joint ventures includes discontinued operations of $30
million, $100 million, ($3) million, ($2) million and $63 million, for the
three months ended September 30, 2005, December 31, 2005, March 31,
2006, June 30, 2006 and September 30, 2006, respectively.
(3) Adjustments related to net investment gains (losses), net of income taxes,
includes amortization of unearned revenue and deferred policy acquisition
costs, adjustments to the policyholder dividend obligation and amounts
allocable to certain participating contracts.
(4) Presentation of operating earnings available to common shareholders
throughout the QFS differs from other public filings with respect to
discontinued operations and scheduled periodic 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 periodic 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.
(5) Adjusted long-term debt at September 30, 2005, December 31, 2005, March
31, 2006, June 30, 2006 and September 30, 2006, consists of $8,297
million, $8,017 million, $8,028 million, $8,112 million and $8,128 million
of long-term debt, respectively, $2,134 million, $2,134 million, $2,134
million, $2,134 million and $2,134 million of junior subordinated debt
securities underlying common equity units, respectively, and $272 million,
$878 million, $1,084 million, $926 million and $905 million of adjusted
short-term debt, respectively. Non-recourse debt not included in adjusted
long-term debt consists of $1,195 million, $1,871 million, $1,904 million,
$2,625 million and $2,584 million at such dates, respectively. Non-core
borrowings not included in adjusted short-term debt consist of $1,031
million, $536 million, $276 million, $1,326 million and $801 million at
such dates, 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 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(R) LOGO)
METLIFE, INC.
CONSOLIDATED BALANCE SHEETS
As of
-----------------------------------------------------------------------
September 30, December 31, March 31, June 30, September 30,
Unaudited (Dollars in millions) 2005 2005 2006 2006 2006
------------- ------------ --------- -------- -------------
ASSETS
Fixed maturities, at fair value $232,041 $230,875 $240,711 $237,612 $243,136
Equity securities, at fair value 3,058 3,338 3,356 3,202 3,177
Mortgage and consumer loans 36,094 37,190 37,351 38,665 40,141
Policy loans 9,841 9,981 9,987 10,065 10,115
Real estate and real estate joint ventures 4,705 4,665 4,700 4,786 4,931
Other limited partnership interests 4,345 4,276 4,514 4,805 4,686
Short-term investments 4,481 3,306 3,368 4,067 5,839
Other invested assets 7,877 8,078 8,386 9,652 9,194
-------- -------- -------- -------- --------
TOTAL INVESTMENTS 302,442 301,709 312,373 312,854 321,219
Cash and cash equivalents 6,950 4,018 5,144 4,126 5,924
Accrued investment income 3,299 3,036 3,145 3,275 3,380
Premiums and other receivables 14,391 12,186 12,731 13,216 14,494
Deferred policy acquisition costs and value of
business acquired 19,211 19,641 20,245 20,814 20,565
Current income tax recoverable 0 0 0 154 170
Goodwill 4,564 4,797 4,797 4,913 4,916
Other assets 8,017 8,389 8,145 8,171 8,244
Separate account assets 124,044 127,869 132,522 132,782 137,274
-------- -------- -------- -------- --------
TOTAL ASSETS $482,918 $481,645 $499,102 $500,305 $516,186
======== ======== ======== ======== ========
LIABILITIES AND EQUITY
LIABILITIES
-----------
Future policy benefits $121,591 $123,204 $122,748 $123,802 $125,614
Policyholder account balances 127,431 128,312 129,860 130,518 131,898
Other policyholder funds 8,521 8,331 8,620 8,721 9,100
Policyholder dividends payable 978 917 918 961 1,004
Policyholder dividend obligation 1,735 1,607 814 176 1,077
Short-term debt 1,303 1,414 1,360 2,253 1,706
Long-term debt 9,576 9,888 10,782 10,737 10,711
Junior subordinated debt securities
underlying common equity units 2,134 2,134 2,134 2,134 2,134
Shares subject to mandatory redemption 278 278 278 278 278
Current income tax payable 97 69 88 0 0
Deferred income tax payable 1,456 1,706 1,199 485 2,319
Payables for collateral under securities
loaned and other transactions 40,127 34,515 47,059 46,612 48,082
Other liabilities 14,890 12,300 12,153 13,165 13,379
Separate account liabilities 124,044 127,869 132,522 132,782 137,274
-------- -------- -------- -------- --------
TOTAL LIABILITIES 454,161 452,544 470,535 472,624 484,576
-------- -------- -------- -------- --------
EQUITY
------
Preferred stock, at par value 1 1 1 1 1
Common stock, at par value 8 8 8 8 8
Additional paid-in capital 17,273 17,274 17,327 17,372 17,397
Retained earnings 10,582 10,865 11,579 12,196 13,195
Treasury stock (981) (959) (938) (905) (878)
Accumulated other comprehensive income 1,874 1,912 590 (991) 1,887
-------- -------- -------- -------- --------
TOTAL STOCKHOLDERS' EQUITY 28,757 29,101 28,567 27,681 31,610
-------- -------- -------- -------- --------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $482,918 $481,645 $499,102 $500,305 $516,186
======== ======== ======== ======== ========
3
(METLIFE(R) LOGO)
METLIFE, INC.
CONSOLIDATED STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
For the Three Months Ended
-----------------------------------------------------------------------
September 30, December 31, March 31, June 30, September 30,
Unaudited (Dollars in millions) 2005 2005 2006 2006 2006
------------- ------------ --------- -------- -------------
REVENUES
Premiums $ 6,514 $ 6,346 $ 6,428 $ 6,428 $ 6,577
Universal life and investment-type product policy fees 1,112 1,112 1,178 1,194 1,185
Investment income, net 4,112 4,167 4,278 4,277 4,308
Other revenues 348 323 328 335 339
------- ------- ------- ------- -------
12,086 11,948 12,212 12,234 12,409
------- ------- ------- ------- -------
EXPENSES
Policyholder benefits and dividends 7,208 6,897 6,934 6,840 6,930
Interest credited to policyholder account balances 1,156 1,167 1,220 1,269 1,349
Interest credited to bank deposits 30 37 43 48 51
Interest expense 183 185 198 202 221
Other expenses 2,408 2,487 2,297 2,425 2,493
------- ------- ------- ------- -------
10,985 10,773 10,692 10,784 11,044
------- ------- ------- ------- -------
Operating earnings before provision (benefit)
for income taxes 1,101 1,175 1,520 1,450 1,365
Provision for income taxes 290 344 462 435 373
------- ------- ------- ------- -------
Operating earnings 811 831 1,058 1,015 992
Preferred stock dividends 31 32 33 33 34
------- ------- ------- ------- -------
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $ 780(2) $ 799 $ 1,025 $ 982 $ 958
======= ======= ======= ======= =======
NET INCOME RECONCILIATION
- -------------------------
Operating earnings available to common shareholders $ 780 $ 799 $ 1,025 $ 982 $ 958
------- ------- ------- ------- -------
Net investment gains (losses) (23) (234) (624) (817) 254
Minority interest - net investment gains
(losses) (1) 3 (2) 4 0
Net investment gains (losses) tax benefit
(provision) 9 85 220 289 (92)
------- ------- ------- ------- -------
Net investment gains (losses), net of income taxes (15) (146) (406) (524) 162
------- ------- ------- ------- -------
Adjustments related to universal life and
investment-type product policy fees 0 0 (3) (9) 3
Adjustments related to policyholder benefits
and dividends (55) (9) 108 84 (204)
Adjustments related to other expenses 7 30 42 126 14
Adjustments related to tax benefit (provision) 18 (9) (52) (72) 66
------- ------- ------- ------- -------
Adjustments related to net investment gains
(losses), net of income taxes (1) (30) 12 95 129 (121)
------- ------- ------- ------- -------
Discontinued operations, net of income taxes 7 12 0 30 0
------- ------- ------- ------- -------
Net income available to common shareholders 742 677 714 617 999
Preferred stock dividends 31 32 33 33 34
------- ------- ------- ------- -------
Net income $ 773 $ 709 $ 747 $ 650 $ 1,033
======= ======= ======= ======= =======
(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 September 30, 2005 includes a $31 million benefit from a revision of
the estimate of income taxes for 2004.
4
(METLIFE(R) LOGO)
METLIFE, INC.
CONSOLIDATING BALANCE SHEET
AT SEPTEMBER 30, 2006
Corporate,
Other &
Unaudited (Dollars in millions) Consolidated Institutional Individual Auto & Home International Reinsurance Eliminations
------------ ------------- ---------- ----------- ------------- ----------- --------------
ASSETS
Total investments $321,219 $133,244 $126,418 $3,827 $14,715 $13,586 $29,429
Cash and cash equivalents 5,924 (378) 719 (79) (80) 155 5,587
Accrued investment income 3,380 1,188 1,299 64 183 103 543
Premiums and other receivables 14,494 4,364 2,984 956 930 1,184 4,076
Deferred policy acquisition costs
and value of business acquired 20,565 1,355 13,931 191 2,007 3,066 15
Current income tax recoverable 170 5 (86) 34 96 (48) 169
Goodwill 4,916 982 2,978 157 296 96 407
Other assets 8,244 1,801 3,371 377 362 93 2,240
Separate account assets 137,274 46,151 88,366 0 2,741 15 1
-------- -------- -------- ------ ------- ------- -------
Total Assets $516,186 $188,712 $239,980 $5,527 $21,250 $18,250 $42,467
======== ======== ======== ====== ======= ======= =======
LIABILITIES AND EQUITY
LIABILITIES
- -----------
Future policy benefits $125,614 $49,482 $56,527 $3,446 $7,666 $4,996 $3,497
Policyholder account balances 131,898 57,829 57,988 0 5,545 5,954 4,582
Other policyholder funds 9,100 3,009 2,830 70 1,153 1,815 223
Policyholder dividends payable 1,004 0 1,004 0 0 0 0
Policyholder dividend obligation 1,077 0 1,077 0 0 0 0
Short-term debt 1,706 0 2 0 0 0 1,704
Long-term debt 10,711 0 138 0 66 1,553 8,954
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
Deferred income tax payable 2,319 (842) 1,767 22 122 958 292
Payables for collateral under
securities loaned and other
transactions 48,082 20,153 17,543 91 0 0 10,295
Other liabilities 13,379 3,006 2,897 679 996 1,544 4,257
Separate account liabilities 137,274 46,151 88,366 0 2,741 15 1
-------- -------- -------- ------ ------- ------- -------
Total Liabilities 484,576 178,788 230,139 4,308 18,289 16,994 36,058
-------- -------- -------- ------ ------- ------- -------
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) 30,592 9,041 9,509 1,068 2,705 999 7,270
Treasury stock (878) 0 0 0 0 0 (878)
Accumulated other comprehensive
income 1,887 883 332 151 256 257 8
-------- -------- -------- ------ ------- ------- -------
Total Stockholders' Equity 31,610 9,924 9,841 1,219 2,961 1,256 6,409
-------- -------- -------- ------ ------- ------- -------
Total Liabilities and
Stockholders' Equity $516,186 $188,712 $239,980 $5,527 $21,250 $18,250 $42,467
======== ======== ======== ====== ======= ======= =======
(1) Allocated equity includes additional paid-in capital and retained earnings.
5
(METLIFE(R) LOGO)
METLIFE, INC.
CONSOLIDATING STATEMENT OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2006
Corporate,
Other &
Unaudited (Dollars in millions) Consolidated Institutional Individual Auto & Home International Reinsurance Eliminations
------------ ------------- ---------- ----------- ------------- ----------- ------------
REVENUES
Premiums $6,577 $2,992 $1,095 $732 $675 $1,076 $7
Universal life and
investment-type product
policy fees 1,185 201 779 0 205 0 0
Investment income, net 4,308 1,865 1,717 46 290 171 219
Other revenues 339 171 126 3 8 19 12
-------- -------- -------- ------ ------- ------- -------
12,409 5,229 3,717 781 1,178 1,266 238
-------- -------- -------- ------ ------- ------- -------
EXPENSES
Policyholder benefits and
dividends 6,930 3,368 1,692 427 581 849 13
Interest credited to policyholder
account balances 1,349 682 528 0 93 46 0
Capitalization of deferred policy
acquisition costs (954) (93) (340) (124) (146) (251) 0
Amortization of deferred policy
acquisition costs 766 64 287 116 96 202 1
Other expenses 2,953 617 987 217 438 374 320
-------- -------- -------- ------ ------- ------- -------
11,044 4,638 3,154 636 1,062 1,220 334
-------- -------- -------- ------ ------- ------- -------
Operating earnings before
provision (benefit) for income
taxes 1,365 591 563 145 116 46 (96)
Provision (benefit) for income
taxes 373 201 196 38 44 17 (123)
-------- -------- -------- ------ ------- ------- -------
Operating earnings 992 390 367 107 72 29 27
Preferred stock dividends 34 0 0 0 0 0 34
-------- -------- -------- ------ ------- ------- -------
OPERATING EARNINGS AVAILABLE TO
COMMON SHAREHOLDERS $958 $390 $367 $107 $72 $29 ($7)
======== ======== ======== ====== ======= ======= =======
NET INCOME RECONCILIATION
- -------------------------
Operating earnings available to
common shareholders $958 $390 $367 $107 $72 $29 ($7)
-------- -------- -------- ------ ------- ------- -------
Net investment gains (losses) 254 230 79 (1) (17) 3 (40)
Minority interest - net
investment gains (losses) 0 0 0 0 0 0 0
Net investment gains (losses)
tax benefit (provision) (92) (80) (26) 0 4 (2) 12
-------- -------- -------- ------ ------- ------- -------
Net investment gains (losses),
net of income taxes 162 150 53 (1) (13) 1 (28)
-------- -------- -------- ------ ------- ------- -------
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 (204) (85) (46) 0 (73) 0 0
Adjustments related to other
expenses 14 0 15 0 0 (1) 0
Adjustments related to tax
benefit (provision) 66 31 9 0 25 1 0
-------- -------- -------- ------ ------- ------- -------
Adjustments related to net
investment gains (losses),
net of income taxes (1) (121) (54) (19) 0 (48) 0 0
-------- -------- -------- ------ ------- ------- -------
Discontinued operations, net of
income taxes 0 0 0 0 0 0 0
-------- -------- -------- ------ ------- ------- -------
Net income available to common
shareholders 999 486 401 106 11 30 (35)
Preferred stock dividends 34 0 0 0 0 0 34
-------- -------- -------- ------ ------- ------- -------
Net income $1,033 $486 $401 $106 $11 $30 ($1)
======== ======== ======== ====== ======= ======= =======
(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(R) LOGO)
METLIFE, INC.
CONSOLIDATING STATEMENT OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2005
Corporate,
Other &
Unaudited (Dollars in millions) Consolidated Institutional Individual Auto & Home International Reinsurance Eliminations
------------ ------------- ---------- ----------- ------------- ----------- ----------------
REVENUES
Premiums $6,514 $3,066 $1,136 $716 $614 $976 $6
Universal life and
investment-type product
policy fees 1,112 197 746 0 170 (2) 1
Investment income, net 4,112 1,707 1,751 46 238 158 212
Other revenues 348 163 150 8 9 13 5
-------- -------- -------- ------ ------- ------- -------
12,086 5,133 3,783 770 1,031 1,145 224
-------- -------- -------- ------ ------- ------- -------
EXPENSES
Policyholder benefits and
dividends 7,208 3,455 1,769 615 578 779 12
Interest credited to policyholder
account balances 1,156 508 500 0 84 64 0
Capitalization of deferred policy
acquisition costs (935) (74) (384) (123) (137) (217) 0
Amortization of deferred policy
acquisition costs 656 51 310 116 68 111 0
Other expenses 2,900 610 1,094 216 359 366 255
-------- -------- -------- ------ ------- ------- -------
10,985 4,550 3,289 824 952 1,103 267
-------- -------- -------- ------ ------- ------- -------
Operating earnings before
provision (benefit) for income
taxes 1,101 583 494 (54) 79 42 (43)
Provision (benefit) for income
taxes 290 197 164 (28) 13 16 (72)
-------- -------- -------- ------ ------- ------- -------
Operating earnings 811 386 330 (26) 66 26 29
Preferred stock dividends 31 0 0 0 0 0 31
-------- -------- -------- ------ ------- ------- -------
OPERATING EARNINGS AVAILABLE TO
COMMON SHAREHOLDERS $780 (2) $386 $330 ($26) $66 $26 ($2)
======== ======== ======== ====== ======= ======= =======
NET INCOME RECONCILIATION
- -------------------------
Operating earnings available to
common shareholders $780 $386 $330 ($26) $66 $26 ($2)
-------- -------- -------- ------ ------- ------- -------
Net investment gains (losses) (23) (97) (6) (5) 5 7 73
Minority interest - net
investment gains (losses) (1) 0 0 0 0 (1) 0
Net investment gains (losses)
tax benefit (provision) 9 36 0 2 (2) (2) (25)
-------- -------- -------- ------ ------- ------- -------
Net investment gains (losses),
net of income taxes (15) (61) (6) (3) 3 4 48
-------- -------- -------- ------ ------- ------- -------
Adjustments related to
universal life and
investment-type product
policy fees 0 0 0 0 0 0 0
Adjustments related to
policyholder benefits and
dividends (55) 28 (29) 0 (54) 0 0
Adjustments related to other
expenses 7 0 11 0 0 (4) 0
Adjustments related to tax
benefit (provision) 18 (10) 7 0 19 2 0
-------- -------- -------- ------ ------- ------- -------
Adjustments related to net
investment gains (losses), net
of income taxes (1) (30) 18 (11) 0 (35) (2) 0
-------- -------- -------- ------ ------- ------- -------
Discontinued operations, net of
income taxes 7 0 0 0 7 0 0
-------- -------- -------- ------ ------- ------- -------
Net income available to common
shareholders 742 343 313 (29) 41 28 46
Preferred stock dividends 31 0 0 0 0 0 31
-------- -------- -------- ------ ------- ------- -------
Net income $773 $343 $313 ($29) $41 $28 $77
======== ======== ======== ====== ======= ======= =======
(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 September 30, 2005 includes a $31 million benefit from a revision of
the estimate of income taxes for 2004.
7
(METLIFE(R) LOGO)
METLIFE, INC.
CONSOLIDATING STATEMENT OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2006
Corporate, Other
Unaudited (Dollars in millions) Consolidated Institutional Individual Auto & Home International Reinsurance & Eliminations
------------ ------------- ---------- ----------- ------------- ----------- ----------------
REVENUES
Premiums $19,433 $8,817 $3,279 $2,182 $1,982 $3,147 $26
Universal life and
investment-type product
policy fees 3,557 603 2,371 0 583 0 0
Investment income, net 12,863 5,476 5,167 133 763 501 823
Other revenues 1,002 510 386 18 16 47 25
-------- -------- -------- ------ ------- ------- -------
36,855 15,406 11,203 2,333 3,344 3,695 874
-------- -------- -------- ------ ------- ------- -------
EXPENSES
Policyholder benefits and
dividends 20,704 9,926 5,192 1,312 1,708 2,533 33
Interest credited to policyholder
account balances 3,838 1,893 1,522 0 266 157 0
Capitalization of deferred policy
acquisition costs (2,727) (236) (1,125) (348) (442) (576) 0
Amortization of deferred policy
acquisition costs 2,021 142 878 342 256 401 2
Other expenses 8,684 1,774 3,011 627 1,247 1,053 972
-------- -------- -------- ------ ------- ------- -------
32,520 13,499 9,478 1,933 3,035 3,568 1,007
-------- -------- -------- ------ ------- ------- -------
Operating earnings before
provision (benefit) for income
taxes 4,335 1,907 1,725 400 309 127 (133)
Provision (benefit) for income
taxes 1,270 648 597 101 100 45 (221)
-------- -------- -------- ------ ------- ------- -------
Operating earnings 3,065 1,259 1,128 299 209 82 88
Preferred stock dividends 100 0 0 0 0 0 100
-------- -------- -------- ------ ------- ------- -------
OPERATING EARNINGS AVAILABLE TO
COMMON SHAREHOLDERS $2,965 $1,259 $1,128 $299 $209 $82 ($12)
======== ======== ======== ====== ======= ======= =======
NET INCOME RECONCILIATION
- -------------------------
Operating earnings available to
common shareholders $2,965 $1,259 $1,128 $299 $209 $82 ($12)
-------- -------- -------- ------ ------- ------- -------
Net investment gains (losses) (1,187) (549) (493) (4) 16 (4) (153)
Minority interest - net
investment gains (losses) 2 0 0 0 0 2 0
Net investment gains (losses)
tax benefit (provision) 417 197 177 1 (7) 0 49
-------- -------- -------- ------ ------- ------- -------
Net investment gains (losses),
net of income taxes (768) (352) (316) (3) 9 (2) (104)
-------- -------- -------- ------ ------- ------- -------
Adjustments related to
universal life and
investment-type product
policy fees (9) 0 (9) 0 0 0 0
Adjustments related to
policyholder benefits and
dividends (12) 1 (11) 0 (2) 0 0
Adjustments related to other
expenses 182 0 178 0 0 4 0
Adjustments related to tax
benefit (provision) (58) 0 (57) 0 0 (1) 0
-------- -------- -------- ------ ------- ------- -------
Adjustments related to net
investment gains (losses), net
of income taxes (1) 103 1 101 0 (2) 3 0
-------- -------- -------- ------ ------- ------- -------
Discontinued operations, net of
income taxes 30 0 0 0 0 0 30
-------- -------- -------- ------ ------- ------- -------
Net income available to common
shareholders 2,330 908 913 296 216 83 (86)
Preferred stock dividends 100 0 0 0 0 0 100
-------- -------- -------- ------ ------- ------- -------
Net income $2,430 $908 $913 $296 $216 $83 $14
======== ======== ======== ====== ======= ======= =======
(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.
8
(METLIFE(R) LOGO)
METLIFE, INC.
CONSOLIDATING STATEMENT OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2005
Corporate,
Other &
Unaudited (Dollars in millions) Consolidated Institutional Individual Auto & Home International Reinsurance Eliminations
------------ ------------- ---------- ----------- ------------- ----------- --------------
REVENUES
Premiums $ 18,514 $ 8,744 $ 3,221 $ 2,182 $ 1,550 $ 2,807 $ 10
Universal life and
investment-type
product policy fees 2,716 575 1,726 0 414 0 1
Investment income, net 10,899 4,319 4,860 135 582 445 558
Other revenues 948 487 367 25 11 45 13
-------- -------- -------- -------- -------- -------- --------
33,077 14,125 10,174 2,342 2,557 3,297 582
-------- -------- -------- -------- -------- -------- --------
EXPENSES
Policyholder benefits and
dividends 20,208 9,760 5,136 1,541 1,456 2,346 (31)
Interest credited to policyholder
account balances 2,771 1,135 1,287 0 186 163 0
Capitalization of deferred policy
acquisition costs (2,560) (206) (917) (345) (400) (692) 0
Amortization of deferred policy
acquisition costs 1,740 125 661 342 180 428 4
Other expenses 7,382 1,715 2,598 615 877 969 608
-------- -------- -------- -------- -------- -------- --------
29,541 12,529 8,765 2,153 2,299 3,214 581
-------- -------- -------- -------- -------- -------- --------
Operating earnings before
provision (benefit) for
income taxes 3,536 1,596 1,409 189 258 83 1
Provision (benefit) for
income taxes 1,033 540 469 38 73 28 (115)
-------- -------- -------- -------- -------- -------- --------
Operating earnings 2,503 1,056 940 151 185 55 116
Preferred stock dividends 31 0 0 0 0 0 31
-------- -------- -------- -------- -------- -------- --------
OPERATING EARNINGS AVAILABLE TO
COMMON SHAREHOLDERS $ 2,472 (2) $ 1,056 $ 940 $ 151 $ 185 $ 55 $ 85
======== ======== ======== ======== ======== ======== ========
NET INCOME RECONCILIATION
- -------------------------
Operating earnings available to
common shareholders $ 2,472 $ 1,056 $ 940 $ 151 $ 185 $ 55 $ 85
-------- -------- -------- -------- -------- -------- --------
Net investment gains (losses) 2,181 323 554 (9) 12 28 1,273
Minority interest - net
investment gains (losses) (12) 0 (4) 0 0 (8) 0
Net investment gains (losses)
tax benefit (provision) (766) (114) (197) 3 (4) (4) (450)
-------- -------- -------- -------- -------- -------- --------
Net investment gains (losses),
net of income taxes 1,403 209 353 (6) 8 16 823
-------- -------- -------- -------- -------- -------- --------
Adjustments related to
universal life and
investment-type product
policy fees 0 0 0 0 0 0 0
Adjustments related to
policyholder benefits
and dividends (71) 26 (41) 0 (56) 0 0
Adjustments related to other
expenses (17) 0 (8) 0 0 (9) 0
Adjustments related to tax
benefit (provision) 31 (9) 18 0 20 2 0
-------- -------- -------- -------- -------- -------- --------
Adjustments related to net
investment gains (losses),
net of income taxes (1) (57) 17 (31) 0 (36) (7) 0
-------- -------- -------- -------- -------- -------- --------
Discontinued operations, net of
income taxes 156 0 0 0 5 0 151
-------- -------- -------- -------- -------- -------- --------
Net income available to common
shareholders 3,974 1,282 1,262 145 162 64 1,059
Preferred stock dividends 31 0 0 0 0 0 31
-------- -------- -------- -------- -------- -------- --------
Net income $ 4,005 $ 1,282 $ 1,262 $ 145 $ 162 $ 64 $ 1,090
======== ======== ======== ======== ======== ======== ========
(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 September 30, 2005 includes a $31 million benefit from a revision of
the estimate of income taxes for 2004.
9
(METLIFE(R) LOGO)
SUMMARY OF SEGMENT OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS (1)
For the Three Months Ended
---------------------------------------------------------------
September 30, December 31, March 31, June 30, September 30,
Unaudited (Dollars in millions) 2005 2005 2006 2006 2006
------------- ------------ --------- -------- -------------
INSTITUTIONAL OPERATIONS $386 $389 $ 416 $453 $390
INDIVIDUAL OPERATIONS 330 312 408 353 367
AUTO & HOME OPERATIONS (26) 81 93 99 107
INTERNATIONAL OPERATIONS 66 48 75 62 72
REINSURANCE OPERATIONS 26 31 24 29 29
CORPORATE, OTHER & ELIMINATIONS (2) (62) 9 (14) (7)
------ ---- ------ ---- ----
CONSOLIDATED $780(2) $799 $1,025 $982 $958
====== ==== ====== ==== ====
(1) A reconciliation of operating earnings available to common shareholders to
net income for each segment appears in this QFS as follows: (i)
Institutional Operations, page 11; (ii) Individual Operations, page 19;
(iii) Auto & Home Operations, page 29; (iv) International Operations, page
33; (v) Reinsurance Operations, page 34; and Corporate, Other &
Eliminations, page 36. 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 September 30, 2005 includes a $31 million benefit from a revision of
the estimate of income taxes for 2004.
10
(METLIFE(R) LOGO)
INSTITUTIONAL OPERATIONS
STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS - TOTAL
UNAUDITED (DOLLARS IN MILLIONS)
For the Year-to-Date
For the Three Months Ended Period Ended
--------------------------------------------------------------- ----------------------------
September 30, December 31, March 31, June 30, September 30, September 30, September 30,
Institutional Operations 2005 2005 2006 2006 2006 2005 2006
------------- ------------ --------- -------- ------------- ------------- -------------
REVENUES
Premiums $3,066 $2,643 $2,989 $2,836 $2,992 $ 8,744 $ 8,817
Universal life and investment-type
product policy fees 197 197 201 201 201 575 603
Investment income, net 1,707 1,732 1,787 1,824 1,865 4,319 5,476
Other revenues 163 166 170 169 171 487 510
------ ------ ------ ------ ------ ------- -------
5,133 4,738 5,147 5,030 5,229 14,125 15,406
------ ------ ------ ------ ------ ------- -------
EXPENSES
Policyholder benefits and dividends 3,455 3,025 3,389 3,169 3,368 9,760 9,926
Interest credited to policyholder
account balances 508 530 594 617 682 1,135 1,893
Other expenses 587 595 533 559 588 1,634 1,680
------ ------ ------ ------ ------ ------- -------
4,550 4,150 4,516 4,345 4,638 12,529 13,499
------ ------ ------ ------ ------ ------- -------
Operating earnings before provision
(benefit) for income taxes 583 588 631 685 591 1,596 1,907
Provision (benefit) for income taxes 197 199 215 232 201 540 648
------ ------ ------ ------ ------ ------- -------
OPERATING EARNINGS AVAILABLE TO
COMMON SHAREHOLDERS $ 386 $ 389 $ 416 $ 453 $ 390 $ 1,056 $ 1,259
====== ====== ====== ====== ====== ======= =======
NET INCOME RECONCILIATION
- -------------------------
Operating earnings available to
common shareholders $ 386 $ 389 $ 416 $ 453 $ 390 $ 1,056 $ 1,259
------ ------ ------ ------ ------ ------- -------
Net investment gains (losses) (97) (156) (339) (440) 230 323 (549)
Minority interest - net investment
gains (losses) 0 0 0 0 0 0 0
Net investment gains (losses) tax
benefit (provision) 36 59 120 157 (80) (114) 197
------ ------ ------ ------ ------ ------- -------
Net investment gains (losses), net of
income taxes (61) (97) (219) (283) 150 209 (352)
------ ------ ------ ------ ------ ------- -------
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 28 (18) 25 61 (85) 26 1
Adjustments related to other
expenses 0 0 0 0 0 0 0
Adjustments related to tax benefit
(provision) (10) 6 (9) (22) 31 (9) 0
------ ------ ------ ------ ------ ------- -------
Adjustments related to net investment
gains (losses), net of income
taxes (1) 18 (12) 16 39 (54) 17 1
------ ------ ------ ------ ------ ------- -------
Discontinued operations, net of
income taxes 0 0 0 0 0 0 0
------ ------ ------ ------ ------ ------- -------
Net income available to common
shareholders 343 280 213 209 486 1,282 908
Preferred stock dividends 0 0 0 0 0 0 0
------ ------ ------ ------ ------ ------- -------
Net income $ 343 $ 280 $ 213 $ 209 $ 486 $ 1,282 $ 908
====== ====== ====== ====== ====== ======= =======
(1) Adjustments related to net investment gains (losses), net of income taxes,
includes amortization of deferred policy acquisition costs and amounts
allocable to certain participating contracts.
11
(METLIFE(R) LOGO)
<Table>
INSTITUTIONAL OPERATIONS
STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS - PRODUCT LEVEL
UNAUDITED (DOLLARS IN MILLIONS)
</Table>
For the Year-to-Date
For the Three Months Ended Period Ended
--------------------------------------------------------------- ----------------------------
September 30, December 31, March 31, June 30, September 30, September 30, September 30,
Group Life 2005 2005 2006 2006 2006 2005 2006
------------- ------------ --------- -------- ------------- ------------- -------------
REVENUES
Premiums $1,485 $1,359 $1,551 $1,474 $1,434 $4,284 $4,459
Universal life and investment-type
product policy fees 192 194 195 197 196 559 588
Investment income, net 296 296 303 309 321 848 933
Other revenues 11 10 15 13 14 38 42
------ ------ ------ ------ ------ ------- ------
1,984 1,859 2,064 1,993 1,965 5,729 6,022
------ ------ ------ ------ ------ ------- ------
EXPENSES
Policyholder benefits and dividends 1,542 1,398 1,636 1,484 1,505 4,505 4,625
Interest credited to policyholder
account balances 119 125 134 143 148 323 425
Other expenses 168 157 155 157 159 473 471
------ ------ ------ ------ ------ ------- ------
1,829 1,680 1,925 1,784 1,812 5,301 5,521
------ ------ ------ ------ ------ ------- ------
Operating earnings before provision
(benefit) for income taxes 155 179 139 209 153 428 501
Provision (benefit) for income taxes 53 61 48 70 52 146 170
------ ------ ------ ------ ------ ------- ------
OPERATING EARNINGS AVAILABLE TO
COMMON SHAREHOLDERS $ 102 $ 118 $ 91 $ 139 $ 101 $ 282 $ 331
====== ====== ====== ====== ====== ====== ======
Net investment gains (losses), net of
income taxes 7 (38) (2) (47) (10) (3) (59)
Adjustments related to net investment
gains (losses), net of income
taxes 4 1 1 3 0 4 4
Discontinued operations, net of
income taxes 0 0 0 0 0 0 0
------ ------ ------ ------ ------ ------- ------
Net income available to common
shareholders 113 81 90 95 91 283 276
Preferred stock dividends 0 0 0 0 0 0 0
------ ------ ------ ------ ------ ------- ------
Net income $ 113 $ 81 $ 90 $ 95 $ 91 $ 283 $ 276
====== ====== ====== ====== ====== ====== ======
12
(METLIFE(R) LOGO)
INSTITUTIONAL OPERATIONS
STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS - PRODUCT LEVEL
UNAUDITED (DOLLARS IN MILLIONS)
For the Year-to-Date
For the Three Months Ended Period Ended
--------------------------------------------------------------- ----------------------------
September 30, December 31, March 31, June 30, September 30, September 30, September 30,
Retirement & Savings 2005 2005 2006 2006 2006 2005 2006
------------- ------------ --------- -------- ------------- ------------- -------------
REVENUES
Premiums $ 557 $ 234 $ 334 $ 254 $ 436 $1,437 $1,024
Universal life and investment-type
product policy fees 5 3 6 4 5 16 15
Investment income, net 1,255 1,273 1,325 1,361 1,386 3,027 4,072
Other revenues 63 67 62 64 62 181 188
------ ------ ------ ------ ------ ------- ------
1,880 1,577 1,727 1,683 1,889 4,661 5,299
------ ------ ------ ------ ------ ------- ------
EXPENSES
Policyholder benefits and dividends 1,041 743 774 755 940 2,656 2,469
Interest credited to policyholder
account balances 389 405 460 474 534 812 1,468
Other expenses 126 113 98 119 111 306 328
------ ------ ------ ------ ------ ------- ------
1,556 1,261 1,332 1,348 1,585 3,774 4,265
------ ------ ------ ------ ------ ------- ------
Operating earnings before provision
(benefit) for income taxes 324 316 395 335 304 887 1,034
Provision (benefit) for income taxes 108 106 134 114 103 297 351
------ ------ ------ ------ ------ ------- ------
OPERATING EARNINGS AVAILABLE TO
COMMON SHAREHOLDERS $ 216 $ 210 $ 261 $ 221 $ 201 $ 590 $ 683
====== ====== ====== ====== ====== ====== ======
Net investment gains (losses), net of
income taxes (45) (61) (168) (187) 105 198 (250)
Adjustments related to net investment
gains (losses), net of income
taxes 7 (2) (7) 10 (16) 8 (13)
Discontinued operations, net of
income taxes 0 0 0 0 0 0 0
------ ------ ------ ------ ------ ------- ------
Net income available to common
shareholders 178 147 86 44 290 796 420
Preferred stock dividends 0 0 0 0 0 0 0
------ ------ ------ ------ ------ ------- ------
Net income $ 178 $ 147 $ 86 $ 44 $ 290 $ 796 $ 420
====== ====== ====== ====== ====== ====== ======
13
(METLIFE(R) LOGO)
INSTITUTIONAL OPERATIONS
STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS - PRODUCT LEVEL
UNAUDITED (DOLLARS IN MILLIONS)
For the Year-to-Date
For the Three Months Ended Period Ended
--------------------------------------------------------------- ----------------------------
September 30, December 31, March 31, June 30, September 30, September 30, September 30,
Non-Medical Health & Other 2005 2005 2006 2006 2006 2005 2006
------------- ------------ --------- -------- ------------- ------------- -------------
REVENUES
Premiums $1,024 $1,050 $1,104 $1,108 $1,122 $3,023 $3,334
Universal life and investment-type
product policy fees 0 0 0 0 0 0 0
Investment income, net 156 163 159 154 158 444 471
Other revenues 89 89 93 92 95 268 280
------ ------ ------ ------ ------ ------- ------
1,269 1,302 1,356 1,354 1,375 3,735 4,085
------ ------ ------ ------ ------ ------- ------
EXPENSES
Policyholder benefits and dividends 872 884 979 930 923 2,599 2,832
Interest credited to policyholder
account balances 0 0 0 0 0 0 0
Other expenses 293 325 280 283 318 855 881
------ ------ ------ ------ ------ ------- ------
1,165 1,209 1,259 1,213 1,241 3,454 3,713
------ ------ ------ ------ ------ ------- ------
Operating earnings before provision
(benefit) for income taxes 104 93 97 141 134 281 372
Provision (benefit) for income taxes 36 32 33 48 46 97 127
------ ------ ------ ------ ------ ------- ------
OPERATING EARNINGS AVAILABLE TO
COMMON SHAREHOLDERS $ 68 $ 61 $ 64 $ 93 $ 88 $ 184 $ 245
====== ====== ====== ====== ====== ====== ======
Net investment gains (losses), net of
income taxes (23) 2 (49) (49) 55 14 (43)
Adjustments related to net investment
gains (losses), net of income
taxes 7 (11) 22 26 (38) 5 10
Discontinued operations, net of
income taxes 0 0 0 0 0 0 0
------ ------ ------ ------ ------ ------- ------
Net income available to common
shareholders 52 52 37 70 105 203 212
Preferred stock dividends 0 0 0 0 0 0 0
------ ------ ------ ------ ------ ------- ------
Net income $ 52 $ 52 $ 37 $ 70 $ 105 $ 203 $ 212
====== ====== ====== ====== ====== ====== ======
14
(METLIFE(R) LOGO)
INSTITUTIONAL OPERATIONS
PREMIUMS, FEES AND OTHER REVENUES BY PRODUCT
AND ADDITIONAL STATISTICAL INFORMATION
For the Three Months Ended
-------------------------------------------------------------------
September 30, December 31, March 31, June 30, September 30,
Unaudited (Dollars in millions) 2005 2005 2006 2006 2006
------------- ------------ --------- -------- -------------
PREMIUMS, FEES AND OTHER REVENUES BY PRODUCT
Group Life $1,688 $1,563 $1,761 $1,684 $1,644
Retirement & Savings 625 304 402 322 503
Non-Medical Health & Other 1,113 1,139 1,197 1,200 1,217
------ ------ ------ ------ ------
Total Premiums, Fees and Other Revenues $3,426 $3,006 $3,360 $3,206 $3,364
====== ====== ====== ====== ======
Group Disability (Included in Non-Medical
Health & Other) $ 325 $ 335 $ 347 $ 342 $ 352
ADDITIONAL STATISTICAL INFORMATION
INCURRED LOSS RATIO (MORTALITY EXPERIENCE):
Term Life 91.5% 89.3% 94.2% 88.1% 91.6%
INCURRED LOSS RATIO (MORBIDITY EXPERIENCE):
Group Disability 95.0% 91.1% 90.7% 90.2% 83.0%
NUMBER OF SALES REPRESENTATIVES 787 761 745 700 684
15
(METLIFE(R) 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
---------------------------------------------------------------------
September 30, December 31, March 31, June 30, September 30,
Group Life 2005 2005 2006 2006 2006
------------- ----------- --------- -------- -------------
Balance, beginning of period $15,449 $16,290 $16,400 $16,951 $16,686
Premiums and deposits 2,921 2,681 3,372 2,824 2,787
Interest on reserves 159 166 176 187 193
Surrenders and withdrawals (1,263) (1,180) (1,196) (1,581) (1,392)
Benefits and reserves (1,295) (1,397) (1,623) (1,489) (1,514)
Other 319(1) (160) (178) (206) (166)
------- ------- ------- ------- -------
Balance, end of period $16,290 $16,400 $16,951 $16,686 $16,594
======= ======= ======= ======= =======
For the Three Months Ended
---------------------------------------------------------------------
September 30, December 31, March 31, June 30, September 30,
Retirement & Savings 2005 2005 2006 2006 2006
------------- ----------- --------- -------- -------------
Balance, beginning of period $51,020 $77,933 $78,405 $78,252 $79,406
Premiums and deposits 2,751 3,282 3,819 3,028 3,389
Interest on reserves 933 937 986 1,022 1,054
Surrenders and withdrawals (2,604) (2,378) (2,851) (2,301) (2,031)
Benefits and reserves (671) (655) (679) (673) (663)
Other 26,504(1) (714) (1,428) 78 285
------- ------- ------- ------- -------
Balance, end of period $77,933 $78,405 $78,252 $79,406 $81,440
======= ======= ======= ======= =======
For the Three Months Ended
---------------------------------------------------------------------
September 30, December 31, March 31, June 30, September 30,
Non-Medical Health & Other 2005 2005 2006 2006 2006
------------- ----------- --------- -------- -------------
Balance, beginning of period $7,968 $8,321 $8,556 $8,849 $9,014
Premiums and deposits 996 1,023 1,066 1,059 1,075
Interest on reserves 74 76 78 81 84
Surrenders and withdrawals 21 20 20 28 21
Benefits and reserves (917) (915) (991) (950) (931)
Other 179(1) 31 120 (53) 14
------ ------ ------ ------ ------
Balance, end of period $8,321 $8,556 $8,849 $9,014 $9,277
====== ====== ====== ====== ======
SEPARATE ACCOUNT LIABILITIES
For the Three Months Ended
---------------------------------------------------------------------
September 30, December 31, March 31, June 30, September 30,
Group Life 2005 2005 2006 2006 2006
------------- ----------- --------- -------- -------------
Balance, beginning of period $8,050 $ 9,931 $10,539 $10,949 $11,294
Premiums and deposits 232 706 189 603 552
Investment performance 219 29 329 (161) 328
Surrenders and withdrawals (108) (121) (101) (86) (139)
Policy charges (7) (7) (7) (7) (7)
Other 1,545(1) 1 0 (4) 580
------ ------- ------- ------- -------
Balance, end of period $9,931 $10,539 $10,949 $11,294 $12,608
====== ======= ======= ======= =======
For the Three Months Ended
---------------------------------------------------------------------
September 30, December 31, March 31, June 30, September 30,
Retirement & Savings 2005 2005 2006 2006 2006
------------- ----------- --------- -------- -------------
Balance, beginning of period $32,105 $34,508 $34,374 $33,653 $33,657
Premiums and deposits 1,108 1,204 1,345 1,127 1,256
Investment performance 538 527 550 279 1,218
Surrenders and withdrawals (2,029) (1,775) (2,592) (1,377) (2,978)
Policy charges (23) (30) (25) (26) (25)
Other 2,809(1) (60) 1 1 (7)
------- ------- ------- ------- -------
Balance, end of period $34,508 $34,374 $33,653 $33,657 $33,121
======= ======= ======= ======= =======
For the Three Months Ended
---------------------------------------------------------------------
September 30, December 31, March 31, June 30, September 30,
Non-Medical Health & Other 2005 2005 2006 2006 2006
------------- ----------- --------- -------- -------------
Balance, beginning of period $ 276 $ 298 $ 326 $ 360 $ 377
Premiums and deposits 81 78 90 91 84
Investment performance 66 (34) 90 (48) 33
Surrenders and withdrawals (21) (19) (20) (28) (21)
Policy charges (18) (15) (14) (20) (25)
Other (86) 18 (112) 22 (26)
------- ------- ------- ------- -------
Balance, end of period $ 298 $ 326 $ 360 $ 377 $ 422
======= ======= ======= ======= =======
(1) Includes the beginning balances of Travelers of $771 million, $27,661
million and $347 million for Group Life, Retirement & Savings and
Non-Medical Health & Other, respectively, in Future Policy Benefits and
Policyholder Account Balances and $1,545 million and $2,428 million for
Group Life and Retirement & Savings, respectively, in Separate Account
Liabilities.
16
(METLIFE(R) LOGO)
INSTITUTIONAL OPERATIONS
OTHER EXPENSES BY MAJOR CATEGORY
For the Three Months Ended
---------------------------------------------------------------
September 30, December 31, March 31, June 30, September 30,
Unaudited (Dollars in millions) 2005 2005 2006 2006 2006
------------- ------------ --------- -------- -------------
OTHER EXPENSES BY MAJOR CATEGORY
Direct and allocated expenses $417 $431 $361 $413 $397
Pension and other post-retirement benefit
costs 19 19 21 20 21
Premium taxes and other taxes, licenses
and fees 46 53 50 38 50
---- ---- ---- ---- ----
Sub-total Insurance Expenses 482 503 432 471 468
Commissions and other expenses 105 92 101 88 120
---- ---- ---- ---- ----
Total Other Expenses $587 $595 $533 $559 $588
==== ==== ==== ==== ====
17
(METLIFE(R) LOGO)
INSTITUTIONAL OPERATIONS
SPREADS BY PRODUCT
UNAUDITED
For the Three Months Ended
---------------------------------------------------------------
September 30, December 31, March 31, June 30, September 30,
Group Life 2005 2005 2006 2006 2006
------------- ------------ --------- -------- -------------
ANNUALIZED GENERAL ACCOUNT
SPREADS BY SEGMENT (%)
Investment income yield 5.89% 5.98% 6.07% 6.11% 6.52%
Average crediting rate 3.92% 4.07% 4.40% 4.56% 4.73%
---- ---- ---- ---- ----
Spread 1.97% 1.91% 1.67% 1.55% 1.79%
==== ==== ==== ==== ====
For the Three Months Ended
---------------------------------------------------------------
September 30, December 31, March 31, June 30, September 30,
Retirement & Savings 2005 2005 2006 2006 2006
------------- ------------ --------- -------- -------------
ANNUALIZED GENERAL ACCOUNT
SPREADS BY SEGMENT (%)
Investment income yield 6.57% 6.59% 6.74% 6.83% 6.79%
Average crediting rate 4.97% 5.11% 5.31% 5.33% 5.54%
---- ---- ---- ---- ----
Spread 1.60% 1.48% 1.43% 1.50% 1.25%
==== ==== ==== ==== ====
For the Three Months Ended
---------------------------------------------------------------
September 30, December 31, March 31, June 30, September 30,
Non-Medical Health & Other 2005 2005 2006 2006 2006
------------- ------------ --------- -------- -------------
ANNUALIZED GENERAL ACCOUNT
SPREADS BY SEGMENT (%)
Investment income yield 8.19% 8.25% 7.71% 7.22% 7.09%
Average crediting rate 4.93% 4.95% 4.99% 5.00% 5.01%
---- ---- ---- ---- ----
Spread 3.26% 3.30% 2.72% 2.22% 2.08%
==== ==== ==== ==== ====
18
(METLIFE(R) LOGO)
INDIVIDUAL OPERATIONS
STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS - TOTAL
UNAUDITED (DOLLARS IN MILLIONS)
For the
Year-to-Date
For the Three Months Ended Period Ended
----------------------------------------------------------- ---------------------------
September 30, December 31, March 31, June 30, September 30, September 30, September 30,
Individual Operations 2005 2005 2006 2006 2006 2005 2006
------------- ------------ --------- -------- ------------- ------------- -------------
REVENUES
Premiums $1,136 $1,264 $1,082 $1,102 $1,095 $ 3,221 $ 3,279
Universal life and investment-type
product policy fees 746 750 793 799 779 1,726 2,371
Investment income, net 1,751 1,711 1,741 1,709 1,717 4,860 5,167
Other revenues 150 110 125 135 126 367 386
------ ------ ------ ------ ------ ------- -------
3,783 3,835 3,741 3,745 3,717 10,174 11,203
------ ------ ------ ------ ------ ------- -------
EXPENSES
Policyholder benefits and dividends 1,769 1,940 1,745 1,755 1,692 5,136 5,192
Interest credited to policyholder
account balances 500 488 476 518 528 1,287 1,522
Capitalization of deferred policy
acquisition costs (384) (409) (370) (415) (340) (917) (1,125)
Amortization of deferred policy
acquisition costs 310 303 302 289 287 661 878
Other expenses 1,094 1,047 964 1,060 987 2,598 3,011
------ ------ ------ ------ ------ ------- -------
3,289 3,369 3,117 3,207 3,154 8,765 9,478
------ ------ ------ ------ ------ ------- -------
Operating earnings before provision
(benefit) for income taxes 494 466 624 538 563 1,409 1,725
Provision (benefit) for income taxes 164 154 216 185 196 469 597
------ ------ ------ ------ ------ ------- -------
OPERATING EARNINGS AVAILABLE TO
COMMON SHAREHOLDERS $ 330 $ 312 $ 408 $ 353 $ 367 $ 940 $ 1,128
====== ====== ====== ====== ====== ======= =======
NET INCOME RECONCILIATION
- -------------------------
Operating earnings available to
common shareholders $ 330 $ 312 $ 408 $ 353 $ 367 $ 940 $ 1,128
------ ------ ------ ------ ------ ------- -------
Net investment gains (losses) (6) (180) (265) (307) 79 554 (493)
Minority interest - net
investment gains (losses) 0 0 0 0 0 (4) 0
Net investment gains (losses)
tax benefit (provision) 0 65 95 108 (26) (197) 177
------ ------ ------ ------ ------ ------- -------
Net investment gains (losses), net
of income taxes (6) (115) (170) (199) 53 353 (316)
------ ------ ------ ------ ------ ------- -------
Adjustments related to universal
life and investment-type
product policy fees 0 0 (3) (9) 3 0 (9)
Adjustments related to
policyholder benefits and
dividends (29) 30 61 (26) (46) (41) (11)
Adjustments related to other
expenses 11 31 45 118 15 (8) 178
Adjustments related to tax
benefit (provision) 7 (22) (37) (29) 9 18 (57)
------ ------ ------ ------ ------ ------- -------
Adjustments related to net
investment gains (losses), net of
income taxes (1) (11) 39 66 54 (19) (31) 101
------ ------ ------ ------ ------ ------- -------
Discontinued operations, net of
income taxes 0 0 0 0 0 0 0
------ ------ ------ ------ ------ ------- -------
Net income available to common
shareholders 313 236 304 208 401 1,262 913
Preferred stock dividends 0 0 0 0 0 0 0
------ ------ ------ ------ ------ ------- -------
Net income $ 313 $ 236 $ 304 $ 208 $ 401 $ 1,262 $ 913
====== ====== ====== ====== ====== ======= =======
(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.
19
(METLIFE(R) LOGO)
INDIVIDUAL OPERATIONS
STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS - PRODUCT LEVEL
UNAUDITED (DOLLARS IN MILLIONS)
For the
Year-to-Date
For the Three Months Ended Period Ended
----------------------------------------------------------- ---------------------------
September 30, December 31, March 31, June 30, September 30, September 30, September 30,
Traditional Life 2005 2005 2006 2006 2006 2005 2006
------------- ------------ --------- -------- ------------- ------------- -------------
REVENUES
Premiums $1,016 $1,134 $ 976 $1,011 $1,009 $2,965 $2,996
Universal life and investment-type
product policy fees 0 0 0 0 0 0 0
Investment income, net 838 815 821 804 816 2,512 2,441
Other revenues 1 1 0 (1) 1 3 0
------ ------ ------ ------ ------ ------ ------
1,855 1,950 1,797 1,814 1,826 5,480 5,437
------ ------ ------ ------ ------ ------ ------
EXPENSES
Policyholder benefits and dividends 1,467 1,648 1,444 1,463 1,467 4,435 4,374
Interest credited to policyholder
account balances 0 0 0 0 0 0 0
Capitalization of deferred policy
acquisition costs (47) (53) (56) (52) (65) (150) (173)
Amortization of deferred policy
acquisition costs 58 46 53 45 44 158 142
Other expenses 228 222 207 213 271 618 691
------ ------ ------ ------ ------ ------ ------
1,706 1,863 1,648 1,669 1,717 5,061 5,034
------ ------ ------ ------ ------ ------ ------
Operating earnings before provision
(benefit) for income taxes 149 87 149 145 109 419 403
Provision (benefit) for income taxes 50 30 51 48 36 142 135
------ ------ ------ ------ ------ ------ ------
OPERATING EARNINGS AVAILABLE TO
COMMON SHAREHOLDERS $ 99 $ 57 $ 98 $ 97 $ 73 $ 277 $ 268
====== ====== ====== ====== ====== ====== ======
Net investment gains (losses), net
of income taxes 31 15 (44) (48) (14) 300 (106)
Adjustments related to net
investment gains (losses), net of
income taxes (22) 20 40 19 (4) (29) 55
Discontinued operations, net of
income taxes 0 0 0 0 0 0 0
------ ------ ------ ------ ------ ------ ------
Net income available to common
shareholders 108 92 94 68 55 548 217
Preferred stock dividends 0 0 0 0 0 0 0
------ ------ ------ ------ ------ ------ ------
Net income $ 108 $ 92 $ 94 $ 68 $ 55 $ 548 $ 217
====== ====== ====== ====== ====== ====== ======
20
(METLIFE(R) LOGO)
INDIVIDUAL OPERATIONS
STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS - PRODUCT LEVEL
UNAUDITED (DOLLARS IN MILLIONS)
For the
Year-to-Date
For the Three Months Ended Period Ended
----------------------------------------------------------- ---------------------------
September 30, December 31, March 31, June 30, September 30, September 30, September 30,
Variable & Universal Life 2005 2005 2006 2006 2006 2005 2006
------------- ------------ --------- -------- ------------- ------------- -------------
REVENUES
Premiums $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 $ 0
Universal life and investment-type
product policy fees 384 382 395 384 370 926 1,149
Investment income, net 196 190 203 197 199 499 599
Other revenues 0 (1) (3) 0 1 (3) (2)
---- ---- ---- ---- ---- ------ ------
580 571 595 581 570 1,422 1,746
---- ---- ---- ---- ---- ------ ------
EXPENSES
Policyholder benefits and dividends 120 120 123 162 82 310 367
Interest credited to policyholder
account balances 145 146 142 144 151 376 437
Capitalization of deferred policy
acquisition costs (133) (136) (102) (110) (89) (270) (301)
Amortization of deferred policy
acquisition costs 105 113 110 104 97 218 311
Other expenses 266 275 208 214 184 574 606
---- ---- ---- ---- ---- ------ ------
503 518 481 514 425 1,208 1,420
---- ---- ---- ---- ---- ------ ------
Operating earnings before provision
(benefit) for income taxes 77 53 114 67 145 214 326
Provision (benefit) for income taxes 26 18 40 24 51 73 115
---- ---- ---- ---- ---- ------ ------
OPERATING EARNINGS AVAILABLE TO
COMMON SHAREHOLDERS $ 51 $ 35 $ 74 $ 43 $ 94 $ 141 $ 211
==== ==== ==== ==== ==== ====== ======
Net investment gains (losses), net
of income taxes (12) (22) (25) (36) 14 (11) (47)
Adjustments related to net
investment gains (losses), net of
income taxes 7 10 9 6 (3) 3 12
Discontinued operations, net of
income taxes 0 0 0 0 0 0 0
---- ---- ---- ---- ---- ------ ------
Net income available to common
shareholders 46 23 58 13 105 133 176
Preferred stock dividends 0 0 0 0 0 0 0
---- ---- ---- ---- ---- ------ ------
Net income $ 46 $ 23 $ 58 $ 13 $105 $ 133 $ 176
==== ==== ==== ==== ==== ====== ======
21
(METLIFE(R) LOGO)
INDIVIDUAL OPERATIONS
STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS - PRODUCT LEVEL
UNAUDITED (DOLLARS IN MILLIONS)
For the
Year-to-Date
For the Three Months Ended Period Ended
----------------------------------------------------------- ---------------------------
September 30, December 31, March 31, June 30, September 30, September 30, September 30,
Annuities 2005 2005 2006 2006 2006 2005 2006
------------- ------------ --------- -------- ------------- ------------- -------------
REVENUES
Premiums $ 118 $ 101 $ 98 $ 85 $ 78 $ 254 $ 261
Universal life and investment-type
product policy fees 318 334 356 367 365 701 1,088
Investment income, net 681 665 677 667 658 1,743 2,002
Other revenues 26 29 29 36 31 50 96
------ ------ ------ ------ ------ ------ ------
1,143 1,129 1,160 1,155 1,132 2,748 3,447
------ ------ ------ ------ ------ ------ ------
EXPENSES
Policyholder benefits and dividends 178 152 173 125 138 387 436
Interest credited to policyholder
account balances 338 322 314 351 352 859 1,017
Capitalization of deferred policy
acquisition costs (204) (220) (212) (253) (186) (496) (651)
Amortization of deferred policy
acquisition costs 147 144 139 140 146 285 425
Other expenses 427 422 400 477 387 978 1,264
------ ------ ------ ------ ------ ------ ------
886 820 814 840 837 2,013 2,491
------ ------ ------ ------ ------ ------ ------
Operating earnings before provision
(benefit) for income taxes 257 309 346 315 295 735 956
Provision (benefit) for income taxes 84 100 120 109 103 240 332
------ ------ ------ ------ ------ ------ ------
OPERATING EARNINGS AVAILABLE TO
COMMON SHAREHOLDERS $ 173 $ 209 $ 226 $ 206 $ 192 $ 495 $ 624
====== ====== ====== ====== ====== ====== ======
Net investment gains (losses), net
of income taxes (29) (99) (102) (105) 56 66 (151)
Adjustments related to net
investment gains (losses), net of
income taxes 4 9 17 29 (12) (5) 34
Discontinued operations, net of
income taxes 0 0 0 0 0 0 0
------ ------ ------ ------ ------ ------ ------
Net income available to common
shareholders 148 119 141 130 236 556 507
Preferred stock dividends 0 0 0 0 0 0 0
------ ------ ------ ------ ------ ------ ------
Net income $ 148 $ 119 $ 141 $ 130 $ 236 $ 556 $ 507
====== ====== ====== ====== ====== ====== ======
22
(METLIFE(R) LOGO)
INDIVIDUAL OPERATIONS
STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS - PRODUCT LEVEL
UNAUDITED (DOLLARS IN MILLIONS)
For the
Year-to-Date
For the Three Months Ended Period Ended
----------------------------------------------------------- ---------------------------
September 30, December 31, March 31, June 30, September 30, September 30, September 30,
Other 2005 2005 2006 2006 2006 2005 2006
------------- ------------ --------- -------- ------------- ------------- -------------
REVENUES
Premiums $ 2 $ 29 $ 8 $ 6 $ 8 $ 2 $ 22
Universal life and investment-type
product policy fees 44 34 42 48 44 99 134
Investment income, net 36 41 40 41 44 106 125
Other revenues 123 81 99 100 93 317 292
---- ---- ---- --- ---- ---- ----
205 185 189 195 189 524 573
---- ---- ---- --- ---- ---- ----
EXPENSES
Policyholder benefits and dividends 4 20 5 5 5 4 15
Interest credited to policyholder
account balances 17 20 20 23 25 52 68
Capitalization of deferred policy
acquisition costs 0 0 0 0 0 (1) 0
Amortization of deferred policy
acquisition costs 0 0 0 0 0 0 0
Other expenses 173 128 149 156 145 428 450
---- ---- ---- --- ---- ---- ----
194 168 174 184 175 483 533
---- ---- ---- --- ---- ---- ----
Operating earnings before provision
(benefit) for income taxes 11 17 15 11 14 41 40
Provision (benefit) for income taxes 4 6 5 4 6 14 15
---- ---- ---- --- ---- ---- ----
OPERATING EARNINGS AVAILABLE TO
COMMON SHAREHOLDERS $ 7 $ 11 $ 10 $ 7 $ 8 $ 27 $ 25
==== ==== ==== === ==== ==== ====
Net investment gains (losses), net
of income taxes 4 (9) 1 (10) (3) (2) (12)
Adjustments related to net
investment gains (losses), net of
income taxes 0 0 0 0 0 0 0
Discontinued operations, net of
income taxes 0 0 0 0 0 0 0
---- ---- ---- --- ---- ---- ----
Net income available to common
shareholders 11 2 11 (3) 5 25 13
Preferred stock dividends 0 0 0 0 0 0 0
---- ---- ---- --- ---- ---- ----
Net income $ 11 $ 2 $ 11 ($3) $ 5 $ 25 $ 13
==== ==== ==== === ==== ==== ====
23
(METLIFE(R) LOGO)
INDIVIDUAL OPERATIONS
PREMIUMS AND DEPOSITS BY PRODUCT
For the Three Months Ended
---------------------------------------------------------------
September 30, December 31, March 31, June 30, September 30,
Unaudited (Dollars in millions) 2005 2005 2006 2006 2006
------------- ------------ --------- -------- -------------
PREMIUMS AND DEPOSITS BY PRODUCT (1)
TOTAL (2)
Life First Year Premiums and Deposits
Traditional Life $ 52 $ 54 $ 50 $ 50 $ 46
Variable Life 1st Year excluding Single Premium COLI/BOLI 56 63 50 55 48
Universal Life 1st Year excluding Single Premium COLI/BOLI 245 228 203 177 147
Single Premium COLI/BOLI 4 15 6 6 3
------ ------ ------ ------ ------
Total Life First Year Premiums & Deposits (3) 357 360 309 288 244
Life Renewal Premiums and Deposits
Traditional Life 1,033 1,227 959 1,049 1,036
Variable & Universal Life 532 551 600 515 579
Annuities (4) 3,624 3,570 3,843 4,229 3,531
------ ------ ------ ------ ------
Total Premiums and Deposits $5,546 $5,708 $5,711 $6,081 $5,390
====== ====== ====== ====== ======
PREMIUMS AND DEPOSITS TO SEPARATE ACCOUNTS
Variable & Universal Life $ 297 $ 307 $ 283 $ 276 $ 289
Annuities 2,306 2,479 2,532 2,928 2,213
------ ------ ------ ------ ------
Total Separate Accounts $2,603 $2,786 $2,815 $3,204 $2,502
====== ====== ====== ====== ======
ANNUITY DEPOSITS BY TYPE
Fixed Annuity Deposits $496 $ 464 $ 520 $ 430 $ 594
Variable Annuity Deposits 3,128 3,106 3,323 3,799 2,937
------ ------ ------ ------ ------
Total Annuity Deposits $3,624 $3,570 $3,843 $4,229 $3,531
====== ====== ====== ====== ======
(1) Statutory premiums direct and assumed.
(2) Includes premiums and deposits to separate accounts and excludes Company
sponsored internal exchanges.
(3) Of the $244 million of First Year Life Premiums and Deposits received
during the three months ended September 30, 2006, approximately 48% were
distributed through MetLife agents, 16% through New England Financial
agents, 33% through MetLife's Independent Distribution channel and 3%
through other distribution channels.
(4) Of the $3,531 million of Annuity Deposits received during the three months
ended September 30, 2006, approximately 26% were distributed through
MetLife agents, 6% through New England Financial agents, 56% through
MetLife's Independent Distribution channel and 12% through MetLife
Resources representatives.
24
(METLIFE(R) LOGO)
INDIVIDUAL OPERATIONS
ADDITIONAL STATISTICAL INFORMATION
<Table>
<Caption>
For the Three Months Ended
-------------------------------------------------------------------
September 30, December 31, March 31, June 30, September 30,
Unaudited 2005 2005 2006 2006 2006
------------- ------------ --------- -------- -------------
PERCENTAGE OF PREMIUMS AND DEPOSITS TO SEPARATE ACCOUNTS,
EXCLUDING TRANSFERS FROM GENERAL ACCOUNT:
Variable & Universal Life 33.4% 33.6% 31.3% 33.8% 32.5%
Annuities 63.6% 69.4% 65.9% 69.2% 62.7%
MORTALITY AS A PERCENTAGE OF EXPECTED 86.4% 84.9% 94.0% 85.1% 82.4%
LAPSES / SURRENDERS (GENERAL AND SEPARATE ACCOUNT) (1)
Traditional Life 6.1% 6.0% 6.0% 5.9% 5.7%
Variable & Universal Life 6.2% 6.1% 6.3% 6.0% 5.8%
Variable Annuities 8.4% 8.9% 9.5% 10.0% 10.2%
Fixed Annuities 6.4% 8.0% 8.7% 9.6% 10.2%
NUMBER OF SALES REPRESENTATIVES
MetLife Distribution 5,774 5,804 5,954 6,002 5,996
New England Financial 2,228 2,006 2,068 2,071 2,025
Independent Distribution Wholesalers 279 229 220 217 215
MetLife Resources 857 794 751 739 738
Walnut Street and Tower Square Securities 1,869 1,676 1,632 1,564 1,520
P&C Specialists 672 682 658 657 633
------ ------ ------ ------ ------
Total Agents 11,679 11,191 11,283 11,250 11,127
====== ====== ====== ====== ======
</Table>
(1) Lapses/Surrenders rates are calculated for the most recent 12 months of
experience.
25
(METLIFE(R) LOGO)
<Table>
INDIVIDUAL OPERATIONS
FUTURE POLICY BENEFITS AND POLICYHOLDER ACCOUNT BALANCES AND SEPARATE ACCOUNT LIABILITIES
UNAUDITED (DOLLARS IN MILLIONS)
FUTURE POLICY BENEFITS AND POLICYHOLDER ACCOUNT BALANCES
</Table>
<Table>
<Caption>
For the Three Months Ended
-------------------------------------------------------------------
September 30, December 31, March 31, June 30, September 30,
Traditional Life 2005 2005 2006 2006 2006
------------- ------------ --------- -------- -------------
Balance, beginning of period $49,582 $50,562 $50,944 $50,977 $51,177
Premiums and deposits (1) 1,101 1,239 1,061 1,093 1,091
Interest on reserves 514 518 511 520 523
Surrenders and withdrawals (443) (470) (504) (433) (432)
Benefit payments (498) (459) (572) (498) (488)
Other 306(2) (446) (463) (482) (465)
------- ------- ------- ------- -------
Balance, end of period $50,562 $50,944 $50,977 $51,177 $51,406
======= ======= ======= ======= =======
</Table>
<Table>
<Caption>
For the Three Months Ended
-------------------------------------------------------------------
September 30, December 31, March 31, June 30, September 30,
Variable & Universal Life 2005 2005 2006 2006 2006
------------- ------------ --------- -------- -------------
Balance, beginning of period $10,154 $14,315 $14,852 $15,042 $15,268
Premiums and deposits (1) (3) 548 567 572 482 479
Interest on reserves 151 148 142 145 151
Surrenders and withdrawals (178) (185) (168) (171) (218)
Net transfers from (to) separate account 52 45 49 48 62
Policy charges (350) (351) (363) (364) (365)
Benefit payments (36) (34) (48) (44) (37)
Other 3,974(2) 347 6 130 (6)
------- ------- ------- ------- -------
Balance, end of period $14,315 $14,852 $15,042 $15,268 $15,334
======= ======= ======= ======= =======
</Table>
<Table>
<Caption>
For the Three Months Ended
-------------------------------------------------------------------
September 30, December 31, March 31, June 30, September 30,
Annuities 2005 2005 2006 2006 2006
------------- ------------ --------- -------- -------------
Balance, beginning of period $32,421 $46,136 $45,732 $45,293 $44,775
Premiums and deposits (1) (3) 1,410 1,298 1,398 1,456 1,475
Interest on reserves 401 398 395 448 418
Surrenders and withdrawals (1,014) (1,178) (1,231) (1,552) (1,341)
Net transfers from (to) separate account (544) (625) (621) (521) (495)
Policy charges (2) (2) (2) (2) (1)
Benefit payments (309) (297) (326) (349) (326)
Other 13,773(2) 2 (52) 2 13
------- ------- ------- ------- -------
Balance, end of period $46,136 $45,732 $45,293 $44,775 $44,518
======= ======= ======= ======= =======
</Table>
SEPARATE ACCOUNT LIABILITIES
<Table>
<Caption>
For the Three Months Ended
-------------------------------------------------------------------
September 30, December 31, March 31, June 30, September 30,
Variable & Universal Life 2005 2005 2006 2006 2006
------------- ------------ --------- -------- -------------
Balance, beginning of period $7,900 $9,164 $9,307 $9,769 $9,593
Premiums and deposits (1) 297 307 283 276 289
Investment performance 318 155 492 (134) 192
Surrenders and withdrawals (137) (177) (158) (160) (140)
Net transfers from (to) fixed account (52) (45) (51) (48) (64)
Policy charges (89) (96) (80) (110) (74)
Other 927(2) (1) (24) 0 0
------ ------ ------ ------ ------
Balance, end of period $9,164 $9,307 $9,769 $9,593 $9,796
====== ====== ====== ====== ======
</Table>
<Table>
<Caption>
For the Three Months Ended
-------------------------------------------------------------------
September 30, December 31, March 31, June 30, September 30,
Annuities 2005 2005 2006 2006 2006
------------- ------------ --------- -------- -------------
Balance, beginning of period $39,771 $69,146 $71,764 $75,861 $75,587
Premiums and deposits (1) 2,306 2,479 2,532 2,928 2,213
Investment performance 2,701 1,507 3,255 (1,483) 2,584
Surrenders and withdrawals (1,723) (1,724) (2,026) (1,947) (2,008)
Net transfers from (to) fixed account 544 625 621 521 495
Policy charges (266) (269) (280) (292) (301)
Other 25,813(2) 0 (5) (1) 0
------- ------- ------- ------- -------
Balance, end of period $69,146 $71,764 $75,861 $75,587 $78,570
======= ======= ======= ======= =======
</Table>
(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 or variable annuity product.
26
(METLIFE(R) LOGO)
INDIVIDUAL OPERATIONS
INSURANCE EXPENSES AND OTHER
EXPENSES BY MAJOR CATEGORY
<Table>
<Caption>
For the Three Months Ended
-------------------------------------------------------------------
September 30, December 31, March 31, June 30, September 30,
Unaudited (Dollars in millions) 2005 2005 2006 2006 2006
------------- ------------ --------- -------- -------------
INSURANCE EXPENSES (NET OF CAPITALIZATION OF DAC)
Insurance Expenses $ 936 $ 941 $830 $ 914 $855
DAC Capitalization (1) (401) (426) (384) (429) (353)
------ ------ ---- ------ ----
Net $ 535 $ 515 $446 $ 485 $502
====== ====== ==== ====== ====
OTHER EXPENSES BY MAJOR CATEGORY
Commissions $ 329 $ 347 $315 $ 350 $282
Other deferrable expenses 126 140 120 146 132
Direct and allocated expenses, not deferred 422 410 334 386 371
Pension and other post-retirement benefit costs 29 30 34 3 35
Premium taxes and other taxes, licenses and fees 30 14 27 29 35
------ ------ ---- ------ ----
Subtotal Insurance Expenses 936 941 830 914 855
Broker-dealer and other expenses 177 132 155 159 147
Reinsurance allowances (19) (26) (21) (13) (15)
------ ------ ---- ------ ----
Total Other Expenses $1,094 $1,047 $964 $1,060 $987
====== ====== ==== ====== ====
</Table>
(1) Excludes $17 million, $17 million, $14 million, $14 million and $13
million of DAC capitalization related to reinsurance allowances for the
three months ended September 30, 2005, December 31, 2005, March 31, 2006,
June 30, 2006, and September 30, 2006, respectively.
27
(METLIFE(R) LOGO)
INDIVIDUAL OPERATIONS
SPREADS BY PRODUCT
UNAUDITED
<Table>
<Caption>
For the Three Months Ended
-------------------------------------------------------------------
September 30, December 31, March 31, June 30, September 30,
VARIABLE & UNIVERSAL LIFE 2005 2005 2006 2006 2006
------------- ------------ --------- -------- -------------
ANNUALIZED GENERAL ACCOUNT
SPREADS BY PRODUCT (%)
Investment income yield 6.91% 6.63% 6.69% 6.41% 6.35%
Average crediting rate 4.65% 4.67% 4.56% 4.54% 4.53%
---- ---- ---- ---- ----
Spread 2.26% 1.96% 2.13% 1.87% 1.82%
==== ==== ==== ==== ====
</Table>
<Table>
<Caption>
For the Three Months Ended
-------------------------------------------------------------------
September 30, December 31, March 31, June 30, September 30,
ANNUITIES 2005 2005 2006 2006 2006
------------- ------------ --------- -------- -------------
ANNUALIZED GENERAL ACCOUNT
SPREADS BY PRODUCT (%)
Investment income yield 6.41% 6.32% 6.28% 6.28% 6.27%
Average crediting rate 3.64% 3.64% 3.65% 3.66% 3.67%
---- ---- ---- ---- ----
Spread 2.77% 2.68% 2.63% 2.62% 2.60%
==== ==== ==== ==== ====
</Table>
28
(METLIFE(R) LOGO)
AUTO & HOME OPERATIONS
STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS - TOTAL
UNAUDITED (DOLLARS IN MILLIONS)
<Table>
<Caption>
For the
Year-to-Date
For the Three Months Ended Period Ended
--------------------------------------------------------------- ----------------------------
September 30, December 31, March 31, June 30, September 30, September 30, September 30,
Auto & Home Operations 2005 2005 2006 2006 2006 2005 2006
------------- ------------ --------- -------- ------------- ------------- -------------
REVENUES
Earned premiums $716 $729 $724 $726 $732 $2,182 $2,182
Investment income, net 46 46 45 42 46 135 133
Other revenues 8 8 7 8 3 25 18
---- --- --- --- ---- ---- ----
770 783 776 776 781 2,342 2,333
---- --- --- --- ---- ---- ----
EXPENSES
Losses and loss adjustment expense 615 454 451 432 426 1,540 1,309
Other expenses 209 218 203 211 210 613 624
---- --- --- --- ---- ---- ----
824 672 654 643 636 2,153 1,933
---- --- --- --- ---- ---- ----
Operating earnings before provision
(benefit) for income taxes (54) 111 122 133 145 189 400
Provision (benefit) for income taxes (28) 30 29 34 38 38 101
---- --- --- --- ---- ---- ----
OPERATING EARNINGS AVAILABLE TO
COMMON SHAREHOLDERS ($26) $81 $93 $99 $107 $151 $299
==== === === === ==== ==== ====
NET INCOME RECONCILIATION
- -------------------------
Operating earnings available to
common shareholders ($26) $81 $93 $99 $107 $151 $299
---- --- --- --- ---- ---- ----
Net investment gains (losses) (5) (3) 1 (4) (1) (9) (4)
Minority interest - net
investment gains (losses) 0 0 0 0 0 0 0
Net investment gains (losses)
tax benefit (provision) 2 1 (3) 4 0 3 1
---- --- --- --- ---- ---- ----
Net investment gains (losses), net
of income taxes (3) (2) (2) 0 (1) (6) (3)
---- --- --- --- ---- ---- ----
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 0 0 0 0 0 0 0
Adjustments related to other
expenses 0 0 0 0 0 0 0
Adjustments related to tax
benefit (provision) 0 0 0 0 0 0 0
---- --- --- --- ---- ---- ----
Adjustments related to net
investment gains (losses), net of
income taxes 0 0 0 0 0 0 0
---- --- --- --- ---- ---- ----
Discontinued operations, net of
income taxes 0 0 0 0 0 0 0
---- --- --- --- ---- ---- ----
Net income available to common
shareholders (29) 79 91 99 106 145 296
Preferred stock dividends 0 0 0 0 0 0 0
---- --- --- --- ---- ---- ----
Net income ($29) $79 $91 $99 $106 $145 $296
==== === === === ==== ==== ====
</Table>
29
(METLIFE(R) LOGO)
<Table>
AUTO & HOME OPERATIONS
STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS - PRODUCT LEVEL
UNAUDITED (DOLLARS IN MILLIONS)
</Table>
<Table>
<Caption>
For the
Year-to-Date
For the Three Months Ended Period Ended
--------------------------------------------------------------- ----------------------------
September 30, December 31, March 31, June 30, September 30, September 30, September 30,
Auto 2005 2005 2006 2006 2006 2005 2006
------------- ------------ --------- -------- ------------- ------------- -------------
REVENUES
Earned premiums $534 $525 $517 $516 $519 $1,598 $1,552
Investment income, net 34 37 34 32 34 101 100
Other revenues 6 5 6 7 4 18 17
--- --- --- --- --- ----- -----
574 567 557 555 557 1,717 1,669
--- --- --- --- --- ----- -----
EXPENSES
Losses and loss adjustment expense 339 355 334 321 295 1,059 950
Other expenses 143 150 137 145 141 421 423
--- --- --- --- --- ----- -----
482 505 471 466 436 1,480 1,373
--- --- --- --- --- ----- -----
Operating earnings before provision
(benefit) for income taxes 92 62 86 89 121 237 296
Provision (benefit) for income taxes 27 13 21 21 33 62 75
--- --- --- --- --- ----- -----
OPERATING EARNINGS AVAILABLE TO
COMMON SHAREHOLDERS $ 65 $ 49 $ 65 $ 68 $ 88 $ 175 $ 221
=== === === === === ===== =====
Net investment gains (losses), net
of income taxes (2) (2) (1) 0 (1) (4) (2)
Adjustments related to net
investment gains (losses), net
of income taxes 0 0 0 0 0 0 0
Discontinued operations, net of
income taxes 0 0 0 0 0 0 0
--- --- --- --- --- ----- -----
Net income available to common
shareholders 63 47 64 68 87 171 219
Preferred stock dividends 0 0 0 0 0 0 0
--- --- --- --- --- ----- -----
Net income $ 63 $ 47 $ 64 $ 68 $ 87 $ 171 $ 219
=== === === === === ===== =====
</Table>
30
(METLIFE(R) LOGO)
<Table>
AUTO & HOME OPERATIONS
STATEMENTS OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS - PRODUCT LEVEL
UNAUDITED (DOLLARS IN MILLIONS)
</Table>
<Table>
<Caption>
For the
For the Three Months Ended Year-to-Date Period Ended
--------------------------------------------------------------- ----------------------------
September 30, December 31, March 31, June 30, September 30, September 30, September 30,
Homeowners & Other 2005 2005 2006 2006 2006 2005 2006
------------- ------------ --------- -------- ------------- ------------- -------------
REVENUES
Earned premiums $182 $204 $207 $210 $213 584 $630
Investment income, net 12 9 11 10 12 34 33
Other revenues 2 3 1 1 (1) 7 1
---- ---- ---- ---- ---- --- ----
196 216 219 221 224 625 664
---- ---- ---- ---- ---- --- ----
EXPENSES
Losses and loss adjustment expense 276 99 117 111 131 481 359
Other expenses 66 68 66 66 69 192 201
---- ---- ---- ---- ---- --- ----
342 167 183 177 200 673 560
---- ---- ---- ---- ---- --- ----
Operating earnings before provision
(benefit) for income taxes (146) 49 36 44 24 (48) 104
Provision (benefit) for income taxes (55) 17 8 13 5 (24) 26
---- ---- ---- ---- ---- --- ----
OPERATING EARNINGS AVAILABLE TO
COMMON SHAREHOLDERS ($91) $32 $28 $31 $19 ($24) $78
==== ==== ==== ==== ==== === ====
Net investment gains (losses), net
of income taxes (1) 0 (1) 0 0 (2) (1)
Adjustments related to net
investment gains (losses), net
of income taxes 0 0 0 0 0 0 0
Discontinued operations, net of
income taxes 0 0 0 0 0 0 0
---- ---- ---- ---- ---- --- ----
Net income available to common
shareholders (92) 32 27 31 19 (26) 77
Preferred stock dividends 0 0 0 0 0 0 0
---- ---- ---- ---- ---- --- ----
Net income ($92) $32 $27 $31 $19 ($26) $77
==== ==== ==== ==== ==== === ====
</Table>
31
(METLIFE(R) LOGO)
AUTO & HOME OPERATIONS
WRITTEN PREMIUMS BY PRODUCT AND SELECTED FINANCIAL INFORMATION
AND SUPPLEMENTAL DATA
<Table>
<Caption>
For the Three Months Ended
---------------------------------------------------------------
September 30, December 31, March 31, June 30, September 30,
Unaudited (Dollars in millions) 2005 2005 2006 2006 2006
------------- ------------ --------- -------- -------------
WRITTEN PREMIUMS BY PRODUCT
Preferred/Standard Automobile $528 $492 $498 $507 $531
Non-Standard Automobile 14 12 12 11 11
Homeowners & Other 211 200 186 226 239
---- ---- ---- ---- ----
Total $753 $704 $696 $744 $781
==== ==== ==== ==== ====
SELECTED FINANCIAL INFORMATION AND
SUPPLEMENTAL DATA
TOTAL AUTO & HOME
Loss and loss adjustment expense ratio 85.8% 62.3% 62.4% 59.3% 58.3%
Other expense ratio 28.5% 29.2% 27.2% 28.6% 28.1%
---- ---- ---- ---- ----
Total combined ratio (1) 114.3% 91.5% 89.6% 87.9% 86.4%
Effect of catastrophe losses (2) 27.5% 8.5% 3.0% 3.4% 5.2%
---- ---- ---- ---- ----
Combined ratio excluding catastrophes 86.8% 83.0% 86.6% 84.5% 81.2%
==== ==== ==== ==== ====
AUTO
Loss and loss adjustment expense ratio 63.3% 67.6% 64.7% 62.2% 56.8%
Other expense ratio 26.0% 27.8% 25.7% 27.1% 26.3%
---- ---- ---- ---- ----
Total combined ratio (1) 89.3% 95.4% 90.4% 89.3% 83.1%
Effect of catastrophe losses (2) 2.7% 3.4% 0.8% 1.3% 0.8%
---- ---- ---- ---- ----
Combined ratio excluding catastrophes 86.6% 92.0% 89.6% 88.0% 82.3%
==== ==== ==== ==== ====
HOMEOWNERS & OTHER
Loss and loss adjustment expense ratio 151.6% 48.5% 56.5% 52.9% 61.1%
Other expense ratio 35.8% 32.9% 31.5% 31.0% 32.9%
---- ---- ---- ---- ----
Total combined ratio (1) 187.4% 81.4% 88.0% 83.9% 94.0%
Effect of catastrophe losses (2) 100.0% 20.6% 8.4% 8.1% 16.0%
---- ---- ---- ---- ----
Combined ratio excluding catastrophes 87.4% 60.8% 79.6% 75.8% 78.0%
==== ==== ==== ==== ====
PRE-TAX CATASTROPHE LOSSES
Auto $13 $ 17 $ 4 $ 7 $ 4
Homeowners & Other 156 36 17 17 34
---- ---- ---- ---- ----
Total $169 $ 53 $ 21 $ 24 $ 38
==== ==== ==== ==== ====
CATASTROPHE POINTS ON COMBINED RATIOS 27.5 8.5 3.0 3.4 5.2
NUMBER OF SALES REPRESENTATIVES 85 100 98 93 93
</Table>
(1) The combined ratio reflects payment fees as a credit to Other expenses for
the three months ended September 30, 2005, December 31, 2005, March 31,
2006, June 30, 2006, and September 2006, which resulted in a 0.7, 0.7,
0.7, 0.6, and 0.6 of a percentage point decrease in the combined ratio for
the periods ended, respectively. The decreases for Auto and Homeowners &
Other were 0.8 and 0.5 of a percentage point, respectively, for September
30, 2005, 0.8 and 0.5 of a percentage point, respectively, for December
31, 2005, 0.8 and 0.4 of a percentage point, respectively, for March 31,
2006, 0.7 and 0.4 of a percentage point, respectively, for June 30, 2006,
and 0.7 and 0.4 of a percentage point, respectively, for September 30,
2006
(2) Includes the effect of both catastrophe losses and $32 million in
reinstatement reinsurance premiums within Auto ($2 million) and Homeowners
& Other ($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 & Other ($10 million).
32
(METLIFE(R) LOGO)
INTERNATIONAL OPERATIONS
STATEMENT OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
<Table>
<Caption>
For the
For the Three Months Ended Year-to-Date Period Ended
--------------------------------------------------------------- ----------------------------
September 30, December 31, March 31, June 30, September 30, September 30, September 30,
Unaudited (Dollars in millions) 2005 2005 2006 2006 2006 2005 2006
------------- ------------ --------- -------- ------------- ------------- -------------
REVENUES
Premiums $614 $636 $631 $676 $675 $1,550 $1,982
Universal life and investment-type
product policy fees 170 165 184 194 205 414 583
Investment income, net 238 262 235 238 290 582 763
Other revenues 9 9 4 4 8 11 16
----- ----- ----- ----- ----- ----- -----
1,031 1,072 1,054 1,112 1,178 2,557 3,344
----- ----- ----- ----- ----- ----- -----
EXPENSES
Policyholder benefits and dividends 578 600 527 600 581 1,456 1,708
Interest credited to policyholder
account balances 84 92 87 86 93 186 266
Capitalization of deferred policy
acquisition costs (137) (141) (151) (145) (146) (400) (442)
Amortization of deferred policy
acquisition costs 68 43 82 78 96 180 256
Other expenses 359 441 396 413 438 877 1,247
----- ----- ----- ----- ----- ----- -----
952 1,035 941 1,032 1,062 2,299 3,035
----- ----- ----- ----- ----- ----- -----
Operating earnings before provision
(benefit) for income taxes 79 37 113 80 116 258 309
Provision (benefit) for income taxes 13 (11) 38 18 44 73 100
----- ----- ----- ----- ----- ----- -----
OPERATING EARNINGS AVAILABLE TO
COMMON SHAREHOLDERS $66 $48 $75 $62 $72 $185 $209
===== ===== ===== ===== ===== ===== =====
NET INCOME RECONCILIATION
- -------------------------
Operating earnings available to
common shareholders $66 $48 $75 $62 $72 $185 $209
----- ----- ----- ----- ----- ----- -----
Net investment gains (losses) 5 (7) 20 13 (17) 12 16
Minority interest - net
investment gains (losses) 0 0 0 0 0 0 0
Net investment gains (losses)
tax benefit (provision) (2) 3 (6) (5) 4 (4) (7)
----- ----- ----- ----- ----- ----- -----
Net investment gains (losses),
net of income taxes 3 (4) 14 8 (13) 8 9
----- ----- ----- ----- ----- ----- -----
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 (54) (21) 22 49 (73) (56) (2)
Adjustments related to other
expenses 0 0 0 0 0 0 0
Adjustments related to tax
benefit (provision) 19 7 (7) (18) 25 20 0
----- ----- ----- ----- ----- ----- -----
Adjustments related to net
investment gains (losses), net
of income taxes (1) (35) (14) 15 31 (48) (36) (2)
----- ----- ----- ----- ----- ----- -----
Discontinued operations, net of
income taxes 7 0 0 0 0 5 0
----- ----- ----- ----- ----- ----- -----
Net income available to common
shareholders 41 30 104 101 11 162 216
Preferred stock dividends 0 0 0 0 0 0 0
----- ----- ----- ----- ----- ----- -----
Net income $41 $30 $104 $101 $11 $162 $216
===== ===== ===== ===== ===== ===== =====
NUMBER OF PROFESSIONAL SALES
REPRESENTATIVES 3,861 3,783 3,782 3,982 3,946
</Table>
(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.
33
(METLIFE(R) LOGO)
REINSURANCE OPERATIONS
STATEMENT OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
<Table>
<Caption>
For the
For the Three Months Ended Year-to-Date Period Ended
--------------------------------------------------------------- ----------------------------
September 30, December 31, March 31, June 30, September 30, September 30, September 30,
Unaudited (Dollars in millions) 2005 2005 2006 2006 2006 2005 2006
------------- ------------ --------- -------- ------------- ------------- -------------
REVENUES
Premiums $974 $1,062 $993 $1,078 $1,076 $2,807 $3,147
Investment income, net 158 161 174 156 171 445 501
Other revenues 13 13 15 13 19 45 47
----- ----- ----- ----- ----- ----- -----
1,145 1,236 1,182 1,247 1,266 3,297 3,695
----- ----- ----- ----- ----- ----- -----
EXPENSES
Claims and other policy benefits 779 860 813 871 849 2,346 2,533
Interest credited to policyholder
account balances 64 57 63 48 46 163 157
Policy acquisition costs and other
insurance expenses 162 159 158 174 185 462 517
Other expenses 48 57 63 60 84 139 207
----- ----- ----- ----- ----- ----- -----
1,053 1,133 1,097 1,153 1,164 3,110 3,414
----- ----- ----- ----- ----- ----- -----
Operating earnings before provision
(benefit) for income taxes and
minority interest 92 103 85 94 102 187 281
Provision (benefit) for income taxes 16 17 12 16 17 28 45
----- ----- ----- ----- ----- ----- -----
Operating earnings available to
common shareholders before
minority interest 76 86 73 78 85 159 236
Elimination of minority interest,
before tax 50 55 49 49 56 104 154
----- ----- ----- ----- ----- ----- -----
CONTRIBUTION TO METLIFE $26 $31 $24 $29 $29 $55 $82
===== ===== ===== ===== ===== ===== =====
NET INCOME RECONCILIATION
- -------------------------
Operating earnings available to
common shareholders $26 $31 $24 $29 $29 $55 $82
----- ----- ----- ----- ----- ----- -----
Net investment gains (losses) 7 (6) 8 (15) 3 28 (4)
Minority interest - net
investment gains (losses) (1) 3 (2) 4 0 (8) 2
Net investment gains (losses)
tax benefit (provision) (2) 1 (2) 4 (2) (4) 0
----- ----- ----- ----- ----- ----- -----
Net investment gains (losses), net
of income taxes 4 (2) 4 (7) 1 16 (2)
----- ----- ----- ----- ----- ----- -----
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 0 0 0 0 0 0 0
Adjustments related to other
expenses (4) (1) (3) 8 (1) (9) 4
Adjustments related to tax
benefit (provision) 2 0 1 (3) 1 2 (1)
----- ----- ----- ----- ----- ----- -----
Adjustments related to net
investment gains (losses),
net of income taxes (1) (2) (1) (2) 5 0 (7) 3
----- ----- ----- ----- ----- ----- -----
Discontinued operations, net of
income taxes 0 0 0 0 0 0 0
----- ----- ----- ----- ----- ----- -----
Net income available to common
shareholders 28 28 26 27 30 64 83
Preferred stock dividends 0 0 0 0 0 0 0
----- ----- ----- ----- ----- ----- -----
Net income $28 $28 $26 $27 $30 $64 $83
===== ===== ===== ===== ===== ===== =====
</Table>
(1) Adjustments related to net investment gains (losses), net of income taxes,
include amortization of deferred policy acquisition costs.
34
REINSURANCE OPERATIONS
PRE-TAX AND PRE-MINORITY INTEREST OPERATING
EARNINGS BY REGION AND RESERVES BY REGION
For the Three Months Ended
-------------------------------------------------------------------------
September 30, December 31, March 31, June 30, September 30,
Unaudited (Dollars in millions) 2005 2005 2006 2006 2006
------------- ------------ --------- -------- -------------
PRE-TAX AND PRE-MINORITY INTEREST
OPERATING EARNINGS BY REGION (1)
United States $ 78 $ 80 $ 66 $ 66 $ 75
Canada 21 20 7 9 12
Asia-Pacific 4 18 7 8 19
Other international markets 15 12 15 17 9
Corporate (26) (27) (10) (6) (13)
------- ------- ------- ------- -------
Total pre-tax and pre-minority interest
operating earnings $ 92 $ 103 $ 85 $ 94 $ 102
======= ======= ======= ======= =======
POLICY BENEFITS AND INTEREST
SENSITIVE CONTRACT LIABILITIES BY REGION
Traditional U.S. $ 3,966 $ 4,030 $ 4,157 $ 4,239 $ 4,328
Asset intensive 4,497 4,657 4,773 4,911 5,022
Other 90 100 77 90 68
------- ------- ------- ------- -------
Total U.S. 8,553 8,787 9,007 9,240 9,418
------- ------- ------- ------- -------
Canada 1,507 1,596 1,622 1,780 1,781
Asia-Pacific 629 688 708 752 780
Other international markets 677 680 719 774 786
------- ------- ------- ------- -------
Total International 2,813 2,964 3,049 3,306 3,347
------- ------- ------- ------- -------
Total policy benefits and interest sensitive
contract liabilities $11,366 $11,751 $12,056 $12,546 $12,765
======= ======= ======= ======= =======
- ----------
(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 upon 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.
35
CORPORATE, OTHER & ELIMINATIONS
STATEMENT OF OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
For the
Year-to-Date
For the Three Months Ended Period Ended
--------------------------------------------------------------- ----------------------------
September 30, December 31, March 31, June 30, September 30, September 30, September 30,
Unaudited (Dollars in millions) 2005 2005 2006 2006 2006 2005 2006
------------- ------------ --------- -------- ------------- ------------- -------------
REVENUES
Premiums $ 6 $12 $ 9 $10 $ 7 $ 10 $ 26
Universal life and investment-type
product policy fees 1 0 0 0 0 1 0
Investment income, net 212 255 296 308 219 558 823
Other revenues 5 17 7 6 12 13 25
--- --- --- --- --- ------ -----
224 284 312 324 238 582 874
--- --- --- --- --- ------ -----
EXPENSES
Policyholder benefits and dividends 12 16 7 13 13 (31) 33
Interest credited to policyholder
account balances 0 0 0 0 0 0 0
Interest credited to bank deposits 30 37 43 48 51 72 142
Interest expense 166 171 175 183 200 380 558
Other expenses 59 135 93 111 70 160 274
--- --- --- --- --- ------ -----
267 359 318 355 334 581 1,007
--- --- --- --- --- ------ -----
Operating earnings before provision
(benefit) for income taxes (43) (75) (6) (31) (96) 1 (133)
Provision (benefit) for income taxes (72) (45) (48) (50) (123) (115) (221)
--- --- --- --- --- ------ -----
Operating earnings 29 (30) 42 19 27 116 88
Preferred stock dividends 31 32 33 33 34 31 100
--- --- --- --- --- ------ -----
OPERATING EARNINGS AVAILABLE TO
COMMON SHAREHOLDERS ($2)(1) ($62) $ 9 ($14) ($7) $ 85 ($12)
=== === === === === ====== =====
NET INCOME RECONCILIATION
- -------------------------
Operating earnings available to
common shareholders ($2) ($62) $ 9 ($14) ($7) $ 85 ($12)
--- --- --- --- --- ------ -----
Net investment gains (losses) 73 118 (49) (64) (40) 1,273 (153)
Minority interest - net
investment gains (losses) 0 0 0 0 0 0 0
Net investment gains (losses)
tax benefit (provision) (25) (44) 16 21 12 (450) 49
--- --- --- --- --- ------ -----
Net investment gains (losses),
net of income taxes 48 74 (33) (43) (28) 823 (104)
--- --- --- --- --- ------ -----
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 0 0 0 0 0 0 0
Adjustments related to other
expenses 0 0 0 0 0 0 0
Adjustments related to tax
benefit (provision) 0 0 0 0 0 0 0
--- --- --- --- --- ------ -----
Adjustments related to net
investment gains (losses),
net of income taxes 0 0 0 0 0 0 0
--- --- --- --- --- ------ -----
Discontinued operations, net of
income taxes 0 12 0 30 0 151 30
--- --- --- --- --- ------ -----
Net income available to common
shareholders 46 24 (24) (27) (35) 1,059 (86)
Preferred stock dividends 31 32 33 33 34 31 100
--- --- --- --- --- ------ -----
Net income $77 $56 $ 9 $ 6 ($1) $1,090 $ 14
=== === === === === ====== =====
- ----------
1) 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.
36
(METLIFE(R) LOGO)
METLIFE, INC.
INVESTMENT RESULTS
BY ASSET CATEGORY AND
ANNUALIZED YIELDS
At or For the Three Months Ended
-----------------------------------------------------------------------
September 30, December 31, March 31, June 30, September 30,
Unaudited (Dollars in millions) 2005 2005 2006 2006 2006
------------- ------------ --------- -------- -------------
FIXED MATURITIES
Yield (1) 6.03% 6.17% 6.14% 6.10% 6.17%
Income (2) $ 2,858 $ 2,954 $ 2,996 $ 2,986 $ 3,015
Investment gains (losses) ($98) ($567) ($412) ($381) ($128)
Ending Carrying Value (2) $232,041 $230,875 $240,711 $237,612 $243,136
MORTGAGE AND CONSUMER LOANS
Yield (3) 6.96% 6.85% 6.68% 6.41% 6.53%
Income $ 593 $ 591 $ 585 $ 574 $ 602
Investment gains (losses) $ 13 $ 23 $ 4 $ 3 ($8)
Ending Carrying Value $ 36,094 $ 37,190 $ 37,351 $ 38,665 $40,141
REAL ESTATE AND REAL ESTATE
JOINT VENTURES
Yield (3) 10.72% 8.59% 12.50% 11.37% 8.73%
Income (4) $ 118 $ 100 $ 146 $ 135 $ 103
Investment gains (losses) (5) $ 51 $ 166 $ 17 $ 54 $ 118
Ending Carrying Value $ 4,705 $ 4,665 $ 4,700 $ 4,786 $ 4,931
POLICY LOANS
Yield (3) 6.15% 5.80% 5.84% 5.89% 6.10%
Income $ 152 $ 143 $ 146 $ 147 $ 154
Ending Carrying Value $ 9,841 $ 9,981 $ 9,987 $ 10,065 $ 10,115
EQUITY SECURITIES AND OTHER LIMITED
PARTNERSHIP INTERESTS
Yield (3) 9.69% 13.15% 12.86% 14.83% 10.41%
Income $ 170 $ 232 $ 235 $ 278 $ 198
Investment gains (losses) $ 20 $ 32 $ 27 $ 25 ($7)
Ending Carrying Value $ 7,403 $ 7,614 $ 7,870 $ 8,007 $ 7,863
CASH AND SHORT-TERM INVESTMENTS
Yield (3) 3.45% 4.22% 4.63% 4.70% 5.42%
Income $ 122 $85 $ 80 $ 85 $ 120
Investment gains (losses) $ 0 ($1) ($1) ($1) $ 1
Ending Carrying Value $ 11,431 $ 7,324 $ 8,512 $ 8,193 $ 11,763
OTHER INVESTED ASSETS
Yield (3) 10.00% 9.65% 8.92% 7.94% 10.02%
Income (6) $ 186 $ 178 $ 171 $ 168 $ 222
Investment gains (losses) (6) ($9) $ 113 ($259) ($517) $ 278
Ending Carrying Value $ 7,877 $ 8,078 $ 8,386 $ 9,652 $ 9,194
TOTAL INVESTMENTS
Gross investment income yield 6.30% 6.51% 6.54% 6.49% 6.48%
Investment fees and expenses yield (0.13%) (0.17%) (0.12%) (0.14%) (0.16%)
--------- -------- -------- -------- --------
NET INVESTMENT INCOME YIELD 6.17% 6.34% 6.42% 6.35% 6.32%
========= ======== ======== ======== ========
Gross investment income $ 4,199 $ 4,283 $ 4,359 $ 4,373 $ 4,414
Investment fees and expenses (87) (116) (81) (96) (106)
--------- -------- -------- -------- --------
NET INVESTMENT INCOME $ 4,112 $ 4,167 $ 4,278 $ 4,277 $ 4,308
========= ======== ======== ======== ========
Ending Carrying Value $309,392 $305,727 $317,517 $316,980 $327,143
========= ======== ======== ======== ========
Gross investment gains $ 342 $ 492 $ 237 $ 247 $ 336
Gross investment losses (304) (721) (587) (661) (310)
Writedowns (14) (9) (22) (45) (25)
--------- -------- -------- -------- --------
Subtotal 24 (238) (372) (459) 1
Derivative & other instruments not qualifying for
hedge accounting (47) 4 (252) (358) 253
--------- -------- -------- -------- --------
NET INVESTMENT GAINS (LOSSES) (23) (234) (624) (817) 254
Minority interest - net investment gains (losses) (1) 3 (2) 4 0
Net investment gains (losses) tax benefit (provision) 9 85 220 289 (92)
--------- -------- -------- -------- --------
NET INVESTMENT GAINS (LOSSES), NET OF INCOME TAXES ($15) ($146) ($406) ($524) $ 162
========= ======== ======== ======== ========
(1) The fixed maturities yield is annualized and is based on quarterly average
amortized cost.
(2) Fixed maturities includes $805 million, $825 million, $883 million, $519
million and $780 million in ending carrying value, and $14 million, ($3)
million, $19 million, ($3) million and $14 million of investment income
(loss) related to trading securities at or for the three months ended
September 30, 2005, December 31, 2005, March 31, 2006, June 30, 2006 and
September 30, 2006, respectively.
(3) Yields are annualized and based on quarterly average carrying values.
(4) Included in income from real estate and real estate joint ventures is $22
million, $28 million, $19 million, $28 million and $19 million related to
discontinued operations for the three months ended September 30, 2005,
December 31, 2005, March 31, 2006, June 30, 2006 and September 30, 2006,
respectively.
(5) Included in investment gains (losses) from real estate and real estate
joint ventures is $46 million, $156 million, ($5) million, ($3) million
and $99 million related to discontinued operations for the three months
ended September 30, 2005, December 31, 2005, March 31, 2006, June 30, 2006
and September 30, 2006, respectively.
(6) Included in income from other invested assets are scheduled periodic
settlement payments on derivative instruments that do not qualify for
hedge accounting under Statement of Financial Accounting Standards No. 133
of $26 million, $36 million, $39 million, $68 million and $96 million for
the three months ended September 30, 2005, December 31, 2005, March 31,
2006, June 30, 2006 and September 30, 2006, respectively. These amounts
are excluded from net investment gains (losses). Additionally, excluded
from net investment gains (losses) is ($7) million, ($6) million, ($4)
million, $3 million and $2 million for the three months ended September
30, 2005, December 31, 2005, March 31, 2006, June 30, 2006, and September
30, 2006, respectively, related to settlement payments on derivatives used
to hedge interest rate and currency risk on policyholder account balances
that do not qualify for hedge accounting.
37
(METLIFE(R) LOGO)
METLIFE, INC.
INVESTMENT RESULTS
BY ASSET CATEGORY AND
ANNUALIZED YIELDS
At or For the Year-to-Date Ended
-----------------------------------------------------------------------
September 30, December 31, March 31, June 30, September 30,
Unaudited (Dollars in millions) 2005 2005 2006 2006 2006
------------- ------------ --------- -------- -------------
FIXED MATURITIES
Yield (1) 5.94% 6.00% 6.14% 6.12% 6.14%
Income (2) $ 7,446 $ 10,400 $ 2,996 $ 5,982 $ 8,997
Investment gains (losses) ($301) ($868) ($412) ($793) ($921)
Ending Carrying Value (2) $232,041 $230,875 $240,711 $237,612 $243,136
MORTGAGE AND CONSUMER LOANS
Yield (3) 6.79% 6.81% 6.68% 6.55% 6.54%
Income $ 1,645 $ 2,236 $ 585 $ 1,159 $ 1,761
Investment gains (losses) ($6) $ 17 $ 4 $ 7 ($1)
Ending Carrying Value $ 36,094 $ 37,190 $ 37,351 $ 38,665 $ 40,141
REAL ESTATE AND REAL ESTATE
JOINT VENTURES
Yield (3) 11.31% 10.59% 12.50% 11.93% 10.86%
Income (4) $ 367 $ 467 $ 146 $ 281 $ 384
Investment gains (losses) (5) $ 1,973 $ 2,139 $ 17 $ 71 $ 189
Ending Carrying Value $ 4,705 $ 4,665 $ 4,700 $ 4,786 $ 4,931
POLICY LOANS
Yield (3) 6.08% 6.00% 5.84% 5.86% 5.94%
Income $ 429 $ 572 $ 146 $ 293 $ 447
Ending Carrying Value $ 9,841 $ 9,981 $ 9,987 $ 10,065 $ 10,115
EQUITY SECURITIES AND OTHER LIMITED
PARTNERSHIP INTERESTS
Yield (3) 12.70% 12.83% 12.86% 13.86% 12.68%
Income $ 566 $ 798 $ 235 $ 513 $ 711
Investment gains (losses) $ 127 $ 159 $ 27 $ 52 $ 45
Ending Carrying Value $ 7,403 $ 7,614 $ 7,870 $ 8,007 $ 7,863
CASH AND SHORT-TERM INVESTMENTS
Yield (3) 3.52% 3.66% 4.63% 4.67% 4.96%
Income $ 277 $ 362 $ 80 $ 165 $ 285
Investment gains (losses) ($1) ($2) ($1) ($2) ($1)
Ending Carrying Value $ 11,431 $ 7,324 $ 8,512 $ 8,193 $ 11,763
OTHER INVESTED ASSETS
Yield (3) 8.67% 8.96% 8.92% 8.41% 8.98%
Income (6) $ 392 $ 570 $ 171 $ 339 $ 561
Investment gains (losses) (6) $ 389 $ 502 ($259) ($776) ($498)
Ending Carrying Value $ 7,877 $ 8,078 $ 8,386 $ 9,652 $ 9,194
TOTAL INVESTMENTS
Gross investment income yield 6.29% 6.35% 6.54% 6.51% 6.50%
Investment fees and expenses yield (0.13%) (0.14%) (0.12%) (0.13%) (0.14%)
-------- -------- -------- -------- --------
NET INVESTMENT INCOME YIELD 6.16% 6.21% 6.42% 6.38% 6.36%
======== ======== ======== ======== ========
Gross investment income $ 11,122 $ 15,405 $ 4,359 $8,732 $ 13,146
Investment fees and expenses (223) (339) (81) (177) (283)
-------- -------- -------- -------- --------
NET INVESTMENT INCOME $ 10,899 $ 15,066 $ 4,278 $ 8,555 $ 12,863
======== ======== ======== ======== ========
Ending Carrying Value $309,392 $305,727 $317,517 $316,980 $327,143
======== ======== ======== ======== ========
Gross investment gains $ 2,848 $ 3,340 $ 237 $ 484 $ 820
Gross investment losses (857) (1,578) (587) (1,248) (1,558)
Writedowns (107) (116) (22) (67) (92)
-------- -------- -------- -------- --------
Subtotal 1,884 1,646 (372) (831) (830)
Derivative & other instruments not qualifying for
hedge accounting 297 301 (252) (610) (357)
-------- -------- -------- -------- --------
NET INVESTMENT GAINS (LOSSES) 2,181 1,947 (624) (1,441) (1,187)
Minority interest - net investment gains (losses) (12) (9) (2) 2 2
Net investment gains (losses) tax benefit (provision) (766) (681) 220 509 417
-------- -------- -------- -------- --------
NET INVESTMENT GAINS (LOSSES), NET OF INCOME TAXES $ 1,403 $ 1,257 ($406) ($930) ($768)
======== ======== ======== ======== ========
(1) The fixed maturities yield is annualized and is based on quarterly average
amortized cost.
(2) Fixed maturities includes $805 million, $825 million, $883 million, $519
million and $780 million in ending carrying value, and $17 million, $14
million, $19 million, $16 million and $30 million of investment income
related to trading securities at or for year-to-date ended September 30,
2005, December 31, 2005, March 31, 2006, June 30, 2006 and September 30,
2006, respectively.
(3) Yields are annualized and based on quarterly average carrying values.
(4) Included in income from real estate and real estate joint ventures is $123
million, $150 million, $19 million, $47 million and $66 million related to
discontinued operations for year-to-date September 30, 2005, December 31,
2005, March 31, 2006, June 30, 2006 and September 30, 2006, respectively.
(5) Included in investment gains (losses) from real estate and real estate
joint ventures is $1,969 million, $2,125 million, ($5) million, ($8)
million and $91 million related to discontinued operations for
year-to-date September 30, 2005, December 31, 2005, March 31, 2006, June
30, 2006 and September 30, 2006, respectively.
(6) Included in income from other invested assets are scheduled periodic
settlement payments on derivative instruments that do not qualify for
hedge accounting under Statement of Financial Accounting Standards No. 133
of $63 million, $99 million, $39 million, $107 million and $203 million
for the year-to-date September 30, 2005, December 31, 2005, March 31,
2006, June 30, 2006 and September 30, 2006, respectively. These amounts
are excluded from net investment gains (losses). Additionally, excluded
from net investment gains (losses) is ($7) million, ($13) million, ($4)
million, ($1) million and $1 million for the year-to-date September 30,
2005, December 31, 2005, March 31, 2006, June 30, 2006 and September 30,
2006, respectively, related to settlement payments on derivatives used to
hedge interest rate and currency risk on policyholder account balances
that do not qualify for hedge accounting.
38
(METLIFE(R) LOGO)
METLIFE, INC.
GROSS UNREALIZED GAINS AND LOSSES AGING SCHEDULE
FIXED MATURITIES (1)
At September At December At March 31, At June 30, At September
30, 2005 31, 2005 2006 2006 30, 2006
--------------- --------------- --------------- --------------- ---------------
% of % of % of % of % of
Unaudited (Dollars in millions) Amount Total Amount Total Amount Total Amount Total Amount Total
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Less than 20% $1,758 95.9% $2,159 97.9% $4,379 98.7% $6,400 96.3% $2,501 98.3%
20% or more for less than six months 69 3.8% 39 1.8% 47 1.1% 232 3.5% 6 0.2%
20% or more for six months or greater 6 0.3% 7 0.3% 9 0.2% 10 0.2% 38 1.5%
------ ----- ------ ----- ------ ----- ------ ----- ------ -----
Total Gross Unrealized Losses $1,833 100.0% $2,205 100.0% $4,435 100.0% $6,642 100.0% $2,545 100.0%
------ ----- ------ ----- ------ ----- ------ ----- ------ -----
Total Gross Unrealized Gains $8,814 $8,329 $6,123 $4,994 $7,343
====== ====== ====== ====== ======
GROSS UNREALIZED GAINS AND LOSSES AGING SCHEDULE
EQUITY SECURITIES (1)
At September At December At March 31, At June 30, At September
30, 2005 31, 2005 2006 2006 30, 2006
--------------- --------------- --------------- --------------- ---------------
% of % of % of % of % of
Unaudited (Dollars in millions) Amount Total Amount Total Amount Total Amount Total Amount Total
------ ------ ------ ------ ------ ------ ------ ------ ------ ------
Less than 20% $ 29 70.7% $ 29 70.7% $ 30 75.0% $ 51 69.9% $ 26 60.5%
20% or more for less than six months 12 29.3% 12 29.3% 10 25.0% 22 30.1% 17 39.5%
20% or more for six months or greater 0 0.0% 0 0.0% 0 0.0% 0 0.0% 0 0.0%
------ ----- ------ ----- ------ ----- ------ ----- ------ -----
Total Gross Unrealized Losses $ 41 100.0% $ 41 100.0% $ 40 100.0% $ 73 100.0% $ 43 100.0%
------ ----- ------ ----- ------ ----- ------ ----- ------ -----
Total Gross Unrealized Gains $256 $295 $384 $338 $404
====== ====== ====== ====== ======
(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.
39
(METLIFE(R) LOGO)
METLIFE, INC.
SUMMARY OF REAL ESTATE
September 30, December 31, March 31, June 30, September 30,
Unaudited (Dollars in millions) 2005 2005 2006 2006 2006
------------- ------------ --------- -------- -------------
Wholly owned $3,919 $3,735 $3,902 $3,854 $3,691
Joint ventures 783 926 794 923 1,231
------ ------ ------ ------ ------
Subtotal 4,702 4,661 4,696 4,777 4,922
Foreclosed 3 4 4 9 9
------ ------ ------ ------ ------
Total Real Estate (1) $4,705 $4,665 $4,700 $4,786 $4,931
====== ====== ====== ====== ======
SUMMARY OF MORTGAGES AND CONSUMER LOANS
September 30, December 31, March 31, June 30, September 30,
Unaudited (Dollars in millions) 2005 2005 2006 2006 2006
------------- ------------ --------- -------- -------------
COMMERCIAL MORTGAGES $27,250 $28,022 $28,278 $29,533 $30,848
AGRICULTURAL MORTGAGES 7,474 7,700 7,689 7,817 8,056
CONSUMER LOANS 1,370 1,468 1,384 1,315 1,237
------- ------- ------- ------- -------
TOTAL $36,094 $37,190 $37,351 $38,665 $40,141
======= ======= ======= ======= =======
(1) Includes real estate held-for-sale and held-for-investment.
40
COMPANY RATINGS AS OF OCTOBER 27, 2006
Moody's Standard & A.M. Best Fitch
Investors Service Poor's Company Ratings
----------------- ---------- --------- -------
FINANCIAL STRENGTH RATINGS
- --------------------------
First MetLife Investors Insurance Co. NR AA* A+ NR
General American Life Insurance Company Aa2 AA* A+ AA
MetLife Insurance Company of Connecticut Aa2 AA* A+ AA
MetLife Insurance Company of Connecticut (Short-term rating) P-1 NR NR NR
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
MetLife Life and Annuity Company of Connecticut Aa2 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
Texas Life Insurance Company NR NR A NR
RGA Reinsurance Company A1 AA-* A+* AA-
CREDIT RATINGS
- --------------
GenAmerica Capital I
Preferred Stock A3 BBB+* NR A-
General American Life Insurance Company
Surplus Notes A1 A+* a+* NR
MetLife, Inc.
Senior Unsecured 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+
* Standard & Poor's and/or A.M. Best's outlook for these ratings is negative.
(P) Preliminary
NR Not Rated
41