NEW YORK--(BUSINESS WIRE)-- MetLife, Inc. (NYSE: MET) today announced its first quarter 2021 results.
First Quarter Results Summary
“MetLife delivered very strong financial performance in the first quarter with adjusted earnings per share growing 39 percent year over year,” said MetLife President and CEO Michel Khalaf. “In the quarter, we were very pleased to return approximately $1.4 billion to shareholders through share repurchases and common stock dividends.
“We believe the worst impact of the pandemic on our business performance is behind us, and we are well-positioned to create additional value for our stakeholders in the future.”
First Quarter 2021 Summary
($ in millions, except per share data) |
| Three months ended March 31, | |||||||||
|
| 2021 |
| 2020 |
| Change | |||||
Premiums, fees and other revenues |
| $ | 12,349 |
|
| $ | 11,336 |
|
| 9 | % |
Net investment income |
|
| 5,314 |
|
|
| 3,061 |
|
| 74 | % |
Net investment gains (losses) |
|
| 134 |
|
|
| (288 | ) |
|
| |
Net derivative gains (losses) |
|
| (2,235 | ) |
|
| 4,201 |
|
|
| |
Total revenues |
| $ | 15,562 |
|
| $ | 18,310 |
|
|
| |
|
|
|
|
|
|
| |||||
Total adjusted revenues |
| $ | 16,707 |
|
| $ | 15,537 |
|
| 8 | % |
Adjusted premiums, fees and other revenues |
| $ | 11,413 |
|
| $ | 11,216 |
|
| 2 | % |
Adjusted premiums, fees and other revenues, excluding pension risk transfers (PRT) |
| $ | 11,413 |
|
| $ | 11,225 |
|
| 2 | % |
|
|
|
|
|
|
| |||||
Net income (loss) |
| $ | 290 |
|
| $ | 4,366 |
|
| (93 | )% |
Net income (loss) per share |
| $ | 0.33 |
|
| $ | 4.75 |
|
| (93 | )% |
|
|
|
|
|
|
| |||||
Adjusted earnings |
| $ | 1,965 |
|
| $ | 1,449 |
|
| 36 | % |
Adjusted earnings per share |
| $ | 2.20 |
|
| $ | 1.58 |
|
| 39 | % |
Adjusted earnings, excluding total notable items |
| $ | 1,965 |
|
| $ | 1,449 |
|
| 36 | % |
Adjusted earnings, excluding total notable items per share |
| $ | 2.20 |
|
| $ | 1.58 |
|
| 39 | % |
|
|
|
|
|
|
| |||||
Book value per share |
| $ | 70.08 |
|
| $ | 72.62 |
|
| (3 | )% |
Book value per share, excluding AOCI other than FCTA |
| $ | 53.16 |
|
| $ | 52.36 |
|
| 2 | % |
|
|
|
|
|
|
| |||||
Expense ratio |
|
| 19.0 | % |
|
| 20.1 | % |
|
| |
Direct expense ratio, excluding total notable items related to direct expenses and PRT |
|
| 11.0 | % |
|
| 12.0 | % |
|
| |
Adjusted expense ratio, excluding total notable items related to other expenses and PRT |
|
| 19.0 | % |
|
| 19.7 | % |
|
| |
|
|
|
|
|
|
| |||||
ROE |
|
| 1.8 | % |
|
| 27.1 | % |
|
| |
Adjusted ROE, excluding AOCI other than FCTA |
|
| 16.5 | % |
|
| 12.6 | % |
|
| |
Adjusted ROE, excluding total notable items (excludes AOCI other than FCTA) |
|
| 16.5 | % |
|
| 12.6 | % |
|
|
MetLife reported first quarter 2021 premiums, fees and other revenues of $12.3 billion, up 9 percent over the first quarter of 2020. Adjusted premiums, fees and other revenues were $11.4 billion, up 2 percent, and up 1 percent on a constant currency basis from the prior-year period.
Net investment income was $5.3 billion, up 74 percent from the first quarter of 2020, driven by increases in the estimated fair value of certain securities that do not qualify as separate accounts under GAAP and higher variable investment income primarily due to higher private equity returns. Adjusted net investment income was $5.3 billion, up 23 percent from the prior-year period, driven by higher variable investment income due to higher private equity returns.
Net derivative losses amounted to $2.2 billion, or $1.8 billion after tax during the quarter, driven by higher long-term interest rates and stronger equity markets.
Net income was $290 million, compared to net income of $4.4 billion in the first quarter of 2020. On a per share basis, net income was $0.33, compared to net income of $4.75 in the prior-year period.
MetLife reported adjusted earnings of $2.0 billion, up 36 percent, and up 34 percent on a constant currency basis, from the first quarter of 2020. On a per share basis, adjusted earnings were $2.20, up 39 percent from the prior-year period.
Information regarding the non-GAAP and other financial measures included in this news release and reconciliation of the non-GAAP financial measures to GAAP measures are in “Non-GAAP and Other Financial Disclosures” below and in the tables that accompany this news release.
Supplemental slides for the first quarter of 2021, titled "1Q21 Supplemental Slides," are available on the MetLife Investor Relations website at www.metlife.com and in the Form 8-K furnished by MetLife to the U.S. Securities and Exchange Commission in connection with this earnings news release.
Adjusted Earnings by Segment Summary*
| Three months ended March 31, 2021 | |
Segment | Change from prior-year period | Change from prior-year period (on a constant currency basis) |
U.S. | 1% |
|
Asia | 78% | 70% |
Latin America | (58)% | (57)% |
Europe, the Middle East and Africa (EMEA) | (9)% | (11)% |
MetLife Holdings | 123% |
|
*The percentages in this table are on a reported and constant currency basis, and do not exclude notable items. For the three months ended March 31, 2021, U.S. results exclude Property & Casualty, which is reported as divested business. U.S. results for the three months ended March 31, 2020, include Property & Casualty.
Business Discussions
All comparisons of the results for the first quarter of 2021 in the business discussions that follow are with the first quarter of 2020, unless otherwise noted. The first quarter of 2021 notable items table follows the Business Discussions section of this release.
U.S.*
($ in millions) | Three months ended March 31, 2021 | Three months ended March 31, 2020 | Change |
Adjusted earnings | $784 | $780 | 1% |
Adjusted premiums, fees and other revenues | $6,392 | $6,189 | 3% |
Adjusted premiums, fees and other revenues, excluding PRT | $6,392 | $6,198 | 3% |
Notable item(s) | $0 | $0 |
|
* For the three months ended March 31, 2021, U.S. results exclude Property & Casualty, which is reported as divested business. U.S. results for the three months ended March 31, 2020, include Property & Casualty.
Group Benefits
($ in millions) | Three months ended March 31, 2021 | Three months ended March 31, 2020 | Change |
Adjustedearnings | $93 | $312 | (70)% |
Adjusted premiums, fees and other revenues | $5,636 | $4,851 | 16% |
Notable item(s) | $0 | $0 |
|
Retirement and Income Solutions
($ in millions) | Three months ended March 31, 2021 | Three months ended March 31, 2020 | Change |
Adjustedearnings | $691 | $359 | 92% |
Adjusted premiums, fees and other revenues | $756 | $417 | 81% |
Adjusted premiums, fees and other revenues, excluding PRT | $756 | $426 | 77% |
Notable item(s) | $0 | $0 |
|
ASIA
($ in millions) | At or for the three months ended March 31, 2021 | At or for the three months ended March 31, 2020 | Change |
Adjusted earnings | $623 | $350 | 78% |
Adjusted earnings (constant currency) | $623 | $367 | 70% |
Adjusted premiums, fees and other revenues | $2,161 | $2,080 | 4% |
Notable item(s) | $0 | $0 |
|
General account assets under management (at amortized cost) | $127,695 | $120,490 | 6% |
LATIN AMERICA
($ in millions) | Three months ended March 31, 2021 | Three months ended March 31, 2020 | Change |
Adjusted earnings | $40 | $95 | (58)% |
Adjusted earnings (constant currency) | $40 | $93 | (57)% |
Adjusted premiums, fees and other revenues | $875 | $921 | (5)% |
Notable item(s) | $0 | $0 |
|
EMEA
($ in millions) | Three months ended March 31, 2021 | Three months ended March 31, 2020 | Change |
Adjusted earnings | $71 | $78 | (9)% |
Adjusted earnings (constant currency) | $71 | $80 | (11)% |
Adjusted premiums, fees and other revenues | $678 | $697 | (3)% |
Notable item(s) | $0 | $0 |
|
METLIFE HOLDINGS
($ in millions) | Three months ended March 31, 2021 | Three months ended March 31, 2020 | Change |
Adjusted earnings | $618 | $277 | 123% |
Adjusted premiums, fees and other revenues | $1,163 | $1,233 | (6)% |
Notable item(s) | $0 | $0 |
|
CORPORATE & OTHER
($ in millions) | Three months ended March 31, 2021 | Three months ended March 31, 2020 | Change |
Adjusted earnings | $(171) | $(131) |
|
Notable item(s) | $0 | $0 |
|
INVESTMENTS
($ in millions) | Three months ended March 31, 2021 | Three months ended March 31, 2020 | Change |
Adjusted net investment income | $5,294 | $4,321 | 23% |
FIRST QUARTER 2021 NOTABLE ITEMS
($ in millions) | Adjusted Earnings | |||||||
Three months ended March 31, 2021 | ||||||||
Notable Items | U.S. | Asia | Latin America | EMEA | MetLife Holdings | Corporate & Other | Total | |
Group Benefits | Retirement and Income Solutions | |||||||
Total notable items | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
About MetLife
MetLife, Inc. (NYSE: MET), through its subsidiaries and affiliates (MetLife), is one of the world's leading financial services companies, providing insurance, annuities, employee benefits and asset management to help its individual and institutional customers navigate their changing world. Founded in 1868, MetLife has operations in more than 40 markets globally and holds leading positions in the United States, Japan, Latin America, Asia, Europe and the Middle East. For more information, visit www.metlife.com.
Conference Call
MetLife will hold its first quarter 2021 earnings conference call and audio webcast on Thursday, May 6, 2021, from 9-10 a.m. (ET). The conference call will be available live via telephone and the internet. To listen via telephone, dial 877-692-8955 (U.S.) or 234-720-6979 (outside the U.S.). The participant access code is 2510803. To listen to the conference call via the internet, visit www.metlife.com and click the link to the webcast on the MetLife Investor Relations web page. Those who want to listen to the call via telephone or the internet should dial in or go to the website at least 15 minutes prior to the call to register, and/or download and install any necessary audio software.
The conference call will be available for replay via telephone and the internet beginning at 11 a.m. (ET) on Thursday, May 6, 2021, until Thursday, May 13, 2021, at 11:59 p.m. (ET). To listen to a replay of the conference call via telephone, dial 866-207-1041 (U.S.) or 402-970-0847 (outside the U.S.). The access code for the replay is 7072093. To access the replay of the conference call over the internet, visit the above-mentioned website.
Non-GAAP and Other Financial Disclosures
Any references in this news release (except in this section and the tables that accompany this release) to: |
| should be read as, respectively: | ||||
|
|
|
| |||
(i) | net income (loss); |
| (i) | net income (loss) available to MetLife, Inc.’s common shareholders; | ||
(ii) | net income (loss) per share; |
| (ii) | net income (loss) available to MetLife, Inc.’s common shareholders per diluted common share; | ||
(iii) | adjusted earnings; |
| (iii) | adjusted earnings available to common shareholders; | ||
(iv) | adjusted earnings per share; |
| (iv) | adjusted earnings available to common shareholders per diluted common share; | ||
(v) | book value per share; |
| (v) | book value per common share; | ||
(vi) | book value per share, excluding AOCI other than FCTA; |
| (vi) | book value per common share, excluding AOCI other than FCTA; | ||
(vii) | book value per share-tangible common stockholders’ equity; |
| (vii) | book value per common share-tangible common stockholders’ equity; | ||
(viii) | return on equity; |
| (viii) | return on MetLife, Inc.’s common stockholders’ equity; | ||
(ix) | adjusted return on equity, excluding AOCI other than FCTA; and |
| (ix) | adjusted return on MetLife, Inc.’s common stockholders’ equity, excluding AOCI other than FCTA; and | ||
(x) | adjusted tangible return on equity. |
| (x) | adjusted return on MetLife, Inc.’s tangible common stockholders’ equity. |
In this news release, MetLife presents certain measures of its performance on a consolidated and segment basis that are not calculated in accordance with accounting principles generally accepted in the United States of America (GAAP). MetLife believes that these non-GAAP financial measures enhance the understanding for MetLife and its investors of MetLife's performance by highlighting the results of operations and the underlying profitability drivers of the business. Segment-specific financial measures are calculated using only the portion of consolidated results attributable to that specific segment.
The following non-GAAP financial measures should not be viewed as substitutes for the most directly comparable financial measures calculated in accordance with GAAP:
Non-GAAP financial measures: |
| Comparable GAAP financial measures: | ||||
|
|
|
| |||
(i) | total adjusted revenues; |
| (i) | total revenues; | ||
(ii) | total adjusted expenses; |
| (ii) | total expenses; | ||
(iii) | adjusted premiums, fees and other revenues; |
| (iii) | premiums, fees and other revenues; | ||
(iv) | adjusted premiums, fees and other revenues, excluding PRT; |
| (iv) | premiums, fees and other revenues; | ||
(v) | adjusted earnings; |
| (v) | net income (loss) | ||
(vi) | adjusted net investment income; |
| (vi) | net investment income; | ||
(vii) | adjusted capitalization of deferred policy acquisition costs (DAC); |
| (vii) | capitalization of DAC; | ||
(viii) | adjusted earnings available to common shareholders; |
| (viii) | net income (loss) available to MetLife, Inc.’s common shareholders; | ||
(ix) | adjusted earnings available to common shareholders, excluding total notable items; |
| (ix) | net income (loss) available to MetLife, Inc.’s common shareholders; | ||
(x) | adjusted earnings available to common shareholders per diluted common share; |
| (x) | net income (loss) available to MetLife, Inc.’s common shareholders per diluted common share; | ||
(xi) | adjusted earnings available to common shareholders, excluding total notable items, per diluted common share; |
| (xi) | net income (loss) available to MetLife, Inc.’s common shareholders per diluted common share; | ||
(xii) | adjusted return on equity; |
| (xii) | return on equity; | ||
(xiii) | adjusted return on equity, excluding AOCI other than FCTA; |
| (xiii) | return on equity; | ||
(xiv) | adjusted return on equity, excluding total notable items (excludes AOCI other than FCTA); |
| (xiv) | return on equity; | ||
(xv) | adjusted tangible return on equity; |
| (xv) | return on equity; | ||
(xvi) | investment portfolio gains (losses); |
| (xvi) | net investment gains (losses); | ||
(xvii) | derivative gains (losses); |
| (xvii) | net derivative gains (losses); | ||
(xviii) | total MetLife, Inc.’s tangible common stockholders’ equity; |
| (xviii) | total MetLife, Inc.’s stockholders’ equity; | ||
(xix) | total MetLife, Inc.’s tangible common stockholders’ equity, excluding total notable items; |
| (xix) | total MetLife, Inc.’s stockholders’ equity; | ||
(xx) | total MetLife, Inc.’s common stockholders’ equity, excluding AOCI other than FCTA; |
| (xx) | total MetLife, Inc.’s stockholders’ equity; | ||
(xxi) | total MetLife, Inc.’s common stockholders’ equity, excluding total notable items (excludes AOCI other than FCTA); |
| (xxi) | total MetLife, Inc.’s stockholders’ equity; | ||
(xxii) | book value per common share, excluding AOCI other than FCTA; |
| (xxii) | book value per common share; | ||
(xxiii) | book value per common share - tangible common stockholders' equity; |
| (xxiii) | book value per common share; | ||
(xxiv) | free cash flow of all holding companies; |
| (xxiv) | MetLife, Inc. (parent company only) net cash provided by (used in) operating activities; | ||
(xxv) | adjusted other expenses; |
| (xxv) | other expenses; | ||
(xxvi) | adjusted other expenses, net of adjusted capitalization of DAC; |
| (xxvi) | other expenses, net of capitalization of DAC;
| ||
(xxvii) | adjusted other expenses, net of adjusted capitalization of DAC, excluding total notable items related to adjusted other expenses; |
| (xxvii) | other expenses, net of capitalization of DAC; | ||
(xxviii) | adjusted expense ratio; |
| (xxviii) | expense ratio; | ||
(xxix) | adjusted expense ratio, excluding total notable items related to adjusted other expenses and PRT; |
| (xxix) | expense ratio;
| ||
(xxx) | direct expenses; |
| (xxx) | other expenses; | ||
(xxxi) | direct expenses, excluding total notable items related to direct expenses; |
| (xxxi) | other expenses;
| ||
(xxxii) | direct expense ratio; and |
| (xxxii) | expense ratio; and | ||
(xxxiii) | direct expense ratio, excluding total notable items related to direct expenses and PRT. |
| (xxxiii) | expense ratio. |
Any of these financial measures shown on a constant currency basis reflect the impact of changes in foreign currency exchange rates and are calculated using the average foreign currency exchange rates for the most recent period and applied to the comparable prior period.
Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in this earnings news release and in this period’s quarterly financial supplement, which is available at www.metlife.com.
MetLife’s definitions of non-GAAP and other financial measures discussed in this news release may differ from those used by other companies:
Adjusted earnings and related measures
These measures are used by management to evaluate performance and allocate resources. Consistent with GAAP guidance for segment reporting, adjusted earnings and components of, or other financial measures based on, adjusted earnings are also MetLife’s GAAP measures of segment performance. Adjusted earnings and other financial measures based on adjusted earnings are also the measures by which MetLife senior management’s and many other employees’ performance is evaluated for the purposes of determining their compensation under applicable compensation plans. Adjusted earnings and other financial measures based on adjusted earnings allow analysis of MetLife's performance relative to its business plan and facilitate comparisons to industry results.
Adjusted earnings is defined as adjusted revenues less adjusted expenses, net of income tax. Adjusted loss is defined as negative adjusted earnings. Adjusted earnings available to common shareholders is defined as adjusted earnings less preferred stock dividends.
Adjusted revenues and adjusted expenses
These financial measures, along with the related adjusted premiums, fees and other revenues, focus on our primary businesses principally by excluding the impact of market volatility, which could distort trends, and revenues and costs related to non-core products and certain entities required to be consolidated under GAAP. Also, these measures exclude results of discontinued operations under GAAP and other businesses that have been or will be sold or exited by MetLife but do not meet the discontinued operations criteria under GAAP and are referred to as divested businesses. Divested businesses also include the net impact of transactions with exited businesses that have been eliminated in consolidation under GAAP and costs relating to businesses that have been or will be sold or exited by MetLife that do not meet the criteria to be included in results of discontinued operations under GAAP.
Adjusted revenues also excludes net investment gains (losses) (NIGL) and net derivative gains (losses) (NDGL). Adjusted expenses also excludes goodwill impairments.
The following additional adjustments are made to revenues, in the line items indicated, in calculating adjusted revenues:
The following additional adjustments are made to expenses, in the line items indicated, in calculating adjusted expenses:
Adjusted earnings also excludes the recognition of certain contingent assets and liabilities that could not be recognized at acquisition or adjusted for during the measurement period under GAAP business combination accounting guidance.
The tax impact of the adjustments mentioned above are calculated net of the U.S. or foreign statutory tax rate, which could differ from MetLife’s effective tax rate. Additionally, the provision for income tax (expense) benefit also includes the impact related to the timing of certain tax credits, as well as certain tax reforms.
In addition, adjusted earnings available to common shareholders excludes the impact of preferred stock redemption premium, which is reported as a reduction to net income (loss) available to MetLife, Inc.’s common shareholders.
Investment portfolio gains (losses) and derivative gains (losses)
These are measures of investment and hedging activity. Investment portfolio gains (losses) principally excludes amounts that are reported within net investment gains (losses) but do not relate to the performance of the investment portfolio, such as gains (losses) on sales and divestitures of businesses and goodwill impairment, as well as investment portfolio gains (losses) of divested businesses. Derivative gains (losses) principally excludes earned income on derivatives and amortization of premium on derivatives, where such derivatives are either hedges of investments or are used to replicate certain investments, and where such derivatives do not qualify for hedge accounting. This earned income and amortization of premium is reported within adjusted earnings and not within derivative gains (losses).
Return on equity, allocated equity, tangible equity and related measures
The above measures represent a level of equity consistent with the view that, in the ordinary course of business, MetLife does not plan to sell most investments for the sole purpose of realizing gains or losses. Also, refer to the utilization of adjusted earnings and components of, or other financial measures based on, adjusted earnings mentioned above.
The above measures are, when considered in conjunction with regulatory capital ratios, a measure of capital adequacy.
Expense ratio, direct expense ratio, adjusted expense ratio and related measures
General account (GA) assets under management (GA AUM) and related measures
GA AUM is used by MetLife to describe assets in its GA investment portfolio which are actively managed and stated at estimated fair value. GA AUM is comprised of GA total investments and cash and cash equivalents, excluding policy loans, contractholder-directed equity securities, fair value option securities and certain other invested assets, as substantially all of these assets are not actively managed in MetLife’s GA investment portfolio. Mortgage loans (including commercial, agricultural and residential) and real estate and real estate joint ventures included in GA AUM (at net asset value, net of deduction for encumbering debt) have been adjusted from carrying value to estimated fair value. At the segment level, intersegment balances (intercompany activity, primarily related to investments in subsidiaries, that eliminate at the MetLife consolidated level) are excluded from GA AUM.
GA AUM (at amortized cost) excludes the following adjustments: (i) unrealized gain (loss) on investments carried at estimated fair value and (ii) adjustments from carrying value to estimated fair value on mortgage loans (including commercial, agricultural and residential) and real estate and real estate joint ventures. GA AUM (at amortized cost) is presented net of related allowance for credit loss.
Statistical sales information:
Sales statistics do not correspond to revenues under GAAP, but are used as relevant measures of business activity.
The following additional information is relevant to an understanding of MetLife’s performance results and outlook:
Forward-Looking Statements
This news release may contain or incorporate by reference information that includes or is based upon forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements give expectations or forecasts of future events and do not relate strictly to historical or current facts. They use words and terms such as “2Q,” “2Q21,” “2022,” “ahead,” “believe,” “consistent,” “continue,” “ensure,” “estimate,” “expect,” “future,” “growth,” “guidance,” “if,” “improving,” “long-term,” “ongoing,” “on track,” “outlook,” “position,” “promising,” “Q3,” “remain,” “remainder of 2021,” “return,” “sustainable,” “target,” “trend,” “well-positioned,” and “will,” and other words and terms of similar meaning, in each of their forms of speech, or that are tied to future periods or future performance. They include statements relating to future actions, prospective services or products, future performance or results of current and anticipated services or products, future sales efforts, future expenses, the outcome of contingencies such as legal proceedings, and future trends in operations and financial results.
Many factors will determine the results of MetLife, Inc., its subsidiaries and affiliates, and they involve unpredictable risks and uncertainties. Our forward-looking statements depend on assumptions, expectations, and understanding the economic environment, but they may be inaccurate and may change. MetLife, Inc. does not guarantee any future performance. Results could differ materially from those expressed or implied in forward-looking statements. The risks, uncertainties, and other factors identified in MetLife, Inc.’s filings with the U.S. Securities and Exchange Commission, and others, may cause such differences. These factors include:
(1) | economic condition difficulties, including risks relating to public health, interest rates, credit spreads, equity, real estate, obligors and counterparties, currency exchange rates, derivatives, and terrorism and security; | |
(2) | global capital and credit market adversity; | |
(3) | credit facility inaccessibility; | |
(4) | financial strength or credit ratings downgrades; | |
(5) | unavailability, unaffordability, or inadequate reinsurance; | |
(6) | statutory life insurance reserve financing costs or limited market capacity; | |
(7) | legal, regulatory, and supervisory and enforcement policy changes; | |
(8) | tax rate or tax laws changes; | |
(9) | litigation and regulatory investigations; | |
(10) | London Interbank Offered Rate termination and transition to alternative reference rates; | |
(11) | unsuccessful efforts to meet all environmental, social, and governance standards or to enhance our sustainability; | |
(12) | MetLife, Inc.’s inability to pay dividends and repurchase common stock; | |
(13) | MetLife, Inc.’s subsidiaries’ inability to pay it dividends; | |
(14) | investment defaults, downgrades, or volatility; | |
(15) | investment sales or lending difficulties; | |
(16) | collateral or derivative-related payments; | |
(17) | investment valuation, allowances, or impairments changes; | |
(18) | claims or other results that differ from our estimates, assumptions, or models; | |
(19) | global political, legal, or operational risks; | |
(20) | business competition; | |
(21) | technological change; | |
(22) | catastrophes; | |
(23) | climate changes or responses to it; | |
(24) | amortization of DAC, deferred sales inducements (DSI), VOBA, or value of customer relationships acquired; | |
(25) | product guarantee volatility, costs, and counterpart risks; | |
(26) | risk management failures; | |
(27) | insufficient protection from operational risks; | |
(28) | confidential information protection or other cybersecurity or disaster recovery failures; | |
(29) | accounting standards changes; | |
(30) | excessive risk-taking; | |
(31) | marketing and distribution difficulties; | |
(32) | pension and other postretirement benefit assumption changes; | |
(33) | inability to protect our intellectual property or avoid infringement claims; | |
(34) | acquisition, integration, growth, disposition, or reorganization difficulties; | |
(35) | Brighthouse Financial, Inc. separation risks; | |
(36) | MetLife, Inc.’s Board of Directors influence over the outcome of stockholder votes through the voting provisions of the MetLife Policyholder Trust; and | |
(37) | legal- and corporate governance-related effects on business combinations. |
MetLife, Inc. will not publicly correct or update any forward-looking statements if MetLife, Inc. believes it is not likely to achieve them or for any other reasons. Please consult any further disclosures MetLife, Inc. makes on related subjects in reports to the U.S. Securities and Exchange Commission.
MetLife, Inc. | ||||||||
GAAP Interim Condensed Consolidated Statements of Operations | ||||||||
(Unaudited) | ||||||||
(In millions) | ||||||||
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| For the Three Months Ended | ||||||
|
| March 31, | ||||||
|
| 2021 |
| 2020 | ||||
Revenues |
|
|
|
| ||||
Premiums |
| $ | 10,327 |
|
| $ | 9,466 |
|
Universal life and investment-type product policy fees |
|
| 1,391 |
|
|
| 1,431 |
|
Net investment income |
|
| 5,314 |
|
|
| 3,061 |
|
Other revenues |
|
| 631 |
|
|
| 439 |
|
Net investment gains (losses) |
|
| 134 |
|
|
| (288 | ) |
Net derivative gains (losses) |
|
| (2,235 | ) |
|
| 4,201 |
|
Total revenues |
|
| 15,562 |
|
|
| 18,310 |
|
|
|
|
|
| ||||
Expenses |
|
|
|
| ||||
Policyholder benefits and claims |
|
| 10,523 |
|
|
| 9,022 |
|
Interest credited to policyholder account balances |
|
| 1,351 |
|
|
| 80 |
|
Policyholder dividends |
|
| 247 |
|
|
| 292 |
|
Capitalization of DAC |
|
| (775 | ) |
|
| (774 | ) |
Amortization of DAC and VOBA |
|
| 590 |
|
|
| 788 |
|
Amortization of negative VOBA |
|
| (9 | ) |
|
| (10 | ) |
Interest expense on debt |
|
| 228 |
|
|
| 222 |
|
Other expenses |
|
| 3,116 |
|
|
| 3,047 |
|
Total expenses |
|
| 15,271 |
|
|
| 12,667 |
|
|
|
|
|
| ||||
Income (loss) before provision for income tax |
|
| 291 |
|
|
| 5,643 |
|
Provision for income tax expense (benefit) |
|
| (72 | ) |
|
| 1,242 |
|
Net income (loss) |
|
| 363 |
|
|
| 4,401 |
|
Less: Net income (loss) attributable to noncontrolling interests |
|
| 5 |
|
|
| 3 |
|
Net income (loss) attributable to MetLife, Inc. |
|
| 358 |
|
|
| 4,398 |
|
Less: Preferred stock dividends |
|
| 68 |
|
|
| 32 |
|
Preferred stock redemption premium |
|
| — |
|
|
| — |
|
Net income (loss) available to MetLife, Inc.'s common shareholders |
| $ | 290 |
|
| $ | 4,366 |
|
|
|
|
|
| ||||
See footnotes on last page. |
|
|
|
| ||||
MetLife, Inc. | ||||||||||||||||
(Unaudited) | ||||||||||||||||
(In millions, except per share data) | ||||||||||||||||
|
|
| ||||||||||||||
|
| For the Three Months Ended | ||||||||||||||
|
| March 31, | ||||||||||||||
|
| 2021 |
| 2020 | ||||||||||||
Reconciliation to Adjusted Earnings Available to Common Shareholders |
|
|
| Earnings Per Weighted Average Common Share Diluted (1) |
|
|
| Earnings Per Weighted Average Common Share Diluted (1) | ||||||||
Net income (loss) available to MetLife, Inc.'s common shareholders |
| $ | 290 |
|
| $ | 0.33 |
|
| $ | 4,366 |
|
| $ | 4.75 |
|
|
|
|
|
|
|
|
|
| ||||||||
Adjustments from net income (loss) available to common shareholders to adjusted earnings available to common shareholders: |
|
|
|
|
|
|
|
| ||||||||
Less: Net investment gains (losses) |
|
| 134 |
|
|
| 0.15 |
|
|
| (288 | ) |
|
| (0.31 | ) |
Net derivative gains (losses) |
|
| (2,235 | ) |
|
| (2.51 | ) |
|
| 4,201 |
|
|
| 4.57 |
|
Premiums |
|
| 865 |
|
|
| 0.97 |
|
|
| 32 |
|
|
| 0.03 |
|
Universal life and investment-type product policy fees |
|
| 25 |
|
|
| 0.03 |
|
|
| 46 |
|
|
| 0.05 |
|
Net investment income |
|
| 20 |
|
|
| 0.02 |
|
|
| (1,260 | ) |
|
| (1.37 | ) |
Other revenues |
|
| 46 |
|
|
| 0.05 |
|
|
| 42 |
|
|
| 0.05 |
|
Policyholder benefits and claims and policyholder dividends |
|
| (664 | ) |
|
| (0.74 | ) |
|
| 49 |
|
|
| 0.05 |
|
Interest credited to policyholder account balances |
|
| (210 | ) |
|
| (0.24 | ) |
|
| 1,138 |
|
|
| 1.23 |
|
Capitalization of DAC |
|
| 89 |
|
|
| 0.10 |
|
|
| 3 |
|
|
| — |
|
Amortization of DAC and VOBA |
|
| (82 | ) |
|
| (0.09 | ) |
|
| (49 | ) |
|
| (0.05 | ) |
Amortization of negative VOBA |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
Interest expense on debt |
|
| (1 | ) |
|
| — |
|
|
| — |
|
|
| — |
|
Other expenses |
|
| (262 | ) |
|
| (0.29 | ) |
|
| (66 | ) |
|
| (0.07 | ) |
Goodwill impairment |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
Provision for income tax (expense) benefit |
|
| 605 |
|
|
| 0.69 |
|
|
| (928 | ) |
|
| (1.01 | ) |
Add: Net income (loss) attributable to noncontrolling interests |
|
| 5 |
|
|
| 0.01 |
|
|
| 3 |
|
|
| — |
|
Preferred stock redemption premium |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
Adjusted earnings available to common shareholders |
|
| 1,965 |
|
|
| 2.20 |
|
|
| 1,449 |
|
|
| 1.58 |
|
Less: Total notable items (2) |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
Adjusted earnings available to common shareholders, excluding total notable items (2) |
| $ | 1,965 |
|
| $ | 2.20 |
|
| $ | 1,449 |
|
| $ | 1.58 |
|
|
|
|
|
|
|
|
|
| ||||||||
Adjusted earnings available to common shareholders on a constant currency basis |
| $ | 1,965 |
|
| $ | 2.20 |
|
| $ | 1,466 |
|
| $ | 1.59 |
|
Adjusted earnings available to common shareholders, excluding total notable items, on a constant currency basis (2) |
| $ | 1,965 |
|
| $ | 2.20 |
|
| $ | 1,466 |
|
| $ | 1.59 |
|
|
|
|
|
|
|
|
|
| ||||||||
Weighted average common shares outstanding - diluted |
|
|
|
| 892.1 |
|
|
|
|
| 920.0 |
| ||||
|
|
|
|
|
|
|
|
| ||||||||
See footnotes on last page. |
|
|
|
|
|
|
|
| ||||||||
MetLife, Inc. | ||||||||
(Unaudited) | ||||||||
(In millions) | ||||||||
|
|
|
| |||||
| For the Three Months Ended | |||||||
| March 31, | |||||||
| 2021 |
| 2020 | |||||
Premiums, Fees and Other Revenues |
|
|
| |||||
Premiums, fees and other revenues | $ | 12,349 |
|
| $ | 11,336 |
| |
Less: Unearned revenue adjustments |
| — |
|
|
| 18 |
| |
GMIB fees |
| 25 |
|
|
| 26 |
| |
Settlement of foreign currency earnings hedges |
| — |
|
|
| — |
| |
TSA fees |
| 35 |
|
|
| 42 |
| |
Divested businesses |
| 876 |
|
|
| 34 |
| |
Adjusted premiums, fees and other revenues | $ | 11,413 |
|
| $ | 11,216 |
| |
|
|
|
| |||||
Adjusted premiums, fees and other revenues, on a constant currency basis | $ | 11,413 |
|
| $ | 11,324 |
| |
Less: Pension risk transfer (PRT) (3) |
| — |
|
|
| (9 | ) | |
Adjusted premiums, fees and other revenues, excluding PRT, on a constant currency basis | $ | 11,413 |
|
| $ | 11,333 |
| |
|
|
|
| |||||
Net Investment Income |
|
|
| |||||
Net investment income | $ | 5,314 |
|
| $ | 3,061 |
| |
Less: Investment hedge adjustments |
| (220 | ) |
|
| (138 | ) | |
Operating joint venture adjustments |
| — |
|
|
| — |
| |
Unit-linked contract income |
| 207 |
|
|
| (1,140 | ) | |
Securitization entities income |
| — |
|
|
| — |
| |
Certain partnership distributions |
| (3 | ) |
|
| (4 | ) | |
Divested businesses |
| 36 |
|
|
| 22 |
| |
Adjusted net investment income | $ | 5,294 |
|
| $ | 4,321 |
| |
|
|
|
| |||||
Revenues and Expenses |
|
|
| |||||
Total revenues | $ | 15,562 |
|
| $ | 18,310 |
| |
Less: Net investment gains (losses) |
| 134 |
|
|
| (288 | ) | |
Less: Net derivative gains (losses) |
| (2,235 | ) |
|
| 4,201 |
| |
Less: Adjustments related to net investment gains (losses) and net derivative gains (losses) |
| — |
|
|
| 18 |
| |
Less: Other adjustments to revenues: |
|
|
| |||||
GMIB fees |
| 25 |
|
|
| 26 |
| |
Investment hedge adjustments |
| (220 | ) |
|
| (138 | ) | |
Operating joint venture adjustments |
| — |
|
|
| — |
| |
Unit-linked contract income |
| 207 |
|
|
| (1,140 | ) | |
Securitization entities income |
| — |
|
|
| — |
| |
Certain partnership distributions |
| (3 | ) |
|
| (4 | ) | |
Settlement of foreign currency earnings hedges |
| — |
|
|
| — |
| |
TSA fees |
| 35 |
|
|
| 42 |
| |
Divested businesses |
| 912 |
|
|
| 56 |
| |
Total adjusted revenues | $ | 16,707 |
|
| $ | 15,537 |
| |
|
|
|
| |||||
Total expenses | $ | 15,271 |
|
| $ | 12,667 |
| |
Less: Adjustments related to net investment gains (losses) and net derivative gains (losses) |
| (3 | ) |
|
| 30 |
| |
Less: Goodwill impairment |
| — |
|
|
| — |
| |
Less: Other adjustments to expenses: |
|
|
| |||||
PBC hedge adjustments |
| 9 |
|
|
| 9 |
| |
Inflation and pass-through adjustments |
| (78 | ) |
|
| 48 |
| |
GMIB costs and amortization of DAC and VOBA related to GMIB fees and GMIB costs |
| 115 |
|
|
| (128 | ) | |
Market value adjustments and amortization of DAC, VOBA and negative VOBA related to market value adjustments |
| 23 |
|
|
| 11 |
| |
PAB hedge adjustments |
| — |
|
|
| (5 | ) | |
Unit-linked contract costs |
| 210 |
|
|
| (1,138 | ) | |
Securitization entities debt expense |
| — |
|
|
| — |
| |
Noncontrolling interest |
| (6 | ) |
|
| (3 | ) | |
Regulatory implementation costs |
| (3 | ) |
|
| 2 |
| |
Acquisition, integration and other costs |
| 4 |
|
|
| 6 |
| |
TSA fees |
| 35 |
|
|
| 42 |
| |
Divested businesses |
| 824 |
|
|
| 51 |
| |
Total adjusted expenses | $ | 14,141 |
|
| $ | 13,742 |
| |
|
|
|
| |||||
See footnotes on last page. |
|
|
| |||||
MetLife, Inc. | ||||||||
(Unaudited) | ||||||||
(In millions, except per share and ratio data) | ||||||||
|
|
| ||||||
|
| For the Three Months Ended | ||||||
|
| March 31, | ||||||
|
| 2021 |
| 2020 | ||||
Expense Detail and Ratios |
|
|
|
| ||||
|
|
|
|
| ||||
Reconciliation of Capitalization of DAC to Adjusted Capitalization of DAC |
|
|
|
| ||||
Capitalization of DAC |
| $ | (775 | ) |
| $ | (774 | ) |
Less: Divested businesses |
|
| (89 | ) |
|
| (3 | ) |
Adjusted capitalization of DAC |
| $ | (686 | ) |
| $ | (771 | ) |
|
|
|
|
| ||||
Reconciliation of Other Expenses to Adjusted Other Expenses |
|
|
|
| ||||
Other expenses |
| $ | 3,116 |
|
| $ | 3,047 |
|
Less: Noncontrolling interests |
|
| (6 | ) |
|
| (3 | ) |
Less: Regulatory implementation costs |
|
| (3 | ) |
|
| 2 |
|
Less: Acquisition, integration and other costs |
|
| 4 |
|
|
| 6 |
|
Less: TSA fees |
|
| 35 |
|
|
| 42 |
|
Less: Divested businesses |
|
| 232 |
|
|
| 19 |
|
Adjusted other expenses |
| $ | 2,854 |
|
| $ | 2,981 |
|
|
|
|
|
| ||||
Other Detail and Ratios |
|
|
|
| ||||
Other expenses |
| $ | 3,116 |
|
| $ | 3,047 |
|
Capitalization of DAC |
|
| (775 | ) |
|
| (774 | ) |
Other expenses, net of capitalization of DAC |
| $ | 2,341 |
|
| $ | 2,273 |
|
|
|
|
|
| ||||
Premiums, fees and other revenues |
| $ | 12,349 |
|
| $ | 11,336 |
|
|
|
|
|
| ||||
Expense ratio |
|
| 19.0 | % |
|
| 20.1 | % |
|
|
|
|
| ||||
Direct expenses |
| $ | 1,259 |
|
| $ | 1,344 |
|
Less: Total notable items related to direct expenses (2) |
|
| — |
|
|
| — |
|
Direct expenses, excluding total notable items related to direct expenses (2) |
| $ | 1,259 |
|
| $ | 1,344 |
|
|
|
|
|
| ||||
Adjusted other expenses |
| $ | 2,854 |
|
| $ | 2,981 |
|
Adjusted capitalization of DAC |
|
| (686 | ) |
|
| (771 | ) |
Adjusted other expenses, net of adjusted capitalization of DAC |
|
| 2,168 |
|
|
| 2,210 |
|
Less: Total notable items related to adjusted other expenses (2) |
|
| — |
|
|
| — |
|
Adjusted other expenses, net of adjusted capitalization of DAC, excluding total notable items related to adjusted other expenses (2) |
| $ | 2,168 |
|
| $ | 2,210 |
|
|
|
|
|
| ||||
Adjusted premiums, fees and other revenues |
| $ | 11,413 |
|
| $ | 11,216 |
|
Less: PRT |
|
| — |
|
|
| (9 | ) |
Adjusted premiums, fees and other revenues, excluding PRT |
| $ | 11,413 |
|
| $ | 11,225 |
|
|
|
|
|
| ||||
Direct expense ratio |
|
| 11.0 | % |
|
| 12.0 | % |
Direct expense ratio, excluding total notable items related to direct expenses and PRT (2) |
|
| 11.0 | % |
|
| 12.0 | % |
Adjusted expense ratio |
|
| 19.0 | % |
|
| 19.7 | % |
Adjusted expense ratio, excluding total notable items related to adjusted other expenses and PRT (2) |
|
| 19.0 | % |
|
| 19.7 | % |
|
|
|
|
| ||||
See footnotes on last page. | ||||||||
MetLife, Inc. | ||||||||
(Unaudited) | ||||||||
(In millions, except per share data) | ||||||||
|
|
| ||||||
|
| March 31, | ||||||
Equity Details |
| 2021 |
| 2020 | ||||
Total MetLife, Inc.'s stockholders' equity |
| $ | 65,864 |
|
| $ | 70,221 |
|
Less: Preferred stock |
|
| 4,312 |
|
|
| 4,312 |
|
MetLife, Inc.'s common stockholders' equity |
|
| 61,552 |
|
|
| 65,909 |
|
Less: Net unrealized investment gains (losses), net of income tax |
|
| 16,712 |
|
|
| 20,369 |
|
Defined benefit plans adjustment, net of income tax |
|
| (1,848 | ) |
|
| (1,985 | ) |
Total MetLife, Inc.'s common stockholders' equity, excluding AOCI other than FCTA |
|
| 46,688 |
|
|
| 47,525 |
|
Less: Goodwill, net of income tax |
|
| 9,571 |
|
|
| 8,828 |
|
VODA and VOCRA, net of income tax |
|
| 807 |
|
|
| 276 |
|
Total MetLife, Inc.'s tangible common stockholders' equity |
| $ | 36,310 |
|
| $ | 38,421 |
|
|
|
| ||||||
|
| March 31, | ||||||
|
| 2021 |
| 2020 | ||||
Total MetLife, Inc.'s common stockholders' equity, excluding AOCI other than FCTA |
| $ | 46,688 |
|
| $ | 47,525 |
|
Less: Accumulated year-to-date total notable items (2) |
|
| — |
|
|
| — |
|
Total MetLife, Inc.'s common stockholders' equity, excluding total notable items (excludes AOCI other than FCTA) (2) |
|
| 46,688 |
|
|
| 47,525 |
|
Less: Goodwill, net of income tax |
|
| 9,571 |
|
|
| 8,828 |
|
VODA and VOCRA, net of income tax |
|
| 807 |
|
|
| 276 |
|
Total MetLife, Inc.'s tangible common stockholders' equity, excluding total notable items (2) |
| $ | 36,310 |
|
| $ | 38,421 |
|
|
|
|
|
| ||||
|
| March 31, | ||||||
Book Value (4) |
| 2021 |
| 2020 | ||||
Book value per common share |
| $ | 70.08 |
|
| $ | 72.62 |
|
Less: Net unrealized investment gains (losses), net of income tax |
|
| 19.02 |
|
|
| 22.45 |
|
Defined benefit plans adjustment, net of income tax |
|
| (2.10 | ) |
|
| (2.19 | ) |
Book value per common share, excluding AOCI other than FCTA |
|
| 53.16 |
|
|
| 52.36 |
|
Less: Goodwill, net of income tax |
|
| 10.90 |
|
|
| 9.73 |
|
VODA and VOCRA, net of income tax |
|
| 0.92 |
|
|
| 0.30 |
|
Book value per common share - tangible common stockholders' equity |
| $ | 41.34 |
|
| $ | 42.33 |
|
|
|
|
|
| ||||
Common shares outstanding, end of period (5) |
|
| 878.3 |
|
|
| 907.6 |
|
|
|
|
|
| ||||
|
|
|
|
| ||||
|
| For the Three Months Ended | ||||||
|
| March 31, | ||||||
Average Common Stockholders' Equity |
| 2021 |
| 2020 | ||||
Average common stockholders' equity |
| $ | 65,899 |
|
| $ | 64,357 |
|
Average common stockholders' equity, excluding AOCI other than FCTA |
| $ | 47,534 |
|
| $ | 46,175 |
|
Average common stockholders' equity, excluding total notable items (excludes AOCI other than FCTA) (2) |
| $ | 47,534 |
|
| $ | 46,175 |
|
Average tangible common stockholders' equity |
| $ | 36,878 |
|
| $ | 36,996 |
|
Average tangible common stockholders' equity, excluding total notable items (2) |
| $ | 36,878 |
|
| $ | 36,996 |
|
|
|
|
|
| ||||
See footnotes on last page. |
|
|
|
| ||||
MetLife, Inc. | ||||||
(Unaudited) | ||||||
|
|
|
|
| ||
|
| For the Three Months Ended | ||||
|
| March 31, (6) | ||||
|
| 2021 |
| 2020 | ||
Return on Equity |
|
|
|
| ||
Return on MetLife, Inc.'s: |
|
|
|
| ||
Common stockholders' equity |
| 1.8 | % |
| 27.1 | % |
|
|
|
|
| ||
Adjusted return on MetLife, Inc.'s: |
|
|
|
| ||
Common stockholders' equity |
| 11.9 | % |
| 9.0 | % |
Common stockholders' equity, excluding AOCI other than FCTA |
| 16.5 | % |
| 12.6 | % |
Common stockholders' equity, excluding total notable items (excludes AOCI other than FCTA) (2) |
| 16.5 | % |
| 12.6 | % |
Tangible common stockholders' equity (7) |
| 21.5 | % |
| 15.8 | % |
Tangible common stockholders' equity, excluding total notable items (2), (7) |
| 21.5 | % |
| 15.8 | % |
|
|
|
|
| ||
Adjusted Return on Allocated Equity: |
|
|
|
| ||
U.S. |
| 33.7 | % |
| 28.2 | % |
Asia |
| 17.0 | % |
| 9.8 | % |
Latin America |
| 5.8 | % |
| 12.4 | % |
EMEA |
| 10.0 | % |
| 10.9 | % |
MetLife Holdings |
| 23.7 | % |
| 11.2 | % |
|
|
|
|
| ||
Adjusted Return on Allocated Tangible Equity: |
|
|
|
| ||
U.S. |
| 39.3 | % |
| 32.4 | % |
Asia |
| 25.4 | % |
| 14.8 | % |
Latin America |
| 9.1 | % |
| 20.3 | % |
EMEA |
| 17.1 | % |
| 19.2 | % |
MetLife Holdings |
| 26.0 | % |
| 12.5 | % |
|
|
|
|
| ||
See footnotes on last page. |
|
|
|
| ||
MetLife, Inc. | |||||||
Adjusted Earnings Available to Common Shareholders | |||||||
(Unaudited) | |||||||
(In millions) | |||||||
|
|
|
|
| |||
|
| For the Three Months Ended | |||||
|
| March 31, | |||||
|
| 2021 |
| 2020 | |||
|
|
|
|
| |||
U.S. (3), (8): |
|
|
|
| |||
|
|
|
|
| |||
Adjusted earnings available to common shareholders |
| $ | 784 |
| $ | 780 |
|
Less: Total notable items (2) |
|
| — |
|
| — |
|
Adjusted earnings available to common shareholders, excluding total notable items (2) |
| $ | 784 |
| $ | 780 |
|
|
|
|
|
| |||
|
|
|
|
| |||
Adjusted premiums, fees and other revenues |
| $ | 6,392 |
| $ | 6,189 |
|
Less: PRT |
|
| — |
|
| (9 | ) |
Adjusted premiums, fees and other revenues, excluding PRT |
| $ | 6,392 |
| $ | 6,198 |
|
|
|
|
|
| |||
|
|
|
|
| |||
Group Benefits (3): |
|
|
|
| |||
|
|
|
|
| |||
Adjusted earnings available to common shareholders |
| $ | 93 |
| $ | 312 |
|
Less: Total notable items (2) |
|
| — |
|
| — |
|
Adjusted earnings available to common shareholders, excluding total notable items (2) |
| $ | 93 |
| $ | 312 |
|
|
|
|
|
| |||
|
|
|
|
| |||
Adjusted premiums, fees and other revenues |
| $ | 5,636 |
| $ | 4,851 |
|
|
|
|
|
| |||
|
|
|
|
| |||
Retirement & Income Solutions (3): |
|
|
|
| |||
|
|
|
|
| |||
Adjusted earnings available to common shareholders |
| $ | 691 |
| $ | 359 |
|
Less: Total notable items (2) |
|
| — |
|
| — |
|
Adjusted earnings available to common shareholders, excluding total notable items (2) |
| $ | 691 |
| $ | 359 |
|
|
|
|
|
| |||
|
|
|
|
| |||
Adjusted premiums, fees and other revenues |
| $ | 756 |
| $ | 417 |
|
Less: PRT |
|
| — |
|
| (9 | ) |
Adjusted premiums, fees and other revenues, excluding PRT |
| $ | 756 |
| $ | 426 |
|
|
|
|
|
| |||
|
|
|
|
| |||
|
|
|
|
| |||
Property & Casualty (3), (8): |
|
|
|
| |||
|
|
|
|
| |||
Adjusted earnings available to common shareholders |
| $ | — |
| $ | 109 |
|
Less: Total notable items (2) |
|
| — |
|
| — |
|
Adjusted earnings available to common shareholders, excluding total notable items (2) |
| $ | — |
| $ | 109 |
|
|
|
|
|
| |||
|
|
|
|
| |||
Adjusted premiums, fees and other revenues |
| $ | — |
| $ | 921 |
|
|
|
|
|
| |||
See footnotes on last page. |
|
|
|
|
MetLife, Inc. | ||||||||
Adjusted Earnings Available to Common Shareholders (Continued) | ||||||||
(Unaudited) | ||||||||
(In millions) | ||||||||
|
|
| ||||||
| For the Three Months Ended | |||||||
| March 31, | |||||||
| 2021 |
| 2020 | |||||
|
|
| ||||||
Asia: |
|
| ||||||
|
|
| ||||||
Adjusted earnings available to common shareholders | $ | 623 |
| $ | 350 |
| ||
Less: Total notable items (2) |
| — |
|
| — |
| ||
Adjusted earnings available to common shareholders, excluding total notable items (2) | $ | 623 |
| $ | 350 |
| ||
|
|
| ||||||
Adjusted earnings available to common shareholders on a constant currency basis | $ | 623 |
| $ | 367 |
| ||
Adjusted earnings available to common shareholders, excluding total notable items, on a constant currency basis (2) | $ | 623 |
| $ | 367 |
| ||
|
|
| ||||||
Adjusted premiums, fees and other revenues | $ | 2,161 |
| $ | 2,080 |
| ||
Adjusted premiums, fees and other revenues, on a constant currency basis | $ | 2,161 |
| $ | 2,161 |
| ||
|
|
| ||||||
Latin America: |
|
| ||||||
|
|
| ||||||
Adjusted earnings available to common shareholders | $ | 40 |
| $ | 95 |
| ||
Less: Total notable items (2) |
| — |
|
| — |
| ||
Adjusted earnings available to common shareholders, excluding total notable items (2) | $ | 40 |
| $ | 95 |
| ||
|
|
| ||||||
Adjusted earnings available to common shareholders on a constant currency basis | $ | 40 |
| $ | 93 |
| ||
Adjusted earnings available to common shareholders, excluding total notable items, on a constant currency basis (2) | $ | 40 |
| $ | 93 |
| ||
|
|
| ||||||
Adjusted premiums, fees and other revenues | $ | 875 |
| $ | 921 |
| ||
Adjusted premiums, fees and other revenues, on a constant currency basis | $ | 875 |
| $ | 929 |
| ||
|
|
| ||||||
EMEA: |
|
| ||||||
|
|
| ||||||
Adjusted earnings available to common shareholders | $ | 71 |
| $ | 78 |
| ||
Less: Total notable items (2) |
| — |
|
| — |
| ||
Adjusted earnings available to common shareholders, excluding total notable items (2) | $ | 71 |
| $ | 78 |
| ||
|
|
| ||||||
Adjusted earnings available to common shareholders on a constant currency basis | $ | 71 |
| $ | 80 |
| ||
Adjusted earnings available to common shareholders, excluding total notable items, on a constant currency basis (2) | $ | 71 |
| $ | 80 |
| ||
|
|
| ||||||
Adjusted premiums, fees and other revenues | $ | 678 |
| $ | 697 |
| ||
Adjusted premiums, fees and other revenues, on a constant currency basis | $ | 678 |
| $ | 716 |
| ||
|
|
| ||||||
MetLife Holdings (3): |
|
| ||||||
|
|
| ||||||
Adjusted earnings available to common shareholders | $ | 618 |
| $ | 277 |
| ||
Less: Total notable items (2) |
| — |
|
| — |
| ||
Adjusted earnings available to common shareholders, excluding total notable items (2) | $ | 618 |
| $ | 277 |
| ||
|
|
| ||||||
Adjusted premiums, fees and other revenues | $ | 1,163 |
| $ | 1,233 |
| ||
|
|
| ||||||
Corporate & Other (3): |
|
| ||||||
|
|
| ||||||
Adjusted earnings available to common shareholders | $ | (171 | ) | $ | (131 | ) | ||
Less: Total notable items (2) |
| — |
|
| — |
| ||
Adjusted earnings available to common shareholders, excluding total notable items (2) | $ | (171 | ) | $ | (131 | ) | ||
|
|
| ||||||
Adjusted premiums, fees and other revenues | $ | 144 |
| $ | 96 |
| ||
|
|
| ||||||
See footnotes on last page. |
|
| ||||||
MetLife, Inc. | ||||||
(Unaudited) | ||||||
(In millions) | ||||||
|
|
| ||||
| For the Three Months Ended | |||||
| March 31, | |||||
| 2021 |
| 2020 | |||
Variable investment income (post-tax, in millions) |
|
| ||||
U.S. |
|
| ||||
Group Benefits | $ | 11 | $ | 3 | ||
Retirement and Income Solutions |
| 390 |
| 96 | ||
Property & Casualty (8) |
| — |
| 7 | ||
Total U.S. |
| 401 |
| 106 | ||
Asia |
| 273 |
| 53 | ||
Latin America |
| 17 |
| 4 | ||
EMEA |
| — |
| — | ||
MetLife Holdings |
| 381 |
| 96 | ||
Corporate & Other |
| 26 |
| 18 | ||
Total variable investment income | $ | 1,098 | $ | 277 | ||
|
|
| ||||
See footnotes on last page. |
|
| ||||
MetLife, Inc. | ||||||||
(Unaudited) | ||||||||
| ||||||||
Cash & Capital (9), (10), (11) |
|
| ||||||
(In billions) | ||||||||
| ||||||||
| March 31 | |||||||
| 2021 | 2020 | ||||||
Holding Companies Cash & Liquid Assets | $ | 3.8 |
| $ | 5.3 |
| ||
|
|
| ||||||
Group Benefits Underwriting (12) |
|
| ||||||
|
|
| ||||||
| For the Three Months Ended | |||||||
| March 31, | |||||||
| 2021 | 2020 | ||||||
Group Life Mortality Ratio (13) |
| 106.3 | % |
| 87.9 | % | ||
Group Non-Medical Health Interest Adjusted Benefit Ratio (14) |
| 71.1 | % |
| 71.7 | % |
|
|
|
|
| |
Footnotes |
|
|
| ||
|
|
|
|
| |
(1) | Adjusted earnings available to common shareholders, excluding total notable items, per diluted common share is calculated on a standalone basis and may not equal (i) adjusted earnings available to common shareholders per diluted common share, less (ii) total notable items per diluted common share. | ||||
|
|
|
|
| |
(2) | Notable items reflect the unexpected impact of events that affect MetLife’s results, but that were unknown and that MetLife could not have anticipated when it devised its business plan. Notable items also include certain items regardless of the extent anticipated in the business plan, to help investors have a better understanding of MetLife's results and to evaluate and forecast those results. Notable items can affect MetLife’s results either positively or negatively. | ||||
|
|
|
|
| |
(3) | Results on a constant currency basis are not included as constant currency impact is not significant. | ||||
|
|
|
|
| |
(4) | Book values exclude $4,312 million of equity related to preferred stock at both March 31, 2021 and 2020, respectively. | ||||
|
|
|
|
| |
(5) | There were share repurchases of $1 billion for the three months ended March 31, 2021. | ||||
|
|
|
|
| |
(6) | Annualized using quarter-to-date results. | ||||
|
|
|
|
| |
(7) | Adjusted earnings available to common shareholders, used to calculate the return on tangible common stockholders' equity, excludes the impact of amortization of VODA and VOCRA, net of income tax, for the three months ended March 31, 2021 and 2020 of $20 million and $8 million, respectively. | ||||
|
|
|
|
| |
(8) | For the three months ended March 31, 2021 the results of U.S. exclude Property & Casualty, which is reported as divested business. U.S. results for the three months ended March 31, 2020 include Property & Casualty. | ||||
|
|
|
|
| |
(9) | The 2020 combined NAIC Risk-Based Capital ratio was 392%. This ratio includes MetLife, Inc.'s principal U.S. insurance subsidiaries, excluding American Life Insurance Company. MetLife calculates RBC annually as of December 31 and, accordingly, the calculation does not reflect conditions and factors occurring after the year end. | ||||
|
|
|
|
| |
(10) | The total U.S. statutory adjusted capital is expected to be approximately $16.7 billion at March 31, 2021, down 2% from December 31, 2020. This balance includes MetLife, Inc.'s principal U.S. insurance subsidiaries, excluding American Life Insurance Company. Property & Casualty is excluded for both periods. | ||||
|
|
|
|
| |
(11) | As of December 31, 2020, the solvency margin ratio of MetLife's insurance subsidiary in Japan was 967%, which is calculated quarterly and does not reflect conditions and factors occurring after December 31, 2020. | ||||
|
|
|
|
| |
(12) | Results are derived from insurance and non-administrative services-only contracts. | ||||
|
|
|
|
| |
(13) | Excludes certain experience-rated contracts and includes accidental death and dismemberment. For the three months ended March 31, 2021 there was an estimated (17) percentage point impact to the ratio due to COVID-19 with an estimated impact to adjusted earnings of ($280) million. | ||||
|
|
|
|
| |
(14) | Includes dental, group and individual disability, accident & health, critical illness, vision and other health. Reflects actual claims experience and excludes the impact of interest credited on future policyholder benefits. The product within Group Non-Medical Health with interest credited on future policyholder benefits is disability. For the three months ended March 31, 2021 there was an estimated 1 percentage point impact to the ratio due to COVID-19 with an estimated impact to adjusted earnings of $25 million. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20210505006068/en/
For Media: Randy Clerihue (646) 552-0533 For Investors: John Hall (212) 578-7888
Source: MetLife, Inc.