NEW YORK--(BUSINESS WIRE)-- MetLife, Inc. (NYSE: MET) today announced its second quarter 2020 results.
Second Quarter Results Summary
“MetLife delivered solid underlying business performance in the second quarter,” said MetLife President and CEO Michel Khalaf. “The decline in our private equity portfolio was squarely within our expectations. On underwriting, our well-diversified set of businesses provided meaningful offsets to increased claims from COVID-19. The quarter also demonstrated our ongoing commitment to consistent execution, which was evident in our strong cash generation and expense discipline."
“During these extraordinarily challenging times, our people remain committed to keeping our promises and fulfilling our obligations - to our customers, who are counting on us to be there for them; to our shareholders, who are depending on us to create long-term value; and to our communities, who are looking to us to help build a more secure, stable and equitable future.”
Second Quarter 2020 Summary
($ in millions, except per share data) |
| Three months ended June 30, |
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|
| 2020 |
| 2019 |
| Change |
| ||||
Premiums, fees and other revenues |
| $ | 10,491 |
|
| $ | 12,019 |
|
| (13)% |
|
Net investment income |
| 4,087 |
|
| 4,693 |
|
| (13)% |
| ||
Net investment gains (losses) |
| 231 |
|
| 61 |
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Net derivative gains (losses) |
| (710 | ) |
| 724 |
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Total revenues |
| $ | 14,099 |
|
| $ | 17,497 |
|
| (19)% |
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Total adjusted revenues |
| $ | 13,845 |
|
| $ | 16,454 |
|
| (16)% |
|
Adjusted premiums, fees and other revenues |
| $ | 10,401 |
|
| $ | 11,900 |
|
| (13)% |
|
Adjusted premiums, fees and other revenues, excluding pension risk transfer (PRT) |
| $ | 10,407 |
|
| $ | 11,344 |
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| (8)% |
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Net income (loss) |
| $ | 68 |
|
| $ | 1,684 |
|
| (96)% |
|
Net income (loss) per share |
| $ | 0.07 |
|
| $ | 1.77 |
|
| (96)% |
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Adjusted earnings |
| $ | 758 |
|
| $ | 1,319 |
|
| (43)% |
|
Adjusted earnings per share |
| $ | 0.83 |
|
| $ | 1.38 |
|
| (40)% |
|
Adjusted earnings, excluding total notable items |
| $ | 758 |
|
| $ | 1,389 |
|
| (45)% |
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Adjusted earnings, excluding total notable items per share |
| $ | 0.83 |
|
| $ | 1.46 |
|
| (43)% |
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Book value per share |
| $ | 78.65 |
|
| $ | 64.61 |
|
| 22% |
|
Book value per share, excluding AOCI other than FCTA |
| $ | 52.27 |
|
| $ | 47.09 |
|
| 11% |
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Expense ratio |
| 21.0 | % |
| 20.3 | % |
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Direct expense ratio, excluding total notable items related to direct expenses and PRT |
| 12.4 | % |
| 12.3 | % |
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Adjusted expense ratio, excluding total notable items related to other expenses and PRT |
| 20.6 | % |
| 20.0 | % |
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ROE |
| 0.4 | % |
| 11.6 | % |
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Adjusted ROE, excluding AOCI other than FCTA |
| 6.4 | % |
| 12.1 | % |
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Adjusted ROE, excluding total notable items (excludes AOCI other than FCTA) |
| 6.4 | % |
| 12.7 | % |
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MetLife reported second quarter 2020 premiums, fees and other revenues of $10.5 billion, down 13 percent over the second quarter of 2019. Adjusted premiums, fees and other revenues were $10.4 billion, down 13 percent, and down 11 percent on a constant currency basis from the prior-year period.
Net investment income was $4.1 billion, down 13 percent from the second quarter of 2019. Adjusted net investment income was $3.4 billion, down 24 percent from the prior-year period. The decline in net investment income was primarily driven by a loss in variable investment income, which reflects a one quarter reporting lag for private equity results.
Net derivative losses amounted to $710 million, or $561 million after tax during the quarter, driven by stronger equity markets and higher longer-term interest rates.
Net income was $68 million, compared to net income of $1.7 billion in the second quarter of 2019. On a per share basis, net income was $0.07, compared to net income of $1.77 in the prior-year period.
MetLife reported adjusted earnings of $758 million, down 43 percent, and down 41 percent on a constant currency basis, from the second quarter of 2019. On a per share basis, adjusted earnings were $0.83, down 40 percent from the prior-year period.
Information regarding the non-GAAP and other financial measures included in this news release and reconciliation of the non-GAAP financial measures to GAAP measures are in “Non-GAAP and Other Financial Disclosures” below and in the tables that accompany this news release.
Details about projected impacts of COVID-19 and other developments to MetLifeare available under the heading “3Q20 Outlook” in MetLife’s second quarter 2020 supplemental slides, titled “2Q20 Supplemental Slides,” which are available together with MetLife’s Quarterly Financial Supplement for this period on the MetLife Investor Relations website at www.metlife.com, and in the Form 8-K furnished by MetLife to the U.S. Securities and Exchange Commission in connection with this earnings release.
Adjusted Earnings by Segment Summary*
| Three months ended June 30, 2020 | |
Segment | Change from prior-year period | Change from prior-year period (on a constant currency basis) |
U.S. | (29)% |
|
Asia | (29)% | (27)% |
Latin America | (17)% | 3% |
Europe, the Middle East and Africa (EMEA) | 51% | 59% |
MetLife Holdings | (93)% |
|
*The percentages in this table are on a reported and constant currency basis, and do not exclude notable items.
Business Discussions
All comparisons of the results for the second quarter of 2020 in the business discussions that follow are with the second quarter of 2019, unless otherwise noted. The second quarter of 2020 notable items table follows the Business Discussions section of this release.
U.S.
($ in millions) | Three months ended June 30, 2020 | Three months ended June 30, 2019 | Change |
Adjusted earnings | $523 | $732 | (29)% |
Adjusted premiums, fees and other revenues | $5,692 | $6,731 | (15)% |
Adjusted premiums, fees and other revenues, excluding PRT | $5,698 | $6,175 | (8)% |
Notable item(s) | $0 | $0 |
|
Group Benefits
($ in millions) | Three months ended June 30, 2020 | Three months ended June 30, 2019 | Change |
Adjustedearnings | $248 | $311 | (20)% |
Adjusted premiums, fees and other revenues | $4,346 | $4,594 | (5)% |
Notable item(s) | $0 | $0 |
|
Retirement and Income Solutions
($ in millions) | Three months ended June 30, 2020 | Three months ended June 30, 2019 | Change |
Adjustedearnings | $192 | $351 | (45)% |
Adjusted premiums, fees and other revenues | $511 | $1,220 | (58)% |
Adjusted premiums, fees and other revenues, excluding PRT | $517 | $664 | (22)% |
Notable item(s) | $0 | $0 |
|
Property & Casualty
($ in millions) | Three months ended June 30, 2020 | Three months ended June 30, 2019 | Change |
Adjustedearnings | $83 | $70 | 19% |
Adjusted premiums, fees and other revenues | $835 | $917 | (9)% |
Notable item(s) | $0 | $0 |
|
ASIA
($ in millions) | At or for the three months ended June 30, 2020 | At or for the three months ended June 30, 2019 | Change |
Adjusted earnings | $256 | $359 | (29)% |
Adjusted earnings (constant currency) | $256 | $353 | (27)% |
Adjusted premiums, fees and other revenues | $2,018 | $2,063 | (2)% |
Notable item(s) | $0 | $0 |
|
General account assets under management (at amortized cost) | $121,429 | $116,009 | 5% |
LATIN AMERICA
($ in millions) | Three months ended June 30, 2020 | Three months ended June 30, 2019 | Change |
Adjusted earnings | $132 | $159 | (17)% |
Adjusted earnings (constant currency) | $132 | $128 | 3% |
Adjusted premiums, fees and other revenues | $737 | $1,064 | (31)% |
Notable item(s) | $0 | $0 |
|
EMEA
($ in millions) | Three months ended June 30, 2020 | Three months ended June 30, 2019 | Change |
Adjusted earnings | $116 | $77 | 51% |
Adjusted earnings (constant currency) | $116 | $73 | 59% |
Adjusted premiums, fees and other revenues | $660 | $669 | (1)% |
Notable item(s) | $0 | $0 |
|
METLIFE HOLDINGS
($ in millions) | Three months ended June 30, 2020 | Three months ended June 30, 2019 | Change |
Adjusted earnings | $20 | $299 | (93)% |
Adjusted premiums, fees and other revenues | $1,208 | $1,275 | (5)% |
Notable item(s) | $0 | $0 |
|
CORPORATE & OTHER
($ in millions) | Three months ended June 30, 2020 | Three months ended June 30, 2019 | Change |
Adjusted earnings | $(289) | $(307) |
|
Notable item(s) | $0 | $(70) |
|
INVESTMENTS
($ in millions) | Three months ended June 30, 2020 | Three months ended June 30, 2019 | Change |
Adjusted net investment income | $3,444 | $4,554 | (24)% |
SECOND QUARTER 2020 NOTABLE ITEMS
($ in millions) | Adjusted Earnings | |||||||||
Three months ended June 30, 2020 | ||||||||||
Notable Items | U.S. | Asia | Latin America | EMEA | MetLife Holdings | Corporate & Other | Total | |||
Group Benefits | Retirement and Income Solutions | Property & Casualty | ||||||||
Total notable items | $0 | $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 second quarter 2020 earnings conference call and audio webcast on Thursday, August 6, 2020, from 9-10 a.m. (ET). The conference call will be available live via telephone and the internet. To listen via telephone, dial 844-291-6362 (U.S.) or 234-720-6995 (outside the U.S.). The participant access code is 2510803. To listen to the conference call via the internet, visit www.metlife.com through a link on the Investor Relations 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 11:00 a.m. (ET) on Thursday, August 6, 2020, until Thursday, August 13, 2020, 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 3537992. 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: | ||
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| |
(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) | premiums, fees and other revenues; |
| (viii) | premiums, fees and other revenues (adjusted); |
(ix) | return on equity; |
| (ix) | return on MetLife, Inc.’s common stockholders’ equity; |
(x) | adjusted return on equity, excluding AOCI other than FCTA; |
| (x) | adjusted return on MetLife, Inc.’s common stockholders’ equity, excluding AOCI other than FCTA; |
(xi) | adjusted tangible return on equity. |
| (xi) | 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 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: | ||
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| |
(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) | income (loss) from continuing operations, net of income tax; |
(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.
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. 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. These statements can be identified by the fact that they do not relate strictly to historical or current facts. They use words and terms such as "3Q," “anticipate,” "assuming," “believe,” “estimate,” “confident,” “continue,” “expect,” “target,” “hypothetical,” “long-term,” “managing,” “navigate,” “ongoing,” “outlook,” “position,” “remain,” “return,” “second half of the year,” “should,” “third quarter,” “well-positioned,” and other words and terms of similar meaning, in each of their forms of speech, or that are tied to future periods, in connection with a discussion of future performance. In particular, these include statements relating to future actions, prospective services or products, future performance or results of current and anticipated services or products, sales efforts, expenses, the outcome of contingencies such as legal proceedings, trends in operations and financial results.
Many factors will be important in determining the results of MetLife, Inc., its subsidiaries and affiliates. Forward-looking statements are based on our assumptions and current expectations, which may be inaccurate, and on the current economic environment, which may change. These statements are not guarantees of future performance. They involve a number of risks and uncertainties that are difficult to predict. Results could differ materially from those expressed or implied in the forward-looking statements. Risks, uncertainties, and other factors that might cause such differences include the risks, uncertainties and other factors identified in MetLife, Inc.’s filings with the U.S. Securities and Exchange Commission. These factors include: (1) the course of the COVID-19 pandemic and responses to it, which may also precipitate or exacerbate the remaining risks; (2) difficult economic conditions, including risks relating to interest rates, credit spreads, equity, real estate, obligors and counterparties, currency exchange rates, derivatives, and terrorism and security; (3) adverse global capital and credit market conditions, which may affect our ability to meet liquidity needs and access capital, including through credit facilities; (4) downgrades in our claims paying ability, financial strength or credit ratings; (5) availability and effectiveness of reinsurance, hedging or indemnification arrangements; (6) increasing cost and limited market capacity for statutory life insurance reserve financings; (7) the impact on us of changes to and implementation of the wide variety of laws and regulations to which we are subject; (8) regulatory, legislative or tax changes relating to our operations that may affect the cost of, or demand for, our products or services; (9) adverse results or other consequences from litigation, arbitration or regulatory investigations; (10) legal, regulatory and other restrictions affecting MetLife, Inc.’s ability to pay dividends and repurchase common stock; (11) MetLife, Inc.’s primary reliance, as a holding company, on dividends from subsidiaries to meet free cash flow targets and debt payment obligations and the applicable regulatory restrictions on the ability of the subsidiaries to pay such dividends; (12) investment losses, defaults and volatility; (13) potential liquidity and other risks resulting from our participation in a securities lending program and other transactions; (14) changes to securities and investment valuations, allowances and impairments taken on investments, and methodologies, estimates and assumptions; (15) differences between actual claims experience and underwriting and reserving assumptions; (16) political, legal, operational, economic and other risks relating to our global operations; (17) competitive pressures, including with respect to pricing, entry of new competitors, consolidation of distributors, the development of new products by new and existing competitors, and for personnel; (18) the impact of technological changes on our businesses; (19) catastrophe losses; (20) a deterioration in the experience of the closed block established in connection with the reorganization of Metropolitan Life Insurance Company; (21) impairment of goodwill or other long-lived assets, or the establishment of a valuation allowance against our deferred income tax asset; (22) changes in assumptions related to deferred policy acquisition costs, deferred sales inducements or value of business acquired; (23) exposure to losses related to guarantees in certain products; (24) ineffectiveness of risk management policies and procedures or models; (25) a failure in cybersecurity systems or other information security systems or disaster recovery plans; (26) any failure to protect the confidentiality of client information; (27) changes in accounting standards; (28) associates taking excessive risks; (29) difficulties in or complications from marketing and distributing products through our distribution channels; (30) increased expenses relating to pension and other postretirement benefit plans; (31) inability to protect our intellectual property rights or claims of infringement of others’ intellectual property rights; (32) difficulties, unforeseen liabilities, asset impairments, or rating agency actions arising from business acquisitions and dispositions, joint ventures, or other legal entity reorganizations; (33) unanticipated or adverse developments that could harm our expected operational or other benefits from the separation of Brighthouse Financial, Inc. and its subsidiaries; (34) the possibility that MetLife, Inc.’s Board of Directors may influence the outcome of stockholder votes through the voting provisions of the MetLife Policyholder Trust; (35) provisions of laws and our incorporation documents that may delay, deter or prevent takeovers and corporate combinations involving MetLife; and (36) other risks and uncertainties described from time to time in MetLife, Inc.’s filings with the U.S. Securities and Exchange Commission.
MetLife, Inc. does not undertake any obligation to publicly correct or update any forward-looking statement if MetLife, Inc. later becomes aware that such statement is not likely to be achieved. 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 | ||||||
|
| June 30, | ||||||
|
| 2020 |
| 2019 | ||||
Revenues |
|
|
|
| ||||
Premiums |
| $ | 8,736 |
|
| $ | 10,129 |
|
Universal life and investment-type product policy fees |
| 1,299 |
|
| 1,412 |
| ||
Net investment income |
| 4,087 |
|
| 4,693 |
| ||
Other revenues |
| 456 |
|
| 478 |
| ||
Net investment gains (losses) |
| 231 |
|
| 61 |
| ||
Net derivative gains (losses) |
| (710 | ) |
| 724 |
| ||
Total revenues |
| 14,099 |
|
| 17,497 |
| ||
|
|
|
|
| ||||
Expenses |
|
|
|
| ||||
Policyholder benefits and claims |
| 8,667 |
|
| 9,993 |
| ||
Interest credited to policyholder account balances |
| 1,962 |
|
| 1,515 |
| ||
Policyholder dividends |
| 290 |
|
| 302 |
| ||
Capitalization of DAC |
| (671 | ) |
| (837 | ) | ||
Amortization of DAC and VOBA |
| 560 |
|
| 689 |
| ||
Amortization of negative VOBA |
| (10 | ) |
| (10 | ) | ||
Interest expense on debt |
| 232 |
|
| 274 |
| ||
Other expenses |
| 2,872 |
|
| 3,274 |
| ||
Total expenses |
| 13,902 |
|
| 15,200 |
| ||
|
|
|
|
| ||||
Income (loss) from continuing operations before provision for income tax |
| 197 |
|
| 2,297 |
| ||
Provision for income tax expense (benefit) |
| 47 |
|
| 551 |
| ||
Income (loss) from continuing operations, net of income tax |
| 150 |
|
| 1,746 |
| ||
Income (loss) from discontinued operations, net of income tax |
| — |
|
| — |
| ||
Net income (loss) |
| 150 |
|
| 1,746 |
| ||
Less: Net income (loss) attributable to noncontrolling interests |
| 5 |
|
| 5 |
| ||
Net income (loss) attributable to MetLife, Inc. |
| 145 |
|
| 1,741 |
| ||
Less: Preferred stock dividends |
| 77 |
|
| 57 |
| ||
Net income (loss) available to MetLife, Inc.'s common shareholders |
| $ | 68 |
|
| $ | 1,684 |
|
|
|
|
|
| ||||
See footnotes on last page. |
|
|
|
|
MetLife, Inc. | ||||||||||||||||
(Unaudited) | ||||||||||||||||
(In millions, except per share data) | ||||||||||||||||
|
|
| ||||||||||||||
|
| For the Three Months Ended | ||||||||||||||
|
| June 30, | ||||||||||||||
|
| 2020 |
| 2019 | ||||||||||||
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 |
| $ | 68 |
|
| $ | 0.07 |
|
| $ | 1,684 |
|
| $ | 1.77 |
|
|
|
|
|
|
|
|
|
| ||||||||
Adjustments from net income (loss) available to common shareholders to adjusted earnings available to common shareholders: |
|
|
|
|
|
|
|
| ||||||||
Less: Net investment gains (losses) |
| 231 |
|
| 0.25 |
|
| 61 |
|
| 0.06 |
| ||||
Net derivative gains (losses) |
| (710 | ) |
| (0.78 | ) |
| 724 |
|
| 0.76 |
| ||||
Premiums |
| 20 |
|
| 0.02 |
|
| — |
|
| — |
| ||||
Universal life and investment-type product policy fees |
| 31 |
|
| 0.03 |
|
| 48 |
|
| 0.05 |
| ||||
Net investment income |
| 643 |
|
| 0.71 |
|
| 139 |
|
| 0.16 |
| ||||
Other revenues |
| 39 |
|
| 0.04 |
|
| 71 |
|
| 0.07 |
| ||||
Policyholder benefits and claims and policyholder dividends |
| (244 | ) |
| (0.27 | ) |
| (112 | ) |
| (0.12 | ) | ||||
Interest credited to policyholder account balances |
| (801 | ) |
| (0.87 | ) |
| (251 | ) |
| (0.26 | ) | ||||
Capitalization of DAC |
| 2 |
|
| — |
|
| — |
|
| — |
| ||||
Amortization of DAC and VOBA |
| 8 |
|
| 0.01 |
|
| 8 |
|
| 0.01 |
| ||||
Amortization of negative VOBA |
| — |
|
| — |
|
| — |
|
| — |
| ||||
Interest expense on debt |
| — |
|
| — |
|
| — |
|
| — |
| ||||
Other expenses |
| (55 | ) |
| (0.06 | ) |
| (82 | ) |
| (0.09 | ) | ||||
Goodwill impairment |
| — |
|
| — |
|
| — |
|
| — |
| ||||
Provision for income tax (expense) benefit |
| 151 |
|
| 0.17 |
|
| (236 | ) |
| (0.24 | ) | ||||
Income (loss) from discontinued operations, net of income tax |
| — |
|
| — |
|
| — |
|
| — |
| ||||
Add: Net income (loss) attributable to noncontrolling interests |
| 5 |
|
| 0.01 |
|
| 5 |
|
| 0.01 |
| ||||
Adjusted earnings available to common shareholders |
| 758 |
|
| 0.83 |
|
| 1,319 |
|
| 1.38 |
| ||||
Less: Total notable items (2) |
| — |
|
| — |
|
| (70 | ) |
| (0.07 | ) | ||||
Adjusted earnings available to common shareholders, excluding total notable items (2) |
| $ | 758 |
|
| $ | 0.83 |
|
| $ | 1,389 |
|
| $ | 1.46 |
|
|
|
|
|
|
|
|
|
| ||||||||
Adjusted earnings available to common shareholders on a constant currency basis |
| $ | 758 |
|
| $ | 0.83 |
|
| $ | 1,278 |
|
| $ | 1.34 |
|
Adjusted earnings available to common shareholders, excluding total notable items, on a constant currency basis (2) |
| $ | 758 |
|
| $ | 0.83 |
|
| $ | 1,348 |
|
| $ | 1.41 |
|
|
|
|
|
|
|
|
|
| ||||||||
Weighted average common shares outstanding - diluted |
|
|
| 913.1 |
|
|
|
| 952.9 |
| ||||||
|
|
|
|
|
|
|
|
| ||||||||
See footnotes on last page. |
|
|
|
|
|
|
|
|
MetLife, Inc. | ||||||||
(Unaudited) | ||||||||
(In millions) | ||||||||
|
|
|
| |||||
| For the Three Months Ended | |||||||
| June 30, | |||||||
| 2020 |
| 2019 | |||||
Premiums, Fees and Other Revenues |
|
|
| |||||
Premiums, fees and other revenues | $ | 10,491 |
|
| $ | 12,019 |
| |
Less: Unearned revenue adjustments | 5 |
|
| 20 |
| |||
GMIB fees | 25 |
|
| 28 |
| |||
Settlement of foreign currency earnings hedges | — |
|
| 2 |
| |||
TSA fees | 39 |
|
| 69 |
| |||
Divested businesses | 21 |
|
| — |
| |||
Adjusted premiums, fees and other revenues | $ | 10,401 |
|
| $ | 11,900 |
| |
|
|
|
| |||||
Adjusted premiums, fees and other revenues, on a constant currency basis | $ | 10,401 |
|
| $ | 11,708 |
| |
Less: Pension risk transfer (PRT) (3) | (6 | ) |
| 556 |
| |||
Adjusted premiums, fees and other revenues, excluding PRT, on a constant currency basis | $ | 10,407 |
|
| $ | 11,152 |
| |
|
|
|
| |||||
Net Investment Income (4) |
|
|
| |||||
Net investment income | $ | 4,087 |
|
| $ | 4,693 |
| |
Less: Investment hedge adjustments | (188 | ) |
| (118 | ) | |||
Operating joint venture adjustments | — |
|
| — |
| |||
Unit-linked contract income | 818 |
|
| 261 |
| |||
Securitization entities income | — |
|
| — |
| |||
Certain partnership distributions | (1 | ) |
| (4 | ) | |||
Divested businesses | 14 |
|
| — |
| |||
Adjusted net investment income | $ | 3,444 |
|
| $ | 4,554 |
| |
|
|
|
| |||||
Revenues and Expenses |
|
|
| |||||
Total revenues | $ | 14,099 |
|
| $ | 17,497 |
| |
Less: Net investment gains (losses) | 231 |
|
| 61 |
| |||
Less: Net derivative gains (losses) | (710 | ) |
| 724 |
| |||
Less: Adjustments related to net investment gains (losses) and net derivative gains (losses) | 5 |
|
| 20 |
| |||
Less: Other adjustments to revenues: |
|
|
| |||||
GMIB fees | 25 |
|
| 28 |
| |||
Investment hedge adjustments | (188 | ) |
| (118 | ) | |||
Operating joint venture adjustments | — |
|
| — |
| |||
Unit-linked contract income | 818 |
|
| 261 |
| |||
Securitization entities income | — |
|
| — |
| |||
Certain partnership distributions | (1 | ) |
| (4 | ) | |||
Settlement of foreign currency earnings hedges | — |
|
| 2 |
| |||
TSA fees | 39 |
|
| 69 |
| |||
Divested businesses | 35 |
|
| — |
| |||
Total adjusted revenues | $ | 13,845 |
|
| $ | 16,454 |
| |
|
|
|
| |||||
Total expenses | $ | 13,902 |
|
| $ | 15,200 |
| |
Less: Adjustments related to net investment gains (losses) and net derivative gains (losses) | (6 | ) |
| (5 | ) | |||
Less: Goodwill impairment | — |
|
| — |
| |||
Less: Other adjustments to expenses: |
|
|
| |||||
PBC hedge adjustments | 9 |
|
| — |
| |||
Inflation and pass-through adjustments | 106 |
|
| 84 |
| |||
GMIB costs and amortization of DAC and VOBA related to GMIB fees and GMIB costs | 85 |
|
| 36 |
| |||
Market value adjustments and amortization of DAC, VOBA and negative VOBA related to market value adjustments | 21 |
|
| (11 | ) | |||
PAB hedge adjustments | (2 | ) |
| (6 | ) | |||
Unit-linked contract costs | 796 |
|
| 257 |
| |||
Securitization entities debt expense | — |
|
| — |
| |||
Noncontrolling interest | (7 | ) |
| (6 | ) | |||
Regulatory implementation costs | — |
|
| 7 |
| |||
Acquisition, integration and other costs | — |
|
| 6 |
| |||
TSA fees | 39 |
|
| 69 |
| |||
Divested businesses | 49 |
|
| 6 |
| |||
Total adjusted expenses | $ | 12,812 |
|
| $ | 14,763 |
| |
|
|
|
| |||||
See footnotes on last page. |
|
|
|
MetLife, Inc. | ||||||||
(Unaudited) | ||||||||
(In millions, except per share and ratio data) | ||||||||
|
|
| ||||||
|
| For the Three Months Ended | ||||||
|
| June 30, | ||||||
|
| 2020 |
| 2019 | ||||
Expense Detail and Ratios |
|
|
|
| ||||
|
|
|
|
| ||||
Reconciliation of Capitalization of DAC to Adjusted Capitalization of DAC |
|
|
|
| ||||
Capitalization of DAC |
| $ | (671 | ) |
| $ | (837 | ) |
Less: Divested businesses |
| (2 | ) |
| — |
| ||
Adjusted capitalization of DAC |
| $ | (669 | ) |
| $ | (837 | ) |
|
|
|
|
| ||||
Reconciliation of Other Expenses to Adjusted Other Expenses |
|
|
|
| ||||
Other expenses |
| $ | 2,872 |
|
| $ | 3,274 |
|
Less: Noncontrolling interest |
| (7 | ) |
| (6 | ) | ||
Less: Regulatory implementation costs |
| — |
|
| 7 |
| ||
Less: Acquisition, integration and other costs |
| — |
|
| 6 |
| ||
Less: TSA fees |
| 39 |
|
| 69 |
| ||
Less: Divested businesses |
| 23 |
|
| 6 |
| ||
Adjusted other expenses |
| $ | 2,817 |
|
| $ | 3,192 |
|
|
|
|
|
| ||||
Other Detail and Ratios |
|
|
|
| ||||
Other expenses |
| $ | 2,872 |
|
| $ | 3,274 |
|
Capitalization of DAC |
| (671 | ) |
| (837 | ) | ||
Other expenses, net of capitalization of DAC |
| $ | 2,201 |
|
| $ | 2,437 |
|
|
|
|
|
| ||||
Premiums, fees and other revenues |
| $ | 10,491 |
|
| $ | 12,019 |
|
|
|
|
|
| ||||
Expense ratio |
| 21.0 | % |
| 20.3 | % | ||
|
|
|
|
| ||||
Direct expenses |
| $ | 1,287 |
|
| $ | 1,485 |
|
Less: Total notable items related to direct expenses (2) |
| — |
|
| 88 |
| ||
Direct expenses, excluding total notable items related to direct expenses (2) |
| $ | 1,287 |
|
| $ | 1,397 |
|
|
|
|
|
| ||||
Adjusted other expenses |
| $ | 2,817 |
|
| $ | 3,192 |
|
Adjusted capitalization of DAC |
| (669 | ) |
| (837 | ) | ||
Adjusted other expenses, net of adjusted capitalization of DAC |
| 2,148 |
|
| 2,355 |
| ||
Less: Total notable items related to adjusted other expenses (2) |
| — |
|
| 88 |
| ||
Adjusted other expenses, net of adjusted capitalization of DAC, excluding total notable items related to adjusted other expenses (2) |
| $ | 2,148 |
|
| $ | 2,267 |
|
|
|
|
|
| ||||
Adjusted premiums, fees and other revenues |
| $ | 10,401 |
|
| $ | 11,900 |
|
Less: PRT |
| (6 | ) |
| 556 |
| ||
Adjusted premiums, fees and other revenues, excluding PRT |
| $ | 10,407 |
|
| $ | 11,344 |
|
|
|
|
|
| ||||
Direct expense ratio |
| 12.4 | % |
| 12.5 | % | ||
Direct expense ratio, excluding total notable items related to direct expenses and PRT (2) |
| 12.4 | % |
| 12.3 | % | ||
Adjusted expense ratio |
| 20.7 | % |
| 19.8 | % | ||
Adjusted expense ratio, excluding total notable items related to adjusted other expenses and PRT (2) |
| 20.6 | % |
| 20.0 | % | ||
|
|
|
|
| ||||
See footnotes on last page. |
MetLife, Inc. | ||||||||
(Unaudited) | ||||||||
(In millions, except per share data) | ||||||||
|
| For the Three Months Ended | ||||||
|
| June 30, | ||||||
Equity Details |
| 2020 |
| 2019 | ||||
Total MetLife, Inc.'s stockholders' equity |
| $ | 75,693 |
|
| $ | 63,811 |
|
Less: Preferred stock |
| 4,312 |
|
| 3,340 |
| ||
MetLife, Inc.'s common stockholders' equity |
| 71,381 |
|
| 60,471 |
| ||
Less: Net unrealized investment gains (losses), net of income tax |
| 25,913 |
|
| 18,381 |
| ||
Defined benefit plans adjustment, net of income tax |
| (1,968 | ) |
| (1,984 | ) | ||
Total MetLife, Inc.'s common stockholders' equity, excluding AOCI other than FCTA |
| 47,436 |
|
| 44,074 |
| ||
Less: Goodwill, net of income tax |
| 8,910 |
|
| 9,071 |
| ||
VODA and VOCRA, net of income tax |
| 264 |
|
| 288 |
| ||
Total MetLife, Inc.'s tangible common stockholders' equity |
| $ | 38,262 |
|
| $ | 34,715 |
|
|
|
| ||||||
|
| June 30, | ||||||
|
| 2020 |
| 2019 | ||||
Total MetLife, Inc.'s common stockholders' equity, excluding AOCI other than FCTA |
| $ | 47,436 |
|
| $ | 44,074 |
|
Less: Accumulated year-to-date total notable items (2) |
| — |
|
| (125 | ) | ||
Total MetLife, Inc.'s common stockholders' equity, excluding total notable items (excludes AOCI other than FCTA) (2) |
| 47,436 |
|
| 44,199 |
| ||
Less: Goodwill, net of income tax |
| 8,910 |
|
| 9,071 |
| ||
VODA and VOCRA, net of income tax |
| 264 |
|
| 288 |
| ||
Total MetLife, Inc.'s tangible common stockholders' equity, excluding total notable items (2) |
| $ | 38,262 |
|
| $ | 34,840 |
|
|
|
|
|
| ||||
|
| June 30, | ||||||
Book Value (5) |
| 2020 |
| 2019 | ||||
Book value per common share |
| $ | 78.65 |
|
| $ | 64.61 |
|
Less: Net unrealized investment gains (losses), net of income tax |
| 28.55 |
|
| 19.64 |
| ||
Defined benefit plans adjustment, net of income tax |
| (2.17 | ) |
| (2.12 | ) | ||
Book value per common share, excluding AOCI other than FCTA |
| 52.27 |
|
| 47.09 |
| ||
Less: Goodwill, net of income tax |
| 9.82 |
|
| 9.69 |
| ||
VODA and VOCRA, net of income tax |
| 0.29 |
|
| 0.31 |
| ||
Book value per common share - tangible common stockholders' equity |
| $ | 42.16 |
|
| $ | 37.09 |
|
|
|
|
|
| ||||
Common shares outstanding, end of period |
| 907.6 |
|
| 935.9 |
| ||
|
|
|
|
| ||||
|
|
|
|
| ||||
|
| For the Three Months Ended | ||||||
|
| June 30, | ||||||
Average Common Stockholders' Equity |
| 2020 |
| 2019 | ||||
Average common stockholders' equity |
| $ | 68,645 |
|
| $ | 57,820 |
|
Average common stockholders' equity, excluding AOCI other than FCTA |
| $ | 47,481 |
|
| $ | 43,693 |
|
Average common stockholders' equity, excluding total notable items (excludes AOCI other than FCTA) (2) |
| $ | 47,481 |
|
| $ | 43,783 |
|
Average tangible common stockholders' equity |
| $ | 38,342 |
|
| $ | 34,323 |
|
Average tangible common stockholders' equity, excluding total notable items (2) |
| $ | 38,342 |
|
| $ | 34,413 |
|
|
|
|
|
| ||||
See footnotes on last page. |
|
|
|
|
MetLife, Inc. | ||||||
(Unaudited) | ||||||
|
|
|
|
| ||
|
| For the Three Months Ended | ||||
|
| June 30, (6) | ||||
|
| 2020 |
| 2019 | ||
Return on Equity |
|
|
|
| ||
Return on MetLife, Inc.'s: |
|
|
|
| ||
Common stockholders' equity |
| 0.4 | % |
| 11.6 | % |
|
|
|
|
| ||
Adjusted return on MetLife, Inc.'s: |
|
|
|
| ||
Common stockholders' equity |
| 4.4 | % |
| 9.1 | % |
Common stockholders' equity, excluding AOCI other than FCTA |
| 6.4 | % |
| 12.1 | % |
Common stockholders' equity, excluding total notable items (excludes AOCI other than FCTA) (2) |
| 6.4 | % |
| 12.7 | % |
Tangible common stockholders' equity (7) |
| 8.0 | % |
| 15.5 | % |
Tangible common stockholders' equity, excluding total notable items (2), (7) |
| 8.0 | % |
| 16.2 | % |
|
|
|
|
| ||
Adjusted Return on Allocated Equity: |
|
|
|
| ||
U.S. |
| 18.9 | % |
| 27.3 | % |
Asia |
| 7.2 | % |
| 10.1 | % |
Latin America |
| 17.2 | % |
| 21.5 | % |
EMEA |
| 16.3 | % |
| 11.0 | % |
MetLife Holdings |
| 0.8 | % |
| 12.5 | % |
|
|
|
|
| ||
Adjusted Return on Allocated Tangible Equity: |
|
|
|
| ||
U.S. |
| 21.8 | % |
| 31.0 | % |
Asia |
| 10.9 | % |
| 15.3 | % |
Latin America |
| 28.1 | % |
| 35.5 | % |
EMEA |
| 28.6 | % |
| 19.8 | % |
MetLife Holdings |
| 1.1 | % |
| 14.0 | % |
|
|
|
|
| ||
See footnotes on last page. |
|
|
|
|
MetLife, Inc. | |||||||||
Adjusted Earnings Available to Common Shareholders | |||||||||
(Unaudited) | |||||||||
(In millions) | |||||||||
|
|
|
|
|
| ||||
|
|
| For the Three Months Ended | ||||||
|
|
| June 30, | ||||||
|
|
| 2020 |
| 2019 | ||||
|
|
|
|
|
| ||||
U.S. (3): |
|
|
|
| |||||
|
|
|
|
|
| ||||
| Adjusted earnings available to common shareholders |
| $ | 523 |
|
| $ | 732 |
|
| Less: Total notable items (2) |
| — |
|
| — |
| ||
| Adjusted earnings available to common shareholders, excluding total notable items (2) |
| $ | 523 |
|
| $ | 732 |
|
|
|
|
|
|
| ||||
|
|
|
|
|
| ||||
| Adjusted premiums, fees and other revenues |
| $ | 5,692 |
|
| $ | 6,731 |
|
| Less: PRT |
| (6 | ) |
| 556 |
| ||
| Adjusted premiums, fees and other revenues, excluding PRT |
| $ | 5,698 |
|
| $ | 6,175 |
|
|
|
|
|
|
| ||||
|
|
|
|
|
| ||||
| Variable investment income (post-tax) |
| $ | (128 | ) |
| $ | 125 |
|
|
|
|
|
|
| ||||
|
|
|
|
|
| ||||
Group Benefits (3): |
|
|
|
| |||||
|
|
|
|
|
| ||||
| Adjusted earnings available to common shareholders |
| $ | 248 |
|
| $ | 311 |
|
| Less: Total notable items (2) |
| — |
|
| — |
| ||
| Adjusted earnings available to common shareholders, excluding total notable items (2) |
| $ | 248 |
|
| $ | 311 |
|
|
|
|
|
|
| ||||
|
|
|
|
|
| ||||
| Adjusted premiums, fees and other revenues |
| $ | 4,346 |
|
| $ | 4,594 |
|
| Variable investment income (post-tax) |
| $ | 3 |
|
| $ | 20 |
|
|
|
|
|
|
| ||||
|
|
|
|
|
| ||||
Retirement & Income Solutions (3): |
|
|
|
| |||||
|
|
|
|
|
| ||||
| Adjusted earnings available to common shareholders |
| $ | 192 |
|
| $ | 351 |
|
| Less: Total notable items (2) |
| — |
|
| — |
| ||
| Adjusted earnings available to common shareholders, excluding total notable items (2) |
| $ | 192 |
|
| $ | 351 |
|
|
|
|
|
|
| ||||
|
|
|
|
|
| ||||
| Adjusted premiums, fees and other revenues |
| $ | 511 |
|
| $ | 1,220 |
|
| Less: PRT |
| (6 | ) |
| 556 |
| ||
| Adjusted premiums, fees and other revenues, excluding PRT |
| $ | 517 |
|
| $ | 664 |
|
|
|
|
|
|
| ||||
|
|
|
|
|
| ||||
| Variable investment income (post-tax) |
| $ | (122 | ) |
| $ | 100 |
|
|
|
|
|
|
| ||||
|
|
|
|
|
| ||||
Property & Casualty (3): |
|
|
|
| |||||
|
|
|
|
|
| ||||
| Adjusted earnings available to common shareholders |
| $ | 83 |
|
| $ | 70 |
|
| Less: Total notable items (2) |
| — |
|
| — |
| ||
| Adjusted earnings available to common shareholders, excluding total notable items (2) |
| $ | 83 |
|
| $ | 70 |
|
|
|
|
|
|
| ||||
|
|
|
|
|
| ||||
| Adjusted premiums, fees and other revenues |
| $ | 835 |
|
| $ | 917 |
|
| Variable investment income (post-tax) |
| $ | (9 | ) |
| $ | 5 |
|
|
|
|
|
|
| ||||
See footnotes on last page. |
|
|
|
|
MetLife, Inc. | |||||||||
Adjusted Earnings Available to Common Shareholders (Continued) | |||||||||
(Unaudited) | |||||||||
(In millions) | |||||||||
|
|
|
|
|
| ||||
|
|
| For the Three Months Ended | ||||||
|
|
| June 30, | ||||||
|
|
| 2020 |
| 2019 | ||||
|
|
|
|
|
| ||||
Asia: |
|
|
|
| |||||
|
|
|
|
|
| ||||
| Adjusted earnings available to common shareholders |
| $ | 256 |
|
| $ | 359 |
|
| Less: Total notable items (2) |
| — |
|
| — |
| ||
| Adjusted earnings available to common shareholders, excluding total notable items (2) |
| $ | 256 |
|
| $ | 359 |
|
|
|
|
|
|
| ||||
| Adjusted earnings available to common shareholders on a constant currency basis |
| $ | 256 |
|
| $ | 353 |
|
| Adjusted earnings available to common shareholders, excluding total notable items, on a constant currency basis (2) |
| $ | 256 |
|
| $ | 353 |
|
|
|
|
|
|
| ||||
| Adjusted premiums, fees and other revenues |
| $ | 2,018 |
|
| $ | 2,063 |
|
| Adjusted premiums, fees and other revenues, on a constant currency basis |
| $ | 2,018 |
|
| $ | 2,073 |
|
| Variable investment income (post-tax) |
| $ | (77 | ) |
| $ | 45 |
|
|
|
|
|
|
| ||||
Latin America: |
|
|
|
| |||||
|
|
|
|
|
| ||||
| Adjusted earnings available to common shareholders |
| $ | 132 |
|
| $ | 159 |
|
| Less: Total notable items (2) |
| — |
|
| — |
| ||
| Adjusted earnings available to common shareholders, excluding total notable items (2) |
| $ | 132 |
|
| $ | 159 |
|
|
|
|
|
|
| ||||
| Adjusted earnings available to common shareholders on a constant currency basis |
| $ | 132 |
|
| $ | 128 |
|
| Adjusted earnings available to common shareholders, excluding total notable items, on a constant currency basis (2) |
| $ | 132 |
|
| $ | 128 |
|
|
|
|
|
|
| ||||
| Adjusted premiums, fees and other revenues |
| $ | 737 |
|
| $ | 1,064 |
|
| Adjusted premiums, fees and other revenues, on a constant currency basis |
| $ | 737 |
|
| $ | 882 |
|
| Variable investment income (post-tax) |
| $ | (7 | ) |
| $ | (2 | ) |
|
|
|
|
|
| ||||
EMEA: |
|
|
|
| |||||
|
|
|
|
|
| ||||
| Adjusted earnings available to common shareholders |
| $ | 116 |
|
| $ | 77 |
|
| Less: Total notable items (2) |
| — |
|
| — |
| ||
| Adjusted earnings available to common shareholders, excluding total notable items (2) |
| $ | 116 |
|
| $ | 77 |
|
|
|
|
|
|
| ||||
| Adjusted earnings available to common shareholders on a constant currency basis |
| $ | 116 |
|
| $ | 73 |
|
| Adjusted earnings available to common shareholders, excluding total notable items, on a constant currency basis (2) |
| $ | 116 |
|
| $ | 73 |
|
|
|
|
|
|
| ||||
| Adjusted premiums, fees and other revenues |
| $ | 660 |
|
| $ | 669 |
|
| Adjusted premiums, fees and other revenues, on a constant currency basis |
| $ | 660 |
|
| $ | 649 |
|
| Variable investment income (post-tax) |
| $ | — |
|
| $ | — |
|
|
|
|
|
|
| ||||
MetLife Holdings (3): |
|
|
|
| |||||
|
|
|
|
|
| ||||
| Adjusted earnings available to common shareholders |
| $ | 20 |
|
| $ | 299 |
|
| Less: Total notable items (2) |
| — |
|
| — |
| ||
| Adjusted earnings available to common shareholders, excluding total notable items (2) |
| $ | 20 |
|
| $ | 299 |
|
|
|
|
|
|
| ||||
| Adjusted premiums, fees and other revenues |
| $ | 1,208 |
|
| $ | 1,275 |
|
| Variable investment income (post-tax) |
| $ | (161 | ) |
| $ | 89 |
|
|
|
|
|
|
| ||||
Corporate & Other (3): |
|
|
|
| |||||
|
|
|
|
|
| ||||
| Adjusted earnings available to common shareholders |
| $ | (289 | ) |
| $ | (307 | ) |
| Less: Total notable items (2) |
| — |
|
| (70 | ) | ||
| Adjusted earnings available to common shareholders, excluding total notable items (2) |
| $ | (289 | ) |
| $ | (237 | ) |
|
|
|
|
|
| ||||
| Adjusted premiums, fees and other revenues |
| $ | 86 |
|
| $ | 98 |
|
| Variable investment income (post-tax) |
| $ | (65 | ) |
| $ | 7 |
|
|
|
|
|
|
| ||||
See footnotes on last page. |
|
|
|
|
MetLife, Inc. | ||||||||
(Unaudited) | ||||||||
| ||||||||
Cash & Capital (8), (9) |
|
|
| |||||
(In billions) | ||||||||
| ||||||||
|
| June 30, | ||||||
|
| 2020 |
| 2019 | ||||
Holding Companies Cash & Liquid Assets | $ | 6.6 |
|
| $ | 4.2 |
| |
|
|
|
|
| ||||
|
|
|
|
| ||||
Group Non-Medical Health |
|
|
| |||||
|
|
|
|
| ||||
|
| For the Three Months Ended | ||||||
|
| June 30, | ||||||
|
| 2020 |
| 2019 | ||||
Non-Medical Health Interest Adjusted Benefit Ratio (IABR) (10), (11) | 58.5 | % |
| 75.4 | % |
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 the result of (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 anticipate 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) | Results include private equity returns of (8.2%) and 3.6% for the three months ended June 30, 2020 and 2019, respectively. | |||
| ||||
(5) | Book values exclude $4,312 million and $3,340 million of equity related to preferred stock at June 30, 2020 and 2019, respectively. | |||
| ||||
(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 June 30, 2020 and 2019 of $10 million and $9 million, respectively. | |||
| ||||
(8) | The total U.S. statutory adjusted capital is expected to be $21.1 billion at June 30, 2020. This balance includes MetLife, Inc.'s principal U.S. insurance subsidiaries, excluding American Life Insurance Company. | |||
| ||||
(9) | As of March 31, 2020 the solvency margin ratio of MetLife's insurance subsidiary in Japan was 799%, which is calculated quarterly and does not reflect conditions and factors occurring after March 31, 2020.
| |||
| ||||
(10) | Results are derived from insurance contracts and include dental, group and individual disability, accident & health, critical illness, vision and other health. The three months ended June 30, 2020 includes a dental unearned premium reserve of 7.1%, representing approximately $300 million reduction of premium revenue (assuming an equal amount of benefits) primarily related to the significant decrease in the availability of dental services in 2Q, and a dental premium credit of 3.9%, representing approximately $200 million reduction of premium revenue (assuming an equal amount of benefits) related to dental credits for April and May 2020. Excluding these, the non-medical health IABR for the three months ended June 30, 2020 would be 69.5%. | |||
| ||||
(11) | 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.
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20200805005911/en/
For Media: Ashia Razzaq (212) 578-1538 For Investors: John Hall (347) 401-3404
Source: MetLife, Inc.