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Published: 2021-11-03 16:32:38 ET
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EX-99.2 3 ex992qfsq321doc.htm EX-99.2 Document
Exhibit 99.2



 image0a45a.jpg
Third Quarter
Financial Supplement
September 30, 2021
3

METLIFE
TABLE OF CONTENTS
 
 
 
 
 
1
METLIFE
As used in this QFS, “MetLife," “we” and “our” refer to MetLife, Inc., a Delaware corporation incorporated in 1999, its subsidiaries and affiliates. In this QFS, MetLife presents certain measures of its performance that are not calculated in accordance with GAAP. We believe 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 our business. See Appendix for definitions of non-GAAP financial measures and other financial disclosures.
GAAP INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months EndedFor the Year-to-Date Period Ended
Unaudited (In millions)September 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021September 30, 2020September 30, 2021
Revenues
Premiums$9,935 $13,897 $10,327 $9,132 $9,455 $28,137 $28,914 
Universal life and investment-type product policy fees1,497 1,376 1,391 1,422 1,521 4,227 4,334 
Net investment income4,729 5,240 5,314 5,280 5,568 11,877 16,162 
Other revenues455 499 631 664 663 1,350 1,958 
Net investment gains (losses)(20)(33)134 1,605 (84)(77)1,655 
Net derivative gains (losses)(581)(1,561)(2,235)421 (218)2,910 (2,032)
Total revenues16,015 19,418 15,562 18,524 16,905 48,424 50,991 
Expenses
Policyholder benefits and claims10,000 13,772 10,523 9,405 10,103 27,689 30,031 
Interest credited to policyholder account balances1,416 1,756 1,351 1,515 1,287 3,458 4,153 
Policyholder dividends206 302 247 236 189 788 672 
Capitalization of DAC(764)(804)(775)(642)(635)(2,209)(2,052)
Amortization of DAC and VOBA1,066 746 590 537 816 2,414 1,943 
Amortization of negative VOBA(15)(10)(9)(10)(6)(35)(25)
Interest expense on debt229 230 228 228 240 683 696 
Other expenses2,954 3,262 3,116 2,768 2,869 8,873 8,753 
Total expenses15,092 19,254 15,271 14,037 14,863 41,661 44,171 
Income (loss) before provision for income tax923 164 291 4,487 2,042 6,763 6,820 
Provision for income tax expense (benefit)214 6 (72)1,075 453 1,503 1,456 
Net income (loss) 709 158 363 3,412 1,589 5,260 5,364 
Less: Net income (loss) attributable to noncontrolling interests3 — 5 5 5 11 15 
Net income (loss) attributable to MetLife, Inc.706 158 358 3,407 1,584 5,249 5,349 
Less: Preferred stock dividends59 34 68 35 63 168 166 
 Preferred stock redemption premium 14 — — 6 — 14 6 
Net income (loss) available to MetLife, Inc.'s common shareholders$633 $124 $290 $3,366 $1,521 $5,067 $5,177 
Premiums, fees and other revenues$11,887 $15,772 $12,349 $11,218 $11,639 $33,714 $35,206 
2
METLIFE
CORPORATE OVERVIEW
For the Three Months Ended
Unaudited (In millions, except per share data)September 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021
Net income (loss) available to MetLife, Inc.'s common shareholders$633 $124 $290 $3,366 $1,521 
Adjustments from net income (loss) available to MetLife, Inc.'s common shareholders to adjusted earnings available to common shareholders:
Less: Net investment gains (losses) (20)(33)134 1,605 (84)
Less: Net derivative gains (losses)(581)(1,561)(2,235)421 (218)
Less: Goodwill impairment— — — — — 
Less: Other adjustments to net income (loss) (1)(522)(575)(174)(247)(333)
Less: Provision for income tax (expense) benefit 195 455 605 (491)99 
Add: Net income (loss) attributable to noncontrolling interests3 — 5 5 5 
Add: Preferred stock redemption premium14 — — 6 — 
Adjusted earnings available to common shareholders1,578 1,838 1,965 2,089 2,062 
Less: Total notable items (2)(203)— — 66 (140)
Adjusted earnings available to common shareholders, excluding total notable items (2)$1,781 $1,838 $1,965 $2,023 $2,202 
Net income (loss) available to MetLife, Inc.'s common shareholders per diluted common share$0.69 $0.14 $0.33 $3.83 $1.77 
Less: Net investment gains (losses)(0.02)(0.04)0.15 1.82 (0.10)
Less: Net derivative gains (losses)(0.64)(1.72)(2.51)0.48 (0.25)
Less: Goodwill impairment— — — — — 
Less: Other adjustments to net income (loss)(0.57)(0.63)(0.19)(0.27)(0.37)
Less: Provision for income tax (expense) benefit0.21 0.50 0.69 (0.55)0.11 
Add: Net income (loss) attributable to noncontrolling interests— — 0.01 0.01 0.01 
Add: Preferred stock redemption premium0.02 — — 0.01 — 
Adjusted earnings available to common shareholders per diluted common share 1.73 2.03 2.20 2.37 2.39 
Less: Total notable items per diluted common share (2)(0.22)— — 0.08 (0.16)
Adjusted earnings available to common shareholders, excluding total notable items, per diluted common share (2), (3)$1.95 $2.03 $2.20 $2.30 $2.56 
For the Three Months Ended
Unaudited (In millions, except per share data)September 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021
Notable items impacting adjusted earnings available to common shareholders (2):
Actuarial assumption review and other insurance adjustments$(203)$— $— $— $(140)
Litigation reserves and settlement costs— — — 66 — 
Total notable items $(203)$— $— $66 $(140)
Notable items impacting adjusted earnings available to common shareholders per diluted common share (2):
Actuarial assumption review and other insurance adjustments$(0.22)$— $— $— $(0.16)
Litigation reserves and settlement costs$— $— $— $0.08 $— 
Total notable items $(0.22)$— $— $0.08 $(0.16)
For the Three Months Ended
Unaudited (In millions)September 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021
Weighted average common shares outstanding - diluted913.7 906.0 892.1 879.7 861.2 
(1)See Page A-1 for further detail.
(2)These notable items represent a positive (negative) impact to adjusted earnings available to common shareholders and adjusted earnings available to common shareholders per diluted common share. The per share data for each notable item is calculated on a standalone basis and may not sum to total notable items. 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. See Page A-2 for further detail.
(3)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.

3
METLIFE
CORPORATE OVERVIEW (CONTINUED)
UnauditedSeptember 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021
Book value per common share (1) $76.20 $78.67 $70.08 $75.86 $77.24 
Book value per common share, excluding AOCI other than FCTA (1) $53.10 $54.18 $53.16 $56.38 $57.29 
Book value per common share - tangible common stockholders' equity (1) $42.86 $41.94 $41.34 $44.56 $45.35 
For the Three Months Ended
UnauditedSeptember 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021
Return on MetLife, Inc.'s (2):
Common stockholders' equity 3.6 %0.7 %1.8 %21.2 %9.3 %
Adjusted return on MetLife, Inc.'s (2):
Common stockholders' equity 9.0 %10.6 %11.9 %13.2 %12.6 %
Common stockholders' equity, excluding AOCI other than FCTA 13.2 %15.2 %16.5 %17.5 %17.0 %
Common stockholders' equity, excluding total notable items (excludes AOCI other than FCTA) (3)14.9 %15.2 %16.5 %17.0 %18.2 %
Tangible common stockholders' equity16.5 %19.4 %21.5 %22.6 %21.7 %
For the Three Months Ended
Unaudited (In millions)September 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021
Common shares outstanding, beginning of period907.6 905.6 892.9 878.3 861.1 
Share repurchases (2.1)(13.6)(18.6)(17.6)(16.7)
Newly issued shares0.1 0.9 4.0 0.4 0.1 
Common shares outstanding, end of period 905.6 892.9 878.3 861.1 844.5 
Weighted average common shares outstanding - basic908.7 899.9 885.4 873.3 854.9 
Dilutive effect of the exercise or issuance of stock-based awards 5.0 6.1 6.7 6.4 6.3 
Weighted average common shares outstanding - diluted913.7 906.0 892.1 879.7 861.2 
MetLife Policyholder Trust Shares137.3 136.0 134.4 132.4 131.1 
(1) Calculated using common shares outstanding, end of period.
(2) Annualized using quarter-to-date results. See Page A-3 for further detail.
(3)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. See Page A-2 for further detail.

4
METLIFE
KEY ADJUSTED EARNINGS STATEMENT LINE ITEMS
For the Three Months EndedFor the Year-to-Date Period Ended
Unaudited (In millions)September 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021September 30, 2020September 30, 2021
Total revenues$16,015 $19,418 $15,562 $18,524 $16,905 $48,424 $50,991 
Less: Net investment gains (losses)(20)(33)134 1,605 (84)(77)1,655 
Less: Net derivative gains (losses)(581)(1,561)(2,235)421 (218)2,910 (2,032)
Less: Adjustments related to net investment gains (losses) and net derivative gains (losses)2 8 — 12 46 25 58 
Less: Other adjustments to revenues:
GMIB fees
26 25 25 24 25 77 74 
Investment hedge adjustments
(229)(260)(220)(212)(228)(555)(660)
Operating joint venture adjustments
— 1 — — (1)— (1)
Unit-linked contract income
262 628 207 378 114 (60)699 
Securitization entities income
— — — — — — — 
Certain partnership distributions
— (6)(3)(3)(1)(5)(7)
Settlement of foreign currency earnings hedges
— — — — — — — 
TSA fees
39 39 35 60 73 120 168 
Divested businesses
8 2 912 — 92 99 1,004 
Total adjusted revenues$16,508 $20,575 $16,707 $16,239 $17,087 $45,890 $50,033 
For the Three Months EndedFor the Year-to-Date Period Ended
Unaudited (In millions)September 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021September 30, 2020September 30, 2021
Net investment income$4,729 $5,240 $5,314 $5,280 $5,568 $11,877 $16,162 
Less: Adjustments to net investment income:
Investment hedge adjustments(229)(260)(220)(212)(228)(555)(660)
Operating joint venture adjustments— 1 — — (1)— (1)
Unit-linked contract income262 628 207 378 114 (60)699 
Securitization entities income— — — — — — — 
Certain partnership distributions— (6)(3)(3)(1)(5)(7)
Divested businesses 8 2 36 — 16 44 52 
Adjusted net investment income$4,688 $4,875 $5,294 $5,117 $5,668 $12,453 $16,079 
For the Three Months EndedFor the Year-to-Date Period Ended
Unaudited (In millions)September 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021September 30, 2020September 30, 2021
Variable investment income (Included in net investment income above)$652 $778 $1,390 $1,202 $1,789 $448 $4,381 
For the Three Months EndedFor the Year-to-Date Period Ended
Unaudited (In millions)September 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021September 30, 2020September 30, 2021
Premiums, fees and other revenues$11,887 $15,772 $12,349 $11,218 $11,639 $33,714 $35,206 
Less: Adjustments to premiums, fees and other revenues:
Unearned revenue adjustments
2 8 — 12 46 25 58 
GMIB fees
26 25 25 24 25 77 74 
Settlement of foreign currency earnings hedges
— — — — — — — 
TSA fees
39 39 35 60 73 120 168 
Divested businesses
— — 876 — 76 55 952 
Adjusted premiums, fees and other revenues$11,820 $15,700 $11,413 $11,122 $11,419 $33,437 $33,954 
Adjusted premiums, fees and other revenues, on a constant currency basis$11,828 $15,623 $11,321 $11,067 $11,419 
5
METLIFE
KEY ADJUSTED EARNINGS STATEMENT LINE ITEMS (CONTINUED)
For the Three Months EndedFor the Year-to-Date Period Ended
Unaudited (In millions)September 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021September 30, 2020September 30, 2021
Total expenses$15,092 $19,254 $15,271 $14,037 $14,863 $41,661 $44,171 
Less: Adjustments related to net investment gains (losses) and net derivative gains (losses)64 65 (3)9 31 88 37 
Less: Goodwill impairment— — — — — — — 
Less: Other adjustments to expenses:
PBC hedge adjustment
9 10 9 8 8 27 25 
Inflation and pass-through adjustments
(37)53 (78)(18)— 117 (96)
GMIB costs and amortization of DAC and VOBA related to GMIB fees and GMIB costs
238 169 115 58 129 195 302 
Market value adjustments and amortization of DAC, VOBA and negative VOBA related to market value adjustments
21 17 23 16 21 53 60 
PAB hedge adjustments
(1)(1)— (1)(1)(8)(2)
Unit-linked contract costs
266 612 210 366 116 (76)692 
Securitization entities debt expense
— — — — — — — 
Noncontrolling interests(4)(2)(6)(6)(7)(14)(19)
Regulatory implementation costs
6 12 (3)6 — 8 3 
Acquisition, integration and other costs
7 29 4 4 2 13 10 
TSA fees
39 39 35 60 73 120 168 
Divested businesses
22 9 824 4 81 122 909 
Total adjusted expenses$14,462 $18,242 $14,141 $13,531 $14,410 $41,016 $42,082 
For the Three Months EndedFor the Year-to-Date Period Ended
Unaudited (In millions)September 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021September 30, 2020September 30, 2021
Capitalization of DAC $(764)$(804)$(775)$(642)$(635)$(2,209)$(2,052)
Less: Divested businesses— — (89)— (15)(5)(104)
Adjusted capitalization of DAC$(764)$(804)$(686)$(642)$(620)$(2,204)$(1,948)
For the Three Months EndedFor the Year-to-Date Period Ended
Unaudited (In millions)September 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021September 30, 2020September 30, 2021
Other expenses $2,954 $3,262 $3,116 $2,768 $2,869 $8,873 $8,753 
Less: Noncontrolling interests
(4)(2)(6)(6)(7)(14)(19)
Less: Regulatory implementation costs
6 12 (3)6 — 8 3 
Less: Acquisition, integration and other costs
7 29 4 4 2 13 10 
Less: TSA fees
39 39 35 60 73 120 168 
Less: Divested businesses
7 9 232 4 41 49 277 
Adjusted other expenses$2,899 $3,175 $2,854 $2,700 $2,760 $8,697 $8,314 
Adjusted other expenses on a constant currency basis$2,895 $3,136 $2,815 $2,680 $2,760 

6
METLIFE
EXPENSE DETAIL AND RATIOS
For the Three Months EndedFor the Year-to-Date Period Ended
Unaudited (In millions, except ratio data)September 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021September 30, 2020September 30, 2021
Other expenses$2,954 $3,262 $3,116 $2,768 $2,869 $8,873 $8,753 
Capitalization of DAC(764)(804)(775)(642)(635)(2,209)(2,052)
Other expenses, net of capitalization of DAC$2,190 $2,458 $2,341 $2,126 $2,234 $6,664 $6,701 
Premiums, fees and other revenues$11,887 $15,772 $12,349 $11,218 $11,639 $33,714 $35,206 
Expense ratio18.4 %15.6 %19.0 %19.0 %19.2 %19.8 %19.0 %
For the Three Months EndedFor the Year-to-Date Period Ended
Unaudited (In millions)September 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021September 30, 2020September 30, 2021
Adjusted other expenses by major category
Direct expenses$1,288 $1,423 $1,259 $1,188 $1,266 $3,919 $3,713 
Pension, postretirement and postemployment benefit costs37 52 25 43 44 113 112 
Premium taxes, other taxes, and licenses & fees194 201 149 169 142 563 460 
Commissions and other variable expenses1,380 1,499 1,421 1,300 1,308 4,102 4,029 
Adjusted other expenses
2,899 3,175 2,854 2,700 2,760 8,697 8,314 
Adjusted capitalization of DAC(764)(804)(686)(642)(620)(2,204)(1,948)
Adjusted other expenses, net of adjusted capitalization of DAC
2,135 2,371 2,168 2,058 2,140 6,493 6,366 
Less: Total notable items related to adjusted other expenses (1)— — — (84)— — (84)
Adjusted other expenses, net of adjusted capitalization of DAC, excluding total notable items related to adjusted other expenses (1)
$2,135 $2,371 $2,168 $2,142 $2,140 $6,493 $6,450 
For the Three Months EndedFor the Year-to-Date Period Ended
Unaudited (In millions, except ratio data)September 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021September 30, 2020September 30, 2021
Employee related costs$865 $937 $897 $793 $789 $2,571 $2,479 
Third party staffing costs306 357 302 333 347 949 982 
General and administrative expenses117 129 60 62 130 399 252 
Direct expenses1,288 1,423 1,259 1,188 1,266 3,919 3,713 
Less: Total notable items related to direct expenses (1)— — — (84)— — (84)
Direct expenses, excluding total notable items related to direct expenses (1)$1,288 $1,423 $1,259 $1,272 $1,266 $3,919 $3,797 
Adjusted other expenses, net of adjusted capitalization of DAC
$2,135 $2,371 $2,168 $2,058 $2,140 $6,493 $6,366 
Less: Total notable items related to adjusted other expenses (1)— — — (84)— — (84)
Adjusted other expenses, net of adjusted capitalization of DAC, excluding total notable items related to adjusted other expenses (1)
$2,135 $2,371 $2,168 $2,142 $2,140 $6,493 $6,450 
Adjusted premiums, fees and other revenues$11,820 $15,700 $11,413 $11,122 $11,419 $33,437 $33,954 
Less: PRT487 4,163 — (14)(24)472 (38)
Adjusted premiums, fees and other revenues, excluding PRT$11,333 $11,537 $11,413 $11,136 $11,443 $32,965 $33,992 
Direct expense ratio 10.9 %9.1 %11.0 %10.7 %11.1 %11.7 %10.9 %
Direct expense ratio, excluding total notable items related to direct expenses and PRT (1)11.4 %12.3 %11.0 %11.4 %11.1 %11.9 %11.2 %
Adjusted expense ratio18.1 %15.1 %19.0 %18.5 %18.7 %19.4 %18.7 %
Adjusted expense ratio, excluding total notable items related to adjusted other expenses and PRT (1)18.8 %20.6 %19.0 %19.2 %18.7 %19.7 %19.0 %
(1)Notable items are related to “litigation reserves and settlement costs.” 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. See Page A-2 for further detail.

7
METLIFE
CONSOLIDATED BALANCE SHEETS
Unaudited (In millions)September 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021
ASSETS
Investments:
Fixed maturity securities available-for-sale, at estimated fair value$353,809 $354,809 $332,941 $340,695 $341,038 
Equity securities, at estimated fair value1,111 1,079 1,063 1,001 941 
Contractholder-directed equity securities and fair value option securities, at estimated fair value 12,276 13,319 12,975 12,177 12,055 
Mortgage loans82,881 83,919 83,015 81,497 80,964 
Policy loans9,580 9,493 9,334 9,256 9,186 
Real estate and real estate joint ventures11,643 11,933 12,007 11,901 12,182 
Other limited partnership interests8,569 9,470 10,961 11,980 13,480 
Short-term investments, principally at estimated fair value3,832 3,904 4,781 3,759 7,150 
Other invested assets22,544 20,593 18,677 18,977 18,683 
Total investments506,245 508,519 485,754 491,243 495,679 
Cash and cash equivalents, principally at estimated fair value24,405 19,795 19,635 25,037 18,956 
Accrued investment income3,424 3,388 3,363 3,202 3,354 
Premiums, reinsurance and other receivables20,712 17,870 18,727 18,236 17,816 
Deferred policy acquisition costs and value of business acquired16,179 16,389 17,214 16,527 16,191 
Current income tax recoverable— — 214 52 — 
Goodwill9,360 10,112 9,944 9,768 9,638 
Assets held-for-sale— 7,418 6,599 7,590 7,462 
Other assets10,471 11,685 12,164 11,651 11,614 
Separate account assets189,696 199,970 196,200 189,947 180,954 
Total assets$780,492 $795,146 $769,814 $773,253 $761,664 
LIABILITIES AND EQUITY
Liabilities
Future policy benefits$203,929 $206,656 $197,755 $199,376 $197,086 
Policyholder account balances201,072 205,176 205,186 204,948 203,973 
Other policy-related balances16,883 17,101 18,045 17,527 17,735 
Policyholder dividends payable595 587 562 572 525 
Policyholder dividend obligation2,944 2,969 1,546 2,115 1,952 
Payables for collateral under securities loaned and other transactions34,772 29,475 28,694 30,620 31,382 
Short-term debt351 393 302 393 346 
Long-term debt 14,539 14,603 14,509 14,518 14,010 
Collateral financing arrangement924 845 833 818 806 
Junior subordinated debt securities3,152 3,153 3,153 3,154 3,155 
Current income tax payable638 129 — — 103 
Deferred income tax liability10,839 11,008 8,570 9,748 9,850 
Liabilities held-for-sale— 4,650 3,865 6,844 6,757 
Other liabilities 26,589 23,614 24,457 23,250 23,697 
Separate account liabilities189,696 199,970 196,200 189,947 180,954 
Total liabilities706,923 720,329 703,677 703,830 692,331 
Equity
Preferred stock, at par value— — — — — 
Common stock, at par value12 12 12 12 12 
Additional paid-in capital33,744 33,812 33,910 33,440 33,457 
Retained earnings36,782 36,491 36,373 39,318 40,426 
Treasury stock, at cost(13,258)(13,829)(14,828)(15,941)(16,956)
Accumulated other comprehensive income (loss)16,036 18,072 10,397 12,309 12,111 
Total MetLife, Inc.'s stockholders' equity73,316 74,558 65,864 69,138 69,050 
Noncontrolling interests253 259 273 285 283 
Total equity73,569 74,817 66,137 69,423 69,333 
Total liabilities and equity$780,492 $795,146 $769,814 $773,253 $761,664 

8
METLIFE
SUMMARY OF ADJUSTED EARNINGS AVAILABLE TO COMMON SHAREHOLDERS 
  For the Three Months Ended
Unaudited (In millions)September 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021
Adjusted earnings before provision for income tax
U.S.
GROUP BENEFITS$502 $490 $119 $315 $141 
RETIREMENT AND INCOME SOLUTIONS618 663 872 826 989 
PROPERTY & CASUALTY (1)19 138 — — — 
TOTAL U.S.$1,139 $1,291 $991 $1,141 $1,130 
ASIA662 694 868 741 806 
LATIN AMERICA63 17 53 131 28 
EMEA72 100 92 129 116 
METLIFE HOLDINGS314 533 776 672 761 
CORPORATE & OTHER(204)(302)(214)(106)(164)
Total adjusted earnings before provision for income tax
$2,046 $2,333 $2,566 $2,708 $2,677 
Provision for income tax expense (benefit)
U.S.
GROUP BENEFITS$110 $107 $26 $67 $30 
RETIREMENT AND INCOME SOLUTIONS128 137 181 172 205 
PROPERTY & CASUALTY (1)1 26 — — — 
TOTAL U.S.$239 $270 $207 $239 $235 
ASIA197 200 245 221 237 
LATIN AMERICA24 3 13 34 (1)
EMEA20 19 21 35 22 
METLIFE HOLDINGS61 107 158 136 155 
CORPORATE & OTHER(132)(138)(111)(81)(96)
Total provision for income tax expense (benefit)
$409 $461 $533 $584 $552 
Adjusted earnings available to common shareholders
U.S.
GROUP BENEFITS$392 $383 $93 $248 $111 
RETIREMENT AND INCOME SOLUTIONS490 526 691 654 784 
PROPERTY & CASUALTY (1)18 112 — — — 
TOTAL U.S.$900 $1,021 $784 $902 $895 
ASIA465 494 623 520 569 
LATIN AMERICA39 14 40 97 29 
EMEA52 81 71 94 94 
METLIFE HOLDINGS253 426 618 536 606 
CORPORATE & OTHER (2)(131)(198)(171)(60)(131)
Total adjusted earnings available to common shareholders (2)
$1,578 $1,838 $1,965 $2,089 $2,062 
(1)For the three months ended March 31, 2021, U.S. results exclude Property & Casualty, which was reported as divested business. MetLife subsequently completed the sale of the business and, therefore, Property & Casualty results are not reported for the three months ended June 30, 2021 and September 30, 2021. See the Non-GAAP and Other Financial Disclosures section for further information on divested business.
(2)Includes impact of preferred stock dividends of $59 million, $34 million, $68 million, $35 million and $63 million for the three months ended September 30, 2020, December 31, 2020, March 31, 2021, June 30, 2021 and September 30, 2021, respectively.
9
METLIFE
ADJUSTED RETURN ON ALLOCATED EQUITY AND ALLOCATED TANGIBLE EQUITY (1), (2)
 
ADJUSTED RETURN ON ALLOCATED EQUITY
  For the Three Months Ended
Unaudited September 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021
U.S.
GROUP BENEFITS54.1%52.9%12.8%34.2%15.3%
RETIREMENT AND INCOME SOLUTIONS31.7%34.0%43.1%40.8%48.9%
PROPERTY & CASUALTY (3)3.6%22.5%———
TOTAL U.S.32.5%36.9%33.7%38.7%38.4%
ASIA13.0%13.8%17.0%14.2%15.5%
LATIN AMERICA5.1%1.8%5.8%14.1%4.2%
EMEA7.3%11.3%10.0%13.2%13.2%
METLIFE HOLDINGS10.2%17.2%23.7%20.6%23.2%
ADJUSTED RETURN ON ALLOCATED TANGIBLE EQUITY (4)
  For the Three Months Ended
Unaudited September 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021
U.S.
37.3%42.4%39.3%45.1%44.8%
ASIA
19.6%20.9%25.4%21.3%23.2%
LATIN AMERICA
8.3%3.0%9.1%22.1%6.6%
EMEA
12.9%20.1%17.1%22.6%22.8%
METLIFE HOLDINGS
11.4%19.1%26.0%22.5%25.4%
(1) Annualized using quarter-to-date results.
(2) Allocated equity and allocated tangible equity are presented below:
  ALLOCATED EQUITYALLOCATED TANGIBLE EQUITY
Unaudited (In millions)2020202120202021
U.S.
GROUP BENEFITS
$2,896 $2,899 
RETIREMENT AND INCOME SOLUTIONS
6,187 6,418 
PROPERTY & CASUALTY (3)1,991 — 
TOTAL U.S.
$11,074 $9,317 $9,652 $8,116 
ASIA
$14,313 $14,648 $9,490 $9,824 
LATIN AMERICA
$3,074 $2,757 $1,876 $1,757 
EMEA
$2,855 $2,844 $1,649 $1,683 
METLIFE HOLDINGS
$9,893 $10,428 $9,022 $9,581 
(3) For the three months ended March 31, 2021, U.S. results exclude Property & Casualty, which was reported as divested business. MetLife subsequently completed the sale of the business and, therefore, Property & Casualty results are not reported for the three months ended June 30, 2021 and September 30, 2021. See the Non-GAAP and Other Financial Disclosures section for further information on divested business.
(4) Adjusted earnings available to common shareholders used to calculate the adjusted return on allocated tangible equity excludes the impact of amortization on VODA and VOCRA, net of income tax, as presented below:
For the Three Months Ended
Unaudited (In millions)
September 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021
U.S.
$1$1$14$13$14
ASIA
$1$1$1$2$1
LATIN AMERICA
$—$—$—$—$—
EMEA
$1$2$1$1$2
METLIFE HOLDINGS
$4$4$4$4$3

10
U.S. (1)
STATEMENTS OF ADJUSTED EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
  For the Three Months EndedFor the Year-to-Date Period Ended
Unaudited (In millions)September 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021September 30, 2020September 30, 2021
Adjusted revenues
Premiums$6,333 $10,074 $5,699 $5,474 $5,746 $17,191 $16,919 
Universal life and investment-type product policy fees263 264 297 282 279 806 858 
Net investment income1,827 1,885 2,010 1,998 2,098 5,018 6,106 
Other revenues237 240 396 380 383 717 1,159 
Total adjusted revenues8,660 12,463 8,402 8,134 8,506 23,732 25,042 
Adjusted expenses
Policyholder benefits and claims and policyholder dividends6,108 9,728 6,142 5,739 6,118 16,581 17,999 
Interest credited to policyholder account balances381 371 359 359 362 1,251 1,080 
Capitalization of DAC(119)(100)(18)(13)(17)(353)(48)
Amortization of DAC and VOBA123 114 16 8 26 357 50 
Amortization of negative VOBA— — — — — — — 
Interest expense on debt2 1 1 2 1 6 4 
Other expenses1,026 1,058 911 898 886 3,104 2,695 
Total adjusted expenses7,521 11,172 7,411 6,993 7,376 20,946 21,780 
Adjusted earnings before provision for income tax1,139 1,291 991 1,141 1,130 2,786 3,262 
Provision for income tax expense (benefit)239 270 207 239 235 583 681 
Adjusted earnings900 1,021 784 902 895 2,203 2,581 
Preferred stock dividends— — — — — — — 
Adjusted earnings available to common shareholders$900 $1,021 $784 $902 $895 $2,203 $2,581 
Adjusted premiums, fees and other revenues$6,833 $10,578 $6,392 $6,136 $6,408 $18,714 $18,936 
Less: PRT
487 4,163 — (14)(24)472 (38)
Adjusted premiums, fees and other revenues, excluding PRT$6,346 $6,415 $6,392 $6,150 $6,432 $18,242 $18,974 
(1)For the three months ended March 31, 2021, U.S. results exclude Property & Casualty, which was reported as divested business. MetLife subsequently completed the sale of the business and, therefore, Property & Casualty results are not reported for the three months ended June 30, 2021 and September 30, 2021. U.S. results prior to the three months ended March 31, 2021 include Property & Casualty. See page 9 for further information on adjusted earnings available to common shareholders related to Property & Casualty and see the Non-GAAP and Other Financial Disclosures section for further information on divested business.
11
U.S.
GROUP BENEFITS
STATEMENTS OF ADJUSTED EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
For the Three Months EndedFor the Year-to-Date Period Ended
Unaudited (In millions)September 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021September 30, 2020September 30, 2021
Adjusted revenues
Premiums$4,545 $4,659 $5,106 $5,085 $5,006 $13,021 $15,197 
Universal life and investment-type product policy fees200 205 212 207 204 604 623 
Net investment income290 283 279 295 290 844 864 
Other revenues156 156 318 307 307 473 932 
Total adjusted revenues5,191 5,303 5,915 5,894 5,807 14,942 17,616 
Adjusted expenses
Policyholder benefits and claims and policyholder dividends3,965 4,061 4,970 4,761 4,853 11,540 14,584 
Interest credited to policyholder account balances31 33 32 30 33 96 95 
Capitalization of DAC(5)(5)(5)(5)(5)(18)(15)
Amortization of DAC and VOBA12 8 5 8 8 26 21 
Amortization of negative VOBA— — — — — — — 
Interest expense on debt1 — — — — 1 — 
Other expenses685 716 794 785 777 2,075 2,356 
Total adjusted expenses4,689 4,813 5,796 5,579 5,666 13,720 17,041 
Adjusted earnings before provision for income tax502 490 119 315 141 1,222 575 
Provision for income tax expense (benefit)110 107 26 67 30 270 123 
Adjusted earnings392 383 93 248 111 952 452 
Preferred stock dividends— — — — — — — 
Adjusted earnings available to common shareholders$392 $383 $93 $248 $111 $952 $452 
Adjusted premiums, fees and other revenues$4,901 $5,020 $5,636 $5,599 $5,517 $14,098 $16,752 
12
U.S.
RETIREMENT AND INCOME SOLUTIONS
STATEMENTS OF ADJUSTED EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
For the Three Months EndedFor the Year-to-Date Period Ended
Unaudited (In millions)September 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021September 30, 2020September 30, 2021
Adjusted revenues
Premiums$885 $4,520 $593 $389 $740 $1,527 $1,722 
Universal life and investment-type product policy fees63 59 85 75 75 202 235 
Net investment income1,484 1,546 1,731 1,703 1,808 4,054 5,242 
Other revenues76 86 78 73 76 223 227 
Total adjusted revenues2,508 6,211 2,487 2,240 2,699 6,006 7,426 
Adjusted expenses
Policyholder benefits and claims and policyholder dividends1,428 5,086 1,172 978 1,265 3,207 3,415 
Interest credited to policyholder account balances350 338 327 329 329 1,155 985 
Capitalization of DAC(8)(2)(13)(8)(12)(28)(33)
Amortization of DAC and VOBA7 5 11 — 18 20 29 
Amortization of negative VOBA— — — — — — — 
Interest expense on debt1 1 1 2 1 5 4 
Other expenses112 120 117 113 109 337 339 
Total adjusted expenses1,890 5,548 1,615 1,414 1,710 4,696 4,739 
Adjusted earnings before provision for income tax618 663 872 826 989 1,310 2,687 
Provision for income tax expense (benefit)128 137 181 172 205 269 558 
Adjusted earnings490 526 691 654 784 1,041 2,129 
Preferred stock dividends— — — — — — — 
Adjusted earnings available to common shareholders$490 $526 $691 $654 $784 $1,041 $2,129 
Adjusted premiums, fees and other revenues$1,024 $4,665 $756 $537 $891 $1,952 $2,184 
Less: PRT
487 4,163 — (14)(24)472 (38)
Adjusted premiums, fees and other revenues, excluding PRT$537 $502 $756 $551 $915 $1,480 $2,222 
13
U.S.
GROUP BENEFITS
FUTURE POLICY BENEFITS AND POLICYHOLDER ACCOUNT BALANCES
  For the Three Months Ended
Unaudited (In millions)September 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021
Balance, beginning of period$19,665 $20,024 $19,932 $19,694 $19,783 
Premiums and deposits5,298 5,299 6,068 6,014 5,897 
Surrenders and withdrawals(565)(571)(642)(700)(673)
Benefit payments(4,078)(4,147)(4,970)(4,795)(4,895)
Net flows655 581 456 519 329 
Net transfers from (to) separate accounts6 4 2 2 1 
Interest131 134 123 123 125 
Policy charges(145)(143)(149)(147)(146)
Other(288)(668)(670)(408)(410)
Balance, end of period$20,024 $19,932 $19,694 $19,783 $19,682 
SEPARATE ACCOUNT LIABILITIES
  For the Three Months Ended
Unaudited (In millions)September 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021
Balance, beginning of period$945 $1,003 $1,123 $1,161 $1,233 
Premiums and deposits64 63 68 67 68 
Surrenders and withdrawals(17)(13)(18)(18)(16)
Benefit payments(4)(2)(1)(2)(2)
Net flows43 48 49 47 50 
Investment performance77 131 49 85 (4)
Net transfers from (to) general account(6)(4)(2)(2)(1)
Policy charges(56)(55)(57)(58)(58)
Other— — (1)— — 
Balance, end of period$1,003 $1,123 $1,161 $1,233 $1,220 
14
U.S.
GROUP BENEFITS
OTHER EXPENSES BY MAJOR CATEGORY
  For the Three Months Ended
Unaudited (In millions)September 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021
Direct and allocated expenses$332 $356 $405 $392 $400 
Pension, postretirement and postemployment benefit costs4 4 (1)7 8 
Premium taxes, other taxes, and licenses & fees93 87 70 83 73 
Commissions and other variable expenses256 269 320 303 296 
Adjusted other expenses$685 $716 $794 $785 $777 
OTHER STATISTICAL INFORMATION (1)
  For the Three Months Ended
Unaudited (In millions, except ratios)September 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021
Group Life (2)
Adjusted premiums, fees and other revenues$1,915 $1,915 $2,088 $2,078 $2,074 
Mortality ratio89.6 %96.3 %106.3 %94.3 %106.2 %
Group Non-Medical Health (3)
Adjusted premiums, fees and other revenues$1,977 $2,079 $2,371 $2,341 $2,352 
Interest adjusted benefit ratio (4)67.4 %61.7 %71.1 %73.8 %70.7 %
(1) Results are derived from insurance and non-administrative services-only contracts.
(2) Excludes certain experience-rated contracts and includes accidental death and dismemberment.
(3) Includes dental, group and individual disability, accident & health, critical illness, vision and other health.
(4) 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.

15
U.S.
RETIREMENT AND INCOME SOLUTIONS
 
FUTURE POLICY BENEFITS AND POLICYHOLDER ACCOUNT BALANCES
  For the Three Months Ended
Unaudited (In millions)September 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021
Balance, beginning of period$129,030 $132,376 $136,703 $134,056 $136,524 
Premiums and deposits18,957 20,961 22,008 20,382 20,813 
Surrenders and withdrawals(18,536)(17,176)(19,926)(19,759)(20,936)
Benefit payments(1,206)(1,182)(1,317)(1,344)(1,379)
Net flows(785)2,603 765 (721)(1,502)
Net transfers from (to) separate accounts— 17 — 8 — 
Interest953 946 946 938 942 
Policy charges(42)(41)(10)(44)(43)
Other3,220 802 (4,348)2,287 (1,638)
Balance, end of period$132,376 $136,703 $134,056 $136,524 $134,283 
SEPARATE ACCOUNT LIABILITIES
  For the Three Months Ended
Unaudited (In millions)September 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021
Balance, beginning of period$81,486 $83,887 $84,193 $82,183 $82,432 
Premiums and deposits1,709 2,138 1,393 1,443 1,027 
Surrenders and withdrawals (1)(2,127)(2,971)(2,390)(2,329)(3,214)
Benefit payments(25)(24)(22)(64)(27)
Net flows(443)(857)(1,019)(950)(2,214)
Investment performance1,447 2,069 (1,302)2,167 256 
Net transfers from (to) general account— (17)— (8)— 
Policy charges(83)(94)(84)(83)(87)
Other1,480 (795)395 (877)704 
Balance, end of period$83,887 $84,193 $82,183 $82,432 $81,091 
SYNTHETIC GICS (2)
For the Three Months Ended
Unaudited (In millions)September 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021
Balance, beginning of period$34,921 $36,330 $38,646 $38,514 $37,773 
Premiums and deposits (1)1,598 2,704 482 314 1,857 
Surrenders and withdrawals(417)(621)(829)(1,251)(463)
Net flows 1,181 2,083 (347)(937)1,394 
Interest228 233 215 196 198 
Balance, end of period$36,330 $38,646 $38,514 $37,773 $39,365 
LONGEVITY REINSURANCE (3)
Unaudited (In millions)September 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021
Balance, end of period$896 $3,894 $8,833 $9,502 $9,358 
(1)Includes $616 million, $360 million, $86 million, $0 and $119 million of transfers from separate account GICs to synthetic GICs at September 30, 2020, December 31, 2020, March 31, 2021, June 30, 2021 and September 30, 2021, respectively. These transfers are reported as surrenders and withdrawals on the separate account liabilities table and premiums and deposits on the synthetic GICs table.
(2)A synthetic GIC is a contract that simulates the performance of a traditional GIC through the use of financial instruments and is reported as a derivative. A key difference between a synthetic GIC and a traditional GIC is that the contractholder owns the assets underlying the synthetic GIC. The assets and corresponding contractholder account balance are not on MetLife, Inc.'s consolidated balance sheet, as they are for a traditional GIC. The contractholder account balance is reported at contract value in the table above.
(3)The contract value presented represents notional amounts based on the present value of fixed annuity premiums related to longevity reinsurance contracts associated with the UK pension risk transfer market.

16
U.S.
RETIREMENT AND INCOME SOLUTIONS
OTHER EXPENSES BY MAJOR CATEGORY
For the Three Months Ended
Unaudited (In millions)September 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021
Direct and allocated expenses$57 $60 $61 $58 $57 
Pension, postretirement and postemployment benefit costs1 2 — 2 2 
Premium taxes, other taxes, and licenses & fees6 10 4 11 3 
Commissions and other variable expenses48 48 52 42 47 
Adjusted other expenses$112 $120 $117 $113 $109 
SPREAD
For the Three Months Ended
UnauditedSeptember 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021
Investment income yield excluding variable investment income yield3.99 %3.98 %3.77 %3.82 %3.77 %
Variable investment income yield0.58 %0.73 %1.46 %1.26 %1.63 %
Total investment income yield4.57 %4.71 %5.23 %5.08 %5.40 %
Average crediting rate3.01 %2.94 %2.89 %2.84 %2.84 %
Annualized general account spread1.56 %1.77 %2.34 %2.24 %2.56 %
Annualized general account spread excluding variable investment income yield0.98 %1.04 %0.88 %0.98 %0.93 %

17
ASIA
STATEMENTS OF ADJUSTED EARNINGS AVAILABLE TO COMMON SHAREHOLDERS 
For the Three Months EndedFor the Year-to-Date Period Ended
Unaudited (In millions)September 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021September 30, 2020September 30, 2021
Adjusted revenues
Premiums$1,654 $1,697 $1,685 $1,582 $1,594 $4,874 $4,861 
Universal life and investment-type product policy fees595 447 458 436 477 1,445 1,371 
Net investment income1,088 1,146 1,264 1,158 1,354 2,792 3,776 
Other revenues16 17 18 19 17 44 54 
Total adjusted revenues3,353 3,307 3,425 3,195 3,442 9,155 10,062 
Adjusted expenses
Policyholder benefits and claims and policyholder dividends1,291 1,346 1,297 1,233 1,220 3,867 3,750 
Interest credited to policyholder account balances470 472 489 496 513 1,362 1,498 
Capitalization of DAC(431)(449)(435)(395)(373)(1,203)(1,203)
Amortization of DAC and VOBA506 310 314 296 470 1,105 1,080 
Amortization of negative VOBA(14)(7)(7)(8)(5)(30)(20)
Interest expense on debt— — — — — — — 
Other expenses869 941 899 832 811 2,540 2,542 
Total adjusted expenses2,691 2,613 2,557 2,454 2,636 7,641 7,647 
Adjusted earnings before provision for income tax662 694 868 741 806 1,514 2,415 
Provision for income tax expense (benefit)197 200 245 221 237 443 703 
Adjusted earnings465 494 623 520 569 1,071 1,712 
Preferred stock dividends— — — — — — — 
Adjusted earnings available to common shareholders$465 $494 $623 $520 $569 $1,071 $1,712 
Adjusted premiums, fees and other revenues$2,265 $2,161 $2,161 $2,037 $2,088 $6,363 $6,286 
18
ASIA
ADJUSTED PREMIUMS, FEES AND OTHER REVENUES
For the Three Months Ended
Unaudited (In millions)September 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021
Adjusted premiums, fees and other revenues$2,265 $2,161 $2,161 $2,037 $2,088 
Adjusted premiums, fees and other revenues, on a constant currency basis $2,225 $2,076 $2,089 $2,011 $2,088 
Add: Operating joint ventures, on a constant currency basis (1), (2)300 293 343 278 321 
Adjusted premiums, fees and other revenues, including operating joint ventures, on a constant currency basis$2,525 $2,369 $2,432 $2,289 $2,409 
OTHER EXPENSES BY MAJOR CATEGORY
For the Three Months Ended
Unaudited (In millions)September 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021
Direct and allocated expenses$313 $354 $318 $314 $305 
Pension, postretirement and postemployment benefit costs24 35 23 22 22 
Premium taxes, other taxes, and licenses & fees42 41 46 45 39 
Commissions and other variable expenses490 511 512 451 445 
Adjusted other expenses$869 $941 $899 $832 $811 
Adjusted other expenses, net of adjusted capitalization of DAC$438 $492 $464 $437 $438 
Adjusted other expenses on a constant currency basis$850 $900 $870 $824 $811 
Add: Operating joint ventures, on a constant currency basis (1), (2)105 109 115 92 100 
Adjusted other expenses, including operating joint ventures, on a constant currency basis$955 $1,009 $985 $916 $911 
Adjusted other expenses, including operating joint ventures, net of adjusted capitalization of DAC, on a constant currency basis
$507 $551 $533 $502 $513 
SALES ON A CONSTANT CURRENCY BASIS
For the Three Months Ended
Unaudited (In millions)September 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021
Japan:
Life$222 $150 $167 $163 $165 
Accident & Health75 71 60 70 64 
Annuities38 72 91 76 66 
Other2 2 1 1 2 
Total Japan337 295 319 310 297 
Other Asia228 243 257 183 201 
   Total sales$565 $538 $576 $493 $498 
OTHER STATISTICAL INFORMATION
For the Three Months Ended
Unaudited (In millions)September 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021
Adjusted earnings available to common shareholders$465 $494 $623 $520 $569 
Adjusted earnings available to common shareholders, on a constant currency basis$466 $490 $613 $515 $569 
(1)Adjusted premiums, fees and other revenues as well as other expenses are reported as part of net investment income on the statements of adjusted earnings available to common shareholders for operating joint ventures.
(2)Includes MetLife, Inc.'s percentage interest in operating joint ventures of: (i) China, (ii) India, (iii) Malaysia and (iv) Vietnam, which are consolidated using the equity method of accounting.

19
ASIA
ASIA GENERAL ACCOUNT ASSETS UNDER MANAGEMENT AND RELATED MEASURES
Unaudited (In millions)September 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021
GA AUM $139,445 $144,267 $137,258 $140,875 $141,304 
GA AUM (at amortized cost)$125,171 $129,661 $127,695 $129,411 $130,777 
GA AUM (at amortized cost), on a constant currency basis$122,095 $123,505 $125,957 $128,116 $130,777 
  Add: Operating joint ventures, on a constant currency basis (1)5,396 5,628 5,789 5,973 6,136 
GA AUM (at amortized cost), including operating joint ventures, on a constant currency basis$127,491 $129,133 $131,746 $134,089 $136,913 
(1)Includes MetLife, Inc.'s percentage interest in operating joint ventures of: (i) China, (ii) India, (iii) Malaysia and (iv) Vietnam, which are consolidated using the equity method of accounting and reported in other invested assets, a component of total investments.

20
LATIN AMERICA
STATEMENTS OF ADJUSTED EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
 
For the Three Months EndedFor the Year-to-Date Period Ended
Unaudited (In millions)September 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021September 30, 2020September 30, 2021
Adjusted revenues
Premiums$529 $607 $595 $636 $705 $1,658 $1,936 
Universal life and investment-type product policy fees225 261 270 287 274 733 831 
Net investment income221 293 299 308 306 699 913 
Other revenues7 10 10 11 9 28 30 
Total adjusted revenues982 1,171 1,174 1,242 1,294 3,118 3,710 
Adjusted expenses
Policyholder benefits and claims and policyholder dividends575 772 761 724 885 1,634 2,370 
Interest credited to policyholder account balances52 62 59 60 63 178 182 
Capitalization of DAC(84)(104)(95)(100)(109)(258)(304)
Amortization of DAC and VOBA62 70 60 83 62 206 205 
Amortization of negative VOBA— — — — — — — 
Interest expense on debt1 1 1 1 2 3 4 
Other expenses313 353 335 343 363 965 1,041 
Total adjusted expenses919 1,154 1,121 1,111 1,266 2,728 3,498 
Adjusted earnings before provision for income tax63 17 53 131 28 390 212 
Provision for income tax expense (benefit)24 3 13 34 (1)124 46 
Adjusted earnings39 14 40 97 29 266 166 
Preferred stock dividends— — — — — — — 
Adjusted earnings available to common shareholders$39 $14 $40 $97 $29 $266 $166 
Adjusted premiums, fees and other revenues$761 $878 $875 $934 $988 $2,419 $2,797 
21
LATIN AMERICA
OTHER EXPENSES BY MAJOR CATEGORY
For the Three Months Ended
Unaudited (In millions)September 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021
Direct and allocated expenses$117 $125 $121 $120 $126 
Pension, postretirement and postemployment benefit costs1 1 1 1 2 
Premium taxes, other taxes, and licenses & fees11 12 11 11 10 
Commissions and other variable expenses184 215 202 211 225 
Adjusted other expenses$313 $353 $335 $343 $363 
Adjusted other expenses, net of adjusted capitalization of DAC$229 $249 $240 $243 $254 
Adjusted other expenses on a constant currency basis$328 $355 $332 $336 $363 
Adjusted other expenses, net of adjusted capitalization of DAC, on a constant currency basis$239 $251 $238 $238 $254 
SALES ON A CONSTANT CURRENCY BASIS
For the Three Months Ended
Unaudited (In millions)September 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021
Mexico$76 $80 $92 $92 $96 
Chile43 46 49 57 67 
All other42 45 41 69 71 
Total sales$161 $171 $182 $218 $234 
OTHER STATISTICAL INFORMATION
For the Three Months Ended
Unaudited (In millions)September 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021
Adjusted premiums, fees and other revenues$761 $878 $875 $934 $988 
Adjusted earnings available to common shareholders$39 $14 $40 $97 $29 
Adjusted premiums, fees and other revenues, on a constant currency basis$807 $887 $869 $915 $988 
Adjusted earnings available to common shareholders, on a constant currency basis$41 $15 $35 $91 $29 

22
EMEA
STATEMENTS OF ADJUSTED EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
 
For the Three Months EndedFor the Year-to-Date Period Ended
Unaudited (In millions)September 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021September 30, 2020September 30, 2021
Adjusted revenues
Premiums$551 $583 $598 $621 $532 $1,676 $1,751 
Universal life and investment-type product policy fees116 109 67 107 128 324 302 
Net investment income67 70 63 62 46 199 171 
Other revenues13 15 13 16 10 37 39 
Total adjusted revenues747 777 741 806 716 2,236 2,263 
Adjusted expenses
Policyholder benefits and claims and policyholder dividends304 319 343 333 268 877 944 
Interest credited to policyholder account balances29 26 24 25 17 83 66 
Capitalization of DAC(122)(124)(127)(122)(110)(367)(359)
Amortization of DAC and VOBA125 114 62 94 118 340 274 
Amortization of negative VOBA(1)(3)(2)(2)(1)(5)(5)
Interest expense on debt— 1 — — — — — 
Other expenses340 344 349 349 308 1,000 1,006 
Total adjusted expenses675 677 649 677 600 1,928 1,926 
Adjusted earnings before provision for income tax72 100 92 129 116 308 337 
Provision for income tax expense (benefit)20 19 21 35 22 62 78 
Adjusted earnings52 81 71 94 94 246 259 
Preferred stock dividends— — — — — — — 
Adjusted earnings available to common shareholders$52 $81 $71 $94 $94 $246 $259 
Adjusted premiums, fees and other revenues$680 $707 $678 $744 $670 $2,037 $2,092 
23
EMEA
OTHER EXPENSES BY MAJOR CATEGORY
For the Three Months Ended
Unaudited (In millions)September 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021
Direct and allocated expenses$119 $120 $112 $116 $98 
Pension, postretirement and postemployment benefit costs1 4 1 2 3 
Premium taxes, other taxes, and licenses & fees7 5 8 6 5 
Commissions and other variable expenses213 215 228 225 202 
Adjusted other expenses$340 $344 $349 $349 $308 
Adjusted other expenses, net of adjusted capitalization of DAC$218 $220 $222 $227 $198 
Adjusted other expenses on a constant currency basis $340 $344 $342 $344 $308 
Adjusted other expenses, net of adjusted capitalization of DAC, on a constant currency basis$219 $221 $218 $224 $198 
OTHER STATISTICAL INFORMATION
  For the Three Months Ended
Unaudited (In millions)September 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021
Adjusted premiums, fees and other revenues$680 $707 $678 $744 $670 
Adjusted earnings available to common shareholders$52 $81 $71 $94 $94 
Adjusted premiums, fees and other revenues, on a constant currency basis$682 $706 $664 $734 $670 
Adjusted earnings available to common shareholders, on a constant currency basis$52 $80 $68 $92 $94 
Total sales on a constant currency basis$206 $218 $261 $232 $195 
24
METLIFE HOLDINGS
STATEMENTS OF ADJUSTED EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
For the Three Months EndedFor the Year-to-Date Period Ended
Unaudited (In millions)September 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021September 30, 2020September 30, 2021
Adjusted revenues
Premiums$876 $931 $827 $839 $805 $2,669 $2,471 
Universal life and investment-type product policy fees269 261 274 273 279 812 826 
Net investment income1,427 1,461 1,646 1,543 1,771 3,723 4,960 
Other revenues61 72 62 69 57 166 188 
Total adjusted revenues2,633 2,725 2,809 2,724 2,912 7,370 8,445 
Adjusted expenses
Policyholder benefits and claims and policyholder dividends1,697 1,675 1,523 1,549 1,611 5,063 4,683 
Interest credited to policyholder account balances217 214 210 210 212 654 632 
Capitalization of DAC(5)(24)(8)(9)(8)(15)(25)
Amortization of DAC and VOBA177 82 54 56 80 288 190 
Amortization of negative VOBA— — — — — — — 
Interest expense on debt2 1 1 2 1 5 4 
Other expenses231 244 253 244 255 698 752 
Total adjusted expenses2,319 2,192 2,033 2,052 2,151 6,693 6,236 
Adjusted earnings before provision for income tax314 533 776 672 761 677 2,209 
Provision for income tax expense (benefit)61 107 158 136 155 127 449 
Adjusted earnings253 426 618 536 606 550 1,760 
Preferred stock dividends— — — — — — — 
Adjusted earnings available to common shareholders$253 $426 $618 $536 $606 $550 $1,760 
Adjusted premiums, fees and other revenues$1,206 $1,264 $1,163 $1,181 $1,141 $3,647 $3,485 
25
METLIFE HOLDINGS
FUTURE POLICY BENEFITS AND POLICYHOLDER ACCOUNT BALANCES
LIFE & OTHER (1)
For the Three Months Ended
Unaudited (In millions)September 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021
Balance, beginning of period$81,497 $83,021 $83,004 $81,446 $81,993 
Premiums and deposits (2), (3)1,236 1,216 1,142 1,100 1,070 
Surrenders and withdrawals(607)(567)(529)(538)(532)
Benefit payments(830)(832)(936)(790)(818)
Net flows(201)(183)(323)(228)(280)
Net transfers from (to) separate accounts5 12 2 9 12 
Interest836 836 831 834 838 
Policy charges(184)(184)(185)(183)(183)
Other1,068 (498)(1,883)115 (265)
Balance, end of period$83,021 $83,004 $81,446 $81,993 $82,115 
ANNUITIESFor the Three Months Ended
Unaudited (In millions)September 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021
Balance, beginning of period$19,538 $19,466 $19,029 $18,367 $18,270 
Premiums and deposits (2), (3)91 111 107 91 72 
Surrenders and withdrawals(286)(356)(340)(306)(326)
Benefit payments(149)(158)(171)(150)(144)
Net flows(344)(403)(404)(365)(398)
Net transfers from (to) separate accounts188 170 96 29 61 
Interest130 131 129 125 125 
Policy charges(4)(4)(4)(4)(4)
Other(42)(331)(479)118 287 
Balance, end of period$19,466 $19,029 $18,367 $18,270 $18,341 
SEPARATE ACCOUNT LIABILITIES
LIFE & OTHER
For the Three Months Ended
Unaudited (In millions)September 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021
Balance, beginning of period$5,583 $6,039 $6,848 $7,021 $7,424 
Premiums and deposits (3)59 59 62 57 56 
Surrenders and withdrawals(51)(55)(68)(67)(61)
Benefit payments(10)(11)(16)(18)(15)
Net flows(2)(7)(22)(28)(20)
Investment performance527 895 260 508 (80)
Net transfers from (to) general account(5)(12)(2)(9)(12)
Policy charges(65)(66)(66)(66)(66)
Other1 (1)3 (2)2 
Balance, end of period$6,039 $6,848 $7,021 $7,424 $7,248 
ANNUITIES
For the Three Months Ended
Unaudited (In millions)September 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021
Balance, beginning of period$36,852 $37,883 $40,825 $40,444 $41,543 
Premiums and deposits (3)65 75 79 83 61 
Surrenders and withdrawals(812)(942)(1,062)(1,094)(1,127)
Benefit payments(106)(107)(128)(121)(116)
Net flows(853)(974)(1,111)(1,132)(1,182)
Investment performance
2,269 4,282 1,017 2,460 (258)
Net transfers from (to) general account(188)(170)(96)(29)(61)
Policy charges(197)(196)(190)(200)(203)
Other— — (1)— 1 
Balance, end of period$37,883 $40,825 $40,444 $41,543 $39,840 
(1) Long-term care and Japan reinsurance are reported as part of "Other" within Life & Other.
(2) Includes premiums and deposits directed to the general account investment option of variable products.
(3) Includes company-sponsored internal exchanges.
26
METLIFE HOLDINGS
OTHER EXPENSES BY MAJOR CATEGORY
  For the Three Months Ended
Unaudited (In millions)September 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021
Direct and allocated expenses$155 $149 $166 $164 $165 
Pension, postretirement and postemployment benefit costs3 3 — 4 4 
Premium taxes, other taxes, and licenses & fees17 25 14 18 16 
Commissions and other variable expenses56 67 73 58 70 
Adjusted other expenses$231 $244 $253 $244 $255 
OTHER STATISTICAL INFORMATION
For the Three Months Ended
Unaudited (In millions, except ratios)September 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021
Life (1)
Adjusted premiums, fees and other revenues$811 $843 $762 $766 $734 
Interest adjusted benefit ratio60.2 %59.6 %54.8 %47.1 %53.3 %
Lapse Ratio (2)
Traditional life4.3 %4.1 %4.0 %4.0 %4.0 %
Variable & universal life3.7 %3.5 %3.3 %3.3 %3.3 %
Fixed annuity8.5 %6.5 %6.6 %6.7 %6.8 %
Variable annuity9.2 %8.8 %8.5 %9.2 %9.7 %
(1) Represents the traditional life and variable & universal life components of Life & Other. Results are derived from insurance contracts.                                        
(2) Lapse ratios are calculated based on the average of the most recent 12 months of experience.

27
CORPORATE & OTHER
STATEMENTS OF ADJUSTED EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
For the Three Months EndedFor the Year-to-Date Period Ended
Unaudited (In millions)September 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021September 30, 2020September 30, 2021
Adjusted revenues
Premiums$(8)$5 $58 $(20)$16 $17 $54 
Universal life and investment-type product policy fees1 1 — 1 — 2 1 
Net investment income58 20 12 48 93 22 153 
Other revenues82 106 86 109 108 238 303 
Total adjusted revenues133 132 156 138 217 279 511 
Adjusted expenses
Policyholder benefits and claims and policyholder dividends(6)(26)40 (13)9 23 36 
Interest credited to policyholder account balances— — — — — — — 
Capitalization of DAC(3)(3)(3)(3)(3)(8)(9)
Amortization of DAC and VOBA2 2 2 3 2 6 7 
Amortization of negative VOBA— — — — — — — 
Interest expense on debt224 226 224 223 236 669 683 
Other expenses120 235 107 34 137 390 278 
Total adjusted expenses337 434 370 244 381 1,080 995 
Adjusted earnings before provision for income tax(204)(302)(214)(106)(164)(801)(484)
Provision for income tax expense (benefit)(132)(138)(111)(81)(96)(418)(288)
Adjusted earnings(72)(164)(103)(25)(68)(383)(196)
Preferred stock dividends59 34 68 35 63 168 166 
Adjusted earnings available to common shareholders$(131)$(198)$(171)$(60)$(131)$(551)$(362)
Adjusted premiums, fees and other revenues$75 $112 $144 $90 $124 $257 $358 
ADJUSTED EARNINGS AVAILABLE TO COMMON SHAREHOLDERS BY SOURCE
  For the Three Months EndedFor the Year-to-Date Period Ended
Unaudited (In millions)September 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021September 30, 2020September 30, 2021
Business activities$30 $36 $29 $28 $41 $60 $98 
Net investment income59 28 13 51 95 26 159 
Interest expense on debt(238)(238)(234)(235)(247)(705)(716)
Corporate initiatives and projects(27)(76)(25)(24)(25)(83)(74)
Other(28)(52)3 74 (28)(99)49 
Provision for income tax (expense) benefit and other tax-related items132 138 111 81 96 418 288 
Preferred stock dividends(59)(34)(68)(35)(63)(168)(166)
Adjusted earnings available to common shareholders$(131)$(198)$(171)$(60)$(131)$(551)$(362)
28
INVESTMENTS
INVESTMENT PORTFOLIO RESULTS BY ASSET CATEGORY AND ANNUALIZED YIELDS
This yield table presentation is consistent with how we measure our investment performance for management purposes, and we believe it enhances understanding of our investment portfolio results.
At or For the Three Months Ended (1)At or For the Year Ended (1)
Unaudited (In millions, except yields)September 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021September 30, 2020September 30, 2021
Fixed Maturity Securities
Yield3.87 %3.83 %3.72 %3.76 %3.71 %3.89 %3.73 %
Investment income (2), (3)$2,849 $2,883 $2,784 $2,785 $2,761 $8,473 $8,330 
Investment gains (losses)113 31 (64)6 130 263 72 
Ending carrying value (4)355,220 356,420 334,594 342,344 342,591 355,220 342,591 
Mortgage Loans
Yield4.27 %4.25 %4.11 %4.29 %4.12 %4.28 %4.18 %
Investment income (3)885 887 861 885 837 2,631 2,583 
Investment gains (losses)(5)(65)60 (2)43 (148)101 
Ending carrying value82,881 83,919 83,015 81,497 80,964 82,881 80,964 
Real Estate and Real Estate Joint Ventures
Yield0.39 %2.30 %3.18 %3.65 %6.00 %1.30 %4.28 %
Investment income11 68 95 109 181 110 385 
Investment gains (losses)1 3 48 368 66 4 482 
Ending carrying value11,643 11,933 12,007 11,901 12,182 11,643 12,182 
Policy Loans
Yield5.15 %5.18 %5.14 %5.18 %5.09 %5.18 %5.14 %
Investment income124 124 121 120 118 374 359 
Ending carrying value9,580 9,493 9,334 9,256 9,186 9,580 9,186 
Equity Securities
Yield5.56 %4.19 %4.90 %4.30 %4.85 %5.03 %4.69 %
Investment income15 10 11 9 8 40 28 
Investment gains (losses)2 73 75 55 (33)(210)97 
Ending carrying value1,111 1,079 1,063 1,001 941 1,111 941 
Other Limited Partnership Interests
Yield (5)28.28 %31.63 %50.30 %36.58 %48.43 %4.90 %45.04 %
Investment income (5)578 714 1,285 1,050 1,542 296 3,877 
Investment gains (losses)(4)(16)(5)(8)(4)1 (17)
Ending carrying value (6)8,569 9,470 10,961 11,980 13,480 8,569 13,480 
Cash and Short-term Investments
Yield1.28 %1.01 %0.87 %0.72 %0.70 %1.44 %0.76 %
Investment income34 24 21 21 20 116 62 
Investment gains (losses)(19)(8)4 2 6 (20)12 
Ending carrying value (7)28,234 23,696 24,416 28,796 26,106 28,234 26,106 
Other Invested Assets
Investment income 331 318 298 266 342 844 906 
Investment gains (losses)54 49 17 19 12 181 48 
Ending carrying value22,544 20,593 18,677 18,977 18,683 22,544 18,683 
Total Investments
Investment income yield4.52 %4.63 %5.05 %4.85 %5.36 %4.07 %5.09 %
Investment fees and expenses yield(0.12)%(0.14)%(0.13)%(0.12)%(0.12)%(0.12)%(0.12)%
Net Investment Income Yield4.40 %4.49 %4.92 %4.73 %5.24 %3.95 %4.97 %
Investment income$4,827 $5,028 $5,476 $5,245 $5,809 $12,884 $16,530 
Investment fees and expenses(131)(151)(146)(128)(125)(387)(399)
Net investment income including divested businesses4,696 4,877 5,330 5,117 5,684 12,497 16,131 
Less: Net investment income from divested businesses8 2 36 — 16 44 52 
Adjusted Net Investment Income (8)$4,688 $4,875 $5,294 $5,117 $5,668 $12,453 $16,079 
Ending Carrying Value$519,782 $516,603 $494,067 $505,752 $504,133 $519,782 $504,133 
Investment Portfolio Gains (Losses) including divested businesses$142 $67 $135 $440 $220 $71 $795 
Less: Divested businesses18 — 28 — — 18 28 
Investment Portfolio Gains (Losses) (9)$124 $67 $107 $440 $220 $53 $767 
Gross investment gains289 338 372 656 352 1,402 1,380 
Gross investment losses(202)(178)(288)(164)(156)(1,036)(608)
Net credit loss (provision) release and (impairments)37 (93)23 (52)24 (313)(5)
Investment Portfolio Gains (Losses) (9)124 67 107 440 220 53 767 
Investment portfolio gains (losses) income tax (expense) benefit(19)15 (25)(78)(60)(116)(163)
Investment Portfolio Gains (Losses), Net of Income Tax$105 $82 $82 $362 $160 $(63)$604 
Derivative gains (losses) including Divested businesses $(809)$(1,820)$(2,455)$210 $(445)$2,363 $(2,690)
Less: Derivative gains (losses) from divested businesses— — (1)— — — (1)
Derivative gains (losses) (9)(809)(1,820)(2,454)210 (445)2,363 (2,689)
Derivative gains (losses) income tax (expense) benefit165 390 599 (63)127 (525)663 
Derivative Gains (Losses), Net of Income Tax$(644)$(1,430)$(1,855)$147 $(318)$1,838 $(2,026)
See footnotes on Page 32.

29
INVESTMENTS
 
SUMMARY OF FIXED MATURITY SECURITIES AVAILABLE-FOR-SALE
BY SECTOR AND QUALITY DISTRIBUTION
September 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021
Unaudited (In millions, except ratios)Amount% of TotalAmount% of TotalAmount% of TotalAmount% of TotalAmount% of Total
U.S. corporate securities$90,622 25.6 %$93,416 26.3 %$88,002 26.4 %$91,371 26.8 %$92,012 27.0 %
Foreign corporate securities65,394 18.5 %69,408 19.5 %65,883 19.8 %65,605 19.2 %63,922 18.7 %
Foreign government securities68,611 19.4 %71,699 20.2 %67,137 20.2 %64,630 19.0 %63,380 18.6 %
U.S. government and agency securities51,644 14.6 %47,100 13.3 %41,402 12.4 %46,556 13.7 %48,100 14.1 %
Residential mortgage-backed securities33,454 9.5 %30,435 8.6 %29,302 8.8 %29,848 8.8 %30,267 8.9 %
Asset-backed securities17,355 4.9 %17,119 4.8 %16,217 4.9 %16,713 4.9 %17,403 5.1 %
Municipals14,958 4.2 %13,722 3.9 %13,212 4.0 %13,923 4.1 %14,040 4.1 %
Commercial mortgage-backed securities11,771 3.3 %11,910 3.4 %11,786 3.5 %12,049 3.5 %11,914 3.5 %
Fixed Maturity Securities Available-For-Sale$353,809 100.0 %$354,809 100.0 %$332,941 100.0 %$340,695 100.0 %$341,038 100.0 %
NAICNRSRO
DESIGNATIONRATING
1Aaa / Aa / A$255,171 72.1 %$250,013 70.5 %$231,570 69.6 %$237,231 69.6 %$239,158 70.1 %
2Baa82,519 23.3 %87,702 24.7 %84,467 25.4 %86,293 25.3 %84,831 24.9 %
3Ba11,710 3.3 %12,812 3.6 %12,825 3.8 %12,978 3.8 %12,876 3.8 %
4B3,672 1.1 %3,702 1.1 %3,397 1.0 %3,534 1.1 %3,584 1.0 %
5Caa and lower721 0.2 %503 0.1 %633 0.2 %604 0.2 %565 0.2 %
6In or near default16 — %77 — %49 — %55 — %24 — %
Fixed Maturity Securities Available-For-Sale (10)$353,809 100.0 %$354,809 100.0 %$332,941 100.0 %$340,695 100.0 %$341,038 100.0 %
GROSS UNREALIZED GAINS AND LOSSES
FIXED MATURITY SECURITIES AVAILABLE-FOR-SALE
Unaudited (In millions)September 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021
Gross unrealized gains$42,902 $45,519 $31,251 $35,681 $33,349 
Gross unrealized losses2,114 1,440 2,973 1,989 2,247 
Net Unrealized Gains (Losses)$40,788 $44,079 $28,278 $33,692 $31,102 
See footnotes on Page 32.

30
INVESTMENTS
SUMMARY OF MORTGAGE LOANS
Unaudited (In millions)September 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021
          
Commercial mortgage loans$51,448 $52,434 $52,300 $51,602 $51,336 
Agricultural mortgage loans17,402 18,128 18,051 18,044 18,353 
Residential mortgage loans14,551 13,947 13,192 12,421 11,838 
Mortgage Loans83,401 84,509 83,543 82,067 81,527 
Valuation allowances(520)(590)(528)(570)(563)
Mortgage Loans, net$82,881 $83,919 $83,015 $81,497 $80,964 
SUMMARY OF COMMERCIAL MORTGAGE LOANS
BY REGION AND PROPERTY TYPE
 
September 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021
Unaudited (In millions, except ratios)Amount% of TotalAmount% of TotalAmount% of TotalAmount% of TotalAmount% of Total
Pacific$10,374 20.2 %$10,235 19.5 %$10,401 19.9 %$10,161 19.7 %$10,249 20.0 %
Non-U.S.9,828 19.1 %10,581 20.2 %10,507 20.1 %10,227 19.8 %9,501 18.5 %
Middle Atlantic8,234 16.0 %8,233 15.7 %8,170 15.6 %8,115 15.7 %7,877 15.3 %
South Atlantic6,661 13.0 %7,217 13.8 %7,134 13.6 %7,186 13.9 %7,047 13.7 %
West South Central3,973 7.7 %3,887 7.4 %3,655 7.0 %3,636 7.0 %3,434 6.7 %
New England2,019 3.9 %2,126 4.0 %2,148 4.1 %2,214 4.3 %2,623 5.1 %
East North Central2,518 4.9 %2,494 4.8 %2,555 4.9 %2,197 4.3 %2,229 4.3 %
Mountain1,753 3.4 %1,777 3.4 %1,650 3.2 %1,903 3.7 %1,996 3.9 %
East South Central499 1.0 %700 1.3 %753 1.4 %781 1.5 %824 1.6 %
West North Central635 1.2 %609 1.2 %616 1.2 %649 1.3 %649 1.3 %
Multi-Region and Other4,954 9.6 %4,575 8.7 %4,711 9.0 %4,533 8.8 %4,907 9.6 %
Total$51,448 100.0 %$52,434 100.0 %$52,300 100.0 %$51,602 100.0 %$51,336 100.0 %
Office$23,657 46.0 %$23,928 45.6 %$23,443 44.8 %$22,883 44.3 %$22,573 44.0 %
Apartment8,651 16.8 %8,764 16.7 %8,748 16.7 %8,699 16.9 %8,910 17.4 %
Retail8,903 17.3 %8,911 17.0 %9,028 17.3 %8,960 17.4 %8,684 16.9 %
Industrial4,770 9.3 %5,365 10.2 %5,625 10.7 %5,437 10.5 %5,562 10.8 %
Hotel3,361 6.5 %3,377 6.5 %3,281 6.3 %3,187 6.2 %3,175 6.2 %
Other2,106 4.1 %2,089 4.0 %2,175 4.2 %2,436 4.7 %2,432 4.7 %
Total$51,448 100.0 %$52,434 100.0 %$52,300 100.0 %$51,602 100.0 %$51,336 100.0 %

31
INVESTMENTS
FOOTNOTES
(1)We calculate yields using adjusted net investment income as a percent of average quarterly asset carrying values. Adjusted net investment income excludes recognized gains and losses, includes the impact of changes in foreign currency exchange rates and reflects the adjustments described on Page A-6 and presented on Page A-1. Asset carrying values exclude unrealized gains (losses), collateral received in connection with our securities lending program, annuities funding structured settlement claims, freestanding derivative assets, collateral received from derivative counterparties, the effects of consolidating under GAAP certain VIEs that are treated as CSEs and contractholder-directed equity securities. In addition, average quarterly asset carrying values include invested assets reclassified to held-for-sale, while ending carrying values exclude invested assets reclassified to held-for-sale. A yield is not presented for other invested assets, as it is not considered a meaningful measure of performance for this asset class.
(2)Fixed maturity securities includes investment income related to fair value option securities of $36 million, $68 million, $36 million, $50 million and $6 million for the three months ended September 30, 2020, December 31, 2020, March 31, 2021, June 30, 2021 and September 30, 2021, respectively, and $72 million and $92 million for the year-to-date period ended September 30, 2020 and September 30, 2021, respectively.
(3)Investment income from fixed maturity securities and mortgage loans includes prepayment fees.
(4)The following table presents the components of total fixed maturity securities and a reconciliation to ending carrying value presented for fixed maturity securities.
September 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021
Fixed maturity securities available-for-sale$353,809 $354,809 $332,941 $340,695 $341,038 
Contractholder-directed equity securities and fair value option securities12,276 13,319 12,975 12,177 12,055 
Total fixed maturity securities366,085 368,128 345,916 352,872 353,093 
Less: Contractholder-directed equity securities10,865 11,708 11,322 10,528 10,502 
Less: Effects of consolidating under GAAP certain VIEs that are treated as CSEs— — — — — 
Fixed maturity securities$355,220 $356,420 $334,594 $342,344 $342,591 
(5)Other limited partnership interests includes investment income related to private equity investments of $504 million, $705 million, $1,278 million, $1,045 million and $1,516 million for the three months ended September 30, 2020, December 31, 2020, March 31, 2021, June 30, 2021 and September 30, 2021, respectively, and $208 million and $3,839 million for the year-to-date period ended September 30, 2020 and September 30, 2021, respectively. The annualized yields for these periods were 26.57%, 33.61%, 53.35%, 38.60%, 50.19%, 3.71% and 47.26%, respectively.
(6)Other limited partnership interests includes ending carrying value related to private equity investments of $7,942 million, $8,827 million, $10,321 million, $11,337 million and $12,811 million at September 30, 2020, December 31, 2020, March 31, 2021, June 30, 2021 and September 30, 2021, respectively.
(7)Ending carrying value excludes the effects of consolidating under GAAP certain VIEs that are treated as CSEs of $3 million at September 30, 2020 and December 31, 2020, and less than $1 million at March 31, 2021, June 30, 2021 and September 30, 2021.
(8)Adjusted net investment income reflects the adjustments as presented on Page 5.
(9)Investment portfolio gains (losses) and Derivative gains (losses) reflect the non-GAAP adjustments as presented below:
For the Three Months EndedFor the Year-to-Date Period Ended
September 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021September 30, 2020September 30, 2021
Net investment gains (losses) $(20)$(33)$134 $1,605 $(84)$(77)$1,655 
Less: Operating joint venture adjustments— (1)— — 1 — 1 
Less: Change in estimated fair value of other limited partnership interests and real estate joint ventures3 5 9 5 9 (9)23 
Less: Non-investment portfolio gains (losses)(165)(104)(10)1,160 (314)(139)836 
Less: Divested businesses18 — 28 — — 18 28 
Investment portfolio gains (losses) $124 $67 $107 $440 $220 $53 $767 
For the Three Months EndedFor the Year-to-Date Period Ended
September 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021September 30, 2020September 30, 2021
Net derivative gains (losses) $(581)$(1,561)$(2,235)$421 $(218)$2,910 $(2,032)
Less: Investment hedge adjustments229 260 220 212 228 555 660 
Less: Settlement of foreign currency earnings hedges— — — — — — — 
Less: PAB hedge adjustments(1)(1)— (1)(1)(8)(2)
Less: Divested businesses$— $— $(1)$— $— $— $(1)
Derivative gains (losses) $(809)$(1,820)$(2,454)$210 $(445)$2,363 $(2,689)
(10)Amounts presented are based on ratings of NRSRO and the applicable NAIC designation from the NAIC published comparison of NRSRO ratings to NAIC designations, except for certain mortgage-backed securities (non-agency residential mortgage-backed securities and commercial mortgage-backed securities). NRSRO ratings are based on availability of applicable ratings. If no NRSRO rating is available, then an internally developed rating is used. Over time, credit ratings can migrate, up or down, through the NRSRO continuous monitoring process. Amounts presented for certain mortgage-backed securities held by MetLife, Inc.'s insurance subsidiaries that maintain the NAIC statutory basis of accounting reflect designations based on revised NAIC methodologies. The NAIC's present methodology is to evaluate certain mortgage-backed securities held by insurers using revised NAIC methodologies on an annual basis. An internally developed designation is used until a final designation becomes available from the NAIC annual review. These revised NAIC designations may not correspond to NRSRO ratings.
32
image0a45a.jpg
Appendix





APPENDIX
METLIFE
RECONCILIATION DETAIL
For the Three Months EndedFor the Year-to-Date Period Ended
Unaudited (In millions)September 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021September 30, 2020September 30, 2021
Reconciliation to Adjusted Earnings Available to Common Shareholders
Net income (loss) available to MetLife, Inc.'s common shareholders$633 $124 $290 $3,366 $1,521 $5,067 $5,177 
Add: Preferred stock dividends59 34 68 35 63 168 166 
Add: Preferred stock redemption premium14 — — 6 — 14 6 
Add: Net Income (loss) attributable to noncontrolling interests3 — 5 5 5 11 15 
Net income (loss) 709 158 363 3,412 1,589 $5,260 $5,364 
Less: adjustments from net income (loss) to adjusted earnings:
Net investment gains (losses)(20)(33)134 1,605 (84)(77)1,655 
Net derivative gains (losses)(581)(1,561)(2,235)421 (218)2,910 (2,032)
Premiums - Divested businesses
— — 865 — 57 52 922 
Universal life and investment-type product policy fees
Unearned revenue adjustments2 8 — 12 46 25 58 
GMIB fees26 25 25 24 25 77 74 
Divested businesses— — — — 13 3 13 
Net investment income
Investment hedge adjustments(229)(260)(220)(212)(228)(555)(660)
Operating joint venture adjustments— 1 — — (1)— (1)
Unit-linked contract income262 628 207 378 114 (60)699 
Securitization entities income— — — — — — — 
Certain partnership distributions— (6)(3)(3)(1)(5)(7)
Divested businesses8 2 36 — 16 44 52 
Other revenues
Settlement of foreign currency earnings hedges— — — — — — — 
TSA fees39 39 35 60 73 120 168 
Divested businesses— — 11 — 6 — 17 
Policyholder benefits and claims and policyholder dividends
PBC hedge adjustments(9)(10)(9)(8)(8)(27)(25)
PDO adjustments— — — — — — — 
Inflation and pass-through adjustments37 (53)78 18 — (117)96 
GMIB costs(231)(180)(128)(70)(116)(180)(314)
Market value adjustments(21)(17)(23)(16)(21)(53)(60)
Divested businesses(13)— (582)— (36)(55)(618)
Interest credited to policyholder account balances
PAB hedge adjustments1 1 — 1 1 8 2 
Unit-linked contract costs(266)(612)(210)(366)(116)76 (692)
Divested businesses(2)— — — (5)(14)(5)
Capitalization of DAC - Divested businesses
— — 89 — 15 5 104 
Amortization of DAC and VOBA
Related to NIGL and NDGL(64)(65)3 (9)(31)(88)(37)
Related to GMIB fees and GMIB costs(7)11 13 12 (13)(15)12 
Related to market value adjustments— — — — — — — 
Divested businesses— — (98)— (14)(9)(112)
Amortization of negative VOBA
Related to market value adjustments— — — — — — — 
Divested businesses— — — — — — — 
Interest expense on debt
Securitization entities debt expense— — — — — — — 
Divested businesses— — (1)— — — (1)
Other expenses
Noncontrolling interests4 2 6 6 7 14 19 
Regulatory implementation costs(6)(12)3 (6)— (8)(3)
Acquisition, integration and other costs(7)(29)(4)(4)(2)(13)(10)
TSA fees(39)(39)(35)(60)(73)(120)(168)
Divested businesses(7)(9)(232)(4)(41)(49)(277)
Goodwill impairment— — — — — — — 
Provision for income tax (expense) benefit195 455 605 (491)99 (582)213 
Adjusted earnings1,637 1,872 2,033 2,124 2,125 3,953 6,282 
Less: Preferred stock dividends59 34 68 35 63 168 166 
Adjusted earnings available to common shareholders$1,578 $1,838 $1,965 $2,089 $2,062 $3,785 $6,116 
A-1
APPENDIX
METLIFE
NOTABLE ITEMS (1)
METLIFE TOTAL
For the Three Months EndedFor the Year-to-Date Period Ended
Unaudited (In millions)September 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021September 30, 2020September 30, 2021
Actuarial assumption review and other insurance adjustments$(203)$— $— $— $(140)$(203)$(140)
Litigation reserves and settlement costs— — — 66 — — 66 
Total notable items$(203)$— $— $66 $(140)$(203)$(74)
ASIA
  For the Three Months EndedFor the Year-to-Date Period Ended
Unaudited (In millions)September 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021September 30, 2020September 30, 2021
Actuarial assumption review and other insurance adjustments
$(28)$— $— $— $(79)$(28)$(79)
Total notable items
$(28)$— $— $— $(79)$(28)$(79)
LATIN AMERICA
  
For the Three Months EndedFor the Year-to-Date Period Ended
Unaudited (In millions)
September 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021September 30, 2020September 30, 2021
Actuarial assumption review and other insurance adjustments
$(9)$— $— $— $(2)$(9)$(2)
Total notable items
$(9)$— $— $— $(2)$(9)$(2)
EMEA
  
For the Three Months EndedFor the Year-to-Date Period Ended
Unaudited (In millions)
September 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021September 30, 2020September 30, 2021
Actuarial assumption review and other insurance adjustments
$(31)$— $— $— $(6)$(31)$(6)
Total notable items
$(31)$— $— $— $(6)$(31)$(6)
METLIFE HOLDINGS
  
For the Three Months EndedFor the Year-to-Date Period Ended
Unaudited (In millions)
September 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021September 30, 2020September 30, 2021
Actuarial assumption review and other insurance adjustments
$(135)$— $— $— $(53)$(135)$(53)
Total notable items
$(135)$— $— $— $(53)$(135)$(53)
CORPORATE & OTHER
  
For the Three Months EndedFor the Year-to-Date Period Ended
Unaudited (In millions)
September 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021September 30, 2020September 30, 2021
Litigation reserves and settlement costs
$— $— $— $66 $— $— $66 
Total notable items
$— $— $— $66 $— $— $66 
(1)These notable items represent a positive (negative) impact to adjusted earnings available to common shareholders. 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.
A-2
APPENDIX
METLIFE
EQUITY DETAILS, BOOK VALUE DETAILS AND RETURN ON EQUITY
Unaudited (In millions)September 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021
Total MetLife, Inc.'s stockholders' equity$73,316 $74,558 $65,864 $69,138 $69,050 
Less: Preferred stock
4,312 4,312 4,312 3,818 3,818 
MetLife, Inc.'s common stockholders' equity 69,004 70,246 61,552 65,320 65,232 
Less: Net unrealized investment gains (losses), net of income tax
22,869 23,730 16,712 18,608 18,658 
  Defined benefit plans adjustment, net of income tax(1,954)(1,863)(1,848)(1,836)(1,805)
Total MetLife, Inc.'s common stockholders' equity, excluding AOCI other than FCTA$48,089 $48,379 $46,688 $48,548 $48,379 
Less: Goodwill, net of income tax
9,021 10,090 9,571 9,398 9,317 
  VODA and VOCRA, net of income tax
253 844 807 779 763 
Total MetLife, Inc.'s tangible common stockholders' equity$38,815 $37,445 $36,310 $38,371 $38,299 
Unaudited (In millions)September 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021
Total MetLife, Inc.'s common stockholders' equity, excluding AOCI other than FCTA$48,089 $48,379 $46,688 $48,548 $48,379 
Less: Accumulated year-to-date total notable items (2)
(203)(203)— 66 (74)
Total MetLife, Inc.'s common stockholders' equity, excluding total notable items (excludes AOCI other than FCTA) (2)$48,292 $48,582 $46,688 $48,482 $48,453 
Unaudited (In millions, except per share data)September 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021
Book value per common share $76.20 $78.67 $70.08 $75.86 $77.24 
Less: Net unrealized investment gains (losses), net of income tax
25.26 26.58 19.02 21.61 22.09 
  Defined benefit plans adjustment, net of income tax
(2.16)(2.09)(2.10)(2.13)(2.14)
Book value per common share, excluding AOCI other than FCTA$53.10 $54.18 $53.16 $56.38 $57.29 
Less: Goodwill, net of income tax
9.96 11.29 10.90 10.92 11.04 
  VODA and VOCRA, net of income tax
0.28 0.95 0.92 0.90 0.90 
Book value per common share - tangible common stockholders' equity$42.86 $41.94 $41.34 $44.56 $45.35 
Common shares outstanding, end of period 905.6 892.9 878.3 861.1 844.5 
For the Three Months Ended (1)
Unaudited (In millions, except ratios)September 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021
Return on MetLife, Inc.'s:
Common stockholders' equity 3.6 %0.7 %1.8 %21.2 %9.3 %
Adjusted return on MetLife, Inc.'s:
Common stockholders' equity 9.0 %10.6 %11.9 %13.2 %12.6 %
Common stockholders' equity, excluding AOCI other than FCTA 13.2 %15.2 %16.5 %17.5 %17.0 %
Common stockholders' equity, excluding total notable items (excludes AOCI other than FCTA) (2)14.9 %15.2 %16.5 %17.0 %18.2 %
Tangible common stockholders' equity (3) 16.5 %19.4 %21.5 %22.6 %21.7 %
Average common stockholders' equity $70,193 $69,625 $65,899 $63,436 $65,276 
Average common stockholders' equity, excluding AOCI other than FCTA $47,763 $48,234 $47,534 $47,618 $48,464 
Average common stockholders' equity, excluding total notable items (excludes AOCI other than FCTA) (2)$47,864 $48,437 $47,534 $47,585 $48,468 
Average tangible common stockholders' equity
$38,539 $38,130 $36,878 $37,341 $38,335 
(1) Annualized using quarter-to-date results.
(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. See Page A-2 for further detail.
(3)Adjusted earnings available to common shareholders used to calculate the adjusted return on tangible common stockholders' equity excludes the impact of amortization of VODA and VOCRA, net of income tax, for the three months ended September 30, 2020, December 31, 2020, March 31, 2021, June 30, 2021 and September 30, 2021 of $7 million, $8 million, $20 million, $20 million and $20 million, respectively.
A-3
APPENDIX
METLIFE
ADJUSTED PREMIUMS, FEES AND OTHER REVENUES, OTHER EXPENSES AND ADJUSTED EARNINGS AVAILABLE TO COMMON SHAREHOLDERS - CONSTANT CURRENCY BASIS
 ADJUSTED PREMIUMS, FEES AND OTHER REVENUES, ON A CONSTANT CURRENCY BASIS
For the Three Months Ended
Unaudited (In millions)September 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021
U.S. (1)$6,833 $10,578 $6,392 $6,136 $6,408 
ASIA 2,225 2,076 2,089 2,011 2,088 
LATIN AMERICA807 887 869 915 988 
EMEA 682 706 664 734 670 
METLIFE HOLDINGS (1)1,206 1,264 1,163 1,181 1,141 
CORPORATE & OTHER (1)75 112 144 90 124 
Adjusted premiums, fees and other revenues, on a constant currency basis$11,828 $15,623 $11,321 $11,067 $11,419 
Adjusted premiums, fees and other revenues$11,820 $15,700 $11,413 $11,122 $11,419 
ASIA (including operating joint ventures) (2), (3)$2,525 $2,369 $2,432 $2,289 $2,409 
 OTHER EXPENSES ON A CONSTANT CURRENCY BASIS
For the Three Months Ended
Unaudited (In millions)September 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021
U.S. (1)$1,026 $1,058 $911 $898 $886 
ASIA 850 900 870 824 811 
LATIN AMERICA328 355 332 336 363 
EMEA340 344 342 344 308 
METLIFE HOLDINGS (1)231 244 253 244 255 
CORPORATE & OTHER (1)120 235 107 34 137 
Adjusted other expenses on a constant currency basis$2,895 $3,136 $2,815 $2,680 $2,760 
Adjusted other expenses$2,899 $3,175 $2,854 $2,700 $2,760 
ASIA (including operating joint ventures) (2), (3)$955 $1,009 $985 $916 $911 
 ADJUSTED EARNINGS AVAILABLE TO COMMON SHAREHOLDERS ON A CONSTANT CURRENCY BASIS
For the Three Months Ended
Unaudited (In millions)September 30, 2020December 31, 2020March 31, 2021June 30, 2021September 30, 2021
U.S. (1)$900 $1,021 $784 $902 $895 
ASIA 466 490 613 515 569 
LATIN AMERICA41 15 35 91 29 
EMEA 52 80 68 92 94 
METLIFE HOLDINGS (1)253 426 618 536 606 
CORPORATE & OTHER (1)(131)(198)(171)(60)(131)
Adjusted earnings available to common shareholders on a constant currency basis$1,581 $1,834 $1,947 $2,076 $2,062 
Adjusted earnings available to common shareholders$1,578 $1,838 $1,965 $2,089 $2,062 
 (1) Amounts on a reported basis, as constant currency impact is not significant.
 (2) Adjusted premiums, fees and other revenues as well as other expenses are reported as part of net investment income on the statements of adjusted earnings available to common shareholders on Page 18 for operating joint ventures.
 (3) Includes MetLife, Inc.'s percentage interest in operating joint ventures of: (i) China, (ii) India, (iii) Malaysia and (iv) Vietnam, which are consolidated using the equity method of accounting.
A-4
METLIFE
NON-GAAP AND OTHER FINANCIAL DISCLOSURES

In this QFS, MetLife presents certain measures of its performance on a consolidated and segment basis that are not calculated in accordance with GAAP. We believe 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 our 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 & other revenues, excluding PRT (iv)premiums, fees and other revenues
(v)adjusted net investment income(v)net investment income
(vi)adjusted earnings(vi)net income (loss)
(vii)adjusted earnings available to common shareholders(vii)net income (loss) available to MetLife, Inc.’s common shareholders
(viii)adjusted earnings available to common shareholders, excluding total notable items(viii)net income (loss) available to MetLife, Inc.’s common shareholders
(ix)adjusted earnings available to common shareholders per diluted common share(ix)net income (loss) available to MetLife, Inc.’s common shareholders per diluted common share
(x)adjusted earnings available to common shareholders, excluding total notable items, per diluted common share(x)net income (loss) available to MetLife, Inc.’s common shareholders per diluted common share
(xi)adjusted return on equity(xi)return on equity
(xii)adjusted return on equity, excluding AOCI other than FCTA(xii)return on equity
(xiii)adjusted return on equity, excluding total notable items (excludes AOCI other than FCTA)(xiii)return on equity
(xiv)adjusted tangible return on equity(xiv)return on equity
(xv)investment portfolio gains (losses)(xv)net investment gains (losses)
(xvi)derivative gains (losses)(xvi)net derivative gains (losses)
(xvii)adjusted capitalization of DAC(xvii)capitalization of DAC
(xviii)total MetLife, Inc.’s tangible common stockholders’ equity(xviii)total MetLife, Inc.’s stockholders’ equity
(xix)total MetLife, Inc.’s common stockholders’ equity, excluding AOCI other than FCTA(xix)total MetLife, Inc.’s stockholders’ equity
(xx)total MetLife, Inc.’s common stockholders’ equity, excluding total notable items (excludes AOCI other than FCTA)(xx)total MetLife, Inc.’s stockholders’ equity
(xxi)book value per common share, excluding AOCI other than FCTA(xxi)book value per common share
(xxii)book value per common share - tangible common stockholders' equity(xxii)book value per common share
(xxiii)adjusted other expenses(xxiii)other expenses
(xxiv)adjusted other expenses, net of adjusted capitalization of DAC(xxiv)other expenses, net of capitalization of DAC
(xxv)adjusted other expenses, net of adjusted capitalization of DAC, excluding total notable items related to adjusted other expenses(xxv)other expenses, net of capitalization of DAC
(xxvi)adjusted expense ratio(xxvi)expense ratio
(xxvii)adjusted expense ratio, excluding total notable items related to adjusted other expenses and PRT(xxvii)expense ratio
(xxviii)direct expenses(xxviii)other expenses
(xxix)direct expenses, excluding total notable items related to direct expenses(xxix)other expenses
(xxx)direct expense ratio(xxx)expense ratio
(xxxi)direct expense ratio, excluding total notable items related to direct expenses and PRT(xxxi)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. As a result, comparable prior period amounts are updated each period to reflect the most recent period average foreign currency exchange rates.
Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in this QFS and in this period’s earnings news release, which is available at www.metlife.com.

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METLIFE
NON-GAAP AND OTHER FINANCIAL DISCLOSURES (CONTINUED)
Our definitions of non-GAAP and other financial measures discussed in this QFS may differ from those used by other companies:

Adjusted earnings and related measures
•adjusted earnings;
•adjusted earnings available to common shareholders;
•adjusted earnings available to common shareholders, excluding total notable items;
•adjusted earnings available to common shareholders per diluted common share;
•adjusted earnings available to common shareholders, excluding total notable items per diluted common share; and
•adjusted earnings available to common shareholders on a constant currency basis.
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 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 (“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 NIGL and NDGL. Adjusted expenses also excludes goodwill impairments.
The following additional adjustments are made to revenues, in the line items indicated, in calculating adjusted revenues:
•Universal life and investment-type product policy fees excludes the amortization of unearned revenue related to NIGL and NDGL (“Unearned revenue adjustments”) and certain variable annuity GMIB fees (“GMIB fees”);
•Net investment income: (i) includes adjustments for earned income on derivatives and amortization of premium on derivatives that are hedges of investments or that are used to replicate certain investments, but do not qualify for hedge accounting treatment (“Investment hedge adjustments”), (ii) excludes post-tax adjusted earnings adjustments relating to insurance joint ventures accounted for under the equity method (“Operating joint venture adjustments”), (iii) excludes certain amounts related to contractholder-directed equity securities (“Unit-linked contract income”), (iv) excludes certain amounts related to securitization entities that are VIEs consolidated under GAAP (“Securitization entities income”), and (v) includes distributions of profits from certain other limited partnership interests that were previously accounted for under the cost method, but are now accounted for at estimated fair value, where the change in estimated fair value is recognized in NIGL under GAAP ("Certain partnership distributions"); and
•Other revenues is adjusted for settlements of foreign currency earnings hedges and excludes fees received in association with services provided under transition service agreements ("TSA fees").
The following additional adjustments are made to expenses, in the line items indicated, in calculating adjusted expenses:
•Policyholder benefits and claims and policyholder dividends excludes: (i) amortization of basis adjustments associated with de-designated fair value hedges of future policy benefits ("PBC hedge adjustments"), (ii) changes in the policyholder dividend obligation related to NIGL and NDGL (“PDO adjustments”), (iii) inflation-indexed benefit adjustments associated with contracts backed by inflation-indexed investments and amounts associated with periodic crediting rate adjustments based on the total return of a contractually referenced pool of assets and other pass-through adjustments (“Inflation and pass-through adjustments”), (iv) benefits and hedging costs related to GMIBs (“GMIB costs”), and (v) market value adjustments associated with surrenders or terminations of contracts (“Market value adjustments”);
•Interest credited to policyholder account balances includes adjustments for earned income on derivatives and amortization of premium on derivatives that are hedges of policyholder account balances but do not qualify for hedge accounting treatment (“PAB hedge adjustments”) and excludes certain amounts related to net investment income earned on contractholder-directed equity securities (“Unit-linked contract costs”);
•Amortization of DAC and VOBA excludes amounts related to: (i) NIGL and NDGL, (ii) GMIB fees and GMIB costs, and (iii) Market value adjustments;
•Amortization of negative VOBA excludes amounts related to Market value adjustments;
•Interest expense on debt excludes certain amounts related to securitization entities that are VIEs consolidated under GAAP (“Securitization entities debt expense”); and
•Other expenses excludes: (i) noncontrolling interests, (ii) implementation of new insurance regulatory requirements costs (“Regulatory implementation costs”) and (iii) acquisition, integration and other costs. Other expenses includes TSA fees.
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).
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METLIFE
NON-GAAP AND OTHER FINANCIAL DISCLOSURES (CONTINUED)
Return on equity, allocated equity, tangible equity and related measures
•Total MetLife, Inc.’s common stockholders’ equity, excluding AOCI other than FCTA: Total MetLife, Inc.’s common stockholders’ equity, excluding the net unrealized investment gains (losses) and defined benefit plans adjustment components of AOCI, net of income tax.
•Total MetLife, Inc.’s common stockholders’ equity, excluding total notable items (excludes AOCI other than FCTA): Total MetLife, Inc.’s common stockholders’ equity, excluding the net unrealized investment gains (losses), defined benefit plans adjustment components of AOCI and total notable items, net of income tax.
•Return on MetLife, Inc.’s common stockholders’ equity: net income (loss) available to MetLife, Inc.’s common shareholders divided by MetLife, Inc.'s average common stockholders’ equity.
•Adjusted return on MetLife, Inc.’s common stockholders’ equity: adjusted earnings available to common shareholders divided by MetLife, Inc.'s average common stockholders’ equity.
•Adjusted return on MetLife, Inc.’s common stockholders’ equity, excluding AOCI other than FCTA: adjusted earnings available to common shareholders divided by MetLife, Inc.'s average common stockholders’ equity, excluding AOCI other than FCTA.
•Adjusted return on MetLife, Inc.’s common stockholders’ equity, excluding total notable items (excludes AOCI other than FCTA): adjusted earnings available to common shareholders, excluding total notable items, divided by MetLife, Inc.'s average common stockholders’ equity, excluding total notable items (excludes AOCI other than FCTA).
•Allocated equity: portion of MetLife, Inc.’s common stockholders’ equity that management allocates to each of its segments and sub-segments based on local capital requirements and economic capital. Economic capital is an internally developed risk capital model, the purpose of which is to measure the risk in the business and to provide a basis upon which capital is deployed. MetLife management periodically reviews this model to ensure that it remains consistent with emerging industry practice standards and the local capital requirements; allocated equity may be adjusted if warranted by such review. Allocated equity excludes the impact of AOCI other than FCTA.
•Adjusted return on allocated equity: adjusted earnings available to common shareholders divided by allocated equity.
The above measures represent a level of equity consistent with the view that, in the ordinary course of business, we do not plan to sell most investments for the sole purpose of realizing gains or losses.
•Total MetLife, Inc.’s tangible common stockholders’ equity or tangible equity: Total MetLife, Inc.’s common stockholders’ equity, excluding AOCI other than FCTA, reduced by the impact of goodwill, VODA and VOCRA, all net of income tax.
•Adjusted return on MetLife, Inc.’s tangible common stockholders’ equity: adjusted earnings available to common shareholders, excluding amortization of VODA and VOCRA, net of income tax, divided by MetLife, Inc.’s average tangible common stockholders’ equity.
•Allocated tangible equity: Allocated equity reduced by the impact of goodwill, VODA and VOCRA, all net of income tax.
•Adjusted return on allocated tangible equity: adjusted earnings available to common shareholders, excluding amortization of VODA and VOCRA, net of income tax, divided by allocated tangible equity.
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
•Expense ratio: other expenses, net of capitalization of DAC, divided by premiums, fees and other revenues.
•Direct expense ratio: adjusted direct expenses divided by adjusted premiums, fees and other revenues.
•Direct expense ratio, excluding total notable items related to direct expenses and PRT: adjusted direct expenses, excluding total notable items related to direct expenses, divided by adjusted premiums, fees and other revenues, excluding PRT.
•Adjusted expense ratio: adjusted other expenses, net of adjusted capitalization of DAC, divided by adjusted premiums, fees and other revenues.
•Adjusted expense ratio, excluding total notable items related to adjusted other expenses and PRT: adjusted other expenses, net of adjusted capitalization of DAC, excluding total notable items related to adjusted other expenses, divided by adjusted premiums, fees and other revenues, excluding PRT.
Asia general account assets under management and related measures
Asia GA AUM is used by MetLife to describe assets in its Asia GA investment portfolio which are actively managed and stated at estimated fair value. Asia GA AUM is comprised of Asia 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 Asia GA investment portfolio. Mortgage loans (including commercial, agricultural and residential) and real estate equity (including real estate and real estate joint ventures) included in Asia 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 Asia GA AUM.

Asia 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. Asia GA AUM (at amortized cost) is presented net of related allowance for credit loss.
Other items
The following additional information is relevant to an understanding of our performance results:
•Statistical sales information for Latin America, Asia and EMEA: calculated using 10% of single-premium deposits (mainly from retirement products such as variable annuity, fixed annuity and pensions), 20% of single-premium deposits from credit insurance and 100% of annualized full-year premiums and fees from recurring-premium policy sales of all products (mainly from risk and protection products such as individual life, accident & health and group). Sales statistics do not correspond to revenues under GAAP, but are used as relevant measures of business activity.
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METLIFE
ACRONYMS
 
AOCIAccumulated other comprehensive income (loss)
CSEConsolidated securitization entity
DACDeferred policy acquisition costs
EMEAEurope, the Middle East and Africa
FCTAForeign currency translation adjustments
GAGeneral account
GA AUMGeneral account assets under management
GAAPAccounting principles generally accepted in the United States of America
GICsGuaranteed interest contracts
GMIBGuaranteed minimum income benefits
NAICNational Association of Insurance Commissioners
NDGLNet derivative gains (losses)
NIGLNet investment gains (losses)
NRSRONationally Recognized Statistical Rating Organizations
PABPolicyholder account balances
PBCPolicyholder benefits and claims
PDOPolicyholder dividend obligation
PRTPension risk transfers
QFSQuarterly financial supplement
TSATransition service agreement
VIEVariable interest entity
VOBAValue of business acquired
VOCRAValue of customer relationships acquired
VODAValue of distribution agreements
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