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Published: 2021-02-03 16:35:08 ET
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EX-99.2 3 ex992qfsq420doc.htm EX-99.2 Document
Exhibit 99.2



 imagk061.jpg
Fourth Quarter
Financial Supplement
December 31, 2020
4

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 of our 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 Ended
Unaudited (In millions)December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020December 31, 2019December 31, 2020
Revenues
Premiums$11,920 $9,466 $8,736 $9,935 $13,897 $42,235 $42,034 
Universal life and investment-type product policy fees1,386 1,431 1,299 1,497 1,376 5,603 5,603 
Net investment income4,644 3,061 4,087 4,729 5,240 18,868 17,117 
Other revenues451 439 456 455 499 1,842 1,849 
Net investment gains (losses)207 (288)231 (20)(33)444 (110)
Net derivative gains (losses)(1,465)4,201 (710)(581)(1,561)628 1,349 
Total revenues17,143 18,310 14,099 16,015 19,418 69,620 67,842 
Expenses
Policyholder benefits and claims11,748 9,022 8,667 10,000 13,772 41,461 41,461 
Interest credited to policyholder account balances1,488 80 1,962 1,416 1,756 6,464 5,214 
Policyholder dividends313 292 290 206 302 1,211 1,090 
Capitalization of DAC(827)(774)(671)(764)(804)(3,358)(3,013)
Amortization of DAC and VOBA786 788 560 1,066 746 2,896 3,160 
Amortization of negative VOBA(9)(10)(10)(15)(10)(33)(45)
Interest expense on debt224 222 232 229 230 955 913 
Other expenses3,457 3,047 2,872 2,954 3,262 13,229 12,135 
Total expenses17,180 12,667 13,902 15,092 19,254 62,825 60,915 
Income (loss) before provision for income tax(37)5,643 197 923 164 6,795 6,927 
Provision for income tax expense (benefit)(625)1,242 47 214 6 886 1,509 
Net income (loss) 588 4,401 150 709 158 5,909 5,418 
Less: Net income (loss) attributable to noncontrolling interests(5)3 5 3 — 10 11 
Net income (loss) attributable to MetLife, Inc.593 4,398 145 706 158 5,899 5,407 
Less: Preferred stock dividends57 32 77 59 34 178 202 
 Preferred stock redemption premium — — — 14 — — 14 
Net income (loss) available to MetLife, Inc.'s common shareholders$536 $4,366 $68 $633 $124 $5,721 $5,191 
Premiums, fees and other revenues$13,757 $11,336 $10,491 $11,887 $15,772 $49,680 $49,486 
2
METLIFE
CORPORATE OVERVIEW
For the Three Months Ended
Unaudited (In millions, except per share data)December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020
Net income (loss) available to MetLife, Inc.'s common shareholders$536 $4,366 $68 $633 $124 
Adjustments from net income (loss) available to MetLife, Inc.'s common shareholders to adjusted earnings available to common shareholders:
Less: Net investment gains (losses) 207 (288)231 (20)(33)
Less: Net derivative gains (losses)(1,465)4,201 (710)(581)(1,561)
Less: Goodwill impairment— — — — — 
Less: Other adjustments to net income (loss) (1)(418)(65)(357)(522)(575)
Less: Provision for income tax (expense) benefit 373 (928)151 195 455 
Add: Net income (loss) attributable to noncontrolling interests(5)3 5 3 — 
Add: Preferred stock redemption premium— — — 14 — 
Adjusted earnings available to common shareholders1,834 1,449 758 1,578 1,838 
Less: Total notable items (2)420 — — (203)— 
Adjusted earnings available to common shareholders, excluding total notable items (2)$1,414 $1,449 $758 $1,781 $1,838 
Net income (loss) available to MetLife, Inc.'s common shareholders per diluted common share$0.58 $4.75 $0.07 $0.69 $0.14 
Less: Net investment gains (losses)0.22 (0.31)0.25 (0.02)(0.04)
Less: Net derivative gains (losses)(1.58)4.57 (0.78)(0.64)(1.72)
Less: Goodwill impairment— — — — — 
Less: Other adjustments to net income (loss)(0.45)(0.08)(0.39)(0.57)(0.63)
Less: Provision for income tax (expense) benefit0.40 (1.01)0.17 0.21 0.50 
Add: Net income (loss) attributable to noncontrolling interests(0.01)— 0.01 — — 
Add: Preferred stock redemption premium— — — 0.02 — 
Adjusted earnings available to common shareholders per diluted common share 1.98 1.58 0.83 1.73 2.03 
Less: Total notable items per diluted common share (2)0.45 — — (0.22)— 
Adjusted earnings available to common shareholders, excluding total notable items, per diluted common share (2), (3)$1.53 $1.58 $0.83 $1.95 $2.03 
For the Three Months Ended
Unaudited (In millions, except per share data)December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020
Notable items impacting adjusted earnings available to common shareholders (2):
Actuarial assumption review and other insurance adjustments$— $— $— $(203)$— 
Expense initiative costs(119)— — — — 
Interest on tax adjustments64 — — — — 
Tax adjustments 475 — — — — 
Total notable items $420 $— $— $(203)$— 
Notable items impacting adjusted earnings available to common shareholders per diluted common share (2):
Actuarial assumption review and other insurance adjustments$— $— $— $(0.22)$— 
Expense initiative costs$(0.13)$— $— $— $— 
Interest on tax adjustments$0.07 $— $— $— $— 
Tax adjustments$0.51 $— $— $— $— 
Total notable items $0.45 $— $— $(0.22)$— 
For the Three Months Ended
Unaudited (In millions)December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020
Weighted average common shares outstanding - diluted925.7 920.0 913.1 913.7 906.0 
(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)
UnauditedDecember 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020
Book value per common share (1) $68.62 $72.62 $78.65 $76.20 $78.67 
Book value per common share, excluding AOCI other than FCTA (1) $48.97 $52.36 $52.27 $53.10 $54.18 
Book value per common share - tangible common stockholders' equity (1) $38.86 $42.33 $42.16 $42.86 $41.94 
For the Three Months Ended
UnauditedDecember 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020
Return on MetLife, Inc.'s (2):
Common stockholders' equity 3.4 %27.1 %0.4 %3.6 %0.7 %
Adjusted return on MetLife, Inc.'s (2):
Common stockholders' equity 11.5 %9.0 %4.4 %9.0 %10.6 %
Common stockholders' equity, excluding AOCI other than FCTA 16.4 %12.6 %6.4 %13.2 %15.2 %
Common stockholders' equity, excluding total notable items (excludes AOCI other than FCTA) (3)12.6 %12.6 %6.4 %14.9 %15.2 %
Tangible common stockholders' equity20.7 %15.8 %8.0 %16.5 %19.4 %
For the Three Months Ended
Unaudited (In millions)December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020
Common shares outstanding, beginning of period919.6 915.3 907.6 907.6 905.6 
Share repurchases (5.1)(10.6)— (2.1)(13.6)
Newly issued shares0.8 2.9 — 0.1 0.9 
Common shares outstanding, end of period 915.3 907.6 907.6 905.6 892.9 
Weighted average common shares outstanding - basic918.7 914.1 908.8 908.7 899.9 
Dilutive effect of the exercise or issuance of stock-based awards 7.0 5.9 4.3 5.0 6.1 
Weighted average common shares outstanding - diluted925.7 920.0 913.1 913.7 906.0 
MetLife Policyholder Trust Shares140.7 139.2 138.4 137.3 136.0 
(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 Ended
Unaudited (In millions)December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020December 31, 2019December 31, 2020
Total revenues$17,143 $18,310 $14,099 $16,015 $19,418 $69,620 $67,842 
Less: Net investment gains (losses)207 (288)231 (20)(33)444 (110)
Less: Net derivative gains (losses)(1,465)4,201 (710)(581)(1,561)628 1,349 
Less: Adjustments related to net investment gains (losses) and net derivative gains (losses)18 18 5 2 8 97 33 
Less: Other adjustments to revenues:
GMIB fees
26 26 25 26 25 108 102 
Investment hedge adjustments
(125)(138)(188)(229)(260)(469)(815)
Operating joint venture adjustments
— — — — 1 — 1 
Unit-linked contract income
228 (1,140)818 262 628 1,475 568 
Securitization entities income
— — — — — — — 
Certain partnership distributions
(5)(4)(1)— (6)(15)(11)
Settlement of foreign currency earnings hedges
2 — — — — 9 — 
TSA fees
40 42 39 39 39 246 159 
Divested businesses
63 56 35 8 2 123 101 
Total adjusted revenues$18,154 $15,537 $13,845 $16,508 $20,575 $66,974 $66,465 
For the Three Months EndedFor the Year Ended
Unaudited (In millions)December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020December 31, 2019December 31, 2020
Net investment income$4,644 $3,061 $4,087 $4,729 $5,240 $18,868 $17,117 
Less: Adjustments to net investment income:
Investment hedge adjustments(125)(138)(188)(229)(260)(469)(815)
Operating joint venture adjustments— — — — 1 — 1 
Unit-linked contract income228 (1,140)818 262 628 1,475 568 
Securitization entities income— — — — — — — 
Certain partnership distributions(5)(4)(1)— (6)(15)(11)
Divested businesses 24 22 14 8 2 47 46 
Adjusted net investment income$4,522 $4,321 $3,444 $4,688 $4,875 $17,830 $17,328 
For the Three Months EndedFor the Year Ended
Unaudited (In millions)December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020December 31, 2019December 31, 2020
Variable investment income (Included in net investment income above)$327 $351 $(555)$652 $778 $1,161 $1,226 
For the Three Months EndedFor the Year Ended
Unaudited (In millions)December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020December 31, 2019December 31, 2020
Premiums, fees and other revenues$13,757 $11,336 $10,491 $11,887 $15,772 $49,680 $49,486 
Less: Adjustments to premiums, fees and other revenues:
Unearned revenue adjustments
18 18 5 2 8 97 33 
GMIB fees
26 26 25 26 25 108 102 
Settlement of foreign currency earnings hedges
2 — — — — 9 — 
TSA fees
40 42 39 39 39 246 159 
Divested businesses
39 34 21 — — 76 55 
Adjusted premiums, fees and other revenues$13,632 $11,216 $10,401 $11,820 $15,700 $49,144 $49,137 
Adjusted premiums, fees and other revenues, on a constant currency basis$13,667 $11,307 $10,573 $11,906 $15,700 
5
METLIFE
KEY ADJUSTED EARNINGS STATEMENT LINE ITEMS (CONTINUED)
For the Three Months EndedFor the Year Ended
Unaudited (In millions)December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020December 31, 2019December 31, 2020
Total expenses$17,180 $12,667 $13,902 $15,092 $19,254 $62,825 $60,915 
Less: Adjustments related to net investment gains (losses) and net derivative gains (losses)106 30 (6)64 65 116 153 
Less: Goodwill impairment— — — — — — — 
Less: Other adjustments to expenses:
PBC hedge adjustment
10 9 9 9 10 19 37 
Inflation and pass-through adjustments
(6)48 106 (37)53 244 170 
GMIB costs and amortization of DAC and VOBA related to GMIB fees and GMIB costs
105 (128)85 238 169 143 364 
Market value adjustments and amortization of DAC, VOBA and negative VOBA related to market value adjustments
8 11 21 21 17 (4)70 
PAB hedge adjustments
(5)(5)(2)(1)(1)(19)(9)
Unit-linked contract costs
240 (1,138)796 266 612 1,436 536 
Securitization entities debt expense
— — — — — — — 
Noncontrolling interests5 (3)(7)(4)(2)(15)(16)
Regulatory implementation costs
3 2 — 6 12 18 20 
Acquisition, integration and other costs
7 6 — 7 29 44 42 
TSA fees
40 42 39 39 39 246 159 
Divested businesses
152 51 49 22 9 227 131 
Total adjusted expenses$16,515 $13,742 $12,812 $14,462 $18,242 $60,370 $59,258 
For the Three Months EndedFor the Year Ended
Unaudited (In millions)December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020December 31, 2019December 31, 2020
Capitalization of DAC $(827)$(774)$(671)$(764)$(804)$(3,358)$(3,013)
Less: Divested businesses(9)(3)(2)— — (20)(5)
Adjusted capitalization of DAC$(818)$(771)$(669)$(764)$(804)$(3,338)$(3,008)
For the Three Months EndedFor the Year Ended
Unaudited (In millions)December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020December 31, 2019December 31, 2020
Other expenses $3,457 $3,047 $2,872 $2,954 $3,262 $13,229 $12,135 
Less: Noncontrolling interests
5 (3)(7)(4)(2)(15)(16)
Less: Regulatory implementation costs
3 2 — 6 12 18 20 
Less: Acquisition, integration and other costs
7 6 — 7 29 44 42 
Less: TSA fees
40 42 39 39 39 246 159 
Less: Divested businesses
116 19 23 7 9 158 58 
Adjusted other expenses$3,286 $2,981 $2,817 $2,899 $3,175 $12,778 $11,872 
Adjusted other expenses on a constant currency basis$3,304 $3,016 $2,882 $2,930 $3,175 

6
METLIFE
EXPENSE DETAIL AND RATIOS
For the Three Months EndedFor the Year Ended
Unaudited (In millions, except ratio data)December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020December 31, 2019December 31, 2020
Other expenses$3,457 $3,047 $2,872 $2,954 $3,262 $13,229 $12,135 
Capitalization of DAC(827)(774)(671)(764)(804)(3,358)(3,013)
Other expenses, net of capitalization of DAC$2,630 $2,273 $2,201 $2,190 $2,458 $9,871 $9,122 
Premiums, fees and other revenues$13,757 $11,336 $10,491 $11,887 $15,772 $49,680 $49,486 
Expense ratio19.1 %20.1 %21.0 %18.4 %15.6 %19.9 %18.4 %
For the Three Months EndedFor the Year Ended
Unaudited (In millions)December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020December 31, 2019December 31, 2020
Adjusted other expenses by major category
Direct expenses$1,597 $1,344 $1,287 $1,288 $1,423 $5,977 $5,342 
Pension, postretirement and postemployment benefit costs63 39 37 37 52 233 165 
Premium taxes, other taxes, and licenses & fees165 193 176 194 201 673 764 
Commissions and other variable expenses1,461 1,405 1,317 1,380 1,499 5,895 5,601 
Adjusted other expenses
3,286 2,981 2,817 2,899 3,175 12,778 11,872 
Adjusted capitalization of DAC(818)(771)(669)(764)(804)(3,338)(3,008)
Adjusted other expenses, net of adjusted capitalization of DAC
2,468 2,210 2,148 2,135 2,371 9,440 8,864 
Less: Total notable items related to adjusted other expenses (1)69 — — — — 338 — 
Adjusted other expenses, net of adjusted capitalization of DAC, excluding total notable items related to adjusted other expenses (1)
$2,399 $2,210 $2,148 $2,135 $2,371 $9,102 $8,864 
For the Three Months EndedFor the Year Ended
Unaudited (In millions, except ratio data)December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020December 31, 2019December 31, 2020
Employee related costs$948 $866 $840 $865 $937 $3,657 $3,508 
Third party staffing costs536 343 300 306 357 1,752 1,306 
General and administrative expenses113 135 147 117 129 568 528 
Direct expenses1,597 1,344 1,287 1,288 1,423 5,977 5,342 
Less: Total notable items related to direct expenses (1)69 — — — — 338 — 
Direct expenses, excluding total notable items related to direct expenses (1)$1,528 $1,344 $1,287 $1,288 $1,423 $5,639 $5,342 
Adjusted other expenses, net of adjusted capitalization of DAC
$2,468 $2,210 $2,148 $2,135 $2,371 $9,440 $8,864 
Less: Total notable items related to adjusted other expenses (1)69 — — — — 338 — 
Adjusted other expenses, net of adjusted capitalization of DAC, excluding total notable items related to adjusted other expenses (1)
$2,399 $2,210 $2,148 $2,135 $2,371 $9,102 $8,864 
Adjusted premiums, fees and other revenues$13,632 $11,216 $10,401 $11,820 $15,700 $49,144 $49,137 
Less: PRT2,499 (9)(6)487 4,163 4,346 4,635 
Adjusted premiums, fees and other revenues, excluding PRT$11,133 $11,225 $10,407 $11,333 $11,537 $44,798 $44,502 
Direct expense ratio 11.7 %12.0 %12.4 %10.9 %9.1 %12.2 %10.9 %
Direct expense ratio, excluding total notable items related to direct expenses and PRT (1)13.7 %12.0 %12.4 %11.4 %12.3 %12.6 %12.0 %
Adjusted expense ratio18.1 %19.7 %20.7 %18.1 %15.1 %19.2 %18.0 %
Adjusted expense ratio, excluding total notable items related to adjusted other expenses and PRT (1)21.5 %19.7 %20.6 %18.8 %20.6 %20.3 %19.9 %
(1)Notable items are related to “interest on tax adjustments” and “expense initiative 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)December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020
ASSETS
Investments:
Fixed maturity securities available-for-sale, at estimated fair value$327,820 $326,685 $340,005 $353,809 $354,809 
Equity securities, at estimated fair value1,342 1,050 1,105 1,111 1,079 
Contractholder-directed equity securities and fair value option securities, at estimated fair value 13,102 11,145 11,911 12,276 13,319 
Mortgage loans80,529 81,344 82,890 82,881 83,919 
Policy loans9,680 9,638 9,639 9,580 9,493 
Real estate and real estate joint ventures10,741 11,250 11,524 11,643 11,933 
Other limited partnership interests7,716 8,230 7,794 8,569 9,470 
Short-term investments, principally at estimated fair value3,850 5,930 5,345 3,832 3,904 
Other invested assets19,015 27,839 24,731 22,544 20,593 
Total investments473,795 483,111 494,944 506,245 508,519 
Cash and cash equivalents, principally at estimated fair value16,598 24,094 24,289 24,405 19,795 
Accrued investment income3,523 3,828 3,388 3,424 3,388 
Premiums, reinsurance and other receivables20,443 21,224 20,848 20,712 17,870 
Deferred policy acquisition costs and value of business acquired17,833 17,254 16,353 16,179 16,389 
Goodwill9,308 9,159 9,245 9,360 10,112 
Assets held-for-sale— — — — 7,418 
Other assets10,518 10,617 11,173 10,471 11,685 
Separate account assets188,445 168,454 187,343 189,696 199,970 
Total assets$740,463 $737,741 $767,583 $780,492 $795,146 
LIABILITIES AND EQUITY
Liabilities
Future policy benefits$194,909 $193,106 $196,522 $203,929 $206,656 
Policyholder account balances192,627 193,875 198,147 201,072 205,176 
Other policy-related balances17,171 16,755 16,870 16,883 17,101 
Policyholder dividends payable681 654 670 595 587 
Policyholder dividend obligation2,020 1,677 2,798 2,944 2,969 
Payables for collateral under securities loaned and other transactions26,745 35,530 34,133 34,772 29,475 
Short-term debt235 298 303 351 393 
Long-term debt 13,466 14,510 14,513 14,539 14,603 
Collateral financing arrangement993 981 968 924 845 
Junior subordinated debt securities3,150 3,151 3,151 3,152 3,153 
Current income tax payable363 708 928 638 129 
Deferred income tax liability9,097 10,009 11,334 10,839 11,008 
Liabilities held-for-sale— — — — 4,650 
Other liabilities 24,179 27,570 23,963 26,589 23,614 
Separate account liabilities188,445 168,454 187,343 189,696 199,970 
Total liabilities674,081 667,278 691,643 706,923 720,329 
Equity
Preferred stock, at par value— — — — — 
Common stock, at par value12 12 12 12 12 
Additional paid-in capital32,680 33,711 33,728 33,744 33,812 
Retained earnings33,078 36,919 36,568 36,782 36,491 
Treasury stock, at cost(12,678)(13,178)(13,178)(13,258)(13,829)
Accumulated other comprehensive income (loss)13,052 12,757 18,563 16,036 18,072 
Total MetLife, Inc.'s stockholders' equity66,144 70,221 75,693 73,316 74,558 
Noncontrolling interests238 242 247 253 259 
Total equity66,382 70,463 75,940 73,569 74,817 
Total liabilities and equity$740,463 $737,741 $767,583 $780,492 $795,146 

8
METLIFE
SUMMARY OF ADJUSTED EARNINGS AVAILABLE TO COMMON SHAREHOLDERS 
  For the Three Months Ended
Unaudited (In millions)December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020
Adjusted earnings before provision for income tax
U.S.
GROUP BENEFITS$416 $401 $319 $502 $490 
RETIREMENT AND INCOME SOLUTIONS404 452 240 618 663 
PROPERTY & CASUALTY 27 134 101 19 138 
TOTAL U.S.$847 $987 $660 $1,139 $1,291 
ASIA468 491 361 662 694 
LATIN AMERICA204 139 188 63 17 
EMEA71 99 137 72 100 
METLIFE HOLDINGS333 344 19 314 533 
CORPORATE & OTHER(284)(265)(332)(204)(302)
Total adjusted earnings before provision for income tax
$1,639 $1,795 $1,033 $2,046 $2,333 
Provision for income tax expense (benefit)
U.S.
GROUP BENEFITS$87 $89 $71 $110 $107 
RETIREMENT AND INCOME SOLUTIONS83 93 48 128 137 
PROPERTY & CASUALTY 2 25 18 1 26 
TOTAL U.S.$172 $207 $137 $239 $270 
ASIA127 141 105 197 200 
LATIN AMERICA43 44 56 24 3 
EMEA5 21 21 20 19 
METLIFE HOLDINGS64 67 (1)61 107 
CORPORATE & OTHER(663)(166)(120)(132)(138)
Total provision for income tax expense (benefit)
$(252)$314 $198 $409 $461 
Adjusted earnings available to common shareholders
U.S.
GROUP BENEFITS$329 $312 $248 $392 $383 
RETIREMENT AND INCOME SOLUTIONS321 359 192 490 526 
PROPERTY & CASUALTY 25 109 83 18 112 
TOTAL U.S.$675 $780 $523 $900 $1,021 
ASIA341 350 256 465 494 
LATIN AMERICA161 95 132 39 14 
EMEA66 78 116 52 81 
METLIFE HOLDINGS269 277 20 253 426 
CORPORATE & OTHER (1)322 (131)(289)(131)(198)
Total adjusted earnings available to common shareholders (1)
$1,834 $1,449 $758 $1,578 $1,838 
(1)Includes impact of preferred stock dividends of $57 million, $32 million, $77 million, $59 million and $34 million for the three months ended December 31, 2019, March 31, 2020, June 30, 2020, September 30, 2020 and December 31, 2020, 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 December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020
U.S.
GROUP BENEFITS46.7%43.1%34.3%54.1%52.9%
RETIREMENT AND INCOME SOLUTIONS21.9%23.2%12.4%31.7%34.0%
PROPERTY & CASUALTY 5.0%21.9%16.7%3.6%22.5%
TOTAL U.S.25.2%28.2%18.9%32.5%36.9%
ASIA9.6%9.8%7.2%13.0%13.8%
LATIN AMERICA21.7%12.4%17.2%5.1%1.8%
EMEA9.4%10.9%16.3%7.3%11.3%
METLIFE HOLDINGS11.2%11.2%0.8%10.2%17.2%
ADJUSTED RETURN ON ALLOCATED TANGIBLE EQUITY (3)
  For the Three Months Ended
Unaudited December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020
U.S.
28.6%32.4%21.8%37.3%42.4%
ASIA
14.6%14.8%10.9%19.6%20.9%
LATIN AMERICA
36.0%20.3%28.1%8.3%3.0%
EMEA
16.8%19.2%28.6%12.9%20.1%
METLIFE HOLDINGS
12.5%12.5%1.1%11.4%19.1%
(1) Annualized using quarter-to-date results.
(2) Allocated equity and allocated tangible equity are presented below:
  ALLOCATED EQUITYALLOCATED TANGIBLE EQUITY
Unaudited (In millions)2019202020192020
U.S.
GROUP BENEFITS
$2,817 $2,896 
RETIREMENT AND INCOME SOLUTIONS
5,876 6,187 
PROPERTY & CASUALTY
2,020 1,991 
TOTAL U.S.
$10,713 $11,074 $9,447 $9,652 
ASIA
$14,274 $14,313 $9,396 $9,490 
LATIN AMERICA
$2,965 $3,074 $1,791 $1,876 
EMEA
$2,802 $2,855 $1,595 $1,649 
METLIFE HOLDINGS
$9,599 $9,893 $8,715 $9,022 
(3) 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)
December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020
U.S.
$—$1$2$1$1
ASIA
$2$1$2$1$1
LATIN AMERICA
$—$—$—$—$—
EMEA
$1$1$2$1$2
METLIFE HOLDINGS
$3$4$4$4$4

10
U.S.
STATEMENTS OF ADJUSTED EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
  For the Three Months EndedFor the Year Ended
Unaudited (In millions)December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020December 31, 2019December 31, 2020
Adjusted revenues
Premiums$8,097 $5,674 $5,184 $6,333 $10,074 $26,801 $27,265 
Universal life and investment-type product policy fees270 275 268 263 264 1,078 1,070 
Net investment income1,747 1,766 1,425 1,827 1,885 7,021 6,903 
Other revenues219 240 240 237 240 887 957 
Total adjusted revenues10,333 7,955 7,117 8,660 12,463 35,787 36,195 
Adjusted expenses
Policyholder benefits and claims and policyholder dividends7,932 5,435 5,038 6,108 9,728 26,165 26,309 
Interest credited to policyholder account balances472 458 412 381 371 1,984 1,622 
Capitalization of DAC(112)(112)(122)(119)(100)(484)(453)
Amortization of DAC and VOBA123 119 115 123 114 475 471 
Amortization of negative VOBA— — — — — — — 
Interest expense on debt2 2 2 2 1 10 7 
Other expenses1,069 1,066 1,012 1,026 1,058 4,075 4,162 
Total adjusted expenses9,486 6,968 6,457 7,521 11,172 32,225 32,118 
Adjusted earnings before provision for income tax847 987 660 1,139 1,291 3,562 4,077 
Provision for income tax expense (benefit)172 207 137 239 270 724 853 
Adjusted earnings675 780 523 900 1,021 2,838 3,224 
Preferred stock dividends— — — — — — — 
Adjusted earnings available to common shareholders$675 $780 $523 $900 $1,021 $2,838 $3,224 
Adjusted premiums, fees and other revenues$8,586 $6,189 $5,692 $6,833 $10,578 $28,766 $29,292 
Less: PRT
2,499 (9)(6)487 4,163 4,346 4,635 
Adjusted premiums, fees and other revenues, excluding PRT$6,087 $6,198 $5,698 $6,346 $6,415 $24,420 $24,657 
11
U.S.
GROUP BENEFITS
STATEMENTS OF ADJUSTED EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
For the Three Months EndedFor the Year Ended
Unaudited (In millions)December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020December 31, 2019December 31, 2020
Adjusted revenues
Premiums$4,217 $4,487 $3,989 $4,545 $4,659 $16,911 $17,680 
Universal life and investment-type product policy fees194 204 200 200 205 789 809 
Net investment income297 277 277 290 283 1,162 1,127 
Other revenues143 160 157 156 156 575 629 
Total adjusted revenues4,851 5,128 4,623 5,191 5,303 19,437 20,245 
Adjusted expenses
Policyholder benefits and claims and policyholder dividends3,685 3,973 3,602 3,965 4,061 14,932 15,601 
Interest credited to policyholder account balances37 34 31 31 33 157 129 
Capitalization of DAC(5)(7)(6)(5)(5)(28)(23)
Amortization of DAC and VOBA10 7 7 12 8 35 34 
Amortization of negative VOBA— — — — — — — 
Interest expense on debt— — — 1 — 1 1 
Other expenses708 720 670 685 716 2,634 2,791 
Total adjusted expenses4,435 4,727 4,304 4,689 4,813 17,731 18,533 
Adjusted earnings before provision for income tax416 401 319 502 490 1,706 1,712 
Provision for income tax expense (benefit)87 89 71 110 107 358 377 
Adjusted earnings329 312 248 392 383 1,348 1,335 
Preferred stock dividends— — — — — — — 
Adjusted earnings available to common shareholders$329 $312 $248 $392 $383 $1,348 $1,335 
Adjusted premiums, fees and other revenues$4,554 $4,851 $4,346 $4,901 $5,020 $18,275 $19,118 
12
U.S.
RETIREMENT AND INCOME SOLUTIONS
STATEMENTS OF ADJUSTED EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
For the Three Months EndedFor the Year Ended
Unaudited (In millions)December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020December 31, 2019December 31, 2020
Adjusted revenues
Premiums$2,955 $275 $367 $885 $4,520 $6,230 $6,047 
Universal life and investment-type product policy fees76 71 68 63 59 289 261 
Net investment income1,409 1,444 1,126 1,484 1,546 5,681 5,600 
Other revenues73 71 76 76 86 292 309 
Total adjusted revenues4,513 1,861 1,637 2,508 6,211 12,492 12,217 
Adjusted expenses
Policyholder benefits and claims and policyholder dividends3,550 870 909 1,428 5,086 8,629 8,293 
Interest credited to policyholder account balances435 424 381 350 338 1,827 1,493 
Capitalization of DAC— (8)(12)(8)(2)(25)(30)
Amortization of DAC and VOBA6 8 5 7 5 23 25 
Amortization of negative VOBA— — — — — — — 
Interest expense on debt2 2 2 1 1 9 6 
Other expenses116 113 112 112 120 468 457 
Total adjusted expenses4,109 1,409 1,397 1,890 5,548 10,931 10,244 
Adjusted earnings before provision for income tax404 452 240 618 663 1,561 1,973 
Provision for income tax expense (benefit)83 93 48 128 137 320 406 
Adjusted earnings321 359 192 490 526 1,241 1,567 
Preferred stock dividends— — — — — — — 
Adjusted earnings available to common shareholders$321 $359 $192 $490 $526 $1,241 $1,567 
Adjusted premiums, fees and other revenues$3,104 $417 $511 $1,024 $4,665 $6,811 $6,617 
Less: PRT
2,499 (9)(6)487 4,163 4,346 4,635 
Adjusted premiums, fees and other revenues, excluding PRT$605 $426 $517 $537 $502 $2,465 $1,982 
13
U.S.
PROPERTY & CASUALTY
STATEMENTS OF ADJUSTED EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
  For the Three Months EndedFor the Year Ended
Unaudited (In millions)December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020December 31, 2019December 31, 2020
Adjusted revenues
Premiums$925 $912 $828 $903 $895 $3,660 $3,538 
Universal life and investment-type product policy fees— — — — — — — 
Net investment income41 45 22 53 56 178 176 
Other revenues3 9 7 5 (2)20 19 
Total adjusted revenues969 966 857 961 949 3,858 3,733 
Adjusted expenses
Policyholder benefits and claims and policyholder dividends697 592 527 715 581 2,604 2,415 
Interest credited to policyholder account balances— — — — — — — 
Capitalization of DAC(107)(97)(104)(106)(93)(431)(400)
Amortization of DAC and VOBA107 104 103 104 101 417 412 
Amortization of negative VOBA— — — — — — — 
Interest expense on debt— — — — — — — 
Other expenses245 233 230 229 222 973 914 
Total adjusted expenses942 832 756 942 811 3,563 3,341 
Adjusted earnings before provision for income tax27 134 101 19 138 295 392 
Provision for income tax expense (benefit)2 25 18 1 26 46 70 
Adjusted earnings25 109 83 18 112 249 322 
Preferred stock dividends— — — — — — — 
Adjusted earnings available to common shareholders$25 $109 $83 $18 $112 $249 $322 
Adjusted premiums, fees and other revenues$928 $921 $835 $908 $893 $3,680 $3,557 
14
U.S.
GROUP BENEFITS
FUTURE POLICY BENEFITS AND POLICYHOLDER ACCOUNT BALANCES
  For the Three Months Ended
Unaudited (In millions)December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020
Balance, beginning of period$18,963 $18,965 $18,935 $19,665 $20,024 
Premiums and deposits5,001 5,327 5,220 5,298 5,299 
Surrenders and withdrawals(592)(625)(537)(565)(571)
Benefit payments(3,757)(4,072)(3,655)(4,078)(4,147)
Net flows652 630 1,028 655 581 
Net transfers from (to) separate accounts— — 5 6 4 
Interest145 138 130 131 134 
Policy charges(149)(146)(149)(145)(143)
Other(646)(652)(284)(288)(668)
Balance, end of period$18,965 $18,935 $19,665 $20,024 $19,932 
SEPARATE ACCOUNT LIABILITIES
  For the Three Months Ended
Unaudited (In millions)December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020
Balance, beginning of period$905 $970 $793 $945 $1,003 
Premiums and deposits65 64 64 64 63 
Surrenders and withdrawals(18)(19)(12)(17)(13)
Benefit payments(1)— (1)(4)(2)
Net flows46 45 51 43 48 
Investment performance74 (162)160 77 131 
Net transfers from (to) general account— — (5)(6)(4)
Policy charges(54)(55)(55)(56)(55)
Other(1)(5)1 — — 
Balance, end of period$970 $793 $945 $1,003 $1,123 
15
U.S.
GROUP BENEFITS
OTHER EXPENSES BY MAJOR CATEGORY
  For the Three Months Ended
Unaudited (In millions)December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020
Direct and allocated expenses$363 $354 $326 $332 $356 
Pension, postretirement and postemployment benefit costs19 5 4 4 4 
Premium taxes, other taxes, and licenses & fees66 88 89 93 87 
Commissions and other variable expenses260 273 251 256 269 
Adjusted other expenses$708 $720 $670 $685 $716 
OTHER STATISTICAL INFORMATION (1)
  For the Three Months Ended
Unaudited (In millions, except ratios)December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020
Group Life (2)
Adjusted premiums, fees and other revenues$1,858 $1,920 $1,943 $1,915 $1,915 
Mortality ratio85.4 %87.9 %95.9 %89.6 %96.3 %
Group Non-Medical Health (3)
Adjusted premiums, fees and other revenues$1,849 $1,959 $1,376 $1,977 $2,079 
Interest adjusted benefit ratio (4)71.4 %71.7 %58.5 %67.4 %61.7 %
(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.

16
U.S.
RETIREMENT AND INCOME SOLUTIONS
 
FUTURE POLICY BENEFITS AND POLICYHOLDER ACCOUNT BALANCES
  For the Three Months Ended
Unaudited (In millions)December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020
Balance, beginning of period$118,134 $121,853 $124,174 $129,030 $132,376 
Premiums and deposits21,132 20,967 22,473 18,957 20,961 
Surrenders and withdrawals(17,718)(17,441)(20,125)(18,536)(17,176)
Benefit payments(1,040)(1,132)(1,176)(1,206)(1,182)
Net flows2,374 2,394 1,172 (785)2,603 
Net transfers from (to) separate accounts— — — — 17 
Interest1,029 1,032 988 953 946 
Policy charges(23)(43)(42)(42)(41)
Other339 (1,062)2,738 3,220 802 
Balance, end of period$121,853 $124,174 $129,030 $132,376 $136,703 
SEPARATE ACCOUNT LIABILITIES
  For the Three Months Ended
Unaudited (In millions)December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020
Balance, beginning of period$78,346 $74,959 $76,838 $81,486 $83,887 
Premiums and deposits1,681 4,051 2,167 1,709 2,138 
Surrenders and withdrawals (1)(4,360)(2,729)(2,319)(2,127)(2,971)
Benefit payments(27)(34)(24)(25)(24)
Net flows(2,706)1,288 (176)(443)(857)
Investment performance865 (414)3,618 1,447 2,069 
Net transfers from (to) general account— — — — (17)
Policy charges(85)(80)(83)(83)(94)
Other(1,461)1,085 1,289 1,480 (795)
Balance, end of period$74,959 $76,838 $81,486 $83,887 $84,193 
SYNTHETIC GICS (2)
For the Three Months Ended
Unaudited (In millions)December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020
Balance, beginning of period$28,098 $30,341 $33,588 $34,921 $36,330 
Premiums and deposits (1)3,019 3,906 1,424 1,598 2,704 
Surrenders and withdrawals(985)(863)(318)(417)(621)
Net flows 2,034 3,043 1,106 1,181 2,083 
Interest209 204 227 228 233 
Balance, end of period$30,341 $33,588 $34,921 $36,330 $38,646 
(1)Includes $2.4 billion, $0, $0, $616 million and $360 million of transfers from separate account GICs to synthetic GICs at December 31, 2019, March 31, 2020, June 30, 2020, September 30, 2020 and December 31,2020 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.

17
U.S.
RETIREMENT AND INCOME SOLUTIONS
OTHER EXPENSES BY MAJOR CATEGORY
For the Three Months Ended
Unaudited (In millions)December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020
Direct and allocated expenses$61 $61 $56 $57 $60 
Pension, postretirement and postemployment benefit costs3 2 1 1 2 
Premium taxes, other taxes, and licenses & fees12 8 4 6 10 
Commissions and other variable expenses40 42 51 48 48 
Adjusted other expenses$116 $113 $112 $112 $120 
SPREAD
For the Three Months Ended
UnauditedDecember 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020
Investment income yield excluding variable investment income yield4.32 %4.24 %4.02 %3.99 %3.98 %
Variable investment income yield0.23 %0.31 %(0.60)%0.58 %0.73 %
Total investment income yield4.55 %4.55 %3.42 %4.57 %4.71 %
Average crediting rate3.49 %3.41 %3.17 %3.01 %2.94 %
Annualized general account spread1.06 %1.14 %0.25 %1.56 %1.77 %
Annualized general account spread excluding variable investment income yield0.83 %0.83 %0.85 %0.98 %1.04 %

18
U.S.
PROPERTY & CASUALTY
OTHER EXPENSES BY MAJOR CATEGORY
  For the Three Months Ended
Unaudited (In millions)December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020
Direct and allocated expenses$105 $94 $89 $90 $87 
Pension, postretirement and postemployment benefit costs3 1 1 — 1 
Premium taxes, other taxes, and licenses & fees23 21 25 24 19 
Commissions and other variable expenses114 117 115 115 115 
Adjusted other expenses$245 $233 $230 $229 $222 
NET WRITTEN PREMIUMS BY PRODUCT AND SELECTED FINANCIAL INFORMATION AND SUPPLEMENTAL DATA
For the Three Months Ended
Unaudited (In millions, except ratios)December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020
Net Written Premiums by Product
Auto$576 $564 $517 $574 $553 
Homeowners & Other321 283 333 334 292 
Total$897 $847 $850 $908 $845 
Selected Financial Information and Supplemental Data (1)
Total Property & Casualty
Net earned premium$925 $912 $828 $903 $895 
Loss and loss adjustment expense ratio75.3  %64.9  %63.7  %79.1  %64.9  %
Other expense ratio26.3  %26.1  %27.4  %25.1  %25.6  %
Total combined ratio101.6  %91.0  %91.1  %104.2  %90.5  %
Effect of catastrophe losses1.4  %4.7  %13.7  %16.2  %4.0  %
Combined ratio, excluding catastrophes100.2  %86.3  %77.4  %88.0  %86.5  %
Prior year development6.3  %2.7  %0.8  %3.2  %1.8  %
Combined ratio, excluding catastrophes and prior year development, before provision for income tax93.9  %83.6  %76.6  %84.8  %84.7  %
Auto
Net earned premium$599 $588 $512 $581 $579 
Loss and loss adjustment expense ratio92.8  %64.8 %52.4 %62.0  %67.6  %
Other expense ratio25.8  %25.2 %27.3 %23.6  %24.0  %
Total combined ratio118.6  %90.0 %79.7 %85.6  %91.6  %
Effect of catastrophe losses0.3  %0.5 %1.3 %2.3  %0.1  %
Combined ratio, excluding catastrophes118.3  %89.5 %78.4 %83.3  %91.5  %
Prior year development10.9  %(0.1)%1.4 %—  %2.2  %
Combined ratio, excluding catastrophes and prior year development, before provision for income tax107.4  %89.6 %77.0 %83.3  %89.3  %
Homeowners & Other
Net earned premium$326 $324 $316 $322 $316 
Loss and loss adjustment expense ratio43.2  %65.1  %82.1  %110.1  %60.0  %
Other expense ratio27.1  %27.8  %27.4  %27.7  %28.5  %
Total combined ratio70.3  %92.9  %109.5  %137.8  %88.5  %
Effect of catastrophe losses3.5  %12.3  %33.9  %41.2  %11.0  %
Combined ratio, excluding catastrophes66.8  %80.6  %75.6  %96.6  %77.5  %
Prior year development(2.0) %8.0  %(0.2) %8.8  %1.1  %
Combined ratio, excluding catastrophes and prior year development, before provision for income tax68.8  %72.6  %75.8  %87.8  %76.4  %
Catastrophe Losses Before Provision for Income Tax
Auto$2 $3 $6 $14 $1 
Homeowners & Other11 40 107 132 35 
Total$13 $43 $113 $146 $36 
(1) This selected financial information and supplemental data are presented and calculated based on general industry standards.
19
ASIA
STATEMENTS OF ADJUSTED EARNINGS AVAILABLE TO COMMON SHAREHOLDERS 
For the Three Months EndedFor the Year Ended
Unaudited (In millions)December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020December 31, 2019December 31, 2020
Adjusted revenues
Premiums$1,648 $1,636 $1,584 $1,654 $1,697 $6,632 $6,571 
Universal life and investment-type product policy fees419 430 420 595 447 1,674 1,892 
Net investment income952 937 767 1,088 1,146 3,691 3,938 
Other revenues13 14 14 16 17 56 61 
Total adjusted revenues3,032 3,017 2,785 3,353 3,307 12,053 12,462 
Adjusted expenses
Policyholder benefits and claims and policyholder dividends1,323 1,321 1,255 1,291 1,346 5,185 5,213 
Interest credited to policyholder account balances443 445 447 470 472 1,710 1,834 
Capitalization of DAC(464)(421)(351)(431)(449)(1,913)(1,652)
Amortization of DAC and VOBA316 315 284 506 310 1,288 1,415 
Amortization of negative VOBA(7)(8)(8)(14)(7)(25)(37)
Interest expense on debt— — — — — — — 
Other expenses953 874 797 869 941 3,818 3,481 
Total adjusted expenses2,564 2,526 2,424 2,691 2,613 10,063 10,254 
Adjusted earnings before provision for income tax468 491 361 662 694 1,990 2,208 
Provision for income tax expense (benefit)127 141 105 197 200 585 643 
Adjusted earnings341 350 256 465 494 1,405 1,565 
Preferred stock dividends— — — — — — — 
Adjusted earnings available to common shareholders$341 $350 $256 $465 $494 $1,405 $1,565 
Adjusted premiums, fees and other revenues$2,080 $2,080 $2,018 $2,265 $2,161 $8,362 $8,524 
20
ASIA
ADJUSTED PREMIUMS, FEES AND OTHER REVENUES
For the Three Months Ended
Unaudited (In millions)December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020
Adjusted premiums, fees and other revenues$2,080 $2,080 $2,018 $2,265 $2,161 
Adjusted premiums, fees and other revenues, on a constant currency basis $2,163 $2,175 $2,097 $2,310 $2,161 
Add: Operating joint ventures, on a constant currency basis (1), (2)289 287 276 295 289 
Adjusted premiums, fees and other revenues, including operating joint ventures, on a constant currency basis$2,452 $2,462 $2,373 $2,605 $2,450 
OTHER EXPENSES BY MAJOR CATEGORY
For the Three Months Ended
Unaudited (In millions)December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020
Direct and allocated expenses$343 $321 $309 $313 $354 
Pension, postretirement and postemployment benefit costs23 23 24 24 35 
Premium taxes, other taxes, and licenses & fees51 40 34 42 41 
Commissions and other variable expenses536 490 430 490 511 
Adjusted other expenses$953 $874 $797 $869 $941 
Adjusted other expenses, net of adjusted capitalization of DAC$489 $453 $446 $438 $492 
Adjusted other expenses on a constant currency basis$990 $912 $825 $887 $941 
Add: Operating joint ventures, on a constant currency basis (1), (2)116 99 108 103 107 
Adjusted other expenses, including operating joint ventures, on a constant currency basis$1,106 $1,011 $933 $990 $1,048 
Adjusted other expenses, including operating joint ventures, net of adjusted capitalization of DAC, on a constant currency basis
$585 $544 $535 $523 $569 
SALES ON A CONSTANT CURRENCY BASIS
For the Three Months Ended
Unaudited (In millions)December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020
Japan:
Life$157 $174 $101 $222 $151 
Accident & Health95 81 51 78 74 
Annuities65 62 30 38 72 
Other5 2 2 1 2 
Total Japan322 319 184 339 299 
Other Asia216 201 167 230 245 
   Total sales$538 $520 $351 $569 $544 
OTHER STATISTICAL INFORMATION
For the Three Months Ended
Unaudited (In millions)December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020
Adjusted earnings available to common shareholders$341 $350 $256 $465 $494 
Adjusted earnings available to common shareholders, on a constant currency basis$347 $362 $268 $468 $494 
(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.

21
ASIA
GENERAL ACCOUNT ASSETS UNDER MANAGEMENT AND RELATED MEASURES (1)
Unaudited (In millions)December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020
GA AUM $130,861 $131,521 $134,769 $139,445 $144,267 
GA AUM (at amortized cost)$119,044 $120,490 $121,429 $125,171 $129,661 
GA AUM (at amortized cost), on a constant currency basis$123,993 $127,591 $126,622 $128,248 $129,661 
  Add: Operating joint ventures, on a constant currency basis (2)4,829 5,018 5,251 5,383 5,612 
GA AUM (at amortized cost), including operating joint ventures, on a constant currency basis$128,822 $132,609 $131,873 $133,631 $135,273 
(1)In June 2020, MetLife completed the sale of MetLife Limited and Metropolitan Life Insurance Company of Hong Kong Limited (collectively, “MetLife Hong Kong”) to a third party. The GA AUM (at amortized cost) related to MetLife Hong Kong was historically reported in the Asia segment and is reflected in the above table for the periods through March 31, 2020. The GA AUM (at amortized cost) disposed in the sale was $2,226 million at June 30, 2020.
(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 and reported in other invested assets, a component of total investments.

22
LATIN AMERICA
STATEMENTS OF ADJUSTED EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
 
For the Three Months EndedFor the Year Ended
Unaudited (In millions)December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020December 31, 2019December 31, 2020
Adjusted revenues
Premiums$601 $640 $489 $529 $607 $2,723 $2,265 
Universal life and investment-type product policy fees274 270 238 225 261 1,094 994 
Net investment income320 218 260 221 293 1,271 992 
Other revenues13 11 10 7 10 44 38 
Total adjusted revenues1,208 1,139 997 982 1,171 5,132 4,289 
Adjusted expenses
Policyholder benefits and claims and policyholder dividends580 610 449 575 772 2,623 2,406 
Interest credited to policyholder account balances78 70 56 52 62 332 240 
Capitalization of DAC(100)(100)(74)(84)(104)(396)(362)
Amortization of DAC and VOBA76 74 70 62 70 291 276 
Amortization of negative VOBA— — — — — — — 
Interest expense on debt1 1 1 1 1 3 4 
Other expenses369 345 307 313 353 1,443 1,318 
Total adjusted expenses1,004 1,000 809 919 1,154 4,296 3,882 
Adjusted earnings before provision for income tax204 139 188 63 17 836 407 
Provision for income tax expense (benefit)43 44 56 24 3 227 127 
Adjusted earnings161 95 132 39 14 609 280 
Preferred stock dividends— — — — — — — 
Adjusted earnings available to common shareholders$161 $95 $132 $39 $14 $609 $280 
Adjusted premiums, fees and other revenues$888 $921 $737 $761 $878 $3,861 $3,297 
23
LATIN AMERICA
OTHER EXPENSES BY MAJOR CATEGORY
For the Three Months Ended
Unaudited (In millions)December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020
Direct and allocated expenses$145 $129 $119 $117 $125 
Pension, postretirement and postemployment benefit costs2 2 1 1 1 
Premium taxes, other taxes, and licenses & fees14 15 8 11 12 
Commissions and other variable expenses208 199 179 184 215 
Adjusted other expenses$369 $345 $307 $313 $353 
Adjusted other expenses, net of adjusted capitalization of DAC$269 $245 $233 $229 $249 
Adjusted other expenses on a constant currency basis$347 $337 $332 $325 $353 
Adjusted other expenses, net of adjusted capitalization of DAC, on a constant currency basis$253 $240 $251 $237 $249 
SALES ON A CONSTANT CURRENCY BASIS
For the Three Months Ended
Unaudited (In millions)December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020
Mexico$93 $118 $65 $74 $77 
Chile65 89 42 44 47 
All other62 46 32 42 45 
Total sales$220 $253 $139 $160 $169 
OTHER STATISTICAL INFORMATION
For the Three Months Ended
Unaudited (In millions)December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020
Adjusted premiums, fees and other revenues$888 $921 $737 $761 $878 
Adjusted earnings available to common shareholders$161 $95 $132 $39 $14 
Adjusted premiums, fees and other revenues, on a constant currency basis$837 $909 $808 $799 $878 
Adjusted earnings available to common shareholders, on a constant currency basis$153 $90 $148 $44 $14 

24
EMEA
STATEMENTS OF ADJUSTED EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
 
For the Three Months EndedFor the Year Ended
Unaudited (In millions)December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020December 31, 2019December 31, 2020
Adjusted revenues
Premiums$558 $568 $557 $551 $583 $2,177 $2,259 
Universal life and investment-type product policy fees98 116 92 116 109 423 433 
Net investment income71 69 63 67 70 291 269 
Other revenues14 13 11 13 15 54 52 
Total adjusted revenues741 766 723 747 777 2,945 3,013 
Adjusted expenses
Policyholder benefits and claims and policyholder dividends309 310 263 304 319 1,176 1,196 
Interest credited to policyholder account balances26 27 27 29 26 98 109 
Capitalization of DAC(134)(130)(115)(122)(124)(505)(491)
Amortization of DAC and VOBA101 130 85 125 114 428 454 
Amortization of negative VOBA(2)(2)(2)(1)(3)(8)(8)
Interest expense on debt— — — — 1 — 1 
Other expenses370 332 328 340 344 1,399 1,344 
Total adjusted expenses670 667 586 675 677 2,588 2,605 
Adjusted earnings before provision for income tax71 99 137 72 100 357 408 
Provision for income tax expense (benefit)5 21 21 20 19 75 81 
Adjusted earnings66 78 116 52 81 282 327 
Preferred stock dividends— — — — — — — 
Adjusted earnings available to common shareholders$66 $78 $116 $52 $81 $282 $327 
Adjusted premiums, fees and other revenues$670 $697 $660 $680 $707 $2,654 $2,744 
25
EMEA
OTHER EXPENSES BY MAJOR CATEGORY
For the Three Months Ended
Unaudited (In millions)December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020
Direct and allocated expenses$142 $110 $110 $119 $120 
Pension, postretirement and postemployment benefit costs1 2 2 1 4 
Premium taxes, other taxes, and licenses & fees6 7 8 7 5 
Commissions and other variable expenses221 213 208 213 215 
Adjusted other expenses$370 $332 $328 $340 $344 
Adjusted other expenses, net of adjusted capitalization of DAC$236 $202 $213 $218 $220 
Adjusted other expenses on a constant currency basis $373 $337 $340 $341 $344 
Adjusted other expenses, net of adjusted capitalization of DAC, on a constant currency basis$242 $208 $221 $219 $220 
OTHER STATISTICAL INFORMATION
  For the Three Months Ended
Unaudited (In millions)December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020
Adjusted premiums, fees and other revenues$670 $697 $660 $680 $707 
Adjusted earnings available to common shareholders$66 $78 $116 $52 $81 
Adjusted premiums, fees and other revenues, on a constant currency basis$673 $705 $682 $683 $707 
Adjusted earnings available to common shareholders, on a constant currency basis$64 $77 $120 $51 $81 
Total sales on a constant currency basis$217 $252 $196 $207 $219 
26
METLIFE HOLDINGS
STATEMENTS OF ADJUSTED EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
For the Three Months EndedFor the Year Ended
Unaudited (In millions)December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020December 31, 2019December 31, 2020
Adjusted revenues
Premiums$972 $904 $889 $876 $931 $3,748 $3,600 
Universal life and investment-type product policy fees280 294 249 269 261 1,124 1,073 
Net investment income1,340 1,315 981 1,427 1,461 5,281 5,184 
Other revenues69 35 70 61 72 253 238 
Total adjusted revenues2,661 2,548 2,189 2,633 2,725 10,406 10,095 
Adjusted expenses
Policyholder benefits and claims and policyholder dividends1,763 1,661 1,705 1,697 1,675 6,970 6,738 
Interest credited to policyholder account balances224 218 219 217 214 905 868 
Capitalization of DAC(5)(5)(5)(5)(24)(28)(39)
Amortization of DAC and VOBA62 100 11 177 82 299 370 
Amortization of negative VOBA— — — — — — — 
Interest expense on debt2 2 1 2 1 8 6 
Other expenses282 228 239 231 244 969 942 
Total adjusted expenses2,328 2,204 2,170 2,319 2,192 9,123 8,885 
Adjusted earnings before provision for income tax333 344 19 314 533 1,283 1,210 
Provision for income tax expense (benefit)64 67 (1)61 107 249 234 
Adjusted earnings269 277 20 253 426 1,034 976 
Preferred stock dividends— — — — — — — 
Adjusted earnings available to common shareholders$269 $277 $20 $253 $426 $1,034 $976 
Adjusted premiums, fees and other revenues$1,321 $1,233 $1,208 $1,206 $1,264 $5,125 $4,911 
27
METLIFE HOLDINGS
FUTURE POLICY BENEFITS AND POLICYHOLDER ACCOUNT BALANCES
LIFE & OTHER (1)
For the Three Months Ended
Unaudited (In millions)December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020
Balance, beginning of period$81,118 $81,161 $81,458 $81,497 $83,021 
Premiums and deposits (2), (3)1,322 1,236 1,227 1,236 1,216 
Surrenders and withdrawals(680)(642)(554)(607)(567)
Benefit payments(813)(800)(892)(830)(832)
Net flows(171)(206)(219)(201)(183)
Net transfers from (to) separate accounts20 (1)31 5 12 
Interest834 832 833 836 836 
Policy charges(188)(188)(186)(184)(184)
Other(452)(140)(420)1,068 (498)
Balance, end of period$81,161 $81,458 $81,497 $83,021 $83,004 
ANNUITIESFor the Three Months Ended
Unaudited (In millions)December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020
Balance, beginning of period$19,402 $18,755 $19,895 $19,538 $19,466 
Premiums and deposits (2), (3)97 116 107 91 111 
Surrenders and withdrawals(512)(390)(277)(286)(356)
Benefit payments(161)(168)(158)(149)(158)
Net flows(576)(442)(328)(344)(403)
Net transfers from (to) separate accounts80 177 73 188 170 
Interest134 134 132 130 131 
Policy charges(4)(4)(4)(4)(4)
Other(281)1,275 (230)(42)(331)
Balance, end of period$18,755 $19,895 $19,538 $19,466 $19,029 
SEPARATE ACCOUNT LIABILITIES
LIFE & OTHER
For the Three Months Ended
Unaudited (In millions)December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020
Balance, beginning of period$5,324 $5,647 $4,586 $5,583 $6,039 
Premiums and deposits (3)62 63 60 59 59 
Surrenders and withdrawals(59)(60)(38)(51)(55)
Benefit payments(7)(10)(10)(10)(11)
Net flows(4)(7)12 (2)(7)
Investment performance409 (987)1,082 527 895 
Net transfers from (to) general account(20)1 (31)(5)(12)
Policy charges(66)(65)(65)(65)(66)
Other4 (3)(1)1 (1)
Balance, end of period$5,647 $4,586 $5,583 $6,039 $6,848 
ANNUITIES
For the Three Months Ended
Unaudited (In millions)December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020
Balance, beginning of period$39,122 $39,962 $32,942 $36,852 $37,883 
Premiums and deposits (3)79 85 77 65 75 
Surrenders and withdrawals(1,147)(1,111)(641)(812)(942)
Benefit payments(105)(100)(98)(106)(107)
Net flows(1,173)(1,126)(662)(853)(974)
Investment performance
2,294 (5,531)4,831 2,269 4,282 
Net transfers from (to) general account(80)(177)(73)(188)(170)
Policy charges(201)(187)(185)(197)(196)
Other— 1 (1)— — 
Balance, end of period$39,962 $32,942 $36,852 $37,883 $40,825 
(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.
28
METLIFE HOLDINGS
OTHER EXPENSES BY MAJOR CATEGORY
  For the Three Months Ended
Unaudited (In millions)December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020
Direct and allocated expenses$184 $151 $149 $155 $149 
Pension, postretirement and postemployment benefit costs9 3 3 3 3 
Premium taxes, other taxes, and licenses & fees14 17 17 17 25 
Commissions and other variable expenses75 57 70 56 67 
Adjusted other expenses$282 $228 $239 $231 $244 
OTHER STATISTICAL INFORMATION
For the Three Months Ended
Unaudited (In millions, except ratios)December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020
Life (1)
Adjusted premiums, fees and other revenues$906 $830 $817 $811 $843 
Interest adjusted benefit ratio55.5 %51.0 %59.1 %60.2 %59.6 %
Lapse Ratio (2)
Traditional life4.8 %4.7 %4.5 %4.3 %4.1 %
Variable & universal life4.1 %4.1 %3.9 %3.7 %3.5 %
Fixed annuity11.3 %9.6 %9.1 %8.5 %6.5 %
Variable annuity10.2 %10.6 %9.8 %9.2 %8.8 %
(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.

29
CORPORATE & OTHER
STATEMENTS OF ADJUSTED EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
For the Three Months EndedFor the Year Ended
Unaudited (In millions)December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020December 31, 2019December 31, 2020
Adjusted revenues
Premiums$8 $12 $13 $(8)$5 $83 $22 
Universal life and investment-type product policy fees— — 1 1 1 2 3 
Net investment income92 16 (52)58 20 275 42 
Other revenues79 84 72 82 106 291 344 
Total adjusted revenues179 112 34 133 132 651 411 
Adjusted expenses
Policyholder benefits and claims and policyholder dividends3 26 3 (6)(26)73 (3)
Interest credited to policyholder account balances— — — — — — — 
Capitalization of DAC(3)(3)(2)(3)(3)(12)(11)
Amortization of DAC and VOBA1 1 3 2 2 6 8 
Amortization of negative VOBA— — — — — — — 
Interest expense on debt219 217 228 224 226 934 895 
Other expenses243 136 134 120 235 1,074 625 
Total adjusted expenses463 377 366 337 434 2,075 1,514 
Adjusted earnings before provision for income tax(284)(265)(332)(204)(302)(1,424)(1,103)
Provision for income tax expense (benefit)(663)(166)(120)(132)(138)(1,201)(556)
Adjusted earnings379 (99)(212)(72)(164)(223)(547)
Preferred stock dividends57 32 77 59 34 178 202 
Adjusted earnings available to common shareholders$322 $(131)$(289)$(131)$(198)$(401)$(749)
Adjusted premiums, fees and other revenues$87 $96 $86 $75 $112 $376 $369 
ADJUSTED EARNINGS AVAILABLE TO COMMON SHAREHOLDERS BY SOURCE
  For the Three Months EndedFor the Year Ended
Unaudited (In millions)December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020December 31, 2019December 31, 2020
Business activities$20 $18 $12 $30 $36 $70 $96 
Net investment income101 17 (50)59 28 290 54 
Interest expense on debt(230)(229)(238)(238)(238)(978)(943)
Corporate initiatives and projects(195)(31)(25)(27)(76)(563)(159)
Other(67)(40)(31)(28)(52)(330)(151)
Provision for income tax (expense) benefit and other tax-related items750 166 120 132 138 1,288 556 
Preferred stock dividends(57)(32)(77)(59)(34)(178)(202)
Adjusted earnings available to common shareholders$322 $(131)$(289)$(131)$(198)$(401)$(749)
30
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)December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020December 31, 2019December 31, 2020
Fixed Maturity Securities
Yield4.19 %3.82 %3.99 %3.87 %3.83 %4.22 %3.88 %
Investment income (2), (3)$2,965 $2,739 $2,885 $2,849 $2,883 $11,743 $11,356 
Investment gains (losses)71 4 146 113 31 267 294 
Ending carrying value (4)329,067 327,913 341,365 355,220 356,420 329,067 356,420 
Mortgage Loans
Yield5.00 %4.37 %4.20 %4.27 %4.25 %4.82 %4.27 %
Investment income (3)998 884 862 885 887 3,782 3,518 
Investment gains (losses)6 (63)(80)(5)(65)(11)(213)
Ending carrying value80,529 81,344 82,890 82,881 83,919 80,529 83,919 
Real Estate and Real Estate Joint Ventures
Yield3.58 %2.95 %0.62 %0.39 %2.30 %3.20 %1.56 %
Investment income94 81 18 11 68 327 178 
Investment gains (losses)297 1 2 1 3 399 7 
Ending carrying value10,741 11,250 11,524 11,643 11,933 10,741 11,933 
Policy Loans
Yield5.21 %5.23 %5.15 %5.15 %5.18 %5.29 %5.18 %
Investment income126 126 124 124 124 512 498 
Ending carrying value9,680 9,638 9,639 9,580 9,493 9,680 9,493 
Equity Securities
Yield5.85 %5.43 %4.12 %5.56 %4.19 %5.25 %4.83 %
Investment income16 14 11 15 10 61 50 
Investment gains (losses)12 (284)72 2 73 134 (137)
Ending carrying value1,342 1,050 1,105 1,111 1,079 1,342 1,079 
Other Limited Partnership Interests
Yield9.87 %16.22 %(30.23)%28.28 %31.63 %11.81 %12.17 %
Investment income 187 323 (605)578 714 840 1,010 
Investment gains (losses)3 4 1 (4)(16)6 (15)
Ending carrying value7,716 8,230 7,794 8,569 9,470 7,716 9,470 
Cash and Short-term Investments
Yield2.09 %1.73 %1.35 %1.28 %1.01 %2.47 %1.35 %
Investment income50 44 38 34 24 256 140 
Investment gains (losses)9 4 (5)(19)(8)3 (28)
Ending carrying value (5)20,448 30,024 29,631 28,234 23,696 20,448 23,696 
Other Invested Assets
Investment income 247 266 247 331 318 901 1,162 
Investment gains (losses)(10)21 106 54 49 (145)230 
Ending carrying value19,015 27,839 24,731 22,544 20,593 19,015 20,593 
Total Investments
Investment income yield4.57 %4.30 %3.40 %4.52 %4.63 %4.56 %4.22 %
Investment fees and expenses yield(0.13)%(0.13)%(0.12)%(0.12)%(0.14)%(0.14)%(0.13)%
Net Investment Income Yield4.44 %4.17 %3.28 %4.40 %4.49 %4.42 %4.09 %
Investment income$4,683 $4,477 $3,580 $4,827 $5,028 $18,422 $17,912 
Investment fees and expenses(137)(134)(122)(131)(151)(545)(538)
Net investment income including Divested businesses4,546 4,343 3,458 4,696 4,877 17,877 17,374 
Less: Net investment income from Divested businesses24 22 14 8 2 47 46 
Adjusted Net Investment Income (6)$4,522 $4,321 $3,444 $4,688 $4,875 $17,830 $17,328 
Ending Carrying Value$478,538 $497,288 $508,679 $519,782 $516,603 $478,538 $516,603 
Investment Portfolio Gains (Losses) including Divested businesses$388 $(313)$242 $142 $67 $653 $138 
Less: Divested businesses— — — 18 — — 18 
Investment Portfolio Gains (Losses) (7)$388 $(313)$242 $124 $67 $653 $120 
Gross investment gains672 436 677 289 338 1,707 1,740 
Gross investment losses(144)(495)(339)(202)(178)(763)(1,214)
Net credit loss (provision) release and (impairments)(140)(254)(96)37 (93)(291)(406)
Investment Portfolio Gains (Losses) (7)388 (313)242 124 67 653 120 
Investment portfolio gains (losses) income tax (expense) benefit(96)69 (166)(19)15 (203)(101)
Investment Portfolio Gains (Losses), Net of Income Tax$292 $(244)$76 $105 $82 $450 $19 
Derivative gains (losses) (7)$(1,583)$4,068 $(896)$(809)$(1,820)$187 $543 
Derivative gains (losses) income tax (expense) benefit364 (885)195 165 390 (63)(135)
Derivative Gains (Losses), Net of Income Tax$(1,219)$3,183 $(701)$(644)$(1,430)$124 $408 
See footnotes on Page 34.

31
INVESTMENTS
 
SUMMARY OF FIXED MATURITY SECURITIES AVAILABLE-FOR-SALE
BY SECTOR AND QUALITY DISTRIBUTION
December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020
Unaudited (In millions, except ratios)Amount% of TotalAmount% of TotalAmount% of TotalAmount% of TotalAmount% of Total
U.S. corporate securities$87,753 26.8 %$85,071 26.0 %$90,112 26.5 %$90,622 25.6 %$93,416 26.3 %
Foreign government securities67,229 20.5 %64,844 19.9 %65,706 19.3 %68,611 19.4 %71,699 20.2 %
Foreign corporate securities64,165 19.6 %59,195 18.1 %62,817 18.5 %65,394 18.5 %69,408 19.5 %
U.S. government and agency securities42,084 12.8 %47,959 14.7 %47,287 13.9 %51,644 14.6 %47,100 13.3 %
Residential mortgage-backed securities28,547 8.7 %30,469 9.3 %31,875 9.4 %33,454 9.5 %30,435 8.6 %
Asset-backed securities14,542 4.4 %14,838 4.5 %16,324 4.8 %17,355 4.9 %17,119 4.8 %
Municipals13,053 4.0 %13,871 4.3 %14,611 4.3 %14,958 4.2 %13,722 3.9 %
Commercial mortgage-backed securities10,447 3.2 %10,438 3.2 %11,273 3.3 %11,771 3.3 %11,910 3.4 %
Fixed Maturity Securities Available-For-Sale$327,820 100.0 %$326,685 100.0 %$340,005 100.0 %$353,809 100.0 %$354,809 100.0 %
NAICNRSRO
DESIGNATIONRATING
1Aaa / Aa / A$230,708 70.4 %$235,650 72.1 %$243,645 71.7 %$255,171 72.1 %$250,013 70.5 %
2Baa81,425 24.8 %76,239 23.3 %80,714 23.7 %82,519 23.3 %87,702 24.7 %
3Ba11,652 3.6 %10,999 3.4 %11,250 3.3 %11,710 3.3 %12,812 3.6 %
4B3,337 1.0 %3,200 1.0 %3,654 1.1 %3,672 1.1 %3,702 1.1 %
5Caa and lower693 0.2 %564 0.2 %640 0.2 %721 0.2 %503 0.1 %
6In or near default5 — %33 — %102 — %16 — %77 — %
Fixed Maturity Securities Available-For-Sale (8)$327,820 100.0 %$326,685 100.0 %$340,005 100.0 %$353,809 100.0 %$354,809 100.0 %
UNREALIZED GAINS AND LOSSES AGING SCHEDULE
FIXED MATURITY SECURITIES AVAILABLE-FOR-SALE
December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020
Unaudited (In millions, except ratios)Amount% of TotalAmount% of TotalAmount% of TotalAmount% of TotalAmount% of Total
Less than 20%$1,370 83.2 %$5,301 68.3 %$2,539 80.1 %$1,728 81.7 %$1,294 89.9 %
20% or more for less than six months116 7.0 %2,371 30.6 %574 18.1 %194 9.2 %35 2.4 %
20% or more for six months or greater161 9.8 %85 1.1 %57 1.8 %192 9.1 %111 7.7 %
Gross Unrealized Losses1,647 100.0 %7,757 100.0 %3,170 100.0 %2,114 100.0 %1,440 100.0 %
Gross Unrealized Gains31,812 32,005 40,479 42,902 45,519 
Net Unrealized Gains (Losses)$30,165 $24,248 $37,309 $40,788 $44,079 
See footnotes on Page 34.

32
INVESTMENTS
SUMMARY OF MORTGAGE LOANS
Unaudited (In millions)December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020
          
Commercial mortgage loans$49,624 $50,077 $51,043 $51,448 $52,434 
Agricultural mortgage loans16,695 16,788 17,167 17,402 18,128 
Residential mortgage loans14,504 14,943 15,235 14,551 13,947 
Mortgage loans held-for-sale59 — — — — 
Mortgage Loans80,882 81,808 83,445 83,401 84,509 
Valuation allowances(353)(464)(555)(520)(590)
Mortgage Loans, net$80,529 $81,344 $82,890 $82,881 $83,919 
SUMMARY OF COMMERCIAL MORTGAGE LOANS
BY REGION AND PROPERTY TYPE
 
December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020
Unaudited (In millions, except ratios)Amount% of TotalAmount% of TotalAmount% of TotalAmount% of TotalAmount% of Total
Non-U.S.$10,093 20.3 %$9,424 18.8 %$9,542 18.7 %$9,828 19.1 %$10,581 20.2 %
Pacific10,169 20.5 %10,183 20.3 %10,275 20.1 %10,374 20.2 %10,235 19.5 %
Middle Atlantic8,302 16.7 %7,967 15.9 %8,257 16.2 %8,234 16.0 %8,233 15.7 %
South Atlantic6,487 13.1 %6,461 12.9 %6,513 12.8 %6,661 13.0 %7,217 13.8 %
West South Central4,255 8.6 %3,970 7.9 %3,945 7.7 %3,973 7.7 %3,887 7.4 %
East North Central3,066 6.2 %2,183 4.4 %2,443 4.8 %2,518 4.9 %2,494 4.8 %
New England1,433 2.9 %1,670 3.3 %1,719 3.4 %2,019 3.9 %2,126 4.0 %
Mountain1,602 3.2 %1,755 3.5 %1,755 3.4 %1,753 3.4 %1,777 3.4 %
East South Central502 1.0 %483 1.0 %482 1.0 %499 1.0 %700 1.3 %
West North Central607 1.2 %635 1.3 %633 1.2 %635 1.2 %609 1.2 %
Multi-Region and Other3,108 6.3 %5,346 10.7 %5,479 10.7 %4,954 9.6 %4,575 8.7 %
Total$49,624 100.0 %$50,077 100.0 %$51,043 100.0 %$51,448 100.0 %$52,434 100.0 %
Office$22,925 46.2 %$22,857 45.6 %$23,359 45.8 %$23,657 46.0 %$23,928 45.6 %
Retail9,052 18.2 %8,842 17.7 %8,906 17.4 %8,903 17.3 %8,911 17.0 %
Apartment8,212 16.6 %8,869 17.7 %8,639 16.9 %8,651 16.8 %8,764 16.7 %
Industrial3,985 8.0 %4,101 8.2 %4,431 8.7 %4,770 9.3 %5,365 10.2 %
Hotel3,471 7.0 %3,328 6.6 %3,333 6.5 %3,361 6.5 %3,377 6.5 %
Other1,979 4.0 %2,080 4.2 %2,375 4.7 %2,106 4.1 %2,089 4.0 %
Total$49,624 100.0 %$50,077 100.0 %$51,043 100.0 %$51,448 100.0 %$52,434 100.0 %

33
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 $32 million, ($78) million, $114 million, $36 million and $68 million for the three months ended December 31, 2019, March 31, 2020, June 30, 2020, September 30, 2020 and December 31, 2020, respectively, and $184 million and $140 million for the year ended December 31, 2019 and December 31, 2020, 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.
December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020
Fixed maturity securities available-for-sale$327,820 $326,685 $340,005 $353,809 $354,809 
Contractholder-directed equity securities and fair value option securities13,102 11,145 11,911 12,276 13,319 
Total fixed maturity securities340,922 337,830 351,916 366,085 368,128 
Less: Contractholder-directed equity securities11,852 9,914 10,548 10,865 11,708 
Less: Effects of consolidating under GAAP certain VIEs that are treated as CSEs3 3 3 — — 
Fixed maturity securities$329,067 $327,913 $341,365 $355,220 $356,420 
(5)Ending carrying value excludes the effects of consolidating under GAAP certain VIEs that are treated as CSEs of $3 million at June 30, 2020, September 30, 2020 and December 31, 2020, and less than $1 million for each of the other periods presented.
(6)Adjusted net investment income reflects the adjustments as presented on Page 5.
(7)Investment portfolio gains (losses) and Derivative gains (losses) reflect the non-GAAP adjustments as presented below:
For the Three Months EndedFor the Year Ended
December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020December 31, 2019December 31, 2020
Net investment gains (losses) $207 $(288)$231 $(20)$(33)$444 $(110)
Less: Operating joint venture adjustments— — — — (1)— (1)
Less: Change in estimated fair value of other limited partnership interests and real estate joint ventures(1)1 (13)3 5 (14)(4)
Less: Non-investment portfolio gains (losses)(180)24 2 (165)(104)(195)(243)
Less: Divested businesses— — — 18 — — 18 
Investment portfolio gains (losses) $388 $(313)$242 $124 $67 $653 $120 
For the Three Months EndedFor the Year Ended
December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020December 31, 2019December 31, 2020
Net derivative gains (losses) $(1,465)$4,201 $(710)$(581)$(1,561)$628 $1,349 
Less: Investment hedge adjustments125 138 188 229 260 469 815 
Less: Settlement of foreign currency earnings hedges(2)— — — — (9)— 
Less: PAB hedge adjustments(5)(5)(2)(1)(1)(19)(9)
Derivative gains (losses) $(1,583)$4,068 $(896)$(809)$(1,820)$187 $543 
(8)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.
34
imagk061.jpg
Appendix





APPENDIX
METLIFE
RECONCILIATION DETAIL
For the Three Months EndedFor the Year Ended
Unaudited (In millions)December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020December 31, 2019December 31, 2020
Reconciliation to Adjusted Earnings Available to Common Shareholders
Net income (loss) available to MetLife, Inc.'s common shareholders$536 $4,366 $68 $633 $124 $5,721 $5,191 
Add: Preferred stock dividends57 32 77 59 34 178 202 
Add: Preferred stock redemption premium— — — 14 — — 14 
Add: Net Income (loss) attributable to noncontrolling interests(5)3 5 3 — 10 11 
Net income (loss) 588 4,401 150 709 158 $5,909 $5,418 
Less: adjustments from net income (loss) to adjusted earnings:
Net investment gains (losses)207 (288)231 (20)(33)444 (110)
Net derivative gains (losses)(1,465)4,201 (710)(581)(1,561)628 1,349 
Premiums - Divested businesses
36 32 20 — — 71 52 
Universal life and investment-type product policy fees
Unearned revenue adjustments18 18 5 2 8 97 33 
GMIB fees26 26 25 26 25 108 102 
Divested businesses1 2 1 — — 3 3 
Net investment income
Investment hedge adjustments(125)(138)(188)(229)(260)(469)(815)
Operating joint venture adjustments— — — — 1 — 1 
Unit-linked contract income228 (1,140)818 262 628 1,475 568 
Securitization entities income— — — — — — — 
Certain partnership distributions(5)(4)(1)— (6)(15)(11)
Divested businesses24 22 14 8 2 47 46 
Other revenues
Settlement of foreign currency earnings hedges2 — — — — 9 — 
TSA fees40 42 39 39 39 246 159 
Divested businesses2 — — — — 2 — 
Policyholder benefits and claims and policyholder dividends
PBC hedge adjustments(10)(9)(9)(9)(10)(19)(37)
PDO adjustments— — — — — — — 
Inflation and pass-through adjustments6 (48)(106)37 (53)(244)(170)
GMIB costs(106)141 (90)(231)(180)(154)(360)
Market value adjustments(8)(11)(21)(21)(17)4 (70)
Divested businesses(33)(24)(18)(13)— (67)(55)
Interest credited to policyholder account balances
PAB hedge adjustments5 5 2 1 1 19 9 
Unit-linked contract costs(240)1,138 (796)(266)(612)(1,436)(536)
Divested businesses(10)(5)(7)(2)— (18)(14)
Capitalization of DAC - Divested businesses
9 3 2 — — 20 5 
Amortization of DAC and VOBA
Related to NIGL and NDGL(106)(30)6 (64)(65)(116)(153)
Related to GMIB fees and GMIB costs1 (13)5 (7)11 11 (4)
Related to market value adjustments— — — — — — — 
Divested businesses(2)(6)(3)— — (4)(9)
Amortization of negative VOBA
Related to market value adjustments— — — — — — — 
Divested businesses— — — — — — — 
Interest expense on debt
Securitization entities debt expense— — — — — — — 
Divested businesses— — — — — — — 
Other expenses
Noncontrolling interests(5)3 7 4 2 15 16 
Regulatory implementation costs(3)(2)— (6)(12)(18)(20)
Acquisition, integration and other costs(7)(6)— (7)(29)(44)(42)
TSA fees(40)(42)(39)(39)(39)(246)(159)
Divested businesses(116)(19)(23)(7)(9)(158)(58)
Goodwill impairment— — — — — — — 
Provision for income tax (expense) benefit373 (928)151 195 455 (227)(127)
Adjusted earnings1,891 1,481 835 1,637 1,872 5,945 5,825 
Less: Preferred stock dividends57 32 77 59 34 178 202 
Adjusted earnings available to common shareholders$1,834 $1,449 $758 $1,578 $1,838 $5,767 $5,623 
A-1
APPENDIX
METLIFE
NOTABLE ITEMS (1)
METLIFE TOTAL
For the Three Months EndedFor the Year Ended
Unaudited (In millions)December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020December 31, 2019December 31, 2020
Actuarial assumption review and other insurance adjustments$— $— $— $(203)$— $(160)$(203)
Expense initiative costs(119)— — — — (332)— 
Interest on tax adjustments
64 — — — — 64 — 
Tax adjustments475 — — — — 475 — 
Total notable items$420 $— $— $(203)$— $47 $(203)
ASIA
  For the Three Months EndedFor the Year Ended
Unaudited (In millions)December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020December 31, 2019December 31, 2020
Actuarial assumption review and other insurance adjustments
$— $— $— $(28)$— $(19)$(28)
Total notable items
$— $— $— $(28)$— $(19)$(28)
LATIN AMERICA
  
For the Three Months EndedFor the Year Ended
Unaudited (In millions)
December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020December 31, 2019December 31, 2020
Actuarial assumption review and other insurance adjustments
$— $— $— $(9)$— $10 $(9)
Total notable items
$— $— $— $(9)$— $10 $(9)
EMEA
  
For the Three Months EndedFor the Year Ended
Unaudited (In millions)
December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020December 31, 2019December 31, 2020
Actuarial assumption review and other insurance adjustments
$— $— $— $(31)$— $(13)$(31)
Total notable items
$— $— $— $(31)$— $(13)$(31)
METLIFE HOLDINGS
  
For the Three Months EndedFor the Year Ended
Unaudited (In millions)
December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020December 31, 2019December 31, 2020
Actuarial assumption review and other insurance adjustments
$— $— $— $(135)$— $(138)$(135)
Total notable items
$— $— $— $(135)$— $(138)$(135)
CORPORATE & OTHER
  
For the Three Months EndedFor the Year Ended
Unaudited (In millions)
December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020December 31, 2019December 31, 2020
Expense initiative costs(119)— — — — (332)— 
Interest on tax adjustments64 — — — — 64 — 
Tax adjustments
475 — — — — 475 — 
Total notable items
$420 $— $— $— $— $207 $— 
(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)December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020
Total MetLife, Inc.'s stockholders' equity$66,144 $70,221 $75,693 $73,316 $74,558 
Less: Preferred stock
3,340 4,312 4,312 4,312 4,312 
MetLife, Inc.'s common stockholders' equity 62,804 65,909 71,381 69,004 70,246 
Less: Net unrealized investment gains (losses), net of income tax
19,981 20,369 25,913 22,869 23,730 
  Defined benefit plans adjustment, net of income tax(2,002)(1,985)(1,968)(1,954)(1,863)
Total MetLife, Inc.'s common stockholders' equity, excluding AOCI other than FCTA$44,825 $47,525 $47,436 $48,089 $48,379 
Less: Goodwill, net of income tax
8,986 8,828 8,910 9,021 10,090 
  VODA and VOCRA, net of income tax
268 276 264 253 844 
Total MetLife, Inc.'s tangible common stockholders' equity$35,571 $38,421 $38,262 $38,815 $37,445 
Unaudited (In millions)December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020
Total MetLife, Inc.'s common stockholders' equity, excluding AOCI other than FCTA$44,825 $47,525 $47,436 $48,089 $48,379 
Less: Accumulated year-to-date total notable items (2)
47 — — (203)(203)
Total MetLife, Inc.'s common stockholders' equity, excluding total notable items (excludes AOCI other than FCTA) (2)$44,778 $47,525 $47,436 $48,292 $48,582 
Unaudited (In millions, except per share data)December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020
Book value per common share $68.62 $72.62 $78.65 $76.20 $78.67 
Less: Net unrealized investment gains (losses), net of income tax
21.84 22.45 28.55 25.26 26.58 
  Defined benefit plans adjustment, net of income tax
(2.19)(2.19)(2.17)(2.16)(2.09)
Book value per common share, excluding AOCI other than FCTA$48.97 $52.36 $52.27 $53.10 $54.18 
Less: Goodwill, net of income tax
9.82 9.73 9.82 9.96 11.29 
  VODA and VOCRA, net of income tax
0.29 0.30 0.29 0.28 0.95 
Book value per common share - tangible common stockholders' equity$38.86 $42.33 $42.16 $42.86 $41.94 
Common shares outstanding, end of period 915.3 907.6 907.6 905.6 892.9 
For the Three Months Ended (1)For the Year Ended
Unaudited (In millions, except ratios)December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020December 31, 2019December 31, 2020
Return on MetLife, Inc.'s:
Common stockholders' equity 3.4 %27.1 %0.4 %3.6 %0.7 %9.8 %7.6 %
Adjusted return on MetLife, Inc.'s:
Common stockholders' equity 11.5 %9.0 %4.4 %9.0 %10.6 %9.8 %8.3 %
Common stockholders' equity, excluding AOCI other than FCTA 16.4 %12.6 %6.4 %13.2 %15.2 %13.1 %11.9 %
Common stockholders' equity, excluding total notable items (excludes AOCI other than FCTA) (2)12.6 %12.6 %6.4 %14.9 %15.2 %13.0 %12.3 %
Tangible common stockholders' equity (3) 20.7 %15.8 %8.0 %16.5 %19.4 %16.8 %15.0 %
Average common stockholders' equity $63,916 $64,357 $68,645 $70,193 $69,625 $58,575 $67,869 
Average common stockholders' equity, excluding AOCI other than FCTA $44,742 $46,175 $47,481 $47,763 $48,234 $43,929 $47,251 
Average common stockholders' equity, excluding total notable items (excludes AOCI other than FCTA) (2)$44,905 $46,175 $47,481 $47,864 $48,437 $44,030 $47,332 
Average tangible common stockholders' equity
$35,498 $36,996 $38,342 $38,539 $38,130 $34,594 $37,703 
(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 return on tangible common stockholders' equity excludes the impact of amortization of VODA and VOCRA, net of income tax, for the three months ended December 31, 2019, March 31, 2020, June 30, 2020, September 30, 2020 and December 31, 2020 of $6 million, $8 million, $10 million, $7 million and $8 million, respectively, and for the year ended December 31, 2019 and 2020 of $34 million and $33 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)December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020
U.S. (1)$8,586 $6,189 $5,692 $6,833 $10,578 
ASIA 2,163 2,175 2,097 2,310 2,161 
LATIN AMERICA837 909 808 799 878 
EMEA 673 705 682 683 707 
METLIFE HOLDINGS (1)1,321 1,233 1,208 1,206 1,264 
CORPORATE & OTHER (1)87 96 86 75 112 
Adjusted premiums, fees and other revenues, on a constant currency basis$13,667 $11,307 $10,573 $11,906 $15,700 
Adjusted premiums, fees and other revenues$13,632 $11,216 $10,401 $11,820 $15,700 
ASIA (including operating joint ventures) (2), (3)$2,452 $2,462 $2,373 $2,605 $2,450 
 OTHER EXPENSES ON A CONSTANT CURRENCY BASIS
For the Three Months Ended
Unaudited (In millions)December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020
U.S. (1)$1,069 $1,066 $1,012 $1,026 $1,058 
ASIA 990 912 825 887 941 
LATIN AMERICA347 337 332 325 353 
EMEA373 337 340 341 344 
METLIFE HOLDINGS (1)282 228 239 231 244 
CORPORATE & OTHER (1)243 136 134 120 235 
Adjusted other expenses on a constant currency basis$3,304 $3,016 $2,882 $2,930 $3,175 
Adjusted other expenses$3,286 $2,981 $2,817 $2,899 $3,175 
ASIA (including operating joint ventures) (2), (3)$1,106 $1,011 $933 $990 $1,048 
 ADJUSTED EARNINGS AVAILABLE TO COMMON SHAREHOLDERS ON A CONSTANT CURRENCY BASIS
For the Three Months Ended
Unaudited (In millions)December 31, 2019March 31, 2020June 30, 2020September 30, 2020December 31, 2020
U.S. (1)$675 $780 $523 $900 $1,021 
ASIA 347 362 268 468 494 
LATIN AMERICA153 90 148 44 14 
EMEA 64 77 120 51 81 
METLIFE HOLDINGS (1)269 277 20 253 426 
CORPORATE & OTHER (1)322 (131)(289)(131)(198)
Adjusted earnings available to common shareholders on a constant currency basis$1,830 $1,455 $790 $1,585 $1,838 
Adjusted earnings available to common shareholders$1,834 $1,449 $758 $1,578 $1,838 
 (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 20 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.
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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 of our 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 other adjusted 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.

A-5
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).
A-6

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. Also, refer to the utilization of adjusted earnings and components of, or other financial measures based on, adjusted earnings mentioned above.
•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.
General account assets under management and related measures
GA AUM is used by MetLife to describe assets in its GA investment portfolio which are actively managed and stated at estimated fair value. GA AUM is comprised of GA total investments and cash and cash equivalents, excluding policy loans, contractholder-directed equity securities, fair value option securities and certain other invested assets, as substantially all of these assets are not actively managed in MetLife’s GA investment portfolio. Mortgage loans (including commercial, agricultural and residential) and real estate and real estate joint ventures included in GA AUM (at net asset value, net of deduction for encumbering debt) have been adjusted from carrying value to estimated fair value. At the segment level, intersegment balances (intercompany activity, primarily related to investments in subsidiaries, that eliminate at the MetLife consolidated level) are excluded from GA AUM.

GA AUM (at amortized cost) excludes the following adjustments: (i) unrealized gain (loss) on investments carried at estimated fair value and (ii) adjustments from carrying value to estimated fair value on mortgage loans (including commercial, agricultural and residential) and real estate and real estate joint ventures. GA AUM (at amortized cost) is presented net of related allowance for credit loss.
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.
A-7
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
A-8

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