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Published: 2021-08-04 00:00:00 ET
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EX-99.2 3 ex992qfsq221doc.htm EX-99.2 Document
Exhibit 99.2



 image0a45a.jpg
Second Quarter
Financial Supplement
June 30, 2021
2

METLIFE
TABLE OF CONTENTS
 
 
 
 
 
1
METLIFE
As used in this QFS, “MetLife," “we” and “our” refer to MetLife, Inc., a Delaware corporation incorporated in 1999, its subsidiaries and affiliates. In this QFS, MetLife presents certain measures of its performance that are not calculated in accordance with GAAP. We believe that these non-GAAP financial measures enhance the understanding for MetLife and its investors of MetLife's performance by highlighting the results of operations and the underlying profitability drivers of our business. See Appendix for definitions of non-GAAP financial measures and other financial disclosures.
GAAP INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months EndedFor the Year-to-Date Period Ended
Unaudited (In millions)June 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021June 30, 2020June 30, 2021
Revenues
Premiums$8,736 $9,935 $13,897 $10,327 $9,132 $18,202 $19,459 
Universal life and investment-type product policy fees1,299 1,497 1,376 1,391 1,422 2,730 2,813 
Net investment income4,087 4,729 5,240 5,314 5,280 7,148 10,594 
Other revenues456 455 499 631 664 895 1,295 
Net investment gains (losses)231 (20)(33)134 1,605 (57)1,739 
Net derivative gains (losses)(710)(581)(1,561)(2,235)421 3,491 (1,814)
Total revenues14,099 16,015 19,418 15,562 18,524 32,409 34,086 
Expenses
Policyholder benefits and claims8,667 10,000 13,772 10,523 9,405 17,689 19,928 
Interest credited to policyholder account balances1,962 1,416 1,756 1,351 1,515 2,042 2,866 
Policyholder dividends290 206 302 247 236 582 483 
Capitalization of DAC(671)(764)(804)(775)(642)(1,445)(1,417)
Amortization of DAC and VOBA560 1,066 746 590 537 1,348 1,127 
Amortization of negative VOBA(10)(15)(10)(9)(10)(20)(19)
Interest expense on debt232 229 230 228 228 454 456 
Other expenses2,872 2,954 3,262 3,116 2,768 5,919 5,884 
Total expenses13,902 15,092 19,254 15,271 14,037 26,569 29,308 
Income (loss) before provision for income tax197 923 164 291 4,487 5,840 4,778 
Provision for income tax expense (benefit)47 214 6 (72)1,075 1,289 1,003 
Net income (loss) 150 709 158 363 3,412 4,551 3,775 
Less: Net income (loss) attributable to noncontrolling interests5 3 — 5 5 8 10 
Net income (loss) attributable to MetLife, Inc.145 706 158 358 3,407 4,543 3,765 
Less: Preferred stock dividends77 59 34 68 35 109 103 
 Preferred stock redemption premium — 14 — — 6 — 6 
Net income (loss) available to MetLife, Inc.'s common shareholders$68 $633 $124 $290 $3,366 $4,434 $3,656 
Premiums, fees and other revenues$10,491 $11,887 $15,772 $12,349 $11,218 $21,827 $23,567 
2
METLIFE
CORPORATE OVERVIEW
For the Three Months Ended
Unaudited (In millions, except per share data)June 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021
Net income (loss) available to MetLife, Inc.'s common shareholders$68 $633 $124 $290 $3,366 
Adjustments from net income (loss) available to MetLife, Inc.'s common shareholders to adjusted earnings available to common shareholders:
Less: Net investment gains (losses) 231 (20)(33)134 1,605 
Less: Net derivative gains (losses)(710)(581)(1,561)(2,235)421 
Less: Goodwill impairment— — — — — 
Less: Other adjustments to net income (loss) (1)(357)(522)(575)(174)(247)
Less: Provision for income tax (expense) benefit 151 195 455 605 (491)
Add: Net income (loss) attributable to noncontrolling interests5 3 — 5 5 
Add: Preferred stock redemption premium— 14 — — 6 
Adjusted earnings available to common shareholders758 1,578 1,838 1,965 2,089 
Less: Total notable items (2)— (203)— — 66 
Adjusted earnings available to common shareholders, excluding total notable items (2)$758 $1,781 $1,838 $1,965 $2,023 
Net income (loss) available to MetLife, Inc.'s common shareholders per diluted common share$0.07 $0.69 $0.14 $0.33 $3.83 
Less: Net investment gains (losses)0.25 (0.02)(0.04)0.15 1.82 
Less: Net derivative gains (losses)(0.78)(0.64)(1.72)(2.51)0.48 
Less: Goodwill impairment— — — — — 
Less: Other adjustments to net income (loss)(0.39)(0.57)(0.63)(0.19)(0.27)
Less: Provision for income tax (expense) benefit0.17 0.21 0.50 0.69 (0.55)
Add: Net income (loss) attributable to noncontrolling interests0.01 — — 0.01 0.01 
Add: Preferred stock redemption premium— 0.02 — — 0.01 
Adjusted earnings available to common shareholders per diluted common share 0.83 1.73 2.03 2.20 2.37 
Less: Total notable items per diluted common share (2)— (0.22)— — 0.08 
Adjusted earnings available to common shareholders, excluding total notable items, per diluted common share (2), (3)$0.83 $1.95 $2.03 $2.20 $2.30 
For the Three Months Ended
Unaudited (In millions, except per share data)June 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021
Notable items impacting adjusted earnings available to common shareholders (2):
Actuarial assumption review and other insurance adjustments$— $(203)$— $— $— 
Litigation reserves and settlement costs— — — — 66 
Total notable items $— $(203)$— $— $66 
Notable items impacting adjusted earnings available to common shareholders per diluted common share (2):
Actuarial assumption review and other insurance adjustments$— $(0.22)$— $— $— 
Litigation reserves and settlement costs$— $— $— $— $0.08 
Total notable items $— $(0.22)$— $— $0.08 
For the Three Months Ended
Unaudited (In millions)June 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021
Weighted average common shares outstanding - diluted913.1 913.7 906.0 892.1 879.7 
(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)
UnauditedJune 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021
Book value per common share (1) $78.65 $76.20 $78.67 $70.08 $75.86 
Book value per common share, excluding AOCI other than FCTA (1) $52.27 $53.10 $54.18 $53.16 $56.38 
Book value per common share - tangible common stockholders' equity (1) $42.16 $42.86 $41.94 $41.34 $44.56 
For the Three Months Ended
UnauditedJune 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021
Return on MetLife, Inc.'s (2):
Common stockholders' equity 0.4 %3.6 %0.7 %1.8 %21.2 %
Adjusted return on MetLife, Inc.'s (2):
Common stockholders' equity 4.4 %9.0 %10.6 %11.9 %13.2 %
Common stockholders' equity, excluding AOCI other than FCTA 6.4 %13.2 %15.2 %16.5 %17.5 %
Common stockholders' equity, excluding total notable items (excludes AOCI other than FCTA) (3)6.4 %14.9 %15.2 %16.5 %17.0 %
Tangible common stockholders' equity8.0 %16.5 %19.4 %21.5 %22.6 %
For the Three Months Ended
Unaudited (In millions)June 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021
Common shares outstanding, beginning of period907.6 907.6 905.6 892.9 878.3 
Share repurchases — (2.1)(13.6)(18.6)(17.6)
Newly issued shares— 0.1 0.9 4.0 0.4 
Common shares outstanding, end of period 907.6 905.6 892.9 878.3 861.1 
Weighted average common shares outstanding - basic908.8 908.7 899.9 885.4 873.3 
Dilutive effect of the exercise or issuance of stock-based awards 4.3 5.0 6.1 6.7 6.4 
Weighted average common shares outstanding - diluted913.1 913.7 906.0 892.1 879.7 
MetLife Policyholder Trust Shares138.4 137.3 136.0 134.4 132.4 
(1) Calculated using common shares outstanding, end of period.
(2) Annualized using quarter-to-date results. See Page A-3 for further detail.
(3)Notable items reflect the unexpected impact of events that affect MetLife’s results, but that were unknown and that MetLife could not anticipate when it devised its business plan. Notable items also include certain items regardless of the extent anticipated in the business plan, to help investors have a better understanding of MetLife's results and to evaluate and forecast those results. Notable items can affect MetLife’s results either positively or negatively. See Page A-2 for further detail.

4
METLIFE
KEY ADJUSTED EARNINGS STATEMENT LINE ITEMS
For the Three Months EndedFor the Year-to-Date Period Ended
Unaudited (In millions)June 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021June 30, 2020June 30, 2021
Total revenues$14,099 $16,015 $19,418 $15,562 $18,524 $32,409 $34,086 
Less: Net investment gains (losses)231 (20)(33)134 1,605 (57)1,739 
Less: Net derivative gains (losses)(710)(581)(1,561)(2,235)421 3,491 (1,814)
Less: Adjustments related to net investment gains (losses) and net derivative gains (losses)5 2 8 — 12 23 12 
Less: Other adjustments to revenues:
GMIB fees
25 26 25 25 24 51 49 
Investment hedge adjustments
(188)(229)(260)(220)(212)(326)(432)
Operating joint venture adjustments
— — 1 — — — — 
Unit-linked contract income
818 262 628 207 378 (322)585 
Securitization entities income
— — — — — — — 
Certain partnership distributions
(1)— (6)(3)(3)(5)(6)
Settlement of foreign currency earnings hedges
— — — — — — — 
TSA fees
39 39 39 35 60 81 95 
Divested businesses
35 8 2 912 — 91 912 
Total adjusted revenues$13,845 $16,508 $20,575 $16,707 $16,239 $29,382 $32,946 
For the Three Months EndedFor the Year-to-Date Period Ended
Unaudited (In millions)June 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021June 30, 2020June 30, 2021
Net investment income$4,087 $4,729 $5,240 $5,314 $5,280 $7,148 $10,594 
Less: Adjustments to net investment income:
Investment hedge adjustments(188)(229)(260)(220)(212)(326)(432)
Operating joint venture adjustments— — 1 — — — — 
Unit-linked contract income818 262 628 207 378 (322)585 
Securitization entities income— — — — — — — 
Certain partnership distributions(1)— (6)(3)(3)(5)(6)
Divested businesses 14 8 2 36 — 36 36 
Adjusted net investment income$3,444 $4,688 $4,875 $5,294 $5,117 $7,765 $10,411 
For the Three Months EndedFor the Year-to-Date Period Ended
Unaudited (In millions)June 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021June 30, 2020June 30, 2021
Variable investment income (Included in net investment income above)$(555)$652 $778 $1,390 $1,202 $(204)$2,592 
For the Three Months EndedFor the Year-to-Date Period Ended
Unaudited (In millions)June 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021June 30, 2020June 30, 2021
Premiums, fees and other revenues$10,491 $11,887 $15,772 $12,349 $11,218 $21,827 $23,567 
Less: Adjustments to premiums, fees and other revenues:
Unearned revenue adjustments
5 2 8 — 12 23 12 
GMIB fees
25 26 25 25 24 51 49 
Settlement of foreign currency earnings hedges
— — — — — — — 
TSA fees
39 39 39 35 60 81 95 
Divested businesses
21 — — 876 — 55 876 
Adjusted premiums, fees and other revenues$10,401 $11,820 $15,700 $11,413 $11,122 $21,617 $22,535 
Adjusted premiums, fees and other revenues, on a constant currency basis$10,550 $11,879 $15,675 $11,374 $11,122 
5
METLIFE
KEY ADJUSTED EARNINGS STATEMENT LINE ITEMS (CONTINUED)
For the Three Months EndedFor the Year-to-Date Period Ended
Unaudited (In millions)June 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021June 30, 2020June 30, 2021
Total expenses$13,902 $15,092 $19,254 $15,271 $14,037 $26,569 $29,308 
Less: Adjustments related to net investment gains (losses) and net derivative gains (losses)(6)64 65 (3)9 24 6 
Less: Goodwill impairment— — — — — — — 
Less: Other adjustments to expenses:
PBC hedge adjustment
9 9 10 9 8 18 17 
Inflation and pass-through adjustments
106 (37)53 (78)(18)154 (96)
GMIB costs and amortization of DAC and VOBA related to GMIB fees and GMIB costs
85 238 169 115 58 (43)173 
Market value adjustments and amortization of DAC, VOBA and negative VOBA related to market value adjustments
21 21 17 23 16 32 39 
PAB hedge adjustments
(2)(1)(1)— (1)(7)(1)
Unit-linked contract costs
796 266 612 210 366 (342)576 
Securitization entities debt expense
— — — — — — — 
Noncontrolling interests(7)(4)(2)(6)(6)(10)(12)
Regulatory implementation costs
— 6 12 (3)6 2 3 
Acquisition, integration and other costs
— 7 29 4 4 6 8 
TSA fees
39 39 39 35 60 81 95 
Divested businesses
49 22 9 824 4 100 828 
Total adjusted expenses$12,812 $14,462 $18,242 $14,141 $13,531 $26,554 $27,672 
For the Three Months EndedFor the Year-to-Date Period Ended
Unaudited (In millions)June 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021June 30, 2020June 30, 2021
Capitalization of DAC $(671)$(764)$(804)$(775)$(642)$(1,445)$(1,417)
Less: Divested businesses(2)— — (89)— (5)(89)
Adjusted capitalization of DAC$(669)$(764)$(804)$(686)$(642)$(1,440)$(1,328)
For the Three Months EndedFor the Year-to-Date Period Ended
Unaudited (In millions)June 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021June 30, 2020June 30, 2021
Other expenses $2,872 $2,954 $3,262 $3,116 $2,768 $5,919 $5,884 
Less: Noncontrolling interests
(7)(4)(2)(6)(6)(10)(12)
Less: Regulatory implementation costs
— 6 12 (3)6 2 3 
Less: Acquisition, integration and other costs
— 7 29 4 4 6 8 
Less: TSA fees
39 39 39 35 60 81 95 
Less: Divested businesses
23 7 9 232 4 42 236 
Adjusted other expenses$2,817 $2,899 $3,175 $2,854 $2,700 $5,798 $5,554 
Adjusted other expenses on a constant currency basis$2,869 $2,916 $3,157 $2,835 $2,700 

6
METLIFE
EXPENSE DETAIL AND RATIOS
For the Three Months EndedFor the Year-to-Date Period Ended
Unaudited (In millions, except ratio data)June 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021June 30, 2020June 30, 2021
Other expenses$2,872 $2,954 $3,262 $3,116 $2,768 $5,919 $5,884 
Capitalization of DAC(671)(764)(804)(775)(642)(1,445)(1,417)
Other expenses, net of capitalization of DAC$2,201 $2,190 $2,458 $2,341 $2,126 $4,474 $4,467 
Premiums, fees and other revenues$10,491 $11,887 $15,772 $12,349 $11,218 $21,827 $23,567 
Expense ratio21.0 %18.4 %15.6 %19.0 %19.0 %20.5 %19.0 %
For the Three Months EndedFor the Year-to-Date Period Ended
Unaudited (In millions)June 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021June 30, 2020June 30, 2021
Adjusted other expenses by major category
Direct expenses$1,287 $1,288 $1,423 $1,259 $1,188 $2,631 $2,447 
Pension, postretirement and postemployment benefit costs37 37 52 25 43 76 68 
Premium taxes, other taxes, and licenses & fees176 194 201 149 169 369 318 
Commissions and other variable expenses1,317 1,380 1,499 1,421 1,300 2,722 2,721 
Adjusted other expenses
2,817 2,899 3,175 2,854 2,700 5,798 5,554 
Adjusted capitalization of DAC(669)(764)(804)(686)(642)(1,440)(1,328)
Adjusted other expenses, net of adjusted capitalization of DAC
2,148 2,135 2,371 2,168 2,058 4,358 4,226 
Less: Total notable items related to adjusted other expenses (1)— — — — (84)— (84)
Adjusted other expenses, net of adjusted capitalization of DAC, excluding total notable items related to adjusted other expenses (1)
$2,148 $2,135 $2,371 $2,168 $2,142 $4,358 $4,310 
For the Three Months EndedFor the Year-to-Date Period Ended
Unaudited (In millions, except ratio data)June 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021June 30, 2020June 30, 2021
Employee related costs$840 $865 $937 $897 $793 $1,706 $1,690 
Third party staffing costs300 306 357 302 333 643 635 
General and administrative expenses147 117 129 60 62 282 122 
Direct expenses1,287 1,288 1,423 1,259 1,188 2,631 2,447 
Less: Total notable items related to direct expenses (1)— — — — (84)— (84)
Direct expenses, excluding total notable items related to direct expenses (1)$1,287 $1,288 $1,423 $1,259 $1,272 $2,631 $2,531 
Adjusted other expenses, net of adjusted capitalization of DAC
$2,148 $2,135 $2,371 $2,168 $2,058 $4,358 $4,226 
Less: Total notable items related to adjusted other expenses (1)— — — — (84)— (84)
Adjusted other expenses, net of adjusted capitalization of DAC, excluding total notable items related to adjusted other expenses (1)
$2,148 $2,135 $2,371 $2,168 $2,142 $4,358 $4,310 
Adjusted premiums, fees and other revenues$10,401 $11,820 $15,700 $11,413 $11,122 $21,617 $22,535 
Less: PRT(6)487 4,163 — (14)(15)(14)
Adjusted premiums, fees and other revenues, excluding PRT$10,407 $11,333 $11,537 $11,413 $11,136 $21,632 $22,549 
Direct expense ratio 12.4 %10.9 %9.1 %11.0 %10.7 %12.2 %10.9 %
Direct expense ratio, excluding total notable items related to direct expenses and PRT (1)12.4 %11.4 %12.3 %11.0 %11.4 %12.2 %11.2 %
Adjusted expense ratio20.7 %18.1 %15.1 %19.0 %18.5 %20.2 %18.8 %
Adjusted expense ratio, excluding total notable items related to adjusted other expenses and PRT (1)20.6 %18.8 %20.6 %19.0 %19.2 %20.1 %19.1 %
(1)Notable items are related to “litigation reserves and settlement costs.” Notable items reflect the unexpected impact of events that affect MetLife’s results, but that were unknown and that MetLife could not anticipate when it devised its business plan. Notable items also include certain items regardless of the extent anticipated in the business plan, to help investors have a better understanding of MetLife's results and to evaluate and forecast those results. Notable items can affect MetLife’s results either positively or negatively. See Page A-2 for further detail.

7
METLIFE
CONSOLIDATED BALANCE SHEETS
Unaudited (In millions)June 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021
ASSETS
Investments:
Fixed maturity securities available-for-sale, at estimated fair value$340,005 $353,809 $354,809 $332,941 $340,695 
Equity securities, at estimated fair value1,105 1,111 1,079 1,063 1,001 
Contractholder-directed equity securities and fair value option securities, at estimated fair value 11,911 12,276 13,319 12,975 12,177 
Mortgage loans82,890 82,881 83,919 83,015 81,497 
Policy loans9,639 9,580 9,493 9,334 9,256 
Real estate and real estate joint ventures11,524 11,643 11,933 12,007 11,901 
Other limited partnership interests7,794 8,569 9,470 10,961 11,980 
Short-term investments, principally at estimated fair value5,345 3,832 3,904 4,781 3,759 
Other invested assets24,731 22,544 20,593 18,677 18,977 
Total investments494,944 506,245 508,519 485,754 491,243 
Cash and cash equivalents, principally at estimated fair value24,289 24,405 19,795 19,635 25,037 
Accrued investment income3,388 3,424 3,388 3,363 3,202 
Premiums, reinsurance and other receivables20,848 20,712 17,870 18,727 18,236 
Deferred policy acquisition costs and value of business acquired16,353 16,179 16,389 17,214 16,527 
Current income tax recoverable— — — 214 52 
Goodwill9,245 9,360 10,112 9,944 9,768 
Assets held-for-sale— — 7,418 6,599 7,590 
Other assets11,173 10,471 11,685 12,164 11,651 
Separate account assets187,343 189,696 199,970 196,200 189,947 
Total assets$767,583 $780,492 $795,146 $769,814 $773,253 
LIABILITIES AND EQUITY
Liabilities
Future policy benefits$196,522 $203,929 $206,656 $197,755 $199,376 
Policyholder account balances198,147 201,072 205,176 205,186 204,948 
Other policy-related balances16,870 16,883 17,101 18,045 17,527 
Policyholder dividends payable670 595 587 562 572 
Policyholder dividend obligation2,798 2,944 2,969 1,546 2,115 
Payables for collateral under securities loaned and other transactions34,133 34,772 29,475 28,694 30,620 
Short-term debt303 351 393 302 393 
Long-term debt 14,513 14,539 14,603 14,509 14,518 
Collateral financing arrangement968 924 845 833 818 
Junior subordinated debt securities3,151 3,152 3,153 3,153 3,154 
Current income tax payable928 638 129 — — 
Deferred income tax liability11,334 10,839 11,008 8,570 9,748 
Liabilities held-for-sale— — 4,650 3,865 6,844 
Other liabilities 23,963 26,589 23,614 24,457 23,250 
Separate account liabilities187,343 189,696 199,970 196,200 189,947 
Total liabilities691,643 706,923 720,329 703,677 703,830 
Equity
Preferred stock, at par value— — — — — 
Common stock, at par value12 12 12 12 12 
Additional paid-in capital33,728 33,744 33,812 33,910 33,440 
Retained earnings36,568 36,782 36,491 36,373 39,318 
Treasury stock, at cost(13,178)(13,258)(13,829)(14,828)(15,941)
Accumulated other comprehensive income (loss)18,563 16,036 18,072 10,397 12,309 
Total MetLife, Inc.'s stockholders' equity75,693 73,316 74,558 65,864 69,138 
Noncontrolling interests247 253 259 273 285 
Total equity75,940 73,569 74,817 66,137 69,423 
Total liabilities and equity$767,583 $780,492 $795,146 $769,814 $773,253 

8
METLIFE
SUMMARY OF ADJUSTED EARNINGS AVAILABLE TO COMMON SHAREHOLDERS 
  For the Three Months Ended
Unaudited (In millions)June 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021
Adjusted earnings before provision for income tax
U.S.
GROUP BENEFITS$319 $502 $490 $119 $315 
RETIREMENT AND INCOME SOLUTIONS240 618 663 872 826 
PROPERTY & CASUALTY (1)101 19 138 — — 
TOTAL U.S.$660 $1,139 $1,291 $991 $1,141 
ASIA361 662 694 868 741 
LATIN AMERICA188 63 17 53 131 
EMEA137 72 100 92 129 
METLIFE HOLDINGS19 314 533 776 672 
CORPORATE & OTHER(332)(204)(302)(214)(106)
Total adjusted earnings before provision for income tax
$1,033 $2,046 $2,333 $2,566 $2,708 
Provision for income tax expense (benefit)
U.S.
GROUP BENEFITS$71 $110 $107 $26 $67 
RETIREMENT AND INCOME SOLUTIONS48 128 137 181 172 
PROPERTY & CASUALTY (1)18 1 26 — — 
TOTAL U.S.$137 $239 $270 $207 $239 
ASIA105 197 200 245 221 
LATIN AMERICA56 24 3 13 34 
EMEA21 20 19 21 35 
METLIFE HOLDINGS(1)61 107 158 136 
CORPORATE & OTHER(120)(132)(138)(111)(81)
Total provision for income tax expense (benefit)
$198 $409 $461 $533 $584 
Adjusted earnings available to common shareholders
U.S.
GROUP BENEFITS$248 $392 $383 $93 $248 
RETIREMENT AND INCOME SOLUTIONS192 490 526 691 654 
PROPERTY & CASUALTY (1)83 18 112 — — 
TOTAL U.S.$523 $900 $1,021 $784 $902 
ASIA256 465 494 623 520 
LATIN AMERICA132 39 14 40 97 
EMEA116 52 81 71 94 
METLIFE HOLDINGS20 253 426 618 536 
CORPORATE & OTHER (2)(289)(131)(198)(171)(60)
Total adjusted earnings available to common shareholders (2)
$758 $1,578 $1,838 $1,965 $2,089 
(1)For the three months ended March 31, 2021, U.S. results exclude Property & Casualty, which was reported as divested business. MetLife subsequently completed the sale of the business and, therefore, Property & Casualty results are not reported for the three months ended June 30, 2021. See the Non-GAAP and Other Financial Disclosures section for further information on divested business.
(2)Includes impact of preferred stock dividends of $77 million, $59 million, $34 million, $68 million and $35 million for the three months ended June 30, 2020, September 30, 2020, December 31, 2020, March 31, 2021 and June 30, 2021, respectively.
9
METLIFE
ADJUSTED RETURN ON ALLOCATED EQUITY AND ALLOCATED TANGIBLE EQUITY (1), (2)
 
ADJUSTED RETURN ON ALLOCATED EQUITY
  For the Three Months Ended
Unaudited June 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021
U.S.
GROUP BENEFITS34.3%54.1%52.9%12.8%34.2%
RETIREMENT AND INCOME SOLUTIONS12.4%31.7%34.0%43.1%40.8%
PROPERTY & CASUALTY (3)16.7%3.6%22.5%——
TOTAL U.S.18.9%32.5%36.9%33.7%38.7%
ASIA7.2%13.0%13.8%17.0%14.2%
LATIN AMERICA17.2%5.1%1.8%5.8%14.1%
EMEA16.3%7.3%11.3%10.0%13.2%
METLIFE HOLDINGS0.8%10.2%17.2%23.7%20.6%
ADJUSTED RETURN ON ALLOCATED TANGIBLE EQUITY (4)
  For the Three Months Ended
Unaudited June 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021
U.S.
21.8%37.3%42.4%39.3%45.1%
ASIA
10.9%19.6%20.9%25.4%21.3%
LATIN AMERICA
28.1%8.3%3.0%9.1%22.1%
EMEA
28.6%12.9%20.1%17.1%22.6%
METLIFE HOLDINGS
1.1%11.4%19.1%26.0%22.5%
(1) Annualized using quarter-to-date results.
(2) Allocated equity and allocated tangible equity are presented below:
  ALLOCATED EQUITYALLOCATED TANGIBLE EQUITY
Unaudited (In millions)2020202120202021
U.S.
GROUP BENEFITS
$2,896 $2,899 
RETIREMENT AND INCOME SOLUTIONS
6,187 6,418 
PROPERTY & CASUALTY (3)1,991 — 
TOTAL U.S.
$11,074 $9,317 $9,652 $8,116 
ASIA
$14,313 $14,648 $9,490 $9,824 
LATIN AMERICA
$3,074 $2,757 $1,876 $1,757 
EMEA
$2,855 $2,844 $1,649 $1,683 
METLIFE HOLDINGS
$9,893 $10,428 $9,022 $9,581 
(3) For the three months ended March 31, 2021, U.S. results exclude Property & Casualty, which was reported as divested business. MetLife subsequently completed the sale of the business and, therefore, Property & Casualty results are not reported for the three months ended June 30, 2021. See the Non-GAAP and Other Financial Disclosures section for further information on divested business.
(4) Adjusted earnings available to common shareholders used to calculate the adjusted return on allocated tangible equity excludes the impact of amortization on VODA and VOCRA, net of income tax, as presented below:
For the Three Months Ended
Unaudited (In millions)
June 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021
U.S.
$2$1$1$14$13
ASIA
$2$1$1$1$2
LATIN AMERICA
$—$—$—$—$—
EMEA
$2$1$2$1$1
METLIFE HOLDINGS
$4$4$4$4$4

10
U.S. (1)
STATEMENTS OF ADJUSTED EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
  For the Three Months EndedFor the Year-to-Date Period Ended
Unaudited (In millions)June 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021June 30, 2020June 30, 2021
Adjusted revenues
Premiums$5,184 $6,333 $10,074 $5,699 $5,474 $10,858 $11,173 
Universal life and investment-type product policy fees268 263 264 297 282 543 579 
Net investment income1,425 1,827 1,885 2,010 1,998 3,191 4,008 
Other revenues240 237 240 396 380 480 776 
Total adjusted revenues7,117 8,660 12,463 8,402 8,134 15,072 16,536 
Adjusted expenses
Policyholder benefits and claims and policyholder dividends5,038 6,108 9,728 6,142 5,739 10,473 11,881 
Interest credited to policyholder account balances412 381 371 359 359 870 718 
Capitalization of DAC(122)(119)(100)(18)(13)(234)(31)
Amortization of DAC and VOBA115 123 114 16 8 234 24 
Amortization of negative VOBA— — — — — — — 
Interest expense on debt2 2 1 1 2 4 3 
Other expenses1,012 1,026 1,058 911 898 2,078 1,809 
Total adjusted expenses6,457 7,521 11,172 7,411 6,993 13,425 14,404 
Adjusted earnings before provision for income tax660 1,139 1,291 991 1,141 1,647 2,132 
Provision for income tax expense (benefit)137 239 270 207 239 344 446 
Adjusted earnings523 900 1,021 784 902 1,303 1,686 
Preferred stock dividends— — — — — — — 
Adjusted earnings available to common shareholders$523 $900 $1,021 $784 $902 $1,303 $1,686 
Adjusted premiums, fees and other revenues$5,692 $6,833 $10,578 $6,392 $6,136 $11,881 $12,528 
Less: PRT
(6)487 4,163 — (14)(15)(14)
Adjusted premiums, fees and other revenues, excluding PRT$5,698 $6,346 $6,415 $6,392 $6,150 $11,896 $12,542 
(1)For the three months ended March 31, 2021, U.S. results exclude Property & Casualty, which was reported as divested business. MetLife subsequently completed the sale of the business and, therefore, Property & Casualty results are not reported for the three months ended June 30, 2021. U.S. results prior to the three months ended March 31, 2021 include Property & Casualty. See page 9 for further information on adjusted earnings available to common shareholders related to Property & Casualty and see the Non-GAAP and Other Financial Disclosures section for further information on divested business.
11
U.S.
GROUP BENEFITS
STATEMENTS OF ADJUSTED EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
For the Three Months EndedFor the Year-to-Date Period Ended
Unaudited (In millions)June 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021June 30, 2020June 30, 2021
Adjusted revenues
Premiums$3,989 $4,545 $4,659 $5,106 $5,085 $8,476 $10,191 
Universal life and investment-type product policy fees200 200 205 212 207 404 419 
Net investment income277 290 283 279 295 554 574 
Other revenues157 156 156 318 307 317 625 
Total adjusted revenues4,623 5,191 5,303 5,915 5,894 9,751 11,809 
Adjusted expenses
Policyholder benefits and claims and policyholder dividends3,602 3,965 4,061 4,970 4,761 7,575 9,731 
Interest credited to policyholder account balances31 31 33 32 30 65 62 
Capitalization of DAC(6)(5)(5)(5)(5)(13)(10)
Amortization of DAC and VOBA7 12 8 5 8 14 13 
Amortization of negative VOBA— — — — — — — 
Interest expense on debt— 1 — — — — — 
Other expenses670 685 716 794 785 1,390 1,579 
Total adjusted expenses4,304 4,689 4,813 5,796 5,579 9,031 11,375 
Adjusted earnings before provision for income tax319 502 490 119 315 720 434 
Provision for income tax expense (benefit)71 110 107 26 67 160 93 
Adjusted earnings248 392 383 93 248 560 341 
Preferred stock dividends— — — — — — — 
Adjusted earnings available to common shareholders$248 $392 $383 $93 $248 $560 $341 
Adjusted premiums, fees and other revenues$4,346 $4,901 $5,020 $5,636 $5,599 $9,197 $11,235 
12
U.S.
RETIREMENT AND INCOME SOLUTIONS
STATEMENTS OF ADJUSTED EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
For the Three Months EndedFor the Year-to-Date Period Ended
Unaudited (In millions)June 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021June 30, 2020June 30, 2021
Adjusted revenues
Premiums$367 $885 $4,520 $593 $389 $642 $982 
Universal life and investment-type product policy fees68 63 59 85 75 139 160 
Net investment income1,126 1,484 1,546 1,731 1,703 2,570 3,434 
Other revenues76 76 86 78 73 147 151 
Total adjusted revenues1,637 2,508 6,211 2,487 2,240 3,498 4,727 
Adjusted expenses
Policyholder benefits and claims and policyholder dividends909 1,428 5,086 1,172 978 1,779 2,150 
Interest credited to policyholder account balances381 350 338 327 329 805 656 
Capitalization of DAC(12)(8)(2)(13)(8)(20)(21)
Amortization of DAC and VOBA5 7 5 11 — 13 11 
Amortization of negative VOBA— — — — — — — 
Interest expense on debt2 1 1 1 2 4 3 
Other expenses112 112 120 117 113 225 230 
Total adjusted expenses1,397 1,890 5,548 1,615 1,414 2,806 3,029 
Adjusted earnings before provision for income tax240 618 663 872 826 692 1,698 
Provision for income tax expense (benefit)48 128 137 181 172 141 353 
Adjusted earnings192 490 526 691 654 551 1,345 
Preferred stock dividends— — — — — — — 
Adjusted earnings available to common shareholders$192 $490 $526 $691 $654 $551 $1,345 
Adjusted premiums, fees and other revenues$511 $1,024 $4,665 $756 $537 $928 $1,293 
Less: PRT
(6)487 4,163 — (14)(15)(14)
Adjusted premiums, fees and other revenues, excluding PRT$517 $537 $502 $756 $551 $943 $1,307 
13
U.S.
GROUP BENEFITS
FUTURE POLICY BENEFITS AND POLICYHOLDER ACCOUNT BALANCES
  For the Three Months Ended
Unaudited (In millions)June 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021
Balance, beginning of period$18,935 $19,665 $20,024 $19,932 $19,694 
Premiums and deposits5,220 5,298 5,299 6,068 6,014 
Surrenders and withdrawals(537)(565)(571)(642)(700)
Benefit payments(3,655)(4,078)(4,147)(4,970)(4,795)
Net flows1,028 655 581 456 519 
Net transfers from (to) separate accounts5 6 4 2 2 
Interest130 131 134 123 123 
Policy charges(149)(145)(143)(149)(147)
Other(284)(288)(668)(670)(408)
Balance, end of period$19,665 $20,024 $19,932 $19,694 $19,783 
SEPARATE ACCOUNT LIABILITIES
  For the Three Months Ended
Unaudited (In millions)June 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021
Balance, beginning of period$793 $945 $1,003 $1,123 $1,161 
Premiums and deposits64 64 63 68 67 
Surrenders and withdrawals(12)(17)(13)(18)(18)
Benefit payments(1)(4)(2)(1)(2)
Net flows51 43 48 49 47 
Investment performance160 77 131 49 85 
Net transfers from (to) general account(5)(6)(4)(2)(2)
Policy charges(55)(56)(55)(57)(58)
Other1 — — (1)— 
Balance, end of period$945 $1,003 $1,123 $1,161 $1,233 
14
U.S.
GROUP BENEFITS
OTHER EXPENSES BY MAJOR CATEGORY
  For the Three Months Ended
Unaudited (In millions)June 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021
Direct and allocated expenses$326 $332 $356 $405 $392 
Pension, postretirement and postemployment benefit costs4 4 4 (1)7 
Premium taxes, other taxes, and licenses & fees89 93 87 70 83 
Commissions and other variable expenses251 256 269 320 303 
Adjusted other expenses$670 $685 $716 $794 $785 
OTHER STATISTICAL INFORMATION (1)
  For the Three Months Ended
Unaudited (In millions, except ratios)June 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021
Group Life (2)
Adjusted premiums, fees and other revenues$1,943 $1,915 $1,915 $2,088 $2,078 
Mortality ratio95.9 %89.6 %96.3 %106.3 %94.3 %
Group Non-Medical Health (3)
Adjusted premiums, fees and other revenues$1,376 $1,977 $2,079 $2,371 $2,341 
Interest adjusted benefit ratio (4)58.5 %67.4 %61.7 %71.1 %73.8 %
(1) Results are derived from insurance and non-administrative services-only contracts.
(2) Excludes certain experience-rated contracts and includes accidental death and dismemberment.
(3) Includes dental, group and individual disability, accident & health, critical illness, vision and other health.
(4) Reflects actual claims experience and excludes the impact of interest credited on future policyholder benefits. The product within Group Non-Medical Health with interest credited on future policyholder benefits is disability.

15
U.S.
RETIREMENT AND INCOME SOLUTIONS
 
FUTURE POLICY BENEFITS AND POLICYHOLDER ACCOUNT BALANCES
  For the Three Months Ended
Unaudited (In millions)June 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021
Balance, beginning of period$124,174 $129,030 $132,376 $136,703 $134,056 
Premiums and deposits22,473 18,957 20,961 22,008 20,382 
Surrenders and withdrawals(20,125)(18,536)(17,176)(19,926)(19,759)
Benefit payments(1,176)(1,206)(1,182)(1,317)(1,344)
Net flows1,172 (785)2,603 765 (721)
Net transfers from (to) separate accounts— — 17 — 8 
Interest988 953 946 946 938 
Policy charges(42)(42)(41)(10)(44)
Other2,738 3,220 802 (4,348)2,287 
Balance, end of period$129,030 $132,376 $136,703 $134,056 $136,524 
SEPARATE ACCOUNT LIABILITIES
  For the Three Months Ended
Unaudited (In millions)June 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021
Balance, beginning of period$76,838 $81,486 $83,887 $84,193 $82,183 
Premiums and deposits2,167 1,709 2,138 1,393 1,443 
Surrenders and withdrawals (1)(2,319)(2,127)(2,971)(2,390)(2,329)
Benefit payments(24)(25)(24)(22)(64)
Net flows(176)(443)(857)(1,019)(950)
Investment performance3,618 1,447 2,069 (1,302)2,167 
Net transfers from (to) general account— — (17)— (8)
Policy charges(83)(83)(94)(84)(83)
Other1,289 1,480 (795)395 (877)
Balance, end of period$81,486 $83,887 $84,193 $82,183 $82,432 
SYNTHETIC GICS (2)
For the Three Months Ended
Unaudited (In millions)June 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021
Balance, beginning of period$33,588 $34,921 $36,330 $38,646 $38,514 
Premiums and deposits (1)1,424 1,598 2,704 482 314 
Surrenders and withdrawals(318)(417)(621)(829)(1,251)
Net flows 1,106 1,181 2,083 (347)(937)
Interest227 228 233 215 196 
Balance, end of period$34,921 $36,330 $38,646 $38,514 $37,773 
LONGEVITY REINSURANCE (3)
Unaudited (In millions)June 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021
Balance, end of period$317 $896 $3,894 $8,833 $9,502 
(1)Includes $0, $616 million, $360 million, $86 million and $0 of transfers from separate account GICs to synthetic GICs at June 30, 2020, September 30, 2020, December 31,2020, March 31, 2021 and June 30, 2021, respectively. These transfers are reported as surrenders and withdrawals on the separate account liabilities table and premiums and deposits on the synthetic GICs table.
(2)A synthetic GIC is a contract that simulates the performance of a traditional GIC through the use of financial instruments and is reported as a derivative. A key difference between a synthetic GIC and a traditional GIC is that the contractholder owns the assets underlying the synthetic GIC. The assets and corresponding contractholder account balance are not on MetLife, Inc.'s consolidated balance sheet, as they are for a traditional GIC. The contractholder account balance is reported at contract value in the table above.
(3)The contract value presented represents notional amounts based on the present value of fixed annuity premiums related to longevity reinsurance contracts associated with the UK pension risk transfer market.

16
U.S.
RETIREMENT AND INCOME SOLUTIONS
OTHER EXPENSES BY MAJOR CATEGORY
For the Three Months Ended
Unaudited (In millions)June 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021
Direct and allocated expenses$56 $57 $60 $61 $58 
Pension, postretirement and postemployment benefit costs1 1 2 — 2 
Premium taxes, other taxes, and licenses & fees4 6 10 4 11 
Commissions and other variable expenses51 48 48 52 42 
Adjusted other expenses$112 $112 $120 $117 $113 
SPREAD
For the Three Months Ended
UnauditedJune 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021
Investment income yield excluding variable investment income yield4.02 %3.99 %3.98 %3.77 %3.82 %
Variable investment income yield(0.60)%0.58 %0.73 %1.46 %1.26 %
Total investment income yield3.42 %4.57 %4.71 %5.23 %5.08 %
Average crediting rate3.17 %3.01 %2.94 %2.89 %2.84 %
Annualized general account spread0.25 %1.56 %1.77 %2.34 %2.24 %
Annualized general account spread excluding variable investment income yield0.85 %0.98 %1.04 %0.88 %0.98 %

17
ASIA
STATEMENTS OF ADJUSTED EARNINGS AVAILABLE TO COMMON SHAREHOLDERS 
For the Three Months EndedFor the Year-to-Date Period Ended
Unaudited (In millions)June 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021June 30, 2020June 30, 2021
Adjusted revenues
Premiums$1,584 $1,654 $1,697 $1,685 $1,582 $3,220 $3,267 
Universal life and investment-type product policy fees420 595 447 458 436 850 894 
Net investment income767 1,088 1,146 1,264 1,158 1,704 2,422 
Other revenues14 16 17 18 19 28 37 
Total adjusted revenues2,785 3,353 3,307 3,425 3,195 5,802 6,620 
Adjusted expenses
Policyholder benefits and claims and policyholder dividends1,255 1,291 1,346 1,297 1,233 2,576 2,530 
Interest credited to policyholder account balances447 470 472 489 496 892 985 
Capitalization of DAC(351)(431)(449)(435)(395)(772)(830)
Amortization of DAC and VOBA284 506 310 314 296 599 610 
Amortization of negative VOBA(8)(14)(7)(7)(8)(16)(15)
Interest expense on debt— — — — — — — 
Other expenses797 869 941 899 832 1,671 1,731 
Total adjusted expenses2,424 2,691 2,613 2,557 2,454 4,950 5,011 
Adjusted earnings before provision for income tax361 662 694 868 741 852 1,609 
Provision for income tax expense (benefit)105 197 200 245 221 246 466 
Adjusted earnings256 465 494 623 520 606 1,143 
Preferred stock dividends— — — — — — — 
Adjusted earnings available to common shareholders$256 $465 $494 $623 $520 $606 $1,143 
Adjusted premiums, fees and other revenues$2,018 $2,265 $2,161 $2,161 $2,037 $4,098 $4,198 
18
ASIA
ADJUSTED PREMIUMS, FEES AND OTHER REVENUES
For the Three Months Ended
Unaudited (In millions)June 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021
Adjusted premiums, fees and other revenues$2,018 $2,265 $2,161 $2,161 $2,037 
Adjusted premiums, fees and other revenues, on a constant currency basis $2,040 $2,250 $2,102 $2,115 $2,037 
Add: Operating joint ventures, on a constant currency basis (1), (2)282 301 294 344 278 
Adjusted premiums, fees and other revenues, including operating joint ventures, on a constant currency basis$2,322 $2,551 $2,396 $2,459 $2,315 
OTHER EXPENSES BY MAJOR CATEGORY
For the Three Months Ended
Unaudited (In millions)June 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021
Direct and allocated expenses$309 $313 $354 $318 $314 
Pension, postretirement and postemployment benefit costs24 24 35 23 22 
Premium taxes, other taxes, and licenses & fees34 42 41 46 45 
Commissions and other variable expenses430 490 511 512 451 
Adjusted other expenses$797 $869 $941 $899 $832 
Adjusted other expenses, net of adjusted capitalization of DAC$446 $438 $492 $464 $437 
Adjusted other expenses on a constant currency basis$799 $860 $910 $878 $832 
Add: Operating joint ventures, on a constant currency basis (1), (2)111 105 109 115 92 
Adjusted other expenses, including operating joint ventures, on a constant currency basis$910 $965 $1,019 $993 $924 
Adjusted other expenses, including operating joint ventures, net of adjusted capitalization of DAC, on a constant currency basis
$524 $512 $556 $537 $506 
SALES ON A CONSTANT CURRENCY BASIS
For the Three Months Ended
Unaudited (In millions)June 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021
Japan:
Life$101 $222 $150 $167 $163 
Accident & Health49 75 71 60 71 
Annuities30 38 72 92 76 
Other2 2 2 1 1 
Total Japan182 337 295 320 311 
Other Asia168 234 250 262 187 
   Total sales$350 $571 $545 $582 $498 
OTHER STATISTICAL INFORMATION
For the Three Months Ended
Unaudited (In millions)June 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021
Adjusted earnings available to common shareholders$256 $465 $494 $623 $520 
Adjusted earnings available to common shareholders, on a constant currency basis$272 $469 $495 $619 $520 
(1)Adjusted premiums, fees and other revenues as well as other expenses are reported as part of net investment income on the statements of adjusted earnings available to common shareholders for operating joint ventures.
(2)Includes MetLife, Inc.'s percentage interest in operating joint ventures of: (i) China, (ii) India, (iii) Malaysia and (iv) Vietnam, which are consolidated using the equity method of accounting.

19
ASIA
GENERAL ACCOUNT ASSETS UNDER MANAGEMENT AND RELATED MEASURES
Unaudited (In millions)June 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021
GA AUM $134,769 $139,445 $144,267 $137,258 $140,875 
GA AUM (at amortized cost)$121,429 $125,171 $129,661 $127,695 $129,411 
GA AUM (at amortized cost), on a constant currency basis$121,815 $123,425 $124,830 $127,270 $129,411 
  Add: Operating joint ventures, on a constant currency basis (1)5,265 5,400 5,631 5,792 5,976 
GA AUM (at amortized cost), including operating joint ventures, on a constant currency basis$127,080 $128,825 $130,461 $133,062 $135,387 
(1)Includes MetLife, Inc.'s percentage interest in operating joint ventures of: (i) China, (ii) India, (iii) Malaysia and (iv) Vietnam, which are consolidated using the equity method of accounting and reported in other invested assets, a component of total investments.

20
LATIN AMERICA
STATEMENTS OF ADJUSTED EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
 
For the Three Months EndedFor the Year-to-Date Period Ended
Unaudited (In millions)June 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021June 30, 2020June 30, 2021
Adjusted revenues
Premiums$489 $529 $607 $595 $636 $1,129 $1,231 
Universal life and investment-type product policy fees238 225 261 270 287 508 557 
Net investment income260 221 293 299 308 478 607 
Other revenues10 7 10 10 11 21 21 
Total adjusted revenues997 982 1,171 1,174 1,242 2,136 2,416 
Adjusted expenses
Policyholder benefits and claims and policyholder dividends449 575 772 761 724 1,059 1,485 
Interest credited to policyholder account balances56 52 62 59 60 126 119 
Capitalization of DAC(74)(84)(104)(95)(100)(174)(195)
Amortization of DAC and VOBA70 62 70 60 83 144 143 
Amortization of negative VOBA— — — — — — — 
Interest expense on debt1 1 1 1 1 2 2 
Other expenses307 313 353 335 343 652 678 
Total adjusted expenses809 919 1,154 1,121 1,111 1,809 2,232 
Adjusted earnings before provision for income tax188 63 17 53 131 327 184 
Provision for income tax expense (benefit)56 24 3 13 34 100 47 
Adjusted earnings132 39 14 40 97 227 137 
Preferred stock dividends— — — — — — — 
Adjusted earnings available to common shareholders$132 $39 $14 $40 $97 $227 $137 
Adjusted premiums, fees and other revenues$737 $761 $878 $875 $934 $1,658 $1,809 
21
LATIN AMERICA
OTHER EXPENSES BY MAJOR CATEGORY
For the Three Months Ended
Unaudited (In millions)June 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021
Direct and allocated expenses$119 $117 $125 $121 $120 
Pension, postretirement and postemployment benefit costs1 1 1 1 1 
Premium taxes, other taxes, and licenses & fees8 11 12 11 11 
Commissions and other variable expenses179 184 215 202 211 
Adjusted other expenses$307 $313 $353 $335 $343 
Adjusted other expenses, net of adjusted capitalization of DAC$233 $229 $249 $240 $243 
Adjusted other expenses on a constant currency basis$341 $335 $362 $339 $343 
Adjusted other expenses, net of adjusted capitalization of DAC, on a constant currency basis$257 $244 $255 $243 $243 
SALES ON A CONSTANT CURRENCY BASIS
For the Three Months Ended
Unaudited (In millions)June 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021
Mexico$67 $76 $80 $92 $92 
Chile44 47 49 53 61 
All other32 42 45 41 69 
Total sales$143 $165 $174 $186 $222 
OTHER STATISTICAL INFORMATION
For the Three Months Ended
Unaudited (In millions)June 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021
Adjusted premiums, fees and other revenues$737 $761 $878 $875 $934 
Adjusted earnings available to common shareholders$132 $39 $14 $40 $97 
Adjusted premiums, fees and other revenues, on a constant currency basis$834 $824 $904 $887 $934 
Adjusted earnings available to common shareholders, on a constant currency basis$157 $46 $21 $41 $97 

22
EMEA
STATEMENTS OF ADJUSTED EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
 
For the Three Months EndedFor the Year-to-Date Period Ended
Unaudited (In millions)June 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021June 30, 2020June 30, 2021
Adjusted revenues
Premiums$557 $551 $583 $598 $621 $1,125 $1,219 
Universal life and investment-type product policy fees92 116 109 67 107 208 174 
Net investment income63 67 70 63 62 132 125 
Other revenues11 13 15 13 16 24 29 
Total adjusted revenues723 747 777 741 806 1,489 1,547 
Adjusted expenses
Policyholder benefits and claims and policyholder dividends263 304 319 343 333 573 676 
Interest credited to policyholder account balances27 29 26 24 25 54 49 
Capitalization of DAC(115)(122)(124)(127)(122)(245)(249)
Amortization of DAC and VOBA85 125 114 62 94 215 156 
Amortization of negative VOBA(2)(1)(3)(2)(2)(4)(4)
Interest expense on debt— — 1 — — — — 
Other expenses328 340 344 349 349 660 698 
Total adjusted expenses586 675 677 649 677 1,253 1,326 
Adjusted earnings before provision for income tax137 72 100 92 129 236 221 
Provision for income tax expense (benefit)21 20 19 21 35 42 56 
Adjusted earnings116 52 81 71 94 194 165 
Preferred stock dividends— — — — — — — 
Adjusted earnings available to common shareholders$116 $52 $81 $71 $94 $194 $165 
Adjusted premiums, fees and other revenues$660 $680 $707 $678 $744 $1,357 $1,422 
23
EMEA
OTHER EXPENSES BY MAJOR CATEGORY
For the Three Months Ended
Unaudited (In millions)June 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021
Direct and allocated expenses$110 $119 $120 $112 $116 
Pension, postretirement and postemployment benefit costs2 1 4 1 2 
Premium taxes, other taxes, and licenses & fees8 7 5 8 6 
Commissions and other variable expenses208 213 215 228 225 
Adjusted other expenses$328 $340 $344 $349 $349 
Adjusted other expenses, net of adjusted capitalization of DAC$213 $218 $220 $222 $227 
Adjusted other expenses on a constant currency basis $344 $344 $348 $347 $349 
Adjusted other expenses, net of adjusted capitalization of DAC, on a constant currency basis$223 $221 $223 $221 $227 
OTHER STATISTICAL INFORMATION
  For the Three Months Ended
Unaudited (In millions)June 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021
Adjusted premiums, fees and other revenues$660 $680 $707 $678 $744 
Adjusted earnings available to common shareholders$116 $52 $81 $71 $94 
Adjusted premiums, fees and other revenues, on a constant currency basis$690 $691 $715 $673 $744 
Adjusted earnings available to common shareholders, on a constant currency basis$122 $53 $81 $70 $94 
Total sales on a constant currency basis$197 $208 $221 $263 $236 
24
METLIFE HOLDINGS
STATEMENTS OF ADJUSTED EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
For the Three Months EndedFor the Year-to-Date Period Ended
Unaudited (In millions)June 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021June 30, 2020June 30, 2021
Adjusted revenues
Premiums$889 $876 $931 $827 $839 $1,793 $1,666 
Universal life and investment-type product policy fees249 269 261 274 273 543 547 
Net investment income981 1,427 1,461 1,646 1,543 2,296 3,189 
Other revenues70 61 72 62 69 105 131 
Total adjusted revenues2,189 2,633 2,725 2,809 2,724 4,737 5,533 
Adjusted expenses
Policyholder benefits and claims and policyholder dividends1,705 1,697 1,675 1,523 1,549 3,366 3,072 
Interest credited to policyholder account balances219 217 214 210 210 437 420 
Capitalization of DAC(5)(5)(24)(8)(9)(10)(17)
Amortization of DAC and VOBA11 177 82 54 56 111 110 
Amortization of negative VOBA— — — — — — — 
Interest expense on debt1 2 1 1 2 3 3 
Other expenses239 231 244 253 244 467 497 
Total adjusted expenses2,170 2,319 2,192 2,033 2,052 4,374 4,085 
Adjusted earnings before provision for income tax19 314 533 776 672 363 1,448 
Provision for income tax expense (benefit)(1)61 107 158 136 66 294 
Adjusted earnings20 253 426 618 536 297 1,154 
Preferred stock dividends— — — — — — — 
Adjusted earnings available to common shareholders$20 $253 $426 $618 $536 $297 $1,154 
Adjusted premiums, fees and other revenues$1,208 $1,206 $1,264 $1,163 $1,181 $2,441 $2,344 
25
METLIFE HOLDINGS
FUTURE POLICY BENEFITS AND POLICYHOLDER ACCOUNT BALANCES
LIFE & OTHER (1)
For the Three Months Ended
Unaudited (In millions)June 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021
Balance, beginning of period$81,458 $81,497 $83,021 $83,004 $81,446 
Premiums and deposits (2), (3)1,227 1,236 1,216 1,142 1,100 
Surrenders and withdrawals(554)(607)(567)(529)(538)
Benefit payments(892)(830)(832)(936)(790)
Net flows(219)(201)(183)(323)(228)
Net transfers from (to) separate accounts31 5 12 2 9 
Interest833 836 836 831 834 
Policy charges(186)(184)(184)(185)(183)
Other(420)1,068 (498)(1,883)115 
Balance, end of period$81,497 $83,021 $83,004 $81,446 $81,993 
ANNUITIESFor the Three Months Ended
Unaudited (In millions)June 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021
Balance, beginning of period$19,895 $19,538 $19,466 $19,029 $18,367 
Premiums and deposits (2), (3)107 91 111 107 91 
Surrenders and withdrawals(277)(286)(356)(340)(306)
Benefit payments(158)(149)(158)(171)(150)
Net flows(328)(344)(403)(404)(365)
Net transfers from (to) separate accounts73 188 170 96 29 
Interest132 130 131 129 125 
Policy charges(4)(4)(4)(4)(4)
Other(230)(42)(331)(479)118 
Balance, end of period$19,538 $19,466 $19,029 $18,367 $18,270 
SEPARATE ACCOUNT LIABILITIES
LIFE & OTHER
For the Three Months Ended
Unaudited (In millions)June 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021
Balance, beginning of period$4,586 $5,583 $6,039 $6,848 $7,021 
Premiums and deposits (3)60 59 59 62 57 
Surrenders and withdrawals(38)(51)(55)(68)(67)
Benefit payments(10)(10)(11)(16)(18)
Net flows12 (2)(7)(22)(28)
Investment performance1,082 527 895 260 508 
Net transfers from (to) general account(31)(5)(12)(2)(9)
Policy charges(65)(65)(66)(66)(66)
Other(1)1 (1)3 (2)
Balance, end of period$5,583 $6,039 $6,848 $7,021 $7,424 
ANNUITIES
For the Three Months Ended
Unaudited (In millions)June 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021
Balance, beginning of period$32,942 $36,852 $37,883 $40,825 $40,444 
Premiums and deposits (3)77 65 75 79 83 
Surrenders and withdrawals(641)(812)(942)(1,062)(1,094)
Benefit payments(98)(106)(107)(128)(121)
Net flows(662)(853)(974)(1,111)(1,132)
Investment performance
4,831 2,269 4,282 1,017 2,460 
Net transfers from (to) general account(73)(188)(170)(96)(29)
Policy charges(185)(197)(196)(190)(200)
Other(1)— — (1)— 
Balance, end of period$36,852 $37,883 $40,825 $40,444 $41,543 
(1) Long-term care and Japan reinsurance are reported as part of "Other" within Life & Other.
(2) Includes premiums and deposits directed to the general account investment option of variable products.
(3) Includes company-sponsored internal exchanges.
26
METLIFE HOLDINGS
OTHER EXPENSES BY MAJOR CATEGORY
  For the Three Months Ended
Unaudited (In millions)June 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021
Direct and allocated expenses$149 $155 $149 $166 $164 
Pension, postretirement and postemployment benefit costs3 3 3 — 4 
Premium taxes, other taxes, and licenses & fees17 17 25 14 18 
Commissions and other variable expenses70 56 67 73 58 
Adjusted other expenses$239 $231 $244 $253 $244 
OTHER STATISTICAL INFORMATION
For the Three Months Ended
Unaudited (In millions, except ratios)June 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021
Life (1)
Adjusted premiums, fees and other revenues$817 $811 $843 $762 $766 
Interest adjusted benefit ratio59.1 %60.2 %59.6 %54.8 %47.1 %
Lapse Ratio (2)
Traditional life4.5 %4.3 %4.1 %4.0 %4.0 %
Variable & universal life3.9 %3.7 %3.5 %3.3 %3.3 %
Fixed annuity9.1 %8.5 %6.5 %6.6 %6.7 %
Variable annuity9.8 %9.2 %8.8 %8.5 %9.2 %
(1) Represents the traditional life and variable & universal life components of Life & Other. Results are derived from insurance contracts.                                        
(2) Lapse ratios are calculated based on the average of the most recent 12 months of experience.

27
CORPORATE & OTHER
STATEMENTS OF ADJUSTED EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
For the Three Months EndedFor the Year-to-Date Period Ended
Unaudited (In millions)June 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021June 30, 2020June 30, 2021
Adjusted revenues
Premiums$13 $(8)$5 $58 $(20)$25 $38 
Universal life and investment-type product policy fees1 1 1 — 1 1 1 
Net investment income(52)58 20 12 48 (36)60 
Other revenues72 82 106 86 109 156 195 
Total adjusted revenues34 133 132 156 138 146 294 
Adjusted expenses
Policyholder benefits and claims and policyholder dividends3 (6)(26)40 (13)29 27 
Interest credited to policyholder account balances— — — — — — — 
Capitalization of DAC(2)(3)(3)(3)(3)(5)(6)
Amortization of DAC and VOBA3 2 2 2 3 4 5 
Amortization of negative VOBA— — — — — — — 
Interest expense on debt228 224 226 224 223 445 447 
Other expenses134 120 235 107 34 270 141 
Total adjusted expenses366 337 434 370 244 743 614 
Adjusted earnings before provision for income tax(332)(204)(302)(214)(106)(597)(320)
Provision for income tax expense (benefit)(120)(132)(138)(111)(81)(286)(192)
Adjusted earnings(212)(72)(164)(103)(25)(311)(128)
Preferred stock dividends77 59 34 68 35 109 103 
Adjusted earnings available to common shareholders$(289)$(131)$(198)$(171)$(60)$(420)$(231)
Adjusted premiums, fees and other revenues$86 $75 $112 $144 $90 $182 $234 
ADJUSTED EARNINGS AVAILABLE TO COMMON SHAREHOLDERS BY SOURCE
  For the Three Months EndedFor the Year-to-Date Period Ended
Unaudited (In millions)June 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021June 30, 2020June 30, 2021
Business activities$12 $30 $36 $29 $28 $30 $57 
Net investment income(50)59 28 13 51 (33)64 
Interest expense on debt(238)(238)(238)(234)(235)(467)(469)
Corporate initiatives and projects(25)(27)(76)(25)(24)(56)(49)
Other(31)(28)(52)3 74 (71)77 
Provision for income tax (expense) benefit and other tax-related items120 132 138 111 81 286 192 
Preferred stock dividends(77)(59)(34)(68)(35)(109)(103)
Adjusted earnings available to common shareholders$(289)$(131)$(198)$(171)$(60)$(420)$(231)
28
INVESTMENTS
INVESTMENT PORTFOLIO RESULTS BY ASSET CATEGORY AND ANNUALIZED YIELDS
This yield table presentation is consistent with how we measure our investment performance for management purposes, and we believe it enhances understanding of our investment portfolio results.
At or For the Three Months Ended (1)At or For the Year Ended (1)
Unaudited (In millions, except yields)June 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021June 30, 2020June 30, 2021
Fixed Maturity Securities
Yield3.99 %3.87 %3.83 %3.72 %3.76 %3.91 %3.74 %
Investment income (2), (3)$2,885 $2,849 $2,883 $2,784 $2,785 $5,624 $5,569 
Investment gains (losses)146 113 31 (64)6 150 (58)
Ending carrying value (4)341,365 355,220 356,420 334,594 342,344 341,365 342,344 
Mortgage Loans
Yield4.20 %4.27 %4.25 %4.11 %4.29 %4.28 %4.20 %
Investment income (3)862 885 887 861 885 1,746 1,746 
Investment gains (losses)(80)(5)(65)60 (2)(143)58 
Ending carrying value82,890 82,881 83,919 83,015 81,497 82,890 81,497 
Real Estate and Real Estate Joint Ventures
Yield0.62 %0.39 %2.30 %3.18 %3.65 %1.76 %3.42 %
Investment income18 11 68 95 109 99 204 
Investment gains (losses)2 1 3 48 368 3 416 
Ending carrying value11,524 11,643 11,933 12,007 11,901 11,524 11,901 
Policy Loans
Yield5.15 %5.15 %5.18 %5.14 %5.18 %5.19 %5.16 %
Investment income124 124 124 121 120 250 241 
Ending carrying value9,639 9,580 9,493 9,334 9,256 9,639 9,256 
Equity Securities
Yield4.12 %5.56 %4.19 %4.90 %4.30 %4.77 %4.62 %
Investment income11 15 10 11 9 25 20 
Investment gains (losses)72 2 73 75 55 (212)130 
Ending carrying value1,105 1,111 1,079 1,063 1,001 1,105 1,001 
Other Limited Partnership Interests
Yield (5)(30.23)%28.28 %31.63 %50.30 %36.58 %(7.06)%43.04 %
Investment income (5)(605)578 714 1,285 1,050 (282)2,335 
Investment gains (losses)1 (4)(16)(5)(8)5 (13)
Ending carrying value (6)7,794 8,569 9,470 10,961 11,980 7,794 11,980 
Cash and Short-term Investments
Yield1.35 %1.28 %1.01 %0.87 %0.72 %1.53 %0.79 %
Investment income38 34 24 21 21 82 42 
Investment gains (losses)(5)(19)(8)4 2 (1)6 
Ending carrying value (7)29,631 28,234 23,696 24,416 28,796 29,631 28,796 
Other Invested Assets
Investment income 247 331 318 298 266 513 564 
Investment gains (losses)106 54 49 17 19 127 36 
Ending carrying value24,731 22,544 20,593 18,677 18,977 24,731 18,977 
Total Investments
Investment income yield3.40 %4.52 %4.63 %5.05 %4.85 %3.84 %4.95 %
Investment fees and expenses yield(0.12)%(0.12)%(0.14)%(0.13)%(0.12)%(0.12)%(0.13)%
Net Investment Income Yield3.28 %4.40 %4.49 %4.92 %4.73 %3.72 %4.82 %
Investment income$3,580 $4,827 $5,028 $5,476 $5,245 $8,057 $10,721 
Investment fees and expenses(122)(131)(151)(146)(128)(256)(274)
Net investment income including divested businesses3,458 4,696 4,877 5,330 5,117 7,801 10,447 
Less: Net investment income from divested businesses14 8 2 36 — 36 36 
Adjusted Net Investment Income (8)$3,444 $4,688 $4,875 $5,294 $5,117 $7,765 $10,411 
Ending Carrying Value$508,679 $519,782 $516,603 $494,067 $505,752 $508,679 $505,752 
Investment Portfolio Gains (Losses) including divested businesses$242 $142 $67 $135 $440 $(71)$575 
Less: Divested businesses— 18 — 28 — — 28 
Investment Portfolio Gains (Losses) (9)$242 $124 $67 $107 $440 $(71)$547 
Gross investment gains677 289 338 372 656 1,113 1,028 
Gross investment losses(339)(202)(178)(288)(164)(834)(452)
Net credit loss (provision) release and (impairments)(96)37 (93)23 (52)(350)(29)
Investment Portfolio Gains (Losses) (9)242 124 67 107 440 (71)547 
Investment portfolio gains (losses) income tax (expense) benefit(166)(19)15 (25)(78)(97)(103)
Investment Portfolio Gains (Losses), Net of Income Tax$76 $105 $82 $82 $362 $(168)$444 
Derivative gains (losses) including Divested businesses $(896)$(809)$(1,820)$(2,455)$210 $3,172 $(2,245)
Less: Derivative gains (losses) from divested businesses— — — (1)— — (1)
Derivative gains (losses) (9)(896)(809)(1,820)(2,454)210 3,172 (2,244)
Derivative gains (losses) income tax (expense) benefit195 165 390 599 (63)(690)536 
Derivative Gains (Losses), Net of Income Tax$(701)$(644)$(1,430)$(1,855)$147 $2,482 $(1,708)
See footnotes on Page 32.

29
INVESTMENTS
 
SUMMARY OF FIXED MATURITY SECURITIES AVAILABLE-FOR-SALE
BY SECTOR AND QUALITY DISTRIBUTION
June 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021
Unaudited (In millions, except ratios)Amount% of TotalAmount% of TotalAmount% of TotalAmount% of TotalAmount% of Total
U.S. corporate securities$90,112 26.5 %$90,622 25.6 %$93,416 26.3 %$88,002 26.4 %$91,371 26.8 %
Foreign corporate securities62,817 18.5 %65,394 18.5 %69,408 19.5 %65,883 19.8 %65,605 19.2 %
Foreign government securities65,706 19.3 %68,611 19.4 %71,699 20.2 %67,137 20.2 %64,630 19.0 %
U.S. government and agency securities47,287 13.9 %51,644 14.6 %47,100 13.3 %41,402 12.4 %46,556 13.7 %
Residential mortgage-backed securities31,875 9.4 %33,454 9.5 %30,435 8.6 %29,302 8.8 %29,848 8.8 %
Asset-backed securities16,324 4.8 %17,355 4.9 %17,119 4.8 %16,217 4.9 %16,713 4.9 %
Municipals14,611 4.3 %14,958 4.2 %13,722 3.9 %13,212 4.0 %13,923 4.1 %
Commercial mortgage-backed securities11,273 3.3 %11,771 3.3 %11,910 3.4 %11,786 3.5 %12,049 3.5 %
Fixed Maturity Securities Available-For-Sale$340,005 100.0 %$353,809 100.0 %$354,809 100.0 %$332,941 100.0 %$340,695 100.0 %
NAICNRSRO
DESIGNATIONRATING
1Aaa / Aa / A$243,645 71.7 %$255,171 72.1 %$250,013 70.5 %$231,570 69.6 %$237,231 69.6 %
2Baa80,714 23.7 %82,519 23.3 %87,702 24.7 %84,467 25.4 %86,293 25.3 %
3Ba11,250 3.3 %11,710 3.3 %12,812 3.6 %12,825 3.8 %12,978 3.8 %
4B3,654 1.1 %3,672 1.1 %3,702 1.1 %3,397 1.0 %3,534 1.1 %
5Caa and lower640 0.2 %721 0.2 %503 0.1 %633 0.2 %604 0.2 %
6In or near default102 — %16 — %77 — %49 — %55 — %
Fixed Maturity Securities Available-For-Sale (10)$340,005 100.0 %$353,809 100.0 %$354,809 100.0 %$332,941 100.0 %$340,695 100.0 %
GROSS UNREALIZED GAINS AND LOSSES
FIXED MATURITY SECURITIES AVAILABLE-FOR-SALE
Unaudited (In millions)June 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021
Gross unrealized gains$40,479 $42,902 $45,519 $31,251 $35,681 
Gross unrealized losses3,170 2,114 1,440 2,973 1,989 
Net Unrealized Gains (Losses)$37,309 $40,788 $44,079 $28,278 $33,692 
See footnotes on Page 32.

30
INVESTMENTS
SUMMARY OF MORTGAGE LOANS
Unaudited (In millions)June 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021
          
Commercial mortgage loans$51,043 $51,448 $52,434 $52,300 $51,602 
Agricultural mortgage loans17,167 17,402 18,128 18,051 18,044 
Residential mortgage loans15,235 14,551 13,947 13,192 12,421 
Mortgage Loans83,445 83,401 84,509 83,543 82,067 
Valuation allowances(555)(520)(590)(528)(570)
Mortgage Loans, net$82,890 $82,881 $83,919 $83,015 $81,497 
SUMMARY OF COMMERCIAL MORTGAGE LOANS
BY REGION AND PROPERTY TYPE
 
June 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021
Unaudited (In millions, except ratios)Amount% of TotalAmount% of TotalAmount% of TotalAmount% of TotalAmount% of Total
Non-U.S.$9,542 18.7 %$9,828 19.1 %$10,581 20.2 %$10,507 20.1 %$10,227 19.8 %
Pacific10,275 20.1 %10,374 20.2 %10,235 19.5 %10,401 19.9 %10,161 19.7 %
Middle Atlantic8,257 16.2 %8,234 16.0 %8,233 15.7 %8,170 15.6 %8,115 15.7 %
South Atlantic6,513 12.8 %6,661 13.0 %7,217 13.8 %7,134 13.6 %7,186 13.9 %
West South Central3,945 7.7 %3,973 7.7 %3,887 7.4 %3,655 7.0 %3,636 7.0 %
New England1,719 3.4 %2,019 3.9 %2,126 4.0 %2,148 4.1 %2,214 4.3 %
East North Central2,443 4.8 %2,518 4.9 %2,494 4.8 %2,555 4.9 %2,197 4.3 %
Mountain1,755 3.4 %1,753 3.4 %1,777 3.4 %1,650 3.2 %1,903 3.7 %
East South Central482 1.0 %499 1.0 %700 1.3 %753 1.4 %781 1.5 %
West North Central633 1.2 %635 1.2 %609 1.2 %616 1.2 %649 1.3 %
Multi-Region and Other5,479 10.7 %4,954 9.6 %4,575 8.7 %4,711 9.0 %4,533 8.8 %
Total$51,043 100.0 %$51,448 100.0 %$52,434 100.0 %$52,300 100.0 %$51,602 100.0 %
Office$23,359 45.8 %$23,657 46.0 %$23,928 45.6 %$23,443 44.8 %$22,883 44.3 %
Retail8,906 17.4 %8,903 17.3 %8,911 17.0 %9,028 17.3 %8,960 17.4 %
Apartment8,639 16.9 %8,651 16.8 %8,764 16.7 %8,748 16.7 %8,699 16.9 %
Industrial4,431 8.7 %4,770 9.3 %5,365 10.2 %5,625 10.7 %5,437 10.5 %
Hotel3,333 6.5 %3,361 6.5 %3,377 6.5 %3,281 6.3 %3,187 6.2 %
Other2,375 4.7 %2,106 4.1 %2,089 4.0 %2,175 4.2 %2,436 4.7 %
Total$51,043 100.0 %$51,448 100.0 %$52,434 100.0 %$52,300 100.0 %$51,602 100.0 %

31
INVESTMENTS
FOOTNOTES
(1)We calculate yields using adjusted net investment income as a percent of average quarterly asset carrying values. Adjusted net investment income excludes recognized gains and losses, includes the impact of changes in foreign currency exchange rates and reflects the adjustments described on Page A-6 and presented on Page A-1. Asset carrying values exclude unrealized gains (losses), collateral received in connection with our securities lending program, annuities funding structured settlement claims, freestanding derivative assets, collateral received from derivative counterparties, the effects of consolidating under GAAP certain VIEs that are treated as CSEs and contractholder-directed equity securities. In addition, average quarterly asset carrying values include invested assets reclassified to held-for-sale, while ending carrying values exclude invested assets reclassified to held-for-sale. A yield is not presented for other invested assets, as it is not considered a meaningful measure of performance for this asset class.
(2)Fixed maturity securities includes investment income related to fair value option securities of $114 million, $36 million, $68 million, $36 million and $50 million for the three months ended June 30, 2020, September 30, 2020, December 31, 2020, March 31, 2021 and June 30, 2021, respectively, and $36 million and $86 million for the year-to-date period ended June 30, 2020 and June 30, 2021, respectively.
(3)Investment income from fixed maturity securities and mortgage loans includes prepayment fees.
(4)The following table presents the components of total fixed maturity securities and a reconciliation to ending carrying value presented for fixed maturity securities.
June 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021
Fixed maturity securities available-for-sale$340,005 $353,809 $354,809 $332,941 $340,695 
Contractholder-directed equity securities and fair value option securities11,911 12,276 13,319 12,975 12,177 
Total fixed maturity securities351,916 366,085 368,128 345,916 352,872 
Less: Contractholder-directed equity securities10,548 10,865 11,708 11,322 10,528 
Less: Effects of consolidating under GAAP certain VIEs that are treated as CSEs3 — — — — 
Fixed maturity securities$341,365 $355,220 $356,420 $334,594 $342,344 
(5)Other limited partnership interests includes investment income related to private equity investments of ($607) million, $504 million, $705 million, $1,278 million and $1,045 million for the three months ended June 30, 2020, September 30, 2020, December 31, 2020, March 31, 2021 and June 30, 2021, respectively, and ($296) million and $2,323 million for the year-to-date period ended June 30, 2020 and June 30, 2021, respectively. The annualized yields for these periods were (32.66)%, 26.57%, 33.61%, 53.35%, 38.60%, (7.98)% and 45.52%, respectively.
(6)Other limited partnership interests includes ending carrying value related to private equity investments of $7,221 million, $7,942 million, $8,827 million, $10,321 million and $11,337 million at June 30, 2020, September 30, 2020, December 31, 2020, March 31, 2021 and June 30, 2021, respectively.
(7)Ending carrying value excludes the effects of consolidating under GAAP certain VIEs that are treated as CSEs of $3 million at June 30, 2020, September 30, 2020 and December 31, 2020, and less than $1 million at March 31, 2021 and June 30, 2021.
(8)Adjusted net investment income reflects the adjustments as presented on Page 5.
(9)Investment portfolio gains (losses) and Derivative gains (losses) reflect the non-GAAP adjustments as presented below:
For the Three Months EndedFor the Year-to-Date Period Ended
June 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021June 30, 2020June 30, 2021
Net investment gains (losses) $231 $(20)$(33)$134 $1,605 $(57)$1,739 
Less: Operating joint venture adjustments— — (1)— — — — 
Less: Change in estimated fair value of other limited partnership interests and real estate joint ventures(13)3 5 9 5 (12)14 
Less: Non-investment portfolio gains (losses)2 (165)(104)(10)1,160 26 1,150 
Less: Divested businesses— 18 — 28 — — 28 
Investment portfolio gains (losses) $242 $124 $67 $107 $440 $(71)$547 
For the Three Months EndedFor the Year-to-Date Period Ended
June 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021June 30, 2020June 30, 2021
Net derivative gains (losses) $(710)$(581)$(1,561)$(2,235)$421 $3,491 $(1,814)
Less: Investment hedge adjustments188 229 260 220 212 326 432 
Less: Settlement of foreign currency earnings hedges— — — — — — — 
Less: PAB hedge adjustments(2)(1)(1)— (1)(7)(1)
Less: Divested businesses$— $— $— $(1)$— $— $(1)
Derivative gains (losses) $(896)$(809)$(1,820)$(2,454)$210 $3,172 $(2,244)
(10)Amounts presented are based on ratings of NRSRO and the applicable NAIC designation from the NAIC published comparison of NRSRO ratings to NAIC designations, except for certain mortgage-backed securities (non-agency residential mortgage-backed securities and commercial mortgage-backed securities). NRSRO ratings are based on availability of applicable ratings. If no NRSRO rating is available, then an internally developed rating is used. Over time, credit ratings can migrate, up or down, through the NRSRO continuous monitoring process. Amounts presented for certain mortgage-backed securities held by MetLife, Inc.'s insurance subsidiaries that maintain the NAIC statutory basis of accounting reflect designations based on revised NAIC methodologies. The NAIC's present methodology is to evaluate certain mortgage-backed securities held by insurers using revised NAIC methodologies on an annual basis. An internally developed designation is used until a final designation becomes available from the NAIC annual review. These revised NAIC designations may not correspond to NRSRO ratings.
32
image0a45a.jpg
Appendix





APPENDIX
METLIFE
RECONCILIATION DETAIL
For the Three Months EndedFor the Year-to-Date Period Ended
Unaudited (In millions)June 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021June 30, 2020June 30, 2021
Reconciliation to Adjusted Earnings Available to Common Shareholders
Net income (loss) available to MetLife, Inc.'s common shareholders$68 $633 $124 $290 $3,366 $4,434 $3,656 
Add: Preferred stock dividends77 59 34 68 35 109 103 
Add: Preferred stock redemption premium— 14 — — 6 — 6 
Add: Net Income (loss) attributable to noncontrolling interests5 3 — 5 5 8 10 
Net income (loss) 150 709 158 363 3,412 $4,551 $3,775 
Less: adjustments from net income (loss) to adjusted earnings:
Net investment gains (losses)231 (20)(33)134 1,605 (57)1,739 
Net derivative gains (losses)(710)(581)(1,561)(2,235)421 3,491 (1,814)
Premiums - Divested businesses
20 — — 865 — 52 865 
Universal life and investment-type product policy fees
Unearned revenue adjustments5 2 8 — 12 23 12 
GMIB fees25 26 25 25 24 51 49 
Divested businesses1 — — — — 3 — 
Net investment income
Investment hedge adjustments(188)(229)(260)(220)(212)(326)(432)
Operating joint venture adjustments— — 1 — — — — 
Unit-linked contract income818 262 628 207 378 (322)585 
Securitization entities income— — — — — — — 
Certain partnership distributions(1)— (6)(3)(3)(5)(6)
Divested businesses14 8 2 36 — 36 36 
Other revenues
Settlement of foreign currency earnings hedges— — — — — — — 
TSA fees39 39 39 35 60 81 95 
Divested businesses— — — 11 — — 11 
Policyholder benefits and claims and policyholder dividends
PBC hedge adjustments(9)(9)(10)(9)(8)(18)(17)
PDO adjustments— — — — — — — 
Inflation and pass-through adjustments(106)37 (53)78 18 (154)96 
GMIB costs(90)(231)(180)(128)(70)51 (198)
Market value adjustments(21)(21)(17)(23)(16)(32)(39)
Divested businesses(18)(13)— (582)— (42)(582)
Interest credited to policyholder account balances
PAB hedge adjustments2 1 1 — 1 7 1 
Unit-linked contract costs(796)(266)(612)(210)(366)342 (576)
Divested businesses(7)(2)— — — (12)— 
Capitalization of DAC - Divested businesses
2 — — 89 — 5 89 
Amortization of DAC and VOBA
Related to NIGL and NDGL6 (64)(65)3 (9)(24)(6)
Related to GMIB fees and GMIB costs5 (7)11 13 12 (8)25 
Related to market value adjustments— — — — — — — 
Divested businesses(3)— — (98)— (9)(98)
Amortization of negative VOBA
Related to market value adjustments— — — — — — — 
Divested businesses— — — — — — — 
Interest expense on debt
Securitization entities debt expense— — — — — — — 
Divested businesses— — — (1)— — (1)
Other expenses
Noncontrolling interests7 4 2 6 6 10 12 
Regulatory implementation costs— (6)(12)3 (6)(2)(3)
Acquisition, integration and other costs— (7)(29)(4)(4)(6)(8)
TSA fees(39)(39)(39)(35)(60)(81)(95)
Divested businesses(23)(7)(9)(232)(4)(42)(236)
Goodwill impairment— — — — — — — 
Provision for income tax (expense) benefit151 195 455 605 (491)(777)114 
Adjusted earnings835 1,637 1,872 2,033 2,124 2,316 4,157 
Less: Preferred stock dividends77 59 34 68 35 109 103 
Adjusted earnings available to common shareholders$758 $1,578 $1,838 $1,965 $2,089 $2,207 $4,054 
A-1
APPENDIX
METLIFE
NOTABLE ITEMS (1)
METLIFE TOTAL
For the Three Months EndedFor the Year-to-Date Period Ended
Unaudited (In millions)June 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021June 30, 2020June 30, 2021
Actuarial assumption review and other insurance adjustments$— $(203)$— $— $— $— $— 
Litigation reserves and settlement costs— — — — 66 — 66 
Total notable items$— $(203)$— $— $66 $— $66 
ASIA
  For the Three Months EndedFor the Year-to-Date Period Ended
Unaudited (In millions)June 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021June 30, 2020June 30, 2021
Actuarial assumption review and other insurance adjustments
$— $(28)$— $— $— $— $— 
Total notable items
$— $(28)$— $— $— $— $— 
LATIN AMERICA
  
For the Three Months EndedFor the Year-to-Date Period Ended
Unaudited (In millions)
June 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021June 30, 2020June 30, 2021
Actuarial assumption review and other insurance adjustments
$— $(9)$— $— $— $— $— 
Total notable items
$— $(9)$— $— $— $— $— 
EMEA
  
For the Three Months EndedFor the Year-to-Date Period Ended
Unaudited (In millions)
June 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021June 30, 2020June 30, 2021
Actuarial assumption review and other insurance adjustments
$— $(31)$— $— $— $— $— 
Total notable items
$— $(31)$— $— $— $— $— 
METLIFE HOLDINGS
  
For the Three Months EndedFor the Year-to-Date Period Ended
Unaudited (In millions)
June 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021June 30, 2020June 30, 2021
Actuarial assumption review and other insurance adjustments
$— $(135)$— $— $— $— $— 
Total notable items
$— $(135)$— $— $— $— $— 
CORPORATE & OTHER
  
For the Three Months EndedFor the Year-to-Date Period Ended
Unaudited (In millions)
June 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021June 30, 2020June 30, 2021
Litigation reserves and settlement costs
$— $— $— $— $66 $— $66 
Total notable items
$— $— $— $— $66 $— $66 
(1)These notable items represent a positive (negative) impact to adjusted earnings available to common shareholders. Notable items reflect the unexpected impact of events that affect MetLife's results, but that were unknown and that MetLife could not anticipate when it devised its business plan. Notable items also include certain items regardless of the extent anticipated in the business plan, to help investors have a better understanding of MetLife's results and to evaluate and forecast those results.
A-2
APPENDIX
METLIFE
EQUITY DETAILS, BOOK VALUE DETAILS AND RETURN ON EQUITY
Unaudited (In millions)June 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021
Total MetLife, Inc.'s stockholders' equity$75,693 $73,316 $74,558 $65,864 $69,138 
Less: Preferred stock
4,312 4,312 4,312 4,312 3,818 
MetLife, Inc.'s common stockholders' equity 71,381 69,004 70,246 61,552 65,320 
Less: Net unrealized investment gains (losses), net of income tax
25,913 22,869 23,730 16,712 18,608 
  Defined benefit plans adjustment, net of income tax(1,968)(1,954)(1,863)(1,848)(1,836)
Total MetLife, Inc.'s common stockholders' equity, excluding AOCI other than FCTA$47,436 $48,089 $48,379 $46,688 $48,548 
Less: Goodwill, net of income tax
8,910 9,021 10,090 9,571 9,398 
  VODA and VOCRA, net of income tax
264 253 844 807 779 
Total MetLife, Inc.'s tangible common stockholders' equity$38,262 $38,815 $37,445 $36,310 $38,371 
Unaudited (In millions)June 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021
Total MetLife, Inc.'s common stockholders' equity, excluding AOCI other than FCTA$47,436 $48,089 $48,379 $46,688 $48,548 
Less: Accumulated year-to-date total notable items (2)
— (203)(203)— 66 
Total MetLife, Inc.'s common stockholders' equity, excluding total notable items (excludes AOCI other than FCTA) (2)$47,436 $48,292 $48,582 $46,688 $48,482 
Unaudited (In millions, except per share data)June 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021
Book value per common share $78.65 $76.20 $78.67 $70.08 $75.86 
Less: Net unrealized investment gains (losses), net of income tax
28.55 25.26 26.58 19.02 21.61 
  Defined benefit plans adjustment, net of income tax
(2.17)(2.16)(2.09)(2.10)(2.13)
Book value per common share, excluding AOCI other than FCTA$52.27 $53.10 $54.18 $53.16 $56.38 
Less: Goodwill, net of income tax
9.82 9.96 11.29 10.90 10.92 
  VODA and VOCRA, net of income tax
0.29 0.28 0.95 0.92 0.90 
Book value per common share - tangible common stockholders' equity$42.16 $42.86 $41.94 $41.34 $44.56 
Common shares outstanding, end of period 907.6 905.6 892.9 878.3 861.1 
For the Three Months Ended (1)
Unaudited (In millions, except ratios)June 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021
Return on MetLife, Inc.'s:
Common stockholders' equity 0.4 %3.6 %0.7 %1.8 %21.2 %
Adjusted return on MetLife, Inc.'s:
Common stockholders' equity 4.4 %9.0 %10.6 %11.9 %13.2 %
Common stockholders' equity, excluding AOCI other than FCTA 6.4 %13.2 %15.2 %16.5 %17.5 %
Common stockholders' equity, excluding total notable items (excludes AOCI other than FCTA) (2)6.4 %14.9 %15.2 %16.5 %17.0 %
Tangible common stockholders' equity (3) 8.0 %16.5 %19.4 %21.5 %22.6 %
Average common stockholders' equity $68,645 $70,193 $69,625 $65,899 $63,436 
Average common stockholders' equity, excluding AOCI other than FCTA $47,481 $47,763 $48,234 $47,534 $47,618 
Average common stockholders' equity, excluding total notable items (excludes AOCI other than FCTA) (2)$47,481 $47,864 $48,437 $47,534 $47,585 
Average tangible common stockholders' equity
$38,342 $38,539 $38,130 $36,878 $37,341 
(1) Annualized using quarter-to-date results.
(2)Notable items reflect the unexpected impact of events that affect MetLife’s results, but that were unknown and that MetLife could not anticipate when it devised its business plan. Notable items also include certain items regardless of the extent anticipated in the business plan, to help investors have a better understanding of MetLife's results and to evaluate and forecast those results. Notable items can affect MetLife’s results either positively or negatively. See Page A-2 for further detail.
(3)Adjusted earnings available to common shareholders used to calculate the adjusted return on tangible common stockholders' equity excludes the impact of amortization of VODA and VOCRA, net of income tax, for the three months ended June 30, 2020, September 30, 2020, December 31, 2020, March 31, 2021 and June 30, 2021 of $10 million, $7 million, $8 million, $20 million and $20 million, respectively.
A-3
APPENDIX
METLIFE
ADJUSTED PREMIUMS, FEES AND OTHER REVENUES, OTHER EXPENSES AND ADJUSTED EARNINGS AVAILABLE TO COMMON SHAREHOLDERS - CONSTANT CURRENCY BASIS
 ADJUSTED PREMIUMS, FEES AND OTHER REVENUES, ON A CONSTANT CURRENCY BASIS
For the Three Months Ended
Unaudited (In millions)June 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021
U.S. (1)$5,692 $6,833 $10,578 $6,392 $6,136 
ASIA 2,040 2,250 2,102 2,115 2,037 
LATIN AMERICA834 824 904 887 934 
EMEA 690 691 715 673 744 
METLIFE HOLDINGS (1)1,208 1,206 1,264 1,163 1,181 
CORPORATE & OTHER (1)86 75 112 144 90 
Adjusted premiums, fees and other revenues, on a constant currency basis$10,550 $11,879 $15,675 $11,374 $11,122 
Adjusted premiums, fees and other revenues$10,401 $11,820 $15,700 $11,413 $11,122 
ASIA (including operating joint ventures) (2), (3)$2,322 $2,551 $2,396 $2,459 $2,315 
 OTHER EXPENSES ON A CONSTANT CURRENCY BASIS
For the Three Months Ended
Unaudited (In millions)June 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021
U.S. (1)$1,012 $1,026 $1,058 $911 $898 
ASIA 799 860 910 878 832 
LATIN AMERICA341 335 362 339 343 
EMEA344 344 348 347 349 
METLIFE HOLDINGS (1)239 231 244 253 244 
CORPORATE & OTHER (1)134 120 235 107 34 
Adjusted other expenses on a constant currency basis$2,869 $2,916 $3,157 $2,835 $2,700 
Adjusted other expenses$2,817 $2,899 $3,175 $2,854 $2,700 
ASIA (including operating joint ventures) (2), (3)$910 $965 $1,019 $993 $924 
 ADJUSTED EARNINGS AVAILABLE TO COMMON SHAREHOLDERS ON A CONSTANT CURRENCY BASIS
For the Three Months Ended
Unaudited (In millions)June 30, 2020September 30, 2020December 31, 2020March 31, 2021June 30, 2021
U.S. (1)$523 $900 $1,021 $784 $902 
ASIA 272 469 495 619 520 
LATIN AMERICA157 46 21 41 97 
EMEA 122 53 81 70 94 
METLIFE HOLDINGS (1)20 253 426 618 536 
CORPORATE & OTHER (1)(289)(131)(198)(171)(60)
Adjusted earnings available to common shareholders on a constant currency basis$805 $1,590 $1,846 $1,961 $2,089 
Adjusted earnings available to common shareholders$758 $1,578 $1,838 $1,965 $2,089 
 (1) Amounts on a reported basis, as constant currency impact is not significant.
 (2) Adjusted premiums, fees and other revenues as well as other expenses are reported as part of net investment income on the statements of adjusted earnings available to common shareholders on Page 18 for operating joint ventures.
 (3) Includes MetLife, Inc.'s percentage interest in operating joint ventures of: (i) China, (ii) India, (iii) Malaysia and (iv) Vietnam, which are consolidated using the equity method of accounting.
A-4
METLIFE
NON-GAAP AND OTHER FINANCIAL DISCLOSURES

In this QFS, MetLife presents certain measures of its performance on a consolidated and segment basis that are not calculated in accordance with GAAP. We believe that these non-GAAP financial measures enhance the understanding for MetLife and its investors of MetLife's performance by highlighting the results of operations and the underlying profitability drivers of our business. Segment-specific financial measures are calculated using only the portion of consolidated results attributable to that specific segment.

The following non-GAAP financial measures should not be viewed as substitutes for the most directly comparable financial measures calculated in accordance with GAAP:
Non-GAAP financial measures:Comparable GAAP financial measures:
(i)total adjusted revenues(i)total revenues
(ii)total adjusted expenses(ii)total expenses
(iii)adjusted premiums, fees and other revenues(iii)premiums, fees and other revenues
(iv)adjusted premiums, fees & other revenues, excluding PRT (iv)premiums, fees and other revenues
(v)adjusted net investment income(v)net investment income
(vi)adjusted earnings(vi)net income (loss)
(vii)adjusted earnings available to common shareholders(vii)net income (loss) available to MetLife, Inc.’s common shareholders
(viii)adjusted earnings available to common shareholders, excluding total notable items(viii)net income (loss) available to MetLife, Inc.’s common shareholders
(ix)adjusted earnings available to common shareholders per diluted common share(ix)net income (loss) available to MetLife, Inc.’s common shareholders per diluted common share
(x)adjusted earnings available to common shareholders, excluding total notable items, per diluted common share(x)net income (loss) available to MetLife, Inc.’s common shareholders per diluted common share
(xi)adjusted return on equity(xi)return on equity
(xii)adjusted return on equity, excluding AOCI other than FCTA(xii)return on equity
(xiii)adjusted return on equity, excluding total notable items (excludes AOCI other than FCTA)(xiii)return on equity
(xiv)adjusted tangible return on equity(xiv)return on equity
(xv)investment portfolio gains (losses)(xv)net investment gains (losses)
(xvi)derivative gains (losses)(xvi)net derivative gains (losses)
(xvii)adjusted capitalization of DAC(xvii)capitalization of DAC
(xviii)total MetLife, Inc.’s tangible common stockholders’ equity(xviii)total MetLife, Inc.’s stockholders’ equity
(xix)total MetLife, Inc.’s common stockholders’ equity, excluding AOCI other than FCTA(xix)total MetLife, Inc.’s stockholders’ equity
(xx)total MetLife, Inc.’s common stockholders’ equity, excluding total notable items (excludes AOCI other than FCTA)(xx)total MetLife, Inc.’s stockholders’ equity
(xxi)book value per common share, excluding AOCI other than FCTA(xxi)book value per common share
(xxii)book value per common share - tangible common stockholders' equity(xxii)book value per common share
(xxiii)adjusted other expenses(xxiii)other expenses
(xxiv)adjusted other expenses, net of adjusted capitalization of DAC(xxiv)other expenses, net of capitalization of DAC
(xxv)adjusted other expenses, net of adjusted capitalization of DAC, excluding total notable items related to adjusted other expenses(xxv)other expenses, net of capitalization of DAC
(xxvi)adjusted expense ratio(xxvi)expense ratio
(xxvii)adjusted expense ratio, excluding total notable items related to 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.

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

Adjusted earnings and related measures
•adjusted earnings;
•adjusted earnings available to common shareholders;
•adjusted earnings available to common shareholders, excluding total notable items;
•adjusted earnings available to common shareholders per diluted common share;
•adjusted earnings available to common shareholders, excluding total notable items per diluted common share; and
•adjusted earnings available to common shareholders on a constant currency basis.
These measures are used by management to evaluate performance and allocate resources. Consistent with GAAP guidance for segment reporting, adjusted earnings and components of, or other financial measures based on, adjusted earnings are also MetLife’s GAAP measures of segment performance. Adjusted earnings and other financial measures based on adjusted earnings are also the measures by which MetLife senior management’s and many other employees’ performance is evaluated for the purposes of determining their compensation under applicable compensation plans. Adjusted earnings and other financial measures based on adjusted earnings allow analysis of MetLife's performance relative to its business plan and facilitate comparisons to industry results.

Adjusted earnings is defined as adjusted revenues less adjusted expenses, net of income tax. Adjusted earnings available to common shareholders is defined as adjusted earnings less preferred stock dividends.
Adjusted revenues and adjusted expenses
These financial measures, along with the related adjusted premiums, fees and other revenues, focus on our primary businesses principally by excluding the impact of market volatility, which could distort trends, and revenues and costs related to non-core products and certain entities required to be consolidated under GAAP. Also, these measures exclude results of discontinued operations under GAAP and other businesses that have been or will be sold or exited by MetLife but do not meet the discontinued operations criteria under GAAP (“Divested businesses”). Divested businesses also include the net impact of transactions with exited businesses that have been eliminated in consolidation under GAAP and costs relating to businesses that have been or will be sold or exited by MetLife that do not meet the criteria to be included in results of discontinued operations under GAAP. Adjusted revenues also excludes NIGL and NDGL. Adjusted expenses also excludes goodwill impairments.
The following additional adjustments are made to revenues, in the line items indicated, in calculating adjusted revenues:
•Universal life and investment-type product policy fees excludes the amortization of unearned revenue related to NIGL and NDGL (“Unearned revenue adjustments”) and certain variable annuity GMIB fees (“GMIB fees”);
•Net investment income: (i) includes adjustments for earned income on derivatives and amortization of premium on derivatives that are hedges of investments or that are used to replicate certain investments, but do not qualify for hedge accounting treatment (“Investment hedge adjustments”), (ii) excludes post-tax adjusted earnings adjustments relating to insurance joint ventures accounted for under the equity method (“Operating joint venture adjustments”), (iii) excludes certain amounts related to contractholder-directed equity securities (“Unit-linked contract income”), (iv) excludes certain amounts related to securitization entities that are VIEs consolidated under GAAP (“Securitization entities income”), and (v) includes distributions of profits from certain other limited partnership interests that were previously accounted for under the cost method, but are now accounted for at estimated fair value, where the change in estimated fair value is recognized in NIGL under GAAP ("Certain partnership distributions"); and
•Other revenues is adjusted for settlements of foreign currency earnings hedges and excludes fees received in association with services provided under transition service agreements ("TSA fees").
The following additional adjustments are made to expenses, in the line items indicated, in calculating adjusted expenses:
•Policyholder benefits and claims and policyholder dividends excludes: (i) amortization of basis adjustments associated with de-designated fair value hedges of future policy benefits ("PBC hedge adjustments"), (ii) changes in the policyholder dividend obligation related to NIGL and NDGL (“PDO adjustments”), (iii) inflation-indexed benefit adjustments associated with contracts backed by inflation-indexed investments and amounts associated with periodic crediting rate adjustments based on the total return of a contractually referenced pool of assets and other pass-through adjustments (“Inflation and pass-through adjustments”), (iv) benefits and hedging costs related to GMIBs (“GMIB costs”), and (v) market value adjustments associated with surrenders or terminations of contracts (“Market value adjustments”);
•Interest credited to policyholder account balances includes adjustments for earned income on derivatives and amortization of premium on derivatives that are hedges of policyholder account balances but do not qualify for hedge accounting treatment (“PAB hedge adjustments”) and excludes certain amounts related to net investment income earned on contractholder-directed equity securities (“Unit-linked contract costs”);
•Amortization of DAC and VOBA excludes amounts related to: (i) NIGL and NDGL, (ii) GMIB fees and GMIB costs, and (iii) Market value adjustments;
•Amortization of negative VOBA excludes amounts related to Market value adjustments;
•Interest expense on debt excludes certain amounts related to securitization entities that are VIEs consolidated under GAAP (“Securitization entities debt expense”); and
•Other expenses excludes: (i) noncontrolling interests, (ii) implementation of new insurance regulatory requirements costs (“Regulatory implementation costs”) and (iii) acquisition, integration and other costs. Other expenses includes TSA fees.
Adjusted earnings also excludes the recognition of certain contingent assets and liabilities that could not be recognized at acquisition or adjusted for during the measurement period under GAAP business combination accounting guidance.

The tax impact of the adjustments mentioned above are calculated net of the U.S. or foreign statutory tax rate, which could differ from MetLife's effective tax rate. Additionally, the provision for income tax (expense) benefit also includes the impact related to the timing of certain tax credits, as well as certain tax reforms.

In addition, adjusted earnings available to common shareholders excludes the impact of preferred stock redemption premium. which is reported as a reduction to net income (loss) available to MetLife, Inc.’s common shareholders.
Investment portfolio gains (losses) and derivative gains (losses)

These are measures of investment and hedging activity. Investment portfolio gains (losses) principally excludes amounts that are reported within net investment gains (losses) but do not relate to the performance of the investment portfolio, such as gains (losses) on sales and divestitures of businesses and goodwill impairment, as well as investment portfolio gains (losses) of divested businesses. Derivative gains (losses) principally excludes earned income on derivatives and amortization of premium on derivatives, where such derivatives are either hedges of investments or are used to replicate certain investments, and where such derivatives do not qualify for hedge accounting. This earned income and amortization of premium is reported within adjusted earnings and not within derivative gains (losses).
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METLIFE
NON-GAAP AND OTHER FINANCIAL DISCLOSURES (CONTINUED)
Return on equity, allocated equity, tangible equity and related measures
•Total MetLife, Inc.’s common stockholders’ equity, excluding AOCI other than FCTA: Total MetLife, Inc.’s common stockholders’ equity, excluding the net unrealized investment gains (losses) and defined benefit plans adjustment components of AOCI, net of income tax.
•Total MetLife, Inc.’s common stockholders’ equity, excluding total notable items (excludes AOCI other than FCTA): Total MetLife, Inc.’s common stockholders’ equity, excluding the net unrealized investment gains (losses), defined benefit plans adjustment components of AOCI and total notable items, net of income tax.
•Return on MetLife, Inc.’s common stockholders’ equity: net income (loss) available to MetLife, Inc.’s common shareholders divided by MetLife, Inc.'s average common stockholders’ equity.
•Adjusted return on MetLife, Inc.’s common stockholders’ equity: adjusted earnings available to common shareholders divided by MetLife, Inc.'s average common stockholders’ equity.
•Adjusted return on MetLife, Inc.’s common stockholders’ equity, excluding AOCI other than FCTA: adjusted earnings available to common shareholders divided by MetLife, Inc.'s average common stockholders’ equity, excluding AOCI other than FCTA.
•Adjusted return on MetLife, Inc.’s common stockholders’ equity, excluding total notable items (excludes AOCI other than FCTA): adjusted earnings available to common shareholders, excluding total notable items, divided by MetLife, Inc.'s average common stockholders’ equity, excluding total notable items (excludes AOCI other than FCTA).
•Allocated equity: portion of MetLife, Inc.’s common stockholders’ equity that management allocates to each of its segments and sub-segments based on local capital requirements and economic capital. Economic capital is an internally developed risk capital model, the purpose of which is to measure the risk in the business and to provide a basis upon which capital is deployed. MetLife management periodically reviews this model to ensure that it remains consistent with emerging industry practice standards and the local capital requirements; allocated equity may be adjusted if warranted by such review. Allocated equity excludes the impact of AOCI other than FCTA.
•Adjusted return on allocated equity: adjusted earnings available to common shareholders divided by allocated equity.
The above measures represent a level of equity consistent with the view that, in the ordinary course of business, we do not plan to sell most investments for the sole purpose of realizing gains or losses. 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.
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METLIFE
ACRONYMS
 
AOCIAccumulated other comprehensive income (loss)
CSEConsolidated securitization entity
DACDeferred policy acquisition costs
EMEAEurope, the Middle East and Africa
FCTAForeign currency translation adjustments
GAGeneral account
GA AUMGeneral account assets under management
GAAPAccounting principles generally accepted in the United States of America
GICsGuaranteed interest contracts
GMIBGuaranteed minimum income benefits
NAICNational Association of Insurance Commissioners
NDGLNet derivative gains (losses)
NIGLNet investment gains (losses)
NRSRONationally Recognized Statistical Rating Organizations
PABPolicyholder account balances
PBCPolicyholder benefits and claims
PDOPolicyholder dividend obligation
PRTPension risk transfers
QFSQuarterly financial supplement
TSATransition service agreement
VIEVariable interest entity
VOBAValue of business acquired
VOCRAValue of customer relationships acquired
VODAValue of distribution agreements
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