MetLife, Inc. (NYSE: MET) today announced its third quarter 2023
results.
Third Quarter Results Summary*
- Net income of $422 million, or $0.56 per share, compared to net
income of $1.1 billion, or $1.37 per share, in the third quarter of
2022.
- Adjusted earnings of $1.5 billion, or $1.97 per share, compared
to adjusted earnings of $1.1 billion, or $1.37 per share, in the
third quarter of 2022.
- Book value of $29.34 per share, down 10 percent from $32.48 per
share at September 30, 2022.
- Book value, excluding accumulated other comprehensive income
(AOCI) other than foreign currency translation adjustments (FCTA),
of $53.00 per share, up 2 percent from $52.04 per share at
September 30, 2022.
- Return on equity (ROE) of 7.0 percent.
- Adjusted ROE, excluding AOCI other than FCTA, of 14.9
percent.
- Holding company cash and liquid assets of $4.9 billion at
September 30, 2023, which is above the target cash buffer of $3.0 -
$4.0 billion.
“In the third quarter, MetLife delivered strong underlying
results that affirm our business momentum and our financial
strength," said MetLife President and CEO Michel Khalaf. "Our
unyielding focus on execution positions us to effectively navigate
the current environment while creating long-term value for our
shareholders and other stakeholders.”
*Long-Duration Targeted Improvements (LDTI)
Financial results presented in this news release reflect LDTI
accounting, pursuant to Financial Accounting Standards Board
Accounting Standards Update No. 2018-12, which became effective on
January 1, 2023. For more information, refer to "Non-GAAP and Other
Financial Disclosures."
Third Quarter 2023 Summary
($ in millions, except per share data)
Three Months Ended September
30,
2023
2022
Change
Premiums, fees and other revenues
$
13,170
$
19,335
(32)%
Net investment income
4,825
3,585
35%
Net investment gains (losses)
(927)
(411)
Net derivative gains (losses)
(1,202)
(226)
Total revenues
$
15,866
$
22,283
Adjusted premiums, fees and other
revenues
$
13,181
$
19,295
(32)%
Adjusted premiums, fees and other
revenues, excluding pension risk transfers (PRT)
$
11,720
$
10,829
8%
Market risk benefit remeasurement gains
(losses)
$
796
$
965
Net income (loss)
$
422
$
1,098
(62)%
Net income (loss) per share
$
0.56
$
1.37
(59)%
Adjusted earnings
$
1,488
$
1,100
35%
Adjusted earnings per share
$
1.97
$
1.37
44%
Adjusted earnings, excluding total notable
items
$
1,474
$
1,088
35%
Adjusted earnings, excluding total notable
items per share
$
1.95
$
1.36
43%
Book value per share
$
29.34
$
32.48
(10)%
Book value per share, excluding AOCI other
than FCTA
$
53.00
$
52.04
2%
Expense ratio
18.6%
11.6%
Direct expense ratio, excluding total
notable items related to direct expenses and PRT
12.3%
12.4%
Adjusted expense ratio, excluding total
notable items related to adjusted other expenses and PRT
20.6%
20.2%
ROE
7.0%
15.8%
Adjusted ROE, excluding AOCI other than
FCTA
14.9%
10.6%
Adjusted ROE, excluding total notable
items (excludes AOCI other than FCTA)
14.7%
10.5%
Information regarding the non-GAAP and other financial measures
included in this news release and reconciliation of the non-GAAP
financial measures to GAAP measures are in “Non-GAAP and Other
Financial Disclosures” below and in the tables that accompany this
news release.
Supplemental slides for the third quarter of 2023, titled “3Q23
Supplemental Slides,” are available on the MetLife Investor
Relations website at https://investor.metlife.com and in the Form
8-K furnished by MetLife to the U.S. Securities and Exchange
Commission in connection with this earnings release. Supplemental
information about MetLife's diversified global investment portfolio
is contained in the "3Q23 - General Account Assets Under Management
Fact Sheet," available on the above-mentioned website.
Total Company Discussion
MetLife reported third quarter 2023 premiums, fees and other
revenues of $13.2 billion, down 32 percent compared to the third
quarter of 2022. Adjusted premiums, fees and other revenues were
also $13.2 billion, down 32 percent on both a reported and constant
currency basis from the prior-year period.
Net investment income was $4.8 billion, up 35 percent from the
third quarter of 2022, driven by higher interest rates and
increases in the estimated fair value of certain securities that do
not qualify as separate accounts under GAAP. Adjusted net
investment income was $5.1 billion, up 21 percent from the
prior-year period, largely driven by higher interest rates and
higher variable investment income.
Net investment losses were $927 million, or $732 million after
tax during the quarter primarily driven by certain required
accounting adjustments associated with the pending reinsurance
transaction with Global Atlantic Financial Group announced at the
end of May 2023. Net derivative losses amounted to $1.2 billion, or
$950 million after tax during the quarter, primarily driven by
higher interest rates and changes in currency rates.
Net income was $422 million, compared to net income of $1.1
billion in the third quarter of 2022. The decline in net income
from the year-ago period was driven by the increase in net
derivative losses and the mark-to-market impact on securities that
are expected to be transferred with the pending reinsurance
transaction with Global Atlantic. On a per-share basis, net income
was $0.56, compared to net income of $1.37 in the prior-year
period.
MetLife reported adjusted earnings of $1.5 billion, up 35
percent on a reported basis, and up 33 percent on a constant
currency basis from the third quarter of 2022. On a per-share
basis, adjusted earnings were $1.97, up 44 percent from the
prior-year period.
Annual Actuarial Assumption Review and Other Insurance
Adjustments
In the third quarter of 2023, MetLife performed the company's
annual global actuarial assumption review. The actuarial assumption
review and other insurance adjustments during the quarter
positively impacted net income by $8 million and adjusted earnings
by $14 million.
Adjusted Earnings by Segment Summary*
Three Months Ended
September 30, 2023
Segment
Change from prior-year
period
Change from
prior-year period (on a constant
currency basis)
U.S.
30%
Asia
3%
5%
Latin America
25%
8%
Europe, the Middle East and Africa
(EMEA)
38%
35%
MetLife Holdings
78%
*The percentages in this table are on a reported and constant
currency basis, and do not exclude notable items.
Business Discussions
All comparisons of the results for the third quarter of 2023 in
the business discussions that follow are with the third quarter of
2022, unless otherwise noted. The third quarter of 2023 notable
items table follows the Business Discussions section of this
release.
U.S.
($ in millions)
Three Months Ended
September 30, 2023
Three Months Ended
September 30, 2022
Change
Adjusted earnings
$980
$751
30%
Adjusted premiums, fees and other
revenues
$8,344
$14,754
(43)%
Adjusted premiums, fees and other
revenues, excluding PRT
$6,883
$6,288
9%
Notable item(s)
$88
$79
- Adjusted earnings were $980 million, up 30 percent,
primarily driven by higher recurring interest margins, favorable
underwriting margins and volume growth, as well as the positive
impact of the annual actuarial assumption review.
- Excluding notable items from both periods, adjusted
earnings were up 33 percent.
- Adjusted premiums, fees and other revenues were $8.3
billion, down 43 percent, primarily due to a large pension risk
transfer transaction in the prior-year period. Excluding pension
risk transfers, adjusted premiums, fees and other revenues were up
9 percent, primarily driven by growth in Group Benefits and strong
structured settlement sales in RIS.
Group Benefits
($ in millions)
Three Months Ended
September 30, 2023
Three Months Ended
September 30, 2022
Change
Adjusted earnings
$510
$417
22%
Adjusted premiums, fees and other
revenues
$5,866
$5,707
3%
Notable item(s)
$27
$0
- Adjusted earnings were $510 million, up 22 percent,
primarily driven by favorable underwriting margins and volume
growth, as well as the positive impact of the annual actuarial
assumption review.
- Excluding notable items from both periods, adjusted
earnings were up 16 percent.
- Adjusted premiums, fees and other revenues were $5.9
billion, up 3 percent, driven by solid underlying growth across
most products, including voluntary.
- Sales were up 11 percent year to date, driven by strong
growth across both core and voluntary products, including higher
jumbo case activity.
Retirement and Income Solutions
($ in millions)
Three Months Ended
September 30, 2023
Three Months Ended
September 30, 2022
Change
Adjusted earnings
$470
$334
41%
Adjusted premiums, fees and other
revenues
$2,478
$9,047
(73)%
Adjusted premiums, fees and other
revenues, excluding PRT
$1,017
$581
75%
Notable item(s)
$61
$79
- Adjusted earnings were $470 million, up 41 percent,
largely driven by higher recurring interest margins, higher
variable investment income and volume growth, as well as the
positive impact of the annual actuarial assumption review.
- Excluding notable items from both periods, adjusted
earnings were up 60 percent.
- Adjusted premiums, fees and other revenues were $2.5
billion, down 73 percent, as a result of pension risk transfer
sales of $1.5 billion compared to $8.5 billion in the prior-year
period.
- Excluding pension risk transfers, adjusted premiums, fees
and other revenues were $1.0 billion, up 75 percent, primarily
driven by strong structured settlement sales, growth in UK
longevity reinsurance and post-retirement benefits sales.
- Sales were down 41 percent year to date, primarily due
to higher pension risk transfer and higher stable value sales in
the prior-year period.
ASIA
($ in millions)
Three Months Ended
September 30, 2023
Three Months Ended
September 30, 2022
Change
Adjusted earnings
$275
$267
3%
Adjusted earnings (constant currency)
$275
$263
5%
Adjusted premiums, fees and other
revenues
$1,743
$1,805
(3)%
Notable item(s)
$(94)
$(32)
Asia general account assets under
management (at amortized cost)
$124,684
$119,302
5%
- Adjusted earnings were $275 million, up 3 percent on a
reported basis, and up 5 percent on a constant currency basis,
largely driven by higher variable investment income, higher
recurring interest margins, as well as continued volume growth. The
notable item is related to the annual actuarial assumption
review.
- Excluding notable items from both periods, adjusted
earnings were up 23 percent.
- Adjusted premiums, fees and other revenues were $1.7
billion, down 3 percent on a reported basis, and down 1 percent on
a constant currency basis.
- Asia general account assets under management (at amortized
cost) were $124.7 billion, up 5 percent on both a reported and
constant currency basis.
- Sales were $603 million, up 5 percent on a constant
currency basis, primarily driven by strong life sales in Japan and
Korea.
LATIN AMERICA
($ in millions)
Three Months Ended
September 30, 2023
Three Months Ended
September 30, 2022
Change
Adjusted earnings
$199
$159
25%
Adjusted earnings (constant currency)
$199
$185
8%
Adjusted premiums, fees and other
revenues
$1,484
$1,125
32%
Notable item(s)
$0
$1
- Adjusted earnings were $199 million, up 25 percent on a
reported basis, and up 8 percent on a constant currency basis,
primarily driven by volume growth and favorable underwriting,
partially offset by lower recurring interest margins, largely due
to lower inflation in Chile.
- Excluding notable items from both periods, adjusted
earnings were up 26 percent.
- Adjusted premiums, fees and other revenues were $1.5
billion, up 32 percent on a reported basis, and up 16 percent on a
constant currency basis, driven by strong sales in Mexico and Chile
and solid persistency across the region.
- Sales were $378 million, up 16 percent on a constant
currency basis, driven by growth in Mexico and Chile.
EMEA
($ in millions)
Three Months Ended
September 30, 2023
Three Months Ended
September 30, 2022
Change
Adjusted earnings
$88
$64
38%
Adjusted earnings (constant currency)
$88
$65
35%
Adjusted premiums, fees and other
revenues
$588
$537
9%
Notable item(s)
$18
$15
- Adjusted earnings were $88 million, up 38 percent on a
reported basis, and up 35 percent on a constant currency basis,
primarily driven by volume growth, higher recurring interest
margins, and favorable underwriting, as well as the positive impact
of the annual actuarial assumption review and other insurance
adjustments, partially offset by higher expenses.
- Excluding notable items from both periods, adjusted
earnings were up 43 percent.
- Adjusted premiums, fees and other revenues were $588
million, up 9 percent on both a reported and constant currency
basis, primarily due to strong sales across the region.
- Sales were $201 million, up 20 percent on a constant
currency basis, driven by growth across the region.
METLIFE HOLDINGS
($ in millions)
Three Months Ended
September 30, 2023
Three Months Ended
September 30, 2022
Change
Adjusted earnings
$208
$117
78%
Adjusted premiums, fees and other
revenues
$910
$986
(8)%
Notable item(s)
$2
$(51)
- Adjusted earnings were $208 million, up 78
percent, largely driven by higher variable investment income, as
well as the positive impact of the annual actuarial assumption
review and other insurance adjustments.
- Excluding notable items from both periods, adjusted
earnings were up 23 percent.
- Adjusted premiums, fees and other revenues were
$910 million, down 8 percent.
CORPORATE & OTHER
($ in millions)
Three Months Ended
September 30, 2023
Three Months Ended
September 30, 2022
Change
Adjusted earnings
$(262)
$(258)
Notable item(s)
$0
$0
- Adjusted loss of $262 million, compared to an adjusted
loss of $258 million in the prior-year period.
INVESTMENTS
($ in millions)
Three Months Ended
September 30, 2023
Three Months Ended
September 30, 2022
Change
Adjusted net investment income
$5,056
$4,163
21%
- Adjusted net investment income was $5.1 billion, up 21
percent. Recurring investment income was $4.9 billion, compared to
$4.2 billion in the prior-year period, driven by higher interest
rates and asset growth. Variable investment income was $179
million, compared to a variable investment loss of $53 million in
the prior-year period, driven by higher private equity
returns.
THIRD QUARTER 2023 NOTABLE ITEMS
($ in millions)
Adjusted Earnings
Three Months Ended September
30, 2023
Notable Items
U.S.
Asia
Latin America
EMEA
MetLife
Holdings
Corporate &
Other
Total
Group Benefits
Retirement and Income
Solutions
Actuarial assumption review and other
insurance adjustments
$27
$61
$(94)
$0
$18
$2
$0
$14
Total notable items
$27
$61
$(94)
$0
$18
$2
$0
$14
About MetLife
MetLife, Inc. (NYSE: MET), through its subsidiaries and
affiliates (“MetLife”), is one of the world’s leading financial
services companies, providing insurance, annuities, employee
benefits and asset management to help individual and institutional
customers build a more confident future. Founded in 1868, MetLife
has operations in more than 40 markets globally and holds leading
positions in the United States, Japan, Latin America, Asia, Europe
and the Middle East. For more information, visit
www.metlife.com.
Conference Call
MetLife will hold its third quarter 2023 earnings conference
call and audio webcast on Thursday, November 2, 2023, from 9-10
a.m. (ET). The conference call will be available live via telephone
and the internet. To listen via telephone, dial 877-692-8955 (U.S.)
or 234-720-6979 (outside the U.S.). The participant access code is
2510803. To listen to the conference call via the internet, click
the link to the webcast on the MetLife Investor Relations web page
(https://investor.metlife.com). Those who want to listen to the
call via telephone or the internet should dial in or go to the
website at least 15 minutes prior to the call to register, and/or
download and install any necessary audio software.
The conference call will be available for replay via telephone
and the internet beginning at 11 a.m. (ET) on Thursday, November 2,
2023, until Thursday, November 9, 2023, at 11:59 p.m. (ET). To
listen to a replay of the conference call via telephone, dial
866-207-1041 (U.S.) or 402-970-0847 (outside the U.S.). The access
code for the replay is 5865784. To access the replay of the
conference call over the internet, visit the above-mentioned
website.
Non-GAAP and Other Financial
Disclosures
Any references in this news release
(except in this section and the tables that accompany this release)
to:
should be read as,
respectively:
(i)
net income (loss);
(i)
net income (loss) available to MetLife,
Inc.’s common shareholders;
(ii)
net income (loss) per share;
(ii)
net income (loss) available to MetLife,
Inc.’s common shareholders per diluted common share;
(iii)
adjusted earnings;
(iii)
adjusted earnings available to common
shareholders;
(iv)
adjusted earnings per share;
(iv)
adjusted earnings available to common
shareholders per diluted common share;
(v)
book value per share;
(v)
book value per common share;
(vi)
book value per share, excluding AOCI other
than FCTA;
(vi)
book value per common share, excluding
AOCI other than FCTA;
(vii)
return on equity; and
(vii)
return on MetLife, Inc.’s common
stockholders’ equity; and
(viii)
adjusted return on equity, excluding AOCI
other than FCTA.
(viii)
adjusted return on MetLife, Inc.’s common
stockholders’ equity, excluding AOCI other than FCTA.
In this news release, MetLife presents certain measures of its
performance on a consolidated and segment basis that are not
calculated in accordance with accounting principles generally
accepted in the United States of America (GAAP). MetLife believes
that these non-GAAP financial measures enhance the understanding
for MetLife and its investors of MetLife's performance by
highlighting the results of operations and the underlying
profitability drivers of the business. Segment-specific financial
measures are calculated using only the portion of consolidated
results attributable to that specific segment.
The following non-GAAP financial measures should not be viewed
as substitutes for the most directly comparable financial measures
calculated in accordance with GAAP:
Non-GAAP financial measures:
Comparable GAAP financial
measures:
(i)
total adjusted revenues;
(i)
total revenues;
(ii)
total adjusted expenses;
(ii)
total expenses;
(iii)
adjusted premiums, fees and other
revenues;
(iii)
premiums, fees and other revenues;
(iv)
adjusted premiums, fees and other
revenues, excluding PRT;
(iv)
premiums, fees and other revenues;
(v)
adjusted net investment income;
(v)
net investment income
(vi)
adjusted capitalization of deferred policy
acquisition costs (DAC);
(vi)
capitalization of DAC;
(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)
investment portfolio gains (losses);
(xiv)
net investment gains (losses);
(xv)
derivative gains (losses);
(xv)
net derivative gains (losses);
(xvi)
total MetLife, Inc.’s common stockholders’
equity, excluding AOCI other than FCTA;
(xvi)
total MetLife, Inc.’s stockholders’
equity;
(xvii)
total MetLife, Inc.’s common stockholders’
equity, excluding total notable items (excludes AOCI other than
FCTA);
(xvii)
total MetLife, Inc.’s stockholders’
equity;
(xviii)
book value per common share, excluding
AOCI other than FCTA;
(xviii)
book value per common share;
(xix)
free cash flow of all holding
companies;
(xix)
MetLife, Inc. (parent company only) net
cash provided by (used in) operating activities;
(xx)
adjusted other expenses;
(xx)
other expenses;
(xxi)
adjusted other expenses, net of adjusted
capitalization of DAC;
(xxi)
other expenses, net of capitalization of
DAC;
(xxii)
adjusted other expenses, net of adjusted
capitalization of DAC, excluding total notable items related to
adjusted other expenses;
(xxii)
other expenses, net of capitalization of
DAC;
(xxiii)
adjusted expense ratio;
(xxiii)
expense ratio;
(xxiv)
adjusted expense ratio, excluding total
notable items related to adjusted other expenses and PRT;
(xxiv)
expense ratio;
(xxv)
direct expenses;
(xxv)
other expenses;
(xxvi)
direct expenses, excluding total notable
items related to direct expenses;
(xxvi)
other expenses;
(xxvii)
direct expense ratio; and
(xxvii)
expense ratio; and
(xxviii)
direct expense ratio, excluding total
notable items related to direct expenses and PRT.
(xxviii)
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 currency exchange rates.
Reconciliations of these non-GAAP financial measures to the most
directly comparable GAAP financial measures are included in this
earnings news release and in this period’s quarterly financial
supplement, which is available at www.metlife.com.
MetLife’s definitions of non-GAAP and other financial measures
discussed in this news release may differ from those used by other
companies:
Adjusted earnings and related measures
- adjusted earnings;
- adjusted earnings available to common shareholders;
- adjusted earnings available to common shareholders on a
constant currency basis;
- adjusted earnings available to common shareholders, excluding
total notable items;
- adjusted earnings available to common shareholders, excluding
total notable items, on a constant currency basis;
- adjusted earnings available to common shareholders per diluted
common share;
- adjusted earnings available to common shareholders on a
constant currency basis 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, excluding
total notable items, on a constant currency basis per diluted
common share.
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.
Effective January 1, 2023, MetLife adopted ASU 2018-12,
Financial Services - Insurance (Topic 944): Targeted Improvements
to the Accounting for Long-Duration Contracts, as amended ("LDTI"),
with a transition date of January 1, 2021, which impacted the
calculation of adjusted earnings. Due to the adoption of LDTI, the
measurement model was simplified for DAC and value of business
acquired ("VOBA"), and most embedded derivatives were reclassified
as market risk benefits. As a result, MetLife updated its
calculation of adjusted earnings to remove certain adjustments
related to the amortization of DAC, VOBA and related intangibles
and adjusted for changes in measurement of certain guarantees.
Under LDTI, adjusted earnings excludes changes in fair value
associated with market risk benefits, changes in discount rates on
certain annuitization guarantees, losses at contract inception for
certain single premium business, and asymmetrical accounting
associated with in-force reinsurance. All periods presented herein
reflect the updated calculation of adjusted earnings.
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 (i) market volatility which
could distort trends, (ii) asymmetrical and non-economic
accounting, and (iii) revenues and costs related to divested
businesses, non-core products and certain entities required to be
consolidated under GAAP. Also, these measures exclude results of
discontinued operations under GAAP.
Market volatility can have a significant impact on MetLife’s
financial results. Adjusted earnings excludes net investment gains
(losses), net derivative gains (losses), market risk benefits
remeasurement gains (losses) and goodwill impairments. Further,
policyholder benefits and claims exclude (i) changes in the
discount rate on certain annuitization guarantees accounted for as
additional liabilities and (ii) market value adjustments.
Asymmetrical and non-economic accounting adjustments are made to
the line items indicated in calculating adjusted earnings:
- Net investment income includes 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").
- Other revenues include settlements of foreign currency earnings
hedges.
- Policyholder benefits and claims excludes (i) amortization of
basis adjustments associated with de-designated fair value hedges
of future policy benefits, (ii) inflation-indexed benefit
adjustments associated with contracts backed by inflation-indexed
investments, and (iii) non-economic losses incurred at contract
inception for certain single premium annuity business. These losses
are amortized into adjusted earnings within policyholder benefits
and claims over the estimated lives of the contracts.
- Interest credited to policyholder account balances excludes
amounts associated with periodic crediting rate adjustments based
on the total return of a contractually referenced pool of assets
and other pass-through adjustments.
Divested businesses are those that have been or will be sold or
exited by MetLife but do not meet the discontinued operations
criteria under GAAP. 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.
Other adjustments are made to the line items indicated in
calculating adjusted earnings:
- Net investment income and interest credited to policyholder
account balances excludes certain amounts related to
contractholder-directed equity securities ("Unit-linked contract
income") and ("Unit-linked contract costs").
- Other revenues include fee revenue on synthetic GICs accounted
for as freestanding derivatives.
- Other revenues exclude and other expenses include fees received
in connection with services provided under transition service
agreements.
- Other expenses exclude (i) implementation of new insurance
regulatory requirements and other costs, and (ii) acquisition,
integration and other related costs. Other expenses include (i)
deductions for net income attributable to noncontrolling interests,
and (ii) benefits accrued on synthetic GICs accounted for as
freestanding derivatives.
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, as well as
investment portfolio gains (losses) of divested businesses.
Derivative gains (losses) principally excludes earned income on
derivatives and amortization of premium on derivatives, where such
derivatives are either hedges of investments or are used to
replicate certain investments, and where such derivatives do not
qualify for hedge accounting. This earned income and amortization
of premium is reported within adjusted earnings and not within
derivative gains (losses).
Return on equity 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),
future policy benefits discount rate remeasurement gains (losses),
market risk benefits instrument-specific credit risk remeasurement
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), future policy benefits discount rate
remeasurement gains (losses), market risk benefits
instrument-specific credit risk remeasurement 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). The above measures represent a level of equity
consistent with the view that, in the ordinary course of business,
MetLife does not plan to sell most investments for the sole purpose
of realizing gains or losses.
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 expenses are
comprised of employee-related costs, third-party staffing costs,
and general and administrative expenses.
- Direct expense ratio, excluding total notable items related to
direct expenses and PRT: adjusted direct expenses, excluding total
notable items related to direct expenses, divided by adjusted
premiums, fees and other revenues, excluding PRT.
- Adjusted expense ratio: adjusted other expenses, net of
adjusted capitalization of DAC, divided by adjusted premiums, fees
and other revenues.
- Adjusted expense ratio, excluding total notable items related
to adjusted other expenses and PRT: adjusted other expenses, net of
adjusted capitalization of DAC, excluding total notable items
related to adjusted other expenses, divided by adjusted premiums,
fees and other revenues, excluding PRT.
Asia General account (GA) assets under management (GA AUM)
and related measures
Asia GA AUM is used by MetLife to describe assets in its Asia GA
investment portfolio. Asia GA AUM is stated at estimated fair value
and is comprised of Asia GA total investments, the portion of the
Asia GA investment portfolio classified within assets held-for-sale
and cash and cash equivalents, excluding policy loans,
contractholder-directed equity securities, fair value option
securities, mortgage loans originated for third parties and certain
other invested assets. Mortgage loans, net of mortgage loans
originated for third parties ("net mortgage loans") (including
commercial ("net commercial mortgage loans"), agricultural ("net
agricultural mortgage loans") and residential mortgage loans) and
real estate equity (including real estate and real estate joint
ventures) included in Asia GA AUM (at net asset value, net of
deduction for encumbering debt) have been adjusted from carrying
value to estimated fair value. At the segment level, intersegment
balances (intercompany activity, primarily related to investments
in subsidiaries, that eliminate at the MetLife consolidated level)
are excluded from Asia GA AUM.
Asia GA AUM (at amortized cost) excludes the following
adjustments: (i) unrealized gain (loss) on investments carried at
estimated fair value and (ii) adjustments from carrying value to
estimated fair value on net mortgage loans (including net
commercial mortgage loans, net agricultural mortgage loans and
residential mortgage loans) and real estate and real estate joint
ventures. Asia GA AUM (at amortized cost) is presented net of
related allowance for credit loss.
Statistical sales information:
- U.S.:
- Group Benefits: calculated using 10% of single premium deposits
and 100% of annualized full-year premiums and fees from recurring
premium policy sales of all products.
- Retirement and Income Solutions: calculated using 10% of single
premium deposits and 100% of annualized full-year premiums and fees
only from recurring premium policy sales of specialized benefit
resources and corporate-owned life insurance.
- 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.
The following additional information is relevant to an
understanding of MetLife’s performance results and outlook:
- Volume growth, as discussed in the context of business growth,
is the period over period percentage change in adjusted earnings
available to common shareholders attributable to adjusted premiums,
fees and other revenues and assets under management levels,
applying a model in which certain margins and factors are held
constant. The most significant of such items are underwriting
margins, investment margins, changes in equity market performance,
expense margins and the impact of changes in foreign currency
exchange rates.
- Holding company cash and liquid assets are held by MetLife,
Inc. collectively with other MetLife holding companies and include
cash and cash equivalents, short term investments and publicly
traded securities excluding assets that are pledged or otherwise
committed. Assets pledged or otherwise committed include amounts
received in connection with securities lending, repurchase
agreements, derivatives, regulatory deposits, the collateral
financing arrangement, funding agreements and secured borrowings,
as well as amounts held in the closed block.
- MetLife uses a measure of free cash flow to facilitate an
understanding of its ability to generate cash for reinvestment into
its businesses or use in non-mandatory capital actions. MetLife
defines free cash flow as the sum of cash available at MetLife’s
holding companies from dividends from operating subsidiaries,
expenses and other net flows of the holding companies (including
capital contributions to subsidiaries), and net contributions from
debt to be at or below target leverage ratios. This measure of free
cash flow is prior to capital actions, such as common stock
dividends and repurchases, debt reduction and mergers and
acquisitions. Free cash flow should not be viewed as a substitute
for net cash provided by (used in) operating activities calculated
in accordance with GAAP. The free cash flow ratio is typically
expressed as a percentage of annual 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. Notable items represent a positive (negative) impact
to adjusted earnings available to common shareholders.
- We refer to observable forward yield curves as of a particular
date in connection with making our estimates for future results.
The observable forward yield curves at a given time are based on
implied future interest rates along a range of interest rate
durations. This includes the 10-year U.S. Treasury rate which we
use as a benchmark rate to describe longer-term interest rates used
in our estimates for future results.
Forward-Looking Statements
This news release may contain or incorporate by reference
information that includes or is based upon forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements give expectations or
forecasts of future events and do not relate strictly to historical
or current facts. They use words and terms such as “anticipate,”
"are confident," “assume,” “believe,” “continue,” “could,”
“estimate,” “expect,” “if,” “intend,” “likely,” “may,” “plan,”
“potential,” “project,” “should,” “will,” “would,” and other words
and terms of similar meaning or that are otherwise tied to future
periods or future performance, in each case in all derivative
forms. They include statements relating to future actions,
prospective services or products, future performance or results of
current and anticipated services or products, future sales efforts,
future expenses, the outcome of contingencies such as legal
proceedings, and future trends in operations and financial
results.
Many factors determine the results of MetLife, Inc., its
subsidiaries and affiliates, and they involve unpredictable risks
and uncertainties. Our forward-looking statements depend on our
assumptions, our expectations, and our understanding of the
economic environment, but they may be inaccurate and may change.
MetLife, Inc. does not guarantee any future performance. Our
results could differ materially from those MetLife, Inc. expresses
or implies in forward-looking statements. The risks, uncertainties
and other factors, including those relating to the COVID-19
pandemic, identified in MetLife, Inc.’s filings with the U.S.
Securities and Exchange Commission, and others, may cause such
differences. These factors include:
(1)
economic condition difficulties, including
risks relating to public health, interest rates, credit spreads,
equity, real estate, obligors and counterparties, government
default, currency exchange rates, derivatives, climate change and
terrorism and security;
(2)
global capital and credit market
adversity;
(3)
credit facility inaccessibility;
(4)
financial strength or credit ratings
downgrades;
(5)
unavailability, unaffordability, or
inadequate reinsurance, including reinsurance risks that arise from
reinsurers' credit risk, and the potential shortfall or failure of
risk mitigants to protect against such risks;
(6)
statutory life insurance reserve financing
costs or limited market capacity;
(7)
legal, regulatory, and supervisory and
enforcement policy changes;
(8)
changes in tax rates, tax laws or
interpretations;
(9)
litigation and regulatory
investigations;
(10)
London Interbank Offered Rate
discontinuation and transition to alternative reference rates;
(11)
unsuccessful efforts to meet all
environmental, social, and governance standards or to enhance our
sustainability;
(12)
MetLife, Inc.’s inability to pay dividends
and repurchase common stock;
(13)
MetLife, Inc.’s subsidiaries’ inability to
pay dividends to MetLife, Inc.;
(14)
investment defaults, downgrades, or
volatility;
(15)
investment sales or lending
difficulties;
(16)
collateral or derivative-related
payments;
(17)
investment valuations, allowances, or
impairments changes;
(18)
claims or other results that differ from
our estimates, assumptions, or models;
(19)
global political, legal, or operational
risks;
(20)
business competition;
(21)
technological changes;
(22)
catastrophes;
(23)
climate changes or responses to it;
(24)
deficiencies in our closed block;
(25)
goodwill or other asset impairment, or
deferred income tax asset allowance;
(26)
impairment of VOBA, value of distribution
agreements acquired or value of customer relationships
acquired;
(27)
product guarantee volatility, costs, and
counterparty risks;
(28)
risk management failures;
(29)
insufficient protection from operational
risks;
(30)
failure to protect confidentiality and
integrity of data or other cybersecurity or disaster recovery
failures;
(31)
accounting standards changes;
(32)
excessive risk-taking;
(33)
marketing and distribution
difficulties;
(34)
pension and other postretirement benefit
assumption changes;
(35)
inability to protect our intellectual
property or avoid infringement claims;
(36)
acquisition, integration, growth,
disposition, or reorganization difficulties;
(37)
Brighthouse Financial, Inc. separation
risks;
(38)
MetLife, Inc.’s Board of Directors
influence over the outcome of stockholder votes through the voting
provisions of the MetLife Policyholder Trust; and
(39)
legal- and corporate governance-related
effects on business combinations.
MetLife, Inc. does not undertake any obligation to publicly
correct or update any forward-looking statement if MetLife, Inc.
later becomes aware that such statement is not likely to be
achieved. Please consult any further disclosures MetLife, Inc.
makes on related subjects in subsequent reports to the U.S.
Securities and Exchange Commission.
MetLife, Inc.
GAAP Interim Condensed
Consolidated Statements of Operations
(Unaudited)
(In millions)
For the Three Months
Ended
September 30,
2023
2022
Revenues
Premiums
$
11,230
$
17,332
Universal life and investment-type product
policy fees
1,334
1,275
Net investment income
4,825
3,585
Other revenues
606
728
Net investment gains (losses)
(927
)
(411
)
Net derivative gains (losses)
(1,202
)
(226
)
Total revenues
15,866
22,283
Expenses
Policyholder benefits and claims
11,130
17,603
Policyholder liability remeasurement
(gains) losses
(17
)
136
Market risk benefit remeasurement (gains)
losses
(796
)
(965
)
Interest credited to policyholder account
balances
1,658
1,014
Policyholder dividends
153
158
Amortization of DAC and VOBA
499
441
Amortization of negative VOBA
(7
)
(7
)
Interest expense on debt
265
239
Other expenses, net of capitalization of
DAC
2,447
2,249
Total expenses
15,332
20,868
Income (loss) before provision for income
tax
534
1,415
Provision for income tax expense
(benefit)
39
248
Net income (loss)
495
1,167
Less: Net income (loss) attributable to
noncontrolling interests
6
5
Net income (loss) attributable to MetLife,
Inc.
489
1,162
Less: Preferred stock dividends
67
64
Net income (loss) available to MetLife,
Inc.'s common shareholders
$
422
$
1,098
See footnotes on last page.
MetLife, Inc.
(Unaudited)
(In millions, except per share
data)
For the Three Months
Ended
September 30,
2023
2022
Reconciliation to Adjusted Earnings
Available to Common Shareholders
Earnings Per Weighted
Average
Common Share Diluted
(1)
Earnings Per Weighted
Average
Common Share Diluted
(1)
Net income (loss) available to MetLife,
Inc.'s common shareholders
$
422
$
0.56
$
1,098
$
1.37
Adjustments from net income (loss)
available to common shareholders to adjusted earnings available to
common shareholders:
Less: Net investment gains (losses)
(927
)
(1.23
)
(411
)
(0.51
)
Net derivative gains (losses)
(1,202
)
(1.59
)
(226
)
(0.28
)
Market risk benefit remeasurement gains
(losses)
796
1.05
965
1.21
Premiums
—
—
—
—
Universal life and investment-type product
policy fees
—
—
—
—
Net investment income
(231
)
(0.31
)
(578
)
(0.72
)
Other revenues
(11
)
(0.01
)
40
0.05
Policyholder benefits and claims and
policyholder dividends
69
0.10
(175
)
(0.23
)
Policyholder liability remeasurement
(gains) losses
—
—
—
—
Interest credited to policyholder account
balances
47
0.06
338
0.42
Capitalization of DAC
—
—
—
—
Amortization of DAC and VOBA
—
—
—
—
Amortization of negative VOBA
—
—
—
—
Interest expense on debt
—
—
—
—
Other expenses
(30
)
(0.04
)
(60
)
(0.07
)
Goodwill impairment
—
—
—
—
Provision for income tax (expense)
benefit
429
0.57
110
0.14
Add: Net income (loss) attributable to
noncontrolling interests
6
0.01
5
0.01
Preferred stock redemption premium
—
—
—
—
Adjusted earnings available to common
shareholders
1,488
1.97
1,100
1.37
Less: Total notable items (2)
14
0.02
12
0.01
Adjusted earnings available to common
shareholders, excluding total notable items (2)
$
1,474
$
1.95
$
1,088
$
1.36
Adjusted earnings available to common
shareholders on a constant currency basis
$
1,488
$
1.97
$
1,123
$
1.40
Adjusted earnings available to common
shareholders, excluding total notable items, on a constant currency
basis (2)
$
1,474
$
1.95
$
1,111
$
1.39
Weighted average common shares outstanding
- diluted
755.5
800.7
See footnotes on last page.
MetLife, Inc.
(Unaudited)
(In millions)
For the Three Months
Ended
September 30,
2023
2022
Premiums, Fees and Other
Revenues
Premiums, fees and other revenues
$
13,170
$
19,335
Less: Adjustments to premiums, fees and
other revenues:
Asymmetrical and non-economic
accounting
—
—
Other adjustments
(11
)
40
Divested businesses
—
—
Adjusted premiums, fees and other
revenues
$
13,181
$
19,295
Adjusted premiums, fees and other
revenues, on a constant currency basis
$
13,181
$
19,394
Less: PRT (3)
1,461
8,466
Adjusted premiums, fees and other
revenues, excluding PRT, on a constant currency basis
$
11,720
$
10,928
Net Investment Income
Net investment income
$
4,825
$
3,585
Less: Adjustments to net investment
income
Investment hedge adjustments
(232
)
(252
)
Unit-linked contract income
4
(321
)
Other adjustments
(3
)
(5
)
Divested businesses
—
—
Adjusted net investment income
$
5,056
$
4,163
Revenues and Expenses
Total revenues
$
15,866
$
22,283
Less: Adjustments to total revenues:
Net investment gains (losses)
(927
)
(411
)
Net derivative gains (losses)
(1,202
)
(226
)
Investment hedge adjustments
(232
)
(252
)
Asymmetrical and non-economic
accounting
—
—
Unit-linked contract income
4
(321
)
Other adjustments
(14
)
35
Divested businesses
—
—
Total adjusted revenues
$
18,237
$
23,458
Total expenses
$
15,332
$
20,868
Less: Adjustments to total expenses:
Market risk benefit remeasurement (gains)
losses
(796
)
(965
)
Goodwill impairment
—
—
Asymmetrical and non-economic
accounting
(49
)
205
Market volatility
(64
)
(66
)
Unit-linked contract costs
(3
)
(302
)
Other adjustments
21
47
Divested businesses
9
13
Total adjusted expenses
$
16,214
$
21,936
See footnotes on last page.
MetLife, Inc.
(Unaudited)
(In millions, except per share
and ratio data)
For the Three Months
Ended
September 30,
2023
2022
Expense Detail and Ratios
Reconciliation of Capitalization of DAC
to Adjusted Capitalization of DAC
Capitalization of DAC
$
(742
)
$
(626
)
Less: Divested businesses
—
—
Adjusted capitalization of DAC
$
(742
)
$
(626
)
Reconciliation of Other Expenses to
Adjusted Other Expenses
Other expenses
$
3,189
$
2,875
Less: Other adjustments
21
47
Less: Divested businesses
9
13
Adjusted other expenses
$
3,159
$
2,815
Other Detail and Ratios
Other expenses, net of capitalization of
DAC
$
2,447
$
2,249
Premiums, fees and other revenues
$
13,170
$
19,335
Expense ratio
18.6
%
11.6
%
Direct expenses
$
1,447
$
1,342
Less: Total notable items related to
direct expenses (2)
—
—
Direct expenses, excluding total notable
items related to direct expenses (2)
$
1,447
$
1,342
Adjusted other expenses
$
3,159
$
2,815
Adjusted capitalization of DAC
(742
)
(626
)
Adjusted other expenses, net of adjusted
capitalization of DAC
2,417
2,189
Less: Total notable items related to
adjusted other expenses (2)
—
—
Adjusted other expenses, net of adjusted
capitalization of DAC, excluding total notable items related to
adjusted other expenses (2)
$
2,417
$
2,189
Adjusted premiums, fees and other
revenues
$
13,181
$
19,295
Less: PRT
1,461
8,466
Adjusted premiums, fees and other
revenues, excluding PRT
$
11,720
$
10,829
Direct expense ratio
11.0
%
7.0
%
Direct expense ratio, excluding total
notable items related to direct expenses and PRT (2)
12.3
%
12.4
%
Adjusted expense ratio
18.3
%
11.3
%
Adjusted expense ratio, excluding total
notable items related to adjusted other expenses and PRT (2)
20.6
%
20.2
%
See footnotes on last page.
MetLife, Inc.
(Unaudited)
(In millions, except per share
data)
September 30,
Equity Details
2023
2022
Total MetLife, Inc.'s stockholders'
equity
$
25,658
$
29,389
Less: Preferred stock
3,818
3,818
MetLife, Inc.'s common stockholders'
equity
21,840
25,571
Less: Net unrealized investment gains
(losses), net of income tax
(26,548
)
(21,652
)
Future policy benefits discount rate
remeasurement gain (losses), net of income tax
10,245
7,612
Market risk benefits instrument-specific
credit risk remeasurement gains (losses), net of income tax
(4
)
174
Defined benefit plans adjustment, net of
income tax
(1,308
)
(1,536
)
Total MetLife, Inc.'s common stockholders'
equity, excluding AOCI other than FCTA
39,455
40,973
Less: Accumulated year-to-date total
notable items (2)
14
89
Total MetLife, Inc.'s common stockholders'
equity, excluding total notable items (excludes AOCI other than
FCTA) (2)
$
39,441
$
40,884
September 30,
Book Value (4)
2023
2022
Book value per common share
$
29.34
$
32.48
Less: Net unrealized investment gains
(losses), net of income tax
(35.66
)
(27.50
)
Future policy benefits discount rate
remeasurement gain (losses), net of income tax
13.77
9.67
Market risk benefits instrument-specific
credit risk remeasurement gains (losses), net of income tax
(0.01
)
0.22
Defined benefit plans adjustment, net of
income tax
(1.76
)
(1.95
)
Book value per common share, excluding
AOCI other than FCTA
$
53.00
$
52.04
Common shares outstanding, end of period
(5)
744.4
787.3
For the Three Months
Ended
September 30, (6)
Return on Equity
2023
2022
Return on MetLife, Inc.'s:
Common stockholders' equity
7.0
%
15.8
%
Adjusted return on MetLife, Inc.'s:
Common stockholders' equity
24.7
%
15.9
%
Common stockholders' equity, excluding
AOCI other than FCTA
14.9
%
10.6
%
Common stockholders' equity, excluding
total notable items (excludes AOCI other than FCTA) (2)
14.7
%
10.5
%
For the Three Months
Ended
September 30,
Average Common Stockholders'
Equity
2023
2022
Average common stockholders' equity
$
24,142
$
27,749
Average common stockholders' equity,
excluding AOCI other than FCTA
$
40,001
$
41,343
Average common stockholders' equity,
excluding total notable items (excludes AOCI other than FCTA)
(2)
$
39,994
$
41,260
See footnotes on last page.
MetLife, Inc.
Adjusted Earnings Available to
Common Shareholders
(Unaudited)
(In millions)
For the Three Months
Ended
September 30,
2023
2022
U.S. (3):
Adjusted earnings available to common
shareholders
$
980
$
751
Less: Total notable items (2)
88
79
Adjusted earnings available to common
shareholders, excluding total notable items (2)
$
892
$
672
Adjusted premiums, fees and other
revenues
$
8,344
$
14,754
Less: PRT
1,461
8,466
Adjusted premiums, fees and other
revenues, excluding PRT
$
6,883
$
6,288
Group Benefits (3):
Adjusted earnings available to common
shareholders
$
510
$
417
Less: Total notable items (2)
27
—
Adjusted earnings available to common
shareholders, excluding total notable items (2)
$
483
$
417
Adjusted premiums, fees and other
revenues
$
5,866
$
5,707
Retirement & Income Solutions (3):
Adjusted earnings available to common
shareholders
$
470
$
334
Less: Total notable items (2)
61
79
Adjusted earnings available to common
shareholders, excluding total notable items (2)
$
409
$
255
Adjusted premiums, fees and other
revenues
$
2,478
$
9,047
Less: PRT
1,461
8,466
Adjusted premiums, fees and other
revenues, excluding PRT
$
1,017
$
581
See footnotes on last page.
MetLife, Inc.
Adjusted Earnings Available to
Common Shareholders (Continued)
(Unaudited)
(In millions)
For the Three Months
Ended
September 30,
2023
2022
Asia:
Adjusted earnings available to common
shareholders
$
275
$
267
Less: Total notable items (2)
(94
)
(32
)
Adjusted earnings available to common
shareholders, excluding total notable items (2)
$
369
$
299
Adjusted earnings available to common
shareholders on a constant currency basis
$
275
$
263
Adjusted earnings available to common
shareholders, excluding total notable items, on a constant currency
basis (2)
$
369
$
295
Adjusted premiums, fees and other
revenues
$
1,743
$
1,805
Adjusted premiums, fees and other
revenues, on a constant currency basis
$
1,743
$
1,752
Latin America:
Adjusted earnings available to common
shareholders
$
199
$
159
Less: Total notable items (2)
—
1
Adjusted earnings available to common
shareholders, excluding total notable items (2)
$
199
$
158
Adjusted earnings available to common
shareholders on a constant currency basis
$
199
$
185
Adjusted earnings available to common
shareholders, excluding total notable items, on a constant currency
basis (2)
$
199
$
184
Adjusted premiums, fees and other
revenues
$
1,484
$
1,125
Adjusted premiums, fees and other
revenues, on a constant currency basis
$
1,484
$
1,277
EMEA:
Adjusted earnings available to common
shareholders
$
88
$
64
Less: Total notable items (2)
18
15
Adjusted earnings available to common
shareholders, excluding total notable items (2)
$
70
$
49
Adjusted earnings available to common
shareholders on a constant currency basis
$
88
$
65
Adjusted earnings available to common
shareholders, excluding total notable items, on a constant currency
basis (2)
$
70
$
50
Adjusted premiums, fees and other
revenues
$
588
$
537
Adjusted premiums, fees and other
revenues, on a constant currency basis
$
588
$
537
MetLife Holdings (3):
Adjusted earnings available to common
shareholders
$
208
$
117
Less: Total notable items (2)
2
(51
)
Adjusted earnings available to common
shareholders, excluding total notable items (2)
$
206
$
168
Adjusted premiums, fees and other
revenues
$
910
$
986
Corporate & Other (3):
Adjusted earnings available to common
shareholders
$
(262
)
$
(258
)
Less: Total notable items (2)
—
—
Adjusted earnings available to common
shareholders, excluding total notable items (2)
$
(262
)
$
(258
)
Adjusted premiums, fees and other
revenues
$
112
$
88
See footnotes on last page.
MetLife, Inc.
(Unaudited)
For the Three Months
Ended
September 30,
2023
2022
Variable investment income (post-tax,
in millions) (7)
U.S.
Group Benefits
$
1
$
(1
)
Retirement and Income Solutions
35
(35
)
Total U.S.
36
(36
)
Asia
37
(18
)
Latin America
5
—
EMEA
—
—
MetLife Holdings
35
(21
)
Corporate & Other
28
33
Total variable investment income
$
141
$
(42
)
Segments: U.S., Asia, Latin
America and EMEA (8)
Capital Deployed
Value of New Business
Internal Rate of
Return
Payback (Years)
Value of new business ($ in
billions)
2022
$
3.7
$
2.3
17
%
6
2021
$
2.8
$
1.9
17
%
6
2020
$
3.2
$
1.9
17
%
6
2019
$
3.8
$
1.8
15
%
7
2018
$
3.8
$
2.1
15
%
7
See footnotes on last page.
MetLife, Inc.
(Unaudited)
September 30, 2023
Cash & Capital (9), (10) (in
billions)
Holding Companies Cash & Liquid
Assets
$
4.9
Footnotes
(1)
Adjusted earnings available to
common shareholders, excluding total notable items, per diluted
common share is calculated on a standalone basis and may not equal
(i) adjusted earnings available to common shareholders per diluted
common share, less (ii) total notable items per diluted common
share.
(2)
Notable items reflect the
unexpected impact of events that affect MetLife’s results, but that
were unknown and that MetLife could not anticipate when it devised
its business plan. Notable items also include certain items
regardless of the extent anticipated in the business plan, to help
investors have a better understanding of MetLife's results and to
evaluate and forecast those results. Notable items can affect
MetLife’s results either positively or negatively.
(3)
Results on a constant currency
basis are not included as constant currency impact is not
significant.
(4)
Book values exclude $3,818
million of equity related to preferred stock at both September 30,
2023 and 2022.
(5)
There were share repurchases of
$0.8 billion for the three months ended September 30, 2023. There
were share repurchases of approximately $250 million in October
2023.
(6)
Annualized using quarter-to-date
results.
(7)
Assumes a 21% tax rate.
(8)
Excludes MetLife Holdings; Value
of New Business is the present value of future profits net of the
cost of capital and time value of guarantees from new sales.
(9)
The total U.S. statutory adjusted
capital is expected to be approximately $17.7 billion at September
30, 2023, up 2% from June 30, 2023. This balance includes MetLife,
Inc.'s principal U.S. insurance subsidiaries, excluding American
Life Insurance Company.
(10)
The expected Japan solvency
margin ratio as of September 30, 2023 is approximately 600%.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231101374378/en/
For Media: Dave Franecki (973) 264-7465 For Investors: John Hall
(212) 578-7888
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