8-K
Metlife Inc (MET)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): May 3, 2023
METLIFE, INC.
(Exact Name of Registrant as Specified in Its Charter)
Delaware
(State or Other Jurisdiction of Incorporation)
| 1-15787 | 13-4075851 | |||
|---|---|---|---|---|
| (Commission File Number) | (IRS Employer Identification No.) | |||
| 200 Park Avenue, | New York, | NY | 10166-0188 | |
| (Address of Principal Executive Offices) | (Zip Code) |
(212) 578-9500
(Registrant’s Telephone Number, Including Area Code)
N/A
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | | --- | --- || ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | | --- | --- || ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | | --- | --- || ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | | --- | --- |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common Stock, par value $0.01 | MET | New York Stock Exchange |
| Floating Rate Non-Cumulative Preferred Stock,<br>Series A, par value $0.01 | MET PRA | New York Stock Exchange |
| Depositary Shares, each representing a 1/1,000th<br>interest in a share of 5.625% Non-Cumulative <br>Preferred Stock, Series E | MET PRE | New York Stock Exchange |
| Depositary Shares, each representing a 1/1,000th interest in a share of 4.75% Non-Cumulative Preferred Stock, Series F | MET PRF | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On May 3, 2023, MetLife, Inc. issued (i) a news release announcing its results for the quarter ended March 31, 2023 (the “Earnings Release”), a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference, (ii) a Quarterly Financial Supplement for the quarter ended March 31, 2023 (the “Quarterly Financial Supplement”), a copy of which is attached hereto as Exhibit 99.2 and is incorporated herein by reference and (iii) a fact sheet setting forth its total assets under management as of March 31, 2023 (the "Total AUM Fact Sheet"), a copy of which is attached hereto as Exhibit 99.3 and is incorporated herein by reference.
The Earnings Release and the Quarterly Financial Supplement are furnished and not filed pursuant to instruction B.2 of Form 8-K. The foregoing description of the Total AUM Fact Sheet is not complete and is qualified in its entirety by reference to the Total AUM Fact Sheet, which is filed as Exhibit 99.3.
Item 7.01 Regulation FD Disclosure.
On May 3, 2023, MetLife, Inc. issued a supplemental slide presentation for the quarter ended March 31, 2023 (the “Supplemental Slides”), a copy of which is attached hereto as Exhibit 99.4 and is incorporated herein by reference. The slides highlight information in MetLife, Inc.’s Earnings Release and Quarterly Financial Supplement, as well as other prior public disclosures. The Supplemental Slides are furnished and not filed pursuant to instruction B.2 of Form 8-K.
Item 8.01 Other Events.
On May 3, 2023, MetLife, Inc. announced that its Board of Directors approved a new $3 billion authorization to repurchase its common stock.
The text of Item 2.02 above with respect to the Total AUM Fact Sheet is incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits.
| 99.1 | News release of MetLife, Inc., dated May 3, 2023, announcing its results for the quarter ended March 31, 2023 | | --- | --- || 99.2 | Quarterly Financial Supplement for the quarter ended March 31, 2023 | | --- | --- || 99.3 | Total AUM Fact Sheet as of March 31, 2023 | | --- | --- || 99.4 | Supplemental Slides for the quarter ended March 31, 2023 | | --- | --- | | 101 | Pursuant to Rule 406 of Regulation S-T, the cover page is formatted in Inline XBRL (Inline eXtensible Business Reporting Language) | | --- | --- || 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document and included in Exhibit 101) | | --- | --- |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| METLIFE, INC. | ||
|---|---|---|
| By: | /s/ Tamara L. Schock | |
| Name: | Tamara L. Schock | |
| Title: | Executive Vice President and<br>Chief Accounting Officer |
Date: May 3, 2023
4
Document
Exhibit 99.1
For Immediate Release İ Global Communications İ MetLife, Inc.
METLIFE ANNOUNCES FIRST QUARTER 2023 RESULTS
NEW YORK, May 3, 2023 - MetLife, Inc. (NYSE: MET) today announced its first quarter 2023 results.
First Quarter Results Summary*
•Net income of $14 million, or $0.02 per share, compared to net income of $1.6 billion, or $1.89 per share, in the first quarter of 2022.
•Adjusted earnings of $1.2 billion, or $1.52 per share, compared to adjusted earnings of $1.7 billion, or $2.04 per share, in the first quarter of 2022.
•Book value of $36.89 per share, down 22 percent from $47.39 per share at March 31, 2022.
•Book value, excluding accumulated other comprehensive income (AOCI) other than foreign currency translation adjustments (FCTA), of $53.83 per share, up 2 percent from $52.97 per share at March 31, 2022.
•Return on equity (ROE) of 0.2 percent.
•Adjusted ROE, excluding AOCI other than FCTA, of 11.3 percent.
•Holding company cash and liquid assets of $4.2 billion at March 31, 2023, which is above the target cash buffer of $3.0 - $4.0 billion.
Commenting on the company’s results, MetLife President and CEO Michel Khalaf said: “While 2023 is shaping up to be another year of uncertainty, the successful actions we’ve taken to focus, simplify and differentiate our business are reflected in this quarter’s strong underlying business fundamentals. We remain focused on managing risk across economic cycles and controlling what we can to deliver for our shareholders and our stakeholders.”
*Long-Duration Targeted Improvements (LDTI)
Financial results presented in this news release reflect LDTI accounting, pursuant to Financial Accounting Standards Board Accounting Standards Update No. 2018-12, which became effective on January 1, 2023. For more information, refer to "Non-GAAP and Other Financial Disclosures."
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First Quarter 2023 Summary
| ($ in millions, except per share data) | Three months ended<br>March 31, | ||||||
|---|---|---|---|---|---|---|---|
| 2023 | 2022 | Change | |||||
| Premiums, fees and other revenues | $ | 11,517 | $ | 12,589 | (9)% | ||
| Net investment income | 4,645 | 4,284 | 8% | ||||
| Net investment gains (losses) | (684) | (517) | |||||
| Net derivative gains (losses) | (90) | (951) | |||||
| Total revenues | $ | 15,388 | $ | 15,405 | |||
| Adjusted premiums, fees and other revenues | $ | 11,520 | $ | 12,487 | (8)% | ||
| Adjusted premiums, fees and other revenues, excluding pension risk transfers (PRT) | $ | 11,541 | $ | 11,229 | 3% | ||
| Net income (loss) | $ | 14 | $ | 1,571 | (99)% | ||
| Net income (loss) per share | $ | 0.02 | $ | 1.89 | (99)% | ||
| Adjusted earnings | $ | 1,184 | $ | 1,695 | (30)% | ||
| Adjusted earnings per share | $ | 1.52 | $ | 2.04 | (25)% | ||
| Adjusted earnings, excluding total notable items | $ | 1,184 | $ | 1,695 | (30)% | ||
| Adjusted earnings, excluding total notable items per share | $ | 1.52 | $ | 2.04 | (25)% | ||
| Book value per share | $ | 36.89 | $ | 47.39 | (22)% | ||
| Book value per share, excluding AOCI other than FCTA | $ | 53.83 | $ | 52.97 | 2% | ||
| Expense ratio | 20.3 | % | 18.0 | % | |||
| Direct expense ratio, excluding total notable items related to direct expenses and PRT | 12.0 | % | 11.9 | % | |||
| Adjusted expense ratio, excluding total notable items related to adjusted other expenses and PRT | 20.0 | % | 19.5 | % | |||
| ROE | 0.2 | % | 14.9 | % | |||
| Adjusted ROE, excluding AOCI other than FCTA | 11.3 | % | 15.7 | % | |||
| Adjusted ROE, excluding total notable items (excludes AOCI other than FCTA) | 11.3 | % | 15.7 | % |
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 first quarter of 2023, titled “1Q23 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 "1Q23 - General Account Assets Under Management Fact Sheet," available on the above-mentioned website.
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Total Company Discussion
MetLife reported first quarter 2023 premiums, fees and other revenues of $11.5 billion, down 9 percent from the first quarter of 2022. Adjusted premiums, fees and other revenues were $11.5 billion, down 8 percent on a reported basis and down 6 percent on a constant currency basis from the prior-year period, which included $1.3 billion of pension risk transfer sales.
Net investment income was $4.6 billion, up 8 percent from the first quarter of 2022, driven by increases in the estimated fair value of certain securities which do not qualify as separate accounts under GAAP. Adjusted net investment income was $4.6 billion, down 8 percent from the prior-year period, largely driven by lower variable investment income.
Net investment losses were $684 million, primarily driven by the opportunistic repositioning of fixed maturity securities in Japan and the strengthening of mortgage loan allowance for credit loss in the quarter, reflecting the current environment. Net derivative losses amounted to $90 million, or $71 million after tax during the quarter, driven by a strengthening of equity markets.
Net income was $14 million, primarily driven by net investment losses, compared to net income of $1.6 billion in the first quarter of 2022. On a per share basis, net income was $0.02, compared to net income of $1.89 in the prior-year period.
MetLife reported adjusted earnings of $1.2 billion, down 30 percent on a reported basis and down 29 percent on a constant currency basis from the first quarter of 2022. On a per share basis, adjusted earnings were $1.52, down 25 percent from the prior-year period.
Adjusted Earnings by Segment Summary*
| Three months ended <br>March 31, 2023 | ||
|---|---|---|
| Segment | Change from<br>prior-year period | Change from<br>prior-year<br>period (on a<br>constant<br>currency<br>basis) |
| U.S. | 7% | |
| Asia | (53)% | (52)% |
| Latin America | 59% | 51% |
| Europe, the Middle East and Africa (EMEA) | 9% | 30% |
| MetLife Holdings | (55)% |
*The percentages in this table are on a reported and constant currency basis.
Business Discussions
All comparisons of the results for the first quarter of 2023 in the business discussions that follow are with the first quarter of 2022, unless otherwise noted. There were no notable items in the first quarter of 2023, as indicated in the notable items table which follows the Business Discussions section of this release.
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U.S.
| ($ in millions) | Three months ended March 31, 2023 | Three months ended March 31, 2022 |
|---|---|---|
| Adjusted earnings | $707 | 663 |
| Adjusted premiums, fees and other revenues | $6,697 | 7,729 |
| Adjusted premiums, fees and other revenues, excluding PRT | $6,718 | 6,471 |
| Notable item(s) | $0 | 0 |
All values are in US Dollars.
•Adjusted earnings were $707 million, up 7 percent, primarily driven by favorable underwriting, recurring interest margins, and volume growth, partially offset by lower variable investment income.
•Adjusted premiums, fees and other revenues were $6.7 billion, down 13 percent, driven by higher pension risk transfer sales in the prior-year period, partially offset by solid growth in Group Benefits.
Group Benefits
| ($ in millions) | Three months ended March 31, 2023 | Three months ended March 31, 2022 |
|---|---|---|
| Adjusted earnings | $307 | 117 |
| Adjusted premiums, fees and other revenues | $6,049 | 6,004 |
| Notable item(s) | $0 | 0 |
All values are in US Dollars.
•Adjusted earnings were $307 million, up 162 percent, primarily driven by favorable underwriting and volume growth.
•Adjusted premiums, fees and other revenues were $6.0 billion, up 1 percent, driven by solid underlying growth across most products, including voluntary, mostly offset by higher premiums in the prior-year period related to participating life contracts. Premiums, fees and other revenues from participating life contracts can fluctuate with claims experience.
•Sales were up 15 percent, driven by strong growth across all market segments.
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Retirement and Income Solutions
| ($ in millions) | Three months ended March 31, 2023 | Three months ended March 31, 2022 |
|---|---|---|
| Adjusted earnings | $400 | 546 |
| Adjusted premiums, fees and other revenues | $648 | 1,725 |
| Adjusted premiums, fees and other revenues, excluding PRT | $669 | 467 |
| Notable item(s) | $0 | 0 |
All values are in US Dollars.
•Adjusted earnings were $400 million, down 27 percent, largely driven by lower variable investment income, partially offset by recurring interest margins.
•Adjusted premiums, fees and other revenues were $648 million, down 62 percent, largely driven by higher pension risk transfer sales in the prior-year period.
•Excluding pension risk transfers, adjusted premiums, fees and other revenues were $669 million, up 43 percent, primarily driven by strong structured settlement sales and growth in UK longevity reinsurance.
•Sales were down 54 percent, primarily due to lower stable value and pension risk transfer sales, partially offset by strong structured settlement sales.
ASIA
| ($ in millions) | Three months ended March 31, 2023 | Three months ended March 31, 2022 |
|---|---|---|
| Adjusted earnings | $280 | 599 |
| Adjusted earnings (constant currency) | $280 | 581 |
| Adjusted premiums, fees and other revenues | $1,794 | 1,976 |
| Notable item(s) | $0 | 0 |
| Asia general account assets under management (at amortized cost) | $127,120 | 129,935 |
All values are in US Dollars.
•Adjusted earnings were $280 million, down 53 percent on a reported basis, and down 52 percent on a constant currency basis, largely driven by lower variable investment income.
•Adjusted premiums, fees and other revenues were $1.8 billion, down 9 percent, and essentially flat on a constant currency basis.
•Asia general account assets under management (at amortized cost) were $127.1 billion, down 2 percent, and up 3 percent on a constant currency basis.
•Sales were $653 million, up 18 percent on a constant currency basis, driven by strong sales across the region, particularly in Japan.
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LATIN AMERICA
| ($ in millions) | Three months ended March 31, 2023 | Three months ended March 31, 2022 |
|---|---|---|
| Adjusted earnings | $215 | 135 |
| Adjusted earnings (constant currency) | $215 | 142 |
| Adjusted premiums, fees and other revenues | $1,372 | 1,036 |
| Notable item(s) | $0 | 0 |
All values are in US Dollars.
•Adjusted earnings were $215 million, up 59 percent on a reported basis, and up 51 percent on a constant currency basis, primarily driven by favorable underwriting, recurring interest margins and volume growth. Lower variable investment income was a partial offset.
•Adjusted premiums, fees and other revenues were $1.4 billion, up 32 percent, and up 26 percent on a constant currency basis, driven by strong sales and solid persistency across the region.
•Sales were $398 million, up 36 percent on a constant currency basis, driven by growth across the region.
EMEA
| ($ in millions) | Three months ended March 31, 2023 | Three months ended March 31, 2022 |
|---|---|---|
| Adjusted earnings | $60 | 55 |
| Adjusted earnings (constant currency) | $60 | 46 |
| Adjusted premiums, fees and other revenues | $581 | 601 |
| Notable item(s) | $0 | 0 |
All values are in US Dollars.
•Adjusted earnings were $60 million, up 9 percent on a reported basis, and up 30 percent on a constant currency basis, driven by higher recurring interest margins and volume growth.
•Adjusted premiums, fees and other revenues were $581 million, down 3 percent, and up 5 percent on a constant currency basis, primarily due to strong sales across the region.
•Sales were $266 million, up 27 percent on a constant currency basis, driven by growth across the region.
METLIFE HOLDINGS
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| ($ in millions) | Three months ended March 31, 2023 | Three months ended March 31, 2022 |
|---|---|---|
| Adjusted earnings | $158 | 348 |
| Adjusted premiums, fees and other revenues | $959 | 1,048 |
| Notable item(s) | $0 | 0 |
All values are in US Dollars.
•Adjusted earnings were $158 million, down 55 percent, largely driven by lower variable investment income.
•Adjusted premiums, fees and other revenues were $959 million, down 8 percent.
CORPORATE & OTHER
| ($ in millions) | Three months ended March 31, 2023 | Three months ended March 31, 2022 |
|---|---|---|
| Adjusted earnings | $(236) | (105) |
| Notable item(s) | $0 | 0 |
All values are in US Dollars.
•Adjusted loss of $236 million, compared to an adjusted loss of $105 million in the prior-year period, largely driven by lower variable investment income.
INVESTMENTS
| ($ in millions) | Three months ended March 31, 2023 | Three months ended March 31, 2022 | Change |
|---|---|---|---|
| Adjusted net investment income | $4,606 | $4,992 | (8)% |
•Adjusted net investment income was $4.6 billion, down 8 percent. Variable investment income was a loss of $44 million, compared to variable investment income of $1.2 billion in the prior-year period, primarily driven by returns on private equity and real estate equity funds. Higher interest rates and asset growth were partial offsets.
FIRST QUARTER 2023 NOTABLE ITEMS
| ( in millions) | Adjusted Earnings | |||||||
|---|---|---|---|---|---|---|---|---|
| Notable Items | U.S. | Asia | Latin<br>America | EMEA | MetLife<br>Holdings | Corporate<br>&<br>Other | Total | |
| Total notable items | 0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
All values are in US Dollars.
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Contacts: For Media: Brian Blaser (212) 578-2415
For Investors: John Hall (212) 578-7888
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 first quarter 2023 earnings conference call and audio webcast on Thursday, May 4, 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, May 4, 2023, until Thursday, May 11, 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 5649808. 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 |
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| (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; |
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| (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
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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 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.
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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
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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 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 which are actively managed and stated at estimated fair value. Asia GA AUM 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 and certain other invested assets, as substantially all of these assets are not actively managed in MetLife Asia's GA investment portfolio. Mortgage loans (including commercial, agricultural and residential) and real estate equity (including real estate and real estate joint ventures) included in Asia GA AUM (at net asset value, net of deduction for encumbering debt) have been adjusted from carrying value to estimated fair value. At the segment level, intersegment balances (intercompany activity, primarily related to investments in subsidiaries, that eliminate at the MetLife consolidated level) are excluded from Asia GA AUM.
Asia GA AUM (at amortized cost) excludes the following adjustments: (i) unrealized gain (loss) on investments carried at estimated fair value and (ii) adjustments from carrying value to estimated fair value on mortgage loans (including commercial, agricultural and residential) and real estate and real estate joint ventures. Asia GA AUM (at amortized cost) is presented net of related allowance for credit loss.
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.
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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
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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;
(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, VODA or VOCRA;
(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 statements 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.
Page 15 of 24
| MetLife, Inc. | ||||
|---|---|---|---|---|
| GAAP Interim Condensed Consolidated Statements of Operations | ||||
| (Unaudited) | ||||
| (In millions) | ||||
| For the Three Months Ended | ||||
| March 31, | ||||
| 2023 | 2022 | |||
| Revenues | ||||
| Premiums | $ | 9,589 | $ | 10,617 |
| Universal life and investment-type product policy fees | 1,289 | 1,312 | ||
| Net investment income | 4,645 | 4,284 | ||
| Other revenues | 639 | 660 | ||
| Net investment gains (losses) | (684) | (517) | ||
| Net derivative gains (losses) | (90) | (951) | ||
| Total revenues | 15,388 | 15,405 | ||
| Expenses | ||||
| Policyholder benefits and claims | 9,872 | 11,174 | ||
| Policyholder liability remeasurement (gains) losses | (9) | (41) | ||
| Market risk benefit remeasurement (gains) losses | 188 | (1,440) | ||
| Interest credited to policyholder account balances | 1,864 | 626 | ||
| Policyholder dividends | 159 | 199 | ||
| Amortization of DAC and VOBA | 470 | 475 | ||
| Amortization of negative VOBA | (7) | (8) | ||
| Interest expense on debt | 255 | 225 | ||
| Other expenses, net of capitalization of DAC | 2,339 | 2,260 | ||
| Total expenses | 15,131 | 13,470 | ||
| Income (loss) before provision for income tax | 257 | 1,935 | ||
| Provision for income tax expense (benefit) | 172 | 296 | ||
| Net income (loss) | 85 | 1,639 | ||
| Less: Net income (loss) attributable to noncontrolling interests | 5 | 5 | ||
| Net income (loss) attributable to MetLife, Inc. | 80 | 1,634 | ||
| Less: Preferred stock dividends | 66 | 63 | ||
| Net income (loss) available to MetLife, Inc.'s common shareholders | $ | 14 | $ | 1,571 |
| See footnotes on last page. |
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| MetLife, Inc. | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| (Unaudited) | |||||||||
| (In millions, except per share data) | |||||||||
| For the Three Months Ended | |||||||||
| March 31, | |||||||||
| 2023 | 2022 | ||||||||
| Reconciliation to Adjusted Earnings Available to Common Shareholders | Earnings Per <br>Weighted Average <br>Common Share Diluted (1) | Earnings Per <br>Weighted Average <br>Common Share Diluted (1) | |||||||
| Net income (loss) available to MetLife, Inc.'s common shareholders | $ | 14 | $ | 0.02 | $ | 1,571 | $ | 1.89 | |
| Adjustments from net income (loss) available to common shareholders to adjusted earnings available to common shareholders: | |||||||||
| Less: Net investment gains (losses) | (684) | (0.88) | (517) | (0.62) | |||||
| Net derivative gains (losses) | (90) | (0.12) | (951) | (1.15) | |||||
| Market risk benefit remeasurement gains (losses) | (188) | (0.24) | 1,440 | 1.73 | |||||
| Premiums | — | — | 41 | 0.05 | |||||
| Universal life and investment-type product policy fees | — | — | 11 | 0.01 | |||||
| Net investment income | 39 | 0.05 | (708) | (0.85) | |||||
| Other revenues | (3) | — | 50 | 0.06 | |||||
| Policyholder benefits and claims and policyholder dividends | (70) | (0.09) | (154) | (0.18) | |||||
| Interest credited to policyholder account balances | (322) | (0.41) | 565 | 0.69 | |||||
| Capitalization of DAC | — | — | 11 | 0.01 | |||||
| Amortization of DAC and VOBA | — | — | (8) | (0.01) | |||||
| Amortization of negative VOBA | — | — | — | — | |||||
| Interest expense on debt | — | — | — | — | |||||
| Other expenses | (27) | (0.03) | (79) | (0.10) | |||||
| Goodwill impairment | — | — | — | — | |||||
| Provision for income tax (expense) benefit | 180 | 0.23 | 180 | 0.22 | |||||
| Add: Net income (loss) attributable to noncontrolling interests | 5 | 0.01 | 5 | 0.01 | |||||
| Preferred stock redemption premium | — | — | — | — | |||||
| Adjusted earnings available to common shareholders | 1,184 | 1.52 | 1,695 | 2.04 | |||||
| Less: Total notable items (2) | — | — | — | — | |||||
| Adjusted earnings available to common shareholders, excluding total notable items (2) | $ | 1,184 | $ | 1.52 | $ | 1,695 | $ | 2.04 | |
| Adjusted earnings available to common shareholders on a constant currency basis | $ | 1,184 | $ | 1.52 | $ | 1,675 | $ | 2.02 | |
| Adjusted earnings available to common shareholders, excluding total notable items, on a constant currency basis (2) | $ | 1,184 | $ | 1.52 | $ | 1,675 | $ | 2.02 | |
| Weighted average common shares outstanding - diluted | 781.2 | 830.5 | |||||||
| See footnotes on last page. |
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| MetLife, Inc. | ||||
|---|---|---|---|---|
| (Unaudited) | ||||
| (In millions) | ||||
| For the Three Months Ended | ||||
| March 31, | ||||
| 2023 | 2022 | |||
| Premiums, Fees and Other Revenues | ||||
| Premiums, fees and other revenues | $ | 11,517 | $ | 12,589 |
| Less: Adjustments to premiums, fees and other revenues: | ||||
| Asymmetrical and non-economic accounting | — | — | ||
| Other adjustments | (3) | 47 | ||
| Divested businesses | — | 55 | ||
| Adjusted premiums, fees and other revenues | $ | 11,520 | $ | 12,487 |
| Adjusted premiums, fees and other revenues, on a constant currency basis | $ | 11,520 | $ | 12,304 |
| Less: PRT (3) | (21) | 1,258 | ||
| Adjusted premiums, fees and other revenues, excluding PRT, on a constant currency basis | $ | 11,541 | $ | 11,046 |
| Net Investment Income | ||||
| Net investment income | $ | 4,645 | $ | 4,284 |
| Less: Adjustments to net investment income | ||||
| Investment hedge adjustments | (264) | (215) | ||
| Unit-linked contract income | 303 | (498) | ||
| Other adjustments | — | (6) | ||
| Divested business | — | 11 | ||
| Adjusted net investment income | $ | 4,606 | $ | 4,992 |
| Revenues and Expenses | ||||
| Total revenues | $ | 15,388 | $ | 15,405 |
| Less: Adjustments to total revenues: | ||||
| Net investment gains (losses) | (684) | (517) | ||
| Net derivative gains (losses) | (90) | (951) | ||
| Investment hedge adjustments | (264) | (215) | ||
| Asymmetrical and non-economic accounting | — | — | ||
| Unit-linked contract income | 303 | (498) | ||
| Other adjustments | (3) | 41 | ||
| Divested businesses | — | 66 | ||
| Total adjusted revenues | $ | 16,126 | $ | 17,479 |
| Total expenses | $ | 15,131 | $ | 13,470 |
| Less: Adjustments to total expenses: | ||||
| Market risk benefit remeasurement (gains) losses | 188 | (1,440) | ||
| Goodwill impairment | — | — | ||
| Asymmetrical and non-economic accounting | 103 | 56 | ||
| Market volatility | (14) | 12 | ||
| Unit-linked contract costs | 303 | (505) | ||
| Other adjustments | 16 | 47 | ||
| Divested businesses | 11 | 55 | ||
| Total adjusted expenses | $ | 14,524 | $ | 15,245 |
| See footnotes on last page. |
Page 18 of 24
| MetLife, Inc. | ||||||
|---|---|---|---|---|---|---|
| (Unaudited) | ||||||
| (In millions, except per share and ratio data) | ||||||
| For the Three Months Ended | ||||||
| March 31, | ||||||
| 2023 | 2022 | |||||
| Expense Detail and Ratios | ||||||
| Reconciliation of Capitalization of DAC to Adjusted Capitalization of DAC | ||||||
| Capitalization of DAC | $ | (718) | $ | (652) | ||
| Less: Divested businesses | — | (11) | ||||
| Adjusted capitalization of DAC | $ | (718) | $ | (641) | ||
| Reconciliation of Other Expenses to Adjusted Other Expenses | ||||||
| Other expenses | $ | 3,057 | $ | 2,912 | ||
| Less: Other adjustments | 16 | 47 | ||||
| Less: Divested businesses | 11 | 32 | ||||
| Adjusted other expenses | $ | 3,030 | $ | 2,833 | ||
| Other Detail and Ratios | ||||||
| Other expenses, net of capitalization of DAC | $ | 2,339 | $ | 2,260 | ||
| Premiums, fees and other revenues | $ | 11,517 | $ | 12,589 | ||
| Expense ratio | 20.3 | % | 18.0 | % | ||
| Direct expenses | $ | 1,387 | $ | 1,332 | ||
| Less: Total notable items related to direct expenses (2) | — | — | ||||
| Direct expenses, excluding total notable items related to direct expenses (2) | $ | 1,387 | $ | 1,332 | ||
| Adjusted other expenses | $ | 3,030 | $ | 2,833 | ||
| Adjusted capitalization of DAC | (718) | (641) | ||||
| Adjusted other expenses, net of adjusted capitalization of DAC | 2,312 | 2,192 | ||||
| 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) | $ | 2,312 | $ | 2,192 | ||
| Adjusted premiums, fees and other revenues | $ | 11,520 | $ | 12,487 | ||
| Less: PRT | (21) | 1,258 | ||||
| Adjusted premiums, fees and other revenues, excluding PRT | $ | 11,541 | $ | 11,229 | ||
| Direct expense ratio | 12.0 | % | 10.7 | % | ||
| Direct expense ratio, excluding total notable items related to direct expenses and PRT (2) | 12.0 | % | 11.9 | % | ||
| Adjusted expense ratio | 20.1 | % | 17.6 | % | ||
| Adjusted expense ratio, excluding total notable items related to adjusted other expenses and PRT (2) | 20.0 | % | 19.5 | % | ||
| See footnotes on last page. |
Page 19 of 24
| MetLife, Inc. | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| (Unaudited) | ||||||||||
| (In millions, except per share data) | ||||||||||
| March 31, | ||||||||||
| Equity Details | 2023 | 2022 | ||||||||
| Total MetLife, Inc.'s stockholders' equity | $ | 32,194 | $ | 42,432 | ||||||
| Less: Preferred stock | 3,818 | 3,818 | ||||||||
| MetLife, Inc.'s common stockholders' equity | 28,376 | 38,614 | ||||||||
| Less: Net unrealized investment gains (losses), net of income tax | (14,606) | 6,083 | ||||||||
| Future policy benefits discount rate remeasurement gain (losses), net of income tax | 2,748 | (9,248) | ||||||||
| Market risk benefits instrument-specific credit risk remeasurement gains (losses), net of income tax | 186 | 195 | ||||||||
| Defined benefit plans adjustment, net of income tax | (1,356) | (1,577) | ||||||||
| Total MetLife, Inc.'s common stockholders' equity, excluding AOCI other than FCTA | 41,404 | 43,161 | ||||||||
| Less: Accumulated year-to-date total notable items (2) | — | — | ||||||||
| Total MetLife, Inc.'s common stockholders' equity, excluding total notable items (excludes AOCI other than FCTA) (2) | $ | 41,404 | $ | 43,161 | ||||||
| March 31, | ||||||||||
| Book Value (4) | 2023 | 2022 | ||||||||
| Book value per common share | $ | 36.89 | $ | 47.39 | ||||||
| Less: Net unrealized investment gains (losses), net of income tax | (18.99) | 7.47 | ||||||||
| Future policy benefits discount rate remeasurement gain (losses), net of income tax | 3.57 | (11.36) | ||||||||
| Market risk benefits instrument-specific credit risk remeasurement gains (losses), net of income tax | 0.24 | 0.24 | ||||||||
| Defined benefit plans adjustment, net of income tax | (1.76) | (1.93) | ||||||||
| Book value per common share, excluding AOCI other than FCTA | $ | 53.83 | $ | 52.97 | ||||||
| Common shares outstanding, end of period (5) | 769.2 | 814.8 | ||||||||
| For the Three Months Ended | ||||||||||
| March 31, | ||||||||||
| Average Common Stockholders' Equity | 2023 | 2022 | ||||||||
| Average common stockholders' equity | $ | 27,220 | $ | 42,272 | ||||||
| Average common stockholders' equity, excluding AOCI other than FCTA | $ | 41,856 | $ | 43,210 | ||||||
| Average common stockholders' equity, excluding total notable items (excludes AOCI other than FCTA) (2) | $ | 41,856 | $ | 43,210 | For the Three Months Ended | |||||
| --- | --- | --- | --- | --- | ||||||
| March 31, (6) | ||||||||||
| Return on Equity | 2023 | 2022 | ||||||||
| Return on MetLife, Inc.'s: | ||||||||||
| Common stockholders' equity | 0.2 | % | 14.9 | % | ||||||
| Adjusted return on MetLife, Inc.'s: | ||||||||||
| Common stockholders' equity | 17.4 | % | 16.0 | % | ||||||
| Common stockholders' equity, excluding AOCI other than FCTA | 11.3 | % | 15.7 | % | ||||||
| Common stockholders' equity, excluding total notable items (excludes AOCI other than FCTA) (2) | 11.3 | % | 15.7 | % | ||||||
| See footnotes on last page. |
Page 20 of 24
| MetLife, Inc. | |||||
|---|---|---|---|---|---|
| Adjusted Earnings Available to Common Shareholders | |||||
| (Unaudited) | |||||
| (In millions) | |||||
| For the Three Months Ended | |||||
| March 31, | |||||
| 2023 | 2022 | ||||
| U.S. (3): | |||||
| Adjusted earnings available to common shareholders | $ | 707 | $ | 663 | |
| Less: Total notable items (2) | — | — | |||
| Adjusted earnings available to common shareholders, excluding total notable items (2) | $ | 707 | $ | 663 | |
| Adjusted premiums, fees and other revenues | $ | 6,697 | $ | 7,729 | |
| Less: PRT | (21) | 1,258 | |||
| Adjusted premiums, fees and other revenues, excluding PRT | $ | 6,718 | $ | 6,471 | |
| Group Benefits (3): | |||||
| Adjusted earnings available to common shareholders | $ | 307 | $ | 117 | |
| Less: Total notable items (2) | — | — | |||
| Adjusted earnings available to common shareholders, excluding total notable items (2) | $ | 307 | $ | 117 | |
| Adjusted premiums, fees and other revenues | $ | 6,049 | $ | 6,004 | |
| Retirement & Income Solutions (3): | |||||
| Adjusted earnings available to common shareholders | $ | 400 | $ | 546 | |
| Less: Total notable items (2) | — | — | |||
| Adjusted earnings available to common shareholders, excluding total notable items (2) | $ | 400 | $ | 546 | |
| Adjusted premiums, fees and other revenues | $ | 648 | $ | 1,725 | |
| Less: PRT | (21) | 1,258 | |||
| Adjusted premiums, fees and other revenues, excluding PRT | $ | 669 | $ | 467 | |
| See footnotes on last page. |
Page 21 of 24
| MetLife, Inc. | |||||
|---|---|---|---|---|---|
| Adjusted Earnings Available to Common Shareholders (Continued) | |||||
| (Unaudited) | |||||
| (In millions) | |||||
| For the Three Months Ended | |||||
| March 31, | |||||
| 2023 | 2022 | ||||
| Asia: | |||||
| Adjusted earnings available to common shareholders | $ | 280 | $ | 599 | |
| Less: Total notable items (2) | — | — | |||
| Adjusted earnings available to common shareholders, excluding total notable items (2) | $ | 280 | $ | 599 | |
| Adjusted earnings available to common shareholders on a constant currency basis | $ | 280 | $ | 581 | |
| Adjusted earnings available to common shareholders, excluding total notable items, on a constant currency basis (2) | $ | 280 | $ | 581 | |
| Adjusted premiums, fees and other revenues | $ | 1,794 | $ | 1,976 | |
| Adjusted premiums, fees and other revenues, on a constant currency basis | $ | 1,794 | $ | 1,792 | |
| Latin America: | |||||
| Adjusted earnings available to common shareholders | $ | 215 | $ | 135 | |
| Less: Total notable items (2) | — | — | |||
| Adjusted earnings available to common shareholders, excluding total notable items (2) | $ | 215 | $ | 135 | |
| Adjusted earnings available to common shareholders on a constant currency basis | $ | 215 | $ | 142 | |
| Adjusted earnings available to common shareholders, excluding total notable items, on a constant currency basis (2) | $ | 215 | $ | 142 | |
| Adjusted premiums, fees and other revenues | $ | 1,372 | $ | 1,036 | |
| Adjusted premiums, fees and other revenues, on a constant currency basis | $ | 1,372 | $ | 1,087 | |
| EMEA: | |||||
| Adjusted earnings available to common shareholders | $ | 60 | $ | 55 | |
| Less: Total notable items (2) | — | — | |||
| Adjusted earnings available to common shareholders, excluding total notable items (2) | $ | 60 | $ | 55 | |
| Adjusted earnings available to common shareholders on a constant currency basis | $ | 60 | $ | 46 | |
| Adjusted earnings available to common shareholders, excluding total notable items, on a constant currency basis (2) | $ | 60 | $ | 46 | |
| Adjusted premiums, fees and other revenues | $ | 581 | $ | 601 | |
| Adjusted premiums, fees and other revenues, on a constant currency basis | $ | 581 | $ | 551 | |
| MetLife Holdings (3): | |||||
| Adjusted earnings available to common shareholders | $ | 158 | $ | 348 | |
| Less: Total notable items (2) | — | — | |||
| Adjusted earnings available to common shareholders, excluding total notable items (2) | $ | 158 | $ | 348 | |
| Adjusted premiums, fees and other revenues | $ | 959 | $ | 1,048 | |
| Corporate & Other (3): | |||||
| Adjusted earnings available to common shareholders | $ | (236) | $ | (105) | |
| Less: Total notable items (2) | — | — | |||
| Adjusted earnings available to common shareholders, excluding total notable items (2) | $ | (236) | $ | (105) | |
| Adjusted premiums, fees and other revenues | $ | 117 | $ | 97 | |
| See footnotes on last page. |
Page 22 of 24
| MetLife, Inc. | ||||
|---|---|---|---|---|
| (Unaudited) | ||||
| For the Three Months Ended | ||||
| March 31, | ||||
| 2023 | 2022 | |||
| Variable investment income (post-tax, in millions) (7) | ||||
| U.S. | ||||
| Group Benefits | $ | — | $ | 12 |
| Retirement and Income Solutions | (3) | 277 | ||
| Total U.S. | (3) | 289 | ||
| Asia | (25) | 288 | ||
| Latin America | (2) | 16 | ||
| EMEA | — | — | ||
| MetLife Holdings | 2 | 208 | ||
| Corporate & Other | (7) | 135 | ||
| Total variable investment income | $ | (35) | $ | 936 |
| See footnotes on last page. |
Page 23 of 24
| MetLife, Inc. | ||||
|---|---|---|---|---|
| (Unaudited) | ||||
| 2022 | ||||
| Cash & Capital (8), (9), (10) (in billions) | ||||
| Holding Companies Cash & Liquid Assets | 4.2 | $ | 4.2 | |
| Real Estate Equity (11) (in billions) | ||||
| Unrealized gains on real estate equity | $ | 6.4 | ||
| Footnotes | ||||
| (1) | Adjusted earnings available to common shareholders, excluding total notable items, per diluted common share is calculated on a standalone basis and may not equal (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 March 31, 2023 and 2022. | |||
| (5) | There were share repurchases of 0.8 billion for the three months ended March 31, 2023. There were share repurchases of 223 million in April 2023. | |||
| (6) | Annualized using quarter-to-date results. | |||
| (7) | Assumes a 21% tax rate. | |||
| (8) | The 2022 combined U.S. risk based capital ratio was 367%, which is above MetLife's 360% target on an NAIC basis. This ratio includes MetLife, Inc.'s principal U.S. insurance subsidiaries, excluding American Life Insurance Company. MetLife calculates RBC annually as of December 31 and, accordingly, the calculation does not reflect conditions and factors occurring after the year end. | |||
| (9) | The total U.S. statutory adjusted capital is expected to be approximately 17.7 billion at March 31, 2023, down 3% from December 31, 2022. This balance includes MetLife, Inc.'s principal U.S. insurance subsidiaries, excluding American Life Insurance Company. | |||
| (10) | As of December 31, 2022, the solvency margin ratio of MetLife's insurance subsidiary in Japan was 701%, which is calculated quarterly and does not reflect conditions and factors occurring after December 31, 2022. The expected Japan solvency margin ratio as of March 31, 2023 is approximately 725%. | |||
| (11) | Real estate equity fair value of 18.1 billion and carrying value of 11.7 billion. |
All values are in US Dollars.
Page 24 of 24
Document
Table of Contents
Exhibit 99.2
First Quarter
Financial Supplement
March 31, 2023
Table of Contents
| METLIFE<br>TABLE OF CONTENTS | |
|---|---|
| GAAP CONSOLIDATED STATEMENTS OF OPERATIONS | 2 |
| CORPORATE OVERVIEW | 3 |
| KEY ADJUSTED EARNINGS STATEMENT LINE ITEMS | 5 |
| EXPENSE DETAIL AND RATIOS | 7 |
| GAAP CONSOLIDATED BALANCE SHEETS | 8 |
| SUMMARY OF ADJUSTED EARNINGS AVAILABLE TO COMMON SHAREHOLDERS | 9 |
| U.S. | |
| Statements of Adjusted Earnings Available to Common Shareholders | 10 |
| Group Benefits - Statements of Adjusted Earnings Available to Common Shareholders | 11 |
| Retirement and Income Solutions - Statements of Adjusted Earnings Available to Common Shareholders | 12 |
| Group Benefits - Other Expenses by Major Category; and Other Statistical Information | 13 |
| Retirement and Income Solutions - Future Policy Benefits and Policyholder Account Balances; Separate Account Liabilities; Synthetic GICs; and Longevity Reinsurance | 14 |
| Retirement and Income Solutions - Other Expenses by Major Category; and Spread | 15 |
| ASIA | |
| Statements of Adjusted Earnings Available to Common Shareholders | 16 |
| Adjusted Premiums, Fees and Other Revenues; Other Expenses by Major Category; Sales on a Constant Currency Basis; and Other Statistical Information | 17 |
| General Account Assets Under Management and Related Measures | 18 |
| LATIN AMERICA | |
| Statements of Adjusted Earnings Available to Common Shareholders | 19 |
| Other Expenses by Major Category; Sales on a Constant Currency Basis; and Other Statistical Information | 20 |
| EMEA | |
| Statements of Adjusted Earnings Available to Common Shareholders | 21 |
| Other Expenses by Major Category; and Other Statistical Information | 22 |
| METLIFE HOLDINGS | |
| Statements of Adjusted Earnings Available to Common Shareholders | 23 |
| Future Policy Benefits; Policyholder Account Balances; Market Risk Benefits; and Separate Account Liabilities | 24 |
| Other Expenses by Major Category; and Other Statistical Information | 25 |
| CORPORATE & OTHER | |
| Statements of Adjusted Earnings Available to Common Shareholders; and Adjusted Earnings Available to Common Shareholders by Source | 26 |
| INVESTMENTS | |
| Investment Portfolio Results by Asset Category and Annualized Yields | 27 |
| Summary of Fixed Maturity Securities Available-for-Sale by Sector and Quality Distribution; and Gross Unrealized Gains and Losses: Fixed Maturity Securities Available-for-Sale | 28 |
| Summary of Mortgage Loans; and Summary of Commercial Mortgage Loans by Region and Property Type | 29 |
| Footnotes | 30 |
| APPENDIX | |
| Reconciliation Detail | A-1 |
| Notable Items | A-2 |
| Equity Details, Book Value Details and Return on Equity | A-4 |
| Adjusted Premiums, Fees and Other Revenues, Other Expenses and Adjusted Earnings Available to Common Shareholders - Constant Currency Basis | A-5 |
| Non-GAAP and Other Financial Disclosures | A-6 |
| Acronyms | A-9 |
Table of Contents
| 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 CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
| For the Three Months Ended | For the Year-to-Date Period Ended | |||||||||||||||
| Unaudited (In millions) | March 31, 2022 | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | March 31, 2022 | March 31, 2023 | |||||||||
| Revenues | ||||||||||||||||
| Premiums | $ | 10,617 | $ | 11,556 | $ | 17,332 | $ | 9,005 | $ | 9,589 | $ | 10,617 | $ | 9,589 | ||
| Universal life and investment-type product policy fees | 1,312 | 1,372 | 1,275 | 1,266 | 1,289 | 1,312 | 1,289 | |||||||||
| Net investment income | 4,284 | 3,583 | 3,585 | 4,464 | 4,645 | 4,284 | 4,645 | |||||||||
| Other revenues | 660 | 615 | 728 | 627 | 639 | 660 | 639 | |||||||||
| Net investment gains (losses) | (517) | (682) | (411) | 350 | (684) | (517) | (684) | |||||||||
| Net derivative gains (losses) | (951) | (970) | (226) | (104) | (90) | (951) | (90) | |||||||||
| Total revenues | 15,405 | 15,474 | 22,283 | 15,608 | 15,388 | 15,405 | 15,388 | |||||||||
| Expenses | ||||||||||||||||
| Policyholder benefits and claims | 11,174 | 11,615 | 17,603 | 9,115 | 9,872 | 11,174 | 9,872 | |||||||||
| Policyholder liability remeasurement (gains) losses | (41) | (1) | 136 | 20 | (9) | (41) | (9) | |||||||||
| Market risk benefit remeasurement (gains) losses | (1,440) | (757) | (965) | (512) | 188 | (1,440) | 188 | |||||||||
| Interest credited to policyholder account balances | 626 | 527 | 1,014 | 1,727 | 1,864 | 626 | 1,864 | |||||||||
| Policyholder dividends | 199 | 194 | 158 | 155 | 159 | 199 | 159 | |||||||||
| Amortization of DAC and VOBA | 475 | 458 | 441 | 457 | 470 | 475 | 470 | |||||||||
| Amortization of negative VOBA | (8) | (7) | (7) | (7) | (7) | (8) | (7) | |||||||||
| Interest expense on debt | 225 | 226 | 239 | 248 | 255 | 225 | 255 | |||||||||
| Other expenses, net of capitalization of DAC | 2,260 | 2,231 | 2,249 | 2,379 | 2,339 | 2,260 | 2,339 | |||||||||
| Total expenses | 13,470 | 14,486 | 20,868 | 13,582 | 15,131 | 13,470 | 15,131 | |||||||||
| Income (loss) before provision for income tax | 1,935 | 988 | 1,415 | 2,026 | 257 | 1,935 | 257 | |||||||||
| Provision for income tax expense (benefit) | 296 | 73 | 248 | 445 | 172 | 296 | 172 | |||||||||
| Net income (loss) | 1,639 | 915 | 1,167 | 1,581 | 85 | 1,639 | 85 | |||||||||
| Less: Net income (loss) attributable to noncontrolling interests | 5 | 5 | 5 | 3 | 5 | 5 | 5 | |||||||||
| Net income (loss) attributable to MetLife, Inc. | 1,634 | 910 | 1,162 | 1,578 | 80 | 1,634 | 80 | |||||||||
| Less: Preferred stock dividends | 63 | 29 | 64 | 29 | 66 | 63 | 66 | |||||||||
| Net income (loss) available to MetLife, Inc.'s common shareholders | $ | 1,571 | $ | 881 | $ | 1,098 | $ | 1,549 | $ | 14 | $ | 1,571 | $ | 14 | ||
| Premiums, fees and other revenues | $ | 12,589 | $ | 13,543 | $ | 19,335 | $ | 10,898 | $ | 11,517 | $ | 12,589 | $ | 11,517 |
Table of Contents
| METLIFE<br>CORPORATE OVERVIEW | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| For the Three Months Ended | ||||||||||
| Unaudited (In millions, except per share data) | March 31, 2022 | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | |||||
| Net income (loss) available to MetLife, Inc.'s common shareholders | $ | 1,571 | $ | 881 | $ | 1,098 | $ | 1,549 | $ | 14 |
| Adjustments from net income (loss) available to MetLife, Inc.'s common shareholders to adjusted earnings available to common shareholders: | ||||||||||
| Less: Net investment gains (losses) | (517) | (682) | (411) | 350 | (684) | |||||
| Less: Net derivative gains (losses) | (951) | (970) | (226) | (104) | (90) | |||||
| Less: Market risk benefit remeasurement gains (losses) | 1,440 | 757 | 965 | 512 | (188) | |||||
| Less: Goodwill impairment | — | — | — | — | — | |||||
| Less: Other adjustments to net income (loss) (1) | (271) | (396) | (435) | (317) | (383) | |||||
| Less: Provision for income tax (expense) benefit | 180 | 439 | 110 | (149) | 180 | |||||
| Add: Net income (loss) attributable to noncontrolling interests | 5 | 5 | 5 | 3 | 5 | |||||
| Add: Preferred stock redemption premium | — | — | — | — | — | |||||
| Adjusted earnings available to common shareholders | 1,695 | 1,738 | 1,100 | 1,260 | 1,184 | |||||
| Less: Total notable items (2) | — | 77 | 12 | — | — | |||||
| Adjusted earnings available to common shareholders, excluding total notable items (2) | $ | 1,695 | $ | 1,661 | $ | 1,088 | $ | 1,260 | $ | 1,184 |
| Net income (loss) available to MetLife, Inc.'s common shareholders per diluted common share | $ | 1.89 | $ | 1.08 | $ | 1.37 | $ | 1.96 | $ | 0.02 |
| Less: Net investment gains (losses) | (0.62) | (0.84) | (0.51) | 0.44 | (0.88) | |||||
| Less: Net derivative gains (losses) | (1.15) | (1.19) | (0.28) | (0.13) | (0.12) | |||||
| Less: Market risk benefit remeasurement gains (losses) | 1.73 | 0.93 | 1.21 | 0.65 | (0.24) | |||||
| Less: Goodwill impairment | — | — | — | — | — | |||||
| Less: Other adjustments to net income (loss) | (0.32) | (0.48) | (0.55) | (0.40) | (0.48) | |||||
| Less: Provision for income tax (expense) benefit | 0.22 | 0.54 | 0.14 | (0.19) | 0.23 | |||||
| Add: Net income (loss) attributable to noncontrolling interests | 0.01 | 0.01 | 0.01 | — | 0.01 | |||||
| Add: Preferred stock redemption premium | — | — | — | — | — | |||||
| Adjusted earnings available to common shareholders per diluted common share | 2.04 | 2.13 | 1.37 | 1.59 | 1.52 | |||||
| Less: Total notable items per diluted common share (2) | — | 0.09 | 0.01 | — | — | |||||
| Adjusted earnings available to common shareholders, excluding total notable items, per diluted common share (2), (3) | $ | 2.04 | $ | 2.04 | $ | 1.36 | $ | 1.59 | $ | 1.52 |
| For the Three Months Ended | ||||||||||
| Unaudited (In millions, except per share data) | March 31, 2022 | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | |||||
| Notable items impacting adjusted earnings available to common shareholders (2): | ||||||||||
| Actuarial assumption review and other insurance adjustments | $ | — | $ | 77 | $ | 12 | $ | — | — | |
| Total notable items | $ | — | $ | 77 | $ | 12 | $ | — | — | |
| Notable items impacting adjusted earnings available to common shareholders per diluted common share (2): | ||||||||||
| Actuarial assumption review and other insurance adjustments | $ | — | $ | 0.09 | $ | 0.01 | $ | — | — | |
| Total notable items | $ | — | $ | 0.09 | $ | 0.01 | $ | — | $ | — |
| For the Three Months Ended | ||||||||||
| Unaudited (In millions) | March 31, 2022 | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | |||||
| Weighted average common shares outstanding - diluted | 830.5 | 814.5 | 800.7 | 790.2 | 781.2 | |||||
| (1)See Appendix 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. |
Table of Contents
| METLIFE<br>CORPORATE OVERVIEW (CONTINUED) | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Unaudited | March 31, 2022 | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | ||||||||||
| Book value per common share (1) | $ | 47.39 | $ | 37.52 | $ | 32.48 | $ | 33.45 | $ | 36.89 | |||||
| Book value per common share, excluding AOCI other than FCTA (1) | $ | 52.97 | $ | 52.30 | $ | 52.04 | $ | 54.30 | $ | 53.83 | |||||
| For the Three Months Ended | |||||||||||||||
| Unaudited | March 31, 2022 | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | ||||||||||
| Return on MetLife, Inc.'s (2): | |||||||||||||||
| Common stockholders' equity | 14.9 | % | 10.3 | % | 15.8 | % | 24.0 | % | 0.2 | % | |||||
| Adjusted return on MetLife, Inc.'s (2): | |||||||||||||||
| Common stockholders' equity | 16.0 | % | 20.3 | % | 15.9 | % | 19.5 | % | 17.4 | % | |||||
| Common stockholders' equity, excluding AOCI other than FCTA | 15.7 | % | 16.4 | % | 10.6 | % | 12.1 | % | 11.3 | % | |||||
| Common stockholders' equity, excluding total notable items (excludes AOCI other than FCTA) (3) | 15.7 | % | 15.7 | % | 10.5 | % | 12.1 | % | 11.3 | % | |||||
| For the Three Months Ended | |||||||||||||||
| Unaudited (In millions) | March 31, 2022 | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | ||||||||||
| Common shares outstanding, beginning of period | 825.5 | 814.8 | 797.6 | 787.3 | 779.1 | ||||||||||
| Share repurchases | (13.6) | (17.3) | (10.3) | (8.5) | (11.6) | ||||||||||
| Newly issued shares | 2.9 | 0.1 | — | 0.3 | 1.7 | ||||||||||
| Common shares outstanding, end of period | 814.8 | 797.6 | 787.3 | 779.1 | 769.2 | ||||||||||
| Weighted average common shares outstanding - basic | 823.8 | 809.7 | 795.8 | 784.2 | 775.4 | ||||||||||
| Dilutive effect of the exercise or issuance of stock-based awards | 6.7 | 4.8 | 4.9 | 6.0 | 5.8 | ||||||||||
| Weighted average common shares outstanding - diluted | 830.5 | 814.5 | 800.7 | 790.2 | 781.2 | ||||||||||
| MetLife Policyholder Trust Shares | 127.8 | 126.2 | 125.1 | 123.6 | 122.1 | ||||||||||
| (1) Calculated using common shares outstanding, end of period. | |||||||||||||||
| (2) Annualized using quarter-to-date results. See Page A-4 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. |
Table of Contents
| METLIFE<br>KEY ADJUSTED EARNINGS STATEMENT LINE ITEMS | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| For the Three Months Ended | For the Year-to-Date Period Ended | |||||||||||||
| Unaudited (In millions) | March 31, 2022 | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | March 31, 2022 | March 31, 2023 | |||||||
| Total revenues | $ | 15,405 | $ | 15,474 | $ | 22,283 | $ | 15,608 | $ | 15,388 | $ | 15,405 | $ | 15,388 |
| Less: Adjustments to total revenues: | ||||||||||||||
| Net investment gains (losses) | (517) | (682) | (411) | 350 | (684) | (517) | (684) | |||||||
| Net derivative gains (losses) | (951) | (970) | (226) | (104) | (90) | (951) | (90) | |||||||
| Investment hedge adjustments | (215) | (232) | (252) | (277) | (264) | (215) | (264) | |||||||
| Asymmetrical and non-economic accounting | — | — | — | — | — | — | — | |||||||
| Unit-linked contract income | (498) | (688) | (321) | 209 | 303 | (498) | 303 | |||||||
| Other adjustments | 41 | 47 | 35 | 27 | (3) | 41 | (3) | |||||||
| Divested businesses | 66 | — | — | — | — | 66 | — | |||||||
| Total adjusted revenues | $ | 17,479 | $ | 17,999 | $ | 23,458 | $ | 15,403 | $ | 16,126 | $ | 17,479 | $ | 16,126 |
| For the Three Months Ended | For the Year-to-Date Period Ended | |||||||||||||
| Unaudited (In millions) | March 31, 2022 | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | March 31, 2022 | March 31, 2023 | |||||||
| Net investment income | $ | 4,284 | $ | 3,583 | $ | 3,585 | $ | 4,464 | $ | 4,645 | $ | 4,284 | $ | 4,645 |
| Less: Adjustments to net investment income: | ||||||||||||||
| Investment hedge adjustments | (215) | (232) | (252) | (277) | (264) | (215) | (264) | |||||||
| Unit-linked contract income | (498) | (688) | (321) | 209 | 303 | (498) | 303 | |||||||
| Other adjustments | (6) | (1) | (5) | 2 | — | (6) | — | |||||||
| Divested businesses | 11 | — | — | — | — | 11 | — | |||||||
| Adjusted net investment income | $ | 4,992 | $ | 4,504 | $ | 4,163 | $ | 4,530 | $ | 4,606 | $ | 4,992 | $ | 4,606 |
| For the Three Months Ended | For the Year-to-Date Period Ended | |||||||||||||
| Unaudited (In millions) | March 31, 2022 | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | March 31, 2022 | March 31, 2023 | |||||||
| Variable investment income (Included in net investment income above) | $ | 1,185 | $ | 389 | $ | (53) | $ | 24 | $ | (44) | $ | 1,185 | $ | (44) |
| For the Three Months Ended | For the Year-to-Date Period Ended | |||||||||||||
| Unaudited (In millions) | March 31, 2022 | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | March 31, 2022 | March 31, 2023 | |||||||
| Premiums, fees and other revenues | $ | 12,589 | $ | 13,543 | $ | 19,335 | $ | 10,898 | $ | 11,517 | $ | 12,589 | $ | 11,517 |
| Less: Adjustments to premiums, fees and other revenues: | ||||||||||||||
| Asymmetrical and non-economic accounting | — | — | — | — | — | — | — | |||||||
| Other adjustments | 47 | 48 | 40 | 25 | (3) | 47 | (3) | |||||||
| Divested businesses | 55 | — | — | — | — | 55 | — | |||||||
| Adjusted premiums, fees and other revenues | $ | 12,487 | $ | 13,495 | $ | 19,295 | $ | 10,873 | $ | 11,520 | $ | 12,487 | $ | 11,520 |
| Adjusted premiums, fees and other revenues, on a constant currency basis | $ | 12,304 | $ | 13,479 | $ | 19,447 | $ | 11,042 | $ | 11,520 |
Table of Contents
| METLIFE<br>KEY ADJUSTED EARNINGS STATEMENT LINE ITEMS (CONTINUED) | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| For the Three Months Ended | For the Year-to-Date Period Ended | |||||||||||||
| Unaudited (In millions) | March 31, 2022 | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | March 31, 2022 | March 31, 2023 | |||||||
| Total expenses | $ | 13,470 | $ | 14,486 | $ | 20,868 | $ | 13,582 | $ | 15,131 | $ | 13,470 | $ | 15,131 |
| Less: Adjustments to total expenses: | ||||||||||||||
| Market risk benefit remeasurement (gains) losses | (1,440) | (757) | (965) | (512) | 188 | (1,440) | 188 | |||||||
| Goodwill impairment | — | — | — | — | — | — | — | |||||||
| Asymmetrical and non-economic accounting | 56 | 184 | 205 | 143 | 103 | 56 | 103 | |||||||
| Market volatility | 12 | (34) | (66) | (105) | (14) | 12 | (14) | |||||||
| Unit-linked contract costs | (505) | (695) | (302) | 180 | 303 | (505) | 303 | |||||||
| Other adjustments | 47 | 60 | 47 | 37 | 16 | 47 | 16 | |||||||
| Divested businesses | 55 | 8 | 13 | 21 | 11 | 55 | 11 | |||||||
| Total adjusted expenses | $ | 15,245 | $ | 15,720 | $ | 21,936 | $ | 13,818 | $ | 14,524 | $ | 15,245 | $ | 14,524 |
| For the Three Months Ended | For the Year-to-Date Period Ended | |||||||||||||
| Unaudited (In millions) | March 31, 2022 | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | March 31, 2022 | March 31, 2023 | |||||||
| Capitalization of DAC | $ | (652) | $ | (637) | $ | (626) | $ | (699) | $ | (718) | $ | (652) | $ | (718) |
| Less: Divested businesses | (11) | — | — | — | — | (11) | — | |||||||
| Adjusted capitalization of DAC | $ | (641) | $ | (637) | $ | (626) | $ | (699) | $ | (718) | $ | (641) | $ | (718) |
| For the Three Months Ended | For the Year-to-Date Period Ended | |||||||||||||
| Unaudited (In millions) | March 31, 2022 | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | March 31, 2022 | March 31, 2023 | |||||||
| Other expenses | $ | 2,912 | $ | 2,868 | $ | 2,875 | $ | 3,078 | $ | 3,057 | $ | 2,912 | $ | 3,057 |
| Less: Adjustments to other expenses: | ||||||||||||||
| Other adjustments | 47 | 60 | 47 | 37 | 16 | 47 | 16 | |||||||
| Divested businesses | 32 | 8 | 13 | 21 | 11 | 32 | 11 | |||||||
| Adjusted other expenses | $ | 2,833 | $ | 2,800 | $ | 2,815 | $ | 3,020 | $ | 3,030 | $ | 2,833 | $ | 3,030 |
| Adjusted other expenses on a constant currency basis | $ | 2,742 | $ | 2,783 | $ | 2,871 | $ | 3,095 | $ | 3,030 |
Table of Contents
| METLIFE<br>EXPENSE DETAIL AND RATIOS | |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| For the Three Months Ended | For the Year-to-Date Period Ended | ||||||||||||||||||||
| Unaudited (In millions, except ratio data) | March 31, 2022 | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | March 31, 2022 | March 31, 2023 | ||||||||||||||
| Other expenses, net of capitalization of DAC | $ | 2,260 | $ | 2,231 | $ | 2,249 | $ | 2,379 | $ | 2,339 | $ | 2,260 | $ | 2,339 | |||||||
| Premiums, fees and other revenues | $ | 12,589 | $ | 13,543 | $ | 19,335 | $ | 10,898 | $ | 11,517 | $ | 12,589 | $ | 11,517 | |||||||
| Expense ratio | 18.0 | % | 16.5 | % | 11.6 | % | 21.8 | % | 20.3 | % | 18.0 | % | 20.3 | % | |||||||
| For the Three Months Ended | For the Year-to-Date Period Ended | ||||||||||||||||||||
| Unaudited (In millions) | March 31, 2022 | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | March 31, 2022 | March 31, 2023 | ||||||||||||||
| Adjusted other expenses by major category | |||||||||||||||||||||
| Direct expenses | $ | 1,332 | $ | 1,335 | $ | 1,342 | $ | 1,481 | $ | 1,387 | $ | 1,332 | $ | 1,387 | |||||||
| Pension, postretirement and postemployment benefit costs | 25 | 24 | 24 | 25 | 59 | 25 | 59 | ||||||||||||||
| Premium taxes, other taxes, and licenses & fees | 151 | 137 | 172 | 146 | 161 | 151 | 161 | ||||||||||||||
| Commissions and other variable expenses | 1,325 | 1,304 | 1,277 | 1,368 | 1,423 | 1,325 | 1,423 | ||||||||||||||
| Adjusted other expenses | 2,833 | 2,800 | 2,815 | 3,020 | 3,030 | 2,833 | 3,030 | ||||||||||||||
| Adjusted capitalization of DAC | (641) | (637) | (626) | (699) | (718) | (641) | (718) | ||||||||||||||
| Adjusted other expenses, net of adjusted capitalization of DAC | 2,192 | 2,163 | 2,189 | 2,321 | 2,312 | 2,192 | 2,312 | ||||||||||||||
| Less: Total notable items related to adjusted other expenses (1) | — | — | — | — | — | — | — | ||||||||||||||
| Adjusted other expenses, net of adjusted capitalization of DAC, excluding total notable items related to adjusted other expenses (1) | $ | 2,192 | $ | 2,163 | $ | 2,189 | $ | 2,321 | $ | 2,312 | $ | 2,192 | $ | 2,312 | |||||||
| For the Three Months Ended | For the Year-to-Date Period Ended | ||||||||||||||||||||
| Unaudited (In millions, except ratio data) | March 31, 2022 | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | March 31, 2022 | March 31, 2023 | ||||||||||||||
| Employee related costs | $ | 899 | $ | 866 | $ | 875 | $ | 864 | $ | 929 | $ | 899 | $ | 929 | |||||||
| Third party staffing costs | 375 | 371 | 349 | 433 | 331 | 375 | 331 | ||||||||||||||
| General and administrative expenses | 58 | 98 | 118 | 184 | 127 | 58 | 127 | ||||||||||||||
| Direct expenses | 1,332 | 1,335 | 1,342 | 1,481 | 1,387 | 1,332 | 1,387 | ||||||||||||||
| Less: Total notable items related to direct expenses (1) | — | — | — | — | — | — | — | ||||||||||||||
| Direct expenses, excluding total notable items related to direct expenses (1) | $ | 1,332 | $ | 1,335 | $ | 1,342 | $ | 1,481 | $ | 1,387 | $ | 1,332 | $ | 1,387 | |||||||
| Adjusted other expenses, net of adjusted capitalization of DAC | $ | 2,192 | $ | 2,163 | $ | 2,189 | $ | 2,321 | $ | 2,312 | $ | 2,192 | $ | 2,312 | |||||||
| Less: Total notable items related to adjusted other expenses (1) | — | — | — | — | — | — | — | ||||||||||||||
| Adjusted other expenses, net of adjusted capitalization of DAC, excluding total notable items related to adjusted other expenses (1) | $ | 2,192 | $ | 2,163 | $ | 2,189 | $ | 2,321 | $ | 2,312 | $ | 2,192 | $ | 2,312 | |||||||
| Adjusted premiums, fees and other revenues | $ | 12,487 | $ | 13,495 | $ | 19,295 | $ | 10,873 | $ | 11,520 | $ | 12,487 | $ | 11,520 | |||||||
| Less: PRT | 1,258 | 2,564 | 8,466 | (69) | (21) | 1,258 | (21) | ||||||||||||||
| Adjusted premiums, fees and other revenues, excluding PRT | $ | 11,229 | $ | 10,931 | $ | 10,829 | $ | 10,942 | $ | 11,541 | $ | 11,229 | $ | 11,541 | |||||||
| Direct expense ratio | 10.7 | % | 9.9 | % | 7.0 | % | 13.6 | % | 12.0 | % | 10.7 | % | 12.0 | % | |||||||
| Direct expense ratio, excluding total notable items related to direct expenses and PRT (1) | 11.9 | % | 12.2 | % | 12.4 | % | 13.5 | % | 12.0 | % | 11.9 | % | 12.0 | % | |||||||
| Adjusted expense ratio | 17.6 | % | 16.0 | % | 11.3 | % | 21.3 | % | 20.1 | % | 17.6 | % | 20.1 | % | |||||||
| Adjusted expense ratio, excluding total notable items related to adjusted other expenses and PRT (1) | 19.5 | % | 19.8 | % | 20.2 | % | 21.2 | % | 20.0 | % | 19.5 | % | 20.0 | % | |||||||
| (1)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. |
Table of Contents
| METLIFE<br>GAAP CONSOLIDATED BALANCE SHEETS | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Unaudited (In millions) | March 31, 2022 | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | |||||
| ASSETS | ||||||||||
| Investments: | ||||||||||
| Fixed maturity securities available-for-sale, at estimated fair value | $ | 320,079 | $ | 284,178 | $ | 270,765 | $ | 276,780 | $ | 283,854 |
| Equity securities, at estimated fair value | 988 | 1,085 | 973 | 1,684 | 1,695 | |||||
| Contractholder-directed equity securities and fair value option securities, at estimated fair value | 11,418 | 9,875 | 8,954 | 9,668 | 10,063 | |||||
| Mortgage loans | 79,968 | 82,055 | 82,437 | 83,763 | 85,572 | |||||
| Policy loans | 9,036 | 8,876 | 8,783 | 8,874 | 8,863 | |||||
| Real estate and real estate joint ventures | 12,379 | 12,376 | 12,532 | 13,137 | 13,155 | |||||
| Other limited partnership interests | 14,570 | 14,636 | 14,387 | 14,414 | 14,437 | |||||
| Short-term investments, principally at estimated fair value | 3,146 | 3,043 | 5,266 | 4,935 | 4,184 | |||||
| Other invested assets | 18,696 | 19,901 | 22,299 | 20,038 | 19,479 | |||||
| Total investments | 470,280 | 436,025 | 426,396 | 433,293 | 441,302 | |||||
| Cash and cash equivalents, principally at estimated fair value | 23,488 | 20,548 | 22,200 | 20,195 | 18,456 | |||||
| Accrued investment income | 3,251 | 3,154 | 3,355 | 3,446 | 3,554 | |||||
| Premiums, reinsurance and other receivables | 17,983 | 17,713 | 17,550 | 17,364 | 18,692 | |||||
| Market risk benefits | 18 | 25 | 253 | 280 | 227 | |||||
| Deferred policy acquisition costs and value of business acquired | 19,747 | 18,946 | 18,545 | 19,653 | 19,976 | |||||
| Current income tax recoverable | 39 | 274 | 194 | 42 | — | |||||
| Deferred income tax assets | 1,241 | 1,949 | 2,161 | 2,439 | 2,257 | |||||
| Goodwill | 9,510 | 9,151 | 9,005 | 9,297 | 9,379 | |||||
| Assets held-for-sale | 4,581 | — | — | — | — | |||||
| Other assets | 11,531 | 11,280 | 10,992 | 11,025 | 12,006 | |||||
| Separate account assets | 165,056 | 143,829 | 135,771 | 146,038 | 148,417 | |||||
| Total assets | $ | 726,725 | $ | 662,894 | $ | 646,422 | $ | 663,072 | $ | 674,266 |
| LIABILITIES AND EQUITY | ||||||||||
| Liabilities | ||||||||||
| Future policy benefits | $ | 199,115 | $ | 184,916 | $ | 180,812 | $ | 187,222 | $ | 191,741 |
| Policyholder account balances | 214,237 | 207,921 | 205,279 | 210,597 | 212,569 | |||||
| Market risk benefits | 5,433 | 4,704 | 4,039 | 3,763 | 3,869 | |||||
| Other policy-related balances | 19,405 | 18,652 | 18,509 | 18,424 | 19,598 | |||||
| Policyholder dividends payable | 450 | 457 | 429 | 387 | 356 | |||||
| Payables for collateral under securities loaned and other transactions | 30,481 | 23,819 | 24,890 | 20,937 | 19,863 | |||||
| Short-term debt | 323 | 196 | 183 | 175 | 168 | |||||
| Long-term debt | 13,848 | 13,677 | 14,520 | 14,647 | 14,622 | |||||
| Collateral financing arrangement | 754 | 741 | 729 | 716 | 704 | |||||
| Junior subordinated debt securities | 3,156 | 3,157 | 3,158 | 3,158 | 3,159 | |||||
| Current income tax payable | — | — | — | — | 554 | |||||
| Deferred income tax liability | 3,622 | 1,828 | 991 | 950 | 1,111 | |||||
| Liabilities held-for-sale | 4,280 | — | — | — | — | |||||
| Other liabilities | 23,862 | 24,988 | 27,472 | 25,933 | 25,112 | |||||
| Separate account liabilities | 165,056 | 143,829 | 135,771 | 146,038 | 148,417 | |||||
| Total liabilities | 684,022 | 628,885 | 616,782 | 632,947 | 641,843 | |||||
| Equity | ||||||||||
| Preferred stock, at par value | — | — | — | — | — | |||||
| Common stock, at par value | 12 | 12 | 12 | 12 | 12 | |||||
| Additional paid-in capital | 33,531 | 33,548 | 33,589 | 33,616 | 33,617 | |||||
| Retained earnings | 38,005 | 38,478 | 39,176 | 40,332 | 39,957 | |||||
| Treasury stock, at cost | (19,072) | (20,188) | (20,862) | (21,458) | (22,245) | |||||
| Accumulated other comprehensive income (loss) | (10,044) | (18,106) | (22,526) | (22,621) | (19,147) | |||||
| Total MetLife, Inc.'s stockholders' equity | 42,432 | 33,744 | 29,389 | 29,881 | 32,194 | |||||
| Noncontrolling interests | 271 | 265 | 251 | 244 | 229 | |||||
| Total equity | 42,703 | 34,009 | 29,640 | 30,125 | 32,423 | |||||
| Total liabilities and equity | $ | 726,725 | $ | 662,894 | $ | 646,422 | $ | 663,072 | $ | 674,266 |
Table of Contents
| METLIFESUMMARY OF ADJUSTED EARNINGS AVAILABLE TO COMMON SHAREHOLDERS | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Unaudited (In millions) | March 31, 2022 | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | |||||
| Adjusted earnings before provision for income tax | ||||||||||
| U.S. | ||||||||||
| GROUP BENEFITS | $ | 149 | $ | 515 | $ | 530 | $ | 495 | $ | 391 |
| RETIREMENT AND INCOME SOLUTIONS | 688 | 473 | 420 | 477 | 505 | |||||
| TOTAL U.S. | $ | 837 | $ | 988 | $ | 950 | $ | 972 | $ | 896 |
| ASIA | 837 | 684 | 385 | 369 | 405 | |||||
| LATIN AMERICA | 183 | 330 | 203 | 233 | 303 | |||||
| EMEA | 72 | 88 | 90 | 72 | 76 | |||||
| METLIFE HOLDINGS | 435 | 479 | 143 | 228 | 195 | |||||
| CORPORATE & OTHER | (130) | (290) | (249) | (289) | (273) | |||||
| Total adjusted earnings before provision for income tax | $ | 2,234 | $ | 2,279 | $ | 1,522 | $ | 1,585 | $ | 1,602 |
| Provision for income tax expense (benefit) | ||||||||||
| U.S. | ||||||||||
| GROUP BENEFITS | $ | 32 | $ | 109 | $ | 113 | $ | 103 | $ | 84 |
| RETIREMENT AND INCOME SOLUTIONS | 142 | 99 | 86 | 96 | 105 | |||||
| TOTAL U.S. | $ | 174 | $ | 208 | $ | 199 | $ | 199 | $ | 189 |
| ASIA | 238 | 198 | 118 | 104 | 125 | |||||
| LATIN AMERICA | 48 | 79 | 44 | 49 | 88 | |||||
| EMEA | 17 | 22 | 26 | 8 | 16 | |||||
| METLIFE HOLDINGS | 87 | 97 | 26 | 44 | 37 | |||||
| CORPORATE & OTHER | (88) | (92) | (55) | (108) | (103) | |||||
| Total provision for income tax expense (benefit) | $ | 476 | $ | 512 | $ | 358 | $ | 296 | $ | 352 |
| Adjusted earnings available to common shareholders | ||||||||||
| U.S. | ||||||||||
| GROUP BENEFITS | $ | 117 | $ | 406 | $ | 417 | $ | 392 | $ | 307 |
| RETIREMENT AND INCOME SOLUTIONS | 546 | 374 | 334 | 381 | 400 | |||||
| TOTAL U.S. | $ | 663 | $ | 780 | $ | 751 | $ | 773 | $ | 707 |
| ASIA | 599 | 486 | 267 | 265 | 280 | |||||
| LATIN AMERICA | 135 | 251 | 159 | 184 | 215 | |||||
| EMEA | 55 | 66 | 64 | 64 | 60 | |||||
| METLIFE HOLDINGS | 348 | 382 | 117 | 184 | 158 | |||||
| CORPORATE & OTHER (1) | (105) | (227) | (258) | (210) | (236) | |||||
| Total adjusted earnings available to common shareholders (1) | $ | 1,695 | $ | 1,738 | $ | 1,100 | $ | 1,260 | $ | 1,184 |
| (1)Includes impact of preferred stock dividends of 63 million, 29 million, 64 million, 29 million and 66 million for the three months ended March 31, 2022, June 30, 2022, September 30, 2022, December 31, 2022 and March 31, 2023, respectively. |
All values are in US Dollars.
Table of Contents
| U.S. <br>STATEMENTS OF ADJUSTED EARNINGS AVAILABLE TO COMMON SHAREHOLDERS | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| For the Three Months Ended | For the Year-to-Date Period Ended | |||||||||||||||
| Unaudited (In millions) | March 31, 2022 | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | March 31, 2022 | March 31, 2023 | |||||||||
| Adjusted revenues | ||||||||||||||||
| Premiums | $ | 7,005 | $ | 8,094 | $ | 13,954 | $ | 5,617 | $ | 5,952 | $ | 7,005 | $ | 5,952 | ||
| Universal life and investment-type product policy fees | 298 | 283 | 286 | 291 | 297 | 298 | 297 | |||||||||
| Net investment income | 1,874 | 1,710 | 1,716 | 2,040 | 2,124 | 1,874 | 2,124 | |||||||||
| Other revenues | 426 | 404 | 514 | 408 | 448 | 426 | 448 | |||||||||
| Total adjusted revenues | 9,603 | 10,491 | 16,470 | 8,356 | 8,821 | 9,603 | 8,821 | |||||||||
| Adjusted expenses | ||||||||||||||||
| Policyholder benefits and claims and policyholder dividends | 7,417 | 8,115 | 13,978 | 5,729 | 6,219 | 7,417 | 6,219 | |||||||||
| Policyholder liability remeasurement (gains) losses | (23) | (7) | 9 | (8) | (33) | (23) | (33) | |||||||||
| Interest credited to policyholder account balances | 406 | 453 | 548 | 650 | 692 | 406 | 692 | |||||||||
| Capitalization of DAC | (32) | (23) | (38) | (38) | (51) | (32) | (51) | |||||||||
| Amortization of DAC and VOBA | 17 | 15 | 17 | 17 | 17 | 17 | 17 | |||||||||
| Amortization of negative VOBA | — | — | — | — | — | — | — | |||||||||
| Interest expense on debt | 2 | 1 | 3 | 3 | 3 | 2 | 3 | |||||||||
| Other expenses | 979 | 949 | 1,003 | 1,031 | 1,078 | 979 | 1,078 | |||||||||
| Total adjusted expenses | 8,766 | 9,503 | 15,520 | 7,384 | 7,925 | 8,766 | 7,925 | |||||||||
| Adjusted earnings before provision for income tax | 837 | 988 | 950 | 972 | 896 | 837 | 896 | |||||||||
| Provision for income tax expense (benefit) | 174 | 208 | 199 | 199 | 189 | 174 | 189 | |||||||||
| Adjusted earnings | 663 | 780 | 751 | 773 | 707 | 663 | 707 | |||||||||
| Preferred stock dividends | — | — | — | — | — | — | — | |||||||||
| Adjusted earnings available to common shareholders | $ | 663 | $ | 780 | $ | 751 | $ | 773 | $ | 707 | $ | 663 | $ | 707 | ||
| Adjusted premiums, fees and other revenues | $ | 7,729 | $ | 8,781 | $ | 14,754 | $ | 6,316 | $ | 6,697 | $ | 7,729 | $ | 6,697 | ||
| Less: PRT | 1,258 | 2,564 | 8,466 | (69) | (21) | 1,258 | (21) | |||||||||
| Adjusted premiums, fees and other revenues, excluding PRT | $ | 6,471 | $ | 6,217 | $ | 6,288 | $ | 6,385 | $ | 6,718 | $ | 6,471 | $ | 6,718 |
Table of Contents
| U.S.<br>GROUP BENEFITS<br>STATEMENTS OF ADJUSTED EARNINGS AVAILABLE TO COMMON SHAREHOLDERS | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| For the Three Months Ended | For the Year-to-Date Period Ended | ||||||||||||||
| Unaudited (In millions) | March 31, 2022 | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | March 31, 2022 | March 31, 2023 | ||||||||
| Adjusted revenues | |||||||||||||||
| Premiums | $ | 5,433 | $ | 5,210 | $ | 5,161 | $ | 5,247 | $ | 5,451 | $ | 5,433 | $ | 5,451 | |
| Universal life and investment-type product policy fees | 216 | 210 | 215 | 214 | 218 | 216 | 218 | ||||||||
| Net investment income | 280 | 278 | 279 | 299 | 310 | 280 | 310 | ||||||||
| Other revenues | 355 | 336 | 331 | 338 | 380 | 355 | 380 | ||||||||
| Total adjusted revenues | 6,284 | 6,034 | 5,986 | 6,098 | 6,359 | 6,284 | 6,359 | ||||||||
| Adjusted expenses | |||||||||||||||
| Policyholder benefits and claims and policyholder dividends | 5,253 | 4,640 | 4,538 | 4,645 | 4,994 | 5,253 | 4,994 | ||||||||
| Policyholder liability remeasurement (gains) losses | (1) | 2 | 4 | 2 | (4) | (1) | (4) | ||||||||
| Interest credited to policyholder account balances | 31 | 32 | 34 | 46 | 46 | 31 | 46 | ||||||||
| Capitalization of DAC | (4) | (6) | (4) | (4) | (6) | (4) | (6) | ||||||||
| Amortization of DAC and VOBA | 6 | 7 | 7 | 6 | 6 | 6 | 6 | ||||||||
| Amortization of negative VOBA | — | — | — | — | — | — | — | ||||||||
| Interest expense on debt | — | — | 1 | — | — | — | — | ||||||||
| Other expenses | 850 | 844 | 876 | 908 | 932 | 850 | 932 | ||||||||
| Total adjusted expenses | 6,135 | 5,519 | 5,456 | 5,603 | 5,968 | 6,135 | 5,968 | ||||||||
| Adjusted earnings before provision for income tax | 149 | 515 | 530 | 495 | 391 | 149 | 391 | ||||||||
| Provision for income tax expense (benefit) | 32 | 109 | 113 | 103 | 84 | 32 | 84 | ||||||||
| Adjusted earnings | 117 | 406 | 417 | 392 | 307 | 117 | 307 | ||||||||
| Preferred stock dividends | — | — | — | — | — | — | — | ||||||||
| Adjusted earnings available to common shareholders | $ | 117 | $ | 406 | $ | 417 | $ | 392 | $ | 307 | $ | 117 | $ | 307 | |
| Adjusted premiums, fees and other revenues | $ | 6,004 | $ | 5,756 | $ | 5,707 | $ | 5,799 | $ | 6,049 | $ | 6,004 | $ | 6,049 |
Table of Contents
| U.S.<br>RETIREMENT AND INCOME SOLUTIONS<br>STATEMENTS OF ADJUSTED EARNINGS AVAILABLE TO COMMON SHAREHOLDERS | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| For the Three Months Ended | For the Year-to-Date Period Ended | ||||||||||||||
| Unaudited (In millions) | March 31, 2022 | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | March 31, 2022 | March 31, 2023 | ||||||||
| Adjusted revenues | |||||||||||||||
| Premiums | $ | 1,572 | $ | 2,884 | $ | 8,793 | $ | 370 | $ | 501 | $ | 1,572 | $ | 501 | |
| Universal life and investment-type product policy fees | 82 | 73 | 71 | 77 | 79 | 82 | 79 | ||||||||
| Net investment income | 1,594 | 1,432 | 1,437 | 1,741 | 1,814 | 1,594 | 1,814 | ||||||||
| Other revenues | 71 | 68 | 183 | 70 | 68 | 71 | 68 | ||||||||
| Total adjusted revenues | 3,319 | 4,457 | 10,484 | 2,258 | 2,462 | 3,319 | 2,462 | ||||||||
| Adjusted expenses | |||||||||||||||
| Policyholder benefits and claims and policyholder dividends | 2,164 | 3,475 | 9,440 | 1,084 | 1,225 | 2,164 | 1,225 | ||||||||
| Policyholder liability remeasurement (gains) losses | (22) | (9) | 5 | (10) | (29) | (22) | (29) | ||||||||
| Interest credited to policyholder account balances | 375 | 421 | 514 | 604 | 646 | 375 | 646 | ||||||||
| Capitalization of DAC | (28) | (17) | (34) | (34) | (45) | (28) | (45) | ||||||||
| Amortization of DAC and VOBA | 11 | 8 | 10 | 11 | 11 | 11 | 11 | ||||||||
| Amortization of negative VOBA | — | — | — | — | — | — | — | ||||||||
| Interest expense on debt | 2 | 1 | 2 | 3 | 3 | 2 | 3 | ||||||||
| Other expenses | 129 | 105 | 127 | 123 | 146 | 129 | 146 | ||||||||
| Total adjusted expenses | 2,631 | 3,984 | 10,064 | 1,781 | 1,957 | 2,631 | 1,957 | ||||||||
| Adjusted earnings before provision for income tax | 688 | 473 | 420 | 477 | 505 | 688 | 505 | ||||||||
| Provision for income tax expense (benefit) | 142 | 99 | 86 | 96 | 105 | 142 | 105 | ||||||||
| Adjusted earnings | 546 | 374 | 334 | 381 | 400 | 546 | 400 | ||||||||
| Preferred stock dividends | — | — | — | — | — | — | — | ||||||||
| Adjusted earnings available to common shareholders | $ | 546 | $ | 374 | $ | 334 | $ | 381 | $ | 400 | $ | 546 | $ | 400 | |
| Adjusted premiums, fees and other revenues | $ | 1,725 | $ | 3,025 | $ | 9,047 | $ | 517 | $ | 648 | $ | 1,725 | $ | 648 | |
| Less: PRT | 1,258 | 2,564 | 8,466 | (69) | (21) | 1,258 | (21) | ||||||||
| Adjusted premiums, fees and other revenues, excluding PRT | $ | 467 | $ | 461 | $ | 581 | $ | 586 | $ | 669 | $ | 467 | $ | 669 |
Table of Contents
| U.S.<br>GROUP BENEFITS | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| OTHER EXPENSES BY MAJOR CATEGORY | |||||||||||||||
| For the Three Months Ended | |||||||||||||||
| Unaudited (In millions) | March 31, 2022 | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | ||||||||||
| Direct and allocated expenses | $ | 438 | $ | 436 | $ | 444 | $ | 475 | $ | 474 | |||||
| Pension, postretirement and postemployment benefit costs | 1 | 1 | 2 | (1) | 13 | ||||||||||
| Premium taxes, other taxes, and licenses & fees | 77 | 73 | 88 | 80 | 80 | ||||||||||
| Commissions and other variable expenses | 334 | 334 | 342 | 354 | 365 | ||||||||||
| Adjusted other expenses | $ | 850 | $ | 844 | $ | 876 | $ | 908 | $ | 932 | |||||
| OTHER STATISTICAL INFORMATION (1) | |||||||||||||||
| For the Three Months Ended | |||||||||||||||
| Unaudited (In millions, except ratios) | March 31, 2022 | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | ||||||||||
| Group Life (2) | |||||||||||||||
| Adjusted premiums, fees and other revenues | $ | 2,180 | $ | 2,126 | $ | 2,125 | $ | 2,131 | $ | 2,232 | |||||
| Mortality ratio | 103.3 | % | 85.4 | % | 85.7 | % | 87.3 | % | 90.5 | % | |||||
| Group Non-Medical Health (3) | |||||||||||||||
| Adjusted premiums, fees and other revenues | $ | 2,519 | $ | 2,481 | $ | 2,475 | $ | 2,533 | $ | 2,601 | |||||
| Interest adjusted benefit ratio (4) | 72.6 | % | 73.1 | % | 70.1 | % | 70.1 | % | 72.9 | % | |||||
| (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. |
Table of Contents
| U.S.RETIREMENT AND INCOME SOLUTIONS | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| FUTURE POLICY BENEFITS (1) | |||||||||
| Unaudited (In millions) | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | |||||
| Balance, end of period (at balance sheet discount rate) (2) | 62,407 | $ | 58,840 | $ | 61,264 | $ | 62,737 | $ | 63,671 |
| Less: Accumulated other comprehensive (income) loss | 720 | (4,531) | (2,856) | (1,302) | |||||
| Balance, end of period (at original discount rate) | 56,300 | $ | 58,120 | $ | 65,795 | $ | 65,593 | $ | 64,973 |
| POLICYHOLDER ACCOUNT BALANCES | |||||||||
| Unaudited (In millions) | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | |||||
| Balance, end of period | 81,177 | $ | 79,821 | $ | 79,311 | $ | 80,066 | $ | 79,973 |
| SEPARATE ACCOUNT LIABILITIES | |||||||||
| Unaudited (In millions) | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | |||||
| Balance, end of period | 69,123 | $ | 61,622 | $ | 58,838 | $ | 60,040 | $ | 57,990 |
| SYNTHETIC GICS (3), (4) | |||||||||
| Unaudited (In millions) | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | |||||
| Balance, end of period | 43,485 | $ | 44,841 | $ | 45,066 | $ | 46,316 | $ | 47,850 |
| LONGEVITY REINSURANCE (5) | |||||||||
| Unaudited (In millions) | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | |||||
| Balance, end of period | 14,898 | $ | 14,753 | $ | 13,427 | $ | 16,602 | $ | 17,085 |
| (1)Includes 3,206 million, 3,291 million, 3,394 million, 3,392 million and 3,449 million of DPL at March 31, 2022, June 30, 2022, September 30, 2022, December 31, 2022 and March 31, 2023, respectively. | |||||||||
| (2)Represents the current discount rate at the respective balance sheet date. | |||||||||
| (3)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. | |||||||||
| (4)Includes 1,884 million, 0, 0, 147 million and 2,262 million of transfers from separate account GICs to synthetic GICs at March 31, 2022, June 30, 2022, September 30, 2022, December 31, 2022 and March 31, 2023, respectively. These transfers are reported as surrenders and withdrawals on the separate account liabilities table and premiums and deposits on the synthetic GICs table. | |||||||||
| (5)The contract value presented represents notional amounts based on the present value of fixed annuity premiums related to longevity reinsurance contracts associated with the United Kingdom pension risk transfer market. |
All values are in US Dollars.
Table of Contents
| U.S.<br>RETIREMENT AND INCOME SOLUTIONS | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| OTHER EXPENSES BY MAJOR CATEGORY | |||||||||||||||
| For the Three Months Ended | |||||||||||||||
| Unaudited (In millions) | March 31, 2022 | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | ||||||||||
| Direct and allocated expenses | $ | 65 | $ | 61 | $ | 64 | $ | 70 | $ | 71 | |||||
| Pension, postretirement and postemployment benefit costs | — | 1 | — | — | 3 | ||||||||||
| Premium taxes, other taxes, and licenses & fees | 5 | 4 | 22 | 10 | 9 | ||||||||||
| Commissions and other variable expenses | 59 | 39 | 41 | 43 | 63 | ||||||||||
| Adjusted other expenses | $ | 129 | $ | 105 | $ | 127 | $ | 123 | $ | 146 | |||||
| SPREAD | |||||||||||||||
| For the Three Months Ended | |||||||||||||||
| Unaudited | March 31, 2022 | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | ||||||||||
| Investment income yield excluding variable investment income yield | 3.63 | % | 3.88 | % | 4.20 | % | 4.69 | % | 4.98 | % | |||||
| Variable investment income yield | 26.95 | % | 7.03 | % | (3.24) | % | 0.50 | % | (0.27) | % | |||||
| Total investment income yield | 4.52 | % | 4.01 | % | 3.90 | % | 4.53 | % | 4.78 | % | |||||
| Average crediting rate | 2.84 | % | 2.96 | % | 3.29 | % | 3.65 | % | 3.82 | % | |||||
| Amortization of DPL and losses at inception (1) | (0.21) | % | (0.21) | % | (0.21) | % | (0.20) | % | (0.21) | % | |||||
| Total average crediting rate | 2.63 | % | 2.75 | % | 3.08 | % | 3.45 | % | 3.61 | % | |||||
| Annualized general account spread | 1.89 | % | 1.26 | % | 0.82 | % | 1.08 | % | 1.17 | % | |||||
| Annualized general account spread excluding variable investment income yield | 1.00 | % | 1.13 | % | 1.12 | % | 1.24 | % | 1.37 | % | |||||
| (1) Includes the amortization of DPL of (0.21)%, (0.21)%, (0.22)%, (0.20)% and (0.22)% for the three months ended March 31, 2022, June 30, 2022, September 30, 2022, December 31, 2022 and March 31, 2023, respectively. |
Table of Contents
| ASIA<br>STATEMENTS OF ADJUSTED EARNINGS AVAILABLE TO COMMON SHAREHOLDERS | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| For the Three Months Ended | For the Year-to-Date Period Ended | ||||||||||||||
| Unaudited (In millions) | March 31, 2022 | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | March 31, 2022 | March 31, 2023 | ||||||||
| Adjusted revenues | |||||||||||||||
| Premiums | $ | 1,552 | $ | 1,393 | $ | 1,346 | $ | 1,272 | $ | 1,377 | $ | 1,552 | $ | 1,377 | |
| Universal life and investment-type product policy fees | 403 | 420 | 438 | 432 | 397 | 403 | 397 | ||||||||
| Net investment income | 1,242 | 1,012 | 827 | 828 | 881 | 1,242 | 881 | ||||||||
| Other revenues | 21 | 24 | 21 | 24 | 20 | 21 | 20 | ||||||||
| Total adjusted revenues | 3,218 | 2,849 | 2,632 | 2,556 | 2,675 | 3,218 | 2,675 | ||||||||
| Adjusted expenses | |||||||||||||||
| Policyholder benefits and claims and policyholder dividends | 1,271 | 1,123 | 1,119 | 1,051 | 1,130 | 1,271 | 1,130 | ||||||||
| Policyholder liability remeasurement (gains) losses | (24) | (10) | 61 | 42 | 11 | (24) | 11 | ||||||||
| Interest credited to policyholder account balances | 498 | 493 | 497 | 515 | 536 | 498 | 536 | ||||||||
| Capitalization of DAC | (388) | (381) | (351) | (410) | (401) | (388) | (401) | ||||||||
| Amortization of DAC and VOBA | 194 | 182 | 178 | 191 | 193 | 194 | 193 | ||||||||
| Amortization of negative VOBA | (7) | (5) | (6) | (6) | (6) | (7) | (6) | ||||||||
| Interest expense on debt | — | — | — | — | — | — | — | ||||||||
| Other expenses | 837 | 763 | 749 | 804 | 807 | 837 | 807 | ||||||||
| Total adjusted expenses | 2,381 | 2,165 | 2,247 | 2,187 | 2,270 | 2,381 | 2,270 | ||||||||
| Adjusted earnings before provision for income tax | 837 | 684 | 385 | 369 | 405 | 837 | 405 | ||||||||
| Provision for income tax expense (benefit) | 238 | 198 | 118 | 104 | 125 | 238 | 125 | ||||||||
| Adjusted earnings | 599 | 486 | 267 | 265 | 280 | 599 | 280 | ||||||||
| Preferred stock dividends | — | — | — | — | — | — | — | ||||||||
| Adjusted earnings available to common shareholders | $ | 599 | $ | 486 | $ | 267 | $ | 265 | $ | 280 | $ | 599 | $ | 280 | |
| Adjusted premiums, fees and other revenues | $ | 1,976 | $ | 1,837 | $ | 1,805 | $ | 1,728 | $ | 1,794 | $ | 1,976 | $ | 1,794 |
Table of Contents
| ASIA | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| ADJUSTED PREMIUMS, FEES AND OTHER REVENUES | ||||||||||
| For the Three Months Ended | ||||||||||
| Unaudited (In millions) | March 31, 2022 | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | |||||
| Adjusted premiums, fees and other revenues | $ | 1,976 | $ | 1,837 | $ | 1,805 | $ | 1,728 | $ | 1,794 |
| Adjusted premiums, fees and other revenues, on a constant currency basis | $ | 1,792 | $ | 1,795 | $ | 1,856 | $ | 1,814 | $ | 1,794 |
| Add: Operating joint ventures, on a constant currency basis (1) | 372 | 300 | 390 | 379 | 499 | |||||
| Adjusted premiums, fees and other revenues, including operating joint ventures, on a constant currency basis | $ | 2,164 | $ | 2,095 | $ | 2,246 | $ | 2,193 | $ | 2,293 |
| OTHER EXPENSES BY MAJOR CATEGORY | ||||||||||
| For the Three Months Ended | ||||||||||
| Unaudited (In millions) | March 31, 2022 | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | |||||
| Direct and allocated expenses | $ | 326 | $ | 291 | $ | 285 | $ | 300 | $ | 303 |
| Pension, postretirement and postemployment benefit costs | 20 | 19 | 17 | 23 | 17 | |||||
| Premium taxes, other taxes, and licenses & fees | 39 | 31 | 36 | 37 | 33 | |||||
| Commissions and other variable expenses | 452 | 422 | 411 | 444 | 454 | |||||
| Adjusted other expenses | $ | 837 | $ | 763 | $ | 749 | $ | 804 | $ | 807 |
| Adjusted other expenses, net of adjusted capitalization of DAC | $ | 449 | $ | 382 | $ | 398 | $ | 394 | $ | 406 |
| Adjusted other expenses on a constant currency basis | $ | 753 | $ | 746 | $ | 775 | $ | 848 | $ | 807 |
| Add: Operating joint ventures, on a constant currency basis (2) | 110 | 102 | 111 | 111 | 129 | |||||
| Adjusted other expenses, including operating joint ventures, on a constant currency basis | $ | 863 | $ | 848 | $ | 886 | $ | 959 | $ | 936 |
| Adjusted other expenses, including operating joint ventures, net of adjusted capitalization of DAC, on a constant currency basis | $ | 487 | $ | 456 | $ | 500 | $ | 507 | $ | 501 |
| SALES ON A CONSTANT CURRENCY BASIS | ||||||||||
| For the Three Months Ended | ||||||||||
| Unaudited (In millions) | March 31, 2022 | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | |||||
| Japan: | ||||||||||
| Life | $ | 182 | $ | 107 | $ | 102 | $ | 103 | $ | 84 |
| Accident & Health | 76 | 74 | 69 | 64 | 68 | |||||
| Annuities | 97 | 129 | 202 | 267 | 264 | |||||
| Other | 2 | 2 | 3 | 2 | 2 | |||||
| Total Japan | 357 | 312 | 376 | 436 | 418 | |||||
| Other Asia | 195 | 160 | 215 | 195 | 235 | |||||
| Total sales | $ | 552 | $ | 472 | $ | 591 | $ | 631 | $ | 653 |
| OTHER STATISTICAL INFORMATION | ||||||||||
| For the Three Months Ended | ||||||||||
| Unaudited (In millions) | March 31, 2022 | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | |||||
| Adjusted earnings available to common shareholders | $ | 599 | $ | 486 | $ | 267 | $ | 265 | $ | 280 |
| Adjusted earnings available to common shareholders, on a constant currency basis | $ | 581 | $ | 478 | $ | 267 | $ | 270 | $ | 280 |
| (1)Includes MetLife, Inc.'s share of adjusted premiums, fees and other revenues for operating joint ventures of: (i) China, (ii) India, (iii) Malaysia and (iv) Vietnam, on the basis of proportional consolidation and MetLife's percentage ownership. These operating joint ventures are accounted for using the equity method of accounting under GAAP. | ||||||||||
| (2)Includes MetLife, Inc.'s share of adjusted other expenses for operating joint ventures of: (i) China, (ii) India, (iii) Malaysia and (iv) Vietnam, on the basis of proportional consolidation and MetLife's percentage ownership. These operating joint ventures are accounted for using the equity method of accounting under GAAP. |
Table of Contents
| ASIA | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| ASIA GENERAL ACCOUNT ASSETS UNDER MANAGEMENT AND RELATED MEASURES | ||||||||||
| Unaudited (In millions) | March 31, 2022 | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | |||||
| GA AUM | $ | 131,989 | $ | 117,597 | $ | 109,930 | $ | 116,289 | $ | 121,072 |
| GA AUM (at amortized cost) | $ | 129,935 | $ | 122,257 | $ | 119,302 | $ | 126,335 | $ | 127,120 |
| GA AUM (at amortized cost), on a constant currency basis | $ | 123,037 | $ | 122,692 | $ | 124,115 | $ | 125,516 | $ | 127,120 |
| Add: Operating joint ventures, on a constant currency basis (1) | 6,997 | 7,212 | 7,411 | 7,774 | 8,201 | |||||
| GA AUM (at amortized cost), including operating joint ventures, on a constant currency basis | $ | 130,034 | $ | 129,904 | $ | 131,526 | $ | 133,290 | $ | 135,321 |
| (1)Includes MetLife, Inc.'s share of GA AUM for operating joint ventures of: (i) China, (ii) India, (iii) Malaysia and (iv) Vietnam, on the basis of proportional consolidation and MetLife's percentage ownership. These operating joint ventures are accounted for using the equity method of accounting under GAAP. |
Table of Contents
| LATIN AMERICA<br>STATEMENTS OF ADJUSTED EARNINGS AVAILABLE TO COMMON SHAREHOLDERS | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| For the Three Months Ended | For the Year-to-Date Period Ended | ||||||||||||||
| Unaudited (In millions) | March 31, 2022 | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | March 31, 2022 | March 31, 2023 | ||||||||
| Adjusted revenues | |||||||||||||||
| Premiums | $ | 738 | $ | 822 | $ | 822 | $ | 842 | $ | 1,025 | $ | 738 | $ | 1,025 | |
| Universal life and investment-type product policy fees | 289 | 294 | 293 | 299 | 335 | 289 | 335 | ||||||||
| Net investment income | 322 | 459 | 399 | 413 | 379 | 322 | 379 | ||||||||
| Other revenues | 9 | 10 | 10 | 10 | 12 | 9 | 12 | ||||||||
| Total adjusted revenues | 1,358 | 1,585 | 1,524 | 1,564 | 1,751 | 1,358 | 1,751 | ||||||||
| Adjusted expenses | |||||||||||||||
| Policyholder benefits and claims and policyholder dividends | 780 | 812 | 872 | 856 | 966 | 780 | 966 | ||||||||
| Policyholder liability remeasurement (gains) losses | (14) | 6 | 3 | (16) | (4) | (14) | (4) | ||||||||
| Interest credited to policyholder account balances | 68 | 84 | 89 | 94 | 99 | 68 | 99 | ||||||||
| Capitalization of DAC | (111) | (116) | (130) | (137) | (151) | (111) | (151) | ||||||||
| Amortization of DAC and VOBA | 100 | 101 | 104 | 105 | 106 | 100 | 106 | ||||||||
| Amortization of negative VOBA | — | — | — | — | — | — | — | ||||||||
| Interest expense on debt | 3 | 4 | 3 | 2 | 2 | 3 | 2 | ||||||||
| Other expenses | 349 | 364 | 380 | 427 | 430 | 349 | 430 | ||||||||
| Total adjusted expenses | 1,175 | 1,255 | 1,321 | 1,331 | 1,448 | 1,175 | 1,448 | ||||||||
| Adjusted earnings before provision for income tax | 183 | 330 | 203 | 233 | 303 | 183 | 303 | ||||||||
| Provision for income tax expense (benefit) | 48 | 79 | 44 | 49 | 88 | 48 | 88 | ||||||||
| Adjusted earnings | 135 | 251 | 159 | 184 | 215 | 135 | 215 | ||||||||
| Preferred stock dividends | — | — | — | — | — | — | — | ||||||||
| Adjusted earnings available to common shareholders | $ | 135 | $ | 251 | $ | 159 | $ | 184 | $ | 215 | $ | 135 | $ | 215 | |
| Adjusted premiums, fees and other revenues | $ | 1,036 | $ | 1,126 | $ | 1,125 | $ | 1,151 | $ | 1,372 | $ | 1,036 | $ | 1,372 |
Table of Contents
| LATIN AMERICA | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| OTHER EXPENSES BY MAJOR CATEGORY | ||||||||||
| For the Three Months Ended | ||||||||||
| Unaudited (In millions) | March 31, 2022 | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | |||||
| Direct and allocated expenses | $ | 121 | $ | 116 | $ | 116 | $ | 140 | $ | 133 |
| Pension, postretirement and postemployment benefit costs | 1 | 1 | 1 | 1 | 1 | |||||
| Premium taxes, other taxes, and licenses & fees | 12 | 11 | 12 | 13 | 21 | |||||
| Commissions and other variable expenses | 215 | 236 | 251 | 273 | 275 | |||||
| Adjusted other expenses | $ | 349 | $ | 364 | $ | 380 | $ | 427 | $ | 430 |
| Adjusted other expenses, net of adjusted capitalization of DAC | $ | 238 | $ | 248 | $ | 250 | $ | 290 | $ | 279 |
| Adjusted other expenses on a constant currency basis | $ | 362 | $ | 373 | $ | 407 | $ | 452 | $ | 430 |
| Adjusted other expenses, net of adjusted capitalization of DAC, on a constant currency basis | $ | 251 | $ | 253 | $ | 267 | $ | 307 | $ | 279 |
| SALES ON A CONSTANT CURRENCY BASIS | ||||||||||
| For the Three Months Ended | ||||||||||
| Unaudited (In millions) | March 31, 2022 | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | |||||
| Mexico | $ | 167 | $ | 136 | $ | 139 | $ | 138 | 203 | |
| Chile | 72 | 86 | 91 | 95 | 101 | |||||
| All other | 54 | 64 | 80 | 82 | 94 | |||||
| Total sales | $ | 293 | $ | 286 | $ | 310 | $ | 315 | $ | 398 |
| OTHER STATISTICAL INFORMATION | ||||||||||
| For the Three Months Ended | ||||||||||
| Unaudited (In millions) | March 31, 2022 | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | |||||
| Adjusted premiums, fees and other revenues | $ | 1,036 | $ | 1,126 | $ | 1,125 | $ | 1,151 | $ | 1,372 |
| Adjusted earnings available to common shareholders | $ | 135 | $ | 251 | $ | 159 | $ | 184 | $ | 215 |
| Adjusted premiums, fees and other revenues, on a constant currency basis | $ | 1,087 | $ | 1,175 | $ | 1,224 | $ | 1,227 | $ | 1,372 |
| Adjusted earnings available to common shareholders, on a constant currency basis | $ | 142 | $ | 268 | $ | 179 | $ | 200 | $ | 215 |
Table of Contents
| EMEA<br>STATEMENTS OF ADJUSTED EARNINGS AVAILABLE TO COMMON SHAREHOLDERS | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| For the Three Months Ended | For the Year-to-Date Period Ended | ||||||||||||||
| Unaudited (In millions) | March 31, 2022 | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | March 31, 2022 | March 31, 2023 | ||||||||
| Adjusted revenues | |||||||||||||||
| Premiums | $ | 509 | $ | 493 | $ | 472 | $ | 488 | $ | 496 | $ | 509 | $ | 496 | |
| Universal life and investment-type product policy fees | 83 | 77 | 57 | 67 | 77 | 83 | 77 | ||||||||
| Net investment income | 41 | 38 | 40 | 41 | 45 | 41 | 45 | ||||||||
| Other revenues | 9 | 8 | 8 | 10 | 8 | 9 | 8 | ||||||||
| Total adjusted revenues | 642 | 616 | 577 | 606 | 626 | 642 | 626 | ||||||||
| Adjusted expenses | |||||||||||||||
| Policyholder benefits and claims and policyholder dividends | 276 | 226 | 235 | 239 | 261 | 276 | 261 | ||||||||
| Policyholder liability remeasurement (gains) losses | 4 | 6 | (11) | (5) | (3) | 4 | (3) | ||||||||
| Interest credited to policyholder account balances | 17 | 20 | 16 | 18 | 16 | 17 | 16 | ||||||||
| Capitalization of DAC | (101) | (108) | (96) | (106) | (108) | (101) | (108) | ||||||||
| Amortization of DAC and VOBA | 79 | 88 | 75 | 81 | 85 | 79 | 85 | ||||||||
| Amortization of negative VOBA | (1) | (2) | (1) | (1) | (1) | (1) | (1) | ||||||||
| Interest expense on debt | — | — | — | — | — | — | — | ||||||||
| Other expenses | 296 | 298 | 269 | 308 | 300 | 296 | 300 | ||||||||
| Total adjusted expenses | 570 | 528 | 487 | 534 | 550 | 570 | 550 | ||||||||
| Adjusted earnings before provision for income tax | 72 | 88 | 90 | 72 | 76 | 72 | 76 | ||||||||
| Provision for income tax expense (benefit) | 17 | 22 | 26 | 8 | 16 | 17 | 16 | ||||||||
| Adjusted earnings | 55 | 66 | 64 | 64 | 60 | 55 | 60 | ||||||||
| Preferred stock dividends | — | — | — | — | — | — | — | ||||||||
| Adjusted earnings available to common shareholders | $ | 55 | $ | 66 | $ | 64 | $ | 64 | $ | 60 | $ | 55 | $ | 60 | |
| Adjusted premiums, fees and other revenues | $ | 601 | $ | 578 | $ | 537 | $ | 565 | $ | 581 | $ | 601 | $ | 581 |
Table of Contents
| EMEA | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| OTHER EXPENSES BY MAJOR CATEGORY | ||||||||||
| For the Three Months Ended | ||||||||||
| Unaudited (In millions) | March 31, 2022 | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | |||||
| Direct and allocated expenses | $ | 97 | $ | 101 | $ | 91 | $ | 100 | $ | 94 |
| Pension, postretirement and postemployment benefit costs | 1 | 2 | 1 | 1 | 1 | |||||
| Premium taxes, other taxes, and licenses & fees | 6 | 4 | 3 | 6 | 5 | |||||
| Commissions and other variable expenses | 192 | 191 | 174 | 201 | 200 | |||||
| Adjusted other expenses | $ | 296 | $ | 298 | $ | 269 | $ | 308 | $ | 300 |
| Adjusted other expenses, net of adjusted capitalization of DAC | $ | 195 | $ | 190 | $ | 173 | $ | 202 | $ | 192 |
| Adjusted other expenses on a constant currency basis | $ | 276 | $ | 289 | $ | 272 | $ | 314 | $ | 300 |
| Adjusted other expenses, net of adjusted capitalization of DAC, on a constant currency basis | $ | 182 | $ | 185 | $ | 173 | $ | 205 | $ | 192 |
| OTHER STATISTICAL INFORMATION | ||||||||||
| For the Three Months Ended | ||||||||||
| Unaudited (In millions) | March 31, 2022 | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | |||||
| Adjusted premiums, fees and other revenues | $ | 601 | $ | 578 | $ | 537 | $ | 565 | $ | 581 |
| Adjusted earnings available to common shareholders | $ | 55 | $ | 66 | $ | 64 | $ | 64 | $ | 60 |
| Adjusted premiums, fees and other revenues, on a constant currency basis | $ | 551 | $ | 555 | $ | 539 | $ | 572 | $ | 581 |
| Adjusted earnings available to common shareholders, on a constant currency basis | $ | 46 | $ | 60 | $ | 65 | $ | 66 | $ | 60 |
| Total sales on a constant currency basis | $ | 209 | $ | 208 | $ | 172 | $ | 187 | $ | 266 |
Table of Contents
| METLIFE HOLDINGS<br>STATEMENTS OF ADJUSTED EARNINGS AVAILABLE TO COMMON SHAREHOLDERS | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| For the Three Months Ended | For the Year-to-Date Period Ended | ||||||||||||||
| Unaudited (In millions) | March 31, 2022 | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | March 31, 2022 | March 31, 2023 | ||||||||
| Adjusted revenues | |||||||||||||||
| Premiums | $ | 776 | $ | 760 | $ | 745 | $ | 785 | $ | 723 | $ | 776 | $ | 723 | |
| Universal life and investment-type product policy fees | 228 | 296 | 202 | 176 | 183 | 228 | 183 | ||||||||
| Net investment income | 1,393 | 1,268 | 1,103 | 1,150 | 1,127 | 1,393 | 1,127 | ||||||||
| Other revenues | 44 | 23 | 39 | 49 | 53 | 44 | 53 | ||||||||
| Total adjusted revenues | 2,441 | 2,347 | 2,089 | 2,160 | 2,086 | 2,441 | 2,086 | ||||||||
| Adjusted expenses | |||||||||||||||
| Policyholder benefits and claims and policyholder dividends | 1,482 | 1,354 | 1,385 | 1,415 | 1,369 | 1,482 | 1,369 | ||||||||
| Policyholder liability remeasurement (gains) losses | 16 | 4 | 74 | 7 | 20 | 16 | 20 | ||||||||
| Interest credited to policyholder account balances | 202 | 203 | 202 | 206 | 199 | 202 | 199 | ||||||||
| Capitalization of DAC | (6) | (7) | (9) | (7) | (6) | (6) | (6) | ||||||||
| Amortization of DAC and VOBA | 75 | 70 | 64 | 61 | 68 | 75 | 68 | ||||||||
| Amortization of negative VOBA | — | — | — | — | — | — | — | ||||||||
| Interest expense on debt | 1 | 2 | 2 | 3 | 3 | 1 | 3 | ||||||||
| Other expenses | 236 | 242 | 228 | 247 | 238 | 236 | 238 | ||||||||
| Total adjusted expenses | 2,006 | 1,868 | 1,946 | 1,932 | 1,891 | 2,006 | 1,891 | ||||||||
| Adjusted earnings before provision for income tax | 435 | 479 | 143 | 228 | 195 | 435 | 195 | ||||||||
| Provision for income tax expense (benefit) | 87 | 97 | 26 | 44 | 37 | 87 | 37 | ||||||||
| Adjusted earnings | 348 | 382 | 117 | 184 | 158 | 348 | 158 | ||||||||
| Preferred stock dividends | — | — | — | — | — | — | — | ||||||||
| Adjusted earnings available to common shareholders | $ | 348 | $ | 382 | $ | 117 | $ | 184 | $ | 158 | $ | 348 | $ | 158 | |
| Adjusted premiums, fees and other revenues | $ | 1,048 | $ | 1,079 | $ | 986 | $ | 1,010 | $ | 959 | $ | 1,048 | $ | 959 |
Table of Contents
| METLIFE HOLDINGS | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| FUTURE POLICY BENEFITS (1) | ||||||||||
| Unaudited (In millions) | March 31, 2022 | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | |||||
| Annuities | $ | 1,842 | $ | 1,696 | $ | 1,582 | $ | 1,593 | $ | 1,606 |
| Life and Other | 55,080 | 54,830 | 54,605 | 54,573 | 54,365 | |||||
| Long Term Care | 17,755 | 14,828 | 12,986 | 13,845 | 14,617 | |||||
| Balance, end of period (at balance sheet discount rate) (2) | $ | 74,677 | $ | 71,354 | $ | 69,173 | $ | 70,011 | $ | 70,588 |
| Less: | ||||||||||
| Annuities | $ | 136 | $ | 12 | $ | (89) | $ | (60) | $ | (29) |
| Life and Other | 233 | 41 | (93) | (60) | (16) | |||||
| Long Term Care | 3,881 | 800 | (1,217) | (513) | 111 | |||||
| Accumulated other comprehensive (income) loss | $ | 4,250 | $ | 853 | $ | (1,399) | $ | (633) | $ | 66 |
| Annuities | $ | 1,706 | $ | 1,684 | $ | 1,671 | $ | 1,653 | $ | 1,635 |
| Life and Other | 54,847 | 54,789 | 54,698 | 54,633 | 54,381 | |||||
| Long Term Care | 13,874 | 14,028 | 14,203 | 14,358 | 14,506 | |||||
| Balance, end of period (at original discount rate) | $ | 70,427 | $ | 70,501 | $ | 70,572 | $ | 70,644 | $ | 70,522 |
| POLICYHOLDER ACCOUNT BALANCES | ||||||||||
| Unaudited (In millions) | March 31, 2022 | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | |||||
| Annuities | $ | 14,182 | $ | 13,985 | $ | 13,701 | $ | 13,286 | $ | 12,818 |
| Life and Other | 12,676 | 12,607 | 12,544 | 12,402 | 12,234 | |||||
| Balance, end of period | $ | 26,858 | $ | 26,592 | $ | 26,245 | $ | 25,688 | $ | 25,052 |
| MARKET RISK BENEFITS (3) | ||||||||||
| Unaudited (In millions) | March 31, 2022 | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | |||||
| Annuities | $ | 4,820 | $ | 4,256 | $ | 3,534 | $ | 3,225 | $ | 3,361 |
| Balance, end of period | $ | 4,820 | $ | 4,256 | $ | 3,534 | $ | 3,225 | $ | 3,361 |
| SEPARATE ACCOUNT LIABILITIES | ||||||||||
| Unaudited (In millions) | March 31, 2022 | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | |||||
| Annuities | $ | 36,079 | $ | 30,163 | $ | 27,680 | $ | 28,499 | $ | 29,320 |
| Life and Other | 6,776 | 5,527 | 5,225 | 5,475 | 5,794 | |||||
| Balance, end of period | $ | 42,855 | $ | 35,690 | $ | 32,905 | $ | 33,974 | $ | 35,114 |
| (1) Includes participating life contracts. additional liabilities for annuitization, death and other insurance benefits, as well as DPL. | ||||||||||
| (2) Represents the current discount rate at the respective balance sheet date. | ||||||||||
| (3) Market risk benefits include Japan reinsurance. |
Table of Contents
| METLIFE HOLDINGS | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| OTHER EXPENSES BY MAJOR CATEGORY | |||||||||||||||
| For the Three Months Ended | |||||||||||||||
| Unaudited (In millions) | March 31, 2022 | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | ||||||||||
| Direct and allocated expenses | $ | 167 | $ | 160 | $ | 164 | $ | 178 | $ | 171 | |||||
| Pension, postretirement and postemployment benefit costs | 1 | 1 | — | 1 | 6 | ||||||||||
| Premium taxes, other taxes, and licenses & fees | 16 | 17 | 20 | 15 | 18 | ||||||||||
| Commissions and other variable expenses | 52 | 64 | 44 | 53 | 43 | ||||||||||
| Adjusted other expenses | $ | 236 | $ | 242 | $ | 228 | $ | 247 | $ | 238 | |||||
| OTHER STATISTICAL INFORMATION | |||||||||||||||
| For the Three Months Ended | |||||||||||||||
| Unaudited (In millions, except ratios) | March 31, 2022 | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | ||||||||||
| Life (1) | |||||||||||||||
| Adjusted premiums, fees and other revenues | $ | 692 | $ | 745 | $ | 654 | $ | 694 | $ | 639 | |||||
| Interest adjusted benefit ratio | 54.1 | % | 33.2 | % | 53.9 | % | 49.1 | % | 45.8 | % | |||||
| Lapse Ratio (2) | |||||||||||||||
| Traditional life | 4.2 | % | 4.4 | % | 4.5 | % | 4.6 | % | 4.7 | % | |||||
| Variable & universal life | 3.4 | % | 3.3 | % | 3.3 | % | 3.4 | % | 3.5 | % | |||||
| Fixed annuity | 6.3 | % | 6.2 | % | 6.6 | % | 7.3 | % | 9.0 | % | |||||
| Variable annuity | 10.0 | % | 9.8 | % | 9.5 | % | 9.2 | % | 9.5 | % | |||||
| (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. |
Table of Contents
| CORPORATE & OTHER<br>STATEMENTS OF ADJUSTED EARNINGS AVAILABLE TO COMMON SHAREHOLDERS | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| For the Three Months Ended | For the Year-to-Date Period Ended | ||||||||||||||
| Unaudited (In millions) | March 31, 2022 | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | March 31, 2022 | March 31, 2023 | ||||||||
| Adjusted revenues | |||||||||||||||
| Premiums | $ | (4) | $ | (6) | $ | (7) | $ | 1 | $ | 16 | $ | (4) | $ | 16 | |
| Universal life and investment-type product policy fees | — | 2 | (1) | 1 | — | — | — | ||||||||
| Net investment income | 120 | 17 | 78 | 58 | 50 | 120 | 50 | ||||||||
| Other revenues | 101 | 98 | 96 | 101 | 101 | 101 | 101 | ||||||||
| Total adjusted revenues | 217 | 111 | 166 | 161 | 167 | 217 | 167 | ||||||||
| Adjusted expenses | |||||||||||||||
| Policyholder benefits and claims and policyholder dividends | (7) | (2) | (3) | 6 | 16 | (7) | 16 | ||||||||
| Policyholder liability remeasurement (gains) losses | — | — | — | — | — | — | — | ||||||||
| Interest credited to policyholder account balances | — | — | — | — | — | — | — | ||||||||
| Capitalization of DAC | (3) | (2) | (2) | (1) | (1) | (3) | (1) | ||||||||
| Amortization of DAC and VOBA | 2 | 2 | 3 | 2 | 1 | 2 | 1 | ||||||||
| Amortization of negative VOBA | — | — | — | — | — | — | — | ||||||||
| Interest expense on debt | 219 | 219 | 231 | 240 | 247 | 219 | 247 | ||||||||
| Other expenses | 136 | 184 | 186 | 203 | 177 | 136 | 177 | ||||||||
| Total adjusted expenses | 347 | 401 | 415 | 450 | 440 | 347 | 440 | ||||||||
| Adjusted earnings before provision for income tax | (130) | (290) | (249) | (289) | (273) | (130) | (273) | ||||||||
| Provision for income tax expense (benefit) | (88) | (92) | (55) | (108) | (103) | (88) | (103) | ||||||||
| Adjusted earnings | (42) | (198) | (194) | (181) | (170) | (42) | (170) | ||||||||
| Preferred stock dividends | 63 | 29 | 64 | 29 | 66 | 63 | 66 | ||||||||
| Adjusted earnings available to common shareholders | $ | (105) | $ | (227) | $ | (258) | $ | (210) | $ | (236) | $ | (105) | $ | (236) | |
| Adjusted premiums, fees and other revenues | $ | 97 | $ | 94 | $ | 88 | $ | 103 | $ | 117 | $ | 97 | $ | 117 | |
| ADJUSTED EARNINGS AVAILABLE TO COMMON SHAREHOLDERS BY SOURCE | |||||||||||||||
| For the Three Months Ended | For the Year-to-Date Period Ended | ||||||||||||||
| Unaudited (In millions) | March 31, 2022 | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | March 31, 2022 | March 31, 2023 | ||||||||
| Business activities | $ | 36 | $ | 34 | $ | 36 | $ | 32 | $ | 19 | $ | 36 | $ | 19 | |
| Net investment income | 120 | 18 | 75 | 63 | 51 | 120 | 51 | ||||||||
| Interest expense on debt | (227) | (226) | (240) | (250) | (258) | (227) | (258) | ||||||||
| Corporate initiatives and projects | (12) | (21) | (15) | (16) | (14) | (12) | (14) | ||||||||
| Other | (47) | (95) | (105) | (118) | (71) | (47) | (71) | ||||||||
| Provision for income tax (expense) benefit and other tax-related items | 88 | 92 | 55 | 108 | 103 | 88 | 103 | ||||||||
| Preferred stock dividends | (63) | (29) | (64) | (29) | (66) | (63) | (66) | ||||||||
| Adjusted earnings available to common shareholders | $ | (105) | $ | (227) | $ | (258) | $ | (210) | $ | (236) | $ | (105) | $ | (236) |
Table of Contents
| INVESTMENTS<br>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-to-Date Period Ended (1) | ||||||||||||||||||||
| Unaudited (In millions, except yields) | March 31, 2022 | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | March 31, 2022 | March 31, 2023 | ||||||||||||||
| Fixed Maturity Securities | |||||||||||||||||||||
| Yield | 3.52 | % | 3.66 | % | 3.81 | % | 4.04 | % | 4.07 | % | 3.52 | % | 4.07 | % | |||||||
| Investment income (2), (3) | $ | 2,638 | $ | 2,709 | $ | 2,773 | $ | 2,978 | $ | 3,028 | $ | 2,638 | $ | 3,028 | |||||||
| Investment gains (losses) | (599) | (671) | (286) | (356) | (580) | (599) | (580) | ||||||||||||||
| Ending carrying value (4) | 321,656 | 285,573 | 272,079 | 278,215 | 285,397 | 321,656 | 285,397 | ||||||||||||||
| Mortgage Loans | |||||||||||||||||||||
| Yield | 4.13 | % | 4.11 | % | 4.37 | % | 4.73 | % | 4.92 | % | 4.13 | % | 4.92 | % | |||||||
| Investment income (3) | 823 | 832 | 898 | 983 | 1,041 | 823 | 1,041 | ||||||||||||||
| Investment gains (losses) | 44 | 48 | 47 | (118) | (164) | 44 | (164) | ||||||||||||||
| Ending carrying value | 79,968 | 82,055 | 82,437 | 83,763 | 85,572 | 79,968 | 85,572 | ||||||||||||||
| Real Estate and Real Estate Joint Ventures | |||||||||||||||||||||
| Yield | 7.82 | % | 8.98 | % | 5.75 | % | 3.16 | % | (2.10) | % | 7.82 | % | (2.10) | % | |||||||
| Investment income | 241 | 277 | 179 | 101 | (69) | 241 | (69) | ||||||||||||||
| Investment gains (losses) | 4 | 159 | — | 490 | 18 | 4 | 18 | ||||||||||||||
| Ending carrying value | 12,379 | 12,376 | 12,532 | 13,137 | 13,155 | 12,379 | 13,155 | ||||||||||||||
| Policy Loans | |||||||||||||||||||||
| Yield | 5.13 | % | 5.09 | % | 5.18 | % | 5.22 | % | 5.35 | % | 5.13 | % | 5.35 | % | |||||||
| Investment income | 116 | 114 | 114 | 115 | 119 | 116 | 119 | ||||||||||||||
| Ending carrying value | 9,036 | 8,876 | 8,783 | 8,874 | 8,863 | 9,036 | 8,863 | ||||||||||||||
| Equity Securities | |||||||||||||||||||||
| Yield | 3.48 | % | 2.46 | % | 6.40 | % | 3.58 | % | 3.17 | % | 3.48 | % | 3.17 | % | |||||||
| Investment income | 7 | 5 | 14 | 10 | 12 | 7 | 12 | ||||||||||||||
| Investment gains (losses) | (50) | (42) | (23) | (18) | 48 | (50) | 48 | ||||||||||||||
| Ending carrying value | 988 | 1,085 | 973 | 1,684 | 1,695 | 988 | 1,695 | ||||||||||||||
| Other Limited Partnership Interests | |||||||||||||||||||||
| Yield (5) | 25.35 | % | 4.69 | % | (5.35) | % | (1.18) | % | 0.73 | % | 25.35 | % | 0.73 | % | |||||||
| Investment income (5) | 926 | 171 | (194) | (43) | 26 | 926 | 26 | ||||||||||||||
| Investment gains (losses) | 18 | (2) | (1) | 38 | 9 | 18 | 9 | ||||||||||||||
| Ending carrying value (6) | 14,570 | 14,636 | 14,387 | 14,414 | 14,437 | 14,570 | 14,437 | ||||||||||||||
| Cash and Short-term Investments | |||||||||||||||||||||
| Yield | 1.08 | % | 1.53 | % | 2.54 | % | 3.70 | % | 5.01 | % | 1.08 | % | 5.01 | % | |||||||
| Investment income | 30 | 43 | 78 | 131 | 167 | 30 | 167 | ||||||||||||||
| Investment gains (losses) | 14 | 42 | 63 | (37) | (11) | 14 | (11) | ||||||||||||||
| Ending carrying value | 26,634 | 23,591 | 27,466 | 25,130 | 22,640 | 26,634 | 22,640 | ||||||||||||||
| Other Invested Assets | |||||||||||||||||||||
| Investment income | 364 | 484 | 426 | 396 | 439 | 364 | 439 | ||||||||||||||
| Investment gains (losses) | 47 | 69 | (14) | (15) | (11) | 47 | (11) | ||||||||||||||
| Ending carrying value | 18,696 | 19,901 | 22,299 | 20,038 | 19,479 | 18,696 | 19,479 | ||||||||||||||
| Total Investments | |||||||||||||||||||||
| Investment income yield | 4.72 | % | 4.29 | % | 3.98 | % | 4.27 | % | 4.31 | % | 4.72 | % | 4.31 | % | |||||||
| Investment fees and expenses yield | (0.13) | % | (0.12) | % | (0.12) | % | (0.13) | % | (0.14) | % | (0.13) | % | (0.14) | % | |||||||
| Net Investment Income Yield | 4.59 | % | 4.17 | % | 3.86 | % | 4.14 | % | 4.17 | % | 4.59 | % | 4.17 | % | |||||||
| Investment income | $ | 5,145 | $ | 4,635 | $ | 4,288 | $ | 4,671 | $ | 4,763 | $ | 5,145 | $ | 4,763 | |||||||
| Investment fees and expenses | (142) | (131) | (125) | (141) | (157) | (142) | (157) | ||||||||||||||
| Net investment income including divested businesses | 5,003 | 4,504 | 4,163 | 4,530 | 4,606 | 5,003 | 4,606 | ||||||||||||||
| Less: Net investment income from divested businesses | 11 | — | — | — | — | 11 | — | ||||||||||||||
| Adjusted Net Investment Income (7) | $ | 4,992 | $ | 4,504 | $ | 4,163 | $ | 4,530 | $ | 4,606 | $ | 4,992 | $ | 4,606 | |||||||
| Ending Carrying Value | $ | 483,927 | $ | 448,093 | $ | 440,956 | $ | 445,255 | $ | 451,238 | $ | 483,927 | $ | 451,238 | |||||||
| Investment Portfolio Gains (Losses) (8) | $ | (522) | $ | (397) | $ | (214) | $ | (16) | $ | (691) | $ | (522) | $ | (691) | |||||||
| Gross investment gains | 310 | 597 | 259 | 1,117 | 433 | 310 | 433 | ||||||||||||||
| Gross investment losses | (548) | (1,084) | (541) | (1,084) | (936) | (548) | (936) | ||||||||||||||
| Net credit loss (provision) release and (impairments) | (284) | 90 | 68 | (49) | (188) | (284) | (188) | ||||||||||||||
| Investment Portfolio Gains (Losses) (8) | (522) | (397) | (214) | (16) | (691) | (522) | (691) | ||||||||||||||
| Investment portfolio gains (losses) income tax (expense) benefit | 116 | 92 | 51 | 3 | 181 | 116 | 181 | ||||||||||||||
| Investment Portfolio Gains (Losses), Net of Income Tax | $ | (406) | $ | (305) | $ | (163) | $ | (13) | $ | (510) | $ | (406) | $ | (510) | |||||||
| Derivative gains (losses) (8) | (1,166) | (1,202) | (478) | (381) | (372) | (1,166) | (372) | ||||||||||||||
| Derivative gains (losses) income tax (expense) benefit | 275 | 355 | 129 | 69 | 47 | 275 | 47 | ||||||||||||||
| Derivative Gains (Losses), Net of Income Tax | $ | (891) | $ | (847) | $ | (349) | $ | (312) | $ | (325) | $ | (891) | $ | (325) | |||||||
| See footnotes on Page 30. |
Table of Contents
| INVESTMENTS | |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| SUMMARY OF FIXED MATURITY SECURITIES AVAILABLE-FOR-SALE<br>BY SECTOR AND QUALITY DISTRIBUTION | |||||||||||||||||||||
| March 31, 2022 | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | |||||||||||||||||
| Unaudited (In millions, except ratios) | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | |||||||||||
| U.S. corporate | $ | 87,136 | 27.2 | % | $ | 80,555 | 28.3 | % | $ | 78,824 | 29.1 | % | $ | 80,030 | 28.9 | % | $ | 82,482 | 29.1 | % | |
| Foreign corporate | 61,129 | 19.1 | % | 54,177 | 19.1 | % | 49,927 | 18.4 | % | 52,572 | 19.0 | % | 54,285 | 19.1 | % | ||||||
| Foreign government | 57,282 | 17.9 | % | 48,016 | 16.9 | % | 44,050 | 16.3 | % | 46,747 | 16.9 | % | 48,111 | 16.9 | % | ||||||
| U.S. government and agency | 40,334 | 12.6 | % | 33,690 | 11.9 | % | 31,562 | 11.7 | % | 32,229 | 11.6 | % | 32,878 | 11.6 | % | ||||||
| Residential mortgage-backed | 30,080 | 9.4 | % | 27,303 | 9.6 | % | 27,145 | 10.0 | % | 26,165 | 9.5 | % | 26,543 | 9.4 | % | ||||||
| Asset-backed securities and collateralized loan obligations | 19,305 | 6.0 | % | 17,054 | 6.0 | % | 16,766 | 6.2 | % | 16,822 | 6.1 | % | 16,970 | 6.0 | % | ||||||
| Municipals | 12,958 | 4.1 | % | 12,513 | 4.4 | % | 12,014 | 4.4 | % | 12,152 | 4.4 | % | 12,597 | 4.4 | % | ||||||
| Commercial mortgage-backed | 11,855 | 3.7 | % | 10,870 | 3.8 | % | 10,477 | 3.9 | % | 10,063 | 3.6 | % | 9,988 | 3.5 | % | ||||||
| Fixed Maturity Securities Available-For-Sale | $ | 320,079 | 100.0 | % | $ | 284,178 | 100.0 | % | $ | 270,765 | 100.0 | % | $ | 276,780 | 100.0 | % | $ | 283,854 | 100.0 | % | |
| NRSRO | NAIC | ||||||||||||||||||||
| RATING | DESIGNATION | ||||||||||||||||||||
| Aaa / Aa / A | 1 | $ | 222,096 | 69.4 | % | $ | 195,090 | 68.7 | % | $ | 185,780 | 68.6 | % | $ | 190,021 | 68.7 | % | $ | 195,535 | 69.0 | % |
| Baa | 2 | 82,616 | 25.8 | % | 74,783 | 26.3 | % | 71,276 | 26.3 | % | 73,194 | 26.5 | % | 74,661 | 26.3 | % | |||||
| Ba | 3 | 11,788 | 3.7 | % | 11,129 | 3.9 | % | 10,652 | 4.0 | % | 10,511 | 3.8 | % | 10,856 | 3.8 | % | |||||
| B | 4 | 2,923 | 0.9 | % | 2,653 | 0.9 | % | 2,618 | 1.0 | % | 2,571 | 0.9 | % | 2,296 | 0.8 | % | |||||
| Caa and lower | 5 | 480 | 0.1 | % | 389 | 0.2 | % | 306 | 0.1 | % | 401 | 0.1 | % | 395 | 0.1 | % | |||||
| In or near default | 6 | 176 | 0.1 | % | 134 | — | % | 133 | — | % | 82 | — | % | 111 | — | % | |||||
| Total Fixed Maturity Securities Available-For-Sale (9) | $ | 320,079 | 100.0 | % | $ | 284,178 | 100.0 | % | $ | 270,765 | 100.0 | % | $ | 276,780 | 100.0 | % | $ | 283,854 | 100.0 | % | |
| GROSS UNREALIZED GAINS AND LOSSES | |||||||||||||||||||||
| FIXED MATURITY SECURITIES AVAILABLE-FOR-SALE | |||||||||||||||||||||
| Unaudited (In millions) | March 31, 2022 | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | ||||||||||||||||
| Gross unrealized gains | $ | 16,145 | $ | 8,666 | $ | 5,488 | $ | 5,239 | $ | 6,554 | |||||||||||
| Gross unrealized losses | 9,583 | 23,759 | 36,982 | 34,301 | 27,469 | ||||||||||||||||
| Net Unrealized Gains (Losses) | $ | 6,562 | $ | (15,093) | $ | (31,494) | $ | (29,062) | $ | (20,915) | |||||||||||
| See footnotes on Page 30. |
Table of Contents
| INVESTMENTS | ||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| SUMMARY OF MORTGAGE LOANS | ||||||||||||||||||||
| Unaudited (In millions) | March 31, 2022 | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | |||||||||||||||
| Commercial mortgage loans | $ | 51,117 | $ | 52,348 | $ | 52,273 | $ | 52,502 | $ | 53,697 | ||||||||||
| Agricultural mortgage loans | 17,882 | 18,563 | 18,923 | 19,306 | 19,361 | |||||||||||||||
| Residential mortgage loans | 11,584 | 11,606 | 11,708 | 12,482 | 13,206 | |||||||||||||||
| Mortgage loans held-for-sale | — | 24 | — | — | — | |||||||||||||||
| Mortgage Loans | 80,583 | 82,541 | 82,904 | 84,290 | 86,264 | |||||||||||||||
| Allowance for credit loss | (615) | (486) | (467) | (527) | (692) | |||||||||||||||
| Mortgage Loans, net | $ | 79,968 | $ | 82,055 | $ | 82,437 | $ | 83,763 | $ | 85,572 | ||||||||||
| SUMMARY OF COMMERCIAL MORTGAGE LOANS<br><br>BY REGION AND PROPERTY TYPE | ||||||||||||||||||||
| March 31, 2022 | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | ||||||||||||||||
| Unaudited (In millions, except ratios) | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | ||||||||||
| Pacific | $ | 9,824 | 19.2 | % | $ | 9,901 | 18.9 | % | $ | 9,805 | 18.7 | % | $ | 9,628 | 18.3 | % | $ | 9,736 | 18.1 | % |
| Non-U.S. | 10,064 | 19.7 | % | 9,726 | 18.6 | % | 8,977 | 17.2 | % | 9,299 | 17.7 | % | 9,383 | 17.5 | % | |||||
| Middle Atlantic | 7,876 | 15.4 | % | 7,918 | 15.1 | % | 7,748 | 14.8 | % | 7,574 | 14.4 | % | 7,647 | 14.2 | % | |||||
| South Atlantic | 6,849 | 13.4 | % | 6,852 | 13.1 | % | 6,691 | 12.8 | % | 6,617 | 12.6 | % | 6,671 | 12.4 | % | |||||
| West South Central | 3,587 | 7.0 | % | 3,943 | 7.5 | % | 4,005 | 7.7 | % | 3,721 | 7.1 | % | 3,765 | 7.0 | % | |||||
| New England | 2,752 | 5.4 | % | 2,781 | 5.3 | % | 2,754 | 5.3 | % | 2,764 | 5.3 | % | 2,876 | 5.4 | % | |||||
| Mountain | 2,078 | 4.1 | % | 2,268 | 4.3 | % | 2,269 | 4.3 | % | 2,284 | 4.4 | % | 2,284 | 4.3 | % | |||||
| East North Central | 2,013 | 3.9 | % | 1,489 | 2.9 | % | 1,596 | 3.1 | % | 1,594 | 3.0 | % | 1,768 | 3.3 | % | |||||
| East South Central | 725 | 1.4 | % | 636 | 1.2 | % | 635 | 1.2 | % | 620 | 1.2 | % | 624 | 1.2 | % | |||||
| West North Central | 458 | 0.9 | % | 428 | 0.8 | % | 471 | 0.9 | % | 597 | 1.1 | % | 596 | 1.1 | % | |||||
| Multi-Region and Other | 4,891 | 9.6 | % | 6,406 | 12.3 | % | 7,322 | 14.0 | % | 7,804 | 14.9 | % | 8,347 | 15.5 | % | |||||
| Total | $ | 51,117 | 100.0 | % | $ | 52,348 | 100.0 | % | $ | 52,273 | 100.0 | % | $ | 52,502 | 100.0 | % | $ | 53,697 | 100.0 | % |
| Office | $ | 22,170 | 43.4 | % | $ | 21,923 | 41.9 | % | $ | 21,144 | 40.5 | % | $ | 21,009 | 40.0 | % | $ | 21,134 | 39.4 | % |
| Apartment | 9,578 | 18.7 | % | 10,536 | 20.1 | % | 10,793 | 20.6 | % | 10,575 | 20.2 | % | 11,357 | 21.2 | % | |||||
| Retail | 8,766 | 17.2 | % | 8,524 | 16.3 | % | 8,305 | 15.9 | % | 8,046 | 15.3 | % | 8,289 | 15.4 | % | |||||
| Industrial | 5,055 | 9.9 | % | 4,902 | 9.4 | % | 5,068 | 9.7 | % | 5,607 | 10.7 | % | 5,219 | 9.7 | % | |||||
| Hotel | 3,137 | 6.1 | % | 3,323 | 6.3 | % | 3,261 | 6.2 | % | 3,172 | 6.0 | % | 3,117 | 5.8 | % | |||||
| Other | 2,411 | 4.7 | % | 3,140 | 6.0 | % | 3,702 | 7.1 | % | 4,093 | 7.8 | % | 4,581 | 8.5 | % | |||||
| Total | $ | 51,117 | 100.0 | % | $ | 52,348 | 100.0 | % | $ | 52,273 | 100.0 | % | $ | 52,502 | 100.0 | % | $ | 53,697 | 100.0 | % |
Table of Contents
| INVESTMENTSFOOTNOTES | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (1)We calculate yields using adjusted net investment income as a percent of average quarterly asset carrying values. Adjusted net investment income excludes realized gains and losses from sales and disposals, includes the impact of changes in foreign currency exchange rates and reflects the adjustments described on Page A-7 and presented on Page A-1. Average quarterly 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 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 (65) million, (89) million, (43) million, 70 million and 48 million for the three months ended March 31, 2022, June 30, 2022, September 30, 2022, December 31, 2022, and March 31,2023, respectively, and (65) million and 48 million for the year-to-date period ended March 31, 2022 and March 31, 2023, 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, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | ||||||||||
| Fixed maturity securities available-for-sale | 320,079 | $ | 284,178 | $ | 270,765 | $ | 276,780 | $ | 283,854 | ||||
| Contractholder-directed equity securities and fair value option securities | 9,875 | 8,954 | 9,668 | 10,063 | |||||||||
| Total fixed maturity securities | 294,053 | 279,719 | 286,448 | 293,917 | |||||||||
| Less: Contractholder-directed equity securities | 8,480 | 7,640 | 8,233 | 8,520 | |||||||||
| Fixed maturity securities | 321,656 | $ | 285,573 | $ | 272,079 | $ | 278,215 | $ | 285,397 | ||||
| (5)Other limited partnership interests includes investment income related to private equity investments of 984 million, 216 million, (188) million, (40) million and 17 million for the three months ended March 31, 2022, June 30, 2022, September 30, 2022, December 31, 2022 and March 31, 2023 , respectively, and 984 million and 17 million for the year-to-date period ended March 31, 2022 and March 31, 2023, respectively. The annualized yields for these periods were 28.16%, 6.17%, (5.37%), (1.15%), 0.48%, 28.16% and 0.48%, respectively. | |||||||||||||
| (6)Other limited partnership interests includes ending carrying value related to private equity investments of 13,971 million, 14,092 million, 13,855 million, 14,000 million and 14,225 million at March 31, 2022, June 30, 2022, September 30, 2022, December 31, 2022 and March 31, 2023, respectively. | |||||||||||||
| (7)Adjusted net investment income reflects the adjustments as presented on Page 5. | |||||||||||||
| (8)Investment portfolio gains (losses) and Derivative gains (losses) reflect the non-GAAP adjustments as presented below: | |||||||||||||
| For the Year-to-Date Period Ended | |||||||||||||
| June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | March 31, 2022 | March 31, 2023 | ||||||||
| Net investment gains (losses) | (517) | $ | (682) | $ | (411) | $ | 350 | $ | (684) | $ | (517) | $ | (684) |
| Less: Operating joint venture adjustments | (1) | 5 | (1) | $ | (1) | 6 | (1) | ||||||
| Less: Change in estimated fair value of other limited partnership interests and real estate joint ventures | (1) | (18) | (2) | (5) | 7 | (5) | |||||||
| Less: Non-investment portfolio gains (losses) | (283) | (184) | 369 | 13 | (8) | 13 | |||||||
| Investment portfolio gains (losses) | (522) | $ | (397) | $ | (214) | $ | (16) | $ | (691) | $ | (522) | $ | (691) |
| For the Year-to-Date Period Ended | |||||||||||||
| June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | March 31, 2022 | March 31, 2023 | ||||||||
| Net derivative gains (losses) | (951) | $ | (970) | $ | (226) | $ | (104) | $ | (90) | $ | (951) | $ | (90) |
| Less: Investment hedge adjustments | 232 | 252 | 277 | 264 | 215 | 264 | |||||||
| Less: Other adjustments | — | — | — | 18 | — | 18 | |||||||
| Derivative gains (losses) | (1,166) | $ | (1,202) | $ | (478) | $ | (381) | $ | (372) | $ | (1,166) | $ | (372) |
| (9)Fixed maturity securities available-for-sale are presented by NRSRO rating and the applicable NAIC designation from the NAIC published comparison of NRSRO ratings to NAIC designations, except for (i) non-agency residential mortgage-backed securities (“RMBS”) and commercial mortgage-backed securities (“CMBS”) and (ii) securities rated Ca or C by NRSROs that are designated NAIC 6. 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's and NAIC's continuous monitoring process. Amounts presented for non-agency RMBS and CMBS are presented using NAIC designations for modeled securities. The NAIC evaluates non-agency RMBS and CMBS held by insurers on an annual basis. When we acquire non-agency RMBS and CMBS that have not been previously evaluated by the NAIC, an internally developed designation is used until a NAIC designation becomes available. NAIC designations are generally similar to the credit quality ratings of the NRSRO, except for (i) non-agency RMBS and CMBS and (ii) securities rated Ca or C by NRSROs that are designated NAIC 6; accordingly, NAIC designations may not correspond to NRSRO ratings. |
All values are in US Dollars.
Table of Contents
Appendix
A-1
Table of Contents
| APPENDIX<br>METLIFE<br>RECONCILIATION DETAIL | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| For the Three Months Ended | For the Year-to-Date Period Ended | |||||||||||||
| Unaudited (In millions) | March 31, 2022 | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | March 31, 2022 | March 31, 2023 | |||||||
| Reconciliation to Adjusted Earnings Available to Common Shareholders | ||||||||||||||
| Net income (loss) available to MetLife, Inc.'s common shareholders | $ | 1,571 | $ | 881 | $ | 1,098 | $ | 1,549 | $ | 14 | $ | 1,571 | $ | 14 |
| Add: Preferred stock dividends | 63 | 29 | 64 | 29 | 66 | 63 | 66 | |||||||
| Add: Preferred stock redemption premium | — | — | — | — | — | — | — | |||||||
| Add: Net Income (loss) attributable to noncontrolling interests | 5 | 5 | 5 | 3 | 5 | 5 | 5 | |||||||
| Net income (loss) | 1,639 | 915 | 1,167 | 1,581 | 85 | $ | 1,639 | $ | 85 | |||||
| Less: adjustments from net income (loss) to adjusted earnings: | ||||||||||||||
| Net investment gains (losses) | (517) | (682) | (411) | 350 | (684) | (517) | (684) | |||||||
| Net derivative gains (losses) | (951) | (970) | (226) | (104) | (90) | (951) | (90) | |||||||
| Market risk benefit remeasurement gains (losses) | 1,440 | 757 | 965 | 512 | (188) | 1,440 | (188) | |||||||
| Premiums - Divested businesses | 41 | — | — | — | — | 41 | — | |||||||
| Universal life and investment-type product policy fees - Divested businesses | 11 | — | — | — | — | 11 | — | |||||||
| Net investment income | ||||||||||||||
| Investment hedge adjustments | (215) | (232) | (252) | (277) | (264) | (215) | (264) | |||||||
| Unit-linked contract income | (498) | (688) | (321) | 209 | 303 | (498) | 303 | |||||||
| Other adjustments | (6) | (1) | (5) | 2 | — | (6) | — | |||||||
| Divested businesses | 11 | — | — | — | — | 11 | — | |||||||
| Other revenues | ||||||||||||||
| Asymmetrical and non-economic accounting | — | — | — | — | — | — | — | |||||||
| Other adjustments | 47 | 48 | 40 | 25 | (3) | 47 | (3) | |||||||
| Divested businesses | 3 | — | — | — | — | 3 | — | |||||||
| Policyholder benefits and claims and policyholder dividends | ||||||||||||||
| Asymmetrical and non-economic accounting | (119) | (215) | (241) | (79) | (84) | (119) | (84) | |||||||
| Market volatility | (12) | 34 | 66 | 105 | 14 | (12) | 14 | |||||||
| Divested businesses | (23) | — | — | — | — | (23) | — | |||||||
| Policyholder liability remeasurement (gains) losses - Divested businesses | — | — | — | — | — | — | — | |||||||
| Interest credited to policyholder account balances | ||||||||||||||
| Asymmetrical and non-economic accounting | 63 | 31 | 36 | (64) | (19) | 63 | (19) | |||||||
| Unit-linked contract costs | 505 | 695 | 302 | (180) | (303) | 505 | (303) | |||||||
| Divested businesses | (3) | — | — | — | — | (3) | — | |||||||
| Capitalization of DAC - Divested businesses | 11 | — | — | — | — | 11 | — | |||||||
| Amortization of DAC and VOBA - Divested businesses | (8) | — | — | — | — | (8) | — | |||||||
| Amortization of negative VOBA - Divested business | — | — | — | — | — | — | — | |||||||
| Interest expense on debt - Divested business | — | — | — | — | — | — | — | |||||||
| Other expenses | ||||||||||||||
| Other adjustments | (47) | (60) | (47) | (37) | (16) | (47) | (16) | |||||||
| Divested businesses | (32) | (8) | (13) | (21) | (11) | (32) | (11) | |||||||
| Goodwill impairment | — | — | — | — | — | — | — | |||||||
| Provision for income tax (expense) benefit | 180 | 439 | 110 | (149) | 180 | 180 | 180 | |||||||
| Adjusted earnings | 1,758 | 1,767 | 1,164 | 1,289 | 1,250 | 1,758 | 1,250 | |||||||
| Less: Preferred stock dividends | 63 | 29 | 64 | 29 | 66 | 63 | 66 | |||||||
| Adjusted earnings available to common shareholders | $ | 1,695 | $ | 1,738 | $ | 1,100 | $ | 1,260 | $ | 1,184 | $ | 1,695 | $ | 1,184 |
A-1
Table of Contents
| APPENDIX<br>METLIFE<br>NOTABLE ITEMS (1) | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| METLIFE TOTAL | ||||||||||||||||
| For the Three Months Ended | For the Year-to-Date Period Ended | |||||||||||||||
| Unaudited (In millions) | March 31, 2022 | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | March 31, 2022 | March 31, 2023 | |||||||||
| Actuarial assumption review and other insurance adjustments | $ | — | $ | 77 | $ | 12 | $ | — | $ | — | $ | — | $ | — | ||
| Total notable items | $ | — | $ | 77 | $ | 12 | $ | — | $ | — | $ | — | $ | — | ||
| U.S. | ||||||||||||||||
| For the Three Months Ended | For the Year-to-Date Period Ended | |||||||||||||||
| Unaudited (In millions) | March 31, 2022 | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | March 31, 2022 | March 31, 2023 | |||||||||
| Actuarial assumption review and other insurance adjustments | $ | — | $ | — | $ | 79 | $ | — | $ | — | $ | — | $ | — | ||
| Total notable items | $ | — | $ | — | $ | 79 | $ | — | $ | — | $ | — | $ | — | ||
| GROUP BENEFITS | ||||||||||||||||
| For the Three Months Ended | For the Year-to-Date Period Ended | |||||||||||||||
| Unaudited (In millions) | March 31, 2022 | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | March 31, 2022 | March 31, 2023 | |||||||||
| Actuarial assumption review and other insurance adjustments | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||
| Total notable items | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||
| RETIREMENT AND INCOME SOLUTIONS | ||||||||||||||||
| For the Three Months Ended | For the Year-to-Date Period Ended | |||||||||||||||
| Unaudited (In millions) | March 31, 2022 | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | March 31, 2022 | March 31, 2023 | |||||||||
| Actuarial assumption review and other insurance adjustments | $ | — | $ | — | $ | 79 | $ | — | $ | — | $ | — | $ | — | ||
| Total notable items | $ | — | $ | — | $ | 79 | $ | — | $ | — | $ | — | $ | — | ||
| (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
Table of Contents
| APPENDIX<br>METLIFE<br>NOTABLE ITEMS (1) CONTINUED | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| ASIA | |||||||||||||||
| For the Three Months Ended | For the Year-to-Date Period Ended | ||||||||||||||
| Unaudited (In millions) | March 31, 2022 | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | March 31, 2022 | March 31, 2023 | ||||||||
| Actuarial assumption review and other insurance adjustments | $ | — | $ | — | $ | (32) | $ | — | $ | — | $ | — | $ | — | |
| Total notable items | $ | — | $ | — | $ | (32) | $ | — | $ | — | $ | — | $ | — | |
| LATIN AMERICA | |||||||||||||||
| For the Three Months Ended | For the Year-to-Date Period Ended | ||||||||||||||
| Unaudited (In millions) | March 31, 2022 | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | March 31, 2022 | March 31, 2023 | ||||||||
| Actuarial assumption review and other insurance adjustments | $ | — | $ | — | $ | 1 | $ | — | $ | — | $ | — | $ | — | |
| Total notable items | $ | — | $ | — | $ | 1 | $ | — | $ | — | $ | — | $ | — | |
| EMEA | |||||||||||||||
| For the Three Months Ended | For the Year-to-Date Period Ended | ||||||||||||||
| Unaudited (In millions) | March 31, 2022 | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | March 31, 2022 | March 31, 2023 | ||||||||
| Actuarial assumption review and other insurance adjustments | $ | — | $ | — | $ | 15 | $ | — | $ | — | $ | — | $ | — | |
| Total notable items | $ | — | $ | — | $ | 15 | $ | — | $ | — | $ | — | $ | — | |
| METLIFE HOLDINGS | |||||||||||||||
| For the Three Months Ended | For the Year-to-Date Period Ended | ||||||||||||||
| Unaudited (In millions) | March 31, 2022 | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | March 31, 2022 | March 31, 2023 | ||||||||
| Actuarial assumption review and other insurance adjustments | $ | — | $ | 77 | $ | (51) | $ | — | $ | — | $ | — | $ | — | |
| Total notable items | $ | — | $ | 77 | $ | (51) | $ | — | $ | — | $ | — | $ | — | |
| (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-3
Table of Contents
| APPENDIX<br>METLIFE<br>EQUITY DETAILS, BOOK VALUE DETAILS AND RETURN ON EQUITY | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Unaudited (In millions) | March 31, 2022 | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | ||||||||||
| Total MetLife, Inc.'s stockholders' equity | $ | 42,432 | $ | 33,744 | $ | 29,389 | $ | 29,881 | $ | 32,194 | |||||
| Less: Preferred stock | 3,818 | 3,818 | 3,818 | 3,818 | 3,818 | ||||||||||
| MetLife, Inc.'s common stockholders' equity | 38,614 | 29,926 | 25,571 | 26,063 | 28,376 | ||||||||||
| Less: Net unrealized investment gains (losses), net of income tax | 6,083 | (10,289) | (21,652) | (21,089) | (14,606) | ||||||||||
| Future policy benefits discount rate remeasurement gains (losses), net of income tax | (9,248) | (136) | 7,612 | 6,115 | 2,748 | ||||||||||
| Market risk benefits instrument-specific credit risk remeasurement gains (losses), net of income tax | 195 | 193 | 174 | 107 | 186 | ||||||||||
| Defined benefit plans adjustment, net of income tax | (1,577) | (1,555) | (1,536) | (1,377) | (1,356) | ||||||||||
| Total MetLife, Inc.'s common stockholders' equity, excluding AOCI other than FCTA | 43,161 | 41,713 | 40,973 | 42,307 | 41,404 | ||||||||||
| Less: Accumulated year-to-date total notable items (2) | — | 77 | 89 | 89 | — | ||||||||||
| Total MetLife, Inc.'s common stockholders' equity, excluding total notable items (excludes AOCI other than FCTA) (2) | $ | 43,161 | $ | 41,636 | $ | 40,884 | $ | 42,218 | $ | 41,404 | |||||
| Unaudited (In millions, except per share data) | March 31, 2022 | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | ||||||||||
| Book value per common share | $ | 47.39 | $ | 37.52 | $ | 32.48 | $ | 33.45 | $ | 36.89 | |||||
| Less: Net unrealized investment gains (losses), net of income tax | 7.47 | (12.90) | (27.50) | (27.07) | (18.99) | ||||||||||
| Future policy benefits discount rate remeasurement gains (losses), net of income tax | (11.36) | (0.17) | 9.67 | 7.85 | 3.57 | ||||||||||
| Market risk benefits instrument-specific credit risk remeasurement gains (losses), net of income tax | 0.24 | 0.24 | 0.22 | 0.14 | 0.24 | ||||||||||
| Defined benefit plans adjustment, net of income tax | (1.93) | (1.95) | (1.95) | (1.77) | (1.76) | ||||||||||
| Book value per common share, excluding AOCI other than FCTA | $ | 52.97 | $ | 52.30 | $ | 52.04 | $ | 54.30 | $ | 53.83 | |||||
| Common shares outstanding, end of period | 814.8 | 797.6 | 787.3 | 779.1 | 769.2 | ||||||||||
| For the Three Months Ended (1) | |||||||||||||||
| Unaudited (In millions, except ratios) | March 31, 2022 | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | ||||||||||
| Return on MetLife, Inc.'s: | |||||||||||||||
| Common stockholders' equity | 14.9 | % | 10.3 | % | 15.8 | % | 24.0 | % | 0.2 | % | |||||
| Adjusted return on MetLife, Inc.'s: | |||||||||||||||
| Common stockholders' equity | 16.0 | % | 20.3 | % | 15.9 | % | 19.5 | % | 17.4 | % | |||||
| Common stockholders' equity, excluding AOCI other than FCTA | 15.7 | % | 16.4 | % | 10.6 | % | 12.1 | % | 11.3 | % | |||||
| Common stockholders' equity, excluding total notable items (excludes AOCI other than FCTA) (2) | 15.7 | % | 15.7 | % | 10.5 | % | 12.1 | % | 11.3 | % | |||||
| Average common stockholders' equity | $ | 42,272 | $ | 34,270 | $ | 27,749 | $ | 25,817 | $ | 27,220 | |||||
| Average common stockholders' equity, excluding AOCI other than FCTA | $ | 43,210 | $ | 42,437 | $ | 41,343 | $ | 41,640 | $ | 41,856 | |||||
| Average common stockholders' equity, excluding total notable items (excludes AOCI other than FCTA) (2) | $ | 43,210 | $ | 42,399 | $ | 41,260 | $ | 41,551 | $ | 41,856 | |||||
| (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. |
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| APPENDIX<br>METLIFE<br>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) | March 31, 2022 | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | |||||
| U.S. (1) | $ | 7,729 | $ | 8,781 | $ | 14,754 | $ | 6,316 | $ | 6,697 |
| ASIA | 1,792 | 1,795 | 1,856 | 1,814 | 1,794 | |||||
| LATIN AMERICA | 1,087 | 1,175 | 1,224 | 1,227 | 1,372 | |||||
| EMEA | 551 | 555 | 539 | 572 | 581 | |||||
| METLIFE HOLDINGS (1) | 1,048 | 1,079 | 986 | 1,010 | 959 | |||||
| CORPORATE & OTHER (1) | 97 | 94 | 88 | 103 | 117 | |||||
| Adjusted premiums, fees and other revenues, on a constant currency basis | $ | 12,304 | $ | 13,479 | $ | 19,447 | $ | 11,042 | $ | 11,520 |
| Adjusted premiums, fees and other revenues | $ | 12,487 | $ | 13,495 | $ | 19,295 | $ | 10,873 | $ | 11,520 |
| ASIA (including operating joint ventures) (2), (3) | $ | 2,164 | $ | 2,095 | $ | 2,246 | $ | 2,193 | $ | 2,293 |
| OTHER EXPENSES ON A CONSTANT CURRENCY BASIS | ||||||||||
| For the Three Months Ended | ||||||||||
| Unaudited (In millions) | March 31, 2022 | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | |||||
| U.S. (1) | $ | 979 | $ | 949 | $ | 1,003 | $ | 1,031 | $ | 1,078 |
| ASIA | 753 | 746 | 775 | 848 | 807 | |||||
| LATIN AMERICA | 362 | 373 | 407 | 452 | 430 | |||||
| EMEA | 276 | 289 | 272 | 314 | 300 | |||||
| METLIFE HOLDINGS (1) | 236 | 242 | 228 | 247 | 238 | |||||
| CORPORATE & OTHER (1) | 136 | 184 | 186 | 203 | 177 | |||||
| Adjusted other expenses on a constant currency basis | $ | 2,742 | $ | 2,783 | $ | 2,871 | $ | 3,095 | $ | 3,030 |
| Adjusted other expenses | $ | 2,833 | $ | 2,800 | $ | 2,815 | $ | 3,020 | $ | 3,030 |
| ASIA (including operating joint ventures) (2), (4) | $ | 863 | $ | 848 | $ | 886 | $ | 959 | $ | 936 |
| ADJUSTED EARNINGS AVAILABLE TO COMMON SHAREHOLDERS ON A CONSTANT CURRENCY BASIS | ||||||||||
| For the Three Months Ended | ||||||||||
| Unaudited (In millions) | March 31, 2022 | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | |||||
| U.S. (1) | $ | 663 | $ | 780 | $ | 751 | $ | 773 | $ | 707 |
| ASIA | 581 | 478 | 267 | 270 | 280 | |||||
| LATIN AMERICA | 142 | 268 | 179 | 200 | 215 | |||||
| EMEA | 46 | 60 | 65 | 66 | 60 | |||||
| METLIFE HOLDINGS (1) | 348 | 382 | 117 | 184 | 158 | |||||
| CORPORATE & OTHER (1) | (105) | (227) | (258) | (210) | (236) | |||||
| Adjusted earnings available to common shareholders on a constant currency basis | $ | 1,675 | $ | 1,741 | $ | 1,121 | $ | 1,283 | $ | 1,184 |
| Adjusted earnings available to common shareholders | $ | 1,695 | $ | 1,738 | $ | 1,100 | $ | 1,260 | $ | 1,184 |
| (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 16 for operating joint ventures. | ||||||||||
| (3) Includes MetLife, Inc.'s share of adjusted premiums, fees and other revenues for operating joint ventures of: (i) China, (ii) India, (iii) Malaysia and (iv) Vietnam, on the basis of proportional consolidation and MetLife's percentage ownership. These operating joint ventures are accounted for using the equity method of accounting under GAAP. | ||||||||||
| (4) Includes MetLife, Inc.'s share of adjusted other expenses for operating joint ventures of: (i) China, (ii) India, (iii) Malaysia and (iv) Vietnam, on the basis of proportional consolidation and MetLife's percentage ownership. These operating joint ventures are accounted for using the equity method of accounting under GAAP. |
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| METLIFE<br><br>NON-GAAP AND OTHER FINANCIAL DISCLOSURES<br><br><br><br>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.<br><br><br><br>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) | investment portfolio gains (losses) | (xiv) | net investment gains (losses) |
| (xv) | derivative gains (losses) | (xv) | net derivative gains (losses) |
| (xvi) | adjusted capitalization of DAC | (xvi) | capitalization of DAC |
| (xvii) | total MetLife, Inc.’s common stockholders’ equity, excluding AOCI other than FCTA | (xvii) | total MetLife, Inc.’s stockholders’ equity |
| (xviii) | total MetLife, Inc.’s common stockholders’ equity, excluding total notable items (excludes AOCI other than FCTA) | (xviii) | total MetLife, Inc.’s stockholders’ equity |
| (xix) | book value per common share, excluding AOCI other than FCTA | (xix) | book value per common share |
| (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 | (xxvii) | expense ratio |
| (xxviii) | direct expense ratio, excluding total notable items related to direct expenses and PRT | (xxviii) | expense ratio |
| (xxix) | future policy benefits at original discount rate | (xxix) | future policy benefits at balance sheet discount rate |
| 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<br>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:<br><br><br><br>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.<br><br><br><br>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. With the adoption of LDTI, the measurement model was simplified for DAC and 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.<br><br><br><br>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.<br><br>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.<br><br>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.<br><br>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)<br><br><br><br>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). |
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| METLIFE<br>NON-GAAP AND OTHER FINANCIAL DISCLOSURES (CONTINUED) | |
|---|---|
| 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, we do 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 expense ratio, excluding total notable items related to direct expenses and PRT: adjusted direct expenses, excluding total notable items related to direct expenses, divided by adjusted premiums, fees and other revenues, excluding PRT. |
| • | Adjusted expense ratio: adjusted other expenses, net of adjusted capitalization of DAC, divided by adjusted premiums, fees and other revenues. |
| • | Adjusted expense ratio, excluding total notable items related to adjusted other expenses and PRT: adjusted other expenses, net of adjusted capitalization of DAC, excluding total notable items related to adjusted other expenses, divided by adjusted premiums, fees and other revenues, excluding PRT. |
| Asia general account assets under management and related measures | |
| Asia GA AUM is used by MetLife to describe assets in its Asia GA investment portfolio which are actively managed and stated at estimated fair value. Asia GA AUM is comprised of Asia GA total investments, 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 and certain other invested assets, as substantially all of these assets are not actively managed in MetLife’s Asia GA investment portfolio. Mortgage loans (including commercial, agricultural and residential) and real estate equity (including real estate and real estate joint ventures) included in Asia GA AUM (at net asset value, net of deduction for encumbering debt) have been adjusted from carrying value to estimated fair value. At the segment level, intersegment balances (intercompany activity, primarily related to investments in subsidiaries, that eliminate at the MetLife consolidated level) are excluded from Asia GA AUM. | |
| Asia GA AUM (at amortized cost) excludes the following adjustments: (i) unrealized gain (loss) on investments carried at estimated fair value and (ii) adjustments from carrying value to estimated fair value on mortgage loans (including commercial, agricultural and residential) and real estate and real estate joint ventures. Asia GA AUM (at amortized cost) is presented net of related allowance for credit loss. | |
| Other items | |
| The following additional information is relevant to an understanding of our performance results: | |
| • | Statistical sales information for Latin America, Asia and EMEA: calculated using 10% of single-premium deposits (mainly from retirement products such as variable annuity, fixed annuity and pensions), 20% of single-premium deposits from credit insurance and 100% of annualized full-year premiums and fees from recurring-premium policy sales of all products (mainly from risk and protection products such as individual life, accident & health and group). Sales statistics do not correspond to revenues under GAAP, but are used as relevant measures of business activity. |
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| METLIFE<br>ACRONYMS | |
|---|---|
| AOCI | Accumulated other comprehensive income (loss) |
| DAC | Deferred policy acquisition costs |
| DPL | Deferred profit liabilities |
| EMEA | Europe, the Middle East and Africa |
| FCTA | Foreign currency translation adjustments |
| GA | General account |
| GA AUM | General account assets under management |
| GAAP | Accounting principles generally accepted in the United States of America |
| GICs | Guaranteed interest contracts |
| GMIB | Guaranteed minimum income benefits |
| NAIC | National Association of Insurance Commissioners |
| NDGL | Net derivative gains (losses) |
| NIGL | Net investment gains (losses) |
| NRSRO | Nationally Recognized Statistical Rating Organization |
| PAB | Policyholder account balances |
| PBC | Policyholder benefits and claims |
| PDO | Policyholder dividend obligation |
| PRT | Pension risk transfers |
| QFS | Quarterly financial supplement |
| VIE | Variable interest entity |
| VOBA | Value of business acquired |
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q12023totalaum05032023wi
ex9941q23supplementalsli
1Q23 Supplemental Slides1 John McCallion Chief Financial Officer Exhibit 99.4 1 These slides highlight information in MetLife, Inc.'s earnings release, quarterly financial supplement and other prior public disclosures. Financial results in this presentation 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 "Explanatory Note on Non-GAAP and Other Financial Information."
2 Table of contents Topic Page No. Net income (loss) to adjusted earnings 3 Adjusted earnings, ex. total notable items, by segment 4 Variable investment income (VII) 5 Investments 7 Direct expense ratio 11 Cash & capital 12 Appendix 13
3 Net income (loss) to adjusted earnings 1Q23 (post-tax) $ in millions $ per share1 Net Income (Loss) $14 $0.02 Less: Net Investment Gains (Losses) (540) (0.69) Net Derivative Gains (Losses) (71) (0.09) Market Risk Benefit Gains (Losses) (149) (0.19) Investment Hedge Adjustments (209) (0.27) Other (201) (0.26) Adjusted Earnings $1,184 $1.52 1 The per share data for each item is calculated on a standalone basis and may not sum to the total.
4 ($ in millions - except per share data) 1Q23 1Q22 % Change % Change (Constant Rate) Key Drivers1 Favorable Unfavorable Group Benefits $307 $117 162% Underwriting Margins Retirement and Income Solutions 400 546 (27%) Investment Margins U.S. 707 663 7% Asia 280 599 (53%) (52%) Investment Margins Latin America 215 135 59% 51% Underwriting Margins; Volume Growth EMEA 60 55 9% 30% Investment Margins; Volume Growth MetLife Holdings 158 348 (55%) Investment Margins Corporate & Other (236) (105) Investment Margins Adjusted Earnings ex. Total Notable Items $1,184 $1,695 (30%) (29%) Adjusted EPS ex. Total Notable Items $1.52 $2.04 (25%) (25%) Adjusted earnings, ex. total notable items, by segment 1 To be discussed on MetLife, Inc.'s first quarter 2023 earnings conference call and audio webcast.
5 $24 ($44) $1,185 $389 ($53) 1Q22 2Q22 3Q22 4Q22 1Q23 1Q23 VII driven by lower venture capital and real estate returns1 ($ in millions - pre-tax) Private Equity Other 1 Quarterly target VII range of $500 million, based on full year 2023 guidance range of ~ $2.0 billion. $0
6 ($ in millions - post-tax1) 1Q22 2Q22 3Q22 4Q22 1Q23 Group Benefits $12 $7 $(1) $3 $— Retirement and Income Solutions 277 75 (35) 5 (3) U.S. 289 82 (36) 8 (3) Asia 288 101 (18) 4 (25) Latin America 16 16 — (3) (2) EMEA — — — — — MetLife Holdings 208 85 (21) 12 2 Corporate & Other 135 23 33 (1) (7) Total Variable Investment Income $936 $307 $(42) $20 $(35) 1 Assumes a 21% U.S. statutory tax rate. VII by segment
7 FY2020 FY2021 FY2022 1Q22 1Q23 Strong recurring income supported by higher interest rates and asset growth ($ in billions) Recurring income VII Net Investment Income1 $16.7 $3.8 $16.1 $5.7 $1.2 Roll Off vs. Reinvestment $15.6 $1.5 $1.2 New Money Yield Roll Off Yield 10-Year Treasury Yield 1Q20 3Q20 1Q21 3Q21 1Q22 3Q22 1Q23 0% 1% 2% 3% 4% 5% 6% 7% $4.6 5.82% 4.59% 3.47% 1 As reported, on an adjusted basis. $17.3 $21.3 $18.2 $5.0 $4.7
8 Global investment portfolio: High quality & resilient 1Q23 General Account AUM1 Highlights 1 General Account (GA) Assets Under Management (AUM). At estimated fair value. 2 Includes cash equivalents. 3 Represents the respective public and private portion of Investment Grade Corporate and Below Investment Grade Corporate. Public Credit includes Rule 144A securities and syndicated bank loan investments. 4 Represents Foreign Government and U.S. Government and Agency. 5 Includes common & preferred stock. 6 Real estate equity fair value of $18.1 billion and carrying value of $11.7 billion. 20% 19% 15% 13% 4% 3% 5% $424B • Large, diversified global portfolio • Disciplined asset-liability management • Prudent underwriting and risk management • Well positioned for uncertain environments • Unrealized gains in real estate equity of $6.4 billion6 • Favorable loss history over time Cash and Short-Term2 Public Credit3 Total Mortgage Loans Government and Agency4 Private Credit3 Structured Products Commercial Loans (Office) 8% 5% Commercial Loans (ex. Office) Agricultural Loans Residential Loans 3% 4% 1% Real Estate Equity Alternatives Other5
9 High quality commercial mortgage portfolio¹ • Diversified geographically and by property type • Concentrated in high-quality assets and in larger, primary markets • 58% average Loan-to-Value (LTV) and 2.4x average Debt Service Coverage Ratio (DSCR) • Commercial mortgage CECL2 allowance for credit loss of $319 million • Delinquency rate of 5 basis points • Only 14% of maturities scheduled in 2023 with 36% resolved through 4/30/23 1 At March 31, 2023. 2 Current expected credit loss (CECL). 3Amortized cost value as of March 31, 2023, prior to allowance for credit loss and excluding joint venture investments. LTV and DSCR Matrix $53.7 Billion3 LTV >1.2x 1.0-1.2x <1.0x Total <65% 70.4% 3.2% 3.3% 76.9% 65-75% 14.9% 1.4% 0.9% 17.2% 76-80% 1.9% 0.4% 0.5% 2.8% >80% 1.8% 0.9% 0.4% 3.1% Total 89.0% 5.9% 5.1% 100.0%
10 Office commercial mortgage loan portfolio • Office CML1 exposure $21 billion, or 4.9% of GA AUM • High quality portfolio; 89% of portfolio is collateralized by Class A properties • Average LTV of 57% and DSCR of 2.4x • Geographically diverse across international and U.S. markets • Reduced office CML exposure from 50% in 2016 to 39% as of 3/31/23 • Only 19% of maturities scheduled in 2023 with 36% resolved through 4/30/23 19.4% 9.3% 13.4% 14.0% 14.0% 29.9% 2023 2024 2025 2026 2027 2028+ Scheduled Maturities (% of Office CML Portfolio) 1Commercial mortgage loan (CML). Majority of Loans Low LTV and High DSCR LTV >1.2x 1.0x-1.2x <1.0x Total <65% 76.4% 1.9% 5.0% 83.3% 65-75% 11.4% 0.5% 0.5% 12.4% 76-80% 1.4% —% —% 1.4% >80% 2.0% 0.1% 0.8% 2.9% Total 91.2% 2.5% 6.3% 100.0%
11 11.9% 12.2% 12.4% 13.5% 12.0% 1Q22 2Q22 3Q22 4Q22 1Q23 1 Direct expense ratio, excluding total notable items related to direct expenses and pension risk transfers (PRT). 12.6% Annual Target 1Q23 direct expense ratio1 of 12.0%, below 12.6% annual target
12 Holding Company Cash1 $5.4 $4.2 $4.5 $5.2 $5.4 $4.2 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 Cash & capital 1 Includes cash and liquid assets at MetLife, Inc. and other holding companies at quarter-end. 2 Includes MetLife, Inc.'s principal U.S. insurance subsidiaries, excluding American Life Insurance Company. 3 MetLife calculates RBC annually as of December 31 and, accordingly, the calculation does not reflect conditions and factors occurring after the year end. 4 Includes MetLife, Inc.'s principal U.S. insurance subsidiaries, excluding American Life Insurance Company for both periods. $3.0B to $4.0B Cash Buffer Capital • Share repurchases of $0.8 billion in 1Q23 – $223 million shares repurchased in April 2023 • 2022 Combined NAIC Risk-Based Capital ratio2,3 of 367%, above 360% target • Expected total U.S. Statutory Adjusted Capital4 of $17.7 billion at 3/31/23, down 3% from 12/31/22 • Expected Japan Solvency Margin ratio of ~725% at 3/31/23 ($ in billions)
Appendix
14 GAAP Consolidated Statement of Operations (LDTI Basis) FY2022 FY2021 (In millions) Revenues Premiums $ 48,510 $ 41,152 Universal life and investment-type product policy fees 5,225 5,244 Net investment income 15,916 21,395 Other revenues 2,630 2,619 Net investment gains (losses) (1,260) 1,543 Net derivative gains (losses) (2,251) (3,257) Total revenues 68,770 68,696 Expenses Policyholder benefits and claims 49,507 43,118 Policyholder liability remeasurement (gains) losses 114 (172) Market risk benefit remeasurement (gains) losses (3,674) (1,237) Interest credited to policyholder account balances 3,894 5,571 Policyholder dividends 706 880 Amortization of DAC and VOBA 1,831 2,037 Amortization of negative VOBA (29) (35) Interest expense on debt 938 920 Other expenses, net of capitalization of DAC 9,119 9,096 Total expenses 62,406 60,178 Income (loss) before provision for income tax 6,364 8,518 Provision for income tax expense (benefit) 1,062 1,642 Net income (loss) 5,302 6,876 Less: Net income (loss) attributable to noncontrolling interests 18 21 Net income (loss) attributable to MetLife, Inc. 5,284 6,855 Less: Preferred stock dividends 185 195 Preferred stock redemption premium — 6 Net income (loss) available to MetLife, Inc.'s common shareholders $ 5,099 $ 6,654
15 Reconciliation of Net Income (Loss) Available to MetLife, Inc.'s Common Shareholders to Adjusted Earnings Available to Common Shareholders (LDTI Basis) FY2022 FY2021 (In millions) Net Income (loss) available to MetLife, Inc.'s common shareholders $ 5,099 $ 6,654 Adjustments from net income (loss) available to MetLife, Inc.'s common shareholders to adjusted earnings available to common shareholders: Less: Net investment gains (losses) (1,260) 1,543 Less: Net derivative gains (losses) (2,251) (3,257) Less: Market risk benefit remeasurement gains (losses) 3,674 1,237 Less: Other adjustments to net income (loss) (1,419) (1,039) Less: Provision for income tax (expense) benefit 580 294 Add: Net income (loss) attributable to noncontrolling interests 18 21 Add: Preferred stock redemption premium — 6 Adjusted earnings available to common shareholders 5,793 7,903 Less: Total notable items 89 293 Adjusted earnings available to common shareholders, excluding total notable items $ 5,704 $ 7,610
16 Segment Results - Adjusted Earnings Available to Common Shareholders and Adjusted Premiums, Fees and Other Revenues (LDTI Basis) FY2022 U.S. Group Benefits Retirement & Income Solutions Asia Latin America EMEA MetLife Holdings Corporate & Other (In millions) Adjusted earnings available to common shareholders $ 2,967 $ 1,332 $ 1,635 $ 1,617 $ 729 $ 249 $ 1,031 $ (800) Less: Total notable items 79 — 79 (32) 1 15 26 — Adjusted earnings available to common shareholders, excluding total notable items $ 2,888 $ 1,332 $ 1,556 $ 1,649 $ 728 $ 234 $ 1,005 $ (800) Adjusted premiums, fees and other revenues $ 37,580 $ 23,266 $ 14,314 $ 7,346 $ 4,438 $ 2,281 $ 4,123 $ 382 Less: Pension risk transfers (PRT) 12,219 — 12,219 — — — — — Adjusted premiums, fees and other revenues, excluding PRT $ 25,361 $ 23,266 $ 2,095 $ 7,346 $ 4,438 $ 2,281 $ 4,123 $ 382 FY2021 U.S. Group Benefits Retirement & Income Solutions Asia Latin America EMEA MetLife Holdings Corporate & Other (In millions) Adjusted earnings available to common shareholders $ 3,054 $ 463 $ 2,591 $ 2,517 $ 274 $ 306 $ 2,103 $ (351) Less: Total notable items 14 — 14 56 6 — 11 206 Adjusted earnings available to common shareholders, excluding total notable items $ 3,040 $ 463 $ 2,577 $ 2,461 $ 268 $ 306 $ 2,092 $ (557) Adjusted premiums, fees and other revenues $ 28,176 $ 22,543 $ 5,633 $ 8,120 $ 3,790 $ 2,708 $ 4,513 $ 457 Less: Pension risk transfers (PRT) 3,513 — 3,513 — — — — — Adjusted premiums, fees and other revenues, excluding PRT $ 24,663 $ 22,543 $ 2,120 $ 8,120 $ 3,790 $ 2,708 $ 4,513 $ 457
17 Cautionary Statement on Forward-Looking Statements The forward-looking statements in this presentation, using words such as “anticipate,” “are confident,” “assume,” “believe,” “continue,” “could,” “estimate,” “expect,” “grow,” “guidance,” “if,” “intend,” “likely,” “long-term,” “may,” “near-term,” “ongoing,” “outlook,” “plan,” “potential,” “project,” “remain,” “should,” “target,” “to be,” “will,” and “would” are based on assumptions and expectations that involve risks and uncertainties, including the “Risk Factors” MetLife, Inc. describes in its U.S. Securities and Exchange Commission filings. MetLife’s future results could differ, and it does not undertake any obligation to publicly correct or update any of these statements.
18 Explanatory Note on Non-GAAP and Other Financial Information Any references in this presentation (except in this Explanatory Note on Non-GAAP Financial Information and Reconciliations) 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; and (iii) adjusted earnings available to common shareholders; and (iv) adjusted earnings per share; (iv) adjusted earnings available to common shareholders per diluted common share; In this presentation, 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) adjusted premiums, fees and other revenues; (i) premiums, fees and other revenues; (ii) adjusted premiums, fees and other revenues, excluding pension risk transfers (PRT); (ii) premiums, fees and other revenues; (iii) adjusted capitalization of deferred policy acquisition costs (DAC); (iii) capitalization of DAC; (iv) adjusted earnings available to common shareholders; (iv) net income (loss) available to MetLife, Inc.’s common shareholders; (v) adjusted earnings available to common shareholders, excluding total notable items; (v) net income (loss) available to MetLife, Inc.’s common shareholders; (vi) adjusted earnings available to common shareholders per diluted common share; (vi) net income (loss) available to MetLife, Inc.’s common shareholders per diluted common share; (vii) adjusted earnings available to common shareholders, excluding total notable items, per diluted common share; (vii) net income (loss) available to MetLife, Inc.’s common shareholders per diluted common share; (viii) adjusted other expenses; (viii) other expenses; (ix) adjusted other expenses, net of adjusted capitalization of DAC; (ix) other expenses, net of capitalization of DAC; (x) adjusted other expenses, net of adjusted capitalization of DAC, excluding total notable items related to adjusted other expenses; (x) other expenses, net of capitalization of DAC; (xi) adjusted expense ratio; (xi) expense ratio; (xii) adjusted expense ratio, excluding total notable items related to adjusted other expenses and PRT; (xii) expense ratio; (xiii) direct expenses; (xiii) other expenses; (xiv) direct expenses, excluding total notable items related to direct expenses; (xiv) other expenses; (xv) direct expense ratio; and (xv) expense ratio; and (xvi) direct expense ratio, excluding total notable items related to direct expenses and PRT. (xvi) expense ratio.
19 MetLife’s definitions of non-GAAP and other financial measures discussed in this presentation 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. 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. With the the adoption of LDTI, the measurement model was simplified for DAC and 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 the Company’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. Explanatory Note on Non-GAAP and Other Financial Information (Continued) 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 presentation and in this period’s earnings news release, which is available at www.metlife.com.
20 Explanatory Note on Non-GAAP and Other Financial Information (Continued) 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).
21 Explanatory Note on Non-GAAP and Other Financial Information (Continued) 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), 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, we do 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 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 (GA) assets under management (GA AUM) GA AUM is used by MetLife to describe assets in its general account GA investment portfolio which are actively managed and stated at estimated fair value. GA AUM is comprised of GA total investments, the portion of the 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 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 equity (including 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. Classification of GA AUM by sector is based on the nature and characteristics of the underlying investments which can vary from how they are classified under GAAP. Accordingly, the underlying investments within certain real estate and real estate joint ventures that are primarily commercial mortgage loans (at net asset value, net of deduction for encumbering debt) have been reclassified to exclude them from real estate equity and include them as commercial mortgage loans. Asia GA AUM and related measures Asia GA AUM is used by MetLife to describe assets in its Asia GA investment portfolio which are actively managed and stated at estimated fair value. Asia GA AUM is comprised of Asia GA total investments, 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 and certain other invested assets, as substantially all of these assets are not actively managed in MetLife’s Asia GA investment portfolio. Mortgage loans (including commercial, agricultural and residential) and real estate equity (including real estate and real estate joint ventures) included in Asia GA AUM (at net asset value, net of deduction for encumbering debt) have been adjusted from carrying value to estimated fair value. At the segment level, intersegment balances (intercompany activity, primarily related to investments in subsidiaries, that eliminate at the MetLife consolidated level) are excluded from Asia GA AUM. Asia GA AUM (at amortized cost) excludes the following adjustments: (i) unrealized gain (loss) on investments carried at estimated fair value and (ii) adjustments from carrying value to estimated fair value on mortgage loans (including commercial, agricultural and residential) and real estate and real estate joint ventures. Asia GA AUM (at amortized cost) is presented net of related allowance for credit loss.
22 Explanatory Note on Non-GAAP and Other Financial Information (Continued) 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. • 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. • 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.
23 Reconciliation of Net Income (Loss) Available to MetLife, Inc.'s Common Shareholders to Adjusted Earnings Available to Common Shareholders 1Q23 1Q22 Earnings Per Weighted Average Common Share Diluted1 Earnings Per Weighted Average Common Share Diluted1 (In millions, except per share data) Net Income (loss) available to MetLife, Inc.'s common shareholders $ 14 $ 0.02 $ 1,571 $ 1.89 Adjustments from net income (loss) available to MetLife, Inc.'s common shareholders to adjusted earnings available to common shareholders: Less: Net investment gains (losses) (684) (0.88) (517) (0.62) Less: Net derivative gains (losses) (90) (0.12) (951) (1.15) Less: Market risk benefit remeasurement gains (losses) (188) (0.24) 1,440 1.73 Less: Other adjustments to net income (loss) (383) (0.48) (271) (0.32) Less: Provision for income tax (expense) benefit 180 0.23 180 0.22 Add: Net income (loss) attributable to noncontrolling interests 5 0.01 5 0.01 Adjusted earnings available to common shareholders 1,184 1.52 1,695 2.04 Less: Total notable items — — — — Adjusted earnings available to common shareholders, excluding total notable items $ 1,184 1.52 $ 1,695 $ 2.04 Adjusted earnings available to common shareholders on a constant currency basis $ 1,184 $ 1.52 $ 1,675 $ 2.02 Adjusted earnings available to common shareholders, excluding total notable items, on a $ 1,184 $ 1.52 $ 1,675 $ 2.02 constant currency basis Weighted average common shares outstanding - diluted 781.2 830.5 1Adjusted 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.
24 Reconciliation to Adjusted Earnings Available to Common Shareholders, Excluding Total Notable Items 1Q23 U.S.1 Group Benefits1 Retirement & Income Solutions1 Asia Latin America EMEA MetLife Holdings1 Corporate & Other1 (In millions) Adjusted earnings available to common shareholders $ 707 $ 307 $ 400 $ 280 $ 215 $ 60 $ 158 $ (236) Less: Total notable items — — — — — — — — Adjusted earnings available to common shareholders, excluding total notable items $ 707 $ 307 $ 400 $ 280 $ 215 $ 60 $ 158 $ (236) Adjusted earnings available to common shareholders on a constant currency basis $ 280 $ 215 $ 60 Adjusted earnings available to common shareholders, excluding total notable items, on a constant currency basis $ 280 $ 215 $ 60 1Q22 U.S.1 Group Benefits1 Retirement & Income Solutions1 Asia Latin America EMEA MetLife Holdings1 Corporate & Other1 (In millions) Adjusted earnings available to common shareholders $ 663 $ 117 $ 546 $ 599 $ 135 $ 55 $ 348 $ (105) Less: Total notable items — — — — — — — — Adjusted earnings available to common shareholders, excluding total notable items $ 663 $ 117 $ 546 $ 599 $ 135 $ 55 $ 348 $ (105) Adjusted earnings available to common shareholders on a constant currency basis $ 581 $ 142 $ 46 Adjusted earnings available to common shareholders, excluding total notable items, on a constant currency basis $ 581 $ 142 $ 46 1Results on a constant currency basis are not included as constant currency impact is not significant.
25 Reconciliation of Net Investment Income to Adjusted Net Investment Income FY2020 FY2021 FY2022 1Q22 1Q23 (In millions) Net investment income $ 17,117 $ 21,395 $ 15,916 $ 4,284 $ 4,645 Less: Adjustments to net investment income Investment hedge adjustments (815) (895) (976) (215) (264) Unit-linked contract income 568 952 (1,298) (498) 303 Other adjustments (10) (9) (10) (6) — Divested business 46 67 11 11 — Adjusted net investment income $ 17,328 $ 21,280 $ 18,189 $ 4,992 $ 4,606
26 Reconciliation of Premiums, Fees and Other Revenues to Adjusted Premiums, Fees and Other Revenues 1Q22 2Q22 3Q22 4Q22 1Q23 (In millions) Premiums, fees and other revenues $ 12,589 $ 13,543 $ 19,335 $ 10,898 $ 11,517 Less: Adjustments to premiums, fees and other revenues: Asymmetrical and non-economic accounting — — — — — Other adjustments 47 48 40 25 (3) Divested business 55 — — — — Adjusted premiums, fees and other revenues $ 12,487 $ 13,495 $ 19,295 $ 10,873 $ 11,520
27 Expense Detail and Ratios (In millions, except ratio data) 1Q22 2Q22 3Q22 4Q22 1Q23 Reconciliation of Capitalization of DAC to Adjusted Capitalization of DAC Capitalization of DAC $ (652) $ (637) $ (626) $ (699) $ (718) Less: Divested businesses (11) — — — — Adjusted capitalization of DAC $ (641) $ (637) $ (626) $ (699) $ (718) Reconciliation of Other Expenses to Adjusted Other Expenses Other expenses $ 2,912 $ 2,868 $ 2,875 $ 3,078 $ 3,057 Less Adjustments to other expenses: Other adjustments 47 60 47 37 16 Divested businesses 32 8 13 21 11 Adjusted other expenses $ 2,833 $ 2,800 $ 2,815 $ 3,020 $ 3,030 Other Detail and Ratios Other expenses, net of capitalization of DAC $ 2,260 $ 2,231 $ 2,249 $ 2,379 $ 2,339 Premiums, fees and other revenues $ 12,589 $ 13,543 $ 19,335 $ 10,898 $ 11,517 Expense ratio 18.0 % 16.5 % 11.6 % 21.8 % 20.3 % Direct expenses $ 1,332 $ 1,335 $ 1,342 $ 1,481 $ 1,387 Less: Total notable items related to direct expenses — — — — — Direct expenses, excluding total notable items related to direct expenses $ 1,332 $ 1,335 $ 1,342 $ 1,481 $ 1,387 Adjusted other expenses $ 2,833 $ 2,800 $ 2,815 $ 3,020 $ 3,030 Adjusted capitalization of DAC (641) (637) (626) (699) (718) Adjusted other expenses, net of adjusted capitalization of DAC $ 2,192 $ 2,163 $ 2,189 $ 2,321 $ 2,312 Less: Total notable items related to adjusted other expenses — — — — — Adjusted other expenses, net of adjusted capitalization of DAC, excluding total notable items related to adjusted other expenses $ 2,192 $ 2,163 $ 2,189 $ 2,321 $ 2,312 Adjusted premiums, fees and other revenues $ 12,487 $ 13,495 $ 19,295 $ 10,873 $ 11,520 Less: PRT 1,258 2,564 8,466 (69) (21) Adjusted premiums, fees and other revenues, excluding PRT $ 11,229 $ 10,931 $ 10,829 $ 10,942 $ 11,541 Direct expense ratio 10.7 % 9.9 % 7.0 % 13.6 % 12.0 % Direct expense ratio, excluding total notable items related to direct expenses and PRT 11.9 % 12.2 % 12.4 % 13.5 % 12.0 % Adjusted expense ratio 17.6 % 16.0 % 11.3 % 21.3 % 20.1 % Adjusted expense ratio, excluding total notable items related to adjusted other expenses and PRT 19.5 % 19.8 % 20.2 % 21.2 % 20.0 %
28