8-K
Metlife Inc (MET)
View as plain text
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): January 31, 2024
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 January 31, 2024, MetLife, Inc. issued (i) a news release announcing its results for the quarter and full year ended December 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 December 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 December 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 January 31, 2024, MetLife, Inc. issued a supplemental slide presentation for the quarter and full year ended December 31, 2023, as well as outlook information (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 and provide outlook information, 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.
The text of Item 2.02 above with respect to the Total AUM Fact Sheet is incorporated herein by reference.
As used herein, “MetLife,” “we,” and “our” refer to MetLife, Inc., a Delaware corporation incorporated in 1999, its subsidiaries and affiliates.
Consolidated Company Outlook
Our outlook reflects continued uncertainty around inflation and unemployment in 2024. We expect the U.S. dollar to stabilize around current levels.
Based on the forward yield curve as of December 31, 2023, we expect long-term interest rates to remain largely unchanged in 2024 with the yield curve steepening, as short-term interest rates decline. We believe that our investment portfolio is highly diversified and positioned to perform well in a variety of economic scenarios.
As of December 31, 2023, we had $5.2 billion of cash and liquid assets at the holding companies which is above the high end of our $3.0 billion to $4.0 billion holding company cash target. In 2024, we expect to maintain this holding company cash target.
Our continued capital stress testing and longstanding commitment to liquidity position us to withstand a variety of economic conditions. We do not expect any material liquidity deficiencies, and we expect to remain able to comply with the financial covenants of our credit agreements.
Assuming (i) interest rates following the observable forward yield curves as of December 31, 2023, including a 10-year U.S. Treasury rate of 3.84% at December 31, 2024, (ii) S&P 500 equity index annual return of 5% over the near-term, and (iii) private equity annual returns between 7% to 10% over the near-term which is below our long-term historical returns of 12% and assumes continued pressure in the first quarter of 2024 before trending higher; we expect to maintain the two-year average annual ratio of free cash flow to adjusted earnings, excluding total notable items, at 65% to 75%.
Further, based on the aforementioned assumptions, we are maintaining our target for adjusted return on equity, excluding accumulated other comprehensive income other than foreign currency translation adjustments and total notable items, of 13% to 15% over the near-term. Lastly, we expect to exceed our goals to generate approximately $20.0 billion of free cash flow and make available an additional $1.0 billion to invest in growth and innovation, over the time period of 2020 through 2024.
Based on our continued focus on expense discipline, building capacity to reinvest in growth initiatives and our overall efficiency mindset, we are lowering our full year direct expense ratio target, excluding total notable items related to direct expenses and pension risk transfers, from 12.6% to 12.3% over the near-term.
Our outlook relies on the accuracy of our assumptions about future economic and business conditions, which can be affected by known and unknown risks, uncertainties and other factors. We continually review our assumptions, implement mitigation plans, and take precautions. We may revise our outlook as we obtain more information regarding economic conditions, regulatory changes, and other events, and the impact of these events on our business operations, investment portfolio, derivatives, financial results and financial condition.
Forward-Looking Statements
The forward-looking statements in this Item 8.01 of MetLife, Inc.’s Current Report on Form 8-K, which contain words 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, 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, Inc.’s future results could differ, and it does not undertake any obligation to publicly correct or update any forward-looking statement if MetLife, Inc. later becomes aware that such statement is not likely to be achieved.
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.
Item 9.01 Financial Statements and Exhibits.
| 99.1 | News release of MetLife, Inc., dated January 31, 2024, announcing its results for the quarter and full year ended December 31, 2023 | | --- | --- || 99.2 | Quarterly Financial Supplement for the quarter ended December 31, 2023 | | --- | --- || 99.3 | Total AUM Fact Sheet as of December 31, 2023 | | --- | --- || 99.4 | Supplemental Slides for the quarter and full year ended December 31, 2023 and Outlook | | --- | --- | | 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: January 31, 2024
5
Document
Exhibit 99.1
For Immediate Release İ Global Communications İ MetLife, Inc.
METLIFE ANNOUNCES FULL YEAR AND FOURTH QUARTER 2023 RESULTS
NEW YORK, January 31, 2024 - MetLife, Inc. (NYSE: MET) today announced its full year and fourth quarter 2023 results.
Full Year Results Summary*
•Net income of $1.4 billion, compared to net income of $5.1 billion for the full year 2022. Net income of $1.81 per share, down 71 percent from the prior year.
•Adjusted earnings of $5.5 billion, compared to adjusted earnings of $5.8 billion for the full year 2022. Adjusted earnings of $7.25 per share, up 1 percent from the prior year.
•Adjusted earnings, excluding total notable items, of $5.6 billion, compared to $5.7 billion for the full year 2022. On a per share basis, adjusted earnings, excluding total notable items, of $7.33, up 4 percent from $7.05 for the full year 2022.
•Book value of $35.85 per share, up 7 percent from $33.45 per share at December 31, 2022.
•Book value, excluding accumulated other comprehensive income (AOCI) other than foreign currency translation adjustments (FCTA), of $53.75 per share, down 1 percent from $54.30 per share at December 31, 2022.
•Return on equity (ROE) of 5.4 percent.
•Adjusted ROE, excluding AOCI other than FCTA, of 13.6 percent; adjusted ROE, excluding notable items and AOCI other than FCTA, of 13.8 percent.
•Holding company cash and liquid assets of $5.2 billion at December 31, 2023, which is above the target cash buffer of $3.0 - $4.0 billion.
Fourth Quarter Results Summary*
•Net income of $574 million, or $0.77 per share, compared to net income of $1.5 billion, or $1.96 per share, in the fourth quarter of 2022.
•Adjusted earnings of $1.4 billion, or $1.83 per share, compared to adjusted earnings of $1.3 billion, or $1.59 per share, in the fourth quarter of 2022.
•Adjusted earnings, excluding total notable items, of $1.4 billion, or $1.93 per share, compared to adjusted earnings, excluding total notable items, of $1.3 billion, or $1.59 per share, in the fourth quarter of 2022.
•ROE of 9.6 percent.
•Adjusted ROE, excluding AOCI other than FCTA, of 13.8 percent; adjusted ROE, excluding notable items and AOCI other than FCTA, of 14.6 percent.
"The positive momentum in our market-leading portfolio of businesses drove MetLife's strong fourth-quarter and full-year 2023 results," said MetLife President and CEO Michel Khalaf. "We have exited 2023 even stronger than we entered the year with excellent capital and liquidity, arming us with considerable financial flexibility going forward."
*Long-Duration Targeted Improvements (LDTI)
Financial results presented in this news release reflect LDTI accounting, pursuant to Financial Accounting Standards Board Accounting Standards Update No. 2018-12, which became effective on January 1, 2023. For more information, refer to "Non-GAAP and Other Financial Disclosures."
Page 1 of 26
Fourth Quarter and Full Year 2023 Summary
| ($ in millions, except per share data) | Three Months Ended December 31, | Year Ended<br>December 31, | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2023 | 2022 | Change | 2023 | 2022 | Change | |||||||||
| Premiums, fees and other revenues | $ | 13,687 | $ | 10,898 | 26% | $ | 51,961 | $ | 56,365 | (8)% | ||||
| Net investment income | 5,366 | 4,464 | 20% | 19,908 | 15,916 | 25% | ||||||||
| Net investment gains (losses) | (174) | 350 | (2,824) | (1,260) | ||||||||||
| Net derivative gains (losses) | 149 | (104) | (2,140) | (2,251) | ||||||||||
| Total revenues | $ | 19,028 | $ | 15,608 | $ | 66,905 | $ | 68,770 | ||||||
| Adjusted premiums, fees and other revenues | $ | 13,671 | $ | 10,873 | 26% | $ | 51,966 | $ | 56,150 | (7)% | ||||
| Adjusted premiums, fees and other revenues, excluding pension risk transfers (PRT) | $ | 11,811 | $ | 10,942 | 8% | $ | 46,642 | $ | 43,931 | 6% | ||||
| Market risk benefit remeasurement gains (losses) | $ | (431) | $ | 512 | $ | 994 | $ | 3,674 | ||||||
| Net income (loss) | $ | 574 | $ | 1,549 | (63)% | $ | 1,380 | $ | 5,099 | (73)% | ||||
| Net income (loss) per share | $ | 0.77 | $ | 1.96 | (61)% | $ | 1.81 | $ | 6.30 | (71)% | ||||
| Adjusted earnings | $ | 1,361 | $ | 1,260 | 8% | $ | 5,525 | $ | 5,793 | (5)% | ||||
| Adjusted earnings per share | $ | 1.83 | $ | 1.59 | 15% | $ | 7.25 | $ | 7.16 | 1% | ||||
| Adjusted earnings, excluding total notable items | $ | 1,437 | $ | 1,260 | 14% | $ | 5,587 | $ | 5,704 | (2)% | ||||
| Adjusted earnings, excluding total notable items per share | $ | 1.93 | $ | 1.59 | 21% | $ | 7.33 | $ | 7.05 | 4% | ||||
| Book value per share | $ | 35.85 | $ | 33.45 | 7% | $ | 35.85 | $ | 33.45 | 7% | ||||
| Book value per share, excluding AOCI other than FCTA | $ | 53.75 | $ | 54.30 | (1)% | $ | 53.75 | $ | 54.30 | (1)% | ||||
| Expense ratio | 18.6 | % | 21.8 | % | 18.7 | % | 16.2 | % | ||||||
| Direct expense ratio, excluding total notable items related to direct expenses and PRT | 12.4 | % | 13.5 | % | 12.2 | % | 12.5 | % | ||||||
| Adjusted expense ratio, excluding total notable items related to adjusted other expenses and PRT | 20.6 | % | 21.2 | % | 20.5 | % | 20.2 | % | ||||||
| ROE | 9.6 | % | 24.0 | % | 5.4 | % | 15.3 | % | ||||||
| Adjusted ROE, excluding AOCI other than FCTA | 13.8 | % | 12.1 | % | 13.6 | % | 13.7 | % | ||||||
| Adjusted ROE, excluding total notable items (excludes AOCI other than FCTA) | 14.6 | % | 12.1 | % | 13.8 | % | 13.5 | % |
Page 2 of 26
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 fourth quarter of 2023, titled “4Q23 Supplemental Slides and Outlook,” 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 "4Q23 - General Account Assets Under Management Fact Sheet," available on the above-mentioned website. Additionally, further information is available under the heading "Consolidated Company Outlook" in Item 8.01 of the Form 8-K.
Total Company Discussion
MetLife reported fourth quarter 2023 premiums, fees and other revenues of $13.7 billion, up 26 percent compared to the fourth quarter of 2022. Adjusted premiums, fees and other revenues were also $13.7 billion, up 26 percent on a reported basis and up 25 percent on a constant currency basis from the prior-year period.
Net investment income was $5.4 billion, up 20 percent from the fourth quarter of 2022, driven by higher interest rates and increases in the estimated fair value of certain securities that do not qualify as separate accounts under GAAP. Adjusted net investment income was $5.0 billion, up 11 percent from the prior-year period, largely driven by higher interest rates and asset growth.
Net investment losses were $174 million, or $137 million after tax during the quarter primarily driven by normal trading activity in the portfolio. Net derivative gains amounted to $149 million, or $118 million after tax during the quarter, largely driven by a decrease in long-term interest rates.
Net income was $574 million, compared to net income of $1.5 billion in the fourth quarter of 2022. The decline in net income from the prior-year period was driven by market risk benefit remeasurement losses, partially offset by an increase in net derivative gains. On a per-share basis, net income was $0.77, compared to net income of $1.96 in the prior-year period.
MetLife reported adjusted earnings of $1.4 billion, up 8 percent on a reported basis, and up 6 percent on a constant currency basis, from the fourth quarter of 2022. On a per-share basis, adjusted earnings were $1.83, up 15 percent from the prior-year period.
Page 3 of 26
Adjusted Earnings by Segment Summary*
| Three Months Ended<br>December 31, 2023 | Year Ended<br>December 31, 2023 | |||
|---|---|---|---|---|
| Segment | Change from<br>prior-year period | Change from<br>prior-year period <br>(on a constant<br>currency basis) | Change from<br>prior year | Change from<br>prior year <br>(on a constant<br>currency basis) |
| Group Benefits | 19% | 24% | ||
| Retirement and Income Solutions (RIS) | 10% | 4% | ||
| Asia | 12% | 11% | (21)% | (19)% |
| Latin America | 13% | 4% | 15% | 4% |
| Europe, the Middle East and Africa (EMEA) | (27)% | (27)% | 6% | 12% |
| MetLife Holdings | (15)% | (29)% |
*The percentages in this table are on a reported and constant currency basis, and do not exclude notable items.
In the fourth quarter of 2023, MetLife reorganized from five segments into the following six segments to reflect changes in management's responsibilities: Group Benefits, RIS, Asia, Latin America, EMEA and MetLife Holdings. The Group Benefits and RIS businesses were previously reported as the U.S. segment. These changes were applied retrospectively and did not have an impact on prior period total consolidated net income (loss) or adjusted earnings.
Business Discussions
All comparisons of the results for the fourth quarter of 2023 in the business discussions that follow are with the fourth quarter of 2022, unless otherwise noted. The fourth quarter of 2023 notable items table follows the Business Discussions section of this release.
Page 4 of 26
Group Benefits
| ($ in millions) | Three Months Ended<br>December 31, 2023 | Three Months EndedDecember 31, 2022 |
|---|---|---|
| Adjusted earnings | $466 | 392 |
| Adjusted premiums, fees and other revenues | $6,001 | 5,799 |
| Notable item(s) | $0 | 0 |
All values are in US Dollars.
•Adjusted earnings were $466 million, up 19 percent, driven by favorable life underwriting margins and volume growth.
•Adjusted premiums, fees and other revenues were $6.0 billion, up 3 percent, driven by solid underlying growth across most products, including voluntary.
•Sales were up 9 percent for the full year 2023, driven by solid growth across both core and voluntary products, across all market segments.
RIS
| ($ in millions) | Three Months Ended<br>December 31, 2023 | Three Months EndedDecember 31, 2022 |
|---|---|---|
| Adjusted earnings | $421 | 381 |
| Adjusted premiums, fees and other revenues | $2,883 | 517 |
| Adjusted premiums, fees and other revenues, excluding PRT | $1,023 | 586 |
| Notable item(s) | $0 | 0 |
All values are in US Dollars.
*Not meaningful. For more information, refer to "Non-GAAP and Other Financial Disclosures."
•Adjusted earnings were $421 million, up 10 percent, driven by favorable investment and underwriting margins.
•Adjusted premiums, fees and other revenues were $2.9 billion, compared to $517 million in the prior-year period, largely driven by higher pension risk transfers of $1.9 billion.
•Excluding pension risk transfers, adjusted premiums, fees and other revenues were $1.0 billion, up 75 percent, driven by strong structured settlement sales, post-retirement benefit sales and growth in UK longevity reinsurance.
•Sales were down 35 percent for the full year 2023, primarily due to higher pension risk transfer and stable value sales in the prior year.
Page 5 of 26
ASIA
| ($ in millions) | Three Months Ended<br>December 31, 2023 | Three Months EndedDecember 31, 2022 |
|---|---|---|
| Adjusted earnings | $296 | 265 |
| Adjusted earnings (constant currency) | $296 | 267 |
| Adjusted premiums, fees and other revenues | $1,705 | 1,728 |
| Notable item(s) | $0 | 0 |
| Asia general account assets under management (at amortized cost) | $130,093 | 126,335 |
All values are in US Dollars.
•Adjusted earnings were $296 million, up 12 percent on a reported basis, and up 11 percent on a constant currency basis, primarily driven by higher recurring interest margins.
•Adjusted premiums, fees and other revenues were $1.7 billion, down 1 percent on a reported basis, and up 1 percent on a constant currency basis.
•Asia general account assets under management (at amortized cost) were $130.1 billion, up 3 percent on a reported basis, and up 6 percent on a constant currency basis.
•Sales were $611 million, essentially flat on a constant currency basis.
LATIN AMERICA
| ($ in millions) | Three Months Ended<br>December 31, 2023 | Three Months EndedDecember 31, 2022 |
|---|---|---|
| Adjusted earnings | $207 | 184 |
| Adjusted earnings (constant currency) | $207 | 200 |
| Adjusted premiums, fees and other revenues | $1,486 | 1,151 |
| Notable item(s) | $0 | 0 |
All values are in US Dollars.
•Adjusted earnings were $207 million, up 13 percent on a reported basis, and up 4 percent on a constant currency basis, primarily driven by volume growth and higher Chilean encaje returns, partially offset by less favorable underwriting.
•Adjusted premiums, fees and other revenues were $1.5 billion, up 29 percent on a reported basis, and up 19 percent on a constant currency basis, driven by strong sales and solid persistency across the region.
•Sales were $344 million, up 7 percent on a constant currency basis, driven by growth in Mexico and Chile.
Page 6 of 26
EMEA
| ($ in millions) | Three Months Ended<br>December 31, 2023 | Three Months EndedDecember 31, 2022 |
|---|---|---|
| Adjusted earnings | $47 | 64 |
| Adjusted earnings (constant currency) | $47 | 64 |
| Adjusted premiums, fees and other revenues | $595 | 565 |
| Notable item(s) | $0 | 0 |
All values are in US Dollars.
•Adjusted earnings were $47 million, down 27 percent on both a reported and a constant currency basis, driven by an unfavorable tax charge compared to a favorable tax benefit in the prior-year period as well as less favorable underwriting margins. Higher recurring interest margins were a partial offset.
•Adjusted premiums, fees and other revenues were $595 million, up 5 percent on both a reported and constant currency basis.
•Sales were $209 million, up 18 percent on a constant currency basis, driven by growth across the region.
METLIFE HOLDINGS
| ($ in millions) | Three Months Ended<br>December 31, 2023 | Three Months EndedDecember 31, 2022 |
|---|---|---|
| Adjusted earnings | $156 | 184 |
| Adjusted premiums, fees and other revenues | $901 | 1,010 |
| Notable item(s) | $0 | 0 |
All values are in US Dollars.
•Adjusted earnings were $156 million, down 15 percent, largely driven by foregone earnings as a result of the reinsurance transaction that became effective in November.
•Adjusted premiums, fees and other revenues were $901 million, down 11 percent.
CORPORATE & OTHER
| ($ in millions) | Three Months Ended<br>December 31, 2023 | Three Months EndedDecember 31, 2022 |
|---|---|---|
| Adjusted earnings | $(232) | (210) |
| Notable item(s) | $(76) | 0 |
All values are in US Dollars.
•Adjusted loss of $232 million, compared to an adjusted loss of $210 million in the prior-year period. The notable item in the current-year period is related to litigation reserves and settlement costs.
Page 7 of 26
INVESTMENTS
| ($ in millions) | Three Months Ended<br>December 31, 2023 | Three Months Ended<br>December 31, 2022 | Change |
|---|---|---|---|
| Adjusted net investment income | $5,047 | $4,530 | 11% |
•Adjusted net investment income was $5.0 billion, up 11 percent, largely driven by higher recurring investment income due to higher interest rates and asset growth. Variable investment income was $63 million, compared to variable investment income of $24 million in the prior-year period, primarily driven by higher private equity returns.
FOURTH QUARTER 2023 NOTABLE ITEMS
| ( in millions) | Adjusted Earnings | |||||||
|---|---|---|---|---|---|---|---|---|
| Notable Items | Group Benefits | RIS | Asia | Latin<br>America | EMEA | MetLife<br>Holdings | Corporate<br>&<br>Other | Total |
| Litigation reserves and settlement costs | $0 | $0 | $0 | $0 | $0 | $0 | $(76) | $(76) |
| Total notable items | $0 | $0 | $0 | $0 | $0 | $0 | $(76) | $(76) |
All values are in US Dollars.
Contacts: For Media: Dave Franecki (973) 264-7465, Dave.Franecki@metlife.com
For Investors: John Hall (212) 578-7888, John.A.Hall@metlife.com
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 combined fourth quarter and full year 2023 earnings and outlook conference call and audio webcast on Thursday, February 1, 2024, 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
Page 8 of 26
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, February 1, 2024, until Thursday, February 8, 2024, 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 4572614. To access the replay of the conference call over the internet, visit the above-mentioned website.
Non-GAAP and Other Financial Disclosures
| Any references in this news release (except in this section and the tables that accompany this release) to: | should be read as, respectively: | ||
|---|---|---|---|
| (i) | net income (loss); | (i) | net income (loss) available to MetLife, Inc.’s common shareholders; |
| (ii) | net income (loss) per share; | (ii) | net income (loss) available to MetLife, Inc.’s common shareholders per diluted common share; |
| (iii) | adjusted earnings; | (iii) | adjusted earnings available to common shareholders; |
| (iv) | adjusted earnings per share; | (iv) | adjusted earnings available to common shareholders per diluted common share; |
| (v) | book value per share; | (v) | book value per common share; |
| (vi) | book value per share, excluding AOCI other than FCTA; | (vi) | book value per common share, excluding AOCI other than FCTA; |
| (vii) | return on equity; and | (vii) | return on MetLife, Inc.’s common stockholders’ equity; and |
| (viii) | adjusted return on equity, excluding AOCI other than FCTA. | (viii) | adjusted return on MetLife, Inc.’s common stockholders’ equity, excluding AOCI other than FCTA. |
In this news release, MetLife presents certain measures of its performance on a consolidated and segment basis that are not calculated in accordance with accounting principles generally accepted in the United States of America (GAAP). MetLife believes that these non-GAAP financial measures enhance the understanding for MetLife and its investors of MetLife's performance by highlighting the results of operations and the underlying profitability drivers of the business. Segment-specific financial measures are calculated using only the portion of consolidated results attributable to that specific segment.
The following non-GAAP financial measures should not be viewed as substitutes for the most directly comparable financial measures calculated in accordance with GAAP:
| Non-GAAP financial measures: | Comparable GAAP financial measures: | ||
|---|---|---|---|
| (i) | total adjusted revenues; | (i) | total revenues; |
| (ii) | total adjusted expenses; | (ii) | total expenses; |
| (iii) | adjusted premiums, fees and other revenues; | (iii) | premiums, fees and other revenues; |
| (iv) | adjusted premiums, fees and other revenues, excluding PRT; | (iv) | premiums, fees and other revenues; |
| (v) | adjusted net investment income; | (v) | net investment income |
Page 9 of 26
| (vi) | adjusted capitalization of deferred policy acquisition costs (DAC); | (vi) | capitalization of DAC; |
|---|---|---|---|
| (vii) | adjusted earnings available to common shareholders; | (vii) | net income (loss) available to MetLife, Inc.’s common shareholders; |
| (viii) | adjusted earnings available to common shareholders, excluding total notable items; | (viii) | net income (loss) available to MetLife, Inc.’s common shareholders; |
| (ix) | adjusted earnings available to common shareholders per diluted common share; | (ix) | net income (loss) available to MetLife, Inc.’s common shareholders per diluted common share; |
| (x) | adjusted earnings available to common shareholders, excluding total notable items, per diluted common share; | (x) | net income (loss) available to MetLife, Inc.’s common shareholders per diluted common share; |
| (xi) | adjusted return on equity; | (xi) | return on equity; |
| (xii) | adjusted return on equity, excluding AOCI other than FCTA; | (xii) | return on equity; |
| (xiii) | adjusted return on equity, excluding total notable items (excludes AOCI other than FCTA); | (xiii) | return on equity; |
| (xiv) | investment portfolio gains (losses); | (xiv) | net investment gains (losses); |
| (xv) | derivative gains (losses); | (xv) | net derivative gains (losses); |
| (xvi) | total MetLife, Inc.’s common stockholders’ equity, excluding AOCI other than FCTA; | (xvi) | total MetLife, Inc.’s stockholders’ equity; |
| (xvii) | total MetLife, Inc.’s common stockholders’ equity, excluding total notable items (excludes AOCI other than FCTA); | (xvii) | total MetLife, Inc.’s stockholders’ equity; |
| (xviii) | book value per common share, excluding AOCI other than FCTA; | (xviii) | book value per common share; |
| (xix) | free cash flow of all holding companies; | (xix) | MetLife, Inc. (parent company only) net cash provided by (used in) operating activities; |
| (xx) | adjusted other expenses; | (xx) | other expenses; |
| (xxi) | adjusted other expenses, net of adjusted capitalization of DAC; | (xxi) | other expenses, net of capitalization of DAC; |
| (xxii) | adjusted other expenses, net of adjusted capitalization of DAC, excluding total notable items related to adjusted other expenses; | (xxii) | other expenses, net of capitalization of DAC; |
| (xxiii) | adjusted expense ratio; | (xxiii) | expense ratio; |
| (xxiv) | adjusted expense ratio, excluding total notable items related to adjusted other expenses and PRT; | (xxiv) | expense ratio; |
| (xxv) | direct expenses; | (xxv) | other expenses; |
| (xxvi) | direct expenses, excluding total notable items related to direct expenses; | (xxvi) | other expenses; |
| (xxvii) | direct expense ratio; and | (xxvii) | expense ratio; and |
| (xxviii) | direct expense ratio, excluding total notable items related to direct expenses and PRT. | (xxviii) | expense ratio. |
Page 10 of 26
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 earnings news release and in this period’s quarterly financial supplement, which is available at www.metlife.com.
MetLife’s definitions of non-GAAP and other financial measures discussed in this news release may differ from those used by other companies:
Adjusted earnings and related measures
•adjusted earnings;
•adjusted earnings available to common shareholders;
•adjusted earnings available to common shareholders on a constant currency basis;
•adjusted earnings available to common shareholders, excluding total notable items;
•adjusted earnings available to common shareholders, excluding total notable items, on a constant currency basis;
•adjusted earnings available to common shareholders per diluted common share;
•adjusted earnings available to common shareholders on a constant currency basis per diluted common share;
•adjusted earnings available to common shareholders, excluding total notable items per diluted common share; and
•adjusted earnings available to common shareholders, excluding total notable items, on a constant currency basis per diluted common share.
These measures are used by management to evaluate performance and allocate resources. Consistent with GAAP guidance for segment reporting, adjusted earnings and components of, or other financial measures based on, adjusted earnings are also MetLife’s GAAP measures of segment performance. Adjusted earnings and other financial measures based on adjusted earnings are also the measures by which MetLife senior management’s and many other employees’ performance is evaluated for the purposes of determining their compensation under applicable compensation plans. Adjusted earnings and other financial measures based on adjusted earnings allow analysis of MetLife's performance relative to its business plan and facilitate comparisons to industry results.
Effective January 1, 2023, MetLife adopted ASU 2018-12, Financial Services - Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts, as amended ("LDTI"), with a transition date of January 1, 2021, which impacted the calculation of adjusted earnings. Due to the adoption of LDTI, the measurement model was simplified for DAC and value of business acquired ("VOBA"), and most embedded derivatives were reclassified as market risk benefits. As a result, MetLife updated its calculation of adjusted earnings to remove certain adjustments related to the amortization of DAC, VOBA and related intangibles and adjusted for changes in measurement of certain guarantees. Under LDTI, adjusted earnings excludes changes in fair value associated with market risk benefits, changes in discount rates on certain annuitization guarantees, losses at contract inception for certain single premium business, and asymmetrical accounting associated with in-force reinsurance. All periods presented herein reflect the updated calculation of adjusted earnings.
Adjusted earnings is defined as adjusted revenues less adjusted expenses, net of income tax. Adjusted earnings available to common shareholders is defined as adjusted earnings less preferred stock dividends.
Adjusted revenues and adjusted expenses
These financial measures, along with the related adjusted premiums, fees and other revenues, focus on our primary businesses principally by excluding the impact of (i) market volatility which could distort trends, (ii) asymmetrical and non-economic accounting, and (iii) revenues and costs related to divested businesses, non-core products and certain entities required to be consolidated under GAAP. Also, these
Page 11 of 26
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 and exclude asymmetrical accounting associated with in-force reinsurance.
•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, (iii) asymmetrical accounting associated with in-force reinsurance, and (iv) 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 and asymmetrical accounting associated with in-force reinsurance.
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
Page 12 of 26
redemption premium which is reported as a reduction to net income (loss) available to MetLife, Inc.’s common shareholders.
Investment portfolio gains (losses) and derivative gains (losses)
These are measures of investment and hedging activity. Investment portfolio gains (losses) principally excludes amounts that are reported within net investment gains (losses) but do not relate to the performance of the investment portfolio, such as gains (losses) on sales and divestitures of businesses, as well as investment portfolio gains (losses) of divested businesses. Derivative gains (losses) principally excludes earned income on derivatives and amortization of premium on derivatives, where such derivatives are either hedges of investments or are used to replicate certain investments, and where such derivatives do not qualify for hedge accounting. This earned income and amortization of premium is reported within adjusted earnings and not within derivative gains (losses).
Return on equity and related measures
•Total MetLife, Inc.’s common stockholders’ equity, excluding AOCI other than FCTA: total MetLife, Inc.’s common stockholders’ equity, excluding the net unrealized investment gains (losses), future policy benefits discount rate remeasurement gains (losses), market risk benefits instrument-specific credit risk remeasurement gains (losses) and defined benefit plans adjustment components of AOCI, net of income tax.
•Total MetLife, Inc.’s common stockholders’ equity, excluding total notable items (excludes AOCI other than FCTA): total MetLife, Inc.’s common stockholders’ equity, excluding the net unrealized investment gains (losses), future policy benefits discount rate remeasurement gains (losses), market risk benefits instrument-specific credit risk remeasurement gains (losses), defined benefit plans adjustment components of AOCI, and total notable items, net of income tax.
•Return on MetLife, Inc.’s common stockholders’ equity: net income (loss) available to MetLife, Inc.’s common shareholders divided by MetLife, Inc.’s average common stockholders’ equity.
•Adjusted return on MetLife, Inc.'s common stockholders' equity: adjusted earnings available to common shareholders divided by MetLife, Inc.'s average common stockholders' equity.
•Adjusted return on MetLife, Inc.'s common stockholders' equity, excluding AOCI other than FCTA: adjusted earnings available to common shareholders divided by MetLife, Inc.'s average common stockholders' equity, excluding AOCI other than FCTA.
•Adjusted return on MetLife, Inc.'s common stockholders' equity, excluding total notable items (excludes AOCI other than FCTA): adjusted earnings available to common shareholders, excluding total notable items, divided by MetLife, Inc.'s average common stockholders' equity, excluding total notable items (excludes AOCI other than FCTA).
The above measures represent a level of equity consistent with the view that, in the ordinary course of business, MetLife does not plan to sell most investments for the sole purpose of realizing gains or losses.
Expense ratio, direct expense ratio, adjusted expense ratio and related measures
•Expense ratio: other expenses, net of capitalization of DAC, divided by premiums, fees and other revenues.
•Direct expense ratio: adjusted direct expenses, divided by adjusted premiums, fees and other revenues. Direct expenses are comprised of employee-related costs, third-party staffing costs, and general and administrative expenses.
•Direct expense ratio, excluding total notable items related to direct expenses and PRT: adjusted direct expenses, excluding total notable items related to direct expenses, divided by adjusted premiums, fees and other revenues, excluding PRT.
•Adjusted expense ratio: adjusted other expenses, net of adjusted capitalization of DAC, divided by adjusted premiums, fees and other revenues.
•Adjusted expense ratio, excluding total notable items related to adjusted other expenses and PRT: adjusted other expenses, net of adjusted capitalization of DAC, excluding total notable items related
Page 13 of 26
to adjusted other expenses, divided by adjusted premiums, fees and other revenues, excluding PRT.
Asia General account (GA) assets under management (GA AUM) and related measures
Asia GA AUM is used by MetLife to describe assets in its Asia GA investment portfolio. Asia GA AUM is stated at estimated fair value and is comprised of Asia GA total investments, the portion of the Asia GA investment portfolio classified within assets held-for-sale and cash and cash equivalents, excluding policy loans, contractholder-directed equity securities, fair value option securities, mortgage loans originated for third parties and certain other invested assets. Mortgage loans, net of mortgage loans originated for third parties ("net mortgage loans") (including commercial ("net commercial mortgage loans"), agricultural ("net agricultural mortgage loans") and residential mortgage loans) and real estate equity (including real estate and real estate joint ventures) included in Asia GA AUM (at net asset value, net of deduction for encumbering debt) have been adjusted from carrying value to estimated fair value. At the segment level, intersegment balances (intercompany activity, primarily related to investments in subsidiaries, that eliminate at the MetLife consolidated level) are excluded from Asia GA AUM.
Asia GA AUM (at amortized cost) excludes the following adjustments: (i) unrealized gain (loss) on investments carried at estimated fair value and (ii) adjustments from carrying value to estimated fair value on net mortgage loans (including net commercial mortgage loans, net agricultural mortgage loans and residential mortgage loans) and real estate and real estate joint ventures. Asia GA AUM (at amortized cost) is presented net of related allowance for credit loss.
Statistical sales information:
•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.
•RIS: calculated using 10% of single premium deposits and 100% of annualized full-year premiums and fees only from recurring premium policy sales of specialized benefit resources and corporate-owned life insurance.
•Latin America, Asia and EMEA: calculated using 10% of single-premium deposits (mainly from retirement products such as variable annuity, fixed annuity and pensions), 20% of single-premium deposits from credit insurance and 100% of annualized full-year premiums and fees from recurring-premium policy sales of all products (mainly from risk and protection products such as individual life, accident & health and group).
Sales statistics do not correspond to revenues under GAAP, but are used as relevant measures of business activity.
The following additional information is relevant to an understanding of MetLife’s performance results and outlook:
•Volume growth, as discussed in the context of business growth, is the period over period percentage change in adjusted earnings available to common shareholders attributable to adjusted premiums, fees and other revenues and assets under management levels, applying a model in which certain margins and factors are held constant. The most significant of such items are underwriting margins, investment margins, changes in equity market performance, expense margins and the impact of changes in foreign currency exchange rates.
•Holding company cash and liquid assets are held by MetLife, Inc. collectively with other MetLife holding companies and include cash and cash equivalents, short term investments and publicly traded securities excluding assets that are pledged or otherwise committed. Assets pledged or otherwise committed include amounts received in connection with securities lending, repurchase agreements, derivatives, regulatory deposits, the collateral financing arrangement, funding agreements and secured borrowings, as well as amounts held in the closed block.
•MetLife uses a measure of free cash flow to facilitate an understanding of its ability to generate cash for reinvestment into its businesses or use in non-mandatory capital actions. MetLife defines free cash flow as the sum of cash available at MetLife’s holding companies from dividends from operating subsidiaries, expenses and other net flows of the holding companies (including capital contributions to subsidiaries), and net contributions from debt to be at or below target leverage ratios. This
Page 14 of 26
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.
•Not Meaningful (NM) indicates a percentage change in a financial metric over a specified period of time and reflects changes in factors that are subject to volatility, and should not, accordingly be viewed as representative of a reasonable trend currently or in the future. For example,
| ($ in millions) | Three Months Ended<br>December 31, 2023 | Three Months Ended<br>December 31, 2022 | Change |
|---|---|---|---|
| Adjusted premiums, fees and other revenues - RIS | $2,883 | $517 | 458% |
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 identified in MetLife, Inc.’s filings with the U.S. Securities and Exchange Commission, and others, may cause such differences. These factors include:
(1)economic condition difficulties, including risks relating to interest rates, credit spreads, declining equity or debt markets, real estate, obligors and counterparties, government default, currency exchange rates, derivatives, climate change, public health and terrorism and security;
(2)global capital and credit market adversity;
(3)credit facility inaccessibility;
(4)financial strength or credit ratings downgrades;
(5)unavailability, unaffordability, or inadequate reinsurance, including reinsurance risks that arise from reinsurers' credit risk, and the potential shortfall or failure of risk mitigants to protect against such risks;
(6)statutory life insurance reserve financing costs or limited market capacity;
Page 15 of 26
(7)legal, regulatory, and supervisory and enforcement policy changes;
(8)changes in tax rates, tax laws or interpretations;
(9)litigation and regulatory investigations;
(10)unsuccessful efforts to meet all environmental, social, and governance standards or to enhance our sustainability;
(11)MetLife, Inc.’s inability to pay dividends and repurchase common stock;
(12)MetLife, Inc.’s subsidiaries’ inability to pay dividends to MetLife, Inc.;
(13)investment defaults, downgrades, or volatility;
(14)investment sales or lending difficulties;
(15)collateral or derivative-related payments;
(16)investment valuations, allowances, or impairments changes;
(17)claims or other results that differ from our estimates, assumptions, or models;
(18)global political, legal, or operational risks;
(19)business competition;
(20)technological changes;
(21)catastrophes;
(22)climate changes or responses to it;
(23)deficiencies in our closed block;
(24)goodwill or other asset impairment, or deferred income tax asset allowance;
(25)impairment of VOBA, value of distribution agreements acquired or value of customer relationships acquired;
(26)product guarantee volatility, costs, and counterparty risks;
(27)risk management failures;
(28)insufficient protection from operational risks;
(29)failure to protect confidentiality and integrity of data or other cybersecurity or disaster recovery failures;
(30)accounting standards changes;
(31)excessive risk-taking;
(32)marketing and distribution difficulties;
(33)pension and other postretirement benefit assumption changes;
(34)inability to protect our intellectual property or avoid infringement claims;
(35)acquisition, integration, growth, disposition, or reorganization difficulties;
(36)Brighthouse Financial, Inc. separation risks;
(37)MetLife, Inc.’s Board of Directors influence over the outcome of stockholder votes through the voting provisions of the MetLife Policyholder Trust; and
(38)legal- and corporate governance-related effects on business combinations.
MetLife, Inc. does not undertake any obligation to publicly correct or update any forward-looking statement if MetLife, Inc. later becomes aware that such statement is not likely to be achieved. Please consult any further disclosures MetLife, Inc. makes on related subjects in subsequent reports to the U.S. Securities and Exchange Commission.
Page 16 of 26
| MetLife, Inc. | ||||||||
|---|---|---|---|---|---|---|---|---|
| GAAP Consolidated Statements of Operations | ||||||||
| (In millions) | ||||||||
| For the Three Months Ended | For the Year Ended | |||||||
| December 31, | December 31, | |||||||
| 2023 | 2022 | 2023 | 2022 | |||||
| Revenues | ||||||||
| Premiums | $ | 11,786 | $ | 9,005 | $ | 44,283 | $ | 48,510 |
| Universal life and investment-type product policy fees | 1,241 | 1,266 | 5,152 | 5,225 | ||||
| Net investment income | 5,366 | 4,464 | 19,908 | 15,916 | ||||
| Other revenues | 660 | 627 | 2,526 | 2,630 | ||||
| Net investment gains (losses) | (174) | 350 | (2,824) | (1,260) | ||||
| Net derivative gains (losses) | 149 | (104) | (2,140) | (2,251) | ||||
| Total revenues | 19,028 | 15,608 | 66,905 | 68,770 | ||||
| Expenses | ||||||||
| Policyholder benefits and claims | 11,779 | 9,115 | 44,590 | 49,507 | ||||
| Policyholder liability remeasurement (gains) losses | (3) | 20 | (45) | 114 | ||||
| Market risk benefit remeasurement (gains) losses | 431 | (512) | (994) | (3,674) | ||||
| Interest credited to policyholder account balances | 2,405 | 1,727 | 7,860 | 3,894 | ||||
| Policyholder dividends | 159 | 155 | 622 | 706 | ||||
| Amortization of DAC and VOBA | 504 | 457 | 1,952 | 1,831 | ||||
| Amortization of negative VOBA | (6) | (7) | (26) | (29) | ||||
| Interest expense on debt | 269 | 248 | 1,045 | 938 | ||||
| Other expenses, net of capitalization of DAC | 2,549 | 2,379 | 9,739 | 9,119 | ||||
| Total expenses | 18,087 | 13,582 | 64,743 | 62,406 | ||||
| Income (loss) before provision for income tax | 941 | 2,026 | 2,162 | 6,364 | ||||
| Provision for income tax expense (benefit) | 327 | 445 | 560 | 1,062 | ||||
| Net income (loss) | 614 | 1,581 | 1,602 | 5,302 | ||||
| Less: Net income (loss) attributable to noncontrolling interests | 7 | 3 | 24 | 18 | ||||
| Net income (loss) attributable to MetLife, Inc. | 607 | 1,578 | 1,578 | 5,284 | ||||
| Less: Preferred stock dividends | 33 | 29 | 198 | 185 | ||||
| Net income (loss) available to MetLife, Inc.'s common shareholders | $ | 574 | $ | 1,549 | $ | 1,380 | $ | 5,099 |
| See footnotes on last page. |
Page 17 of 26
| MetLife, Inc. | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (In millions, except per share data) | |||||||||||||||||
| For the Three Months Ended | For the Year Ended | ||||||||||||||||
| December 31, | December 31, | ||||||||||||||||
| 2023 | 2022 | 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) | 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 | $ | 574 | $ | 0.77 | $ | 1,549 | $ | 1.96 | $ | 1,380 | $ | 1.81 | $ | 5,099 | $ | 6.30 | |
| Adjustments from net income (loss) available to common shareholders to adjusted earnings available to common shareholders: | |||||||||||||||||
| Less: Net investment gains (losses) | (174) | (0.23) | 350 | 0.44 | (2,824) | (3.70) | (1,260) | (1.56) | |||||||||
| Net derivative gains (losses) | 149 | 0.20 | (104) | (0.13) | (2,140) | (2.81) | (2,251) | (2.78) | |||||||||
| Market risk benefit remeasurement gains (losses) | (431) | (0.58) | 512 | 0.65 | 994 | 1.30 | 3,674 | 4.54 | |||||||||
| Premiums | — | — | — | — | — | — | 41 | 0.05 | |||||||||
| Universal life and investment-type product policy fees | — | — | — | — | — | — | 11 | 0.01 | |||||||||
| Net investment income | 319 | 0.43 | (66) | (0.08) | 159 | 0.21 | (2,273) | (2.80) | |||||||||
| Other revenues | 16 | 0.02 | 25 | 0.03 | (5) | (0.01) | 163 | 0.20 | |||||||||
| Policyholder benefits and claims and policyholder dividends | 36 | 0.05 | 26 | 0.03 | 5 | 0.01 | (484) | (0.60) | |||||||||
| Policyholder liability remeasurement (gains) losses | — | — | — | — | — | — | — | — | |||||||||
| Interest credited to policyholder account balances | (685) | (0.93) | (244) | (0.31) | (1,251) | (1.65) | 1,385 | 1.72 | |||||||||
| Capitalization of DAC | — | — | — | — | — | — | 11 | 0.01 | |||||||||
| Amortization of DAC and VOBA | — | — | — | — | — | — | (8) | (0.01) | |||||||||
| Amortization of negative VOBA | — | — | — | — | — | — | — | — | |||||||||
| Interest expense on debt | — | — | — | — | — | — | — | — | |||||||||
| Other expenses | (16) | (0.02) | (58) | (0.07) | (93) | (0.12) | (265) | (0.33) | |||||||||
| Goodwill impairment | — | — | — | — | — | — | — | — | |||||||||
| Provision for income tax (expense) benefit | 6 | 0.01 | (149) | (0.19) | 1,034 | 1.36 | 580 | 0.72 | |||||||||
| Add: Net income (loss) attributable to noncontrolling interests | 7 | 0.01 | 3 | — | 24 | 0.03 | 18 | 0.03 | |||||||||
| Preferred stock redemption premium | — | — | — | — | — | — | — | — | |||||||||
| Adjusted earnings available to common shareholders | 1,361 | 1.83 | 1,260 | 1.59 | 5,525 | 7.25 | 5,793 | 7.16 | |||||||||
| Less: Total notable items (2) | (76) | (0.10) | — | — | (62) | (0.08) | 89 | 0.11 | |||||||||
| Adjusted earnings available to common shareholders, excluding total notable items (2) | $ | 1,437 | $ | 1.93 | $ | 1,260 | $ | 1.59 | $ | 5,587 | $ | 7.33 | $ | 5,704 | $ | 7.05 | |
| Adjusted earnings available to common shareholders on a constant currency basis | $ | 1,361 | $ | 1.83 | $ | 1,278 | $ | 1.62 | $ | 5,525 | $ | 7.25 | $ | 5,823 | $ | 7.20 | |
| Adjusted earnings available to common shareholders, excluding total notable items, on a constant currency basis (2) | $ | 1,437 | $ | 1.93 | $ | 1,278 | $ | 1.62 | $ | 5,587 | $ | 7.33 | $ | 5,734 | $ | 7.09 | |
| Weighted average common shares outstanding - diluted | 743.4 | 790.2 | 762.3 | 808.9 | |||||||||||||
| See footnotes on last page. |
Page 18 of 26
| MetLife, Inc. | ||||||||
|---|---|---|---|---|---|---|---|---|
| (In millions) | ||||||||
| For the Three Months Ended | For the Year Ended | |||||||
| December 31, | December 31, | |||||||
| 2023 | 2022 | 2023 | 2022 | |||||
| Premiums, Fees and Other Revenues | ||||||||
| Premiums, fees and other revenues | $ | 13,687 | $ | 10,898 | $ | 51,961 | $ | 56,365 |
| Less: Adjustments to premiums, fees and other revenues: | ||||||||
| Asymmetrical and non-economic accounting | 29 | — | 29 | — | ||||
| Other adjustments | (13) | 25 | (34) | 160 | ||||
| Divested businesses | — | — | — | 55 | ||||
| Adjusted premiums, fees and other revenues | $ | 13,671 | $ | 10,873 | $ | 51,966 | $ | 56,150 |
| Adjusted premiums, fees and other revenues, on a constant currency basis | $ | 13,671 | $ | 10,926 | $ | 51,966 | $ | 56,150 |
| Less: PRT | 1,860 | (69) | 5,324 | 12,219 | ||||
| Adjusted premiums, fees and other revenues, excluding PRT, on a constant currency basis | $ | 11,811 | $ | 10,995 | $ | 46,642 | $ | 43,931 |
| Net Investment Income | ||||||||
| Net investment income | $ | 5,366 | $ | 4,464 | $ | 19,908 | $ | 15,916 |
| Less: Adjustments to net investment income | ||||||||
| Investment hedge adjustments | (253) | (277) | (1,012) | (976) | ||||
| Unit-linked contract income | 580 | 209 | 1,183 | (1,298) | ||||
| Other adjustments | (8) | 2 | (12) | (10) | ||||
| Divested businesses | — | — | — | 11 | ||||
| Adjusted net investment income | $ | 5,047 | $ | 4,530 | $ | 19,749 | $ | 18,189 |
| Revenues and Expenses | ||||||||
| Total revenues | $ | 19,028 | $ | 15,608 | $ | 66,905 | $ | 68,770 |
| Less: Adjustments to total revenues: | ||||||||
| Net investment gains (losses) | (174) | 350 | (2,824) | (1,260) | ||||
| Net derivative gains (losses) | 149 | (104) | (2,140) | (2,251) | ||||
| Investment hedge adjustments | (253) | (277) | (1,012) | (976) | ||||
| Asymmetrical and non-economic accounting | 29 | — | 29 | — | ||||
| Unit-linked contract income | 580 | 209 | 1,183 | (1,298) | ||||
| Other adjustments | (21) | 27 | (46) | 150 | ||||
| Divested businesses | — | — | — | 66 | ||||
| Total adjusted revenues | $ | 18,718 | $ | 15,403 | $ | 71,715 | $ | 74,339 |
| Total expenses | $ | 18,087 | $ | 13,582 | $ | 64,743 | $ | 62,406 |
| Less: Adjustments to total expenses: | ||||||||
| Market risk benefit remeasurement (gains) losses | 431 | (512) | (994) | (3,674) | ||||
| Goodwill impairment | — | — | — | — | ||||
| Asymmetrical and non-economic accounting | 129 | 143 | 247 | 588 | ||||
| Market volatility | (62) | (105) | (184) | (193) | ||||
| Unit-linked contract costs | 582 | 180 | 1,183 | (1,322) | ||||
| Other adjustments | 7 | 37 | 55 | 191 | ||||
| Divested businesses | 9 | 21 | 38 | 97 | ||||
| Total adjusted expenses | $ | 16,991 | $ | 13,818 | $ | 64,398 | $ | 66,719 |
| See footnotes on last page. |
Page 19 of 26
| MetLife, Inc. | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (In millions, except per share and ratio data) | ||||||||||||
| For the Three Months Ended | For the Year Ended | |||||||||||
| December 31, | December 31, | |||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||
| Expense Detail and Ratios | ||||||||||||
| Reconciliation of Capitalization of DAC to Adjusted Capitalization of DAC | ||||||||||||
| Capitalization of DAC | $ | (728) | $ | (699) | $ | (2,917) | $ | (2,614) | ||||
| Less: Divested businesses | — | — | — | (11) | ||||||||
| Adjusted capitalization of DAC | $ | (728) | $ | (699) | $ | (2,917) | $ | (2,603) | ||||
| Reconciliation of Other Expenses to Adjusted Other Expenses | ||||||||||||
| Other expenses | $ | 3,277 | $ | 3,078 | $ | 12,656 | $ | 11,733 | ||||
| Less: Other adjustments | 7 | 37 | 55 | 191 | ||||||||
| Less: Divested businesses | 9 | 21 | 38 | 74 | ||||||||
| Adjusted other expenses | $ | 3,261 | $ | 3,020 | $ | 12,563 | $ | 11,468 | ||||
| Other Detail and Ratios | ||||||||||||
| Other expenses, net of capitalization of DAC | $ | 2,549 | $ | 2,379 | $ | 9,739 | $ | 9,119 | ||||
| Premiums, fees and other revenues | $ | 13,687 | $ | 10,898 | $ | 51,961 | $ | 56,365 | ||||
| Expense ratio | 18.6 | % | 21.8 | % | 18.7 | % | 16.2 | % | ||||
| Direct expenses | $ | 1,559 | $ | 1,481 | $ | 5,808 | $ | 5,490 | ||||
| Less: Total notable items related to direct expenses (2) | 96 | — | 96 | — | ||||||||
| Direct expenses, excluding total notable items related to direct expenses (2) | $ | 1,463 | $ | 1,481 | $ | 5,712 | $ | 5,490 | ||||
| Adjusted other expenses | $ | 3,261 | $ | 3,020 | $ | 12,563 | $ | 11,468 | ||||
| Adjusted capitalization of DAC | (728) | (699) | (2,917) | (2,603) | ||||||||
| Adjusted other expenses, net of adjusted capitalization of DAC | 2,533 | 2,321 | 9,646 | 8,865 | ||||||||
| Less: Total notable items related to adjusted other expenses (2) | 96 | — | 96 | — | ||||||||
| Adjusted other expenses, net of adjusted capitalization of DAC, excluding total notable items related to adjusted other expenses (2) | $ | 2,437 | $ | 2,321 | $ | 9,550 | $ | 8,865 | ||||
| Adjusted premiums, fees and other revenues | $ | 13,671 | $ | 10,873 | $ | 51,966 | $ | 56,150 | ||||
| Less: PRT | 1,860 | (69) | 5,324 | 12,219 | ||||||||
| Adjusted premiums, fees and other revenues, excluding PRT | $ | 11,811 | $ | 10,942 | $ | 46,642 | $ | 43,931 | ||||
| Direct expense ratio | 11.4 | % | 13.6 | % | 11.2 | % | 9.8 | % | ||||
| Direct expense ratio, excluding total notable items related to direct expenses and PRT (2) | 12.4 | % | 13.5 | % | 12.2 | % | 12.5 | % | ||||
| Adjusted expense ratio | 18.5 | % | 21.3 | % | 18.6 | % | 15.8 | % | ||||
| Adjusted expense ratio, excluding total notable items related to adjusted other expenses and PRT (2) | 20.6 | % | 21.2 | % | 20.5 | % | 20.2 | % | ||||
| See footnotes on last page. |
Page 20 of 26
| MetLife, Inc. | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (In millions, except per share data) | ||||||||||||
| December 31, | ||||||||||||
| Equity Details | 2023 | 2022 | ||||||||||
| Total MetLife, Inc.'s stockholders' equity | $ | 30,015 | $ | 29,881 | ||||||||
| Less: Preferred stock | 3,818 | 3,818 | ||||||||||
| MetLife, Inc.'s common stockholders' equity | 26,197 | 26,063 | ||||||||||
| Less: Net unrealized investment gains (losses), net of income tax | (14,323) | (21,089) | ||||||||||
| Future policy benefits discount rate remeasurement gain (losses), net of income tax | 2,658 | 6,115 | ||||||||||
| Market risk benefits instrument-specific credit risk remeasurement gains (losses), net of income tax | 27 | 107 | ||||||||||
| Defined benefit plans adjustment, net of income tax | (1,446) | (1,377) | ||||||||||
| Total MetLife, Inc.'s common stockholders' equity, excluding AOCI other than FCTA | 39,281 | 42,307 | ||||||||||
| Less: Accumulated year-to-date total notable items (2) | (62) | 89 | ||||||||||
| Total MetLife, Inc.'s common stockholders' equity, excluding total notable items (excludes AOCI other than FCTA) (2) | $ | 39,343 | $ | 42,218 | ||||||||
| December 31, | ||||||||||||
| Book Value (3) | 2023 | 2022 | ||||||||||
| Book value per common share | $ | 35.85 | $ | 33.45 | ||||||||
| Less: Net unrealized investment gains (losses), net of income tax | (19.60) | (27.07) | ||||||||||
| Future policy benefits discount rate remeasurement gain (losses), net of income tax | 3.64 | 7.85 | ||||||||||
| Market risk benefits instrument-specific credit risk remeasurement gains (losses), net of income tax | 0.04 | 0.14 | ||||||||||
| Defined benefit plans adjustment, net of income tax | (1.98) | (1.77) | ||||||||||
| Book value per common share, excluding AOCI other than FCTA | $ | 53.75 | $ | 54.30 | ||||||||
| Common shares outstanding, end of period (4) | 730.8 | 779.1 | ||||||||||
| For the Three Months Ended | For the Year Ended | |||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| December 31, (5) | December 31, | |||||||||||
| Return on Equity | 2023 | 2022 | 2023 | 2022 | ||||||||
| Return on MetLife, Inc.'s: | ||||||||||||
| Common stockholders' equity | 9.6 | % | 24.0 | % | 5.4 | % | 15.3 | % | ||||
| Adjusted return on MetLife, Inc.'s: | ||||||||||||
| Common stockholders' equity | 22.7 | % | 19.5 | % | 21.4 | % | 17.4 | % | ||||
| Common stockholders' equity, excluding AOCI other than FCTA | 13.8 | % | 12.1 | % | 13.6 | % | 13.7 | % | ||||
| Common stockholders' equity, excluding total notable items (excludes AOCI other than FCTA) (2) | 14.6 | % | 12.1 | % | 13.8 | % | 13.5 | % | ||||
| For the Three Months Ended | For the Year Ended | |||||||||||
| December 31, | December 31, | |||||||||||
| Average Common Stockholders' Equity | 2023 | 2022 | 2023 | 2022 | ||||||||
| Average common stockholders' equity | $ | 24,019 | $ | 25,817 | $ | 25,784 | $ | 33,221 | ||||
| Average common stockholders' equity, excluding AOCI other than FCTA | $ | 39,368 | $ | 41,640 | $ | 40,599 | $ | 42,282 | ||||
| Average common stockholders' equity, excluding total notable items (excludes AOCI other than FCTA) (2) | $ | 39,392 | $ | 41,551 | $ | 40,608 | $ | 42,231 | ||||
| See footnotes on last page. |
Page 21 of 26
| MetLife, Inc. | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Adjusted Earnings Available to Common Shareholders | |||||||||
| (In millions) | |||||||||
| For the Three Months Ended | For the Year Ended | ||||||||
| December 31, | December 31, | ||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||
| Group Benefits (6): | |||||||||
| Adjusted earnings available to common shareholders | $ | 466 | $ | 392 | $ | 1,655 | $ | 1,332 | |
| Less: Total notable items (2) | — | — | 27 | — | |||||
| Adjusted earnings available to common shareholders, excluding total notable items (2) | $ | 466 | $ | 392 | $ | 1,628 | $ | 1,332 | |
| Adjusted premiums, fees and other revenues | $ | 6,001 | $ | 5,799 | $ | 23,929 | $ | 23,266 | |
| Retirement & Income Solutions (6): | |||||||||
| Adjusted earnings available to common shareholders | $ | 421 | $ | 381 | $ | 1,708 | $ | 1,635 | |
| Less: Total notable items (2) | — | — | 61 | 79 | |||||
| Adjusted earnings available to common shareholders, excluding total notable items (2) | $ | 421 | $ | 381 | $ | 1,647 | $ | 1,556 | |
| Adjusted premiums, fees and other revenues | $ | 2,883 | $ | 517 | $ | 8,832 | $ | 14,314 | |
| Less: PRT | 1,860 | (69) | 5,324 | 12,219 | |||||
| Adjusted premiums, fees and other revenues, excluding PRT | $ | 1,023 | $ | 586 | $ | 3,508 | $ | 2,095 | |
| Asia: | |||||||||
| Adjusted earnings available to common shareholders | $ | 296 | $ | 265 | $ | 1,282 | $ | 1,617 | |
| Less: Total notable items (2) | — | — | (94) | (32) | |||||
| Adjusted earnings available to common shareholders, excluding total notable items (2) | $ | 296 | $ | 265 | $ | 1,376 | $ | 1,649 | |
| Adjusted earnings available to common shareholders on a constant currency basis | $ | 296 | $ | 267 | $ | 1,282 | $ | 1,583 | |
| Adjusted earnings available to common shareholders, excluding total notable items, on a constant currency basis (2) | $ | 296 | $ | 267 | $ | 1,376 | $ | 1,615 | |
| Adjusted premiums, fees and other revenues | $ | 1,705 | $ | 1,728 | $ | 6,969 | $ | 7,346 | |
| Adjusted premiums, fees and other revenues, on a constant currency basis | $ | 1,705 | $ | 1,686 | $ | 6,969 | $ | 6,974 | |
| Latin America: | |||||||||
| Adjusted earnings available to common shareholders | $ | 207 | $ | 184 | $ | 840 | $ | 729 | |
| Less: Total notable items (2) | — | — | — | 1 | |||||
| Adjusted earnings available to common shareholders, excluding total notable items (2) | $ | 207 | $ | 184 | $ | 840 | $ | 728 | |
| Adjusted earnings available to common shareholders on a constant currency basis | $ | 207 | $ | 200 | $ | 840 | $ | 806 | |
| Adjusted earnings available to common shareholders, excluding total notable items, on a constant currency basis (2) | $ | 207 | $ | 200 | $ | 840 | $ | 805 | |
| Adjusted premiums, fees and other revenues | $ | 1,486 | $ | 1,151 | $ | 5,727 | $ | 4,438 | |
| Adjusted premiums, fees and other revenues, on a constant currency basis | $ | 1,486 | $ | 1,247 | $ | 5,727 | $ | 4,831 | |
| See footnotes on last page. |
Page 22 of 26
| MetLife, Inc. | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Adjusted Earnings Available to Common Shareholders (Continued) | |||||||||
| (In millions) | |||||||||
| For the Three Months Ended | For the Year Ended | ||||||||
| December 31, | December 31, | ||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||
| EMEA: | |||||||||
| Adjusted earnings available to common shareholders | $ | 47 | $ | 64 | $ | 265 | $ | 249 | |
| Less: Total notable items (2) | — | — | 18 | 15 | |||||
| Adjusted earnings available to common shareholders, excluding total notable items (2) | $ | 47 | $ | 64 | $ | 247 | $ | 234 | |
| Adjusted earnings available to common shareholders on a constant currency basis | $ | 47 | $ | 64 | $ | 265 | $ | 236 | |
| Adjusted earnings available to common shareholders, excluding total notable items, on a constant currency basis (2) | $ | 47 | $ | 64 | $ | 247 | $ | 221 | |
| Adjusted premiums, fees and other revenues | $ | 595 | $ | 565 | $ | 2,346 | $ | 2,281 | |
| Adjusted premiums, fees and other revenues, on a constant currency basis | $ | 595 | $ | 564 | $ | 2,346 | $ | 2,210 | |
| MetLife Holdings (6): | |||||||||
| Adjusted earnings available to common shareholders | $ | 156 | $ | 184 | $ | 733 | $ | 1,031 | |
| Less: Total notable items (2) | — | — | 2 | 26 | |||||
| Adjusted earnings available to common shareholders, excluding total notable items (2) | $ | 156 | $ | 184 | $ | 731 | $ | 1,005 | |
| Adjusted premiums, fees and other revenues | $ | 901 | $ | 1,010 | $ | 3,708 | $ | 4,123 | |
| Corporate & Other (6): | |||||||||
| Adjusted earnings available to common shareholders | $ | (232) | $ | (210) | $ | (958) | $ | (800) | |
| Less: Total notable items (2) | (76) | — | (76) | — | |||||
| Adjusted earnings available to common shareholders, excluding total notable items (2) | $ | (156) | $ | (210) | $ | (882) | $ | (800) | |
| Adjusted premiums, fees and other revenues | $ | 100 | $ | 103 | $ | 455 | $ | 382 | |
| See footnotes on last page. |
Page 23 of 26
| MetLife, Inc. | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| For the Year Ended | ||||||||||
| June 30, 2023 | September 30, 2023 | December 31, 2023 | December 31, 2023 | |||||||
| Variable investment income (post-tax, in millions) (7) | ||||||||||
| Group Benefits | — | $ | 4 | $ | 1 | $ | 1 | $ | 6 | |
| RIS | 29 | 35 | 23 | 84 | ||||||
| Asia | 84 | 37 | 10 | 106 | ||||||
| Latin America | 4 | 5 | 4 | 11 | ||||||
| EMEA | — | — | — | — | ||||||
| MetLife Holdings | 41 | 35 | 23 | 101 | ||||||
| Corporate & Other | 13 | 28 | (11) | 23 | ||||||
| Total variable investment income | (35) | $ | 175 | $ | 141 | $ | 50 | $ | 331 | |
| Segments: Group Benefits, RIS, Asia, Latin America and EMEA (8) | ||||||||||
| Capital Deployed | Value of New Business | Internal Rate of Return | Payback (Years) | |||||||
| Value of new business ( in billions) | ||||||||||
| 2022 | $ | 3.7 | $ | 2.3 | 17 | % | 6 | |||
| 2021 | $ | 2.8 | $ | 1.9 | 17 | % | 6 | |||
| 2020 | $ | 3.2 | $ | 1.9 | 17 | % | 6 | |||
| 2019 | $ | 3.8 | $ | 1.8 | 15 | % | 7 | |||
| 2018 | $ | 3.8 | $ | 2.1 | 15 | % | 7 | |||
| Average asset balances (in billions) | ||||||||||
| Private equity | $ | 14.5 | ||||||||
| Real estate and other funds | 4.4 | |||||||||
| Total average asset balances | $ | 18.9 | ||||||||
| See footnotes on last page. |
All values are in US Dollars.
Page 24 of 26
| Condensed Reconciliation of Net Cash Provided by Operating Activities of MetLife, Inc. | ||||||
|---|---|---|---|---|---|---|
| to Free Cash Flow of All Holding Companies | ||||||
| (In billions, except ratios) | ||||||
| For the Year Ended December 31, | ||||||
| 2023 | 2022 | |||||
| MetLife, Inc. (parent company only) net cash provided by operating activities | $ | 4.2 | $ | 4.4 | ||
| Adjustments from net cash provided by operating activities to free cash flow: | ||||||
| Add: Incremental debt to be at or below target leverage ratios | — | 1.0 | ||||
| Add: Adjustments from net cash provided by operating activities to free cash flow (9) | (0.7) | (0.2) | ||||
| MetLife, Inc. (parent company only) free cash flow | 3.5 | 5.2 | ||||
| Other MetLife, Inc. holding companies free cash flow (10) | 0.1 | (0.5) | ||||
| Free cash flow of all holding companies | $ | 3.6 | $ | 4.7 | ||
| Ratio of net cash provided by operating activities to consolidated net income (loss) available to MetLife, Inc.'s common shareholders: | ||||||
| MetLife, Inc. (parent company only) net cash provided by operating activities | $ | 4.2 | $ | 4.4 | ||
| Consolidated net income (loss) available to MetLife, Inc.'s common shareholders | $ | 1.4 | $ | 5.1 | ||
| Ratio of net cash provided by operating activities (parent company only) to consolidated net income (loss) available to MetLife, Inc.'s common shareholders (11) | 303 | % | 87 | % | ||
| Ratio of free cash flow to adjusted earnings available to common shareholders: | ||||||
| Free cash flow of all holding companies (12) | $ | 3.6 | $ | 4.7 | ||
| Consolidated adjusted earnings available to common shareholders (12) | $ | 5.5 | $ | 5.8 | ||
| Ratio of free cash flow of all holding companies to consolidated adjusted earnings available to common shareholders (12) | 66 | % | 81 | % | ||
| See footnotes on last page. |
Page 25 of 26
| MetLife, Inc. | |||
|---|---|---|---|
| Cash & Capital (13), (14), (15) (in billions) | |||
| Holding Companies Cash & Liquid Assets | $ | 5.2 | |
| 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) | Book values exclude 3,818 million of equity related to preferred stock at both December 31, 2023 and 2022. | ||
| (4) | There were share repurchases of approximately 0.9 billion and 3.1 billion for the three months and year ended December 31, 2023, respectively. There were share repurchases of approximately 500 million in January 2024. | ||
| (5) | Annualized using quarter-to-date results. | ||
| (6) | Results on a constant currency basis are not included as constant currency impact is not significant. | ||
| (7) | Assumes a 21% tax rate. | ||
| (8) | Excludes MetLife Holdings; Value of New Business is the present value of future profits net of the cost of capital and time value of guarantees from new sales. | ||
| (9) | Adjustments include: (i) capital contributions to subsidiaries; (ii) returns of capital from subsidiaries; (iii) repayments on and (issuances of) loans to subsidiaries, net; and (iv) investment portfolio and derivatives changes and other, net. | ||
| (10) | Components include: (i) dividends and returns of capital from subsidiaries; (ii) capital contributions to subsidiaries; (iii) repayments on and (issuances of) loans to subsidiaries, net; (iv) other expenses; (v) dividends and returns of capital to MetLife, Inc. and (vi) investment portfolio and derivatives changes and other, net. | ||
| (11) | Including the free cash flow of other MetLife, Inc. holding companies of 0.1 billion and (0.5) billion for the years ended December 31, 2023 and 2022, respectively, in the numerator of the ratio, this ratio, as adjusted, would be 311% and 77%, respectively. | ||
| (12) | i) Consolidated adjusted earnings available to common shareholders for the year ended December 31, 2023, was negatively impacted by notable items, related to litigation reserves and settlement costs of (0.1) billion, net of income tax, offset by actuarial assumption review and other insurance adjustments of 0.01 billion, net of income tax. Excluding these notable items from the denominator of the ratio, the adjusted free cash flow ratio for 2023, would be 65%.ii) Consolidated adjusted earnings available to common shareholders for the year ended December 31, 2022, was positively impacted by notable items, related to actuarial assumption review and other insurance adjustments of 0.1 billion, net of income tax. Excluding these notable items from the denominator of the ratio, the adjusted free cash flow ratio for 2022, would be 82%. | ||
| (13) | The 2023 combined U.S. risk based capital (RBC) ratio was approximately 400%, 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. | ||
| (14) | The total U.S. statutory adjusted capital is expected to be approximately 19.5 billion at December 31, 2023, up 10% from September 30, 2023. This balance includes MetLife, Inc.'s principal U.S. insurance subsidiaries, excluding American Life Insurance Company. | ||
| (15) | The expected Japan solvency margin ratio as of December 31, 2023 is approximately 720%. |
All values are in US Dollars.
Page 26 of 26
Document
Table of Contents
Exhibit 99.2
Fourth Quarter
Financial Supplement
December 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 |
| Group Benefits | |
| Statements of Adjusted Earnings Available to Common Shareholders | 10 |
| Other Expenses by Major Category; and Other Statistical Information | 11 |
| RIS | |
| Statements of Adjusted Earnings Available to Common Shareholders | 12 |
| Future Policy Benefits; Policyholder Account Balances; Separate Account Liabilities; Synthetic GICs; and Longevity Reinsurance | 13 |
| Other Expenses by Major Category; and Spread | 14 |
| ASIA | |
| Statements of Adjusted Earnings Available to Common Shareholders | 15 |
| Adjusted Premiums, Fees and Other Revenues; Other Expenses by Major Category; Sales on a Constant Currency Basis; and Other Statistical Information | 16 |
| Asia General Account Assets Under Management and Related Measures | 17 |
| LATIN AMERICA | |
| Statements of Adjusted Earnings Available to Common Shareholders | 18 |
| Other Expenses by Major Category; Sales on a Constant Currency Basis; and Other Statistical Information | 19 |
| EMEA | |
| Statements of Adjusted Earnings Available to Common Shareholders | 20 |
| Other Expenses by Major Category; and Other Statistical Information | 21 |
| METLIFE HOLDINGS | |
| Statements of Adjusted Earnings Available to Common Shareholders | 22 |
| Future Policy Benefits; Policyholder Account Balances; Market Risk Benefits; and Separate Account Liabilities | 23 |
| Other Expenses by Major Category; and Other Statistical Information | 24 |
| CORPORATE & OTHER | |
| Statements of Adjusted Earnings Available to Common Shareholders; and Adjusted Earnings Available to Common Shareholders by Source | 25 |
| INVESTMENTS | |
| Investment Portfolio Results by Asset Category and Annualized Yields | 26 |
| 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 | 27 |
| Summary of Net Mortgage Loans; and Summary of Net Commercial Mortgage Loans by Region and Property Type | 28 |
| Footnotes | 29 |
| 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 its 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 Ended | |||||||||||||||
| Unaudited (In millions) | December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | December 31, 2022 | December 31, 2023 | |||||||||
| Revenues | ||||||||||||||||
| Premiums | $ | 9,005 | $ | 9,589 | $ | 11,678 | $ | 11,230 | $ | 11,786 | $ | 48,510 | $ | 44,283 | ||
| Universal life and investment-type product policy fees | 1,266 | 1,289 | 1,288 | 1,334 | 1,241 | 5,225 | 5,152 | |||||||||
| Net investment income | 4,464 | 4,645 | 5,072 | 4,825 | 5,366 | 15,916 | 19,908 | |||||||||
| Other revenues | 627 | 639 | 621 | 606 | 660 | 2,630 | 2,526 | |||||||||
| Net investment gains (losses) | 350 | (684) | (1,039) | (927) | (174) | (1,260) | (2,824) | |||||||||
| Net derivative gains (losses) | (104) | (90) | (997) | (1,202) | 149 | (2,251) | (2,140) | |||||||||
| Total revenues | 15,608 | 15,388 | 16,623 | 15,866 | 19,028 | 68,770 | 66,905 | |||||||||
| Expenses | ||||||||||||||||
| Policyholder benefits and claims | 9,115 | 9,872 | 11,809 | 11,130 | 11,779 | 49,507 | 44,590 | |||||||||
| Policyholder liability remeasurement (gains) losses | 20 | (9) | (16) | (17) | (3) | 114 | (45) | |||||||||
| Market risk benefit remeasurement (gains) losses | (512) | 188 | (817) | (796) | 431 | (3,674) | (994) | |||||||||
| Interest credited to policyholder account balances | 1,727 | 1,864 | 1,933 | 1,658 | 2,405 | 3,894 | 7,860 | |||||||||
| Policyholder dividends | 155 | 159 | 151 | 153 | 159 | 706 | 622 | |||||||||
| Amortization of DAC and VOBA | 457 | 470 | 479 | 499 | 504 | 1,831 | 1,952 | |||||||||
| Amortization of negative VOBA | (7) | (7) | (6) | (7) | (6) | (29) | (26) | |||||||||
| Interest expense on debt | 248 | 255 | 256 | 265 | 269 | 938 | 1,045 | |||||||||
| Other expenses, net of capitalization of DAC | 2,379 | 2,339 | 2,404 | 2,447 | 2,549 | 9,119 | 9,739 | |||||||||
| Total expenses | 13,582 | 15,131 | 16,193 | 15,332 | 18,087 | 62,406 | 64,743 | |||||||||
| Income (loss) before provision for income tax | 2,026 | 257 | 430 | 534 | 941 | 6,364 | 2,162 | |||||||||
| Provision for income tax expense (benefit) | 445 | 172 | 22 | 39 | 327 | 1,062 | 560 | |||||||||
| Net income (loss) | 1,581 | 85 | 408 | 495 | 614 | 5,302 | 1,602 | |||||||||
| Less: Net income (loss) attributable to noncontrolling interests | 3 | 5 | 6 | 6 | 7 | 18 | 24 | |||||||||
| Net income (loss) attributable to MetLife, Inc. | 1,578 | 80 | 402 | 489 | 607 | 5,284 | 1,578 | |||||||||
| Less: Preferred stock dividends | 29 | 66 | 32 | 67 | 33 | 185 | 198 | |||||||||
| Net income (loss) available to MetLife, Inc.'s common shareholders | $ | 1,549 | $ | 14 | $ | 370 | $ | 422 | $ | 574 | $ | 5,099 | $ | 1,380 | ||
| Premiums, fees and other revenues | $ | 10,898 | $ | 11,517 | $ | 13,587 | $ | 13,170 | $ | 13,687 | $ | 56,365 | $ | 51,961 |
Table of Contents
| METLIFE<br>CORPORATE OVERVIEW | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| For the Three Months Ended | ||||||||||
| Unaudited (In millions, except per share data) | December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | |||||
| Net income (loss) available to MetLife, Inc.'s common shareholders | $ | 1,549 | $ | 14 | $ | 370 | $ | 422 | $ | 574 |
| Adjustments from net income (loss) available to MetLife, Inc.'s common shareholders to adjusted earnings available to common shareholders: | ||||||||||
| Less: Net investment gains (losses) | 350 | (684) | (1,039) | (927) | (174) | |||||
| Less: Net derivative gains (losses) | (104) | (90) | (997) | (1,202) | 149 | |||||
| Less: Market risk benefit remeasurement gains (losses) | 512 | (188) | 817 | 796 | (431) | |||||
| Less: Goodwill impairment | — | — | — | — | — | |||||
| Less: Other adjustments to net income (loss) (1) | (317) | (383) | (316) | (156) | (330) | |||||
| Less: Provision for income tax (expense) benefit | (149) | 180 | 419 | 429 | 6 | |||||
| Add: Net income (loss) attributable to noncontrolling interests | 3 | 5 | 6 | 6 | 7 | |||||
| Add: Preferred stock redemption premium | — | — | — | — | — | |||||
| Adjusted earnings available to common shareholders | 1,260 | 1,184 | 1,492 | 1,488 | 1,361 | |||||
| Less: Total notable items (2) | — | — | — | 14 | (76) | |||||
| Adjusted earnings available to common shareholders, excluding total notable items (2) | $ | 1,260 | $ | 1,184 | $ | 1,492 | $ | 1,474 | $ | 1,437 |
| Net income (loss) available to MetLife, Inc.'s common shareholders per diluted common share | $ | 1.96 | $ | 0.02 | $ | 0.48 | $ | 0.56 | $ | 0.77 |
| Less: Net investment gains (losses) | 0.44 | (0.88) | (1.35) | (1.23) | (0.23) | |||||
| Less: Net derivative gains (losses) | (0.13) | (0.12) | (1.30) | (1.59) | 0.20 | |||||
| Less: Market risk benefit remeasurement gains (losses) | 0.65 | (0.24) | 1.06 | 1.05 | (0.58) | |||||
| Less: Goodwill impairment | — | — | — | — | — | |||||
| Less: Other adjustments to net income (loss) | (0.40) | (0.48) | (0.40) | (0.20) | (0.45) | |||||
| Less: Provision for income tax (expense) benefit | (0.19) | 0.23 | 0.54 | 0.57 | 0.01 | |||||
| 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 | 1.59 | 1.52 | 1.94 | 1.97 | 1.83 | |||||
| Less: Total notable items per diluted common share (2) | — | — | — | 0.02 | (0.10) | |||||
| Adjusted earnings available to common shareholders, excluding total notable items, per diluted common share (2), (3) | $ | 1.59 | $ | 1.52 | $ | 1.94 | $ | 1.95 | $ | 1.93 |
| For the Three Months Ended | ||||||||||
| Unaudited (In millions, except per share data) | December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | |||||
| Notable items impacting adjusted earnings available to common shareholders (2): | ||||||||||
| Actuarial assumption review and other insurance adjustments | $ | — | $ | — | $ | — | $ | 14 | $ | — |
| Litigation reserves and settlement costs | — | — | — | — | (76) | |||||
| Total notable items | $ | — | $ | — | $ | — | $ | 14 | $ | (76) |
| Notable items impacting adjusted earnings available to common shareholders per diluted common share (2): | ||||||||||
| Actuarial assumption review and other insurance adjustments | $ | — | $ | — | $ | — | $ | 0.02 | $ | — |
| Litigation reserves and settlement costs | — | — | — | — | (0.10) | |||||
| Total notable items | $ | — | $ | — | $ | — | $ | 0.02 | $ | (0.10) |
| For the Three Months Ended | ||||||||||
| Unaudited (In millions) | December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | |||||
| Weighted average common shares outstanding - diluted | 790.2 | 781.2 | 769.6 | 755.5 | 743.4 | |||||
| (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 | December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | ||||||||||
| Book value per common share (1) | $ | 33.45 | $ | 36.89 | $ | 34.92 | $ | 29.34 | $ | 35.85 | |||||
| Book value per common share, excluding AOCI other than FCTA (1) | $ | 54.30 | $ | 53.83 | $ | 53.55 | $ | 53.00 | $ | 53.75 | |||||
| For the Three Months Ended | |||||||||||||||
| Unaudited | December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | ||||||||||
| Return on MetLife, Inc.'s (2): | |||||||||||||||
| Common stockholders' equity | 24.0 | % | 0.2 | % | 5.4 | % | 7.0 | % | 9.6 | % | |||||
| Adjusted return on MetLife, Inc.'s (2): | |||||||||||||||
| Common stockholders' equity | 19.5 | % | 17.4 | % | 21.8 | % | 24.7 | % | 22.7 | % | |||||
| Common stockholders' equity, excluding AOCI other than FCTA | 12.1 | % | 11.3 | % | 14.6 | % | 14.9 | % | 13.8 | % | |||||
| Common stockholders' equity, excluding total notable items (excludes AOCI other than FCTA) (3) | 12.1 | % | 11.3 | % | 14.6 | % | 14.7 | % | 14.6 | % | |||||
| For the Three Months Ended | |||||||||||||||
| Unaudited (In millions) | December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | ||||||||||
| Common shares outstanding, beginning of period | 787.3 | 779.1 | 769.2 | 757.2 | 744.4 | ||||||||||
| Share repurchases | (8.5) | (11.6) | (12.1) | (12.9) | (13.7) | ||||||||||
| Newly issued shares | 0.3 | 1.7 | 0.1 | 0.1 | 0.1 | ||||||||||
| Common shares outstanding, end of period | 779.1 | 769.2 | 757.2 | 744.4 | 730.8 | ||||||||||
| Weighted average common shares outstanding - basic | 784.2 | 775.4 | 765.9 | 751.4 | 738.6 | ||||||||||
| Dilutive effect of the exercise or issuance of stock-based awards | 6.0 | 5.8 | 3.7 | 4.1 | 4.8 | ||||||||||
| Weighted average common shares outstanding - diluted | 790.2 | 781.2 | 769.6 | 755.5 | 743.4 | ||||||||||
| MetLife Policyholder Trust Shares | 123.6 | 122.1 | 120.5 | 119.1 | 117.6 | ||||||||||
| (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 Ended | |||||||||||||
| Unaudited (In millions) | December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | December 31, 2022 | December 31, 2023 | |||||||
| Total revenues | $ | 15,608 | $ | 15,388 | $ | 16,623 | $ | 15,866 | $ | 19,028 | $ | 68,770 | $ | 66,905 |
| Less: Adjustments to total revenues: | ||||||||||||||
| Net investment gains (losses) | 350 | (684) | (1,039) | (927) | (174) | (1,260) | (2,824) | |||||||
| Net derivative gains (losses) | (104) | (90) | (997) | (1,202) | 149 | (2,251) | (2,140) | |||||||
| Investment hedge adjustments | (277) | (264) | (263) | (232) | (253) | (976) | (1,012) | |||||||
| Asymmetrical and non-economic accounting | — | — | — | — | 29 | — | 29 | |||||||
| Unit-linked contract income | 209 | 303 | 296 | 4 | 580 | (1,298) | 1,183 | |||||||
| Other adjustments | 27 | (3) | (8) | (14) | (21) | 150 | (46) | |||||||
| Divested businesses | — | — | — | — | — | 66 | — | |||||||
| Total adjusted revenues | $ | 15,403 | $ | 16,126 | $ | 18,634 | $ | 18,237 | $ | 18,718 | $ | 74,339 | $ | 71,715 |
| For the Three Months Ended | For the Year Ended | |||||||||||||
| Unaudited (In millions) | December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | December 31, 2022 | December 31, 2023 | |||||||
| Net investment income | $ | 4,464 | $ | 4,645 | $ | 5,072 | $ | 4,825 | $ | 5,366 | $ | 15,916 | $ | 19,908 |
| Less: Adjustments to net investment income: | ||||||||||||||
| Investment hedge adjustments | (277) | (264) | (263) | (232) | (253) | (976) | (1,012) | |||||||
| Unit-linked contract income | 209 | 303 | 296 | 4 | 580 | (1,298) | 1,183 | |||||||
| Other adjustments | 2 | — | (1) | (3) | (8) | (10) | (12) | |||||||
| Divested businesses | — | — | — | — | — | 11 | — | |||||||
| Adjusted net investment income | $ | 4,530 | $ | 4,606 | $ | 5,040 | $ | 5,056 | $ | 5,047 | $ | 18,189 | $ | 19,749 |
| For the Three Months Ended | For the Year Ended | |||||||||||||
| Unaudited (In millions) | December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | December 31, 2022 | December 31, 2023 | |||||||
| Variable investment income (Included in net investment income above) | $ | 24 | $ | (44) | $ | 221 | $ | 179 | $ | 63 | $ | 1,545 | $ | 419 |
| For the Three Months Ended | For the Year Ended | |||||||||||||
| Unaudited (In millions) | December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | December 31, 2022 | December 31, 2023 | |||||||
| Premiums, fees and other revenues | $ | 10,898 | $ | 11,517 | $ | 13,587 | $ | 13,170 | $ | 13,687 | $ | 56,365 | $ | 51,961 |
| Less: Adjustments to premiums, fees and other revenues: | ||||||||||||||
| Asymmetrical and non-economic accounting | — | — | — | — | 29 | — | 29 | |||||||
| Other adjustments | 25 | (3) | (7) | (11) | (13) | 160 | (34) | |||||||
| Divested businesses | — | — | — | — | — | 55 | — | |||||||
| Adjusted premiums, fees and other revenues | $ | 10,873 | $ | 11,520 | $ | 13,594 | $ | 13,181 | $ | 13,671 | $ | 56,150 | $ | 51,966 |
| Adjusted premiums, fees and other revenues, on a constant currency basis | $ | 10,926 | $ | 11,390 | $ | 13,466 | $ | 13,104 | $ | 13,671 |
Table of Contents
| METLIFE<br>KEY ADJUSTED EARNINGS STATEMENT LINE ITEMS (CONTINUED) | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| For the Three Months Ended | For the Year Ended | |||||||||||||
| Unaudited (In millions) | December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | December 31, 2022 | December 31, 2023 | |||||||
| Total expenses | $ | 13,582 | $ | 15,131 | $ | 16,193 | $ | 15,332 | $ | 18,087 | $ | 62,406 | $ | 64,743 |
| Less: Adjustments to total expenses: | ||||||||||||||
| Market risk benefit remeasurement (gains) losses | (512) | 188 | (817) | (796) | 431 | (3,674) | (994) | |||||||
| Goodwill impairment | — | — | — | — | — | — | — | |||||||
| Asymmetrical and non-economic accounting | 143 | 103 | 64 | (49) | 129 | 588 | 247 | |||||||
| Market volatility | (105) | (14) | (44) | (64) | (62) | (193) | (184) | |||||||
| Unit-linked contract costs | 180 | 303 | 301 | (3) | 582 | (1,322) | 1,183 | |||||||
| Other adjustments | 37 | 16 | 11 | 21 | 7 | 191 | 55 | |||||||
| Divested businesses | 21 | 11 | 9 | 9 | 9 | 97 | 38 | |||||||
| Total adjusted expenses | $ | 13,818 | $ | 14,524 | $ | 16,669 | $ | 16,214 | $ | 16,991 | $ | 66,719 | $ | 64,398 |
| For the Three Months Ended | For the Year Ended | |||||||||||||
| Unaudited (In millions) | December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | December 31, 2022 | December 31, 2023 | |||||||
| Capitalization of DAC | $ | (699) | $ | (718) | $ | (729) | $ | (742) | $ | (728) | $ | (2,614) | $ | (2,917) |
| Less: Divested businesses | — | — | — | — | — | (11) | — | |||||||
| Adjusted capitalization of DAC | $ | (699) | $ | (718) | $ | (729) | $ | (742) | $ | (728) | $ | (2,603) | $ | (2,917) |
| For the Three Months Ended | For the Year Ended | |||||||||||||
| Unaudited (In millions) | December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | December 31, 2022 | December 31, 2023 | |||||||
| Other expenses | $ | 3,078 | $ | 3,057 | $ | 3,133 | $ | 3,189 | $ | 3,277 | $ | 11,733 | $ | 12,656 |
| Less: Adjustments to other expenses: | ||||||||||||||
| Other adjustments | 37 | 16 | 11 | 21 | 7 | 191 | 55 | |||||||
| Divested businesses | 21 | 11 | 9 | 9 | 9 | 74 | 38 | |||||||
| Adjusted other expenses | $ | 3,020 | $ | 3,030 | $ | 3,113 | $ | 3,159 | $ | 3,261 | $ | 11,468 | $ | 12,563 |
| Adjusted other expenses on a constant currency basis | $ | 3,031 | $ | 2,970 | $ | 3,056 | $ | 3,128 | $ | 3,261 |
Table of Contents
| METLIFE<br>EXPENSE DETAIL AND RATIOS | |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| For the Three Months Ended | For the Year Ended | ||||||||||||||||||||
| Unaudited (In millions, except ratio data) | December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | December 31, 2022 | December 31, 2023 | ||||||||||||||
| Other expenses, net of capitalization of DAC | $ | 2,379 | $ | 2,339 | $ | 2,404 | $ | 2,447 | $ | 2,549 | $ | 9,119 | $ | 9,739 | |||||||
| Premiums, fees and other revenues | $ | 10,898 | $ | 11,517 | $ | 13,587 | $ | 13,170 | $ | 13,687 | $ | 56,365 | $ | 51,961 | |||||||
| Expense ratio | 21.8 | % | 20.3 | % | 17.7 | % | 18.6 | % | 18.6 | % | 16.2 | % | 18.7 | % | |||||||
| For the Three Months Ended | For the Year Ended | ||||||||||||||||||||
| Unaudited (In millions) | December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | December 31, 2022 | December 31, 2023 | ||||||||||||||
| Adjusted other expenses by major category | |||||||||||||||||||||
| Direct expenses | $ | 1,481 | $ | 1,387 | $ | 1,415 | $ | 1,447 | $ | 1,559 | $ | 5,490 | $ | 5,808 | |||||||
| Pension, postretirement and postemployment benefit costs | 25 | 59 | 59 | 59 | 69 | 98 | 246 | ||||||||||||||
| Premium taxes, other taxes, and licenses & fees | 146 | 161 | 184 | 162 | 153 | 606 | 660 | ||||||||||||||
| Commissions and other variable expenses | 1,368 | 1,423 | 1,455 | 1,491 | 1,480 | 5,274 | 5,849 | ||||||||||||||
| Adjusted other expenses | 3,020 | 3,030 | 3,113 | 3,159 | 3,261 | 11,468 | 12,563 | ||||||||||||||
| Adjusted capitalization of DAC | (699) | (718) | (729) | (742) | (728) | (2,603) | (2,917) | ||||||||||||||
| Adjusted other expenses, net of adjusted capitalization of DAC | $ | 2,321 | $ | 2,312 | $ | 2,384 | $ | 2,417 | $ | 2,533 | $ | 8,865 | $ | 9,646 | |||||||
| For the Three Months Ended | For the Year Ended | ||||||||||||||||||||
| Unaudited (In millions, except ratio data) | December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | December 31, 2022 | December 31, 2023 | ||||||||||||||
| Employee-related costs | $ | 864 | $ | 929 | $ | 895 | $ | 913 | $ | 882 | $ | 3,504 | $ | 3,619 | |||||||
| Third-party staffing costs | 433 | 331 | 346 | 350 | 399 | 1,528 | 1,426 | ||||||||||||||
| General and administrative expenses | 184 | 127 | 174 | 184 | 278 | 458 | 763 | ||||||||||||||
| Direct expenses | 1,481 | 1,387 | 1,415 | 1,447 | 1,559 | 5,490 | 5,808 | ||||||||||||||
| Less: Total notable items related to direct expenses (1) | — | — | — | — | 96 | — | 96 | ||||||||||||||
| Direct expenses, excluding total notable items related to direct expenses (1) | $ | 1,481 | $ | 1,387 | $ | 1,415 | $ | 1,447 | $ | 1,463 | $ | 5,490 | $ | 5,712 | |||||||
| Adjusted other expenses, net of adjusted capitalization of DAC | $ | 2,321 | $ | 2,312 | $ | 2,384 | $ | 2,417 | $ | 2,533 | $ | 8,865 | $ | 9,646 | |||||||
| Less: Total notable items related to adjusted other expenses (1) | — | — | — | — | 96 | — | 96 | ||||||||||||||
| Adjusted other expenses, net of adjusted capitalization of DAC, excluding total notable items related to adjusted other expenses (1) | $ | 2,321 | $ | 2,312 | $ | 2,384 | $ | 2,417 | $ | 2,437 | $ | 8,865 | $ | 9,550 | |||||||
| Adjusted premiums, fees and other revenues | $ | 10,873 | $ | 11,520 | $ | 13,594 | $ | 13,181 | $ | 13,671 | $ | 56,150 | $ | 51,966 | |||||||
| Less: PRT | (69) | (21) | 2,024 | 1,461 | 1,860 | 12,219 | 5,324 | ||||||||||||||
| Adjusted premiums, fees and other revenues, excluding PRT | $ | 10,942 | $ | 11,541 | $ | 11,570 | $ | 11,720 | $ | 11,811 | $ | 43,931 | $ | 46,642 | |||||||
| Direct expense ratio | 13.6 | % | 12.0 | % | 10.4 | % | 11.0 | % | 11.4 | % | 9.8 | % | 11.2 | % | |||||||
| Direct expense ratio, excluding total notable items related to direct expenses and PRT (1) | 13.5 | % | 12.0 | % | 12.2 | % | 12.3 | % | 12.4 | % | 12.5 | % | 12.2 | % | |||||||
| Adjusted expense ratio | 21.3 | % | 20.1 | % | 17.5 | % | 18.3 | % | 18.5 | % | 15.8 | % | 18.6 | % | |||||||
| Adjusted expense ratio, excluding total notable items related to adjusted other expenses and PRT (1) | 21.2 | % | 20.0 | % | 20.6 | % | 20.6 | % | 20.6 | % | 20.2 | % | 20.5 | % | |||||||
| (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) | December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | |||||
| ASSETS | ||||||||||
| Investments: | ||||||||||
| Fixed maturity securities available-for-sale, at estimated fair value | $ | 276,780 | $ | 283,854 | $ | 283,857 | $ | 270,982 | $ | 281,412 |
| Equity securities, at estimated fair value | 1,684 | 1,695 | 769 | 742 | 757 | |||||
| Contractholder-directed equity securities and fair value option securities, at estimated fair value | 9,668 | 10,063 | 10,204 | 9,680 | 10,331 | |||||
| Mortgage loans | 83,763 | 85,572 | 92,986 | 92,230 | 92,506 | |||||
| Policy loans | 8,874 | 8,863 | 8,788 | 8,725 | 8,788 | |||||
| Real estate and real estate joint ventures | 13,137 | 13,155 | 13,045 | 13,133 | 13,332 | |||||
| Other limited partnership interests | 14,414 | 14,437 | 14,722 | 14,918 | 14,764 | |||||
| Short-term investments, principally at estimated fair value | 4,935 | 4,184 | 6,921 | 6,497 | 6,045 | |||||
| Other invested assets | 20,038 | 19,479 | 19,656 | 18,755 | 18,202 | |||||
| Total investments | 433,293 | 441,302 | 450,948 | 435,662 | 446,137 | |||||
| Cash and cash equivalents, principally at estimated fair value | 20,195 | 18,456 | 15,417 | 14,912 | 20,639 | |||||
| Accrued investment income | 3,446 | 3,554 | 3,505 | 3,704 | 3,589 | |||||
| Premiums, reinsurance and other receivables | 17,364 | 18,692 | 18,530 | 19,002 | 28,971 | |||||
| Market risk benefits, at estimated fair value | 280 | 227 | 279 | 334 | 286 | |||||
| Deferred policy acquisition costs and value of business acquired | 19,653 | 19,976 | 19,850 | 19,737 | 20,151 | |||||
| Current income tax recoverable | 42 | — | 189 | — | 190 | |||||
| Deferred income tax assets | 2,439 | 2,257 | 2,377 | 3,174 | 2,612 | |||||
| Goodwill | 9,297 | 9,379 | 9,261 | 9,109 | 9,236 | |||||
| Other assets | 11,025 | 12,006 | 10,977 | 10,862 | 11,139 | |||||
| Separate account assets | 146,038 | 148,417 | 145,946 | 135,624 | 144,634 | |||||
| Total assets | $ | 663,072 | $ | 674,266 | $ | 677,279 | $ | 652,120 | $ | 687,584 |
| LIABILITIES AND EQUITY | ||||||||||
| Liabilities | ||||||||||
| Future policy benefits | $ | 187,222 | $ | 191,741 | $ | 190,474 | $ | 181,755 | $ | 196,406 |
| Policyholder account balances | 210,597 | 212,569 | 214,413 | 213,933 | 219,269 | |||||
| Market risk benefits, at estimated fair value | 3,763 | 3,869 | 3,259 | 2,738 | 3,179 | |||||
| Other policy-related balances | 18,424 | 19,598 | 19,642 | 19,665 | 19,736 | |||||
| Policyholder dividends payable | 387 | 356 | 366 | 381 | 386 | |||||
| Payables for collateral under securities loaned and other transactions | 20,937 | 19,863 | 18,806 | 17,797 | 17,524 | |||||
| Short-term debt | 175 | 168 | 200 | 161 | 119 | |||||
| Long-term debt | 14,647 | 14,622 | 14,539 | 15,475 | 15,548 | |||||
| Collateral financing arrangement | 716 | 704 | 675 | 651 | 637 | |||||
| Junior subordinated debt securities | 3,158 | 3,159 | 3,160 | 3,160 | 3,161 | |||||
| Current income tax payable | — | 554 | — | 59 | — | |||||
| Deferred income tax liability | 950 | 1,111 | 752 | 128 | 927 | |||||
| Other liabilities | 25,933 | 25,112 | 34,555 | 34,698 | 35,805 | |||||
| Separate account liabilities | 146,038 | 148,417 | 145,946 | 135,624 | 144,634 | |||||
| Total liabilities | 632,947 | 641,843 | 646,787 | 626,225 | 657,331 | |||||
| Equity | ||||||||||
| Preferred stock, at par value | — | — | — | — | — | |||||
| Common stock, at par value | 12 | 12 | 12 | 12 | 12 | |||||
| Additional paid-in capital | 33,616 | 33,617 | 33,630 | 33,666 | 33,690 | |||||
| Retained earnings | 40,332 | 39,957 | 39,928 | 39,958 | 40,146 | |||||
| Treasury stock, at cost | (21,458) | (22,245) | (22,923) | (23,724) | (24,591) | |||||
| Accumulated other comprehensive income (loss) | (22,621) | (19,147) | (20,386) | (24,254) | (19,242) | |||||
| Total MetLife, Inc.'s stockholders' equity | 29,881 | 32,194 | 30,261 | 25,658 | 30,015 | |||||
| Noncontrolling interests | 244 | 229 | 231 | 237 | 238 | |||||
| Total equity | 30,125 | 32,423 | 30,492 | 25,895 | 30,253 | |||||
| Total liabilities and equity | $ | 663,072 | $ | 674,266 | $ | 677,279 | $ | 652,120 | $ | 687,584 |
Table of Contents
| METLIFESUMMARY OF ADJUSTED EARNINGS AVAILABLE TO COMMON SHAREHOLDERS (1) | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Unaudited (In millions) | December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | |||||
| Adjusted earnings before provision for income tax | ||||||||||
| GROUP BENEFITS | $ | 495 | $ | 391 | $ | 471 | $ | 645 | $ | 590 |
| RIS | 477 | 505 | 527 | 594 | 532 | |||||
| ASIA | 369 | 405 | 611 | 405 | 419 | |||||
| LATIN AMERICA | 233 | 303 | 281 | 282 | 271 | |||||
| EMEA | 72 | 76 | 92 | 112 | 63 | |||||
| METLIFE HOLDINGS | 228 | 195 | 262 | 259 | 193 | |||||
| CORPORATE & OTHER | (289) | (273) | (279) | (274) | (341) | |||||
| Total adjusted earnings before provision for income tax | $ | 1,585 | $ | 1,602 | $ | 1,965 | $ | 2,023 | $ | 1,727 |
| Provision for income tax expense (benefit) | ||||||||||
| GROUP BENEFITS | $ | 103 | $ | 84 | $ | 99 | $ | 135 | $ | 124 |
| RIS | 96 | 105 | 110 | 124 | 111 | |||||
| ASIA | 104 | 125 | 180 | 130 | 123 | |||||
| LATIN AMERICA | 49 | 88 | 62 | 83 | 64 | |||||
| EMEA | 8 | 16 | 22 | 24 | 16 | |||||
| METLIFE HOLDINGS | 44 | 37 | 51 | 51 | 37 | |||||
| CORPORATE & OTHER | (108) | (103) | (83) | (79) | (142) | |||||
| Total provision for income tax expense (benefit) | $ | 296 | $ | 352 | $ | 441 | $ | 468 | $ | 333 |
| Adjusted earnings available to common shareholders | ||||||||||
| GROUP BENEFITS | $ | 392 | $ | 307 | $ | 372 | $ | 510 | $ | 466 |
| RIS | 381 | 400 | 417 | 470 | 421 | |||||
| ASIA | 265 | 280 | 431 | 275 | 296 | |||||
| LATIN AMERICA | 184 | 215 | 219 | 199 | 207 | |||||
| EMEA | 64 | 60 | 70 | 88 | 47 | |||||
| METLIFE HOLDINGS | 184 | 158 | 211 | 208 | 156 | |||||
| CORPORATE & OTHER (2) | (210) | (236) | (228) | (262) | (232) | |||||
| Total adjusted earnings available to common shareholders (2) | $ | 1,260 | $ | 1,184 | $ | 1,492 | $ | 1,488 | $ | 1,361 |
| (1)In the fourth quarter of 2023, MetLife reorganized from five segments into the following six segments to reflect changes in management's responsibilities: Group Benefits, RIS, Asia, Latin America, EMEA and MetLife Holdings. The Group Benefits and RIS businesses were previously reported as the U.S. segment. These changes were applied retrospectively and did not have an impact on prior period total consolidated net income (loss) or adjusted earnings. | ||||||||||
| (2)Includes impact of preferred stock dividends of 29 million, 66 million, 32 million, 67 million and 33 million for the three months ended December 31, 2022, March 31, 2023, June 30, 2023, September 30, 2023 and December 31, 2023, respectively. |
All values are in US Dollars.
Table of Contents
| GROUP BENEFITS<br>STATEMENTS OF ADJUSTED EARNINGS AVAILABLE TO COMMON SHAREHOLDERS | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| For the Three Months Ended | For the Year Ended | ||||||||||||||
| Unaudited (In millions) | December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | December 31, 2022 | December 31, 2023 | ||||||||
| Adjusted revenues | |||||||||||||||
| Premiums | $ | 5,247 | $ | 5,451 | $ | 5,427 | $ | 5,276 | $ | 5,404 | $ | 21,051 | $ | 21,558 | |
| Universal life and investment-type product policy fees | 214 | 218 | 223 | 219 | 218 | 855 | 878 | ||||||||
| Net investment income | 299 | 310 | 327 | 330 | 334 | 1,136 | 1,301 | ||||||||
| Other revenues | 338 | 380 | 363 | 371 | 379 | 1,360 | 1,493 | ||||||||
| Total adjusted revenues | 6,098 | 6,359 | 6,340 | 6,196 | 6,335 | 24,402 | 25,230 | ||||||||
| Adjusted expenses | |||||||||||||||
| Policyholder benefits and claims and policyholder dividends | 4,645 | 4,994 | 4,866 | 4,592 | 4,712 | 19,076 | 19,164 | ||||||||
| Policyholder liability remeasurement (gains) losses | 2 | (4) | 2 | (29) | 3 | 7 | (28) | ||||||||
| Interest credited to policyholder account balances | 46 | 46 | 48 | 50 | 49 | 143 | 193 | ||||||||
| Capitalization of DAC | (4) | (6) | (5) | (5) | (4) | (18) | (20) | ||||||||
| Amortization of DAC and VOBA | 6 | 6 | 7 | 6 | 7 | 26 | 26 | ||||||||
| Amortization of negative VOBA | — | — | — | — | — | — | — | ||||||||
| Interest expense on debt | — | — | 1 | — | 1 | 1 | 2 | ||||||||
| Other expenses | 908 | 932 | 950 | 937 | 977 | 3,478 | 3,796 | ||||||||
| Total adjusted expenses | 5,603 | 5,968 | 5,869 | 5,551 | 5,745 | 22,713 | 23,133 | ||||||||
| Adjusted earnings before provision for income tax | 495 | 391 | 471 | 645 | 590 | 1,689 | 2,097 | ||||||||
| Provision for income tax expense (benefit) | 103 | 84 | 99 | 135 | 124 | 357 | 442 | ||||||||
| Adjusted earnings | 392 | 307 | 372 | 510 | 466 | 1,332 | 1,655 | ||||||||
| Preferred stock dividends | — | — | — | — | — | — | — | ||||||||
| Adjusted earnings available to common shareholders | $ | 392 | $ | 307 | $ | 372 | $ | 510 | $ | 466 | $ | 1,332 | $ | 1,655 | |
| Adjusted premiums, fees and other revenues | $ | 5,799 | $ | 6,049 | $ | 6,013 | $ | 5,866 | $ | 6,001 | $ | 23,266 | $ | 23,929 |
Table of Contents
| GROUP BENEFITS | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| OTHER EXPENSES BY MAJOR CATEGORY | |||||||||||||||
| For the Three Months Ended | |||||||||||||||
| Unaudited (In millions) | December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | ||||||||||
| Direct and allocated expenses | $ | 475 | $ | 474 | $ | 468 | $ | 464 | $ | 490 | |||||
| Pension, postretirement and postemployment benefit costs | (1) | 13 | 13 | 12 | 12 | ||||||||||
| Premium taxes, other taxes, and licenses & fees | 80 | 80 | 101 | 83 | 79 | ||||||||||
| Commissions and other variable expenses | 354 | 365 | 368 | 378 | 396 | ||||||||||
| Adjusted other expenses | $ | 908 | $ | 932 | $ | 950 | $ | 937 | $ | 977 | |||||
| OTHER STATISTICAL INFORMATION (1) | |||||||||||||||
| For the Three Months Ended | |||||||||||||||
| Unaudited (In millions, except ratios) | December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | ||||||||||
| Group Life (2) | |||||||||||||||
| Adjusted premiums, fees and other revenues | $ | 2,131 | $ | 2,232 | $ | 2,254 | $ | 2,215 | $ | 2,199 | |||||
| Mortality ratio | 87.3 | % | 90.5 | % | 85.3 | % | 83.6 | % | 83.5 | % | |||||
| Group Non-Medical Health (3) | |||||||||||||||
| Adjusted premiums, fees and other revenues | $ | 2,533 | $ | 2,601 | $ | 2,617 | $ | 2,620 | $ | 2,689 | |||||
| Interest adjusted benefit ratio (4) | 70.1 | % | 72.9 | % | 73.7 | % | 69.0 | % | 70.7 | % | |||||
| (1) Results are derived from insurance and non-administrative services-only contracts. | |||||||||||||||
| (2) Excludes certain experience-rated contracts and includes accidental death and dismemberment. | |||||||||||||||
| (3) Primarily includes dental, group and individual disability, accident & health, critical illness and vision. | |||||||||||||||
| (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
| RIS<br>STATEMENTS OF ADJUSTED EARNINGS AVAILABLE TO COMMON SHAREHOLDERS | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| For the Three Months Ended | For the Year Ended | ||||||||||||||
| Unaudited (In millions) | December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | December 31, 2022 | December 31, 2023 | ||||||||
| Adjusted revenues | |||||||||||||||
| Premiums | $ | 370 | $ | 501 | $ | 2,681 | $ | 2,330 | $ | 2,736 | $ | 13,619 | $ | 8,248 | |
| Universal life and investment-type product policy fees | 77 | 79 | 71 | 82 | 81 | 303 | 313 | ||||||||
| Net investment income | 1,741 | 1,814 | 1,948 | 2,009 | 2,032 | 6,204 | 7,803 | ||||||||
| Other revenues | 70 | 68 | 71 | 66 | 66 | 392 | 271 | ||||||||
| Total adjusted revenues | 2,258 | 2,462 | 4,771 | 4,487 | 4,915 | 20,518 | 16,635 | ||||||||
| Adjusted expenses | |||||||||||||||
| Policyholder benefits and claims and policyholder dividends | 1,084 | 1,225 | 3,441 | 3,100 | 3,503 | 16,163 | 11,269 | ||||||||
| Policyholder liability remeasurement (gains) losses | (10) | (29) | (11) | (76) | (15) | (36) | (131) | ||||||||
| Interest credited to policyholder account balances | 604 | 646 | 702 | 756 | 783 | 1,914 | 2,887 | ||||||||
| Capitalization of DAC | (34) | (45) | (50) | (41) | (40) | (113) | (176) | ||||||||
| Amortization of DAC and VOBA | 11 | 11 | 12 | 13 | 13 | 40 | 49 | ||||||||
| Amortization of negative VOBA | — | — | — | — | — | — | — | ||||||||
| Interest expense on debt | 3 | 3 | 4 | 3 | 4 | 8 | 14 | ||||||||
| Other expenses | 123 | 146 | 146 | 138 | 135 | 484 | 565 | ||||||||
| Total adjusted expenses | 1,781 | 1,957 | 4,244 | 3,893 | 4,383 | 18,460 | 14,477 | ||||||||
| Adjusted earnings before provision for income tax | 477 | 505 | 527 | 594 | 532 | 2,058 | 2,158 | ||||||||
| Provision for income tax expense (benefit) | 96 | 105 | 110 | 124 | 111 | 423 | 450 | ||||||||
| Adjusted earnings | 381 | 400 | 417 | 470 | 421 | 1,635 | 1,708 | ||||||||
| Preferred stock dividends | — | — | — | — | — | — | — | ||||||||
| Adjusted earnings available to common shareholders | $ | 381 | $ | 400 | $ | 417 | $ | 470 | $ | 421 | $ | 1,635 | $ | 1,708 | |
| Adjusted premiums, fees and other revenues | $ | 517 | $ | 648 | $ | 2,823 | $ | 2,478 | $ | 2,883 | $ | 14,314 | $ | 8,832 | |
| Less: PRT | (69) | (21) | 2,024 | 1,461 | 1,860 | 12,219 | 5,324 | ||||||||
| Adjusted premiums, fees and other revenues, excluding PRT | $ | 586 | $ | 669 | $ | 799 | $ | 1,017 | $ | 1,023 | $ | 2,095 | $ | 3,508 |
Table of Contents
| RIS | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| FUTURE POLICY BENEFITS (1) | |||||||||
| Unaudited (In millions) | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | |||||
| Balance, end of period (at balance sheet discount rate) (2) | 62,737 | $ | 63,671 | $ | 64,446 | $ | 61,947 | $ | 69,407 |
| Less: Accumulated other comprehensive (income) loss | (1,302) | (2,135) | (5,598) | (278) | |||||
| Balance, end of period (at original discount rate) | 65,593 | $ | 64,973 | $ | 66,581 | $ | 67,545 | $ | 69,685 |
| POLICYHOLDER ACCOUNT BALANCES | |||||||||
| Unaudited (In millions) | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | |||||
| Balance, end of period | 80,066 | $ | 79,973 | $ | 81,249 | $ | 80,929 | $ | 82,405 |
| SEPARATE ACCOUNT LIABILITIES | |||||||||
| Unaudited (In millions) | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | |||||
| Balance, end of period | 60,040 | $ | 57,990 | $ | 54,501 | $ | 51,740 | $ | 53,093 |
| SYNTHETIC GICS (3), (4) | |||||||||
| Unaudited (In millions) | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | |||||
| Balance, end of period | 46,316 | $ | 47,850 | $ | 50,453 | $ | 49,003 | $ | 49,066 |
| LONGEVITY REINSURANCE (5) | |||||||||
| Unaudited (In millions) | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | |||||
| Balance, end of period | 16,602 | $ | 17,085 | $ | 19,401 | $ | 19,175 | $ | 21,945 |
| (1)Includes 3,392 million, 3,449 million, 3,481 million, 3,731 million and 3,782 million of DPL at December 31, 2022, March 31, 2023, June 30, 2023, September 30, 2023 and December 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 147 million, 2,262 million, 3,112 million, 0 and 1,282 million of transfers from separate account GICs to synthetic GICs at December 31, 2022, March 31, 2023, June 30, 2023, September 30, 2023 and December 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
| RIS | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| OTHER EXPENSES BY MAJOR CATEGORY | |||||||||||||||
| For the Three Months Ended | |||||||||||||||
| Unaudited (In millions) | December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | ||||||||||
| Direct and allocated expenses | $ | 70 | $ | 71 | $ | 67 | $ | 66 | $ | 71 | |||||
| Pension, postretirement and postemployment benefit costs | — | 3 | 3 | 4 | 3 | ||||||||||
| Premium taxes, other taxes, and licenses & fees | 10 | 9 | 12 | 9 | 1 | ||||||||||
| Commissions and other variable expenses | 43 | 63 | 64 | 59 | 60 | ||||||||||
| Adjusted other expenses | $ | 123 | $ | 146 | $ | 146 | $ | 138 | $ | 135 | |||||
| SPREAD | |||||||||||||||
| For the Three Months Ended | |||||||||||||||
| Unaudited | December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | ||||||||||
| Investment income yield excluding variable investment income yield | 4.69 | % | 4.98 | % | 5.18 | % | 5.28 | % | 5.32 | % | |||||
| Variable investment income yield | 0.50 | % | (0.27) | % | 2.57 | % | 3.08 | % | 1.96 | % | |||||
| Total investment income yield | 4.53 | % | 4.78 | % | 5.08 | % | 5.20 | % | 5.19 | % | |||||
| Average crediting rate | 3.65 | % | 3.82 | % | 3.97 | % | 4.12 | % | 4.20 | % | |||||
| Amortization of DPL and losses at inception (1) | (0.20) | % | (0.21) | % | (0.21) | % | (0.22) | % | (0.22) | % | |||||
| Total average crediting rate | 3.45 | % | 3.61 | % | 3.76 | % | 3.90 | % | 3.98 | % | |||||
| Annualized general account spread | 1.08 | % | 1.17 | % | 1.32 | % | 1.30 | % | 1.21 | % | |||||
| Annualized general account spread excluding variable investment income yield | 1.24 | % | 1.37 | % | 1.42 | % | 1.38 | % | 1.34 | % | |||||
| (1)Includes the amortization of DPL of (0.20)%, (0.22)%, (0.21)%, (0.23)% and (0.23)% for the three months ended December 31, 2022, March 31, 2023, June 30, 2023. September 30, 2023 and December 31, 2023, respectively. |
Table of Contents
| ASIA<br>STATEMENTS OF ADJUSTED EARNINGS AVAILABLE TO COMMON SHAREHOLDERS | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| For the Three Months Ended | For the Year Ended | ||||||||||||||
| Unaudited (In millions) | December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | December 31, 2022 | December 31, 2023 | ||||||||
| Adjusted revenues | |||||||||||||||
| Premiums | $ | 1,272 | $ | 1,377 | $ | 1,310 | $ | 1,312 | $ | 1,252 | $ | 5,563 | $ | 5,251 | |
| Universal life and investment-type product policy fees | 432 | 397 | 396 | 411 | 428 | 1,693 | 1,632 | ||||||||
| Net investment income | 828 | 881 | 1,050 | 1,023 | 1,003 | 3,909 | 3,957 | ||||||||
| Other revenues | 24 | 20 | 21 | 20 | 25 | 90 | 86 | ||||||||
| Total adjusted revenues | 2,556 | 2,675 | 2,777 | 2,766 | 2,708 | 11,255 | 10,926 | ||||||||
| Adjusted expenses | |||||||||||||||
| Policyholder benefits and claims and policyholder dividends | 1,051 | 1,130 | 1,057 | 1,095 | 1,051 | 4,564 | 4,333 | ||||||||
| Policyholder liability remeasurement (gains) losses | 42 | 11 | (27) | 108 | 13 | 69 | 105 | ||||||||
| Interest credited to policyholder account balances | 515 | 536 | 570 | 576 | 619 | 2,003 | 2,301 | ||||||||
| Capitalization of DAC | (410) | (401) | (397) | (404) | (381) | (1,530) | (1,583) | ||||||||
| Amortization of DAC and VOBA | 191 | 193 | 190 | 204 | 207 | 745 | 794 | ||||||||
| Amortization of negative VOBA | (6) | (6) | (5) | (6) | (5) | (24) | (22) | ||||||||
| Interest expense on debt | — | — | — | — | — | — | — | ||||||||
| Other expenses | 804 | 807 | 778 | 788 | 785 | 3,153 | 3,158 | ||||||||
| Total adjusted expenses | 2,187 | 2,270 | 2,166 | 2,361 | 2,289 | 8,980 | 9,086 | ||||||||
| Adjusted earnings before provision for income tax | 369 | 405 | 611 | 405 | 419 | 2,275 | 1,840 | ||||||||
| Provision for income tax expense (benefit) | 104 | 125 | 180 | 130 | 123 | 658 | 558 | ||||||||
| Adjusted earnings | 265 | 280 | 431 | 275 | 296 | 1,617 | 1,282 | ||||||||
| Preferred stock dividends | — | — | — | — | — | — | — | ||||||||
| Adjusted earnings available to common shareholders | $ | 265 | $ | 280 | $ | 431 | $ | 275 | $ | 296 | $ | 1,617 | $ | 1,282 | |
| Adjusted premiums, fees and other revenues | $ | 1,728 | $ | 1,794 | $ | 1,727 | $ | 1,743 | $ | 1,705 | $ | 7,346 | $ | 6,969 |
Table of Contents
| ASIA | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| ADJUSTED PREMIUMS, FEES AND OTHER REVENUES | ||||||||||
| For the Three Months Ended | ||||||||||
| Unaudited (In millions) | December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | |||||
| Adjusted premiums, fees and other revenues | $ | 1,728 | $ | 1,794 | $ | 1,727 | $ | 1,743 | $ | 1,705 |
| Adjusted premiums, fees and other revenues, on a constant currency basis | $ | 1,686 | $ | 1,666 | $ | 1,650 | $ | 1,718 | $ | 1,705 |
| Add: Operating joint ventures, on a constant currency basis (1) | 364 | 478 | 410 | 425 | 366 | |||||
| Adjusted premiums, fees and other revenues, including operating joint ventures, on a constant currency basis | $ | 2,050 | $ | 2,144 | $ | 2,060 | $ | 2,143 | $ | 2,071 |
| OTHER EXPENSES BY MAJOR CATEGORY | ||||||||||
| For the Three Months Ended | ||||||||||
| Unaudited (In millions) | December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | |||||
| Direct and allocated expenses | $ | 300 | $ | 303 | $ | 285 | $ | 284 | $ | 300 |
| Pension, postretirement and postemployment benefit costs | 23 | 17 | 15 | 16 | 20 | |||||
| Premium taxes, other taxes, and licenses & fees | 37 | 33 | 32 | 33 | 34 | |||||
| Commissions and other variable expenses | 444 | 454 | 446 | 455 | 431 | |||||
| Adjusted other expenses | $ | 804 | $ | 807 | $ | 778 | $ | 788 | $ | 785 |
| Adjusted other expenses, net of adjusted capitalization of DAC | $ | 394 | $ | 406 | $ | 381 | $ | 384 | $ | 404 |
| Adjusted other expenses on a constant currency basis | $ | 780 | $ | 745 | $ | 740 | $ | 775 | $ | 785 |
| Add: Operating joint ventures, on a constant currency basis (2) | 107 | 124 | 116 | 113 | 97 | |||||
| Adjusted other expenses, including operating joint ventures, on a constant currency basis | $ | 887 | $ | 869 | $ | 856 | $ | 888 | $ | 882 |
| Adjusted other expenses, including operating joint ventures, net of adjusted capitalization of DAC, on a constant currency basis | $ | 468 | $ | 469 | $ | 447 | $ | 467 | $ | 483 |
| SALES ON A CONSTANT CURRENCY BASIS | ||||||||||
| For the Three Months Ended | ||||||||||
| Unaudited (In millions) | December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | |||||
| Japan: | ||||||||||
| Life | $ | 99 | $ | 82 | $ | 199 | $ | 177 | $ | 194 |
| Accident & Health | 58 | 62 | 59 | 52 | 60 | |||||
| Annuities | 267 | 263 | 173 | 146 | 178 | |||||
| Other | 2 | 2 | 2 | 2 | 1 | |||||
| Total Japan | 426 | 409 | 433 | 377 | 433 | |||||
| Other Asia | 188 | 226 | 181 | 223 | 178 | |||||
| Total sales | $ | 614 | $ | 635 | $ | 614 | $ | 600 | $ | 611 |
| OTHER STATISTICAL INFORMATION | ||||||||||
| For the Three Months Ended | ||||||||||
| Unaudited (In millions) | December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | |||||
| Adjusted earnings available to common shareholders | $ | 265 | $ | 280 | $ | 431 | $ | 275 | $ | 296 |
| Adjusted earnings available to common shareholders, on a constant currency basis | $ | 267 | $ | 270 | $ | 423 | $ | 271 | $ | 296 |
| (1)Includes MetLife, Inc.'s share of adjusted premiums, fees and other revenues for operating joint ventures in: (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 in: (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) | December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | |||||
| GA AUM | $ | 116,289 | $ | 121,072 | $ | 118,188 | $ | 113,105 | $ | 123,434 |
| GA AUM (at amortized cost) | $ | 126,335 | $ | 127,120 | $ | 125,266 | $ | 124,684 | $ | 130,093 |
| GA AUM (at amortized cost), on a constant currency basis | $ | 123,122 | $ | 124,733 | $ | 126,594 | $ | 127,749 | $ | 130,093 |
| Add: Operating joint ventures, on a constant currency basis (1) | 7,557 | 7,968 | 8,269 | 8,457 | 8,104 | |||||
| GA AUM (at amortized cost), including operating joint ventures, on a constant currency basis | $ | 130,679 | $ | 132,701 | $ | 134,863 | $ | 136,206 | $ | 138,197 |
| (1)Includes MetLife, Inc.'s share of GA AUM for operating joint ventures in: (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 Ended | ||||||||||||||
| Unaudited (In millions) | December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | December 31, 2022 | December 31, 2023 | ||||||||
| Adjusted revenues | |||||||||||||||
| Premiums | $ | 842 | $ | 1,025 | $ | 1,023 | $ | 1,116 | $ | 1,123 | $ | 3,224 | $ | 4,287 | |
| Universal life and investment-type product policy fees | 299 | 335 | 352 | 359 | 352 | 1,175 | 1,398 | ||||||||
| Net investment income | 413 | 379 | 418 | 365 | 482 | 1,593 | 1,644 | ||||||||
| Other revenues | 10 | 12 | 10 | 9 | 11 | 39 | 42 | ||||||||
| Total adjusted revenues | 1,564 | 1,751 | 1,803 | 1,849 | 1,968 | 6,031 | 7,371 | ||||||||
| Adjusted expenses | |||||||||||||||
| Policyholder benefits and claims and policyholder dividends | 856 | 966 | 976 | 1,020 | 1,132 | 3,320 | 4,094 | ||||||||
| Policyholder liability remeasurement (gains) losses | (16) | (4) | 3 | (4) | (20) | (21) | (25) | ||||||||
| Interest credited to policyholder account balances | 94 | 99 | 105 | 106 | 116 | 335 | 426 | ||||||||
| Capitalization of DAC | (137) | (151) | (148) | (171) | (181) | (494) | (651) | ||||||||
| Amortization of DAC and VOBA | 105 | 106 | 117 | 121 | 124 | 410 | 468 | ||||||||
| Amortization of negative VOBA | — | — | — | — | — | — | — | ||||||||
| Interest expense on debt | 2 | 2 | 4 | 2 | 3 | 12 | 11 | ||||||||
| Other expenses | 427 | 430 | 465 | 493 | 523 | 1,520 | 1,911 | ||||||||
| Total adjusted expenses | 1,331 | 1,448 | 1,522 | 1,567 | 1,697 | 5,082 | 6,234 | ||||||||
| Adjusted earnings before provision for income tax | 233 | 303 | 281 | 282 | 271 | 949 | 1,137 | ||||||||
| Provision for income tax expense (benefit) | 49 | 88 | 62 | 83 | 64 | 220 | 297 | ||||||||
| Adjusted earnings | 184 | 215 | 219 | 199 | 207 | 729 | 840 | ||||||||
| Preferred stock dividends | — | — | — | — | — | — | — | ||||||||
| Adjusted earnings available to common shareholders | $ | 184 | $ | 215 | $ | 219 | $ | 199 | $ | 207 | $ | 729 | $ | 840 | |
| Adjusted premiums, fees and other revenues | $ | 1,151 | $ | 1,372 | $ | 1,385 | $ | 1,484 | $ | 1,486 | $ | 4,438 | $ | 5,727 |
Table of Contents
| LATIN AMERICA | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| OTHER EXPENSES BY MAJOR CATEGORY | ||||||||||
| For the Three Months Ended | ||||||||||
| Unaudited (In millions) | December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | |||||
| Direct and allocated expenses | $ | 140 | $ | 133 | $ | 143 | $ | 148 | $ | 154 |
| Pension, postretirement and postemployment benefit costs | 1 | 1 | 1 | 1 | 1 | |||||
| Premium taxes, other taxes, and licenses & fees | 13 | 21 | 20 | 19 | 29 | |||||
| Commissions and other variable expenses | 273 | 275 | 301 | 325 | 339 | |||||
| Adjusted other expenses | $ | 427 | $ | 430 | $ | 465 | $ | 493 | $ | 523 |
| Adjusted other expenses, net of adjusted capitalization of DAC | $ | 290 | $ | 279 | $ | 317 | $ | 322 | $ | 342 |
| Adjusted other expenses on a constant currency basis | $ | 462 | $ | 440 | $ | 457 | $ | 479 | $ | 523 |
| Adjusted other expenses, net of adjusted capitalization of DAC, on a constant currency basis | $ | 312 | $ | 284 | $ | 311 | $ | 313 | $ | 342 |
| SALES ON A CONSTANT CURRENCY BASIS | ||||||||||
| For the Three Months Ended | ||||||||||
| Unaudited (In millions) | December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | |||||
| Mexico | $ | 147 | $ | 216 | $ | 154 | $ | 193 | 161 | |
| Chile | 86 | 92 | 91 | 95 | 99 | |||||
| All other | 88 | 100 | 83 | 79 | 84 | |||||
| Total sales | $ | 321 | $ | 408 | $ | 328 | $ | 367 | $ | 344 |
| OTHER STATISTICAL INFORMATION | ||||||||||
| For the Three Months Ended | ||||||||||
| Unaudited (In millions) | December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | |||||
| Adjusted premiums, fees and other revenues | $ | 1,151 | $ | 1,372 | $ | 1,385 | $ | 1,484 | $ | 1,486 |
| Adjusted earnings available to common shareholders | $ | 184 | $ | 215 | $ | 219 | $ | 199 | $ | 207 |
| Adjusted premiums, fees and other revenues, on a constant currency basis | $ | 1,247 | $ | 1,381 | $ | 1,349 | $ | 1,439 | $ | 1,486 |
| Adjusted earnings available to common shareholders, on a constant currency basis | $ | 200 | $ | 219 | $ | 211 | $ | 192 | $ | 207 |
Table of Contents
| EMEA<br>STATEMENTS OF ADJUSTED EARNINGS AVAILABLE TO COMMON SHAREHOLDERS | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| For the Three Months Ended | For the Year Ended | ||||||||||||||
| Unaudited (In millions) | December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | December 31, 2022 | December 31, 2023 | ||||||||
| Adjusted revenues | |||||||||||||||
| Premiums | $ | 488 | $ | 496 | $ | 499 | $ | 502 | $ | 519 | $ | 1,962 | $ | 2,016 | |
| Universal life and investment-type product policy fees | 67 | 77 | 75 | 79 | 67 | 284 | 298 | ||||||||
| Net investment income | 41 | 45 | 47 | 51 | 54 | 160 | 197 | ||||||||
| Other revenues | 10 | 8 | 8 | 7 | 9 | 35 | 32 | ||||||||
| Total adjusted revenues | 606 | 626 | 629 | 639 | 649 | 2,441 | 2,543 | ||||||||
| Adjusted expenses | |||||||||||||||
| Policyholder benefits and claims and policyholder dividends | 239 | 261 | 237 | 230 | 256 | 976 | 984 | ||||||||
| Policyholder liability remeasurement (gains) losses | (5) | (3) | 2 | (9) | 7 | (6) | (3) | ||||||||
| Interest credited to policyholder account balances | 18 | 16 | 19 | 19 | 18 | 71 | 72 | ||||||||
| Capitalization of DAC | (106) | (108) | (119) | (114) | (116) | (411) | (457) | ||||||||
| Amortization of DAC and VOBA | 81 | 85 | 85 | 87 | 91 | 323 | 348 | ||||||||
| Amortization of negative VOBA | (1) | (1) | (1) | (1) | (1) | (5) | (4) | ||||||||
| Interest expense on debt | — | — | — | — | — | — | — | ||||||||
| Other expenses | 308 | 300 | 314 | 315 | 331 | 1,171 | 1,260 | ||||||||
| Total adjusted expenses | 534 | 550 | 537 | 527 | 586 | 2,119 | 2,200 | ||||||||
| Adjusted earnings before provision for income tax | 72 | 76 | 92 | 112 | 63 | 322 | 343 | ||||||||
| Provision for income tax expense (benefit) | 8 | 16 | 22 | 24 | 16 | 73 | 78 | ||||||||
| Adjusted earnings | 64 | 60 | 70 | 88 | 47 | 249 | 265 | ||||||||
| Preferred stock dividends | — | — | — | — | — | — | — | ||||||||
| Adjusted earnings available to common shareholders | $ | 64 | $ | 60 | $ | 70 | $ | 88 | $ | 47 | $ | 249 | $ | 265 | |
| Adjusted premiums, fees and other revenues | $ | 565 | $ | 581 | $ | 582 | $ | 588 | $ | 595 | $ | 2,281 | $ | 2,346 |
Table of Contents
| EMEA | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| OTHER EXPENSES BY MAJOR CATEGORY | ||||||||||
| For the Three Months Ended | ||||||||||
| Unaudited (In millions) | December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | |||||
| Direct and allocated expenses | $ | 100 | $ | 94 | $ | 97 | $ | 104 | $ | 109 |
| Pension, postretirement and postemployment benefit costs | 1 | 1 | 1 | 2 | 6 | |||||
| Premium taxes, other taxes, and licenses & fees | 6 | 5 | 6 | 6 | 6 | |||||
| Commissions and other variable expenses | 201 | 200 | 210 | 203 | 210 | |||||
| Adjusted other expenses | $ | 308 | $ | 300 | $ | 314 | $ | 315 | $ | 331 |
| Adjusted other expenses, net of adjusted capitalization of DAC | $ | 202 | $ | 192 | $ | 195 | $ | 201 | $ | 215 |
| Adjusted other expenses on a constant currency basis | $ | 308 | $ | 292 | $ | 303 | $ | 311 | $ | 331 |
| Adjusted other expenses, net of adjusted capitalization of DAC, on a constant currency basis | $ | 203 | $ | 189 | $ | 190 | $ | 199 | $ | 215 |
| OTHER STATISTICAL INFORMATION | ||||||||||
| For the Three Months Ended | ||||||||||
| Unaudited (In millions) | December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | |||||
| Adjusted premiums, fees and other revenues | $ | 565 | $ | 581 | $ | 582 | $ | 588 | $ | 595 |
| Adjusted earnings available to common shareholders | $ | 64 | $ | 60 | $ | 70 | $ | 88 | $ | 47 |
| Adjusted premiums, fees and other revenues, on a constant currency basis | $ | 564 | $ | 570 | $ | 567 | $ | 581 | $ | 595 |
| Adjusted earnings available to common shareholders, on a constant currency basis | $ | 64 | $ | 57 | $ | 66 | $ | 87 | $ | 47 |
| Total sales on a constant currency basis | $ | 177 | $ | 255 | $ | 222 | $ | 198 | $ | 209 |
Table of Contents
| METLIFE HOLDINGS<br>STATEMENTS OF ADJUSTED EARNINGS AVAILABLE TO COMMON SHAREHOLDERS | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| For the Three Months Ended | For the Year Ended | ||||||||||||||
| Unaudited (In millions) | December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | December 31, 2022 | December 31, 2023 | ||||||||
| Adjusted revenues | |||||||||||||||
| Premiums | $ | 785 | $ | 723 | $ | 719 | $ | 685 | $ | 754 | $ | 3,066 | $ | 2,881 | |
| Universal life and investment-type product policy fees | 176 | 183 | 170 | 184 | 95 | 902 | 632 | ||||||||
| Net investment income | 1,150 | 1,127 | 1,170 | 1,153 | 1,044 | 4,914 | 4,494 | ||||||||
| Other revenues | 49 | 53 | 49 | 41 | 52 | 155 | 195 | ||||||||
| Total adjusted revenues | 2,160 | 2,086 | 2,108 | 2,063 | 1,945 | 9,037 | 8,202 | ||||||||
| Adjusted expenses | |||||||||||||||
| Policyholder benefits and claims and policyholder dividends | 1,415 | 1,369 | 1,341 | 1,311 | 1,329 | 5,636 | 5,350 | ||||||||
| Policyholder liability remeasurement (gains) losses | 7 | 20 | 15 | (7) | 9 | 101 | 37 | ||||||||
| Interest credited to policyholder account balances | 206 | 199 | 198 | 198 | 135 | 813 | 730 | ||||||||
| Capitalization of DAC | (7) | (6) | (6) | (5) | (5) | (29) | (22) | ||||||||
| Amortization of DAC and VOBA | 61 | 68 | 64 | 65 | 61 | 270 | 258 | ||||||||
| Amortization of negative VOBA | — | — | — | — | — | — | — | ||||||||
| Interest expense on debt | 3 | 3 | 3 | 4 | 3 | 8 | 13 | ||||||||
| Other expenses | 247 | 238 | 231 | 238 | 220 | 953 | 927 | ||||||||
| Total adjusted expenses | 1,932 | 1,891 | 1,846 | 1,804 | 1,752 | 7,752 | 7,293 | ||||||||
| Adjusted earnings before provision for income tax | 228 | 195 | 262 | 259 | 193 | 1,285 | 909 | ||||||||
| Provision for income tax expense (benefit) | 44 | 37 | 51 | 51 | 37 | 254 | 176 | ||||||||
| Adjusted earnings | 184 | 158 | 211 | 208 | 156 | 1,031 | 733 | ||||||||
| Preferred stock dividends | — | — | — | — | — | — | — | ||||||||
| Adjusted earnings available to common shareholders | $ | 184 | $ | 158 | $ | 211 | $ | 208 | $ | 156 | $ | 1,031 | $ | 733 | |
| Adjusted premiums, fees and other revenues | $ | 1,010 | $ | 959 | $ | 938 | $ | 910 | $ | 901 | $ | 4,123 | $ | 3,708 |
Table of Contents
| METLIFE HOLDINGS | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| FUTURE POLICY BENEFITS (1) | ||||||||||
| Unaudited (In millions) | December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | |||||
| Annuities | $ | 1,593 | $ | 1,606 | $ | 1,581 | $ | 1,508 | $ | 1,610 |
| Life and Other | 54,573 | 54,365 | 54,187 | 53,930 | 53,930 | |||||
| Long Term Care | 13,845 | 14,617 | 14,498 | 13,025 | 15,240 | |||||
| Balance, end of period (at balance sheet discount rate) (2) | $ | 70,011 | $ | 70,588 | $ | 70,266 | $ | 68,463 | $ | 70,780 |
| Less: | ||||||||||
| Annuities | $ | (60) | $ | (29) | $ | (50) | $ | (110) | $ | (18) |
| Life and Other | (60) | (16) | 18 | (120) | 27 | |||||
| Long Term Care | (513) | 111 | (172) | (1,754) | 313 | |||||
| Accumulated other comprehensive (income) loss | $ | (633) | $ | 66 | $ | (204) | $ | (1,984) | $ | 322 |
| Annuities | $ | 1,653 | $ | 1,635 | $ | 1,631 | $ | 1,618 | $ | 1,628 |
| Life and Other | 54,633 | 54,381 | 54,169 | 54,050 | 53,903 | |||||
| Long Term Care | 14,358 | 14,506 | 14,670 | 14,779 | 14,927 | |||||
| Balance, end of period (at original discount rate) | $ | 70,644 | $ | 70,522 | $ | 70,470 | $ | 70,447 | $ | 70,458 |
| Future policy benefits subject to reinsurance (at balance sheet discount rate) (3) | ||||||||||
| Annuities | $ | — | $ | — | $ | — | $ | — | $ | 1,519 |
| Life and Other | $ | 1,055 | $ | 1,038 | $ | 1,030 | $ | 1,044 | $ | 2,341 |
| Long Term Care | $ | — | $ | — | $ | — | $ | — | $ | — |
| POLICYHOLDER ACCOUNT BALANCES | ||||||||||
| Unaudited (In millions) | December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | |||||
| Annuities | $ | 13,286 | $ | 12,818 | $ | 12,410 | $ | 12,006 | $ | 11,537 |
| Life and Other | 12,402 | 12,234 | 12,044 | 11,844 | 11,641 | |||||
| Balance, end of period | $ | 25,688 | $ | 25,052 | $ | 24,454 | $ | 23,850 | $ | 23,178 |
| Policyholder account balances subject to reinsurance (3) | ||||||||||
| Annuities | $ | — | $ | — | $ | — | $ | — | $ | 3,485 |
| Life and Other | $ | 1,563 | $ | 1,555 | $ | 1,548 | $ | 1,542 | $ | 6,352 |
| MARKET RISK BENEFITS (4) | ||||||||||
| Unaudited (In millions) | December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | |||||
| Annuities | $ | 3,225 | $ | 3,361 | $ | 2,793 | $ | 2,268 | $ | 2,722 |
| Balance, end of period | $ | 3,225 | $ | 3,361 | $ | 2,793 | $ | 2,268 | $ | 2,722 |
| Market risk benefits subject to reinsurance | $ | — | $ | — | $ | — | $ | — | $ | — |
| SEPARATE ACCOUNT LIABILITIES | ||||||||||
| Unaudited (In millions) | December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | |||||
| Annuities | $ | 28,499 | $ | 29,320 | $ | 29,616 | $ | 27,455 | $ | 29,224 |
| Life and Other | 5,475 | 5,794 | 6,071 | 5,736 | 6,324 | |||||
| Balance, end of period | $ | 33,974 | $ | 35,114 | $ | 35,687 | $ | 33,191 | $ | 35,548 |
| Separate accounts liabilities subject to modified coinsurance (5) | ||||||||||
| Annuities | $ | — | $ | — | $ | — | $ | — | $ | 83 |
| Life and Other | $ | — | $ | — | $ | — | $ | — | $ | 5,597 |
| (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) Included in premiums, reinsurance and other receivables on MetLife, Inc.'s consolidated balance sheets. | ||||||||||
| (4) Market risk benefits include Japan reinsurance. | ||||||||||
| (5) Separate account assets retained by MetLife; these amounts are not included in premiums, reinsurance and other receivables on MetLife, Inc.'s consolidated balance sheets. |
Table of Contents
| METLIFE HOLDINGS | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| OTHER EXPENSES BY MAJOR CATEGORY | |||||||||||||||
| For the Three Months Ended | |||||||||||||||
| Unaudited (In millions) | December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | ||||||||||
| Direct and allocated expenses | $ | 178 | $ | 171 | $ | 165 | $ | 166 | $ | 164 | |||||
| Pension, postretirement and postemployment benefit costs | 1 | 6 | 6 | 5 | 6 | ||||||||||
| Premium taxes, other taxes, and licenses & fees | 15 | 18 | 17 | 19 | 16 | ||||||||||
| Commissions and other variable expenses | 53 | 43 | 43 | 48 | 34 | ||||||||||
| Adjusted other expenses | $ | 247 | $ | 238 | $ | 231 | $ | 238 | $ | 220 | |||||
| OTHER STATISTICAL INFORMATION | |||||||||||||||
| For the Three Months Ended | |||||||||||||||
| Unaudited (In millions, except ratios) | December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | ||||||||||
| Life (1) | |||||||||||||||
| Adjusted premiums, fees and other revenues | $ | 694 | $ | 639 | $ | 614 | $ | 581 | $ | 566 | |||||
| Interest adjusted benefit ratio | 49.1 | % | 45.8 | % | 39.5 | % | 42.6 | % | 43.2 | % | |||||
| Lapse Ratio (2) | |||||||||||||||
| Traditional life | 4.6 | % | 4.7 | % | 4.8 | % | 5.1 | % | 5.4 | % | |||||
| Variable & universal life | 3.4 | % | 3.5 | % | 3.7 | % | 3.8 | % | 3.8 | % | |||||
| Fixed annuity | 7.3 | % | 9.0 | % | 10.3 | % | 11.2 | % | 11.9 | % | |||||
| Variable annuity | 9.2 | % | 9.5 | % | 9.9 | % | 10.5 | % | 11.1 | % | |||||
| (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 Ended | ||||||||||||||
| Unaudited (In millions) | December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | December 31, 2022 | December 31, 2023 | ||||||||
| Adjusted revenues | |||||||||||||||
| Premiums | $ | 1 | $ | 16 | $ | 19 | $ | 9 | $ | (2) | $ | (16) | $ | 42 | |
| Universal life and investment-type product policy fees | 1 | — | 1 | — | — | 2 | 1 | ||||||||
| Net investment income | 58 | 50 | 80 | 125 | 98 | 273 | 353 | ||||||||
| Other revenues | 101 | 101 | 106 | 103 | 102 | 396 | 412 | ||||||||
| Total adjusted revenues | 161 | 167 | 206 | 237 | 198 | 655 | 808 | ||||||||
| Adjusted expenses | |||||||||||||||
| Policyholder benefits and claims and policyholder dividends | 6 | 16 | 12 | 4 | (9) | (6) | 23 | ||||||||
| Policyholder liability remeasurement (gains) losses | — | — | — | — | — | — | — | ||||||||
| Interest credited to policyholder account balances | — | — | — | — | — | — | — | ||||||||
| Capitalization of DAC | (1) | (1) | (4) | (2) | (1) | (8) | (8) | ||||||||
| Amortization of DAC and VOBA | 2 | 1 | 4 | 3 | 1 | 9 | 9 | ||||||||
| Amortization of negative VOBA | — | — | — | — | — | — | — | ||||||||
| Interest expense on debt | 240 | 247 | 244 | 256 | 258 | 909 | 1,005 | ||||||||
| Other expenses | 203 | 177 | 229 | 250 | 290 | 709 | 946 | ||||||||
| Total adjusted expenses | 450 | 440 | 485 | 511 | 539 | 1,613 | 1,975 | ||||||||
| Adjusted earnings before provision for income tax | (289) | (273) | (279) | (274) | (341) | (958) | (1,167) | ||||||||
| Provision for income tax expense (benefit) | (108) | (103) | (83) | (79) | (142) | (343) | (407) | ||||||||
| Adjusted earnings | (181) | (170) | (196) | (195) | (199) | (615) | (760) | ||||||||
| Preferred stock dividends | 29 | 66 | 32 | 67 | 33 | 185 | 198 | ||||||||
| Adjusted earnings available to common shareholders | $ | (210) | $ | (236) | $ | (228) | $ | (262) | $ | (232) | $ | (800) | $ | (958) | |
| Adjusted premiums, fees and other revenues | $ | 103 | $ | 117 | $ | 126 | $ | 112 | $ | 100 | $ | 382 | $ | 455 | |
| ADJUSTED EARNINGS AVAILABLE TO COMMON SHAREHOLDERS BY SOURCE | |||||||||||||||
| For the Three Months Ended | For the Year Ended | ||||||||||||||
| Unaudited (In millions) | December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | December 31, 2022 | December 31, 2023 | ||||||||
| Business activities | $ | 32 | $ | 19 | $ | 20 | $ | 13 | $ | 35 | $ | 138 | $ | 87 | |
| Net investment income | 63 | 51 | 81 | 126 | 95 | 276 | 353 | ||||||||
| Interest expense on debt | (250) | (258) | (254) | (266) | (269) | (943) | (1,047) | ||||||||
| Corporate initiatives and projects | (16) | (14) | (32) | (12) | (9) | (64) | (67) | ||||||||
| Other | (118) | (71) | (94) | (135) | (193) | (365) | (493) | ||||||||
| Provision for income tax (expense) benefit and other tax-related items | 108 | 103 | 83 | 79 | 142 | 343 | 407 | ||||||||
| Preferred stock dividends | (29) | (66) | (32) | (67) | (33) | (185) | (198) | ||||||||
| Adjusted earnings available to common shareholders | $ | (210) | $ | (236) | $ | (228) | $ | (262) | $ | (232) | $ | (800) | $ | (958) |
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 | At or For the Year Ended | ||||||||||||||||||||
| Unaudited (In millions, except yields) | December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | December 31, 2022 | December 31, 2023 | ||||||||||||||
| Fixed Maturity Securities | |||||||||||||||||||||
| Yield (1) | 4.04 | % | 4.07 | % | 4.17 | % | 4.19 | % | 4.39 | % | 3.76 | % | 4.20 | % | |||||||
| Investment income (2), (3) | $ | 2,978 | $ | 3,028 | $ | 3,107 | $ | 3,123 | $ | 3,241 | $ | 11,098 | $ | 12,499 | |||||||
| Investment gains (losses) | (356) | (580) | (996) | (699) | (197) | (1,912) | (2,472) | ||||||||||||||
| Ending carrying value (4) | 278,215 | 285,397 | 285,444 | 272,456 | 282,861 | 278,215 | 282,861 | ||||||||||||||
| Net Mortgage Loans | |||||||||||||||||||||
| Yield (1) | 4.73 | % | 4.92 | % | 5.12 | % | 5.18 | % | 5.36 | % | 4.34 | % | 5.15 | % | |||||||
| Investment income (3) | 983 | 1,041 | 1,091 | 1,094 | 1,127 | 3,536 | 4,353 | ||||||||||||||
| Investment gains (losses) | (118) | (164) | 32 | 3 | (69) | 21 | (198) | ||||||||||||||
| Ending carrying value (5) | 83,763 | 85,572 | 84,794 | 84,058 | 84,118 | 83,763 | 84,118 | ||||||||||||||
| Real Estate and Real Estate Joint Ventures | |||||||||||||||||||||
| Yield (1) | 3.16 | % | (2.10) | % | 0.82 | % | (0.31) | % | 2.08 | % | 6.40 | % | 0.12 | % | |||||||
| Investment income | 101 | (69) | 27 | (11) | 69 | 798 | 16 | ||||||||||||||
| Investment gains (losses) | 490 | 18 | 13 | 1 | 37 | 653 | 69 | ||||||||||||||
| Ending carrying value | 13,137 | 13,155 | 13,045 | 13,133 | 13,332 | 13,137 | 13,332 | ||||||||||||||
| Policy Loans | |||||||||||||||||||||
| Yield (1) | 5.22 | % | 5.35 | % | 5.39 | % | 5.52 | % | 5.36 | % | 5.15 | % | 5.41 | % | |||||||
| Investment income | 115 | 119 | 119 | 120 | 113 | 459 | 471 | ||||||||||||||
| Ending carrying value | 8,874 | 8,863 | 8,788 | 8,725 | 8,788 | 8,874 | 8,788 | ||||||||||||||
| Equity Securities | |||||||||||||||||||||
| Yield (1) | 3.58 | % | 3.17 | % | 4.11 | % | 4.14 | % | 3.37 | % | 3.96 | % | 3.61 | % | |||||||
| Investment income | 10 | 12 | 10 | 5 | 4 | 36 | 31 | ||||||||||||||
| Investment gains (losses) | (18) | 48 | 32 | (14) | 15 | (133) | 81 | ||||||||||||||
| Ending carrying value | 1,684 | 1,695 | 769 | 742 | 757 | 1,684 | 757 | ||||||||||||||
| Other Limited Partnership Interests | |||||||||||||||||||||
| Yield (1), (6) | (1.18) | % | 0.73 | % | 6.17 | % | 5.56 | % | (0.06) | % | 5.92 | % | 3.10 | % | |||||||
| Investment income (6) | (43) | 26 | 225 | 206 | (2) | 860 | 455 | ||||||||||||||
| Investment gains (losses) | 38 | 9 | 3 | — | — | 53 | 12 | ||||||||||||||
| Ending carrying value (7) | 14,414 | 14,437 | 14,722 | 14,918 | 14,764 | 14,414 | 14,764 | ||||||||||||||
| Cash and Short-term Investments | |||||||||||||||||||||
| Yield (1) | 3.70 | % | 5.01 | % | 5.94 | % | 6.38 | % | 5.61 | % | 2.31 | % | 5.73 | % | |||||||
| Investment income | 131 | 167 | 195 | 220 | 229 | 282 | 811 | ||||||||||||||
| Investment gains (losses) | (37) | (11) | 29 | 5 | (33) | 82 | (10) | ||||||||||||||
| Ending carrying value | 25,130 | 22,640 | 22,338 | 21,409 | 26,684 | 25,130 | 26,684 | ||||||||||||||
| Other Invested Assets | |||||||||||||||||||||
| Investment income | 396 | 439 | 397 | 420 | 410 | 1,670 | 1,666 | ||||||||||||||
| Investment gains (losses) | (15) | (11) | 13 | (167) | 7 | 87 | (158) | ||||||||||||||
| Ending carrying value | 20,038 | 19,479 | 19,656 | 18,755 | 18,202 | 20,038 | 18,202 | ||||||||||||||
| Total Investments | |||||||||||||||||||||
| Investment income yield (1) | 4.27 | % | 4.31 | % | 4.66 | % | 4.68 | % | 4.69 | % | 4.32 | % | 4.58 | % | |||||||
| Investment fees and expenses yield (1) | (0.13) | % | (0.14) | % | (0.12) | % | (0.11) | % | (0.13) | % | (0.12) | % | (0.13) | % | |||||||
| Net Investment Income Yield (1) | 4.14 | % | 4.17 | % | 4.54 | % | 4.57 | % | 4.56 | % | 4.20 | % | 4.45 | % | |||||||
| Investment income | $ | 4,671 | $ | 4,763 | $ | 5,171 | $ | 5,177 | $ | 5,191 | $ | 18,739 | $ | 20,302 | |||||||
| Investment fees and expenses | (141) | (157) | (131) | (121) | (144) | (539) | (553) | ||||||||||||||
| Net investment income including divested businesses | 4,530 | 4,606 | 5,040 | 5,056 | 5,047 | 18,200 | 19,749 | ||||||||||||||
| Less: Net investment income from divested businesses | — | — | — | — | — | 11 | — | ||||||||||||||
| Adjusted Net Investment Income (8) | $ | 4,530 | $ | 4,606 | $ | 5,040 | $ | 5,056 | $ | 5,047 | $ | 18,189 | $ | 19,749 | |||||||
| Ending Carrying Value | $ | 445,255 | $ | 451,238 | $ | 449,556 | $ | 434,196 | $ | 449,506 | $ | 445,255 | $ | 449,506 | |||||||
| Investment Portfolio Gains (Losses) (9) | $ | (16) | $ | (691) | $ | (874) | $ | (871) | $ | (240) | $ | (1,149) | $ | (2,676) | |||||||
| Gross investment gains | 1,117 | 433 | 271 | 119 | 292 | 2,283 | 1,115 | ||||||||||||||
| Gross investment losses | (1,084) | (936) | (276) | (418) | (465) | (3,257) | (2,095) | ||||||||||||||
| Net credit loss (provision) release and (impairments) | (49) | (188) | (869) | (572) | (67) | (175) | (1,696) | ||||||||||||||
| Investment Portfolio Gains (Losses) (9) | (16) | (691) | (874) | (871) | (240) | (1,149) | (2,676) | ||||||||||||||
| Investment portfolio gains (losses) income tax (expense) benefit | 3 | 181 | 188 | 155 | 80 | 262 | 604 | ||||||||||||||
| Investment Portfolio Gains (Losses), Net of Income Tax | $ | (13) | $ | (510) | $ | (686) | $ | (716) | $ | (160) | $ | (887) | $ | (2,072) | |||||||
| Derivative gains (losses) (9) | (381) | (372) | (1,278) | (1,454) | (123) | (3,227) | (3,227) | ||||||||||||||
| Derivative gains (losses) income tax (expense) benefit | 69 | 47 | 320 | 397 | (45) | 828 | 719 | ||||||||||||||
| Derivative Gains (Losses), Net of Income Tax | $ | (312) | $ | (325) | $ | (958) | $ | (1,057) | $ | (168) | $ | (2,399) | $ | (2,508) | |||||||
| See footnotes on Page 29. |
Table of Contents
| INVESTMENTS | |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| SUMMARY OF FIXED MATURITY SECURITIES AVAILABLE-FOR-SALE<br>BY SECTOR AND QUALITY DISTRIBUTION | |||||||||||||||||||||
| December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 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 | $ | 80,030 | 28.9 | % | $ | 82,482 | 29.1 | % | $ | 82,523 | 29.1 | % | $ | 78,552 | 28.9 | % | $ | 80,717 | 28.7 | % | |
| Foreign corporate | 52,572 | 19.0 | % | 54,285 | 19.1 | % | 53,690 | 18.9 | % | 51,377 | 19.0 | % | 55,444 | 19.7 | % | ||||||
| Foreign government | 46,747 | 16.9 | % | 48,111 | 16.9 | % | 45,994 | 16.2 | % | 42,685 | 15.8 | % | 45,489 | 16.2 | % | ||||||
| U.S. government and agency | 32,229 | 11.6 | % | 32,878 | 11.6 | % | 33,129 | 11.7 | % | 31,729 | 11.7 | % | 32,252 | 11.5 | % | ||||||
| Residential mortgage-backed | 26,165 | 9.5 | % | 26,543 | 9.4 | % | 28,458 | 10.0 | % | 27,785 | 10.3 | % | 29,096 | 10.3 | % | ||||||
| Asset-backed securities and collateralized loan obligations | 16,822 | 6.1 | % | 16,970 | 6.0 | % | 17,480 | 6.2 | % | 17,412 | 6.4 | % | 17,294 | 6.1 | % | ||||||
| Municipals | 12,152 | 4.4 | % | 12,597 | 4.4 | % | 12,324 | 4.3 | % | 11,347 | 4.2 | % | 11,171 | 4.0 | % | ||||||
| Commercial mortgage-backed | 10,063 | 3.6 | % | 9,988 | 3.5 | % | 10,259 | 3.6 | % | 10,095 | 3.7 | % | 9,949 | 3.5 | % | ||||||
| Fixed Maturity Securities Available-For-Sale | $ | 276,780 | 100.0 | % | $ | 283,854 | 100.0 | % | $ | 283,857 | 100.0 | % | $ | 270,982 | 100.0 | % | $ | 281,412 | 100.0 | % | |
| NRSRO | NAIC | ||||||||||||||||||||
| RATING | DESIGNATION | ||||||||||||||||||||
| Aaa / Aa / A | 1 | $ | 190,021 | 68.7 | % | $ | 195,535 | 69.0 | % | $ | 196,361 | 69.3 | % | $ | 186,834 | 69.0 | % | $ | 194,722 | 69.2 | % |
| Baa | 2 | 73,194 | 26.5 | % | 74,661 | 26.3 | % | 73,827 | 26.0 | % | 71,043 | 26.2 | % | 73,680 | 26.2 | % | |||||
| Ba | 3 | 10,511 | 3.8 | % | 10,856 | 3.8 | % | 10,885 | 3.8 | % | 10,325 | 3.8 | % | 10,299 | 3.7 | % | |||||
| B | 4 | 2,571 | 0.9 | % | 2,296 | 0.8 | % | 2,311 | 0.8 | % | 2,343 | 0.9 | % | 2,371 | 0.8 | % | |||||
| Caa and lower | 5 | 401 | 0.1 | % | 395 | 0.1 | % | 346 | 0.1 | % | 338 | 0.1 | % | 258 | 0.1 | % | |||||
| In or near default | 6 | 82 | — | % | 111 | — | % | 127 | — | % | 99 | — | % | 82 | — | % | |||||
| Total Fixed Maturity Securities Available-For-Sale (10) | $ | 276,780 | 100.0 | % | $ | 283,854 | 100.0 | % | $ | 283,857 | 100.0 | % | $ | 270,982 | 100.0 | % | $ | 281,412 | 100.0 | % | |
| GROSS UNREALIZED GAINS AND LOSSES | |||||||||||||||||||||
| FIXED MATURITY SECURITIES AVAILABLE-FOR-SALE | |||||||||||||||||||||
| Unaudited (In millions) | December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | ||||||||||||||||
| Gross unrealized gains | $ | 5,239 | $ | 6,554 | $ | 5,991 | $ | 3,685 | $ | 6,876 | |||||||||||
| Gross unrealized losses | 34,301 | 27,469 | 28,982 | 38,702 | 25,835 | ||||||||||||||||
| Net Unrealized Gains (Losses) | $ | (29,062) | $ | (20,915) | $ | (22,991) | $ | (35,017) | $ | (18,959) | |||||||||||
| See footnotes on Page 29. |
Table of Contents
| INVESTMENTS | ||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| SUMMARY OF NET MORTGAGE LOANS (5) | ||||||||||||||||||||
| Unaudited (In millions) | December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | |||||||||||||||
| Commercial mortgage loans | $ | 52,502 | $ | 53,697 | $ | 52,737 | $ | 52,053 | $ | 52,111 | ||||||||||
| Agricultural mortgage loans | 19,306 | 19,361 | 19,579 | 19,658 | 19,559 | |||||||||||||||
| Residential mortgage loans | 12,482 | 13,206 | 13,129 | 12,986 | 13,096 | |||||||||||||||
| Total | 84,290 | 86,264 | 85,445 | 84,697 | 84,766 | |||||||||||||||
| Allowance for credit loss | (527) | (692) | (651) | (639) | (648) | |||||||||||||||
| Net Mortgage Loans | $ | 83,763 | $ | 85,572 | $ | 84,794 | $ | 84,058 | $ | 84,118 | ||||||||||
| SUMMARY OF NET COMMERCIAL MORTGAGE LOANS<br><br>BY REGION AND PROPERTY TYPE (5) | ||||||||||||||||||||
| December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | ||||||||||||||||
| Unaudited (In millions, except ratios) | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | Amount | % of Total | ||||||||||
| Pacific | $ | 9,628 | 18.3 | % | $ | 9,736 | 18.1 | % | $ | 9,171 | 17.4 | % | $ | 9,206 | 17.7 | % | $ | 9,016 | 17.3 | % |
| Non-U.S. | 9,299 | 17.7 | % | 9,383 | 17.5 | % | 9,243 | 17.5 | % | 8,682 | 16.7 | % | 8,933 | 17.1 | % | |||||
| Middle Atlantic | 7,574 | 14.4 | % | 7,647 | 14.2 | % | 7,572 | 14.4 | % | 7,581 | 14.6 | % | 7,477 | 14.3 | % | |||||
| South Atlantic | 6,617 | 12.6 | % | 6,671 | 12.4 | % | 6,514 | 12.4 | % | 6,581 | 12.6 | % | 6,637 | 12.7 | % | |||||
| West South Central | 3,721 | 7.1 | % | 3,765 | 7.0 | % | 3,496 | 6.6 | % | 3,417 | 6.6 | % | 3,472 | 6.7 | % | |||||
| New England | 2,764 | 5.3 | % | 2,876 | 5.4 | % | 2,878 | 5.5 | % | 2,875 | 5.5 | % | 2,859 | 5.5 | % | |||||
| Mountain | 2,284 | 4.4 | % | 2,284 | 4.3 | % | 2,227 | 4.2 | % | 2,191 | 4.2 | % | 2,193 | 4.2 | % | |||||
| East North Central | 1,594 | 3.0 | % | 1,768 | 3.3 | % | 1,809 | 3.4 | % | 1,855 | 3.6 | % | 1,822 | 3.5 | % | |||||
| East South Central | 620 | 1.2 | % | 624 | 1.2 | % | 623 | 1.2 | % | 622 | 1.2 | % | 654 | 1.3 | % | |||||
| West North Central | 597 | 1.1 | % | 596 | 1.1 | % | 602 | 1.1 | % | 643 | 1.2 | % | 613 | 1.2 | % | |||||
| Multi-Region and Other | 7,804 | 14.9 | % | 8,347 | 15.5 | % | 8,602 | 16.3 | % | 8,400 | 16.1 | % | 8,435 | 16.2 | % | |||||
| Total | $ | 52,502 | 100.0 | % | $ | 53,697 | 100.0 | % | $ | 52,737 | 100.0 | % | $ | 52,053 | 100.0 | % | $ | 52,111 | 100.0 | % |
| Office | $ | 21,009 | 40.0 | % | $ | 21,134 | 39.4 | % | $ | 20,215 | 38.3 | % | $ | 19,619 | 37.7 | % | $ | 19,651 | 37.7 | % |
| Apartment | 10,575 | 20.2 | % | 11,357 | 21.2 | % | 11,928 | 22.6 | % | 11,807 | 22.7 | % | 11,974 | 23.0 | % | |||||
| Retail | 8,046 | 15.3 | % | 8,289 | 15.4 | % | 7,433 | 14.1 | % | 7,441 | 14.3 | % | 7,218 | 13.9 | % | |||||
| Industrial | 5,607 | 10.7 | % | 5,219 | 9.7 | % | 5,158 | 9.8 | % | 5,248 | 10.1 | % | 5,275 | 10.1 | % | |||||
| Single Family Rental | 3,979 | 7.6 | % | 4,457 | 8.3 | % | 4,711 | 8.9 | % | 4,735 | 9.1 | % | 4,728 | 9.1 | % | |||||
| Hotel | 3,172 | 6.0 | % | 3,117 | 5.8 | % | 3,170 | 6.0 | % | 3,088 | 5.9 | % | 3,140 | 6.0 | % | |||||
| Other | 114 | 0.2 | % | 124 | 0.2 | % | 122 | 0.3 | % | 115 | 0.2 | % | 125 | 0.2 | % | |||||
| Total | $ | 52,502 | 100.0 | % | $ | 53,697 | 100.0 | % | $ | 52,737 | 100.0 | % | $ | 52,053 | 100.0 | % | $ | 52,111 | 100.0 | % |
| See footnotes on Page 29. |
Table of Contents
| INVESTMENTSFOOTNOTES | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (1)We calculate annualized 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. Asset carrying values utilized in the calculation of yields exclude unrecognized unrealized gains (losses), mortgage loans originated for third parties, 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. Invested assets reclassified to held-for-sale and ceded policy loans are included in the calculation of yields, but are otherwise excluded from asset carrying values. 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 70 million, 48 million, 50 million, (17) million and 107 million for the three months ended December 31, 2022, March 31, 2023, June 30, 2023, September 30, 2023 and December 31, 2023, respectively, and (127) million and 188 million for the year ended December 31, 2022 and December 31, 2023, respectively. | |||||||||||||
| (3)Investment income from fixed maturity securities and net 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. | |||||||||||||
| March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | ||||||||||
| Fixed maturity securities available-for-sale | 276,780 | $ | 283,854 | $ | 283,857 | $ | 270,982 | $ | 281,412 | ||||
| Contractholder-directed equity securities and fair value option securities | 10,063 | 10,204 | 9,680 | 10,331 | |||||||||
| Total fixed maturity securities | 293,917 | 294,061 | 280,662 | 291,743 | |||||||||
| Less: Contractholder-directed equity securities | 8,520 | 8,617 | 8,206 | 8,882 | |||||||||
| Fixed maturity securities | 278,215 | $ | 285,397 | $ | 285,444 | $ | 272,456 | $ | 282,861 | ||||
| (5)Net mortgage loans exclude mortgage loans originated for third parties of 8,265 million, 8,238 million and 8,461 million at amortized cost, which is primarily comprised of commercial mortgage loans of 8,022 million, 7,998 million and 8,215 million at amortized cost, and does not include the related allowance for credit loss of 73 million, 66 million and 73 million at June 30, 2023, September 30, 2023 and December 31, 2023, respectively. Prior to the second quarter of 2023, these mortgage loans originated for third parties were accounted for by MetLife as sales of portions of the related mortgage loans. | |||||||||||||
| (6)Other limited partnership interests includes investment income related to private equity investments of (40) million, 17 million, 223 million, 203 million and (2) million for the three months ended December 31, 2022, March 31, 2023, June 30, 2023, September 30, 2023 and December 31, 2023, respectively, and 972 million and 424 million for the year ended December 31, 2022 and December 31, 2023, respectively. The annualized yields for these periods were (1.15%), 0.48%, 6.19%, 5.50%, (0.06%), 6.95% and 3.04%, respectively. | |||||||||||||
| (7)Other limited partnership interests includes ending carrying value related to private equity investments of 14,000 million, 14,225 million, 14,608 million, 14,862 million and 14,738 million at December 31, 2022, March 31, 2023, June 30, 2023, September 30, 2023 and December 31, 2023, respectively. | |||||||||||||
| (8)Adjusted net investment income reflects the adjustments as presented on Page 5. | |||||||||||||
| (9)Investment portfolio gains (losses) and Derivative gains (losses) reflect the non-GAAP adjustments as presented below: | |||||||||||||
| For the Year Ended | |||||||||||||
| March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | December 31, 2022 | December 31, 2023 | ||||||||
| Net investment gains (losses) | 350 | $ | (684) | $ | (1,039) | $ | (927) | $ | (174) | $ | (1,260) | $ | (2,824) |
| Less: Non-investment portfolio gains (losses) | 13 | (95) | (63) | 64 | (106) | (81) | |||||||
| Less: Provision for credit loss on certain mortgage loans originated for third parties | — | (73) | 7 | (7) | — | (73) | |||||||
| Less: Other adjustments | (6) | 3 | — | 9 | (5) | 6 | |||||||
| Investment portfolio gains (losses) | (16) | $ | (691) | $ | (874) | $ | (871) | $ | (240) | $ | (1,149) | $ | (2,676) |
| For the Year Ended | |||||||||||||
| March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | December 31, 2022 | December 31, 2023 | ||||||||
| Net derivative gains (losses) | (104) | $ | (90) | $ | (997) | $ | (1,202) | $ | 149 | $ | (2,251) | $ | (2,140) |
| Less: Investment hedge adjustments | 264 | 263 | 232 | 253 | 976 | 1,012 | |||||||
| Less: Other adjustments | 18 | 18 | 20 | 19 | — | 75 | |||||||
| Derivative gains (losses) | (381) | $ | (372) | $ | (1,278) | $ | (1,454) | $ | (123) | $ | (3,227) | $ | (3,227) |
| (10)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
Table of Contents
| APPENDIX<br>METLIFE<br>RECONCILIATION DETAIL | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| For the Three Months Ended | For the Year Ended | |||||||||||||
| Unaudited (In millions) | December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | December 31, 2022 | December 31, 2023 | |||||||
| Reconciliation to Adjusted Earnings Available to Common Shareholders | ||||||||||||||
| Net income (loss) available to MetLife, Inc.'s common shareholders | $ | 1,549 | $ | 14 | $ | 370 | $ | 422 | $ | 574 | $ | 5,099 | $ | 1,380 |
| Add: Preferred stock dividends | 29 | 66 | 32 | 67 | 33 | 185 | 198 | |||||||
| Add: Preferred stock redemption premium | — | — | — | — | — | — | — | |||||||
| Add: Net Income (loss) attributable to noncontrolling interests | 3 | 5 | 6 | 6 | 7 | 18 | 24 | |||||||
| Net income (loss) | 1,581 | 85 | 408 | 495 | 614 | $ | 5,302 | $ | 1,602 | |||||
| Less: adjustments from net income (loss) to adjusted earnings: | ||||||||||||||
| Net investment gains (losses) | 350 | (684) | (1,039) | (927) | (174) | (1,260) | (2,824) | |||||||
| Net derivative gains (losses) | (104) | (90) | (997) | (1,202) | 149 | (2,251) | (2,140) | |||||||
| Market risk benefit remeasurement gains (losses) | 512 | (188) | 817 | 796 | (431) | 3,674 | 994 | |||||||
| Premiums - Divested businesses | — | — | — | — | — | 41 | — | |||||||
| Universal life and investment-type product policy fees - Divested businesses | — | — | — | — | — | 11 | — | |||||||
| Net investment income | ||||||||||||||
| Investment hedge adjustments | (277) | (264) | (263) | (232) | (253) | (976) | (1,012) | |||||||
| Unit-linked contract income | 209 | 303 | 296 | 4 | 580 | (1,298) | 1,183 | |||||||
| Other adjustments | 2 | — | (1) | (3) | (8) | (10) | (12) | |||||||
| Divested businesses | — | — | — | — | — | 11 | — | |||||||
| Other revenues | ||||||||||||||
| Asymmetrical and non-economic accounting | — | — | — | — | 29 | — | 29 | |||||||
| Other adjustments | 25 | (3) | (7) | (11) | (13) | 160 | (34) | |||||||
| Divested businesses | — | — | — | — | — | 3 | — | |||||||
| Policyholder benefits and claims and policyholder dividends | ||||||||||||||
| Asymmetrical and non-economic accounting | (79) | (84) | (74) | 5 | (26) | (654) | (179) | |||||||
| Market volatility | 105 | 14 | 44 | 64 | 62 | 193 | 184 | |||||||
| Divested businesses | — | — | — | — | — | (23) | — | |||||||
| Policyholder liability remeasurement (gains) losses - Divested businesses | — | — | — | — | — | — | — | |||||||
| Interest credited to policyholder account balances | ||||||||||||||
| Asymmetrical and non-economic accounting | (64) | (19) | 10 | 44 | (103) | 66 | (68) | |||||||
| Unit-linked contract costs | (180) | (303) | (301) | 3 | (582) | 1,322 | (1,183) | |||||||
| Divested businesses | — | — | — | — | — | (3) | — | |||||||
| Capitalization of DAC - Divested businesses | — | — | — | — | — | 11 | — | |||||||
| Amortization of DAC and VOBA - Divested businesses | — | — | — | — | — | (8) | — | |||||||
| Amortization of negative VOBA - Divested business | — | — | — | — | — | — | — | |||||||
| Interest expense on debt - Divested business | — | — | — | — | — | — | — | |||||||
| Other expenses | ||||||||||||||
| Other adjustments | (37) | (16) | (11) | (21) | (7) | (191) | (55) | |||||||
| Divested businesses | (21) | (11) | (9) | (9) | (9) | (74) | (38) | |||||||
| Goodwill impairment | — | — | — | — | — | — | — | |||||||
| Provision for income tax (expense) benefit | (149) | 180 | 419 | 429 | 6 | 580 | 1,034 | |||||||
| Adjusted earnings | 1,289 | 1,250 | 1,524 | 1,555 | 1,394 | 5,978 | 5,723 | |||||||
| Less: Preferred stock dividends | 29 | 66 | 32 | 67 | 33 | 185 | 198 | |||||||
| Adjusted earnings available to common shareholders | $ | 1,260 | $ | 1,184 | $ | 1,492 | $ | 1,488 | $ | 1,361 | $ | 5,793 | $ | 5,525 |
A-1
Table of Contents
| APPENDIX<br>METLIFE<br>NOTABLE ITEMS (1) | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| METLIFE TOTAL | |||||||||||||||
| For the Three Months Ended | For the Year Ended | ||||||||||||||
| Unaudited (In millions) | December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | December 31, 2022 | December 31, 2023 | ||||||||
| Actuarial assumption review and other insurance adjustments | $ | — | $ | — | $ | — | $ | 14 | $ | — | $ | 89 | $ | 14 | |
| Litigation reserves and settlement costs | — | — | — | — | (76) | — | (76) | ||||||||
| Total notable items | $ | — | $ | — | $ | — | $ | 14 | $ | (76) | $ | 89 | $ | (62) | |
| GROUP BENEFITS | |||||||||||||||
| For the Three Months Ended | For the Year Ended | ||||||||||||||
| Unaudited (In millions) | December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | December 31, 2022 | December 31, 2023 | ||||||||
| Actuarial assumption review and other insurance adjustments | $ | — | $ | — | $ | — | $ | 27 | $ | — | $ | — | $ | 27 | |
| Total notable items | $ | — | $ | — | $ | — | $ | 27 | $ | — | $ | — | $ | 27 | |
| RIS | |||||||||||||||
| For the Three Months Ended | For the Year Ended | ||||||||||||||
| Unaudited (In millions) | December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | December 31, 2022 | December 31, 2023 | ||||||||
| Actuarial assumption review and other insurance adjustments | $ | — | $ | — | $ | — | $ | 61 | $ | — | $ | 79 | $ | 61 | |
| Total notable items | $ | — | $ | — | $ | — | $ | 61 | $ | — | $ | 79 | $ | 61 | |
| (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 Ended | ||||||||||||||
| Unaudited (In millions) | December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | December 31, 2022 | December 31, 2023 | ||||||||
| Actuarial assumption review and other insurance adjustments | $ | — | $ | — | $ | — | $ | (94) | $ | — | $ | (32) | $ | (94) | |
| Total notable items | $ | — | $ | — | $ | — | $ | (94) | $ | — | $ | (32) | $ | (94) | |
| LATIN AMERICA | |||||||||||||||
| For the Three Months Ended | For the Year Ended | ||||||||||||||
| Unaudited (In millions) | December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | December 31, 2022 | December 31, 2023 | ||||||||
| Actuarial assumption review and other insurance adjustments | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 1 | $ | — | |
| Total notable items | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 1 | $ | — | |
| EMEA | |||||||||||||||
| For the Three Months Ended | For the Year Ended | ||||||||||||||
| Unaudited (In millions) | December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | December 31, 2022 | December 31, 2023 | ||||||||
| Actuarial assumption review and other insurance adjustments | $ | — | $ | — | $ | — | $ | 18 | $ | — | $ | 15 | $ | 18 | |
| Total notable items | $ | — | $ | — | $ | — | $ | 18 | $ | — | $ | 15 | $ | 18 | |
| METLIFE HOLDINGS | |||||||||||||||
| For the Three Months Ended | For the Year Ended | ||||||||||||||
| Unaudited (In millions) | December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | December 31, 2022 | December 31, 2023 | ||||||||
| Actuarial assumption review and other insurance adjustments | $ | — | $ | — | $ | — | $ | 2 | $ | — | $ | 26 | $ | 2 | |
| Total notable items | $ | — | $ | — | $ | — | $ | 2 | $ | — | $ | 26 | $ | 2 | |
| CORPORATE & OTHER | |||||||||||||||
| For the Three Months Ended | For the Year Ended | ||||||||||||||
| Unaudited (In millions) | December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | December 31, 2022 | December 31, 2023 | ||||||||
| Litigation reserves and settlement costs | — | — | — | — | (76) | — | (76) | ||||||||
| Total notable items | $ | — | $ | — | $ | — | $ | — | $ | (76) | $ | — | $ | (76) | |
| (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) | December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | ||||||||||||||||
| Total MetLife, Inc.'s stockholders' equity | $ | 29,881 | $ | 32,194 | $ | 30,261 | $ | 25,658 | $ | 30,015 | |||||||||||
| Less: Preferred stock | 3,818 | 3,818 | 3,818 | 3,818 | 3,818 | ||||||||||||||||
| MetLife, Inc.'s common stockholders' equity | 26,063 | 28,376 | 26,443 | 21,840 | 26,197 | ||||||||||||||||
| Less: Net unrealized investment gains (losses), net of income tax | (21,089) | (14,606) | (16,800) | (26,548) | (14,323) | ||||||||||||||||
| Future policy benefits discount rate remeasurement gains (losses), net of income tax | 6,115 | 2,748 | 3,919 | 10,245 | 2,658 | ||||||||||||||||
| Market risk benefits instrument-specific credit risk remeasurement gains (losses), net of income tax | 107 | 186 | 108 | (4) | 27 | ||||||||||||||||
| Defined benefit plans adjustment, net of income tax | (1,377) | (1,356) | (1,331) | (1,308) | (1,446) | ||||||||||||||||
| Total MetLife, Inc.'s common stockholders' equity, excluding AOCI other than FCTA | 42,307 | 41,404 | 40,547 | 39,455 | 39,281 | ||||||||||||||||
| Less: Accumulated year-to-date total notable items (2) | 89 | — | — | 14 | (62) | ||||||||||||||||
| Total MetLife, Inc.'s common stockholders' equity, excluding total notable items (excludes AOCI other than FCTA) (2) | $ | 42,218 | $ | 41,404 | $ | 40,547 | $ | 39,441 | $ | 39,343 | |||||||||||
| Unaudited (In millions, except per share data) | December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | ||||||||||||||||
| Book value per common share | $ | 33.45 | $ | 36.89 | $ | 34.92 | $ | 29.34 | $ | 35.85 | |||||||||||
| Less: Net unrealized investment gains (losses), net of income tax | (27.07) | (18.99) | (22.19) | (35.66) | (19.60) | ||||||||||||||||
| Future policy benefits discount rate remeasurement gains (losses), net of income tax | 7.85 | 3.57 | 5.18 | 13.77 | 3.64 | ||||||||||||||||
| Market risk benefits instrument-specific credit risk remeasurement gains (losses), net of income tax | 0.14 | 0.24 | 0.14 | (0.01) | 0.04 | ||||||||||||||||
| Defined benefit plans adjustment, net of income tax | (1.77) | (1.76) | (1.76) | (1.76) | (1.98) | ||||||||||||||||
| Book value per common share, excluding AOCI other than FCTA | $ | 54.30 | $ | 53.83 | $ | 53.55 | $ | 53.00 | $ | 53.75 | |||||||||||
| Common shares outstanding, end of period | 779.1 | 769.2 | 757.2 | 744.4 | 730.8 | ||||||||||||||||
| For the Three Months Ended (1) | For the Year Ended | ||||||||||||||||||||
| Unaudited (In millions, except ratios) | December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | December 31, 2022 | December 31, 2023 | ||||||||||||||
| Return on MetLife, Inc.'s: | |||||||||||||||||||||
| Common stockholders' equity | 24.0 | % | 0.2 | % | 5.4 | % | 7.0 | % | 9.6 | % | 15.3 | % | 5.4 | % | |||||||
| Adjusted return on MetLife, Inc.'s: | |||||||||||||||||||||
| Common stockholders' equity | 19.5 | % | 17.4 | % | 21.8 | % | 24.7 | % | 22.7 | % | 17.4 | % | 21.4 | % | |||||||
| Common stockholders' equity, excluding AOCI other than FCTA | 12.1 | % | 11.3 | % | 14.6 | % | 14.9 | % | 13.8 | % | 13.7 | % | 13.6 | % | |||||||
| Common stockholders' equity, excluding total notable items (excludes AOCI other than FCTA) (2) | 12.1 | % | 11.3 | % | 14.6 | % | 14.7 | % | 14.6 | % | 13.5 | % | 13.8 | % | |||||||
| Average common stockholders' equity | $ | 25,817 | $ | 27,220 | $ | 27,410 | $ | 24,142 | $ | 24,019 | $ | 33,221 | $ | 25,784 | |||||||
| Average common stockholders' equity, excluding AOCI other than FCTA | $ | 41,640 | $ | 41,856 | $ | 40,976 | $ | 40,001 | $ | 39,368 | $ | 42,282 | $ | 40,599 | |||||||
| Average common stockholders' equity, excluding total notable items (excludes AOCI other than FCTA) (2) | $ | 41,551 | $ | 41,856 | $ | 40,976 | $ | 39,994 | $ | 39,392 | $ | 42,231 | $ | 40,608 | |||||||
| (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. |
A-4
Table of Contents
| 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) | December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | ||||||
| GROUP BENEFITS (1) | $ | 5,799 | $ | 6,049 | $ | 6,013 | $ | 5,866 | $ | 6,001 | |
| RIS (1) | 517 | 648 | 2,823 | 2,478 | 2,883 | ||||||
| ASIA | 1,686 | 1,666 | 1,650 | 1,718 | 1,705 | ||||||
| LATIN AMERICA | 1,247 | 1,381 | 1,349 | 1,439 | 1,486 | ||||||
| EMEA | 564 | 570 | 567 | 581 | 595 | ||||||
| METLIFE HOLDINGS (1) | 1,010 | 959 | 938 | 910 | 901 | ||||||
| CORPORATE & OTHER (1) | 103 | 117 | 126 | 112 | 100 | ||||||
| Adjusted premiums, fees and other revenues, on a constant currency basis | $ | 10,926 | $ | 11,390 | $ | 13,466 | $ | 13,104 | $ | 13,671 | |
| Adjusted premiums, fees and other revenues | $ | 10,873 | $ | 11,520 | $ | 13,594 | $ | 13,181 | $ | 13,671 | |
| ASIA (including operating joint ventures) (2), (3) | $ | 2,050 | $ | 2,144 | $ | 2,060 | $ | 2,143 | $ | 2,071 | |
| OTHER EXPENSES ON A CONSTANT CURRENCY BASIS | |||||||||||
| For the Three Months Ended | |||||||||||
| Unaudited (In millions) | December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | ||||||
| GROUP BENEFITS (1) | $ | 908 | $ | 932 | $ | 950 | $ | 937 | $ | 977 | |
| RIS (1) | 123 | 146 | 146 | 138 | 135 | ||||||
| ASIA | 780 | 745 | 740 | 775 | 785 | ||||||
| LATIN AMERICA | 462 | 440 | 457 | 479 | 523 | ||||||
| EMEA | 308 | 292 | 303 | 311 | 331 | ||||||
| METLIFE HOLDINGS (1) | 247 | 238 | 231 | 238 | 220 | ||||||
| CORPORATE & OTHER (1) | 203 | 177 | 229 | 250 | 290 | ||||||
| Adjusted other expenses on a constant currency basis | $ | 3,031 | $ | 2,970 | $ | 3,056 | $ | 3,128 | $ | 3,261 | |
| Adjusted other expenses | $ | 3,020 | $ | 3,030 | $ | 3,113 | $ | 3,159 | $ | 3,261 | |
| ASIA (including operating joint ventures) (2), (4) | $ | 887 | $ | 869 | $ | 856 | $ | 888 | $ | 882 | |
| ADJUSTED EARNINGS AVAILABLE TO COMMON SHAREHOLDERS ON A CONSTANT CURRENCY BASIS | |||||||||||
| For the Three Months Ended | |||||||||||
| Unaudited (In millions) | December 31, 2022 | March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | ||||||
| GROUP BENEFITS (1) | $ | 392 | $ | 307 | $ | 372 | $ | 510 | $ | 466 | |
| RIS (1) | 381 | $ | 400 | 417 | 470 | 421 | |||||
| ASIA | 267 | 270 | 423 | 271 | 296 | ||||||
| LATIN AMERICA | 200 | 219 | 211 | 192 | 207 | ||||||
| EMEA | 64 | 57 | 66 | 87 | 47 | ||||||
| METLIFE HOLDINGS (1) | 184 | 158 | 211 | 208 | 156 | ||||||
| CORPORATE & OTHER (1) | (210) | (236) | (228) | (262) | (232) | ||||||
| Adjusted earnings available to common shareholders on a constant currency basis | $ | 1,278 | $ | 1,175 | $ | 1,472 | $ | 1,476 | $ | 1,361 | |
| Adjusted earnings available to common shareholders | $ | 1,260 | $ | 1,184 | $ | 1,492 | $ | 1,488 | $ | 1,361 | |
| (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 15 for operating joint ventures. | |||||||||||
| (3) Includes MetLife, Inc.'s share of adjusted premiums, fees and other revenues for operating joint ventures in: (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 in: (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. |
A-5
Table of Contents
| APPENDIX<br><br>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. |
A-6
Table of Contents
| APPENDIX<br>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 and exclude asymmetrical accounting associated with in-force reinsurance. |
| • | 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, (iii) asymmetrical accounting associated with in-force reinsurance, and (iv) 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 and asymmetrical accounting associated with in-force reinsurance. |
| 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. |
A-7
Table of Contents
| APPENDIX<br>METLIFE<br>NON-GAAP AND OTHER FINANCIAL DISCLOSURES (CONTINUED) | |
|---|---|
| Investment portfolio gains (losses) and derivative gains (losses) | |
| These are measures of investment and hedging activity. Investment portfolio gains (losses) principally excludes amounts that are reported within net investment gains (losses) but do not relate to the performance of the investment portfolio, such as gains (losses) on sales and divestitures of businesses, as well as investment portfolio gains (losses) of divested businesses. Derivative gains (losses) principally excludes earned income on derivatives and amortization of premium on derivatives, where such derivatives are either hedges of investments or are used to replicate certain investments, and where such derivatives do not qualify for hedge accounting. This earned income and amortization of premium is reported within adjusted earnings and not within derivative gains (losses). | |
| Return on equity and related measures | |
| • | Total MetLife, Inc.’s common stockholders’ equity, excluding AOCI other than FCTA: Total MetLife, Inc.’s common stockholders’ equity, excluding the net unrealized investment gains (losses), future policy benefits discount rate remeasurement gains (losses), market risk benefits instrument-specific credit risk remeasurement gains (losses) and defined benefit plans adjustment components of AOCI, net of income tax. |
| • | Total MetLife, Inc.’s common stockholders’ equity, excluding total notable items (excludes AOCI other than FCTA): Total MetLife, Inc.’s common stockholders’ equity, excluding the net unrealized investment gains (losses), future policy benefits discount rate remeasurement gains (losses), market risk benefits instrument-specific credit risk remeasurement gains (losses), defined benefit plans adjustment components of AOCI, and total notable items, net of income tax. |
| • | Return on MetLife, Inc.’s common stockholders’ equity: net income (loss) available to MetLife, Inc.’s common shareholders divided by MetLife, Inc.'s average common stockholders’ equity. |
| • | Adjusted return on MetLife, Inc.’s common stockholders’ equity: adjusted earnings available to common shareholders divided by MetLife, Inc.'s average common stockholders’ equity. |
| • | Adjusted return on MetLife, Inc.’s common stockholders’ equity, excluding AOCI other than FCTA: adjusted earnings available to common shareholders divided by MetLife, Inc.'s average common stockholders’ equity, excluding AOCI other than FCTA. |
| • | Adjusted return on MetLife, Inc.’s common stockholders’ equity, excluding total notable items (excludes AOCI other than FCTA): adjusted earnings available to common shareholders, excluding total notable items, divided by MetLife, Inc.'s average common stockholders’ equity, excluding total notable items (excludes AOCI other than FCTA). |
| The above measures represent a level of equity consistent with the view that, in the ordinary course of business, 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 expenses are comprised of employee-related costs, third-party staffing costs, and general and administrative expenses. |
| • | Direct expense ratio, excluding total notable items related to direct expenses and PRT: adjusted direct expenses, excluding total notable items related to direct expenses, divided by adjusted premiums, fees and other revenues, excluding PRT. |
| • | Adjusted expense ratio: adjusted other expenses, net of adjusted capitalization of DAC, divided by adjusted premiums, fees and other revenues. |
| • | Adjusted expense ratio, excluding total notable items related to adjusted other expenses and PRT: adjusted other expenses, net of adjusted capitalization of DAC, excluding total notable items related to adjusted other expenses, divided by adjusted premiums, fees and other revenues, excluding PRT. |
| Asia general account assets under management and related measures | |
| Asia GA AUM is used by MetLife to describe assets in its Asia GA investment portfolio. Asia GA AUM is stated at estimated fair value and is comprised of Asia GA total investments, the portion of the Asia GA investment portfolio classified within assets held-for-sale and cash and cash equivalents, excluding policy loans, contractholder-directed equity securities, fair value option securities, mortgage loans originated for third parties and certain other invested assets. Mortgage loans, net of mortgage loans originated for third parties ("net mortgage loans") (including commercial ("net commercial mortgage loans"), agricultural ("net agricultural mortgage loans") and residential mortgage loans) and real estate equity (including real estate and real estate joint ventures) included in Asia GA AUM (at net asset value, net of deduction for encumbering debt) have been adjusted from carrying value to estimated fair value. At the segment level, intersegment balances (intercompany activity, primarily related to investments in subsidiaries, that eliminate at the MetLife consolidated level) are excluded from Asia GA AUM. | |
| Asia GA AUM (at amortized cost) excludes the following adjustments: (i) unrealized gain (loss) on investments carried at estimated fair value and (ii) adjustments from carrying value to estimated fair value on net mortgage loans (including net commercial mortgage loans, net agricultural mortgage loans and residential mortgage loans) and real estate and real estate joint ventures. Asia GA AUM (at amortized cost) is presented net of related allowance for credit loss. | |
| Other items | |
| The following additional information is relevant to an understanding of our performance results: | |
| • | Statistical sales information for Latin America, Asia and EMEA: calculated using 10% of single-premium deposits (mainly from retirement products such as variable annuity, fixed annuity and pensions), 20% of single-premium deposits from credit insurance and 100% of annualized full-year premiums and fees from recurring-premium policy sales of all products (mainly from risk and protection products such as individual life, accident & health and group). Sales statistics do not correspond to revenues under GAAP, but are used as relevant measures of business activity. |
A-8
Table of Contents
| APPENDIX<br>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 |
| NAIC | National Association of Insurance Commissioners |
| NRSRO | Nationally Recognized Statistical Rating Organization |
| PRT | Pension risk transfers |
| QFS | Quarterly financial supplement |
| RIS | Retirement and Income Solutions |
| VOBA | Value of business acquired |
A-9
Table of Contents
ex993q42023totalaum
Assets Under Management December 31, 2023 Investors turn to MetLife Investment Management for our deep and long-established expertise in Public Fixed Income, Private Capital and Real Estate. Seeking to deliver strong, risk-adjusted returns, we create tailored portfolio solutions by listening first, strategizing second, and collaborating constantly. We are institutional, but far from typical. Total Assets Under Management1 By Asset Type $600.8 Billion Mortgage Loans $109.3 Public Corporates $106.5 Structured Products $64.6 Private Corporates $57.3 U.S. Government and Agency $52.1 Foreign Government $40.4 Private Infrastructure $34.4 Cash and Short-Term Investments $29.8 Real Estate Equity $25.0 Common and Preferred Equity $18.1 Alternatives $17.1 Municipals $14.4 Emerging Market Debt $12.2 Private Structured Credit $6.2 Bank Loans $5.8 High Yield $4.8 Middle Market Private Capital $2.8 Institutional Client Assets Under Management1 $177.8 Billion Insurance/Financial $82.7 Sub-Advisory $37.8 Corporate $28.9 Public $13.0 Commingled Fund2 $12.5 Other3 $2.9 1 As of December 31, 2023. At estimated fair value. Dollars in billions. Cash and Short-Term Investments includes cash equivalents. See Explanatory Note. 2 Includes limited partnerships, collective trusts, mutual funds registered under the Investment Company Act and other vehicles offered or available to qualifying investors, including third parties and affiliates. 3 Includes non-profit clients, Taft-Hartley pension fund clients and asset manager clients. 432 Mandates Representative Capabilities Private Capital Corporate Private Credit Infrastructure Debt Private Structured Credit Middle Market Private Capital Residential Whole Loans Private Equity Public Fixed Income Bank Loans Core Core Plus Corporate Emerging Market Debt High Yield Long Duration Multi-Sector Short Duration Stable Value Real Estate Commercial Mortgage Loans Real Estate Equity Index Strategies Insurance Advisory Liability Driven Investing (LDI) 41% 18% 18% 11% 5% 7% Mandates Profile Institutional Client AUM investments.metlife.com Exhibit 99.3
Explanatory Note The following information is relevant to an understanding of our assets under management ("AUM") managed by MetLife Investment Management, LLC and certain of its affiliates ("MIM"). MIM is MetLife, Inc.'s institutional investment management business. Our definitions may differ from those used by other companies. Total Assets Under Management (“Total AUM”) is comprised of GA AUM plus Institutional Client AUM (each, as defined below). General Account AUM (“GA AUM”) is used by MetLife to describe assets in its general account ("GA") investment portfolio. GA AUM is stated at estimated fair value and 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, mortgage loans originated for third parties and certain other invested assets. Mortgage loans, net of mortgage loans originated for third parties (“net mortgage loans”) (including commercial (“net commercial mortgage loans”), agricultural (“net agricultural mortgage loans”) and residential mortgage loans) and real estate equity (including real estate and real estate joint ventures) included in 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 net 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 net commercial mortgage loans. Institutional Client AUM is comprised of SA AUM plus TP AUM (each, as defined below). MIM manages Institutional Client AUM in accordance with client guidelines contained in each investment advisory agreement (“Mandates”). Separate Account AUM (“SA AUM”) is comprised of separate account investment portfolios of MetLife insurance companies, which are managed by MIM and included in MetLife, Inc.’s consolidated financial statements at estimated fair value. Third Party AUM (“TP AUM”) is comprised of non-proprietary assets managed by MIM on behalf of unaffiliated/third party clients, which are stated at estimated fair value. Such non-proprietary assets are owned by unaffiliated/third-party clients and, accordingly, are generally not included in MetLife, Inc.’s consolidated financial statements. Additional information about MetLife’s general account investment portfolio is available in MetLife, Inc.’s quarterly financial materials for the quarter ended December 31, 2023, which may be accessed through MetLife’s Investor Relations web page at https://investor.metlife.com. Neither MetLife, Inc.’s quarterly financial materials, nor any other information from the MetLife website, is a part of or incorporated by reference into this Total AUM Fact Sheet. L0823033927[exp0824][All States] One MetLife Way | Whippany, New Jersey 07981 © 2023 METLIFE, INC.
ex9944q23supplementalsli
4Q23 Supplemental Slides and Outlook1 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 9 Cash & capital 10 Outlook 11 Appendix 16
3 Net income (loss) to adjusted earnings 4Q23 FY23 (post-tax) $ in millions $ per share1 $ in millions $ per share1 Net Income (Loss) $574 $0.77 $1,380 $1.81 Less: Global Atlantic Assets2 73 0.10 (982) (1.29) Net Investment Gains (Losses)2 (210) (0.28) (1,248) (1.64) Net Derivative Gains (Losses)3 118 0.16 (1,689) (2.22) Market Risk Benefit Remeasurement Gains (Losses)3 (340) (0.46) 789 1.04 Actuarial Assumption Review3,4 — — (6) (0.01) Investment Hedge Adjustments (200) (0.27) (799) (1.05) Other (228) (0.31) (210) (0.28) Adjusted Earnings $1,361 $1.83 $5,525 $7.25 Less Notable Items: Actuarial Assumption Review4 — — 14 0.02 Litigation reserves and settlement costs (76) (0.10) (76) (0.10) Adjusted Earnings ex. Total Notable Items $1,437 $1.93 $5,587 $7.33 1 The per share data for each item is calculated on a standalone basis and may not sum to the total. 2 Total net investment gains (losses) for 4Q23 and FY23 are $137 million and $2.2 billion post-tax, respectively, including adjustments of $73 million and $(982) million related to the impairment of assets related to the Global Atlantic Financial Group reinsurance transaction, respectively. 3 The full year 2023 Actuarial Assumption Review line item reflecting $6 million of after-tax losses includes $4 million of after-tax market risk benefit remeasurement losses and $2 million of after-tax net derivative losses. These amounts are therefore not included in the Net Derivative Gains (Losses) or Market Risk Benefit Remeasurement Gains (Losses) line items. 4 Includes other insurance adjustments.
4 ($ in millions - except per share data) 4Q23 4Q22 % Change % Change (Constant Rate) Key Drivers1 Favorable Unfavorable Group Benefits2 $466 $392 19% Underwriting Margins; Volume Growth Retirement and Income Solutions2 421 381 10% Investment Margins; Underwriting Margins Asia 296 265 12% 11% Investment Margins; Taxes Latin America 207 184 13% 4% Volume Growth Underwriting Margins EMEA 47 64 (27%) (27%) Investment Margins Taxes; Expense Margins; Underwriting Margins MetLife Holdings 156 184 (15%) Foregone earnings3 Corporate & Other (156) (210) Net Investment Income; Taxes Adjusted Earnings ex. Total Notable Items $1,437 $1,260 14% 12% Adjusted EPS ex. Total Notable Items $1.93 $1.59 21% 19% Adjusted earnings, ex. total notable items, by segment 1 To be discussed on MetLife, Inc.'s fourth quarter and full year 2023 earnings conference call and audio webcast. 2 In 4Q23, MetLife reorganized from five segments into the following six segments to reflect changes in management's responsibilities: Group Benefits, RIS, Asia, Latin America, EMEA and MetLife Holdings. The Group Benefits and RIS businesses were previously reported as the U.S. segment. These changes were applied retrospectively and did not have an impact on prior period total consolidated net income (loss) or adjusted earnings. 3As a result of the reinsurance transaction with Global Atlantic Financial Group being effective in November 2023.
5 ($44) $221 $179 $63 $419 1Q23 2Q23 3Q23 4Q23 FY23 2023 VII below guidance1 driven by lower private equity returns ($ 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) 1Q23 2Q23 3Q23 4Q23 FY23 Group Benefits $— $4 $1 $1 $6 Retirement and Income Solutions (3) 29 35 23 84 Asia (25) 84 37 10 106 Latin America (2) 4 5 4 11 EMEA — — — — — MetLife Holdings 2 41 35 23 101 Corporate & Other (7) 13 28 (11) 23 Total Variable Investment Income $(35) $175 $141 $50 $331 1 Assumes a 21% U.S. statutory tax rate. VII by segment
7 FY21 FY22 FY23 4Q22 4Q23 Strong recurring income supported by higher interest rates and asset growth ($ in billions) Recurring income VII Net Investment Income1 $16.7 $5.7 Roll Off vs. Reinvestment $15.6 $1.5 New Money Yield Roll Off Yield 10-Year Treasury Yield 4Q20 2Q21 4Q21 2Q22 4Q22 2Q23 4Q23 0% 1% 2% 3% 4% 5% 6% 7% 6.67% 5.25% 3.88% 1 As reported, on an adjusted basis. $21.3 $18.2 $5.0$4.5 $19.3 $0.4 $19.7
8 High quality commercial mortgage loan (CML) portfolio1 • Concentrated in high-quality assets and in larger, primary markets • 64% average Loan-to-Value (LTV) Ratio and 2.3x average Debt Service Coverage Ratio (DSCR) – 86% of CML portfolio with LTVs less than 80% – 94% of CML portfolio with DSCRs greater than 1x – 68% average office LTV ratio and 2.2x average DSCR • Resolved 100% of 2023 CML maturities 1At December 31, 2023. All references to commercial mortgage loans in this earnings presentation are to net commercial mortgage loans, consisting of commercial mortgage loans, excluding commercial mortgage loans originated for third parties and related allowance for credit loss. LTV and DSCR Matrix $52.1 Billion LTV >1.2x 1.0-1.2x <1.0x Total <65% 48.6% 2.1% 1.2% 51.9% 65-75% 23.7% 2.3% 1.4% 27.4% 76-80% 5.5% 0.9% 0.7% 7.1% >80% 8.8% 2.2% 2.6% 13.6% Total 86.6% 7.5% 5.9% 100.0%
9 11.9% 12.0% 12.2% 12.2% 12.4% 12.3% 13.5% 12.4% 12.5% 12.2% 1Q22 1Q23 2Q22 2Q23 3Q22 3Q23 4Q22 4Q23 FY22 FY23 1 Direct expense ratio, excluding total notable items related to direct expenses and pension risk transfers (PRT). 12.6% Annual Target 2023 direct expense ratio1 of 12.2% beats 12.6% annual target
10 Holding Company Cash1 $5.4 $4.2 $4.2 $4.9 $5.2 4Q22 1Q23 2Q23 3Q23 4Q23 Cash & capital 1 Includes cash and liquid assets at MetLife, Inc. and other holding companies at quarter-end. 2 Excludes notable items. 3 Based on estimate and includes MetLife, Inc.'s principal U.S. insurance subsidiaries, excluding American Life Insurance Company. 4 MetLife calculates RBC annually as of December 31 and, accordingly, the calculation does not reflect conditions and factors occurring after the year end. 5Includes MetLife, Inc.'s principal U.S. insurance subsidiaries, excluding American Life Insurance Company for both periods. $3.0B to $4.0B Cash Buffer Capital ($ in billions) • Share repurchases of $0.9 billion in 4Q23 and $3.1 billion in FY23 – ~$500 million shares repurchased in January 2024 • Average 2022 - 2023 free cash flow ratio2 of 74% • 2023 Combined NAIC Risk-Based Capital (RBC) ratio3,4 above 360% target • Expected total U.S. Statutory Adjusted Capital5 of $19.5 billion at 12/31/23, up 10% from 9/30/23 • Expected Japan Solvency Margin ratio of ~720% at 12/31/23
Outlook
12 Overview • Continued uncertainty in macro environment (inflation & unemployment) • U.S. dollar relatively stable to 2023 • Long-term interest rates flat to 12/31/23 with yield curve steepening • S&P 500 annual return of 5% Near-term1 targets: • Adjusted return on equity2 of 13-15% • Free cash flow ratio of 65-75% of adjusted earnings3 • Direct expense ratio target of 12.3%4 Corporate guidance for 2024: • Variable investment income of ~ $1.5 billion5 • Corporate & Other adjusted loss of $750 – $850 million • Effective tax rate to be between 24-26% Macro Assumptions Near-Term1 Targets and Corporate Guidance Key Sensitivities Adjusted Earnings Impact from Rates $ in millions 2024 2025 2026 50 bps declining interest rate scenario6 ($50) ($96) ($144) 50 bps rising interest rate scenario6 $65 $102 $148 10 bps increase in SOFR7 $8 $3 $2 10 bps decrease in SOFR7 ($8) ($2) ($2) 1 One to three years. 2 Excluding AOCI other than FCTA and total notable items. 3 2-year average excluding total notable items. 4 Excluding total notable items related to direct expenses and PRT. 5 Pre-tax. 6 See pages 18 and 19 in the Appendix for more information. 7 Increase/decrease of 10 basis points from base for interest rates shorter than 1 year; no change in longer-term interest rates.
13 2022 2023 2024 Expected VII average asset balances and key drivers ($ in billions) Private Equity Real Estate and Other Funds Average Asset Balance • Near-term annual return assumptions: – Private equity: 7-10% – Real estate and other funds: 5-7% • Private equity and real estate and other funds remain pressured in 1Q24 • VII includes prepayment fees on fixed maturity securities and mortgage loans $18.0 $19.7$18.9 $14.5 $5.2 $14.5 $4.4 $14.0 $4.0 Key Drivers
14 Near-Term Guidance • Adjusted premiums, fees and other revenues (PFOs) expected to grow 4-6%1 • Group Life mortality ratio of 85.7% in 2023; target of 84-89% • Group Non-Medical Health interest adjusted benefit ratio of 71.6% in 2023; target of 69-74% • Liability exposures2 expected to grow 2-4% annually • Investment spread3 of 125 bps in 2023; expected to be 115-140 bps in 2024 • Adjusted PFOs expected to decline by 13-15% in 2024, then 4-6% annually thereafter • Adjusted earnings of $700 - $900 million in 2024 Group Benefits Retirement and Income Solutions MetLife Holdings 1 Excludes approximately $0.3 billion of 2023 excess premiums from participating group life contracts. 2 Includes future policy benefits, policyholder account liabilities, and separate account liabilities, as well as notional amounts not recorded on MetLife's balance sheet. 3 Average annualized general account spread.
15 Near-Term Guidance1 • Mid single-digit sales growth • General account assets under management2 to grow at mid single-digits • Adjusted earnings expected to grow ~20% in 2024 and mid single-digit growth in outer years • High single-digit growth in adjusted PFOs • Adjusted earnings growth of high single digits • Sales growth of mid-to-high single-digits • Adjusted PFOs growth of mid single-digits • Adjusted earnings run-rate of $60 - $65 million per quarter in 2024 • Adjusted earnings expected to grow mid single-digits in 2025-2026 Asia Latin America EMEA 1 Sales and AUM growth rates on a constant currency basis; adjusted earnings and PFOs growth rates on a reported basis, unless otherwise noted. 2 Excludes fair value adjustments and includes operating joint ventures.
Appendix
17 1 Excludes MetLife Holdings; Value of New Business is the present value of future profits net of the cost of capital and time value of guarantees from new sales. Value of new business1 $3.8 $3.8 $3.2 $2.8 $3.7 $2.1 $1.8 $1.9 $1.9 $2.3 Capital Deployed Value of New Business 2018 2019 2020 2021 2022 ($ in billions) Internal Rate of Return Payback Period 15% 7 Years 15% 7 Years 17% 6 Years 17% 6 Years 17% 6 Years
18 12/31/23 12/31/24 12/31/25 12/31/26 Base Declining Rate Base Declining Rate Base Declining Rate Base Declining Rate SOFR1 5.38% 5.38% 3.99% 3.49% 3.08% 2.58% 3.03% 2.53% 10-Year U.S. Treasury1 3.88% 3.88% 3.84% 3.34% 3.93% 3.43% 4.04% 3.54% 30-Year U.S. Treasury1 4.03% 4.03% 3.97% 3.47% 3.97% 3.47% 3.99% 3.49% Interest Rates: Base vs. Declining Rate Scenario 1 Base rates based on forward curve as of December 31, 2023.
19 12/31/23 12/31/24 12/31/25 12/31/26 Base Rising Rate Base Rising Rate Base Rising Rate Base Rising Rate SOFR1 5.38% 5.38% 3.99% 4.49% 3.08% 3.58% 3.03% 3.53% 10-Year U.S. Treasury1 3.88% 3.88% 3.84% 4.34% 3.93% 4.43% 4.04% 4.54% 30-Year U.S. Treasury1 4.03% 4.03% 3.97% 4.47% 3.97% 4.47% 3.99% 4.49% Interest Rates: Base vs. Rising Rate Scenario 1 Base rates based on forward curve as of December 31, 2023.
20 Key Sensitivities • 1% change in Group Life mortality ratio translates to ~$75 million of adjusted earnings1 • 1% change in Group Non-Medical Health interest adjusted benefit ratio translates to ~$90 million of adjusted earnings1 • Roughly 70% of the separate account (SA) assets are in equities • +/- 10% change in SA returns translates to ~$30 million ongoing annual impact to adjusted earnings Group Benefits Retirement and Income Solutions MetLife Holdings Impact on $ in millions Change Adjusted Earnings1 SOFR2, 3 +10 bps +$7 trending to 0 -10 bps -$7 trending to 0 U.S. Treasury4 +10 bps +$4 -10 bps -$4 • $1 billion of PRT sales translates to $8-10 million of adjusted earnings1 1 Annual impact. 2 SOFR is used as a proxy for all short-term funding rates 3 months or less; change from base rates, no change in other interest rates. 3 This sensitivity holds for a rate change of +/- 50 basis points. 4 Parallel shift in base scenario U.S. Treasury rates from 1 to 30 years. No change in other interest rates.
21 Key Sensitivities Asia Latin America EMEA 1 Higher yields increase adjusted earnings and lower regulatory ratios. 2 Higher yields increase adjusted earnings and improve regulatory ratios. 3 The ProVida encaje is capital required by Superintendencia de Pensiones. The encaje is invested in the same manner as the total pension fund, and the investment income is included in adjusted earnings. Annual Impact on Regulatory $ in millions Change Adjusted Earnings Ratios (%) Parallel shift in yield curve: Japan - UST1 +/-10 bps $1-2 10-15% Japan - JPY1 +/-10 bps $1-2 5-10% Korea2 +/-10 bps $0-1 0-5% Annual Impact on $ in millions Change Adjusted Earnings Mexican peso to U.S. dollar 1% $6 Chilean peso to U.S. dollar 1% $3 Annual return on the ProVida encaje3 1% $3 Annual Impact on $ in millions Change Adjusted Earnings Euro to U.S. Dollar 1% $1.3 British Pound to U.S. Dollar 1% $0.6 Romania Leu to U.S. Dollar 1% $0.2 Egyptian Pound to U.S. Dollar 1% $0.1 Turkish Lira to U.S. Dollar 1% $0.1
22 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,” “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, 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.
23 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 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; (xv) expense ratio; (xvi) direct expense ratio, excluding total notable items related to direct expenses and PRT; and (xvi) expense ratio; and (xvii) free cash flows of all holding companies. (xvii) MeLife, Inc. (parent company) net cash provided by (used in) operating activities.
24 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.
25 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 and exclude asymmetrical accounting associated with in-force reinsurance. • 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, (iii) asymmetrical accounting associated with in-force reinsurance, and (iv) 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 and asymmetrical accounting associated with in-force reinsurance. 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).
26 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 expenses are comprised of employee-related costs, third-party staffing costs, and general and administrative expenses. • Direct expense ratio, excluding total notable items related to direct expenses and PRT: adjusted direct expenses, excluding total notable items related to direct expenses, divided by adjusted premiums, fees and other revenues, excluding PRT. • Adjusted expense ratio: adjusted other expenses, net of adjusted capitalization of DAC, divided by adjusted premiums, fees and other revenues. • Adjusted expense ratio, excluding total notable items related to adjusted other expenses and PRT: adjusted other expenses, net of adjusted capitalization of DAC, excluding total notable items related to adjusted other expenses, divided by adjusted premiums, fees and other revenues, excluding PRT. General Account (GA) assets under management (GA AUM) GA AUM is used by MetLife to describe assets in its GA investment portfolio. GA AUM is stated at estimated fair value and 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, mortgage loans originated for third parties and certain other invested assets. Mortgage loans, net of mortgage loans originated for third parties (“net mortgage loans”) (including commercial (“net commercial mortgage loans”), agricultural ("net agricultural mortgage loans") and residential mortgage loans) and real estate equity (including real estate and real estate joint ventures) included in 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 net 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 net 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. Asia GA AUM is stated at estimated fair value and is comprised of Asia GA total investments, the portion of the Asia GA investment portfolio classified within assets held-for-sale and cash and cash equivalents, excluding policy loans, contractholder-directed equity securities, fair value option securities, mortgage loans originated for third parties and certain other invested assets. Mortgage loans, net of mortgage loans originated for third parties ("net mortgage loans") (including commercial ("net commercial mortgage loans"), agricultural ("net agricultural mortgage loans") and residential mortgage loans) and real estate equity (including real estate and real estate joint ventures) included in Asia GA AUM (at net asset value, net of deduction for encumbering debt) have been adjusted from carrying value to estimated fair value. At the segment level, intersegment balances (intercompany activity, primarily related to investments in subsidiaries, that eliminate at the MetLife consolidated level) are excluded from Asia GA AUM. Asia GA AUM (at amortized cost) excludes the following adjustments: (i) unrealized gain (loss) on investments carried at estimated fair value and (ii) adjustments from carrying value to estimated fair value on net mortgage loans (including net commercial mortgage loans, net agricultural mortgage loans and residential mortgage loans) and real estate and real estate joint ventures. Asia GA AUM (at amortized cost) is presented net of related allowance for credit loss.
27 Explanatory Note on Non-GAAP and Other Financial Information (Continued) Statistical sales information: • 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. • 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. • 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. • 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.
28 Reconciliation of Net Income (Loss) Available to MetLife, Inc.'s Common Shareholders to Adjusted Earnings Available to Common Shareholders FY23 4Q23 4Q22 Earnings Per Weighted Average Common Share Diluted1 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 $ 1,380 $ 1.81 $ 574 $ 0.77 $ 1,549 $ 1.96 Adjustments from net income (loss) available to MetLife, Inc.'s common shareholders to adjusted earnings available to common shareholders: Less: Net investment gains (losses) (2,824) (3.70) (174) (0.23) 350 0.44 Less: Net derivative gains (losses) (2,140) (2.81) 149 0.20 (104) (0.13) Less: Market risk benefit remeasurement gains (losses) 994 1.30 (431) (0.58) 512 0.65 Less: Other adjustments to net income (loss) (1,185) (1.56) (330) (0.45) (317) (0.40) Less: Provision for income tax (expense) benefit 1,034 1.36 6 0.01 (149) (0.19) Add: Net income (loss) attributable to noncontrolling interests 24 0.03 7 0.01 3 — Adjusted earnings available to common shareholders 5,525 7.25 1,361 1.83 1,260 1.59 Less: Total notable items (62) (0.08) (76) (0.10) — — Adjusted earnings available to common shareholders, excluding total notable items $ 5,587 7.33 $ 1,437 1.93 $ 1,260 $ 1.59 Adjusted earnings available to common shareholders on a constant currency basis $ 5,525 $ 7.25 $ 1,361 $ 1.83 $ 1,278 $ 1.62 Adjusted earnings available to common shareholders, excluding total notable items, on a $ 5,587 $ 7.33 $ 1,437 $ 1.93 $ 1,278 $ 1.62 constant currency basis Weighted average common shares outstanding - diluted 762.3 743.4 790.2 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.
29 Reconciliation to Adjusted Earnings Available to Common Shareholders, Excluding Total Notable Items 4Q23 Group Benefits1 Retirement & Income Solutions1 Asia Latin America EMEA MetLife Holdings1 Corporate & Other1 (In millions) Adjusted earnings available to common shareholders $ 466 $ 421 $ 296 $ 207 $ 47 $ 156 $ (232) Less: Total notable items — — — — — — (76) Adjusted earnings available to common shareholders, excluding total notable items $ 466 $ 421 $ 296 $ 207 $ 47 $ 156 $ (156) Adjusted earnings available to common shareholders, on a constant currency basis $ 296 $ 207 $ 47 Adjusted earnings available to common shareholders, excluding total notable items on a constant currency basis $ 296 $ 207 $ 47 4Q22 Group Benefits1 Retirement & Income Solutions1 Asia Latin America EMEA MetLife Holdings1 Corporate & Other1 (In millions) Adjusted earnings available to common shareholders $ 392 $ 381 $ 265 $ 184 $ 64 $ 184 $ (210) Less: Total notable items — — — — — — — Adjusted earnings available to common shareholders, excluding total notable items $ 392 $ 381 $ 265 $ 184 $ 64 $ 184 $ (210) Adjusted earnings available to common shareholders, on a constant currency basis $ 267 $ 200 $ 64 Adjusted earnings available to common shareholders, excluding total notable items on a constant currency basis $ 267 $ 200 $ 64 1Results on a constant currency basis are not included as constant currency impact is not significant.
30 Reconciliation of Net Investment Income to Adjusted Net Investment Income FY21 FY22 FY23 4Q22 4Q23 (In millions) Net investment income $ 21,395 $ 15,916 $ 19,908 $ 4,464 $ 5,366 Less: Adjustments to net investment income Investment hedge adjustments (895) (976) (1,012) (277) (253) Unit-linked contract income 952 (1,298) 1,183 209 580 Other adjustments (9) (10) (12) 2 (8) Divested businesses 67 11 — — — Adjusted net investment income $ 21,280 $ 18,189 $ 19,749 $ 4,530 $ 5,047
31 Reconciliation of Premiums, Fees and Other Revenues to Adjusted Premiums, Fees and Other Revenues 1Q22 2Q22 3Q22 4Q22 FY22 1Q23 2Q23 3Q23 4Q23 FY23 (In millions) Premiums, fees and other revenues $ 12,589 $ 13,543 $ 19,335 $ 10,898 $ 56,365 $ 11,517 $ 13,587 $ 13,170 $ 13,687 $ 51,961 Less: Adjustments to premiums, fees and other revenues: Asymmetrical and non-economic accounting — — — — — — — — 29 29 Other adjustments 47 48 40 25 160 (3) (7) (11) (13) (34) Divested businesses 55 — — — 55 — — — — — Adjusted premiums, fees and other revenues $ 12,487 $ 13,495 $ 19,295 $ 10,873 $ 56,150 $ 11,520 $ 13,594 $ 13,181 $ 13,671 $ 51,966
32 Expense Detail and Ratios 1Q23 2Q23 3Q23 4Q23 FY23 (In millions, except ratio data) Reconciliation of Capitalization of DAC to Adjusted Capitalization of DAC Capitalization of DAC $ (718) $ (729) $ (742) $ (728) $ (2,917) Less: Divested businesses — — — — — Adjusted capitalization of DAC $ (718) $ (729) $ (742) $ (728) $ (2,917) Reconciliation of Other Expenses to Adjusted Other Expenses Other expenses $ 3,057 $ 3,133 $ 3,189 $ 3,277 $ 12,656 Less Adjustments to other expenses: Other adjustments 16 11 21 7 55 Divested businesses 11 9 9 9 38 Adjusted other expenses $ 3,030 $ 3,113 $ 3,159 $ 3,261 $ 12,563 Other Detail and Ratios Other expenses, net of capitalization of DAC $ 2,339 $ 2,404 $ 2,447 $ 2,549 $ 9,739 Premiums, fees and other revenues $ 11,517 $ 13,587 $ 13,170 $ 13,687 $ 51,961 Expense ratio 20.3 % 17.7 % 18.6 % 18.6 % 18.7 % Direct expenses $ 1,387 $ 1,415 $ 1,447 $ 1,559 $ 5,808 Less: Total notable items related to direct expenses — — — 96 96 Direct expenses, excluding total notable items related to direct expenses $ 1,387 $ 1,415 $ 1,447 $ 1,463 $ 5,712 Adjusted other expenses $ 3,030 $ 3,113 $ 3,159 $ 3,261 $ 12,563 Adjusted capitalization of DAC (718) (729) (742) (728) (2,917) Adjusted other expenses, net of adjusted capitalization of DAC $ 2,312 $ 2,384 $ 2,417 $ 2,533 $ 9,646 Less: Total notable items related to adjusted other expenses — — — 96 96 Adjusted other expenses, net of adjusted capitalization of DAC, excluding total notable items related to adjusted other expenses $ 2,312 $ 2,384 $ 2,417 $ 2,437 $ 9,550 Adjusted premiums, fees and other revenues $ 11,520 $ 13,594 $ 13,181 $ 13,671 $ 51,966 Less: PRT (21) 2,024 1,461 1,860 5,324 Adjusted premiums, fees and other revenues, excluding PRT $ 11,541 $ 11,570 $ 11,720 $ 11,811 $ 46,642 Direct expense ratio 12.0 % 10.4 % 11.0 % 11.4 % 11.2 % Direct expense ratio, excluding total notable items related to direct expenses and PRT 12.0 % 12.2 % 12.3 % 12.4 % 12.2 % Adjusted expense ratio 20.1 % 17.5 % 18.3 % 18.5 % 18.6 % Adjusted expense ratio, excluding total notable items related to adjusted other expenses and PRT 20.0 % 20.6 % 20.6 % 20.6 % 20.5 %
33 Expense Detail and Ratios 1Q22 2Q22 3Q22 4Q22 FY22 (In millions, except ratio data) Reconciliation of Capitalization of DAC to Adjusted Capitalization of DAC Capitalization of DAC $ (652) $ (637) $ (626) $ (699) $ (2,614) Less: Divested businesses (11) — — — (11) Adjusted capitalization of DAC $ (641) $ (637) $ (626) $ (699) $ (2,603) Reconciliation of Other Expenses to Adjusted Other Expenses Other expenses $ 2,912 $ 2,868 $ 2,875 $ 3,078 $ 11,733 Less Adjustments to other expenses: Other adjustments 47 60 47 37 191 Divested businesses 32 8 13 21 74 Adjusted other expenses $ 2,833 $ 2,800 $ 2,815 $ 3,020 $ 11,468 Other Detail and Ratios Other expenses, net of capitalization of DAC $ 2,260 $ 2,231 $ 2,249 $ 2,379 $ 9,119 Premiums, fees and other revenues $ 12,589 $ 13,543 $ 19,335 $ 10,898 $ 56,365 Expense ratio 18.0 % 16.5 % 11.6 % 21.8 % 16.2 % Direct expenses $ 1,332 $ 1,335 $ 1,342 $ 1,481 $ 5,490 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 $ 5,490 Adjusted other expenses $ 2,833 $ 2,800 $ 2,815 $ 3,020 $ 11,468 Adjusted capitalization of DAC (641) (637) (626) (699) (2,603) Adjusted other expenses, net of adjusted capitalization of DAC $ 2,192 $ 2,163 $ 2,189 $ 2,321 $ 8,865 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 $ 8,865 Adjusted premiums, fees and other revenues $ 12,487 $ 13,495 $ 19,295 $ 10,873 $ 56,150 Less: PRT 1,258 2,564 8,466 (69) 12,219 Adjusted premiums, fees and other revenues, excluding PRT $ 11,229 $ 10,931 $ 10,829 $ 10,942 $ 43,931 Direct expense ratio 10.7 % 9.9 % 7.0 % 13.6 % 9.8 % Direct expense ratio, excluding total notable items related to direct expenses and PRT 11.9 % 12.2 % 12.4 % 13.5 % 12.5 % Adjusted expense ratio 17.6 % 16.0 % 11.3 % 21.3 % 15.8 % Adjusted expense ratio, excluding total notable items related to adjusted other expenses and PRT 19.5 % 19.8 % 20.2 % 21.2 % 20.2 %
34 Condensed Reconciliation of Net Cash Provided by Operating Activities of MetLife, Inc. to Free Cash Flow of All Holding Companies FY23 FY22 (In billions, except ratios) MetLife, Inc. (parent company only) net cash provided by operating activities $ 4.2 $ 4.4 Adjustments from net cash provided by operating activities to free cash flow: Add: Incremental debt to be at or below target leverage ratios — 1.0 Add: Adjustments from net cash provided by operating activities to free cash flow1 (0.7) (0.2) MetLife, Inc. (parent company only) free cash flow 3.5 5.2 Other MetLife, Inc. holding companies free cash flow2 0.1 (0.5) Free cash flow of all holding companies $ 3.6 $ 4.7 Ratio of net cash provided by operating activities to consolidated net income (loss) available to MetLife, Inc.'s common shareholders: MetLife, Inc. (parent company only) net cash provided by operating activities $ 4.2 $ 4.4 Consolidated net income (loss) available to MetLife, Inc.'s common shareholders $ 1.4 $ 5.1 Ratio of net cash provided by operating activities (parent company only) to consolidated net income (loss) available to MetLife, Inc.'s common shareholders3 303 % 87 % Ratio of free cash flow to adjusted earnings available to common shareholders: Free cash flow of all holding companies4 $ 3.6 $ 4.7 Consolidated adjusted earnings available to common shareholders4 $ 5.5 $ 5.8 Ratio of free cash flow of all holding companies to consolidated adjusted earnings available to common shareholders4 66 % 81 % 1Adjustments include: (i) capital contributions to subsidiaries; (ii) returns of capital from subsidiaries; (iii) repayments on and (issuances of) loans to subsidiaries, net; and (iv) investment portfolio and derivatives changes and other, net. 2Components include: (i) dividends and returns of capital from subsidiaries; (ii) capital contributions to subsidiaries; (iii) repayments on and (issuances of) loans to subsidiaries, net; (iv) other expenses; (v) dividends and returns of capital to MetLife, Inc. and (vi) investment portfolio and derivative changes and other, net. 3Including the free cash flow of other MetLife, Inc. holding companies of $0.1 billion and ($0.5) billion for the years ended December 31, 2023 and 2022, respectively, in the numerator of the ratio, this ratio, as adjusted, would be 311% and 77%, respectively. 4i) Consolidated adjusted earnings available to common shareholders for the year ended December 31, 2023, was negatively impacted by notable items, related to litigation reserves and settlement costs of ($0.1) billion, net of income tax, offset by actuarial assumption review and other insurance adjustments of $0.01 billion, net of income tax. Excluding these notable items from the denominator of the ratio, the adjusted free cash flow ratio for 2023, would be 65%. ii) Consolidated adjusted earnings available to common shareholders for the year ended December 31, 2022, was positively impacted by notable items, related to actuarial assumption review and other insurance adjustments of $0.1 billion, net of income tax. Excluding these notable items from the denominator of the ratio, the adjusted free cash flow ratio for 2022, would be 82%.
