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| 2004 Highlights |
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Operating earnings up 28% over 2003 to $214 million |
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Combined ratio 96.8% |
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| Business Profile |
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Automobile, homeowners, boat, excess liability,
miscellaneous personal property & casualty lines |
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Insures nearly 4 million autos and homes |
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#1 ranking in employer-based markets |
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4,000 independent agencies |
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More than $2.9 billion in premiums for 2004 |
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| MetLife Auto & Home delivered its third
consecutive year of record operating earnings, despite a third quarter
that witnessed four of the most powerful and expensive hurricanes
in U.S. history. On a strong earnings growth trend since 2002, Auto
& Home has consistently achieved 15% compound annual operating
earnings growth. |
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| Auto & Home leveraged its multiple distribution
channel advantage to increase sales by 11% in 2004. Sales growth was
fueled by differentiated products and the continued implementation
of a new sophisticated tiering program that more closely matches risk
to rate. Customer retention climbed 1.4 percentage points to 86.9%.
Its combined ratio improved almost three points from the previous
year to 96.8%, driven by lower frequencies, stable severities and
higher average earned premiums. |
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| In 2005 and beyond, Auto & Home will
be focusing on profitably growing its business by expanding its sales
force through continued pricing sophistication, and leveraging technology.
A priority is improving eBusiness capabilities and supporting agents
to provide even faster, more user-friendly sales and service platforms.
The company plans to expand its property and casualty specialist sales
force by almost 20%, to 650 specialists, and add 1,000 new sales locations
to its current roster of 4,000. Auto & Home's Integrated Marketing
channel, which has grown to 11% of sales, plans more than 25 million
direct mailings in 2005. Group Auto & Home, with over $1 billion
in premium, expects to add one million in eligible participants and
increase sales by 10% in 2005. |
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| Two new products are also planned for launch
in 2005. With its recent appointment as a servicing agent for the
national flood insurance program, Auto & Home will introduce a
new flood insurance product nationally. The company will also roll
out its GrandProtect product—a bundled product that combines
multiple coverages for home, auto, personal excess liability, valuable
items, rental property, recreational vehicles, and boats—to
22 states in 2005. The company expects this product, which combines
the convenience of one package with one bill, one deductible and worldwide
protection and coverage for identity theft, to boost new business
sales in 2005. |
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