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| 2004 Highlights* |
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#1 life insurer in Mexico |
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#1 variable universal life writer in South Korea |
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#3 annuities writer in Chile |
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#4 group life insurer in India |
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#4 life insurer in Brazil (in new business growth) |
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| Business Profile |
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Operations in Argentina, Brazil, Chile, China,
Hong Kong, India, Indonesia, Mexico, South Korea, Taiwan and
Uruguay |
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Serves more than 9 million customers around the world |
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| MetLife International’s story is all
about growth and building for the future, while at the same time delivering
reasonable and dependable profits. 2004 was a solid year for International,
with $156 million in operating earnings and coverages on more than
9 million people outside the U.S. |
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| Focusing on attractive emerging markets in
both developed and emerging economies, MetLife International is building
a global MetLife brand. In 2004, very strong sales were the hallmark
of International, up 47% over the prior year and well-diversified
by country. |
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| In 2004, International’s career agency,
broker and group insurance businesses remained the core of International’s
operations, accounting for well over 85% of International sales. In
the last two years MetLife has begun to build alternative distribution
as a key part of its International strategy and in 2004, significantly
expanded that part of the business. Telemarketing was launched in
China, India, Indonesia and Mexico, while in South Korea, MetLife
pioneered its first television home shopping distribution channel. Bancassurance was launched in Brazil, and
expanded in Taiwan and South Korea.
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| Several key markets underlie MetLife
International’s strategy for the future. The first is Mexico,
where in 2002 MetLife bought Aseguradora Hidalgo and became the largest
life insurer in the country. Today, Mexico is MetLife’s most
important country outside the U.S. in terms of earnings. In 2004,
MetLife was approved to establish a pension company in Mexico and
MetLife plans to enter the market in 2005. MetLife also plans to grow
the size and profitability of its private institutional business in
Mexico. |
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| The South Korean market, the 7th
largest insurance market in the world, continues to be attractive.
During 2004, MetLife successfully completed the professionalization
of its sales agents, and grew the agency force from 1,602 to 3,491.
MetLife plans on continuing to grow the professional sales force and
expanding telemarketing and bancassurance. South Korea has led International
in insurance sales and MetLife was the leading seller of variable
universal life (VUL) there during 2004, as well as the first to introduce
the VUL product in South Korea, which accounted for approximately
60% of MetLife International’s 2004 sales in South Korea. In
2004, MetLife acquired a 34% stake in SEIAK, a South Korean asset
management company. |
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| During 2004, MetLife bought a 49% stake in
a Chilean brokerage operation, BancoEstado Corredora de Seguros, which
included a long-term arrangement to distribute products through BancoEstado.
BancoEstado serves a client base of more than eight million through
the most extensive network of bank branches in Chile. This alliance
will help MetLife grow its customer base in Chile, as well as its
individual and group life insurance businesses, and will diversify
the company’s portfolio of products. For group insurance, it
raises MetLife’s position from 17th to 2nd based on total premium. |
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| Brazil shows excellent promise as well. MetLife
is the 4th fastest growing life insurer in Brazil, capturing 12% of
all new life business written. MetLife plans to launch worksite marketing
initiatives for government workers in Brazil. MetLife also launched
new bank distribution in Brazil through an agreement made recently
with Bank Boston. |
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| MetLife’s business in India continues
to grow, and in 2004 MetLife successfully launched its group business.
Within seven months of launch, MetLife rose to 4th in this market.
Finally, in 2004 MetLife International successfully launched its China
operation, established a professional agency force there and is currently
piloting a telemarketing program. |
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| An important ingredient in International’s
strategy is to create common systems, platforms and processes and
last year, MetLife made significant progress in standardizing those
platforms in several areas, including customer service, finance, and
investments. |
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| By 2010, International plans to attain leadership
(top 5 in new business sales) in three to six countries, serving 30
million MetLife customers. |
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| *Sources include country trade associations, government
regulatory agencies and company data. |
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