 |
|
|
|
|
|
| Financial Results (amounts
in millions, except per share data) |
| |
|
|
|
|
| (Years ended December 31) |
|
2006 |
|
2005 |
|
| Premiums and fees |
|
$31,198 |
|
$28,688 |
| Net investment income |
|
17,566 |
|
15,066 |
| Other revenues |
|
1,362 |
|
1,271 |
| Total |
|
$50,126 |
|
$45,025 |
|
| Policyholder benefits and dividends |
|
$28,022 |
|
$27,105 |
| Interest credited to policyholder account balances |
|
5,240 |
|
3,938 |
| Other expenses |
|
11,028 |
|
9,271 |
| Total |
|
$44,290 |
|
$40,314 |
|
| Operating earnings available to common shareholders (1) |
|
$4,018 |
|
$3,271 |
| Net investment gains (losses), net of income tax (2) |
|
2,035 |
|
1,257 |
| Adjustments related to net investment gains (losses),
net of income tax (3) |
|
75 |
|
(45) |
| Discontinued operations, net of income tax (4) |
|
32 |
|
168 |
| Net income available to common
shareholders |
|
$6,159 |
|
$4,651 |
| Preferred stock dividends |
|
134 |
|
63 |
| Net income |
|
$6,293 |
|
$4,714 |
|
| Earnings per common share calculation |
|
|
|
|
| Weighted average common shares outstanding - diluted |
|
770.7 |
|
755.3 |
| Operating earnings available to common shareholders
per common share - diluted (1) |
|
$5.21 |
|
$4.33 |
| Net income available to common
shareholders per common share - diluted |
|
$7.99 |
|
$6.16 |
|
| Financial Strength Ratings for
Metropolitan Life Insurance Company* |
|
|
|
|
| Moody’s Investors Service |
|
Aa2 |
|
|
| Standard & Poor’s |
|
AA |
|
|
| A.M. Best Company, Inc. |
|
A+ |
|
|
| Fitch Ratings |
|
AA |
|
|
| *Ratings as of March 1, 2007. |
|
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|
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| This annual review is not a substitute for MetLife, Inc.'s annual report on Form 10-K or the annual report to shareholders. If you would like to see a complete set of financial statements for MetLife, Inc., visit www.metlife.com and select "Investor Relations." |
| (1) |
MetLife analyzes its performance using financial measures, including operating earnings, operating earnings available to common shareholders and operating earnings available to common shareholders per diluted common share that are not based on generally accepted accounting principles (“GAAP”). Operating earnings is defined as GAAP net income excluding net investment gains and losses, net of income tax, adjustments related to net investment gains and losses, net of income tax and discontinued operations other than discontinued real estate, net of income tax. Scheduled periodic settlement payments on derivative instruments not qualifying for hedge accounting treatment are included in operating earnings. Operating earnings available to common shareholders is defined as operating earnings less preferred stock dividends, which are recorded in Corporate & Other. Operating earnings available to common shareholders per diluted common share is calculated by dividing operating earnings available to common shareholders by the number of weighted average diluted common shares outstanding for the period indicated. MetLife believes these measures enhance the understanding and comparability of its performance by excluding net investment gains and losses, net of income tax, and adjustments related to net investment gains and losses, net of income tax, both of which can fluctuate significantly from period to period, and discontinued operations other than discontinued real estate, net of income tax, thereby highlighting the results from operations and the underlying profitability drivers of the business. Operating earnings, operating earnings available to common shareholders and operating earnings available to common shareholders per diluted common share should not be viewed as substitutes for GAAP net income, GAAP net income available to common shareholders and GAAP net income available to common shareholders per diluted common share, respectively. Reconciliations of operating earnings to GAAP net income, operating earnings available to common shareholders to GAAP net income available to common shareholders and operating earnings available to common shareholders per diluted common share to GAAP net income available to common shareholders per diluted common share, the most directly comparable GAAP measures, are included in MetLife, Inc.’s fourth quarter and full year 2006 earnings press release and quarterly financial supplement. Both documents can be found on MetLife’s Investor Relations Web page at http://investor.metlife.com. For the press release, click on “News & Events” and then “Financial Press Releases.” For the quarterly financial supplement, click on “Financial Information” and then “Quarterly Financial Supplement.” The non-GAAP measures used in this Annual Review should not be viewed as substitutes for the most directly comparable GAAP measures. |
| (2) |
Net investment gains (losses), net of income tax, includes gains (losses) on sales of real estate and real estate joint ventures related to discontinued operations of $3,079 million and $1,369 million for the year ended December 31, 2006 and 2005, respectively, and excludes gains (losses) of $186 million and $63 million for the year ended December 31, 2006 and 2005, respectively, from scheduled periodic settlement payments on derivative instruments not qualifying for hedge accounting treatment. |
| (3) |
Adjustments related to net investment gains (losses), net of income tax, include amortization of unearned revenue and deferred policy acquisition costs, adjustments to the policyholder dividend obligation and amounts allocable to certain participating contracts. |
| (4) |
Discontinued operations, net of income tax, excludes gains (losses) from discontinued operations related to real estate and real estate joint ventures related to discontinued operations. |
| (5) |
Excludes net income from Corporate & Other. |
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