MetLife

MetLife’s strong brand name, competitive product line and financial strength continue to benefit the company in the highly competitive retail insurance and annuity marketplace. In 2006, Individual Business continued to demonstrate this as it delivered $1.5 billion in operating earnings available to common shareholders (as defined in Financial Highlights), a 23% increase over 2005’s results. This achievement was due to the business’s continued focus on maximizing MetLife’s market-leading product portfolio, broad distribution and leading client service.

Annuities in general continue to receive sustained attention among MetLife’s target markets as those seeking guaranteed income for life look to companies that can offer competitive features, strong rates and high financial strength ratings. MetLife is clearly a leader on all these fronts. During 2006, Individual Business leveraged and grew the broad distribution and wholesaling team that was acquired through the Travelers transaction while continuing to introduce new living benefits, such as the Lifetime Withdrawal Guarantee, which is expected to be an attractive feature in 2007.

In 2006, the environment for the life insurance market remained challenging. Because of this, MetLife continues to maintain a long-term vision of where the business is headed but also made some notable changes in 2006 that will benefit both the company and its clients. In addition to introducing a more competitive underwriting approach while maintaining appropriate risk standards, Individual Business also adopted the Swiss Re Life Underwriting Manual and refreshed the enterprise foreign travel program. These, and other initiatives, were undertaken based on input received directly from the company’s sales channels. Moving forward, MetLife is committed to offering competitive products, but is just as dedicated to focusing on the long-term and, for that and many other reasons, will continue to put nothing but quality business on its books.

At the same time, MetLife’s Independent Distribution Group (IDG) seeks to continue expanding relationships with major banks and brokerage houses. In fact, the IDG’s wholesaling team has more than doubled since 2002. In the year ahead, bank distribution for both fixed and variable annuities will become an increasingly important outlet for MetLife’s independent channel, as well as independent financial planners.

“In today’s marketplace, there is a sea of product options. Financial advisors are looking to partner with firms that want to partner with them. They are looking to work with people who are reliable, credible and carry out their business with integrity. As a wholesaler for MetLife’s annuities, I'm placed several dozen paces ahead of competitors as a result of MetLife’s standing and commitment to these qualities. When independent advisors and brokers see that it is MetLife behind the products and guarantees, it instills a level of confidence in our relationship with them, which results in true partnership and success,” said Joshua Gerry, wholesaler for Independent Distribution.

At the same time, in a continued commitment to the value of face-to-face distribution, MetLife’s Agency Distribution Group has grown its talent base of financial services representatives. Total salespower increased in 2006, as did both the retention of agents and per agent productivity. With a continued emphasis on recruiting in a variety of multi-cultural markets, the individuals who make up the MetLife and New England Financial sales channels are increasingly being positioned as retirement specialists in their local markets. MetLife’s representatives truly represent the face of America as they partner with their clients to serve as their trusted advisors on a variety of financial issues.

In 2007, Individual Business has a number of strong attributes, including its leading market position and diverse distribution, that will enable it to continue to achieve further successes in the marketplace.

MetLife Resources

MetLife's enterprise-wide retirement expertise is well known in both the individual and institutional markets, and increasingly among non-profit organizations as well. MetLife Resources' expertise in tailoring retirement solutions for healthcare, education, non-profit and governmental organizations has made MetLife a leader in the 403(b) and 457 markets. Early in 2006, MetLife Resources completed the integration of the acquired CitiStreet Associates business. As a result of that transaction, MetLife Resources is now the number two provider in the K-12 retirement plan market and the fifth largest provider serving the 403(b) market.

With more than 725 representatives and $38 billion in total assets, MetLife Resources continues to grow. In 2006, MetLife launched a Roth 403(b) offering for the companys non-profit business clients to provide plan participants with additional options and flexibility when it comes to saving for retirement. In addition, during the year, MetLife Resources launched MetLife ComplyNow in response to the pending Federal Treasury Department 403(b) income tax regulations. MetLife ComplyNow is a simple, no-fee program that K-12 school districts can implement to help meet current 403(b) program administration requirements, as well as those believed to be necessitated by the proposed regulations.

"MetLife's institutional relationships have enabled us to become the onsite financial planning firm for our regions largest and most respected companies. The relationship gets us in the door, but it's MetLife's deep suite of products that allows our financial services representatives to serve as trusted advisors to the employees at those companies, helping them achieve their dreams."

–Paul Blanco managing director, Connecticut's Barnum Financial Group