MetLife

International continues to play an increasingly important role in MetLife’s overall growth story and delivered $224 million in operating earnings available to common shareholders (as defined in Financial Highlights) in 2006, which was a year characterized by strong fundamental business execution combined with impressive innovation.

The year marked the ongoing successful integration of CitiInsurance around the world and showed just how well MetLife solutions can help meet the needs of customers everywhere.

New Products

The strategy of bringing MetLife core competencies to markets around the world was demonstrated through innovative product development in many countries. For example, the Guaranteed Minimum Withdrawal Benefit (GMWB) annuity in South Korea marks a new generation of offerings for the country where MetLife has a tradition of leading with new and popular products. Similarly, in Japan, MetLife’s latest guaranteed annuity product—GMWB for Life—provides innovative features that meet very specific preferences and market conditions. And, in Mexico, a critical illness cancer product has been launched to build out MetLife’s health-related business there.

Innovative Distribution

Just as important to the continued high growth of International is the way MetLife reaches customers. In South Korea, TV home shopping networks provide a great way to get to a specific desirable customer target. The initial success witnessed in this channel has been adapted and exported to other markets in Asia. In particular, Taiwan and Beijing have also begun using home shopping networks to introduce products. Bank distribution is also a crucial channel for International as strong relationships with banks in many markets provide an excellent means of reaching a broad range of customers. Often, these relationships take the form of creative partnerships—like BancoEstado in Chile, where MetLife has a direct ownership stake in the success of the distribution network as well as benefiting from the sale of our products. MetLife’s expanding global relationship with Citigroup also provides important channels around the world such as risk and protection solutions in markets like the United Kingdom, Belgium and Poland.

‘Building’ in Mexico

MetLife’s largest business outside the U.S. commands a leading market share and a well identified brand presence in Mexico. It was only appropriate that MetLife’s headquarters there match the stature of the operations, which is why MetLife opened a new building in the Polanco district of Mexico City. MetLife’s business in Mexico has strong prospects as International builds on the strong core established in the country to extend distribution, such as worksite marketing, and in the Mexican pension market or AFORE. And more ground is being broken there in a totally immersive brand experience for customers. Outdoor advertising at local mass transit stops, repeated television segments for those in the common areas, educational materials and information about MetLife are provided to customers during their frequent visits to MetLife’s state-of-the-art service centers in downtown Mexico City.

Historic Visits

Shortly after becoming Chairman & CEO in early 2006, Rob Henrikson embarked on a historic trip to the Asia Pacific region to visit MetLife’s operations in China, Japan and South Korea. This was followed by a trip to India later in the year. The visits were marked by celebratory events and important meetings with MetLife’s business leaders and government officials.

A high-impact event featuring participation by Shanghai’s Deputy Mayor and the U.S. Counsel General marked the launch of the MetLife brand in China’s economic capital—Shanghai. In South Korea, the Chairman marked MetLife’s 17th anniversary in the market—the world’s sixth largest life insurance market and the second largest business for MetLife outside of the U.S. In Beijing, he presented important commentary on pensions and the challenges facing all aging societies at the Beijing Mayor’s Global Advisory Council. In Tokyo, Rob met with MetLife’s joint venture partner—Mitsui Sumitomo—to review the extremely successful annuities business there.

While in India, an announcement about business expansion plans helped MetLife to forge a vital relationship with one of India’s largest financial institutions, UTI Bank. This relationship will help MetLife gain rapid access to a large and geographically diverse customer base in this vibrant, high-growth country.

The Chairman's visits to these markets emphasize the growing importance of International for MetLife.

"By using innovative wholesaler models learned from our MLI colleagues in the U.S., we have provided products in a new way for the Japanese market. Since Japan’s population is older and longer-lived than America’s, our products aren’t just popular, they help to solve a big challenge for our aging society."

–Yutaka Chujo, assistant general manager
Corporate Planning and General Affairs, MSI MetLife