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Third Quarter Results Summary
"Now that we have successfully completed the separation of our U.S.
retail business, we look forward to delivering more predictable earnings
and stronger free cash flow in the protection and fee-based businesses
that form the core of the new MetLife," said
Net derivative losses amounted to
Supplemental slides for the third quarter of 2017, titled "3Q17
Supplemental Slides," are available on the MetLife Investor Relations
website at www.metlife.com
in the Conferences & Presentations section, and in the Form 8-K
Premiums, fees & other revenues were
Operating premiums, fees & other revenues* were
All comparisons of the results for the third quarter of 2017 in the business discussions that follow are with the third quarter of 2016, unless otherwise noted. See third quarter 2017 notable items table that follows at the end of the business discussion section of this release for additional information on notables incurred in the third quarter of 2017.
*Information regarding the non-GAAP and other financial measures included in this news release and the reconciliation of the non-GAAP financial measures to GAAP measures is provided in the Non-GAAP and Other Financial Disclosures discussions, as well as in the tables that accompany this news release and/or the Third Quarter 2017 Financial Supplement (which is available on the MetLife Investor Relations web page at www.metlife.com).
The conference call will be available for replay via telephone and the
internet beginning at
Non-GAAP and Other Financial Disclosures
In this news release,
Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures are included in this earnings news release and in this period's quarterly financial supplement, which is available at www.metlife.com.
MetLife's definitions of the various non-GAAP and other financial measures discussed in this news release may differ from those used by other companies:
Operating earnings and related measures
These measures are used by management to evaluate performance and
allocate resources. Consistent with GAAP guidance for segment reporting,
operating earnings is also MetLife's GAAP measure of segment
performance. Operating earnings and other financial measures based on
operating earnings are also the measures by which
Operating earnings is defined as operating revenues less operating expenses, both net of income tax. Operating earnings available to common shareholders is defined as operating earnings less preferred stock dividends.
Operating revenues and operating expenses
These financial measures, along with the related operating premiums,
fees and other revenues, focus on our primary businesses principally by
excluding the impact of market volatility, which could distort trends,
and revenues and costs related to non-core products and certain entities
required to be consolidated under GAAP. Also, these measures exclude
results of discontinued operations under GAAP and other businesses that
have been or will be sold or exited by
The following additional adjustments are made to revenues, in the line items indicated, in calculating operating revenues:
The following additional adjustments are made to expenses, in the line items indicated, in calculating operating expenses:
Operating earnings also excludes the recognition of certain contingent assets and liabilities that could not be recognized at acquisition or adjusted for during the measurement period under GAAP business combination accounting guidance.
The tax impact of the adjustments mentioned above are calculated net of the U.S. or foreign statutory tax rate, which could differ from the company's effective tax rate. Additionally, the provision for income tax (expense) benefit also includes the impact related to the timing of certain tax credits, as well as certain tax reforms.
Investment portfolio gains (losses) and derivative gains (losses)
These are measures of investment and hedging activity. Investment portfolio gains (losses) principally excludes amounts that are reported within net investment gains (losses) but do not relate to the performance of the investment portfolio, such as gains (losses) on sales and divestitures of businesses or goodwill impairment. Derivative gains (losses) principally excludes earned income on derivatives and amortization of premium on derivatives, where such derivatives are either hedges of investments or are used to replicate certain investments, and where such derivatives do not qualify for hedge accounting. This earned income and amortization of premium is reported within operating earnings and not within derivative gains (losses).
Return on equity, allocated equity, tangible equity and related measures
The following additional information is relevant to an understanding of MetLife's performance results:
This news release may contain or incorporate by reference information that includes or is based upon forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements give expectations or forecasts of future events. These statements can be identified by the fact that they do not relate strictly to historical or current facts. They use words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe" and other words and terms of similar meaning, or are tied to future periods, in connection with a discussion of future operating or financial performance. In particular, these include statements relating to future actions, prospective services or products, future performance or results of current and anticipated services or products, sales efforts, expenses, the outcome of contingencies such as legal proceedings, trends in operations and financial results.
Any or all forward-looking statements may turn out to be wrong. They can
be affected by inaccurate assumptions or by known or unknown risks and
uncertainties. Many such factors will be important in determining the
actual future results of
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