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MetLife Announces First Quarter 2022 Results

May 4, 2022

NEW YORK--(BUSINESS WIRE)-- MetLife, Inc. (NYSE: MET) today announced its first quarter 2022 results.

First Quarter Results Summary

  • Net income of $606 million, or $0.73 per share, compared to net income of $290 million, or $0.33 per share, in the first quarter of 2021.
  • Adjusted earnings of $1.7 billion, or $2.08 per share, compared to adjusted earnings of $2.0 billion, or $2.20 per share, in the first quarter of 2021.
  • Book value of $61.55 per share, down 12 percent from $70.08 per share at March 31, 2021.
  • Book value, excluding accumulated other comprehensive income (AOCI) other than foreign currency translation adjustments (FCTA), of $57.12 per share, up 7 percent from $53.16 per share at March 31, 2021.
  • Return on equity (ROE) of 4.3 percent.
  • Adjusted ROE, excluding AOCI other than FCTA, of 14.7 percent.
  • Holding company cash and liquid assets of $4.2 billion at March 31, 2022, which is above the target cash buffer of $3.0 - $4.0 billion.

“Building on our outstanding performance in 2021, MetLife delivered strong financial results in the first quarter of 2022,” said MetLife President and CEO Michel Khalaf. “While global uncertainty persists, we remain laser focused on consistent execution.”

First Quarter 2022 Summary

($ in millions, except per share data)

 

Three months ended
March 31,

 

 

 

2022

 

 

 

2021

 

 

Change

Premiums, fees and other revenues

 

$

12,849

 

 

$

12,349

 

 

4%

Net investment income

 

 

4,284

 

 

 

5,314

 

 

(19)%

Net investment gains (losses)

 

 

(518

)

 

 

134

 

 

 

Net derivative gains (losses)

 

 

(859

)

 

 

(2,235

)

 

 

Total revenues

 

$

15,756

 

 

$

15,562

 

 

 

 

 

 

 

 

 

 

Adjusted premiums, fees and other revenues

 

$

12,732

 

 

$

11,413

 

 

12%

Adjusted premiums, fees and other revenues, excluding pension risk transfers (PRT)

 

$

11,474

 

 

$

11,413

 

 

1%

 

 

 

 

 

 

 

Net income (loss)

 

$

606

 

 

$

290

 

 

109%

Net income (loss) per share

 

$

0.73

 

 

$

0.33

 

 

121%

 

 

 

 

 

 

 

Adjusted earnings

 

$

1,727

 

 

$

1,965

 

 

(12)%

Adjusted earnings per share

 

$

2.08

 

 

$

2.20

 

 

(5)%

Adjusted earnings, excluding total notable items

 

$

1,727

 

 

$

1,965

 

 

(12)%

Adjusted earnings, excluding total notable items per share

 

$

2.08

 

 

$

2.20

 

 

(5)%

 

 

 

 

 

 

 

Book value per share

 

$

61.55

 

 

$

70.08

 

 

(12)%

Book value per share, excluding AOCI other than FCTA

 

$

57.12

 

 

$

53.16

 

 

7%

 

 

 

 

 

 

 

Expense ratio

 

 

17.6

%

 

 

19.0

%

 

 

Direct expense ratio, excluding total notable items related to direct expenses and PRT

 

 

11.7

%

 

 

11.0

%

 

 

Adjusted expense ratio, excluding total notable items related to adjusted other expenses and PRT

 

 

19.2

%

 

 

19.0

%

 

 

 

 

 

 

 

 

 

ROE

 

 

4.3

%

 

 

1.8

%

 

 

Adjusted ROE, excluding AOCI other than FCTA

 

 

14.7

%

 

 

16.5

%

 

 

Adjusted ROE, excluding total notable items (excludes AOCI other than FCTA)

 

 

14.7

%

 

 

16.5

%

 

 

Information regarding the non-GAAP and other financial measures included in this news release and reconciliation of the non-GAAP financial measures to GAAP measures are in “Non-GAAP and Other Financial Disclosures” below and in the tables that accompany this news release.

Supplemental slides for the first quarter of 2022, titled “1Q22 Supplemental Slides,” are available on the MetLife Investor Relations website at https://investor.metlife.com and in the Form 8-K furnished by MetLife to the U.S. Securities and Exchange Commission in connection with this earnings release.

Total Company Discussion

MetLife reported first quarter 2022 premiums, fees and other revenues of $12.8 billion, up 4 percent from the first quarter of 2021. Adjusted premiums, fees and other revenues were $12.7 billion, up 12 percent on a reported basis and up 14 percent on a constant currency basis from the prior-year period.

Net investment income was $4.3 billion, down 19 percent from the first quarter of 2021. The decline in net investment income was driven by unfavorable changes in the estimated fair value of certain securities which do not qualify as separate accounts under GAAP. Adjusted net investment income was $5.0 billion, down 6 percent from the prior-year period, largely driven by lower variable investment income.

Net derivative losses amounted to $859 million, or $679 million after tax during the quarter, driven by an increase in long-term interest rates.

Net income was $606 million, compared to net income of $290 million in the first quarter of 2021, primarily driven by higher derivative losses in the prior-year period. On a per share basis, net income was $0.73, compared to net income of $0.33 in the prior-year period.

MetLife reported adjusted earnings of $1.7 billion, down 12 percent on a reported basis and down 10 percent on a constant currency basis from the first quarter of 2021. On a per share basis, adjusted earnings were $2.08, down 5 percent from the prior-year period.

Adjusted Earnings by Segment Summary*

 

Three months ended
March 31, 2022

Segment

Change from
prior-year period

Change from
prior-year
period (on a
constant
currency
basis)

U.S.

(12)%

 

Asia

(7)%

(4)%

Latin America

255%

358%

Europe, the Middle East and Africa (EMEA)

(27)%

(15)%

MetLife Holdings

(39)%

 

* The percentages in this table are on a reported and constant currency basis, and do not exclude notable items.

Business Discussions

All comparisons of the results for the first quarter of 2022 in the business discussions that follow are with the first quarter of 2021, unless otherwise noted. The first quarter of 2022 notable items table follows the Business Discussions section of this release.

U.S.

($ in millions)

Three months ended
March 31, 2022

Three months ended
March 31, 2021

Change

Adjusted earnings

$693

$784

(12)%

Adjusted premiums, fees and other revenues

$7,887

$6,392

23%

Adjusted premiums, fees and other revenues, excluding PRT

$6,629

$6,392

4%

Notable item(s)

$0

$0

 

  • Adjusted earnings were $693 million, down 12 percent, primarily driven by lower variable investment income. A decline in COVID-19 life insurance claims and favorable volume growth were partial offsets.
  • Adjusted return on allocated equity was 24.3 percent, and adjusted return on allocated tangible equity was 32.6 percent.
  • Adjusted premiums, fees and other revenues were $7.9 billion, up 23 percent, driven by higher pension risk transfer sales and solid growth across Group Benefits.

Group Benefits

($ in millions)

Three months ended
March 31, 2022

Three months ended
March 31, 2021

Change

Adjustedearnings

$112

$93

20%

Adjusted premiums, fees and other revenues

$6,004

$5,636

7%

Notable item(s)

$0

$0

 

  • Adjusted earnings were $112 million, up 20 percent, primarily driven by a decline in COVID-19 life insurance claims and favorable volume growth.
  • Adjusted premiums, fees and other revenues were $6.0 billion, up 7 percent, primarily driven by solid growth across most products, including voluntary, and the impact of participating contracts, where premiums, fees and other revenues can fluctuate with claims experience.
  • Sales were down 31 percent due to higher jumbo case activity in the prior-year period.

Retirement and Income Solutions

($ in millions)

Three months ended
March 31, 2022

Three months ended
March 31, 2021

Change

Adjustedearnings

$581

$691

(16)%

Adjusted premiums, fees and other revenues

$1,883

$756

149%

Adjusted premiums, fees and other revenues, excluding PRT

$625

$756

(17)%

Notable item(s)

$0

$0

 

  • Adjusted earnings were $581 million, down 16 percent, largely driven by lower variable investment income, partially offset by volume growth.
  • Adjusted premiums, fees and other revenues were $1.9 billion, up 149 percent, largely driven by higher pension risk transfer sales.
  • Excluding pension risk transfers, adjusted premiums, fees and other revenues were $625 million, down 17 percent, primarily due to higher single-premium annuity and life insurance sales in the prior-year period.
  • Sales were up 6 percent, primarily driven by stable value products and pension risk transfers.

ASIA

($ in millions)

Three months ended
March 31, 2022

Three months ended
March 31, 2021

Change

Adjusted earnings

$580

$623

(7)%

Adjusted earnings (constant currency)

$580

$605

(4)%

Adjusted premiums, fees and other revenues

$2,022

$2,161

(6)%

Notable item(s)

$0

$0

 

Asia general account assets under management (at amortized cost)

$129,935

$127,695

2%

  • Adjusted earnings were $580 million, down 7 percent on a reported basis, and down 4 percent on a constant currency basis, largely driven by lower recurring interest margins and less favorable equity markets. Volume growth was a partial offset.
  • Adjusted return on allocated equity was 16.1 percent, and adjusted return on allocated tangible equity was 24.1 percent.
  • Adjusted premiums, fees and other revenues were $2.0 billion, down 6 percent, and up 1 percent on a constant currency basis.
  • Asia general account assets under management (at amortized cost) were$129.9 billion, up 2 percent, and up 7 percent on a constant currency basis.
  • Sales were $582 million, up 2 percent on a constant currency basis, primarily driven by strong sales in Japan.

LATIN AMERICA*

($ in millions)

Three months ended
March 31, 2022

Three months ended
March 31, 2021

Change

Adjusted earnings

$142

$40

255%

Adjusted earnings (constant currency)

$142

$31

358%

Adjusted premiums, fees and other revenues

$1,031

$875

18%

Notable item(s)

$0

$0

 

* For the three months ended March 31, 2022, Latin America results exclude the Argentina business, which was sold in the third quarter of 2021. This business is included in the prior-year period.

  • Adjusted earnings were $142 million, compared to $40 million for the first quarter of 2021, primarily driven by a decline in COVID-19 related claims and favorable volume growth. Lower Chilean encaje returns were a partial offset.
  • Adjusted return on allocated equity was 20.8 percent, and adjusted return on allocated tangible equity was 32.5 percent.
  • Adjusted premiums, fees and other revenues were $1.0 billion, up 18 percent, and up 22 percent on a constant currency basis, driven by strong sales and persistency across the region.
  • Sales were $281 million, up 40 percent on a constant currency basis, driven by growth across the region.

EMEA*

($ in millions)

Three months ended
March 31, 2022

Three months ended
March 31, 2021

Change

Adjusted earnings

$52

$71

(27)%

Adjusted earnings (constant currency)

$52

$61

(15)%

Adjusted premiums, fees and other revenues

$606

$678

(11)%

Notable item(s)

$0

$0

 

* For the three months ended March 31, 2022, EMEA results exclude the Greece and Poland businesses, which were sold or reported as divested business in the first quarter of 2022. These businesses are included in the prior-year period.

  • Adjusted earnings were $52 million, down 27 percent on a reported basis, and down 15 percent on a constant currency basis, driven by the exclusion of divested businesses in the current-year period and higher expenses. A decline in COVID-19 related claims and favorable volume growth were partial offsets.
  • Adjusted return on allocated equity was 9.2 percent, and adjusted return on allocated tangible equity was 13.7 percent.
  • Adjusted premiums, fees and other revenues were $606 million, down 11 percent, and down 4 percent on a constant currency basis, primarily due to the exclusion of divested businesses.
  • Sales were $243 million, flat on a constant currency basis due to the exclusion of divested businesses.

METLIFE HOLDINGS

($ in millions)

Three months ended
March 31, 2022

Three months ended
March 31, 2021

Change

Adjusted earnings

$377

$618

(39)%

Adjusted premiums, fees and other revenues

$1,089

$1,163

(6)%

Notable item(s)

$0

$0

 

  • Adjusted earnings were $377 million, down 39 percent, largely driven by lower variable investment income and less favorable underwriting.
  • Adjusted return on allocated equity was 13.7 percent, and adjusted return on allocated tangible equity was 15.0 percent.
  • Adjusted premiums, fees and other revenues were $1.1 billion, down 6 percent.

CORPORATE & OTHER

($ in millions)

Three months ended
March 31, 2022

Three months ended
March 31, 2021

Change

Adjusted earnings

$(117)

$(171)

 

Notable item(s)

$0

$0

 

  • Adjusted loss of $117 million, compared to an adjusted loss of $171 million in the prior-year period.

INVESTMENTS

($ in millions)

Three months ended
March 31, 2022

Three months ended
March 31, 2021

Change

Adjusted net investment income

$4,992

$5,294

(6)%

  • Adjusted net investment income was $5.0 billion, down 6 percent. Variable investment income was $1.2 billion, compared to $1.4 billion in the prior-year period, primarily driven by lower private equity returns.

FIRST QUARTER 2022 NOTABLE ITEMS

($ in millions)

Adjusted Earnings

Three months ended March 31, 2022

Notable Items

U.S.

Asia

Latin
America

EMEA

MetLife
Holdings

Corporate
&
Other

Total

Group
Benefits

Retirement
and Income
Solutions

Total notable items

$0

$0

$0

$0

$0

$0

$0

$0

About MetLife

MetLife, Inc. (NYSE: MET), through its subsidiaries and affiliates (“MetLife”), is one of the world’s leading financial services companies, providing insurance, annuities, employee benefits and asset management to help individual and institutional customers build a more confident future. Founded in 1868, MetLife has operations in more than 40 markets globally and holds leading positions in the United States, Japan, Latin America, Asia, Europe and the Middle East. For more information, visit www.metlife.com.

Conference Call

MetLife will hold its first quarter 2022 earnings conference call and audio webcast on Thursday, May 5, 2022, from 9-10 a.m. (ET). The conference call will be available live via telephone and the internet. To listen via telephone, dial 877-692-8955 (U.S.) or 234-720-6979 (outside the U.S.). The participant access code is 2510803. To listen to the conference call via the internet, click the link to the webcast on the MetLife Investor Relations web page (https://investor.metlife.com). Those who want to listen to the call via telephone or the internet should dial in or go to the website at least 15 minutes prior to the call to register, and/or download and install any necessary audio software.

The conference call will be available for replay via telephone and the internet beginning at 11 a.m. (ET) on Thursday, May 5, 2022, until Thursday, May 12, 2022, at 11:59 p.m. (ET). To listen to a replay of the conference call via telephone, dial 866-207-1041 (U.S.) or 402-970-0847 (outside the U.S.). The access code for the replay is 7388727. To access the replay of the conference call over the internet, visit the above-mentioned website.

Non-GAAP and Other Financial Disclosures

Any references in this news release (except in this section and the tables that accompany this release) to:

 

should be read as, respectively:

 

 

 

 

(i)

net income (loss);

 

(i)

net income (loss) available to MetLife, Inc.’s common shareholders;

(ii)

net income (loss) per share;

 

(ii)

net income (loss) available to MetLife, Inc.’s common shareholders per diluted common share;

(iii)

adjusted earnings;

 

(iii)

adjusted earnings available to common shareholders;

(iv)

adjusted earnings per share;

 

(iv)

adjusted earnings available to common shareholders per diluted common share;

(v)

book value per share;

 

(v)

book value per common share;

(vi)

book value per share, excluding AOCI other than FCTA;

 

(vi)

book value per common share, excluding AOCI other than FCTA;

(vii)

book value per share-tangible common stockholders’ equity;

 

(vii)

book value per common share-tangible common stockholders’ equity;

(viii)

return on equity;

 

(viii)

return on MetLife, Inc.’s common stockholders’ equity;

(ix)

adjusted return on equity, excluding AOCI other than FCTA; and

 

(ix)

adjusted return on MetLife, Inc.’s common stockholders’ equity, excluding AOCI other than FCTA; and

(x)

adjusted tangible return on equity.

 

(x)

adjusted return on MetLife, Inc.’s tangible common stockholders’ equity.

In this news release, MetLife presents certain measures of its performance on a consolidated and segment basis that are not calculated in accordance with accounting principles generally accepted in the United States of America (GAAP). MetLife believes that these non-GAAP financial measures enhance the understanding for MetLife and its investors of MetLife's performance by highlighting the results of operations and the underlying profitability drivers of the business. Segment-specific financial measures are calculated using only the portion of consolidated results attributable to that specific segment.

The following non-GAAP financial measures should not be viewed as substitutes for the most directly comparable financial measures calculated in accordance with GAAP:

Non-GAAP financial measures:

 

Comparable GAAP financial measures:

 

 

 

 

(i)

total adjusted revenues;

 

(i)

total revenues;

(ii)

total adjusted expenses;

 

(ii)

total expenses;

(iii)

adjusted premiums, fees and other revenues;

 

(iii)

premiums, fees and other revenues;

(iv)

adjusted premiums, fees and other revenues, excluding PRT;

 

(iv)

premiums, fees and other revenues;

(v)

adjusted net investment income;

 

(v)

net investment income;

(vi)

adjusted capitalization of deferred policy acquisition costs (DAC);

 

(vi)

capitalization of DAC;

(vii)

adjusted earnings available to common shareholders;

 

(vii)

net income (loss) available to MetLife, Inc.’s common shareholders;

(viii)

adjusted earnings available to common shareholders, excluding total notable items;

 

(viii)

net income (loss) available to MetLife, Inc.’s common shareholders;

(ix)

adjusted earnings available to common shareholders per diluted common share;

 

(ix)

net income (loss) available to MetLife, Inc.’s common shareholders per diluted common share;

(x)

adjusted earnings available to common shareholders, excluding total notable items, per diluted common share;

 

(x)

net income (loss) available to MetLife, Inc.’s common shareholders per diluted common share;

(xi)

adjusted return on equity;

 

(xi)

return on equity;

(xii)

adjusted return on equity, excluding AOCI other than FCTA;

 

(xii)

return on equity;

(xiii)

adjusted return on equity, excluding total notable items (excludes AOCI other than FCTA);

 

(xiii)

return on equity;

(xiv)

adjusted tangible return on equity;

 

(xiv)

return on equity;

(xv)

investment portfolio gains (losses);

 

(xv)

net investment gains (losses);

(xvi)

derivative gains (losses);

 

(xvi)

net derivative gains (losses);

(xvii)

total MetLife, Inc.’s tangible common stockholders’ equity;

 

(xvii)

total MetLife, Inc.’s stockholders’ equity;

(xviii)

total MetLife, Inc.’s tangible common stockholders’ equity, excluding total notable items;

 

(xviii)

total MetLife, Inc.’s stockholders’ equity;

(xix)

total MetLife, Inc.’s common stockholders’ equity, excluding AOCI other than FCTA;

 

(xix)

total MetLife, Inc.’s stockholders’ equity;

(xx)

total MetLife, Inc.’s common stockholders’ equity, excluding total notable items (excludes AOCI other than FCTA);

 

(xx)

total MetLife, Inc.’s stockholders’ equity;

(xxi)

book value per common share, excluding AOCI other than FCTA;

 

(xxi)

book value per common share;

(xxii)

book value per common share - tangible common stockholders' equity;

 

(xxii)

book value per common share;

(xxiii)

free cash flow of all holding companies;

 

(xxiii)

MetLife, Inc. (parent company only) net cash provided by (used in) operating activities;

(xxiv)

adjusted other expenses;

 

(xxiv)

other expenses;

(xxv)

adjusted other expenses, net of adjusted capitalization of DAC;

 

(xxv)

other expenses, net of capitalization of DAC;

(xxvi)

adjusted other expenses, net of adjusted capitalization of DAC, excluding total notable items related to adjusted other expenses;

 

(xxvi)

other expenses, net of capitalization of DAC;

(xxvii)

adjusted expense ratio;

 

(xxvii)

expense ratio;

(xxviii)

adjusted expense ratio, excluding total notable items related to adjusted other expenses and PRT;

 

(xxviii)

expense ratio;

(xxix)

direct expenses;

 

(xxix)

other expenses;

(xxx)

direct expenses, excluding total notable items related to direct expenses;

 

(xxx)

other expenses;

(xxxi)

direct expense ratio; and

 

(xxxi)

expense ratio; and

(xxxii)

direct expense ratio, excluding total notable items related to direct expenses and PRT.

 

(xxxii)

expense ratio.

Any of these financial measures shown on a constant currency basis reflect the impact of changes in foreign currency exchange rates and are calculated using the average foreign currency exchange rates for the most recent period and applied to the comparable prior period.

Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial 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 non-GAAP and other financial measures discussed in this news release may differ from those used by other companies:

Adjusted earnings and related measures

  • adjusted earnings;
  • adjusted earnings available to common shareholders;
  • adjusted earnings available to common shareholders on a constant currency basis;
  • adjusted earnings available to common shareholders, excluding total notable items;
  • adjusted earnings available to common shareholders, excluding total notable items, on a constant currency basis;
  • adjusted earnings available to common shareholders per diluted common share;
  • adjusted earnings available to common shareholders on a constant currency basis per diluted common share;
  • adjusted earnings available to common shareholders, excluding total notable items per diluted common share; and
  • adjusted earnings available to common shareholders, excluding total notable items, on a constant currency basis per diluted common share.

These measures are used by management to evaluate performance and allocate resources. Consistent with GAAP guidance for segment reporting, adjusted earnings and components of, or other financial measures based on, adjusted earnings are also MetLife’s GAAP measures of segment performance. Adjusted earnings and other financial measures based on adjusted earnings are also the measures by which MetLife senior management’s and many other employees’ performance is evaluated for the purposes of determining their compensation under applicable compensation plans. Adjusted earnings and other financial measures based on adjusted earnings allow analysis of MetLife's performance relative to its business plan and facilitate comparisons to industry results.

Adjusted earnings is defined as adjusted revenues less adjusted expenses, net of income tax. Adjusted loss is defined as negative adjusted earnings. Adjusted earnings available to common shareholders is defined as adjusted earnings less preferred stock dividends.

Adjusted revenues and adjusted expenses

These financial measures, along with the related adjusted 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 MetLife but do not meet the discontinued operations criteria under GAAP and are referred to as divested businesses. Divested businesses also include the net impact of transactions with exited businesses that have been eliminated in consolidation under GAAP and costs relating to businesses that have been or will be sold or exited by MetLife that do not meet the criteria to be included in results of discontinued operations under GAAP.

Adjusted revenues also excludes net investment gains (losses) (NIGL) and net derivative gains (losses) (NDGL). Adjusted expenses also excludes goodwill impairments.

The following additional adjustments are made to revenues, in the line items indicated, in calculating adjusted revenues:

  • Universal life and investment-type product policy fees excludes the amortization of unearned revenue related to NIGL and NDGL (Unearned revenue adjustments) and certain variable annuity guaranteed minimum income benefits (GMIB) fees (GMIB fees);
  • Net investment income: (i) includes adjustments for earned income on derivatives and amortization of premium on derivatives that are hedges of investments or that are used to replicate certain investments, but do not qualify for hedge accounting treatment (Investment hedge adjustments), (ii) excludes post-tax adjusted earnings adjustments relating to insurance joint ventures accounted for under the equity method (Operating joint venture adjustments), (iii) excludes certain amounts related to contractholder-directed equity securities (Unit-linked contract income), (iv) excludes certain amounts related to securitization entities that are variable interest entities (VIEs) consolidated under GAAP (Securitization entities income); and (v) includes distributions of profits from certain other limited partnership interests that were previously accounted for under the cost method, but are now accounted for at estimated fair value, where the change in estimated fair value is recognized in NIGL under GAAP (Certain partnership distributions); and
  • Other revenues is adjusted for settlements of foreign currency earnings hedges and excludes fees received in association with services provided under transition service agreements (TSA fees).

The following additional adjustments are made to expenses, in the line items indicated, in calculating adjusted expenses:

  • Policyholder benefits and claims and policyholder dividends excludes: (i) amortization of basis adjustments associated with de-designated fair value hedges of future policy benefits (PBC hedge adjustments), (ii) changes in the policyholder dividend obligation related to NIGL and NDGL (PDO adjustments), (iii) inflation-indexed benefit adjustments associated with contracts backed by inflation-indexed investments and amounts associated with periodic crediting rate adjustments based on the total return of a contractually referenced pool of assets and other pass-through adjustments (Inflation and pass-through adjustments), (iv) benefits and hedging costs related to GMIBs (GMIB costs), and (v) market value adjustments associated with surrenders or terminations of contracts (Market value adjustments);
  • Interest credited to policyholder account balances includes adjustments for earned income on derivatives and amortization of premium on derivatives that are hedges of policyholder account balances but do not qualify for hedge accounting treatment (PAB hedge adjustments) and excludes certain amounts related to net investment income earned on contractholder-directed equity securities (Unit-linked contract costs);
  • Amortization of DAC and value of business acquired (VOBA) excludes amounts related to: (i) NIGL and NDGL, (ii) GMIB fees and GMIB costs and (iii) Market value adjustments;
  • Amortization of negative VOBA excludes amounts related to Market value adjustments;
  • Interest expense on debt excludes certain amounts related to securitization entities that are VIEs consolidated under GAAP (Securitization entities debt expense); and
  • Other expenses excludes: (i) noncontrolling interests, (ii) implementation of new insurance regulatory requirements costs (Regulatory implementation costs), and (iii) acquisition, integration and other costs. Other expenses includes TSA fees.

Adjusted 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 MetLife’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.

In addition, adjusted earnings available to common shareholders excludes the impact of preferred stock redemption premium, which is reported as a reduction to net income (loss) available to MetLife, Inc.’s common shareholders.

Investment portfolio gains (losses) and derivative gains (losses)

Theseare 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, as well as investment portfolio gains (losses) of divested businesses. 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 adjusted earnings and not within derivative gains (losses).

Return on equity, allocated equity, tangible equity and related measures

  • Total MetLife, Inc.’s common stockholders’ equity, excluding AOCI other than FCTA: total MetLife, Inc.’s common stockholders’ equity, excluding the net unrealized investment gains (losses) and defined benefit plans adjustment components of AOCI, net of income tax.
  • Total MetLife, Inc.’s common stockholders’ equity, excluding total notable items (excludes AOCI other than FCTA): total MetLife, Inc.’s common stockholders’ equity, excluding the net unrealized investment gains (losses), defined benefit plans adjustment components of AOCI and total notable items, net of income tax.
  • Return on MetLife, Inc.’s common stockholders’ equity: net income (loss) available to MetLife, Inc.’s common shareholders divided by MetLife, Inc.’s average common stockholders’ equity.
  • Adjusted return on MetLife, Inc.'s common stockholders' equity: adjusted earnings available to common shareholders divided by MetLife, Inc.'s average common stockholders' equity.
  • Adjusted return on MetLife, Inc.'s common stockholders' equity, excluding AOCI other than FCTA: adjusted earnings available to common shareholders divided by MetLife, Inc.'s average common stockholders' equity, excluding AOCI other than FCTA.
  • Adjusted return on MetLife, Inc.'s common stockholders' equity, excluding total notable items (excludes AOCI other than FCTA): adjusted earnings available to common shareholders, excluding total notable items, divided by MetLife, Inc.'s average common stockholders' equity, excluding total notable items (excludes AOCI other than FCTA).
  • Allocated equity: portion of MetLife, Inc.’s common stockholders’ equity that management allocates to each of its segments and sub-segments based on local capital requirements and economic capital. Economic capital is an internally developed risk capital model, the purpose of which is to measure the risk in the business and to provide a basis upon which capital is deployed. MetLife management periodically reviews this model to ensure that it remains consistent with emerging industry practice standards and the local capital requirements; allocated equity may be adjusted if warranted by such review. Allocated equity excludes the impact of AOCI other than FCTA.
  • Adjusted return on allocated equity: adjusted earnings available to common shareholders divided by allocated equity. The above measures represent a level of equity consistent with the view that, in the ordinary course of business, MetLife does not plan to sell most investments for the sole purpose of realizing gains or losses.
  • Total MetLife, Inc.’s tangible common stockholders’ equity or tangible equity: total MetLife, Inc.’s common stockholders’ equity, excluding AOCI other than FCTA, reduced by the impact of goodwill, value of distribution agreements acquired (VODA) and value of customer relationships acquired (VOCRA), all net of income tax.
  • Total MetLife, Inc.’s tangible common stockholders’ equity, adjusted for total notable items: total MetLife, Inc.’s common stockholders’ equity, excluding AOCI other than FCTA, reduced by the impact of goodwill, VODA, VOCRA and total notable items, all net of income tax.
  • Adjusted return on MetLife, Inc.'s tangible common stockholders' equity: adjusted earnings available to common shareholders, excluding amortization of VODA and VOCRA, net of income tax, divided by MetLife, Inc.'s average tangible common stockholders' equity.
  • Allocated tangible equity: allocated equity reduced by the impact of goodwill, VODA and VOCRA, all net of income tax.
  • Adjusted return on allocated tangible equity: adjusted earnings available to common shareholders, excluding amortization of VODA and VOCRA, net of income tax, divided by allocated tangible equity.

The above measures are, when considered in conjunction with regulatory capital ratios, a measure of capital adequacy.

Expense ratio, direct expense ratio, adjusted expense ratio and related measures

  • Expense ratio: other expenses, net of capitalization of DAC, divided by premiums, fees and other revenues.
  • Direct expense ratio: adjusted direct expenses, divided by adjusted premiums, fees and other revenues.
  • Direct expense ratio, excluding total notable items related to direct expenses and PRT: adjusted direct expenses, excluding total notable items related to direct expenses, divided by adjusted premiums, fees and other revenues, excluding PRT.
  • Adjusted expense ratio: adjusted other expenses, net of adjusted capitalization of DAC, divided by adjusted premiums, fees and other revenues.
  • Adjusted expense ratio, excluding total notable items related to adjusted other expenses and PRT: adjusted other expenses, net of adjusted capitalization of DAC, excluding total notable items related to adjusted other expenses, divided by adjusted premiums, fees and other revenues, excluding PRT.

Asia General account (GA) assets under management (GA AUM) and related measures

Asia GA AUM is used by MetLife to describe assets in its Asia GA investment portfolio which are actively managed and stated at estimated fair value. Asia GA AUM is comprised of Asia GA total investments and cash and cash equivalents, excluding policy loans, contractholder-directed equity securities, fair value option securities and certain other invested assets, as substantially all of these assets are not actively managed in MetLife’s Asia GA investment portfolio. Mortgage loans (including commercial, agricultural and residential) and real estate and real estate joint ventures included in Asia GA AUM (at net asset value, net of deduction for encumbering debt) have been adjusted from carrying value to estimated fair value. At the segment level, intersegment balances (intercompany activity, primarily related to investments in subsidiaries, that eliminate at the MetLife consolidated level) are excluded from Asia GA AUM.

Asia GA AUM (at amortized cost) excludes the following adjustments: (i) unrealized gain (loss) on investments carried at estimated fair value and (ii) adjustments from carrying value to estimated fair value on mortgage loans (including commercial, agricultural and residential) and real estate and real estate joint ventures. Asia GA AUM (at amortized cost) is presented net of related allowance for credit loss.

Statistical sales information:

  • U.S.:
    • Group Benefits: calculated using 10% of single premium deposits and 100% of annualized full-year premiums and fees from recurring premium policy sales of all products.
    • Retirement and Income Solutions: calculated using 10% of single premium deposits and 100% of annualized full-year premiums and fees only from recurring premium policy sales of specialized benefit resources and corporate-owned life insurance.
  • Latin America, Asia and EMEA: calculated using 10% of single-premium deposits (mainly from retirement products such as variable annuity, fixed annuity and pensions), 20% of single-premium deposits from credit insurance and 100% of annualized full-year premiums and fees from recurring-premium policy sales of all products (mainly from risk and protection products such as individual life, accident & health and group).

Sales statistics do not correspond to revenues under GAAP, but are used as relevant measures of business activity.

The following additional information is relevant to an understanding of MetLife’s performance results and outlook:

  • Volume growth, as discussed in the context of business growth, is the period over period percentage change in adjusted earnings available to common shareholders attributable to adjusted premiums, fees and other revenues and assets under management levels, applying a model in which certain margins and factors are held constant. The most significant of such items are underwriting margins, investment margins, changes in equity market performance, expense margins and the impact of changes in foreign currency exchange rates.
  • MetLife uses a measure of free cash flow to facilitate an understanding of its ability to generate cash for reinvestment into its businesses or use in non-mandatory capital actions. MetLife defines free cash flow as the sum of cash available at MetLife’s holding companies from dividends from operating subsidiaries, expenses and other net flows of the holding companies (including capital contributions to subsidiaries), and net contributions from debt to be at or below target leverage ratios. This measure of free cash flow is prior to capital actions, such as common stock dividends and repurchases, debt reduction and mergers and acquisitions. Free cash flow should not be viewed as a substitute for net cash provided by (used in) operating activities calculated in accordance with GAAP. The free cash flow ratio is typically expressed as a percentage of annual adjusted earnings available to common shareholders.
  • Notable items reflect the unexpected impact of events that affect MetLife’s results, but that were unknown and that MetLife could not anticipate when it devised its business plan. Notable items also include certain items regardless of the extent anticipated in the business plan, to help investors have a better understanding of MetLife's results and to evaluate and forecast those results. Notable items represent a positive (negative) impact to adjusted earnings available to common shareholders.
  • We refer to observable forward yield curves as of a particular date in connection with making our estimates for future results. The observable forward yield curves at a given time are based on implied future interest rates along a range of interest rate durations. This includes the 10-year U.S. Treasury rate which we use as a benchmark rate to describe longer-term interest rates used in our estimates for future results.

Forward-Looking Statements

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 and do not relate strictly to historical or current facts. They use words and terms such as “anticipate,” “assume,” “believe,” “continue,” “could,” “estimate,” “expect,” “if,” “intend,” “likely,” “may,” “plan,” “potential,” “project,” “should,” “will,” “would,” and other words and terms of similar meaning or that are otherwise tied to future periods or future performance, in each case in all derivative forms. They include statements relating to future actions, prospective services or products, future performance or results of current and anticipated services or products, future sales efforts, future expenses, the outcome of contingencies such as legal proceedings, and future trends in operations and financial results.

Many factors determine the results of MetLife, Inc., its subsidiaries and affiliates, and they involve unpredictable risks and uncertainties. Our forward-looking statements depend on our assumptions, our expectations, and our understanding of the economic environment, but they may be inaccurate and may change. MetLife, Inc. does not guarantee any future performance. Our results could differ materially from those MetLife, Inc. expresses or implies in forward-looking statements. The risks, uncertainties and other factors, including those relating to the COVID-19 pandemic, identified in MetLife, Inc.’s filings with the U.S. Securities and Exchange Commission, and others, may cause such differences. These factors include:

(1)

economic condition difficulties, including risks relating to public health, interest rates, credit spreads, equity, real estate, obligors and counterparties, currency exchange rates, derivatives, and terrorism and security;

(2)

global capital and credit market adversity;

(3)

credit facility inaccessibility;

(4)

financial strength or credit ratings downgrades;

(5)

unavailability, unaffordability, or inadequate reinsurance;

(6)

statutory life insurance reserve financing costs or limited market capacity;

(7)

legal, regulatory, and supervisory and enforcement policy changes;

(8)

changes in tax rates, tax laws or interpretations;

(9)

litigation and regulatory investigations;

(10)

London Interbank Offered Rate discontinuation and transition to alternative reference rates;

(11)

unsuccessful efforts to meet all environmental, social, and governance standards or to enhance our sustainability;

(12)

MetLife, Inc.’s inability to pay dividends and repurchase common stock;

(13)

MetLife, Inc.’s subsidiaries’ inability to pay it dividends;

(14)

investment defaults, downgrades, or volatility;

(15)

investment sales or lending difficulties;

(16)

collateral or derivative-related payments;

(17)

investment valuations, allowances, or impairments changes;

(18)

claims or other results that differ from our estimates, assumptions, or models;

(19)

global political, legal, or operational risks;

(20)

business competition;

(21)

technological changes;

(22)

catastrophes;

(23)

climate changes or responses to it;

(24)

deficiencies in our closed block;

(25)

goodwill or other asset impairment, or deferred income tax asset allowance;

(26)

acceleration of amortization of DAC, deferred sales inducements, VOBA, VODA or VOCRA;

(27)

product guarantee volatility, costs, and counterparty risks;

(28)

risk management failures;

(29)

insufficient protection from operational risks;

(30)

failure to protect confidentiality and integrity of data or other cybersecurity or disaster recovery failures;

(31)

accounting standards changes;

(32)

excessive risk-taking;

(33)

marketing and distribution difficulties;

(34)

pension and other postretirement benefit assumption changes;

(35)

inability to protect our intellectual property or avoid infringement claims;

(36)

acquisition, integration, growth, disposition, or reorganization difficulties;

(37)

Brighthouse Financial, Inc. separation risks;

(38)

MetLife, Inc.’s Board of Directors influence over the outcome of stockholder votes through the voting provisions of the MetLife Policyholder Trust; and

(39)

legal- and corporate governance-related effects on business combinations.

MetLife, Inc. does not undertake any obligation to publicly correct or update any forward-looking statements if MetLife, Inc. later becomes aware that such statement is not likely to be achieved. Please consult any further disclosures MetLife, Inc. makes on related subjects in subsequent reports to the U.S. Securities and Exchange Commission.

MetLife, Inc.

GAAP Interim Condensed Consolidated Statements of Operations

(Unaudited)

(In millions)

 

 

 

 

 

 

 

For the Three Months Ended

 

 

March 31,

 

 

 

2022

 

 

 

2021

 

Revenues

 

 

 

 

Premiums

 

$

10,771

 

 

$

10,327

 

Universal life and investment-type product policy fees

 

 

1,418

 

 

 

1,391

 

Net investment income

 

 

4,284

 

 

 

5,314

 

Other revenues

 

 

660

 

 

 

631

 

Net investment gains (losses)

 

 

(518

)

 

 

134

 

Net derivative gains (losses)

 

 

(859

)

 

 

(2,235

)

Total revenues

 

 

15,756

 

 

 

15,562

 

 

 

 

 

 

Expenses

 

 

 

 

Policyholder benefits and claims

 

 

11,193

 

 

 

10,523

 

Interest credited to policyholder account balances

 

 

630

 

 

 

1,351

 

Policyholder dividends

 

 

198

 

 

 

247

 

Capitalization of DAC

 

 

(650

)

 

 

(775

)

Amortization of DAC and VOBA

 

 

537

 

 

 

590

 

Amortization of negative VOBA

 

 

(9

)

 

 

(9

)

Interest expense on debt

 

 

225

 

 

 

228

 

Other expenses

 

 

2,917

 

 

 

3,116

 

Total expenses

 

 

15,041

 

 

 

15,271

 

 

 

 

 

 

Income (loss) before provision for income tax

 

 

715

 

 

 

291

 

Provision for income tax expense (benefit)

 

 

41

 

 

 

(72

)

Net income (loss)

 

 

674

 

 

 

363

 

Less: Net income (loss) attributable to noncontrolling interests

 

 

5

 

 

 

5

 

Net income (loss) attributable to MetLife, Inc.

 

 

669

 

 

 

358

 

Less: Preferred stock dividends

 

 

63

 

 

 

68

 

Net income (loss) available to MetLife, Inc.'s common shareholders

 

$

606

 

 

$

290

 

 

 

 

 

 

See footnotes on last page.

 

 

 

 

MetLife, Inc.

(Unaudited)

(In millions, except per share data)

 

 

 

 

 

For the Three Months Ended

 

 

March 31,

 

 

2022

 

2021

Reconciliation to Adjusted Earnings Available to Common Shareholders

 

 

 

Earnings Per
Weighted
Average
Common Share
Diluted (1)

 

 

 

Earnings Per
Weighted
Average
Common Share
Diluted (1)

Net income (loss) available to MetLife, Inc.'s common shareholders

 

$

606

 

 

$

0.73

 

 

$

290

 

 

$

0.33

 

 

 

 

 

 

 

 

 

 

Adjustments from net income (loss) available to common shareholders to adjusted earnings available to common shareholders:

 

 

 

 

 

 

 

 

Less: Net investment gains (losses)

 

 

(518

)

 

 

(0.62

)

 

 

134

 

 

 

0.15

 

Net derivative gains (losses)

 

 

(859

)

 

 

(1.03

)

 

 

(2,235

)

 

 

(2.51

)

Premiums

 

 

41

 

 

 

0.05

 

 

 

865

 

 

 

0.97

 

Universal life and investment-type product policy fees

 

 

26

 

 

 

0.03

 

 

 

25

 

 

 

0.03

 

Net investment income

 

 

(708

)

 

 

(0.85

)

 

 

20

 

 

 

0.02

 

Other revenues

 

 

50

 

 

 

0.06

 

 

 

46

 

 

 

0.05

 

Policyholder benefits and claims and policyholder dividends

 

 

(35

)

 

 

(0.03

)

 

 

(664

)

 

 

(0.74

)

Interest credited to policyholder account balances

 

 

502

 

 

 

0.60

 

 

 

(210

)

 

 

(0.24

)

Capitalization of DAC

 

 

11

 

 

 

0.01

 

 

 

89

 

 

 

0.10

 

Amortization of DAC and VOBA

 

 

9

 

 

 

0.01

 

 

 

(82

)

 

 

(0.09

)

Amortization of negative VOBA

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense on debt

 

 

 

 

 

 

 

 

(1

)

 

 

 

Other expenses

 

 

(79

)

 

 

(0.10

)

 

 

(262

)

 

 

(0.29

)

Goodwill impairment

 

 

 

 

 

 

 

 

 

 

 

 

Provision for income tax (expense) benefit

 

 

444

 

 

 

0.53

 

 

 

605

 

 

 

0.69

 

Add: Net income (loss) attributable to noncontrolling interests

 

 

5

 

 

 

0.01

 

 

 

5

 

 

 

0.01

 

Preferred stock redemption premium

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted earnings available to common shareholders

 

 

1,727

 

 

 

2.08

 

 

 

1,965

 

 

 

2.20

 

Less: Total notable items (2)

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted earnings available to common shareholders, excluding total notable items (2)

 

$

1,727

 

 

$

2.08

 

 

$

1,965

 

 

$

2.20

 

 

 

 

 

 

 

 

 

 

Adjusted earnings available to common shareholders on a constant currency basis

 

$

1,727

 

 

$

2.08

 

 

$

1,928

 

 

$

2.16

 

Adjusted earnings available to common shareholders, excluding total notable items, on a constant currency basis (2)

 

$

1,727

 

 

$

2.08

 

 

$

1,928

 

 

$

2.16

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding - diluted

 

 

 

 

830.5

 

 

 

 

 

892.1

 

 

 

 

 

 

 

 

 

 

See footnotes on last page.

 

 

 

 

 

 

 

 

MetLife, Inc.

(Unaudited)

(In millions)

 

 

 

 

 

For the Three Months Ended

 

March 31,

 

 

2022

 

 

 

2021

 

Premiums, Fees and Other Revenues

 

 

 

Premiums, fees and other revenues

$

12,849

 

 

$

12,349

 

Less: Unearned revenue adjustments

 

(8

)

 

 

 

GMIB fees

 

23

 

 

 

25

 

Settlement of foreign currency earnings hedges

 

 

 

 

 

TSA fees

 

47

 

 

 

35

 

Divested businesses

 

55

 

 

 

876

 

Adjusted premiums, fees and other revenues

$

12,732

 

 

$

11,413

 

 

 

 

 

Adjusted premiums, fees and other revenues, on a constant currency basis

$

12,732

 

 

$

11,181

 

Less: PRT (3)

 

1,258

 

 

 

 

Adjusted premiums, fees and other revenues, excluding PRT, on a constant currency basis

$

11,474

 

 

$

11,181

 

 

 

 

 

Net Investment Income

 

 

 

Net investment income

$

4,284

 

 

$

5,314

 

Less: Investment hedge adjustments

 

(215

)

 

 

(220

)

Operating joint venture adjustments

 

(6

)

 

 

 

Unit-linked contract income

 

(498

)

 

 

207

 

Securitization entities income

 

 

 

 

 

Certain partnership distributions

 

 

 

 

(3

)

Divested businesses

 

11

 

 

 

36

 

Adjusted net investment income

$

4,992

 

 

$

5,294

 

 

 

 

 

Revenues and Expenses

 

 

 

Total revenues

$

15,756

 

 

$

15,562

 

Less: Net investment gains (losses)

 

(518

)

 

 

134

 

Less: Net derivative gains (losses)

 

(859

)

 

 

(2,235

)

Less: Adjustments related to net investment gains (losses) and net derivative gains (losses)

 

(8

)

 

 

 

Less: Other adjustments to revenues:

 

 

 

GMIB fees

 

23

 

 

 

25

 

Investment hedge adjustments

 

(215

)

 

 

(220

)

Operating joint venture adjustments

 

(6

)

 

 

 

Unit-linked contract income

 

(498

)

 

 

207

 

Securitization entities income

 

 

 

 

 

Certain partnership distributions

 

 

 

 

(3

)

Settlement of foreign currency earnings hedges

 

 

 

 

 

TSA fees

 

47

 

 

 

35

 

Divested businesses

 

66

 

 

 

912

 

Total adjusted revenues

$

17,724

 

 

$

16,707

 

 

 

 

 

Total expenses

$

15,041

 

 

$

15,271

 

Less: Adjustments related to net investment gains (losses) and net derivative gains (losses)

 

(19

)

 

 

(3

)

Less: Goodwill impairment

 

 

 

 

 

Less: Other adjustments to expenses:

 

 

 

PBC hedge adjustments

 

7

 

 

 

9

 

Inflation and pass-through adjustments

 

39

 

 

 

(78

)

GMIB costs and amortization of DAC and VOBA related to GMIB fees and GMIB costs

 

(44

)

 

 

115

 

Market value adjustments and amortization of DAC, VOBA and negative VOBA related to market value adjustments

 

12

 

 

 

23

 

PAB hedge adjustments

 

 

 

 

 

Unit-linked contract costs

 

(505

)

 

 

210

 

Securitization entities debt expense

 

 

 

 

 

Noncontrolling interest

 

(7

)

 

 

(6

)

Regulatory implementation costs

 

 

 

 

(3

)

Acquisition, integration and other costs

 

7

 

 

 

4

 

TSA fees

 

47

 

 

 

35

 

Divested businesses

 

55

 

 

 

824

 

Total adjusted expenses

$

15,449

 

 

$

14,141

 

 

 

 

 

See footnotes on last page.

 

 

 

MetLife, Inc.

(Unaudited)

(In millions, except per share and ratio data)

 

 

 

 

 

For the Three Months Ended

 

 

March 31,

 

 

 

2022

 

 

 

2021

 

Expense Detail and Ratios

 

 

 

 

 

 

 

 

 

Reconciliation of Capitalization of DAC to Adjusted Capitalization of DAC

 

 

 

 

Capitalization of DAC

 

$

(650

)

 

$

(775

)

Less: Divested businesses

 

 

(11

)

 

 

(89

)

Adjusted capitalization of DAC

 

$

(639

)

 

$

(686

)

 

 

 

 

 

Reconciliation of Other Expenses to Adjusted Other Expenses

 

 

 

 

Other expenses

 

$

2,917

 

 

$

3,116

 

Less: Noncontrolling interests

 

 

(7

)

 

 

(6

)

Less: Regulatory implementation costs

 

 

 

 

 

(3

)

Less: Acquisition, integration and other costs

 

 

7

 

 

 

4

 

Less: TSA fees

 

 

47

 

 

 

35

 

Less: Divested businesses

 

 

32

 

 

 

232

 

Adjusted other expenses

 

$

2,838

 

 

$

2,854

 

 

 

 

 

 

Other Detail and Ratios

 

 

 

 

Other expenses

 

$

2,917

 

 

$

3,116

 

Capitalization of DAC

 

 

(650

)

 

 

(775

)

Other expenses, net of capitalization of DAC

 

$

2,267

 

 

$

2,341

 

 

 

 

 

 

Premiums, fees and other revenues

 

$

12,849

 

 

$

12,349

 

 

 

 

 

 

Expense ratio

 

 

17.6

%

 

 

19.0

%

 

 

 

 

 

Direct expenses

 

$

1,337

 

 

$

1,259

 

Less: Total notable items related to direct expenses (2)

 

 

 

 

 

 

Direct expenses, excluding total notable items related to direct expenses (2)

 

$

1,337

 

 

$

1,259

 

 

 

 

 

 

Adjusted other expenses

 

$

2,838

 

 

$

2,854

 

Adjusted capitalization of DAC

 

 

(639

)

 

 

(686

)

Adjusted other expenses, net of adjusted capitalization of DAC

 

 

2,199

 

 

 

2,168

 

Less: Total notable items related to adjusted other expenses (2)

 

 

 

 

 

 

Adjusted other expenses, net of adjusted capitalization of DAC, excluding total notable items related to adjusted other expenses (2)

 

$

2,199

 

 

$

2,168

 

 

 

 

 

 

Adjusted premiums, fees and other revenues

 

$

12,732

 

 

$

11,413

 

Less: PRT

 

 

1,258

 

 

 

 

Adjusted premiums, fees and other revenues, excluding PRT

 

$

11,474

 

 

$

11,413

 

 

 

 

 

 

Direct expense ratio

 

 

10.5

%

 

 

11.0

%

Direct expense ratio, excluding total notable items related to direct expenses and PRT (2)

 

 

11.7

%

 

 

11.0

%

Adjusted expense ratio

 

 

17.3

%

 

 

19.0

%

Adjusted expense ratio, excluding total notable items related to adjusted other expenses and PRT (2)

 

 

19.2

%

 

 

19.0

%

 

 

 

 

 

See footnotes on last page.

MetLife, Inc.

(Unaudited)

(In millions, except per share data)

 

 

 

 

 

March 31,

Equity Details

 

 

2022

 

 

 

2021

 

Total MetLife, Inc.'s stockholders' equity

 

$

53,965

 

 

$

65,864

 

Less: Preferred stock

 

 

3,818

 

 

 

4,312

 

MetLife, Inc.'s common stockholders' equity

 

 

50,147

 

 

 

61,552

 

Less: Net unrealized investment gains (losses), net of income tax

 

 

5,182

 

 

 

16,712

 

Defined benefit plans adjustment, net of income tax

 

 

(1,577

)

 

 

(1,848

)

Total MetLife, Inc.'s common stockholders' equity, excluding AOCI other than FCTA

 

 

46,542

 

 

 

46,688

 

Less: Goodwill, net of income tax

 

 

9,163

 

 

 

9,571

 

VODA and VOCRA, net of income tax

 

 

699

 

 

 

807

 

Total MetLife, Inc.'s tangible common stockholders' equity

 

$

36,680

 

 

$

36,310

 

 

 

 

 

 

March 31,

 

 

 

2022

 

 

 

2021

 

Total MetLife, Inc.'s common stockholders' equity, excluding AOCI other than FCTA

 

$

46,542

 

 

$

46,688

 

Less: Accumulated year-to-date total notable items (2)

 

 

 

 

 

 

Total MetLife, Inc.'s common stockholders' equity, excluding total notable items (excludes AOCI other than FCTA) (2)

 

 

46,542

 

 

 

46,688

 

Less: Goodwill, net of income tax

 

 

9,163

 

 

 

9,571

 

VODA and VOCRA, net of income tax

 

 

699

 

 

 

807

 

Total MetLife, Inc.'s tangible common stockholders' equity, excluding total notable items (2)

 

$

36,680

 

 

$

36,310

 

 

 

 

 

 

 

 

March 31,

Book Value (4)

 

 

2022

 

 

 

2021

 

Book value per common share

 

$

61.55

 

 

$

70.08

 

Less: Net unrealized investment gains (losses), net of income tax

 

 

6.36

 

 

 

19.02

 

Defined benefit plans adjustment, net of income tax

 

 

(1.93

)

 

 

(2.10

)

Book value per common share, excluding AOCI other than FCTA

 

 

57.12

 

 

 

53.16

 

Less: Goodwill, net of income tax

 

 

11.24

 

 

 

10.90

 

VODA and VOCRA, net of income tax

 

 

0.86

 

 

 

0.92

 

Book value per common share - tangible common stockholders' equity

 

$

45.02

 

 

$

41.34

 

 

 

 

 

 

Common shares outstanding, end of period (5)

 

 

814.8

 

 

 

878.3

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months
Ended

 

 

March 31,

Average Common Stockholders' Equity

 

 

2022

 

 

 

2021

 

Average common stockholders' equity

 

$

56,906

 

 

$

65,899

 

Average common stockholders' equity, excluding AOCI other than FCTA

 

$

47,067

 

 

$

47,534

 

Average common stockholders' equity, excluding total notable items (excludes AOCI other than FCTA) (2)

 

$

47,067

 

 

$

47,534

 

Average tangible common stockholders' equity

 

$

37,166

 

 

$

36,878

 

Average tangible common stockholders' equity, excluding total notable items (2)

 

$

37,166

 

 

$

36,878

 

 

 

 

 

 

See footnotes on last page.

 

 

 

 

MetLife, Inc.

(Unaudited)

 

 

 

 

 

 

 

For the Three Months Ended

 

 

March 31, (6)

 

 

2022

 

2021

Return on Equity

 

 

 

 

Return on MetLife, Inc.'s:

 

 

 

 

Common stockholders' equity

 

4.3%

 

1.8%

 

 

 

 

 

Adjusted return on MetLife, Inc.'s:

 

 

 

 

Common stockholders' equity

 

12.1%

 

11.9%

Common stockholders' equity, excluding AOCI other than FCTA

 

14.7%

 

16.5%

Common stockholders' equity, excluding total notable items (excludes AOCI other than FCTA) (2)

 

14.7%

 

16.5%

Tangible common stockholders' equity (7)

 

18.8%

 

21.5%

Tangible common stockholders' equity, excluding total notable items (2), (7)

 

18.8%

 

21.5%

 

 

 

 

 

Adjusted Return on Allocated Equity:

 

 

 

 

U.S.

 

24.3%

 

33.7%

Asia

 

16.1%

 

17.0%

Latin America

 

20.8%

 

5.8%

EMEA

 

9.2%

 

10.0%

MetLife Holdings

 

13.7%

 

23.7%

 

 

 

 

 

Adjusted Return on Allocated Tangible Equity:

 

 

 

 

U.S.

 

32.6%

 

39.3%

Asia

 

24.1%

 

25.4%

Latin America

 

32.5%

 

9.1%

EMEA

 

13.7%

 

17.1%

MetLife Holdings

 

15.0%

 

26.0%

 

 

 

 

 

See footnotes on last page.

 

 

 

 

MetLife, Inc.

Adjusted Earnings Available to Common Shareholders

(Unaudited)

(In millions)

 

 

 

 

 

 

 

For the Three Months Ended

 

 

March 31,

 

 

2022

 

2021

 

 

 

 

 

U.S. (3):

 

 

 

 

 

 

 

 

 

Adjusted earnings available to common shareholders

 

$

693

 

$

784

Less: Total notable items (2)

 

 

 

 

Adjusted earnings available to common shareholders, excluding total notable items (2)

 

$

693

 

$

784

 

 

 

 

 

Adjusted premiums, fees and other revenues

 

$

7,887

 

$

6,392

Less: PRT

 

 

1,258

 

 

Adjusted premiums, fees and other revenues, excluding PRT

 

$

6,629

 

$

6,392

 

 

 

 

 

 

 

 

 

 

Group Benefits (3):

 

 

 

 

 

 

 

 

 

Adjusted earnings available to common shareholders

 

$

112

 

$

93

Less: Total notable items (2)

 

 

 

 

Adjusted earnings available to common shareholders, excluding total notable items (2)

 

$

112

 

$

93

 

 

 

 

 

Adjusted premiums, fees and other revenues

 

$

6,004

 

$

5,636

 

 

 

 

 

 

 

 

 

 

Retirement & Income Solutions (3):

 

 

 

 

 

 

 

 

 

Adjusted earnings available to common shareholders

 

$

581

 

$

691

Less: Total notable items (2)

 

 

 

 

Adjusted earnings available to common shareholders, excluding total notable items (2)

 

$

581

 

$

691

 

 

 

 

 

Adjusted premiums, fees and other revenues

 

$

1,883

 

$

756

Less: PRT

 

 

1,258

 

 

Adjusted premiums, fees and other revenues, excluding PRT

 

$

625

 

$

756

 

 

 

 

 

See footnotes on last page.

 

 

MetLife, Inc.

Adjusted Earnings Available to Common Shareholders (Continued)

(Unaudited)

(In millions)

 

 

 

 

 

 

 

 

For the Three Months Ended

 

 

 

March 31,

 

 

 

 

2022

 

 

 

2021

 

 

 

 

 

 

 

 

Asia:

 

 

 

 

 

 

 

 

 

 

 

Adjusted earnings available to common shareholders

 

$

580

 

 

$

623

 

 

Less: Total notable items (2)

 

 

 

 

 

 

 

Adjusted earnings available to common shareholders, excluding total notable items (2)

 

$

580

 

 

$

623

 

 

 

 

 

 

 

 

Adjusted earnings available to common shareholders on a constant currency basis

 

$

580

 

 

$

605

 

 

Adjusted earnings available to common shareholders, excluding total notable items, on a constant currency basis (2)

 

$

580

 

 

$

605

 

 

 

 

 

 

 

 

Adjusted premiums, fees and other revenues

 

$

2,022

 

 

$

2,161

 

 

Adjusted premiums, fees and other revenues, on a constant currency basis

 

$

2,022

 

 

$

2,003

 

 

 

 

 

 

 

 

Latin America:

 

 

 

 

 

 

 

 

 

 

 

Adjusted earnings available to common shareholders

 

$

142

 

 

$

40

 

 

Less: Total notable items (2)

 

 

 

 

 

 

 

Adjusted earnings available to common shareholders, excluding total notable items (2)

 

$

142

 

 

$

40

 

 

 

 

 

 

 

 

Adjusted earnings available to common shareholders on a constant currency basis

 

$

142

 

 

$

31

 

 

Adjusted earnings available to common shareholders, excluding total notable items, on a constant currency basis (2)

 

$

142

 

 

$

31

 

 

 

 

 

 

 

 

Adjusted premiums, fees and other revenues

 

$

1,031

 

 

$

875

 

 

Adjusted premiums, fees and other revenues, on a constant currency basis

 

$

1,031

 

 

$

848

 

 

 

 

 

 

 

 

EMEA:

 

 

 

 

 

 

 

 

 

 

 

Adjusted earnings available to common shareholders

 

$

52

 

 

$

71

 

 

Less: Total notable items (2)

 

 

 

 

 

 

 

Adjusted earnings available to common shareholders, excluding total notable items (2)

 

$

52

 

 

$

71

 

 

 

 

 

 

 

 

Adjusted earnings available to common shareholders on a constant currency basis

 

$

52

 

 

$

61

 

 

Adjusted earnings available to common shareholders, excluding total notable items, on a constant currency basis (2)

 

$

52

 

 

$

61

 

 

 

 

 

 

 

 

Adjusted premiums, fees and other revenues

 

$

606

 

 

$

678

 

 

Adjusted premiums, fees and other revenues, on a constant currency basis

 

$

606

 

 

$

631

 

 

 

 

 

 

 

 

MetLife Holdings (3):

 

 

 

 

 

 

 

 

 

 

 

Adjusted earnings available to common shareholders

 

$

377

 

 

$

618

 

 

Less: Total notable items (2)

 

 

 

 

 

 

 

Adjusted earnings available to common shareholders, excluding total notable items (2)

 

$

377

 

 

$

618

 

 

 

 

 

 

 

 

Adjusted premiums, fees and other revenues

 

$

1,089

 

 

$

1,163

 

 

 

 

 

 

 

 

Corporate & Other (3):

 

 

 

 

 

 

 

 

 

 

 

Adjusted earnings available to common shareholders

 

$

(117

)

 

$

(171

)

 

Less: Total notable items (2)

 

 

 

 

 

 

 

Adjusted earnings available to common shareholders, excluding total notable items (2)

 

$

(117

)

 

$

(171

)

 

 

 

 

 

 

 

Adjusted premiums, fees and other revenues

 

$

97

 

 

$

144

 

 

 

 

 

 

 

 

See footnotes on last page.

 

 

 

 

 

MetLife, Inc.

(Unaudited)

 

 

 

 

 

For the Three Months Ended

 

March 31,

 

2022

 

2021

Variable investment income (post-tax, in millions) (8)

 

 

 

U.S.

 

 

 

Group Benefits

$

12

 

$

11

Retirement and Income Solutions

 

277

 

 

390

Total U.S.

 

289

 

 

401

Asia

 

288

 

 

273

Latin America

 

16

 

 

17

EMEA

 

 

 

MetLife Holdings

 

208

 

 

381

Corporate & Other

 

135

 

 

26

Total variable investment income

$

936

 

$

1,098

MetLife, Inc.

(Unaudited)

 

Cash & Capital (9), (10), (11)

 

 

 

(In billions)

 

March 31,

 

 

2022

 

 

 

2021

 

Holding Companies Cash & Liquid Assets

$

4.2

 

 

$

3.8

 

 

 

 

 

Group Benefits Underwriting (12)

 

 

 

 

For the Three Months Ended

 

March 31,

 

 

2022

 

 

 

2021

 

Group Life Mortality Ratio (13)

 

103.8

%

 

 

106.3

%

Footnotes

 

 

(1)

Adjusted earnings available to common shareholders, excluding total notable items, per diluted common share is calculated on a standalone basis and may not equal (i) adjusted earnings available to common shareholders per diluted common share, less (ii) total notable items per diluted common share.

 

 

(2)

Notable items reflect the unexpected impact of events that affect MetLife’s results, but that were unknown and that MetLife could not anticipate when it devised its business plan. Notable items also include certain items regardless of the extent anticipated in the business plan, to help investors have a better understanding of MetLife's results and to evaluate and forecast those results. Notable items can affect MetLife’s results either positively or negatively.

 

 

(3)

Results on a constant currency basis are not included as constant currency impact is not significant.

 

 

(4)

Book values exclude $3,818 million and $4,312 million of equity related to preferred stock at March 31, 2022 and 2021, respectively.

 

 

(5)

There were share repurchases of $915 million for the three months ended March 31, 2022.

 

 

(6)

Annualized using quarter-to-date results.

 

 

(7)

Adjusted earnings available to common shareholders, used to calculate the adjusted return on tangible common stockholders' equity, excludes the impact of amortization of VODA and VOCRA, net of income tax, for the three months ended March 31, 2022 and 2021 of $18 million and $20 million, respectively.

 

 

(8)

Assumes a 21% tax rate.

 

 

(9)

The 2021 combined NAIC U.S. risk based capital ratio was 386%. This ratio includes MetLife, Inc.'s principal U.S. insurance subsidiaries, excluding American Life Insurance Company. MetLife calculates RBC annually as of December 31 and, accordingly, the calculation does not reflect conditions and factors occurring after the year end.

 

 

(10)

The total U.S. statutory adjusted capital is expected to be approximately $18.7 billion at March 31, 2022, down 2% from December 31, 2021. This balance includes MetLife, Inc.'s principal U.S. insurance subsidiaries, excluding American Life Insurance Company.

 

 

(11)

As of December 31, 2021, the solvency margin ratio of MetLife's insurance subsidiary in Japan was 947%, which is calculated quarterly and does not reflect conditions and factors occurring after December 31, 2021.

 

 

(12)

Results are derived from insurance and non-administrative services-only contracts.

 

 

(13)

Excludes certain experience-rated contracts and includes accidental death and dismemberment. For the three months ended March 31, 2022 there was an estimated 14 percentage point impact to the ratio due to COVID-19 reported deaths with an estimated impact to adjusted earnings of approximately ($230) million, and an estimated 1-2 percentage point impact to the ratio due to excess non-COVID mortality.

 

For Media: Meredith Hyland (212) 578-9415
For Investors: John Hall (212) 578-7888

Source: MetLife, Inc.

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