MetLife Proclaims Third Quarter 2019 Outcomes

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NEW YORK–(BUSINESS WIRE)– MetLife, Inc. (NYSE: MET) right this moment introduced its outcomes for the third quarter ended September 30, 2019.

Third Quarter Outcomes Abstract

Web earnings of $2.2 billion, or $2.30 per share, in comparison with web earnings of $880 million, or $Zero.88 per share, within the third quarter of 2018.
Adjusted earnings of $1.2 billion, or $1.27 per share, in comparison with adjusted earnings of $1.four billion, or $1.38 per share within the third quarter of 2018.
Adjusted earnings, excluding whole notable objects, of $1.four billion, or $1.54 per share, in comparison with adjusted earnings, excluding whole notable objects of $1.5 billion, or $1.53 per share within the third quarter of 2018.
E-book worth of $70.71 per share, up 44 % from $48.94 per share at September 30, 2018.
E-book worth, excluding gathered different complete earnings (AOCI) aside from international forex translation changes (FCTA), of $48.56 per share, up 13 % from $42.97 per share at September 30, 2018.
Return on fairness (ROE) of 13.7 %.
Adjusted ROE, excluding AOCI aside from FCTA, of 10.7 %.
Adjusted ROE, excluding whole notable objects (excludes AOCI aside from FCTA), of 12.9 %.

“MetLife reported strong third quarter adjusted earnings per share, pushed by quantity development, variable funding earnings and the cumulative influence of our capital administration,” mentioned Michel Khalaf, president and CEO of MetLife, Inc. “Our efficiency highlights MetLife’s resilience within the face of market headwinds and the energy of our various combine of companies.”

Third Quarter 2019 Abstract

($ in tens of millions, besides per share knowledge)

Three months ended

September 30,

2019

2018

Change

Premiums, charges and different revenues

$12,640

$12,064

5%

Web funding earnings

four,623

four,486

three%

Web funding features (losses)

161

117

38%

Web by-product features (losses)

1,254

(378)

Complete revenues

$18,678

$16,289

15%

Complete adjusted revenues

$16,918

$16,400

three%

Adjusted premiums, charges and different revenues

$12,445

$11,938

four%

Adjusted premiums, charges and different revenues, excluding pension danger switch (PRT)

$11,152

$10,920

2%

Web earnings (loss)

$2,152

$880

145%

Web earnings (loss) per share

$2.30

$Zero.88

161%

Adjusted earnings

$1,190

$1,376

(14)%

Adjusted earnings per share

$1.27

$1.38

(Eight)%

Adjusted earnings, excluding whole notable objects

$1,438

$1,532

(6)%

Adjusted earnings, excluding whole notable objects per share

$1.54

$1.53

1%

E-book worth per share

$70.71

$48.94

44%

E-book worth per share, excluding AOCI aside from FCTA

$48.56

$42.97

13%

Expense ratio

19.2%

20.5%

Direct expense ratio, excluding whole notable objects associated to direct bills and PRT

12.2%

13.1%

Adjusted expense ratio, excluding whole notable objects associated to different bills and PRT

19.9%

20.7%

ROE

13.7%

7.1%

ROE, excluding AOCI aside from FCTA

19.four%

Eight.three%

Adjusted ROE, excluding AOCI aside from FCTA

10.7%

12.9%

Adjusted ROE, excluding whole notable objects (excludes AOCI aside from FCTA)

12.9%

14.four%

MetLife reported third quarter 2019 premiums, charges and different revenues of $12.6 billion, up 5 % over the third quarter of 2018. Adjusted premiums, charges and different revenues had been $12.four billion, up four %, and four % on a relentless forex foundation over the prior-year interval. Excluding pension danger transfers, adjusted premiums, charges and different revenues had been $11.2 billion, up 2 %, and a couple of % on a relentless forex foundation.

Web funding earnings was $four.6 billion, up three %. The rise in web funding earnings was pushed by favorable modifications within the estimated truthful worth of sure securities which don’t qualify as separate accounts underneath GAAP. On an adjusted foundation, web funding earnings was $four.5 billion.

Web by-product features amounted to $1.three billion, or $991 million after tax throughout the quarter.

Web earnings was $2.2 billion, in comparison with web earnings of $880 million within the third quarter of 2018. On a per share foundation, web earnings was $2.30, in comparison with web earnings of $Zero.88 within the prior-year interval.

MetLife reported adjusted earnings of $1.2 billion, down 14 %, and down 13 % on a relentless forex foundation. On a per share foundation, which incorporates the influence of share repurchases, adjusted earnings had been $1.27, down Eight % from the prior-year interval.

Annual Actuarial Assumption Overview

Within the third quarter of 2019, MetLife carried out the corporate’s annual international actuarial assumption evaluate. The actuarial assumption evaluate and different insurance coverage changes throughout the quarter diminished web earnings and adjusted earnings by $179 million and $160 million, respectively.

Info concerning the non-GAAP and different monetary measures included on this information launch and reconciliation of the non-GAAP monetary measures to GAAP measures are in “Non-GAAP and Different Monetary Disclosures” under and within the tables that accompany this information launch.

Supplemental slides for the third quarter of 2019, titled “3Q19 Supplemental Slides,” can be found on the MetLife Investor Relations web site at www.metlife.com and within the Kind Eight-Okay furnished by MetLife to the U.S. Securities and Change Fee in reference to this earnings information launch.

Adjusted Earnings by Phase Abstract*

Three months ended

September 30, 2019

Phase

Change from

prior-year interval

Change from

prior-year interval

(on a relentless

forex foundation)

U.S.

(11)%

Asia

31%

33%

Latin America

(9)%

(four)%

Europe, the Center East and Africa (EMEA)

(four)%

(2)%

MetLife Holdings

(54)%

*The chances on this desk are on a reported and fixed forex foundation, and don’t exclude notable objects.

Enterprise Discussions

All comparisons of the outcomes for the third quarter of 2019 within the enterprise discussions that comply with are with the third quarter of 2018, except in any other case famous. See the third quarter of 2019 notable objects desk that follows the Enterprise Discussions part of this launch for added info on notable objects incurred within the third quarter of 2019.

U.S.

($ in tens of millions)

Three months ended
September 30, 2019

Three months ended
September 30, 2018

Change

Adjusted earnings

$707

$795

(11)%

Adjusted premiums, charges and different revenues

$7,391

$6,889

7%

Adjusted premiums, charges and different revenues, excluding PRT

$6,098

$5,871

four%

Notable merchandise(s)

$Zero

$37

Adjusted earnings for the U.S. had been $707 million, down 11 %.
Excluding notable objects from each durations, adjusted earnings had been down 7 %.
Adjusted return on allotted fairness was 26.four %, and adjusted return on allotted tangible fairness was 30.Zero %.
Adjusted premiums, charges and different revenues had been $7.four billion, up 7 %.
Excluding pension danger transfers, adjusted premiums, charges and different revenues had been $6.1 billion, up four %.

Group Advantages

($ in tens of millions)

Three months ended
September 30, 2019

Three months ended
September 30, 2018

Change

Adjusted earnings

$366

$370

(1)%

Adjusted premiums, charges and different revenues

$four,582

$four,317

6%

Notable merchandise(s)

$Zero

$37

Adjusted earnings for Group Advantages had been $366 million, down 1 %.
Excluding notable objects from each durations, adjusted earnings had been up 10 %, pushed by favorable expense margins and quantity development.
Adjusted premiums, charges and different revenues had been $four.6 billion, up 6 %, pushed by sturdy development in voluntary merchandise.
Gross sales for Group Advantages had been up 10 % year-to-date in comparison with the primary three quarters of 2018.

Retirement and Revenue Options

($ in tens of millions)

Three months ended
September 30, 2019

Three months ended
September 30, 2018

Change

Adjusted earnings

$284

$339

(16)%

Adjusted premiums, charges and different revenues

$1,878

$1,658

13%

Adjusted premiums, charges and different revenues, excluding PRT

$585

$640

(9)%

Notable merchandise(s)

$Zero

$Zero

Adjusted earnings for Retirement and Revenue Options had been $284 million, down 16 %, pushed by decrease funding margins and fewer favorable underwriting.
Adjusted premiums, charges and different revenues had been $1.9 billion, up 13 %, pushed by increased pension danger switch transactions.
Excluding pension danger transfers, adjusted premiums, charges and different revenues had been $585 million, down 9 %, pushed by decrease gross sales of institutional earnings annuities.

Property & Casualty

($ in tens of millions)

Three months ended
September 30, 2019

Three months ended
September 30, 2018

Change

Adjusted earnings

$57

$86

(34)%

Adjusted premiums, charges and different revenues

$931

$914

2%

Notable merchandise(s)

$Zero

$Zero

Adjusted earnings for Property & Casualty had been $57 million, down 34 %, pushed by unfavorable underwriting.
Adjusted premiums, charges and different revenues had been $931 million, up 2 %.
Pre-tax disaster losses and prior 12 months growth totaled $64 million, in comparison with $46 million within the prior-year interval.
Gross sales for Property & Casualty had been $160 million, down four %.

ASIA

($ in tens of millions)

Three months ended
September 30, 2019

Three months ended
September 30, 2018

Change

Adjusted earnings

$349

$266

31%

Adjusted earnings (fixed forex)

$349

$262

33%

Adjusted premiums, charges and different revenues

$2,098

$2,129

(1)%

Notable merchandise(s)

$(19)

$(86)

Adjusted earnings for Asia had been $349 million, up 31 %, and up 33 % on a relentless forex foundation, primarily as a result of smaller unfavourable influence within the present interval from the annual actuarial assumption evaluate.
Excluding notable objects from each durations, adjusted earnings had been up 5 %, and up 6 % on fixed forex foundation, pushed by quantity development and favorable variable funding earnings.
Adjusted return on allotted fairness was 9.Eight %, and adjusted return on allotted tangible fairness was 14.9 %.
Adjusted premiums, charges and different revenues had been $2.1 billion, down 1 %, and down three % on a relentless forex foundation.
Gross sales for Asia had been $659 million, down 7 % on a relentless forex foundation. Whereas Japan gross sales had been down 15 %, gross sales in Different Asia had been up 7 %, pushed by development in Korea, China and India.

LATIN AMERICA

($ in tens of millions)

Three months ended
September 30, 2019

Three months ended
September 30, 2018

Change

Adjusted earnings

$155

$170

(9)%

Adjusted earnings (fixed forex)

$155

$162

(four)%

Adjusted premiums, charges and different revenues

$967

$928

four%

Notable merchandise(s)

$10

$28

Adjusted earnings for Latin America had been $155 million, down 9 %, and down four % on a relentless forex foundation, primarily as a result of a smaller constructive influence within the present interval from the annual actuarial assumption evaluate.
Excluding notable objects from each durations, adjusted earnings had been up 2 %, and up 7 % on fixed forex foundation as a result of increased Chilean encaje returns and quantity development, partially offset by decrease funding margins.
Adjusted return on allotted fairness was 20.9 %, and adjusted return on allotted tangible fairness was 34.6 %.
Adjusted premiums, charges and different revenues had been $967 million, up four %, and up Eight % on a relentless forex foundation, primarily pushed by development throughout the area.
Gross sales for Latin America had been $225 million, up 12 % on a relentless forex foundation, pushed by increased gross sales in Chile, Mexico and Brazil.

EMEA

($ in tens of millions)

Three months ended
September 30, 2019

Three months ended
September 30, 2018

Change

Adjusted earnings

$53

$55

(four)%

Adjusted earnings (fixed forex)

$53

$54

(2)%

Adjusted premiums, charges and different revenues

$656

$634

three%

Notable merchandise(s)

$(13)

$(23)

Adjusted earnings for EMEA had been $53 million, down four %, and down 2 % on a relentless forex foundation, primarily as a result of much less favorable underwriting and better taxes, partially offset by smaller unfavourable influence from the annual actuarial assumption evaluate.
Excluding notable objects from each durations, adjusted earnings had been down 15 %, and down 13 % on a relentless forex foundation, as much less favorable underwriting and better taxes had been partially offset by favorable expense margins.
Adjusted return on allotted fairness was 7.6 %, and adjusted return on allotted tangible fairness was 13.Eight %.
Adjusted premiums, charges and different revenues had been $656 million, up three %, and up 6 % on a relentless forex foundation.
Gross sales for EMEA had been $207 million, up 13 % on a relentless forex foundation, pushed by increased development throughout the area.

METLIFE HOLDINGS

($ in tens of millions)

Three months ended
September 30, 2019

Three months ended
September 30, 2018

Change

Adjusted earnings

$149

$327

(54)%

Adjusted premiums, charges and different revenues

$1,261

$1,305

(three)%

Notable merchandise(s)

$(138)

$(24)

Adjusted earnings for MetLife Holdings had been $149 million, down 54 %, primarily as a result of influence of the annual actuarial assumption evaluate and different insurance coverage changes.
Excluding notable objects from each durations, adjusted earnings had been down 18 %, primarily as a result of decrease funding margins.
Adjusted return on allotted fairness was 6.2 %, and adjusted return on allotted tangible fairness was 7.1 %.
Adjusted premiums, charges and different revenues had been $1.three billion, down three %.

CORPORATE & OTHER

($ in tens of millions)

Three months ended
September 30, 2019

Three months ended
September 30, 2018

Change

Adjusted earnings

$(223)

$(237)

Notable merchandise(s)

$(88)

$(88)

Company & Different had an adjusted lack of $223 million, in comparison with an adjusted lack of $237 million within the third quarter of 2018. The notable merchandise in each durations is expounded to the corporate’s beforehand introduced price saving initiative.

INVESTMENTS

($ in tens of millions)

Three months ended
September 30, 2019

Three months ended
September 30, 2018

Change

Web funding earnings (as reported on an adjusted foundation)

$four,473

$four,462

—%

As reported on an adjusted foundation, web funding earnings was $four.5 billion, flat in comparison with the prior-year interval. Variable funding earnings was $326 million, in comparison with $280 million within the third quarter of 2018, pushed by increased non-public fairness and hedge fund earnings.

THIRD QUARTER 2019 NOTABLE ITEMS

($ in tens of millions)

Adjusted Earnings

Three months ended September 30, 2019

Notable Objects

U.S.

Asia

Latin
America

EMEA

MetLife
Holdings

Company
&
Different

Complete

Group
Advantages

Retirement
and Revenue
Options

Property
&
Casualty

Actuarial assumption evaluate and different insurance coverage changes

$(19)

$10

$(13)

$(138)

$(160)

Expense initiative prices

$(88)

$(88)

Complete notable objects

$Zero

$Zero

$Zero

$(19)

$10

$(13)

$(138)

$(88)

$(248)

About MetLife

MetLife, Inc. (NYSE: MET), by means of its subsidiaries and associates (MetLife), is likely one of the world’s main monetary providers corporations, offering insurance coverage, annuities, worker advantages and asset administration to assist its particular person and institutional clients navigate their altering world. Based in 1868, MetLife has operations in additional than 40 markets globally and holds main market positions in america, Japan, Latin America, Asia, Europe and the Center East. For extra info, go to www.metlife.com.

Convention Name

MetLife will maintain its third quarter 2019 earnings convention name and audio webcast on Thursday, October 31, 2019, from 9-10 a.m. (ET). The convention name can be obtainable reside by way of phone and the web. To hear by way of phone, dial 800-230-1085 (U.S.) or 612-288-Zero340 (exterior the U.S.). To hearken to the convention name by way of the web, go to www.metlife.com by means of a hyperlink on the Investor Relations web page. Those that wish to hearken to the decision by way of phone or the web ought to dial in or go to the web site at the very least 15 minutes previous to the decision to register, and/or obtain and set up any vital audio software program.

The convention name can be obtainable for replay by way of phone and the web starting at 11 a.m. (ET) on Thursday, October 31, 2019, till Thursday, November 7, 2019, at 11:59 p.m. (ET). To hearken to a replay of the convention name by way of phone, dial 800-475-6701 (U.S.) or 320-365-3844 (exterior the U.S.). The entry code for the replay is 462463. To entry the replay of the convention name over the web, go to the above-mentioned web site.

Non-GAAP and Different Monetary Disclosures

Any references on this information launch (besides on this part and the tables that accompany this launch) to:

must be learn as, respectively:

(i)

web earnings (loss);

(i)

web earnings (loss) obtainable to MetLife, Inc.’s frequent shareholders;

(ii)

web earnings (loss) per share;

(ii)

web earnings (loss) obtainable to MetLife, Inc.’s frequent shareholders per diluted frequent share;

(iii)

adjusted earnings;

(iii)

adjusted earnings obtainable to frequent shareholders;

(iv)

adjusted earnings per share;

(iv)

adjusted earnings obtainable to frequent shareholders per diluted frequent share;

(v)

guide worth per share;

(v)

guide worth per frequent share;

(vi)

guide worth per share, excluding AOCI aside from FCTA;

(vi)

guide worth per frequent share, excluding AOCI aside from FCTA;

(vii)

guide worth per share-tangible frequent stockholders’ fairness;

(vii)

guide worth per frequent share-tangible frequent stockholders’ fairness;

(viii)

premiums, charges and different revenues;

(viii)

premiums, charges and different revenues (adjusted);

(ix)

return on fairness;

(ix)

return on MetLife, Inc.’s frequent stockholders’ fairness;

(x)

return on fairness, excluding AOCI aside from FCTA;

(x)

return on MetLife, Inc.’s frequent stockholders’ fairness, excluding AOCI, aside from FCTA;

(xi)

adjusted return on fairness, excluding AOCI aside from FCTA;

(xi)

adjusted return on MetLife, Inc.’s frequent stockholders’ fairness, excluding AOCI aside from FCTA;

(xii)

tangible return on fairness; and

(xii)

return on MetLife, Inc.’s tangible frequent stockholders’ fairness; and

(xiii)

adjusted tangible return on fairness.

(xiii)

adjusted return on MetLife, Inc.’s tangible frequent stockholders’ fairness.

On this information launch, MetLife presents sure measures of its efficiency on a consolidated and section foundation that aren’t calculated in accordance with accounting rules typically accepted in america of America (GAAP). MetLife believes that these non-GAAP monetary measures improve the understanding of MetLife’s efficiency by highlighting the outcomes of operations and the underlying profitability drivers of the enterprise. Phase-specific monetary measures are calculated utilizing solely the portion of consolidated outcomes attributable to that particular section.

The next non-GAAP monetary measures shouldn’t be considered as substitutes for probably the most instantly comparable monetary measures calculated in accordance with GAAP:

Non-GAAP monetary measures:

Comparable GAAP monetary measures:

(i)

whole adjusted revenues;

(i)

whole revenues;

(ii)

whole adjusted bills;

(ii)

whole bills;

(iii)

adjusted premiums, charges and different revenues;

(iii)

premiums, charges and different revenues;

(iv)

adjusted premiums, charges and different revenues, excluding PRT;

(iv)

premiums, charges and different revenues;

(v)

adjusted earnings;

(v)

earnings (loss) from persevering with operations, web of earnings tax;

(vi)

web funding earnings, as reported on an adjusted foundation;

(vi)

web funding earnings;

(vii)

capitalization of deferred coverage acquisition prices (DAC), as reported on an adjusted foundation;

(vii)

capitalization of DAC;

(viii)

adjusted earnings obtainable to frequent shareholders;

(viii)

web earnings (loss) obtainable to MetLife, Inc.’s frequent shareholders;

(ix)

adjusted earnings obtainable to frequent shareholders, excluding whole notable objects;

(ix)

web earnings (loss) obtainable to MetLife, Inc.’s frequent shareholders;

(x)

adjusted earnings obtainable to frequent shareholders per diluted frequent share;

(x)

web earnings (loss) obtainable to MetLife, Inc.’s frequent shareholders per diluted frequent share;

(xi)

adjusted earnings obtainable to frequent shareholders, excluding whole notable objects, per diluted frequent share;

(xi)

web earnings (loss) obtainable to MetLife, Inc.’s frequent shareholders per diluted frequent share;

(xii)

adjusted return on fairness;

(xii)

return on fairness;

(xiii)

adjusted return on fairness, excluding AOCI aside from FCTA;

(xiii)

return on fairness;

(xiv)

adjusted tangible return on fairness;

(xiv)

return on fairness;

(xv)

funding portfolio features (losses);

(xv)

web funding features (losses);

(xvi)

by-product features (losses);

(xvi)

web by-product features (losses);

(xvii)

whole MetLife, Inc.’s tangible frequent stockholders’ fairness;

(xvii)

whole MetLife, Inc.’s stockholders’ fairness;

(xviii)

whole MetLife, Inc.’s tangible frequent stockholders’ fairness, excluding whole notable objects;

(xviii)

whole MetLife, Inc.’s stockholders’ fairness;

(xix)

whole MetLife, Inc.’s frequent stockholders’ fairness, excluding AOCI aside from FCTA;

(xix)

whole MetLife, Inc.’s stockholders’ fairness;

(xx)

whole MetLife, Inc.’s frequent stockholders’ fairness, excluding whole notable objects (excludes AOCI aside from FCTA);

(xx)

whole MetLife, Inc.’s stockholders’ fairness;

(xxi)

guide worth per frequent share, excluding AOCI aside from FCTA;

(xxi)

guide worth per frequent share;

(xxii)

guide worth per frequent share – tangible frequent stockholders’ fairness;

(xxii)

guide worth per frequent share;

(xxiii)

free money circulation of all holding corporations;

(xxiii)

MetLife, Inc. (mum or dad firm solely) web money supplied by (utilized in) working actions;

(xxiv)

different bills, as reported on an adjusted foundation;

(xxiv)

different bills;

(xxv)

different bills, web of capitalization of DAC, as reported on an adjusted foundation;

(xxv)

different bills, web of capitalization of DAC;

(xxvi)

Different bills, web of capitalization of DAC, excluding whole notable objects associated to different bills, as reported on an adjusted foundation;

(xxvi)

different bills, web of capitalization of DAC;

(xxvii)

adjusted expense ratio;

(xxvii)

expense ratio;

(xxviii)

adjusted expense ratio, excluding whole notable objects associated to different bills and PRT;

(xxviii)

expense ratio;

(xxix)

direct bills;

(xxix)

different bills;

(xxx)

direct bills, excluding whole notable objects associated to direct bills;

(xxx)

different bills;

(xxxi)

direct expense ratio; and

(xxxi)

expense ratio; and

(xxxii)

direct expense ratio, excluding whole notable objects associated to direct bills and PRT.

(xxxii)

expense ratio.

Any of those monetary measures proven on a relentless forex foundation mirror the influence of modifications in international forex trade charges and are calculated utilizing the typical international forex trade charges for the newest interval and utilized to the comparable prior interval.

Reconciliations of those non-GAAP monetary measures to probably the most instantly comparable GAAP monetary measures are included on this earnings information launch and on this interval’s quarterly monetary complement, which is obtainable at www.metlife.com.

MetLife’s definitions of non-GAAP and different monetary measures mentioned on this information launch could differ from these utilized by different corporations:

Adjusted earnings and associated measures

adjusted earnings;
adjusted earnings obtainable to frequent shareholders;
adjusted earnings obtainable to frequent shareholders on a relentless forex foundation;
adjusted earnings obtainable to frequent shareholders, excluding whole notable objects;
adjusted earnings obtainable to frequent shareholders, excluding whole notable objects, on a relentless forex foundation;
adjusted earnings obtainable to frequent shareholders per diluted frequent share;
adjusted earnings obtainable to frequent shareholders on a relentless forex foundation per diluted frequent share;
adjusted earnings obtainable to frequent shareholders, excluding whole notable objects per diluted frequent share; and
adjusted earnings obtainable to frequent shareholders, excluding whole notable objects, on a relentless forex foundation per diluted frequent share.

These measures are utilized by administration to guage efficiency and allocate sources. In line with GAAP steering for section reporting, adjusted earnings and parts of, or different monetary measures based mostly on adjusted earnings are additionally MetLife’s GAAP measures of section efficiency. Adjusted earnings and different monetary measures based mostly on adjusted earnings are additionally the measures by which MetLife senior administration’s and lots of different staff’ efficiency is evaluated for the needs of figuring out their compensation underneath relevant compensation plans. Adjusted earnings and different monetary measures based mostly on adjusted earnings permit evaluation of MetLife’s efficiency relative to its Enterprise Plan and facilitate comparisons to trade outcomes.

Adjusted earnings is outlined as adjusted revenues much less adjusted bills, web of earnings tax. Adjusted loss is outlined as unfavourable adjusted earnings. Adjusted earnings obtainable to frequent shareholders is outlined as adjusted earnings much less most popular inventory dividends.

Adjusted revenues and adjusted bills

These monetary measures, together with the associated adjusted premiums, charges and different revenues, deal with our major companies principally by excluding the influence of market volatility, which may distort developments, and revenues and prices associated to non-core merchandise and sure entities required to be consolidated underneath GAAP. Additionally, these measures exclude outcomes of discontinued operations underneath GAAP and different companies which have been or can be offered or exited by MetLife however don’t meet the discontinued operations standards underneath GAAP and are known as divested companies. Divested companies additionally consists of the online influence of transactions with exited companies which have been eradicated in consolidation underneath GAAP and prices referring to companies which have been or can be offered or exited by MetLife that don’t meet the standards to be included in outcomes of discontinued operations underneath GAAP.

Adjusted revenues additionally excludes web funding features (losses) (NIGL) and web by-product features (losses) (NDGL). Adjusted bills additionally excludes goodwill impairments.

The next extra changes are made to revenues, within the line objects indicated, in calculating adjusted revenues:

Common life and investment-type product coverage charges excludes the amortization of unearned income associated to NIGL and NDGL (Unearned income changes) and sure variable annuity assured minimal earnings advantages (GMIB) charges (GMIB charges);
Web funding earnings: (i) consists of changes for earned earnings on derivatives and amortization of premium on derivatives which can be hedges of investments or which can be used to copy sure investments however don’t qualify for hedge accounting remedy (Funding hedge changes), (ii) excludes post-tax adjusted earnings changes referring to insurance coverage joint ventures accounted for underneath the fairness methodology (Working three way partnership changes), (iii) excludes sure quantities associated to contractholder-directed fairness securities (Unit-linked contract earnings), (iv) excludes sure quantities associated to securitization entities which can be variable curiosity entities (VIEs) consolidated underneath GAAP (Securitization entities earnings); and (v) consists of distributions of earnings from sure different restricted partnership pursuits that had been beforehand accounted for underneath the price methodology, however at the moment are accounted for at estimated truthful worth, the place the change in estimated truthful worth is acknowledged in NIGL underneath GAAP (Sure partnership distributions); and
Different revenues is adjusted for settlements of international forex earnings hedges and excludes charges acquired in affiliation with providers supplied underneath transition service agreements (TSA charges).

The next extra changes are made to bills, within the line objects indicated, in calculating adjusted bills:

Policyholder advantages and claims and policyholder dividends excludes: (i) amortization of foundation changes related to de-designated truthful worth hedges of future coverage advantages (PBC hedge changes), (ii) modifications within the policyholder dividend obligation associated to NIGL and NDGL (PDO changes), (iii) inflation-indexed profit changes related to contracts backed by inflation-indexed investments and quantities related to periodic crediting fee changes based mostly on the entire return of a contractually referenced pool of belongings and different pass-through changes (Inflation and pass-through changes), (iv) advantages and hedging prices associated to GMIBs (GMIB prices), and (v) market worth changes related to surrenders or terminations of contracts (Market worth changes);
Curiosity credited to policyholder account balances consists of changes for earned earnings on derivatives and amortization of premium on derivatives which can be hedges of policyholder account balances however don’t qualify for hedge accounting remedy (PAB hedge changes) and excludes sure quantities associated to web funding earnings earned on contractholder-directed fairness securities (Unit-linked contract prices);
Amortization of DAC and worth of enterprise acquired (VOBA) excludes quantities associated to: (i) NIGL and NDGL, (ii) GMIB charges and GMIB prices and (iii) Market worth changes;
Amortization of unfavourable VOBA excludes quantities associated to Market worth changes;
Curiosity expense on debt excludes sure quantities associated to securitization entities which can be VIEs consolidated underneath GAAP (Securitization entities debt expense); and
Different bills excludes: (i) noncontrolling pursuits, (ii) implementation of latest insurance coverage regulatory requirement prices (Regulatory implementation prices), and (iii) acquisition, integration and different prices. Different bills consists of TSA charges.

Adjusted earnings additionally excludes the popularity of sure contingent belongings and liabilities that would not be acknowledged at acquisition or adjusted for throughout the measurement interval underneath GAAP enterprise mixture accounting steering.

The tax influence of the changes talked about above are calculated web of the U.S. or international statutory tax fee, which may differ from MetLife’s efficient tax fee. Moreover, the supply for earnings tax (expense) profit additionally consists of the influence associated to the timing of sure tax credit, in addition to sure tax reforms.

Funding portfolio features (losses) and by-product features (losses)

These are measures of funding and hedging exercise. Funding portfolio features (losses) principally excludes quantities which can be reported inside web funding features (losses) however don’t relate to the efficiency of the funding portfolio, akin to features (losses) on gross sales and divestitures of companies, goodwill impairment or modifications in estimated truthful worth. By-product features (losses) principally excludes earned earnings on derivatives and amortization of premium on derivatives, the place such derivatives are both hedges of investments or are used to copy sure investments, and the place such derivatives don’t qualify for hedge accounting. This earned earnings and amortization of premium is reported inside adjusted earnings and never inside by-product features (losses).

Return on fairness, allotted fairness, tangible fairness and associated measures

Complete MetLife, Inc.’s frequent stockholders’ fairness, excluding AOCI aside from FCTA: whole MetLife, Inc.’s frequent stockholders’ fairness, excluding the online unrealized funding features (losses) and outlined profit plans adjustment parts of AOCI, web of earnings tax.
Complete MetLife, Inc.’s frequent stockholders’ fairness, excluding whole notable objects (excludes AOCI aside from FCTA): whole MetLife, Inc.’s frequent stockholders’ fairness, excluding the online unrealized funding features (losses), outlined profit plans adjustment parts of AOCI and whole notable objects, web of earnings tax.
Return on MetLife, Inc.’s frequent stockholders’ fairness: web earnings (loss) obtainable to MetLife, Inc.’s frequent shareholders divided by MetLife, Inc.’s common frequent stockholders’ fairness.
Return on MetLife, Inc.’s frequent stockholders’ fairness, excluding AOCI aside from FCTA: web earnings (loss) obtainable to MetLife, Inc.’s frequent shareholders divided by MetLife, Inc.’s common frequent stockholders’ fairness, excluding AOCI aside from FCTA.
Adjusted return on MetLife, Inc.’s frequent stockholders’ fairness: adjusted earnings obtainable to frequent shareholders divided by MetLife, Inc.’s common frequent stockholders’ fairness.
Adjusted return on MetLife, Inc.’s frequent stockholders’ fairness, excluding AOCI aside from FCTA: adjusted earnings obtainable to frequent shareholders divided by MetLife, Inc.’s common frequent stockholders’ fairness, excluding AOCI aside from FCTA.
Allotted fairness: portion of MetLife, Inc.’s frequent stockholders’ fairness that administration allocates to every of its segments and sub-segments based mostly on native capital necessities and financial capital. Financial capital is an internally developed danger capital mannequin, the aim of which is to measure the chance within the enterprise and to supply a foundation upon which capital is deployed. MetLife administration periodically opinions this mannequin to make sure that it stays in keeping with rising trade follow requirements and the native capital necessities; allotted fairness could also be adjusted if warranted by such evaluate. Allotted fairness excludes the influence of AOCI aside from FCTA.
Adjusted return on allotted fairness: adjusted earnings obtainable to frequent shareholders divided by allotted fairness.

The above measures signify a degree of fairness in keeping with the view that, within the extraordinary course of enterprise, MetLife doesn’t plan to promote most investments for the only function of realizing features or losses. Additionally confer with the utilization of adjusted earnings and different monetary measures based mostly on adjusted earnings talked about above.

Complete MetLife, Inc.’s tangible frequent stockholders’ fairness or tangible fairness: whole MetLife, Inc.’s frequent stockholders’ fairness, excluding AOCI aside from FCTA, diminished by the influence of goodwill, worth of distribution agreements (VODA) and worth of buyer relationships acquired (VOCRA), all web of earnings tax.
Complete MetLife, Inc.’s tangible frequent stockholders’ fairness, adjusted for whole notable objects: whole MetLife, Inc.’s frequent stockholders’ fairness, excluding AOCI aside from FCTA, diminished by the influence of goodwill, worth of distribution agreements (VODA), worth of buyer relationships acquired (VOCRA) and whole notable objects, all web of earnings tax.
Return on MetLife, Inc.’s tangible frequent stockholders’ fairness: web earnings (loss) obtainable to MetLife, Inc.’s frequent shareholders, excluding amortization of VODA and VOCRA, web of earnings tax, divided by MetLife, Inc.’s common tangible frequent stockholders’ fairness.
Adjusted return on MetLife, Inc.’s tangible frequent stockholders’ fairness: adjusted earnings obtainable to frequent shareholders, excluding amortization of VODA and VOCRA, web of earnings tax, divided by MetLife, Inc.’s common tangible frequent stockholders’ fairness.
Allotted tangible fairness: Allotted fairness diminished by the influence of goodwill, VODA and VOCRA, all web of earnings tax.
Adjusted return on allotted tangible fairness: adjusted earnings obtainable to frequent shareholders, excluding amortization of VODA and VOCRA, web of earnings tax, divided by allotted tangible fairness.

The above measures are, when thought-about along side regulatory capital ratios, a measure of capital adequacy.

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

Expense ratio: different bills, web of capitalization of DAC, divided by premiums, charges and different revenues.
Direct expense ratio: direct bills, on an adjusted foundation, divided by adjusted premiums, charges and different revenues.
Direct expense ratio, excluding whole notable objects associated to direct bills and PRT: direct bills, on an adjusted foundation, excluding whole notable objects associated to direct bills, divided by adjusted premiums, charges and different revenues, excluding PRT.
Adjusted expense ratio: different bills, web of capitalization of DAC, each on an adjusted foundation, divided by adjusted premiums, charges and different revenues.
Adjusted expense ratio, excluding whole notable objects associated to different bills and PRT: different bills, web of capitalization of DAC, each on an adjusted foundation, excluding whole notable objects associated to different bills, divided by adjusted premiums, charges and different revenues, excluding PRT.

Statistical gross sales info:

U.S.:
Group Advantages: calculated utilizing 10% of single premium deposits and 100% of annualized full-year premiums and costs from recurring premium coverage gross sales of all merchandise.
Retirement and Revenue Options: calculated utilizing 10% of single premium deposits and 100% of annualized full-year premiums and costs solely from recurring premium coverage gross sales of specialised profit sources and corporate-owned life insurance coverage.
Property & Casualty: calculated based mostly on first 12 months direct written premium, web of cancellation and endorsement exercise.

Latin America, Asia and EMEA: calculated utilizing 10% of single-premium deposits (primarily from retirement merchandise akin to variable annuity, fastened annuity and pensions), 20% of single-premium deposits from credit score insurance coverage and 100% of annualized full-year premiums and costs from recurring-premium coverage gross sales of all merchandise (primarily from danger and safety merchandise akin to particular person life, accident & well being and group).

Gross sales statistics don’t correspond to revenues underneath GAAP, however are used as related measures of enterprise exercise.

The next extra info is related to an understanding of MetLife’s efficiency outcomes:

Quantity development, as mentioned within the context of enterprise development, is the interval over interval share change in adjusted earnings obtainable to frequent shareholders attributable to adjusted premiums, charges and different revenues and belongings underneath administration ranges, making use of a mannequin by which sure margins and components are held fixed. Essentially the most important of such objects are underwriting margins, funding margins, modifications in fairness market efficiency, expense margins and the influence of modifications in international forex trade charges.
Asymmetrical and non-economic accounting refers to: (i) the portion of web by-product features (losses) on embedded derivatives attributable to the inclusion of MetLife’s credit score spreads within the legal responsibility valuations, (ii) hedging exercise that generates web by-product features (losses) and creates fluctuations in web earnings as a result of hedge accounting can’t be achieved and the merchandise being hedged doesn’t a have an offsetting acquire or loss acknowledged in earnings, (iii) inflation-indexed profit changes related to contracts backed by inflation-indexed investments and quantities related to periodic crediting fee changes based mostly on the entire return of a contractually referenced pool of belongings and different pass-through changes, and (iv) influence of modifications in international forex trade charges on the re-measurement of international denominated unhedged funding agreements and financing transactions to the U.S. greenback and the re-measurement of sure liabilities from non-functional currencies to practical currencies. MetLife believes that excluding the influence of asymmetrical and non-economic accounting from whole GAAP outcomes enhances investor understanding of MetLife’s efficiency by disclosing how these accounting practices have an effect on reported GAAP outcomes.
MetLife makes use of a measure of free money circulation to facilitate an understanding of its capability to generate money for reinvestment into its companies or use in non-mandatory capital actions. MetLife defines free money circulation because the sum of money obtainable at MetLife’s holding corporations from dividends from working subsidiaries, bills and different web flows of the holding corporations (together with capital contributions to subsidiaries), and web contributions from debt to be at or under goal leverage ratios. This measure of free money circulation is previous to capital actions, akin to frequent inventory dividends and repurchases, debt discount and mergers and acquisitions. Free money circulation shouldn’t be considered as an alternative to web money supplied by (utilized in) working actions calculated in accordance with GAAP. The free money circulation ratio is usually expressed as a share of annual adjusted earnings obtainable to frequent shareholders.
Notable objects signify a constructive (unfavourable) influence to adjusted earnings obtainable to frequent shareholders. Notable objects mirror the surprising influence of occasions that have an effect on MetLife’s outcomes, however that had been unknown and that MetLife couldn’t anticipate when it devised its Enterprise Plan. Notable objects additionally embrace sure objects whatever the extent anticipated within the Enterprise Plan, to assist traders have a greater understanding of MetLife’s outcomes and to guage and forecast these outcomes.

Ahead-Trying Statements

This information launch could include or incorporate by reference info that features or relies upon forward-looking statements throughout the that means of the Non-public Securities Litigation Reform Act of 1995. Ahead-looking statements give expectations or forecasts of future occasions. These statements might be recognized by the truth that they don’t relate strictly to historic or present info. They use phrases and phrases akin to “anticipate,” “estimate,” “anticipate,” “venture,” “intend,” “plan,” “consider,” “will,” and different phrases and phrases of comparable that means, or are tied to future durations, in reference to a dialogue of future efficiency. Particularly, these embrace statements referring to future actions, potential providers or merchandise, future efficiency or outcomes of present and anticipated providers or merchandise, gross sales efforts, bills, the result of contingencies akin to authorized proceedings, developments in operations and monetary outcomes.

Many components can be vital in figuring out the outcomes of MetLife, Inc., its subsidiaries and associates. Ahead-looking statements are based mostly on our assumptions and present expectations, which can be inaccurate, and on the present financial atmosphere, which can change. These statements aren’t ensures of future efficiency. They contain a variety of dangers and uncertainties which can be troublesome to foretell. Outcomes may differ materially from these expressed or implied within the forward-looking statements. Dangers, uncertainties, and different components which may trigger such variations embrace the dangers, uncertainties and different components recognized in MetLife, Inc.’s filings with the U.S. Securities and Change Fee. These components embrace: (1) troublesome financial circumstances, together with dangers referring to rates of interest, credit score spreads, fairness, actual property, obligors and counterparties, forex trade charges, derivatives, and terrorism and safety; (2) opposed international capital and credit score market circumstances, which can have an effect on our capability to fulfill liquidity wants and entry capital, together with by means of our credit score amenities; (three) downgrades in our claims paying capability, monetary energy or credit score rankings; (four) availability and effectiveness of reinsurance, hedging or indemnification preparations; (5) rising price and restricted market capability for statutory life insurance coverage reserve financings; (6) the influence on us of modifications to and implementation of the wide range of legal guidelines and rules to which we’re topic; (7) regulatory, legislative or tax modifications referring to our operations which will have an effect on the price of, or demand for, our services or products; (Eight) opposed outcomes or different penalties from litigation, arbitration or regulatory investigations; (9) authorized, regulatory and different restrictions affecting MetLife, Inc.’s capability to pay dividends and repurchase frequent inventory; (10) MetLife, Inc.’s major reliance, as a holding firm, on dividends from subsidiaries to fulfill free money circulation targets and debt cost obligations and the relevant regulatory restrictions on the power of the subsidiaries to pay such dividends; (11) funding losses, defaults and volatility; (12) potential liquidity and different dangers ensuing from our participation in a securities lending program and different transactions; (13) modifications to funding valuations, allowances and impairments taken on investments, and methodologies, estimates and assumptions; (14) variations between precise claims expertise and underwriting and reserving assumptions; (15) political, authorized, operational, financial and different dangers referring to our international operations; (16) aggressive pressures, together with with respect to pricing, entry of latest rivals, consolidation of distributors, the event of latest merchandise by new and present rivals, and for personnel; (17) the influence of technological modifications on our companies; (18) disaster losses; (19) a deterioration within the expertise of the closed block established in reference to the reorganization of Metropolitan Life Insurance coverage Firm; (20) impairment of goodwill or different long-lived belongings, or the institution of a valuation allowance towards our deferred earnings tax asset; (21) modifications in assumptions associated to deferred coverage acquisition prices, deferred gross sales inducements or worth of enterprise acquired; (22) publicity to losses associated to ensures in sure merchandise; (23) ineffectiveness of danger administration insurance policies and procedures or fashions; (24) a failure in our cybersecurity methods or different info safety methods or our catastrophe restoration plans; (25) any failure to guard the confidentiality of consumer info; (26) modifications in accounting requirements; (27) our associates taking extreme dangers; (28) difficulties in advertising and marketing and distributing merchandise by means of our distribution channels; (29) elevated bills referring to pension and different postretirement profit plans; (30) lack of ability to guard our mental property rights or claims of infringement of others’ mental property rights; (31) difficulties, unexpected liabilities, asset impairments, or ranking company actions arising from enterprise acquisitions and tendencies, joint ventures, or different authorized entity reorganizations; (32) unanticipated or opposed developments that would adversely have an effect on our anticipated operational or different advantages from the separation of Brighthouse Monetary, Inc. and its subsidiaries; (33) the likelihood that MetLife, Inc.’s Board of Administrators could affect the result of stockholder votes by means of the voting provisions of the MetLife Policyholder Belief; (34) provisions of legal guidelines and our incorporation paperwork which will delay, deter or forestall takeovers and company combos involving MetLife; and (35) different dangers and uncertainties described once in a while in MetLife, Inc.’s filings with the U.S. Securities and Change Fee.

MetLife, Inc. doesn’t undertake any obligation to publicly appropriate or replace any forward-looking assertion if MetLife, Inc. later turns into conscious that such assertion just isn’t more likely to be achieved. Please seek the advice of any additional disclosures MetLife, Inc. makes on associated topics in studies to the U.S. Securities and Change Fee.

MetLife, Inc.

GAAP Interim Condensed Consolidated Statements of Operations

(Unaudited)

(In tens of millions)

For the Three Months Ended

September 30,

2019

2018

Revenues

Premiums

$

10,781

$

10,242

Common life and investment-type product coverage charges

1,440

1,343

Web funding earnings

four,623

four,486

Different revenues

419

479

Web funding features (losses)

161

117

Web by-product features (losses)

1,254

(378

)

Complete revenues

18,678

16,289

Bills

Policyholder advantages and claims

10,648

10,080

Curiosity credited to policyholder account balances

1,500

1,334

Policyholder dividends

296

327

Capitalization of DAC

(882

)

(810

)

Amortization of DAC and VOBA

797

732

Amortization of unfavourable VOBA

(four

)

(7

)

Curiosity expense on debt

223

267

Different bills

three,309

three,287

Complete bills

15,887

15,210

Revenue (loss) from persevering with operations earlier than provision for earnings tax

2,791

1,079

Provision for earnings tax expense (profit)

601

164

Revenue (loss) from persevering with operations, web of earnings tax

2,190

915

Revenue (loss) from discontinued operations, web of earnings tax

Web earnings (loss)

2,190

915

Much less: Web earnings (loss) attributable to noncontrolling pursuits

6

three

Web earnings (loss) attributable to MetLife, Inc.

2,184

912

Much less: Most popular inventory dividends

32

32

Web earnings (loss) obtainable to MetLife, Inc.’s frequent shareholders

$

2,152

$

880

See footnotes on final web page.

MetLife, Inc.

(Unaudited)

(In tens of millions, besides per share knowledge)

For the Three Months Ended

September 30,

2019

2018

Reconciliation to Adjusted Earnings Obtainable to Frequent Shareholders

Earnings Per
Weighted
Common
Frequent Share
Diluted (1)

Earnings Per
Weighted
Common
Frequent Share
Diluted (1)

Web earnings (loss) obtainable to MetLife, Inc.’s frequent shareholders

$

2,152

$

2.30

$

880

$

Zero.88

Changes from web earnings (loss) obtainable to frequent shareholders to adjusted earnings obtainable to frequent shareholders:

Much less: Web funding features (losses)

161

Zero.17

117

Zero.12

Web by-product features (losses)

1,254

1.34

(378

)

(Zero.38

)

Premiums

35

Zero.04

Common life and investment-type product coverage charges

88

Zero.09

43

Zero.04

Web funding earnings

150

Zero.16

24

Zero.02

Different revenues

72

Zero.08

83

Zero.08

Policyholder advantages and claims and policyholder dividends

(86

)

(Zero.09

)

(155

)

(Zero.16

)

Curiosity credited to policyholder account balances

(226

)

(Zero.24

)

(132

)

(Zero.13

)

Capitalization of DAC

11

Zero.01

Amortization of DAC and VOBA

(41

)

(Zero.04

)

(108

)

(Zero.11

)

Amortization of unfavourable VOBA

Curiosity expense on debt

(15

)

(Zero.01

)

Different bills

(110

)

(Zero.12

)

(100

)

(Zero.10

)

Goodwill impairment

Provision for earnings tax (expense) profit

(340

)

(Zero.36

)

128

Zero.13

Revenue (loss) from discontinued operations, web of earnings tax

Add: Web earnings (loss) attributable to noncontrolling pursuits

6

Zero.01

three

Adjusted earnings obtainable to frequent shareholders

1,190

1.27

1,376

1.38

Much less: Complete notable objects (2)

(248

)

(Zero.26

)

(156

)

(Zero.16

)

Adjusted earnings obtainable to frequent shareholders, excluding whole notable objects (2)

$

1,438

$

1.54

$

1,532

$

1.53

Adjusted earnings obtainable to frequent shareholders on a relentless forex foundation

$

1,190

$

1.27

$

1,363

$

1.36

Adjusted earnings obtainable to frequent shareholders, excluding whole notable objects, on a relentless forex foundation (2)

$

1,438

$

1.54

$

1,518

$

1.52

Weighted common frequent shares excellent – diluted

936.four

1,000.7

See footnotes on final web page.

MetLife, Inc.

(Unaudited)

(In tens of millions)

For the Three Months Ended

September 30,

2019

2018

Premiums, Charges and Different Revenues

Premiums, charges and different revenues

$

12,640

$

12,064

Much less: Unearned income changes

59

11

GMIB charges

27

32

Settlement of international forex earnings hedges

three

5

TSA charges

69

78

Divested companies

37

Adjusted premiums, charges and different revenues

$

12,445

$

11,938

Adjusted premiums, charges and different revenues, on a relentless forex foundation

$

12,445

$

11,915

Much less: Pension danger switch (PRT) (three)

1,293

1,018

Adjusted premiums, charges and different revenues, excluding PRT, on a relentless forex foundation

$

11,152

$

10,897

Web Funding Revenue

Web funding earnings

$

four,623

$

four,486

Much less: Funding hedge changes

(121

)

(125

)

Working three way partnership changes

Unit-linked contract earnings

250

149

Securitization entities earnings

Sure partnership distributions

(2

)

(1

)

Divested companies

23

1

Web funding earnings, as reported on an adjusted foundation

$

four,473

$

four,462

Revenues and Bills

Complete revenues

$

18,678

$

16,289

Much less: Web funding features (losses)

161

117

Much less: Web by-product features (losses)

1,254

(378

)

Much less: Changes associated to web funding features (losses) and web by-product features (losses)

59

11

Much less: Different changes to revenues:

GMIB charges

27

32

Funding hedge changes

(121

)

(125

)

Working three way partnership changes

Unit-linked contract earnings

250

149

Securitization entities earnings

Sure partnership distributions

(2

)

(1

)

Settlement of international forex earnings hedges

three

5

TSA charges

69

78

Divested companies

60

1

Complete adjusted revenues

$

16,918

$

16,400

Complete bills

$

15,887

$

15,210

Much less: Changes associated to web funding features (losses) and web by-product features (losses)

39

89

Much less: Goodwill impairment

Much less: Different changes to bills:

PBC hedge changes

9

Inflation and pass-through changes

87

(13

)

GMIB prices and amortization of DAC and VOBA associated to GMIB charges and GMIB prices

(47

)

187

Market worth changes and amortization of DAC, VOBA and unfavourable VOBA associated to market worth changes

three

PAB hedge changes

(5

)

(1

)

Unit-linked contract prices

223

133

Securitization entities debt expense

Noncontrolling curiosity

(Eight

)

(three

)

Regulatory implementation prices

5

three

Acquisition, integration and different prices

Eight

13

TSA charges

69

78

Divested companies

69

24

Complete adjusted bills

$

15,435

$

14,700

See footnotes on final web page.

MetLife, Inc.

(Unaudited)

(In tens of millions, besides per share and ratio knowledge)

For the Three Months Ended

September 30,

2019

2018

Expense Element and Ratios

Reconciliation of Capitalization of DAC to Capitalization of DAC, as reported on an adjusted foundation

Capitalization of DAC

$

(882

)

$

(810

)

Much less: Divested companies

(11

)

Capitalization of DAC, as reported on an adjusted foundation

$

(871

)

$

(810

)

Reconciliation of Different Bills to Different Bills, as reported on an adjusted foundation

Different bills

$

three,309

$

three,287

Much less: Noncontrolling curiosity

(Eight

)

(three

)

Much less: Regulatory implementation prices

5

three

Much less: Acquisition, integration and different prices

Eight

13

Much less: TSA charges

69

78

Much less: Divested companies

36

9

Different bills, as reported on an adjusted foundation

$

three,199

$

three,187

Different element and ratios

Different bills

$

three,309

$

three,287

Capitalization of DAC

(882

)

(810

)

Different bills, web of capitalization of DAC

$

2,427

$

2,477

Premiums, charges and different revenues

$

12,640

$

12,064

Expense ratio

19.2

%

20.5

%

Direct bills

$

1,475

$

1,543

Much less: Complete notable objects associated to direct bills (2)

111

112

Direct bills, excluding whole notable objects associated to direct bills (2)

$

1,364

$

1,431

Different bills, as reported on an adjusted foundation

$

three,199

$

three,187

Capitalization of DAC, as reported on an adjusted foundation

(871

)

(810

)

Different bills, web of capitalization of DAC, as reported on an adjusted foundation

2,328

2,377

Much less: Complete notable objects associated to different bills, as reported on an adjusted foundation (2)

111

112

Different bills, web of capitalization of DAC, excluding whole notable objects associated to different bills, as reported on an adjusted foundation (2)

$

2,217

$

2,265

Adjusted premiums, charges and different revenues

$

12,445

$

11,938

Much less: PRT

1,293

1,018

Adjusted premiums, charges and different revenues, excluding PRT

$

11,152

$

10,920

Direct expense ratio

11.9

%

12.9

%

Direct expense ratio, excluding whole notable objects associated to direct bills and PRT (2)

12.2

%

13.1

%

Adjusted expense ratio

18.7

%

19.9

%

Adjusted expense ratio, excluding whole notable objects associated to different bills and PRT (2)

19.9

%

20.7

%

See footnotes on final web page.

MetLife, Inc.

(Unaudited)

September 30,

2019

2018

Fairness Particulars

Complete MetLife, Inc.’s stockholders’ fairness

$

68,368

$

51,625

Much less: Most popular inventory

three,340

three,340

MetLife, Inc.’s frequent stockholders’ fairness

65,028

48,285

Much less: Web unrealized funding features (losses), web of earnings tax

22,330

7,946

Outlined profit plans adjustment, web of earnings tax

(1,961

)

(2,Zero51

)

Complete MetLife, Inc.’s frequent stockholders’ fairness, excluding AOCI aside from FCTA

44,659

42,390

Much less: Goodwill, web of earnings tax

Eight,955

9,147

VODA and VOCRA, web of earnings tax

279

316

Complete MetLife, Inc.’s tangible frequent stockholders’ fairness

$

35,425

$

32,927

September 30,

2019

2018

E-book Worth (four)

E-book worth per frequent share

$

70.71

$

48.94

Much less: Web unrealized funding features (losses), web of earnings tax

24.28

Eight.05

Outlined profit plans adjustment, web of earnings tax

(2.13

)

(2.08

)

E-book worth per frequent share, excluding AOCI aside from FCTA

48.56

42.97

Much less: Goodwill, web of earnings tax

9.74

9.28

VODA and VOCRA, web of earnings tax

Zero.30

Zero.32

E-book worth per frequent share – tangible frequent stockholders’ fairness

$

38.52

$

33.37

Frequent shares excellent, finish of interval

919.6

986.6

For the Three Months Ended

September 30, (5)

2019

2018

Return on Fairness

Return on MetLife, Inc.’s:

Frequent stockholders’ fairness

13.7

%

7.1

%

Frequent stockholders’ fairness, excluding AOCI aside from FCTA

19.four

%

Eight.three

%

Tangible frequent stockholders’ fairness (6)

24.6

%

10.Eight

%

Adjusted return on MetLife, Inc.’s:

Frequent stockholders’ fairness

7.6

%

11.2

%

Frequent stockholders’ fairness, excluding AOCI aside from FCTA

10.7

%

12.9

%

Frequent stockholders’ fairness, excluding whole notable objects (excludes AOCI aside from FCTA) (2)

12.9

%

14.four

%

Tangible frequent stockholders’ fairness (6)

13.7

%

16.Eight

%

Tangible frequent stockholders’ fairness, excluding whole notable objects (2), (6)

16.four

%

18.6

%

Adjusted Return on Allotted Fairness:

U.S.

26.four

%

29.three

%

Asia

9.Eight

%

7.5

%

Latin America

20.9

%

21.7

%

EMEA

7.6

%

6.three

%

MetLife Holdings

6.2

%

13.Zero

%

Adjusted Return on Allotted Tangible Fairness:

U.S.

30.Zero

%

33.9

%

Asia

14.9

%

11.three

%

Latin America

34.6

%

36.2

%

EMEA

13.Eight

%

10.5

%

MetLife Holdings

7.1

%

14.6

%

See footnotes on final web page.

MetLife, Inc.

Adjusted Earnings Obtainable to Frequent Shareholders

(Unaudited)

(In tens of millions)

For the Three Months Ended

September 30,

2019

2018

U.S. (three):

Adjusted earnings obtainable to frequent shareholders

$

707

$

795

Much less: Complete notable objects (2)

37

Adjusted earnings obtainable to frequent shareholders, excluding whole notable objects (2)

$

707

$

758

Adjusted premiums, charges and different revenues

$

7,391

$

6,889

Much less: PRT

1,293

1,018

Adjusted premiums, charges and different revenues, excluding PRT

$

6,098

$

5,871

Group Advantages (three):

Adjusted earnings obtainable to frequent shareholders

$

366

$

370

Much less: Complete notable objects (2)

37

Adjusted earnings obtainable to frequent shareholders, excluding whole notable objects (2)

$

366

$

333

Adjusted premiums, charges and different revenues

$

four,582

$

four,317

Retirement & Revenue Options (three):

Adjusted earnings obtainable to frequent shareholders

$

284

$

339

Much less: Complete notable objects (2)

Adjusted earnings obtainable to frequent shareholders, excluding whole notable objects (2)

$

284

$

339

Adjusted premiums, charges and different revenues

$

1,878

$

1,658

Much less: PRT

1,293

1,018

Adjusted premiums, charges and different revenues, excluding PRT

$

585

$

640

Property & Casualty (three):

Adjusted earnings obtainable to frequent shareholders

$

57

$

86

Much less: Complete notable objects (2)

Adjusted earnings obtainable to frequent shareholders, excluding whole notable objects (2)

$

57

$

86

Adjusted premiums, charges and different revenues

$

931

$

914

See footnotes on final web page.

MetLife, Inc.

Adjusted Earnings Obtainable to Frequent Shareholders (Continued)

(Unaudited)

(In tens of millions)

For the Three Months Ended

September 30,

2019

2018

Asia:

Adjusted earnings obtainable to frequent shareholders

$

349

$

266

Much less: Complete notable objects (2)

(19

)

(86

)

Adjusted earnings obtainable to frequent shareholders, excluding whole notable objects (2)

$

368

$

352

Adjusted earnings obtainable to frequent shareholders on a relentless forex foundation

$

349

$

262

Adjusted earnings obtainable to frequent shareholders, excluding whole notable objects, on a relentless forex foundation (2)

$

368

$

347

Adjusted premiums, charges and different revenues

$

2,098

$

2,129

Adjusted premiums, charges and different revenues, on a relentless forex foundation

$

2,098

$

2,157

Latin America:

Adjusted earnings obtainable to frequent shareholders

$

155

$

170

Much less: Complete notable objects (2)

10

28

Adjusted earnings obtainable to frequent shareholders, excluding whole notable objects (2)

$

145

$

142

Adjusted earnings obtainable to frequent shareholders on a relentless forex foundation

$

155

$

162

Adjusted earnings obtainable to frequent shareholders, excluding whole notable objects, on a relentless forex foundation (2)

$

145

$

135

Adjusted premiums, charges and different revenues

$

967

$

928

Adjusted premiums, charges and different revenues, on a relentless forex foundation

$

967

$

892

EMEA:

Adjusted earnings obtainable to frequent shareholders

$

53

$

55

Much less: Complete notable objects (2)

(13

)

(23

)

Adjusted earnings obtainable to frequent shareholders, excluding whole notable objects (2)

$

66

$

78

Adjusted earnings obtainable to frequent shareholders on a relentless forex foundation

$

53

$

54

Adjusted earnings obtainable to frequent shareholders, excluding whole notable objects, on a relentless forex foundation (2)

$

66

$

76

Adjusted premiums, charges and different revenues

$

656

$

634

Adjusted premiums, charges and different revenues, on a relentless forex foundation

$

656

$

619

MetLife Holdings (three):

Adjusted earnings obtainable to frequent shareholders

$

149

$

327

Much less: Complete notable objects (2)

(138

)

(24

)

Adjusted earnings obtainable to frequent shareholders, excluding whole notable objects (2)

$

287

$

351

Adjusted premiums, charges and different revenues

$

1,261

$

1,305

Company & Different (three):

Adjusted earnings obtainable to frequent shareholders

$

(223

)

$

(237

)

Much less: Complete notable objects (2)

(88

)

(88

)

Adjusted earnings obtainable to frequent shareholders, excluding whole notable objects (2)

$

(135

)

$

(149

)

Adjusted premiums, charges and different revenues

$

72

$

53

See footnotes on final web page.

MetLife, Inc.

(Unaudited)

(1)

Adjusted earnings obtainable to frequent shareholders, excluding whole notable objects, per diluted frequent share is calculated on a standalone foundation and will not equal the sum of (i) adjusted earnings obtainable to frequent shareholders per diluted frequent share and (ii) whole notable objects per diluted frequent share.

(2)

Notable objects mirror the surprising influence of occasions that have an effect on MetLife’s outcomes, however that had been unknown and that MetLife couldn’t anticipate when it devised its Enterprise Plan. Notable objects additionally embrace sure objects whatever the extent anticipated within the Enterprise Plan to assist traders have a greater understanding of MetLife’s outcomes and to guage and forecast these outcomes. Notable objects can have an effect on MetLife’s outcomes both positively or negatively.

(three)

Outcomes on a relentless forex foundation aren’t included as fixed forex influence just isn’t important.

(four)

E-book values exclude $three,340 million of fairness associated to most popular inventory at each September 30, 2019 and 2018.

(5)

Annualized utilizing quarter-to-date outcomes.

(6)

Web earnings (loss) obtainable to MetLife, Inc.’s frequent shareholders and adjusted earnings obtainable to frequent shareholders, used to calculate returns on tangible fairness, exclude the influence of amortization of VODA and VOCRA, web of earnings tax, for the three months ended September 30, 2019 and 2018 of $9 million and $10 million, respectively.

For Media:
Ashia Razzaq
MetLife
(212) 578-1538

For Traders:
John Corridor
MetLife
(212) 578-7888

Supply: MetLife, Inc.

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