Metlife, Inc. · NYSE:MET
Metlife — Investor Day (September 2010)
78 slides from Metlife's investor day presentation, Sep 14, 2010
Slide 1: MetLife Asia Investor Day 2010
MetLife MetLife _? 7 ASIA INVESTOR DAY 2010
Slide 2: Welcome
Welcome Conor Murphy Vice President Investor Relations ASIA INVESTOR DAY 2 0 1 0
Slide 3: Safe Harbor Statement
Safe Harbor Statement These materials 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.
Slide 4: Safe Harbor Statement (Continued)
Safe Harbor Statement (Continued) indemnification arrangements, as well as default or failure of counterparties to perform; (35) discrepancies between actual claims experience and assumptions used in setting prices for MetLife's products and establishing the liabilities for MetLife's obligations for
Slide 5: Explanatory Note on Non-GAAP Financial Information
Explanatory Note on Non-GAAP Financial Information All references in this presentation to net income (loss), net income (loss) per share, operating earnings and operating earnings per share should be read as net income (loss) available to MetLife, Inc.'s common shareholders, net income (loss) availa
Slide 6: Agenda
Agenda The MetLife Advantage World-Wide The MetLife Advantage World-Wide The MetLife Advantage World-Wide William J Toppeta President, International Business The MetLife Advantage in Korea The MetLife Advantage in Korea The MetLife Advantage in Korea Jong Kim Chief Executive Officer, MetLife Korea Q
Slide 7: MetLife
MetLife
Slide 8: The MetLife Advantage World-Wide
ASIA INVESTOR DAY 2 0 1 0 The MetLife Advantage World-Wide William J Toppeta President International Business
Slide 9: MetLife - Well-Positioned for Profitable Growth
We emerged from the crisis financially strong We have strengthened and protected our franchise We are disciplined in pricing and risk management We are focused on our margins, underwriting, and expense management We are growing and International is an integral part of that growth MetLife - Well-Posi
Slide 10: MetLife International - Good Growth... but not enough
MetLife International - Good Growth... See Appendix for Non-GAAP financial information definitions and / or reconciliations. 1 International segment share of MetLife overall premiums, fees & other revenues and operating earnings. 2 As reported, unadjusted for subsequent events, including acquisition
Slide 11: MetLife's Strategic Objective
MetLife's Strategic Objective To be recognized as a leading global insurance provider of income and protection products and services, and employee benefit programs
Slide 12: With Alico - International's Contribution Matters a Lot
1 See Appendix for Non-GAAP financial information definitions and / or reconciliations. 2 As reported, unadjusted for subsequent events, including acquisitions, dispositions and discontinued operations. 3 These figures do not reflect purchase accounting adjustments. With Alico - International's Cont
Slide 13: Alico - Positions MetLife as a Global Powerhouse
Alico - Positions MetLife as a Global Powerhouse Source: Alico & MetLife Note: All market rankings based on 2008 life insurance premiums only 1 Projected for the transaction + 70 million customers #2 Foreign Insurer in Japan #1 Insurer in Mexico #1 Insurer in Russia #6 Insurer in Poland Growing Pres
Slide 14: The Premier Global Life Insurance Franchise
The Premier Global Life Insurance Franchise 1 Source Swiss Re, sigma No 1/2006. Ranking based on premiums in US$ as of 2004. 2 MetLife internal calculation based on publicly available information. 3 MetLife post-acquisition ranking includes $14 billion of Alico premium and excludes $5.7 billion of a
Slide 15: What does Alico Bring to MetLife?
What does Alico Bring to MetLife? Significantly accelerates MetLife's global growth strategy Highly complementary product set Highly complementary distribution Significant growth opportunities Significant improvement in financial metrics
Slide 16: What does MetLife bring to Alico?
What does MetLife bring to Alico? Great financial strength and brand Strong risk management, investment and administrative capabilities New geographies: China, India, Brazil, Mexico, Korea MetLife institutional relationships Product development and management capabilities
Slide 17: Alico Integration - Progressing Well
On track to close on November 1, 2010 New integrated leadership team identified Emphasis on seamless transition and accelerating growth Integration expenses over the next two and a half years Alico Integration - Progressing Well
Slide 18: Fueling Growth - Global Strategic Themes
Maximizing the value of face-to-face distribution The retirement solutions provider of choice Globalizing our corporate relationships Leveraging our strong direct to consumer capabilities Accident & Health everywhere Fueling Growth - Global Strategic Themes
Slide 19: MetLife
MetLife
Slide 20: The MetLife Advantage in Korea
ASIA INVESTOR DAY 2 0 1 0 The MetLife Advantage in Korea Jong Kim Chief Executive Officer MetLife Korea
Slide 21: Agenda
Agenda What Is the Opportunity in Korea? Seizing the Opportunity Extending the MetLife Advantage in Korea 2
Slide 22: Korea - Top and Leading Life Insurance Market
Korea - Top 10 and Leading Life Insurance Market 8th largest life insurance market in the world Compelling demographic trends Healthy economic environment Growth opportunities Market Size1 by Country ($ Billions) 2009 data: Swiss Re, sigma No 2/2010 1 In this presentation, U.S. dollar equivalents of
Slide 23: A Major Industry in Korea - Still Room to Grow
4 A Major Industry in Korea - Still Room to Grow Italy Germany Korea India Taiwan US Japan UK France China $1,603 10.0 13.8 $3,141 $3,562 $3,030 $1,983 $1,358 $82 $1,184 $49 $2,272 Italy Germany Korea India Taiwan US Japan UK France China Life Insurance Premium1 / GDP2 (%) Premium per Capita3 1 Life
Slide 24: Korea - Fastest Aging Society in the World
5 Korea - Fastest Aging Society in the World Source: UN, projected for 2010-2020 China Korea U.S Germany Japan Line 6 Line 7 Line 8 Line 9 Line 10 Line 11 Line 12 Line 13 Line 14 Line 15 Line 16 1990 0.048 0.043 0.096 0.112 0.096 1995 0.06 0.059 0.125 0.154 0.144 2000 0.068 0.073 0.124 0.164 0.172 2
Slide 25: Average Korean Lives Years Post-Retirement
6 Average Korean Lives 22 Years Post-Retirement (%) 1 Source: Mirae Asset Retirement Pension Institute, Mar 2009 2 Source: Seoul National University, Retirement Consulting Training, 2008 & Statistics Korea Retirement Age 1 (Average : 57 yrs old) Average Life Span 2 (Average : 79 yrs old) Average Ret
Slide 26: Agenda
Agenda What Is the Opportunity in Korea? Seizing the Opportunity Extending the MetLife Advantage in Korea 7
Slide 27: High Customer Need for Insurance & Retirement Solutions
High Customer Need for Insurance & Retirement Solutions 8 Source: MetLife Korea, 2008 Syndicate Research 1 Percentage of participants that expressed product needs. Huge Product Opportunity1 Health Savings Protection & Others VUL Whole Life 0.364 0.382 0.254 0.06 0.14 Accident & Health Annuity VUL Wh
Slide 28: MetLife Solves Customer Insurance & Retirement Needs
9 MetLife Solves Customer Insurance & Retirement Needs 9 Longevity increases demand for Accident & Health products Alico has strong Accident & Health capabilities Broad range of Life products Most experienced company in retirement market Providing advice and innovative solutions
Slide 29: Agenda
Agenda What Is the Opportunity in Korea? Seizing the Opportunity Extending the MetLife Advantage in Korea 10
Slide 30: Strong and Diversified Distribution Channels
Strong and Diversified Distribution Channels 11 2009 New Sales Career Agency General Agency Bank1 Group Top-tier productivity 2nd largest captive agency among foreign players Start-up, fast growing Plans to grow # of distribution partners & new sales volume aggressively Market share 7.7% # 1 new sal
Slide 31: Professional Distribution Produces Larger Average Sales
12 Professional Distribution Produces Larger Average Sales 21% higher 40% higher $44,841 $62,599 Career Agency - New Premium per Policy1 Bank Distribution - New Premium per Policy1 $1,872 $2,272 Market Average MetLife MetLife Market Average Annualized Monthly Initial Premium Single Premium Source: M
Slide 32: Agency - Beating the Competition in Growth and Productivity
13 Agency - Beating the Competition in Growth and Productivity +62% (11%) (10%) (14%) Growing Agency Force (June 07 vs. June 10) Agent Productivity - Avg. MIP1 (Jan 07 to June 10) June 07 June 10 Source: MetLife internal research 1 MIP stands for 'Monthly Initial Premium.' (US$)2
Slide 33: Advanced Training & Products Produce More MDRT Qualifiers
14 Advanced Training & Products Produce More MDRT Qualifiers Source: Million Dollar Round Table Korea, based on number of Million Dollar Round Table enrollees % Million Dollar Round Table Qualifiers, 2009 2003 variable universal life 2006 and 2007 variable annuities with living benefits 2008 life cy
Slide 34: As Always: Financial Strength is a MetLife Hallmark
15 As Always: Financial Strength is a MetLife Hallmark Top 8 Companies Capital Ratio (RBC) (As of 6/30/10) Source: MetLife internal research
Slide 35: MetLife Gained - Foreign Insurers Generally Lost Ground
16 MetLife Gained - Foreign Insurers Generally Lost Ground (Source: Korea Life Insurance Association, AFYP (Annualized First Year Premium)) Global Financial Crisis Market Rank Market Share Trend - New Sales1 Market Share Trend - New Sales1 Market Share Trend - New Sales1 Market Share Trend - New Sal
Slide 36: Growing Earnings, After Solid Performance in the Global Financial Crisis
2005 2006 2007 2008 2009 2010H1 Operating Earnings 61 144 139 106 126 72 17 Growing Earnings, After Solid Performance in the Global Financial Crisis CAGR (2005-2009) 20% in $US and 27% in Local Currency MetLife Korea - Operating Earnings1 ($ Millions) 1 See Appendix for Non-GAAP financial informatio
Slide 37: MetLife Korea is a Core Growth Engine
18 MetLife Korea is a Core Growth Engine Top 10 life insurance market Still room to grow Fastest aging society in the world MetLife expertise in insurance and retirement solutions Strong advice-driven face-to-face distribution Leveraging Alico's accident and health expertise
Slide 38: MetLife
MetLife
Slide 39: The MetLife Advantage in China
ASIA INVESTOR DAY 2 0 1 0 The MetLife Advantage in China Peter Smyth Regional Managing Director MetLife Asia Pacific Region
Slide 40: Agenda
Agenda What is the Opportunity in China? Seizing the Opportunity Extending the MetLife Advantage in China 2
Slide 41: Insurance in China - A Significant Market Opportunity
Affluent middle class 100 million people Super rich 900,0001 $119.3 billion2 in life insurance in 2009 $160 billion3 expected in 2012 Life insurance premiums as % of GDP = 2.2% in China vs. 7.6% in Japan Second largest economy in the world4 High savings rate5 Rapid rise in bancassurance channel Now
Slide 42: Agenda
Agenda What is the Opportunity in China? Seizing the Opportunity Extending the MetLife Advantage in China 4
Slide 43: MetLife in China - Seizing the Opportunity
MetLife in China - Seizing the Opportunity Number 1 life insurer in the direct marketing channel1 Number 5 life insurer in the bancassurance channel1 Integrating MetLife's two joint ventures with different geographic footprints - a first in the China insurance market The two joint ventures are numbe
Slide 44: MetLife has Access to 35% of China's Life Insurance Market
MetLife has Access to 35% of China's Life Insurance Market Province/Municipality Beijing Shanghai Chongqing Jiangsu Zhejiang Sichuan Guangdong Liaoning Hubei 2009 Market Size (GWP, RMB, bn) 53.32 51.32 19.76 67.93 39.81 43.03 89.5 34.25 30.35 Population (Yr2008, MM) 15.4 18.9 27.7 76.8 51.2 81.4 92.
Slide 45: Agenda
Agenda What is the Opportunity in China? Seizing the Opportunity Extending the MetLife Advantage in China 7
Slide 46: #1 Direct Marketer in China among Foreign JVs
#1 Direct Marketer in China among Foreign JVs1 YTD sales through July of US$55M-18% YOY growth Strong account management capabilities has resulted in MetLife having the largest number of credit card telemarketing seats Productivity is the highest among all foreign JVs2 Expanding cold-calling capabil
Slide 47: Doubling the Number of Bank Outlets and Wholesalers
Doubling the Number of Bank Outlets and Wholesalers YTD sales through July of US$115M - 32% YOY growth A large and growing market $57B in 2009 23 distribution partners Rapidly expanding outlets, wholesalers and relationships 1Swiss Re, Boston Consulting Group, "Bancassurance in China", December, 200
Slide 48: Agency Productivity: Highest Amongst Foreign Competitors
Agency Productivity: Highest Amongst Foreign Competitors YTD sales through July of US$11.5M-28% YOY growth Our productivity is the result of our selective recruitment process and our extensive training programs Million Dollar Round Table membership is one of the highest among all JVs2 1 NIICC (Natio
Slide 49: MetLife China: Strong Growth
2005 2006 2007 2008 2009 2009H1 2010H1 Revenue 15.45 43.78 98.46 187.46 287.24 117 170.84 MetLife China: Strong Growth CAGR (2005-2009) 109% 1US GAAP. The China Operations are joint-ventures and recorded as Net Investment Income in MetLife's consolidated financial statements. 46% MetLife China Combi
Slide 50: Capitalizing on the Significant Opportunity in China's Insurance Market
Capitalizing on the Significant Opportunity in China's Insurance Market Extending position as the number 1 insurance direct marketer1 Expanding bancassurance channel Strengthening agency model Integrating MetLife's two joint ventures Entering new provinces and cities 1 Amongst Foreign JVs in terms o
Slide 51: MetLife
MetLife
Slide 52: The MetLife Advantage in Japan
ASIA INVESTOR DAY 2 0 1 0 The MetLife Advantage in Japan William Hogan Executive Vice President
Slide 53: Agenda
Agenda What is the Opportunity in Japan? Seizing the Opportunity Extending the MetLife Advantage in Japan
Slide 54: Japan is a Very Significant Market
Japan is a Very Significant Market 1 Source: Swiss Re, sigma 3/2009 2 Source: Economist Intelligence Unit research (2008) 3 Source: Japan Institute of Life Insurance (2008) Note: Life insurance premiums include private insurers, public insurer (Japan Post Insurance, former Kampo), and small cooperat
Slide 55: Attractive Growth Segments
Attractive Growth Segments Source: National Institute of Population and Social Security Research (2010 showing 2009 data and projections). Age group Number of households (10K households) 2009 2030 50 - -40 - -30 0 70 60 40 20 30 10 - -10 - -20 Growth (2009-2030,%) under 40 years old 40 - 64 years ol
Slide 56: Retirement and Health Needs Create the Opportunity
Retirement and Health Needs Create the Opportunity 5 Consumers receive less pension than they need1 Public health care system unlikely to cover increasing medical expense2 2021.00000000023 2442.00000000028 4031.00000000046 - -17% Monthly Pension Minimum Expenses (Per month public pension $) "Affluen
Slide 57: Large Pool of Savings Fuels the Opportunity
Large Pool of Savings Fuels the Opportunity Savings Held per Household by Age (2008) .. < 30 30 - 39 40 - 49 50 - 59 60 - 69 > 69 18.4 43 92.5 131.5 114.5 120.7 8.56964965756005 28.8252380891047 60.2325126954953 92.0148353337677 177.08749521313 187.916955154856 14.3970114247009 24.7073469335183 30.4
Slide 58: Market Opportunities Driven by Aging Demographics and Large Savings Pool
Market Opportunities Driven by Aging Demographics, Burden Shift to Consumers and Large Savings Pool Segment Retirement $12bn Gross Written Premiums Underserved Segments $50bn Gross Written Premiums Medical and Nursing $30bn Gross Written Premiums Opportunity Size Source: 2009-2010 Japan Market Study
Slide 59: Alico Japan - Best-Positioned for Capturing Growth
Alico Japan - Best-Positioned for Capturing Growth Source: 2009-2010 Japan Market Study McKinsey 1 Premium: sum of life insurance premiums and deposit-type business (such as premiums for unit-linked policies and fixed and variable annuities); U.S. $ billions; 2008.
Slide 60: Agenda
Agenda What is the Opportunity in Japan? Seizing the Opportunity Extending the MetLife Advantage in Japan
Slide 61: Alico Japan - A Leading Player in a Large Market
Alico Japan - A Leading Player in a Large Market 2003 2010P 3151 6519 Business Overview CAGR (2003-2010P) 10% Leading foreign insurer Market leader in direct marketing #3 insurer in agency productivity Diverse and strong distribution Predominantly protection Premium and Other Considerations (POC) Gr
Slide 62: Alico Japan - The Right Products Through Diversified Distribution
Alico Japan - The Right Products Through Diversified Distribution Distribution by Channel; 2009 Independent Agents Direct Marketing Tied Agents Bancassurance Japan PDOC by Channel; 2009 0.31 0.22 0.39 0.08 Product Mix; 2009 Life insurance Group & Credit Accident & Health Annuities Product Mix; 2009
Slide 63: Alico Japan: Growth Trend
2005 2006 2007 2008 2009 2010P POC 4427 4691 4858 5896 6244 6250 2005 2006 2007 2008 2009 2010P PTOI 1365 1579 1437 1149 1713 1624 Alico Japan: Growth Trend CAGR (2005-2009) 9% ($ Millions) CAGR (2005-2009) 6% Premiums and Other Considerations - US GAAP Pre-Tax Operating Income ($ Millions) See Appe
Slide 64: Alico Japan - Immediate Focus: Reignite Growth
Alico Japan - Immediate Focus: Reignite Growth Bancassurance, back in the ball game Agency, a higher yielding asset Direct marketing: more direct, more marketing
Slide 65: Agenda
Agenda What is the Opportunity in Japan? Seizing the Opportunity Extending the MetLife Advantage in Japan
Slide 66: The Winning Brand Equities
The Winning Brand Equities Leverage Alico brand advantages: Name recognized by more than 9 out of 10 Japanese consumers Strong local presence with over 40 years in Japan Ranked as a top provider of innovative products and services Exploit favorability drivers that MetLife brings to the combined comp
Slide 67: The Winning Future Brand
The Winning Future Brand MetLife Alico: AYRITI PUA
Slide 68: The Future Brand in Japan
The Future Brand in Japan ... MetLife Alico ... The Future Brand in Japan ... MetLife Alico ... The Future Brand in Japan ... MetLife Alico ... The Future Brand in Japan ... MetLife Alico ...
Slide 69: Japan a Major Pillar to Drive Shareholder Value
Japan a Major Pillar to Drive Shareholder Value Market trends, creating opportunities and playing to our strengths MetLife an innovator in product design and distribution Alico's market presence, expertise, and scale
Slide 70: MetLife
MetLife
Slide 71: Appendix
Appendix ASIA INVESTOR DAY 2 0 1 0
Slide 72: Explanatory Note on Non-GAAP Financial Information
Explanatory Note on Non-GAAP Financial Information All references in this presentation to net income (loss), net income (loss) per share, operating earnings and operating earnings per share should be read as net income (loss) available to MetLife, Inc.'s common shareholders, net income (loss) availa
Slide 73: Reconciliations
Reconciliations
Slide 74: Reconciliation of Net Income to Operating Earnings - Total Company and International
Reconciliation of Net Income (loss) Available to MetLife, Inc.'s Common Shareholders to Operating Earnings Available to Common Shareholders - Total Company and International 1 1As reported, unadjusted for subsequent events, including acquisitions, dispositions and discontinued operations. 1As report
Slide 75: Reconciliation of Net Income to Operating Earnings - Korea
Reconciliation of Net Income (loss) Available to MetLife, Inc.'s Common Shareholders to Operating Earnings Available to Common Shareholders - Korea Operating Earnings Available to Common Shareholders - Korea Operating Earnings Available to Common Shareholders - Korea
Slide 76: Reconciliation of Alico Net Income to Alico Japan Pre-Tax Operating Income
Reconciliation of Alico Net Income (loss) to Alico Japan Pre-Tax Operating Income Operating Income Operating Income Operating Income
Slide 77: Reconciliation of Premiums, Fees & Other Revenues
Reconciliation of Premiums, Fees & Other Revenues - Total Company and International International International 1As reported, unadjusted for subsequent events, including acquisitions, dispositions and discontinued operations. 1 1
Slide 78: MetLife
MetLife