Metlife, Inc. · NYSE:MET
Metlife — Merger or Acquisition (September 2020)
15 slides from Metlife's merger presentation, Sep 17, 2020
Slide 1: Acquisition of Versant Health
Exhibit 99.1 Acquisition of Versant Health Compelling Strategic Combination with MetLife Group Benefits September 17, 2020
Slide 2: Cautionary Statement on Forward-Looking Statements
Cautionary Statement on Forward-Looking Statements The forward-looking statements in this presentation, such as “2021,” “ability,” “achievable,” “anticipated,” ”become,” “believe,” “can,” “connect,” “create,” “deliver,” “drive,” ”enter,” “expand,” “expect,” “future,” “grow,” “maintaining,” ”opportun
Slide 3: MetLife is acquiring Versant Health
MetLife is acquiring Versant Health • Acquiring 100% of Versant Health from private investor group Transaction • Purchase price of $1.675 billion in cash • Adds established product to our industry leading Group Benefits platform Strong • MetLife will become 3rd largest U.S. vision insurer by members
Slide 4: Next Horizon: Group Benefits strategic focus
Next Horizon: Group Benefits strategic focus Enter New Adjacencies Grow Voluntary Build Group Franchise Deliver value through Expand voluntary products, Enter categories of emerging differentiated capabilities capabilities and relationships growth and value • Grow National Accounts • Enter Accident
Slide 5: Managed vision care is an attractive market
Managed vision care is an attractive market • Favorable growth trends with ~5% annual growth in membership Network Predictable Capital Light Business with Underwriting Product Inherent Scale Performance Advantages Source: National Association of Vision Care Plans (NAVCP) 2020 benchmark data. Reflect
Slide 6: MetLife to be third largest U.S. vision insurer
MetLife to be third largest U.S. vision insurer Market Share1: 39% 26% 17%2 8% Key Highlights • Highly concentrated industry • Top three market position 38 Million Members • MetLife market share to 17% from 1% • High barriers to entry 1 2 Note: Membership figures as of June 2020. Remaining companies
Slide 7: Versant serves multiple markets across distribution channels
Versant serves multiple markets across distribution channels Revenue1 by Business Commercial Accounts Revenue1 Government National Programs Accounts 25% 25% 75% 75% Other Commercial Commercial Accounts Accounts 1 Based on 2021 projected Adjusted Premiums, Fees and Other Revenues (PFOs). 7
Slide 8: Versant's product excellence complements MetLife's strong distribution
Versant’s product excellence complements MetLife’s strong distribution MetLife Versant Product Group Benefits Accelerated and Pricing Distribution Revenue Growth Options Scale 8
Slide 9: Compelling expected financial impact
Compelling expected financial impact (USD in millions) Attractive Financial Profile 2021 Projected Financial Highlights • Low capital intensity Revenues1 ~$1,300M Adjusted Earnings ~$90M • High free cash flow conversion Free Cash Flow ~$130M • Significant revenue synergies over time Implied Purchase
Slide 10: Strong alignment with Next Horizon strategy and capital management philosophy
Strong alignment with Next Horizon strategy and capital management philosophy . Fits strategically ☑ . Accelerates revenue growth ☑ . Accretive ☑ . Clears risk-adjusted hurdle rate ☑ . Compelling use of capital ☑ 10
Slide 11: Appendix
Appendix Wy! MetLife
Slide 12: Explanatory Note on Non-GAAP and Other Financial Information
Explanatory Note on Non-GAAP and Other Financial Information Any references in this presentation (except in this Explanatory Note on Non-GAAP Financial Information and Reconciliations) to: Should be read as, respectively: (i) adjusted earnings; (i) adjusted earnings available to common shareholders;
Slide 13: Explanatory Note on Non-GAAP and Other Financial Information (Continued)
Explanatory Note on Non-GAAP and Other Financial Information (Continued) MetLife’s definitions of non-GAAP and other financial measures discussed in this presentation may differ from those used by other companies: Adjusted earnings and related measures • adjusted earnings; and • adjusted earnings av
Slide 14: Explanatory Note on Non-GAAP and Other Financial Information (Continued)
Explanatory Note on Non-GAAP and Other Financial Information (Continued) 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 adjustm
Slide 15: MetLife: Navigating life together
iy’ MetLife Navigating life together Wi MetLife