Metlife, Inc. · NYSE:MET
Metlife — Q4 2018 Earnings Presentation
20 slides from Metlife's earnings presentation, Feb 6, 2019
Slide 1: 4Q18 Supplemental Slides
Exhibit 99.3 4Q18 Supplemental Slides John McCallion Chief Financial Officer
Slide 2: Table of Contents
Table of Contents Page Explanatory Note on Non-GAAP Financial Information and 3 Reconciliations............................................................................................ Net Income (Loss) to Adjusted Earnings..…..........………………................ 4 Notable Items….….……………………………………………..
Slide 3: Explanatory Note on Non-GAAP Financial Information and Reconciliations
Explanatory Note on Non-GAAP Financial Information and Reconciliations
Slide 4: Explanatory Note on Non-GAAP Financial Information
Explanatory Note on Non-GAAP 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) net income (loss); (i) net income (loss) available to MetLife, Inc.’s common shareh
Slide 5: Explanatory Note (Continued)
Explanatory Note on Non-GAAP Financial Information (Continued) Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures are included in this presentation and in this period’s quarterly financial supplement and earnings news release, which are available at www.metlife.
Slide 6: Explanatory Note (Continued)
Explanatory Note on Non-GAAP Financial Information (Continued) • Net investment income: (i) includes earned income on derivatives and amortization of premium on derivatives that are hedges of investments or that are used to replicate certain investments but do not qualify for hedge accounting treatm
Slide 7: Explanatory Note (Continued)
Explanatory Note on Non-GAAP Financial Information (Continued) • MetLife uses a measure of free cash flow to facilitate an understanding of its ability to generate cash for reinvestment into its businesses or use in non-mandatory capital actions. MetLife defines free cash flow as the sum of cash ava
Slide 8: Reconciliations
Reconciliations Wl MetLife
Slide 9: Reconciliation of Net Income to Adjusted Earnings Available to Common Shareholders
Reconciliation of Net Income (Loss) Available to MetLife, Inc.'s Common Shareholders to Adjusted Earnings Available to Common Shareholders 2018 4Q18 4Q17 Earnings Earnings Earnings Per Per Per Weighted Weighted Weighted Average Average Average Common Common Common Share Share Share Diluted1 Diluted1
Slide 10: Reconciliation to Adjusted Earnings, Excluding Total Notable Items
Reconciliation to Adjusted Earnings Available to Common Shareholders, Excluding Total Notable Items 4Q18 Retirement and Group Income Property & Latin MetLife Corporate U.S. Benefits Solutions Casualty Asia America EMEA Holdings & Other (In millions) Adjusted earnings available to common shareholders
Slide 11: Expense Detail and Ratios
Expense Detail and Ratios (In millions, except ratio data) 2015 2016 2017 2018 Reconciliation of Capitalization of DAC to Capitalization of DAC, as reported on an adjusted basis Capitalization of DAC $ (3,319) $ (3,152) $ (3,002) $ (3,254) Less: Divested businesses and lag elimination1 120 (1) 34 (1
Slide 12: Expense Detail and Ratios (Continued)
Expense Detail and Ratios (Continued) (In millions, except ratio data) 1Q18 2Q18 3Q18 4Q18 Reconciliation of Capitalization of DAC to Capitalization of DAC, as reported on an adjusted basis Capitalization of DAC $ (796) $ (834) $ (810) $ (814) Less: Divested businesses (1) — — — Capitalization of DA
Slide 13: Condensed Reconciliation of Operating Cash Flow to Free Cash Flow
Condensed Reconciliation of Net Cash Provided by Operating Activities of MetLife, Inc. to Free Cash Flow of All Holding Companies 2018 2017 (In billions, except ratios) MetLife, Inc. (parent company only) net cash provided by operating activities $ 5.5 $ 6.5 Adjustments from net cash provided by ope
Slide 14: Condensed Reconciliation to Free Cash Flow (Continued)
Condensed Reconciliation of Net Cash Provided by Operating Activities of MetLife, Inc. to Free Cash Flow of All Holding Companies (Continued) 1Adjustments include: (i) capital contributions to subsidiaries; (ii) returns of capital from subsidiaries; (iii) repayments on and (issuances of) loans to su
Slide 15: Net Income (Loss) to Adjusted Earnings
Net Income (Loss) to Adjusted Earnings ($ in millions) – Post-tax 4Q18 FY18 Net Income (Loss) $2,010 $4,982 Less: Net Investment Gains (Losses) 115 (235) Net Derivative Gains (Losses)1 742 672 Investment Hedge Adjustments (96) (375) Actuarial Assumption Review1 — (230) Other1 (87) (311) Adjusted Ear
Slide 16: Notable Items
Notable Items Post-tax 4Q18 FY18 $ in Per Share $ in Per Share millions Impact1 millions Impact1 Adjusted Earnings $1,336 $1.35 $5,461 $5.39 Less Notable Items: Tax Adjustments 247 0.25 247 0.24 Expense Initiative Costs (100) (0.10) (284) (0.28) Litigation Reserves & Settlement Costs (60) (0.06) (60
Slide 17: Adjusted Earnings ex. Total Notable Items by Segment
Adjusted Earnings ex. Total Notable Items by Segment ($ in millions) – Post-tax % % Change 1 4Q18 4Q17 Change (Constant Rate) Highlights + Volume Growth; + Taxes; Group Benefits $230 $230 —% - Underwriting Margins; - Investment Margins + Underwriting Margins; + Investment Margins; Retirement and Inc
Slide 18: On Track to Deliver Expense Target by 2020
On Track to Deliver Expense Target by 2020 Direct Expense Ratio 14.3% -140bps 13.3% 13.3% 13.1% 13.0% 13.0% 12.9% 12.5% 1Q18 2Q18 3Q18 4Q18 2015 2016 2017 2018 Note: Direct expense ratio, excluding total notable items related to direct expenses and PRT. See Explanatory Note for non-GAAP financial in
Slide 19: Cash & Capital
Cash & Capital • Holding Companies Cash & Liquid Assets1 $5.7B $5.1B $5.4B $4.5B $3.0B $3.0 - 4.0B Cash Buffer 4Q17 1Q18 2Q18 3Q18 4Q18 • Free Cash Flow Ratio2 – 2017 - 2018 average of 66% – Achieved target of 65-75% • 2018 Combined U.S. Risk Based Capital Ratio3 above 360% target • Japan Solvency M
Slide 20: MetLife – Navigating life together
iy’ MetLife Navigating life together