Metlife, Inc. · NYSE:MET
Metlife — Q3 2019 Earnings Presentation
22 slides from Metlife's earnings presentation, Oct 30, 2019
Slide 1: 3Q19 Supplemental Slides
Exhibit 99.3 3Q19 Supplemental Slides John McCallion Chief Financial Officer and Treasurer
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 Actuarial Assumption Review and Othe
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 on Non-GAAP Financial Information (Continued)
Explanatory Note on Non-GAAP Financial Information (Continued) Any of these financial measures shown on a constant currency basis reflect the impact of changes in foreign currency exchange rates and are calculated using the average foreign currency exchange rates for the most recent period and appli
Slide 6: Explanatory Note on Non-GAAP Financial Information (Continued)
Explanatory Note on Non-GAAP Financial Information (Continued) The following additional adjustments are made to revenues, in the line items indicated, in calculating adjusted revenues: • Universal life and investment-type product policy fees excludes the amortization of unearned revenue related to N
Slide 7: Explanatory Note on Non-GAAP Financial Information (Continued)
Explanatory Note on Non-GAAP Financial Information (Continued) The following additional information is relevant to an understanding of MetLife’s performance results: • MetLife uses a measure of free cash flow to facilitate an understanding of its ability to generate cash for reinvestment into its bu
Slide 8: Reconciliations
Reconciliations yl MetLife
Slide 9: Reconciliation of Net Income (Loss) 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 3Q19 3Q18 Earnings Per Earnings Per Weighted Weighted Average Average Common Common Share Share Diluted1 Diluted1 (In millions, except per share data) Net Income
Slide 10: Reconciliation to Adjusted Earnings, Excluding Total Notable Items
Reconciliation to Adjusted Earnings Available to Common Shareholders, Excluding Total Notable Items 3Q19 Retirement and Group Income Property & Latin MetLife Corporate U.S.1 Benefits1 Solutions1 Casualty1 Asia America EMEA Holdings1 & Other1 (In millions) Adjusted earnings available to common shareh
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) 1Q 2019 2Q 2019 3Q 2019 Reconciliation of Capitalization of DAC to Capitalization of DAC, as reported on an adjusted basis Capitalization of DAC $ (812) $ (837) $ (882) Less: Divested businesses and lag elimination — — (11) Capit
Slide 13: Premiums, Fees and Other Revenues
Premiums, Fees and Other Revenues (In millions) 2015 2016 2017 2018 Q1 2019 Q2 2019 Q3 2019 Total Company - Premiums, Fees and Other Revenues Premiums, fees and other revenues $ 43,900 $ 44,370 $ 45,843 $ 51,222 $ 11,264 $ 12,019 $ 12,640 Less: Unearned revenue adjustments 7 30 12 (7) — 20 59 Less:
Slide 14: Net Income (Loss) to Adjusted Earnings
Net Income (Loss) to Adjusted Earnings ($ in millions) – Post-tax 3Q19 Net Income (Loss) $2,152 Less: Net Investment Gains (Losses) 127 Net Derivative Gains (Losses)1 991 Investment Hedge Adjustments (96) Actuarial Assumption Review1 (19) Other1 (41) Adjusted Earnings $1,190 1Net Derivative Gains (L
Slide 15: Actuarial Assumption Review and Other Insurance Adjustments
Actuarial Assumption Review and Other Insurance Adjustments • Total impact to net income of negative $179 million ($ in millions) – Post-tax Adjusted Earnings $ (160) Non-Adjusted Earnings (19) Net Income $ (179) • Reduced mean reversion interest rate from 4.25% to 3.75%1 • Long-term care (LTC) stat
Slide 16: Actuarial Assumption Review and Other Insurance Adjustments by Segment
Actuarial Assumption Review and Other Insurance Adjustments by Segment ($ in millions) – Post-tax Non- Adjusted Adjusted Net Highlights Earnings Earnings Income Lower assumed reinvestment rate in Japan Asia $ (19) $ 10 $ (9) partially offset by lapse assumption updates in Japan and Korea Higher perc
Slide 17: Notable Items
Notable Items Post-tax 3Q19 $ in Per Share millions Impact1 Adjusted Earnings $1,190 $1.27 Less Notable Items: Actuarial Assumption Review and Other Insurance Adjustments (160) (0.17) Subtotal 1,350 1.44 Expense Initiative Costs (88) (0.09) Adjusted Earnings, ex. Total Notable Items $1,438 $1.54 1 T
Slide 18: Adjusted Earnings ex. Total Notable Items by Segment
Adjusted Earnings ex. Total Notable Items by Segment ($ in millions) – Post-tax % % Change 1 3Q19 3Q18 Change (Constant Rate) Highlights Group Benefits $366 $333 10% + Expense Margins; + Volume Growth - Investment Margins; - Underwriting Margins; Retirement and Income Solutions 284 339 (16%) + Expen
Slide 19: Variable Investment Income
Variable Investment Income ($ in millions) - Pre-tax $334 $326 $280 $268 $237 $176 $174 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 $200 - $250 Quarterly VII Target Range 9
Slide 20: Steady Progress Toward Achieving Expense Targets; 3Q19 YTD Aided by Favorable Items
Steady Progress Toward Achieving Expense Targets; 3Q19 YTD Aided by Favorable Items Direct Expense Ratio1 14.3% -140bps 13.3% 13.3% 12.9% 12.3% 12.1% 12.2% 2015 2016 2017 2018 1Q19 2Q19 3Q19 1 Direct expense ratio, excluding total notable items related to direct expenses and PRT. See Explanatory Not
Slide 21: Cash & Capital
Cash & Capital • Holding Companies Cash & Liquid Assets1 $4.5B $4.2B $3.5B $3.2B $3.0B to $4.0B $3.0B Cash Buffer 3Q18 4Q18 1Q19 2Q19 3Q19 • Returned $1.2 billion of capital to shareholders in 3Q19 • Japan Solvency Margin Ratio of 896% at June 30, 2019 1 At quarter-end. 11
Slide 22: MetLife - Navigating life together
iy MetLife Navigating life together