Metlife, Inc. · NYSE:MET
Metlife — MetLife Stable Value & Institutional Products Client Conference 2008
105 slides from Metlife's conference presentation, Jun 19, 2008
Slide 1: MetLife Stable Value & Institutional Products Client Conference
MetLife Stable Value & Institutional Products Client Conference June 19, 2008
Slide 2: Safe Harbor Statement
Safe Harbor Statement These materials contain statements which constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to trends in the operations and financial results and the business and the products of MetLif
Slide 3: Explanatory Note on Non-GAAP Financial Information
Explanatory Note on Non-GAAP Financial Information The historical and forward-looking financial information presented at this conference and contained in these presentations include performance measures which are based on methodologies other than Generally Accepted Accounting Principles ("GAAP"). Me
Slide 4: Explanatory Note on Non-GAAP Financial Information (Continued)
Explanatory Note on Non-GAAP Financial Information (Continued) Operating return on common equity is calculated by dividing operating earnings available to common shareholders (as defined above) by average common equity for the period indicated, excluding accumulated other comprehensive income. For t
Slide 5: Conference Objectives
Conference Objectives Overview of MetLife's Institutional Business Review of MetLife's financial strength and performance Dialogue with Senior Officers of MetLife
Slide 6: Agenda
Agenda Time Topic Presenter 8:30 - 9:00 a.m. Registration & Breakfast 9:00 - 9:10 a.m. Welcome & Introductory Remarks Gregory P. Falzon 9:10 - 9:55 a.m. MetLife Financial Overview William J. Wheeler 9:55 - 10:20 a.m. Corporate Benefit Funding Businesses Robin F. Lenna 10:20 - 10:40 a.m. Capital Mark
Slide 7: MetLife Financial Overview
MetLife Financial Overview William J. Wheeler Executive Vice President & Chief Financial Officer MetLife Stable Value & Institutional Products Client Conference
Slide 8: Agenda
Agenda First Quarter 2008 Financial Overview Current Financial Strength Ratings RGA split-off
Slide 9: First Quarter 2008 Financial Overview
First Quarter 2008 Financial Overview See Appendix for non-GAAP financial information definitions and/or reconciliations. * Excluding AOCI ($ millions, except per share and book value data) ** Operating Return on Common Equity is calculated by dividing annualized 1Q earnings by average adjusted 1Q e
Slide 10: Premiums, Fees & Other Revenues
2003 2004 2005 2006 2007 Q107 Q108 24269 26265 29959 32560 34751 8429 9400 CAGR 9.4% ($ millions) 11.5% Premiums, Fees & Other Revenues See Appendix for non-GAAP financial information definitions and/or reconciliations.
Slide 11: Premiums, Fees & Other Revenues by Line Of Business
Premiums, Fees & Other Revenues by Line Of Business ($ millions) See Appendix for non-GAAP financial information definitions and/or reconciliations.
Slide 12: Total Assets
Total Assets 2003 2004 2005 2006 2007 Q108 General Account 251 270 353.7 383.3 398.4 404.5 Separate Account 75.8 86.8 127.9 144.4 160.2 152.6 ($ billions) CAGR 14.3% $326.8 $356.8 $527.7 $481.6 $557.1 $558.6
Slide 13: Underwriting Results
Underwriting Results 2003 2004 2005 2006 2007 Q107 Q108 Individual Mortality (Gross of Reinsurance) 0.877 0.82 0.854 0.851 0.864 0.876 0.934 2003 2004 2005 2006 2007 Q107 Q108 Combined Ratio 0.997 0.968 0.964 0.872 0.884 0.877 0.908 Combined Ratio Ex Cats 0.971 0.904 0.867 0.828 0.863 0.863 0.876 20
Slide 14: Investment Yields and Spreads
Investment Yields and Spreads
Slide 15: Total Company Operating Expense Ratio
Total Company Operating Expense Ratio 2003 2004 2005 2006 2007 Q107 Q108 Operating Expense Ratio 0.278 0.28 0.285 0.306 0.308 0.314 0.281 Operating expense ratio is defined as expenses excluding certain items, divided by premiums, fees and other revenues. See Appendix for non-GAAP financial informat
Slide 16: Operating Earnings Available to Common Shareholders Per Diluted Common Share
Operating Earnings Available to Common Shareholders Per Diluted Common Share 2003 2004 2005 2006 2007 Q107 Q108 2.83 3.36 4.31 5.22 6.25 1.41 1.52 CAGR 21.9% 7.8% $1.52 $4.31 $3.36 $2.83 $5.22 $1.41 See Appendix for non-GAAP financial information definitions and/or reconciliations. $6.25
Slide 17: Operating Earnings Available to Common Shareholders by Line of Business
Operating Earnings Available to Common Shareholders by Line of Business See Appendix for non-GAAP financial information definitions and/or reconciliations. ($ millions)
Slide 18: GAAP Results Total Company
GAAP Results Total Company ($ millions, except per share data) See Appendix for non-GAAP financial information definitions and/or reconciliations.
Slide 19: Financial Strength Ratings
Financial Strength Ratings Company ratings as of May 30, 2008.
Slide 20: RGA Split-off
RGA Split-off RGA will recapitalize its common stock into two classes Class A: right to elect up to 20% of RGA's directors Class B: right to elect up to 80% of RGA's directors Substantially all of MetLife's interest in RGA will be exchanged for RGA class B common stock MetLife will then conduct a ta
Slide 21: Summary
Summary Our business continues to perform well Capital levels and balance sheet status are good We remain committed to maintaining MetLife's financial strength
Slide 22: MetLife
MetLife
Slide 23: Corporate Benefit Funding
Corporate Benefit Funding Robin Lenna Senior Vice President MetLife Stable Value & Institutional Products Client Conference
Slide 24: Agenda
Who are we Macro trends, challenges and opportunities Solutions Market leadership How we compete and win Agenda
Slide 25: Who Are We - Corporate Benefit Funding
Who Are We - Corporate Benefit Funding Deliver retirement, benefit funding and investment solutions Help companies make good on their benefit promises Significant driver of growth for MetLife Institutional Business Leader in markets in which we choose to compete
Slide 26: Macro Trends, Challenges and Opportunities
Macro Trends, Challenges and Opportunities Enhanced focus on retirement Global aging Legislation highlights retirement security Accounting drives financial transparency Financial and economic markets challenging
Slide 27: Employee Benefits and Retirement Landscape
Employee Benefits and Retirement Landscape Defined Contribution Plans 401(k), 457, 403(b) Defined Benefit Plans Non-Qualified Other Post Employment Benefits (OPEBs) Retiree Life & Health Deferred Compensation Plans Qualified Employer Liability Lower Higher Traditional Pension Plans Cash Balance Plan
Slide 28: Distribution Channels
Distribution Channels Direct to plan sponsors Consultants / brokers Third party administrators
Slide 29: GICs and Funding Agreements
Fixed or floating interest rate CPI-index linked Callable structures Participant withdrawals (benefit responsive) at book value Offers guaranteed full return of principal and accrued interest Both general account and separate account GICs and Funding Agreements Retirement plan investment solutions K
Slide 30: Pension Closeouts
Pension Closeouts Benefit liability funding Product: Single premium income annuity for retired and deferred lives Sold to: Defined benefit pension plans Purpose: Transfer risks associated with pension liabilities Plan sponsor transfers liability by paying a lump sum to MetLife MetLife provides guara
Slide 31: Non-qualified Benefit Liability Solutions
Non-qualified Benefit Liability Solutions Benefit liability funding Product: Life insurance and funding agreements Sold to: Employers and trusts Purpose: To better manage non-qualified benefit liabilities Retiree life insurance Executive plans Deferred compensation plans Key benefits: Reduces long-t
Slide 32: Income Annuities
Income Annuities Retirement and income solutions Product: Fixed and variable deferred and immediate annuities Sold to: Employers and employees Purpose: Provide guaranteed income for life Key benefits: Enhances an employer's benefits package Supplements or enhances an existing defined benefit or 401(
Slide 33: Market Leadership
Market Leadership1 Assets (2007) Sales2 (2007) 1 GICs, Funding Agreements, Traditional Closeouts, Income Annuities, Structured Settlements: Stable Value LIMRA Market Share Study FY2007; Global GICs: Standard & Poors; FHLB- NY: Federal Home Loan Bank of NY; Farmer MAC Notes: Federal Agricultural Mort
Slide 34: How We Compete and Win
How We Compete and Win Recognized experience and expertise for complex cases Brand and financial strength to provide guarantees Superior relationships with Institutional clients Creative solutions to meet current market conditions Replace uncertainty with predictability Integrity and trust
Slide 35: MetLife
MetLife
Slide 36: Capital Markets: Funding Agreement-Backed Programs
Capital Markets: Funding Agreement-Backed Programs Tom Lenihan Managing Director Capital Markets Group MetLife Stable Value & Institutional Products Client Conference
Slide 37: Agenda
Agenda Funding Agreement-Backed Program Structure Program Overviews
Slide 38: Company Structure
MetLife, Inc. ("Holding Company") Company Structure International Subsidiaries Other Subsidiaries Bank Auto & Home Metropolitan Life Insurance Company ("MLIC") Aa2 / AA Domiciled in New York MetLife Insurance Company of Connecticut ("MICC") Aa2 / AA Domiciled in Connecticut
Slide 39: What Is a Funding Agreement?
What Is a Funding Agreement ("FA")? A FA is an annuity contract without the mortality component Subject to regulation as an insurance obligation Similar to a guaranteed investment contract with specified terms such as amount, interest rate, and maturity date Carries same rating as the financial stre
Slide 40: Structure of Programs
Structure of Programs Proceeds Proceeds Funding Agreement Notes Investors Trust/ SPV MLIC/ MICC
Slide 41: Structure of Programs
Structure of Programs Invest Proceeds Net Spread 5.50% - - 5.00% 50 bps Yield Earned on Invested Cash (5.50%) Cost of Funds Paid to Investor (5.00%) Proceeds Proceeds Funding Agreement Notes Investors Trust/ SPV Portfolio MLIC/ MICC
Slide 42: MetLife's Funding Agreement-Backed Programs
MetLife's Funding Agreement-Backed Programs MLIC Funding Agreement-Backed Notes (GMTN) MICC Funding Agreement-Backed Notes (EMTN) Funding Agreement-Backed Commercial Paper Farmer Mac Guaranteed Notes Federal Home Loan Bank Advances The Following Programs Operate in the Global Capital Markets Using F
Slide 43: FA-Backed Notes Programs Operating Paradigm
FA-Backed Notes Programs Operating Paradigm Programs operated within the Investments Department's Capital Markets Group (CMG) CMG has both Asset and Liability responsibility Liability features drive asset mix and characteristics Derivatives are actively used to manage duration, currency and cash flo
Slide 44: FA-Backed Notes Market: Issuance Trend
FA-Backed Notes Market: Issuance Trend 1997 0.7 1998 5.9 1999 13.9 2000 20.4 2001 28.5 2002 27.4 2003 34.7 2004 37.6 2005 32.1 2006 32.3 2007 32 Over $265B of notes have been offered since 1997 ($158B currently outstanding) 20 programs issued a total of $32.0B of notes in 2007 Issuance by Year* *Dat
Slide 45: FA-Backed Notes Market: Program Issuance
FA-Backed Notes Market: Program Issuance USD GBP CAD CHF EUR MXN JPY AEGON 5.8 MET 3.5 0.4 1.2 0.1 PFG 2.3 0.1 0.7 ALL 3 NYL 1.1 0.7 0.3 0.8 PRU 1.8 0.4 0.2 HIG 1.6 0.2 MASSMUT 1.7 GNW 1.4 0.2 ING 1.5 *Data source: Standard & Poor's AIG 23.8 MET 23 PFG 14.4 AEGON 13.1 ALL 12.9 NYL 11.8 PRU 8.4 PACLI
Slide 46: FA-Backed Notes Program Overview: Metropolitan Life Global Funding I
FA-Backed Notes Program Overview Metropolitan Life Global Funding I (GMTN) Type: Global: 144A / Reg S Shelf Size: US $25 Billion Issuer: Metropolitan Life Global Funding I Listing: Irish Stock Exchange Ratings: Aa2 (stable) / AA (stable) Maturities: Primarily out to 10 Yrs; longer available Offering
Slide 47: MLIC FA-Backed Notes Program Summary
MLIC FA-Backed Notes Program Summary 64 discrete transactions totaling over $27 billion of notes offered since inception of the program in June 2002 Average annual issuance of about $4.5 billion Outstanding balance totals approximately $21.8 billion Global presence with issuances in 7 currencies Pro
Slide 48: FA-Backed Notes Program Overview: MetLife Institutional Funding I
FA-Backed Notes Program Overview MetLife Institutional Funding I (EMTN) Type: Reg S Shelf Size: US $3 Billion Issuer: MetLife Institutional Funding I Listing: Irish Stock Exchange Ratings: Aa2 (stable) / AA (stable) Maturities: Primarily out to 10 Yrs; longer available Offerings: Generally up to $25
Slide 49: FA-Backed CP Program Overview
FA-Backed CP Program Overview Program Name: Beagle Funding LLC (to be renamed MetLife Short Term Funding) Authorized Shelf Size: $10 Billion Ratings: "A-1+" and "P-1" by S&P and Moody's, respectively CP is secured by a Funding Agreement issued by MLIC or MICC* Program Arranger: Morgan Stanley Named
Slide 50: FA-Backed CP Program Summary
FA-Backed CP Program Summary Inaugural issuance in November 2007 Current outstandings in excess of $2 billion Orderly ramp-up in outstandings Depending on market conditions, investor demand and asset availability Issuance terms are driven by investor considerations (i.e. size, maturity, pricing)
Slide 51: Farmer Mac Guaranteed Trust Notes Overview
Farmer Mac Guaranteed Trust Notes Overview Trust issues notes that are guaranteed by Federal Agricultural Mortgage Corporation (Farmer Mac) MLIC writes a funding agreement, collateralized by agricultural loans, to a Farmer Mac business trust MLIC retains ownership rights and economics of underlying
Slide 52: Federal Home Loan Bank Advance Programs
Federal Home Loan Bank Advance Programs Private market investor Advances must be collateralized Collateral is residential-mortgage related Access to funding with attractive cost of funds Contingent source of liquidity Near $6 billion in advances currently outstanding MetLife entities are members of
Slide 53: Investor Focus
Investor Focus Over 500 separate institutional investors, including "who's who" of credit investors Total holdings of the largest investor: $945M Total holdings of the top ten investors: $6.0B Virtually no hedge funds / "fast money" investors Mutual interest in well-behaved credit spreads while prov
Slide 54: MetLife
MetLife
Slide 55: Investments Overview
Investments Overview Robert W. Morgan Managing Director Portfolio Management MetLife Stable Value & Institutional Products Client Conference
Slide 56: Agenda
Agenda Market Overview Portfolio Review Asset allocation Fixed maturity securities Alternative investments Real estate Derivatives Risk Management
Slide 57: 2008 Market View and Themes
2008 Market View and Themes Economy Significant recession risk Inflation Elevated inflation risk Interest Rates Fed remains on hold Curve steepens Fixed Income Sectors Fundamentals deteriorating Spreads remain wide and choppy Commercial Real Estate Sectors Fundamentals softening Spreads remain wide
Slide 58: Market Dislocation: Spreads Have Widened
Market Dislocation: Spreads Have Widened High Yield Spreads A Corporates BBB Corporates AAA CMBS 30yr Conventional MBS 12/29/2006 274.6885 80.14272834 117.4590151 64.15370878 33.64808549 1/1/2007 276.7401 80.14272834 117.4590151 64.56749068 33.64808549 1/2/2007 276.7401 80.47434271 118.0737865 64.56
Slide 59: Credit Market Dislocation
Credit Market Dislocation Market MetLife Transparency Liquidity Capital Anticipated sub-prime collapse See-through underwriting Highly liquid Well capitalized: Maintain AA rating
Slide 60: Portfolio Allocation Trend
MetLife Portfolio Allocation Trend Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 2008 Mid-Pt, USS. Treasury/Agency Th 71h 93% 98% 65% 7.5% Structured Finance Residential MBS 14.7% 14.0% 16.2% 165% 17.4% 17.2% 18.0% Commercial MBS 5.1% 5.4% 6.1% 5.3% 5.4% 5.7% 6.0% Asset -Backed Securities 5.6% AT% 4.0% 44% 3.4
Slide 61: Higher Quality Investment Grade Credit Portfolio
Higher Quality Investment Grade Credit Portfolio $119 billion* Approximately 30% private placements Decreased 'BBB' exposure Reduced exposure to housing, auto, airline and other recession-prone sectors 12/31/2003 3/31/2008 AAA/AA/A 0.208 0.222 BBB 0.188 0.142 Investment Grade Bonds as a % of Managed
Slide 62: Below Investment Grade Portfolio Allocation
Public HY Private HY Emerging Markets Secured Bank Loans Project Finance 0.39 0.07 0.15 0.32 0.066 Defensive Below Investment Grade Portfolio 32% 39% 15% Public High Yield Emerging Markets Secured Bank Loans * As of 12/31/03 Market value as of 3/31/08 Below Investment Grade Portfolio Allocation Redu
Slide 63: High Quality Structured Finance Portfolio
12/31/2003 3/31/2008 Residential Mortgage Backed Securities 0.147 0.172 Commercial Mortgage Backed Securities 0.051 0.057 Asset Backed Securities 0.056 0.035 High Quality Structured Finance Portfolio $86.7 billion* Modestly increased exposure to structured finance securities Diversified portfolio aw
Slide 64: High Quality RMBS Provide Good Value
High Quality RMBS Provide Good Value $56.5 billion* 99% AAA 90% Prime and 67% Agency Backed Very liquid and attractive relative value Volatility mitigated by: Matching assets with liabilities Structure / security underwriting Hedging with derivatives *Market value as of 3/31/08. RMBS Allocation
Slide 65: Alt-A RMBS Portfolio
Alt-A RMBS Portfolio $5.8 billion* 99.8% AAA Conservative profile versus market Approximately 84% Super Senior 88% Fixed Rate Average subordination is 12% No Option ARMs and none backed by second liens Lower exposure to investment properties and California *Market value as of 3/31/08. +Average subor
Slide 66: Identified Sub-Prime Risk Early
Identified Sub-Prime Risk Early Dec-05 Dec-06 12/31/2007 3/8/2008 Stopped purchasing 'A' and lower tranches in late 2004 Reduced exposure by 46% from year-end 2005 to March 31, 2008 Sub-Prime Mortgage Holdings ($ Millions) $3,547 $3,032 $2,222 $1,925
Slide 67: Commercial Mortgage-Backed Securities
A AAA AA BBB & Below 0.02 0.9 0.05 0.03 $18.6 billion* 95% AAA/AA 74% from 2005 and prior vintages Provide long duration assets and portfolio diversification Commercial Mortgage-Backed Securities *Market value as of 3/31/08. AAA AA A BBB & Below Total CMBS
Slide 68: Real Estate and Agricultural Investments
Real Estate and Agricultural Investments 12/31/2003 3/31/2008 Commercial Mortgages 0.107 0.114 Agricultural Mortgages 0.026 0.034 Real Estate Equity 0.039 0.032 Real Estate & Agricultural Investments as a % of Managed Assets $36.9B $59.0B 3.9% 2.6% 10.7% 11.4% 3.4% 3.2% 18.0% 17.2% Full-service real
Slide 69: High Quality Commercial Mortgage Portfolio
High Quality Commercial Mortgage Portfolio 55%* average loan-to-value Virtually no defaults Conservative underwriting Diversified by property type and geographic location On-going pruning of higher risk loans Commercial Mortgages ($ Billions) Dec-03 Mar-08 <65% LTV 50% 69% 65-75% LTV 37% 25% >75% LT
Slide 70: MetLife LTV vs. Market LTV at Loan Origination
2003 2004 2005 2006 2007 3/31/2008 MetLife LTV 0.65 0.66 0.63 0.62 0.61 0.53 CMBS LTV 0.723 0.725 0.727 0.73 0.71 0.7 70% Source for market data: Moody's Investors Service Average Market LTV Target Lower Risk Commercial Mortgages Average Loan to Value MetLife LTV vs. Market LTV at Loan Origination M
Slide 71: Equity Securities and Other Limited Partnerships
Equity Securities and Other Limited Partnerships $12 billion* Common stock primarily supports the Closed Block Diversified Alternative Investments portfolio Common Stock Preferred Stock Corporate Joint Ventures East 0.23 0.24 0.53 Equity Securities and Other Limited Partnerships Common Stock *Market
Slide 72: Alternative Investments Portfolio
Alternative Investments Portfolio $5.8 billion* Alternative Investments included in the $12 billion of Equity Securities and Other Limited Partnership Interests Growing portfolio while decreasing reliance on LBO funds Other includes Mezzanine, Distress, Infrastructure, Energy & Timber *Market value
Slide 73: Using Derivatives to Reduce Risk
Interest Rates Foreign Exchange Credit Equity 69 15 8 9 Using Derivatives to Reduce Risk 99%* of Derivatives used for hedging purposes Hedges in place for portfolios with guarantees, as well as portfolios with sensitivity to floating rate liabilities Protect against adverse rate / curve environment
Slide 74: Investments Risk Management Unit
Investments Risk Management Unit Expanded Investments Risk Management team Economic capital limits Aggregate exposures across all asset classes Stress testing Total Portfolio Risk Limit Asset Class Limits Sector Risk Limits Issuer Risk Limits
Slide 75: Market Risk: Insurance Industry Risks
Market Risk: Insurance Industry Risks Last Year This Year Low rates Recession risk Flat curve Credit defaults Tight spreads Pricing uncertainty Continued yield curve inversion Market volatility
Slide 76: Proactive Portfolio Management has Positioned MetLife Well for Current Volatility
Proactive Portfolio Management has Positioned MetLife Well for Current Volatility Fundamental credit analysis Portfolio diversification Credit exposure management Early sector calls Real estate sales Risk management
Slide 77: MetLife
MetLife
Slide 78: MetLife Institutional Business
MetLife Institutional Business William J. Mullaney President MetLife Stable Value & Institutional Products Client Conference
Slide 79: Agenda
Agenda Institutional Business Overview Financial Highlights Growth Opportunities Wrap-Up
Slide 80: 2007 Operating Earnings Available to Common Shareholders At-A-Glance
YTD 4Q2007 Institutional 0.41 Individual 0.32 Auto & Home 0.09 International 0.12 Reinsurance & Other 0.06 2007 Operating Earnings Available to Common Shareholders At-A-Glance MetLife Total = $4,762M Reinsurance & Other $288M (6%) International $568M (12%) Auto & Home $426M (9%) Individual $1,513M (
Slide 81: Institutional Business: A Leader in the Marketplace
R&S Group Life NMH Operating Earnings 1141 463 363 Retirement & Savings ($1,141M, 58%) Group Life ($463M, 24%) Non-Medical Health ($363M, 18%) Institutional Business 2007 Operating Earnings Available to Common Shareholders = $1,967M A Leader in the Marketplace Institutional Rank* Business (Sales) #1
Slide 82: Premiums, Fees & Other Revenues
Premiums, Fees & Other Revenues 2003 2004 2005 2006 2007 Q107 Q108 10341 11402 12812 13327 13921 3506 3987 CAGR 7.7% ($Millions) 13.7% $3,506 $3,987 $10,341 $11,402 $12,812 $13,327 $13,921
Slide 83: Total Policyholder Balances
Total Policyholder Balances 2003 2004 2005 2006 2007 Q107 Q108 General Account 62.5 70.6 103.4 110.4 118 112 121.6 Separate Account 40.5 40.4 45.2 47 52 47.8 51.8 ($Billions) CAGR 13.3% $103.0 $111.0 $148.6 $157.4 $170.0 $173.4 $159.8 8.5%
Slide 84: Operating Earnings Available to Common Shareholders
Operating Earnings Available to Common Shareholders 2003 2004 2005 2006 2007 Q107 Q108 1051 1249 1445 1700 1967 452 558 CAGR 17.0% ($Millions) 23.5% $452 $558 $1,051 $1,249 $1,445 $1,700 $1,967 See Appendix for non-GAAP financial information definitions and/or reconciliations.
Slide 85: Institutional Drivers
Institutional Drivers Maintain strong fundamentals Top line growth in all segments Market share growth and margin improvement Steeper yield curve Lower equity and hedge fund returns Market liquidity
Slide 86: U.S. Group Employee Benefits: Alone...and Diversified
MetLife A B C D E F G H I Life 5.24 1.12 1 1.2 2.68 1.18 0.65 0.32 0.29 - Dental 5.12 3.53 2.79 - - - - - - - Disability 2.47 0.8 0.89 3.01 0.76 2.1 1.01 0.29 0.17 - LTC 0.33 - - 0.19 0.04 - - - - 0.34 Auto & Home 0.87 - - - - - - - 0.09 - ($ Billions) U.S. Group Employee Benefits: Alone...and Diver
Slide 87: Life & Non-Medical Health: Key 2008 Initiatives
Life & Non-Medical Health: Key 2008 Initiatives Thought Leadership Global Account Management Integration of Safeguard Investment in Group Disability
Slide 88: Retirement & Savings - Sales by Product
Retirement & Savings - Sales by Product 2004 2005 2006 2007 401(k) 1.909 1.836 1.535 0.104 GICs/Funding Agreements 1.531 1.32 2.121 1.385 MMGIC/Trust GICs/Other 1.752 1.14 1.237 0.675 Structured Settlements 0.907 1.06 0.797 0.661 Capital Mkt Inv Products 3.937 4.014 6.679 10.641 Closeouts 0.578 0.10
Slide 89: Retirement & Savings: Key 2008 Initiatives
Retirement & Savings: Key 2008 Initiatives Integrated Market Approach Pension Closeouts Innovative Solutions to meet Current Market Conditions Income Annuities
Slide 90: Wrap-Up
Wrap-Up Strong record of revenue and earnings growth Proven market leadership Innovative products and services Well positioned to capitalize on significant growth opportunities
Slide 91: MetLife
MetLife
Slide 92: Appendix: Definitions and Reconciliations of Non-GAAP Financial Information
Appendix Definitions and Reconciliations of Non-GAAP Financial Information June 19, 2008
Slide 93: Explanatory Note on Non-GAAP Financial Information
Explanatory Note on Non-GAAP Financial Information The historical and forward-looking financial information presented at this conference and contained in these presentations include performance measures which are based on methodologies other than Generally Accepted Accounting Principles ("GAAP"). Me
Slide 94: Explanatory Note on Non-GAAP Financial Information (Continued)
Explanatory Note on Non-GAAP Financial Information (Continued) Operating return on common equity is calculated by dividing operating earnings available to common shareholders (as defined above) by average common equity for the period indicated, excluding accumulated other comprehensive income. For t
Slide 95: Definitions
Definitions Sales (Institutional): Sales include annualized revenue at issue and initial deposit. Premium Equivalents: The estimated premium amount for administrative services only accounts if they had been fully insured plans.
Slide 96: Reconciliation of Net Income to Operating Earnings Available to Common Shareholders
Reconciliation of Net Income Available to Common Shareholders to Operating Earnings Available to Common Shareholders Operating Earnings Available to Common Shareholders Operating Earnings Available to Common Shareholders
Slide 97: Reconciliation of Net Income per Share to Operating Earnings per Share
Reconciliation of Net Income Available to Common Shareholders per Share to Operating Earnings Available to Common Shareholders per Share Operating Earnings Available to Common Shareholders per Share Operating Earnings Available to Common Shareholders per Share
Slide 98: Reconciliation of Net Income to Operating Earnings Available to Common Shareholders
Reconciliation of Net Income Available to Common Shareholders to Operating Earnings Available to Common Shareholders * Adjustments related to net investment gains (losses), net of income tax, includes amortization of unearned revenue and deferred policy acquisition costs, adjustments to the policyho
Slide 99: Reconciliation of Net Income to Operating Earnings Available to Common Shareholders
Reconciliation of Net Income Available to Common Shareholders to Operating Earnings Available to Common Shareholders Operating Earnings Available to Common Shareholders Operating Earnings Available to Common Shareholders Operating Earnings Available to Common Shareholders Operating Earnings Availabl
Slide 100: Reconciliation of Net Income to Operating Earnings Available to Common Shareholders
Reconciliation of Net Income Available to Common Shareholders to Operating Earnings Available to Common Shareholders Operating Earnings Available to Common Shareholders Operating Earnings Available to Common Shareholders * Adjustments related to net investment gains (losses), net of income tax, incl
Slide 101: Reconciliation of Book Value per Common Share
Reconciliation of Book Value per Common Share Reconciliation of Book Value per Common Share
Slide 102: Reconciliation of Premiums, Fees and Other Revenues
Reconciliation of Premiums, Fees and Other Revenues Reconciliation of Premiums, Fees and Other Revenues
Slide 103: Reconciliation of Operating Expenses and Expense Ratio
Reconciliation of Operating Expenses and Expense Ratio Reconciliation of Operating Expenses and Expense Ratio
Slide 104: Reconciliation of Return on Common Equity
Reconciliation of Return on Common Equity Reconciliation of Return on Common Equity
Slide 105: MetLife
MetLife
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