Metlife, Inc. · NYSE:MET
Metlife — Q1 2018 Earnings Presentation
19 slides from Metlife's earnings presentation, May 2, 2018
Slide 1: 1Q18 Supplemental Slides
1Q18 Supplemental Slides John McCallion Chief Financial Officer Exhibit 99.3
Slide 2: Table of Contents
2 Table of Contents Page GAAP Expense Detail and Ratios...........................………………. 3 Net Income (Loss) Reconciliation…………………..………………. 4 Notable Items….….…………………………………………………... 5 Adjusted Earnings Ex. Total Notable Items by Segment…………. 6 U.S. Tax Reform Impact by Segment........………………………… 7 U
Slide 3: GAAP Expense Detail and Ratios
GAAP Expense Detail and Ratios (In millions, except ratio data) Other Expenses Net of Capitalization of DAC and Expense Ratio 2015 2016 2017 Other Expenses $14,105 $13,295 $12,953 Add: Capitalization of DAC (3,319) (3,152) (3,002) Other Expenses Net of Capitalization of DAC $10,786 $10,143 $9,951 To
Slide 4: Net Income (Loss) Reconciliation
4 Net Income (Loss) Reconciliation 1Q18 Net Income (Loss)1 $1,247 Less: Net Investment Gains (Losses) (263) Net Derivative Gains (Losses) 276 Investment Hedge Adjustments (87) Other (102) Adjusted Earnings1 $1,423 (In millions) – Post-tax 1 Available to common shareholders. See Appendix for non-GAAP
Slide 5: Notable Items
5 Notable Items (In millions, except per share data) – Post-tax 1 Available to common shareholders. 2Adjusted earnings available to common shareholders is calculated on a standalone basis and may not equal the sum of adjusted earnings available to common shareholders, excluding total notable items.
Slide 6: Adjusted Earnings Ex. Total Notable Items by Segment
6 Adjusted Earnings Ex. Total Notable Items by Segment ($ in millions) – Post-tax 1Q18 1Q17 % Change % Change(Constant Rate) Group Benefits $218 $191 14% Retirement and Income Solutions 339 257 32% Property & Casualty 96 72 33% U.S. $653 $520 26% Asia 327 298 10% 6% Latin America 140 144 (3%) (11%)
Slide 7: U.S. Tax Reform Impact by Segment
7 U.S. Tax Reform Impact by Segment ($ in millions) – Post-tax 1Q18 Tax ReformImpact Tax Rate As Reported Group Benefits $218 $41 23% Retirement and Income Solutions 339 60 20% Property & Casualty 96 0 17% U.S. $653 $101 21% Asia 327 11 31% Latin America 140 (10) 35% EMEA 81 (7) 21% MetLife Holdings
Slide 8: UCI Driving Lower Expense Ratio
UCI Driving Lower Expense Ratio Adjusted Expense Ratio Expense Ratios, ex. Total Notable Items Related to Other Expenses and Pension Risk Transfer (PRT) 25% 24% 23% 22% 21% 20% 2015 2016 2017 1Q18 23.5% 21.7% 21.0% 20.8% Direct Expense Ratio 15% 14% 13% 12% 2015 2016 2017 1Q18 14.3% 13.3% 13.3% 13.0
Slide 9: New Disclosure to Track UCI
New Disclosure to Track UCI (In millions, except ratio data) 1Q17 2Q17 3Q17 4Q17 1Q18 Adjusted PFO's $10,882 $11,398 $12,620 $11,300 $10,929 Pension Risk Transfer (PRT) 70 809 1,829 597 — Adjusted PFO's ex. PRT $10,812 $10,589 $10,791 $10,703 $10,929 Adjusted Expenses, ex. Total Notable Items1 $2,14
Slide 10: Material Weakness Remediation Progress
Material Weakness Remediation Progress • RIS: Implemented immediate changes to improve administrative and accounting procedures • Japan VA: Implemented immediate changes to data flow and input controls • Introduced enhanced escalation procedures throughout the Company • Commenced third party compreh
Slide 11: Appendix
Appendix
Slide 12: 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) to: should be read as, respectively: (i) net income (loss); (i) net income (loss) available to MetLife, Inc.’s common shareholders; (ii) adjuste
Slide 13: Explanatory Note on Non-GAAP Financial Information (Continued)
Explanatory Note on Non-GAAP Financial Information (Continued) MetLife’s definitions of the various 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 available to common share
Slide 14: Explanatory Note on Non-GAAP Financial Information (Continued)
Explanatory Note on Non-GAAP 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) changes in the policyholder dividend ob
Slide 15: Reconciliation of Net Income (Loss) to Adjusted Earnings Available to Common Shareholders
Reconciliation of Net Income (Loss) Available to Common Shareholders to Adjusted Earnings Available to Common Shareholders 15 1Adjusted earnings available to common shareholders is calculated on a standalone basis and may not equal the sum of adjusted earnings available to common shareholders, exclu
Slide 16: Reconciliation to Adjusted Earnings Excluding Total Notable Items
Reconciliation to Adjusted Earnings Available to Common Shareholders Excluding Total Notable Items 16
Slide 17: Expense Detail and Ratios
Expense Detail and Ratios 17 1For the year ended December 31, 2016, Divested businesses and Lag elimination includes adjustments related to the financial impact of converting MetLife’s Japan operations to calendar year end reporting without retrospective application of this change to prior periods.
Slide 18: Expense Detail and Ratios (Continued)
Expense Detail and Ratios (Continued) 18
Slide 19: Slide 19