Metlife, Inc. · NYSE:MET
Metlife — Q3 2021 Earnings Presentation
22 slides from Metlife's earnings presentation, Nov 3, 2021
Slide 1: 3Q21 Supplemental Slides
3Q21 Supplemental Slides1 John McCallion Chief Financial Officer Exhibit 99.3 1 These slides highlight information in MetLife, Inc.'s earnings release, quarterly financial supplement and other prior public disclosures.
Slide 2: Table of contents
2 Table of contents Topic Page No. Net income (loss) to adjusted earnings 3 Actuarial assumption review 4 Adjusted earnings, ex. notable items, by segment 5 Group Benefits mortality 6 Variable investment income (VII) 7 Direct expense ratio 9 Value of new business 10 Cash & capital 11 Appendix 12
Slide 3: Net income (loss) to adjusted earnings
3 Net income (loss) to adjusted earnings 3Q21 (post-tax) $ in millions $ per share1 Net Income (Loss) $1,521 $1.77 Less: Net Investment Gains (Losses) (66) (0.08) Net Derivative Gains (Losses) (172) (0.20) Investment Hedge Adjustments (180) (0.21) Actuarial Assumption Review (76) (0.09) Other (47) (
Slide 4: 3Q21 Actuarial Assumption Review Impact by Segment
4 ($ in millions - post-tax) Adjusted Earnings Non-Adjusted Earnings Net Income Asia ($79) — ($79) Latin America (2) — (2) EMEA (6) 4 (2) MetLife Holdings (53) (80) (133) Total ($140) ($76) ($216) Total per share1 ($0.16) ($0.09) ($0.25) 3Q21 Actuarial Assumption Review Impact by Segment Highlights
Slide 5: Adjusted earnings, ex. notable items, by segment
5 ($ in millions - post-tax) 3Q21 3Q20 % Change % Change (Constant Rate) Highlights1 Group Benefits $111 $392 (72%) - Underwriting Margins; + Volume Growth; + Expense Margins Retirement and Income Solutions 784 490 60% + Investment Margins; + Underwriting Margins; + Volume Growth Property & Casualty
Slide 6: Group Benefits underwriting impacted by COVID-19 mortality
6 Group Benefits underwriting impacted by COVID-19 mortality 1 Results are derived from insurance and non-administrative services-only contracts. 2 Excludes certain experience-rated contracts and includes accidental death and dismemberment. 3 COVID-19 reported deaths. 4 Includes claims that appear t
Slide 7: 3Q21 VII driven by strong private equity returns
7 $652 $778 $1,390 $1,202 $1,789 3Q20 4Q20 1Q21 2Q21 3Q21 1 Quarterly VII range of $300 million - $350 million, based on full year 2021 guidance range of $1.2 - $1.4 billion. 3Q21 VII driven by strong private equity returns ($ in millions - pre-tax) Private Equity Other Top end of quarterly range1
Slide 8: VII by segment
8 ($ in millions - post-tax1) 1Q21 2Q21 3Q21 Group Benefits $11 $14 $17 Retirement and Income Solutions 390 351 449 U.S. 401 365 466 Asia 273 218 373 Latin America 17 22 22 EMEA — — — MetLife Holdings 381 301 487 Corporate & Other 26 44 65 Total Variable Investment Income $1,098 $950 $1,413 1 Assume
Slide 9: Favorable 3Q21 direct expense ratio driven by adjusted PFO growth
9 11.4% 12.3% 12.0% 11.0% 11.4% 11.1% 3Q20 4Q20 2020 1Q21 2Q21 3Q21 1 Direct expense ratio, excluding total notable items related to direct expenses and pension risk transfers (PRT). 12.3% Target Favorable 3Q21 direct expense ratio1 driven by adjusted PFO growth and ongoing discipline
Slide 10: Value of new business
10 Value of new business1 $2.9 $3.1 $3.8 $3.8 $3.2 $1.0 $1.3 $2.1 $1.8 $1.9 Capital Deployed Value of New Business 2016 2017 2018 2019 2020 ($ in billions) IRR Payback Period 15% 7 Years 15% 7 Years 17% 6 Years 14% 7 Years 14% 7 Years 1 Excludes the MetLife Holdings segment; Value of New Business (V
Slide 11: Cash & capital
11 Holding Company Cash1 $7.8 $4.5 $6.5 $5.1 3Q20 4Q20 1Q21 2Q21 3Q21 Cash & capital 1 Includes cash and liquid assets at MetLife, Inc. and other holding companies at quarter-end. 2 Includes MetLife, Inc.'s principal U.S. insurance subsidiaries, excluding American Life Insurance Company and Metropol
Slide 12: Appendix
Appendix i! MetLife
Slide 13: Cautionary Statement on Forward-Looking Statements
13 Cautionary Statement on Forward-Looking Statements The forward-looking statements in this presentation, which contain words such as "anticipate,” “assume,” “believe,” “continue,” “could,” “estimate,” “expect,” “if,” “intend,” “likely,” “may,” “plan,” “potential,” “project,” “should,” “will,” and
Slide 14: Explanatory Note on Non-GAAP and Other Financial Information
14 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) net income (loss); (i) net income (loss) available to MetLife, Inc.’s c
Slide 15: Explanatory Note on Non-GAAP and Other Financial Information (constant currency)
15 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 applied to the comparable prior period. Reconciliations of these
Slide 16: Explanatory Note on Non-GAAP and Other Financial Information (Continued)
16 Explanatory Note on Non-GAAP and Other 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
Slide 17: Explanatory Note on Non-GAAP and Other Financial Information (Continued)
17 Explanatory Note on Non-GAAP and Other Financial Information (Continued) Statistical sales information: • U.S.: ◦ Group Benefits: calculated using 10% of single premium deposits and 100% of annualized full-year premiums and fees from recurring premium policy sales of all products. ◦ Retirement an
Slide 18: Reconciliation of Net Income to Adjusted Earnings Available to Common Shareholders
18 Reconciliation of Net Income (Loss) Available to MetLife, Inc.'s Common Shareholders to Adjusted Earnings Available to Common Shareholders 3Q21 3Q20 Earnings Per Weighted Average Common Share Diluted1 Earnings Per Weighted Average Common Share Diluted1 (In millions, except per share data) Net Inc
Slide 19: Reconciliation to Adjusted Earnings, Excluding Total Notable Items
19 Reconciliation to Adjusted Earnings Available to Common Shareholders, Excluding Total Notable Items 3Q21 U.S.1,2 Group Benefits1 Retirement & Income Solutions1 Property & Casualty1,2 Asia Latin America EMEA MetLife Holdings1 Corporate & Other1 (In millions) Adjusted earnings available to common s
Slide 20: Expense Detail and Ratios
20 Expense Detail and Ratios (In millions, except ratio data) 3Q20 4Q20 2020 1Q21 2Q21 3Q21 Reconciliation of Capitalization of DAC to Adjusted Capitalization of DAC Capitalization of DAC $ (764) $ (804) $ (3,013) $ (775) $ (642) $ (635) Less: Divested businesses — — (5) (89) — (15) Adjusted capital
Slide 21: Premiums, Fees and Other Revenues
21 Premiums, Fees and Other Revenues (In millions) 3Q20 4Q20 2020 1Q21 2Q21 3Q21 Total Company - Premiums, Fees and Other Revenues Premiums, fees and other revenues $ 11,887 $ 15,772 $ 49,486 $ 12,349 $ 11,218 $ 11,639 Less: Unearned revenue adjustments 2 8 33 — 12 46 Less: GMIB fees 26 25 102 25 24
Slide 22: MetLife - Navigating life together
iy’ MetLife Navigating life together i! MetLife