Metlife, Inc. · NYSE:MET
Metlife — Q1 2019 Earnings Presentation
19 slides from Metlife's earnings presentation, May 1, 2019
Slide 1: 1Q19 Supplemental Slides
Exhibit 99.3 1Q19 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 and Reconciliations
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 yl 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 1Q19 1Q18 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 1Q19 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 Q1 2019 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) $ (812) Less: Divested businesses and lag eliminatio
Slide 12: Premiums, Fees and Other Revenues
Premiums, Fees and Other Revenues (In millions) 2015 2016 2017 2018 Q1 2019 Total Company - Premiums, Fees and Other Revenues Premiums, fees and other revenues $ 43,900 $ 44,370 $ 45,843 $ 51,222 $ 11,264 Less: Unearned revenue adjustments 7 30 12 (7) — Less: GMIB fees 97 124 125 120 27 Less: Settle
Slide 13: Net Income (Loss) to Adjusted Earnings
Net Income (Loss) to Adjusted Earnings ($ in millions) – Post-tax 1Q19 Net Income (Loss) $1,349 Less: Net Investment Gains (Losses) 12 Net Derivative Gains (Losses) 91 Investment Hedge Adjustments (83) Other (95) Adjusted Earnings $1,424 See Explanatory Note on Non-GAAP Financial Information and Rec
Slide 14: Notable Items
Notable Items Post-tax 1Q19 Per Share $ in millions Impact1 Adjusted Earnings $1,424 $1.48 Less Notable Items: Expense Initiative Costs (55) (0.06) Adjusted Earnings, ex. Total Notable Items $1,479 $1.54 1 The per share data for each notable item is calculated on a standalone basis and may not sum t
Slide 15: Adjusted Earnings ex. Total Notable Items by Segment
Adjusted Earnings ex. Total Notable Items by Segment ($ in millions) – Post-tax % % Change 1 1Q19 1Q18 Change (Constant Rate) Highlights + Underwriting Margins; + Expense Margins; Group Benefits $342 $218 57% + Volume Growth Retirement and Income Solutions 285 339 (16%) - Investment Margins; + Volum
Slide 16: Variable Investment Income (VII)
Variable Investment Income (VII) ($ in millions) – Pre-tax $280 $272 $268 $236 $237 $222 $200M - $250M $216 Quarterly VII Range $176 $174 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 7
Slide 17: Direct Expense Ratio
Steady Progress Toward Achieving Expense Targets; 1Q19 Aided by Favorable Items Direct Expense Ratio 14.3% -140bps 13.3% 13.3% 12.9% 12.1% 2015 2016 2017 2018 1Q19 Note: Direct expense ratio, excluding total notable items related to direct expenses and PRT. See Explanatory Note for non-GAAP financia
Slide 18: Cash & Capital
Cash & Capital • Holding Companies Cash & Liquid Assets1 $5.4B $5.1B $4.5B $3.0B $3.2B $3.0 - 4.0B Cash Buffer 1Q18 2Q18 3Q18 4Q18 1Q19 • 2018 Combined U.S. Risk Based Capital Ratio2 of 402%; above 360% target • Japan Solvency Margin Ratio of 803% at 12/31/18 1 2 At quarter-end. NAIC basis. 9
Slide 19: MetLife - Navigating life together
iy MetLife Navigating life together