Metlife, Inc. · NYSE:MET
Metlife — Q2 2022 Earnings Presentation
23 slides from Metlife's earnings presentation, Aug 7, 2022
Slide 1: 2Q22 Supplemental Slides
Exhibit 99.3 1 2Q22 Supplemental Slides John McCallion Chief Financial Officer 1 These slides highlight information in MetLife, Inc.'s earnings release, quarterly financial supplement and other prior public disclosures.
Slide 2: Table of contents
Table of contents Topic Page No. Net income (loss) to adjusted earnings 3 Adjusted earnings, ex. total notable items, by segment 4 Variable investment income (VII) 5 Direct expense ratio 7 Cash & capital 8 Long Duration Targeted Improvements (LDTI) 9 Appendix 10 2
Slide 3: Net income (loss) to adjusted earnings
Net income (loss) to adjusted earnings 2Q22 (post-tax) $ in millions $ per share1 Net Income (Loss) $103 $0.13 Less: Net Investment Gains (Losses) (541) (0.66) Net Derivative Gains (Losses) (944) (1.16) Investment Hedge Adjustments (183) (0.22) Other 145 0.18 Adjusted Earnings $1,626 $2.00 Less Nota
Slide 4: Adjusted earnings, ex. total notable items, by segment
Adjusted earnings, ex. total notable items, by segment % Change Key Drivers1 ($ in millions - post-tax) 2Q22 2Q21 % Change (Constant Rate) Favorable Unfavorable Underwriting Margins; Group Benefits $400 $248 61% Volume Growth Retirement and Income Solutions 388 654 (41%) Volume Growth Investment Mar
Slide 5: 2Q22 VII driven by private equity returns
2Q22 VII driven by private equity returns1 ($ in millions - pre-tax) $1,789 $1,269 $1,202 $1,185 $389 2Q21 3Q21 4Q21 1Q22 2Q22 Private Equity Other 1 Quarterly VII range of $450 million - $500 million, based on full year 2022 guidance range of $1.8 - $2.0 billion. 5
Slide 6: VII by segment
VII by segment ($ in millions - post-tax1) 2Q21 3Q21 4Q21 1Q22 2Q22 Group Benefits $14 $17 $17 $12 $7 Retirement and Income Solutions 351 449 324 277 75 U.S. 365 466 341 289 82 Asia 218 373 307 288 101 Latin America 22 22 17 16 16 EMEA — — — — — MetLife Holdings 301 487 266 208 85 Corporate & Other
Slide 7: 2Q22 direct expense ratio of 11.9%, below 12.3% target
2Q22 direct expense ratio1 of 11.9%, below 12.3% target 12.9% 12.3% Target 11.9% 11.7% 11.4% 11.1% 2Q21 3Q21 4Q21 1Q22 2Q22 1 Direct expense ratio, excluding total notable items related to direct expenses and pension risk transfers (PRT). 7
Slide 8: Cash & capital
Cash & capital Holding Company Cash1 Capital ($ in billions) • Share repurchases of $1.1 billion in 2Q22 $6.5 • Expected total U.S. Statutory Adjusted Capital2 of $19.1 billion at 6/30/22, up 2% sequentially $5.4 $5.1 $4.5 • Japan Solvency Margin ratio3 of 764% at 3/31/22 $4.2 2Q21 3Q21 4Q21 1Q22 2Q
Slide 9: LDTI: Expected initial transition balances
LDTI1: Expected initial transition balances ($ in billions (post-tax) - except per share data2) Balance at Expected Initial Transition Key Drivers December 31, 2020 Balance7 • Market risk benefit adjustment Total Equity3 excluding AOCI4 other than FCTA5 $48.4 $42.9 - $43.9 • Revalued at current rate
Slide 10: Appendix
Appendix Wi MetLife
Slide 11: Group Benefits underwriting impacted by COVID-19 mortality
Group Benefits underwriting impacted by COVID-19 mortality Group Life Mortality Ratio1,2 2Q22 Highlights Ratio (as reported) Ratio ex. COVID-19 • Modest COVID-19 life claims 110.0% 106.2% 106.3% • IBNR release on 1Q'22 COVID-19 Life claims 103.8% 105.0% benefited ratio by ~1.5 points 100.0% • Signif
Slide 12: Cautionary Statement on Forward-Looking Statements
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 “wo
Slide 13: Explanatory Note on Non-GAAP and Other Financial Information
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 comm
Slide 14: Explanatory Note on Non-GAAP and Other Financial Information (Continued)
Explanatory Note on Non-GAAP and Other Financial Information (Continued) The following non-GAAP financial measures should not be viewed as substitutes for the most directly comparable financial measures calculated in accordance with GAAP: Non-GAAP financial measures: Comparable GAAP financial measur
Slide 15: Explanatory Note on Non-GAAP and Other Financial Information (Continued)
Explanatory Note on Non-GAAP and Other 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
Slide 16: Explanatory Note on Non-GAAP and Other Financial Information (Continued)
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 re
Slide 17: Explanatory Note on Non-GAAP and Other Financial Information (Continued)
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 and I
Slide 18: 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 2Q22 2Q21 Earnings Per Earnings Per Weighted Weighted Average Average Common Common Share Share Diluted1 Diluted1 (In millions, except per share data) Net Income
Slide 19: Reconciliation to Adjusted Earnings, Excluding Total Notable Items
Reconciliation to Adjusted Earnings Available to Common Shareholders, Excluding Total Notable Items 2Q22 Retirement Group & Income Latin MetLife Corporate U.S.1 Benefits1 Solutions1 Asia America EMEA Holdings1 & Other1 (In millions) Adjusted earnings available to common shareholders $ 788 $ 400 $ 38
Slide 20: Expense Detail and Ratios
Expense Detail and Ratios (In millions, except ratio data) 2Q21 3Q21 4Q21 1Q22 2Q22 Reconciliation of Capitalization of DAC to Adjusted Capitalization of DAC Capitalization of DAC $ (642) $ (635) $ (666) $ (650) $ (622) Less: Divested businesses — (15) (15) (11) — Adjusted capitalization of DAC $ (6
Slide 21: Premiums, Fees and Other Revenues
Premiums, Fees and Other Revenues 2Q21 3Q21 4Q21 1Q22 2Q22 Total Company - Premiums, Fees and Other Revenues (In millions) Premiums, fees and other revenues $ 11,218 $ 11,639 $ 15,178 $ 12,849 $ 13,853 Less: Unearned revenue adjustments 12 46 13 (8) (11) Less: GMIB fees 24 25 24 23 22 Less: TSA fees
Slide 22: Equity and Book Value
Equity and Book Value December 31, 2020 (In millions, except per share data) Equity Details Total MetLife, Inc.'s stockholders' equity $ 74,558 Less: Preferred stock 4,312 MetLife, Inc.'s common stockholders' equity 70,246 Less: Net unrealized investment gains (losses), net of income tax 23,730 Defi
Slide 23: MetLife: Navigating life together
iy’ MetLife Navigating life together Wi MetLife