Metlife, Inc. · NYSE:MET
Metlife — Q2 2021 Earnings Presentation
21 slides from Metlife's earnings presentation, Aug 4, 2021
Slide 1: 2Q21 Supplemental Slides
2Q21 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 Adjusted earnings, ex. notable items, by segment 4 Group Benefits - Life underwriting performance 5 Variable investment income (VII) 6 Direct expense ratio 8 Cash & capital 9 Appendix 10
Slide 3: Net income (loss) to adjusted earnings
3 Net income (loss) to adjusted earnings 2Q21 (post-tax) $ in millions $ per share1 Net Income (Loss) $3,366 $3.83 Less: Net Investment Gains (Losses) 1,268 1.44 Net Derivative Gains (Losses) 333 0.38 Investment Hedge Adjustments (167) (0.19) Other (157) (0.18) Adjusted Earnings $2,089 $2.37 Less No
Slide 4: Adjusted earnings, ex. notable items, by segment
4 ($ in millions - post-tax) 2Q21 2Q20 % Change4 % Change (Constant Rate) Highlights2 Group Benefits $248 $248 —% + Volume Growth; + Versant; - Underwriting Margins Retirement and Income Solutions 654 192 241% + Investment Margins; - Underwriting Margins Property & Casualty3 — 83 U.S. 902 523 72% As
Slide 5: 2Q21 Group Benefits - Life underwriting impacted by excess mortality
5 2Q21 Group Benefits - Life underwriting impacted by excess mortality 2Q21 Group Benefits Life Underwriting Annual Target Ratio1 Underwriting Ratio1 Excess Mortality Impact on Ratio Excess Mortality Impact on Adjusted Earnings Highlights 85-90%2 94.3%2 (~7.2 pts) (~$115 million) Higher claim freque
Slide 6: Variable investment income
6 1 Quarterly VII range of $300 million - $350 million, based on full year 2021 guidance range of $1.2 - $1.4 billion. 2Q20 3Q20 4Q20 1Q21 2Q21 2Q21 VII driven by strong private equity returns ($ in millions - pre-tax) Private Equity Other $0 ($555) $652 $778 $1,390 Top end of quarterly range1 $1,20
Slide 7: VII by segment
7 ($ in millions - post-tax1) 1Q21 2Q21 Group Benefits $11 $14 Retirement and Income Solutions 390 351 U.S. 401 365 Asia 273 218 Latin America 17 22 EMEA — — MetLife Holdings 381 301 Corporate & Other 26 44 Total Variable Investment Income $1,098 $950 1 Post-tax assumes a 21% rate. VII by segment
Slide 8: Direct expense ratio
8 12.4% 11.4% 12.3% 12.0% 11.0% 11.4% 2Q20 3Q20 4Q20 2020 1Q21 2Q21 1 Direct expense ratio, excluding total notable items related to direct expenses and pension risk transfers (PRT). 12.3% Target Favorable 2Q21 direct expense ratio1 driven by Adjusted PFO growth and ongoing discipline
Slide 9: Cash & capital
9 Holding Company Cash1 $6.6 $7.8 $4.5 $6.5 2Q20 3Q20 4Q20 1Q21 2Q21 Cash & capital 1 Includes cash and liquid assets at MetLife, Inc. and other holding companies at quarter-end. 2 Includes MetLife, Inc.'s principal U.S. insurance subsidiaries, excluding American Life Insurance Company. 3 Based on e
Slide 10: Appendix
Appendix i! MetLife
Slide 11: Sensitivity for Hypothetical Long-Term Interest Rate Assumption Change
11 Sensitivity for Hypothetical Long-Term Interest Rate Assumption Change1 • Hypothetical impact if long-term interest rate assumption changes from 2.75%: Assumption Change Impact to Net Income ($ in millions - post-tax) GAAP Loss Recognition +/- 25 bps +/- $60 No 1 Included in the assumptions that
Slide 12: Cautionary Statement on Forward-Looking Statements
12 Cautionary Statement on Forward-Looking Statements The forward-looking statements in this presentation, which contain words such as "assumes," "estimates," "expected," "guidance," "hypothetical," "if," "long-term," "ongoing," "target," and "will," are based on assumptions and expectations that in
Slide 13: Explanatory Note on Non-GAAP and Other Financial Information
13 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 14: Explanatory Note on Non-GAAP (continued)
14 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 15: Explanatory Note on Non-GAAP and Other Financial Information (Continued)
15 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 16: Explanatory Note on Non-GAAP and Other Financial Information (Continued)
16 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 17: Reconciliation of Net Income to Adjusted Earnings
17 Reconciliation of Net Income (Loss) Available to MetLife, Inc.'s Common Shareholders to Adjusted Earnings Available to Common Shareholders 2Q21 2Q20 Earnings Per Weighted Average Common Share Diluted1 Earnings Per Weighted Average Common Share Diluted1 (In millions, except per share data) Net Inc
Slide 18: Reconciliation to Adjusted Earnings, Excluding Total Notable Items
18 Reconciliation to Adjusted Earnings Available to Common Shareholders, Excluding Total Notable Items 2Q21 U.S.1 Group Benefits1 Retirement & Income Solutions1 Property & Casualty1 Asia Latin America EMEA MetLife Holdings1 Corporate & Other1 (In millions) Adjusted earnings available to common share
Slide 19: Expense Detail and Ratios
19 Expense Detail and Ratios (In millions, except ratio data) 2Q20 3Q20 4Q20 2020 1Q21 2Q21 Reconciliation of Capitalization of DAC to Adjusted Capitalization of DAC Capitalization of DAC $ (671) $ (764) $ (804) $ (3,013) $ (775) $ (642) Less: Divested businesses (2) — — (5) (89) — Adjusted capitali
Slide 20: Premiums, Fees and Other Revenues
20 Premiums, Fees and Other Revenues (In millions) 2Q20 3Q20 4Q20 2020 1Q21 2Q21 Total Company - Premiums, Fees and Other Revenues Premiums, fees and other revenues $ 10,491 $ 11,887 $ 15,772 $ 49,486 $ 12,349 $ 11,218 Less: Unearned revenue adjustments 5 2 8 33 — 12 Less: GMIB fees 25 26 25 102 25
Slide 21: MetLife - Navigating life together
iy’ MetLife Navigating life together i! MetLife