Metlife, Inc. · NYSE:MET
Metlife — KBW Insurance Conference 2011
39 slides from Metlife's conference presentation, Sep 7, 2011
Slide 1: KBW Insurance Conference September 2011
KBW Insurance Conference September 2 0 1 1 Bill Toppeta President, International MetLife, Inc.
Slide 2: Safe Harbor
Safe Harbor These materials may contain or incorporate by reference information that includes or is based upon forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements give expectations or forecasts of future events. These stat
Slide 3: Explanatory Note on Non-GAAP Financial Information
Explanatory Note on Non-GAAP Financial Information All references in this presentation to net income (loss), net income (loss) per share, operating earnings, operating earnings per share and book value per share should be read as net income (loss) available to MetLife, Inc.'s common shareholders, ne
Slide 4: Adjustments made to GAAP expenses in calculating operating expenses
The following adjustments are made to GAAP expenses, in the line items indicated, in calculating operating expenses: Policyholder benefits and claims and policyholder dividends exclude: (i) changes in the policyholder dividend obligation related to net investment gains (losses) and net derivative ga
Slide 5: Agenda
Agenda Leading global life insurer Growth engine Unique combination of capabilities Strong footprint combining markets of today and markets of tomorrow Japan - strong growth in a challenging environment Key markets driving growth 5 strategic growth priorities Advantageous combination of businesses t
Slide 6: MetLife leads the International Life market by premiums among multinational companies
GWP Life1 $M 84,962 75,663 72,832 67,712 N/A2 41,146 37,954 Market capitalization3 $35.5B $46.9B $37.4B $28.2B $24.3B $15.9B $25.7B # of countries present4 61 70 30 68 37 26 14 # of countries - top 5 share5 23 16 9 7 1 6 6 Total customers (M)4 90 76 40 >70 50 53 25 Assets Total1 $M 730,906 828,235 9
Slide 7: International is now a significant contributor to MetLife's performance
International is now a significant contributor to MetLife's performance 2001 2005 2010 Q2 2011 0.04 0.11 0.16 0.34 2001 2005 2010 Q2 2011 0.04 0.07 0.2 0.38 35%+ 30%+ International's Operating Earnings as a % of MetLife International's Premiums, Fees & Other Revenues as a % of MetLife 1 As reported,
Slide 8: Our starting point: a unique position
Our starting point: a unique position Geographic breadth Presence in all major regions of the world with access to over 90% of the Life insurance market Leadership positions Top 5 position in almost half of the countries in which we compete1 Established core countries, products and channels Four cor
Slide 9: Leveraging Japan to build for the future
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr East 0.31 0.69 90 20.4 West 30.6 38.6 34.6 31.6 North 45.9 46.9 45 43.9 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr East 0.45 0.55 90 20.4 West 30.6 38.6 34.6 31.6 North 45.9 46.9 45 43.9 Japan OIR 3rd Qtr 4th Qtr East 0.48 0.52 90 20.4 West 30.6 38.6 34.6 31.6 North 45.9 46.9 45
Slide 10: OIR Q2 2011: Geographic diversification
Asia Europe Middle East+India+Pakistan+Nepal+Bangladesh LatAm East 0.19 0.32 0.08 0.41 Asia Europe Middle East+India+Pakistan+Nepal+Bangladesh LatAm East 0.16 0.24 0.09 0.51 OIR Q2 2011: Geographic diversification Europe 32% Latin America 41% Middle East 8% Asia 19% Europe 24% Latin America 51% Midd
Slide 11: Presence in 10 of the World's Largest Life Insurance Markets
Presence in 8 of the World's Largest Life Insurance Markets Country Life Premiums United States 506 Japan 441 United Kingdom 214 France 192 China 143 Italy 122 Germany 115 South Korea 71 India 68 Taiwan1 64 Source: Swiss Re Sigma. 1 Sale of MetLife Taiwan Insurance Co. Ltd. (MetLife Taiwan) is pendi
Slide 12: Japan: Opportunities in Key Segments
Japan: Opportunities in Key Segments $441B life market, 2nd largest in the world Population 127 M Over 65: 23% Some segments growing rapidly Traditionally dominated by local players Foreign companies gaining share Highly competitive mature market Life premiums expected growth <1% MetLife Alico strat
Slide 13: One of the industry leaders in productivity and profitability
One of the industry leaders in productivity and profitability Metric Career Agency Career Agency Independent Agency Independent Agency Metric 2008 (pre-crisis) 2011 (12 months ended May 2011) 2008 (pre-crisis) 2011 (12 months ended May 2011) # Agents / Agencies1 4,662 4,914 10,141 10,508 Activity Ra
Slide 14: Strong growth in a challenging environment
Strong growth in a challenging environment 5% Career Agents (¥M) 14% Ind. Agents 36% Direct Marketing +100% Bancassurance Sales1: New Business By Channel Q2 2010 to Q2 2011 Q1-09 Q2-09 Q3-09 Q4-09 Q1-10 Q2-10 Q3-10 Q4-10 Q1-11 Q2-11 Career Agency 9380 8606 11547 10606 9445 10446 10512 11319 9899 109
Slide 15: Latin America: MetLife is #1
Latin America: MetLife is #1 $9B life market, growing at 8% Population 100M+, underpenetrated Already #1 market position Second biggest contributor to MetLife's international earnings Mexico $5B life market, growing at 13% Already #1 market position Chile $9.5B life market, growing at 20% Population
Slide 16: MetLife: The Latin America Life Insurer
16 3 1 Based on premium income information derived from AXCO Global Statistics as of August 25, 2011. Countries included: Argentina, Chile, Colombia, Costa Rica, Mexico, Panama, Trinidad, and Uruguay. Brazil market size 2010: SUSEP excluding VGBL- Vida Gerador de Beneficio Livre (private pension sav
Slide 17: MetLife Mexico... we stand alone
MetLife Mexico... we stand alone Increasing penetration from 56% to 66-70% Increasing average premiums of current & future policies Opening new payroll deduction slots in additional government agencies Penetrate into "contract employees" segment Expand into pension sales for government employees Goa
Slide 18: Europe: East & West
Europe: East & West $9B life market, growing at 11% Professionalizing agency Expanding products and distribution Poland $1B life market, growing at 9% Population 100M+, underpenetrated Already #1 market position Russia Combination of growth niches in mature markets and countries growing at a faster
Slide 19: MetLife is a Top Life Player in Central and Eastern Europe
3 MetLife is a Top Life Player in Central and Eastern Europe PZU Bank Competes in Top CEE Players Life GWP ($ million)1 u Europa Ceska Pojistovna2 Ethiniki Allianz ING 1 Based on premium income information derived from AXCO Global Statistics available as of Aug 25, 2011. Countries included are Polan
Slide 20: Poland: Significant Contributor to Earnings
Poland: Significant Contributor to Earnings Recruiting experienced agents and managers supporting the expansion Career agency productivity increase New strategic partnerships with medium sized independent agencies to build exclusive high- performance relationships Up-selling our Critical illness and
Slide 21: Russia: Setting the pace in the industry
Russia: Setting the pace in the industry Strengthening our training and management skills towards a productivity increase Deepening our presence in Moscow Increasing Accident & Health riders attachment while complementing our core offers through up-selling/cross- selling Accident & Health and Critic
Slide 22: MEASA: Attractive Demographics, Strong Growth
MEASA: Attractive Demographics, Strong Growth $1B life market, growing at 6% Population 76M, underpenetrated Strong bancassurance channel Growing pension system Turkey MetLife enjoys a unique position with top 3 rankings in most countries Rapidly growing insurance markets Wealthy markets in some cou
Slide 23: MetLife is the largest life insurer in the Middle East
3 MetLife is the largest life insurer in the Middle East u u Basak Groupama Emeklilik Anadolu Hayat Emeklilik AXA Aviva UAE3 , Lebanon, Turkey2, Egypt, Bahrain, Kuwait, Jordan, Oman, Saudi Arabia, Qatar Turkey Turkey Turkey Egypt (Misr) Allianz Garanti CIL Oman Insurance Group Egypt, Turkey, Lebanon
Slide 24: Turkey: An expansion story
Turkey: An expansion story Acquisition of DenizEmeklilik Exclusive 15 yr bancassurance distribution agreement with DenizBank (4 million clients, 500 branches) covering life, pensions and personal accident insurance products and solutions Pension license- current industry: 2.3 million voluntary parti
Slide 25: Asia Pacific: Established in Korea, Growing in China
Asia Pacific: Established in Korea, Growing in China $71B Life market, growing at 8% Aging population opportunity Accident & Health needs South Korea $143B life market, growing at 23% Population 1B+, underpenetrated Access to nearly 40% of Life Insurance market China A mixing of emerging, developing
Slide 26: South Korea: Growth through continuous innovation
South Korea: Growth through continuous innovation Currently considerable sales volume as riders to life products Significant opportunity to increase A&H sales to savings and annuity customers where A&H is under-penetrated Key initiatives fostering Accident & Health growth: Cross-sell and/or bundle s
Slide 27: 5 strategic growth priorities
5 strategic growth priorities Maximizing Face-to-Face Distribution Leveraging Accident & Health Globalizing Corporate Relationships Expanding Direct-to- Consumer Becoming Retirement Solutions Provider of Choice
Slide 28: Advantageous combination to manage risk while growing
33 Advantageous combination to manage risk while growing By geography (currency), product type and distribution channel Increased protection (e.g., Accident & Health) portfolio helps diversify interest rate and equity risks Fee-based mandatory pensions business (e.g., LATAM and CEE) less susceptible
Slide 29: Summary
Summary International is a significant contributor to MetLife's performance Among global peers, MetLife leads the life insurance market Unique mix of strengths positioning us to grow Key markets and 5 growth themes driving our profitable growth Advantageous combination of businesses to manage risk w
Slide 30: MetLife
MetLife
Slide 31: Appendix
MetLife Appendix
Slide 32: Explanatory Note on Non-GAAP Financial Information
32 Explanatory Note on Non-GAAP Financial Information All references in this presentation to net income (loss), net income (loss) per share, operating earnings, operating earnings per share and book value per share should be read as net income (loss) available to MetLife, Inc.'s common shareholders,
Slide 33: Adjustments made to GAAP expenses in calculating operating expenses
33 The following adjustments are made to GAAP expenses, in the line items indicated, in calculating operating expenses: Policyholder benefits and claims and policyholder dividends exclude: (i) changes in the policyholder dividend obligation related to net investment gains (losses) and net derivative
Slide 34: Definitions: Sales
34 Definitions Sales In this presentation, we sometimes refer to sales activity for various products. These sales statistics do not correspond to revenues under GAAP, but are used as relevant measures of business activity. As used in this presentation sales are calculated as follows: For single prem
Slide 35: Reconciliation of Net Income to Operating Earnings - Total Company and International
35 Reconciliation of Net Income (Loss) Available to MetLife, Inc.'s Common Shareholders to Operating Earnings Available to Common Shareholders - Total Company and International 1As reported, unadjusted for modifications to operating earnings definition and subsequent events, including acquisitions,
Slide 36: Reconciliation of Premiums, Fees & Other Revenues - Total Company and International
36 Reconciliation of Premiums, Fees & Other Revenues - Total Company and International 1As reported, unadjusted for modifications to operating earnings definition and subsequent events, including acquisitions, dispositions and discontinued operations. 2 Beginning in the first quarter of 2011, the Co
Slide 37: Reconciliation of Net Income to Operating Earnings and Premiums, Fees & Other Revenues
37 Reconciliation of Net Income (Loss) Available to MetLife, Inc.'s Common Shareholders to Operating Earnings Available to Common Shareholders and Reconciliation of Premiums, Fees & Other Revenues - Total Company / International
Slide 38: Reconciliation of Net Income to Operating Earnings - International and Other International Regions
38 Reconciliation of Net Income (Loss) Available to MetLife, Inc.'s Common Shareholders to Operating Earnings Available to Common Shareholders - International and Other International Regions
Slide 39: MetLife
MetLife