Slide 1: 3Q23 Supplemental Slides
1 3Q23 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. Financial results in this presentation reflect LDTI accounting, pursuant to Financial Account
Slide 2: Table of contents
Table of contents Topic Page No. Net income (loss) to adjusted earnings 3 Annual actuarial assumption review & other insurance adjustments 4 Adjusted earnings, ex. total notable items, by segment 5 Variable investment income (VII) 6 Investments 8 Direct expense ratio 10 Value of new business 11 Cash
Slide 3: Net income (loss) to adjusted earnings
Net income (loss) to adjusted earnings 3Q23 (post-tax) $ in millions $ per share1 Net Income (Loss) $422 $0.56 Less: Intent to Transfer Mark-to-Market Impact2 (356) (0.47) Net Investment Gains (Losses)2 (376) (0.50) Net Derivative Gains (Losses)3 (948) (1.25) Market Risk Benefit Remeasurement Gains
Slide 4: 3Q23 annual actuarial assumption review and other insurance adjustments
3Q23 annual actuarial assumption review and other insurance adjustments Impact Highlights Adjusted Non-Adjusted • Group Benefits: Favorable experience in ($ in millions - post-tax) Earnings Earnings Net Income individual disability Group Benefits $27 — $27 • RIS: Favorable impacts due to lower near-
Slide 5: Adjusted earnings, ex. total notable items, by segment
Adjusted earnings, ex. total notable items, by segment % Change Key Drivers1 ($ in millions - except per share data) 3Q23 3Q22 % Change (Constant Rate) Favorable Unfavorable Underwriting Margins; Group Benefits $483 $417 16% Volume Growth Investment Margins; Retirement and Income Solutions 409 255 6
Slide 6: 3Q23 VII driven by private equity returns
3Q23 VII driven by private equity returns1 ($ in millions - pre-tax) $221 $179 $24 $0 ($44) ($53) ($53) 3Q22 4Q22 1Q23 2Q23 3Q23 Private Equity Other 1 Quarterly target VII range of $500 million, based on full year 2023 guidance range of ~ $2.0 billion. 6
Slide 7: VII by segment
VII by segment ($ in millions - post-tax1) 3Q22 4Q22 1Q23 2Q23 3Q23 Group Benefits $(1) $3 $— $4 $1 Retirement and Income Solutions (35) 5 (3) 29 35 U.S. (36) 8 (3) 33 36 Asia (18) 4 (25) 84 37 Latin America — (3) (2) 4 5 EMEA — — — — — MetLife Holdings (21) 12 2 41 35 Corporate & Other 33 (1) (7) 1
Slide 8: Strong recurring income supported by higher interest rates and asset growth
Strong recurring income supported by higher interest rates and asset growth Net Investment Income1 Roll Off vs. Reinvestment ($ in billions) 7% 6.26% $21.3 6% $18.2 $17.3 $5.7 5% 4.70% $1.5 $1.2 4.57% 4% 3% $16.1 $16.7 $15.6 2% $5.1 $4.2 $0.2 1% $4.9 0% 20 21 21 22 22 23 23 FY20 FY21 FY22 3Q22 3Q23
Slide 9: High quality commercial mortgage loan (CML) portfolio
High quality commercial mortgage loan (CML) portfolio1 • Concentrated in high-quality assets and in larger, primary markets LTV and DSCR Matrix $52.1 Billion • 63% average Loan-to-Value (LTV) Ratio and 2.3x average Debt LTV >1.2x 1.0-1.2x <1.0x Total Service Coverage Ratio (DSCR) <65% 52.2% 2.8% 2.2
Slide 10: 3Q23 direct expense ratio of 12.3%, below 12.6% annual target
3Q23 direct expense ratio1 of 12.3%, below 12.6% annual target 12.6% Annual 12.5% Target 12.3% 12.2% 12.0% FY22 1Q23 2Q23 3Q23 1 Direct expense ratio, excluding total notable items related to direct expenses and pension risk transfers (PRT). 10
Slide 11: Value of new business
Value of new business1 ($ in billions) $3.8 $3.8 $3.7 $3.2 $2.8 $2.3 $2.1 $1.8 $1.9 $1.9 2018 2019 2020 2021 2022 Capital Deployed Value of New Business Internal Rate of Return 15% 15% 17% 17% 17% Payback Period 7 Years 7 Years 6 Years 6 Years 6 Years 1 Excludes MetLife Holdings; Value of New Busine
Slide 12: Cash & capital
Cash & capital Holding Company Cash1 Capital ($ in billions) • Share repurchases of $0.8 billion in 3Q23 – ~$250 million shares repurchased in October 2023 $5.2 $5.4 • Expected total U.S. Statutory Adjusted Capital2 of $4.9 $17.7 billion at 9/30/23, up 2% from 6/30/23 $4.2 $4.2 • Expected Japan Solv
Slide 13: Appendix
Appendix Wi MetLife
Slide 14: Cautionary Statement on Forward-Looking Statements
Cautionary Statement on Forward-Looking Statements The forward-looking statements in this presentation, using words such as “anticipate,” “are confident,” “assume,” “believe,” “continue,” “could,” “estimate,” “expect,” “grow,” “guidance,” “if,” “intend,” “likely,” “long-term,” “may,” “near-term,” “o
Slide 15: 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 16: 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 17: Explanatory Note on Non-GAAP and Other Financial Information (Continued)
Explanatory Note on Non-GAAP and Other Financial Information (Continued) Asymmetrical and non-economic accounting adjustments are made to the line items indicated in calculating adjusted earnings: • Net investment income includes earned income on derivatives and amortization of premium on derivative
Slide 18: Explanatory Note on Non-GAAP and Other Financial Information (Continued)
Explanatory Note on Non-GAAP and Other Financial Information (Continued) Return on equity and related measures • Total MetLife, Inc.’s common stockholders’ equity, excluding AOCI other than FCTA: Total MetLife, Inc.’s common stockholders’ equity, excluding the net unrealized investment gains (losses
Slide 19: 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 20: Reconciliation of Net Income (Loss) 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 3Q23 3Q22 Earnings Per Earnings Per Weighted Weighted Average Average Common Common Share Diluted1 Share Diluted1 (In millions, except per share data) Net Income
Slide 21: Reconciliation to Adjusted Earnings, Excluding Total Notable Items
Reconciliation to Adjusted Earnings Available to Common Shareholders, Excluding Total Notable Items 3Q23 Retirement Group & Income Latin MetLife Corporate U.S.1 Benefits1 Solutions1 Asia America EMEA Holdings1 & Other1 (In millions) Adjusted earnings available to common shareholders $ 980 $ 510 $ 47
Slide 22: Reconciliation of Net Investment Income to Adjusted Net Investment Income
Reconciliation of Net Investment Income to Adjusted Net Investment Income FY20 FY21 FY22 3Q22 3Q23 (In millions) Net investment income $ 17,117 $ 21,395 $ 15,916 $ 3,585 $ 4,825 Less: Adjustments to net investment income Investment hedge adjustments (815) (895) (976) (252) (232) Unit-linked contract
Slide 23: Reconciliation of Premiums, Fees and Other Revenues to Adjusted
Reconciliation of Premiums, Fees and Other Revenues to Adjusted Premiums, Fees and Other Revenues FY22 1Q23 2Q23 3Q23 (In millions) Premiums, fees and other revenues $ 56,365 $ 11,517 $ 13,587 $ 13,170 Less: Adjustments to premiums, fees and other revenues: Asymmetrical and non-economic accounting —
Slide 24: Expense Detail and Ratios
Expense Detail and Ratios (In millions, except ratio data) FY22 1Q23 2Q23 3Q23 Reconciliation of Capitalization of DAC to Adjusted Capitalization of DAC Capitalization of DAC $ (2,614) $ (718) $ (729) $ (742) Less: Divested businesses (11) — — — Adjusted capitalization of DAC $ (2,603) $ (718) $ (72
Slide 25: MetLife
iy’ MetLife