Metlife, Inc. · NYSE:MET
Metlife — Q3 2018 Earnings Presentation
22 slides from Metlife's earnings presentation, Nov 1, 2018
Slide 1: 3Q18 Supplemental Slides
Exhibit 99.3 3Q18 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 Long Term Care (LTC)..…..........………
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
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 on Non-GAAP Financial Information (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 on Non-GAAP Financial Information (Continued)
Explanatory Note on Non-GAAP Financial Information (Continued) The following additional adjustments are made to expenses, in the line items indicated, in calculating adjusted expenses: • Policyholder benefits and claims and policyholder dividends excludes: (i) changes in the policyholder dividend ob
Slide 7: Reconciliations
Reconciliations hl Metlife
Slide 8: Reconciliation of Net Income (Loss) Available to Common Shareholders to Adjusted Earnings
Reconciliation of Net Income (Loss) Available to Common Shareholders to Adjusted Earnings Available to Common Shareholders 3Q18 3Q17 Earnings Per Earnings Per Weighted Weighted Average Average Common Common Share Diluted1 Share Diluted1 (In millions, except per share data) Net Income (loss) availabl
Slide 9: Reconciliation to Adjusted Earnings, Excluding Total Notable Items
Reconciliation to Adjusted Earnings Available to Common Shareholders, Excluding Total Notable Items 3Q18 Retirement and Group Income Property & Latin MetLife Corporate U.S. Benefits Solutions Casualty Asia America EMEA Holdings & Other (In millions) Adjusted earnings available to common shareholders
Slide 10: Expense Detail and Ratios
Expense Detail and Ratios (In millions, except ratio data) 2015 2016 2017 Reconciliation of Capitalization of DAC to Capitalization of DAC, as reported on an adjusted basis Capitalization of DAC $ (3,319) $ (3,152) $ (3,002) Less: Divested businesses and lag elimination1 120 (1) 34 Capitalization of
Slide 11: Expense Detail and Ratios (Continued)
Expense Detail and Ratios (Continued) (In millions, except ratio data) 1Q18 2Q18 3Q18 Reconciliation of Capitalization of DAC to Capitalization of DAC, as reported on an adjusted basis Capitalization of DAC $ (796) $ (834) $ (810) Less: Divested businesses and lag elimination (1) — — Capitalization
Slide 12: Net Income (Loss) to Adjusted Earnings
Net Income (Loss) to Adjusted Earnings ($ in millions) – Post-tax 3Q18 Net Income (Loss)1 $880 Less: Net Investment Gains (Losses) 92 Net Derivative Gains (Losses) 2 (299) Investment Hedge Adjustments (99) Actuarial Assumption Review 2 (230) Other 2 40 Adjusted Earnings1 $1,376 1 Available to common
Slide 13: Long Term Care: Overview
Long Term Care: Overview • No GAAP reserve unlocking from Actuarial Assumption Review • GAAP loss recognition testing (LRT) margin of $2.1 billion1 • Statutory reserves are $2.6 billion higher than GAAP1 • Generates annual premium of ~$750 million • Achieved +7% average rate increase on entire LTC b
Slide 14: Actuarial Assumption Review and Other Insurance Adjustments
Actuarial Assumption Review and Other Insurance Adjustments ($ in millions) – Post-tax Non- Adjusted Adjusted Net Highlights Earnings Earnings Income Enhancements to the valuation modeling Group Benefits $37 $0 $37 system for Individual Disability Lapse assumption updates in Japan and Asia (86) (84)
Slide 15: Notable Items
Notable Items Post-tax 3Q18 $ in Per Share millions Impact2 Adjusted Earnings1 $1,376 $1.38 Less Notable Items: Actuarial Assumption Review and Other Insurance Adjustments (68) (0.07) Expense Initiative Costs (88) (0.09) Adjusted Earnings1, ex. Total Notable Items $1,532 $1.53 1 Available to common
Slide 16: Adjusted Earnings ex. Total Notable Items by Segment
Adjusted Earnings ex. Total Notable Items by Segment ($ in millions) – Post-tax % % Change 3Q18 3Q17 Change (Constant Rate) Highlights + Underwriting Margins; + Volume Growth; Group Benefits $333 $241 38% + Expense Margins; + Taxes + Underwriting Margins; + Volume Growth; Retirement and Income Solut
Slide 17: Direct Expense Ratio
Direct Expense Ratio 15% 14.3% 14% 13.3% 13.3% 13.1% 13.0% 13.0% 13% 12% 2015 2016 2017 1Q18 2Q18 3Q18 Note: Direct expense ratio excludes total notable items related to direct expenses and PRT. See Explanatory Note for non-GAAP financial information, definitions and/or reconciliations. 9
Slide 18: Appendix
Appendix hl Metlife
Slide 19: Long Term Care Book of Business Profile
Long Term Care Book of Business Profile $ in millions, except daily benefits Individual Group Total Balance Sheet GAAP Reserves $7,225 $4,880 $12,105 Statutory Reserves $9,006 $5,704 $14,710 In-Force Policies In-Force 209,044 270,865 479,909 Paid-up Policies (included in policies in-force) 11,265 1,
Slide 20: Long Term Care: Key Assumptions
Long Term Care: Key Assumptions Base Reserves Testing GAAP STAT GAAP LRT STAT AAT1 Morbidity Improvement Yes for 20% of block None 50 bps per year None Mortality Improvement Yes for 25% of block None 1% per year None Expected Future Claim Based primarily on Based primarily on Based on company Based
Slide 21: Long Term Care: Loss Recognition Testing Assumptions and Sensitivities
Long Term Care: Loss Recognition Testing Assumptions and Sensitivities GAAP LRT Margin Sensitivities Estimated Margin Impact Current Assumption Assumption Change Decrease / Increase ($ in millions) Remove improvement: -50 bps Morbidity Improvement 50 bps per year Increase improvement: +50 bps ($1,60
Slide 22: MetLife - Navigating life together
iy’ MetLife Navigating life together