Metlife, Inc. · NYSE:MET
Metlife — Q1 2023 Earnings Presentation
28 slides from Metlife's earnings presentation, May 4, 2023
Slide 1: 1Q23 Supplemental Slides
1 1Q23 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 Adjusted earnings, ex. total notable items, by segment 4 Variable investment income (VII) 5 Investments 7 Direct expense ratio 11 Cash & capital 12 Appendix 13 2
Slide 3: Net income (loss) to adjusted earnings
Net income (loss) to adjusted earnings 1Q23 (post-tax) $ in millions $ per share1 Net Income (Loss) $14 $0.02 Less: Net Investment Gains (Losses) (540) (0.69) Net Derivative Gains (Losses) (71) (0.09) Market Risk Benefit Gains (Losses) (149) (0.19) Investment Hedge Adjustments (209) (0.27) Other (20
Slide 4: Adjusted earnings, ex. total notable items, by segment
Adjusted earnings, ex. total notable items, by segment % Change Key Drivers1 ($ in millions - except per share data) 1Q23 1Q22 % Change (Constant Rate) Favorable Unfavorable Group Benefits $307 $117 162% Underwriting Margins Retirement and Income Solutions 400 546 (27%) Investment Margins U.S. 707 6
Slide 5: 1Q23 VII driven by lower venture capital and real estate returns
1Q23 VII driven by lower venture capital and real estate returns1 ($ in millions - pre-tax) $1,185 $389 $24 $0 ($44) ($53) 1Q22 2Q22 3Q22 4Q22 1Q23 Private Equity Other 1 Quarterly target VII range of $500 million, based on full year 2023 guidance range of ~ $2.0 billion. 5
Slide 6: VII by segment
VII by segment ($ in millions - post-tax1) 1Q22 2Q22 3Q22 4Q22 1Q23 Group Benefits $12 $7 $(1) $3 $— Retirement and Income Solutions 277 75 (35) 5 (3) U.S. 289 82 (36) 8 (3) Asia 288 101 (18) 4 (25) Latin America 16 16 — (3) (2) EMEA — — — — — MetLife Holdings 208 85 (21) 12 2 Corporate & Other 135
Slide 7: Strong recurring income supported by higher interest rates and asset growth
Strong recurring income supported by higher interest rates and asset growth Net Investment Income1 Roll Off vs. Reinvestment ($ in billions) 7% $21.3 5.82% 6% $5.7 $18.2 $17.3 5% $1.5 4.59% $1.2 4% 3.47% 3% $16.1 $15.6 $16.7 2% $5.0 $4.6 $1.2 1% $4.7 $3.8 0% FY2020 FY2021 FY2022 1Q22 1Q23 20 20 21 2
Slide 8: Global investment portfolio: High quality & resilient
Global investment portfolio: High quality & resilient 1Q23 General Account AUM1 Highlights Cash and • Large, diversified global portfolio Other5 Short-Term2 1% Alternatives Real Estate Equity Public Credit3 • Disciplined asset-liability management 5% 3% 4% 20% • Prudent underwriting and risk managem
Slide 9: High quality commercial mortgage portfolio
High quality commercial mortgage portfolio¹ • Diversified geographically and by property type • Concentrated in high-quality assets and in larger, LTV and DSCR Matrix $53.7 Billion3 primary markets LTV >1.2x 1.0-1.2x <1.0x Total • 58% average Loan-to-Value (LTV) and 2.4x average Debt Service Coverag
Slide 10: Office commercial mortgage loan portfolio
Office commercial mortgage loan portfolio Majority of Loans Low LTV and High DSCR 1 • Office CML exposure $21 billion, or 4.9% of GA AUM LTV >1.2x 1.0x-1.2x <1.0x Total <65% 76.4% 1.9% 5.0% 83.3% • High quality portfolio; 89% of portfolio is collateralized 65-75% 11.4% 0.5% 0.5% 12.4% by Class A pro
Slide 11: 1Q23 direct expense ratio of 12.0%, below 12.6% annual target
1Q23 direct expense ratio1 of 12.0%, below 12.6% annual target 13.5% 12.6% 12.4% Annual 12.2% Target 12.0% 11.9% 1Q22 2Q22 3Q22 4Q22 1Q23 1 Direct expense ratio, excluding total notable items related to direct expenses and pension risk transfers (PRT). 11
Slide 12: Cash & capital
Cash & capital Holding Company Cash1 Capital ($ in billions) • Share repurchases of $0.8 billion in 1Q23 – $223 million shares repurchased in April 2023 $5.4 $5.4 • 2022 Combined NAIC Risk-Based Capital ratio2,3 of $5.2 367%, above 360% target $4.5 $4.2 $4.2 • Expected total U.S. Statutory Adjusted
Slide 13: Appendix
Appendix Wi MetLife
Slide 14: GAAP Consolidated Statement of Operations (LDTI Basis)
GAAP Consolidated Statement of Operations (LDTI Basis) FY2022 FY2021 (In millions) Revenues Premiums $ 48,510 $ 41,152 Universal life and investment-type product policy fees 5,225 5,244 Net investment income 15,916 21,395 Other revenues 2,630 2,619 Net investment gains (losses) (1,260) 1,543 Net der
Slide 15: 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 (LDTI Basis) FY2022 FY2021 (In millions) Net Income (loss) available to MetLife, Inc.'s common shareholders $ 5,099 $ 6,654 Adjustments from net income (loss) av
Slide 16: Segment Results - Adjusted Earnings and Adjusted Premiums, Fees and Other Revenues
Segment Results - Adjusted Earnings Available to Common Shareholders and Adjusted Premiums, Fees and Other Revenues (LDTI Basis) FY2022 Retirement Group & Income Latin MetLife Corporate U.S. Benefits Solutions Asia America EMEA Holdings & Other (In millions) Adjusted earnings available to common sha
Slide 17: 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 18: 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 19: 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 20: 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 21: 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 22: 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 23: 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 1Q23 1Q22 Earnings Per Earnings Per Weighted Weighted Average Average Common Common Share Diluted1 Share Diluted1 (In millions, except per share data) Net Income
Slide 24: Reconciliation to Adjusted Earnings, Excluding Total Notable Items
Reconciliation to Adjusted Earnings Available to Common Shareholders, Excluding Total Notable Items 1Q23 Retirement Group & Income Latin MetLife Corporate U.S.1 Benefits1 Solutions1 Asia America EMEA Holdings1 & Other1 (In millions) Adjusted earnings available to common shareholders $ 707 $ 307 $ 40
Slide 25: Reconciliation of Net Investment Income to Adjusted Net Investment Income
Reconciliation of Net Investment Income to Adjusted Net Investment Income FY2020 FY2021 FY2022 1Q22 1Q23 (In millions) Net investment income $ 17,117 $ 21,395 $ 15,916 $ 4,284 $ 4,645 Less: Adjustments to net investment income Investment hedge adjustments (815) (895) (976) (215) (264) Unit-linked co
Slide 26: Reconciliation of Premiums, Fees and Other Revenues to Adjusted
Reconciliation of Premiums, Fees and Other Revenues to Adjusted Premiums, Fees and Other Revenues 1Q22 2Q22 3Q22 4Q22 1Q23 (In millions) Premiums, fees and other revenues $ 12,589 $ 13,543 $ 19,335 $ 10,898 $ 11,517 Less: Adjustments to premiums, fees and other revenues: Asymmetrical and non-economi
Slide 27: Expense Detail and Ratios
Expense Detail and Ratios (In millions, except ratio data) 1Q22 2Q22 3Q22 4Q22 1Q23 Reconciliation of Capitalization of DAC to Adjusted Capitalization of DAC Capitalization of DAC $ (652) $ (637) $ (626) $ (699) $ (718) Less: Divested businesses (11) — — — — Adjusted capitalization of DAC $ (641) $
Slide 28: MetLife
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