Metlife, Inc. · NYSE:MET
Metlife — Q3 2022 Earnings Presentation
23 slides from Metlife's earnings presentation, November 2022
Slide 1: 3Q22 Supplemental Slides
Exhibit 99.3 1 3Q22 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.
Slide 2: Table of contents
Table of contents Topic Page No. Net income (loss) to adjusted earnings 3 Actuarial assumption review & other insurance adjustments 4 Adjusted earnings, ex. total notable items, by segment 5 Variable investment income (VII) 6 Direct expense ratio 8 Value of new business (VNB) 9 Cash & capital 10 App
Slide 3: Net income (loss) to adjusted earnings
Net income (loss) to adjusted earnings 3Q22 (post-tax) $ in millions $ per share1 Net Income (Loss) $331 $0.41 Less: Net Investment Gains (Losses) (327) (0.41) Net Derivative Gains (Losses)2 (106) (0.13) Investment Hedge Adjustments (199) (0.25) Actuarial Assumption Review2,3 20 0.02 Other2 (23) (0.
Slide 4: 3Q22 actuarial assumption review & other insurance adjustments
3Q22 actuarial assumption review & other insurance adjustments Impact Highlights Adjusted Non-Adjusted • MLH: Unfavorable impacts in Annuities ($ in millions - post-tax) Net Income Earnings Earnings partially offset by positive impacts in Life – Annuities: Lowered variable annuity RIS1 $91 — $91 ann
Slide 5: Adjusted earnings, ex. total notable items, by segment
Adjusted earnings, ex. total notable items, by segment % Change Key Drivers1 ($ in millions - post-tax) 3Q22 3Q21 % Change (Constant Rate) Favorable Unfavorable Underwriting Margins; Expense Margins; Group Benefits $399 $111 259% Volume Growth Investment Margins Investment Margins; Retirement and In
Slide 6: 3Q22 VII driven by negative private equity returns
3Q22 VII driven by negative private equity returns1 ($ in millions - pre-tax) $1,789 $1,269 $1,185 $389 $0 ($53) ($53) 3Q21 4Q21 1Q22 2Q22 3Q22 Private Equity Other 1 Quarterly VII range of $450 million - $500 million, based on full year 2022 guidance range of $1.8 - $2.0 billion. 6
Slide 7: VII by segment
VII by segment ($ in millions - post-tax1) 3Q21 4Q21 1Q22 2Q22 3Q22 Group Benefits $17 $17 $12 $7 $(1) Retirement and Income Solutions 449 324 277 75 (35) U.S. 466 341 289 82 (36) Asia 373 307 288 101 (18) Latin America 22 17 16 16 — EMEA — — — — — MetLife Holdings 487 266 208 85 (21) Corporate & Ot
Slide 8: 3Q22 direct expense ratio of 12.3% in line with target
3Q22 direct expense ratio1 of 12.3% in line with target 12.9% 12.3% 12.3% Target 11.9% 11.7% 11.1% 3Q21 4Q21 1Q22 2Q22 3Q22 1 Direct expense ratio, excluding total notable items related to direct expenses and pension risk transfers. 8
Slide 9: Value of new business
Value of new business1 ($ in billions) $3.8 $3.8 $3.1 $3.2 $2.8 $2.1 $1.8 $1.9 $1.9 $1.3 2017 2018 2019 2020 2021 Capital Deployed Value of New Business Internal Rate of Return 14% 15% 15% 17% 17% Payback Period 7 Years 7 Years 7 Years 6 Years 6 Years 1 Excludes MetLife Holdings; Value of New Busine
Slide 10: Cash & capital
Cash & capital Holding Company Cash1 Capital ($ in billions) • Share repurchases of ~ $0.7 billion in 3Q22 – $0.2 billion shares repurchased in October 2022 $5.4 • Expected total U.S. Statutory Adjusted Capital2 of $5.1 $5.2 $18.7 billion at 9/30/22, down 2% sequentially $4.5 $4.2 • Japan Solvency M
Slide 11: Appendix
Appendix Wi MetLife
Slide 12: Group Benefits underwriting impacted by COVID-19 mortality
Group Benefits underwriting impacted by COVID-19 mortality Group Life Mortality Ratio1,2 3Q22 Highlights Ratio (as reported) Ratio ex. COVID-19 • COVID-19 life claims remain low 110.0% 106.2% 106.3% 105.0% 103.8% • Minimal non-COVID-19 excess mortality 100.0% 95.0% 90.0% 86.0% 85-90% 85.8% target ra
Slide 13: Cautionary Statement on Forward-Looking Statements
Cautionary Statement on Forward-Looking Statements The forward-looking statements in this presentation, using words such as “anticipate,” “assume,” “believe,” “continue,” “could,” “estimate,” “expect,” “if,” “intend,” “likely,” “may,” “plan,” “potential,” “project,” “should,” “will,” and “would,” ar
Slide 14: 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 15: Explanatory Note on Non-GAAP and Other Financial Information (Continued)
Explanatory Note on Non-GAAP and Other Financial Information (Continued) The following non-GAAP financial measures should not be viewed as substitutes for the most directly comparable financial measures calculated in accordance with GAAP: Non-GAAP financial measures: Comparable GAAP financial measur
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) 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 re
Slide 18: 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 19: 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 3Q22 3Q21 Earnings Per Earnings Per Weighted Weighted Average Average Common Common Share Share Diluted1 Diluted1 (In millions, except per share data) Net Income
Slide 20: Reconciliation to Adjusted Earnings, Excluding Total Notable Items
Reconciliation to Adjusted Earnings Available to Common Shareholders, Excluding Total Notable Items 3Q22 Retirement Group & Income Latin MetLife Corporate U.S.1 Benefits1 Solutions1 Asia America EMEA Holdings1 & Other1 (In millions) Adjusted earnings available to common shareholders $ 744 $ 399 $ 34
Slide 21: Expense Detail and Ratios
Expense Detail and Ratios (In millions, except ratio data) 3Q21 4Q21 1Q22 2Q22 3Q22 Reconciliation of Capitalization of DAC to Adjusted Capitalization of DAC Capitalization of DAC $ (635) $ (666) $ (650) $ (622) $ (615) Less: Divested businesses (15) (15) (11) — — Adjusted capitalization of DAC $ (6
Slide 22: Premiums, Fees and Other Revenues
Premiums, Fees and Other Revenues 3Q21 4Q21 1Q22 2Q22 3Q22 Total Company - Premiums, Fees and Other Revenues (In millions) Premiums, fees and other revenues $ 11,639 $ 15,178 $ 12,849 $ 13,853 $ 19,579 Less: Unearned revenue adjustments 46 13 (8) (11) (9) Less: GMIB fees 25 24 23 22 21 Less: TSA fee
Slide 23: MetLife - Navigating life together
iy’ MetLife Navigating life together Wi MetLife