Metlife, Inc. · NYSE:MET
Metlife — Q2 2019 Earnings Presentation
21 slides from Metlife's earnings presentation, Jul 31, 2019
Slide 1: 2Q19 Supplemental Slides
Exhibit 99.3 2Q19 Supplemental Slides John McCallion Chief Financial Officer
Slide 2: Cautionary Statement on Forward-Looking Statements
Cautionary Statement on Forward-Looking Statements This presentation may contain or refer to forward-looking statements. Forward-looking statements give expectations or forecasts of the future using terms such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” “will,” and
Slide 3: Table of Contents
Table of Contents Page Explanatory Note on Non-GAAP Financial Information and 4 Reconciliations............................................................................................ Net Income (Loss) to Adjusted Earnings..…..........………………................ 5 Notable Items….….……………………………………………..
Slide 4: Explanatory Note on Non-GAAP Financial Information and Reconciliations
Explanatory Note on Non-GAAP Financial Information and Reconciliations
Slide 5: 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 6: Explanatory Note on Non-GAAP Financial Information (Continued)
Explanatory Note on Non-GAAP 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 and appli
Slide 7: Explanatory Note on Non-GAAP Financial Information (Continued)
Explanatory Note on Non-GAAP 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 related to N
Slide 8: Explanatory Note on Non-GAAP Financial Information (Continued)
Explanatory Note on Non-GAAP Financial Information (Continued) The following additional information is relevant to an understanding of MetLife’s performance results: • MetLife uses a measure of free cash flow to facilitate an understanding of its ability to generate cash for reinvestment into its bu
Slide 9: Reconciliations
Reconciliations yl MetLife
Slide 10: Reconciliation of Net Income (Loss) to Adjusted Earnings
Reconciliation of Net Income (Loss) Available to MetLife, Inc.'s Common Shareholders to Adjusted Earnings Available to Common Shareholders 2Q19 2Q18 Earnings Per Earnings Per Weighted Weighted Average Average Common Common Share Share Diluted1 Diluted1 (In millions, except per share data) Net Income
Slide 11: Reconciliation to Adjusted Earnings, Excluding Total Notable Items
Reconciliation to Adjusted Earnings Available to Common Shareholders, Excluding Total Notable Items 2Q19 Retirement and Group Income Property & Latin MetLife Corporate U.S.1 Benefits1 Solutions1 Casualty1 Asia America EMEA Holdings1 & Other1 (In millions) Adjusted earnings available to common shareh
Slide 12: Expense Detail and Ratios
Expense Detail and Ratios (In millions, except ratio data) 2015 2016 2017 2018 Q1 2019 Q2 2019 Reconciliation of Capitalization of DAC to Capitalization of DAC, as reported on an adjusted basis Capitalization of DAC $ (3,319) $ (3,152) $ (3,002) $ (3,254) $ (812) $ (837) Less: Divested businesses an
Slide 13: Premiums, Fees and Other Revenues
Premiums, Fees and Other Revenues (In millions) 2015 2016 2017 2018 Q1 2019 Q2 2019 Total Company - Premiums, Fees and Other Revenues Premiums, fees and other revenues $ 43,900 $ 44,370 $ 45,843 $ 51,222 $ 11,264 $ 12,019 Less: Unearned revenue adjustments 7 30 12 (7) — 20 Less: GMIB fees 97 124 125
Slide 14: Net Income (Loss) to Adjusted Earnings
Net Income (Loss) to Adjusted Earnings ($ in millions) – Post-tax 2Q19 Net Income (Loss) $1,684 Less: Net Investment Gains (Losses)1 8 Net Derivative Gains (Losses) 572 Investment Hedge Adjustments (93) Other (122) Adjusted Earnings $1,319 1 Net investment gains (losses) includes a $140 million post
Slide 15: Notable Items
Notable Items Post-tax 2Q19 Per Share $ in millions Impact1 Adjusted Earnings $1,319 $1.38 Less Notable Items: Expense Initiative Costs (70) (0.07) Adjusted Earnings, ex. Total Notable Items $1,389 $1.46 1 The per share data for each notable item is calculated on a standalone basis and may not sum t
Slide 16: Adjusted Earnings ex. Total Notable Items by Segment
Adjusted Earnings ex. Total Notable Items by Segment ($ in millions) – Post-tax % % Change 1 2Q19 2Q18 Change (Constant Rate) Highlights Group Benefits $311 $261 19% + Expense Margins; + Volume Growth + Underwriting Margins; + Volume Growth; Retirement and Income Solutions 351 347 1% - Investment Ma
Slide 17: Variable Investment Income (VII)
Variable Investment Income (VII) ($ in millions) - Pre-tax $508 $334 $280 $268 $237 $176 $174 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 1H19 $200 - $250 Quarterly VII Target Range 8
Slide 18: Steady Progress Toward Achieving Expense Targets; Direct Expense Ratio
Steady Progress Toward Achieving Expense Targets; 1H19 Aided by Favorable Items Direct Expense Ratio 14.3% -140bps 13.3% 13.3% 12.9% 12.3% 12.1% 2015 2016 2017 2018 1Q19 2Q19 Note: Direct expense ratio, excluding total notable items related to direct expenses and PRT. See Explanatory Note for non-GA
Slide 19: Estimated Impact from Low Interest Rates
Estimated Impact from Low Interest Rates • Adjusted earnings impact from interest rate stress scenario1 largely unchanged • Free cash flow target2 holds at 1.5% to 4.5% 10-YR U.S. Treasury • Hypothetical impact if long-term interest rate assumption changes from 4.25%3: Assumption Change Impact to Ne
Slide 20: Cash & Capital
Cash & Capital • Holding Companies Cash & Liquid Assets1 $5.4B $4.5B $4.2B $3.0B $3.2B $3.0B to $4.0B Cash Buffer 2Q18 3Q18 4Q18 1Q19 2Q19 • 2018 Combined U.S. Risk Based Capital Ratio2 of 402%; above 360% target • Japan Solvency Margin Ratio of 890% at 3/31/19 1 At quarter-end. 2 NAIC basis. 11
Slide 21: MetLife - Navigating life together
iy MetLife Navigating life together