Metlife, Inc. · NYSE:MET
Metlife — Q1 2021 Earnings Presentation
20 slides from Metlife's earnings presentation, May 5, 2021
Slide 1: 1Q21 Supplemental Slides
1Q21 Supplemental Slides1 John McCallion Chief Financial Officer Exhibit 99.3 1 These slides highlight information in MetLife, Inc.'s earnings release, quarterly financial supplement and other prior public disclosures.
Slide 2: Table of contents
2 Table of contents Topic Page No. Net Income (Loss) to Adjusted Earnings 3 Adjusted Earnings by Segment 4 Group Benefits Underwriting Performance 5 Variable Investment Income (VII) 6 Direct Expense Ratio 8 Cash & Capital 9 Appendix 10
Slide 3: Net income (loss) to adjusted earnings
3 Net income (loss) to adjusted earnings 1Q21 (post-tax) $ in millions $ per share1 Net Income (Loss) $290 $0.33 Less: Net Investment Gains (Losses) 106 0.12 Net Derivative Gains (Losses) (1,766) (1.98) Investment Hedge Adjustments (174) (0.20) Other 159 0.18 Adjusted Earnings $1,965 $2.20 1 The per
Slide 4: Adjusted earnings by segment
4 ($ in millions - post-tax) 1Q21 1Q20 % Change % Change (Constant Rate) Highlights 2 Group Benefits $93 $312 (70%) - Underwriting Margins; + Volume Growth Retirement and Income Solutions 691 359 92% + Investment Margins; + Underwriting Margins; + Volume Growth Property & Casualty — 109 1Q21 results
Slide 5: 1Q21 Group Benefits underwriting impacted by COVID-19
5 1Q21 Group Benefits underwriting impacted by COVID-19 1Q21 Group Benefits Underwriting Annual Target Ratios1 Underwriting Ratios1 COVID-19 Impact on Ratios COVID-19 Impact on Adjusted Earnings Highlights Group Life 85-90%2 106.3%2 (~17 pts) (~$280M) Higher claim frequency and increased severity Gr
Slide 6: Quarterly VII range of $300 million - $350 million
6 1 Quarterly VII range of $300 million - $350 million, based on full year 2021 guidance range of $1.2 - $1.4 billion. 1Q21 VII driven by strong private equity returns 1Q20 2Q20 3Q20 4Q20 1Q21 ($ in millions - pre-tax) Private Equity Other $0 $351 ($555) $652 $778 $1,390 Top end of quarterly range1
Slide 7: 1Q21 VII by segment
7 ($ in millions - post-tax) 1Q211 Group Benefits $11 Retirement and Income Solutions 390 U.S. 401 Asia 273 Latin America 17 EMEA — MetLife Holdings 381 Corporate & Other 26 Total Variable Investment Income $1,098 1 Post-tax assumes a 21% rate. 1Q21 VII by segment
Slide 8: Direct expense ratio
8 12.0% 12.4% 11.4% 12.3% 12.0% 11.0% 1Q20 2Q20 3Q20 4Q20 2020 1Q21 1 Direct expense ratio, excluding total notable items related to direct expenses and pension risk transfers (PRT). 12.3% Target Favorable 1Q21 direct expense ratio1 driven by Adjusted PFO growth and ongoing discipline
Slide 9: Cash & capital
9 Holding Company Cash1 $5.3B $6.6B $7.8B $4.5B 1Q20 2Q20 3Q20 4Q20 1Q21 Cash & capital 1 Includes cash and liquid assets at MetLife, Inc. and other holding companies at quarter-end. 2 Includes MetLife, Inc.'s principal U.S. insurance subsidiaries, excluding American Life Insurance Company. 3 MetLif
Slide 10: Appendix
Appendix i! MetLife
Slide 11: Cautionary Statement on Forward-Looking Statements
11 Cautionary Statement on Forward-Looking Statements The forward-looking statements in this presentation, such as “assumes,” “expected,” “guidance,” and “target,” are based on assumptions and expectations that involve risks and uncertainties, including the “Risk Factors” MetLife, Inc. describes in
Slide 12: Explanatory Note on Non-GAAP and Other Financial Information
12 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 c
Slide 13: Explanatory Note on Non-GAAP and Other Financial Information (constant currency)
13 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 applied to the comparable prior period. Reconciliations of these
Slide 14: Explanatory Note on Non-GAAP and Other Financial Information (Continued)
14 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
Slide 15: Explanatory Note on Non-GAAP and Other Financial Information (Continued)
15 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 an
Slide 16: Reconciliation of Net Income (Loss) to Adjusted Earnings
16 Reconciliation of Net Income (Loss) Available to MetLife, Inc.'s Common Shareholders to Adjusted Earnings Available to Common Shareholders 1Q21 1Q20 Earnings Per Weighted Average Common Share Diluted1 Earnings Per Weighted Average Common Share Diluted1 (In millions, except per share data) Net Inc
Slide 17: Reconciliation to Adjusted Earnings, Excluding Total Notable Items
17 Reconciliation to Adjusted Earnings Available to Common Shareholders, Excluding Total Notable Items 1Q21 U.S.1 Group Benefits1 Retirement and Income Solutions1 Property & Casualty1 Asia Latin America EMEA MetLife Holdings1 Corporate & Other1 (In millions) Adjusted earnings available to common sha
Slide 18: Expense Detail and Ratios
18 Expense Detail and Ratios (In millions, except ratio data) 1Q20 2Q20 3Q20 4Q20 2020 1Q21 Reconciliation of Capitalization of DAC to Adjusted Capitalization of DAC Capitalization of DAC $ (774) $ (671) $ (764) $ (804) $ (3,013) $ (775) Less: Divested businesses (3) (2) — — (5) (89) Adjusted capita
Slide 19: Premiums, Fees and Other Revenues
19 Premiums, Fees and Other Revenues (In millions) 1Q20 2Q20 3Q20 4Q20 2020 1Q21 Total Company - Premiums, Fees and Other Revenues Premiums, fees and other revenues $ 11,336 $ 10,491 $ 11,887 $ 15,772 $ 49,486 $ 12,349 Less: Unearned revenue adjustments 18 5 2 8 33 — Less: GMIB fees 26 25 26 25 102
Slide 20: MetLife - Navigating life together
iy’ MetLife Navigating life together i! MetLife