Metlife, Inc. · NYSE:MET
Metlife — Investor Presentation (December 2017)
39 slides from Metlife's investor presentation, Dec 14, 2017
Slide 1: MetLife 2017 Outlook Call
MetLife 2017 Outlook Call December 15, 2017 Exhibit 99.1
Slide 2: Introduction
Introduction John A. Hall Senior Vice President, Investor Relations
Slide 3: Cautionary Statement on Forward-Looking Statements and Non-GAAP Financial Information
Cautionary Statement on Forward-Looking Statements and Non-GAAP Financial Information
Slide 4: Safe Harbor Statement
Safe Harbor Statement This presentation may contain or incorporate by reference information that includes or is based upon forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements give expectations or forecasts of future events
Slide 5: Safe Harbor Statement (Continued)
Safe Harbor Statement (Continued) counterparties to perform; (23) differences between actual claims experience and underwriting and reserving assumptions; (24) ineffectiveness of risk management policies and procedures; (25) catastrophe losses; (26) increasing cost and limited market capacity for st
Slide 6: Explanatory Note on Non-GAAP Financial Information
Explanatory Note on Non-GAAP Financial Information In this presentation, MetLife, Inc. presents certain measures of its performance that are not calculated in accordance with accounting principles generally accepted in the United States of America (“GAAP”). MetLife believes that these non-GAAP finan
Slide 7: Operating earnings and related measures
Operating earnings and related measures: operating earnings; operating earnings available to common shareholders; and operating earnings available to common shareholders, adjusted for total notable items These measures are used by management to evaluate performance and allocate resources. Consistent
Slide 8: 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 operating expenses: Policyholder benefits and claims and policyholder dividends excludes: (i) changes in the policyholder dividend obl
Slide 9: 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: Statistical sales information for U.S. and MetLife Holdings: calculated (i) for life sales using the LIMRA definition of sales for cor
Slide 10: Explanatory Note on Non-GAAP Financial Information (Continued)
Explanatory Note on Non-GAAP Financial Information (Continued) MetLife uses a measure of free cash flow to facilitate an understanding of its ability to generate cash for reinvestment into its businesses or use in non-mandatory capital actions. MetLife defines free cash flow as the sum of cash avail
Slide 11: Agenda
Agenda Overview Steven A. Kandarian, Chairman, President & Chief Executive Officer U.S. Michel Khalaf, President, U.S. Business and Europe, Middle East and Africa 3. Asia Steven J. Goulart, Executive Vice President, Chief Investment Officer & Interim Head of Asia 4. Latin America Oscar Schmidt, Exec
Slide 12: Overview
Overview Steven A. Kandarian Chairman, President & Chief Executive Officer
Slide 13: Overview
Aid multi-year forecasting Deliver on expense commitment Maintaining competitive return on equity and cash flow targets Robust capital management Regulatory headwinds subsiding 6 Overview
Slide 14: U.S.
U.S. Michel Khalaf President U.S. Business and Europe, Middle East and Africa
Slide 15: Group Benefits Operating Earnings Analysis
Group Benefits Operating Earnings Analysis ($ in millions) 4Q16 – 3Q17 Reported Operating Earnings $812 Reported notable items1: Variable investment income ($3) Baseline Operating Earnings $809 1 Cumulative impact, as reported in 3Q17 quarterly financial supplement. Reported notable items represent
Slide 16: Group Benefits
Group Benefits 1 One to three years. 2 LTM = 4Q16 to 3Q17. 3 Relates primarily to one year forward. See Cautionary Statement on Forward-Looking Statements and Non-GAAP Financial Information for non-GAAP financial information, definitions and/or reconciliations. 9 Operating premiums, fees and other r
Slide 17: Retirement and Income Solutions Operating Earnings Analysis
Retirement and Income Solutions Operating Earnings Analysis ($ in millions) 4Q16 – 3Q17 Reported Operating Earnings $1,101 Reported notable items1: Variable investment income ($17) Baseline Operating Earnings $1,084 1 Cumulative impact, as reported in 3Q17 quarterly financial supplement. Reported no
Slide 18: Retirement and Income Solutions (RIS)
11 Retirement and Income Solutions (RIS) 1 Includes future policy benefits, policyholder account liabilities, and separate account liabilities, as well as the notional amount of synthetic guaranteed interest contracts not recorded on MetLife’s balance sheet. 2Average annualized general account sprea
Slide 19: Property & Casualty Operating Earnings Analysis
($ in millions) 4Q16 – 3Q17 Reported Operating Earnings $151 Reported notable items1: Variable investment income ($2) Catastrophe experience and prior year development, net $55 Baseline Operating Earnings $204 Property & Casualty Operating Earnings Analysis 1 Cumulative impact, as reported in 3Q17 q
Slide 20: Property & Casualty
Property & Casualty 13 1 Includes catastrophes. See Cautionary Statement on Forward-Looking Statements and Non-GAAP Financial Information for non-GAAP financial information, definitions and/or reconciliations. Operating PFO growth of 1-2% in 2018 and 5-7% in 2019-2020 Overall P&C combined ratio1 of
Slide 21: Asia
Asia Steven J. Goulart Executive Vice President, Chief Investment Officer & Interim Head of Asia
Slide 22: Asia Operating Earnings Analysis
($ in millions) 4Q16 – 3Q17 Reported Operating Earnings $1,273 Reported notable items1: Variable investment income $3 Actuarial assumption review and other insurance adjustments ($8) Baseline Operating Earnings $1,268 Asia Operating Earnings Analysis 1 Cumulative impact, as reported in 3Q17 quarterl
Slide 23: Asia
Mid single-digit sales growth in 2018, moving higher in the outer years; robust double-digit growth in emerging markets Low single-digit operating PFO growth on a constant currency basis Low single-digit operating earnings growth in 2018, moving to high single- to low double digit growth on a consta
Slide 24: Latin America
Latin America Oscar Schmidt Executive Vice President, Latin America
Slide 25: Latin America Operating Earnings Analysis
Latin America Operating Earnings Analysis 1 Cumulative impact, as reported in 3Q17 quarterly financial supplement. Reported notable items represent a positive (negative) impact to baseline operating earnings. See Cautionary Statement on Forward-Looking Statements and Non-GAAP Financial Information f
Slide 26: Latin America
Latin America 19 1 The ProVida encaje is capital required by Superintendencia de Pensiones. The encaje is invested in the same manner as the total pension fund, and the income is included in operating earnings. See Cautionary Statement on Forward-Looking Statements and Non-GAAP Financial Information
Slide 27: EMEA
EMEA Michel Khalaf President U.S. Business and Europe, Middle East and Africa
Slide 28: EMEA Operating Earnings Analysis
EMEA Operating Earnings Analysis 1 Cumulative impact, as reported in 3Q17 quarterly financial supplement. Reported notable items represent a positive (negative) impact to baseline operating earnings. See Cautionary Statement on Forward-Looking Statements and Non-GAAP Financial Information for non-GA
Slide 29: EMEA
Almost 80% of operating earnings growth from Employee Benefits and Accident & Health EMEA 1 Based on 2018 plan. See Cautionary Statement on Forward-Looking Statements and Non-GAAP Financial Information for non-GAAP financial information, definitions and/or reconciliations. 22 Sales growth in mid-sin
Slide 30: MetLife Holdings
MetLife Holdings Marty Lippert Executive Vice President, Head of Global Technology and Operations
Slide 31: MetLife Holdings Operating Earnings Analysis
MetLife Holdings Operating Earnings Analysis 1 Cumulative impact, as reported in 3Q17 quarterly financial supplement. Reported notable items represent a positive (negative) impact to baseline operating earnings. See Cautionary Statement on Forward-Looking Statements and Non-GAAP Financial Informatio
Slide 32: MetLife Holdings
MetLife Holdings 1 Excludes notable items related to actuarial assumption review and other insurance adjustments. Including these items, and as reported, the ratio was 52.8%. 2 Quarter in which market impact occurs. See Cautionary Statement on Forward-Looking Statements and Non-GAAP Financial Inform
Slide 33: Financial Update
Financial Update John C. R. Hele Chief Financial Officer
Slide 34: 2015 – 2016 New Business Driving Value Under Mean Reversion Scenario
2015 – 2016 New Business Driving Value Under Mean Reversion Scenario New Business Embedded Value is the present value of future profits from new sales. Excludes MetLife Holdings. Segments: U.S., Asia, Latin America and EMEA Capital Deployed ($B) Value Added ($B) Internal Rate of Return (IRR) Payback
Slide 35: 91% of 2016 Capital Deployed Above Hurdle Rate
91% of 2016 Capital Deployed Above Hurdle Rate Under Mean Reversion Scenario 2016 New Business Segments: U.S., Asia, Latin America and EMEA IRR above hurdle rate (4+%) IRR above hurdle rate (0-4%) IRR below hurdle rate Business Units Excludes MetLife Holdings. Capital Deployed IRR Above Hurdle Rate
Slide 36: Financial Update
Financial Update 1 Approximately $275 million in operating earnings and approximately $55 million in non-operating earnings. 2Effective tax rate does not include potential impact from tax reform. 3 Versus plan rates as included in the Appendix. 4 50 basis points increase from plan rates for longer t
Slide 37: Appendix
Appendix Wil MetLife
Slide 38: Interest Rates: Plan vs. Stress Scenario
Interest Rates: Plan vs. Stress Scenario 12/31/2017 12/31/2018 12/31/2019 12/31/2020 Plan Stress Plan Stress Plan Stress Plan Stress 3-Month LIBOR1 1.53% 0.65% 1.89% 0.65% 2.05% 0.65% 2.19% 0.65% 2-Year Treasury1 1.60% 0.58% 1.90% 0.58% 2.23% 0.58% 2.46% 0.58% 10-Year Treasury1 2.40% 1.50% 2.60% 1.5
Slide 39: MetLife – Navigating life together
iy MetLife Navigating life together