Metlife, Inc. · NYSE:MET
Metlife — Q1 2022 Earnings Presentation
20 slides from Metlife's earnings presentation, May 4, 2022
Slide 1: 1Q22 Supplemental Slides
1Q22 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, ex. total notable items, by segment 4 Group Benefits underwriting 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 1Q22 (post-tax) $ in millions $ per share1 Net Income (Loss) $606 $0.73 Less: Net Investment Gains (Losses) (409) (0.49) Net Derivative Gains (Losses) (679) (0.82) Investment Hedge Adjustments (170) (0.20) Other 137 0.16 Adjusted Earnings $1,727 $2.08 1 The p
Slide 4: Adjusted earnings, ex. total notable items, by segment
4 ($ in millions - post-tax) 1Q22 1Q21 % Change % Change (Constant Rate) Key Drivers1 Favorable Unfavorable Group Benefits $112 $93 20% Volume Growth; Underwriting Margins Retirement and Income Solutions 581 691 (16%) Volume Growth Investment Margins U.S. 693 784 (12%) Asia 580 623 (7%) (4%) Volume
Slide 5: Group Benefits underwriting impacted by COVID-19 mortality
5 Group Benefits underwriting impacted by COVID-19 mortality 1 Results are derived from insurance and non-administrative services-only contracts. 2 Excludes certain experience-rated contracts and includes accidental death and dismemberment. 3 COVID-19 reported deaths. Group Benefits Adjusted Earning
Slide 6: 1Q22 VII driven by private equity returns
6 $1,390 $1,202 $1,789 $1,269 $1,185 1Q21 2Q21 3Q21 4Q21 1Q22 1Q22 VII driven by private equity returns ($ in millions - pre-tax) Private Equity Other 1 Quarterly VII range of $450 million - $500 million, based on full year 2022 guidance range of $1.8 - $2.0 billion.
Slide 7: VII by segment
7 ($ in millions - post-tax1) 1Q21 2Q21 3Q21 4Q21 1Q22 Group Benefits $11 $14 $17 $17 $12 Retirement and Income Solutions 390 351 449 324 277 U.S. 401 365 466 341 289 Asia 273 218 373 307 288 Latin America 17 22 22 17 16 EMEA — — — — — MetLife Holdings 381 301 487 266 208 Corporate & Other 26 44 65
Slide 8: Direct expense ratio of 11.7%, below 12.3% target
8 11.0% 11.4% 11.1% 12.9% 11.7% 1Q21 2Q21 3Q21 4Q21 1Q22 1 Direct expense ratio, excluding total notable items related to direct expenses and pension risk transfers (PRT). 12.3% Target 1Q22 direct expense ratio1 of 11.7%, below 12.3% target
Slide 9: Cash & capital
9 Holding Company Cash1 $6.5 $5.1 $5.4 $4.2 1Q21 2Q21 3Q21 4Q21 1Q22 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 MetLife ca
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, which contain words such as “anticipate,” “assume,” “believe,” “continue,” “could,” “estimate,” “expect,” “if,” “intend,” “likely,” “may,” “plan,” “potential,” “project,” “should,” “will,” and
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 (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 to Adjusted Earnings Available to Common Shareholders
16 Reconciliation of Net Income (Loss) Available to MetLife, Inc.'s Common Shareholders to Adjusted Earnings Available to Common Shareholders 1Q22 1Q21 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 1Q22 U.S.1 Group Benefits1 Retirement & Income Solutions1 Asia Latin America EMEA MetLife Holdings1 Corporate & Other1 (In millions) Adjusted earnings available to common shareholders $ 693 $ 112 $
Slide 18: Expense Detail and Ratios
18 Expense Detail and Ratios (In millions, except ratio data) 1Q21 2Q21 3Q21 4Q21 1Q22 Reconciliation of Capitalization of DAC to Adjusted Capitalization of DAC Capitalization of DAC $ (775) $ (642) $ (635) $ (666) $ (650) Less: Divested businesses (89) — (15) (15) (11) Adjusted capitalization of DA
Slide 19: Premiums, Fees and Other Revenues
19 Premiums, Fees and Other Revenues 1Q21 2Q21 3Q21 4Q21 1Q22 Total Company - Premiums, Fees and Other Revenues Premiums, fees and other revenues $ 12,349 $ 11,218 $ 11,639 $ 15,178 $ 12,849 Less: Unearned revenue adjustments — 12 46 13 (8) Less: GMIB fees 25 24 25 24 23 Less: TSA fees 35 60 73 53 4
Slide 20: MetLife - Navigating life together
iy’ MetLife Navigating life together i! MetLife