Metlife, Inc. · NYSE:MET
Metlife — Investor Presentation (September 2012)
12 slides from Metlife's investor presentation, Sep 6, 2012
Slide 1: Positioned to Deliver Shareholder Value
Global Presence Brand Diversified Products & Distribution Financial Strength Positioned to Deliver Shareholder Value Leadership positions in large established markets Strong and growing presence in high growth markets with favorable demographics and high margins Well established and expanding brand
Slide 2: Expanding ROE in a Challenging Environment
~300 bps of ROE Expansion Expanding ROE in a Challenging Environment Emerging market growth Significant margin improvement, including $600M pre-tax expense saves Shift from market sensitive to protection products improves risk profile and free cash flow Assumes 5% annual appreciation in S&P 500 Inde
Slide 3: Refocus U.S. Business and Grow Profitably
Refocus U.S. Business and Grow Profitably Manage mature businesses for cash flow Shift mix away from capital intensive products Invest in Voluntary/Worksite and Direct Drive margin improvement
Slide 4: Retail, Contributing to the Strategy
2011 ROE > 15% 10 - 15% < 10% Retail Annuity Life Whole Life UL Annuities Term Life VUL Retail, Contributing to the Strategy – Traditional: Whole & Term – Universal – Variable Universal – Fixed – Immediate – Variable See Explanatory Note on Non-GAAP Financial Information slide.
Slide 5: VA's - Manage Risk, Profitability & Growth
VA’s – Manage Risk, Profitability & Growth Well diversified block – Over time - never stopped writing – By channel Proven risk management practices – Product design – Hedging 2012 Variable Annuity sales $17.5B to $18.5B – Plan developed based on self funding levels – Approximately 35% reduction from
Slide 6: Variable Annuities In-Force Block - an Attractive Profile
Guaranteed Minimum Income Benefits 77% Not in the Money 23% In the Money Variable Annuities In-Force Block – an Attractive Profile Net amount at risk = $3.3B Over one-third of our VA block has no living benefits Upside potential of market and interest rate improvements At annuitization; as of June 3
Slide 7: Dollar Cost Averaged over Time
Dollar Cost Averaged over Time Source: S&P 500 year-end close price from Thomson One; 2012 price reflects close as of June 30, 2012.
Slide 8: MetLife U.S. Variable Annuity Sales
MetLife U.S. Variable Annuity Sales Lower volatility Floor of income protection Manage sales volumes GMIB MAX – Meeting Customer Needs See Explanatory Note on Non-GAAP Financial Information slide. ($ in Billions) $15.3 $13.9 $15.4 $18.3 $28.4 $17.5 - $18.5 2012P
Slide 9: GMIB MAX - Improved Risk Profile
GMIB MAX – Improved Risk Profile Protected Growth Strategy (“PGS”) funds provide more stable fee base More capital efficient Improved distribution of returns
Slide 10: Return on Investment (ROI) Distribution
Return on Investment (ROI) Distribution GMIB MAX: Distribution of Returns 1. GMIB MAX (5% Rollup) launched on Jan 2, 2012. The pricing results were based on market conditions as of June 30, 2012. Incidences of ROIs reflected in the chart above are the results of roughly 1,000 stochastic scenarios ob
Slide 11: Retail: Manage Margins and Capital
Leading franchise Rebalance risk and growth Improve profitability and operating ROE Retail: Manage Margins and Capital See Explanatory Note on Non-GAAP Financial Information slide.
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