Metlife, Inc. · NYSE:MET
Metlife — Q3 2022 Earnings Presentation
23 slides from Metlife's earnings presentation, Nov 2, 2022
Slide 1: 3Q22 Supplemental Slides
3Q22 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 Actuarial assumption review & other insurance adjustments 4 Adjusted earnings, ex. total notable items, by segment 5 Variable investment income (VII) 6 Direct expense ratio 8 Value of new business (VNB) 9 Cash & capital 10 A
Slide 3: Net income (loss) to adjusted earnings
3 Net income (loss) to adjusted earnings 3Q22 (post-tax) $ in millions $ per share1 Net Income (Loss) $331 $0.41 Less: Net Investment Gains (Losses) (327) (0.41) Net Derivative Gains (Losses)2 (106) (0.13) Investment Hedge Adjustments (199) (0.25) Actuarial Assumption Review2,3 20 0.02 Other2 (23) (
Slide 4: 3Q22 actuarial assumption review & other insurance adjustments
4 3Q22 actuarial assumption review & other insurance adjustments ($ in millions - post-tax) Adjusted Earnings Non-Adjusted Earnings Net Income RIS1 $91 — $91 Asia 23 5 28 Latin America 7 — 7 EMEA 4 (2) 2 MetLife Holdings (91) 17 (74) Total $34 $20 $54 Total per Share2 $0.04 $0.02 $0.07 Impact Highli
Slide 5: Adjusted earnings, ex. total notable items, by segment
5 ($ in millions - post-tax) 3Q22 3Q21 % Change % Change (Constant Rate) Key Drivers1 Favorable Unfavorable Group Benefits $399 $111 259% Underwriting Margins; Volume Growth Expense Margins; Investment Margins Retirement and Income Solutions 254 784 (68%) Volume Growth Investment Margins; Underwriti
Slide 6: VII driven by negative private equity returns
6 $1,789 $1,269 $1,185 $389 ($53) 3Q21 4Q21 1Q22 2Q22 3Q22 3Q22 VII driven by negative private equity returns1 ($ 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. ($53) $0
Slide 7: VII by segment
7 ($ in millions - post-tax1) 3Q21 4Q21 1Q22 2Q22 3Q22 Group Benefits $17 $17 $12 $7 $(1) Retirement and Income Solutions 449 324 277 75 (35) U.S. 466 341 289 82 (36) Asia 373 307 288 101 (18) Latin America 22 17 16 16 — EMEA — — — — — MetLife Holdings 487 266 208 85 (21) Corporate & Other 65 72 135
Slide 8: 3Q22 direct expense ratio in line with target
8 11.1% 12.9% 11.7% 11.9% 12.3% 3Q21 4Q21 1Q22 2Q22 3Q22 1 Direct expense ratio, excluding total notable items related to direct expenses and pension risk transfers. 12.3% Target 3Q22 direct expense ratio1 of 12.3% in line with target
Slide 9: Value of new business
9 Value of new business1 $3.1 $3.8 $3.8 $3.2 $2.8 $1.3 $2.1 $1.8 $1.9 $1.9 Capital Deployed Value of New Business 2017 2018 2019 2020 2021 ($ in billions) Internal Rate of Return Payback Period 15% 7 Years 15% 7 Years 17% 6 Years 14% 7 Years 1 Excludes MetLife Holdings; Value of New Business is the
Slide 10: Cash & capital
10 Holding Company Cash1 $5.1 $5.4 $4.2 $4.5 $5.2 3Q21 4Q21 1Q22 2Q22 3Q22 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 for bot
Slide 11: Appendix
Appendix i! MetLife
Slide 12: Group Benefits underwriting impacted by COVID-19 mortality
12 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. 4 Includes an IBNR release rel
Slide 13: Cautionary Statement on Forward-Looking Statements
13 Cautionary Statement on Forward-Looking Statements The forward-looking statements in this presentation, using words such as “anticipate,” “assume,” “believe,” “continue,” “could,” “estimate,” “expect,” “if,” “intend,” “likely,” “may,” “plan,” “potential,” “project,” “should,” “will,” and “would,”
Slide 14: Explanatory Note on Non-GAAP and Other Financial Information
14 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 15: Explanatory Note on Non-GAAP and Other Financial Information (Continued)
15 Explanatory Note on Non-GAAP and Other Financial Information (Continued) The following non-GAAP financial measures should not be viewed as substitutes for the most directly comparable financial measures calculated in accordance with GAAP: Non-GAAP financial measures: Comparable GAAP financial mea
Slide 16: Any of these financial measures shown on a constant currency basis reflect the impact
16 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 17: Explanatory Note on Non-GAAP and Other Financial Information (Continued)
17 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 18: Explanatory Note on Non-GAAP and Other Financial Information (Continued)
18 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 19: Reconciliation of Net Income (Loss) to Adjusted Earnings Available to Common Shareholders
19 Reconciliation of Net Income (Loss) Available to MetLife, Inc.'s Common Shareholders to Adjusted Earnings Available to Common Shareholders 3Q22 3Q21 Earnings Per Weighted Average Common Share Diluted1 Earnings Per Weighted Average Common Share Diluted1 (In millions, except per share data) Net Inc
Slide 20: Reconciliation to Adjusted Earnings, Excluding Total Notable Items
20 Reconciliation to Adjusted Earnings Available to Common Shareholders, Excluding Total Notable Items 3Q22 U.S.1 Group Benefits1 Retirement & Income Solutions1 Asia Latin America EMEA MetLife Holdings1 Corporate & Other1 (In millions) Adjusted earnings available to common shareholders $ 744 $ 399 $
Slide 21: Expense Detail and Ratios
21 Expense Detail and Ratios (In millions, except ratio data) 3Q21 4Q21 1Q22 2Q22 3Q22 Reconciliation of Capitalization of DAC to Adjusted Capitalization of DAC Capitalization of DAC $ (635) $ (666) $ (650) $ (622) $ (615) Less: Divested businesses (15) (15) (11) — — Adjusted capitalization of DAC $
Slide 22: Premiums, Fees and Other Revenues
22 Premiums, Fees and Other Revenues 3Q21 4Q21 1Q22 2Q22 3Q22 Total Company - Premiums, Fees and Other Revenues (In millions) Premiums, fees and other revenues $ 11,639 $ 15,178 $ 12,849 $ 13,853 $ 19,579 Less: Unearned revenue adjustments 46 13 (8) (11) (9) Less: GMIB fees 25 24 23 22 21 Less: TSA
Slide 23: MetLife - Navigating life together
iy’ MetLife Navigating life together i! MetLife