Metlife, Inc. · NYSE:MET
Metlife — Investor Day (June 2014)
101 slides from Metlife's investor day presentation, Jun 10, 2014
Slide 1: Cautionary Statement on Forward-Looking Statements and Non-GAAP Financial Information
Cautionary Statement on Forward-Looking Statements and Non-GAAP Financial Information This presentation may contain or incorporate by reference forward-looking statements. Forward-looking statements give expectations or forecasts of future events and use words such as “anticipate,” “estimate,” “expe
Slide 2: Agenda
Agenda Overview – Focus on Capital Efficient Growth Steven A. Kandarian Chairman, President & CEO Americas William J. Wheeler President, Americas Todd Katz EVP, Group, Voluntary & Worksite Benefits Oscar Schmidt EVP, Latin America First Q&A Break Asia Chris Townsend President, Asia EMEA Michel Khala
Slide 3: MetLife
MetLife
Slide 4: Investor Day 2014: Steven A. Kandarian
Steven A. Kandarian Chairman, President & Chief Executive Officer June 10, 2014 INVESTOR DAY 2014
Slide 5: Strategy Unveiled in May 2012
Drive Toward Customer Centricity and a Global Brand Grow Emerging Markets Build Global Employee Benefits Business Refocus the U.S. Business Strategy Unveiled in May 2012 G LOBAL * W ORLD -C LASS * S CALE
Slide 6: Key Commitments to Deliver by 2016
Key Commitments to Deliver by 2016 Shift from market-sensitive to protection products to improve risk profile Grow emerging markets to 20% of operating earnings Achieve $1 billion in gross expense savings Increase operating return on equity (ROE) to 12-14%; drive down the cost of equity capital (COE
Slide 7: Shift Toward Protection-Oriented Products
GVWB sales for 2012 exclude a single $550 million sale from winning the TRICARE Dental business. Total GVWB sales with TRICARE were $1.7 billion. See Appendix for non-GAAP financial information, definitions, and/or reconciliations. $0.0 $0.2 $0.4 $0.6 $0.8 $1.0 $1.2 $1.4 $1.6 $1.8 $0 $5 $10 $15 $20
Slide 8: Operating Earnings Growth from Emerging Markets
$7 $17 $(1) 16.1% 7.1% NA $514 $583 $590 $213 $222 $287 Operating Earnings Growth from Emerging Markets $894 EMEA $812 $726 Asia Latin America Operating Earnings ($ in millions) Excludes Western Europe. Excludes U.S. sponsored direct (as reported in Latin America). Excludes Japan, Korea, Hong Kong a
Slide 9: On Track to Achieve $1 Billion of Gross Expense Saves
On Track to Achieve $1 Billion of Gross Expense Saves 2014E $571 $1,000 Target Identified Saves ($ in millions) $830-$860 Approximately half of reinvestment spend on Customer Centricity Improving technology and data analytics Upgrading and redesigning claims processing Reinvestment Highlights $135
Slide 10: Improvement in Operating ROE and Reduction in Risk
$4,654 $5,649 $6,261 Improvement in Operating ROE and Reduction in Risk Operating ROE 10.0% 11.2% 11.9% May 2012 May 2014 One-year Beta MET S&P Life Peers Operating Earnings ($ in millions) 1.78 1.47 1.53 1.32 Total company results reflect the recently completed disposition of MetLife Assurance Limi
Slide 11: Prudent Capital Management
Prudent Capital Management Used internal resources to acquire ProVida (fee-based, emerging markets business) for $2 billion or 10x earnings Increased annual common stock dividend by 89% since early 2013 Announcing resumption of share repurchase program – Existing $1.3 billion authorization – Plan to
Slide 12: Key Takeaways
Key Takeaways Strong progress toward our 2016 goals Continuing to execute strategy to create value Diversified business with attractive growth profile Managing capital despite regulatory uncertainty
Slide 13: MetLife
MetLife
Slide 14: William J. Wheeler, President Americas
William J. Wheeler President Americas June 10, 2014 INVESTOR DAY 2014
Slide 15: Americas – Key Strategies
Americas – Key Strategies Accelerate growth in Group, Voluntary & Worksite Benefits Expand in Latin America Pursue U.S. pension closeouts Reposition Retail business Build U.S. Direct business
Slide 16: Americas – Corporate Benefit Funding
Americas – Corporate Benefit Funding Estimate potential U.S. pension closeout market at $800 billion U.S. pension closeout market share leader in 2013 with 45% of $3.8 billion market Asset intensive business $1,100 $1,203 $1,295 Operating Earnings ($ in millions) Highlights Mercer S&P 1500 Funded St
Slide 17: Americas – Retail
Americas – Retail See Appendix for non-GAAP financial information, definitions, and/or reconciliations. Major transformational change in Retail Substantial cost reduction De-risked product offerings, positioning for future growth Driving enhancements to advisor productivity $1,335 $2,002 $2,524 Oper
Slide 18: Americas – U.S. Direct Market
Uninsured 37% Life Insurance 63% Americas – U.S. Direct Market 44 million U.S. households do not have life insurance 35 million of insured U.S. households are underinsured Estimated $15 trillion U.S. life insurance gap Life Insurance Coverage Highlights Percentage of U.S. households. Source: LIMRA,
Slide 19: Americas – U.S. Direct Channels
Direct Mail Direct Response Television Digital Call Centers Retail Stores Sponsors Americas – U.S. Direct Channels
Slide 20: Americas – U.S. Direct Product Portfolio
Life Accident Supplemental Health Auto & Home Disability Dental Vision Legal Identity Assistance Americas – U.S. Direct Product Portfolio Broad set of offerings Insurance & Non-insurance Simple design based on segment needs Focus on protection Limited underwriting Highlights
Slide 21: Americas – Direct Response TV
Americas – Direct Response TV Simplified Issue Term Television Advertising “Marlon” The full video is available at http://investor.metlife.com. All other information contained on MetLife’s website is not a part of this presentation.
Slide 22: Americas – Identity Protection
Americas – Identity Protection MetLife Defender “Busy Life” www.metlifedefender.com The full video is available at http://investor.metlife.com. All other information contained on MetLife’s website is not a part of this presentation.
Slide 23: Americas – U.S. Direct Sales
Insurance Sales ($ in millions) Americas – U.S. Direct Sales Invest to grow across products, channels and capabilities Forecast 2014 sales of $130 million Expect 2014 $(40) million post-tax loss Highlights $11 $15 $24 $17 2Q13 3Q13 4Q13 1Q14 Includes U.S. direct to consumer (as reported in Corporate
Slide 24: Americas Key Takeaways
Americas Key Takeaways Upside in Corporate Benefit Funding in pension risk transfer Low single digit growth in Retail Promising opportunity in Direct Mid to high single digit growth in GVWB Low to mid-teen growth in Latin America Overall mid-single digit operating earnings growth over long term Long
Slide 25: MetLife
MetLife
Slide 26: Todd Katz, Group, Voluntary & Worksite Benefits
Todd Katz Executive Vice President Group, Voluntary & Worksite Benefits June 10, 2014 INVESTOR DAY 2014
Slide 27: GVWB Overview
Key Strategies Opportunities and Challenges Long-Term Outlook GVWB Overview Protect and grow Large Market franchise Invest to increase share in the Middle Market Expand P&C business Invest to become a significant Voluntary/ Worksite player Demand for voluntary/non- medical products as responsibility
Slide 28: 2013: GVWB Financial Results
Life 2 49% Non-Medical Health 1 42% P&C 9% Non-Medical Health 47% Life 40% P&C 13% 2013: GVWB Financial Results PFOs by Product Operating Earnings by Product Total PFOs: $16.4B Total Operating Earnings: $1.0B Includes dental, disability, long-term care (LTC), accidental death & dismemberment (AD&D),
Slide 29: 2013: GVWB Sales
Life 25% Non Medical Health 57% P&C 18% - 2013: GVWB Sales Total Sales: $1.3B Sales by Product See Appendix for non-GAAP financial information, definitions and/or reconciliations.
Slide 30: 2013: GVWB PFOs and Sales
Small 11% Middle 42% Large 47% Middle 15% Large 81% 2013: GVWB PFOs and Sales Total PFOs: $16.4B Large Market is defined as 5,000 eligible lives, Middle Market is defined as 100 to 4,999 eligible lives and Small Market is defined as 2 to 99 eligible lives. See Appendix for non-GAAP financial informa
Slide 31: Group Insurance: 2010–2013 CAGR
-20% -15% -10% -5% 0% 5% MetLife A B C D E F G H -10% -5% 0% 5% 10% MetLife A B C D E F G H Group Insurance : 2010 – 2013 CAGR PFOs and operating earnings as provided in companies’ respective statistical supplements. Excludes group medical insurance and P&C. See Appendix for non-GAAP financial infor
Slide 32: GVWB: Statutory to GAAP Ratio
GVWB: Statutory to GAAP Ratio Strong Statutory Earnings 87% 92% 83% Numerator is statutory net gain from operations. Denominator is operating earnings derived from GAAP. See Appendix for non-GAAP financial information, definitions and/or reconciliations. 0% 25% 50% 75% 100% Ongoing Operations (exclu
Slide 33: Protect and Grow Large Market Franchise
MetLife 30% Next Top 3 Carriers Combined 25% All Others 45% Protect and Grow Large Market Franchise Disciplined pricing Growth with existing customers Expansion opportunity in public sector business 2013 Total Industry Large Market Premiums, Fees & Other Revenues of $43B #1 Large Market Franchise Hi
Slide 34: Invest to Increase Market Share in the Middle Market
MetLife 6% Next Top 3 Combined 16% Industry Leader 20% All Others 58% Invest to Increase Market Share in the Middle Market Integrated benefits solution Segmented broker strategy Focus on exchanges 2013 Total Industry Middle Market Premiums, Fees & Other Revenues of $46B Untapped Potential Highlights
Slide 35: Expand Property & Casualty Business
Combined Ratio 93.0 % Combined 93.7 % Combined 91.4 % Ratio Ratio Combined Ratio 93.0 % Expand Property & Casualty Business Market expansion Participation growth Enhanced marketing Risk management Net Written Premiums (NWP) and Combined Ratio ($ in millions) Highlights Includes GVWB and U.S. sponsor
Slide 36: Invest to become a Significant Voluntary/Worksite Player
Life, Dental, & Disability Property & Casualty Other Voluntary/ Worksite Invest to become a Significant Voluntary/Worksite Player Strong consumer brand Unmatched breadth of products Ease of purchase Market Size $100.0 $3.5 $14.7 GVWB 2013 PFOs $14.0 $1.4 $0.2 GVWB 2013 Market Share 14% 40% 1.4% The
Slide 37: GVWB Key Takeaways
GVWB Key Takeaways Expect long-term growth in PFOs to be between 4-7%, while maintaining pricing discipline – Core products are expected to grow 3-6% – Voluntary products are expected to grow 8-11% Operating earnings long-term growth expected to be 6-8% Strong operating ROE and cash generation MetLi
Slide 38: MetLife
MetLife
Slide 39: Oscar Schmidt, Latin America
Oscar Schmidt Executive Vice President Latin America June 10, 2014 INVESTOR DAY 2014
Slide 40: Latin America Overview
Key Strategies Long-Term Outlook Opportunities and Challenges Latin America Overview Strengthen and expand worksite marketing and other agencies Complete integration and grow ProVida Build direct marketing as a regional growth engine Leverage global employee benefits Anticipate low double- digit gro
Slide 41: 2013: Latin America Sales by Product and Distribution Channel
A&H 26% Credit Life 7% Direct 25% Group 15% Life 40% Retirement 27% Retail 55% Sales by Distribution Channel 2013: Latin America Sales by Product and Distribution Channel Excludes U.S. sponsored direct (as reported in Latin America). See Appendix for non-GAAP financial information, definitions and/o
Slide 42: 2014E: Latin America Financial Results
ProVida 8% Retail 47% Group 19% Mexico Public 11% ProVida 23% Retail 42% Pension 9% Other 9% Direct 5% Group 7% Direct 15% 2014E: Latin America Financial Results Excludes U.S. sponsored direct (as reported in Latin America) and corporate overhead allocations. See Appendix for non-GAAP financial info
Slide 43: MetLife is the Largest Life Player in the Region
MetLife is the Largest Life Player in the Region Top Latin America Players 2013 Gross Written Premiums ($ in millions) Source: AXCO Global Statistics. A C B E D G F I H $5,633 $4,476 $2,714 $2,454 $2,094 $1,862 $1,799 $1,466 $1,342 $1,151
Slide 44: Significant Footprint in Scale and Market Share
Mexico Colombia Brazil Uruguay Argentina Chile Ecuador Significant Footprint in Scale and Market Share (MS) #1 Insurer . MS 30.0% 7.7 Million Customers Population: 120 Million #10 Life Insurer . MS 2.5% 475 Thousand Customers Population: 47 Million #2 Non-Bank Life Insurer . MS 3.5% 5.2 Million Cust
Slide 45: Strategy Tied to Favorable Regional Trends
Large and mid-sized companies are underserved Large emerging middle class Mass affluent class is growing Strategy Tied to Favorable Regional Trends Grow employee benefits franchise by leveraging global employee benefits Build direct marketing as a regional engine of growth Strengthen and expand agen
Slide 46: Agency as Growth Engine, Worksite Marketing as Pillar
Agency as Growth Engine, Worksite Marketing as Pillar Overview – Difficult to replicate payroll deduction and agency network – Expansion of inforce via face amount increases/new riders – Changing employment demographics also contributing to growth See Appendix for non-GAAP financial information, def
Slide 47: ProVida: A Key Growth Initiative
ProVida: A Key Growth Initiative Overview Business Outlook See Appendix for non-GAAP financial information, definitions and/or reconciliations. Largest pension company in Chile and region based on AUM ($45 billion) Expected to contribute approximately 25% of Latin America operating earnings in 2014
Slide 48: ProVida: Net Salary Transfers
ProVida: Net Salary Transfers Net Change in Monthly Salary Pool ($ in millions) $0.5 $(4.8) $(4.4) $1.7 $14.2 $(5) $0 $5 $10 $15 1Q13 2Q13 3Q13 4Q13 1Q14 BBVA Controlled MetLife Controlled Acquisition Date Oct. 1, 2013
Slide 49: ProVida: Segmented Value Proposition
Market Segment Active Contributors 1 Fee Income 1 Market Drivers Prime Market Middle Market Mass Market ProVida: Segmented Value Proposition 1.4% 25K 5% Target: Affluent to upper income Multi-product (savings, tax incentive and mandatory) Greatest competition and acquisition cost Services tailored f
Slide 50: Direct Marketing as a Regional Growth Engine
Direct Marketing as a Regional Growth Engine Overview Key distribution channel to address the large emerging middle class opportunity 100+ sponsors throughout the region 10 million customers Business Outlook Broad portfolio of Accident & Health, Life and Property & Casualty products Expansion of spo
Slide 51: Growing Employee Benefits Across the Region
Growing Employee Benefits Across the Region Overview Market leadership in key countries: Mexico, Brazil and Chile 13,000 group customers across the region Business Outlook Leverage U.S. relationships with Fortune 500 companies, multinational solutions and global network Expand voluntary/worksite mar
Slide 52: Strong Capital Distributions Despite High Growth
Strong Capital Distributions Despite High Growth Net Capital Distributions as a Percentage of Operating Earnings Highlights Modest capital needs given product mix ProVida expected to maintain similar payout ratio Subsidiary dividends and other capital distributions less capital contributions. See Ap
Slide 53: Latin America Key Takeaways
Latin America Key Takeaways Significant presence in key Latin America markets Strong track record of double digit growth – Operating earnings CAGR of 20% for the last 10 years – Organic operating earnings 10-year CAGR of 12.5% in Mexico High margin capital efficient products Well diversified by prod
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Slide 55: Asia Overview
Key Strategies Long-Term Outlook Opportunities and Challenges Asia Overview Secure maximum operating earnings from Japan and Korea Build a value growth platform in China and India beyond 2016 Ensure solid operating earnings contribution from designated markets Enter high growth, high margin Southeas
Slide 56: 2013: Asia Sales by Product and Distribution Channel
Group 8% Retirement 18% Accident & Health 25% Life: Protection 20% Life: Savings 29% Group 1 8% Direct 12% Bancassurance 16% MetLife Agency 27% Independent Agency 37% 2013: Asia Sales by Product and Distribution Channel Total Sales: $4.0B Group includes sales achieved by direct, agency and employee
Slide 57: 2013: Asia Financial Results
Life 39% Retirement 24% A&H 54% A&H 48% 2013: Asia Financial Results Total Operating PFOs: $10.3B Total Baseline Operating Earnings: $1.2B China is a non-consolidating joint venture. Therefore, Asia’s total operating PFOs of $9.6 billion, as reported, does not include China. Adjusted for the followi
Slide 58: Asia Financial Contribution Overview
Operating Earnings Baseline Operating Earnings $1,194 3 Asia Designated Markets 2 India China 1 Korea Japan (% of total Asia) Target 75-80% 10-15% 5-10% Asia Financial Contribution Overview Total ($ in millions) China is a non-consolidating joint venture. Therefore, Asia’s total operating PFOs of $9
Slide 59: Japan: Market Opportunity
Japan: Market Opportunity Higher reliance on private sector to pay for retirement and health care Affluent senior population increasing Shifting purchasing patterns among younger segments Potential growth opportunities from Abenomics
Slide 60: Japan 2013: Multiple Scaled Distribution Channels
Independent Agency 49% MetLife Agency 23% Bancassurance 17% Direct 11% Multiple, scaled distribution channels A leader in productivity Consultative sales drive cross-selling opportunities Strong access to affluent and small and medium business markets Direct distribution channel leverage Japan 2013:
Slide 61: Japan 2013: Diversified Product Mix with High Protection Share
Retirement 31% A&H 54% Life 40% A&H 53% Life 14% Insurance Research Institute, Insurance Book 2012. See Appendix for non-GAAP financial information, definitions and/or reconciliations. Japan 2013: Diversified Product Mix with High Protection Share A leader in stand-alone A&H A leader in foreign curr
Slide 62: Japan: Accelerating Value Creation
Japan: Accelerating Value Creation Persistency ~90% and improving Reducing expense ratios Technology investments driving further efficiency gains Investment in Brand As of 1Q14.
Slide 63: Korea 2013: Increased Distribution Diversification
Korea 2013: Increased Distribution Diversification Continue to enhance market leading MetLife agency Diversifying distribution by growing independent agency with a powerful value proposition Portfolio enhancement with A&H ~20% of total sales Total Sales: $675M Highlights Sales by Distribution Channe
Slide 64: China 2013: Leadership Position in Direct-Telemarketing
MetLife Agency 12% Bancassurance 24% Direct 62% China 2013: Leadership Position in Direct-Telemarketing Distribution across 24 cities in 10 provinces providing access to more than half of China’s total GDP Largest foreign joint venture insurer in Direct with high productivity Direct-telemarketing ch
Slide 65: Southeast Asia: High Growth and High Margin Markets
Vietnam Malaysia Myanmar Southeast Asia: High Growth and High Margin Markets BIDV, #2 bank in Vietnam Greenfield joint venture – 60% MetLife, 40% BIDV Exclusive bancassurance distribution agreement AMMB, # 5 bank in Malaysia 50% acquisition of existing multi-channel carrier 20-year exclusive bancass
Slide 66: Asia: Expect Improving Capital Distributions
Asia: Expect Improving Capital Distributions Net Capital Distributions as a Percentage of Operating Earnings Highlights Net capital distributions to holding companies of $1.6 billion over the past three years Internally funding $250-$300 million of acquisitions in 2014 Over the long term, Japan divi
Slide 67: Asia Key Takeaways
Asia Key Takeaways Strong sustainable earnings base and investing for the future Successfully exporting expertise and leveraging scale Improving cash generation to the MetLife enterprise Well positioned to capture macro growth opportunities
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Slide 69: EMEA Overview
Key Strategies Long-Term Outlook Opportunities and Challenges EMEA Overview Maintain diversification and focus on protection products Drive growth in emerging markets Leverage global relationships in employee benefits Continue investing in Customer Centricity and a global brand Drive capital and exp
Slide 70: 2013: Diversified by Product and Distribution Channel
Independent Agency 22% Direct 10% Bancassurance 36% A&H 18% Retirement 10% 2013: Diversified by Product and Distribution Channel Sales by Distribution Channel Operating PFOs by Product Excludes certain run-off and other operations, including Belgium (representing $62 million of operating PFOs). See
Slide 71: 2014E: Diversified by Market and Currency
2014E: Diversified by Market and Currency Operating Earnings by Market Operating Earnings by Currency See Appendix for non-GAAP financial information, definitions and/or reconciliations. GBP 3%
Slide 72: Leading Position in Emerging Markets; Niche Approach to Developed Markets
Emerging Markets Developed Markets 8% <1% Leading Position in Emerging Markets; Niche Approach to Developed Markets Market Share 2% 5% 2% 6% 7% 6% 5% 7% Source: Market shares: AXCO Global Statistics by Country (2012) (except Turkey - Insurance Association of Turkey (2012), UAE - Swiss Re (2012)). A
Slide 73: Emerging Markets Expected to Drive Future Growth
Emerging Markets Expected to Drive Future Growth Source: Swiss Re (Sigma 3/2013: 2012 Life insurance penetration and GDP per capita; UAE GDP per capita adjusted with World Bank population data, 5/2014). Life GWP/GDP (%) GDP per capita (in USD) Life Insurance Penetration vs. GDP Per Capita
Slide 74: Well Positioned with Significant Operating Earnings from Emerging Markets
Well Positioned with Significant Operating Earnings from Emerging Markets Share of Market Low Medium High Low Medium High Developed Markets 2013 Operating Earnings Emerging Markets 2013 Operating Earnings See Appendix for non-GAAP financial information, definitions and/or reconciliations. = $30M = $
Slide 75: Strong Track Record of Growth in Key Operations
Country Market GWP 1 2010 - 2014E CAGR 2 MetLife GWP 1 2010 - 2014E CAGR Market Share 3 Rank 3 Gulf 12% 15% 24% Top 5 Poland 8% 10% 6% #5 Russia 39% 25% 9% #5 Turkey 12% 25% 4% #8 Strong Track Record of Growth in Key Operations Statutory gross written premiums (GWP). Swiss Re Sigma database (2013).
Slide 76: Unique Footprint, Difficult to Replicate
Over 60 years in Lebanon #1 life insurer in the market #4 insurer in the market Market leader in employee benefits Unique Footprint, Difficult to Replicate foreign insurer to enter market; over 2.5 million customers #2 in profitability foreign insurer to enter market; over 5 million customers #3 in
Slide 77: Key Drivers of Growth in Emerging Markets
Expand Bancassurance Develop Direct to Consumer Focus on Protection Building the Brand and Driving Customer Centricity Key Drivers of Growth in Emerging Markets Sales growth of 43% Knowledge transfer from developed to emerging markets 75% of sales in protection products Sales growth of 32% in A&H, 1
Slide 78: Operating Leverage and Flexible Expense Model
Operating Leverage and Flexible Expense Model Mid to high single-digit operating expense growth leading to margin expansion Ability to manage operating expenses for fluctuations in sales Drive efficiency gains through continued subsidiary restructuring See Appendix for non-GAAP financial information
Slide 79: EMEA: Strong Capital Distributions Despite High Growth
EMEA: Strong Capital Distributions Despite High Growth Highlights Modest capital needs given product mix Focus on capital efficiency creates higher payout ratio in near term 50+% payout ratio longer term Net Capital Distributions as a Percentage of Operating Earnings Subsidiary dividends and other c
Slide 80: EMEA Key Takeaways
EMEA Key Takeaways Solid progress toward 2016 objectives Near-term headwinds, long-term outlook intact Diversification a competitive advantage Well positioned in growth markets Modest retention of capital needed to fund growth
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Slide 82: We are Organized to Capture the GEB Opportunity
We are Organized to Capture the GEB Opportunity Share best practices and capabilities to accelerate local employee benefits businesses Leverage global relationships and innovate product offerings to grow outside the U.S.
Slide 83: Delivering Profitable Top-Line Growth
Deliver strong returns through solid margins and low required capital Grow employee benefits through multinational and expatriate solutions Accelerate local employee benefits businesses outside the U.S. Global sales CAGR 39% Delivering Profitable Top-Line Growth New business ROI 20+% Pre-tax margin
Slide 84: 2013: GEB Sales and Operating PFOs
PFO Credit 28% Local Employee Benefits 54% Multinational Employee Benefits 1 18% Latin America 46% EMEA 39% Asia 13% 2013: GEB Sales and Operating PFOs Sales by Product Total Sales: $1.0B Operating PFOs by Region Total Operating PFOs: $3.3B Includes expatriate employee benefits. Financial results ar
Slide 85: GEB Opportunities
Double-digit sales, operating PFOs and operating earnings growth Grow through niches in developed markets Grow and invest in emerging markets Diversify and innovate credit products GEB Opportunities Based on expected 2013-2016 CAGR (excluding dispositions) on a constant currency basis. See Appendix
Slide 86: Accelerate Growth through Life & Health
Accelerate Growth through Life & Health Life & Health (2013–2016 CAGR) – Sales 12–15% – Operating PFOs 17–20% Based on expected 2013-2016 CAGR (excluding dispositions) on a constant currency basis. See Appendix for non-GAAP financial information, definitions and/or reconciliations. Business Outlook
Slide 87: Growth in Developed Markets
$14 41.4% 91.0% Growth in Developed Markets Drivers Launch new products and distribution channels Leverage global capabilities for local competitive advantage Re-engineer operating processes for productivity and efficiency See Appendix for non-GAAP financial information, definitions and/or reconcili
Slide 88: Growth in Emerging Markets
4.2% 26.5% Growth in Emerging Markets Drivers Diversifying distribution Investing in operations and technologies Innovating new products Focus market data excludes Mexico Government sales. See Appendix for non-GAAP financial information, definitions and/or reconciliations. Emerging Markets Sales (Li
Slide 89: Broaden and Deepen Global Relationships
Leverage U.S. corporate relationships Expand global broker partnerships Deploy the strength of our multinational solutions network Broaden and Deepen Global Relationships Multinational and Expatriate Sales ($ in millions) Drivers See Appendix for non-GAAP financial information, definitions and/or re
Slide 90: Global Relationships Driving Local Growth
Global Relationships Driving Local Growth Client Profile: Fortune 100 Company 100,000+ Employees 60+ Countries U.S. Client Since 1931 $15M GWP 33K Employees 3 Countries $17M GWP 39K Employees 7 Countries $22M GWP 51K Employees 21 Countries $29M GWP 73K Employees 24 Countries
Slide 91: GEB Key Takeaways
GEB Key Takeaways Accelerating Life & Health growth across all regions Driving robust growth through multinational and expatriate solutions Delivering double-digit operating earnings growth Improving MetLife’s risk profile See Appendix for non-GAAP financial information, definitions and/or reconcili
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Slide 93: Key Takeaways for the Day
Strategy is working and even more relevant today Businesses with attractive growth and return characteristics also have favorable risk profiles Committed to delivering shareholder value Key Takeaways for the Day
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Slide 95: Definitions
Definitions Sales (Retail): Annuity Sales: • Individual annuities sales consist of statutory premiums direct and assumed, excluding company sponsored internal exchanges. • Sales of life and non-medical health products include 100% of annualized full year premiums and fees from recurring-premium poli
Slide 96: Reconciliation of Operating Earnings to Net Income – Total Company
2013 2012 2011 Reconciliation of Operating Earnings Available to Common Shareholders to Net Income (Loss) Available to MetLife, Inc.’s Common Shareholders - Total Company ($ in millions) Operating earnings available to common shareholders 6,261 $ 5,649 $ 4,654 $ Adjustments from operating earnings a
Slide 97: Reconciliation of Operating Earnings to Net Income
2013 2012 2011 Reconciliation of Operating Earnings Available to Common Shareholders to Net Income (Loss) Available to MetLife, Inc.’s Common Shareholders Retail Group, Voluntary & Worksite Benefits Corporate Benefit Funding Retail Corporate Benefit Funding Retail Corporate Benefit Funding ($ in mil
Slide 98: Reconciliation of Operating Earnings to Net Income – Emerging Markets
2012 2011 2013 Reconciliation of Operating Earnings Available to Common Shareholders to Net Income (Loss) Available to MetLife, Inc.’s Common Shareholders – Emerging Markets Latin America EMEA Asia Total Latin America EMEA Asia Total Latin America EMEA Asia Total ($ in millions) Operating earnings a
Slide 99: Reconciliation of Operating Earnings to Net Income – Asia
2013 Reconciliation of Operating Earnings Available to Common Shareholders to Net Income (Loss) Available to MetLife, Inc.’s Common Shareholders – Asia Japan Korea China India Designated Markets Total ($ in millions) Operating earnings available to common shareholders 1,153 $ $ (11) $ - $ (12) $ 1,2
Slide 100: Reconciliation of Premiums, Fees & Other Revenues
2013 Reconciliation of Premiums, Fees & Other Revenues (Operating) to Premiums, Fees & Other Revenues (GAAP) ($ in millions) Japan Korea China ¹ India Designated Markets Total Asia ¹ EMEA Premiums, fees & other revenues (operating) 7,398 $ 1,232 $ $ $ $ 9,615 $ 2,780 $ Add: Adjustments to premiums,
Slide 101: Reconciliation of Return on Common Equity
2013 2012 2011 Reconciliation of Return on Common Equity Return on MetLife, Inc.'s Common Equity Operating return on MetLife, Inc.'s common equity, excluding accumulated other comprehensive income (loss) (1) 11.9% 11.2% 10.0% Operating return on MetLife, Inc.'s common equity (1) 10.4% 9.5% 9.2% Retu