Metlife, Inc. · NYSE:MET
Metlife — Investor Presentation (December 2019)
18 slides from Metlife's investor presentation, Dec 11, 2019
Slide 1: MetLife Outlook
Exhibit 99.1 i MetLi fe Navigating life together Outlook
Slide 2: Key Messages
Key Messages Delivering another strong year of financial performance in 2019 Maintaining ROE and free cash flow targets Exceeding expense commitment Returning excess capital to shareholders remains a top priority
Slide 3: Near-Term Targets and Corporate Guidance
Mixed macro environment in 2020: U.S. growth still solid, led by consumer Continued headwinds from low interest rates U.S. dollar remains strong Near-term1 targets: Adjusted return on equity2 of 12-14% Free cash flow ratio of 65-75% of adjusted earnings Corporate guidance for 2020: Variable investme
Slide 4: U.S. Group Benefits Near-Term Guidance and Key Sensitivities
1% change in Group Life mortality ratio translates to approximately $60 million of adjusted earnings3 1% change in Group Non-Medical Health interest adjusted benefit ratio translates to approximately $60 million of adjusted earnings3 Adjusted premiums, fees and other revenues (PFOs) expected to grow
Slide 5: Retirement and Income Solutions Guidance and Sensitivities
Both spread based and fee based liability exposures2 expected to grow 2-4% annually Investment spread3 of 112 bps in LTM, with variable investment income contributing 25 bps Investment spread3 expected to be within 90-115 bps, with variable investment income contributing 15-20 bps Near-Term Guidance
Slide 6: Property & Casualty Guidance and Sensitivities
1% change in overall P&C combined ratio2 translates to approximately $30 million of adjusted earnings3 1% change in Auto combined ratio2 translates to approximately $20 million of adjusted earnings3 1% change in Homeowners & Other combined ratio2 translates to approximately $10 million of adjusted e
Slide 7: Asia Near-Term Guidance and Key Sensitivities
Mid single-digit sales growth on a constant currency basis in 2020, moving higher in 2021-2022, double-digit growth in emerging markets GA AUM3 to grow at high single-digits on a constant currency basis Mid to high single-digit adjusted earnings growth on a constant currency basis Dividends to holdi
Slide 8: Latin America Near-Term Guidance and Key Sensitivities
Mid single-digit adjusted earnings growth on a constant currency basis in 2020, moving to high single-digits in 2021-2022 High single-digit annual growth in adjusted PFOs on a constant currency basis Dividends to holding companies expected to be 80-90% of adjusted earnings Near-Term Guidance on Cert
Slide 9: EMEA Near-Term Guidance and Key Sensitivities
Sales and adjusted PFO growth of mid-to-high single-digits on a constant currency basis Mid single-digit adjusted earnings growth on a constant currency basis Dividends to holding companies expected to be 90-100% of adjusted earnings Near-Term Guidance on Certain Key Items Key Sensitivities Adjusted
Slide 10: MetLife Holdings Near-Term Guidance and Key Sensitivities
Roughly 70% of the separate account (SA) assets are in equities 10 bps change in yield translates to approximately $55 million of adjusted earnings annually 1% change in life interest adjusted benefit ratio translates to approximately $25 million of adjusted earnings annually Adjusted PFOs expected
Slide 11: Appendix
Appendix Il MetLife
Slide 12: Interest Rates: Base vs. Stress Scenario
12/31/2019 12/31/2020 12/31/2021 12/31/2022 Base Stress Base Stress Base Stress Base Stress 3-Month LIBOR1 1.90% 1.90% 1.45% 1.00% 1.36% 1.00% 1.38% 1.00% 2-Year Treasury1 1.58% 1.58% 1.47% 1.00% 1.49% 1.00% 1.56% 1.00% 10-Year Treasury1 1.69% 1.69% 1.76% 1.00% 1.85% 1.10% 1.95% 1.20% 1 Base rates b
Slide 13: Safe Harbor Statement
Safe Harbor Statement (i) 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 ev
Slide 14: Explanatory Note on Non-GAAP Financial Information
Explanatory Note on Non-GAAP 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) adjusted earnings; (i) adjusted earnings available to common shareholders; (ii) repo
Slide 15: Adjusted earnings and related definitions
Adjusted earnings is defined as adjusted revenues less adjusted expenses, net of income tax. Adjusted loss is defined as negative adjusted earnings. Adjusted earnings available to common shareholders is defined as adjusted earnings less preferred stock dividends. Adjusted revenues and adjusted expen
Slide 16: Return on equity and related measures
Return on equity and related measures Total MetLife, Inc.’s common stockholders’ equity, excluding AOCI other than FCTA: total MetLife, Inc.’s common stockholders’ equity, excluding the net unrealized investment gains (losses) and defined benefit plans adjustment components of AOCI, net of income ta
Slide 17: GA AUM and statistical sales definitions
GA AUM (excluding FVA) excludes the following FVA: (i) unrealized gain (loss) on investments carried at estimated fair value and (ii) adjustments from carrying value to estimated fair value on mortgage loans and real estate and real estate joint ventures. MetLife believes that the use of GA AUM (exc
Slide 18: MetLife
iy’ MetLife