MetLife, Inc. (NYSE:MET) today announced the following results
for the fourth quarter and full year 2015:
Fourth Quarter Results
MetLife reported operating earnings* of $1.4 billion, down 13
percent from the fourth quarter of 2014, and 10 percent on a
constant currency basis*. On a per share basis, operating earnings
were $1.23, down 11 percent from the prior year quarter. Operating
earnings in the Americas decreased 16 percent, and 14 percent on a
constant currency basis. Operating earnings in Asia decreased 15
percent, and 9 percent on a constant currency basis. Operating
earnings in Europe, the Middle East and Africa (EMEA) decreased 16
percent, and 2 percent on a constant currency basis.
Fourth quarter 2015 operating earnings included the following
items:
- variable investment income below the
company’s 2015 quarterly plan range by $137 million, or $0.12 per
share, after tax and the impact of deferred acquisition costs
(DAC)
- unfavorable catastrophe experience,
partially offset by favorable prior year development, which in
total decreased operating earnings by $9 million, or $0.01 per
share, after tax
- a one-time tax item in Argentina, which
increased operating earnings by $31 million, or $0.03 per share,
after tax
MetLife’s operating return on equity (ROE), excluding
accumulated other comprehensive income (AOCI) other than foreign
currency translation adjustments (FCTA)*, was 9.7 percent for the
fourth quarter of 2015, and the company’s tangible operating ROE*
was 11.9 percent.
On a GAAP basis, MetLife reported fourth quarter 2015 net income
of $785 million, or $0.70 per share. Net income includes $231
million, after tax, in net derivative losses, reflecting changes in
interest rates, equity markets and foreign currencies. MetLife uses
derivatives as part of its broader asset-liability management
strategy to hedge certain risks, such as movements in interest
rates, equity markets and foreign currencies. This hedging activity
often generates derivative gains or losses and creates fluctuations
in net income because the risk being hedged may not have the same
GAAP accounting treatment.
The fourth quarter variance between operating earnings and net
income reflects an unfavorable impact of $305 million, after-tax,
related to asymmetrical and non-economic accounting.
Premiums, fees & other revenues* were $12.3 billion, down 6
percent, and 3 percent on a constant currency basis over the fourth
quarter of 2014.
Book value, excluding AOCI other than FCTA*, was $51.15 per
share, up 3 percent from $49.53 at December 31, 2014.
Full Year Results
For the full year 2015, MetLife reported operating earnings of
$5.5 billion, down 16 percent over 2014, and 12 percent on a
constant currency basis. This decrease reflects a strong U.S.
dollar, lower variable investment income and a previously announced
third quarter 2015 non-cash charge of $792 million related to the
tax treatment of a wholly-owned U.K. investment subsidiary of
Metropolitan Life Insurance Company (MLIC). Adjusting for total
notable items in both years, including the previously announced
third quarter $792 million non-cash charge in 2015, full year
operating earnings were $6.4 billion, down 1 percent over 2014, but
up 3 percent on a constant currency basis. On a per share basis,
2015 operating earnings were $4.86, down 15 percent over 2014.
Operating earnings in the Americas decreased 7 percent, and 5
percent on a constant currency basis. Operating earnings in Asia
were up 6 percent, and 16 percent on a constant currency basis.
Operating earnings in EMEA decreased 16 percent, but increased 10
percent on a constant currency basis.
MetLife’s ROE, excluding AOCI other than FCTA, was 9.7 percent
for full year 2015, and the company’s tangible operating ROE was
11.9 percent. Adjusting for total notable items, including the
previously announced third quarter $792 million non-cash charge,
MetLife’s operating ROE, excluding AOCI other than FCTA, was 11.3
percent for full year 2015, and the company’s tangible operating
ROE was 13.8 percent.
MetLife reported full year 2015 net income of $5.2 billion, or
$4.57 per share.
“Operating earnings per share in the fourth quarter were down
from the prior year as a result of lower variable investment
income, which can be volatile, as well as a strong U.S. dollar,”
said Steven A. Kandarian, chairman, president and chief executive
officer, MetLife, Inc. “While 2015 was a challenging year overall,
our plan to separate a substantial portion of the U.S. Retail
business demonstrates our willingness to take bold steps to
maximize shareholder value.”
FOURTH QUARTER & FULL YEAR 2015
SUMMARY
($ in millions, except per share data)
Three months ended Dec.
31 Year ended Dec. 31 2015
2014 Change 2015
2014 Change Premiums, fees & other
revenues $ 12,338 $ 13,134 (6)% $ 49,681 $ 50,596 (2)% Total
operating revenues $ 17,111 $ 18,245 (6)% $ 69,470 $ 71,080 (2)%
Operating earnings $ 1,376 $ 1,583 (13)% $ 5,484 $ 6,560
(16)% Operating earnings per share $ 1.23 $ 1.38 (11)% $ 4.86 $
5.74 (15)% Net income $ 785 $ 1,490 (47)% $ 5,152 $ 6,187
(17)% Net income per share $ 0.70 $ 1.30 (46)% $ 4.57 $ 5.42 (16)%
Book value per share, excluding AOCI other than FCTA $ 51.15
$ 49.53 3% Book value per share – tangible common stockholders’
equity $ 42.22 $ 40.36 5% Book value per share $
60.00 $ 61.85 (3)%
*Information regarding the non-GAAP and other financial measures
included in this news release and the reconciliation of the
non-GAAP financial measures to GAAP measures is provided in the
Non-GAAP and Other Financial Disclosures discussion below, as well
as in the tables that accompany this news release and/or the Fourth
Quarter 2015 Financial Supplement (which is available on the
MetLife Investor Relations Web page at www.metlife.com).
BUSINESS DISCUSSIONS
All comparisons of the results for the fourth quarter of 2015 in
the business discussions that follow are with the fourth quarter of
2014, unless otherwise noted.
THE AMERICAS
Total operating earnings for the Americas were $1.2 billion,
down 16 percent, and 14 percent on a constant currency basis, due
to lower investment and underwriting margins. Operating return on
allocated equity* was 12.6 percent, and operating return on
allocated tangible equity* was 14.2 percent. Premiums, fees &
other revenues were $9.6 billion, down 5 percent, and 3 percent on
a constant currency basis. Excluding pension risk transfers,
premiums, fees & other revenues were up 2 percent, and 4
percent on a constant currency basis.
Retail
Operating earnings for Retail were $582 million, down 19
percent, impacted by lower underwriting margins, primarily in the
property & casualty auto business, and lower variable
investment income. Premiums, fees & other revenues were $3.4
billion, down 1 percent. Retail life sales* were up 9 percent, and
Retail annuity sales were up 23 percent.
Group, Voluntary & Worksite
Benefits
Operating earnings for Group, Voluntary & Worksite Benefits
were $214 million, down 10 percent, due to lower underwriting
margins, primarily in the property & casualty auto business,
and lower investment margins. Premiums, fees & other revenues
were $4.3 billion, up 3 percent, due to both group and voluntary
products.
Corporate Benefit Funding
Operating earnings for Corporate Benefit Funding were $286
million, down 21 percent, due to lower investment and underwriting
margins. Premiums, fees & other revenues were $886 million,
down 39 percent. Excluding pension risk transfers, premiums, fees
& other revenues were up 39 percent.
Latin America
Operating earnings for Latin America were $150 million, down 1
percent, but up 24 percent on a constant currency basis. Excluding
notable items in both periods, and on a constant currency basis,
operating earnings were up 14 percent, due to business growth.
Premiums, fees & other revenues were $1.0 billion, down 2
percent, but up 17 percent on a constant currency basis. Total
sales for the region increased 3 percent on a constant currency
basis, primarily due to direct marketing sales across the
region.
ASIA
Operating earnings for Asia were $290 million, down 15 percent,
and 9 percent on a constant currency basis, largely due to lower
variable investment income in the quarter and a prior year one-time
benefit from actuarial items. Adjusting for these items in both
periods, operating earnings increased 6 percent on a constant
currency basis. Operating return on allocated equity was 10.1
percent, and operating return on allocated tangible equity was 17.4
percent. Premiums, fees & other revenues in Asia were $2.0
billion, down 11 percent, and 3 percent on a constant currency
basis, but up 2 percent on a constant currency basis when adjusted
for the withdrawal of certain Yen products in Japan that do not
meet our hurdle rates in the current interest rate environment.
Total sales for the region were down 1 percent on a constant
currency basis, representing the net impact of management actions
taken across the product portfolio to improve value creation and
growth in targeted segments.
EMEA
Operating earnings for EMEA were $54 million, down 16 percent,
and 2 percent on a constant currency basis. Excluding the impact of
a one-time tax benefit in the fourth quarter of 2014, operating
earnings were up 32 percent on a constant currency basis. Operating
return on allocated equity was 6.5 percent, and operating return on
allocated tangible equity was 12.2 percent. Premiums, fees &
other revenues were $625 million, down 7 percent, but up 3 percent
on a constant currency basis. Excluding the impact from the
conversion of certain operations to calendar-year reporting in the
fourth quarter of 2014, premiums, fees & other revenues were up
10 percent. Total sales for the region decreased 11 percent on a
constant currency basis. Fourth quarter 2014 included strong
employee benefit sales in the Middle East and the conversion of
certain operations to calendar-year reporting.
INVESTMENTS
Net investment income was $4.8 billion, down 7 percent. Variable
investment income was $109 million ($71 million, after tax and
DAC), compared with $325 million ($211 million, after tax and DAC)
in the fourth quarter of 2014, due to weak private equity and hedge
fund performance.
Higher interest rates drove derivative net losses of $375
million, after tax and other adjustments. Derivative net losses in
the fourth quarter of 2014 were $40 million, after tax and other
adjustments.
CORPORATE & OTHER
Corporate & Other had an operating loss of $200 million
compared with an operating loss of $289 million in the fourth
quarter of 2014.
Conference Call
MetLife will hold its fourth quarter 2015 earnings conference
call and audio webcast on Thursday, Feb. 4, 2016, from 8-9 a.m.
(EST). The conference call will be available live via telephone and
the Internet. To listen via telephone, dial 800-401-8436 (U.S.) or
612-288-0340 (outside the U.S.). To listen to the conference call
via the Internet, visit www.metlife.com through a link on the
Investor Relations page. Those who want to listen to the call via
telephone or the Internet should dial in or go to the website at
least 15 minutes prior to the call to register, and/or download and
install any necessary audio software.
The conference call will be available for replay via telephone
and the Internet beginning at 10 a.m. (EST) on Thursday, Feb. 4,
2016, until Thursday, Feb. 11, 2016, at 11:59 p.m. (EST). To listen
to a replay of the conference call via telephone, dial 800-475-6701
(U.S.) or 320-365-3844 (outside the U.S.). The access code for the
replay is 370602. To access the replay of the conference call over
the Internet, visit the above-mentioned website.
A brief video of CFO John Hele discussing fourth quarter and
full year 2015 results can be viewed shortly after the issuance of
this news release at www.metlife.com/earningsvideo.
About MetLife
MetLife, Inc. (NYSE: MET), through its subsidiaries and
affiliates (“MetLife”), is one of the largest life insurance
companies in the world. Founded in 1868, MetLife is a global
provider of life insurance, annuities, employee benefits and asset
management. Serving approximately 100 million customers, MetLife
has operations in nearly 50 countries and holds leading market
positions in the United States, Japan, Latin America, Asia, Europe
and the Middle East. For more information, visit
www.metlife.com.
Non-GAAP and Other Financial
Disclosures
Any references in this news release
(except in this section and the tables that accompany this release)
to:
should be read as, respectively:
(i) net income (loss); (i) net income (loss)
available to MetLife, Inc.’s common shareholders; (ii) net
income (loss) per share; (ii) net income (loss) available to
MetLife, Inc.’s common shareholders per diluted common share;
(iii) operating earnings; (iii) operating earnings available
to common shareholders; (iv) operating earnings per share;
(iv) operating earnings available to common shareholders per
diluted common share; (v) book value per share; (v) book
value per common share; (vi) book value per share, excluding
accumulated other comprehensive income (loss) (AOCI) other than
foreign currency translation adjustments (FCTA); (vi) book value
per common share, excluding AOCI other than FCTA; (vii) book
value per share-tangible common stockholders’ equity; (vii) book
value per common share-tangible common stockholders’ equity;
(viii) premiums, fees and other revenues; (viii) premiums, fees and
other revenues (operating); (ix) operating return on equity,
excluding AOCI other than FCTA; and (ix) operating return on
MetLife, Inc.’s common stockholders’ equity, excluding AOCI other
than FCTA; and (x) tangible operating return on equity. (x)
operating return on MetLife, Inc.’s tangible common stockholders’
equity.
In this news release, MetLife presents certain measures of its
performance that are not calculated in accordance with accounting
principles generally accepted in the United States of America
(“GAAP”). MetLife believes that these non-GAAP financial measures
enhance the understanding of MetLife’s performance by highlighting
the results of operations and the underlying profitability drivers
of the business. 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
measures:
(i) operating revenues; (i) GAAP revenues;
(ii) operating expenses; (ii) GAAP expenses; (iii) operating
earnings; (iii) income (loss) from continuing operations, net of
income tax; (iv) operating earnings available to common
shareholders; (iv) net income (loss) available to MetLife, Inc.’s
common shareholders; (v) operating earnings available to
common shareholders, adjusted for total notable items; (v) net
income (loss) available to MetLife, Inc.’s common shareholders;
(vi)
operating earnings available to common
shareholders per diluted common share;
(vi)
net income (loss) available to MetLife,
Inc.’s common shareholders per diluted common share;
(vii) investment portfolio gains (losses); (vii) net
investment gains (losses); (viii) derivative gains (losses);
(viii) net derivative gains (losses); (ix) MetLife, Inc.’s
tangible common stockholders’ equity; (ix) MetLife, Inc.’s
stockholders’ equity; (x) MetLife, Inc.’s tangible common
stockholders’ equity, adjusted for total notable items; (x)
MetLife, Inc.’s stockholders’ equity; (xi) MetLife, Inc.’s
common stockholders’ equity, excluding AOCI other than FCTA; (xi)
MetLife, Inc.’s stockholders’ equity; (xii) MetLife, Inc.’s
common stockholders’ equity, excluding AOCI other than FCTA,
adjusted for total notable items; and (xii) MetLife, Inc.’s
stockholders’ equity; and (xiii) free cash flow of all
holding companies. (xiii) MetLife, Inc.’s net cash provided by
operating activities.
Reconciliations of these measures to the most directly
comparable GAAP measures are included in this earnings news release
and in this period’s quarterly financial supplement.
MetLife’s definitions of the various non-GAAP and other
financial measures discussed in this new release may differ from
those used by other companies:
Operating earnings is the measure of segment profit or loss that
MetLife uses to evaluate segment performance and allocate
resources. Consistent with GAAP accounting guidance for segment
reporting, operating earnings is MetLife’s measure of segment
performance. Operating earnings is also a measure by which MetLife
senior management’s and many other employees’ performance is
evaluated for the purposes of determining their compensation under
applicable compensation plans.
Operating earnings is defined as operating revenues less
operating expenses, both net of income tax. Operating earnings
available to common shareholders is defined as operating earnings
less preferred stock dividends.
Operating revenues and operating expenses exclude results of
discontinued operations and other businesses that have been or will
be sold or exited by MetLife and are referred to as divested
businesses. Operating revenues also excludes net investment gains
(losses) (NIGL) and net derivative gains (losses) (NDGL). Operating
expenses also excludes goodwill impairments.
The following additional adjustments are made to GAAP revenues,
in the line items indicated, in calculating operating revenues:
- Universal life and investment-type
product policy fees excludes the amortization of unearned revenue
related to NIGL and NDGL and certain variable annuity guaranteed
minimum income benefits (GMIB) fees (GMIB fees);
- Net investment income: (i) includes
amounts for scheduled periodic settlement payments and amortization
of premium on derivatives that are hedges of investments or that
are used to replicate certain investments but do not qualify for
hedge accounting treatment, (ii) includes income from discontinued
real estate operations, (iii) excludes post-tax operating earnings
adjustments relating to insurance joint ventures accounted for
under the equity method, (iv) excludes certain amounts related to
contractholder-directed unit-linked investments, and (v) excludes
certain amounts related to securitization entities that are
variable interest entities (VIEs) consolidated under GAAP; and
- Other revenues are adjusted for
settlements of foreign currency earnings hedges.
The following additional adjustments are made to GAAP expenses,
in the line items indicated, in calculating operating expenses:
- Policyholder benefits and claims and
policyholder dividends excludes: (i) changes in the policyholder
dividend obligation related to NIGL and NDGL, (ii)
inflation-indexed benefit adjustments associated with contracts
backed by inflation-indexed investments and amounts associated with
periodic crediting rate adjustments based on the total return of a
contractually referenced pool of assets and other pass through
adjustments, (iii) benefits and hedging costs related to GMIBs
(GMIB costs), and (iv) market value adjustments associated with
surrenders or terminations of contracts (Market value
adjustments);
- Interest credited to policyholder
account balances includes adjustments for scheduled periodic
settlement payments and amortization of premium on derivatives that
are hedges of policyholder account balances but do not qualify for
hedge accounting treatment and excludes amounts related to net
investment income earned on contractholder-directed unit-linked
investments;
- Amortization of DAC and value of
business acquired (VOBA) excludes amounts related to: (i) NIGL and
NDGL, (ii) GMIB fees and GMIB costs and (iii) Market value
adjustments;
- Amortization of negative VOBA excludes
amounts related to Market value adjustments;
- Interest expense on debt excludes
certain amounts related to securitization entities that are VIEs
consolidated under GAAP; and
- Other expenses excludes costs related
to: (i) noncontrolling interests, (ii) implementation of new
insurance regulatory requirements, and (iii) acquisition and
integration costs.
Operating earnings also excludes the recognition of certain
contingent assets and liabilities that could not be recognized at
acquisition or adjusted for during the measurement period under
GAAP business combination accounting guidance. In addition to the
tax impact of the adjustments mentioned above, provision for income
tax (expense) benefit also includes the impact related to the
timing of certain tax credits, as well as certain tax reforms.
The following additional information is relevant to an
understanding of MetLife’s performance results:
- MetLife, Inc.’s tangible common
stockholders’ equity or tangible equity - MetLife, Inc.’s common
stockholders’ equity, excluding the net unrealized investment gains
(losses) and defined benefit plans adjustment components of AOCI
reduced by the impact of goodwill, value of distribution agreements
(VODA) and value of customer relationships acquired (VOCRA), all
net of income tax.
- MetLife, Inc.’s common stockholders’
equity, excluding AOCI other than FCTA - MetLife, Inc.’s common
stockholders’ equity, excluding the net unrealized investment gains
(losses) and defined benefit plans adjustment components of AOCI,
net of income tax.
- Allocated equity - portion of MetLife,
Inc.’s common stockholders’ equity that management allocates to
each of its segments and sub-segments based on local capital
requirements and economic capital. Economic capital is an
internally developed risk capital model, the purpose of which is to
measure the risk in the business and to provide a basis upon which
capital is deployed. MetLife management periodically reviews this
model to ensure that it remains consistent with emerging industry
practice standards and the local capital requirements; allocated
equity may be adjusted if warranted by such review. Allocated
equity excludes the impact of AOCI other than FCTA.
- Operating return on MetLife, Inc.'s
common stockholders' equity, excluding AOCI other than FCTA -
operating earnings available to common shareholders divided by
MetLife, Inc.'s average common stockholders' equity, excluding AOCI
other than FCTA.
- Operating return on MetLife, Inc.'s
tangible common stockholders' equity - operating earnings available
to common shareholders, excluding amortization of VODA and VOCRA,
net of income tax, divided by MetLife, Inc.'s average tangible
common stockholders' equity.
- Operating return on MetLife, Inc.'s
common stockholders' equity - operating earnings available to
common shareholders divided by MetLife, Inc.'s average common
stockholders' equity.
- Return on MetLife, Inc.'s common
stockholders' equity, excluding AOCI other than FCTA - net income
(loss) available to MetLife, Inc.’s common shareholders divided by
MetLife, Inc.'s average common stockholders' equity, excluding AOCI
other than FCTA.
- Return on MetLife, Inc.’s tangible
common stockholders' equity - net income (loss) available to
MetLife, Inc.’s common shareholders, excluding goodwill impairment
and amortization of VODA and VOCRA, net of income tax, divided by
MetLife, Inc.'s average tangible common stockholders' equity.
- Return on MetLife, Inc.’s common
stockholders’ equity - net income (loss) available to MetLife,
Inc.’s common shareholders divided by MetLife, Inc.’s average
common stockholders’ equity.
- Operating return on allocated equity -
operating earnings available to common shareholders divided by
allocated equity.
- Operating return on allocated tangible
equity - operating earnings available to common shareholders,
excluding amortization of VODA and VOCRA, net of income tax,
divided by allocated tangible equity.
- Return on allocated equity - net income
(loss) available to MetLife, Inc.’s common shareholders divided by
allocated equity.
- Return on allocated tangible equity -
net income (loss) available to MetLife, Inc.’s common shareholders,
excluding amortization of VODA and VOCRA, net of income tax,
divided by allocated tangible equity.
- Operating expense ratio - calculated by
dividing operating expenses (other expenses, net of capitalization
of DAC) by operating premiums, fees and other revenues.
- Statistical sales information for
Retail- Life sales are calculated using the LIMRA definition of
sales for core direct sales, excluding company-sponsored internal
exchanges, corporate-owned life insurance, bank-owned life
insurance, and private placement variable universal life insurance.
Annuity sales consist of statutory premiums direct and assumed,
excluding company sponsored internal exchanges. Sales statistics do
not correspond to revenues under GAAP, but are used as relevant
measures of business activity.
- Statistical sales information for Latin
America, Asia and EMEA - calculated using 10% of single-premium
deposits (mainly from retirement products such as variable annuity,
fixed annuity and pensions), 20% of single-premium deposits from
credit insurance and 100% of annualized full-year premiums and fees
from recurring-premium policy sales of all products (mainly from
risk and protection products such as individual life, accident
&health and group). Sales statistics do not correspond to
revenues under GAAP, but are used as relevant measures of business
activity.
- All comparisons 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 current period and are applied to each of
the comparable periods.
- Asymmetrical and non-economic
accounting refer to: (i) the portion of net derivative gains
(losses) on embedded derivatives attributable to the inclusion of
MetLife’s credit spreads in the liability valuations, (ii) hedging
activity that generates net derivative gains (losses) and creates
fluctuations in net income because hedge accounting cannot be
achieved and the item being hedged does not a have an offsetting
gain or loss recognized in earnings,(iii) inflation-indexed benefit
adjustments associated with contracts backed by inflation-indexed
investments and amounts associated with periodic crediting rate
adjustments based on the total return of a contractually referenced
pool of assets and other pass through adjustments, and (iv) impact
of changes in foreign currency exchange rates on the re-measurement
of foreign denominated unhedged funding agreements and financing
transactions to the U.S. dollar and the re-measurement of certain
liabilities from non-functional currencies to functional
currencies.
- MetLife uses a measure of free cash
flow to facilitate an understanding of its ability to generate cash
for reinvestment into its businesses or use in discretionary
capital actions. MetLife defines free cash flow as the sum of cash
available at MetLife’s holding companies from dividends from
operating subsidiaries, expenses and other net flows of the holding
companies, and net contributions from debt to be at or below target
leverage ratios. This measure of free cash flow is prior to
discretionary capital deployment, including common stock dividends
and repurchases, debt reduction and mergers and acquisitions. Free
cash flow should not be viewed as a substitute for net cash
provided by (used in) operating activities calculated in accordance
with GAAP. The free cash flow ratio is typically expressed as a
percentage of annual operating earnings available to common
shareholders.
Forward-Looking Statements
This news release 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 events. These statements can be identified by
the fact that they do not relate strictly to historical or current
facts. They use words such as “anticipate,” “estimate,” “expect,”
“project,” “intend,” “plan,” “believe” and other words and terms of
similar meaning, or are tied to future periods, in connection with
a discussion of future operating or financial performance. In
particular, these include statements relating to future actions,
prospective services or products, future performance or results of
current and anticipated services or products, sales efforts,
expenses, the outcome of contingencies such as legal proceedings,
trends in operations and financial results.
Any or all forward-looking statements may turn out to be wrong.
They can be affected by inaccurate assumptions or by known or
unknown risks and uncertainties. Many such factors will be
important in determining the actual future results of MetLife,
Inc., its subsidiaries and affiliates. These statements are based
on current expectations and the current economic environment. They
involve a number of risks and uncertainties that are difficult to
predict. These statements are not guarantees of future performance.
Actual results could differ materially from those expressed or
implied in the forward-looking statements. Risks, uncertainties,
and other factors that might cause such differences include the
risks, uncertainties and other factors identified in MetLife,
Inc.’s filings with the U.S. Securities and Exchange Commission
(the SEC). These factors include: (1) difficult conditions in the
global capital markets; (2) increased volatility and disruption of
the capital and credit markets, which may affect our ability to
meet liquidity needs and access capital, including through our
credit facilities, generate fee income and market-related revenue
and finance statutory reserve requirements and may require us to
pledge collateral or make payments related to declines in value of
specified assets, including assets supporting risks ceded to
certain of our captive reinsurers or hedging arrangements
associated with those risks; (3) exposure to financial and capital
market risks, including as a result of the disruption in Europe and
possible withdrawal of one or more countries from the Euro zone;
(4) impact of comprehensive financial services regulation reform on
us, as a non-bank systemically important financial institution, or
otherwise; (5) numerous rulemaking initiatives required or
permitted by the Dodd-Frank Wall Street Reform and Consumer
Protection Act which may impact how we conduct our business,
including those compelling the liquidation of certain financial
institutions; (6) regulatory, legislative or tax changes relating
to our insurance, international, or other operations that may
affect the cost of, or demand for, our products or services, or
increase the cost or administrative burdens of providing benefits
to employees; (7) adverse results or other consequences from
litigation, arbitration or regulatory investigations; (8) potential
liquidity and other risks resulting from our participation in a
securities lending program and other transactions; (9) investment
losses and defaults, and changes to investment valuations; (10)
changes in assumptions related to investment valuations, deferred
policy acquisition costs, deferred sales inducements, value of
business acquired or goodwill; (11) impairments of goodwill and
realized losses or market value impairments to illiquid assets;
(12) defaults on our mortgage loans; (13) the defaults or
deteriorating credit of other financial institutions that could
adversely affect us; (14) economic, political, legal, currency and
other risks relating to our international operations, including
with respect to fluctuations of exchange rates; (15) downgrades in
our claims paying ability, financial strength or credit ratings;
(16) a deterioration in the experience of the “closed block”
established in connection with the reorganization of Metropolitan
Life Insurance Company; (17) availability and effectiveness of
reinsurance or indemnification arrangements, as well as any default
or failure of counterparties to perform; (18) differences between
actual claims experience and underwriting and reserving
assumptions; (19) ineffectiveness of risk management policies and
procedures; (20) catastrophe losses; (21) increasing cost and
limited market capacity for statutory life insurance reserve
financings; (22) heightened competition, including with respect to
pricing, entry of new competitors, consolidation of distributors,
the development of new products by new and existing competitors,
and for personnel; (23) exposure to losses related to variable
annuity guarantee benefits, including from significant and
sustained downturns or extreme volatility in equity markets,
reduced interest rates, unanticipated policyholder behavior,
mortality or longevity, and the adjustment for nonperformance risk;
(24) our ability to address difficulties, unforeseen liabilities,
asset impairments, or rating agency actions arising from business
acquisitions and integrating and managing the growth of such
acquired businesses, or arising from dispositions of businesses or
legal entity reorganizations; (25) regulatory and other
restrictions affecting MetLife, Inc.’s ability to pay dividends and
repurchase common stock; (26) MetLife, Inc.’s primary reliance, as
a holding company, on dividends from its subsidiaries to meet debt
payment obligations and the applicable regulatory restrictions on
the ability of the subsidiaries to pay such dividends; (27) the
possibility that MetLife, Inc.’s Board of Directors may influence
the outcome of stockholder votes through the voting provisions of
the MetLife Policyholder Trust; (28) changes in accounting
standards, practices and/or policies; (29) increased expenses
relating to pension and postretirement benefit plans, as well as
health care and other employee benefits; (30) inability to protect
our intellectual property rights or claims of infringement of the
intellectual property rights of others; (31) inability to attract
and retain sales representatives; (32) provisions of laws and our
incorporation documents may delay, deter or prevent takeovers and
corporate combinations involving MetLife; (33) the effects of
business disruption or economic contraction due to disasters such
as terrorist attacks, cyberattacks, other hostilities, or natural
catastrophes, including any related impact on the value of our
investment portfolio, our disaster recovery systems, cyber- or
other information security systems and management continuity
planning; (34) the effectiveness of our programs and practices in
avoiding giving our associates incentives to take excessive risks;
and (35) other risks and uncertainties described from time to time
in MetLife, Inc.’s filings with the SEC.
MetLife, Inc. does not undertake any obligation to publicly
correct or update any forward-looking statement if MetLife, Inc.
later becomes aware that such statement is not likely to be
achieved. Please consult any further disclosures MetLife, Inc.
makes on related subjects in reports to the SEC.
MetLife,
Inc. Consolidated Statements of Operating Earnings Available
to Common Shareholders (Unaudited) For the Three
Months Ended For the Year Ended December 31, December 31,
2015 2014 2015 2014
(In millions) (In millions)
OPERATING REVENUES
Premiums $ 9,606 $ 10,267 $ 38,548 $ 39,022 Universal life and
investment-type product policy fees 2,237 2,336 9,113 9,541 Net
investment income 4,773 5,111 19,789 20,484 Other revenues
495 531 2,020 2,033
Total operating revenues 17,111 18,245
69,470 71,080
OPERATING EXPENSES Policyholder benefits and claims and
policyholder dividends 9,835 10,287 39,565 39,478 Interest credited
to policyholder account balances 1,330 1,409 5,334 5,661
Capitalization of DAC (987 ) (1,034 ) (3,837 ) (4,182 )
Amortization of DAC and VOBA 877 953 3,802 4,027 Amortization of
negative VOBA (71 ) (98 ) (326 ) (396 ) Interest expense on debt
302 293 1,200 1,178 Other expenses (1) 3,998
4,321 15,806 16,254 Total
operating expenses 15,284 16,131
61,544 62,020 Operating earnings before
provision for income tax 1,827 2,114 7,926 9,060 Provision for
income tax expense (benefit) (1) 402 500
2,326 2,378 Operating earnings
1,425 1,614 5,600 6,682 Preferred stock dividends 49
31 116 122
OPERATING
EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $ 1,376 $
1,583 $ 5,484 $ 6,560
Reconciliation to Net Income (Loss) and Financial
Statement Line Item Adjustments from GAAP Operating
earnings $ 1,425 $ 1,614 $ 5,600 $ 6,682 Adjustments from operating
earnings to income (loss) from continuing operations, net of income
tax: Net investment gains (losses) (2), (3) 62 230 597 (197 ) Net
derivative gains (losses) (3) (356 ) 185 38 1,317 Premiums (1 ) 5
(3 ) 45 Universal life and investment-type product policy fees 96
103 394 405 Net investment income 141 338 (508 ) 669 Other revenues
(9 ) 13 (37 ) (3 ) Policyholder benefits and claims and
policyholder dividends (3) (300 ) (320 ) (537 ) (1,000 ) Interest
credited to policyholder account balances (340 ) (539 ) (276 )
(1,282 ) Capitalization of DAC - - - 1 Amortization of DAC and VOBA
(3) (6 ) (5 ) (134 ) (105 ) Amortization of negative VOBA 8 11 35
46 Interest expense on debt 2 (4 ) (8 ) (38 ) Other expenses 11 (55
) (17 ) (114 ) Goodwill impairment - - - - Provision for income tax
(expense) benefit (3) 109 (49 ) 178
(87 ) Income (loss) from continuing operations, net
of income tax 842 1,527 5,322 6,339 Income (loss) from discontinued
operations, net of income tax - -
- (3 ) Net income (loss) 842 1,527 5,322 6,336
Less: Net income (loss) attributable to noncontrolling interests
8 6 12 27
Net income (loss) attributable to MetLife, Inc. 834 1,521 5,310
6,309 Less: Preferred stock dividends 49 31 116 122 Less: Preferred
stock repurchase premium - - 42
- Net income (loss) available to MetLife,
Inc.'s common shareholders $ 785 $ 1,490 $ 5,152
$ 6,187 See footnotes on last page.
MetLife, Inc. (Unaudited) For the Three
Months Ended For the Year Ended December 31, December 31, 2015 2014
2015 2014 Earnings Earnings Earnings
Earnings
Per Per Per
Per
Weighted Weighted Weighted
Weighted
Average Average Average
Average
Common Common Common
Common
Shares Shares Shares
Shares
Diluted (4) Diluted (4) Diluted (4) Diluted (4) (In millions,
except per share data) (In millions, except per share data)
Reconciliation to Net Income (Loss) Available to MetLife, Inc.'s
Common Shareholders Operating earnings available to common
shareholders, adjusted for total notable items $ 1,491 $ 1.33 $
1,652 $ 1.44 $ 6,382 $ 5.66 $ 6,470 $ 5.66 Add: Total notable items
(115 ) (0.10 ) (69 ) (0.06 )
(898 ) (0.80 ) 90 0.08 Operating
earnings available to common shareholders $ 1,376 $ 1.23 $ 1,583 $
1.38 $ 5,484 $ 4.86 $ 6,560 $ 5.74 Adjustments from
operating earnings available to common shareholders to net income
(loss) available to MetLife, Inc.'s common shareholders: Add: Net
investment gains (losses) (2) 62 0.06 230 0.20 597 0.53 (197 )
(0.17 ) Add: Net derivative gains (losses) (356 ) (0.32 ) 185 0.16
38 0.03 1,317 1.15 Add: Goodwill impairment - - - - - - - - Add:
Other adjustments to continuing operations (398 ) (0.36 ) (453 )
(0.39 ) (1,091 ) (0.96 ) (1,376 ) (1.20 ) Add: Provision for income
tax (expense) benefit 109 0.10 (49 ) (0.04 ) 178 0.16 (87 ) (0.08 )
Add: Income (loss) from discontinued operations, net of income tax
- - - - - - (3 ) - Less: Net income (loss) attributable to
noncontrolling interests 8 0.01 6 0.01 12 0.01 27 0.02 Less:
Preferred stock repurchase premium - -
- - 42 0.04
- - Net income (loss) available to
MetLife, Inc.'s common shareholders $ 785 $ 0.70 $
1,490 $ 1.30 $ 5,152 $ 4.57 $ 6,187
$ 5.42 Weighted average common shares
outstanding - diluted 1,121.4 1,147.3 1,128.3 1,142.5
For the Three Months Ended For the Year Ended December 31, December
31, 2015 2014 2015
2014 (In millions) (In millions)
Reconciliation to GAAP
Premiums, Fees and Other Revenues Total operating premiums,
fees and other revenues $ 12,338 $ 13,134 $ 49,681 $ 50,596 Add:
Adjustments to premiums, fees and other revenues 86
121 354 447 Total
premiums, fees and other revenues $ 12,424 $ 13,255 $
50,035 $ 51,043
Reconciliation to
GAAP Revenues and GAAP Expenses Total operating revenues
$ 17,111 $ 18,245 $ 69,470 $ 71,080 Add: Net investment gains
(losses) (2) 62 230 597 (197 ) Add: Net derivative gains (losses)
(356 ) 185 38 1,317 Add: Adjustments related to net investment
gains (losses) and net derivative gains (losses) (3 ) 6 5 20 Add:
Other adjustments to revenues 230 453
(159 ) 1,096 Total revenues $ 17,044 $
19,119 $ 69,951 $ 73,316 Total
operating expenses $ 15,284 $ 16,131 $ 61,544 $ 62,020 Add:
Adjustments related to net investment gains (losses) and net
derivative gains (losses) (27 ) (2 ) 15 35 Add: Goodwill impairment
- - - - Add: Other adjustments to expenses 652
914 922 2,457 Total expenses $
15,909 $ 17,043 $ 62,481 $ 64,512
See footnotes on last page.
MetLife, Inc.
(Unaudited) December 31,
Book Value (5)
2015 2014 Book value per common
share $ 60.00 $ 61.85 Less: Net unrealized investment gains
(losses), net of income tax 10.72 14.34 Less: Defined benefit plans
adjustment, net of income tax (1.87 ) (2.02 ) Book
value per common share, excluding AOCI other than FCTA $ 51.15 $
49.53 Less: Goodwill, net of income tax 8.48 8.62 Less: VODA and
VOCRA, net of income tax 0.45 0.55 Book
value per common share - tangible common stockholders' equity $
42.22 $ 40.36 Common shares outstanding, end
of period (In millions) 1,098.0 1,131.9 For the Three
Months Ended For the Year Ended December 31, (6) December 31,
Return on Equity 2015 2014 2015
2014 Operating return on MetLife, Inc.'s: Common stockholders'
equity 8.2 % 9.1 % 8.0 % 10.0 % Common stockholders' equity,
excluding AOCI other than FCTA 9.7 % 11.3 % 9.7 % 12.0 % Common
stockholders' equity, excluding AOCI other than FCTA, adjusted for
total notable items 10.4 % 11.9 % 11.3 % 11.9 % Tangible common
stockholders' equity 11.9 % 14.1 % 11.9 % 15.2 % Tangible common
stockholders' equity, adjusted for total notable items 12.7 % 14.8
% 13.8 % 15.0 % Return on MetLife, Inc.'s: Common
stockholders' equity 4.7 % 8.6 % 7.5 % 9.4 % Common stockholders'
equity, excluding AOCI other than FCTA 5.6 % 10.7 % 9.1 % 11.3 %
Tangible common stockholders' equity 6.8 % 13.3 % 11.2 % 14.3 %
Operating Return on Allocated Equity: Americas 12.6 % 15.7 %
Asia 10.1 % 11.6 % EMEA 6.5 % 7.4 % Operating Return on
Allocated Tangible Equity: Americas 14.2 % 17.9 % Asia 17.4 % 20.1
% EMEA 12.2 % 14.2 % Return on Allocated Equity: Americas
7.3 % 15.9 % Asia 8.1 % 3.1 % EMEA 8.8 % 6.0 % Return on
Allocated Tangible Equity: Americas 8.3 % 18.1 % Asia 14.0 % 5.4 %
EMEA 16.3 % 11.7 % See footnotes on last page.
MetLife, Inc. Condensed Reconciliation of Net Cash
Provided by Operating Activities to Free Cash Flow Free Cash
Flow of All Holding Companies (Unaudited)
For the Years Ended December 31, 2015
2014 (In billions, except ratios) MetLife,
Inc. (parent company only) net cash provided by operating
activities $ 1.6 $ 2.6 Adjustments from net cash provided by
operating activities to free cash flow: Add: Incremental debt to be
at or below target leverage ratios 1.8 0.4 Add: Remaining
adjustments from net cash provided by operating activities to free
cash flow (7) 0.1 (0.3 ) MetLife, Inc. (parent
company only) free cash flow 3.5 2.7 Other MetLife, Inc. holding
companies free cash flow (8) 0.5 0.2
Free cash flow of all holding companies $ 4.0 $ 2.9
Ratio of free cash flow to operating earnings
available to common shareholders: Free cash flow of all holding
companies $ 4.0 $ 2.9 Consolidated operating earnings available to
common shareholders (9) $ 5.5 $ 6.6 Ratio of free cash flow of all
holding companies to consolidated operating earnings available to
common shareholders (9) 73 % 44 %
Ratio of net cash
provided by operating activities to consolidated net income (loss)
available to MetLife, Inc.'s common shareholders: MetLife, Inc.
(parent company only) net cash provided by operating activities $
1.6 $ 2.6 Consolidated net income (loss) available to MetLife,
Inc.'s common shareholders (10) $ 5.2 $ 6.2 Ratio of net cash
provided by operating activities (parent company only) to
consolidated net income (loss) available to MetLife, Inc.'s common
shareholders (10), (11) 31 % 42 % See footnotes on last
page.
MetLife, Inc. Reconciliations to Net Income (Loss)
Available to Common Shareholders (Unaudited) For
the Three Months Ended For the Year Ended December 31, December 31,
2015 2014 2015
2014 (In millions) (In millions) Total Americas Operations:
Operating earnings available to common shareholders, adjusted for
total notable items $ 1,289 $ 1,457 $ 5,391 $ 5,501
Add: Total notable items
(57 ) 11 (72 ) 219
Operating earnings available to common shareholders 1,232 1,468
5,319 5,720 Add: Net investment gains (losses) (2) (90 ) 82 399
(448 ) Add: Net derivative gains (losses) (165 ) 310 (100 ) 1,381
Add: Other adjustments to continuing operations (405 ) (348 ) (943
) (1,192 ) Add: Provision for income tax (expense) benefit 144 (25
) 120 31 Add: Income (loss) from discontinued operations, net of
income tax - - - (3 ) Less: Net income (loss) attributable to
noncontrolling interests 1 2 11
13 Net income (loss) available to MetLife,
Inc.'s common shareholders $ 715 $ 1,485 $ 4,784
$ 5,476 Retail: Operating earnings available
to common shareholders, adjusted for total notable items $ 646 $
721 $ 2,604 $ 2,661 Add: Total notable items (64 ) (3
) (156 ) 155 Operating earnings available to
common shareholders 582 718 2,448 2,816 Add: Net investment gains
(losses) (112 ) (32 ) 35 (7 ) Add: Net derivative gains (losses)
(95 ) (15 ) (159 ) 564 Add: Other adjustments to continuing
operations (310 ) (150 ) (609 ) (671 ) Add: Provision for income
tax (expense) benefit 182 71 257 42 Add: Income (loss) from
discontinued operations, net of income tax - -
- (2 ) Net income (loss) available to
MetLife, Inc.'s common shareholders $ 247 $ 592 $
1,972 $ 2,742 Group, Voluntary & Worksite
Benefits: Operating earnings available to common shareholders,
adjusted for total notable items $ 225 $ 237 $ 913 $ 855 Add: Total
notable items (11 ) 1 (2 ) 23
Operating earnings available to common shareholders 214 238
911 878 Add: Net investment gains (losses) (55 ) (29 ) (33 ) (39 )
Add: Net derivative gains (losses) (23 ) 232 177 525 Add: Other
adjustments to continuing operations (46 ) (45 ) (171 ) (167 ) Add:
Provision for income tax (expense) benefit 43
(55 ) 9 (111 ) Net income (loss) available to
MetLife, Inc.'s common shareholders $ 133 $ 341 $ 893
$ 1,086 Corporate Benefit Funding: Operating
earnings available to common shareholders, adjusted for total
notable items $ 295 $ 360 $ 1,385 $ 1,389 Add: Total notable items
(9 ) - 2 69
Operating earnings available to common shareholders 286 360 1,387
1,458 Add: Net investment gains (losses) (2) 2 124 315 (432 ) Add:
Net derivative gains (losses) (56 ) 96 17 352 Add: Other
adjustments to continuing operations (28 ) (57 ) (91 ) (112 ) Add:
Provision for income tax (expense) benefit 28 (57 ) (84 ) 52 Add:
Income (loss) from discontinued operations, net of income tax
- - - (1 ) Net
income (loss) available to MetLife, Inc.'s common shareholders $
232 $ 466 $ 1,544 $ 1,317 Latin
America: Operating earnings available to common shareholders,
adjusted for total notable items $ 123 $ 139 $ 489 $ 596 Add: Total
notable items 27 13 84
(28 ) Operating earnings available to common shareholders
150 152 573 568 Add: Net investment gains (losses) 75 19 82 30 Add:
Net derivative gains (losses) 9 (3 ) (135 ) (60 ) Add: Other
adjustments to continuing operations (21 ) (96 ) (72 ) (242 ) Add:
Provision for income tax (expense) benefit (109 ) 16 (62 ) 48 Less:
Net income (loss) attributable to noncontrolling interests 1
2 11 13 Net income
(loss) available to MetLife, Inc.'s common shareholders $ 103
$ 86 $ 375 $ 331 Asia: Operating
earnings available to common shareholders, adjusted for total
notable items $ 314 $ 317 $ 1,344 $ 1,294 Add: Total notable items
(24 ) 23 36 13
Operating earnings available to common shareholders 290 340 1,380
1,307 Add: Net investment gains (losses) 51 137 501 512 Add: Net
derivative gains (losses) (67 ) (410 ) 67 (532 ) Add: Other
adjustments to continuing operations (7 ) (72 ) (120 ) (122 ) Add:
Provision for income tax (expense) benefit (28 ) 99 (21 ) 35 Less:
Net income (loss) attributable to noncontrolling interests 6
4 4 19 Net income
(loss) available to MetLife, Inc.'s common shareholders $ 233
$ 90 $ 1,803 $ 1,181 EMEA:
Operating earnings available to common shareholders, adjusted for
total notable items $ 54 $ 50 $ 234 $ 261 Add: Total notable items
- 14 6 24
Operating earnings available to common shareholders 54 64 240 285
Add: Net investment gains (losses) 5 (1 ) 27 (17 ) Add: Net
derivative gains (losses) 19 11 40 114 Add: Other adjustments to
continuing operations 10 5 3 36 Add: Provision for income tax
(expense) benefit (15 ) (28 ) (22 ) (88 ) Less: Net income (loss)
attributable to noncontrolling interests - (1
) 4 1 Net income (loss) available to
MetLife, Inc.'s common shareholders $ 73 $ 52 $ 284
$ 329 Corporate & Other: Operating
earnings available to common shareholders, adjusted for total
notable items $ (166 ) $ (172 ) $ (587 ) $ (586 ) Add: Total
notable items (34 ) (117 ) (868 ) (166
) Operating earnings available to common shareholders (1) (200 )
(289 ) (1,455 ) (752 ) Add: Net investment gains (losses) 96 12
(330 ) (244 ) Add: Net derivative gains (losses) (143 ) 274 31 354
Add: Other adjustments to continuing operations 4 (38 ) (31 ) (98 )
Add: Provision for income tax (expense) benefit 8 (95 ) 101 (65 )
Less: Net income (loss) attributable to noncontrolling interests 1
1 (7 ) (6 ) Less: Preferred stock repurchase premium -
- 42 - Net income
(loss) available to MetLife, Inc.'s common shareholders $ (236 ) $
(137 ) $ (1,719 ) $ (799 ) See footnotes on last page.
MetLife, Inc. GAAP Consolidated Statements of
Operations (Unaudited) For the Three Months Ended
For the Year Ended December 31, December 31, 2015
2014 2015 2014 (In
millions) (In millions)
Revenues Premiums $ 9,605 $ 10,272 $
38,545 $ 39,067 Universal life and investment-type product policy
fees 2,333 2,439 9,507 9,946 Net investment income 4,914 5,449
19,281 21,153 Other revenues 486 544 1,983 2,030 Net investment
gains (losses): Other-than-temporary impairments on fixed maturity
securities (33 ) (3 ) (84 ) (43 ) Other-than-temporary impairments
on fixed maturity securities transferred to other comprehensive
income (loss) (10 ) (1 ) (6 ) (17 ) Other net investment gains
(losses) (2) 105 234 687
(137 ) Total net investment gains (losses) 62 230 597 (197 )
Net derivative gains (losses) (356 ) 185
38 1,317 Total revenues 17,044
19,119 69,951 73,316
Expenses Policyholder benefits and claims
9,772 10,278 38,714 39,102 Interest credited to policyholder
account balances 1,670 1,948 5,610 6,943 Policyholder dividends 363
329 1,388 1,376 Other expenses (1) 4,104 4,488
16,769 17,091 Total expenses
15,909 17,043 62,481
64,512 Income (loss) from continuing
operations before provision for income tax 1,135 2,076 7,470 8,804
Provision for income tax expense (benefit) (1) 293
549 2,148 2,465 Income
(loss) from continuing operations, net of income tax 842 1,527
5,322 6,339 Income (loss) from discontinued operations, net of
income tax - - -
(3 ) Net income (loss) 842 1,527 5,322 6,336 Less: Net income
(loss) attributable to noncontrolling interests 8
6 12 27 Net income (loss)
attributable to MetLife, Inc. 834 1,521 5,310 6,309 Less: Preferred
stock dividends 49 31 116 122 Preferred stock repurchase premium
- - 42 -
Net income (loss) available to MetLife, Inc.'s common shareholders
$ 785 $ 1,490 $ 5,152 $ 6,187
(1) The year ended December 31, 2015 includes a non-cash
charge of $792 million, net of tax, related to an uncertain tax
position comprised of a $557 million charge included in provision
for income tax expense (benefit) and a $362 million charge, $235
million net of tax, included in other expenses. (2) The year
ended December 31, 2014 includes a pre-tax net investment loss of
$633 million related to the sale of MetLife, Inc.'s wholly-owned
subsidiary, MetLife Assurance Limited. (3) The impacts of
asymmetrical and non-economic accounting for the three months ended
December 31, 2015 are as follows: i) Net investment gains (losses)
- $73 million; ii) Net derivative gains (losses) - ($578) million;
iii) Policyholder benefits and claims and policyholder dividends -
$6 million; iv) Amortization of DAC and VOBA - $32 million; and v)
Provision for income tax (expense) benefit - $162 million.
(4) Operating earnings available to common shareholders is
calculated on a stand alone basis and may not equal (i) the sum of
operating earnings available to common shareholders, adjusted for
total notable items; and (ii) total notable items. (5) Book
values exclude $2,066 million and $2,043 million of equity related
to preferred stock at December 31, 2015 and 2014, respectively.
(6) Annualized using quarter-to-date results. (7)
Remaining adjustments include: (i) capital contributions to
subsidiaries; (ii) returns of capital from subsidiaries; (iii)
repayments on and (issuances of) loans to subsidiaries, net; and
(iv) investment portfolio changes and other, net. (8)
Components include: (i) dividends and returns of capital from
subsidiaries; (ii) capital contributions from MetLife, Inc.; (iii)
capital contributions to subsidiaries; (iv) repayments on and
(issuances of) loans to subsidiaries, net; (v) other expenses; and
(vi) investment portfolio changes and other, net. (9)
Consolidated operating earnings available to common shareholders
for 2015 includes a non-cash charge of $0.8 billion, net of income
tax, related to an uncertain tax position. Excluding this charge
from the denominator of the ratio, the adjusted free cash flow
ratio would be 63%. (10) Consolidated net income (loss)
available to MetLife, Inc.'s common shareholders for 2015 includes
a non-cash charge of $0.8 billion, net of income tax, related to an
uncertain tax position. Excluding this charge from the denominator
of the ratio, this ratio, as adjusted, would be 27%. (11)
Including the free cash flow of other MetLife, Inc. holding
companies of $0.5 billion and $0.2 billion for the years ended
December 31, 2015 and 2014, respectively, in the numerator of the
ratio, this ratio, as adjusted, would be 40% and 46%, respectively.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160203006380/en/
MetLife, Inc.Media:John Calagna, 212-578-6252orInvestors:Edward
Spehar, 212-578-7888
MetLife (NYSE:MET)
Historical Stock Chart
From Mar 2024 to Apr 2024
MetLife (NYSE:MET)
Historical Stock Chart
From Apr 2023 to Apr 2024
