EX-99.2 3 ex992qfsq118doc.htm EXHIBIT 99.2 Exhibit
Exhibit 99.2


 image0a29.jpg
First Quarter
Financial Supplement
March 31, 2018
1



 
 
 
 
METLIFE
TABLE OF CONTENTS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
METLIFE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As used in this QFS, “MetLife,” “we” and “our” refer to MetLife, Inc., a Delaware corporation incorporated in 1999, its subsidiaries and affiliates. In this QFS, MetLife presents certain measures of its performance that are not calculated in accordance with GAAP. We believe that these non-GAAP financial measures enhance the understanding of our performance by highlighting the results of operations and the underlying profitability drivers of our business. See Appendix for definitions of non-GAAP financial measures and other financial disclosures.


 
GAAP INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
 
 
 
 
 
 
 
For the Three Months Ended
 
For the Year-to-Date Period Ended
 
Unaudited (In millions)
 
March 31, 2017
 
June 30, 2017
 
September 30, 2017
 
December 31, 2017
 
March 31, 2018
 
 
March 31, 2017
 
March 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Premiums
 
$
8,965

 
$
9,580

 
$
10,876

 
$
9,571

 
$
9,178

 
 
$
8,965

 
$
9,178

 
 
Universal life and investment-type product policy fees
 
1,360

 
1,364

 
1,428

 
1,358

 
1,392

 
 
1,360

 
1,392

 
 
Net investment income
 
4,421

 
4,193

 
4,295

 
4,454

 
3,745

 
 
4,421

 
3,745

 
 
Other revenues
 
342

 
292

 
301

 
406

 
474

 
 
342

 
474

 
 
Net investment gains (losses)
 
88

 
104

 
(606
)
 
106

 
(333
)
 
 
88

 
(333
)
 
 
Net derivative gains (losses)
 
(212
)
 
(200
)
 
(123
)
 
(55
)
 
349

 
 
(212
)
 
349

 
 
Total revenues
 
14,964

 
15,333

 
16,171

 
15,840

 
14,805

 
 
14,964

 
14,805

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Expenses
 

 

 

 

 

 
 

 

 
 
Policyholder benefits and claims
 
8,863

 
9,427

 
10,728

 
9,295

 
8,718

 
 
8,863

 
8,718

 
 
Interest credited to policyholder account balances
 
1,451

 
1,292

 
1,338

 
1,526

 
769

 
 
1,451

 
769

 
 
Policyholder dividends
 
310

 
313

 
302

 
306

 
297

 
 
310

 
297

 
 
Capitalization of DAC
 
(713
)
 
(744
)
 
(761
)
 
(784
)
 
(796
)
 
 
(713
)
 
(796
)
 
 
Amortization of DAC and VOBA
 
663

 
656

 
626

 
736

 
693

 
 
663

 
693

 
 
Amortization of negative VOBA
 
(43
)
 
(38
)
 
(32
)
 
(27
)
 
(22
)
 
 
(43
)
 
(22
)
 
 
Interest expense on debt
 
283

 
284

 
284

 
278

 
286

 
 
283

 
286

 
 
Other expenses
 
3,078

 
3,125

 
3,201

 
3,549

 
3,204

 
 
3,078

 
3,204

 
 
Total expenses
 
13,892

 
14,315

 
15,686

 
14,879

 
13,149

 
 
13,892

 
13,149

 
 
Income (loss) from continuing operations before provision for income tax
 
1,072

 
1,018

 
485

 
961

 
1,656

 
 
1,072

 
1,656

 
 
Provision for income tax expense (benefit)
 
120

 
162

 
(398
)
 
(1,354
)
 
399

 
 
120

 
399

 
 
Income (loss) from continuing operations, net of income tax
 
952

 
856

 
883

 
2,315

 
1,257

 
 
952

 
1,257

 
 
Income (loss) from discontinued operations, net of income tax
 
(76
)
 
58

 
(968
)
 
—

 
—

 
 
(76
)
 
—

 
 
Net income (loss)
 
876

 
914

 
(85
)
 
2,315

 
1,257

 
 
876

 
1,257

 
 
Less: Net income (loss) attributable to noncontrolling interests
 
3

 
3

 
6

 
(2
)
 
4

 
 
3

 
4

 
 
Net income (loss) attributable to MetLife, Inc.
 
873

 
911

 
(91
)
 
2,317

 
1,253

 
 
873

 
1,253

 
 
Less: Preferred stock dividends
 
6

 
46

 
6

 
45

 
6

 
 
6

 
6

 
 
Net income (loss) available to MetLife, Inc.'s common shareholders
 
$
867

 
$
865

 
$
(97
)
 
$
2,272

 
$
1,247

 
 
$
867

 
$
1,247

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Premiums, Fees and Other Revenues
 
$
10,667

 
$
11,236

 
$
12,605

 
$
11,335

 
$
11,044

 
 
$
10,667

 
$
11,044

 

2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
METLIFE
CORPORATE OVERVIEW
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the Three Months Ended
 
Unaudited (In millions, except per share data)
 
March 31, 2017

 
 
June 30, 2017

 
 
September 30, 2017

 
 
December 31, 2017

 
 
March 31, 2018

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income (loss) available to MetLife, Inc.'s common shareholders
 
$
867

 
 
$
865

 
 
$
(97
)
 
 
$
2,272

 
 
$
1,247

 
 
Adjustments from net income (loss) available to MetLife, Inc.'s common shareholders to adjusted earnings available to common shareholders:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Less: Net investment gains (losses)
 
88

 
 
104

 
 
(606
)
 
 
106

 
 
(333
)
 
 
Less: Net derivative gains (losses)
 
(212
)
 
 
(200
)
 
 
(123
)
 
 
(55
)
 
 
349

 
 
Less: Goodwill impairment
 
—

 
 
—

 
 
—

 
 
—

 
 
—

 
 
Less: Other adjustments to continuing operations (1)
 
(491
)
 
 
(341
)
 
 
(494
)
 
 
(296
)
 
 
(146
)
 
 
Less: Provision for income tax (expense) benefit
 
240

 
 
126

 
 
985

 
 
1,837

 
 
(42
)
 
 
Less: Income (loss) from discontinued operations, net of income tax
 
(76
)
 
 
58

 
 
(968
)
 
 
—

 
 
—

 
 
Add: Net income (loss) attributable to noncontrolling interests
 
3

 
 
3

 
 
6

 
 
(2
)
 
 
4

 
 
Adjusted earnings available to common shareholders
 
$
1,321

 
 
$
1,121

 
 
$
1,115

 
 
$
678

 
 
$
1,423

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income (loss) available to MetLife, Inc.'s common shareholders per common share - diluted
 
$
0.79

 
 
$
0.80

 
 
$
(0.09
)
 
 
$
2.14

 
 
$
1.19

 
 
Less: Net investment gains (losses)
 
0.08

 
 
0.10

 
 
(0.57
)
 
 
0.10

 
 
(0.32
)
 
 
Less: Net derivative gains (losses)
 
(0.19
)
 
 
(0.19
)
 
 
(0.12
)
 
 
(0.05
)
 
 
0.33

 
 
Less: Goodwill impairment
 
—

 
 
—

 
 
—

 
 
—

 
 
—

 
 
Less: Other adjustments to continuing operations
 
(0.45
)
 
 
(0.32
)
 
 
(0.45
)
 
 
(0.28
)
 
 
(0.14
)
 
 
Less: Provision for income tax (expense) benefit
 
0.22

 
 
0.12

 
 
0.92

 
 
1.73

 
 
(0.04
)
 
 
Less: Income (loss) from discontinued operations, net of income tax
 
(0.07
)
 
 
0.05

 
 
(0.90
)
 
 
—

 
 
—

 
 
Add: Net income (loss) attributable to noncontrolling interests
 
—

 
 
—

 
 
0.01

 
 
—

 
 
—

 
 
Adjusted earnings available to common shareholders per common share - diluted
 
$
1.20

 
 
$
1.04

 
 
$
1.04

 
 
$
0.64

 
 
$
1.36

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the Three Months Ended
 
Unaudited (In millions, except per share data)
 
March 31, 2017

 
 
June 30, 2017

 
 
September 30, 2017

 
 
December 31, 2017

 
 
March 31, 2018

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notable items impacting adjusted earnings available to common shareholders:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Variable investment income
 
$
15

 
 
$
—

 
 
$
—

 
 
$
—

 
 
$
—

 
 
Catastrophe experience and prior year development, net
 
(45
)
 
 
—

 
 
(10
)
 
 
7

 
 
—

 
 
Actuarial assumption review and other insurance adjustments
 
76

 
 
(28
)
 
 
125

 
 
(110
)
 
 
62

 
 
Litigation reserves & settlement costs
 
(21
)
 
 
—

 
 
—

 
 
(55
)
 
 
—

 
 
Expense initiative costs

 
(21
)
 
 
(22
)
 
 
(17
)
 
 
(42
)
 
 
(34
)
 
 
Other expense-related items (2)
 
—

 
 
(36
)
 
 
—

 
 
—

 
 
—

 
 
Tax adjustments
 
—

 
 
27

 
 
(167
)
 
 
(298
)
 
 
—

 
 
Total notable items (3)
 
$
4

 
 
$
(59
)
 
 
$
(69
)
 
 
$
(498
)
 
 
$
28

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Notable items impacting adjusted earnings available to common shareholders per common share - diluted:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Variable investment income
 
$
0.01

 
 
$
—

 
 
$
—

 
 
$
—

 
 
$
—

 
 
Catastrophe experience and prior year development, net
 
$
(0.04
)
 
 
$
—

 
 
$
(0.01
)
 
 
$
0.01

 
 
$
—

 
 
Actuarial assumption review and other insurance adjustments
 
$
0.07

 
 
$
(0.03
)
 
 
$
0.12

 
 
$
(0.10
)
 
 
$
0.06

 
 
Litigation reserves & settlement costs
 
$
(0.02
)
 
 
$
—

 
 
$
—

 
 
$
(0.05
)
 
 
$
—

 
 
Expense initiative costs

 
$
(0.02
)
 
 
$
(0.02
)
 
 
$
(0.02
)
 
 
$
(0.04
)
 
 
$
(0.03
)
 
 
Other expense-related items (2)

 
$
—

 
 
$
(0.03
)
 
 
$
—

 
 
$
—

 
 
$
—

 
 
Tax adjustments
 
$
—

 
 
$
0.02

 
 
$
(0.16
)
 
 
$
(0.28
)
 
 
$
—

 
 
Total notable items (3)
 
$
—

 
 
$
(0.05
)
 
 
$
(0.06
)
 
 
$
(0.47
)
 
 
$
0.03

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the Three Months Ended
 
Unaudited (In millions)
 
March 31, 2017

 
 
June 30, 2017

 
 
September 30, 2017

 
 
December 31, 2017

 
 
March 31, 2018

 
 
Weighted average common shares outstanding - diluted
 
1,098.7

 
 
1,082.1

 
 
1,071.5

 
 
1,062.1

 
 
1,044.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) See Page A-1 for further detail.
 
 
(2) For the three months ended June 30, 2017, $36 million in lease impairments are included.
 
 
(3) These notable items represent a positive (negative) impact to adjusted earnings available to common shareholders and adjusted earnings available to common shareholders per common share - diluted. The per share data for each notable item is calculated on a standalone basis and may not sum to total notable items. Notable Items reflect the unexpected impact of events that affect the Company’s results, but that were unknown and that the Company could not anticipate when it devised its Business Plan. Notable Items also include certain items regardless of the extent anticipated in the Business Plan to help investors have a better understanding of Company results and to evaluate and forecast those results.
 


3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
METLIFE
CORPORATE OVERVIEW (CONTINUED)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unaudited
 
March 31, 2017

 
June 30, 2017

 
September 30, 2017

 
December 31, 2017

 
March 31, 2018

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Book value per common share (1)
 
$
61.14

 
$
63.63

 
$
52.09

 
$
54.24

 
$
52.49

 
 
Book value per common share, excluding AOCI other than FCTA (1)
 
$
50.75

 
$
51.29

 
$
41.21

 
$
42.92

 
$
43.36

 
 
Book value per common share - common stockholders' equity, excluding net equity of assets and liabilities of disposed subsidiary (excludes AOCI other than FCTA) (1)
 
$
35.55


$
37.52


$
41.21


$
42.92


$
43.36

 
 
Book value per common share - tangible common stockholders' equity (excludes AOCI other than FCTA) (1)
 
$
41.88

 
$
42.26

 
$
32.18

 
$
33.63

 
$
33.80

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the Three Months Ended
 
Unaudited
 
March 31, 2017

 
June 30, 2017

 
September 30, 2017

 
December 31, 2017

 
March 31, 2018

 
 
Return on MetLife, Inc.'s (2):
 
 
 
 
 
 
 
 
 
 
 
 
Common stockholders' equity
 
5.3
%
 
5.2
%
 
(0.6
)%
 
16.3
%
 
9.0
%
 
 
Common stockholders' equity, excluding AOCI other than FCTA
 
6.3
%
 
6.3
%
 
(0.8
)%
 
20.6
%
 
11.2
%
 
 
Tangible common stockholders' equity (excludes AOCI other than FCTA)
 
7.8
%
 
7.8
%
 
(0.9
)%
 
26.4
%
 
14.4
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted return on MetLife, Inc.'s (2):
 
 
 
 
 
 
 
 
 
 
 
 
Common stockholders' equity
 
8.0
%
 
6.7
%
 
7.3
 %
 
4.9
%
 
10.3
%
 
 
Common stockholders' equity, excluding AOCI other than FCTA
 
9.6
%
 
8.2
%
 
9.1
 %
 
6.1
%
 
12.8
%
 
 
Common stockholders' equity, excluding net equity of assets and liabilities of disposed subsidiary (excludes AOCI other than FCTA)
 
13.8
%

11.4
%

10.7
 %

6.1
%

12.8
%
 
 
Tangible common stockholders' equity (excludes AOCI other than FCTA)
 
11.7
%
 
10.0
%
 
11.4
 %
 
8.0
%
 
16.4
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the Three Months Ended
 
Unaudited (In millions)
 
March 31, 2017

 
June 30, 2017

 
September 30, 2017

 
December 31, 2017

 
March 31, 2018

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common shares outstanding, beginning of period
 
1,095.5

 
1,081.3

 
1,063.5

 
1,054.3

 
1,043.6

 
 
Share repurchases
 
(16.0
)
 
(18.3
)
 
(10.4
)
 
(11.9
)
 
(21.4
)
 
 
Newly issued shares
 
1.8

 
0.5

 
1.2

 
1.2

 
1.9

 
 
Common shares outstanding, end of period
 
1,081.3

 
1,063.5

 
1,054.3

 
1,043.6

 
1,024.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average common shares outstanding - basic
 
1,090.4

 
1,074.0

 
1,062.3

 
1,052.5

 
1,035.9

 
 
Dilutive effect of the exercise or issuance of stock-based awards
 
8.3

 
8.1

 
9.2

 
9.6

 
8.5

 
 
Weighted average common shares outstanding - diluted
 
1,098.7

 
1,082.1

 
1,071.5

 
1,062.1

 
1,044.4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
MetLife Policyholder Trust Shares
 
161.3

 
159.1

 
157.3

 
155.2

 
153.5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Calculated using common shares outstanding, end of period.
 
 
(2) Annualized using quarter-to-date results. See page A-4 for the return on MetLife, Inc.'s common stockholders' equity and adjusted return on MetLife, Inc.'s common stockholders' equity for the year ended December 31, 2017.
 


4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
METLIFE
KEY ADJUSTED EARNINGS STATEMENT LINE ITEMS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the Three Months Ended
 
For the Year-to-Date Period Ended
 
Unaudited (In millions)
 
March 31, 2017

 
June 30, 2017

 
September 30, 2017

 
December 31, 2017

 
March 31, 2018

 
 
March 31, 2017

 
March 31, 2018

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total revenues
 
$
14,964

 
$
15,333

 
$
16,171

 
$
15,840

 
$
14,805

 
 
$
14,964

 
$
14,805

 
 
Less: Net investment (gains) losses
 
88

 
104

 
(606
)
 
106

 
(333
)
 
 
88

 
(333
)
 
 
Less: Net derivative (gains) losses
 
(212
)
 
(200
)
 
(123
)
 
(55
)
 
349

 
 
(212
)
 
349

 
 
Less: Adjustments related to net investment (gains) losses and net derivative (gains) losses
 
1

 
9

 
4

 
(2
)
 
(5
)
 
 
1

 
(5
)
 
 
Less: Other adjustments to revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
GMIB fees
 
31

 
31

 
32

 
31

 
30

 
 
31

 
30

 
 
Investment hedge adjustments
 
(139
)
 
(114
)
 
(97
)
 
(85
)
 
(110
)
 
 
(139
)
 
(110
)
 
 
Operating joint venture adjustments
 
(1
)
 
1

 
—

 
—

 
1

 
 
(1
)
 
1

 
 
Unit-linked contract income
 
416

 
214

 
234

 
436

 
(353
)
 
 
416

 
(353
)
 
 
Securitization entities income
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Settlement of foreign currency earnings hedges
 
6

 
5

 
5

 
6

 
4

 
 
6

 
4

 
 
Certain partnership distributions
 
—

 
—

 
—

 
—

 
(12
)
 
 
—

 
(12
)
 
 
TSA fees
 
—

 
—

 
—

 
—

 
79

 
 
—

 
79

 
 
Divested businesses
 
(280
)
 
(228
)
 
(54
)
 
—

 
7

 
 
(280
)
 
7

 
 
Total adjusted revenues
 
$
15,054

 
$
15,511

 
$
16,776

 
$
15,403

 
$
15,148

 
 
$
15,054

 
$
15,148

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the Three Months Ended
 
For the Year-to-Date Period Ended
 
Unaudited (In millions)
 
March 31, 2017

 
June 30, 2017

 
September 30, 2017

 
December 31, 2017

 
March 31, 2018

 
 
March 31, 2017

 
March 31, 2018

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net investment income
 
$
4,421

 
$
4,193

 
$
4,295

 
$
4,454

 
$
3,745

 
 
$
4,421

 
$
3,745

 
 
Less: Adjustments to net investment income:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment hedge adjustments
 
(139
)
 
(114
)
 
(97
)
 
(85
)
 
(110
)
 
 
(139
)
 
(110
)
 
 
Operating joint venture adjustments
 
(1
)
 
1

 
—

 
—

 
1

 
 
(1
)
 
1

 
 
Unit-linked contract income
 
416

 
214

 
234

 
436

 
(353
)
 
 
416

 
(353
)
 
 
Securitization entities income
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Certain partnership distributions

 
—

 
—

 
—

 
—

 
(12
)
 
 
—

 
(12
)
 
 
Divested businesses
 
(27
)
 
(21
)
 
2

 
—

 
—

 
 
(27
)
 
—

 
 
Net investment income, as reported on an adjusted basis
 
$
4,172

 
$
4,113

 
$
4,156

 
$
4,103

 
$
4,219

 
 
$
4,172

 
$
4,219

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the Three Months Ended
 
For the Year-to-Date Period Ended
 
Unaudited (In millions)
 
March 31, 2017

 
June 30, 2017

 
September 30, 2017

 
December 31, 2017

 
March 31, 2018

 
 
March 31, 2017

 
March 31, 2018

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total premiums, fees and other revenues
 
$
10,667

 
$
11,236

 
$
12,605

 
$
11,335

 
$
11,044

 
 
$
10,667

 
$
11,044

 
 
Less: Adjustments to premiums, fees and other revenues:
 


 


 


 


 


 
 
 
 
 
 
 
Unearned revenue adjustments
 
1

 
9

 
4

 
(2
)
 
(5
)
 
 
1

 
(5
)
 
 
GMIB fees
 
31

 
31

 
32

 
31

 
30

 
 
31

 
30

 
 
Settlement of foreign currency earnings hedges
 
6

 
5

 
5

 
6

 
4

 
 
6

 
4

 
 
TSA fees
 
—

 
—

 
—

 
—

 
79

 
 
—

 
79

 
 
Divested businesses
 
(253
)
 
(207
)
 
(56
)
 
—

 
7

 
 
(253
)
 
7

 
 
Total adjusted premiums, fees and other revenues
 
$
10,882

 
$
11,398

 
$
12,620

 
$
11,300

 
$
10,929

 
 
$
10,882

 
$
10,929

 
 
Total adjusted premiums, fees and other revenues, on a constant currency basis
 
$
11,088

 
$
11,516

 
$
12,692

 
$
11,418

 
$
10,929

 
 
 
 
 
 

5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
METLIFE
KEY ADJUSTED EARNINGS STATEMENT LINE ITEMS (CONTINUED)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the Three Months Ended
 
For the Year-to-Date Period Ended
 
Unaudited (In millions)
March 31, 2017

 
June 30, 2017

 
September 30, 2017

 
December 31, 2017

 
March 31, 2018

 
 
March 31, 2017

 
March 31, 2018

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total expenses
$
13,892

 
$
14,315

 
$
15,686

 
$
14,879

 
$
13,149

 
 
$
13,892

 
$
13,149

 
 
Less: Adjustments related to net investment (gains) losses and net derivative (gains) losses
(2
)
 
(28
)
 
(2
)
 
(28
)
 
(14
)
 
 
(2
)
 
(14
)
 
 
Less: Goodwill impairment
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Less: Other adjustments to expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Inflation and pass through adjustments
21

 
53

 
(28
)
 
(77
)
 
41

 
 
21

 
41

 
 
GMIB costs and amortization of DAC and VOBA related to GMIB fees and GMIB costs
60

 
61

 
138

 
93

 
15

 
 
60

 
15

 
 
Market value adjustments and amortization of DAC, VOBA and negative VOBA related to market value adjustments
3

 
2

 
6

 
2

 
—

 
 
3

 
—

 
 
PAB hedge adjustments
(1
)
 
(1
)
 
(1
)
 
—

 
(1
)
 
 
(1
)
 
(1
)
 
 
Unit-linked contract costs
402

 
213

 
229

 
420

 
(347
)
 
 
402

 
(347
)
 
 
Securitization entities debt expense
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Noncontrolling interest
(4
)
 
(3
)
 
(10
)
 
5

 
(7
)
 
 
(4
)
 
(7
)
 
 
Regulatory implementation costs
—

 
—

 
—

 
—

 
1

 
 
—

 
1

 
 
Acquisition, integration and other costs
8

 
14

 
20

 
23

 
11

 
 
8

 
11

 
 
TSA fees
—

 
—


—


—


79


 
—


79


 
Divested businesses
38

 
(52
)
 
266

 
244

 
9

 
 
38

 
9

 
 
Total adjusted expenses
$
13,367

 
$
14,056

 
$
15,068

 
$
14,197

 
$
13,362

 
 
$
13,367

 
$
13,362

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the Three Months Ended
 
For the Year-to-Date Period Ended
 
Unaudited (In millions)
March 31, 2017

 
June 30, 2017

 
September 30, 2017

 
December 31, 2017

 
March 31, 2018

 
 
March 31, 2017

 
March 31, 2018

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Capitalization of DAC
$
(713
)
 
$
(744
)
 
$
(761
)
 
$
(784
)
 
$
(796
)
 
 
$
(713
)
 
$
(796
)
 
 
Less: Divested businesses
16

 
14

 
4

 
—

 
(1
)
 
 
16

 
(1
)
 
 
Capitalization of DAC, as reported on an adjusted basis
$
(729
)
 
$
(758
)
 
$
(765
)
 
$
(784
)
 
$
(795
)
 
 
$
(729
)
 
$
(795
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the Three Months Ended
 
For the Year-to-Date Period Ended
 
Unaudited (In millions)
March 31, 2017

 
June 30, 2017

 
September 30, 2017

 
December 31, 2017

 
March 31, 2018

 
 
March 31, 2017

 
March 31, 2018

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other expenses
$
3,078

 
$
3,125

 
$
3,201

 
$
3,549

 
$
3,204

 
 
$
3,078

 
$
3,204

 
 
Less: Noncontrolling interest
(4
)
 
(3
)
 
(10
)
 
5

 
(7
)
 
 
(4
)
 
(7
)
 
 
Less: Regulatory implementation costs
—

 
—

 
—

 
—

 
1

 
 
—

 
1

 
 
Less: Acquisition, integration and other costs
8

 
14

 
20

 
23

 
11

 
 
8

 
11

 
 
Less: TSA fees
—

 
—

 
—

 
—

 
79

 
 
—

 
79

 
 
Less: Divested businesses
133

 
44

 
70

 
244

 
10

 
 
133

 
10

 
 
Other expenses, as reported on an adjusted basis
$
2,941

 
$
3,070

 
$
3,121

 
$
3,277

 
$
3,110

 
 
$
2,941

 
$
3,110

 
 
Other expenses, as reported on an adjusted basis, on a constant currency basis
$
3,010

 
$
3,116

 
$
3,146

 
$
3,324

 
$
3,110

 
 
 
 
 
 


6

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
METLIFE
EXPENSE DETAIL AND RATIOS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the Three Months Ended
 
For the Year-to-Date Period Ended
 
Unaudited (In millions, except ratio data)
March 31, 2017

 
June 30, 2017

 
September 30, 2017

 
December 31, 2017

 
March 31, 2018

 
 
March 31, 2017

 
March 31, 2018

 
 
Other expenses
$
3,078

 
$
3,125

 
$
3,201

 
$
3,549

 
$
3,204

 
 
$
3,078

 
$
3,204

 
 
Capitalization of DAC
(713
)
 
(744
)
 
(761
)
 
(784
)
 
(796
)
 
 
(713
)
 
(796
)
 
 
Other expenses, net of capitalization of DAC
$
2,365

 
$
2,381

 
$
2,440

 
$
2,765

 
$
2,408

 
 
$
2,365

 
$
2,408

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total premiums, fees and other revenues
$
10,667

 
$
11,236

 
$
12,605

 
$
11,335

 
$
11,044

 
 
$
10,667

 
$
11,044

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Expense ratio
22.2
%
 
21.2
%
 
19.4
%
 
24.4
%
 
21.8
%
 
 
22.2
%
 
21.8
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the Three Months Ended
 
For the Year-to-Date Period Ended
 
Unaudited (In millions) (1)
March 31, 2017

 
June 30, 2017

 
September 30, 2017

 
December 31, 2017

 
March 31, 2018

 
 
March 31, 2017

 
March 31, 2018

 
 
Other expenses by major category, as reported on an adjusted basis


 


 


 


 


 
 


 


 
 
Direct expenses
$
1,344

 
$
1,459

 
$
1,506

 
$
1,697

 
$
1,462

 
 
$
1,344

 
$
1,462

 
 
Pension, postretirement and postemployment benefit costs
79

 
76

 
80

 
66

 
49

 
 
79

 
49

 
 
Premium taxes, other taxes, and licenses & fees
175

 
148

 
144

 
153

 
178

 
 
175

 
178

 
 
Commissions and other variable expenses
1,343

 
1,387

 
1,391

 
1,361

 
1,421

 
 
1,343

 
1,421

 
 
Other expenses, as reported on an adjusted basis
2,941

 
3,070

 
3,121

 
3,277

 
3,110

 
 
2,941

 
3,110

 
 
Capitalization of DAC, as reported on an adjusted basis
(729
)
 
(758
)
 
(765
)
 
(784
)
 
(795
)
 
 
(729
)
 
(795
)
 
 
Other expenses, net of capitalization of DAC, as reported on an adjusted basis
2,212

 
2,312

 
2,356

 
2,493

 
2,315

 
 
2,212

 
2,315

 
 
Less: Total notable items related to other expenses, as reported on an adjusted basis
65

 
137

 
26

 
149

 
43

 
 
65

 
43

 
 
Other expenses, net of capitalization of DAC, excluding total notable items related to other expenses, as reported on an adjusted basis
$
2,147

 
$
2,175

 
$
2,330

 
$
2,344

 
$
2,272

 
 
$
2,147

 
$
2,272

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the Three Months Ended
 
For the Year-to-Date Period Ended
 
Unaudited (In millions, except ratio data)
March 31, 2017

 
June 30, 2017

 
September 30, 2017

 
December 31, 2017

 
March 31, 2018

 
 
March 31, 2017

 
March 31, 2018

 
 
Employee related costs
$
936

 
$
880

 
$
937

 
$
846

 
$
937

 
 
$
936

 
$
937

 
 
Third party staffing costs
361

 
399

 
412

 
519

 
381

 
 
361

 
381

 
 
General and administrative expenses
47

 
180

 
157

 
332

 
144

 
 
47

 
144

 
 
Direct expenses
1,344

 
1,459

 
1,506

 
1,697

 
1,462

 
 
1,344

 
1,462

 
 
Less: Total notable items related to direct expenses
33

 
88

 
26

 
149

 
43

 
 
33

 
43

 
 
Direct expenses, excluding total notable items related to direct expenses
$
1,311

 
$
1,371

 
$
1,480

 
$
1,548

 
$
1,419

 
 
$
1,311

 
$
1,419

 
 
 


 


 


 


 


 
 


 


 
 
Other expenses, net of capitalization of DAC, as reported on an adjusted basis
$
2,212

 
$
2,312

 
$
2,356

 
$
2,493

 
$
2,315

 
 
$
2,212

 
$
2,315

 
 
Less: Total notable items related to other expenses, as reported on an adjusted basis
65

 
137

 
26

 
149

 
43

 
 
65

 
43

 
 
Other expenses, net of capitalization of DAC, excluding total notable items related to other expenses, as reported on an adjusted basis
$
2,147

 
$
2,175

 
$
2,330

 
$
2,344

 
$
2,272

 
 
$
2,147

 
$
2,272

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total adjusted premiums, fees and other revenues
$
10,882

 
$
11,398

 
$
12,620

 
$
11,300

 
$
10,929

 
 
$
10,882

 
$
10,929

 
 
Less: Pension risk transfer ("PRT")
70

 
809

 
1,829

 
597

 
—

 
 
70

 
—

 
 
Total adjusted premiums, fees and other revenues, excluding PRT
$
10,812

 
$
10,589

 
$
10,791

 
$
10,703

 
$
10,929

 
 
$
10,812

 
$
10,929

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Direct expense ratio
12.4
%
 
12.8
%
 
11.9
%
 
15.0
%
 
13.4
%
 
 
12.4
%
 
13.4
%
 
 
Direct expense ratio, excluding total notable items related to direct expenses and PRT
12.1
%
 
12.9
%
 
13.7
%
 
14.5
%
 
13.0
%
 
 
12.1
%
 
13.0
%
 
 
 


 


 


 


 


 
 


 


 
 
Adjusted expense ratio
20.3
%
 
20.3
%
 
18.7
%
 
22.1
%
 
21.2
%
 
 
20.3
%
 
21.2
%
 
 
Adjusted expense ratio, excluding total notable items related to other expenses and PRT
19.9
%
 
20.5
%
 
21.6
%
 
21.9
%
 
20.8
%
 
 
19.9
%
 
20.8
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Certain amounts in prior periods have been reclassified to conform to current period presentation.
 


7

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
METLIFE
CONSOLIDATED BALANCE SHEETS

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unaudited (In millions)
 
March 31, 2017

 
 
June 30, 2017

 
 
September 30, 2017

 
 
December 31, 2017

 
 
March 31, 2018

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed maturity securities available-for-sale, at estimated fair value
 
$
294,710

 
 
$
300,616

 
 
$
308,894

 
 
$
308,931

 
 
$
304,711

 
 
Equity securities available-for-sale, at estimated fair value
 
3,088

 
 
3,137

 
 
2,776

 
 
2,513

 
 
1,544

 
 
Contractholder-directed equity securities and fair value option securities, at estimated fair value
 
14,399

 
 
14,762

 
 
16,538

 
 
16,745

 
 
16,444

 
 
Mortgage loans
 
66,633

 
 
67,309

 
 
68,057

 
 
68,731

 
 
71,055

 
 
Policy loans
 
9,603

 
 
9,558

 
 
9,585

 
 
9,669

 
 
9,744

 
 
Real estate and real estate joint ventures
 
9,293

 
 
9,256

 
 
9,486

 
 
9,637

 
 
9,862

 
 
Other limited partnership interests
 
5,166

 
 
5,251

 
 
5,501

 
 
5,708

 
 
5,876

 
 
Short-term investments, principally at estimated fair value
 
8,911

 
 
5,890

 
 
7,217

 
 
4,870

 
 
5,121

 
 
Other invested assets, principally at estimated fair value
 
17,003

 
 
16,559

 
 
17,652

 
 
17,263

 
 
17,486

 
 
Total investments
 
428,806

 
 
432,338

 
 
445,706

 
 
444,067

 
 
441,843

 
 
Cash and cash equivalents, principally at estimated fair value
 
11,599

 
 
12,876

 
 
13,023

 
 
12,701

 
 
13,927

 
 
Accrued investment income
 
3,343

 
 
3,362

 
 
3,692

 
 
3,524

 
 
3,638

 
 
Premiums, reinsurance and other receivables
 
16,114

 
 
16,475

 
 
18,588

 
 
18,423

 
 
19,368

 
 
Deferred policy acquisition costs and value of business acquired
 
18,138

 
 
18,039

 
 
18,399

 
 
18,419

 
 
19,330

 
 
Current income tax recoverable
 
25

 
 
66

 
 
3

 
 
—

 
 
—

 
 
Goodwill
 
9,350

 
 
9,385

 
 
9,556

 
 
9,590

 
 
9,733

 
 
Assets of disposed subsidiary
 
217,844

 
 
220,295

 
 
—

 
 
—

 
 
—

 
 
Other assets
 
7,312

 
 
7,474

 
 
8,149

 
 
8,167

 
 
8,387

 
 
Separate account assets
 
202,156

 
 
204,889

 
 
203,399

 
 
205,001

 
 
196,358

 
 
Total assets
 
$
914,687

 
 
$
925,199

 
 
$
720,515

 
 
$
719,892

 
 
$
712,584

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LIABILITIES AND EQUITY
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Future policy benefits
 
$
169,486

 
 
$
171,271

 
 
$
176,005

 
 
$
177,974

 
 
$
180,348

 
 
Policyholder account balances
 
177,076

 
 
178,218

 
 
181,703

 
 
182,518

 
 
184,289

 
 
Other policy-related balances
 
13,774

 
 
13,804

 
 
15,428

 
 
15,515

 
 
16,023

 
 
Policyholder dividends payable
 
685

 
 
707

 
 
730

 
 
682

 
 
672

 
 
Policyholder dividend obligation
 
1,983

 
 
2,237

 
 
2,201

 
 
2,121

 
 
1,277

 
 
Payables for collateral under securities loaned and other transactions
 
25,722

 
 
26,604

 
 
27,132

 
 
25,723

 
 
26,151

 
 
Short-term debt
 
260

 
 
235

 
 
214

 
 
477

 
 
526

 
 
Long-term debt
 
16,455

 
 
16,492

 
 
16,688

 
 
15,686

 
 
15,707

 
 
Collateral financing arrangements
 
1,262

 
 
1,235

 
 
1,220

 
 
1,121

 
 
1,108

 
 
Junior subordinated debt securities
 
3,169

 
 
3,169

 
 
3,144

 
 
3,144

 
 
3,145

 
 
Liabilities of disposed subsidiary
 
204,639

 
 
206,334

 
 
—

 
 
—

 
 
—

 
 
Current income tax payable
 
—

 
 
—

 
 
—

 
 
311

 
 
155

 
 
Deferred income tax liability
 
6,704

 
 
7,763

 
 
8,695

 
 
6,767

 
 
6,304

 
 
Other liabilities
 
22,958

 
 
22,295

 
 
26,745

 
 
23,982

 
 
24,013

 
 
Separate account liabilities
 
202,156

 
 
204,889

 
 
203,399

 
 
205,001

 
 
196,358

 
 
Total liabilities
 
846,329

 
 
855,253

 
 
663,304

 
 
661,022

 
 
656,076

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Preferred stock, at par value
 
—

 
 
—

 
 
—

 
 
—

 
 
—

 
 
Common stock, at par value
 
12

 
 
12

 
 
12

 
 
12

 
 
12

 
 
Additional paid-in capital
 
30,990

 
 
31,021

 
 
31,066

 
 
31,111

 
 
31,653

 
 
Retained earnings
 
35,113

 
 
35,547

 
 
24,677

 
 
26,527

 
 
26,453

 
 
Treasury stock, at cost
 
(4,332
)
 
 
(5,284
)
 
 
(5,779
)
 
 
(6,401
)
 
 
(7,442
)
 
 
Accumulated other comprehensive income (loss)
 
6,396

 
 
8,436

 
 
7,005

 
 
7,427

 
 
5,634

 
 
Total MetLife, Inc.'s stockholders' equity
 
68,179

 
 
69,732

 
 
56,981

 
 
58,676

 
 
56,310

 
 
Noncontrolling interests
 
179

 
 
214

 
 
230

 
 
194

 
 
198

 
 
Total equity
 
68,358

 
 
69,946

 
 
57,211

 
 
58,870

 
 
56,508

 
 
Total liabilities and equity
 
$
914,687

 
 
$
925,199

 
 
$
720,515

 
 
$
719,892

 
 
$
712,584

 


8

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
METLIFE
SUMMARY OF ADJUSTED EARNINGS AVAILABLE TO COMMON SHAREHOLDERS, AND ADJUSTED RETURN ON ALLOCATED EQUITY AND ALLOCATED TANGIBLE EQUITY
 
 
 
SUMMARY OF ADJUSTED EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
For the Three Months Ended
 
 
Unaudited (In millions)
 
March 31, 2017
 
 
June 30, 2017
 
 
September 30, 2017
 
 
December 31, 2017
 
 
March 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted earnings before provision for income tax
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
GROUP BENEFITS
 
$
298

 
 
$
312

 
 
$
370

 
 
$
352

 
 
$
283

 
 
RETIREMENT AND INCOME SOLUTIONS
 
420

 
 
402

 
 
381

 
 
266

 
 
426

 
 
PROPERTY & CASUALTY
 
28

 
 
26

 
 
63

 
 
133

 
 
115

 
 
TOTAL U.S.
 
$
746

 
 
$
740

 
 
$
814

 
 
$
751

 
 
$
824

 
 
ASIA
 
441

 
 
467

 
 
470

 
 
471

 
 
472

 
 
LATIN AMERICA
 
181

 
 
188

 
 
214

 
 
158

 
 
215

 
 
EMEA
 
87

 
 
86

 
 
92

 
 
91

 
 
102

 
 
METLIFE HOLDINGS
 
573

 
 
342

 
 
538

 
 
276

 
 
529

 
 
CORPORATE & OTHER
 
(341
)
 
 
(368
)
 
 
(420
)
 
 
(541
)
 
 
(356
)
 
 
Total adjusted earnings before provision for income tax
 
$
1,687

 
 
$
1,455

 
 
$
1,708

 
 
$
1,206

 
 
$
1,786

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provision for income tax expense (benefit)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
GROUP BENEFITS
 
$
104

 
 
$
109

 
 
$
129

 
 
$
122

 
 
$
65

 
 
RETIREMENT AND INCOME SOLUTIONS
 
146

 
 
140

 
 
134

 
 
93

 
 
87

 
 
PROPERTY & CASUALTY
 
(1
)
 
 
(2
)
 
 
12

 
 
38

 
 
19

 
 
TOTAL U.S.
 
$
249

 
 
$
247

 
 
$
275

 
 
$
253

 
 
$
171

 
 
ASIA
 
146

 
 
157

 
 
156

 
 
161

 
 
145

 
 
LATIN AMERICA
 
38

 
 
34

 
 
51

 
 
33

 
 
75

 
 
EMEA
 
12

 
 
14

 
 
21

 
 
12

 
 
21

 
 
METLIFE HOLDINGS
 
186

 
 
105

 
 
174

 
 
82

 
 
104

 
 
CORPORATE & OTHER
 
(271
)
 
 
(269
)
 
 
(90
)
 
 
(58
)
 
 
(159
)
 
 
Total provision for income tax expense (benefit)
 
$
360

 
 
$
288

 
 
$
587

 
 
$
483

 
 
$
357

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted earnings available to common shareholders
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
GROUP BENEFITS
 
$
194

 
 
$
203

 
 
$
241

 
 
$
230

 
 
$
218

 
 
RETIREMENT AND INCOME SOLUTIONS
 
274

 
 
262

 
 
247

 
 
173

 
 
339

 
 
PROPERTY & CASUALTY
 
29

 
 
28

 
 
51

 
 
95

 
 
96

 
 
TOTAL U.S.
 
$
497

 
 
$
493

 
 
$
539

 
 
$
498

 
 
$
653

 
 
ASIA
 
295

 
 
310

 
 
314

 
 
310

 
 
327

 
 
LATIN AMERICA
 
143

 
 
154

 
 
163

 
 
125

 
 
140

 
 
EMEA
 
75

 
 
72

 
 
71

 
 
79

 
 
81

 
 
METLIFE HOLDINGS
 
387

 
 
237

 
 
364

 
 
194

 
 
425

 
 
CORPORATE & OTHER (1)
 
(76
)
 
 
(145
)
 
 
(336
)
 
 
(528
)
 
 
(203
)
 
 
Total adjusted earnings available to common shareholders (1)
 
$
1,321

 
 
$
1,121

 
 
$
1,115

 
 
$
678

 
 
$
1,423

 
 
 
ADJUSTED RETURN ON ALLOCATED EQUITY (2)
 
  
 
For the Three Months Ended
 
 
Unaudited
 
March 31, 2017
 
 
June 30, 2017
 
 
September 30, 2017
 
 
December 31, 2017
 
 
March 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
GROUP BENEFITS
 
27.6
%
 
 
28.8
%
 
 
34.2
%
 
 
32.7
%
 
 
31.2
%
 
 
RETIREMENT AND INCOME SOLUTIONS
 
19.8
%
 
 
18.9
%
 
 
17.8
%
 
 
12.5
%
 
 
21.8
%
 
 
PROPERTY & CASUALTY
 
6.2
%
 
 
6.0
%
 
 
11.0
%
 
 
20.4
%
 
 
20.7
%
 
 
TOTAL U.S.
 
19.5
%
 
 
19.3
%
 
 
21.1
%
 
 
19.5
%
 
 
24.1
%
 
 
ASIA
 
9.4
%
 
 
9.9
%
 
 
10.0
%
 
 
9.9
%
 
 
9.2
%
 
 
LATIN AMERICA
 
19.5
%
 
 
21.0
%
 
 
22.2
%
 
 
17.0
%
 
 
17.8
%
 
 
EMEA
 
9.3
%
 
 
9.0
%
 
 
8.8
%
 
 
9.8
%
 
 
9.3
%
 
 
METLIFE HOLDINGS
 
13.8
%
 
 
8.4
%
 
 
12.9
%
 
 
6.9
%
 
 
16.9
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ADJUSTED RETURN ON ALLOCATED TANGIBLE EQUITY (2)
 
 
  
 
For the Three Months Ended
 
 
Unaudited
 
March 31, 2017
 
 
June 30, 2017
 
 
September 30, 2017
 
 
December 31, 2017
 
 
March 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S.
 
22.7
%
 
 
22.5
%
 
 
24.6
%
 
 
22.7
%
 
 
27.9
%
 
 
ASIA
 
15.0
%
 
 
15.8
%
 
 
16.0
%
 
 
15.8
%
 
 
13.9
%
 
 
LATIN AMERICA
 
33.6
%
 
 
36.2
%
 
 
38.3
%
 
 
29.3
%
 
 
29.8
%
 
 
EMEA
 
15.3
%
 
 
14.7
%
 
 
14.5
%
 
 
16.1
%
 
 
15.3
%
 
 
METLIFE HOLDINGS

 
15.4
%
 
 
9.5
%
 
 
14.5
%
 
 
7.8
%
 
 
19.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Includes impact of preferred stock dividends of $6 million, $46 million, $6 million, $45 million and $6 million for the three months ended March 31, 2017, June 30, 2017, September 30, 2017, December 31, 2017 and March 31, 2018, respectively.
 
(2) Annualized using quarter-to-date results. See Page A-5 for the return on allocated equity and return on allocated tangible equity for each of the periods presented.

9

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S.
STATEMENTS OF ADJUSTED EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
 
 
 
 
  
For the Three Months Ended
 
 
For the Year-to-Date Period Ended
 
Unaudited (In millions)
 
March 31, 2017

 
June 30, 2017

 
September 30, 2017

 
December 31, 2017

 
March 31, 2018

 
 
March 31, 2017

 
March 31, 2018

 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted revenues
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Premiums
 
$
5,185

 
$
5,877

 
$
6,987

 
$
5,583

 
$
5,217

 
 
$
5,185

 
$
5,217

 
 
Universal life and investment-type product policy fees
 
265

 
251

 
247

 
249

 
258

 
 
265

 
258

 
 
Net investment income
 
1,612

 
1,575

 
1,602

 
1,607

 
1,662

 
 
1,612

 
1,662

 
 
Other revenues
 
204

 
199

 
197

 
206

 
204

 
 
204

 
204

 
 
Total adjusted revenues
 
7,266

 
7,902

 
9,033

 
7,645

 
7,341

 
 
7,266

 
7,341

 
 

 

 

 

 

 
 
 
 
 
 
 
 
 
Adjusted expenses
 

 

 

 

 
 
 
 
 
 
 
 
 
Policyholder benefits and claims and policyholder dividends
 
5,244

 
5,887

 
6,916

 
5,580

 
5,138

 
 
5,244

 
5,138

 
 
Interest credited to policyholder account balances
 
351

 
359

 
376

 
388

 
407

 
 
351

 
407

 
 
Capitalization of DAC
 
(100
)
 
(116
)
 
(126
)
 
(116
)
 
(106
)
 
 
(100
)
 
(106
)
 
 
Amortization of DAC and VOBA
 
114

 
114

 
118

 
113

 
115

 
 
114

 
115

 
 
Amortization of negative VOBA
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Interest expense on debt
 
2

 
4

 
2

 
3

 
2

 
 
2

 
2

 
 
Other expenses
 
909

 
914

 
933

 
926

 
961

 
 
909

 
961

 
 
Total adjusted expenses
 
6,520

 
7,162

 
8,219

 
6,894

 
6,517

 
 
6,520

 
6,517

 
 
Adjusted earnings before provision for income tax
 
746

 
740

 
814

 
751

 
824

 
 
746

 
824

 
 
Provision for income tax expense (benefit)
 
249

 
247

 
275

 
253

 
171

 
 
249

 
171

 
 
Adjusted earnings
 
497

 
493

 
539

 
498

 
653

 
 
497

 
653

 
 
Preferred stock dividends
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Adjusted earnings available to common shareholders
 
$
497

 
$
493

 
$
539

 
$
498

 
$
653

 
 
$
497

 
$
653

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reconciliation to Income (Loss) from Continuing Operations, Net of Income Tax
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted earnings
 
$
497

 
$
493

 
$
539

 
$
498

 
$
653

 
 
$
497

 
$
653

 
 
Adjustments from adjusted earnings to income (loss) from continuing operations, net of income tax:
 

 

 

 

 
 
 
 
 
 
 
 
 
Net investment gains (losses)
 
(18
)
 
—

 
96

 
102

 
(110
)
 
 
(18
)
 
(110
)
 
 
Net derivative gains (losses)
 
(148
)
 
128

 
(14
)
 
13

 
(54
)
 
 
(148
)
 
(54
)
 
 
Premiums
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Universal life and investment-type product policy fees
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Net investment income
 
(66
)
 
(51
)
 
(43
)
 
(35
)
 
(54
)
 
 
(66
)
 
(54
)
 
 
Other revenues
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Policyholder benefits and claims and policyholder dividends
 
(1
)
 
(2
)
 
(1
)
 
(1
)
 
8

 
 
(1
)
 
8

 
 
Interest credited to policyholder account balances
 
1

 
1

 
1

 
—

 
1

 
 
1

 
1

 
 
Capitalization of DAC
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Amortization of DAC and VOBA
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Amortization of negative VOBA
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Interest expense on debt
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Other expenses
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Goodwill impairment
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Provision for income tax (expense) benefit
 
80

 
(27
)
 
(13
)
 
(28
)
 
45

 
 
80

 
45

 
 
Income (loss) from continuing operations, net of income tax
 
345

 
542

 
565

 
549

 
489

 
 
345

 
489

 
 
Income (loss) from discontinued operations, net of income tax
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Net income (loss)
 
345

 
542

 
565

 
549

 
489

 
 
345

 
489

 
 
Less: Net income (loss) attributable to noncontrolling interests
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Net income (loss) attributable to MetLife, Inc.
 
345

 
542

 
565

 
549

 
489

 
 
345

 
489

 
 
Less: Preferred stock dividends
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Net income (loss) available to MetLife, Inc.’s common shareholders
 
$
345

 
$
542

 
$
565

 
$
549

 
$
489

 
 
$
345

 
$
489

 
 

 


 


 


 


 
 
 
 
 
 


 
 
Total Adjusted Premiums, Fees and Other Revenues
 
$
5,654

 
$
6,327

 
$
7,431

 
$
6,038

 
$
5,679

 
 
$
5,654

 
$
5,679

 

10

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S.
GROUP BENEFITS
STATEMENTS OF ADJUSTED EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
 
 
 
 
For the Three Months Ended
 
For the Year-to-Date Period Ended
 
Unaudited (In millions)
 
March 31, 2017

 
June 30, 2017

 
September 30, 2017

 
December 31, 2017

 
March 31, 2018

 
 
March 31, 2017

 
March 31, 2018

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted revenues
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Premiums
 
$
3,971

 
$
3,880

 
$
3,756

 
$
3,780

 
$
4,094

 
 
$
3,971

 
$
4,094

 
 
Universal life and investment-type product policy fees
 
204

 
200

 
197

 
198

 
203

 
 
204

 
203

 
 
Net investment income
 
285

 
280

 
285

 
275

 
279

 
 
285

 
279

 
 
Other revenues
 
125

 
122

 
120

 
127

 
126

 
 
125

 
126

 
 
Total adjusted revenues
 
4,585

 
4,482

 
4,358

 
4,380

 
4,702

 
 
4,585

 
4,702

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Policyholder benefits and claims and policyholder dividends
 
3,670

 
3,560

 
3,374

 
3,413

 
3,744

 
 
3,670

 
3,744

 
 
Interest credited to policyholder account balances
 
34

 
34

 
34

 
34

 
33

 
 
34

 
33

 
 
Capitalization of DAC
 
(9
)
 
(7
)
 
(8
)
 
(7
)
 
(7
)
 
 
(9
)
 
(7
)
 
 
Amortization of DAC and VOBA
 
10

 
10

 
9

 
7

 
11

 
 
10

 
11

 
 
Amortization of negative VOBA
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Interest expense on debt
 
—

 
1

 
—

 
1

 
—

 
 
—

 
—

 
 
Other expenses
 
582

 
572

 
579

 
580

 
638

 
 
582

 
638

 
 
Total adjusted expenses
 
4,287

 
4,170

 
3,988

 
4,028

 
4,419

 
 
4,287

 
4,419

 
 
Adjusted earnings before provision for income tax
 
298

 
312

 
370

 
352

 
283

 
 
298

 
283

 
 
Provision for income tax expense (benefit)
 
104

 
109

 
129

 
122

 
65

 
 
104

 
65

 
 
Adjusted earnings
 
194

 
203

 
241

 
230

 
218

 
 
194

 
218

 
 
Preferred stock dividends
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Adjusted earnings available to common shareholders
 
$
194

 
$
203

 
$
241

 
$
230

 
$
218

 
 
$
194

 
$
218

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reconciliation to Income (Loss) from Continuing Operations, Net of Income Tax
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted earnings
 
$
194

 
$
203

 
$
241

 
$
230

 
$
218

 
 
$
194

 
$
218

 
 
Adjustments from adjusted earnings to income (loss) from continuing operations, net of income tax:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net investment gains (losses)
 
9

 
(3
)
 
—

 
7

 
(17
)
 
 
9

 
(17
)
 
 
Net derivative gains (losses)
 
(34
)
 
26

 
(7
)
 
(13
)
 
(45
)
 
 
(34
)
 
(45
)
 
 
Premiums
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Universal life and investment-type product policy fees
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Net investment income
 
(21
)
 
(17
)
 
(16
)
 
(15
)
 
(16
)
 
 
(21
)
 
(16
)
 
 
Other revenues
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Policyholder benefits and claims and policyholder dividends
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Interest credited to policyholder account balances
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Capitalization of DAC
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Amortization of DAC and VOBA
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Amortization of negative VOBA
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Interest expense on debt
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Other expenses
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Goodwill impairment
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Provision for income tax (expense) benefit
 
16

 
(2
)
 
8

 
7

 
17

 
 
16

 
17

 
 
Income (loss) from continuing operations, net of income tax
 
164

 
207

 
226

 
216

 
157

 
 
164

 
157

 
 
Income (loss) from discontinued operations, net of income tax
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Net income (loss)
 
164

 
207

 
226

 
216

 
157

 
 
164

 
157

 
 
Less: Net income (loss) attributable to noncontrolling interests
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Net income (loss) attributable to MetLife, Inc.
 
164

 
207

 
226

 
216

 
157

 
 
164

 
157

 
 
Less: Preferred stock dividends
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Net income (loss) available to MetLife, Inc.’s common shareholders
 
$
164

 
$
207

 
$
226

 
$
216

 
$
157

 
 
$
164

 
$
157

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Adjusted Premiums, Fees and Other Revenues
 
$
4,300

 
$
4,202

 
$
4,073

 
$
4,105

 
$
4,423

 
 
$
4,300

 
$
4,423

 

11

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S.
RETIREMENT AND INCOME SOLUTIONS
STATEMENTS OF ADJUSTED EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
 
 
 
For the Three Months Ended
 
For the Year-to-Date Period Ended
 
Unaudited (In millions)
 
March 31, 2017

 
June 30, 2017

 
September 30, 2017

 
December 31, 2017

 
March 31, 2018

 
 
March 31, 2017

 
March 31, 2018

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted revenues
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Premiums
 
$
346

 
$
1,115

 
$
2,336

 
$
902

 
$
244

 
 
$
346

 
$
244

 
 
Universal life and investment-type product policy fees
 
61

 
51

 
50

 
51

 
55

 
 
61

 
55

 
 
Net investment income
 
1,285

 
1,254

 
1,276

 
1,294

 
1,340

 
 
1,285

 
1,340

 
 
Other revenues
 
72

 
72

 
73

 
73

 
72

 
 
72

 
72

 
 
Total adjusted revenues
 
1,764

 
2,492

 
3,735

 
2,320

 
1,711

 
 
1,764

 
1,711

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Policyholder benefits and claims and policyholder dividends
 
912

 
1,652

 
2,897

 
1,587

 
806

 
 
912

 
806

 
 
Interest credited to policyholder account balances
 
317

 
325

 
342

 
354

 
374

 
 
317

 
374

 
 
Capitalization of DAC
 
(2
)
 
(8
)
 
(12
)
 
(9
)
 
(5
)
 
 
(2
)
 
(5
)
 
 
Amortization of DAC and VOBA
 
5

 
4

 
7

 
4

 
6

 
 
5

 
6

 
 
Amortization of negative VOBA
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Interest expense on debt
 
2

 
3

 
2

 
2

 
2

 
 
2

 
2

 
 
Other expenses
 
110

 
114

 
118

 
116

 
102

 
 
110

 
102

 
 
Total adjusted expenses
 
1,344

 
2,090

 
3,354

 
2,054

 
1,285

 
 
1,344

 
1,285

 
 
Adjusted earnings before provision for income tax
 
420

 
402

 
381

 
266

 
426

 
 
420

 
426

 
 
Provision for income tax expense (benefit)
 
146

 
140

 
134

 
93

 
87

 
 
146

 
87

 
 
Adjusted earnings
 
274

 
262

 
247

 
173

 
339

 
 
274

 
339

 
 
Preferred stock dividends
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Adjusted earnings available to common shareholders
 
$
274

 
$
262

 
$
247

 
$
173

 
$
339

 
 
$
274

 
$
339

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reconciliation to Income (Loss) from Continuing Operations, Net of Income Tax
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted earnings
 
$
274

 
$
262

 
$
247

 
$
173

 
$
339

 
 
$
274

 
$
339

 
 
Adjustments from adjusted earnings to income (loss) from continuing operations, net of income tax:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net investment gains (losses)
 
(33
)
 
4

 
96

 
93

 
(90
)
 
 
(33
)
 
(90
)
 
 
Net derivative gains (losses)
 
(111
)
 
104

 
(8
)
 
24

 
(8
)
 
 
(111
)
 
(8
)
 
 
Premiums
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Universal life and investment-type product policy fees
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Net investment income
 
(45
)
 
(34
)
 
(27
)
 
(20
)
 
(38
)
 
 
(45
)
 
(38
)
 
 
Other revenues
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Policyholder benefits and claims and policyholder dividends
 
(1
)
 
(2
)
 
(1
)
 
(1
)
 
8

 
 
(1
)
 
8

 
 
Interest credited to policyholder account balances
 
1

 
1

 
1

 
—

 
1

 
 
1

 
1

 
 
Capitalization of DAC
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Amortization of DAC and VOBA
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Amortization of negative VOBA
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Interest expense on debt
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Other expenses
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Goodwill impairment
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Provision for income tax (expense) benefit
 
65

 
(26
)
 
(21
)
 
(33
)
 
27

 
 
65

 
27

 
 
Income (loss) from continuing operations, net of income tax
 
150

 
309

 
287

 
236

 
239

 
 
150

 
239

 
 
Income (loss) from discontinued operations, net of income tax
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Net income (loss)
 
150

 
309

 
287

 
236

 
239

 
 
150

 
239

 
 
Less: Net income (loss) attributable to noncontrolling interests
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Net income (loss) attributable to MetLife, Inc.
 
150

 
309

 
287

 
236

 
239

 
 
150

 
239

 
 
Less: Preferred stock dividends
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Net income (loss) available to MetLife, Inc.’s common shareholders
 
$
150

 
$
309

 
$
287

 
$
236

 
$
239

 
 
$
150

 
$
239

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Adjusted Premiums, Fees and Other Revenues
 
$
479

 
$
1,238

 
$
2,459

 
$
1,026

 
$
371

 
 
$
479

 
$
371

 

12

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S.
PROPERTY & CASUALTY
STATEMENTS OF ADJUSTED EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
 
 
 
  
 
For the Three Months Ended
 
 
For the Year-to-Date Period Ended
 
Unaudited (In millions)
 
March 31, 2017

 
June 30, 2017

 
September 30, 2017

 
December 31, 2017

 
March 31, 2018

 
 
March 31, 2017

 
March 31, 2018

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted revenues
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Premiums
 
$
868

 
$
882

 
$
895

 
$
901

 
$
879

 
 
$
868

 
$
879

 
 
Universal life and investment-type product policy fees
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Net investment income
 
42

 
41

 
41

 
38

 
43

 
 
42

 
43

 
 
Other revenues
 
7

 
5

 
4

 
6

 
6

 
 
7

 
6

 
 
Total adjusted revenues
 
917

 
928

 
940

 
945

 
928

 
 
917

 
928

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Policyholder benefits and claims and policyholder dividends
 
662

 
675

 
645

 
580

 
588

 
 
662

 
588

 
 
Interest credited to policyholder account balances
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Capitalization of DAC
 
(89
)
 
(101
)
 
(106
)
 
(100
)
 
(94
)
 
 
(89
)
 
(94
)
 
 
Amortization of DAC and VOBA
 
99

 
100

 
102

 
102

 
98

 
 
99

 
98

 
 
Amortization of negative VOBA
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Interest expense on debt
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Other expenses
 
217

 
228

 
236

 
230

 
221

 
 
217

 
221

 
 
Total adjusted expenses
 
889

 
902

 
877

 
812

 
813

 
 
889

 
813

 
 
Adjusted earnings before provision for income tax
 
28

 
26

 
63

 
133

 
115

 
 
28

 
115

 
 
Provision for income tax expense (benefit)
 
(1
)
 
(2
)
 
12

 
38

 
19

 
 
(1
)
 
19

 
 
Adjusted earnings
 
29

 
28

 
51

 
95

 
96

 
 
29

 
96

 
 
Preferred stock dividends
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Adjusted earnings available to common shareholders
 
$
29

 
$
28

 
$
51

 
$
95

 
$
96

 
 
$
29

 
$
96

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reconciliation to Income (Loss) from Continuing Operations, Net of Income Tax
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted earnings
 
$
29

 
$
28

 
$
51

 
$
95

 
$
96

 
 
$
29

 
$
96

 
 
Adjustments from adjusted earnings to income (loss) from continuing operations, net of income tax:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net investment gains (losses)
 
6

 
(1
)
 
—

 
2

 
(3
)
 
 
6

 
(3
)
 
 
Net derivative gains (losses)
 
(3
)
 
(2
)
 
1

 
2

 
(1
)
 
 
(3
)
 
(1
)
 
 
Premiums
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Universal life and investment-type product policy fees
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Net investment income
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Other revenues
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Policyholder benefits and claims and policyholder dividends
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Interest credited to policyholder account balances
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Capitalization of DAC
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Amortization of DAC and VOBA
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Amortization of negative VOBA
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Interest expense on debt
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Other expenses
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Goodwill impairment
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Provision for income tax (expense) benefit
 
(1
)
 
1

 
—

 
(2
)
 
1

 
 
(1
)
 
1

 
 
Income (loss) from continuing operations, net of income tax
 
31

 
26

 
52

 
97

 
93

 
 
31

 
93

 
 
Income (loss) from discontinued operations, net of income tax
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Net income (loss)
 
31

 
26

 
52

 
97

 
93

 
 
31

 
93

 
 
Less: Net income (loss) attributable to noncontrolling interests
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Net income (loss) attributable to MetLife, Inc.
 
31

 
26

 
52

 
97

 
93

 
 
31

 
93

 
 
Less: Preferred stock dividends
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Net income (loss) available to MetLife, Inc.’s common shareholders
 
$
31

 
$
26

 
$
52

 
$
97

 
$
93

 
 
$
31

 
$
93

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Adjusted Premiums, Fees and Other Revenues
 
$
875

 
$
887

 
$
899

 
$
907

 
$
885

 
 
$
875

 
$
885

 

13

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S.
GROUP BENEFITS
 
 
FUTURE POLICY BENEFITS AND POLICYHOLDER ACCOUNT BALANCES
 
 
 
 
 
 
 
  
 
For the Three Months Ended
 
 
Unaudited (In millions)
 
March 31, 2017

 
June 30, 2017

 
September 30, 2017

 
December 31, 2017

 
 
March 31, 2018

 
 
Balance, beginning of period
 
$
18,909

 
$
18,982

 
$
18,954

 
$
18,939

 
 
$
18,927

 
 
Premiums and deposits
 
4,819

 
4,698

 
4,549

 
4,553

 
 
4,933

 
 
Surrenders and withdrawals
 
(605
)
 
(658
)
 
(646
)
 
(588
)
 
 
(621
)
 
 
Benefit payments
 
(3,719
)
 
(3,627
)
 
(3,378
)
 
(3,496
)
 
 
(3,822
)
 
 
Net Flows
 
495

 
413

 
525

 
469

 
 
490

 
 
Net transfers from (to) separate account
 
(1
)
 
—

 
2

 
—

 
 
—

 
 
Interest
 
131

 
131

 
132

 
129

 
 
138

 
 
Policy charges
 
(150
)
 
(151
)
 
(149
)
 
(148
)
 
 
(149
)
 
 
Other
 
(402
)
 
(421
)
 
(525
)
 
(462
)
 
 
(448
)
 
 
Balance, end of period
 
$
18,982

 
$
18,954

 
$
18,939

 
$
18,927

 
 
$
18,958

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SEPARATE ACCOUNT LIABILITIES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
For the Three Months Ended
 
 
Unaudited (In millions)
 
March 31, 2017

 
June 30, 2017

 
September 30, 2017

 
December 31, 2017

 
 
March 31, 2018

 
 
Balance, beginning of period
 
$
761

 
$
810

 
$
836

 
$
857

 
 
$
889

 
 
Premiums and deposits
 
63

 
60

 
62

 
62

 
 
63

 
 
Surrenders and withdrawals
 
(17
)
 
(11
)
 
(19
)
 
(17
)
 
 
(21
)
 
 
Benefit payments
 
(1
)
 
(1
)
 
(1
)
 
(1
)
 
 
(1
)
 
 
Net Flows
 
45

 
48

 
42

 
44

 
 
41

 
 
Investment performance
 
47

 
31

 
35

 
41

 
 
3

 
 
Net transfers from (to) general account
 
1

 
—

 
(2
)
 
—

 
 
—

 
 
Policy charges
 
(51
)
 
(51
)
 
(52
)
 
(51
)
 
 
(52
)
 
 
Other
 
7

 
(2
)
 
(2
)
 
(2
)
 
 
(1
)
 
 
Balance, end of period
 
$
810

 
$
836

 
$
857

 
$
889

 
 
$
880

 

14

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S.
GROUP BENEFITS
 
 
OTHER EXPENSES BY MAJOR CATEGORY (1)
 
 
 
 
 
 
 
 
 
  
 
For the Three Months Ended
 
 
Unaudited (In millions)
 
March 31, 2017

 
 
June 30, 2017

 
 
September 30, 2017

 
 
December 31, 2017

 
March 31, 2018

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Direct and allocated expenses
 
$
312

 
 
$
308

 
 
$
310

 
 
$
321

 
$
325

 
 
Pension, postretirement and postemployment benefit costs

 
17

 
 
15

 
 
17

 
 
16

 
7

 
 
Premium taxes, other taxes, and licenses & fees
 
52

 
 
56

 
 
50

 
 
52

 
83

 
 
Commissions and other variable expenses
 
201

 
 
193

 
 
202

 
 
191

 
223

 
 
Other expenses, as reported on an adjusted basis
 
$
582

 
 
$
572

 
 
$
579

 
 
$
580

 
$
638

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
OTHER STATISTICAL INFORMATION 
 
 
 
 
 
 
 
  
 
For the Three Months Ended
 
 
Unaudited (In millions, except ratios)
 
March 31, 2017

 
 
June 30, 2017

 
 
September 30, 2017

 
 
December 31, 2017

 
March 31, 2018

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Group Life (2)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted premiums, fees and other revenues
 
$
1,690

 
 
$
1,663

 
 
$
1,641

 
 
$
1,633

 
$
1,739

 
 
Mortality ratio
 
86.9
%
 
 
87.3
%
 
 
85.0
%
 
 
87.2
%
 
88.0
%
 
 
Group Non-Medical Health (3)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted premiums, fees and other revenues
 
$
1,776

 
 
$
1,664

 
 
$
1,628

 
 
$
1,640

 
$
1,719

 
 
Interest adjusted benefit ratio (4)
 
79.9
%
 
 
76.9
%
 
 
74.7
%
 
 
73.7
%
 
75.9
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Certain amounts in prior periods have been reclassified to conform to current period presentation.
 
 
(2) Excludes certain experience-rated contracts and includes accidental death and dismemberment.
 
 
(3) Includes dental, group and individual disability, accident & health, critical illness, vision and other health.
 
 
(4) Reflects actual claims experience and excludes the impact of interest credited on future policyholder benefits. The product within Group Non-Medical Health with interest credited on future policyholder benefits is disability.
 


15

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S.
RETIREMENT AND INCOME SOLUTIONS
 
 
 
FUTURE POLICY BENEFITS AND POLICYHOLDER ACCOUNT BALANCES
 
 
 
 
 
 
 
  
 
For the Three Months Ended
 
 
Unaudited (In millions)
 
March 31, 2017

 
June 30, 2017

 
September 30, 2017

 
December 31, 2017

 
 
March 31, 2018

 
 
Balance, beginning of period
 
$
101,567

 
$
102,599

 
$
103,417

 
$
107,296

 
 
$
108,147

 
 
Premiums and deposits
 
15,875

 
19,471

 
19,622

 
17,659

 
 
20,064

 
 
Surrenders and withdrawals
 
(14,943
)
 
(19,539
)
 
(15,926
)
 
(16,912
)
 
 
(20,895
)
 
 
Benefit payments
 
(812
)
 
(812
)
 
(849
)
 
(841
)
 
 
(816
)
 
 
Net Flows
 
120

 
(880
)
 
2,847

 
(94
)
 
 
(1,647
)
 
 
Net transfers from (to) separate account
 
4

 
17

 
1

 
6

 
 
(9
)
 
 
Interest
 
856

 
853

 
864

 
880

 
 
904

 
 
Policy charges
 
(36
)
 
(31
)
 
(20
)
 
(6
)
 
 
(34
)
 
 
Other
 
88

 
859

 
187

 
65

 
 
735

 
 
Balance, end of period
 
$
102,599

 
$
103,417

 
$
107,296

 
$
108,147

 
 
$
108,096

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SEPARATE ACCOUNT LIABILITIES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
For the Three Months Ended
 
 
Unaudited (In millions)
 
March 31, 2017

 
June 30, 2017

 
September 30, 2017

 
December 31, 2017

 
 
March 31, 2018

 
 
Balance, beginning of period
 
$
85,189

 
$
85,983

 
$
87,049

 
$
82,341

 
 
$
80,354

 
 
Premiums and deposits
 
1,115

 
1,065

 
958

 
1,261

 
 
1,651

 
 
Surrenders and withdrawals
 
(1,878
)
 
(1,631
)
 
(4,550
)
 
(2,889
)
 
 
(4,567
)
 
 
Benefit payments
 
(17
)
 
(11
)
 
(22
)
 
(11
)
 
 
(17
)
 
 
Net Flows
 
(780
)
 
(577
)
 
(3,614
)
 
(1,639
)
 
 
(2,933
)
 
 
Investment performance
 
1,084

 
1,354

 
1,003

 
812

 
 
(798
)
 
 
Net transfers from (to) general account
 
(4
)
 
(17
)
 
(1
)
 
(6
)
 
 
9

 
 
Policy charges
 
(80
)
 
(83
)
 
(77
)
 
(76
)
 
 
(78
)
 
 
Other
 
574

 
389

 
(2,019
)
 
(1,078
)
 
 
155

 
 
Balance, end of period
 
$
85,983

 
$
87,049

 
$
82,341

 
$
80,354

 
 
$
76,709

 


16

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S.
RETIREMENT AND INCOME SOLUTIONS
 
 
OTHER EXPENSES BY MAJOR CATEGORY (1)
 
 
 
 
 
 
 
 
 
 
 
For the Three Months Ended
 
 
Unaudited (In millions)
 
March 31, 2017

 
 
June 30, 2017

 
 
September 30, 2017

 
 
December 31, 2017

 
 
March 31, 2018

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Direct and allocated expenses
 
$
66

 
 
$
62

 
 
$
64

 
 
$
64

 
 
$
67

 
 
Pension, postretirement and postemployment benefit costs

 
5

 
 
5

 
 
5

 
 
5

 
 
1

 
 
Premium taxes, other taxes, and licenses & fees
 
3

 
 
1

 
 
3

 
 
13

 
 
2

 
 
Commissions and other variable expenses
 
36

 
 
46

 
 
46

 
 
34

 
 
32

 
 
Other expenses, as reported on an adjusted basis
 
$
110

 
 
$
114

 
 
$
118

 
 
$
116

 
 
$
102

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SPREAD
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the Three Months Ended
 
 
Unaudited
 
March 31, 2017

 
 
June 30, 2017

 
 
September 30, 2017

 
 
December 31, 2017

 
 
March 31, 2018

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment income yield excluding variable investment income
 
4.49
%
 
 
4.46
%
 
 
4.42
%
 
 
4.43
%
 
 
4.50
%
 
 
Variable investment income yield
 
0.37
%
 
 
0.27
%
 
 
0.36
%
 
 
0.22
%
 
 
0.22
%
 
 
Total investment income yield
 
4.86
%
 
 
4.73
%
 
 
4.78
%
 
 
4.65
%
 
 
4.72
%
 
 
Average crediting rate
 
3.32
%
 
 
3.34
%
 
 
3.43
%
 
 
3.38
%
 
 
3.44
%
 
 
Annualized general account spread
 
1.54
%
 
 
1.39
%
 
 
1.35
%
 
 
1.27
%
 
 
1.28
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annualized general account spread excluding variable investment income yield
 
1.17
%
 
 
1.12
%
 
 
0.99
%
 
 
1.05
%
 
 
1.06
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Certain amounts in prior periods have been reclassified to conform to current period presentation.


17

 
U.S.
PROPERTY & CASUALTY
 
 
OTHER EXPENSES BY MAJOR CATEGORY (1)
 
 
 
 
 
 
 
  
 
For the Three Months Ended
 
 
Unaudited (In millions)
 
March 31, 2017
 
June 30, 2017
 
September 30, 2017
 
December 31, 2017
 
 
March 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Direct and allocated expenses
 
$
100

 
$
98

 
$
100

 
$
104

 
 
$
103

 
 
Pension, postretirement and postemployment benefit costs
 
7

 
8

 
8

 
8

 
 
4

 
 
Premium taxes, other taxes, and licenses & fees
 
22

 
25

 
23

 
23

 
 
20

 
 
Commissions and other variable expenses
 
88

 
97

 
105

 
95

 
 
94

 
 
Other expenses, as reported on an adjusted basis
 
$
217

 
$
228

 
$
236

 
$
230

 
 
$
221

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NET WRITTEN PREMIUMS BY PRODUCT AND SELECTED FINANCIAL INFORMATION AND SUPPLEMENTAL DATA
 
 
 
 
For the Three Months Ended
 
 
Unaudited (In millions, except ratios)
 
March 31, 2017
 
June 30, 2017
 
September 30, 2017
 
December 31, 2017
 
 
March 31, 2018
 
 

 
 
 
 
 
 
 
 
 
 
 
 
 
Net Written Premiums by Product
 
 
 
 
 
 
 
 
 
 
 
 
 
Auto
 
$
564

 
$
592

 
$
617

 
$
581

 
 
$
586

 
 
Homeowners & Other
 
283

 
323

 
329

 
291

 
 
261

 
 
Total
 
$
847

 
$
915

 
$
946

 
$
872

 
 
$
847

 
 
Selected Financial Information and Supplemental Data (2)
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Property & Casualty
 
 
 
 
 
 
 
 
 
 
 
 
 
Net earned premium
 
$
868

 
$
882

 
$
895

 
$
901

 
 
$
879

 
 
Loss and loss adjustment expense ratio
 
76.2
 %
 
76.5
 %
 
72.1
 %
 
64.4
 %
 
 
66.9
 %
 
 
Other expense ratio
 
25.8
 %
 
25.6
 %
 
25.7
 %
 
25.5
 %
 
 
25.3
 %
 
 
Total combined ratio
 
102.0
 %
 
102.1
 %
 
97.8
 %
 
89.9
 %
 
 
92.2
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Effect of catastrophe losses
 
12.9
 %
 
14.4
 %
 
9.6
 %
 
3.0
 %
 
 
6.6
 %
 
 
Combined ratio excluding catastrophes
 
89.1
 %
 
87.7
 %
 
88.2
 %
 
86.9
 %
 
 
85.6
 %
 
 
Prior year development
 
(0.7)
 %
 
(0.5)
 %
 
(0.7)
 %
 
(1.2)
 %
 
 
(0.6)
 %
 
 
Combined ratio excluding catastrophes and prior year development before provision for income tax
 
89.8
 %
 
88.2
 %
 
88.9
 %
 
88.1
 %
 
 
86.2
 %
 
 
Auto
 
 
 
 
 
 
 
 
 
 
 
 
 
Net earned premium
 
$
563

 
$
573

 
$
585

 
$
591

 
 
$
582

 
 
Loss and loss adjustment expense ratio
 
72.4
 %
 
71.4
 %
 
74.5
 %
 
74.9
 %
 
 
65.8
 %
 
 
Other expense ratio
 
25.4
 %
 
25.1
 %
 
25.2
 %
 
24.9
 %
 
 
25.5
 %
 
 
Total combined ratio
 
97.8
 %
 
96.5
 %
 
99.7
 %
 
99.8
 %
 
 
91.3
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Effect of catastrophe losses
 
1.4
 %
 
2.8
 %
 
6.4
 %
 
0.6
 %
 
 
(0.2)
 %
 
 
Combined ratio excluding catastrophes
 
96.4
 %
 
93.7
 %
 
93.3
 %
 
99.2
 %
 
 
91.5
 %
 
 
Prior year development
 
(0.8)
 %
 
(0.5
)%
 
(0.9
)%
 
(1.8)
 %
 
 
(0.7)
 %
 
 
Combined ratio excluding catastrophes and prior year development before provision for income tax
 
97.2
 %
 
94.2
 %
 
94.2
 %
 
101.0
 %
 
 
92.2
 %
 
 
Homeowners & Other
 
 
 
 
 
 
 
 
 
 
 
 
 
Net earned premium
 
$
305

 
$
309

 
$
310

 
$
310

 
 
$
297

 
 
Loss and loss adjustment expense ratio
 
83.3
 %
 
85.9
 %
 
67.5
 %
 
44.4
 %
 
 
68.9
 %
 
 
Other expense ratio
 
26.7
 %
 
26.5
 %
 
26.5
 %
 
26.6
 %
 
 
24.9
 %
 
 
Total combined ratio
 
110.0
 %
 
112.4
 %
 
94.0
 %
 
71.0
 %
 
 
93.8
 %
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Effect of catastrophe losses
 
34.1
 %
 
36.1
 %
 
15.7
 %
 
7.6
 %
 
 
19.8
 %
 
 
Combined ratio excluding catastrophes
 
75.9
 %
 
76.3
 %
 
78.3
 %
 
63.4
 %
 
 
74.0
 %
 
 
Prior year development
 
(0.5)
 %
 
(0.6)
 %
 
(0.2)
 %
 
(0.2)
 %
 
 
(0.4)
 %
 
 
Combined ratio excluding catastrophes and prior year development before provision for income tax
 
76.4
 %
 
76.9
 %
 
78.5
 %
 
63.6
 %
 
 
74.4
 %
 
 
Catastrophe Losses Before Provision for Income Tax
 
 
 
 
 
 
 
 
 
 
 
 
 
Auto
 
$
8

 
$
16

 
$
37

 
$
4

 
 
$
(1
)
 
 
Homeowners & Other
 
104

 
111

 
49

 
23

 
 
59

 
 
Total
 
$
112

 
$
127

 
$
86

 
$
27

 
 
$
58

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Certain amounts in prior periods have been reclassified to conform to current period presentation.
 
 
(2) This selective financial information and supplemental data is presented and calculated based on general industry standards.
 

18

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ASIA
STATEMENTS OF ADJUSTED EARNINGS AVAILABLE TO COMMON SHAREHOLDERS 
 
 
 
For the Three Months Ended
 
For the Year-to-Date Period Ended
 
Unaudited (In millions)
 
March 31, 2017

 
June 30, 2017

 
September 30, 2017

 
December 31, 2017

 
March 31, 2018

 
 
March 31, 2017

 
March 31, 2018

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted revenues
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Premiums
 
$
1,708

 
$
1,659

 
$
1,696

 
$
1,692

 
$
1,748

 
 
$
1,708

 
$
1,748

 
 
Universal life and investment-type product policy fees
 
366

 
375

 
458

 
385

 
394

 
 
366

 
394

 
 
Net investment income
 
702

 
729

 
762

 
792

 
795

 
 
702

 
795

 
 
Other revenues
 
10

 
11

 
11

 
11

 
15

 
 
10

 
15

 
 
Total adjusted revenues
 
2,786

 
2,774

 
2,927

 
2,880

 
2,952

 
 
2,786

 
2,952

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Policyholder benefits and claims and policyholder dividends
 
1,315

 
1,247

 
1,223

 
1,290

 
1,343

 
 
1,315

 
1,343

 
 
Interest credited to policyholder account balances
 
321

 
333

 
349

 
348

 
351

 
 
321

 
351

 
 
Capitalization of DAC
 
(420
)
 
(428
)
 
(420
)
 
(442
)
 
(465
)
 
 
(420
)
 
(465
)
 
 
Amortization of DAC and VOBA
 
291

 
290

 
424

 
295

 
314

 
 
291

 
314

 
 
Amortization of negative VOBA
 
(37
)
 
(30
)
 
(24
)
 
(20
)
 
(15
)
 
 
(37
)
 
(15
)
 
 
Interest expense on debt
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Other expenses
 
875

 
895

 
905

 
938

 
952

 
 
875

 
952

 
 
Total adjusted expenses
 
2,345

 
2,307

 
2,457

 
2,409

 
2,480

 
 
2,345

 
2,480

 
 
Adjusted earnings before provision for income tax
 
441

 
467

 
470

 
471

 
472

 
 
441

 
472

 
 
Provision for income tax expense (benefit)
 
146

 
157

 
156

 
161

 
145

 
 
146

 
145

 
 
Adjusted earnings
 
295

 
310

 
314

 
310

 
327

 
 
295

 
327

 
 
Preferred stock dividends
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Adjusted earnings available to common shareholders
 
$
295

 
$
310

 
$
314

 
$
310

 
$
327

 
 
$
295

 
$
327

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reconciliation to Income (Loss) from Continuing Operations, Net of Income Tax
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted earnings
 
$
295

 
$
310

 
$
314

 
$
310

 
$
327

 
 
$
295

 
$
327

 
 
Adjustments from adjusted earnings to income (loss) from continuing operations, net of income tax:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net investment gains (losses)
 
117

 
(19
)
 
(37
)
 
67

 
78

 
 
117

 
78

 
 
Net derivative gains (losses)
 
177

 
(128
)
 
(58
)
 
40

 
259

 
 
177

 
259

 
 
Premiums
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Universal life and investment-type product policy fees
 
1

 
10

 
3

 
(1
)
 
(4
)
 
 
1

 
(4
)
 
 
Net investment income
 
16

 
102

 
80

 
116

 
(86
)
 
 
16

 
(86
)
 
 
Other revenues
 
6

 
5

 
5

 
6

 
4

 
 
6

 
4

 
 
Policyholder benefits and claims and policyholder dividends
 
(5
)
 
(5
)
 
(8
)
 
(2
)
 
—

 
 
(5
)
 
—

 
 
Interest credited to policyholder account balances
 
(20
)
 
(108
)
 
(90
)
 
(127
)
 
74

 
 
(20
)
 
74

 
 
Capitalization of DAC
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Amortization of DAC and VOBA
 
(1
)
 
(10
)
 
(1
)
 
3

 
7

 
 
(1
)
 
7

 
 
Amortization of negative VOBA
 
3

 
3

 
2

 
1

 
1

 
 
3

 
1

 
 
Interest expense on debt
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Other expenses
 
(4
)
 
(9
)
 
(3
)
 
(11
)
 
(4
)
 
 
(4
)
 
(4
)
 
 
Goodwill impairment
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Provision for income tax (expense) benefit
 
(105
)
 
53

 
36

 
(31
)
 
(92
)
 
 
(105
)
 
(92
)
 
 
Income (loss) from continuing operations, net of income tax
 
480

 
204

 
243

 
371

 
564

 
 
480

 
564

 
 
Income (loss) from discontinued operations, net of income tax
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Net income (loss)
 
480

 
204

 
243

 
371

 
564

 
 
480

 
564

 
 
Less: Net income (loss) attributable to noncontrolling interests
 
—

 
1

 
1

 
—

 
—

 
 
—

 
—

 
 
Net income (loss) attributable to MetLife, Inc.
 
480

 
203

 
242

 
371

 
564

 
 
480

 
564

 
 
Less: Preferred stock dividends
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Net income (loss) available to MetLife, Inc.’s common shareholders
 
$
480

 
$
203

 
$
242

 
$
371

 
$
564

 
 
$
480

 
$
564

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Adjusted Premiums, Fees and Other Revenues
 
$
2,084

 
$
2,045

 
$
2,165

 
$
2,088

 
$
2,157

 
 
$
2,084

 
$
2,157

 

19

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ASIA
 
 
ADJUSTED PREMIUMS, FEES AND OTHER REVENUES
 
 
 
 
For the Three Months Ended
 
 
Unaudited (In millions)
 
March 31, 2017
 
 
June 30, 2017
 
 
September 30, 2017
 
 
December 31, 2017
 
 
March 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total adjusted premiums, fees and other revenues
 
$
2,084

 
 
$
2,045

 
 
$
2,165

 
 
$
2,088

 
 
$
2,157

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total adjusted premiums, fees and other revenues, on a constant currency basis
 
$
2,183

 
 
$
2,104

 
 
$
2,223

 
 
$
2,165

 
 
$
2,157

 
 
Add: Operating joint ventures premiums, fees and other revenues, on a constant currency basis (1), (2)
 
201

 
 
197

 
 
204

 
 
227

 
 
243

 
 
Total adjusted premiums, fees and other revenues including operating joint ventures, on a constant currency basis
 
$
2,384

 
 
$
2,301

 
 
$
2,427

 
 
$
2,392

 
 
$
2,400

 
 
 
 
 
OTHER EXPENSES BY MAJOR CATEGORY (3)
 
 
 
 
For the Three Months Ended
 
 
Unaudited (In millions)
 
March 31, 2017
 
 
June 30, 2017
 
 
September 30, 2017
 
 
December 31, 2017
 
 
March 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Direct and allocated expenses
 
$
295

 
 
$
311

 
 
$
337

 
 
$
352

 
 
$
332

 
 
Pension, postretirement and postemployment benefit costs
 
21

 
 
22

 
 
21

 
 
22

 
 
21

 
 
Premium taxes, other taxes, and licenses & fees
 
31

 
 
42

 
 
33

 
 
28

 
 
37

 
 
Commissions and other variable expenses
 
528

 
 
520

 
 
514

 
 
536

 
 
562

 
 
Other expenses, as reported on an adjusted basis
 
$
875

 
 
$
895

 
 
$
905

 
 
$
938

 
 
$
952

 
 
Other expenses, as reported on an adjusted basis, net of capitalization of DAC
 
$
455

 
 
$
467

 
 
$
485

 
 
$
496

 
 
$
487

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other expenses, as reported on an adjusted basis, on a constant currency basis
 
$
909

 
 
$
920

 
 
$
928

 
 
$
970

 
 
$
952

 
 
Add: Operating joint ventures other expenses, as reported on an adjusted basis, on a constant currency basis (1), (2)
 
84

 
 
81

 
 
84

 
 
95

 
 
94

 
 
Other expenses, as reported on an adjusted basis, including operating joint ventures, on a constant currency basis
 
$
993

 
 
$
1,001

 
 
$
1,012

 
 
$
1,065

 
 
$
1,046

 
 
Other expenses, as reported on an adjusted basis, including operating joint ventures, net of capitalization of DAC, on a constant currency basis
 
$
519

 
 
$
526

 
 
$
546

 
 
$
570

 
 
$
539

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SALES ON A CONSTANT CURRENCY BASIS
 
 
 
 
For the Three Months Ended
 
 
Unaudited (In millions)
 
March 31, 2017
 
 
June 30, 2017
 
 
September 30, 2017
 
 
December 31, 2017
 
 
March 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Japan:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Life
 
$
189

 
 
$
158

 
 
$
157

 
 
$
162

 
 
$
165

 
 
Accident & Health
 
91

 
 
81

 
 
77

 
 
91

 
 
81

 
 
Annuities
 
102

 
 
88

 
 
101

 
 
102

 
 
171

 
 
Other
 
3

 
 
3

 
 
2

 
 
2

 
 
2

 
 
Total Japan
 
385

 
 
330

 
 
337

 
 
357

 
 
419

 
 
Other Asia
 
344

 
 
223

 
 
240

 
 
267

 
 
236

 
 
   Total sales
 
$
729

 
 
$
553

 
 
$
577

 
 
$
624

 
 
$
655

 
 
 
 
 
OTHER STATISTICAL INFORMATION
 
 
 
 
 
 
For the Three Months Ended
 
 
Unaudited (In millions)
 
March 31, 2017
 
 
June 30, 2017
 
 
September 30, 2017
 
 
December 31, 2017
 
 
March 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted earnings available to common shareholders
 
$
295

 
 
$
310

 
 
$
314

 
 
$
310

 
 
$
327

 
 
Adjusted earnings available to common shareholders, on a constant currency basis
 
$
306

 
 
$
318

 
 
$
319

 
 
$
317

 
 
$
327

 
 
 
 
(1) Adjusted premiums, universal life and investment-type product policy fees, other revenues and other expenses are reported as part of net investment income on the statement of adjusted earnings available to common shareholders for operating joint ventures.
 
(2) Includes MetLife, Inc.'s percentage interest in operating joint ventures as follows: (i) India, 26%; (ii) Vietnam, 60%; (iii) China, 50%; and (iv) Malaysia, 50%.
 
(3) Certain amounts in prior periods have been reclassified to conform to current period presentation.
 


20

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LATIN AMERICA
STATEMENTS OF ADJUSTED EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
 
 
 
 
For the Three Months Ended
 
For the Year-to-Date Period Ended
 
Unaudited (In millions)
 
March 31, 2017

 
June 30, 2017

 
September 30, 2017

 
December 31, 2017

 
March 31, 2018

 
 
March 31, 2017

 
March 31, 2018

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted revenues
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Premiums
 
$
647

 
$
645

 
$
701

 
$
700

 
$
699

 
 
$
647

 
$
699

 
 
Universal life and investment-type product policy fees
 
260

 
275

 
229

 
280

 
282

 
 
260

 
282

 
 
Net investment income
 
303

 
289

 
299

 
328

 
276

 
 
303

 
276

 
 
Other revenues
 
9

 
8

 
7

 
8

 
8

 
 
9

 
8

 
 
Total adjusted revenues
 
1,219

 
1,217

 
1,236

 
1,316

 
1,265

 
 
1,219

 
1,265

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Policyholder benefits and claims and policyholder dividends
 
633

 
596

 
640

 
666

 
646

 
 
633

 
646

 
 
Interest credited to policyholder account balances
 
82

 
94

 
99

 
94

 
98

 
 
82

 
98

 
 
Capitalization of DAC
 
(82
)
 
(88
)
 
(94
)
 
(100
)
 
(94
)
 
 
(82
)
 
(94
)
 
 
Amortization of DAC and VOBA
 
78

 
68

 
—

 
78

 
60

 
 
78

 
60

 
 
Amortization of negative VOBA
 
—

 
—

 
(1
)
 
—

 
—

 
 
—

 
—

 
 
Interest expense on debt
 
1

 
2

 
1

 
1

 
2

 
 
1

 
2

 
 
Other expenses
 
326

 
357

 
377

 
419

 
338

 
 
326

 
338

 
 
Total adjusted expenses
 
1,038

 
1,029

 
1,022

 
1,158

 
1,050

 
 
1,038

 
1,050

 
 
Adjusted earnings before provision for income tax
 
181

 
188

 
214

 
158

 
215

 
 
181

 
215

 
 
Provision for income tax expense (benefit)
 
38

 
34

 
51

 
33

 
75

 
 
38

 
75

 
 
Adjusted earnings
 
143

 
154

 
163

 
125

 
140

 
 
143

 
140

 
 
Preferred stock dividends
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Adjusted earnings available to common shareholders
 
$
143

 
$
154

 
$
163

 
$
125

 
$
140

 
 
$
143

 
$
140

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reconciliation to Income (Loss) from Continuing Operations, Net of Income Tax
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted earnings
 
$
143

 
$
154

 
$
163

 
$
125

 
$
140

 
 
$
143

 
$
140

 
 
Adjustments from adjusted earnings to income (loss) from continuing operations, net of income tax:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net investment gains (losses)
 
12

 
2

 
20

 
(81
)
 
3

 
 
12

 
3

 
 
Net derivative gains (losses)
 
136

 
(9
)
 
46

 
(65
)
 
149

 
 
136

 
149

 
 
Premiums
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Universal life and investment-type product policy fees
 
—

 
—

 
—

 
—

 
7

 
 
—

 
7

 
 
Net investment income
 
31

 
—

 
29

 
9

 
(7
)
 
 
31

 
(7
)
 
 
Other revenues
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Policyholder benefits and claims and policyholder dividends
 
(20
)
 
(51
)
 
29

 
78

 
(49
)
 
 
(20
)
 
(49
)
 
 
Interest credited to policyholder account balances
 
(43
)
 
(12
)
 
(35
)
 
(15
)
 
(16
)
 
 
(43
)
 
(16
)
 
 
Capitalization of DAC
 
—

 
—

 
—

 
—

 
1

 
 
—

 
1

 
 
Amortization of DAC and VOBA
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Amortization of negative VOBA
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Interest expense on debt
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Other expenses
 
3

 
2

 
2

 
1

 
—

 
 
3

 
—

 
 
Goodwill impairment
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Provision for income tax (expense) benefit
 
(31
)
 
11

 
(30
)
 
9

 
(42
)
 
 
(31
)
 
(42
)
 
 
Income (loss) from continuing operations, net of income tax
 
231

 
97

 
224

 
61

 
186

 
 
231

 
186

 
 
Income (loss) from discontinued operations, net of income tax
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Net income (loss)
 
231

 
97

 
224

 
61

 
186

 
 
231

 
186

 
 
Less: Net income (loss) attributable to noncontrolling interests
 
2

 
2

 
1

 
2

 
1

 
 
2

 
1

 
 
Net income (loss) attributable to MetLife, Inc.
 
229

 
95

 
223

 
59

 
185

 
 
229

 
185

 
 
Less: Preferred stock dividends
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Net income (loss) available to MetLife, Inc.’s common shareholders
 
$
229

 
$
95

 
$
223

 
$
59

 
$
185

 
 
$
229

 
$
185

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Adjusted Premiums, Fees and Other Revenues
 
$
916

 
$
928

 
$
937

 
$
988

 
$
989

 
 
$
916

 
$
989

 

21

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LATIN AMERICA
 
 
OTHER EXPENSES BY MAJOR CATEGORY (1)
 
 
 
 
 
 
 
 
 
 
 
For the Three Months Ended
 
 
Unaudited (In millions)
 
March 31, 2017

 
 
June 30, 2017

 
 
September 30, 2017

 
 
December 31, 2017

 
 
March 31, 2018

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Direct and allocated expenses
 
$
123

 
 
$
144

 
 
$
142

 
 
$
175

 
 
$
105

 
 
Pension, postretirement and postemployment benefit costs
 
1

 
 
1

 
 
1

 
 
2

 
 
1

 
 
Premium taxes, other taxes, and licenses & fees
 
16

 
 
15

 
 
16

 
 
18

 
 
17

 
 
Commissions and other variable expenses
 
186

 
 
197

 
 
218

 
 
224

 
 
215

 
 
Other expenses, as reported on an adjusted basis
 
$
326

 
 
$
357

 
 
$
377

 
 
$
419

 
 
$
338

 
 
Other expenses, as reported on an adjusted basis, net of capitalization of DAC
 
$
244

 
 
$
269

 
 
$
283

 
 
$
319

 
 
$
244

 
 
Other expenses, as reported on an adjusted basis, on a constant currency basis
 
$
335

 
 
$
358

 
 
$
371

 
 
$
424

 
 
$
338

 
 
Other expenses, as reported on an adjusted basis, net of capitalization of DAC, on a constant currency basis
 
$
249

 
 
$
269

 
 
$
278

 
 
$
322

 
 
$
244

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SALES ON A CONSTANT CURRENCY BASIS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the Three Months Ended
 
 
Unaudited (In millions)
 
March 31, 2017

 
 
June 30, 2017

 
 
September 30, 2017

 
 
December 31, 2017

 
 
March 31, 2018

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mexico
 
$
113

 
 
$
92

 
 
$
82

 
 
$
91

 
 
$
77

 
 
Chile
 
72

 
 
70

 
 
82

 
 
78

 
 
89

 
 
All other
 
52

 
 
57

 
 
62

 
 
74

 
 
61

 
 
Total sales
 
$
237

 
 
$
219

 
 
$
226

 
 
$
243

 
 
$
227

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
OTHER STATISTICAL INFORMATION
 
 
 
 
 
 
 
 
 
For the Three Months Ended
 
 
Unaudited (In millions)
 
March 31, 2017

 
 
June 30, 2017

 
 
September 30, 2017

 
 
December 31, 2017

 
 
March 31, 2018

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted premiums, fees and other revenues
 
$
916

 
 
$
928

 
 
$
937

 
 
$
988

 
 
$
989

 
 
Adjusted earnings available to common shareholders
 
$
143

 
 
$
154

 
 
$
163

 
 
$
125

 
 
$
140

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted premiums, fees and other revenues, on a constant currency basis
 
$
970

 
 
$
948

 
 
$
934

 
 
$
1,010

 
 
$
989

 
 
Adjusted earnings available to common shareholders, on a constant currency basis
 
$
157

 
 
$
157

 
 
$
160

 
 
$
128

 
 
$
140

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Certain amounts in prior periods have been reclassified to conform to current period presentation.
 


22

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EMEA
STATEMENTS OF ADJUSTED EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
 
 
 
 
For the Three Months Ended
 
For the Year-to-Date Period Ended
 
Unaudited (In millions)
 
March 31, 2017

 
June 30, 2017

 
September 30, 2017

 
December 31, 2017

 
March 31, 2018

 
 
March 31, 2017

 
March 31, 2018

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted revenues
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Premiums
 
$
502

 
$
505

 
$
527

 
$
527

 
$
551

 
 
$
502

 
$
551

 
 
Universal life and investment-type product policy fees
 
95

 
92

 
109

 
109

 
112

 
 
95

 
112

 
 
Net investment income
 
74

 
78

 
77

 
80

 
75

 
 
74

 
75

 
 
Other revenues
 
17

 
28

 
(2
)
 
15

 
16

 
 
17

 
16

 
 
Total adjusted revenues
 
688

 
703

 
711

 
731

 
754

 
 
688

 
754

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Policyholder benefits and claims and policyholder dividends
 
269

 
270

 
282

 
256

 
294

 
 
269

 
294

 
 
Interest credited to policyholder account balances
 
24

 
25

 
26

 
25

 
25

 
 
24

 
25

 
 
Capitalization of DAC
 
(92
)
 
(100
)
 
(109
)
 
(113
)
 
(118
)
 
 
(92
)
 
(118
)
 
 
Amortization of DAC and VOBA
 
87

 
95

 
78

 
97

 
106

 
 
87

 
106

 
 
Amortization of negative VOBA
 
(3
)
 
(5
)
 
(5
)
 
(6
)
 
(6
)
 
 
(3
)
 
(6
)
 
 
Interest expense on debt
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Other expenses
 
316

 
332

 
347

 
381

 
351

 
 
316

 
351

 
 
Total adjusted expenses
 
601

 
617

 
619

 
640

 
652

 
 
601

 
652

 
 
Adjusted earnings before provision for income tax
 
87

 
86

 
92

 
91

 
102

 
 
87

 
102

 
 
Provision for income tax expense (benefit)
 
12

 
14

 
21

 
12

 
21

 
 
12

 
21

 
 
Adjusted earnings
 
75

 
72

 
71

 
79

 
81

 
 
75

 
81

 
 
Preferred stock dividends
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Adjusted earnings available to common shareholders
 
$
75

 
$
72

 
$
71

 
$
79

 
$
81

 
 
$
75

 
$
81

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reconciliation to Income (Loss) from Continuing Operations, Net of Income Tax
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted earnings
 
$
75

 
$
72

 
$
71

 
$
79

 
$
81

 
 
$
75

 
$
81

 
 
Adjustments from adjusted earnings to income (loss) from continuing operations, net of income tax:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net investment gains (losses)
 
2

 
2

 
(12
)
 
(2
)
 
(6
)
 
 
2

 
(6
)
 
 
Net derivative gains (losses)
 
13

 
5

 
3

 
11

 
1

 
 
13

 
1

 
 
Premiums
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Universal life and investment-type product policy fees
 
7

 
5

 
8

 
6

 
6

 
 
7

 
6

 
 
Net investment income
 
349

 
96

 
109

 
294

 
(293
)
 
 
349

 
(293
)
 
 
Other revenues
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Policyholder benefits and claims and policyholder dividends
 
(9
)
 
(17
)
 
(9
)
 
7

 
5

 
 
(9
)
 
5

 
 
Interest credited to policyholder account balances
 
(339
)
 
(93
)
 
(104
)
 
(278
)
 
289

 
 
(339
)
 
289

 
 
Capitalization of DAC
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Amortization of DAC and VOBA
 
—

 
1

 
(1
)
 
1

 
1

 
 
—

 
1

 
 
Amortization of negative VOBA
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Interest expense on debt
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Other expenses
 
(3
)
 
(4
)
 
(3
)
 
(6
)
 
(4
)
 
 
(3
)
 
(4
)
 
 
Goodwill impairment
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Provision for income tax (expense) benefit
 
(14
)
 
—

 
—

 
(21
)
 
7

 
 
(14
)
 
7

 
 
Income (loss) from continuing operations, net of income tax
 
81

 
67

 
62

 
91

 
87

 
 
81

 
87

 
 
Income (loss) from discontinued operations, net of income tax
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Net income (loss)
 
81

 
67

 
62

 
91

 
87

 
 
81

 
87

 
 
Less: Net income (loss) attributable to noncontrolling interests
 
1

 
—

 
1

 
—

 
—

 
 
1

 
—

 
 
Net income (loss) attributable to MetLife, Inc.
 
80

 
67

 
61

 
91

 
87

 
 
80

 
87

 
 
Less: Preferred stock dividends
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Net income (loss) available to MetLife, Inc.’s common shareholders
 
$
80

 
$
67

 
$
61

 
$
91

 
$
87

 
 
$
80

 
$
87

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Adjusted Premiums, Fees and Other Revenues
 
$
614

 
$
625

 
$
634

 
$
651

 
$
679

 
 
$
614

 
$
679

 

23

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EMEA
 
 
OTHER EXPENSES BY MAJOR CATEGORY (1)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the Three Months Ended
 
 
Unaudited (In millions)
 
 
March 31, 2017
 
 
June 30, 2017
 
 
September 30, 2017
 
 
December 31, 2017
 
 
March 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Direct and allocated expenses
 
 
$
140

 
 
$
139

 
 
$
144

 
 
$
169

 
 
$
136

 
 
Pension, postretirement and postemployment benefit costs
 
 
2

 
 
2

 
 
2

 
 
2

 
 
2

 
 
Premium taxes, other taxes, and licenses & fees
 
 
6

 
 
7

 
 
6

 
 
9

 
 
7

 
 
Commissions and other variable expenses
 
 
168

 
 
184

 
 
195

 
 
201

 
 
206

 
 
Other expenses, as reported on an adjusted basis
 
 
$
316

 
 
$
332

 
 
$
347

 
 
$
381

 
 
$
351

 
 
Other expenses, as reported on an adjusted basis, net of capitalization of DAC
 
 
$
224

 
 
$
232

 
 
$
238

 
 
$
268

 
 
$
233

 
 
Other expenses, as reported on an adjusted basis, on a constant currency basis
 
 
$
342

 
 
$
352

 
 
$
355

 
 
$
391

 
 
$
351

 
 
Other expenses, as reported on an adjusted basis, net of capitalization of DAC, on a constant currency basis
 
 
$
243

 
 
$
246

 
 
$
244

 
 
$
275

 
 
$
233

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
OTHER STATISTICAL INFORMATION
 
 
  
 
 
For the Three Months Ended
 
 
Unaudited (In millions)
 
 
March 31, 2017
 
 
June 30, 2017
 
 
September 30, 2017
 
 
December 31, 2017
 
 
March 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted premiums, fees and other revenues
 
 
$
614

 
 
$
625

 
 
$
634

 
 
$
651

 
 
$
679

 
 
Adjusted earnings available to common shareholders
 
 
$
75

 
 
$
72

 
 
$
71

 
 
$
79

 
 
$
81

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted premiums, fees and other revenues, on a constant currency basis
 
 
$
667

 
 
$
664

 
 
$
651

 
 
$
670

 
 
$
679

 
 
Adjusted earnings available to common shareholders, on a constant currency basis
 
 
$
85

 
 
$
79

 
 
$
73

 
 
$
82

 
 
$
81

 
 
Total sales on a constant currency basis
 
 
$
273

 
 
$
251

 
 
$
260

 
 
$
236

 
 
$
271

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Certain amounts in prior periods have been reclassified to conform to current period presentation.
 

24

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
METLIFE HOLDINGS
STATEMENTS OF ADJUSTED EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
 
 
 
For the Three Months Ended
 
For the Year-to-Date Period Ended
 
Unaudited (In millions)
 
March 31, 2017

 
June 30, 2017

 
September 30, 2017

 
December 31, 2017

 
March 31, 2018

 
 
March 31, 2017

 
March 31, 2018

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted revenues
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Premiums
 
$
1,059

 
$
1,022

 
$
989

 
$
1,074

 
$
950

 
 
$
1,059

 
$
950

 
 
Universal life and investment-type product policy fees
 
362

 
345

 
349

 
305

 
314

 
 
362

 
314

 
 
Net investment income
 
1,441

 
1,401

 
1,390

 
1,375

 
1,352

 
 
1,441

 
1,352

 
 
Other revenues
 
96

 
37

 
37

 
74

 
67

 
 
96

 
67

 
 
Total adjusted revenues
 
2,958

 
2,805

 
2,765

 
2,828

 
2,683

 
 
2,958

 
2,683

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Policyholder benefits and claims and policyholder dividends
 
1,733

 
1,717

 
1,732

 
1,818

 
1,550

 
 
1,733

 
1,550

 
 
Interest credited to policyholder account balances
 
257

 
255

 
255

 
251

 
236

 
 
257

 
236

 
 
Capitalization of DAC
 
(34
)
 
(23
)
 
(14
)
 
(11
)
 
(10
)
 
 
(34
)
 
(10
)
 
 
Amortization of DAC and VOBA
 
74

 
139

 
(70
)
 
159

 
100

 
 
74

 
100

 
 
Amortization of negative VOBA
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Interest expense on debt
 
15

 
5

 
2

 
2

 
2

 
 
15

 
2

 
 
Other expenses
 
340

 
370

 
322

 
333

 
276

 
 
340

 
276

 
 
Total adjusted expenses
 
2,385

 
2,463

 
2,227

 
2,552

 
2,154

 
 
2,385

 
2,154

 
 
Adjusted earnings before provision for income tax
 
573

 
342

 
538

 
276

 
529

 
 
573

 
529

 
 
Provision for income tax expense (benefit)
 
186

 
105

 
174

 
82

 
104

 
 
186

 
104

 
 
Adjusted earnings
 
387

 
237

 
364

 
194

 
425

 
 
387

 
425

 
 
Preferred stock dividends
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Adjusted earnings available to common shareholders
 
$
387

 
$
237

 
$
364

 
$
194

 
$
425

 
 
$
387

 
$
425

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reconciliation to Income (Loss) from Continuing Operations, Net of Income Tax
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted earnings
 
$
387

 
$
237

 
$
364

 
$
194

 
$
425

 
 
$
387

 
$
425

 
 
Adjustments from adjusted earnings to income (loss) from continuing operations, net of income tax:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net investment gains (losses)
 
21

 
3

 
23

 
24

 
(106
)
 
 
21

 
(106
)
 
 
Net derivative gains (losses)
 
(4
)
 
(219
)
 
(98
)
 
(18
)
 
34

 
 
(4
)
 
34

 
 
Premiums
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Universal life and investment-type product policy fees
 
24

 
25

 
25

 
24

 
23

 
 
24

 
23

 
 
Net investment income
 
(57
)
 
(48
)
 
(39
)
 
(37
)
 
(39
)
 
 
(57
)
 
(39
)
 
 
Other revenues
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Policyholder benefits and claims and policyholder dividends
 
(65
)
 
(50
)
 
(128
)
 
(79
)
 
(11
)
 
 
(65
)
 
(11
)
 
 
Interest credited to policyholder account balances
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Capitalization of DAC
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Amortization of DAC and VOBA
 
15

 
44

 
6

 
3

 
(4
)
 
 
15

 
(4
)
 
 
Amortization of negative VOBA
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Interest expense on debt
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Other expenses
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Goodwill impairment
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Provision for income tax (expense) benefit
 
24

 
86

 
74

 
153

 
22

 
 
24

 
22

 
 
Income (loss) from continuing operations, net of income tax
 
345

 
78

 
227

 
264

 
344

 
 
345

 
344

 
 
Income (loss) from discontinued operations, net of income tax
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Net income (loss)
 
345

 
78

 
227

 
264

 
344

 
 
345

 
344

 
 
Less: Net income (loss) attributable to noncontrolling interests
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Net income (loss) attributable to MetLife, Inc.
 
345

 
78

 
227

 
264

 
344

 
 
345

 
344

 
 
Less: Preferred stock dividends
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Net income (loss) available to MetLife, Inc.’s common shareholders
 
$
345

 
$
78

 
$
227

 
$
264

 
$
344

 
 
$
345

 
$
344

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Adjusted Premiums, Fees and Other Revenues
 
$
1,517

 
$
1,404

 
$
1,375

 
$
1,453

 
$
1,331

 
 
$
1,517

 
$
1,331

 

25

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
METLIFE HOLDINGS
 
FUTURE POLICY BENEFITS AND POLICYHOLDER ACCOUNT BALANCES
 
 
 
 
 
 
 
 
 
LIFE & OTHER (1)
 
 
 
 
 
 
 
 
 
 
 
For the Three Months Ended
 
 
Unaudited (In millions)
 
March 31, 2017

 
June 30, 2017

 
September 30, 2017

 
December 31, 2017

 
 
March 31, 2018

 
 
Balance, beginning of period
 
$
79,996

 
$
80,313

 
$
80,313

 
$
80,528

 
 
$
80,795

 
 
Premiums and deposits (2), (3)
 
1,405

 
1,308

 
1,258

 
1,375

 
 
1,243

 
 
Surrenders and withdrawals
 
(618
)
 
(611
)
 
(584
)
 
(646
)
 
 
(638
)
 
 
Benefit payments
 
(763
)
 
(659
)
 
(642
)
 
(679
)
 
 
(733
)
 
 
Net Flows
 
24

 
38

 
32

 
50

 
 
(128
)
 
 
Net transfers from (to) separate account
 
25

 
9

 
12

 
11

 
 
8

 
 
Interest
 
812

 
815

 
819

 
825

 
 
811

 
 
Policy charges
 
(201
)
 
(200
)
 
(199
)
 
(199
)
 
 
(199
)
 
 
Other
 
(343
)
 
(662
)
 
(449
)
 
(420
)
 
 
(1,295
)
 
 
Balance, end of period
 
$
80,313

 
$
80,313

 
$
80,528

 
$
80,795

 
 
$
79,992

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ANNUITIES
 
For the Three Months Ended
 
 
Unaudited (In millions)
 
March 31, 2017

 
June 30, 2017

 
September 30, 2017

 
December 31, 2017

 
 
March 31, 2018

 
 
Balance, beginning of period
 
$
22,264

 
$
21,522

 
$
21,329

 
$
21,180

 
 
$
20,791

 
 
Premiums and deposits (2), (3)
 
202

 
135

 
134

 
109

 
 
109

 
 
Surrenders and withdrawals
 
(358
)
 
(375
)
 
(372
)
 
(470
)
 
 
(450
)
 
 
Benefit payments
 
(199
)
 
(178
)
 
(154
)
 
(161
)
 
 
(170
)
 
 
Net Flows
 
(355
)
 
(418
)
 
(392
)
 
(522
)
 
 
(511
)
 
 
Net transfers from (to) separate account
 
10

 
39

 
66

 
16

 
 
33

 
 
Interest
 
160

 
159

 
158

 
156

 
 
154

 
 
Policy charges
 
(5
)
 
(5
)
 
(5
)
 
(4
)
 
 
(5
)
 
 
Other
 
(552
)
 
32

 
24

 
(35
)
 
 
(43
)
 
 
Balance, end of period
 
$
21,522

 
$
21,329

 
$
21,180

 
$
20,791

 
 
$
20,419

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SEPARATE ACCOUNT LIABILITIES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LIFE & OTHER
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the Three Months Ended
 
 
Unaudited (In millions)
 
March 31, 2017

 
June 30, 2017

 
September 30, 2017

 
December 31, 2017

 
 
March 31, 2018

 
 
Balance, beginning of period
 
$
5,200

 
$
5,415

 
$
5,537

 
$
5,670

 
 
$
5,855

 
 
Premiums and deposits (3)
 
76

 
73

 
70

 
69

 
 
71

 
 
Surrenders and withdrawals
 
(61
)
 
(63
)
 
(56
)
 
(63
)
 
 
(59
)
 
 
Benefit payments
 
(7
)
 
(7
)
 
(6
)
 
(6
)
 
 
(8
)
 
 
Net Flows
 
8

 
3

 
8

 
—

 
 
4

 
 
Investment performance
 
306

 
201

 
207

 
270

 
 
(9
)
 
 
Net transfers from (to) general account
 
(25
)
 
(9
)
 
(12
)
 
(11
)
 
 
(8
)
 
 
Policy charges
 
(72
)
 
(71
)
 
(69
)
 
(71
)
 
 
(68
)
 
 
Other
 
(2
)
 
(2
)
 
(1
)
 
(3
)
 
 
(607
)
 
 
Balance, end of period
 
$
5,415

 
$
5,537

 
$
5,670

 
$
5,855

 
 
$
5,167

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ANNUITIES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the Three Months Ended
 
 
Unaudited (In millions)
 
March 31, 2017

 
June 30, 2017

 
September 30, 2017

 
December 31, 2017

 
 
March 31, 2018

 
 
Balance, beginning of period
 
$
43,623

 
$
44,667

 
$
44,907

 
$
45,278

 
 
$
45,678

 
 
Premiums and deposits (3)
 
175

 
168

 
133

 
107

 
 
107

 
 
Surrenders and withdrawals
 
(903
)
 
(977
)
 
(964
)
 
(1,125
)
 
 
(1,188
)
 
 
Benefit payments
 
(90
)
 
(92
)
 
(90
)
 
(106
)
 
 
(113
)
 
 
Net Flows
 
(818
)
 
(901
)
 
(921
)
 
(1,124
)
 
 
(1,194
)
 
 
Investment performance
 
2,090

 
1,410

 
1,587

 
1,766

 
 
(275
)
 
 
Net transfers from (to) general account
 
(10
)
 
(39
)
 
(66
)
 
(16
)
 
 
(33
)
 
 
Policy charges
 
(219
)
 
(230
)
 
(230
)
 
(228
)
 
 
(218
)
 
 
Other
 
1

 
—

 
1

 
2

 
 
—

 
 
Balance, end of period
 
$
44,667

 
$
44,907

 
$
45,278

 
$
45,678

 
 
$
43,958

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Long-Term Care and Japan reinsurance are reported as part of "Other" within Life & Other.
 
(2) Includes premiums and deposits directed to the general account investment option of variable products.
 
(3) Includes company-sponsored internal exchanges.

26

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
METLIFE HOLDINGS
 
 
OTHER EXPENSES BY MAJOR CATEGORY (1)
 
 
 
 
 
 
 
 
 
  
 
For the Three Months Ended
 
 
Unaudited (In millions)
 
March 31, 2017

 
 
June 30, 2017

 
 
September 30, 2017

 
 
December 31, 2017

 
 
March 31, 2018

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Direct and allocated expenses
 
$
175

 
 
$
198

 
 
$
204

 
 
$
209

 
 
$
184

 
 
Pension, postretirement and postemployment benefit costs

 
25

 
 
22

 
 
25

 
 
23

 
 
5

 
 
Premium taxes, other taxes, and licenses & fees
 
20

 
 
13

 
 
19

 
 
17

 
 
20

 
 
Commissions and other variable expenses
 
120

 
 
137

 
 
74

 
 
84

 
 
67

 
 
Other expenses, as reported on an adjusted basis
 
$
340

 
 
$
370

 
 
$
322

 
 
$
333

 
 
$
276

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SPREAD BY PRODUCT
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
VARIABLE & UNIVERSAL LIFE 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the Three Months Ended
 
 
Unaudited
 
March 31, 2017

 
 
June 30, 2017

 
 
September 30, 2017

 
 
December 31, 2017

 
 
March 31, 2018

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment income yield excluding variable investment income
 
5.89
%
 
 
5.62
%
 
 
5.45
%
 
 
5.42
%
 
 
5.38
%
 
 
Variable investment income yield
 
0.24
%
 
 
0.23
%
 
 
0.23
%
 
 
0.16
%
 
 
0.18
%
 
 
Total investment income yield
 
6.13
%
 
 
5.85
%
 
 
5.68
%
 
 
5.58
%
 
 
5.56
%
 
 
Average crediting rate
 
4.62
%
 
 
4.56
%
 
 
4.50
%
 
 
4.48
%
 
 
4.51
%
 
 
Annualized general account spread
 
1.51
%
 
 
1.29
%
 
 
1.18
%
 
 
1.10
%
 
 
1.05
%
 
 
 
 


 
 


 
 


 
 


 
 


 
 
Annualized general account spread excluding variable investment income yield
 
1.27
%
 
 
1.06
%
 
 
0.95
%
 
 
0.94
%
 
 
0.87
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ANNUITIES (2)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the Three Months Ended
 
 
Unaudited
 
March 31, 2017

 
 
June 30, 2017

 
 
September 30, 2017

 
 
December 31, 2017

 
 
March 31, 2018

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment income yield excluding variable investment income
 
5.03
%
 
 
4.91
%
 
 
4.78
%
 
 
4.79
%
 
 
4.78
%
 
 
Variable investment income yield
 
0.29
%
 
 
0.26
%
 
 
0.28
%
 
 
0.20
%
 
 
0.53
%
 
 
Total investment income yield
 
5.32
%
 
 
5.17
%
 
 
5.06
%
 
 
4.99
%
 
 
5.31
%
 
 
Average crediting rate
 
3.16
%
 
 
3.14
%
 
 
3.11
%
 
 
3.12
%
 
 
3.16
%
 
 
Annualized general account spread
 
2.16
%
 
 
2.03
%
 
 
1.95
%
 
 
1.87
%
 
 
2.15
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annualized general account spread excluding variable investment income yield
 
1.87
%
 
 
1.77
%
 
 
1.67
%
 
 
1.67
%
 
 
1.62
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Certain amounts in prior periods have been reclassified to conform to current period presentation.
 
 
(2) Represents the general account spread for deferred and payout annuities.
 


27

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
METLIFE HOLDINGS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
OTHER STATISTICAL INFORMATION
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

For the Three Months Ended

 
Unaudited (In millions, except ratios)

March 31, 2017



June 30, 2017



September 30, 2017



December 31, 2017



March 31, 2018


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Life (1)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted premiums, fees and other revenues
 
$
1,002

 
 
$
946

 
 
$
922

 
 
$
993

 
 
$
879

 
 
Interest adjusted benefit ratio
 
48.6
%
 
 
51.1
%
 
 
48.0
%
 
 
56.5
%
 
 
47.6
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Lapse Ratio (2)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Traditional life
 
4.5
%
 
 
4.6
%
 
 
4.7
%
 
 
4.7
%
 
 
4.9
%
 
 
Variable & universal life
 
4.5
%
 
 
4.5
%
 
 
4.4
%
 
 
4.4
%
 
 
4.3
%
 
 
Fixed annuity
 
7.2
%
 
 
7.3
%
 
 
6.8
%
 
 
6.9
%
 
 
7.0
%
 
 
Variable annuity
 
7.1
%
 
 
7.6
%
 
 
8.0
%
 
 
8.5
%
 
 
9.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Represents traditional life and variable & universal life, components of Life & Other.
 
 
(2) Lapse ratios are calculated based on the average of the most recent 12 months of experience.
 


28

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CORPORATE & OTHER
STATEMENTS OF ADJUSTED EARNINGS AVAILABLE TO COMMON SHAREHOLDERS
 
 
 
For the Three Months Ended
 
For the Year-to-Date Period Ended
 
Unaudited (In millions)
 
March 31, 2017

 
June 30, 2017

 
September 30, 2017

 
December 31, 2017

 
March 31, 2018

 
 
March 31, 2017

 
March 31, 2018

 
 
Adjusted revenues
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Premiums
 
$
38

 
$
8

 
$
13

 
$
(5
)
 
$
13

 
 
$
38

 
$
13

 
 
Universal life and investment-type product policy fees
 
—

 
—

 
—

 
1

 
—

 
 
—

 
—

 
 
Net investment income
 
40

 
41

 
26

 
(79
)
 
59

 
 
40

 
59

 
 
Other revenues
 
59

 
61

 
65

 
86

 
81

 
 
59

 
81

 
 
Total adjusted revenues
 
137

 
110

 
104

 
3

 
153

 
 
137

 
153

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Policyholder benefits and claims and policyholder dividends
 
25

 
1

 
7

 
(7
)
 
(3
)
 
 
25

 
(3
)
 
 
Interest credited to policyholder account balances
 
1

 
—

 
—

 
—

 
—

 
 
1

 
—

 
 
Capitalization of DAC
 
(1
)
 
(3
)
 
(2
)
 
(2
)
 
(2
)
 
 
(1
)
 
(2
)
 
 
Amortization of DAC and VOBA
 
1

 
1

 
3

 
1

 
2

 
 
1

 
2

 
 
Amortization of negative VOBA
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Interest expense on debt
 
277

 
277

 
279

 
272

 
280

 
 
277

 
280

 
 
Other expenses
 
175

 
202

 
237

 
280

 
232

 
 
175

 
232

 
 
Total adjusted expenses
 
478

 
478

 
524

 
544

 
509

 
 
478

 
509

 
 
Adjusted earnings before provision for income tax
 
(341
)
 
(368
)
 
(420
)
 
(541
)
 
(356
)
 
 
(341
)
 
(356
)
 
 
Provision for income tax expense (benefit)
 
(271
)
 
(269
)
 
(90
)
 
(58
)
 
(159
)
 
 
(271
)
 
(159
)
 
 
Adjusted earnings
 
(70
)
 
(99
)
 
(330
)
 
(483
)
 
(197
)
 
 
(70
)
 
(197
)
 
 
Preferred stock dividends
 
6

 
46

 
6

 
45

 
6

 
 
6

 
6

 
 
Adjusted earnings available to common shareholders
 
$
(76
)
 
$
(145
)
 
$
(336
)
 
$
(528
)
 
$
(203
)
 
 
$
(76
)
 
$
(203
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reconciliation to Income (Loss) from Continuing Operations, Net of Income Tax
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted earnings
 
$
(70
)
 
$
(99
)
 
$
(330
)
 
$
(483
)
 
$
(197
)
 
 
$
(70
)
 
$
(197
)
 
 
Adjustments from adjusted earnings to income (loss) from continuing operations, net of income tax:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net investment gains (losses)
 
(46
)
 
116

 
(696
)
 
(4
)
 
(192
)
 
 
(46
)
 
(192
)
 
 
Net derivative gains (losses)
 
(386
)
 
23

 
(2
)
 
(36
)
 
(40
)
 
 
(386
)
 
(40
)
 
 
Premiums
 
(174
)
 
(136
)
 
(37
)
 
—

 
—

 
 
(174
)
 
—

 
 
Universal life and investment-type product policy fees
 
(20
)
 
(14
)
 
—

 
—

 
—

 
 
(20
)
 
—

 
 
Net investment income
 
(24
)
 
(19
)
 
3

 
4

 
5

 
 
(24
)
 
5

 
 
Other revenues
 
(59
)
 
(57
)
 
(19
)
 
—

 
79

 
 
(59
)
 
79

 
 
Policyholder benefits and claims and policyholder dividends
 
146

 
103

 
(113
)
 
(1
)
 
—

 
 
146

 
—

 
 
Interest credited to policyholder account balances
 
(14
)
 
(14
)
 
(5
)
 
—

 
—

 
 
(14
)
 
—

 
 
Capitalization of DAC
 
(16
)
 
(14
)
 
(4
)
 
—

 
—

 
 
(16
)
 
—

 
 
Amortization of DAC and VOBA
 
(32
)
 
16

 
(77
)
 
—

 
—

 
 
(32
)
 
—

 
 
Amortization of negative VOBA
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Interest expense on debt
 
12

 
4

 
—

 
—

 
—

 
 
12

 
—

 
 
Other expenses
 
(133
)
 
(44
)
 
(76
)
 
(256
)
 
(86
)
 
 
(133
)
 
(86
)
 
 
Goodwill impairment
 
—

 
—

 
—

 
—

 
—

 
 
—

 
—

 
 
Provision for income tax (expense) benefit
 
286

 
3

 
918

 
1,755

 
18

 
 
286

 
18

 
 
Income (loss) from continuing operations, net of income tax
 
(530
)
 
(132
)
 
(438
)
 
979

 
(413
)
 
 
(530
)
 
(413
)
 
 
Income (loss) from discontinued operations, net of income tax
 
(76
)
 
58

 
(968
)
 
—

 
—

 
 
(76
)
 
—

 
 
Net income (loss)
 
(606
)
 
(74
)
 
(1,406
)
 
979

 
(413
)
 
 
(606
)
 
(413
)
 
 
Less: Net income (loss) attributable to noncontrolling interests
 
—

 
—

 
3

 
(4
)
 
3

 
 
—

 
3

 
 
Net income (loss) attributable to MetLife, Inc.
 
(606
)
 
(74
)
 
(1,409
)
 
983

 
(416
)
 
 
(606
)
 
(416
)
 
 
Less: Preferred stock dividends
 
6

 
46

 
6

 
45

 
6

 
 
6

 
6

 
 
Net income (loss) available to MetLife, Inc.’s common shareholders
 
$
(612
)
 
$
(120
)
 
$
(1,415
)
 
$
938

 
$
(422
)
 
 
$
(612
)
 
$
(422
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Adjusted Premiums, Fees and Other Revenues
 
$
97

 
$
69

 
$
78

 
$
82

 
$
94

 
 
$
97

 
$
94

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ADJUSTED EARNINGS AVAILABLE TO COMMON SHAREHOLDERS BY SOURCE (1)

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
For the Three Months Ended
 
For the Year-to-Date Period Ended
 
Unaudited (In millions)
 
March 31, 2017

 
June 30, 2017

 
September 30, 2017

 
December 31, 2017

 
March 31, 2018

 
 
March 31, 2017

 
March 31, 2018

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other business activities
 
$
8

 
$
6

 
$
5

 
$
9

 
$
6

 
 
$
8

 
$
6

 
 
Other net investment income
 
69

 
75

 
49

 
28

 
57

 
 
69

 
57

 
 
Interest expense on debt
 
(298
)
 
(303
)
 
(300
)
 
(297
)
 
(293
)
 
 
(298
)
 
(293
)
 
 
Corporate initiatives and projects
 
(49
)
 
(103
)
 
(45
)
 
(78
)
 
(39
)
 
 
(49
)
 
(39
)
 
 
Other
 
(71
)
 
(47
)
 
(128
)
 
(138
)
 
(87
)
 
 
(71
)
 
(87
)
 
 
Provision for income tax expense (benefit) and other tax-related items
 
271

 
273

 
89

 
(7
)
 
159

 
 
271

 
159

 
 
Preferred stock dividends
 
(6
)
 
(46
)
 
(6
)
 
(45
)
 
(6
)
 
 
(6
)
 
(6
)
 
 
Adjusted earnings available to common shareholders
 
$
(76
)
 
$
(145
)
 
$
(336
)
 
$
(528
)
 
$
(203
)
 
 
$
(76
)
 
$
(203
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Amounts reported on a pre-tax basis, which were previously reported post-tax.
 
 
 

29

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
INVESTMENTS
INVESTMENT PORTFOLIO RESULTS BY ASSET CATEGORY AND ANNUALIZED YIELDS
 
 
 
 
At or For the Three Months Ended
 
 
Unaudited (In millions, except yields)
 
March 31, 2017

 
June 30, 2017

 
September 30, 2017

 
December 31, 2017

 
 
March 31, 2018

 
 
Fixed Maturity Securities
 
 
 
 
 
 
 
 
 
 
 
 
 
Yield (1)
 
4.34
 %
 
4.28
 %
 
4.25
 %
 
4.30
 %
 
 
4.19
 %
 
 
Investment income (2), (3), (4)
 
$
2,825

 
$
2,820

 
$
2,843

 
$
2,913

 
 
$
2,839

 
 
Investment gains (losses) (3)
 
(4
)
 
43

 
279

 
—

 
 
(95
)
 
 
Ending carrying value (2), (3)
 
295,359

 
301,267

 
309,607

 
309,796

 
 
305,647

 
 
Mortgage Loans
 
 
 
 
 
 
 
 
 
 
 
 
 
Yield (1)
 
4.47
 %
 
4.53
 %
 
4.78
 %
 
4.55
 %
 
 
4.53
 %
 
 
Investment income (4)
 
736

 
758

 
809

 
778

 
 
792

 
 
Investment gains (losses)
 
(12
)
 
(14
)
 
28

 
11

 
 
(21
)
 
 
Ending carrying value
 
66,633

 
67,309

 
68,057

 
68,731

 
 
71,055

 
 
Real Estate and Real Estate Joint Ventures
 
 
 
 
 
 
 
 
 
 
 
 
 
Yield (1)
 
3.20
 %
 
3.42
 %
 
2.80
 %
 
3.29
 %
 
 
3.39
 %
 
 
Investment income (3)
 
73

 
79

 
66

 
79

 
 
83

 
 
Investment gains (losses) (3)
 
(3
)
 
270

 
169

 
167

 
 
25

 
 
Ending carrying value
 
9,293

 
9,256

 
9,486

 
9,637

 
 
9,862

 
 
Policy Loans
 
 
 
 
 
 
 
 
 
 
 
 
 
Yield (1)
 
5.33
 %
 
5.38
 %
 
5.40
 %
 
5.46
 %
 
 
5.12
 %
 
 
Investment income
 
127

 
129

 
130

 
131

 
 
124

 
 
Ending carrying value
 
9,603

 
9,558

 
9,585

 
9,669

 
 
9,744

 
 
Equity Securities
 
 
 
 
 
 
 
 
 
 
 
 
 
Yield (1)
 
4.90
 %
 
4.58
 %
 
4.92
 %
 
6.37
 %
 
 
3.79
 %
 
 
Investment income
 
31

 
31

 
31

 
36

 
 
16

 
 
Investment gains (losses)
 
35

 
1

 
2

 
54

 
 
(31
)
 
 
Ending carrying value
 
3,088

 
3,137

 
2,776

 
2,513

 
 
1,544

 
 
Other Limited Partnership Interests
 
 
 
 
 
 
 
 
 
 
 
 
 
Yield (1)
 
18.58
 %
 
14.91
 %
 
15.94
 %
 
10.64
 %
 
 
15.10
 %
 
 
Investment income
 
240

 
194

 
214

 
149

 
 
219

 
 
Investment gains (losses) (3)
 
(7
)
 
(11
)
 
(33
)
 
(8
)
 
 
—

 
 
Ending carrying value
 
5,166

 
5,251

 
5,501

 
5,708

 
 
5,876

 
 
Cash and Short-term Investments
 
 
 
 
 
 
 
 
 
 
 
 
 
Yield (1)
 
1.42
 %
 
1.61
 %
 
1.13
 %
 
1.73
 %
 
 
1.87
 %
 
 
Investment income
 
33

 
34

 
25

 
40

 
 
46

 
 
Investment gains (losses)
 
2

 
1

 
2

 
(21
)
 
 
(4
)
 
 
Ending carrying value
 
20,509

 
18,766

 
20,240

 
17,571

 
 
19,048

 
 
Other Invested Assets (1)
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment income
 
214

 
170

 
173

 
98

 
 
228

 
 
Investment gains (losses) (3)
 
(28
)
 
(72
)
 
28

 
(25
)
 
 
(126
)
 
 
Ending carrying value
 
17,003

 
16,559

 
17,652

 
17,263

 
 
17,486

 
 
Total Investments
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment income yield (1)
 
4.65
 %
 
4.54
 %
 
4.54
 %
 
4.40
 %
 
 
4.50
 %
 
 
Investment fees and expenses yield
 
(0.15
)%
 
(0.13
)%
 
(0.14
)%
 
(0.13
)%
 
 
(0.13
)%
 
 
Net Investment Income Yield (1), (3)
 
4.50
 %
 
4.41
 %
 
4.40
 %
 
4.27
 %
 
 
4.37
 %
 
 
Investment income
 
$
4,279

 
$
4,215

 
$
4,291

 
$
4,224

 
 
$
4,347

 
 
Investment fees and expenses
 
(134
)
 
(123
)
 
(133
)
 
(121
)
 
 
(128
)
 
 
Net investment income including Divested businesses
 
4,145

 
4,092

 
4,158

 
4,103

 
 
4,219

 
 
Less: Net investment income from Divested businesses
 
(27
)
 
(21
)
 
2

 
—

 
 
—

 
 
Net Investment Income, as reported on an adjusted basis (3)
 
$
4,172

 
$
4,113

 
$
4,156

 
$
4,103

 
 
$
4,219

 
 
Ending Carrying Value (3)
 
$
426,654

 
$
431,103

 
$
442,904

 
$
440,888

 
 
$
440,262

 
 
Gross investment gains
 
$
239

 
$
421

 
$
647

 
$
396

 
 
$
163

 
 
Gross investment losses
 
(224
)
 
(100
)
 
(111
)
 
(195
)
 
 
(297
)
 
 
Writedowns
 
(32
)
 
(103
)
 
(61
)
 
(23
)
 
 
(118
)
 
 
Investment Portfolio Gains (Losses) (3)
 
(17
)
 
218

 
475

 
178

 
 
(252
)
 
 
Investment portfolio gains (losses) income tax (expense) benefit
 
19

 
(69
)
 
(187
)
 
(59
)
 
 
51

 
 
Investment Portfolio Gains (Losses), Net of Income Tax
 
$
2

 
$
149

 
$
288

 
$
119

 
 
$
(201
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative gains (losses) (3)
 
$
(344
)
 
$
(308
)
 
$
(214
)
 
$
(134
)
 
 
$
244

 
 
Derivative gains (losses) income tax (expense) benefit
 
143

 
95

 
79

 
168

 
 
(84
)
 
 
Derivative Gains (Losses), Net of Income Tax
 
$
(201
)
 
$
(213
)
 
$
(135
)
 
$
34

 
 
$
160

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) This yield table presentation is consistent with how we measure our investment performance for management purposes, and we believe it enhances understanding of our investment portfolio results. We calculate yields using investment income, as reported on an adjusted basis, as a percent of average quarterly asset carrying values. Investment income excludes recognized gains and losses, includes the impact of changes in foreign currency exchange rates and reflects the adjustments described on Page A-7 and presented on Page A-1. Asset carrying values exclude unrealized gains (losses), collateral received in connection with our securities lending program, annuities funding structured settlement claims, freestanding derivative assets, collateral received from derivative counterparties, the effects of consolidating under GAAP certain VIEs that are treated as CSEs, contractholder-directed unit-linked investments and FVO Brighthouse Common Stock. A yield is not presented for other invested assets, as it is not considered a meaningful measure of performance for this asset class.
 
(2) Fixed maturity securities includes $649 million, $651 million, $713 million, $865 million and $936 million in ending carrying value, and $29 million, $16 million, $16 million, $7 million and $6 million of investment income related to fair value option securities at or for the three months ended March 31, 2017, June 30,2017, September 30, 2017, December 31, 2017 and March 31, 2018, respectively.
 
(3) The reconciliation of the remaining yield table captions to the most directly comparable measures presented in accordance with GAAP are as follows at or for the periods ended March 31, 2017, June 30, 2017, September 30, 2017, December 31, 2017 and March 31, 2018, respectively: A) Contractholder-directed equity securities and fair value option securities (included within fixed maturity securities above) ending carrying value excludes contractholder-directed unit-linked investments and FVO Brighthouse Common Stock of $13,743 million, $14,104 million, $15,818 million, $15,874 million and $15,502 million; B) Ending carrying value excludes the following effects of consolidating under GAAP certain VIEs that are treated as CSEs: Contractholder-directed equity securities and fair value option securities (included within fixed maturity securities above) of $7 million, $7 million, $7 million, $6 million and $6 million and cash and short-term investments of $1 million, $0, $0, $0 and $0; C) Net investment income adjustments as presented on Page 5; D) Investment portfolio gains (losses) as presented above and the GAAP adjustments as presented below; and E) Derivative gains (losses) as presented above and GAAP adjustments as presented below:
 
 
 
 
 
 
 
 
For the Three Months Ended
 
 
 
 
March 31, 2017

 
June 30, 2017

 
September 30, 2017

 
December 31, 2017

 
 
March 31, 2018

 
 
Net investment gains (losses) - GAAP basis
 
$
88

 
$
104

 
$
(606
)
 
$
106

 
 
$
(333
)
 
 
Less: Operating joint venture adjustments
 
1

 
(1
)
 
—

 
—

 
 
(1
)
 
 
Less: Net investment gains (losses) related to CSEs
 
—

 
—

 
—

 
—

 
 
—

 
 
Less: Partnerships at fair value
 
—

 
—

 
—

 
—

 
 
(5
)
 
 
Less: Other gains (losses) reported in net investment gains (losses) on GAAP basis
 
104

 
(113
)
 
(1,081
)
 
(72
)
 
 
(75
)
 
 
Investment portfolio gains (losses) including Divested businesses - in above yield table
 
$
(17
)
 
$
218

 
$
475

 
$
178

 
 
$
(252
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the Three Months Ended
 
 
 
 
March 31, 2017

 
June 30, 2017

 
September 30, 2017

 
December 31, 2017

 
 
March 31, 2018

 
 
Net derivative gains (losses) - GAAP basis
 
$
(212
)
 
$
(200
)
 
$
(123
)
 
$
(55
)
 
 
$
349

 
 
Less: Investment hedge adjustments
 
139

 
114

 
97

 
85

 
 
110

 
 
Less: Settlement of foreign currency earnings hedges
 
(6
)
 
(5
)
 
(5
)
 
(6
)
 
 
(4
)
 
 
Less: PAB hedge adjustments
 
(1
)
 
(1
)
 
(1
)
 
—

 
 
(1
)
 
 
Derivative gains (losses) including Divested businesses - in above yield table
 
$
(344
)
 
$
(308
)
 
$
(214
)
 
$
(134
)
 
 
$
244

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(4) Investment income from fixed maturity securities and mortgage loans includes prepayment fees.

30

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
INVESTMENTS
INVESTMENT PORTFOLIO RESULTS BY ASSET CATEGORY AND ANNUALIZED YIELDS
 
 
 
 
At or For the Year-to-Date Period Ended
 
 
Unaudited (In millions, except yields)
 
March 31, 2017

 
June 30, 2017

 
September 30, 2017

 
December 31, 2017

 
 
March 31, 2018

 
 
Fixed Maturity Securities
 
 
 
 
 
 
 
 
 
 
 
 
 
Yield (1)
 
4.34
 %
 
4.31
 %
 
4.29
 %
 
4.29
 %
 
 
4.19
 %
 
 
Investment income (2), (3), (4)
 
$
2,825

 
$
5,645

 
$
8,488

 
$
11,401

 
 
$
2,839

 
 
Investment gains (losses) (3)
 
(4
)
 
39

 
318

 
318

 
 
(95
)
 
 
Ending carrying value (2), (3)
 
295,359

 
301,267

 
309,607

 
309,796

 
 
305,647

 
 
Mortgage Loans
 
 
 
 
 
 
 
 
 
 
 
 
 
Yield (1)
 
4.47
 %
 
4.50
 %
 
4.59
 %
 
4.58
 %
 
 
4.53
 %
 
 
Investment income (4)
 
736

 
1,494

 
2,303

 
3,081

 
 
792

 
 
Investment gains (losses)
 
(12
)
 
(26
)
 
2

 
13

 
 
(21
)
 
 
Ending carrying value
 
66,633

 
67,309

 
68,057

 
68,731

 
 
71,055

 
 
Real Estate and Real Estate Joint Ventures
 
 
 
 
 
 
 
 
 
 
 
 
 
Yield (1)
 
3.20
 %
 
3.31
 %
 
3.14
 %
 
3.18
 %
 
 
3.39
 %
 
 
Investment income (3)
 
73

 
152

 
218

 
297

 
 
83

 
 
Investment gains (losses) (3)
 
(3
)
 
267

 
436

 
603

 
 
25

 
 
Ending carrying value
 
9,293

 
9,256

 
9,486

 
9,637

 
 
9,862

 
 
Policy Loans
 
 
 
 
 
 
 
 
 
 
 
 
 
Yield (1)
 
5.33
 %
 
5.36
 %
 
5.37
 %
 
5.39
 %
 
 
5.12
 %
 
 
Investment income
 
127

 
256

 
386

 
517

 
 
124

 
 
Ending carrying value
 
9,603

 
9,558

 
9,585

 
9,669

 
 
9,744

 
 
Equity Securities
 
 
 
 
 
 
 
 
 
 
 
 
 
Yield (1)
 
4.90
 %
 
4.74
 %
 
4.80
 %
 
5.15
 %
 
 
3.79
 %
 
 
Investment income
 
31

 
62

 
93

 
129

 
 
16

 
 
Investment gains (losses)
 
35

 
36

 
38

 
92

 
 
(31
)
 
 
Ending carrying value
 
3,088

 
3,137

 
2,776

 
2,513

 
 
1,544

 
 
Other Limited Partnership Interests
 
 
 
 
 
 
 
 
 
 
 
 
 
Yield (1)
 
18.58
 %
 
16.74
 %
 
16.46
 %
 
14.93
 %
 
 
15.10
 %
 
 
Investment income
 
240

 
434

 
648

 
797

 
 
219

 
 
Investment gains (losses) (3)
 
(7
)
 
(18
)
 
(51
)
 
(59
)
 
 
—

 
 
Ending carrying value
 
5,166

 
5,251

 
5,501

 
5,708

 
 
5,876

 
 
Cash and Short-term Investments
 
 
 
 
 
 
 
 
 
 
 
 
 
Yield (1)
 
1.42
 %
 
1.52
 %
 
1.39
 %
 
1.48
 %
 
 
1.87
 %
 
 
Investment income
 
33

 
67

 
92

 
132

 
 
46

 
 
Investment gains (losses)
 
2

 
3

 
5

 
(16
)
 
 
(4
)
 
 
Ending carrying value
 
20,509

 
18,766

 
20,240

 
17,571

 
 
19,048

 
 
Other Invested Assets (1)
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment income
 
214

 
384

 
557

 
655

 
 
228

 
 
Investment gains (losses) (3)
 
(28
)
 
(100
)
 
(72
)
 
(97
)
 
 
(126
)
 
 
Ending carrying value
 
17,003

 
16,559

 
17,652

 
17,263

 
 
17,486

 
 
Total Investments
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment income yield (1)
 
4.65
 %
 
4.60
 %
 
4.58
 %
 
4.53
 %
 
 
4.50
 %
 
 
Investment fees and expenses yield
 
(0.15
)%
 
(0.14
)%
 
(0.14
)%
 
(0.14
)%
 
 
(0.13
)%
 
 
Net Investment Income Yield (1), (3)
 
4.50
 %
 
4.46
 %
 
4.44
 %
 
4.39
 %
 
 
4.37
 %
 
 
Investment income
 
$
4,279

 
$
8,494

 
$
12,785

 
$
17,009

 
 
$
4,347

 
 
Investment fees and expenses
 
(134
)
 
(257
)
 
(390
)
 
(511
)
 
 
(128
)
 
 
Net investment income including Divested businesses
 
4,145

 
8,237

 
12,395

 
16,498

 
 
4,219

 
 
Less: Net investment income from Divested businesses
 
(27
)
 
(48
)
 
(46
)
 
(46
)
 
 
—

 
 
Net Investment Income, as reported on an adjusted basis (3)
 
$
4,172

 
$
8,285

 
$
12,441

 
$
16,544

 
 
$
4,219

 
 
Ending Carrying Value (3)
 
$
426,654

 
$
431,103

 
$
442,904

 
$
440,888

 
 
$
440,262

 
 
Gross investment gains
 
$
239

 
$
660

 
$
1,307

 
$
1,703

 
 
$
163

 
 
Gross investment losses
 
(224
)
 
(324
)
 
(435
)
 
(630
)
 
 
(297
)
 
 
Writedowns
 
(32
)
 
(135
)
 
(196
)
 
(219
)
 
 
(118
)
 
 
Investment Portfolio Gains (Losses) (3)
 
(17
)
 
201

 
676

 
854

 
 
(252
)
 
 
Investment portfolio gains (losses) income tax (expense) benefit
 
19

 
(50
)
 
(237
)
 
(296
)
 
 
51

 
 
Investment Portfolio Gains (Losses), Net of Income Tax
 
$
2

 
$
151

 
$
439

 
$
558

 
 
$
(201
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative gains (losses) (3)
 
$
(344
)
 
$
(652
)
 
$
(866
)
 
$
(1,000
)
 
 
$
244

 
 
Derivative gains (losses) income tax (expense) benefit
 
143

 
238

 
317

 
485

 
 
(84
)
 
 
Derivative Gains (Losses), Net of Income Tax
 
$
(201
)
 
$
(414
)
 
$
(549
)
 
$
(515
)
 
 
$
160

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) This yield table presentation is consistent with how we measure our investment performance for management purposes, and we believe it enhances understanding of our investment portfolio results. We calculate yields using investment income, as reported on an adjusted basis, as a percent of average quarterly asset carrying values. Investment income excludes recognized gains and losses, includes the impact of changes in foreign currency exchange rates and reflects the adjustments described on Page A-7 and presented on Page A-1. Asset carrying values exclude unrealized gains (losses), collateral received in connection with our securities lending program, annuities funding structured settlement claims, freestanding derivative assets, collateral received from derivative counterparties, the effects of consolidating under GAAP certain VIEs that are treated as CSEs, contractholder-directed unit-linked investments and FVO Brighthouse Common Stock. A yield is not presented for other invested assets, as it is not considered a meaningful measure of performance for this asset class.
 
(2) Fixed maturity securities includes $649 million, $651 million, $713 million, $865 million and $936 million in ending carrying value, and $29 million, $45 million, $61 million, $68 million and $6 million of investment income related to fair value option securities at or for the year-to-date period ended March 31, 2017, June 30, 2017, September 30, 2017, December 31, 2017 and March 31, 2018, respectively.
 
(3) The reconciliation of the remaining yield table captions to the most directly comparable measures presented in accordance with GAAP are as follows at or for the periods ended March 31, 2017, June 30, 2017, September 30, 2017, December 31, 2017 and March 31, 2018, respectively: A) Contractholder-directed equity securities and fair value option securities (included within fixed maturity securities above) ending carrying value excludes contractholder-directed unit-linked investments and FVO Brighthouse Common Stock of $13,743 million, $14,104 million, $15,818 million, $15,874 million and $15,502 million; B) Ending carrying value excludes the following effects of consolidating under GAAP certain VIEs that are treated as CSEs: Contractholder-directed equity securities and fair value option securities (included within fixed maturity securities above) of $7 million, $7 million, $7 million, $6 million and $6 million and cash and short-term investments of $1 million, $0, $0, $0 and $0; C) Net investment income adjustments as presented on Page 5; D) Investment portfolio gains (losses) as presented above and the GAAP adjustments as presented below; and E) Derivative gains (losses) as presented above and GAAP adjustments as presented below:
 
 
 
For the Year-to-Date Period Ended
 
 
 
 
March 31, 2017

 
June 30, 2017

 
September 30, 2017

 
December 31, 2017

 
 
March 31, 2018

 
 
Net investment gains (losses) - GAAP basis
 
$
88

 
$
192

 
$
(414
)
 
$
(308
)
 
 
$
(333
)
 
 
Less: Operating joint venture adjustments
 
1

 
—

 
—

 
—

 
 
(1
)
 
 
Less: Net investment gains (losses) related to certain CSEs
 
—

 
—

 
—

 
—

 
 
—

 
 
Less: Partnerships at fair value
 
—

 
—

 
—

 
—

 
 
(5
)
 
 
Less: Other gains (losses) reported in net investment gains (losses) on GAAP basis
 
104

 
(9
)
 
(1,090
)
 
(1,162
)
 
 
(75
)
 
 
Investment portfolio gains (losses) including Divested businesses - in above yield table
 
$
(17
)
 
$
201

 
$
676

 
$
854

 
 
$
(252
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the Year-to-Date Period Ended
 
 
 
 
March 31, 2017

 
June 30, 2017

 
September 30, 2017

 
December 31, 2017

 
 
March 31, 2018

 
 
Net derivative gains (losses) - GAAP basis
 
$
(212
)
 
$
(412
)
 
$
(535
)
 
$
(590
)
 
 
$
349

 
 
Less: Investment hedge adjustments
 
139

 
253

 
350

 
435

 
 
110

 
 
Less: Settlement of foreign currency earnings hedges
 
(6
)
 
(11
)
 
(16
)
 
(22
)
 
 
(4
)
 
 
Less: PAB hedge adjustments
 
(1
)
 
(2
)
 
(3
)
 
(3
)
 
 
(1
)
 
 
Derivative gains (losses) including Divested businesses - in above yield table
 
$
(344
)
 
$
(652
)
 
$
(866
)
 
$
(1,000
)
 
 
$
244

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(4) Investment income from fixed maturity securities and mortgage loans includes prepayment fees.

31

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
INVESTMENTS
 
 
 
SUMMARY OF FIXED MATURITY SECURITIES AVAILABLE-FOR-SALE
BY SECTOR AND QUALITY DISTRIBUTION
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
March 31, 2017
 
June 30, 2017
 
September 30, 2017
 
December 31, 2017
 
 
March 31, 2018
 
 
Unaudited (In millions, except ratios)
 
Amount
 
% of Total
 
Amount
 
% of Total
 
Amount
 
% of Total
 
Amount
 
% of Total
 
 
Amount
 
% of Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. corporate securities
 
$
78,675

 
26.7
%
 
$
80,188

 
26.7
%
 
$
81,655

 
26.4
%
 
$
82,661

 
26.8
%
 
 
$
81,834

 
26.8
%
 
 
Foreign government securities
 
59,241

 
20.1
%
 
59,899

 
19.9
%
 
60,789

 
19.7
%
 
61,534

 
19.9
%
 
 
64,510

 
21.2
%
 
 
Foreign corporate securities
 
51,999

 
17.6
%
 
53,847

 
17.9
%
 
55,140

 
17.9
%
 
55,569

 
18.0
%
 
 
55,463

 
18.2
%
 
 
U.S. government and agency securities
 
43,513

 
14.8
%
 
44,368

 
14.7
%
 
47,664

 
15.4
%
 
47,394

 
15.3
%
 
 
43,827

 
14.4
%
 
 
Residential mortgage-backed securities
 
29,763

 
10.1
%
 
30,403

 
10.1
%
 
31,398

 
10.2
%
 
28,800

 
9.3
%
 
 
27,411

 
9.0
%
 
 
State and political subdivision securities
 
12,290

 
4.2
%
 
12,211

 
4.1
%
 
12,345

 
4.0
%
 
12,455

 
4.0
%
 
 
12,192

 
4.0
%
 
 
Asset-backed securities
 
11,475

 
3.9
%
 
11,897

 
4.0
%
 
11,771

 
3.8
%
 
12,291

 
4.0
%
 
 
11,764

 
3.9
%
 
 
Commercial mortgage-backed securities
 
7,754

 
2.6
%
 
7,803

 
2.6
%
 
8,132

 
2.6
%
 
8,227

 
2.7
%
 
 
7,710

 
2.5
%
 
 
Total Fixed Maturity Securities Available-For-Sale
 
$
294,710

 
100.0
%
 
$
300,616

 
100.0
%
 
$
308,894

 
100.0
%
 
$
308,931

 
100.0
%
 
 
$
304,711

 
100.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NAIC
 
NRSRO
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DESIGNATION
 
RATING
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1
 
Aaa / Aa / A
 
$
209,829

 
71.2
%
 
$
213,398

 
71.0
%
 
$
219,158

 
70.9
%
 
$
218,830

 
70.8
%
 
 
$
214,446

 
70.4
%
 
 
2
 
Baa
 
67,214

 
22.8
%
 
69,803

 
23.2
%
 
72,293

 
23.4
%
 
72,396

 
23.4
%
 
 
72,531

 
23.8
%
 
 
3
 
Ba
 
12,091

 
4.1
%
 
11,672

 
3.9
%
 
11,562

 
3.7
%
 
11,711

 
3.8
%
 
 
11,551

 
3.8
%
 
 
4
 
B
 
4,663

 
1.6
%
 
4,906

 
1.6
%
 
4,960

 
1.7
%
 
5,155

 
1.7
%
 
 
5,332

 
1.7
%
 
 
5
 
Caa and lower
 
912

 
0.3
%
 
836

 
0.3
%
 
917

 
0.3
%
 
833

 
0.3
%
 
 
827

 
0.3
%
 
 
6
 
In or near default
 
1

 
—
%
 
1

 
—
%
 
4

 
—
%
 
6

 
—
%
 
 
24

 
—
%
 
 
Total Fixed Maturity Securities Available-For-Sale (1)
 
$
294,710

 
100.0
%
 
$
300,616

 
100.0
%
 
$
308,894

 
100.0
%
 
$
308,931

 
100.0
%
 
 
$
304,711

 
100.0
%
 
 
 
 
 
(1) Amounts presented are based on ratings of NRSRO and the applicable NAIC designation from the NAIC published comparison of NRSRO ratings to NAIC designations, except for certain structured securities described below. NRSRO ratings are based on availability of applicable ratings. If no NRSRO rating is available, then an internally developed rating is used. Amounts presented for certain structured securities (i.e., non-agency residential mortgage-backed securities, commercial mortgage-backed securities and asset-backed securities) held by MetLife, Inc.'s insurance subsidiaries that maintain the NAIC statutory basis of accounting are based on designations from revised NAIC methodologies. The NAIC's present methodology is to evaluate structured securities held by insurers using the revised NAIC methodologies on an annual basis. An internally developed designation is used until a final designation becomes available from the NAIC annual review. These revised NAIC designations may not correspond to NRSRO ratings.
 
 
 
 
 
 
GROSS UNREALIZED GAINS AND LOSSES AGING SCHEDULE
 
 
 
 

FIXED MATURITY SECURITIES AVAILABLE-FOR-SALE (1)
 
 
 
 
 
 
 
March 31, 2017
 
June 30, 2017
 
September 30, 2017
 
December 31, 2017
 
 
March 31, 2018
 
 
Unaudited (In millions, except ratios)
 
Amount
 
% of Total
 
Amount
 
% of Total
 
Amount
 
% of Total
 
Amount
 
% of Total
 
 
Amount
 
% of Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Less than 20%
 
$
3,059

 
87.6
%
 
$
2,170

 
91.6
%
 
$
1,900

 
91.9
%
 
$
1,737

 
91.3
%
 
 
$
3,251

 
94.7
%
 
 
20% or more for less than six months
 
281

 
8.0
%
 
36

 
1.5
%
 
49

 
2.4
%
 
49

 
2.6
%
 
 
97

 
2.8
%
 
 
20% or more for six months or greater
 
155

 
4.4
%
 
162

 
6.9
%
 
117

 
5.7
%
 
117

 
6.1
%
 
 
85

 
2.5
%
 
 
Total Gross Unrealized Losses
 
$
3,495

 
100.0
%
 
$
2,368

 
100.0
%
 
$
2,066

 
100.0
%
 
$
1,903

 
100.0
%
 
 
$
3,433

 
100.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Gross Unrealized Gains
 
$
21,928

 
 
 
$
24,193

 
 
 
$
24,276

 
 
 
$
24,765

 
 
 
 
$
21,045

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) MetLife's review of its fixed maturity securities for impairments includes an analysis of the total gross unrealized losses by three categories of securities: (i) securities where the estimated fair value had declined and remained below amortized cost by less than 20%; (ii) securities where the estimated fair value had declined and remained below amortized cost by 20% or more for less than six months; and (iii) securities where the estimated fair value had declined and remained below amortized cost by 20% or more for six months or greater.


32

 
INVESTMENTS
 

 
 
 
 
 
SUMMARY OF MORTGAGE LOANS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unaudited (In millions)
 
March 31, 2017
 
June 30, 2017
 
September 30, 2017
 
December 31, 2017
 
 
March 31, 2018
 
 
 
 
  
 
  
 
  
 
  
 
 
  
 
 
Commercial mortgage loans
 
$
42,346

 
 
 
$
42,590

 
 
 
$
43,243

 
 
 
$
44,375

 
 
 
 
$
46,690

 
 
 
 
Agricultural mortgage loans
 
12,683

 
 
 
12,761

 
 
 
12,967

 
 
 
13,014

 
 
 
 
13,098

 
 
 
 
Residential mortgage loans
 
11,914

 
 
 
12,270

 
 
 
12,163

 
 
 
11,656

 
 
 
 
11,594

 
 
 
 
Total Mortgage Loans
 
66,943

 
 
 
67,621

 
 
 
68,373

 
 
 
69,045

 
 
 
 
71,382

 
 
 
 
Valuation allowances
 
(310
)
 
 
 
(312
)
 
 
 
(316
)
 
 
 
(314
)
 
 
 
 
(327
)
 
 
 
 
Total Mortgage Loans, net
 
$
66,633

 
 
 
$
67,309

 
 
 
$
68,057

 
 
 
$
68,731

 
 
 
 
$
71,055

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SUMMARY OF COMMERCIAL MORTGAGE LOANS
BY REGION AND PROPERTY TYPE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
March 31, 2017
 
June 30, 2017
 
September 30, 2017
 
December 31, 2017
 
 
March 31, 2018
 
 
Unaudited (In millions, except ratios)
 
Amount
 
% of Total
 
Amount
 
% of Total
 
Amount
 
% of Total
 
Amount
 
% of Total
 
 
Amount
 
% of Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pacific
 
$
9,850

 
23.3
%
 
$
9,695

 
22.8
%
 
$
9,935

 
23.0
%
 
$
9,875

 
22.3
%
 
 
$
10,583

 
22.7
%
 
 
International
 
7,948

 
18.8
%
 
8,010

 
18.8
%
 
8,361

 
19.3
%
 
9,101

 
20.5
%
 
 
9,500

 
20.3
%
 
 
Middle Atlantic
 
7,379

 
17.4
%
 
7,650

 
17.9
%
 
7,616

 
17.6
%
 
7,231

 
16.3
%
 
 
7,467

 
16.0
%
 
 
South Atlantic
 
5,092

 
12.0
%
 
4,953

 
11.6
%
 
4,624

 
10.7
%
 
5,311

 
12.0
%
 
 
5,552

 
11.9
%
 
 
West South Central
 
3,569

 
8.4
%
 
3,649

 
8.6
%
 
3,679

 
8.5
%
 
3,819

 
8.6
%
 
 
3,664

 
7.8
%
 
 
East North Central
 
2,220

 
5.3
%
 
2,218

 
5.2
%
 
2,413

 
5.6
%
 
2,683

 
6.0
%
 
 
2,687

 
5.7
%
 
 
Mountain
 
1,201

 
2.8
%
 
1,200

 
2.8
%
 
1,200

 
2.8
%
 
1,188

 
2.7
%
 
 
1,355

 
2.9
%
 
 
New England
 
1,194

 
2.8
%
 
1,099

 
2.6
%
 
1,162

 
2.7
%
 
901

 
2.0
%
 
 
1,129

 
2.4
%
 
 
East South Central
 
521

 
1.2
%
 
714

 
1.7
%
 
835

 
1.9
%
 
840

 
1.9
%
 
 
963

 
2.1
%
 
 
West North Central
 
460

 
1.1
%
 
456

 
1.1
%
 
478

 
1.1
%
 
477

 
1.1
%
 
 
589

 
1.3
%
 
 
Multi-Region and Other
 
2,912

 
6.9
%
 
2,946

 
6.9
%
 
2,940

 
6.8
%
 
2,949

 
6.6
%
 
 
3,201

 
6.9
%
 
 
Total
 
$
42,346

 
100.0
%
 
$
42,590

 
100.0
%
 
$
43,243

 
100.0
%
 
$
44,375

 
100.0
%
 
 
$
46,690

 
100.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Office
 
$
21,608

 
51.0
%
 
$
21,476

 
50.4
%
 
$
22,339

 
51.7
%
 
$
22,602

 
50.9
%
 
 
$
23,474

 
50.3
%
 
 
Retail
 
8,599

 
20.3
%
 
8,727

 
20.5
%
 
8,694

 
20.1
%
 
8,032

 
18.1
%
 
 
8,247

 
17.7
%
 
 
Apartment
 
5,345

 
12.6
%
 
5,549

 
13.0
%
 
5,730

 
13.2
%
 
6,113

 
13.8
%
 
 
6,600

 
14.1
%
 
 
Hotel
 
3,769

 
8.9
%
 
3,782

 
8.9
%
 
3,493

 
8.1
%
 
3,620

 
8.2
%
 
 
3,797

 
8.1
%
 
 
Industrial
 
2,772

 
6.6
%
 
2,713

 
6.4
%
 
2,744

 
6.3
%
 
3,125

 
7.0
%
 
 
3,699

 
7.9
%
 
 
Other
 
253

 
0.6
%
 
343

 
0.8
%
 
243

 
0.6
%
 
883

 
2.0
%
 
 
873

 
1.9
%
 
 
Total
 
$
42,346

 
100.0
%
 
$
42,590

 
100.0
%
 
$
43,243

 
100.0
%
 
$
44,375

 
100.0
%
 
 
$
46,690

 
100.0
%
 


33


imagj20.jpg
Appendix






 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
APPENDIX
METLIFE
RECONCILIATION DETAIL
 
 
 
 
 
 
 
 
 
 
 
For the Three Months Ended
 
 
For the Year-to-Date Period Ended
 
Unaudited (In millions)
 
March 31, 2017

 
June 30, 2017

 
September 30, 2017

 
December 31, 2017

 
 
March 31, 2018

 
 
March 31, 2017

 
March 31, 2018

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reconciliation to Adjusted Earnings
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income (loss) from continuing operations, net of income tax
 
$
952

 
$
856

 
$
883

 
$
2,315

 
 
$
1,257

 
 
$
952

 
$
1,257

 
 
Less: adjustments from income (loss) from continuing operations, net of income tax, to adjusted earnings:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net investment gains (losses)
 
88

 
104

 
(606
)
 
106

 
 
(333
)
 
 
88

 
(333
)
 
 
Net derivative gains (losses)
 
(212
)
 
(200
)
 
(123
)
 
(55
)
 
 
349

 
 
(212
)
 
349

 
 
Premiums - Divested businesses
 
(174
)
 
(136
)
 
(37
)
 
—

 
 
—

 
 
(174
)
 
—

 
 
Universal life and investment-type product policy fees
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unearned revenue adjustments
 
1

 
9

 
4

 
(2
)
 
 
(5
)
 
 
1

 
(5
)
 
 
GMIB fees
 
31

 
31

 
32

 
31

 
 
30

 
 
31

 
30

 
 
Divested businesses
 
(20
)
 
(14
)
 
—

 
—

 
 
7

 
 
(20
)
 
7

 
 
Net investment income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment hedge adjustments
 
(139
)
 
(114
)
 
(97
)
 
(85
)
 
 
(110
)
 
 
(139
)
 
(110
)
 
 
Operating joint venture adjustments
 
(1
)
 
1

 
—

 
—

 
 
1

 
 
(1
)
 
1

 
 
Unit-linked contract income
 
416

 
214

 
234

 
436

 
 
(353
)
 
 
416

 
(353
)
 
 
Securitization entities income
 
—

 
—

 
—

 
—

 
 
—

 
 
—

 
—

 
 
Certain partnership distributions
 
—

 
—

 
—

 
—

 
 
(12
)
 
 
—

 
(12
)
 
 
Divested businesses
 
(27
)
 
(21
)
 
2

 
—

 
 
—

 
 
(27
)
 
—

 
 
Other revenues
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Settlement of foreign currency earnings hedges
 
6

 
5

 
5

 
6

 
 
4

 
 
6

 
4

 
 
TSA fees
 
—

 
—

 
—

 
—

 
 
79

 
 
—

 
79

 
 
Divested businesses
 
(59
)
 
(57
)
 
(19
)
 
—

 
 
—

 
 
(59
)
 
—

 
 
Policyholder benefits and claims and policyholder dividends
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PDO adjustments
 
—

 
—

 
—

 
—

 
 
—

 
 
—

 
—

 
 
Inflation and pass through adjustments
 
(21
)
 
(53
)
 
28

 
77

 
 
(41
)
 
 
(21
)
 
(41
)
 
 
GMIB costs
 
(73
)
 
(67
)
 
(138
)
 
(72
)
 
 
(5
)
 
 
(73
)
 
(5
)
 
 
Market value adjustments
 
(6
)
 
(5
)
 
(8
)
 
(3
)
 
 
(1
)
 
 
(6
)
 
(1
)
 
 
Divested businesses
 
146

 
103

 
(112
)
 
—

 
 
—

 
 
146

 
—

 
 
Interest credited to policyholder account balances
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PAB hedge adjustments
 
1

 
1

 
1

 
—

 
 
1

 
 
1

 
1

 
 
Unit-linked contract costs
 
(402
)
 
(213
)
 
(229
)
 
(420
)
 
 
347

 
 
(402
)
 
347

 
 
Divested businesses
 
(14
)
 
(14
)
 
(5
)
 
—

 
 
—

 
 
(14
)
 
—

 
 
Capitalization of DAC - Divested businesses
 
(16
)
 
(14
)
 
(4
)
 
—

 
 
1

 
 
(16
)
 
1

 
 
Amortization of DAC and VOBA
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Related to NIGL and NDGL
 
2

 
28

 
2

 
28

 
 
14

 
 
2

 
14

 
 
Related to GMIB fees and GMIB costs
 
13

 
6

 
—

 
(21
)
 
 
(10
)
 
 
13

 
(10
)
 
 
Related to market value adjustments
 
—

 
—

 
—

 
—

 
 
—

 
 
—

 
—

 
 
Divested businesses
 
(33
)
 
17

 
(75
)
 
—

 
 
—

 
 
(33
)
 
—

 
 
Amortization of negative VOBA
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Related to market value adjustments
 
3

 
3

 
2

 
1

 
 
1

 
 
3

 
1

 
 
Divested businesses
 
—

 
—

 
—

 
—

 
 
—

 
 
—

 
—

 
 
Interest expense on debt
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Securitization entities debt expense
 
—

 
—

 
—

 
—

 
 
—

 
 
—

 
—

 
 
Divested businesses
 
12

 
4

 
—

 
—

 
 
—

 
 
12

 
—

 
 
Other expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Noncontrolling interest
 
4

 
3

 
10

 
(5
)
 
 
7

 
 
4

 
7

 
 
Regulatory implementation costs
 
—

 
—

 
—

 
—

 
 
(1
)
 
 
—

 
(1
)
 
 
Acquisition, integration and other costs
 
(8
)
 
(14
)
 
(20
)
 
(23
)
 
 
(11
)
 
 
(8
)
 
(11
)
 
 
TSA fees
 
—

 
—

 
—

 
—

 
 
(79
)
 
 
—

 
(79
)
 
 
Divested businesses
 
(133
)
 
(44
)
 
(70
)
 
(244
)
 
 
(10
)
 
 
(133
)
 
(10
)
 
 
Goodwill impairment
 
—

 
—

 
—

 
—

 
 
—

 
 
—

 
—

 
 
Provision for income tax (expense) benefit
 
240

 
126

 
985

 
1,837

 
 
(42
)
 
 
240

 
(42
)
 
 
Adjusted earnings
 
$
1,327

 
$
1,167

 
$
1,121

 
$
723

 
 
$
1,429

 
 
$
1,327

 
$
1,429

 

A-1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
APPENDIX
METLIFE
NOTABLE ITEMS (1)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
METLIFE TOTAL
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the Three Months Ended
 
 
For the Year-to-Date Period Ended
 
Unaudited (In millions)
 
March 31, 2017

 
June 30, 2017

 
September 30, 2017

 
December 31, 2017

 
 
March 31, 2018

 
 
 
March 31, 2017


March 31, 2018

 
 
Variable investment income
 
$
15

 
$
—

 
$
—

 
$
—

 
 
$
—

 
 
 
$
15

 
$
—

 
 
Catastrophe experience and prior year development, net
 
(45
)
 
—

 
(10
)
 
7

 
 
—

 
 
 
(45
)
 
—

 
 
Actuarial assumption review and other insurance adjustments
 
76

 
(28
)
 
125

 
(110
)
 
 
62

 
 
 
76

 
62

 
 
Litigation reserves & settlement costs
 
(21
)
 
—

 
—

 
(55
)
 
 
—

 
 
 
(21
)
 
—

 
 
Expense initiative costs
 
(21
)
 
(22
)
 
(17
)
 
(42
)
 
 
(34
)
 
 
 
(21
)
 
(34
)
 
 
Other expense-related items (2)
 
—

 
(36
)
 
—

 
—

 
 
—

 
 
 
—

 
—

 
 
Tax adjustments
 
—

 
27

 
(167
)
 
(298
)
 
 
—

 
 
 
—

 
—

 
 
Total notable items
 
$
4

 
$
(59
)
 
$
(69
)
 
$
(498
)
 
 
$
28

 
 
 
$
4

 
$
28

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the Three Months Ended
 
 
For the Year-to-Date Period Ended
 
Unaudited (In millions)
 
March 31, 2017

 
June 30, 2017

 
September 30, 2017

 
December 31, 2017

 
 
March 31, 2018

 
 
 
March 31, 2017

 
March 31, 2018

 
 
Variable investment income
 
$
22

 
$
—

 
$
—

 
$
—

 
 
$
—

 
 
 
$
22

 
$
—

 
 
Catastrophe experience and prior year development, net
 
(45
)
 
—

 
(10
)
 
7

 
 
—

 
 
 
(45
)
 
—

 
 
Actuarial assumption review and other insurance adjustments
 
—

 
—

 
—

 
(62
)
 
 
—

 
 
 
—

 
—

 
 
Total notable items
 
$
(23
)
 
$
—

 
$
(10
)
 
$
(55
)
 
 
$
—

 
 
 
$
(23
)
 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
GROUP BENEFITS

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the Three Months Ended
 
 
For the Year-to-Date Period Ended
 
 
Unaudited (In millions)
 
March 31, 2017

 
June 30, 2017

 
September 30, 2017

 
December 31, 2017

 
 
March 31, 2018

 
 
 
March 31, 2017

 
March 31, 2018

 
 
 
Variable investment income
 
$
3

 
$
—

 
$
—

 
$
—

 
 
$
—

 
 
 
$
3

 
$
—

 
 
 
Total notable items
 
$
3

 
$
—

 
$
—

 
$
—

 
 
$
—

 
 
 
$
3

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
RETIREMENT AND INCOME SOLUTIONS

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
For the Three Months Ended
 
 
For the Year-to-Date Period Ended
 
 
Unaudited (In millions)
 
March 31, 2017

 
June 30, 2017

 
September 30, 2017

 
December 31, 2017

 
 
March 31, 2018

 
 
 
March 31, 2017

 
March 31, 2018

 
 
 
Variable investment income
 
$
17

 
$
—

 
$
—

 
$
—

 
 
$
—

 
 
 
$
17

 
$
—

 
 
 
Actuarial assumption review and other insurance adjustments
 
—

 
—

 
—

 
(62
)
 
 
—

 
 
 
—

 
—

 
 
 
Total notable items
 
$
17

 
$
—

 
$
—

 
$
(62
)
 
 
$
—

 
 
 
$
17

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PROPERTY & CASUALTY


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the Three Months Ended
 
 
For the Year-to-Date Period Ended
 
 
Unaudited (In millions)
 
March 31, 2017

 
June 30, 2017

 
September 30, 2017

 
December 31, 2017

 
 
March 31, 2018

 
 
 
March 31, 2017

 
March 31, 2018

 
 
 
Variable investment income
 
$
2

 
$
—

 
$
—

 
$
—

 
 
$
—

 
 
 
$
2

 
$
—

 
 
 
Catastrophe experience and prior year development, net
 
(45
)
 
—

 
(10
)
 
7

 
 
—

 
 
 
(45
)
 
—

 
 
 
Total notable items
 
$
(43
)
 
$
—

 
$
(10
)
 
$
7

 
 
$
—

 
 
 
$
(43
)
 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) These notable items represent a positive (negative) impact to adjusted earnings available to common shareholders. Notable Items reflect the unexpected impact of events that affect the Company’s results, but that were unknown and that the Company could not anticipate when it devised its Business Plan. Notable Items also include certain items regardless of the extent anticipated in the Business Plan to help investors have a better understanding of Company results and to evaluate and forecast those results.
 
 
(2) For the three months ended June 30, 2017, $36 million in lease impairments are included.
 


A-2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
APPENDIX
METLIFE
NOTABLE ITEMS (CONTINUED) (1)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ASIA
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
For the Three Months Ended
 
For the Year-to-Date Period Ended
 
Unaudited (In millions)
 
March 31, 2017

 
June 30, 2017

 
September 30, 2017

 
December 31, 2017

 
 
March 31, 2018

 
 
 
March 31, 2017

 
 
March 31, 2018

 
 
Variable investment income
 
$
(3
)
 
$
—

 
$
—

 
$
—

 
 
$
—

 
 
 
$
(3
)
 
 
$
—

 
 
Actuarial assumption review and other insurance adjustments
 
—

 
12

 
(4
)
 
—

 
 
—

 
 
 
—

 
 
—

 
 
Total notable items
 
$
(3
)
 
$
12

 
$
(4
)
 
$
—

 
 
$
—

 
 
 
$
(3
)
 
 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
LATIN AMERICA
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
For the Three Months Ended
 
For the Year-to-Date Period Ended
 
Unaudited (In millions)
 
March 31, 2017

 
June 30, 2017

 
September 30, 2017

 
December 31, 2017

 
 
March 31, 2018

 
 
 
March 31, 2017

 
 
March 31, 2018

 
 
Variable investment income
 
$
(1
)
 
$
—

 
$
—

 
$
—

 
 
$
—

 
 
 
$
(1
)
 
 
$
—

 
 
Actuarial assumption review and other insurance adjustments
 
—

 
—

 
15

 
—

 
 
—

 
 
 
—

 
 
—

 
 
Total notable items
 
$
(1
)
 
$
—

 
$
15

 
$
—

 
 
$
—

 
 
 
$
(1
)
 
 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EMEA
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
For the Three Months Ended
 
For the Year-to-Date Period Ended
 
Unaudited (In millions)
 
March 31, 2017

 
June 30, 2017

 
September 30, 2017

 
December 31, 2017

 
 
March 31, 2018

 
 
 
March 31, 2017

 
 
March 31, 2018

 
 
Actuarial assumption review and other insurance adjustments
 
$
—

 
$
—

 
$
(8
)
 
$
—

 
 
$
—

 
 
 
$
—

 
 
$
—

 
 
Total notable items
 
$
—

 
$
—

 
$
(8
)
 
$
—

 
 
$
—

 
 
 
$
—

 
 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
METLIFE HOLDINGS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
For the Three Months Ended
 
For the Year-to-Date Period Ended
 
Unaudited (In millions)
 
March 31, 2017

 
June 30, 2017

 
September 30, 2017

 
December 31, 2017

 
 
March 31, 2018

 
 
 
March 31, 2017

 
 
March 31, 2018

 
 
Variable investment income
 
$
1

 
$
—

 
$
—

 
$
—

 
 
$
—

 
 
 
$
1

 
 
$
—

 
 
Actuarial assumption review and other insurance adjustments
 
76

 
(40
)
 
122

 
(48
)
 
 
62

 
 
 
76

 
 
62

 
 
Total notable items
 
$
77

 
$
(40
)
 
$
122

 
$
(48
)
 
 
$
62

 
 
 
$
77

 
 
$
62

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CORPORATE & OTHER
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
For the Three Months Ended
 
For the Year-to-Date Period Ended
 
 
Unaudited (In millions)
 
March 31, 2017

 
June 30, 2017

 
September 30, 2017

 
December 31, 2017

 
 
March 31, 2018

 
 
 
March 31, 2017

 
 
March 31, 2018

 
 
Variable investment income
 
$
(4
)
 
$
—

 
$
—

 
$
—

 
 
$
—

 
 
 
$
(4
)
 
 
$
—

 
 
Litigation reserves & settlement costs
 
(21
)
 
—

 
—

 
(55
)
 
 
—

 
 
 
(21
)
 
 
—

 
 
Expense initiative costs
 
(21
)
 
(22
)
 
(17
)
 
(42
)
 
 
(34
)
 
 
 
(21
)
 
 
(34
)
 
 
Other expense-related items (2)
 
—

 
(36
)
 
—

 
—

 
 
—

 
 
 
—

 
 
—

 
 
Tax adjustments
 
—

 
27

 
(167
)
 
(298
)
 
 
—

 
 
 
—

 
 
—

 
 
Total notable items
 
$
(46
)
 
$
(31
)
 
$
(184
)
 
$
(395
)
 
 
$
(34
)
 
 
 
$
(46
)
 
 
$
(34
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) These notable items represent a positive (negative) impact to adjusted earnings available to common shareholders. Notable Items reflect the unexpected impact of events that affect the Company’s results, but that were unknown and that the Company could not anticipate when it devised its Business Plan. Notable Items also include certain items regardless of the extent anticipated in the Business Plan to help investors have a better understanding of Company results and to evaluate and forecast those results.
 
 
(2) For the three months ended June 30, 2017, $36 million in lease impairments are included.
 

A-3

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
APPENDIX
METLIFE
EQUITY DETAILS, BOOK VALUE DETAILS AND RETURN ON EQUITY
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unaudited (In millions)
March 31, 2017

 
June 30, 2017

 
September 30, 2017

 
December 31, 2017

 
March 31, 2018

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total MetLife, Inc.'s stockholders' equity
$
68,179

 
$
69,732

 
$
56,981

 
$
58,676

 
$
56,310

 
 
 
 
 
Less: Preferred stock
2,066

 
2,066

 
2,066

 
2,066

 
2,560

 
 
 
 
 
MetLife, Inc.'s common stockholders' equity
66,113

 
67,666

 
54,915

 
56,610

 
53,750

 
 
 
 
 
Less: Net unrealized investment gains (losses), net of income tax
13,189

 
15,038

 
13,343

 
13,662

 
11,547

 
 
 
 
 
  Defined benefit plans adjustment, net of income tax
(1,951
)
 
(1,923
)
 
(1,878
)
 
(1,845
)
 
(2,206
)
 
 
 
 
 
Total MetLife, Inc.'s common stockholders' equity, excluding AOCI other than FCTA
54,875

 
54,551

 
43,450

 
44,793

 
44,409

 
 
 
 
 
Less: Goodwill, net of income tax
9,209

 
9,230

 
9,151

 
9,322

 
9,428

 
 
 
 
 
  VODA and VOCRA, net of income tax
386

 
373

 
374

 
378

 
365

 
 
 
 
 
Total MetLife, Inc.'s tangible common stockholders' equity (excludes AOCI other than FCTA)
$
45,280

 
$
44,948

 
$
33,925

 
$
35,093

 
$
34,616

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unaudited
March 31, 2017

 
June 30, 2017

 
September 30, 2017

 
December 31, 2017

 
March 31, 2018

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Book value per common share (1)
$
61.14

 
$
63.63

 
$
52.09

 
$
54.24

 
$
52.49

 
 
 
 
 
Less: Net unrealized investment gains (losses), net of income tax
12.20

 
14.15

 
12.66

 
13.09

 
11.28

 
 
 
 
 
  Defined benefit plans adjustment, net of income tax
(1.81
)
 
(1.81
)
 
(1.78
)
 
(1.77
)
 
(2.15
)
 
 
 
 
 
Book value per common share, excluding AOCI other than FCTA (1)
50.75

 
51.29

 
41.21

 
42.92

 
43.36

 
 
 
 
 
Less: Goodwill, net of income tax
8.51

 
8.68

 
8.68

 
8.93

 
9.20

 
 
 
 
 
  VODA and VOCRA, net of income tax
0.36

 
0.35

 
0.35

 
0.36

 
0.36

 
 
 
 
 
Book value per common share - tangible common stockholders' equity (excludes AOCI other than FCTA) (1)
$
41.88

 
$
42.26

 
$
32.18

 
$
33.63

 
$
33.80

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unaudited (In millions)
March 31, 2017

 
June 30, 2017

 
September 30, 2017

 
December 31, 2017

 
March 31, 2018

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total MetLife, Inc.'s stockholders' equity
$
68,179

 
$
69,732

 
$
56,981

 
$
58,676

 
$
56,310

 
 
 
 
 
Less: Preferred stock
2,066

 
2,066

 
2,066

 
2,066

 
2,560

 
 
 
 
 
MetLife, Inc.'s common stockholders' equity
66,113

 
67,666

 
54,915

 
56,610

 
53,750

 
 
 
 
 
Less: Net unrealized investment gains (losses), net of income tax
13,189

 
15,038

 
13,343

 
13,662

 
11,547

 
 
 
 
 
  Defined benefit plans adjustment, net of income tax
(1,951
)
 
(1,923
)
 
(1,878
)
 
(1,845
)
 
(2,206
)
 
 
 
 
 
Total MetLife, Inc.'s common stockholders' equity, excluding AOCI other than FCTA
54,875

 
54,551

 
43,450

 
44,793

 
44,409

 
 
 
 
 
Less: Net equity of assets and liabilities of disposed subsidiary, excluding AOCI other than FCTA

16,436

 
14,649

 
—

 
—

 
—

 
 
 
 
 
Total MetLife, Inc.'s common stockholders' equity, excluding net equity of assets and liabilities of disposed subsidiary (excludes AOCI other than FCTA)
$
38,439

 
$
39,902

 
$
43,450

 
$
44,793

 
$
44,409

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unaudited
March 31, 2017

 
June 30, 2017

 
September 30, 2017

 
December 31, 2017

 
March 31, 2018

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Book value per common share (1)
$
61.14

 
$
63.63

 
$
52.09

 
$
54.24

 
$
52.49

 
 
 
 
 
Less: Net unrealized investment gains (losses), net of income tax
12.20

 
14.15

 
12.66

 
13.09

 
11.28

 
 
 
 
 
  Defined benefit plans adjustment, net of income tax
(1.81
)
 
(1.81
)
 
(1.78
)
 
(1.77
)
 
(2.15
)
 
 
 
 
 
Book value per common share, excluding AOCI other than FCTA (1)
50.75

 
51.29

 
41.21

 
42.92

 
43.36

 
 
 
 
 
Less: Net equity of assets and liabilities of disposed subsidiary, excluding AOCI other than FCTA

15.20

 
13.77

 
—

 
—

 
—

 
 
 
 
 
Book value per common share - common stockholders' equity, excluding net equity of assets and liabilities of disposed subsidiary (excludes AOCI other than FCTA) (1)
$
35.55

 
$
37.52

 
$
41.21

 
$
42.92

 
$
43.36

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the Three Months Ended (2)
 
For the Year Ended
 
 
Unaudited (In millions, except ratios)
March 31, 2017

 
June 30, 2017

 
September 30, 2017

 
December 31, 2017

 
March 31, 2018

 
 
December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Return on MetLife, Inc.'s:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common stockholders' equity
5.3
%
 
5.2
%
 
(0.6
)%
 
16.3
%
 
9.0
%
 
 
6.3
%
 
 
Common stockholders' equity, excluding AOCI other than FCTA
6.3
%
 
6.3
%
 
(0.8
)%
 
20.6
%
 
11.2
%
 
 
7.7
%
 
 
Tangible common stockholders' equity (excludes AOCI other than FCTA) (3)
7.8
%
 
7.8
%
 
(0.9
)%
 
26.4
%
 
14.4
%
 
 
9.6
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted return on MetLife, Inc.'s:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common stockholders' equity
8.0
%
 
6.7
%
 
7.3
 %
 
4.9
%
 
10.3
%
 
 
6.8
%
 
 
Common stockholders' equity, excluding AOCI other than FCTA
9.6
%
 
8.2
%
 
9.1
 %
 
6.1
%
 
12.8
%
 
 
8.4
%
 
 
Common stockholders' equity, excluding net equity of assets and liabilities of disposed subsidiary (excludes AOCI other than FCTA)
13.8
%
 
11.4
%
 
10.7
 %
 
6.1
%
 
12.8
%
 
 
10.3
%
 
 
Tangible common stockholders' equity (excludes AOCI other than FCTA) (4)
11.7
%
 
10.0
%
 
11.4
 %
 
8.0
%
 
16.4
%
 
 
10.4
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average common stockholders' equity
$
65,789

 
$
66,890

 
$
61,291

 
$
55,763

 
$
55,180

 
 
$
62,154

 
 
Average common stockholders' equity, excluding AOCI other than FCTA
$
54,831

 
$
54,713

 
$
49,001

 
$
44,122

 
$
44,601

 
 
$
50,491

 
 
Average common stockholders' equity, excluding net equity of assets and liabilities of disposed subsidiary (excludes AOCI other than FCTA)
$
38,314

 
$
39,171

 
$
41,676

 
$
44,122

 
$
44,601

 
 
$
40,955

 
 
Average tangible common stockholders' equity (excludes AOCI other than FCTA)
$
45,276

 
$
45,114

 
$
39,437

 
$
34,509

 
$
34,855

 
 
$
40,903

 
 
 
 
(1) Calculated using common shares outstanding, end of period.
 
(2) Annualized using quarter-to-date results.
 
(3) Net income (loss) available to MetLife, Inc.'s common shareholders and adjusted earnings available to common shareholders, used to calculate returns on tangible equity, exclude the impact of amortization of VODA and VOCRA, net of income tax, for the three months ended March 31, 2017, June 30, 2017, September 30, 2017, December 31, 2017 and March 31, 2018 of $11 million, $11 million, $9 million, $8 million and $10 million, respectively, and for the year ended December 31, 2017 of $39 million.
 
(4) Adjusted earnings (losses) available to MetLife, Inc.'s common shareholders and adjusted earnings available to common shareholders, used to calculate returns on tangible equity, exclude the impact of amortization of VODA and VOCRA, net of income tax, for the three months ended March 31, 2017, June 30, 2017, September 30, 2017, December 31, 2017 and March 31, 2018 of $8 million, $8 million, $9 million, $8 million and $10 million, respectively, and for the year ended December 31, 2017 of $33 million.

A-4

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
APPENDIX
METLIFE
RETURN ON ALLOCATED EQUITY (1), (2) 
 
 
RETURN ON ALLOCATED EQUITY
 
 
 
 
For the Three Months Ended
 
 
Unaudited
 
March 31, 2017

 
June 30, 2017

 
September 30, 2017

 
December 31, 2017

 
 
March 31, 2018

 
 
U.S.
 
 
 
 
 
 
 
 
 
 
 
 
 
GROUP BENEFITS
 
23.3
%
 
29.4
%
 
32.1
%
 
30.7
%
 
 
22.5
%
 
 
RETIREMENT AND INCOME SOLUTIONS
 
10.8
%
 
22.3
%
 
20.7
%
 
17.0
%
 
 
15.4
%
 
 
PROPERTY & CASUALTY
 
6.7
%
 
5.6
%
 
11.2
%
 
20.8
%
 
 
20.1
%
 
 
TOTAL U.S.
 
13.5
%
 
21.2
%
 
22.1
%
 
21.5
%
 
 
18.0
%
 
 
ASIA
 
15.3
%
 
6.5
%
 
7.7
%
 
11.8
%
 
 
15.8
%
 
 
LATIN AMERICA
 
31.2
%
 
13.0
%
 
30.4
%
 
8.0
%
 
 
23.6
%
 
 
EMEA
 
10.0
%
 
8.3
%
 
7.6
%
 
11.3
%
 
 
10.0
%
 
 
METLIFE HOLDINGS
 
12.3
%
 
2.8
%
 
8.1
%
 
9.4
%
 
 
13.7
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
RETURN ON ALLOCATED TANGIBLE EQUITY (3)
 
 
 
 
For the Three Months Ended
 
 
Unaudited
 
March 31, 2017

 
June 30, 2017

 
September 30, 2017

 
December 31, 2017

 
 
March 31, 2018

 
 
U.S.
 
15.7
%
 
24.7
%
 
25.8
%
 
25.0
%
 
 
20.9
%
 
 
ASIA
 
24.4
%
 
10.3
%
 
12.3
%
 
18.8
%
 
 
23.9
%
 
 
LATIN AMERICA
 
53.8
%
 
22.3
%
 
52.3
%
 
13.8
%
 
 
39.4
%
 
 
EMEA
 
16.3
%
 
13.7
%
 
12.5
%
 
18.4
%
 
 
16.4
%
 
 
METLIFE HOLDINGS
 
13.8
%
 
3.2
%
 
9.1
%
 
10.5
%
 
 
15.4
%
 
 
 
 
 
 
 
 
 
 
ADJUSTED RETURN ON ALLOCATED EQUITY
 
 
 
 
For the Three Months Ended
 
 
Unaudited
 
March 31, 2017

 
June 30, 2017

 
September 30, 2017

 
December 31, 2017

 
 
March 31, 2018

 
 
U.S.
 
 
 
 
 
 
 
 
 
 
 
 
 
GROUP BENEFITS
 
27.6
%
 
28.8
%
 
34.2
%
 
32.7
%
 
 
31.2
%
 
 
RETIREMENT AND INCOME SOLUTIONS
 
19.8
%
 
18.9
%
 
17.8
%
 
12.5
%
 
 
21.8
%
 
 
PROPERTY & CASUALTY
 
6.2
%
 
6.0
%
 
11.0
%
 
20.4
%
 
 
20.7
%
 
 
TOTAL U.S.
 
19.5
%
 
19.3
%
 
21.1
%
 
19.5
%
 
 
24.1
%
 
 
ASIA
 
9.4
%
 
9.9
%
 
10.0
%
 
9.9
%
 
 
9.2
%
 
 
LATIN AMERICA
 
19.5
%
 
21.0
%
 
22.2
%
 
17.0
%
 
 
17.8
%
 
 
EMEA
 
9.3
%
 
9.0
%
 
8.8
%
 
9.8
%
 
 
9.3
%
 
 
METLIFE HOLDINGS
 
13.8
%
 
8.4
%
 
12.9
%
 
6.9
%
 
 
16.9
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ADJUSTED RETURN ON ALLOCATED TANGIBLE EQUITY (3)
 
 
 
 
For the Three Months Ended
 
 
Unaudited
 
March 31, 2017

 
June 30, 2017

 
September 30, 2017

 
December 31, 2017

 
 
March 31, 2018

 
 
U.S.
 
22.7
%
 
22.5
%
 
24.6
%
 
22.7
%
 
 
27.9
%
 
 
ASIA
 
15.0
%
 
15.8
%
 
16.0
%
 
15.8
%
 
 
13.9
%
 
 
LATIN AMERICA
 
33.6
%
 
36.2
%
 
38.3
%
 
29.3
%
 
 
29.8
%
 
 
EMEA
 
15.3
%
 
14.7
%
 
14.5
%
 
16.1
%
 
 
15.3
%
 
 
METLIFE HOLDINGS
 
15.4
%
 
9.5
%
 
14.5
%
 
7.8
%
 
 
19.0
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Annualized using quarter-to-date results.
 
 
(2) Allocated equity and allocated tangible equity are presented below:
 
 
 
  
 
ALLOCATED EQUITY
 
ALLOCATED TANGIBLE EQUITY
 
 
 
Unaudited (In millions)
 
2017
 
2018
 
2017
 
 
2018
 
 
 
U.S.
 
 
 
 
 
 
 
 
 
 
 
 
GROUP BENEFITS
 
$
2,816

 
$
2,797

 
 
 
 
 
 
 
 
RETIREMENT AND INCOME SOLUTIONS
 
5,538

 
6,209

 
 
 
 
 
 
 
 
PROPERTY & CASUALTY
 
1,862

 
1,851

 


 
 
 
 
 
 
TOTAL U.S.
 
$
10,216

 
$
10,857

 
$
8,792

 
 
$
9,389

 
 
 
ASIA
 
$
12,587

 
$
14,260

 
$
7,898

 
 
$
9,456

 
 
 
LATIN AMERICA
 
$
2,933

 
$
3,139

 
$
1,704

 
 
$
1,880

 
 
 
EMEA
 
$
3,210

 
$
3,473

 
$
2,017

 
 
$
2,176

 
 
 
METLIFE HOLDINGS
 
$
11,247

 
$
10,063

 
$
10,179

 
 
$
9,066

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(3) Net income (loss) available to MetLife, Inc.'s common shareholders used to calculate the return on allocated tangible equity and adjusted earnings available to common shareholders used to calculate the adjusted return on allocated tangible equity, exclude the impact of amortization on VODA and VOCRA, net of income tax, as presented below:
 
 
 
 
 
For the Three Months Ended
 
 
 
Unaudited (In millions)
 
March 31, 2017

 
June 30, 2017

 
September 30, 2017

 
December 31, 2017

 
 
March 31, 2018

 
 
 
U.S.
 
$
1

 
$
1

 
$
1

 
$
1

 
 
$
1

 
 
 
ASIA
 
$
1

 
$
1

 
$
1

 
$
1

 
 
$
2

 
 
 
LATIN AMERICA
 
$
—

 
$
—

 
$
—

 
$
—

 
 
$
—

 
 
 
EMEA
 
$
2

 
$
2

 
$
2

 
$
2

 
 
$
2

 
 
 
METLIFE HOLDINGS
 
$
5

 
$
4

 
$
4

 
$
4

 
 
$
5

 


A-5

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
APPENDIX
METLIFE
ADJUSTED PREMIUMS, FEES AND OTHER REVENUES, OTHER EXPENSES AND ADJUSTED EARNINGS AVAILABLE TO COMMON SHAREHOLDERS - CONSTANT CURRENCY BASIS
 
 
 
 
 
 
 ADJUSTED PREMIUMS, FEES AND OTHER REVENUES, ON A CONSTANT CURRENCY BASIS
 
 
 
 
 
 
 
 
 
 
 
For the Three Months Ended
 
 
Unaudited (In millions)
 
 
March 31, 2017

 
 
June 30, 2017

 
 
September 30, 2017

 
 
December 31, 2017

 
 
March 31, 2018

 
 
U.S. (1)
 
 
$
5,654

 
 
$
6,327

 
 
$
7,431

 
 
$
6,038

 
 
$
5,679

 
 
ASIA
 
 
2,183

 
 
2,104

 
 
2,223

 
 
2,165

 
 
2,157

 
 
LATIN AMERICA
 
 
970

 
 
948

 
 
934

 
 
1,010

 
 
989

 
 
EMEA
 
 
667

 
 
664

 
 
651

 
 
670

 
 
679

 
 
METLIFE HOLDINGS (1)
 
 
1,517

 
 
1,404

 
 
1,375

 
 
1,453

 
 
1,331

 
 
CORPORATE & OTHER (1)
 
 
97

 
 
69

 
 
78

 
 
82

 
 
94

 
 
Total adjusted premiums, fees and other revenues, on a constant currency basis
 
 
$
11,088

 
 
$
11,516

 
 
$
12,692

 
 
$
11,418

 
 
$
10,929

 
 
Total adjusted premiums, fees and other revenues
 
 
$
10,882

 
 
$
11,398

 
 
$
12,620

 
 
$
11,300

 
 
$
10,929

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ASIA (including operating joint ventures) (2), (3)
 
 
$
2,384

 
 
$
2,301

 
 
$
2,427

 
 
$
2,392

 
 
$
2,400

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 OTHER EXPENSES ON A CONSTANT CURRENCY BASIS
 
 
 
 
 
 
 
 
 
 
 
For the Three Months Ended
 
 
Unaudited (In millions)
 
 
March 31, 2017

 
 
June 30, 2017

 
 
September 30, 2017

 
 
December 31, 2017

 
 
March 31, 2018

 
 
U.S. (1)
 
 
$
909

 
 
$
914

 
 
$
933

 
 
$
926

 
 
$
961

 
 
ASIA
 
 
909

 
 
920

 
 
928

 
 
970

 
 
952

 
 
LATIN AMERICA
 
 
335

 
 
358

 
 
371

 
 
424

 
 
338

 
 
EMEA
 
 
342

 
343

352

 
 
355

 
 
391

 
 
351

 
 
METLIFE HOLDINGS (1)
 
 
340

 
 
370

 
 
322

 
 
333

 
 
276

 
 
CORPORATE & OTHER (1)
 
 
175

 
 
202

 
 
237

 
 
280

 
 
232

 
 
Other expenses, as reported on an adjusted basis, on a constant currency basis
 
 
$
3,010

 
 
$
3,116

 
 
$
3,146

 
 
$
3,324

 
 
$
3,110

 
 
Other expenses, as reported on an adjusted basis
 
 
$
2,941

 
 
$
3,070

 
 
$
3,121

 
 
$
3,277

 
 
$
3,110

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ASIA (including operating joint ventures) (2), (3)
 
 
$
993

 
 
$
1,001

 
 
$
1,012

 
 
$
1,065

 
 
$
1,046

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 ADJUSTED EARNINGS AVAILABLE TO COMMON SHAREHOLDERS ON A CONSTANT CURRENCY BASIS
 
 
 
 
 
 
 
 
 
 
 
For the Three Months Ended
 
 
Unaudited (In millions)
 
 
March 31, 2017

 
 
June 30, 2017

 
 
September 30, 2017

 
 
December 31, 2017

 
 
March 31, 2018

 
 
U.S. (1)
 
 
$
497

 
 
$
493

 
 
$
539

 
 
$
498

 
 
$
653

 
 
ASIA
 
 
306

 
 
318

 
 
319

 
 
317

 
 
327

 
 
LATIN AMERICA
 
 
157

 
 
157

 
 
160

 
 
128

 
 
140

 
 
EMEA
 
 
85

 
 
79

 
 
73

 
 
82

 
 
81

 
 
METLIFE HOLDINGS (1)
 
 
387

 
 
237

 
 
364

 
 
194

 
 
425

 
 
CORPORATE & OTHER (1)
 
 
(76
)
 
 
(145
)
 
 
(336
)
 
 
(528
)
 
 
(203
)
 
 
Total adjusted earnings available to common shareholders on a constant currency basis
 
 
$
1,356

 
 
$
1,139

 
 
$
1,119

 
 
$
691

 
 
$
1,423

 
 
Total adjusted earnings available to common shareholders
 
 
$
1,321

 
 
$
1,121

 
 
$
1,115

 
 
$
678

 
 
$
1,423

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 (1) Amounts on a reported basis, as constant currency impact is not significant.
 
 (2) Adjusted premiums, universal life and investment-type product policy fees, other revenues and other expenses are reported as part of net investment income on the statement of adjusted earnings available to common shareholders for operating joint ventures.
 
 
 (3) Includes MetLife, Inc.'s percentage interest in operating joint ventures as follows: (i) India, 26%, (ii) Vietnam, 60%, (iii) China, 50% and (iv) Malaysia, 50%.

A-6

 
 
 
 
 
 
METLIFE
NON-GAAP AND OTHER FINANCIAL DISCLOSURES

In this QFS, MetLife presents certain measures of its performance that are not calculated in accordance with GAAP. We believe that these non-GAAP financial measures enhance the understanding of our performance by highlighting the results of operations and the underlying profitability drivers of our 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)
adjusted revenues
(i)
revenues
 
(ii)
adjusted expenses
(ii)
expenses
 
(iii)
adjusted premiums, fees and other revenues
(iii)
premiums, fees and other revenues
 
(iv)
adjusted earnings
(iv)
income (loss) from continuing operations, net of income tax
 
(v)
adjusted earnings available to common shareholders
(v)
net income (loss) available to MetLife, Inc.’s common shareholders
 
(vi)
adjusted earnings available to common shareholders on a constant currency basis
(vi)
net income (loss) available to MetLife, Inc.’s common shareholders
 
(vii)
adjusted earnings available to common shareholders per diluted common share
(vii)
net income (loss) available to MetLife, Inc.’s common shareholders per diluted common share
 
(viii)
adjusted return on equity
(viii)
return on equity
 
(ix)
investment portfolio gains (losses)
(ix)
net investment gains (losses)
 
(x)
derivative gains (losses)
(x)
net derivative gains (losses)
 
(xi)
MetLife, Inc.’s tangible common stockholders’ equity
(xi)
MetLife, Inc.’s stockholders’ equity
 
(xii)
MetLife, Inc.’s common stockholders’ equity, excluding AOCI other than FCTA
(xii)
MetLife, Inc.’s stockholders’ equity
 
(xiii)
MetLife, Inc.'s common stockholders' equity, excluding net equity of assets and liabilities of disposed subsidiary (excludes AOCI other than FCTA)
(xiii)
MetLife, Inc.’s stockholders’ equity
 
(xiv)
adjusted expense ratio
(xiv)
expense ratio
 
(xv)
adjusted expense ratio, excluding total notable items related to other expenses and PRT

(xv)
expense ratio
 
(xvi)
direct expense ratio

(xvi)
expense ratio
 
(xvii)
direct expense ratio, excluding total notable items related to other expenses and PRT

(xvii)
expense ratio
 
 
 
 
 
 
Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures are included in this QFS and in this period’s earnings news release which is available at www.metlife.com.

Our definitions of the various non-GAAP and other financial measures discussed in this QFS may differ from those used by other companies:

Adjusted earnings and related measures
 
 
 
 
•
adjusted earnings;
 
•
adjusted earnings available to common shareholders; and
 
•
adjusted earnings available to common shareholders per diluted common share.
 
 
 
 
 
 
These measures are used by management to evaluate performance and allocate resources. Consistent with GAAP guidance for segment reporting, adjusted earnings is also MetLife’s GAAP measure of segment performance. Adjusted earnings and other financial measures based on adjusted earnings are also the measures by which MetLife senior management’s and many other employees’ performance is evaluated for the purposes of determining their compensation under applicable compensation plans. Adjusted earnings and other financial measures based on adjusted earnings allow analysis of our performance relative to our business plan and facilitate comparisons to industry results.

Adjusted earnings is defined as adjusted revenues less adjusted expenses, both net of income tax. Adjusted earnings available to common shareholders is defined as adjusted earnings less preferred stock dividends.

Adjusted revenues and adjusted expenses

These financial measures, along with the related adjusted premiums, fees and other revenues, focus on our primary businesses principally by excluding the impact of market volatility, which could distort trends, and revenues and costs related to non-core products and certain entities required to be consolidated under GAAP. Also, these measures exclude results of discontinued operations under GAAP and other businesses that have been or will be sold or exited by MetLife but do not meet the discontinued operations criteria under GAAP (“Divested businesses”). Divested businesses also includes the net impact of transactions with exited businesses that have been eliminated in consolidation under GAAP and costs relating to businesses that have been or will be sold or exited by MetLife that do not meet the criteria to be included in results of discontinued operations under GAAP. Adjusted revenues also excludes NIGL and NDGL. Adjusted expenses also excludes goodwill impairments.
 
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 related to NIGL and NDGL (“Unearned revenue adjustments”) and certain variable annuity GMIB fees (“GMIB fees”);

 
•
Net investment income: (i) includes earned income on derivatives 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 (“Investment hedge adjustments”), (ii) excludes post-tax adjusted earnings adjustments relating to insurance joint ventures accounted for under the equity method (“Operating joint venture adjustments”), (iii) excludes certain amounts related to contractholder-directed unit-linked investments (“Unit-linked contract income”), (iv) excludes certain amounts related to securitization entities that are VIEs consolidated under GAAP (“Securitization entities income”), and (v) includes distributions of profits from certain other limited partnership interests that were previously accounted for under the cost method, but are now accounted for at estimated fair value, where the change in estimated fair value is recognized in NIGL for GAAP ("Certain partnership distributions"); and

 
•
Other revenues are adjusted for settlements of foreign currency earnings hedges and excludes fees received in association with services provided under transition service agreements ("TSA fees").


A-7


 
 
 
 
 
 
 
 
 
 
 
METLIFE
NON-GAAP AND OTHER FINANCIAL DISCLOSURES (CONTINUED)




 
Adjusted revenues and adjusted expenses (continued)


 
The following additional adjustments are made to expenses, in the line items indicated, in calculating adjusted expenses:
 
•
Policyholder benefits and claims and policyholder dividends excludes: (i) changes in the policyholder dividend obligation related to NIGL and NDGL (“PDO adjustments”), (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 (“Inflation and 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 earned income on derivatives and amortization of premium on derivatives that are hedges of policyholder account balances but do not qualify for hedge accounting treatment (“PAB hedge adjustments”) and excludes amounts related to net investment income earned on contractholder-directed unit-linked investments (“Unit-linked contract costs”);
 
•
Amortization of DAC and 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 (“Securitization entities debt expense”); and
 
•
Other expenses excludes costs related to: (i) noncontrolling interests, (ii) implementation of new insurance regulatory requirements (“Regulatory implementation costs”) and (iii) acquisition, integration and other costs. Other expenses includes TSA fees.
 
 
 
 
 
 
Adjusted 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.

The tax impact of the adjustments mentioned above are calculated net of the U.S. or foreign statutory tax rate, which could differ from the Company’s effective tax rate.  Additionally, the provision for income tax (expense) benefit also includes the impact related to the timing of certain tax credits, as well as certain tax reforms.


 
Investment portfolio gains (losses) and derivative gains (losses)

These are measures of investment and hedging activity. Investment portfolio gains (losses) principally excludes amounts that are reported within net investment gains (losses) but do not relate to the performance of the investment portfolio, such as gains (losses) on sales and divestitures of businesses, goodwill impairment or changes in estimated fair value. Derivative gains (losses) principally excludes earned income on derivatives and amortization of premium on derivatives, where such derivatives are either hedges of investments or are used to replicate certain investments, and where such derivatives do not qualify for hedge accounting. This earned income and amortization of premium is reported within adjusted earnings and not within derivative gains (losses).

 
 
 
Return on equity, allocated equity, tangible equity and related measures

 
•
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.

 
•
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.
 
•
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.
 
•
Adjusted return on MetLife, Inc.’s common stockholders’ equity - adjusted earnings available to common shareholders divided by MetLife, Inc.'s average common stockholders’ equity.
 
•
Adjusted return on MetLife, Inc.’s common stockholders’ equity, excluding AOCI other than FCTA - adjusted earnings available to common shareholders divided by MetLife, Inc.'s average common stockholders’ equity, excluding AOCI other than FCTA.
 
•
Adjusted return on MetLife, Inc.’s common stockholders’ equity, excluding net equity of assets and liabilities of disposed subsidiary (excludes AOCI other than FCTA)
 - adjusted earnings available to common shareholders divided by MetLife, Inc.’s average common stockholders’ equity, excluding net equity of assets and liabilities of disposed subsidiary (excludes AOCI other than FCTA)
 
•
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.
 
•
Return on allocated equity - net income (loss) available to MetLife, Inc.'s common shareholders divided by allocated equity.
 
•
Adjusted return on allocated equity - adjusted earnings available to common shareholders divided by allocated equity.
 
 
The above measures represent a level of equity consistent with the view that, in the ordinary course of business, we do not plan to sell most investments for the sole purpose of realizing gains or losses. Also, refer to the utilization of adjusted earnings and other financial measures based on adjusted earnings mentioned above.

 
 
 
 
•
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, VODA and VOCRA, all net of income tax.

 
•
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.
 
•
Adjusted return on MetLife, Inc.’s tangible common stockholders’ equity - adjusted 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.
 
•
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.
 
•
Adjusted return on allocated tangible equity - adjusted earnings available to common shareholders, excluding amortization of VODA and VOCRA, net of income tax, divided by allocated tangible equity.
 
 
The above measures are, when considered in conjunction with regulatory capital ratios, a measure of capital adequacy.


A-8

 
 
 
 
 
 
 
 
 
 
 
METLIFE
NON-GAAP AND OTHER FINANCIAL DISCLOSURES (CONTINUED)




 
Expense ratio, direct expense ratio, adjusted expense ratio and related measures
 
•
Expense ratio - other expenses, net of capitalization of DAC, divided by total premiums, fees and other revenues.
 
•
Direct expense ratio - direct expenses, on an adjusted basis, divided by total adjusted premiums, fees and other revenues.
 
•
Direct expense ratio, excluding total notable items and PRT - direct expenses, on an adjusted basis, excluding total total notable items related to direct expenses, divided by total adjusted premiums, fees and other revenues, excluding PRT.
 
•
Adjusted expense ratio - other expenses, net of capitalization of DAC, both on an adjusted basis, divided by total adjusted premiums, fees and other revenues.
 
•
Adjusted expense ratio, excluding total notable items and PRT - other expenses, net of capitalization of DAC, both on an adjusted basis, excluding total notable items related to other expenses, divided by total adjusted premiums, fees and other revenues, excluding PRT.
 
The following additional information is relevant to an understanding of our performance results:
 
•
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. As a result, amounts will be updated each period to reflect the average foreign currency exchange rates.


A-9

 
 
 
 
METLIFE
ACRONYMS
 
 
 
 
AOCI
Accumulated other comprehensive income (loss)
 
CSE
Consolidated securitization entity
 
DAC
Deferred policy acquisition costs
 
EMEA
Europe, the Middle East and Africa
 
FCTA
Foreign currency translation adjustments
 
GAAP
Accounting principles generally accepted in the United States of America
 
GMIB
Guaranteed minimum income benefits
 
LTC
Long-term care
 
NAIC
National Association of Insurance Commissioners
 
NDGL
Net derivative gains (losses)
 
NIGL
Net investment gains (losses)
 
NRSRO
Nationally Recognized Statistical Rating Organizations
 
PDO
Policyholder dividend obligation
 
PAB
Policyholder account balances
 
PRT
Pension risk transfers
 
TSA
Transition service agreement
 
QFS
Quarterly financial supplement
 
VIE
Variable interest entity
 
VOBA
Value of business acquired
 
VOCRA
Value of customer relationships acquired
 
VODA
Value of distribution agreements

A-10



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