-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, HoiXwTh9+SXLa2BAFDgJxsNnAaXQ6++ufHwnf/N7Dr0fdPv9cSwYiLbnyDxSQFfa Y7bsy34XyPvP6yLsyPgCCA== 0000950123-04-008881.txt : 20040728 0000950123-04-008881.hdr.sgml : 20040728 20040728171158 ACCESSION NUMBER: 0000950123-04-008881 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20040728 ITEM INFORMATION: FILED AS OF DATE: 20040728 FILER: COMPANY DATA: COMPANY CONFORMED NAME: METLIFE INC CENTRAL INDEX KEY: 0001099219 STANDARD INDUSTRIAL CLASSIFICATION: INSURANCE AGENTS BROKERS & SERVICES [6411] IRS NUMBER: 134075851 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-15787 FILM NUMBER: 04936655 BUSINESS ADDRESS: STREET 1: 200 PARK AVENUE CITY: NEW YORK STATE: NY ZIP: 10166 BUSINESS PHONE: 2125782211 MAIL ADDRESS: STREET 1: 200 PARK AVENUE CITY: NEW YORK STATE: NY ZIP: 10166 8-K 1 y99403e8vk.txt METLIFE, INC. - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 -------------- FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report: July 28, 2004 --------------------------------- (Date of earliest event reported) MetLife, Inc. ------------- (Exact name of registrant as specified in its charter) Delaware 1-15787 13-4075851 - ---------------------------- ---------------- ------------------- (State or other jurisdiction (Commission File (I.R.S. Employer of incorporation) Number) Identification No.) 200 Park Avenue, New York, New York 10166 --------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (212) 578-2211 -------------- - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Item 12. Results of Operations and Financial Condition. On July 28, 2004, MetLife, Inc., a Delaware Corporation, issued (i) a press release announcing its results for the quarter ended June 30, 2004, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference, and (ii) a Quarterly Financial Supplement for the quarter ended June 30, 2004, a copy of which is attached hereto as Exhibit 99.2 and is incorporated herein by reference. The text of the press release and the Quarterly Financial Supplement is furnished and not filed pursuant to Instruction B.6 of Form 8-K. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. METLIFE, INC. By: /s/ Gwenn L. Carr ------------------------------------- Name: Gwenn L. Carr Title: Vice-President and Secretary Date: July 28, 2004 EXHIBIT INDEX Exhibit Number Exhibit - ------- ------- 99.1 Press Release, dated July 28, 2004, announcing second quarter 2004 results. 99.2 Quarterly Financial Supplement for the quarter ended June 30, 2004. EX-99.1 2 y99403exv99w1.txt PRESS RELEASE Exhibit 99.1 Contacts: For Media: John Calagna (212) 578-6252 For Investors: Tracey Dedrick (212) 578-5140 METLIFE ANNOUNCES SECOND QUARTER 2004 RESULTS REPORTS NET INCOME OF $1.11 PER SHARE, A 41% INCREASE RAISES EARNINGS PER SHARE GUIDANCE FOR 2004 NEW YORK, July 28, 2004 - MetLife, Inc. (NYSE: MET) today reported second quarter 2004 net income of $842 million, or $1.11 per diluted share, compared with $580 million, or $0.79 per diluted share, for the second quarter of 2003. SECOND QUARTER 2004 HIGHLIGHTS - - Achieved record quarterly net income of $842 million - - Earned total premiums and fees of $6.1 billion, a 7% increase over the prior year period - - Continued strong investment spreads - - Achieved record Auto & Home quarterly net income of $68 million Top-line revenue growth across all of MetLife's business segments, strong interest spreads, favorable claims experience and an improvement in investment-related gains and losses all contributed to the 45% increase in net income in the second quarter of 2004, compared with the prior year period. "MetLife had an outstanding quarter as we continued to generate strong top-line growth among our core businesses," said Robert H. Benmosche, chairman and CEO of MetLife, Inc. "Our competitive products, diversified distribution and well-recognized brand continue to serve us well in both the retail and group marketplaces. In addition to increases in premiums and fees, we also benefited from strong investment spreads." "We are increasingly confident in our ability to exceed our previously announced 2004 earnings target of $3.08 to $3.18 operating earnings per share. We now expect 2004 operating earnings per share to be in the range of $3.22 to $3.30," added Benmosche. Net income for the second quarter of 2004 includes after-tax net investment-related gains of $174 million. Second quarter 2003 net income includes after-tax net investment-related losses of $40 million; a $64 million after-tax ($0.09 per diluted share) benefit from a reduction of a previously established liability related to Metropolitan Life Insurance Company's race conscious underwriting settlement; after-tax benefit of $62 million ($0.08 per diluted share) from the merger of the company's Mexican operations and a reduction in policyholder liabilities resulting from a change in reserve methodology; and a $31 million after-tax ($0.05 per diluted share) charge related to previously deferred expenses. 1 MetLife analyzes its performance using non-GAAP measures called operating earnings and operating earnings per diluted share. Operating earnings is defined as GAAP net income, excluding certain after-tax net investment-related gains and losses, and the after-tax impact from the cumulative effect of a change in accounting. Scheduled settlement payments on derivative instruments not qualifying for hedge accounting treatment are included in operating earnings. Operating earnings per diluted share is calculated by dividing operating earnings as defined above by the number of weighted average diluted shares outstanding for the period indicated. MetLife believes these measures enhance the understanding and comparability of its performance by excluding the net effect of certain investment-related gains and losses, which can fluctuate significantly from period to period, and the after-tax impact of the cumulative effect of accounting changes, thereby highlighting the results from operations and the underlying profitability drivers of the business. Operating earnings and operating earnings per diluted share should not be viewed as substitutes for GAAP net income and GAAP net income per diluted share, respectively. In this release, MetLife provides guidance on its future earnings per share on an operating, non-GAAP basis. A reconciliation of these measures to the most directly comparable GAAP measures is not accessible on a forward-looking basis because MetLife believes it is not possible to provide a reliable forecast of net investment gains and losses, which can fluctuate significantly from period to period and may have a significant impact on GAAP net income. Operating earnings for the second quarter of 2004 were $668 million, or $0.88 per diluted share, compared with $620 million, or $0.84 per diluted share, for the prior year period. A reconciliation of net income and net income per diluted share to operating earnings and operating earnings per diluted share follows:
For the three months ended June 30, ----------------------------------- 2004 2003 ---- ---- (Dollars in millions, except per share data) Net income $ 842 $ 1.11 $ 580 $ 0.79 Net investment-related (gains) losses, net of income taxes(1) (174) (0.23) 40 0.05 ----- ------ ----- ------ Operating earnings $ 668 $ 0.88 $ 620 $ 0.84 ===== ====== ===== ======
(1) Net investment-related (gains) losses, net of income taxes, include gains on sales of real estate and real estate joint ventures related to discontinued operations of $85 million and $0 million, respectively, for the three months ended June 30, 2004 and 2003. In addition, net investment-related (gains) losses, net of income taxes, exclude gains of $14 million and $8 million for the three months ended June 30, 2004 and 2003, respectively, from scheduled settlement payments on derivative instruments not qualifying for hedge accounting. SIX MONTH HIGHLIGHTS - - Increased individual annuity deposits by 14% to $6.3 billion from the prior year period - - Increased total premiums and fees to $12.1 billion, up 9% from the prior year period - - Continued strong investment spreads - - Grew equity book value, excluding other comprehensive income, nearly 13% to $19.5 billion from the prior year period 2 SIX MONTH RESULTS Net income for the first six months of 2004 is $1.37 billion, or $1.80 per diluted share, compared with $942 million, or $1.29 per diluted share, for the first six months of 2003. Net income for the first six months of 2004 includes after-tax net investment gains of $259 million and an approximate $158 million after-tax charge for the cumulative effect of a change in accounting resulting from the required application of a new accounting standard (AICPA Statement of Position 03-1). Net income for the first six months of 2003 includes after-tax net investment losses of $124 million. Operating earnings for the first six months of 2004 are $1.26 billion, or $1.66 per diluted share, compared with $1.07 billion, or $1.49 per diluted share, for the comparable prior year period. Net income and operating earnings for the first six months of 2003 also benefited from the aforementioned items from the second quarter of 2003 (see paragraph six). A reconciliation of net income and net income per diluted share to operating earnings and operating earnings per diluted share follows:
For the six months ended June 30, --------------------------------- 2004 2003 ---- ---- (Dollars in millions, except per share data) Net income $ 1,365 $ 1.80 $ 942 $ 1.29 Net investment-related (gains) losses, net of income taxes(1) (259) (0.34) 124 0.17 Impact of conversion of securities -- -- -- 0.03 Cumulative effect of a change in accounting(2) 158 0.20 -- -- ------- ------ ------- ------- Operating earnings $ 1,264 $ 1.66 $ 1,066 $ 1.49 ======= ====== ======= =======
(1) Net investment-related (gains) losses, net of income taxes, include gains on sales of real estate and real estate joint ventures related to discontinued operations of $98 million and $57 million, respectively, for the six months ended June 30, 2004 and 2003. In addition, net investment-related (gains) losses, net of income taxes, exclude gains of $23 million and $13 million for the six months ended June 30, 2004 and 2003, respectively, from scheduled settlement payments on derivative instruments not qualifying for hedge accounting. (2) Cumulative effect of a change in accounting, net of income taxes, for the three months ended March 31, 2004 relates to the adoption of AICPA Statement of Position 03-1, Accounting and Reporting by Insurance Enterprises for Certain Non-Traditional Long-Duration Contracts and for Separate Accounts. SECOND QUARTER SEGMENT OVERVIEW Reconciliations of segment net income to operating earnings are provided in the tables that accompany this release. INSTITUTIONAL BUSINESS EARNINGS UP 22% Institutional Business operating earnings for the second quarter of 2004 were $317 million, compared with $260 million in the prior year period. Strong interest spreads in Retirement and Savings, which are primarily attributable to asset growth, contributed to the increase, while underwriting results in Group Life remained favorable. This was partially offset by a decrease in non-medical health operating earnings, due primarily to a decline in underwriting margins in the 3 dental and individual disability businesses. In addition, the current period also benefited from a $31 million after-tax reduction to a previously established premium tax liability. During the quarter, Group Life premiums, fees and other revenues grew 8% over the prior year period primarily due to strong sales and persistency and, in part, to the late 2003 acquisition of John Hancock's group life insurance business. Retirement and Savings net investment income grew 10% due to an increase in the asset base as well as higher investment spreads. Non-medical health insurance premiums, fees and other revenues increased 12% during the quarter due to continued growth in both the Small Business Center and the Long-Term Care business. INDIVIDUAL BUSINESS EARNINGS UP 39% Individual Business operating earnings were $210 million in the second quarter of 2004, compared with $151 million in the prior year period. Results in Individual Business were driven by higher earnings in the annuity product line due to growth in separate account and strong interest spreads. Traditional Life results benefited from favorable mortality while Variable Life/Universal Life results reflected adverse mortality experience. Fees for the investment-type products within the Annuity business increased by 64%, compared with the year ago period. In addition, first year premiums and deposits for the Variable and Universal Life business were up 36% from the prior year period, largely driven by high initial premium Universal Life sales. AUTO & HOME EARNINGS UP 69% Auto & Home operating earnings were $71 million in the second quarter of 2004, compared with $42 million in the prior year period. Results benefited from an improved combined ratio (93.1%), driven by continued reductions in auto and homeowners non-catastrophe frequencies, lower auto severities and higher average earned premiums. INTERNATIONAL International operating earnings were $41 million in the second quarter of 2004, compared with $102 million in the prior year period. Operating earnings for the second quarter of 2003 includes $62 million of after-tax benefits related to the merger of the company's Mexican operations and a reduction in policyholder liabilities related to a change in reserve methodology. ASSET MANAGEMENT Asset Management operating earnings were $16 million in the second quarter of 2004, compared with $5 million in the prior year period. The increase was due to higher performance fees earned on certain institutional products during the quarter. INVESTMENTS During the 2004 quarter, the company completed the sale of Sears Tower, which resulted in an after-tax gain of $85 million. Corporate joint venture income, bond prepayment fees and commercial mortgage prepayments were at higher than normal levels during the quarter and further improved the investment spreads across all segments. 4 CORPORATE EVENTS For the quarter ended June 30, 2004, the company repurchased through its share repurchase program approximately 6.1 million shares of common stock at an aggregate cost of approximately $210 million. At June 30, 2004, the company had approximately $434 million remaining on its existing share repurchase authorization. During the second quarter, MetLife made a $32 million after-tax contribution to MetLife Foundation, the company's non-profit organization. This item is recorded in Corporate & Other in other expenses. MetLife is currently under audit by the Internal Revenue Service for the years 1997-1999. Management anticipates that it may resolve all issues related to the IRS's audit before filing its 10-Q for this quarter. If the audit is resolved in the timeframe anticipated, the effect of the audit will be reflected in a revision to the second quarter financial results disclosed in this release. MetLife believes that if the audit is concluded as expected, second quarter 2004 consolidated financial results will be favorably impacted. Any earnings adjustment will be reflected in the 10-Q. MetLife will hold its second quarter 2004 earnings conference call and audio Webcast on Thursday, July 29, 2004, from 8:00 to 9:00 a.m. (ET). The conference call will be available live via telephone and the Internet. To listen over the telephone, dial (612) 326-1003 (domestic and international callers). To listen to the conference call over the Internet, visit www.metlife.com (through a link on the Investor Relations page). Those who want to listen to the call on the telephone or via the Internet should dial in or go to the Web site at least fifteen minutes prior to the call to register, and/or download and install any necessary audio software. The conference call will be available for replay via telephone and the Internet beginning at 11:30 a.m. (ET) on Thursday, July 29, 2004, until Thursday, August 5, 2004, at 11:59 p.m. (ET). To listen to a replay of the conference call over the telephone, dial (320) 365-3844 (domestic and international callers). The access code for the replay is 736301. To access the replay of the conference call over the Internet, visit the above-mentioned Web site. MetLife, Inc., through its subsidiaries and affiliates, is a leading provider of insurance and other financial services to individual and institutional customers. The MetLife companies serve individuals in approximately 13 million households in the U.S. and provide benefits to 37 million employees and family members through their plan sponsors. Outside the U.S., the MetLife companies serve approximately 8 million customers through direct insurance operations in Argentina, Brazil, Chile, China, Hong Kong, India, Indonesia, Mexico, South Korea, Taiwan and Uruguay. For more information about MetLife, please visit the company's Web site at www.metlife.com. # # # This release contains statements which constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to trends in the company's operations and financial results and the business and the products of the company 5 and its subsidiaries, as well as other statements including words such as "anticipate," "believe," "plan," "estimate," "expect," "intend" and other similar expressions. Forward-looking statements are made based upon management's current expectations and beliefs concerning future developments and their potential effects on the company. Such forward-looking statements are not guarantees of future performance. Actual results may differ materially from those included in the forward-looking statements as a result of risks and uncertainties including, but not limited to the following: (i) changes in general economic conditions, including the performance of financial markets and interest rates; (ii) heightened competition, including with respect to pricing, entry of new competitors and the development of new products by new and existing competitors; (iii) unanticipated changes in industry trends; (iv) the company's primary reliance, as a holding company, on dividends from its subsidiaries to meet debt payment obligations and the applicable regulatory restrictions on the ability of the subsidiaries to pay such dividends; (v) deterioration in the experience of the "closed block" established in connection with the reorganization of Metropolitan Life Insurance Company; (vi) catastrophe losses; (vii) adverse results or other consequences from litigation, arbitration or regulatory investigations; (viii) regulatory, accounting or tax changes that may affect the cost of, or demand for, the company's products or services; (ix) downgrades in the company's and its affiliates' claims paying ability, financial strength or credit ratings; (x) changes in rating agency policies or practices; (xi) discrepancies between actual claims experience and assumptions used in setting prices for the company's products and establishing the liabilities for the company's obligations for future policy benefits and claims; (xii) discrepancies between actual experience and assumptions used in establishing liabilities related to other contingencies or obligations; (xiii) the effects of business disruption or economic contraction due to terrorism or other hostilities; (xiv) the company's ability to identify and consummate on successful terms any future acquisitions, and to successfully integrate acquired businesses with minimal disruption; and (xv) other risks and uncertainties described from time to time in the company's filings with the Securities and Exchange Commission, including its S-1 and S-3 registration statements. The company specifically disclaims any obligation to update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise. For a copy of MetLife's Quarterly Financial Supplement, please visit www.metlife.com. 6 MetLife, Inc. Consolidated Statements of Income Unaudited (Dollar amounts in millions)
Three months ended June 30, Six months ended June 30, -------------------------- ------------------------ 2004 2003 2004 2003 ---- ---- ---- ---- Premiums $ 5,331 $ 5,083 $ 10,698 $ 9,915 Universal life and investment-type product policy fees 728 603 1,404 1,175 Net investment income 3,117 2,864 6,092 5,737 Other revenues 356 355 709 653 Net investment-related gains (losses) (net of amounts allocated from other accounts of ($111), $0, ($125) and ($38), respectively) 158 (42) 288 (256) ------- -------- --------- -------- Total revenues 9,690 8,863 19,191 17,224 ------- -------- --------- -------- Policyholder benefits and claims (excludes amounts directly related to net investment-related gains (losses) of ($117), $5, ($148) and ($23), respectively) 5,452 4,965 10,943 9,918 Interest credited to policyholder account balances 751 761 1,494 1,508 Policyholder dividends 471 507 913 1,010 Other expenses (excludes amounts directly related to net investment-related gains (losses) of $6, ($5), $23 and ($15), respectively) 1,932 1,846 3,796 3,595 ------- -------- --------- -------- Total expenses 8,606 8,079 17,146 16,031 ------- -------- --------- -------- Income from continuing operations before provision for income taxes 1,084 784 2,045 1,193 Provision for income taxes 337 212 640 327 ------- -------- --------- -------- Income from continuing operations 747 572 1,405 866 Income from discontinued operations, net of income taxes 95 8 118 76 ------- -------- --------- -------- Income before cumulative effect of change in accounting, net of income taxes 842 580 1,523 942 Cumulative effect of change in accounting, net of income taxes (4) - - (158) - ------- -------- --------- -------- Net income $ 842 $ 580 $ 1,365 $ 942 ======= ======== ========= ======== OPERATING EARNINGS RECONCILIATION Net income $ 842 $ 580 $ 1,365 $ 942 Net investment-related gains (losses) 157 (54) 280 (224) Minority interest - net investment-related gains (losses) (8) (2) (16) 2 Adjustments to net investment-related gains (losses) (1) 111 - 125 38 Net investment-related gains (losses) tax benefit (provision) (86) 16 (130) 60 ------- -------- --------- -------- Net investment-related gains (losses), net of income taxes (2) (3) 174 (40) 259 (124) Cumulative effect of a change in accounting, net of income taxes (4) - - 158 - ------- -------- --------- -------- Operating earnings $ 668 $ 620 $ 1,264 $ 1,066 ======= ======== ========= ========
(1) Adjustments to net investment-related gains (losses) include amortization of deferred policy acquisition costs, changes in fair value of a reference pool of assets relating to participating contracts and adjustments to the policyholder dividend obligation resulting from investment-related gains (losses). (2) Net investment-related gains (losses), net of income taxes, include gains on sales of real estate and real estate joint ventures related to discontinued operations, of $85 million and $98 million, respectively, for the three months and six months ended June 30, 2004 and $0 million and $57 million, respectively, for the three months and six months ended June 30, 2003. (3) Net investment-related gains (losses), net of income taxes, exclude scheduled settlement payments on derivative instruments not qualifying for hedge accounting treatment, of $14 million and $23 million, respectively, for the three months and six months ended June 30, 2004 and $8 million and $13 million, respectively, for the three months and six months ended June 30, 2003. (4) Cumulative effect of a change in accounting, net of income taxes, for the three months ended March 31, 2004 is in accordance with Statement of Position 03-1, Accounting and Reporting by Insurance Enterprises for Certain Nontraditional Long-Duration Contracts and for Separate Accounts. MetLife, Inc. Financial Highlights Unaudited (Dollar amounts in million, except per share data or unless otherwise noted)
At or for At or for the three months the six months ended June 30, ended June 30, ------------------ --------------------- 2004 2003 2004 2003 ---- ---- ---- ---- Other Financial Data: Net income $ 842 $ 580 $ 1,365 $ 942 Operating earnings $ 668 $ 620 $ 1,264 $ 1,066 Total assets under management (billions) $ 365.3 $ 331.7 $ 365.3 $ 331.7 Individual Business Sales Data: Total first year life premiums and deposits $ 273 $ 182 $ 476 $ 394 Variable and Universal life first year premiums and deposits (including COLI/BOLI) $ 226 $ 133 $ 384 $ 292 Total annuity deposits $ 2,882 $ 2,993 $ 6,318 $ 5,544 Mutual fund sales $ 864 $ 858 $ 1,919 $ 1,649 Earnings per Share Calculation: Weighted average common shares outstanding - diluted 758.0 731.3 759.1 715.9 Operating earnings per share - diluted $ 0.88 $ 0.84 $ 1.66 $ 1.49 Net income per share - diluted $ 1.11 $ 0.79 $ 1.80 $ 1.29(1)
(1) Accounting standards require gains or losses resulting from the redemption of a subsidiary's redeemable preferred stock to be recorded in additional paid-in capital. However, such gains or losses are included in the calculation of net income per share. During the first quarter of 2003, net income per share includes a $21 million ($0.03 per diluted share) charge associated with the company's conversion of company-obligated mandatorily redeemable securities issued by MetLife Capital Trust I into long-term debt. MetLife, Inc. Balance Sheet Data June 30, 2004 (Unaudited) and December 31, 2003 (Dollar amounts in millions)
At At June 30, December 31, 2004 2003 ----------- ----------- Balance Sheet Data: General account assets $ 258,482 $ 251,085 Separate account assets 79,747 75,756 ----------- ----------- Total assets $ 338,229 $ 326,841 =========== =========== Policyholder liabilities (including amounts of closed block) $ 185,131 $ 179,571 Short-term debt 3,218 3,642 Long-term debt 6,226 5,703 Other liabilities 42,696 41,020 Separate account liabilities 79,747 75,756 ----------- ----------- Total liabilities 317,018 305,692 ----------- ----------- Common stock, at par value 8 8 Capital in excess of par value 15,013 14,991 Retained earnings 5,558 4,193 Treasury stock (1,085) (835) Accumulated other comprehensive income 1,717 2,792 ----------- ----------- Total stockholders' equity 21,211 21,149 ----------- ----------- Total liabilities and stockholders' equity $ 338,229 $ 326,841 =========== ===========
MetLife, Inc. Reconciliations of Net Income to Operating Earnings - Product Level Unaudited (Dollar amounts in millions)
Three months ended June 30, Six months ended June 30, -------------------------- ------------------------- 2004 2003 2004 2003 ---- ---- ---- ---- Institutional Operations Group Life Net income (loss) $ 126 $ 71 $ 220 $ 136 Net investment-related gains (losses), net of income taxes (4) (8) 13 (21) ------- ----- ------- ------ Operating earnings (loss) $ 130 $ 79 $ 207 $ 157 ======= ===== ======= ====== Retirement & Savings Net income (loss) $ 183 $ 122 $ 353 $ 179 Net investment-related gains (losses), net of income taxes 48 2 80 (23) Cumulative effect of a change in accounting, net of income taxes - - (40) - ------- ----- ------- ------ Operating earnings (loss) $ 135 $ 120 $ 313 $ 202 ======= ===== ======= ====== Non-Medical Health & Other Net income (loss) $ 68 $ 61 114 114 Net investment-related gains (losses), net of income taxes 16 - 20 (6) Cumulative effect of a change in accounting, net of income taxes - - (20) - ------- ----- ------- ------ Operating earnings (loss) $ 52 $ 61 $ 114 $ 120 ======= ===== ======= ====== Individual Operations Traditional Life Net income (loss) $ 93 $ 62 164 144 Net investment-related gains (losses), net of income taxes 16 (13) 23 (7) ------- ----- ------- ------- Operating earnings (loss) $ 77 $ 75 $ 141 $ 151 ======= ===== ======= ====== Variable & Universal Life Net income (loss) $ 22 $ 13 $ (36) $ 31 Net investment-related gains (losses), net of income taxes (3) 7 (1) 2 Cumulative effect of a change in accounting, net of income taxes - - (81) - ------- ----- ------- ------ Operating earnings (loss) $ 25 $ 6 $ 46 $ 29 ======= ===== ======= ====== Annuities Net income (loss) $ 117 $ 55 $ 215 $ 90 Net investment-related gains (losses), net of income taxes 16 (1) 18 (16) Cumulative effect of a change in accounting, net of income taxes - - 11 - ------ ----- ------- ------ Operating earnings (loss) $ 101 $ 56 $ 186 $ 106 ====== ===== ======= ====== Other Net income (loss) $ 7 $ 14 $ 12 $ 20 Net investment-related gains (losses), net of income taxes - - (9) (5) ------ ----- ------- ------ Operating earnings (loss) $ 7 $ 14 $ 21 $ 25 ====== ===== ======= ====== Auto & Home Auto Net income (loss) $ 58 $ 21 $ 80 $ 15 Net investment-related gains (losses), net of income taxes (3) - (3) (2) ------ ----- ------- ------ Operating earnings (loss) $ 61 $ 21 $ 83 $ 17 ====== ===== ======= ====== Homeowners Net income (loss) $ 12 $ 19 $ 34 $ 50 Net investment-related gains (losses), net of income taxes - (1) - (2) ------ ----- ------- ------ Operating earnings (loss) $ 12 $ 20 $ 34 $ 52 ====== ===== ======= ====== Other Net income (loss) $ (2) $ 1 $ - $ 3 Net investment-related gains (losses), net of income taxes - - - - ------ ----- ------- ------ Operating earnings (loss) $ (2) $ 1 $ - $ 3 ====== ===== ======= ======
EX-99.2 3 y99403exv99w2.txt QUARTERLY FINANCIAL SUPPLEMENT (METLIFE LOGO) SECOND QUARTER FINANCIAL SUPPLEMENT JUNE 30, 2004 (SNOOPY GRAPHIC) (GRAPHIC OF THE NUMBER 2) (METLIFE LOGO) - -------------------------------------------------------------------------------- TABLE OF CONTENTS HIGHLIGHTS CORPORATE OVERVIEW 2 METLIFE, INC. CONSOLIDATED BALANCE SHEETS 3 CONSOLIDATED STATEMENTS OF OPERATING EARNINGS 4 TOTAL COMPANY HEADCOUNT 5 CONSOLIDATING BALANCE SHEET 6 CONSOLIDATING STATEMENT OF OPERATING EARNINGS 7 INSURANCE OPERATIONS CONSOLIDATED STATEMENTS OF OPERATING EARNINGS 11 CONSOLIDATING STATEMENT OF OPERATING EARNINGS 12 SUMMARY OF SEGMENT OPERATING EARNINGS 16 INSTITUTIONAL OPERATIONS STATEMENTS OF OPERATING EARNINGS 17 PREMIUMS, FEES AND OTHER REVENUES BY PRODUCT AND ADDITIONAL STATISTICAL INFORMATION 21 FUTURE POLICY BENEFITS AND POLICYHOLDER ACCOUNT BALANCES AND SEPARATE ACCOUNT LIABILITIES 22 EXPENSES BY MAJOR CATEGORY 23 SPREADS BY PRODUCT 24 INDIVIDUAL OPERATIONS STATEMENTS OF OPERATING EARNINGS 25 PREMIUMS AND DEPOSITS BY PRODUCT AND MANUFACTURER AND MUTUAL FUND SALES 30 ADDITIONAL STATISTICAL INFORMATION 31 FUTURE POLICY BENEFITS AND POLICYHOLDER ACCOUNT BALANCES AND SEPARATE ACCOUNT LIABILITIES 32 INSURANCE EXPENSES AND OTHER EXPENSES BY MAJOR CATEGORY 33 SPREADS BY PRODUCT 34 AUTO & HOME OPERATIONS STATEMENTS OF OPERATING EARNINGS 35 WRITTEN PREMIUMS BY PRODUCT AND SELECTED FINANCIAL INFORMATION AND SUPPLEMENTAL DATA 39 INTERNATIONAL OPERATIONS STATEMENTS OF OPERATING EARNINGS 40 REINSURANCE OPERATIONS STATEMENTS OF OPERATING EARNINGS 41 PRE-TAX AND PRE-MINORITY INTEREST OPERATING EARNINGS BY REGION AND RESERVES BY REGION 42 ASSET MANAGEMENT OPERATIONS STATEMENTS OF OPERATING EARNINGS 43 CHANGE IN ASSETS UNDER MANAGEMENT AND COMPOSITION OF ASSETS UNDER MANAGEMENT 44 CORPORATE, OTHER & ELIMINATIONS STATEMENTS OF OPERATING EARNINGS 45 METLIFE, INC. INVESTMENT RESULTS BY ASSET CATEGORY AND ANNUALIZED YIELDS 46 FIXED MATURITIES AND EQUITY SECURITIES GROSS UNREALIZED LOSSES AGING SCHEDULE 48 SUMMARY OF FIXED MATURITIES BY SECTOR AND BY QUALITY DISTRIBUTION, AND SUMMARY OF COMMERCIAL MORTGAGE LOANS BY REGION AND PROPERTY TYPE 49 SUMMARY OF REAL ESTATE, SUMMARY OF MORTGAGES AND DISTRIBUTION OF ASSETS UNDER MANAGEMENT 50 OTHER INFORMATION COMPANY RATINGS 51
NOTE: - ----- The Quarterly Financial Supplement ("QFS") includes financial measures, operating earnings and operating earnings per diluted share, that are not based on generally accepted accounting principles ("GAAP"). Operating earnings is defined as GAAP net income excluding certain net investment-related gains and losses, net of income taxes, and the impact from the cumulative effect of a change in accounting, net of income taxes. Scheduled settlement payments on derivative instruments not qualifying for hedge accounting treatment are included in operating earnings. Operating earnings per diluted share is calculated by dividing operating earnings as defined above by the number of weighted average diluted shares outstanding for the period indicated. MetLife uses operating earnings and operating earnings per diluted share in analyzing its performance; it believes that these measures enhance the understanding and comparability of its performance by excluding the net effect of certain investment-related gains and losses, which can fluctuate significantly from period to period, and the impact of the cumulative effect of a change in accounting, net of income taxes, thereby highlighting the results from operations and the underlying profitability drivers of the business. Operating earnings and operating earnings per diluted share should not be viewed as substitutes for GAAP net income and GAAP net income per diluted share, respectively. Reconciliations of operating earnings to GAAP net income and operating earnings per diluted share to GAAP net income per diluted share, the most directly comparable GAAP measures, are included in the QFS and in MetLife's earnings press release, dated July 28, 2004, for the quarter ended June 30, 2004, which are available at www.metlife.com. 1 (METLIFE LOGO) - -------------------------------------------------------------------------------- CORPORATE OVERVIEW
Unaudited (Dollars and shares in millions, except per share data) For the Three Months Ended ---------------------------------------------------------------------- June 30, March 31, December 31, September 30, June 30, March 31, 2004 2004 2003 2003 2003 2003 ---------------------------------------------------------------------- Net income (1) $842 $523 $701 $574 $580 $362 Net investment-related gains (losses) 157 123 139 (151) (54) (170) Minority interest - net investment-related gains (losses) (8) (8) (9) (2) (2) 4 Adjustments to net investment-related gains (losses) (2) 111 14 138 39 0 38 Net investment-related gains (losses) tax benefit (provision) (86) (44) (106) 72 16 44 ---------------------------------------------------------------------- Net investment-related gains (losses), net of income taxes (3) (4) 174 85 162 (42) (40) (84) Cumulative effect of a change in accounting, net of income taxes (5) 0 (158) (26) 0 0 0 ---------------------------------------------------------------------- Operating earnings $668 (7) $596 $565 $616 (8) $620 (9) $446 ====================================================================== Net income per share - diluted $1.11 $0.69 $0.92 $0.75 $0.79 $0.47 (10) Net investment-related gains (losses), net of income taxes 0.23 0.11 0.21 (0.06) (0.05) (0.12) Cumulative effect of a change in accounting, net of income taxes 0.00 (0.20) (0.03) 0.00 0.00 0.00 Impact of conversion of securities 0.00 0.00 0.00 0.00 0.00 (0.03) ---------------------------------------------------------------------- Operating earnings per share - diluted $0.88 $0.78 $0.74 $0.81 $0.84 $0.62 ====================================================================== Weighted average common shares outstanding - diluted 758.0 760.3 761.3 760.9 731.3 722.4 Book value per common share (actual shares outstanding) $28.28 $29.48 $27.93 $27.50 $27.13 $25.76 Book value per common share, excluding accumulated other comprehensive income (actual shares outstanding) $25.99 $24.93 $24.24 $23.54 $22.78 $22.45 Book value per common share - diluted $27.98 $29.29 $27.78 $27.47 $28.20 $24.97 Book value per common share, excluding accumulated other comprehensive income - diluted $25.72 $24.76 $24.11 $23.52 $23.68 $21.77 ----------------------------------------------------------------------
At or for the Three Months Ended ---------------------------------------------------------------------- June 30, March 31, December 31, September 30, June 30, March 31, 2004 2004 2003 2003 2003 2003 ---------------------------------------------------------------------- Shares outstanding, beginning of period 755.4 757.2 760.2 760.2 700.4 700.3 Treasury stock (5.4) (1.8) (3.0) 0.0 59.8 0.1 ---------------------------------------------------------------------- Shares outstanding, end of period 750.0 755.4 757.2 760.2 760.2 700.4 Weighted average common shares outstanding - basic 753.3 756.5 759.0 760.1 731.3 700.3 Dilutive effect of convertible securities 0.0 0.0 0.0 0.0 0.0 22.1 Dilutive effect of stock options 3.5 3.1 1.6 0.0 0.0 0.0 Dilutive effect of deferred stock compensation 1.2 0.7 0.7 0.8 0.0 0.0 ---------------------------------------------------------------------- Weighted average common shares outstanding - diluted 758.0 760.3 761.3 760.9 731.3 722.4 ====================================================================== Policyholder Trust Shares 335.0 347.2 362.5 372.7 382.4 386.4 SUPPLEMENTAL DATA Adjusted long-term debt to total capital excluding accumulated other comprehensive income (6) 21.9% 20.5% 21.3% 21.4% 22.0% 23.7% ----------------------------------------------------------------------
(1) Presentation of net income throughout the QFS differs from other public filings with respect to discontinued operations and scheduled settlement payments on derivatives not qualifying for hedge accounting treatment. Presentation of discontinued operations in other public filings is in accordance with the Statement of Financial Accounting Standards ("SFAS") No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets. Presentation of scheduled settlement payments on derivatives not qualifying for hedge accounting treatment in other public filings is in accordance with SFAS No. 133, Accounting for Derivative Instruments and Hedging Activities ("SFAS 133"). (2) Adjustments to net investment-related gains (losses) include amortization of deferred policy acquisition costs, adjustments to the policyholder dividend obligation, and amounts allocable to certain participating contracts. (3) Net investment-related gains (losses), net of income taxes, excludes scheduled settlement payments on derivative instruments not qualifying for hedge accounting treatment of $14 million, $9 million, $18 million, $22 million, $8 million and $5 million for the three months ended June 30, 2004, March 31, 2004, December 31, 2003, September 30, 2003, June 30, 2003 and March 31, 2003, respectively. (4) Net investment-related gains (losses), net of income taxes, from real estate and real estate joint ventures include discontinued operations of $85 million, $13 million, $205 million, $4 million, $0 million, and $57 million for the three months ended June 30, 2004, March 31, 2004, December 31, 2003, September 30, 2003, June 30, 2003, and March 31, 2003, respectively. (5) The cumulative effect of a change in accounting, net of income taxes, for the period ended March 31, 2004, is in accordance with AICPA Statement of Position 03-1, Accounting and Reporting by Insurance Enterprises for Certain Nontraditional Long-Duration Contracts and for Separate Accounts. For the period ended December 31, 2003, the cumulative effect of a change in accounting, net of income taxes, is in accordance with FASB Implementation Issue No. B36, Embedded Derivatives: Modified Coinsurance Arrangements and Debt Instruments That Incorporate Credit Risk Exposures That Are Unrelated or Only Partially Related to the Creditworthiness of the Obligor under Those Instruments. (6) Adjusted long-term debt at June 30, 2004, March 31, 2004, December 31, 2003, September 30, 2003, June 30, 2003, and March 31, 2003 consists of $5,503 million, $4,907 million, $4,909 million, $4,912 million, $4,917 million and $4,919 million of long-term debt, respectively, and $36 million, $36 million, $142 million, $36 million, $35 million, and $49 million of short-term debt, respectively. Total capital is defined as equity less accumulated other comprehensive income plus adjusted long-term and company obligated mandatorily redeemable capital securities. (7) Operating earnings for the three months ended June 30, 2004 includes a $32 million after-tax charge ($0.04 per diluted share) from a contribution to the MetLife Foundation made by Metropolitan Life Insurance Company and a $31 million after-tax benefit ($0.04 per diluted share) from a reduction of a previously established premium tax liability. (8) Operating earnings for the three months ended September 30, 2003 includes a $28 million after-tax benefit ($0.04 per diluted share) from a reduction of a previously established liability related to the Company's race-conscious underwriting settlement and a $36 million benefit ($0.05 per diluted share) from a revision of the estimate of income taxes for 2002. (9) Operating earnings for the three months ended June 30, 2003 includes a $64 million after-tax benefit ($0.09 per diluted share) from a reduction of a previously established liability related to the Company's race-conscious underwriting settlement, $62 million of after-tax earnings ($0.08 per diluted share) from the merger of the Company's Mexican operations and a reduction in policyholder liabilities resulting from a change in reserve methodology, and a $31 million after-tax charge ($0.05 per diluted share) related to previously deferred expenses. (10) Accounting standards require gains or losses resulting from the redemption of a subsidiary's redeemable preferred stock be excluded from the income statement. Rather, such gains or losses are recorded in capital in excess of par value on the balance sheet. However, such gains or losses are included in the calculation of net income per share. During the first quarter of 2003, net income per share includes a $21 million after-tax ($0.03 per diluted share) charge associated with the Company's redemption of MetLife Capital Trust I's mandatorily redeemable capital securities. 2 (METLIFE LOGO) - -------------------------------------------------------------------------------- METLIFE, INC. CONSOLIDATED BALANCE SHEETS
As of -------------------------------------------------------------------------- June 30, March 31, December 31, September 30, June 30, March 31, Unaudited (Dollars in millions) 2004 2004 2003 2003 2003 2003 - ------------------------------------------------------------------------------------------------------------------------------------ ASSETS Fixed maturities available-for-sale, at fair value $170,192 $174,100 $167,752 $159,940 $158,822 $144,341 Equity securities, at fair value 1,744 1,756 1,598 1,659 1,617 1,474 Mortgage loans on real estate 28,118 26,562 26,249 25,535 25,289 25,046 Real estate and real estate joint ventures 4,154 4,699 4,680 5,255 4,491 4,475 Policy loans 8,766 8,758 8,749 8,668 8,627 8,615 Other limited partnership interests 2,805 2,549 2,600 2,559 2,500 2,393 Short-term investments 2,089 1,998 1,826 2,718 2,640 3,188 Other invested assets 5,119 5,094 4,645 4,617 4,261 3,948 -------------------------------------------------------------------------- Investments 222,987 225,516 218,099 210,951 208,247 193,480 Cash and cash equivalents 4,459 3,146 3,733 5,372 5,714 4,938 Accrued investment income 2,330 2,337 2,186 2,265 2,241 2,179 Premiums and other receivables 7,566 7,554 7,047 7,107 7,486 6,768 Deferred policy acquisition costs 13,885 13,020 12,943 12,367 11,899 11,889 Goodwill and other intangible assets 638 638 643 654 652 745 Other 6,617 6,666 6,434 6,269 6,123 6,303 Separate account assets 79,747 78,336 75,756 69,998 67,460 60,620 -------------------------------------------------------------------------- $338,229 $337,213 $326,841 $314,983 $309,822 $286,922 ========================================================================== LIABILITIES AND EQUITY LIABILITIES - ----------- Future policy benefits $97,351 $99,262 $96,278 $95,095 $95,360 $92,744 Policyholder account balances 79,943 77,981 75,901 74,857 72,207 69,060 Short-term debt 3,218 3,068 3,642 2,935 3,443 2,441 Long-term debt 6,226 5,707 5,703 5,703 5,562 5,481 Shares subject to mandatory redemption 277 277 277 277 0 0 Payables under securities loaned transactions 28,132 28,045 27,083 24,666 23,028 19,566 Other 22,124 22,264 21,052 20,547 21,862 18,694 Separate account liabilities 79,747 78,336 75,756 69,998 67,460 60,620 -------------------------------------------------------------------------- 317,018 314,940 305,692 294,078 288,922 268,606 -------------------------------------------------------------------------- Company-obligated mandatorily redeemable capital securities 0 0 0 0 277 277 -------------------------------------------------------------------------- EQUITY - ------ Common stock, at par value 8 8 8 8 8 8 Capital in excess of par value 15,013 15,001 14,991 14,960 14,956 14,952 Retained earnings 5,558 4,716 4,193 3,667 3,093 3,169 Treasury stock (1,085) (896) (835) (739) (740) (2,402) Accumulated other comprehensive income 1,717 3,444 2,792 3,009 3,306 2,312 -------------------------------------------------------------------------- 21,211 22,273 21,149 20,905 20,623 18,039 -------------------------------------------------------------------------- $338,229 $337,213 $326,841 $314,983 $309,822 $286,922 ==========================================================================
3 (METLIFE LOGO) - -------------------------------------------------------------------------------- METLIFE, INC. CONSOLIDATED STATEMENTS OF OPERATING EARNINGS
For the Three Months Ended ----------------------------------------------------------------- June 30, March 31, December 31, September 30, June 30, March 31, Unaudited (Dollars in millions) 2004 2004 2003 2003 2003 2003 - ------------------------------------------------------------------------------------------------------------------------------------ REVENUES (1) Premiums $5,331 $5,367 $5,679 $5,079 $5,083 $4,832 Universal life and investment-type product policy fees 728 676 698 623 603 572 Investment income, net 3,165 3,006 3,070 2,914 2,889 2,899 Other revenues 356 353 354 335 355 298 --------------------------------------------------------------- 9,580 9,402 9,801 8,951 8,930 8,601 --------------------------------------------------------------- EXPENSES Policyholder benefits and dividends 5,923 5,933 6,244 5,651 5,472 5,456 Interest credited to policyholder account balances 751 743 760 767 761 747 Interest expense 109 99 109 104 112 116 Other expenses 1,826 1,757 1,897 1,585 1,732 1,637 --------------------------------------------------------------- 8,609 8,532 9,010 8,107 8,077 7,956 --------------------------------------------------------------- Operating earnings before provision for income taxes 971 870 791 844 853 645 Provision for income taxes 303 274 226 228 233 199 --------------------------------------------------------------- OPERATING EARNINGS $668(4) $596 $565 $616(5) $620(6) $446 =============================================================== NET INCOME RECONCILIATION - ------------------------- Operating earnings $668 $596 $565 $616 $620 $446 Net investment-related gains (losses) 157 123 139 (151) (54) (170) Minority interest - net investment-related gains (losses) (8) (8) (9) (2) (2) 4 Adjustments to net investment-related gains (losses) (2) 111 14 138 39 0 38 Net investment-related gains (losses) tax benefit (provision) (86) (44) (106) 72 16 44 --------------------------------------------------------------- Net investment-related gains (losses), net of income taxes 174 85 162 (42) (40) (84) Cumulative effect of a change in accounting, net of income taxes (3) 0 (158) (26) 0 0 0 --------------------------------------------------------------- Net income $842 $523 $701 $574 $580 $362 ===============================================================
For the Year-to-Date Period Ended ------------------------------------------------------ June 30, December 31, September 30, June 30, Unaudited (Dollars in millions) 2004 2003 2003 2003 - -------------------------------------------------------------------------------------------------------------------------- REVENUES (1) Premiums $10,698 $20,673 $14,994 $9,915 Universal life and investment-type product policy fees 1,404 2,496 1,798 1,175 Investment income, net 6,171 11,772 8,702 5,788 Other revenues 709 1,342 988 653 ---------------------------------------------------- 18,982 36,283 26,482 17,531 ---------------------------------------------------- EXPENSES Policyholder benefits and dividends 11,856 22,823 16,579 10,928 Interest credited to policyholder account balances 1,494 3,035 2,275 1,508 Interest expense 208 441 332 228 Other expenses 3,583 6,851 4,954 3,369 ---------------------------------------------------- 17,141 33,150 24,140 16,033 ---------------------------------------------------- Operating earnings before provision for income taxes 1,841 3,133 2,342 1,498 Provision for income taxes 577 886 660 432 ---------------------------------------------------- OPERATING EARNINGS $1,264 (4) $2,247 $1,682 (5) $1,066 (6) ==================================================== NET INCOME RECONCILIATION - ------------------------- Operating earnings $1,264 $2,247 $1,682 $1,066 Net investment-related gains (losses) 280 (236) (375) (224) Minority interest - net investment-related gains (losses) (16) (9) 0 2 Adjustments to net investment-related gains (losses) (2) 125 215 77 38 Net investment-related gains (losses) tax benefit (provision) (130) 26 132 60 ---------------------------------------------------- Net investment-related gains (losses), net of income taxes 259 (4) (166) (124) Cumulative effect of a change in accounting, net of income taxes (3) (158) (26) 0 0 ---------------------------------------------------- Net income $1,365 $2,217 $1,516 $942 ====================================================
(1) Certain amounts in prior periods presented throughout the QFS have been reclassified to conform with current period presentation. (2) Adjustments to net investment-related gains (losses) include amortization of deferred policy acquisition costs, adjustments to the policyholder dividend obligation, and amounts allocable to certain participating contracts. (3) The cumulative effect of a change in accounting, net of income taxes, for the period ended March 31, 2004, is in accordance with AICPA Statement of Position 03-1, Accounting and Reporting by Insurance Enterprises for Certain Nontraditional Long-Duration Contracts and for Separate Accounts. For the period ended December 31, 2003, the cumulative effect of a change in accounting, net of income taxes, is in accordance with FASB Implementation Issue No. B36, Embedded Derivatives: Modified Coinsurance Arrangements and Debt Instruments That Incorporate Credit Risk Exposures That Are Unrelated or Only Partially Related to the Creditworthiness of the Obligor under Those Instruments. (4) Operating earnings for the period ended June 30, 2004 includes a $32 million after-tax charge from a contribution to the MetLife Foundation made by Metropolitan Life Insurance Company and a $31 million after-tax benefit from a reduction of a previously established premium tax liability. (5) Operating earnings for the period ended September 30, 2003 includes a $28 million after-tax benefit from a reduction of a previously established liability related to the Company's race-conscious underwriting settlement. (6) Operating earnings for the period ended June 30, 2003 includes a $64 million after-tax benefit from a reduction of a previously established liability related to the Company's race-conscious underwriting settlement, $62 million of after-tax earnings from the merger of the Company's Mexican operations and a reduction in policyholder liabilities resulting from a change in reserve methodology, and a $31 million after-tax charge related to previously deferred expenses. 4 (METLIFE LOGO) - -------------------------------------------------------------------------------- METLIFE, INC. TOTAL COMPANY HEADCOUNT
As of ------------------------------------------------------------------------------------ June 30, March 31, December 31, September 30, June 30, March 31, 2004 2004 2003 2003 2003 2003 ------------------------------------------------------------------------------------ TOTAL COMPANY HEADCOUNT (1) DOMESTIC SALES Individual 11,045 10,994 11,196 11,590 11,954 12,035 Institutional 795 787 790 797 804 730 Auto & Home 88 88 79 77 78 83 Asset Management 77 66 69 68 69 72 ------------------------------------------------------------------------------------ Total domestic sales 12,005 11,935 12,134 12,532 12,905 12,920 OTHER THAN SALES Individual 2,717 2,693 2,730 2,799 2,808 2,865 Institutional 6,151 6,024 5,928 5,834 5,914 5,925 Auto & Home 3,362 3,380 3,388 3,437 3,431 3,459 Reinsurance 706 682 656 642 637 630 Asset Management 861 870 960 989 996 992 Operations 3,770 3,783 3,824 3,820 3,780 3,821 Technology 3,530 3,523 3,418 3,410 3,439 3,487 Corporate 3,295 3,282 3,180 3,196 3,169 3,192 ------------------------------------------------------------------------------------ Total domestic other than sales 24,392 24,237 24,084 24,127 24,174 24,371 ------------------------------------------------------------------------------------ TOTAL DOMESTIC HEADCOUNT 36,397 36,172 36,218 36,659 37,079 37,291 ------------------------------------------------------------------------------------ INTERNATIONAL SALES Professional sales 1,810 1,602 1,602 1,240 1,240 1,146 Other 10,521 9,707 8,808 8,048 7,932 7,894 Other than sales 2,896 2,784 2,857 2,840 2,807 2,777 ------------------------------------------------------------------------------------ TOTAL INTERNATIONAL HEADCOUNT 15,227 14,093 13,267 12,128 11,979 11,817 ------------------------------------------------------------------------------------ TOTAL COMPANY HEADCOUNT 51,624 50,265 49,485 48,787 49,058 49,108 ====================================================================================
(1) Certain amounts in prior periods presented throughout the QFS have been reclassified to conform with current period presentation. 5 (METLIFE LOGO) - -------------------------------------------------------------------------------- METLIFE, INC. CONSOLIDATING BALANCE SHEET AT JUNE 30, 2004
Insurance Reinsurance Asset Corporate, Other Unaudited (Dollars in millions) Consolidated Operations Operations Management & Eliminations - ------------------------------------------------------------------------------------------------------------------------------------ ASSETS Total investments $222,987 $196,541 $9,532 $121 $16,793 Deferred policy acquisition costs 13,885 11,527 2,357 0 1 Goodwill and other intangible assets 638 516 99 18 5 Other 20,972 16,033 1,233 124 3,582 Separate account assets 79,747 79,747 13 0 (13) ------------------------------------------------------------------------------------- $338,229 $304,364 $13,234 $263 $20,368 ===================================================================================== LIABILITIES AND EQUITY LIABILITIES - ----------- Future policy benefits $97,351 $94,776 $3,994 $0 ($1,419) Policyholder account balances 79,943 75,713 4,787 0 (557) Debt 9,444 2,111 401 0 6,932 Shares subject to mandatory redemption 277 0 158 0 119 Payables under securities loaned transactions 28,132 21,695 0 0 6,437 Other 22,124 13,546 3,113 66 5,399 Separate account liabilities 79,747 79,745 13 0 (11) ------------------------------------------------------------------------------------- 317,018 287,586 12,466 66 16,900 EQUITY - ------ Common stock, at par value 8 0 0 0 8 Allocated equity (1) 20,571 15,203 703 192 4,473 Treasury stock (1,085) 0 0 0 (1,085) Accumulated other comprehensive income 1,717 1,575 65 5 72 ------------------------------------------------------------------------------------- 21,211 16,778 768 197 3,468 ------------------------------------------------------------------------------------- $338,229 $304,364 $13,234 $263 $20,368 =====================================================================================
(1) Allocated equity includes additional paid-in capital and retained earnings. 6 (METLIFE LOGO) - -------------------------------------------------------------------------------- METLIFE, INC. CONSOLIDATING STATEMENT OF OPERATING EARNINGS FOR THE THREE MONTHS ENDED JUNE 30, 2004
Insurance Reinsurance Asset Corporate, Other Unaudited (Dollars in millions) Consolidated Operations Operations Management & Eliminations - ------------------------------------------------------------------------------------------------------------------------------------ REVENUES Premiums $5,331 $4,528 $807 $0 ($4) Universal life and investment-type product policy fees 728 728 0 0 0 Investment income, net 3,165 2,866 136 18 145 Other revenues 356 275 15 73 (7) ------------------------------------------------------------------------ 9,580 8,397 958 91 134 ------------------------------------------------------------------------ EXPENSES Policyholder benefits and dividends 5,923 5,270 651 0 2 Interest credited to policyholder account balances 751 699 52 0 0 Capitalization of deferred policy acquisition costs (852) (648) (204) 0 0 Amortization of deferred policy acquisition costs 457 352 105 0 0 Other expenses 2,330 1,777 318 65 170 ------------------------------------------------------------------------ 8,609 7,450 922 65 172 ------------------------------------------------------------------------ Operating earnings before provision (benefit) for income taxes 971 947 36 26 (38) Provision for income taxes 303 308 13 10 (28) ------------------------------------------------------------------------ OPERATING EARNINGS (LOSS) $668 $639 $23 $16 ($10) ======================================================================== NET INCOME RECONCILIATION - ------------------------------ Operating earnings (loss) $668 $639 $23 $16 ($10) Net investment-related gains (losses) 157 42 32 0 83 Minority interest - net investment-related gains (losses) (8) 0 (8) 0 0 Adjustments to net investment-related gains (losses) (1) 111 124 (13) 0 0 Net investment-related gains (losses) tax benefit (provision) (86) (51) (4) 0 (31) ------------------------------------------------------------------------ Net investment-related gains (losses), net of income taxes 174 115 7 0 52 Cumulative effect of a change in accounting, net of income taxes 0 0 0 0 0 ------------------------------------------------------------------------ Net income $842 $754 $30 $16 $42 ========================================================================
(1) Adjustments to net investment-related gains (losses) include amortization of deferred policy acquisition costs, adjustments to the policyholder dividend obligation, and amounts allocable to certain participating contracts. 7 (METLIFE LOGO) - -------------------------------------------------------------------------------- METLIFE, INC. CONSOLIDATING STATEMENT OF OPERATING EARNINGS FOR THE THREE MONTHS ENDED JUNE 30, 2003
Insurance Reinsurance Asset Corporate, Other Unaudited (Dollars in millions) Consolidated Operations Operations Management & Eliminations - ------------------------------------------------------------------------------------------------------------------------------------ REVENUES Premiums $5,083 $4,500 $588 $0 ($5) Universal life and investment-type product policy fees 603 603 0 0 0 Investment income, net 2,889 2,710 121 16 42 Other revenues 355 291 12 37 15 ------------------------------------------------------------------------ 8,930 8,104 721 53 52 ------------------------------------------------------------------------ EXPENSES Policyholder benefits and dividends 5,472 5,006 466 0 0 Interest credited to policyholder account balances 761 716 45 0 0 Capitalization of deferred policy acquisition costs (642) (502) (140) 0 0 Amortization of deferred policy acquisition costs 476 415 61 0 0 Other expenses 2,010 1,684 259 44 23 ------------------------------------------------------------------------ 8,077 7,319 691 44 23 ------------------------------------------------------------------------ Operating earnings before provision (benefit) for income taxes 853 785 30 9 29 Provision for income taxes 233 230 11 4 (12) ------------------------------------------------------------------------ OPERATING EARNINGS $620 $555 $19 $5 $41 ======================================================================== NET INCOME RECONCILIATION - ------------------------------ Operating earnings $620 $555 $19 $5 $41 Net investment-related gains (losses) (54) (23) 5 0 (36) Minority interest - net investment-related gains (losses) (2) 0 (2) 0 0 Adjustments to net investment-related gains (losses) (1) 0 0 0 0 0 Net investment-related gains (losses) tax benefit (provision) 16 5 0 0 11 ------------------------------------------------------------------------ Net investment-related gains (losses), net of income taxes (40) (18) 3 0 (25) ------------------------------------------------------------------------ Net income $580 $537 $22 $5 $16 ========================================================================
(1) Adjustments to net investment-related gains (losses) include amortization of deferred policy acquisition costs and adjustments to the policyholder dividend obligation. 8 (METLIFE LOGO) - -------------------------------------------------------------------------------- METLIFE, INC. CONSOLIDATING STATEMENT OF OPERATING EARNINGS FOR THE SIX MONTHS ENDED JUNE 30, 2004
Insurance Reinsurance Asset Corporate, Other Unaudited (Dollars in millions) Consolidated Operations Operations Management & Eliminations - ------------------------------------------------------------------------------------------------------------------------------------ REVENUES Premiums $10,698 $9,080 $1,623 $0 ($5) Universal life and investment-type product policy fees 1,404 1,404 0 0 0 Investment income, net 6,171 5,657 266 36 212 Other revenues 709 569 27 113 0 ------------------------------------------------------------------------- 18,982 16,710 1,916 149 207 ------------------------------------------------------------------------- EXPENSES Policyholder benefits and dividends 11,856 10,542 1,310 0 4 Interest credited to policyholder account balances 1,494 1,391 103 0 0 Capitalization of deferred policy acquisition costs (1,617) (1,182) (435) 0 0 Amortization of deferred policy acquisition costs 917 684 233 0 0 Other expenses 4,491 3,449 642 114 286 ------------------------------------------------------------------------- 17,141 14,884 1,853 114 290 ------------------------------------------------------------------------- Operating earnings before provision (benefit) for income taxes 1,841 1,826 63 35 (83) Provision for income taxes 577 596 22 14 (55) ------------------------------------------------------------------------- OPERATING EARNINGS (LOSS) $1,264 $1,230 $41 $21 ($28) ========================================================================= NET INCOME RECONCILIATION - ----------------------------- Operating earnings (loss) $1,264 $1,230 $41 $21 ($28) Net investment-related gains (losses) 280 140 53 0 87 Minority interest - net investment-related gains (losses) (16) 0 (16) 0 0 Adjustments to net investment-related gains (losses) (1) 125 142 (17) 0 0 Net investment-related gains (losses) tax benefit (provision) (130) (90) (7) 0 (33) ------------------------------------------------------------------------- Net investment-related gains (losses), net of income taxes 259 192 13 0 54 Cumulative effect of a change in accounting, net of income taxes (2) (158) (160) 3 0 (1) ------------------------------------------------------------------------- Net income $1,365 $1,262 $57 $21 $25 =========================================================================
(1) Adjustments to net investment-related gains (losses) include amortization of deferred policy acquisition costs, adjustments to the policyholder dividend obligation, and amounts allocable to certain participating contracts. (2) The cumulative effect of a change in accounting, net of income taxes, for the period ended June 30, 2004, is in accordance with AICPA Statement of Position 03-1, Accounting and Reporting by Insurance Enterprises for Certain Nontraditional Long-Duration Contracts and for Separate Accounts. 9 (METLIFE LOGO) - -------------------------------------------------------------------------------- METLIFE, INC. CONSOLIDATING STATEMENT OF OPERATING EARNINGS FOR THE SIX MONTHS ENDED JUNE 30, 2003
Insurance Reinsurance Asset Corporate, Other Unaudited (Dollars in millions) Consolidated Operations Operations Management & Eliminations - ------------------------------------------------------------------------------------------------------------------------------------ REVENUES Premiums $9,915 $8,784 $1,140 $0 ($9) Universal life and investment-type product policy fees 1,175 1,175 0 0 0 Investment income, net 5,788 5,414 231 32 111 Other revenues 653 536 24 66 27 ----------------------------------------------------------------------- 17,531 15,909 1,395 98 129 ----------------------------------------------------------------------- EXPENSES Policyholder benefits and dividends 10,928 10,027 899 0 2 Interest credited to policyholder account balances 1,508 1,420 88 0 0 Capitalization of deferred policy acquisition costs (1,269) (978) (291) 0 0 Amortization of deferred policy acquisition costs 904 759 145 0 0 Other expenses 3,962 3,240 494 87 141 ----------------------------------------------------------------------- 16,033 14,468 1,335 87 143 ----------------------------------------------------------------------- Operating earnings before provision (benefit) for income taxes 1,498 1,441 60 11 (14) Provision for income taxes 432 449 21 5 (43) ----------------------------------------------------------------------- OPERATING EARNINGS $1,066 $992 $39 $6 $29 ======================================================================= NET INCOME RECONCILIATION - ------------------------------ Operating earnings $1,066 $992 $39 $6 $29 Net investment-related gains (losses) (224) (164) 1 8 (69) Minority interest - net investment-related gains (losses) 2 0 2 0 0 Adjustments to net investment-related gains (losses) (1) 38 38 0 0 0 Net investment-related gains (losses) tax benefit (provision) 60 42 0 (3) 21 ----------------------------------------------------------------------- Net investment-related gains (losses), net of income taxes (124) (84) 3 5 (48) ----------------------------------------------------------------------- Net income (loss) $942 $908 $42 $11 ($19) =======================================================================
(1) Adjustments to net investment-related gains (losses) include amortization of deferred policy acquisition costs and adjustments to the policyholder dividend obligation. 10 (METLIFE LOGO) - -------------------------------------------------------------------------------- INSURANCE OPERATIONS CONSOLIDATED STATEMENTS OF OPERATING EARNINGS
For the Three Months Ended ------------------------------------------------------------------------- June 30, March 31, December 31, September 30, June 30, March 31, Unaudited (Dollars in millions) 2004 2004 2003 2003 2003 2003 - ---------------------------------------------------------------------------------------------------------------------- REVENUES (1) Premiums $4,528 $4,552 $4,735 $4,504 $4,500 $4,284 Universal life and investment-type product policy fees 728 676 698 623 603 572 Investment income, net 2,866 2,791 2,856 2,711 2,710 2,704 Other revenues 275 294 305 270 291 245 ------------------------------------------------------------------------- 8,397 8,313 8,594 8,108 8,104 7,805 ------------------------------------------------------------------------- EXPENSES Policyholder benefits and dividends 5,270 5,272 5,456 5,179 5,006 5,021 Interest credited to policyholder account balances 699 692 711 720 716 704 Capitalization of deferred policy acquisition costs (648) (534) (531) (517) (502) (476) Amortization of deferred policy acquisition costs 352 332 349 339 415 344 Other expenses 1,777 1,672 1,813 1,605 1,684 1,556 ------------------------------------------------------------------------- 7,450 7,434 7,798 7,326 7,319 7,149 ------------------------------------------------------------------------- Operating earnings before provision for income taxes 947 879 796 782 785 656 Provision for income taxes 308 288 259 268 230 219 ------------------------------------------------------------------------- OPERATING EARNINGS $639(4) $591 $537 $514 $555(5) $437 ========================================================================= NET INCOME RECONCILIATION - ------------------------- Operating earnings $639 $591 $537 $514 $555 $437 Net investment -related gains (losses) 42 98 (305) (126) (23) (141) Minority interest - net investment- related gains (losses) 0 0 0 0 0 0 Adjustments to net investment-related gains (losses) (2) 124 18 186 39 0 38 Net investment-related gains (losses) tax benefit (provision) (51) (39) 39 49 5 37 ------------------------------------------------------------------------- Net investment-related gains (losses), net of income taxes 115 77 (80) (38) (18) (66) Cumulative effect of a change in accounting, net of income taxes(3) 0 (160) (26) 0 0 0 ------------------------------------------------------------------------- Net income $754 $508 $431 $476 $537 $371 =========================================================================
For the Year-to-Date Period Ended ------------------------------------------------- June 30, December 31, September 30, June 30, Unaudited (Dollars in millions) 2004 2003 2003 2003 - --------------------------------------------- ------------------------------------------------- REVENUES (1) Premiums $9,080 $18,023 $13,288 $8,784 Universal life and investment-type product policy fees 1,404 2,496 1,798 1,175 Investment income, net 5,657 10,981 8,125 5,414 Other revenues 569 1,111 806 536 ------------------------------------------------- 16,710 32,611 24,017 15,909 ------------------------------------------------- EXPENSES Policyholder benefits and dividends 10,542 20,662 15,206 10,027 Interest credited to policyholder account balances 1,391 2,851 2,140 1,420 Capitalization of deferred policy acquisition costs (1,182) (2,026) (1,495) (978) Amortization of deferred policy acquisition costs 684 1,447 1,098 759 Other expenses 3,449 6,658 4,845 3,240 ------------------------------------------------- 14,884 29,592 21,794 14,468 ------------------------------------------------- Operating earnings before provision for income taxes 1,826 3,019 2,223 1,441 Provision for income taxes 596 976 717 449 ------------------------------------------------- OPERATING EARNINGS $1,230(4) $2,043 $1,506 $992(5) ================================================= NET INCOME RECONCILIATION - ------------------------- Operating earnings $1,230 $2,043 $1,506 $992 Net investment-related gains (losses) 140 (595) (290) (164) Minority interest - net investment- related gains (losses) 0 0 0 0 Adjustments to net investment-related gains (losses) (2) 142 263 77 38 Net investment-related gains (losses) tax benefit (provision) (90) 130 91 42 ------------------------------------------------- Net investment-related gains (losses), net of income taxes 192 (202) (122) (84) Cumulative effect of a change in accounting, net of income taxes (3) (160) (26) 0 0 ------------------------------------------------- Net income $1,262 $1,815 $1,384 $908 =================================================
(1) Certain amounts in prior periods presented throughout the QFS have been reclassified to conform with current period presentation. (2) Adjustments to net investment-related gains (losses) include amortization of deferred policy acquisition costs, adjustments to the policyholder dividend obligation, and amounts allocable to certain participating contracts. (3) The cumulative effect of a change in accounting, net of income taxes, for the period ended March 31, 2004, is in accordance with AICPA Statement of Position 03-1, Accounting and Reporting by Insurance Enterprises for Certain Nontraditional Long-Duration Contracts and for Separate Accounts. For the period ended December 31, 2003, the cumulative effect of a change in accounting, net of income taxes, is in accordance with FASB Implementation Issue No. B36, Embedded Derivatives: Modified Coinsurance Arrangements and Debt Instruments That Incorporate Credit Risk Exposures That Are Unrelated or Only Partially Related to the Creditworthiness of the Obligor under Those Instruments. (4) Operating earnings for the period ended June 30, 2004 includes a $31 million after-tax benefit from a reduction of a previously established premium tax liability. (5) Operating earnings for the period ended June 30, 2003 includes $62 million of after-tax earnings from the merger of the Company's Mexican operations and a reduction in policyholder liabilities resulting from a change in reserve methodology, and a $31 million after-tax charge related to previously deferred expenses. 11 (METLIFE LOGO) - -------------------------------------------------------------------------------- INSURANCE OPERATIONS CONSOLIDATING STATEMENT OF OPERATING EARNINGS FOR THE THREE MONTHS ENDED JUNE 30, 2004
Insurance Institutional Individual Auto & International Unaudited (Dollars in millions) Operations Operations Operations Home Operations - ------------------------------------------------------------------------------------------------------------------------------------ REVENUES Premiums $4,528 $2,382 $1,007 $734 $405 Universal life and investment-type product policy fees 728 187 455 0 86 Investment income, net 2,866 1,136 1,549 44 137 Other revenues 275 155 106 6 8 ------------------------------------------------------------ 8,397 3,860 3,117 784 636 ------------------------------------------------------------ EXPENSES Policyholder benefits and dividends 5,270 2,699 1,663 495 413 Interest credited to policyholder account balances 699 240 427 0 32 Capitalization of deferred policy acquisition costs (648) (141) (298) (116) (93) Amortization of deferred policy acquisition costs 352 32 172 112 36 Other expenses 1,777 549 837 197 194 ------------------------------------------------------------ 7,450 3,379 2,801 688 582 ------------------------------------------------------------ Operating earnings before provision for income taxes 947 481 316 96 54 Provision for income taxes 308 164 106 25 13 ------------------------------------------------------------ OPERATING EARNINGS $639 $317 $210 $71 $41 ============================================================ NET INCOME RECONCILIATION - ------------------------- Operating earnings $639 $317 $210 $71 $41 Net investment-related gains (losses) 42 18 31 (5) (2) Adjustments to net investment-related gains (losses) (1) 124 78 (3) 0 49 Net investment-related gains (losses) tax benefit (provision) (51) (36) 1 2 (18) ------------------------------------------------------------ Net investment-related gains (losses), net of income taxes 115 60 29 (3) 29 ------------------------------------------------------------ Net income $754 $377 $239 $68 $70 ============================================================
(1) Adjustments to net investment-related gains (losses) include amortization of deferred policy acquisition costs, adjustments to the policyholder dividend obligation, and amounts allocable to certain participating contracts. 12 (METLIFE LOGO) - -------------------------------------------------------------------------------- INSURANCE OPERATIONS CONSOLIDATING STATEMENT OF OPERATING EARNINGS FOR THE THREE MONTHS ENDED JUNE 30, 2003
Insurance Institutional Individual Auto & International Unaudited (Dollars in millions) Operations Operations Operations Home Operations - ------------------------------------------------------------------------------------------------------------------------------------ REVENUES Premiums $4,500 $2,334 $1,055 $721 $390 Universal life and investment-type product policy fees 603 154 378 0 71 Investment income, net 2,710 1,009 1,529 41 131 Other revenues 291 152 109 4 26 ----------------------------------------------------------- 8,104 3,649 3,071 766 618 ----------------------------------------------------------- EXPENSES Policyholder benefits and dividends 5,006 2,560 1,625 527 294 Interest credited to policyholder account balances 716 228 452 0 36 Capitalization of deferred policy acquisition costs (502) (53) (280) (110) (59) Amortization of deferred policy acquisition costs 415 24 207 107 77 Other expenses 1,684 485 833 189 177 ----------------------------------------------------------- 7,319 3,244 2,837 713 525 ----------------------------------------------------------- Operating earnings before provision (benefit) for income taxes 785 405 234 53 93 Provision (benefit) for income taxes 230 145 83 11 (9) ----------------------------------------------------------- OPERATING EARNINGS $555 $260 $151 $42 $102 =========================================================== NET INCOME RECONCILIATION - ------------------------- Operating earnings $555 $260 $151 $42 $102 Net investment-related gains (losses) (23) (9) (11) (2) (1) Adjustments to net investment-related gains (losses) (1) 0 0 0 0 0 Net investment-related gains (losses) tax benefit (provision) 5 3 4 1 (3) ----------------------------------------------------------- Net investment-related gains (losses), net of income taxes (18) (6) (7) (1) (4) ----------------------------------------------------------- Net income $537 $254 $144 $41 $98 ===========================================================
(1) Adjustments to net investment-related gains (losses) include amortization of deferred policy acquisition costs and adjustments to the policyholder dividend obligation. 13 (METLIFE LOGO) - -------------------------------------------------------------------------------- INSURANCE OPERATIONS CONSOLIDATING STATEMENT OF OPERATING EARNINGS FOR THE SIX MONTHS ENDED JUNE 30, 2004
Insurance Institutional Individual Auto & International Unaudited (Dollars in millions) Operations Operations Operations Home Operations - ------------------------------------------------------------------------------------------------------------------------------------ REVENUES Premiums $9,080 $4,807 $1,985 $1,471 $817 Universal life and investment-type product policy fees 1,404 358 877 0 169 Investment income, net 5,657 2,237 3,070 90 260 Other revenues 569 319 223 15 12 ----------------------------------------------------------- 16,710 7,721 6,155 1,576 1,258 ----------------------------------------------------------- EXPENSES Policyholder benefits and dividends 10,542 5,398 3,312 1,031 801 Interest credited to policyholder account balances 1,391 472 850 0 69 Capitalization of deferred policy acquisition costs (1,182) (203) (591) (224) (164) Amortization of deferred policy acquisition costs 684 57 334 226 67 Other expenses 3,449 1,037 1,657 389 366 ----------------------------------------------------------- 14,884 6,761 5,562 1,422 1,139 ----------------------------------------------------------- Operating earnings before provision for income taxes 1,826 960 593 154 119 Provision for income taxes 596 326 199 37 34 ----------------------------------------------------------- OPERATING EARNINGS $1,230 $634 $394 $117 $85 =========================================================== NET INCOME RECONCILIATION - ------------------------- Operating earnings $1,230 $634 $394 $117 $85 Net investment-related gains (losses) 140 118 3 (5) 24 Minority interest - net investment-related gains (losses) 0 0 0 0 0 Adjustments to net investment-related gains (losses)(1) 142 61 29 0 52 Net investment-related gains (losses) tax benefit (provision) (90) (66) (1) 2 (25) ----------------------------------------------------------- Net investment-related gains (losses), net of income taxes 192 113 31 (3) 51 Cumulative effect of a change in accounting, net of income taxes(2) (160) (60) (70) 0 (30) ----------------------------------------------------------- Net income $1,262 $687 $355 $114 $106 ===========================================================
(1) Adjustments to net investment-related gains (losses) include amortization of deferred policy acquisition costs, adjustments to the policyholder dividend obligation, and amounts allocable to certain participating contracts. (2) The cumulative effect of a change in accounting, net of income taxes, for the period ended June 30, 2004, is in accordance with AICPA Statement of Position 03-1, Accounting and Reporting by Insurance Enterprises for Certain Nontraditional Long-Duration Contracts and for Separate Accounts. 14 (METLIFE LOGO) - -------------------------------------------------------------------------------- INSURANCE OPERATIONS CONSOLIDATING STATEMENT OF OPERATING EARNINGS FOR THE SIX MONTHS ENDED JUNE 30, 2003
Insurance Institutional Individual Auto & International Unaudited (Dollars in millions) Operations Operations Operations Home Operations - ------------------------------------------------------------------------------------------------------------------------------------ REVENUES Premiums $8,784 $4,470 $2,096 $1,433 $785 Universal life and investment-type product policy fees 1,175 315 738 0 122 Investment income, net 5,414 1,988 3,092 80 254 Other revenues 536 294 195 13 34 ------------------------------------------------------------- 15,909 7,067 6,121 1,526 1,195 ------------------------------------------------------------- EXPENSES Policyholder benefits and dividends 10,027 4,978 3,317 1,061 671 Interest credited to policyholder account balances 1,420 452 895 0 73 Capitalization of deferred policy acquisition costs (978) (91) (540) (222) (125) Amortization of deferred policy acquisition costs 759 44 382 222 111 Other expenses 3,240 939 1,586 385 330 ------------------------------------------------------------- 14,468 6,322 5,640 1,446 1,060 ------------------------------------------------------------- Operating earnings before provision (benefit) for income taxes 1,441 745 481 80 135 Provision (benefit) for income taxes 449 266 170 8 5 ------------------------------------------------------------- OPERATING EARNINGS $992 $479 $311 $72 $130 ============================================================= NET INCOME RECONCILIATION - ------------------------- Operating earnings $992 $479 $311 $72 $130 Net investment-related gains (losses) (164) (79) (78) (6) (1) Adjustments to net investment-related gains (losses) (1) 38 0 38 0 0 Net investment-related gains (losses) tax benefit (provision) 42 29 14 2 (3) ------------------------------------------------------------- Net investment-related gains (losses), net of income taxes (84) (50) (26) (4) (4) ------------------------------------------------------------- Net income $908 $429 $285 $68 $126 =============================================================
(1) Adjustments to net investment-related gains (losses) include amortization of deferred policy acquisition costs and adjustments to the policyholder dividend obligation. 15 (METLIFE LOGO) - -------------------------------------------------------------------------------- SUMMARY OF SEGMENT OPERATING EARNINGS (1)
For the Three Months Ended ------------------------------------------------------------------------ June 30, March 31, December 31, September 30, June 30, March 31, Unaudited (Dollars in millions) 2004 2004 2003 2003 2003 2003 - ----------------------------------------------------------------------------------------------------------- INSTITUTIONAL OPERATIONS $317 $317 $277 $264 $260 $219 INDIVIDUAL OPERATIONS 210 184 173 171 151 160 AUTO & HOME OPERATIONS 71 46 53 42 42 30 INTERNATIONAL OPERATIONS 41 44 34 37 102 28 REINSURANCE OPERATIONS 23 18 20 18 19 20 ASSET MANAGEMENT OPERATIONS 16 5 6 4 5 1 CORPORATE, OTHER & ELIMINATIONS (10) (18) 2 80 41 (12) --------------------------------------------------------------------- CONSOLIDATED $668(2) $596 $565 $616(3) $620(4) $446 =====================================================================
For the Year-to-Date Period Ended -------------------------------------------------- June 30, December 31, September 30, June 30, Unaudited (Dollars in millions) 2004 2003 2003 2003 - ---------------------------------------------------------------------------------------- INSTITUTIONAL OPERATIONS $634 $1,020 $743 $479 INDIVIDUAL OPERATIONS 394 655 482 311 AUTO & HOME OPERATIONS 117 167 114 72 INTERNATIONAL OPERATIONS 85 201 167 130 REINSURANCE OPERATIONS 41 77 57 39 ASSET MANAGEMENT OPERATIONS 21 16 10 6 CORPORATE, OTHER & ELIMINATIONS (28) 111 109 29 -------------------------------------------------- CONSOLIDATED $1,264(2) $2,247 $1,682(3) $1,066(4) ==================================================
(1) A reconciliation of operating earnings to net income for each segment appears in this QFS as follows: (i) Institutional Operations, page 17; (ii) Individual Operations, page 25; (iii) Auto & Home Operations, page 35; (iv) International Operations, page 40; (v) Reinsurance Operations, page 41; and (vi) Asset Management Operations, page 43, and for Corporate, Other and Eliminations, on page 45. A reconciliation of operating earnings to net income for MetLife, Inc., Consolidated, appears on Page 4. (2) Operating earnings for the period ended June 30, 2004 includes a $32 million after-tax charge from a contribution to MetLife Foundation made by Metropolitan Life Insurance Company and a $31 million after-tax benefit from a reduction of a previously established premium tax liability. (3) Operating earnings for the period ended September 30, 2003 includes a $28 million after-tax benefit from a reduction of a previously established liability related to the Company's race-conscious underwriting settlement and a $36 million benefit from a revision of the estimate of income taxes for 2002. (4) Operating earnings for the period ended June 30, 2003 includes a $64 million after-tax benefit from a reduction of a previously established liability related to the Company's race-conscious underwriting settlement, $62 million of after-tax earnings from the merger of the Company's Mexican operations and a reduction in policyholder liabilities resulting from a change in reserve methodology, and a $31 million after-tax charge related to previously deferred expenses. 16 (METLIFE LOGO) - ------------------------------------------------------------------------------- INSTITUTIONAL OPERATIONS STATEMENTS OF OPERATING EARNINGS - TOTAL UNAUDITED (DOLLARS IN MILLIONS)
For the Three Months Ended ---------------------------------------------------------------------- June 30, March 31, December 31, September 30, June 30, March 31, Institutional Operations 2004 2004 2003 2003 2003 2003 - --------------------------------------------------------------------------------------------------------------------------------- REVENUES (1) Premiums $2,382 $2,425 $2,363 $2,260 $2,334 $2,136 Universal life and investment-type product policy fees 187 171 153 167 154 161 Investment income, net 1,136 1,101 1,103 1,003 1,009 979 Other revenues 155 164 154 144 152 142 ---------------------------------------------------------------------- 3,860 3,861 3,773 3,574 3,649 3,418 ---------------------------------------------------------------------- EXPENSES Policyholder benefits and dividends 2,699 2,699 2,629 2,523 2,560 2,418 Interest credited to policyholder account balances 240 232 229 234 228 224 Other expenses 440 451 485 407 456 436 ---------------------------------------------------------------------- 3,379 3,382 3,343 3,164 3,244 3,078 ---------------------------------------------------------------------- Operating earnings before provision for income taxes 481 479 430 410 405 340 Provision for income taxes 164 162 153 146 145 121 ---------------------------------------------------------------------- OPERATING EARNINGS $317(4) $317 $277 $264 $260 $219 ====================================================================== NET INCOME RECONCILIATION - ------------------------- Operating earnings $317 $317 $277 $264 $260 $219 Net investment-related gains (losses) 18 100 (164) (59) (9) (70) Minority interest - net investment-related gains (losses) 0 0 0 0 0 0 Adjustments to net investment-related gains (losses) (2) 78 (17) 89 0 0 0 Net investment-related gains (losses) tax benefit (provision) (36) (30) 16 23 3 26 ---------------------------------------------------------------------- Net investment-related gains (losses), net of income taxes 60 53 (59) (36) (6) (44) Cumulative effect of a change in accounting, net of income taxes (3) 0 (60) (26) 0 0 0 ---------------------------------------------------------------------- Net income $377 $310 $192 $228 $254 $175 ====================================================================== For the Year-to-Date Period Ended -------------------------------------------------------------------- June 30, December 31, September 30, June 30, Institutional Operations 2004 2003 2003 2003 - ------------------------------------------------------------------------------------------------------------------------------ REVENUES (1) Premiums $4,807 $9,093 $6,730 $4,470 Universal life and investment-type product policy fees 358 635 482 315 Investment income, net 2,237 4,094 2,991 1,988 Other revenues 319 592 438 294 -------------------------------------------------------------------- 7,721 14,414 10,641 7,067 -------------------------------------------------------------------- EXPENSES Policyholder benefits and dividends 5,398 10,130 7,501 4,978 Interest credited to policyholder account balances 472 915 686 452 Other expenses 891 1,784 1,299 892 -------------------------------------------------------------------- 6,761 12,829 9,486 6,322 -------------------------------------------------------------------- Operating earnings before provision for income taxes 960 1,585 1,155 745 Provision for income taxes 326 565 412 266 -------------------------------------------------------------------- OPERATING EARNINGS $634(4) $1,020 $743 $479 ==================================================================== NET INCOME RECONCILIATION - ------------------------- Operating earnings $634 $1,020 $743 $479 Net investment-related gains (losses) 118 (302) (138) (79) Minority interest - net investment-related gains (losses) 0 0 0 0 Adjustments to net investment-related gains (losses) (2) 61 89 0 0 Net investment-related gains (losses) tax benefit (provision) (66) 68 52 29 -------------------------------------------------------------------- Net investment-related gains (losses), net of income taxes 113 (145) (86) (50) Cumulative effect of a change in accounting, net of income taxes (3) (60) (26) 0 0 -------------------------------------------------------------------- Net income $687 $849 $657 $429 ====================================================================
(1) Certain amounts in prior periods presented throughout the QFS have been reclassified to conform with current period presentation. (2) Adjustments to net investment-related gains (losses) include amortization of deferred policy acquisition costs and amounts allocable to certain participating contracts. (3) The cumulative effect of a change in accounting, net of income taxes, for the period ended March 31, 2004, is in accordance with AICPA Statement of Position 03-1, Accounting and Reporting by Insurance Enterprises for Certain Nontraditional Long-Duration Contracts and for Separate Accounts. For the period ended December 31, 2003, the cumulative effect of a change in accounting, net of income taxes, is in accordance with FASB Implementation Issue No. B36, Embedded Derivatives: Modified Coinsurance Arrangements and Debt Instruments That Incorporate Credit Risk Exposures That Are Unrelated or Only Partially Related to the Creditworthiness of the Obligor under Those Instruments. (4) Operating earnings for the period ended June 30, 2004 includes a $31 million after-tax benefit from a reduction of a previously established premium tax liability. 17 (METLIFE LOGO) - ------------------------------------------------------------------------------- INSTITUTIONAL OPERATIONS STATEMENTS OF OPERATING EARNINGS - PRODUCT LEVEL UNAUDITED (DOLLARS IN MILLIONS)
For the Three Months Ended --------------------------------------------------------------------------- June 30, March 31, December 31, September 30, June 30, March 31, Group Life 2004 2004 2003 2003 2003 2003 - ----------------------------------------------------------------------------------------------------------------------------------- REVENUES (1) Premiums $1,244 $1,282 $1,223 $1,167 $1,175 $1,163 Universal life and investment-type product policy fees 187 171 153 167 154 161 Investment income, net 269 259 271 262 248 242 Other revenues 13 19 18 17 13 16 --------------------------------------------------------------------------- 1,713 1,731 1,665 1,613 1,590 1,582 --------------------------------------------------------------------------- EXPENSES Policyholder benefits and dividends 1,326 1,392 1,272 1,237 1,229 1,234 Interest credited to policyholder account balances 101 100 100 113 104 106 Other expenses 88 123 138 116 133 121 --------------------------------------------------------------------------- 1,515 1,615 1,510 1,466 1,466 1,461 --------------------------------------------------------------------------- Operating earnings before provision for income taxes 198 116 155 147 124 121 Provision for income taxes 68 39 56 53 45 43 --------------------------------------------------------------------------- OPERATING EARNINGS $130(2) $77 $99 $94 $79 $78 --------------------------------------------------------------------------- Net investment-related gains (losses), net of income taxes (4) 17 (53) 3 (8) (13) Cumulative effect of a change in accounting, net of income taxes 0 0 0 0 0 0 --------------------------------------------------------------------------- Net income $126 $94 $46 $97 $71 $65 =========================================================================== For the Year-to-Date Period Ended ------------------------------------------------------------------------- June 30, December 31, September 30, June 30, Group Life 2004 2003 2003 2003 - ---------------------------------------------------------------------------------------------------------------------------------- REVENUES (1) Premiums $2,526 $4,728 $3,505 $2,338 Universal life and investment-type product policy fees 358 635 482 315 Investment income, net 528 1,023 752 490 Other revenues 32 64 46 29 ------------------------------------------------------------------------- 3,444 6,450 4,785 3,172 ------------------------------------------------------------------------- EXPENSES Policyholder benefits and dividends 2,718 4,972 3,700 2,463 Interest credited to policyholder account balances 201 423 323 210 Other expenses 211 508 370 254 ------------------------------------------------------------------------- 3,130 5,903 4,393 2,927 ------------------------------------------------------------------------- Operating earnings before provision for income taxes 314 547 392 245 Provision for income taxes 107 197 141 88 ------------------------------------------------------------------------- OPERATING EARNINGS $207(2) $350 $251 $157 ------------------------------------------------------------------------- Net investment-related gains (losses), net of income taxes 13 (71) (18) (21) Cumulative effect of a change in accounting, net of income taxes 0 0 0 0 ------------------------------------------------------------------------- Net income $220 $279 $233 $136 =========================================================================
(1) Certain amounts in prior periods presented throughout the QFS have been reclassified to conform with current period presentation. (2) Operating earnings for the period ended June 30, 2004 includes a $31 million after-tax benefit from a reduction of a previously established premium tax liability. 18 (METLIFE LOGO) - ------------------------------------------------------------------------------- INSTITUTIONAL OPERATIONS STATEMENTS OF OPERATING EARNINGS - PRODUCT LEVEL UNAUDITED (DOLLARS IN MILLIONS)
For the Three Months Ended --------------------------------------------------------------------------- June 30, March 31, December 31, September 30, June 30, March 31, Retirement & Savings 2004 2004 2003 2003 2003 2003 - ---------------------------------------------------------------------------------------------------------------------------------- REVENUES Premiums $225 $265 $305 $289 $351 $174 Universal life and investment-type product policy fees 0 0 0 0 0 0 Investment income, net 744 735 732 653 674 642 Other revenues 55 57 58 48 52 45 --------------------------------------------------------------------------- 1,024 1,057 1,095 990 1,077 861 --------------------------------------------------------------------------- EXPENSES Policyholder benefits and dividends 598 589 682 641 681 531 Interest credited to policyholder account balances 139 132 129 121 124 118 Other expenses 84 69 90 68 87 86 --------------------------------------------------------------------------- 821 790 901 830 892 735 --------------------------------------------------------------------------- Operating earnings before provision for income taxes 203 267 194 160 185 126 Provision for income taxes 68 89 69 56 65 44 --------------------------------------------------------------------------- OPERATING EARNINGS $135 $178 $125 $104 $120 $82 --------------------------------------------------------------------------- Net investment-related gains (losses), net of income taxes 48 32 0 (48) 2 (25) Cumulative effect of a change in accounting, net of income taxes (1) 0 (40) (26) 0 0 0 --------------------------------------------------------------------------- Net income $183 $170 $99 $56 $122 $57 =========================================================================== For the Year-to-Date Period Ended ------------------------------------------------------------------- June 30, December 31, September 30, June 30, Retirement & Savings 2004 2003 2003 2003 - ---------------------------------------------------------------------------------------------------------------------------------- REVENUES Premiums $490 $1,119 $814 $525 Universal life and investment-type product policy fees 0 0 0 0 Investment income, net 1,479 2,701 1,969 1,316 Other revenues 112 203 145 97 ------------------------------------------------------------------- 2,081 4,023 2,928 1,938 ------------------------------------------------------------------- EXPENSES Policyholder benefits and dividends 1,187 2,535 1,853 1,212 Interest credited to policyholder account balances 271 492 363 242 Other expenses 153 331 241 173 ------------------------------------------------------------------- 1,611 3,358 2,457 1,627 ------------------------------------------------------------------- Operating earnings before provision for income taxes 470 665 471 311 Provision for income taxes 157 234 165 109 ------------------------------------------------------------------- OPERATING EARNINGS $313 $431 $306 $202 ------------------------------------------------------------------- Net investment-related gains (losses), net of income taxes 80 (71) (71) (23) Cumulative effect of a change in accounting, net of income taxes (1) (40) (26) 0 0 ------------------------------------------------------------------- Net income $353 $334 $235 $179 ===================================================================
(1) The cumulative effect of a change in accounting, net of income taxes, for the period ended March 31, 2004, is in accordance with AICPA Statement of Position 03-1, Accounting and Reporting by Insurance Enterprises for Certain Nontraditional Long-Duration Contracts and for Separate Accounts. For the period ended December 31, 2003, the cumulative effect of a change in accounting, net of income taxes, is in accordance with FASB Implementation Issue No. B36, Embedded Derivatives: Modified Coinsurance Arrangements and Debt Instruments That Incorporate Credit Risk Exposures That Are Unrelated or Only Partially Related to the Creditworthiness of the Obligor under Those Instruments. 19 (METLIFE LOGO) - ------------------------------------------------------------------------------- INSTITUTIONAL OPERATIONS STATEMENTS OF OPERATING EARNINGS - PRODUCT LEVEL UNAUDITED (DOLLARS IN MILLIONS)
For the Three Months Ended ----------------------------------------------------------------------------- June 30, March 31, December 31, September 30, June 30, March 31, Non-Medical Health & Other 2004 2004 2003 2003 2003 2003 - ----------------------------------------------------------------------------------------------------------------------------------- REVENUES Premiums $913 $878 $835 $804 $808 $799 Universal life and investment-type product policy fees 0 0 0 0 0 0 Investment income, net 123 107 100 88 87 95 Other revenues 87 88 78 79 87 81 ----------------------------------------------------------------------------- 1,123 1,073 1,013 971 982 975 ----------------------------------------------------------------------------- EXPENSES Policyholder benefits and dividends 775 718 675 645 650 653 Interest credited to policyholder account balances 0 0 0 0 0 0 Other expenses 268 259 257 223 236 229 ----------------------------------------------------------------------------- 1,043 977 932 868 886 882 ----------------------------------------------------------------------------- Operating earnings before provision for income taxes 80 96 81 103 96 93 Provision for income taxes 28 34 28 37 35 34 ----------------------------------------------------------------------------- OPERATING EARNINGS $52 $62 $53 $66 $61 $59 ----------------------------------------------------------------------------- Net investment-related gains (losses), net of income taxes 16 4 (6) 9 0 (6) Cumulative effect of a change in accounting, net of income taxes (1) 0 (20) 0 0 0 0 ----------------------------------------------------------------------------- Net income $68 $46 $47 $75 $61 $53 ============================================================================= For the Year-to-Date Period Ended -------------------------------------------------------------------------- June 30, December 31, September 30, June 30, Non-Medical Health & Other 2004 2003 2003 2003 - ----------------------------------------------------------------------------------------------------------------------------------- REVENUES Premiums $1,791 $3,246 $2,411 $1,607 Universal life and investment-type product policy fees 0 0 0 0 Investment income, net 230 370 270 182 Other revenues 175 325 247 168 -------------------------------------------------------------------------- 2,196 3,941 2,928 1,957 -------------------------------------------------------------------------- EXPENSES Policyholder benefits and dividends 1,493 2,623 1,948 1,303 Interest credited to policyholder account balances 0 0 0 0 Other expenses 527 945 688 465 -------------------------------------------------------------------------- 2,020 3,568 2,636 1,768 -------------------------------------------------------------------------- Operating earnings before provision for income taxes 176 373 292 189 Provision for income taxes 62 134 106 69 -------------------------------------------------------------------------- OPERATING EARNINGS $114 $239 $186 $120 -------------------------------------------------------------------------- Net investment-related gains (losses), net of income taxes 20 (3) 3 (6) Cumulative effect of a change in accounting, net of income taxes (1) (20) 0 0 0 -------------------------------------------------------------------------- Net income $114 $236 $189 $114 ==========================================================================
(1) The cumulative effect of a change in accounting, net of income taxes, for the period ended March 31, 2004, is in accordance with AICPA Statement of Position 03-1, Accounting and Reporting by Insurance Enterprises for Certain Nontraditional Long-Duration Contracts and for Separate Accounts. 20 (METLIFE LOGO) - -------------------------------------------------------------------------------- INSTITUTIONAL OPERATIONS PREMIUMS, FEES AND OTHER REVENUES BY PRODUCT AND ADDITIONAL STATISTICAL INFORMATION
For the Three Months Ended --------------------------------------------------------------------- June 30, March 31, December 31, September 30, June 30, March 31, Unaudited (Dollars in millions) 2004 2004 2003 2003 2003 2003 - ------------------------------------------------------------------------------------------------------------------------------------ PREMIUMS, FEES AND OTHER REVENUES BY PRODUCT Group Life $1,444 $1,472 $1,394 $1,351 $1,342 $1,340 Retirement & Savings 280 322 363 337 403 219 Non-Medical Health & Other 1,000 966 913 883 895 880 --------------------------------------------------------------------- Total Premiums, Fees and Other Revenues $2,724 $2,760 $2,670 $2,571 $2,640 $2,439 ===================================================================== Group Disability (Included in Non-Medical Health & Other) $250 $246 $237 $227 $238 $241 ADDITIONAL STATISTICAL INFORMATION INCURRED LOSS RATIO (MORTALITY EXPERIENCE): Term Life 93.3% 95.7% 91.4% 91.3% 92.0% 93.2% INCURRED LOSS RATIO (MORBIDITY EXPERIENCE): Group Disability 92.7% 93.3% 102.7% 99.8% 95.1% 96.5%
21 (METLIFE LOGO) - -------------------------------------------------------------------------------- INSTITUTIONAL OPERATIONS FUTURE POLICY BENEFITS AND POLICYHOLDER ACCOUNT BALANCES AND SEPARATE ACCOUNT LIABILITIES UNAUDITED (DOLLARS IN MILLIONS) FUTURE POLICY BENEFITS AND POLICYHOLDER ACCOUNT BALANCES (1)
For the Three Months Ended --------------------------------------------------------------------------- June 30, March 31, December 31, September 30, June 30, March 31, Group Life 2004 2004 2003 2003 2003 2003 - ----------------------------------------------------------------------------------------------------------------- Balance, beginning of period $14,642 $14,678 $14,453 $14,189 $13,993 $13,756 Premiums and deposits 2,621 2,719 2,935 2,728 2,676 2,877 Interest on reserves 131 130 132 141 134 136 Surrenders and withdrawals (1,118) (1,144) (1,344) (1,078) (1,103) (1,426) Benefit payments (1,297) (1,387) (1,203) (1,238) (1,197) (1,223) Other (145) (354) (295) (289) (314) (127) --------------------------------------------------------------------------- Balance, end of period $14,834 $14,642 $14,678 $14,453 $14,189 $13,993 ===========================================================================
For the Three Months Ended --------------------------------------------------------------------------- June 30, March 31, December 31, September 30, June 30, March 31, Retirement & Savings 2004 2004 2003 2003 2003 2003 - ----------------------------------------------------------------------------------------------------------------- Balance, beginning of period $42,634 $40,298 $40,191 $39,111 $36,206 $35,548 Premiums and deposits 2,003 2,424 1,763 3,156 3,040 1,060 Interest on reserves 551 542 537 526 526 518 Surrenders and withdrawals (928) (1,222) (1,330) (1,396) (1,113) (602) Benefit payments (470) (468) (468) (471) (521) (465) Other (2) (1,503) 1,060 (395) (735) 973 147 --------------------------------------------------------------------------- Balance, end of period $42,287 $42,634 $40,298 $40,191 $39,111 $36,206 ===========================================================================
For the Three Months Ended --------------------------------------------------------------------------- June 30, March 31, December 31, September 30, June 30, March 31, Non-Medical Health & Other 2004 2004 2003 2003 2003 2003 - ----------------------------------------------------------------------------------------------------------------- Balance, beginning of period $6,003 $4,708 $4,621 $4,552 $4,483 $4,396 Premiums and deposits 831 795 762 727 728 736 Interest on reserves 60 57 56 56 55 55 Surrenders and withdrawals 25 24 16 17 24 12 Benefit payments (728) (693) (615) (591) (591) (609) Other (2) 216 1,112 (132) (140) (147) (107) --------------------------------------------------------------------------- Balance, end of period $6,407 $6,003 $4,708 $4,621 $4,552 $4,483 ===========================================================================
SEPARATE ACCOUNT LIABILITIES
For the Three Months Ended ---------------------------------------------------------------------------- June 30, March 31, December 31, September 30, June 30, March 31, Group Life 2004 2004 2003 2003 2003 2003 - ------------------------------------------------------------------------------------------------------------------ Balance, beginning of period $7,754 $7,045 $6,951 $6,953 $6,376 $6,011 Premiums and deposits 156 160 85 298 169 299 Investment performance 239 645 113 23 582 175 Surrenders and withdrawals (86) (92) (104) (323) (174) (109) Policy charges 0 0 0 0 0 0 Other 3 (4) 0 0 0 0 ---------------------------------------------------------------------------- Balance, end of period $8,066 $7,754 $7,045 $6,951 $6,953 $6,376 ============================================================================
For the Three Months Ended ---------------------------------------------------------------------------- June 30, March 31, December 31, September 30, June 30, March 31, Retirement & Savings 2004 2004 2003 2003 2003 2003 - ------------------------------------------------------------------------------------------------------------------ Balance, beginning of period $27,376 $27,081 $26,570 $26,526 $25,105 $24,775 Premiums and deposits 694 1,369 1,103 726 1,008 752 Investment performance (277) 802 661 206 1,481 393 Surrenders and withdrawals (842) (1,262) (1,235) (874) (1,050) (793) Policy charges (20) (21) (18) (14) (18) (22) Other (2) 31 (593) 0 0 0 0 ---------------------------------------------------------------------------- Balance, end of period $26,962 $27,376 $27,081 $26,570 $26,526 $25,105 ============================================================================
For the Three Months Ended --------------------------------------------------------------------------- June 30, March 31, December 31, September 30, June 30, March 31, Non-Medical Health & Other 2004 2004 2003 2003 2003 2003 - ----------------------------------------------------------------------------------------------------------------- Balance, beginning of period $ 139 $ 1,505 $1,462 $1,348 $1,241 $1,150 Premiums and deposits 82 84 73 76 80 63 Investment performance 14 16 15 63 58 47 Surrenders and withdrawals (25) (24) (16) (17) (23) (12) Policy charges (9) (15) (29) (8) (8) (7) Other (2) (41) (1,427) 0 0 0 0 --------------------------------------------------------------------------- Balance, end of period $ 160 $ 139 $1,505 $1,462 $1,348 $1,241 ===========================================================================
(1) Certain amounts in prior periods presented throughout the QFS have been reclassified to conform with current period presentation. (2) Beginning with the period ended March 31, 2004, the balances include liabilities recorded in accordance with AICPA Statement of Position 03-1, Accounting and Reporting by Insurance Enterprises for Certain Nontraditional Long-Duration Contracts and for Separate Accounts. 22 (METLIFE LOGO) - -------------------------------------------------------------------------------- INSTITUTIONAL OPERATIONS EXPENSES BY MAJOR CATEGORY
For the Three Months Ended --------------------------------------------------------------------------- June 30, March 31, December 31, September 30, June 30, March 31, Unaudited (Dollars in millions) 2004 2004 2003 2003 2003 2003 - -------------------------------------------------------------------------------------------------------------------------------- EXPENSES BY MAJOR CATEGORY Direct and allocated expenses $361 $352 $370 $303 $327 $320 Pension and other post-retirement benefit costs 21 18 31 23 35 26 Premium taxes and other taxes, licenses and fees (11) 35 28 30 39 36 --------------------------------------------------------------------------- Subtotal Insurance Expenses $371 $405 $429 $356 $401 $382 Commissions and other expenses 69 46 56 51 55 54 --------------------------------------------------------------------------- Total Expenses $440 $451 $485 $407 $456 $436 ===========================================================================
23 (METLIFE LOGO) - -------------------------------------------------------------------------------- INSTITUTIONAL OPERATIONS SPREADS BY PRODUCT UNAUDITED
For the Three Months Ended --------------------------------------------------------------------------- June 30, March 31, December 31, September 30, June 30, March 31, Group Life 2004 2004 2003 2003 2003 2003 - ---------------------------------------------------------------------------------------------------------------------- ANNUALIZED GENERAL ACCOUNT SPREADS BY SEGMENT (%) Investment income yield 5.87% 5.66% 6.11% 5.83% 5.57% 5.62% Average crediting rate 3.44% 3.49% 3.56% 3.85% 3.72% 3.87% --------------------------------------------------------------------------- Spread 2.43% 2.17% 2.55% 1.98% 1.85% 1.75% ===========================================================================
For the Three Months Ended --------------------------------------------------------------------------- June 30, March 31, December 31, September 30, June 30, March 31, Retirement & Savings 2004 2004 2003 2003 2003 2003 - ---------------------------------------------------------------------------------------------------------------------- ANNUALIZED GENERAL ACCOUNT SPREADS BY SEGMENT (%) Investment income yield 7.01% 7.11% 7.35% 6.82% 7.37% 7.22% Average crediting rate 5.41% 5.47% 5.58% 5.62% 5.92% 6.05% --------------------------------------------------------------------------- Spread 1.60% 1.64% 1.77% 1.20% 1.45% 1.17% ===========================================================================
For the Three Months Ended --------------------------------------------------------------------------- June 30, March 31, December 31, September 30, June 30, March 31, Non-Medical Health & Other 2004 2004 2003 2003 2003 2003 - ---------------------------------------------------------------------------------------------------------------------- ANNUALIZED GENERAL ACCOUNT SPREADS BY SEGMENT (%) Investment income yield 7.77% 6.96% 7.48% 6.49% 6.60% 7.27% Average crediting rate 5.33% 5.35% 5.38% 5.43% 5.49% 5.52% --------------------------------------------------------------------------- Spread 2.44% 1.61% 2.10% 1.06% 1.11% 1.75% ===========================================================================
24 (METLIFE LOGO) - -------------------------------------------------------------------------------- INDIVIDUAL OPERATIONS STATEMENTS OF OPERATING EARNINGS - TOTAL UNAUDITED (DOLLARS IN MILLIONS)
For the Three Months Ended --------------------------------------------------------------------------- June 30, March 31, December 31, September 30, June 30, March 31, Individual Operations 2004 2004 2003 2003 2003 2003 - ------------------------------------------------------------------------------------------------------------------------------------ REVENUES Premiums $1,007 $978 $1,184 $1,064 $1,055 $1,041 Universal life and investment-type product policy fees 455 422 465 386 378 360 Investment income, net 1,549 1,521 1,585 1,550 1,529 1,563 Other revenues 106 117 116 96 109 86 --------------------------------------------------------------------------- 3,117 3,038 3,350 3,096 3,071 3,050 --------------------------------------------------------------------------- EXPENSES Policyholder benefits and dividends 1,663 1,649 1,863 1,703 1,625 1,692 Interest credited to policyholder account balances 427 423 446 452 452 443 Capitalization of deferred policy acquisition costs (298) (293) (279) (280) (280) (260) Amortization of deferred policy acquisition costs 172 162 174 162 207 175 Other expenses 837 820 880 795 833 753 --------------------------------------------------------------------------- 2,801 2,761 3,084 2,832 2,837 2,803 --------------------------------------------------------------------------- Operating earnings before provision for income taxes 316 277 266 264 234 247 Provision for income taxes 106 93 93 93 83 87 --------------------------------------------------------------------------- OPERATING EARNINGS $210 $184 $173 $171 $151(3) $160 =========================================================================== NET INCOME RECONCILIATION - ------------------------- Operating earnings $210 $184 $173 $171 $151 $160 Net investment-related gains (losses) 31 (28) (130) (77) (11) (67) Minority interest - net investment-related gains (losses) 0 0 0 0 0 0 Adjustments to net investment-related gains (losses) (1) (3) 32 100 39 0 38 Net investment-related gains (losses) tax benefit (provision) 1 (2) 19 21 4 10 --------------------------------------------------------------------------- Net investment-related gains (losses), net of income taxes 29 2 (11) (17) (7) (19) Cumulative effect of a change in accounting, net of income taxes (2) 0 (70) 0 0 0 0 --------------------------------------------------------------------------- Net income $239 $116 $162 $154 $144 $141 ===========================================================================
For the Year-to-Date Period Ended ----------------------------------------------------- June 30, December 31, September 30, June 30, Individual Operations 2004 2003 2003 2003 - -------------------------------------------------------------------------------------------------------------- REVENUES Premiums $1,985 $4,344 $3,160 $2,096 Universal life and investment-type product policy fees 877 1,589 1,124 738 Investment income, net 3,070 6,227 4,642 3,092 Other revenues 223 407 291 195 ----------------------------------------------------- 6,155 12,567 9,217 6,121 ----------------------------------------------------- EXPENSES Policyholder benefits and dividends 3,312 6,883 5,020 3,317 Interest credited to policyholder account balances 850 1,793 1,347 895 Capitalization of deferred policy acquisition costs (591) (1,099) (820) (540) Amortization of deferred policy acquisition costs 334 718 544 382 Other expenses 1,657 3,261 2,381 1,586 ----------------------------------------------------- 5,562 11,556 8,472 5,640 ----------------------------------------------------- Operating earnings before provision for income taxes 593 1,011 745 481 Provision for income taxes 199 356 263 170 ----------------------------------------------------- OPERATING EARNINGS $394 $655 $482 $311(3) ===================================================== NET INCOME RECONCILIATION - ------------------------- Operating earnings $394 $655 $482 $311 Net investment-related gains (losses) 3 (285) (155) (78) Minority interest-net investment - related gains (losses) 0 0 0 0 Adjustments to net investment-related gains (losses) (1) 29 177 77 38 Net investment-related gains (losses) tax benefit (provision) (1) 54 35 14 ----------------------------------------------------- Net investment-related gains (losses), net of income taxes 31 (54) (43) (26) Cumulative effect of a change in accounting, net of income taxes (2) (70) 0 0 0 ----------------------------------------------------- Net income $355 $601 $439 $285 =====================================================
(1) Adjustments to net investment-related gains (losses) include amortization of deferred policy acquisition costs, adjustments to the policyholder dividend obligation, and amounts allocable to certain participating contracts. (2) The cumulative effect of a change in accounting, net of income taxes, for the period ended March 31, 2004, is in accordance with AICPA Statement of Position 03-1, Accounting and Reporting by Insurance Enterprises for Certain Nontraditional Long-Duration Contracts and for Separate Accounts. (3) Operating earnings for the period ended June 30, 2003 include a $31 million after-tax charge related to previously deferred expenses. 25 (METLIFE LOGO) - -------------------------------------------------------------------------------- INDIVIDUAL OPERATIONS STATEMENTS OF OPERATING EARNINGS - PRODUCT LEVEL UNAUDITED (DOLLARS IN MILLIONS)
For the Three Months Ended ------------------------------------------------------------------ June 30, March 31, December 31, September 30, June 30, March 31, Traditional Life 2004 2004 2003 2003 2003 2003 - ------------------------------------------------------------------------------------------------------------------------------------ REVENUES Premiums $980 $959 $1,159 $1,037 $1,025 $1,010 Universal life and investment-type product policy fees 0 0 0 0 0 0 Investment income, net 848 843 873 847 846 869 Other revenues 0 1 6 0 10 0 ------------------------------------------------------------------ 1,828 1,803 2,038 1,884 1,881 1,879 ------------------------------------------------------------------ EXPENSES Policyholder benefits and dividends 1,496 1,480 1,684 1,564 1,512 1,529 Interest credited to policyholder account balances 0 0 0 0 0 0 Capitalization of deferred policy acquisition costs (42) (41) (42) (39) (43) (47) Amortization of deferred policy acquisition costs 51 56 54 56 62 58 Other expenses 206 211 236 200 233 221 ------------------------------------------------------------------ 1,711 1,706 1,932 1,781 1,764 1,761 ------------------------------------------------------------------ Operating earnings before provision for income taxes 117 97 106 103 117 118 Provision for income taxes 40 33 38 37 42 42 ------------------------------------------------------------------ OPERATING EARNINGS $77 $64 $68 $66 $75(1) $76 ------------------------------------------------------------------ Net investment-related gains (losses), net of income taxes 16 7 14 5 (13) 6 Cumulative effect of a change in accounting, net of income taxes 0 0 0 0 0 0 ------------------------------------------------------------------ Net income $93 $71 $82 $71 $62 $82 ==================================================================
For the Year-to-Date Period Ended --------------------------------------------------- June 30, December 31, September 30, June 30, Traditional Life 2004 2003 2003 2003 - --------------------------------------------------------------------------------------------------------------------- REVENUES Premiums $1,939 $4,231 $3,072 $2,035 Universal life and investment-type product policy fees 0 0 0 0 Investment income, net 1,691 3,435 2,562 1,715 Other revenues 1 16 10 10 --------------------------------------------------- 3,631 7,682 5,644 3,760 --------------------------------------------------- EXPENSES Policyholder benefits and dividends 2,976 6,289 4,605 3,041 Interest credited to policyholder account balances 0 0 0 0 Capitalization of deferred policy acquisition costs (83) (171) (129) (90) Amortization of deferred policy acquisition costs 107 230 176 120 Other expenses 417 890 654 454 --------------------------------------------------- 3,417 7,238 5,306 3,525 --------------------------------------------------- Operating earnings before provision for income taxes 214 444 338 235 Provision for income taxes 73 159 121 84 --------------------------------------------------- OPERATING EARNINGS $141 $285 $217 151(1) --------------------------------------------------- Net investment-related gains (losses), net of income taxes 23 12 (2) (7) Cumulative effect of a change in accounting, net of income taxes 0 0 0 0 --------------------------------------------------- Net income $164 $297 $215 $144 ===================================================
(1) Operating earnings for the period ended June 30, 2003 includes a $2 million after-tax charge related to previously deferred expenses. 26 (METLIFE LOGO) - -------------------------------------------------------------------------------- INDIVIDUAL OPERATIONS STATEMENTS OF OPERATING EARNINGS - PRODUCT LEVEL UNAUDITED (DOLLARS IN MILLIONS)
For the Three Months Ended ----------------------------------------------------------------------- June 30, March 31, December 31, September 30, June 30, March 31, Variable & Universal Life 2004 2004 2003 2003 2003 2003 - ------------------------------------------------------------------------------------------------------------------------------------ REVENUES Premiums $0 $0 $0 $0 $0 $0 Universal life and investment-type product policy fees 266 242 301 256 262 255 Investment income, net 143 140 143 145 144 142 Other revenues (3) 4 4 (1) (1) (2) ----------------------------------------------------------------------- 406 386 448 400 405 395 ----------------------------------------------------------------------- EXPENSES Policyholder benefits and dividends 98 92 126 69 57 87 Interest credited to policyholder account balances 116 113 118 122 117 117 Capitalization of deferred policy acquisition costs (86) (70) (88) (82) (86) (81) Amortization of deferred policy acquisition costs 54 44 64 47 102 59 Other expenses 186 175 205 196 205 177 ----------------------------------------------------------------------- 368 354 425 352 395 359 ----------------------------------------------------------------------- Operating earnings before provision for income taxes 38 32 23 48 10 36 Provision for income taxes 13 11 8 18 4 13 ----------------------------------------------------------------------- OPERATING EARNINGS $25 $21 $15 $30 $6(2) $23 ----------------------------------------------------------------------- Net investment-related gains (losses), net of income taxes (3) 2 (4) (8) 7 (5) Cumulative effect of a change in accounting, net of income taxes (1) 0 (81) 0 0 0 0 ----------------------------------------------------------------------- Net income (loss) $22 ($58) $11 $22 $13 $18 =======================================================================
For the Year-to-Date Period Ended ---------------------------------------------------- June 30, December 31, September 30, June 30, Variable & Universal Life 2004 2003 2003 2003 - ----------------------------------------------------------------------------------------------------------------- REVENUES Premiums $0 $0 $0 $0 Universal life and investment-type product policy fees 508 1,074 773 517 Investment income, net 283 574 431 286 Other revenues 1 0 (4) (3) ---------------------------------------------------- 792 1,648 1,200 800 ---------------------------------------------------- EXPENSES Policyholder benefits and dividends 190 339 213 144 Interest credited to policyholder account balances 229 474 356 234 Capitalization of deferred policy acquisition costs (156) (337) (249) (167) Amortization of deferred policy acquisition costs 98 272 208 161 Other expenses 361 783 578 382 ---------------------------------------------------- 722 1,531 1,106 754 ---------------------------------------------------- Operating earnings before provision for income taxes 70 117 94 46 Provision for income taxes 24 43 35 17 ---------------------------------------------------- OPERATING EARNINGS $46 $74 $59 $29(2) ---------------------------------------------------- Net investment-related gains (losses), net of income taxes (1) (10) (6) 2 Cumulative effect of a change in accounting, net of income taxes (1) (81) 0 0 0 ---------------------------------------------------- Net income (loss) ($36) $64 $53 $31 ====================================================
(1) The cumulative effect of a change in accounting, net of income taxes, for the period ended March 31, 2004, is in accordance with AICPA Statement of Position 03-1, Accounting and Reporting by Insurance Enterprises for Certain Nontraditional Long-Duration Contracts and for Separate Accounts. (2) Operating earnings for the period ended June 30, 2003 includes a $29 million after-tax charge related to previously deferred expenses. 27 (METLIFE LOGO) - -------------------------------------------------------------------------------- INDIVIDUAL OPERATIONS STATEMENTS OF OPERATING EARNINGS - PRODUCT LEVEL UNAUDITED (DOLLARS IN MILLIONS)
For the Three Months Ended ---------------------------------------------------------------------- June 30, March 31, December 31, September 30, June 30, March 31, Annuities 2004 2004 2003 2003 2003 2003 - ----------------------------------------------------------------------------------------------------------------------------------- REVENUES Premiums $26 $18 $20 $19 $23 $24 Universal life and investment-type product policy fees 156 151 137 106 95 82 Investment income, net 494 475 503 489 479 487 Other revenues 10 7 7 3 7 1 ---------------------------------------------------------------------- 686 651 667 617 604 594 ---------------------------------------------------------------------- EXPENSES Policyholder benefits and dividends 58 68 53 55 46 64 Interest credited to policyholder account balances 281 280 299 303 307 296 Capitalization of deferred policy acquisition costs (169) (181) (148) (158) (149) (131) Amortization of deferred policy acquisition costs 64 59 53 55 41 55 Other expenses 302 299 281 261 274 234 ---------------------------------------------------------------------- 536 525 538 516 519 518 ---------------------------------------------------------------------- Operating earnings before provision for income taxes 150 126 129 101 85 76 Provision for income taxes 49 41 44 34 29 26 ---------------------------------------------------------------------- OPERATING EARNINGS $101 $85 $85 $67 $56 $50 ---------------------------------------------------------------------- Net investment-related gains (losses), net of income taxes 16 2 (24) (14) (1) (15) Cumulative effect of a change in accounting, net of income taxes (1) 0 11 0 0 0 0 ---------------------------------------------------------------------- Net income $117 $98 $61 $53 $55 $35 ======================================================================
For the Year-to-Date Period Ended ------------------------------------------------ June 30, December 31, September 30, June 30, Annuities 2004 2003 2003 2003 - ------------------------------------------------------------------------------------------------------------- REVENUES Premiums $44 $86 $66 $47 Universal life and investment-type product policy fees 307 420 283 177 Investment income, net 969 1,958 1,455 966 Other revenues 17 18 11 8 ------------------------------------------------ 1,337 2,482 1,815 1,198 ------------------------------------------------ EXPENSES Policyholder benefits and dividends 126 218 165 110 Interest credited to policyholder account balances 561 1,205 906 603 Capitalization of deferred policy acquisition costs (350) (586) (438) (280) Amortization of deferred policy acquisition costs 123 204 151 96 Other expenses 601 1,050 769 508 ------------------------------------------------ 1,061 2,091 1,553 1,037 ------------------------------------------------ Operating earnings before provision for income taxes 276 391 262 161 Provision for income taxes 90 133 89 55 ------------------------------------------------ OPERATING EARNINGS $186 $258 $173 $106 ------------------------------------------------ Net investment-related gains (losses), net of income taxes 18 (54) (30) (16) Cumulative effect of a change in accounting, net of income taxes (1) 11 0 0 0 ------------------------------------------------ Net income $215 $204 $143 $90 ================================================
(1) The cumulative effect of a change in accounting, net of income taxes, for the period ended March 31, 2004, is in accordance with AICPA Statement of Position 03-1, Accounting and Reporting by Insurance Enterprises for Certain Nontraditional Long-Duration Contracts and for Separate Accounts. 28 (METLIFE LOGO) - -------------------------------------------------------------------------------- INDIVIDUAL OPERATIONS STATEMENTS OF OPERATING EARNINGS - PRODUCT LEVEL UNAUDITED (DOLLARS IN MILLIONS)
For the Three Months Ended ---------------------------------------------------------------------- June 30, March 31, December 31, September 30, June 30, March 31, Other 2004 2004 2003 2003 2003 2003 - ----------------------------------------------------------------------------------------------------------------------------------- REVENUES Premiums $1 $1 $5 $8 $7 $7 Universal life and investment-type product policy fees 33 29 27 24 21 23 Investment income, net 64 63 66 69 60 65 Other revenues 99 105 99 94 93 87 ---------------------------------------------------------------------- 197 198 197 195 181 182 ---------------------------------------------------------------------- EXPENSES Policyholder benefits and dividends 11 9 0 15 10 12 Interest credited to policyholder account balances 30 30 29 27 28 30 Capitalization of deferred policy acquisition costs (1) (1) (1) (1) (2) (1) Amortization of deferred policy acquisition costs 3 3 3 4 2 3 Other expenses 143 135 158 138 121 121 ---------------------------------------------------------------------- 186 176 189 183 159 165 ---------------------------------------------------------------------- Operating earnings before provision for income taxes 11 22 8 12 22 17 Provision for income taxes 4 8 3 4 8 6 ---------------------------------------------------------------------- OPERATING EARNINGS $7 $14 $5 $8 $14 $11 ---------------------------------------------------------------------- Net investment-related gains (losses), net of income taxes 0 (9) 3 0 0 (5) Cumulative effect of a change in accounting, net of income taxes 0 0 0 0 0 0 ---------------------------------------------------------------------- Net income $7 $5 $8 $8 $14 $6 ======================================================================
For the Year-to-Date Period Ended ---------------------------------------------------- June 30, December 31, September 30, June 30, Other 2004 2003 2003 2003 - ----------------------------------------------------------------------------------------------------------------- REVENUES Premiums $2 $27 $22 $14 Universal life and investment-type product policy fees 62 95 68 44 Investment income, net 127 260 194 125 Other revenues 204 373 274 180 ---------------------------------------------------- 395 755 558 363 ---------------------------------------------------- EXPENSES Policyholder benefits and dividends 20 37 37 22 Interest credited to policyholder account balances 60 114 85 58 Capitalization of deferred policy acquisition costs (2) (5) (4) (3) Amortization of deferred policy acquisition costs 6 12 9 5 Other expenses 278 538 380 242 ---------------------------------------------------- 362 696 507 324 ---------------------------------------------------- Operating earnings before provision for income taxes 33 59 51 39 Provision for income taxes 12 21 18 14 ---------------------------------------------------- OPERATING EARNINGS $21 $38 $33 $25 ---------------------------------------------------- Net investment-related gains (losses), net of income taxes (9) (2) (5) (5) Cumulative effect of a change in accounting, net of income taxes 0 0 0 0 ---------------------------------------------------- Net income $12 $36 $28 $20 ====================================================
29 (METLIFE LOGO) - -------------------------------------------------------------------------------- INDIVIDUAL OPERATIONS PREMIUMS AND DEPOSITS BY PRODUCT AND MANUFACTURER AND MUTUAL FUND SALES
For the Three Months Ended ------------------------------------------------------------------------------------ June 30, March 31, December 31, September 30, June 30, March 31, Unaudited (Dollars in millions) 2004 2004 2003 2003 2003 2003 - ------------------------------------------------------------------------------------------------------------------------------------ PREMIUMS AND DEPOSITS BY PRODUCT (1) TOTAL (2) Traditional Life 1st Year (3) $47 $45 $53 $50 $49 $53 Renewal 1,030 965 1,228 1,052 1,053 1,000 Variable & Universal Life Variable 1st Year excluding Single Premium COLI/BOLI (3) 61 51 53 86 59 91 Universal 1st Year excluding Single Premium COLI/BOLI (3)(4) 116 104 108 82 71 55 Single Premium COLI/BOLI (4) 49 3 27 18 3 13 Renewal (4) 418 471 414 392 393 455 Annuities (3) 2,882 3,436 2,844 2,843 2,933 2,611 Other 251 258 335 287 301 281 ------------------------------------------------------------------------------------ Total Premiums and Deposits $4,854 $5,333 $5,062 $4,810 $4,862 $4,559 ==================================================================================== PREMIUMS AND DEPOSITS TO SEPARATE ACCOUNTS Variable & Universal Life $287 $284 $275 $294 $273 $301 Annuities 1,523 2,120 1,782 1,437 1,229 940 Other 157 160 258 171 191 167 ------------------------------------------------------------------------------------ Total Separate Accounts $1,967 $2,564 $2,315 $1,902 $1,693 $1,408 ==================================================================================== FIRST YEAR LIFE PREMIUMS AND DEPOSITS BY MANUFACTURER (5) MetLife $85 $79 $81 $74 $70 $73 New England Financial 38 28 35 26 29 32 General American 143 90 119 128 76 99 MetLife Investors Group 7 6 6 8 7 8 ------------------------------------------------------------------------------------ Total First Year Life Premiums and Deposits $273 $203 $241 $236 $182 $212 ==================================================================================== ANNUITY DEPOSITS BY TYPE Fixed Annuity Deposits $659 $506 $257 $320 $340 $424 Variable Annuity Deposits 2,223 2,930 2,587 2,523 2,593 2,187 ------------------------------------------------------------------------------------ Total Annuity Deposits $2,882 $3,436 $2,844 $2,843 $2,933 $2,611 ==================================================================================== ANNUITY DEPOSITS BY MANUFACTURER (6) MetLife $965 $1,030 $870 $950 $1,053 $974 New England Financial 197 252 249 235 233 211 General American 11 10 13 9 11 10 MetLife Investors Group 1,709 2,144 1,712 1,649 1,636 1,416 ------------------------------------------------------------------------------------ Total Annuity Deposits $2,882 $3,436 $2,844 $2,843 $2,933 $2,611 ==================================================================================== MUTUAL FUND SALES (4) Proprietary $53 $65 $59 $47 $49 $38 Third Party 811 990 1,192 722 809 753 ------------------------------------------------------------------------------------ Total Mutual Fund Sales $864 $1,055 $1,251 $769 $858 $791 ====================================================================================
(1) Statutory premiums direct and assumed. (2) Includes premiums and deposits to separate accounts. (3) Excludes company-sponsored internal exchanges. (4) Certain amounts in prior periods presented throughout the QFS have been reclassified to conform with current period presentation. (5) Approximately 9% of MetLife manufactured life insurance premiums and deposits were sold by other-than MetLife Financial Services agents during the three months ended June 30, 2004 (6% sold by General American and 3% were sold by New England Financial). Approximately 3% of New England Financial manufactured life insurance premiums and deposits were sold by other-than New England Financial agents during the three months ended June 30, 2004 (1% sold by MetLife Financial Services and 2% sold by General American). Approximately 74% of General American manufactured life insurance premiums and deposits were sold by other-than General American agents during the three months ended June 30, 2004 (53% sold by MetLife Financial Services and 21% by New England Financial). Approximately 3% of MetLife Investors Group manufactured life insurance premiums and deposits were sold by other-than MetLife Investors Group Wholesalers during the three months ended June 30, 2004 (3% sold by MetLife Financial Services). (6) Approximately 23% of MetLife manufactured annuity deposits were sold by other-than MetLife Financial Services agents during the three months ended June 30, 2004 (23% MetLife Resources). Approximately 6% of MetLife Investors Group manufactured annuity deposits were sold by other-than MetLife Investors Group Wholesalers during the three months ended June 30, 2004 (3% Walnut Street Securities and 3% MetLife Resources). 30 (METLIFE LOGO) - -------------------------------------------------------------------------------- INDIVIDUAL OPERATIONS ADDITIONAL STATISTICAL INFORMATION
At or for the Three Months Ended -------------------------------------------------------------------------- June 30, March 31, December 31, September 30, June 30, March 31, Unaudited 2004 2004 2003 2003 2003 2003 - ------------------------------------------------------------------------------------------------------------------------------------ PERCENTAGE OF PREMIUMS AND DEPOSITS TO SEPARATE ACCOUNTS, EXCLUDING TRANSFERS FROM GENERAL ACCOUNT: Variable & Universal Life 44.1% 45.0% 45.6% 50.8% 52.0% 49.1% Annuities 52.9% 61.7% 62.6% 50.6% 41.9% 36.0% Other 62.5% 62.1% 77.3% 59.5% 63.3% 59.5% MORTALITY AS A PERCENTAGE OF EXPECTED 78.1% 85.4% 84.2% 80.3% 99.4%(4) 87.2% LAPSES / SURRENDERS (GENERAL AND SEPARATE ACCOUNT) (1) Traditional Life 6.2% 6.3% 6.1% 6.0% 6.0% 5.8% Variable & Universal Life 7.1% 7.0% 7.0% 7.2% 7.2% 6.8% Variable Annuities 7.7% 7.8% 8.2% 8.7% 9.0% 9.2% Fixed Annuities 8.0% 7.4% 6.6% 6.7% 6.4% 6.7% NUMBER OF SALES REPRESENTATIVES MetLife Financial Services 5,633 5,594 5,531 5,587 5,728 5,798 New England Financial 2,553 2,531 2,845 2,992 3,004 2,916 General American (2) 448 448 429 471 522 557 Independent Distribution Wholesalers 101 95 91 91 89 83 MetLife Resources 397 397 401 384 379 362 Walnut Street Securities (3) 1,413 1,468 1,462 1,649 1,823 1,923 P&C Specialists 500 461 437 416 409 396 -------------------------------------------------------------------------- Total Agents 11,045 10,994 11,196 11,590 11,954 12,035 ==========================================================================
(1) Lapses/Surrenders rates are calculated for the most recent 12 months of experience. (2) Based on minimum annual production of $25,000 in life insurance sales. (3) At June 30, 2004, the number of Walnut Street Securities representatives includes 150 brokers who are also reported as General American agents above. (4) Includes a $45 million pre-tax death benefit that was 100% reinsured. Excluding this item, the mortality ratio was 88.4%. 31 (METLIFE LOGO) - -------------------------------------------------------------------------------- INDIVIDUAL OPERATIONS FUTURE POLICY BENEFITS AND POLICYHOLDER ACCOUNT BALANCES AND SEPARATE ACCOUNT LIABILITIES UNAUDITED (DOLLARS IN MILLIONS) FUTURE POLICY BENEFITS AND POLICYHOLDER ACCOUNT BALANCES - --------------------------------------------------------
For the Three Months Ended --------------------------------------------------------------------------- June 30, March 31, December 31, September 30, June 30, March 31, Traditional Life 2004 2004 2003 2003 2003 2003 - ------------------------------------------------------------------------------------------------------------------------------------ Balance, beginning of period $48,613 $48,503 $48,140 $47,835 $47,572 $47,397 Premiums and deposits (1) 1,067 1,038 1,246 975 1,043 1,026 Interest on reserves 491 489 486 483 479 476 Surrenders and withdrawals (462) (477) (478) (407) (402) (395) Benefit payments (437) (486) (420) (456) (492) (484) Other (444) (454) (471) (290) (365) (448) --------------------------------------------------------------------------- Balance, end of period $48,828 $48,613 $48,503 $48,140 $47,835 $47,572 ===========================================================================
For the Three Months Ended --------------------------------------------------------------------------- June 30, March 31, December 31, September 30, June 30, March 31, Variable & Universal Life 2004 2004 2003 2003 2003 2003 - ------------------------------------------------------------------------------------------------------------------------------------ Balance, beginning of period $9,903 $9,475 $9,327 $9,221 $9,140 $8,993 Premiums and deposits (1) (2) 370 346 318 272 247 287 Interest on reserves 115 119 122 121 120 118 Surrenders and withdrawals (158) (233) (137) (117) (122) (113) Net transfers from (to) separate account 56 75 83 54 65 66 Policy charges (204) (199) (199) (195) (184) (198) Benefit payments (27) (34) (22) (22) (24) (25) Other (3) 1 354 (17) (7) (21) 12 --------------------------------------------------------------------------- Balance, end of period $10,056 $9,903 $9,475 $9,327 $9,221 $9,140 ===========================================================================
For the Three Months Ended --------------------------------------------------------------------------- June 30, March 31, December 31, September 30, June 30, March 31, Annuities 2004 2004 2003 2003 2003 2003 - ------------------------------------------------------------------------------------------------------------------------------------ Balance, beginning of period $31,491 $31,350 $31,258 $30,772 $29,917 $28,935 Premiums and deposits (1) (2) 1,432 1,426 1,126 1,492 1,836 1,766 Interest on reserves 390 298 343 361 357 359 Surrenders and withdrawals (740) (797) (647) (678) (665) (667) Net transfers from (to) separate account (566) (610) (653) (562) (517) (171) Policy charges (4) (6) 2 0 (3) (1) Benefit payments (99) (128) (70) (129) (143) (168) Other (3) 4 (42) (9) 2 (10) (136) --------------------------------------------------------------------------- Balance, end of period $31,908 $31,491 $31,350 $31,258 $30,772 $29,917 ===========================================================================
SEPARATE ACCOUNT LIABILITIES - ----------------------------
For the Three Months Ended --------------------------------------------------------------------------- June 30, March 31, December 31, September 30, June 30, March 31, Variable & Universal Life 2004 2004 2003 2003 2003 2003 - ------------------------------------------------------------------------------------------------------------------------------------ Balance, beginning of period $6,989 $6,835 $6,424 $6,149 $5,482 $5,489 Premiums and deposits (1) 287 284 275 294 273 301 Investment performance 85 191 376 177 603 (105) Surrenders and withdrawals (104) (177) (87) (74) (72) (71) Net transfers from (to) fixed account (56) (75) (83) (54) (65) (66) Policy charges (71) (69) (70) (68) (72) (66) Other (3) 0 0 0 0 0 0 --------------------------------------------------------------------------- Balance, end of period $7,130 $6,989 $6,835 $6,424 $6,149 $5,482 ===========================================================================
For the Three Months Ended --------------------------------------------------------------------------- June 30, March 31, December 31, September 30, June 30, March 31, Annuities 2004 2004 2003 2003 2003 2003 - ------------------------------------------------------------------------------------------------------------------------------------ Balance, beginning of period $31,505 $28,667 $24,310 $22,133 $18,464 $18,270 Premiums and deposits (1) 1,524 2,120 1,782 1,438 1,229 940 Investment performance 144 834 2,520 734 2,500 (435) Surrenders and withdrawals (642) (617) (508) (475) (508) (423) Net transfers from (to) fixed account 566 610 653 562 517 171 Policy charges (112) (105) (90) (82) (69) (59) Other (3) 4 (4) 0 0 0 0 --------------------------------------------------------------------------- Balance, end of period $32,989 $31,505 $28,667 $24,310 $22,133 $18,464 ===========================================================================
(1) Includes company-sponsored internal exchanges. (2) Includes premiums and deposits directed to the General Account investment option of a variable life or variable annuity product. (3) Beginning with the period ended March 31, 2004, the balances include liabilities recorded in accordance with AICPA Statement of Position 03-1, Accounting and Reporting by Insurance Enterprises for Certain Nontraditional Long-Duration Contracts and for Separate Accounts. 32 (METLIFE LOGO) - -------------------------------------------------------------------------------- INDIVIDUAL OPERATIONS INSURANCE EXPENSES AND OTHER EXPENSES BY MAJOR CATEGORY
For the Three Months Ended ----------------------------------------------------------------------------------------------- June 30, March 31, December 31, September 30, June 30, March 31, Unaudited (Dollars in millions) 2004 2004 2003 2003 2003 2003 - ------------------------------------------------------------------------------------------------------------------------------------ INSURANCE EXPENSES (NET OF CAPITALIZATION OF DAC) Insurance Expenses $752 $757 $775 $709 $758 $682 DAC Capitalization (1) (333) (324) (336) (309) (304) (285) ----------------------------------------------------------------------------------------------- Net $419 $433 $439 $400 $454 $397 =============================================================================================== OTHER EXPENSES BY MAJOR CATEGORY Commissions $241 $252 $244 $220 $214 $195 Other deferrable expenses 114 92 108 101 107 113 Direct and allocated expenses, not deferred 335 353 347 322 371 310 Pension and other post- retirement benefit costs 32 31 50 41 40 36 Premium taxes and other taxes, licenses and fees 30 29 26 25 26 28 ----------------------------------------------------------------------------------------------- Subtotal Insurance Expenses $752 $757 $775 $709 $758 $682 Broker-dealer and other expenses 134 116 150 124 118 110 Reinsurance allowances (49) (53) (45) (38) (43) (39) ----------------------------------------------------------------------------------------------- Total Other Expenses $837 $820 $880 $795 $833 $753 ===============================================================================================
(1) Excludes $35 million, $31 million, $57 million, $29 million, $24 million, and $25 million, of DAC capitalization related to reinsurance allowances for the three months ended June 30, 2004, March 31, 2004, December 31, 2003, September 30, 2003, June 30, 2003, and March 31, 2003, respectively. 33 (METLIFE LOGO) - -------------------------------------------------------------------------------- INDIVIDUAL OPERATIONS SPREADS BY PRODUCT UNAUDITED
For the Three Months Ended ----------------------------------------------------------------------------------------------- June 30, March 31, December 31, September 30, June 30, March 31, VARIABLE & UNIVERSAL LIFE 2004 2004 2003 2003 2003 2003 - ------------------------------------------------------------------------------------------------------------------------------------ ANNUALIZED GENERAL ACCOUNT SPREADS BY PRODUCT (%) Investment income yield 7.05% 6.98% 7.23% 7.25% 7.31% 7.39% Average crediting rate 5.25% 5.26% 5.50% 5.63% 5.57% 5.64% ----------------------------------------------------------------------------------------------- Spread 1.80% 1.72% 1.73% 1.62% 1.74% 1.75% ===============================================================================================
For the Three Months Ended ----------------------------------------------------------------------------------------------- June 30, March 31, December 31, September 30, June 30, March 31, ANNUITIES 2004 2004 2003 2003 2003 2003 - ------------------------------------------------------------------------------------------------------------------------------------ ANNUALIZED GENERAL ACCOUNT SPREADS BY PRODUCT (%) Investment income yield 6.23% 5.85% 6.50% 6.50% 6.31% 6.64% Average crediting rate 3.79% 3.90% 4.16% 4.28% 4.36% 4.47% ----------------------------------------------------------------------------------------------- Spread 2.44% 1.95% 2.34% 2.22% 1.95% 2.17% ===============================================================================================
34 (METLIFE LOGO) - -------------------------------------------------------------------------------- AUTO & HOME OPERATIONS STATEMENTS OF OPERATING EARNINGS - TOTAL UNAUDITED (DOLLARS IN MILLIONS)
For the Three Months Ended ---------------------------------------------------------------- June 30, March 31, December 31, September 30, June 30, March 31, Auto & Home Operations 2004 2004 2003 2003 2003 2003 - ----------------------------------------------------------------------------------------------------------------------------------- REVENUES Earned premiums $734 $737 $740 $735 $721 $712 Investment income, net 44 46 39 39 41 39 Other revenues 6 9 9 10 4 9 ---------------------------------------------------------------- 784 792 788 784 766 760 ---------------------------------------------------------------- EXPENSES Losses 413 446 447 465 446 452 Loss adjustment expense 82 90 89 78 81 82 Other expenses 193 198 184 187 186 199 ---------------------------------------------------------------- 688 734 720 730 713 733 ---------------------------------------------------------------- Operating earnings before provision (benefit) for income taxes 96 58 68 54 53 27 Provision (benefit) for income taxes 25 12 15 12 11 (3) ---------------------------------------------------------------- OPERATING EARNINGS $71 $46 $53 $42 $42 $30 ================================================================ NET INCOME RECONCILIATION - ------------------------- Operating earnings $71 $46 $53 $42 $42 $30 Net investment-related gains (losses) (5) 0 (11) 2 (2) (4) Minority interest - net investment-related gains (losses) 0 0 0 0 0 0 Adjustments to net investment-related gains (losses) 0 0 0 0 0 0 Net investment-related gains (losses) tax benefit (provision) 2 0 4 (1) 1 1 ---------------------------------------------------------------- Net investment-related gains (losses), net of income taxes (3) 0 (7) 1 (1) (3) ---------------------------------------------------------------- Net income $68 $46 $46 $43 $41 $27 ================================================================
For the Year-to-Date Period Ended ----------------------------------------------- June 30, December 31, September 30, June 30, Auto & Home Operations 2004 2003 2003 2003 - ------------------------------------------------------------------------------------------------------------------ REVENUES Earned premiums $1,471 $2,908 $2,168 $1,433 Investment income, net 90 158 119 80 Other revenues 15 32 23 13 ----------------------------------------------- 1,576 3,098 2,310 1,526 ----------------------------------------------- EXPENSES Losses 859 1,810 1,363 898 Loss adjustment expense 172 330 241 163 Other expenses 391 756 572 385 ----------------------------------------------- 1,422 2,896 2,176 1,446 ----------------------------------------------- Operating earnings before provision (benefit) for income taxes 154 202 134 80 Provision (benefit) for income taxes 37 35 20 8 ----------------------------------------------- OPERATING EARNINGS $117 $167 $114 $72 =============================================== NET INCOME RECONCILIATION - -------------------------- Operating earnings $117 $167 $114 $72 Net investment-related gains (losses) (5) (15) (4) (6) Minority interest - net investment-related gains (losses) 0 0 0 0 Adjustments to net investment-related gains (losses) 0 0 0 0 Net investment-related gains (losses) tax benefit (provision) 2 5 1 2 ----------------------------------------------- Net investment-related gains (losses), net of income taxes (3) (10) (3) (4) ----------------------------------------------- Net income $114 $157 $111 $68 ===============================================
35 (METLIFE LOGO) - -------------------------------------------------------------------------------- AUTO & HOME OPERATIONS STATEMENTS OF OPERATING EARNINGS - PRODUCT LEVEL UNAUDITED (DOLLARS IN MILLIONS)
For the Three Months Ended --------------------------------------------------------------- June 30, March 31, December 31, September 30, June 30, March 31, Auto 2004 2004 2003 2003 2003 2003 - ---------------------------------------------------------------------------------------------------------------------------------- REVENUES Earned premiums $538 $542 $545 $545 $535 $530 Investment income, net 34 36 26 27 29 27 Other revenues 5 6 5 7 7 6 --------------------------------------------------------------- 577 584 576 579 571 563 --------------------------------------------------------------- EXPENSES Losses 296 351 357 359 347 366 Loss adjustment expense 63 72 76 61 68 75 Other expenses 135 139 126 131 131 143 --------------------------------------------------------------- 494 562 559 551 546 584 --------------------------------------------------------------- Operating earnings (loss) before provision (benefit) for income taxes 83 22 17 28 25 (21) Provision (benefit) for income taxes 22 0 (2) 5 4 (17) --------------------------------------------------------------- OPERATING EARNINGS (LOSS) $61 $22 $19 $23 $21 ($4) --------------------------------------------------------------- Net investment-related gains (losses), net of income taxes (3) 0 (5) 0 0 (2) --------------------------------------------------------------- Net income (loss) $58 $22 $14 $23 $21 ($6) ===============================================================
For the Year-to-Date Period Ended ----------------------------------------------- June 30, December 31, September 30, June 30, Auto 2004 2003 2003 2003 ------------------------------------------------------------------------------------------------------------------ REVENUES Earned premiums $1,080 $2,155 $1,610 $1,065 Investment income, net 70 109 83 56 Other revenues 11 25 20 13 --------------------------------------- ------- 1,161 2,289 1,713 1,134 ------------------------------------------------ EXPENSES Losses 647 1,429 1,072 713 Loss adjustment expense 135 280 204 143 Other expenses 274 531 405 274 ------------------------------------------------ 1,056 2,240 1,681 1,130 ------------------------------------------------ Operating earnings (loss) before provision (benefit) for income taxes 105 49 32 4 Provision (benefit) for income taxes 22 (10) (8) (13) ------------------------------------------------ OPERATING EARNINGS (LOSS) $83 $59 $40 $17 ------------------------------------------------ Net investment-related gains (losses), net of income taxes (3) (7) (2) (2) ------------------------------------------------ Net income (loss) $80 $52 $38 $15 ================================================
36 (METLIFE LOGO) - -------------------------------------------------------------------------------- AUTO & HOME OPERATIONS STATEMENTS OF OPERATING EARNINGS - PRODUCT LEVEL UNAUDITED (DOLLARS IN MILLIONS)
For the Three Months Ended ---------------------------------------------------------------------- June 30, March 31, December 31, September 30, June 30, March 31, Homeowners 2004 2004 2003 2003 2003 2003 - ----------------------------------------------------------------------------------------------------------------------------------- REVENUES Earned premiums $185 $182 $183 $177 $173 $167 Investment income, net 9 9 11 12 10 10 Other revenues 1 1 2 1 2 1 ---------------------------------------------------------------------- 195 192 196 190 185 178 ---------------------------------------------------------------------- EXPENSES Losses 106 89 82 95 96 76 Loss adjustment expense 19 18 12 16 13 8 Other expenses 54 52 52 52 50 48 ---------------------------------------------------------------------- 179 159 146 163 159 132 ---------------------------------------------------------------------- Operating earnings before provision for income taxes 16 33 50 27 26 46 Provision for income taxes 4 11 16 8 6 14 ---------------------------------------------------------------------- OPERATING EARNINGS $12 $22 $34 $19 $20 $32 ---------------------------------------------------------------------- Net investment-related gains (losses), net of income taxes 0 0 (2) 1 (1) (1) ---------------------------------------------------------------------- Net income $12 $22 $32 $20 $19 $31 ======================================================================
For the Year-to-Date Period Ended --------------------------------------------------- June 30, December 31, September 30, June 30, Homeowners 2004 2003 2003 2003 - ---------------------------------------------------------------------------------------------------------------- REVENUES Earned premiums $367 $700 $517 $340 Investment income, net 18 43 32 20 Other revenues 2 6 4 3 --------------------------------------------------- 387 749 553 363 --------------------------------------------------- EXPENSES Losses $195 $349 $267 $172 Loss adjustment expense 37 49 37 21 Other expenses 106 202 150 98 --------------------------------------------------- 338 600 454 291 --------------------------------------------------- Operating earnings before provision for income taxes $49 $149 $99 $72 Provision for income taxes 15 44 28 20 --------------------------------------------------- OPERATING EARNINGS $34 $105 $71 $52 --------------------------------------------------- Net investment-related gains (losses), net of income taxes 0 (3) (1) (2) --------------------------------------------------- Net income $34 $102 $70 $50 ===================================================
37 (METLIFE LOGO) - -------------------------------------------------------------------------------- AUTO & HOME OPERATIONS STATEMENTS OF OPERATING EARNINGS - PRODUCT LEVEL UNAUDITED (DOLLARS IN MILLIONS)
For the Three Months Ended ---------------------------------------------------------------------- June 30, March 31, December 31, September 30, June 30, March 31, Other 2004 2004 2003 2003 2003 2003 - ----------------------------------------------------------------------------------------------------------------------------------- REVENUES Earned premiums $11 $13 $12 $13 $13 $15 Investment income, net 1 1 2 0 2 2 Other revenues 0 2 2 2 (5) 2 ---------------------------------------------------------------------- 12 16 16 15 10 19 ---------------------------------------------------------------------- EXPENSES Losses 11 6 8 11 3 10 Loss adjustment expense 0 0 1 1 0 (1) Other expenses 4 7 6 4 5 8 ---------------------------------------------------------------------- 15 13 15 16 8 17 ---------------------------------------------------------------------- Operating earnings (loss) before provision (benefit) for income taxes (3) 3 1 (1) 2 2 Provision (benefit) for income taxes (1) 1 1 (1) 1 0 ---------------------------------------------------------------------- OPERATING EARNINGS ($2) $2 $0 $0 $1 $2 ---------------------------------------------------------------------- Net investment-related gains (losses), net of income taxes 0 0 0 0 0 0 ---------------------------------------------------------------------- Net income (loss) ($2) $2 $0 $0 $1 $2 ======================================================================
For the Year-to-Date Period Ended ------------------------------------------------ June 30, December 31, September 30, June 30, Other 2004 2003 2003 2003 - ------------------------------------------------------------------------------------------------------------- REVENUES Earned premiums $24 $53 $41 $28 Investment income, net 2 6 4 4 Other revenues 2 1 (1) (3) ------------------------------------------------ 28 60 44 29 ------------------------------------------------ EXPENSES Losses $17 $32 $24 $13 Loss adjustment expense 0 1 0 (1) Other expenses 11 23 17 13 ------------------------------------------------ 28 56 41 25 ------------------------------------------------ Operating earnings (loss) before provision (benefit) for income taxes $0 $4 $3 $4 Provision (benefit) for income taxes 0 1 0 1 ------------------------------------------------ OPERATING EARNINGS $0 $3 $3 $3 ------------------------------------------------ Net investment-related gains (losses), net of income taxes 0 0 0 0 ------------------------------------------------ Net income (loss) $0 $3 $3 $3 ================================================
38 (METLIFE LOGO) - -------------------------------------------------------------------------------- AUTO & HOME OPERATIONS WRITTEN PREMIUMS BY PRODUCT AND SELECTED FINANCIAL INFORMATION AND SUPPLEMENTAL DATA
For the Three Months Ended --------------------------------------------------------------------------- June 30, March 31, December 31, September 30, June 30, March 31, Unaudited (Dollars in millions) 2004 2004 2003 2003 2003 2003 - ------------------------------------------------------------------------------------------------------------------------------------ WRITTEN PREMIUMS BY PRODUCT Preferred/Standard Automobile $521 $517 $514 $538 $524 $505 Non-Standard Automobile 19 21 21 23 23 24 Homeowners 199 155 183 204 192 149 Other 9 20 9 11 12 20 --------------------------------------------------------------------------- Total $748 $713 $727 $776 $751 $698 =========================================================================== SELECTED FINANCIAL INFORMATION AND SUPPLEMENTAL DATA TOTAL AUTO & HOME Loss and loss adjustment expense ratio 67.5% 72.7% 72.2% 73.8% 73.2% 75.0% Other expense ratio 25.6% 26.1% 25.1% 25.5% 25.6% 28.0% --------------------------------------------------------------------------- Total combined ratio (1) 93.1% 98.8% 97.3% 99.3% 98.8% 103.0% Effect of catastrophe losses 5.0% 2.3% 1.9% 3.4% 3.2% 1.8% --------------------------------------------------------------------------- Combined ratio excluding catastrophes 88.1% 96.5% 95.4% 95.9% 95.6% 101.2% =========================================================================== AUTO Loss and loss adjustment expense ratio 66.9% 78.1% 79.3% 77.0% 77.5% 83.3% Other expense ratio 24.3% 24.8% 23.5% 24.1% 24.2% 27.2% --------------------------------------------------------------------------- Total combined ratio (1) 91.2% 102.9% 102.8% 101.1% 101.7% 110.5% Effect of catastrophe losses 1.1% 0.1% 0.5% 0.2% 1.2% 0.2% --------------------------------------------------------------------------- Combined ratio excluding catastrophes 90.1% 102.8% 102.3% 100.9% 100.5% 110.3% =========================================================================== HOMEOWNERS Loss and loss adjustment expense ratio 67.3% 58.7% 51.4% 62.3% 63.4% 50.2% Other expense ratio 28.8% 28.2% 28.7% 29.3% 29.2% 28.5% --------------------------------------------------------------------------- Total combined ratio (1) 96.1% 86.9% 80.1% 91.6% 92.6% 78.7% Effect of catastrophe losses 16.6% 9.0% 6.3% 13.4% 9.7% 6.9% --------------------------------------------------------------------------- Combined ratio excluding catastrophes 79.5% 77.9% 73.8% 78.2% 82.9% 71.8% =========================================================================== OTHER Loss and loss adjustment expense ratio 100.9% 44.6% 68.4% 99.5% 24.1% 57.7% Other expense ratio 35.4% 50.7% 42.7% 34.2% 38.8% 52.0% --------------------------------------------------------------------------- Total combined ratio (1) 136.3% 95.3% 111.1% 133.7% 62.9% 109.7% Effect of catastrophe losses 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% --------------------------------------------------------------------------- Combined ratio excluding catastrophes 136.3% 95.3% 111.1% 133.7% 62.9% 109.7% =========================================================================== PRE-TAX CATASTROPHE LOSSES Auto $6 $0 $3 $1 $7 $1 Homeowners 31 16 12 24 17 12 Other 0 0 0 0 0 0 --------------------------------------------------------------------------- Total $37 $16 $15 $25 $24 $13 =========================================================================== Catastrophe points on combined ratios 5.0 2.3 1.9 3.4 3.2 1.8
(1) For the three months ended June 30, 2004 and March 31, 2004 the combined ratio reflects payment fees as a credit to Other Expenses, which resulted in a 0.7 and 0.8 of a percentage point decrease in the combined ratio for the periods ended, respectively. The decreases for Auto, Homeowners & Other were 0.8, 0.5 and 0.6 of a percentage point, respectively, for June 30, 2004 and 0.9, 0.5 and 0.4 of a percentage point, respectively, for March 31, 2004. 39 (METLIFE LOGO) - -------------------------------------------------------------------------------- INTERNATIONAL OPERATIONS STATEMENTS OF OPERATING EARNINGS
For the Three Months Ended ------------------------------------------------------------------------ June 30, March 31, December 31, September 30, June 30, March 31, Unaudited (Dollars in millions) 2004 2004 2003 2003 2003 2003 - --------------------------------------------------------------------------------------------------------------------------- REVENUES Premiums $405 $412 $448 $445 $390 $395 Universal life and investment-type product policy fees 86 83 80 70 71 51 Investment income, net 137 123 129 119 131 123 Other revenues 8 4 26 20 26 8 ----------------------------------------------------------------------- 636 622 683 654 618 577 ----------------------------------------------------------------------- EXPENSES Policyholder benefits and dividends 413 388 428 410 294 377 Interest credited to policyholder account balances 32 37 36 34 36 37 Capitalization of deferred policy acquisition costs (93) (71) (90) (72) (59) (66) Amortization of deferred policy acquisition costs 36 31 73 41 77 34 Other expenses 194 172 204 187 177 153 ----------------------------------------------------------------------- 582 557 651 600 525 535 ----------------------------------------------------------------------- Operating earnings before provision (benefit) for income taxes 54 65 32 54 93 42 Provision (benefit) for income taxes 13 21 (2) 17 (9) 14 ----------------------------------------------------------------------- OPERATING EARNINGS $41 $44 $34 $37 $102(3) $28 ======================================================================= NET INCOME RECONCILIATION - ------------------------- Operating earnings $41 $44 $34 $37 $102 $28 Net investment-related gains (losses) (2) 26 0 8 (1) 0 Minority interest - net investment- related gains (losses) 0 0 0 0 0 0 Adjustments to net investment-related gains (losses) (1) 49 3 (3) 0 0 0 Net investment-related gains (losses) tax benefit (provision) (18) (7) 0 6 (3) 0 ----------------------------------------------------------------------- Net investment-related gains (losses), net of income taxes 29 22 (3) 14 (4) 0 Cumulative effect of a change in accounting, net of income taxes (2) 0 (30) 0 0 0 0 ----------------------------------------------------------------------- Net income $70 $36 $31 $51 $98 $28 =======================================================================
For the Year-to-Date Period Ended ------------------------------------------------- June 30, December 31, September 30, June 30, Unaudited (Dollars in millions) 2004 2003 2003 2003 - --------------------------------------------------------------------------------------------------- REVENUES Premiums $817 $1,678 $1,230 $785 Universal life and investment-type product policy fees 169 272 192 122 Investment income, net 260 502 373 254 Other revenues 12 80 54 34 ------------------------------------------------- 1,258 2,532 1,849 1,195 ------------------------------------------------- EXPENSES Policyholder benefits and dividends 801 1,509 1,081 671 Interest credited to policyholder account balances 69 143 107 73 Capitalization of deferred policy acquisition costs (164) (287) (197) (125) Amortization of deferred policy acquisition costs 67 225 152 111 Other expenses 366 721 517 330 ------------------------------------------------- 1,139 2,311 1,660 1,060 ------------------------------------------------- Operating earnings before provision (benefit) for income taxes 119 221 189 135 Provision (benefit) for income taxes 34 20 22 5 ------------------------------------------------- OPERATING EARNINGS $85 $201 $167 $130(3) ================================================= NET INCOME RECONCILIATION - ------------------------- Operating earnings $85 $201 $167 $130 Net investment-related gains (losses) 24 7 7 (1) Minority interest - net investment- related gains (losses) 0 0 0 0 Adjustments to net investment-related gains (losses) (1) 52 (3) 0 0 Net investment-related gains (losses) tax benefit (provision) (25) 3 3 (3) ------------------------------------------------- Net investment-related gains (losses), net of income taxes 51 7 10 (4) Cumulative effect of a change in accounting, net of income taxes (2) (30) 0 0 0 ------------------------------------------------- Net income $106 $208 $177 $126 =================================================
(1) Adjustments to net investment-related gains (losses) include amortization of deferred policy acquisition costs and amounts allocable to certain participating contracts. (2) The cumulative effect of a change in accounting, net of income taxes, for the period ended March 31, 2004, is in accordance with AICPA Statement of Position 03-1, Accounting and Reporting by Insurance Enterprises for Certain Nontraditional Long-Duration Contracts and for Separate Accounts. (3) Operating earnings for the period ended June 30, 2003 includes $62 million of after-tax earnings from the merger of the Company's Mexican operations and a reduction in policyholder liabilities resulting from a change in reserve methodology. 40 (METLIFE LOGO) - -------------------------------------------------------------------------------- REINSURANCE OPERATIONS STATEMENTS OF OPERATING EARNINGS
For the Three Months Ended ------------------------------------------------------------------------ June 30, March 31, December 31, September 30, June 30, March 31, Unaudited (Dollars in millions) 2004 2004 2003 2003 2003 2003 - --------------------------------------------------------------------------------------------------------------------------- REVENUES Premiums, net $807 $816 $949 $579 $588 $552 Investment income, net 136 130 120 122 121 110 Other revenues 15 12 14 11 12 12 ------------------------------------------------------------------------ 958 958 1,083 712 721 674 ------------------------------------------------------------------------ EXPENSES Claims and other policy benefits 651 659 788 470 466 433 Interest credited to policyholder account balances 52 51 49 47 45 43 Policy acquisition costs and other insurance expenses 133 139 130 112 116 108 Other expenses 46 45 54 33 38 36 ------------------------------------------------------------------------ 882 894 1,021 662 665 620 ------------------------------------------------------------------------ Operating earnings before provision for income taxes and minority interest 76 64 62 50 56 54 Provision for income taxes 13 9 11 9 11 10 ------------------------------------------------------------------------ Operating earnings before minority interest 63 55 51 41 45 44 Elimination of minority interest, before tax 40 37 31 23 26 24 ------------------------------------------------------------------------ CONTRIBUTION TO METLIFE $23 $18 $20 $18 $19 $20 ======================================================================== NET INCOME RECONCILIATION - ------------------------- Operating earnings $23 $18 $20 $18 $19 $20 Net investment-related gains (losses) 32 21 25 5 5 (4) Minority interest - net investment- related gains (losses) (8) (8) (9) (2) (2) 4 Adjustments to net investment-related gains (losses) (1) (13) (4) 0 0 0 0 Net investment-related gains (losses) tax benefit (provision) (4) (3) (5) (2) 0 0 ------------------------------------------------------------------------ Net investment-related gains (losses), net of income taxes 7 6 11 1 3 0 Cumulative effect of a change in accounting, net of income taxes (2) 0 3 0 0 0 0 ------------------------------------------------------------------------ Net income $30 $27 $31 $19 $22 $20 ========================================================================
For the Year-to-Date Period Ended ----------------------------------------------- June 30, December 31, September 30, June 30, Unaudited (Dollars in millions) 2004 2003 2003 2003 - ------------------------------------------------------------------------------------------------- REVENUES Premiums, net $1,623 $2,668 $1,719 $1,140 Investment income, net 266 473 353 231 Other revenues 27 49 35 24 ----------------------------------------------- 1,916 3,190 2,107 1,395 ----------------------------------------------- EXPENSES Claims and other policy benefits 1,310 2,157 1,369 899 Interest credited to policyholder account balances 103 184 135 88 Policy acquisition costs and other insurance expenses 272 466 336 224 Other expenses 91 161 107 74 ----------------------------------------------- 1,776 2,968 1,947 1,285 ----------------------------------------------- Operating earnings before provision for income taxes and minority interest 140 222 160 110 Provision for income taxes 22 41 30 21 ----------------------------------------------- Operating earnings before minority interest 118 181 130 89 Elimination of minority interest, before tax 77 104 73 50 ----------------------------------------------- CONTRIBUTION TO METLIFE $41 $77 $57 $39 =============================================== NET INCOME RECONCILIATION - ------------------------ Operating earnings $41 $77 $57 $39 Net investment-related gains (losses) 53 31 6 1 Minority interest - net investment- related gains (losses) (16) (9) 0 2 Adjustments to net investment-related gains (losses) (1) (17) 0 0 0 Net investment-related gains (losses) tax benefit (provision) (7) (7) (2) 0 ----------------------------------------------- Net investment-related gains (losses), net of income taxes 13 15 4 3 Cumulative effect of a change in accounting, net of income taxes (2) 3 0 0 0 ----------------------------------------------- Net income $57 $92 $61 $42 ===============================================
(1) Adjustments to net investment-related gains (losses) include amortization of deferred policy acquisition costs. (2) The cumulative effect of a change in accounting, net of income taxes, for the period ended March 31, 2004, is in accordance with AICPA Statement of Position 03-1, Accounting and Reporting by Insurance Enterprises for Certain Nontraditional Long-Duration Contracts and for Separate Accounts. 41 (METLIFE LOGO) - -------------------------------------------------------------------------------- REINSURANCE OPERATIONS PRE-TAX AND PRE-MINORITY INTEREST OPERATING EARNINGS BY REGION AND RESERVES BY REGION
For the Three Months Ended ------------------------------------------------------------------------------- June 30, March 31, December 31, September 30, June 30, March 31, Unaudited (Dollars in millions) 2004 2004 2003 2003 2003 2003 - ---------------------------------------------------------------------------------------------------------------------------------- PRE-TAX AND PRE-MINORITY INTEREST OPERATING EARNINGS BY REGION United States $60 $52 $52 $38 $49 $45 Canada 15 16 14 13 12 11 Latin America 0 0 0 0 0 0 Asia-Pacific 5 6 7 7 4 2 Other international markets 11 3 8 3 3 2 Corporate (15) (13) (19) (11) (12) (6) ------------------------------------------------------------------------------- Total pre-tax and pre-minority interest operating earnings $76 $64 $62 $50 $56 $54 =============================================================================== POLICY BENEFITS AND INTEREST SENSITIVE CONTRACT LIABILITIES BY REGION Traditional U.S. $4,385 $4,636 $4,386 $3,743 $3,721 $3,653 Asset intensive 3,645 3,343 3,201 3,029 2,918 2,718 Other 125 120 112 113 110 112 ------------------------------------------------------------------------------- Total U.S. 8,155 8,099 7,699 6,885 6,749 6,483 ------------------------------------------------------------------------------- Canada 1,167 1,151 1,270 1,049 1,049 972 Latin America 0 0 0 0 0 0 Asia-Pacific 357 420 409 376 344 302 Other international markets 497 499 405 368 316 271 ------------------------------------------------------------------------------- Total International 2,021 2,070 2,084 1,793 1,709 1,545 ------------------------------------------------------------------------------- Total policy benefits and interest sensitive contract liabilities $10,176 $10,169 $9,783 $8,678 $8,458 $8,028 ===============================================================================
42 (METLIFE LOGO) - -------------------------------------------------------------------------------- ASSET MANAGEMENT OPERATIONS STATEMENTS OF OPERATING EARNINGS UNAUDITED (DOLLARS IN MILLIONS)
For the Three Months Ended ------------------------------------------------------------------------ June 30, March 31, December 31, September 30, June 30, March 31, Asset Management Operations 2004 2004 2003 2003 2003 2003 - --------------------------------------------------------------------------------------------------------------------------- REVENUES Investment and advisory service fees Mutual funds $23 $22 $20 $20 $17 $16 MetLife and affiliates separately managed accounts 9 9 9 9 9 9 Third party client separate accounts 44 13 16 13 16 10 Other revenues 15 14 13 11 11 10 ------------------------------------------------------------------------ 91 58 58 53 53 45 ------------------------------------------------------------------------ EXPENSES Employee compensation and benefits 36 21 22 21 20 22 Promoting and servicing 12 8 11 6 7 7 General and administrative 17 20 15 20 17 14 ------------------------------------------------------------------------ 65 49 48 47 44 43 ------------------------------------------------------------------------ Operating earnings before provision for income taxes 26 9 10 6 9 2 Provision for income taxes 10 4 4 2 4 1 ------------------------------------------------------------------------ OPERATING EARNINGS $16 $5 $6 $4 $5 $1 ======================================================================== NET INCOME RECONCILIATION - ------------------------- Operating earnings $16 $5 $6 $4 $5 $1 Net investment-related gains (losses) 0 0 (1) 2 0 8 Minority interest - net investment-related gains (losses) 0 0 0 0 0 0 Adjustments to net investment-related gains (losses) 0 0 0 0 0 0 Net investment-related gains (losses) tax benefit (provision) 0 0 0 0 0 (3) ------------------------------------------------------------------------ Net investment-related gains (losses), net of income taxes 0 0 (1) 2 0 5 ------------------------------------------------------------------------ Net income $16 $5 $5 $6 $5 $6 ========================================================================
For the Year-to-Date Period Ended ------------------------------------------------- June 30, December 31, September 30, June 30, Asset Management Operations 2004 2003 2003 2003 - --------------------------------------------------------------------------------------------------- REVENUES Investment and advisory service fees Mutual funds $45 $73 $53 $33 MetLife and affiliates separately managed accounts 18 36 27 18 Third party client separate accounts 57 55 39 26 Other revenues 29 45 32 21 ------------------------------------------------- 149 209 151 98 ------------------------------------------------- EXPENSES Employee compensation and benefits 57 85 63 42 Promoting and servicing 20 31 20 14 General and administrative 37 66 51 31 ------------------------------------------------- 114 182 134 87 ------------------------------------------------- Operating earnings before provision for income taxes 35 27 17 11 Provision for income taxes 14 11 7 5 ------------------------------------------------- OPERATING EARNINGS $21 $16 $10 $6 ================================================= NET INCOME RECONCILIATION - ------------------------ Operating earnings $21 $16 $10 $6 Net investment-related gains (losses) 0 9 10 8 Minority interest - net investment-related gains (losses) 0 0 0 0 Adjustments to net investment-related gains (losses) 0 0 0 0 Net investment-related gains (losses) tax benefit (provision) 0 (3) (3) (3) ------------------------------------------------- Net investment-related gains (losses), net of income taxes 0 6 7 5 ------------------------------------------------- Net income $21 $22 $17 $11 ==================================================
43 (METLIFE LOGO) - -------------------------------------------------------------------------------- ASSET MANAGEMENT OPERATIONS CHANGE IN ASSETS UNDER MANAGEMENT AND COMPOSITION OF ASSETS UNDER MANAGEMENT
At or for the Three Months Ended ----------------------------------------------------------------------------------- June 30, March 31, December 31, September 30, June 30, March 31, Unaudited (Dollars in millions) 2004 2004 2003 2003 2003 2003 - --------------------------------------------------------------------------------------------------------------------------------- CHANGE IN ASSETS Beginning assets $50,443 $47,518 $45,711 $46,130 $43,552 $44,577 Contributions 3,266 3,183 1,983 1,190 1,564 1,004 Redemptions (1,713) (1,798) (2,215) (2,039) (2,040) (2,063) Market appreciation (269) 1,540 2,039 430 3,054 34 ----------------------------------------------------------------------------------- Ending Carrying Value $51,727 $50,443 $47,518 $45,711 $46,130 $43,552 =================================================================================== ASSETS UNDER MANAGEMENT STATE STREET RESEARCH MetLife Separate Account $16,695 $17,307 $16,762 $17,244 $17,499 $17,160 MetLife Retail Funds 7,958 7,394 7,362 6,894 6,759 5,618 Third Party Individual and Retail Funds 10,112 9,819 9,255 8,140 7,854 6,966 Third Party Institutional 16,962 15,923 14,139 13,433 14,018 13,808 ----------------------------------------------------------------------------------- Total State Street Research $51,727 $50,443 $47,518 $45,711 $46,130 $43,552 ===================================================================================
44 (METLIFE LOGO) - -------------------------------------------------------------------------------- CORPORATE, OTHER & ELIMINATIONS STATEMENTS OF OPERATING EARNINGS
For the Three Months Ended ------------------------------------------------------------------------ June 30, March 31, December 31, September 30, June 30, March 31, Unaudited (Dollars in millions) 2004 2004 2003 2003 2003 2003 - --------------------------------------------------------------------------------------------------------------------------- REVENUES Premiums ($4) ($1) ($5) ($4) ($5) ($4) Universal life and investment-type product policy fees 0 0 0 0 0 0 Investment income, net 145 67 77 64 42 69 Other revenues (7) 7 (6) 18 15 12 ------------------------------------------------------------------------ 134 73 66 78 52 77 ------------------------------------------------------------------------ EXPENSES Policyholder benefits and dividends 2 2 0 2 0 2 Interest credited to policyholder account balances 0 0 0 0 0 0 Interest expense 88 78 91 77 88 94 Other expenses 82 38 21 (30) (65) 24 ------------------------------------------------------------------------ 172 118 112 49 23 120 ------------------------------------------------------------------------ Operating earnings before (benefit) provision for income taxes (38) (45) (46) 29 29 (43) Benefit for income taxes (28) (27) (48) (51) (12) (31) ------------------------------------------------------------------------ OPERATING EARNINGS (LOSS) ($10)(2) ($18) $2 $80(3) $41(4) ($12) ======================================================================== NET INCOME (LOSS) RECONCILIATION - -------------------------------- Operating earnings (loss) ($10) ($18) $2 $80 $41 ($12) Net investment-related gains (losses) 83 4 420 (32) (36) (33) Minority interest-net investment-related gains (losses) 0 0 0 0 0 0 Adjustments to net investment-related gains (losses) (1) 0 0 (48) 0 0 0 Net investment-related gains (losses) tax benefit (provision) (31) (2) (140) 25 11 10 ------------------------------------------------------------------------ Net investment-related gains (losses), net of income taxes 52 2 232 (7) (25) (23) Cumulative effect of a change in accounting, net of income taxes 0 (1) 0 0 0 0 ------------------------------------------------------------------------ Net income (loss) $42 ($17) $234 $73 $16 ($35) ========================================================================
For the Year-to-Date Period Ended ------------------------------------------------- June 30, December 31, September 30, June 30, Unaudited (Dollars in millions) 2004 2003 2003 2003 - --------------------------------------------------------------------------------------------------- REVENUES Premiums ($5) ($18) ($13) ($9) Universal life and investment-type product policy fees 0 0 0 0 Investment income, net 212 252 175 111 Other revenues 0 39 45 27 ------------------------------------------------- 207 273 207 129 ------------------------------------------------- EXPENSES Policyholder benefits and dividends 4 4 4 2 Interest credited to policyholder account balances 0 0 0 0 Interest expense 166 350 259 182 Other expenses 120 (50) (71) (41) ------------------------------------------------- 290 304 192 143 ------------------------------------------------- Operating earnings before (benefit) provision for income taxes (83) (31) 15 (14) Benefit for income taxes (55) (142) (94) (43) ------------------------------------------------- OPERATING EARNINGS (LOSS) ($28)(2) $111 $109(3) $29(4) ================================================= NET INCOME (LOSS) RECONCILIATION - -------------------------------- Operating earnings (loss) ($28) $111 $109 $29 Net investment-related gains (losses) 87 319 (101) (69) Minority interest-net investment-related gains (losses) 0 0 0 0 Adjustments to net investment-related gains (losses) (1) 0 (48) 0 0 Net investment-related gains (losses) tax benefit (provision) (33) (94) 46 21 ------------------------------------------------- Net investment-related gains (losses), net of income taxes 54 177 (55) (48) Cumulative effect of a change in accounting, net of income taxes (1) 0 0 0 ------------------------------------------------- Net income (loss) $25 $288 $54 ($19) =================================================
(1) Adjustments to net investment-related gains (losses) include amounts allocable to certain participating contracts. (2) Operating earnings for the period ended June 30, 2004 includes a $32 million after-tax charge from a contribution to the MetLife Foundation made by Metropolitan Life Insurance Company. (3) Operating earnings for the period ended September 30, 2003 includes a $28 million after-tax benefit from a reduction of a previously established liability related to the Company's race-conscious underwriting settlement and a $36 million benefit from a revision of the estimate of income taxes for 2002. (4) Operating earnings for the period ended June 30, 2003 includes a $64 million after-tax benefit from a reduction of a previously established liability related to the Company's race-conscious underwriting settlement. 45 (METLIFE LOGO) - -------------------------------------------------------------------------------- METLIFE, INC. INVESTMENT RESULTS BY ASSET CATEGORY AND ANNUALIZED YIELDS
At or for the Three Months Ended ---------------------------------------------------------------------------------------- June 30, March 31, December 31, September 30, June 30, March 31, Unaudited (Dollars in millions) 2004 2004 2003 2003 2003 2003 - --------------------------------------------------------------------------------------------------------------------------------- FIXED MATURITIES (1) Yield (2) 6.64% 6.62% 6.92% 6.83% 6.87% 7.01% Income $2,291 $2,232 $2,245 $2,140 $2,073 $2,044 Investment-related gains (losses) ($3) $34 ($183) ($23) ($43) ($149) Ending Carrying Value $170,192 $174,100 $167,752 $159,940 $158,822 $144,341 MORTGAGE LOANS Yield (3) 6.83% 6.81% 7.61% 7.37% 7.50% 7.51% Income $468 $449 $493 $468 $472 $470 Investment-related gains (losses) $0 $0 $2 ($36) ($8) ($14) Ending Carrying Value $28,118 $26,562 $26,249 $25,535 $25,289 $25,046 REAL ESTATE AND REAL ESTATE JOINT VENTURES Yield (3) 13.36% 11.85% 11.06% 10.14% 11.20% 11.16% Income (4) $148 $139 $137 $124 $125 $127 Investment-related gains (losses) (5) $133 $21 $344 $10 ($6) $92 Ending Carrying Value $4,154 $4,699 $4,680 $5,255 $4,491 $4,475 POLICY LOANS Yield (3) 6.13% 6.12% 6.15% 6.54% 6.46% 6.47% Income $134 $134 $135 $141 $139 $139 Ending Carrying Value $8,766 $8,758 $8,749 $8,668 $8,627 $8,615 EQUITY SECURITIES AND OTHER LIMITED PARTNERSHIP INTERESTS (1) Yield (3) 10.27% 3.03% 3.80% (1.26%) 3.62% 6.11% Income $100 $29 $36 ($11) $32 $54 Investment-related gains (losses) $87 $0 $33 ($6) $1 ($71) Ending Carrying Value $4,549 $4,305 $4,198 $4,218 $4,117 $3,867 CASH AND SHORT-TERM INVESTMENTS (1) Yield (3) 2.37% 2.67% 1.67% 1.95% 2.23% 4.57% Income $30 $30 $24 $35 $42 $64 Investment-related gains (losses) $0 $0 $5 $0 $0 ($4) Ending Carrying Value $6,548 $5,144 $5,559 $8,090 $8,354 $8,126 OTHER INVESTED ASSETS (6) Yield (3) 5.10% 5.60% 7.78% 9.32% 8.47% 8.45% Income $55 $57 $74 $84 $69 $63 Investment-related gains (losses) $51 $82 $76 ($57) $2 $14 Ending Carrying Value $5,119 $5,094 $4,645 $4,617 $4,261 $3,948 TOTAL INVESTMENTS Gross investment income yield 6.73% 6.57% 6.88% 6.66% 6.82% 7.10% Investment fees and expenses yield (0.13%) (0.14%) (0.16%) (0.15%) (0.14%) (0.15%) ---------------------------------------------------------------------------------------- NET INVESTMENT INCOME YIELD 6.60% 6.43% 6.72% 6.51% 6.68% 6.95% ======================================================================================== Gross investment income $3,226 $3,070 $3,144 $2,981 $2,952 $2,961 Investment fees and expenses (61) (64) (74) (67) (63) (62) ---------------------------------------------------------------------------------------- NET INVESTMENT INCOME $3,165 $3,006 $3,070 $2,914 $2,889 $2,899 ======================================================================================== Ending Carrying Value $227,446 $228,662 $221,832 $216,323 $213,961 $198,418 ======================================================================================== Gross investment gains (7) $411 $243 $564 $153 $137 $221 Gross investment losses (7) (126) (85) (280) (106) (85) (89) Writedowns (77) (12) (73) (89) (103) (268) ---------------------------------------------------------------------------------------- Subtotal 208 146 211 (42) (51) (136) Derivative instruments not qualifying for hedge accounting (7) (51) (23) (72) (109) (3) (34) ---------------------------------------------------------------------------------------- NET INVESTMENT-RELATED GAINS (LOSSES) 157 123 139 (151) (54) (170) Adjustments to net investment-related gains (losses)(7)(8) 111 14 138 39 0 38 Minority interest - net investment-related gains (losses) (8) (8) (9) (2) (2) 4 Net investment-related gains (losses) tax benefit (provision) (86) (44) (106) 72 16 44 ---------------------------------------------------------------------------------------- NET INVESTMENT-RELATED GAINS (LOSSES), NET OF INCOME TAXES $174 $85 $162 ($42) ($40) ($84) ========================================================================================
(1) Included in ending assets, investment income and investment-related gains (losses) is $2,290 million, $22 million, and $55 million, respectively, related to the consolidation of separate accounts under SOP 03-1 for the three months ended June 30, 2004. (2) The fixed maturity yield is annualized and is based on quarterly average amortized cost. (3) Yields are annualized and based on quarterly average carrying values. (4) Included in income from real estate and real estate joint ventures is $25 million, $18 million, $23 million, $23 million, $12 million, and $18 million related to discontinued operations for the three months ended June 30, 2004, March 31, 2004, December 31, 2003, September 30, 2003, June 30, 2003, and March 31, 2003, respectively. (5) Included in investment-related gains (losses) from real estate and real estate joint ventures is $131 million, $21 million, $323 million, $7 million, $0 million, and $90 million related to discontinued operations for the three months ended June 30, 2004, March 31, 2004, December 31, 2003, September 30, 2003, June 30, 2003, and March 31, 2003, respectively. (6) Included in invested income from other invested assets are scheduled settlement payments on derivative instruments that do not qualify for hedge accounting under SFAS 133 of $22 million, $14 million, $29 million, $35 million, $12 million, and $8 million for the three months ended June 30, 2004, March 31, 2004, December 31, 2003, September 30, 2003, June 30, 2003, and March 31, 2003, respectively. These amounts are excluded from net investment-related gains (losses) in other invested assets. (7) Certain amounts in prior periods presented have been reclassified/restated to conform with current period presentation. (8) Adjustments to net investment-related gains (losses) include amortization of deferred policy acquisition costs, adjustments to the policyholder dividend obligation, and amounts allocable to certain participating contracts. 46 (METLIFE LOGO) - -------------------------------------------------------------------------------- METLIFE, INC. INVESTMENT RESULTS BY ASSET CATEGORY AND ANNUALIZED YIELDS
At or for the Year-to-date ---------------------------------------------------------------------------------------- June 30, March 31, December 31, September 30, June 30, March 31, Unaudited (Dollars in millions) 2004 2004 2003 2003 2003 2003 - --------------------------------------------------------------------------------------------------------------------------------- FIXED MATURITIES (1) Yield (2) 6.64% 6.62% 6.89% 6.89% 6.91% 7.01% Income $4,523 $2,232 $8,502 $6,257 $4,117 $2,044 Investment-related gains (losses) $31 $34 ($398) ($215) ($192) ($149) Ending Carrying Value $170,192 $174,100 $167,752 $159,940 $158,822 $144,341 MORTGAGE LOANS Yield (3) 6.80% 6.81% 7.48% 7.45% 7.50% 7.51% Income $917 $449 $1,903 $1,410 $942 $470 Investment-related gains (losses) $0 $0 ($56) ($58) ($22) ($14) Ending Carrying Value $28,118 $26,562 $26,249 $25,535 $25,289 $25,046 REAL ESTATE AND REAL ESTATE JOINT VENTURES Yield (3) 12.71% 11.85% 10.90% 10.63% 11.14% 11.16% Income (4) $287 $139 $513 $376 $252 $127 Investment-related gains (losses) (5) $154 $21 $440 $96 $86 $92 Ending Carrying Value $4,154 $4,699 $4,680 $5,255 $4,491 $4,475 POLICY LOANS Yield (3) 6.12% 6.12% 6.40% 6.49% 6.47% 6.47% Income $268 $134 $554 $419 $278 $139 Ending Carrying Value $8,766 $8,758 $8,749 $8,668 $8,627 $8,615 EQUITY SECURITIES AND OTHER LIMITED PARTNERSHIP INTERESTS (1) Yield (3) 6.70% 3.03% 3.02% 2.73% 4.80% 6.11% Income $129 $29 $111 $75 $86 $54 Investment-related gains (losses) $87 $0 ($43) ($76) ($70) ($71) Ending Carrying Value $4,549 $4,305 $4,198 $4,218 $4,117 $3,867 CASH AND SHORT-TERM INVESTMENTS (1) Yield (3) 2.45% 2.67% 2.73% 2.93% 3.40% 4.57% Income $60 $30 $165 $141 $106 $64 Investment-related gains (losses) $0 $0 $1 ($4) ($4) ($4) Ending Carrying Value $6,548 $5,144 $5,559 $8,090 $8,354 $8,126 OTHER INVESTED ASSETS (6) Yield (3) 5.39% 5.60% 8.53% 8.75% 8.43% 8.45% Income $112 $57 $290 $216 $132 $63 Investment-related gains (losses) $133 $82 $35 ($41) $16 $14 Ending Carrying Value $5,119 $5,094 $4,645 $4,617 $4,261 $3,948 TOTAL INVESTMENTS Gross investment income yield 6.65% 6.57% 6.86% 6.85% 6.94% 7.10% Investment fees and expenses yield (0.13%) (0.14%) (0.15%) (0.15%) (0.15%) (0.15%) ---------------------------------------------------------------------------------------- NET INVESTMENT INCOME YIELD 6.52% 6.43% 6.71% 6.70% 6.79% 6.95% ======================================================================================== Gross investment income $6,296 $3,070 $12,038 $8,894 $5,913 $2,961 Investment fees and expenses (125) (64) (266) (192) (125) (62) ---------------------------------------------------------------------------------------- NET INVESTMENT INCOME $6,171 $3,006 $11,772 $8,702 $5,788 $2,899 ======================================================================================== Ending Carrying Value $227,446 $228,662 $221,832 $216,323 $213,961 $198,418 ======================================================================================== Gross investment gains (7) $654 $243 $1,075 $511 $358 $221 Gross investment losses (7) (211) (85) (560) (280) (174) (89) Writedowns (89) (12) (533) (460) (371) (268) ---------------------------------------------------------------------------------------- Subtotal 354 146 (18) (229) (187) (136) Derivative instruments not qualifying for hedge accounting (7) (74) (23) (218) (146) (37) (34) ---------------------------------------------------------------------------------------- NET INVESTMENT-RELATED GAINS (LOSSES) 280 123 (236) (375) (224) (170) Adjustments to net investment-related gains (losses) (7) (8) 125 14 215 77 38 38 Minority interest - net investment-related gains (losses) (16) (8) (9) 0 2 4 Net investment-related gains (losses) tax benefit (provision) (130) (44) 26 132 60 44 ---------------------------------------------------------------------------------------- NET INVESTMENT-RELATED GAINS (LOSSES), NET OF INCOME TAXES $259 $85 ($4) ($166) ($124) ($84) ========================================================================================
(1) Included in ending assets, investment income and investment-related gains (losses) is $2,290 million, $42 million, and $56 million, respectively, related to the consolidation of separate accounts under SOP 03-1 for year-to-date June 30, 2004. (2) The fixed maturity yield is annualized and is based on quarterly average amortized cost. (3) Yields are annualized and based on year-to-date average carrying values. (4) Included in income from real estate and real estate joint ventures is $43 million, $18 million, $76 million, $53 million, $30 million, and $18 million related to discontinued operations for year-to-date June 30, 2004, March 31, 2004, December 31, 2003, September 30, 2003, June 30, 2003, and March 31, 2003, respectively. (5) Included in investment-related gains (losses) from real estate and real estate joint ventures is $152 million, $21 million, $420 million, $97 million, $90 million, and $90 million related to discontinued operations for year-to-date June 30, 2004, March 31, 2004, December 31, 2003, September 30, 2003, June 30, 2003, and March 31, 2003, respectively. (6) Included in invested income from other invested assets are scheduled settlement payments on derivative instruments that do not qualify for hedge accounting under SFAS 133 of $36 million, $14 million, $84 million, $55 million, $20 million, and $8 million for year-to-date June 30, 2004, March 31, 2004, December 31, 2003, September 30, 2003, June 30, 2003, and March 31, 2003, respectively. These amounts are excluded from net investment-related gains (losses) in other invested assets. (7) Certain amounts in prior periods presented have been reclassified/restated to conform with current period presentation. (8) Adjustments to net investment-related gains (losses) include amortization of deferred policy acquisition costs, adjustments to the policyholder dividend obligation, and amounts allocable to certain participating contracts. 47 (METLIFE LOGO) - -------------------------------------------------------------------------------- METLIFE, INC. GROSS UNREALIZED LOSSES AGING SCHEDULE FIXED MATURITIES
At June 30, 2004 At March 31, 2004 At December 31, 2003 --------------------------------------------------------------------- Unaudited (Dollars in millions) Amount % of Total Amount % of Total Amount % of Total - -------------------------------------------------------------------------------------------------------------- Less than 20% $1,735 96.6% $364 86.3% $677 91.1% 20% or more for less than six months 47 2.6% 52 12.3% 22 3.0% 20% or more for six months or greater 15 0.8% 6 1.4% 44 5.9% --------------------------------------------------------------------- Total Gross Unrealized Losses $1,797 100.0% $422 100.0% $743 100.0% =====================================================================
At September 30, 2003 At June 30, 2003 At March 31, 2003 --------------------------------------------------------------------- Unaudited (Dollars in millions) Amount % of Total Amount % of Total Amount % of Total - -------------------------------------------------------------------------------------------------------------- Less than 20% $826 83.4% $612 76.8% $767 60.8% 20% or more for less than six months 82 8.3% 74 9.3% 216 17.1% 20% or more for six months or greater 82 8.3% 111 13.9% 279 22.1% --------------------------------------------------------------------- Total Gross Unrealized Losses $990 100.0% $797 100.0% $1,262 100.0% =====================================================================
GROSS UNREALIZED LOSSES AGING SCHEDULE EQUITY SECURITIES
At June 30, 2004 At March 31, 2004 At December 31, 2003 --------------------------------------------------------------------- Unaudited (Dollars in millions) Amount % of Total Amount % of Total Amount % of Total - -------------------------------------------------------------------------------------------------------------- Less than 20% $13 44.8% $5 45.5% $6 100.0% 20% or more for less than six months 16 55.2% 6 54.5% 0 0.0% 20% or more for six months or greater 0 0.0% 0 0.0% 0 0.0% --------------------------------------------------------------------- Total Gross Unrealized Losses $29 100.0% $11 100.0% $6 100.0% =====================================================================
At September 30, 2003 At June 30, 2003 At March 31, 2003 --------------------------------------------------------------------- Unaudited (Dollars in millions) Amount % of Total Amount % of Total Amount % of Total - -------------------------------------------------------------------------------------------------------------- Less than 20% $5 100.0% $8 88.9% $39 30.0% 20% or more for less than six months 0 0.0% 1 11.1% 91 70.0% 20% or more for six months or greater 0 0.0% 0 0.0% 0 0.0% --------------------------------------------------------------------- Total Gross Unrealized Losses $5 100.0% $9 100.0% $130 100.0% =====================================================================
The Company's review of its fixed maturities and equity 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 value had declined and remained below amortized cost by 20% or more for six months or greater. 48 (METLIFE LOGO) - -------------------------------------------------------------------------------- METLIFE, INC. SUMMARY OF FIXED MATURITIES BY SECTOR AND QUALITY DISTRIBUTION
At June 30, 2004 At March 31, 2004 At December 31, 2003 --------------------------------------------------------------------------- Unaudited (Dollars in millions) Amount % of Total Amount % of Total Amount % of Total - -------------------------------------------------------------------------------------------------------------------- US treasuries/agencies $16,664 9.8% $17,065 9.8% $15,945 9.5% State & political subdivisions 3,675 2.2% 3,580 2.0% 3,349 2.0% Corporate bonds 60,619 35.6% 63,215 36.3% 60,391 36.0% Foreign government securities 8,019 4.7% 8,444 4.8% 8,764 5.2% Foreign corporates 24,732 14.5% 24,654 14.2% 23,842 14.2% Mortgage-backed securities 30,698 18.0% 31,825 18.3% 31,454 18.8% Commercial mortgage-backed securities 12,019 7.1% 11,955 6.9% 11,031 6.6% Asset-backed securities 12,444 7.3% 12,327 7.1% 11,863 7.1% Other fixed income assets 780 0.5% 491 0.3% 576 0.3% --------------------------------------------------------------------------- Total 169,650 99.7% 173,556 99.7% 167,215 99.7% Redeemable preferred stock 542 0.3% 544 0.3% 537 0.3% --------------------------------------------------------------------------- Total Fixed Maturities $170,192 100.0% $174,100 100.0% $167,752 100.0% =========================================================================== NAIC RATING AGENCY RATING (1) EQUIVALENT DESIGNATION 1 Aaa/Aa/A $113,607 66.8% $116,165 66.7% $112,333 67.0% 2 Baa 43,829 25.8% 44,842 25.8% 42,057 25.0% 3 Ba 7,334 4.3% 7,731 4.4% 8,011 4.8% 4 B 4,086 2.4% 3,929 2.3% 3,814 2.3% 5 Caa and lower 583 0.3% 700 0.4% 629 0.4% 6 In or near default 211 0.1% 189 0.1% 371 0.2% --------------------------------------------------------------------------- Total 169,650 99.7% 173,556 99.7% 167,215 99.7% Redeemable preferred stock 542 0.3% 544 0.3% 537 0.3% --------------------------------------------------------------------------- Total Fixed Maturities $170,192 100.0% $174,100 100.0% $167,752 100.0% ===========================================================================
At September 30, 2003 At June 30, 2003 At March 31, 2003 --------------------------------------------------------------------------- Unaudited (Dollars in millions) Amount % of Total Amount % of Total Amount % of Total - -------------------------------------------------------------------------------------------------------------------- US treasuries/agencies $14,730 9.2% $13,992 8.8% $12,489 8.7% State & political subdivisions 3,276 2.0% 3,022 1.9% 2,683 1.8% Corporate bonds 57,746 36.1% 56,548 35.6% 52,167 36.1% Foreign government securities 9,027 5.7% 8,938 5.6% 8,374 5.8% Foreign corporates 21,787 13.6% 22,030 13.9% 19,542 13.5% Mortgage-backed securities 31,831 19.9% 33,166 20.9% 30,260 21.0% Commercial mortgage-backed securities 9,318 5.8% 8,649 5.4% 7,509 5.2% Asset-backed securities 11,033 6.9% 11,222 7.1% 10,224 7.1% Other fixed income assets 687 0.5% 771 0.5% 655 0.5% --------------------------------------------------------------------------- Total 159,435 99.7% 158,338 99.7% 143,903 99.7% Redeemable preferred stock 505 0.3% 484 0.3% 438 0.3% --------------------------------------------------------------------------- Total Fixed Maturities $159,940 100.0% $158,822 100.0% $144,341 100.0% =========================================================================== NAIC RATING AGENCY RATING (1) EQUIVALENT DESIGNATION 1 Aaa/Aa/A $107,284 67.1% $107,243 67.5% $97,087 67.3% 2 Baa 39,066 24.4% 38,263 24.1% 34,326 23.8% 3 Ba 7,913 5.0% 7,727 4.9% 7,624 5.3% 4 B 3,962 2.5% 3,854 2.4% 3,658 2.5% 5 Caa and lower 545 0.3% 724 0.5% 627 0.4% 6 In or near default 665 0.4% 527 0.3% 581 0.4% --------------------------------------------------------------------------- Total 159,435 99.7% 158,338 99.7% 143,903 99.7% Redeemable preferred stock 505 0.3% 484 0.3% 438 0.3% --------------------------------------------------------------------------- Total Fixed Maturities $159,940 100.0% $158,822 100.0% $144,341 100.0% ===========================================================================
(1) Amounts presented are based on rating agency designations. Comparisons between NAIC ratings and rating agency designations are published by the NAIC. METLIFE, INC. SUMMARY OF COMMERCIAL MORTGAGE LOANS BY REGION AND PROPERTY TYPE
At June 30, 2004 At March 31, 2004 At December 31, 2003 -------------------------------------------------------------------------- Unaudited (Dollars in millions) Amount % of Total Amount % of Total Amount % of Total - ------------------------------------------------------------------------------------------------------------------- South Atlantic $5,247 23.8% $4,929 23.8% $4,978 24.5% Pacific 5,327 24.2% 5,172 25.1% 5,005 24.7% Middle Atlantic 3,513 16.0% 3,450 16.6% 3,455 17.0% East North Central 2,294 10.4% 1,894 9.1% 1,821 9.0% New England 1,302 5.9% 1,295 6.2% 1,278 6.3% West South Central 1,470 6.7% 1,415 6.8% 1,370 6.8% Mountain 785 3.6% 763 3.7% 740 3.6% West North Central 625 2.8% 606 2.9% 619 3.0% International 1,064 4.8% 943 4.5% 836 4.1% East South Central 278 1.3% 265 1.3% 198 1.0% Other 100 0.5% 0 0.0% 0 0.0% -------------------------------------------------------------------------- Total $22,005 100.0% $20,732 100.0% $20,300 100.0% ========================================================================== Office $10,301 46.8% $9,570 46.1% $9,170 45.2% Retail 5,221 23.7% 4,961 23.9% 5,006 24.7% Apartments 3,001 13.6% 2,916 14.1% 2,832 13.9% Industrial 1,951 8.9% 1,852 8.9% 1,911 9.4% Hotel 1,098 5.0% 1,027 5.0% 1,032 5.1% Other 433 2.0% 406 2.0% 349 1.7% -------------------------------------------------------------------------- Total $22,005 100.0% $20,732 100.0% $20,300 100.0% ==========================================================================
At September 30, 2003 At June 30, 2003 At March 31, 2003 ------------------------------------------------------------------------ Unaudited (Dollars in millions) Amount % of Total Amount % of Total Amount % of Total - ----------------------------------------------------------------------------------------------------------------- South Atlantic $5,027 25.2% $5,139 25.9% $5,167 26.3% Pacific 4,587 23.0% 4,130 20.8% 4,198 21.4% Middle Atlantic 3,522 17.6% 3,543 17.9% 3,416 17.4% East North Central 1,808 9.1% 2,331 11.8% 2,260 11.5% New England 1,269 6.4% 1,181 6.0% 1,168 6.0% West South Central 1,352 6.8% 1,256 6.3% 1,149 5.9% Mountain 798 4.0% 845 4.3% 858 4.4% West North Central 582 2.9% 580 2.9% 598 3.0% International 811 4.1% 631 3.2% 631 3.2% East South Central 189 0.9% 187 0.9% 178 0.9% Other 0 0.0% 0 0.0% 0 0.0% ------------------------------------------------------------------------ Total $19,945 100.0% $19,823 100.0% $19,623 100.0% ======================================================================== Office $8,919 44.7% $9,414 47.4% $9,301 47.5% Retail 4,825 24.2% 4,471 22.6% 4,321 22.0% Apartments 2,932 14.7% 2,805 14.2% 2,867 14.6% Industrial 1,940 9.7% 1,922 9.7% 1,893 9.6% Hotel 1,038 5.2% 955 4.8% 996 5.1% Other 291 1.5% 256 1.3% 245 1.2% ------------------------------------------------------------------------ Total $19,945 100.0% $19,823 100.0% $19,623 100.0% ========================================================================
49 (METLIFE LOGO) - -------------------------------------------------------------------------------- METLIFE, INC. SUMMARY OF REAL ESTATE
At June 30, At March 31, At December 31, At September 30, At June 30, At March 31, Unaudited (Dollars in millions) 2004 2004 2003 2003 2003 2003 - ------------------------------------------------------------------------------------------------------------------------------ Wholly owned $3,823 $4,409 $4,362 $4,927 $4,184 $4,199 Joint ventures 329 287 315 322 303 271 -------------------------------------------------------------------------------------------- Subtotal 4,152 4,696 4,677 5,249 4,487 4,470 Foreclosed 2 3 3 6 4 5 -------------------------------------------------------------------------------------------- Total Real Estate(1) $4,154 $4,699 $4,680 $5,255 $4,491 $4,475 ============================================================================================
(1) Includes real estate held-for-sale and held-for-investment. METLIFE, INC. SUMMARY OF MORTGAGES
At June 30, At March 31, At December 31, At September 30, At June 30, At March 31, Unaudited (Dollars in millions) 2004 2004 2003 2003 2003 2003 - ------------------------------------------------------------------------------------------------------------------------------ COMMERCIAL $22,005 $20,732 $20,300 $19,945 $19,823 $19,623 AGRICULTURAL 5,377 5,226 5,327 5,131 5,090 5,052 RESIDENTIAL 736 604 622 459 376 371 -------------------------------------------------------------------------------------------- TOTAL $28,118 $26,562 $26,249 $25,535 $25,289 $25,046 ============================================================================================
METLIFE, INC. DISTRIBUTION OF ASSETS UNDER MANAGEMENT
At June 30, At March 31, At December 31, At September 30, At June 30, At March 31, Unaudited (Dollars in billions) 2004 2004 2003 2003 2003 2003 - ------------------------------------------------------------------------------------------------------------------------------ METLIFE $258.5 $258.9 $251.0 $245.0 $242.3 $226.3 METLIFE SEPARATE ACCOUNT 79.7 78.3 75.8 70.0 67.5 60.6 STATE STREET THIRD PARTY 27.1 25.7 23.4 21.6 21.9 20.8 TOTAL ASSETS UNDER MANAGEMENT -------------------------------------------------------------------------------------------- $365.3 $362.9 $350.2 $336.6 $331.7 $307.7 ============================================================================================
50 (METLIFE LOGO) - -------------------------------------------------------------------------------- COMPANY RATINGS AS OF JULY 20TH, 2004 (1)
Moody's Standard & A.M. Best Fitch Investors Service Poor's Company Ratings ----------------- ---------- --------- ------- FINANCIAL STRENGTH RATINGS - -------------------------- Metropolitan Life Insurance Company Aa2 AA A+ AA Metropolitan Life Insurance Company (Short-term rating) P-1 A-1+ NR NR First MetLife Investors Insurance Co. NR AA A+ NR General American Life Insurance Company Aa2 AA A+ AA MetLife Investors Insurance Company Aa2 AA A+ AA MetLife Investors Insurance Company of California NR AA A+ NR MetLife Investors USA Insurance Company Aa3 AA A+ AA Metropolitan Insurance and Annuity Company Aa3 NR A NR New England Life Insurance Company Aa2 AA A+ AA Paragon Life Insurance Company NR AA A+ AA Texas Life Insurance Company NR NR A NR RGA Reinsurance Company A1 AA- A+ AA- Metropolitan Property and Casualty Insurance Company Aa3 NR A NR Metropolitan Casualty Insurance Company NR NR A NR Metropolitan Direct Property and Casualty Insurance Co. NR NR A NR Metropolitan General Insurance Company NR NR A NR Metropolitan Group Property & Casualty Insurance Co. NR NR A NR Metropolitan Lloyds Insurance Company of Texas NR NR A NR CREDIT RATINGS MetLife, Inc. Senior Unsecured A2 A a A Commercial Paper P-1 A-1 AMB-1+ F1 Metropolitan Life Insurance Company Surplus Notes A1 A+ a+ A+ MetLife Funding, Inc. Commercial Paper P-1 A-1+ AMB-1+ F1+ General American Life Insurance Company Surplus Notes A1 A+ a+ NR GenAmerica Capital I Preferred Stock A3 BBB+ NR A- Reinsurance Group of America, Incorporated Senior Unsecured Baa1 A- a- A- RGA Capital Trust I Preferred Stock Baa2 BBB bbb+ BBB+
(1) NR indicates not rated. 51 -----END PRIVACY-ENHANCED MESSAGE-----