Segment Information

3 Months Ended

Mar. 31, 2024

Segment Reporting [Abstract]

Segment Information

2. Segment Information

In the fourth quarter of 2023, MetLife reorganized from five segments into the following six segments to reflect changes in management’s responsibilities: Group Benefits, RIS, Asia, Latin America, EMEA and MetLife Holdings. The Group Benefits and RIS businesses were previously reported as the U.S. segment. These changes were applied retrospectively and did not have an impact on prior period total consolidated net income (loss) or adjusted earnings. In addition, the Company continues to report certain of its results of operations in Corporate & Other.

Group Benefits

The Group Benefits segment, based in the U.S., offers a broad range of products to corporations and their respective employees, other institutions and their respective members, as well as individuals. These products include term, variable and universal life insurance, dental, group and individual disability, vision and accident & health insurance.

RIS

The RIS segment, based in the U.S., offers a broad range of life and annuity-based insurance and investment products to corporations and their respective employees, other institutions and their respective members, as well as individuals. These products include stable value and pension risk transfer products, institutional income annuities, structured settlements, longevity reinsurance solutions, benefit funding solutions and capital markets investment products.

Asia

The Asia segment offers a broad range of products and services to both individuals and corporations, as well as to other institutions, and their respective employees, which include life insurance, accident & health insurance and retirement and savings.

Latin America

The Latin America segment offers a broad range of products to both individuals and corporations, as well as to other institutions, and their respective employees, which include life insurance, retirement and savings, accident & health insurance and credit insurance.

EMEA

The EMEA segment offers products to individuals, corporations, other institutions, and their respective employees, which include life insurance, retirement and savings, accident & health insurance and credit insurance.

MetLife Holdings

The MetLife Holdings segment consists of operations relating to products and businesses that the Company no longer actively markets in the U.S. These include variable, universal, term and whole life insurance, variable, fixed and index-linked annuities and long-term care insurance. It also includes an in-force block of assumed variable annuity guarantees from a third party.

Corporate & Other

Corporate & Other contains various start-up, developing and run-off businesses. Also included in Corporate & Other are: the excess capital, as well as certain charges and activities, not allocated to the segments (including external integration and disposition costs, internal resource costs for associates committed to acquisitions and dispositions and enterprise-wide strategic initiatives), interest expense related to the majority of the Company’s outstanding debt, expenses associated with certain legal proceedings and income tax audit issues, the elimination of intersegment amounts (which generally relate to investment expenses and intersegment loans bearing interest rates commensurate with related borrowings), and the Company’s investment management business (through which the Company provides public fixed income, private capital and real estate investment solutions to institutional investors worldwide).

Financial Measures and Segment Accounting Policies

Adjusted earnings is used by management to evaluate performance and allocate resources. Consistent with GAAP guidance for segment reporting, adjusted earnings is also the Company’s GAAP measure of segment performance and is reported below. Adjusted earnings should not be viewed as a substitute for net income (loss). The Company believes the presentation of adjusted earnings, as the Company measures it for management purposes, enhances the understanding of its performance by highlighting the results of operations and the underlying profitability drivers of the business.

Adjusted earnings is defined as adjusted revenues less adjusted expenses, net of income tax.

These financial measures focus on the Company’s primary businesses principally by excluding the impact of (i) market volatility which could distort trends, (ii) asymmetrical and non-economic accounting, and (iii) revenues and costs related to divested businesses, non-core products and certain entities required to be consolidated under GAAP. Also, these measures exclude results of discontinued operations under GAAP.

Market volatility can have a significant impact on the Company’s financial results. Adjusted earnings excludes net investment gains (losses), net derivative gains (losses), market risk benefits (“MRBs”) remeasurement gains (losses) and goodwill impairments. Further, policyholder benefits and claims exclude (i) changes in the discount rate on certain annuitization guarantees accounted for as additional liabilities, and (ii) market value adjustments.

Asymmetrical and non-economic accounting adjustments are made to the line items indicated in calculating adjusted earnings:

•Net investment income includes earned income on derivatives and amortization of premium on derivatives that are hedges of investments or that are used to replicate certain investments, but do not qualify for hedge accounting treatment.

•Other revenues include settlements of foreign currency earnings hedges and exclude asymmetrical accounting associated with in-force reinsurance.

•Policyholder benefits and claims excludes (i) amortization of basis adjustments associated with de-designated fair value hedges of future policy benefits (“FPBs”), (ii) inflation-indexed benefit adjustments associated with contracts backed by inflation-indexed investments, (iii) asymmetrical accounting associated with in-force reinsurance, and (iv) non-economic losses incurred at contract inception for certain single premium annuity business. These losses are amortized into adjusted earnings within policyholder benefits and claims over the estimated lives of the contracts.

•Interest credited to policyholder account balances (“PABs”) excludes amounts associated with periodic crediting rate adjustments based on the total return of a contractually referenced pool of assets and other pass-through adjustments and asymmetrical accounting associated with in-force reinsurance.

Divested businesses are those that have been or will be sold or exited by MetLife but do not meet the discontinued operations criteria under GAAP. Divested businesses also include the net impact of transactions with exited businesses that have been eliminated in consolidation under GAAP and costs relating to businesses that have been or will be sold or exited by MetLife that do not meet the criteria to be included in results of discontinued operations under GAAP.

Other adjustments are made to the line items indicated in calculating adjusted earnings:

•Net investment income and interest credited to PABs excludes certain amounts related to contractholder-directed equity securities.

•Other revenues include fee revenue on synthetic guaranteed interest contracts (“GICs”) accounted for as freestanding derivatives.

•Other revenues exclude and other expenses include fees received in connection with services provided under transition service agreements.

•Other expenses exclude (i) implementation of new insurance regulatory requirements and other costs, and (ii) acquisition, integration and other related costs. Other expenses include (i) deductions for net income attributable to noncontrolling interests, and (ii) benefits accrued on synthetic GICs accounted for as freestanding derivatives.

Adjusted earnings also excludes the recognition of certain contingent assets and liabilities that could not be recognized at acquisition or adjusted for during the measurement period under GAAP business combination accounting guidance.

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

Set forth in the tables below is certain financial information with respect to the Company’s segments, as well as Corporate & Other, for the three months ended March 31, 2024 and 2023. The segment accounting policies are the same as those used to prepare the Company’s interim condensed consolidated financial statements, except for adjusted earnings adjustments as defined above. In addition, segment accounting policies include the method of capital allocation described below.

Economic capital is an internally developed risk capital model, the purpose of which is to measure the risk in the business and to provide a basis upon which capital is deployed. The economic capital model accounts for the unique and specific nature of the risks inherent in the Company’s business.

The Company’s economic capital model, coupled with considerations of local capital requirements, aligns segment allocated equity with emerging standards and consistent risk principles. The model applies statistics-based risk evaluation principles to the material risks to which the Company is exposed. These consistent risk principles include calibrating required economic capital shock factors to a specific confidence level and time horizon while applying an industry standard method for the inclusion of diversification benefits among risk types. The Company’s management is responsible for the ongoing production and enhancement of the economic capital model and reviews its approach periodically to ensure that it remains consistent with emerging industry practice standards.

Segment net investment income is credited or charged based on the level of allocated equity; however, changes in allocated equity do not impact the Company’s consolidated net investment income, net income (loss) or adjusted earnings.

Net investment income is based upon the actual results of each segment’s specifically identifiable investment portfolios adjusted for allocated equity. Other costs are allocated to each of the segments based upon: (i) a review of the nature of such costs; (ii) time studies analyzing the amount of employee compensation costs incurred by each segment; and (iii) cost estimates included in the Company’s product pricing.

Three Months Ended March 31, 2024	Group Benefits		RIS		Asia		Latin America		EMEA		MetLife Holdings		Corporate & Other		Total		Adjustments		Total Consolidated
	(In millions)
Revenues
Premiums	$	5,711	$	675	$	1,297	$	1,115	$	536	$	713	$	6	$	10,053	$	—	$	10,053
Universal life and investment-type product policy fees	222		75		426		370		77		78		—		1,248		—		1,248
Net investment income	315		2,089		1,108		386		54		1,010		106		5,068		368		5,436
Other revenues	397		63		21		11		7		50		98		647		27		674
Net investment gains (losses)	—		—		—		—		—		—		—		—		(375)		(375)
Net derivative gains (losses)	—		—		—		—		—		—		—		—		(979)		(979)
Total revenues	6,645		2,902		2,852		1,882		674		1,851		210		17,016		(959)		16,057
Expenses
Policyholder benefits and claims and policyholder dividends	5,236		1,471		1,067		983		258		1,251		8		10,274		(53)		10,221
Policyholder liability remeasurement (gains) losses	(3)		1		(32)		(8)		—		20		—		(22)		—		(22)
Market risk benefit remeasurement (gains) losses	—		—		—		—		—		—		—		—		(694)		(694)
Interest credited to policyholder account balances	48		796		647		114		19		103		—		1,727		563		2,290
Capitalization of deferred policy acquisition costs	(4)		(61)		(361)		(178)		(128)		(5)		(3)		(740)		—		(740)
Amortization of deferred policy acquisition costs and value of business acquired	6		15		210		125		91		59		2		508		—		508
Amortization of negative value of business acquired	—		—		(5)		—		(1)		—		—		(6)		—		(6)
Interest expense on debt	—		4		—		3		—		4		253		264		—		264
Other expenses	1,003		172		744		512		332		223		194		3,180		11		3,191
Total expenses	6,286		2,398		2,270		1,551		571		1,655		454		15,185		(173)		15,012
Provision for income tax expense (benefit)	75		105		159		98		26		37		(70)		430		(260)		170
Adjusted earnings	$	284	$	399	$	423	$	233	$	77	$	159	$	(174)	1,401
Adjustments to:
Total revenues															(959)
Total expenses															173
Provision for income tax (expense) benefit															260
Net income (loss)															$	875			$	875

Three Months Ended March 31, 2023	Group Benefits		RIS		Asia		Latin America		EMEA		MetLife Holdings		Corporate & Other		Total		Adjustments		Total Consolidated
	(In millions)
Revenues
Premiums	$	5,451	$	501	$	1,377	$	1,025	$	496	$	723	$	16	$	9,589	$	—	$	9,589
Universal life and investment-type product policy fees	218		79		397		335		77		183		—		1,289		—		1,289
Net investment income	310		1,814		881		379		45		1,127		50		4,606		39		4,645
Other revenues	380		68		20		12		8		53		101		642		(3)		639
Net investment gains (losses)	—		—		—		—		—		—		—		—		(684)		(684)
Net derivative gains (losses)	—		—		—		—		—		—		—		—		(90)		(90)
Total revenues	6,359		2,462		2,675		1,751		626		2,086		167		16,126		(738)		15,388
Expenses
Policyholder benefits and claims and policyholder dividends	4,994		1,225		1,130		966		261		1,369		16		9,961		70		10,031
Policyholder liability remeasurement (gains) losses	(4)		(29)		11		(4)		(3)		20		—		(9)		—		(9)
Market risk benefit remeasurement (gains) losses	—		—		—		—		—		—		—		—		188		188
Interest credited to policyholder account balances	46		646		536		99		16		199		—		1,542		322		1,864
Capitalization of deferred policy acquisition costs	(6)		(45)		(401)		(151)		(108)		(6)		(1)		(718)		—		(718)
Amortization of deferred policy acquisition costs and value of business acquired	6		11		193		106		85		68		1		470		—		470
Amortization of negative value of business acquired	—		—		(6)		—		(1)		—		—		(7)		—		(7)
Interest expense on debt	—		3		—		2		—		3		247		255		—		255
Other expenses	932		146		807		430		300		238		177		3,030		27		3,057
Total expenses	5,968		1,957		2,270		1,448		550		1,891		440		14,524		607		15,131
Provision for income tax expense (benefit)	84		105		125		88		16		37		(103)		352		(180)		172
Adjusted earnings	$	307	$	400	$	280	$	215	$	60	$	158	$	(170)	1,250
Adjustments to:
Total revenues															(738)
Total expenses															(607)
Provision for income tax (expense) benefit															180
Net income (loss)															$	85			$	85

The following table presents total assets with respect to the Company’s segments, as well as Corporate & Other, at:

	March 31, 2024		December 31, 2023
	(In millions)
Group Benefits	$	37,076	$	36,715
RIS	217,290		218,587
Asia	154,296		157,206
Latin America	66,142		69,177
EMEA	18,742		18,596
MetLife Holdings	146,621		148,524
Corporate & Other	37,409		38,779
Total	$	677,576	$	687,584