Business Wire | Nov 3, 2021 04:15PM EDT

MetLife Announces Third Quarter 2021 Results

Nov. 03, 2021

NEW YORK--(BUSINESS WIRE)--Nov. 03, 2021--MetLife, Inc. (NYSE: MET) today announced its third quarter 2021 results.

Third Quarter Results Summary

* Net income of $1.5 billion, or $1.77 per share, compared to net income of $633 million, or $0.69 per share, in the third quarter of 2020. * Adjusted earnings of $2.1 billion, or $2.39 per share, compared to adjusted earnings of $1.6 billion, or $1.73 per share, in the third quarter of 2020. * Book value of $77.24 per share, up 1 percent from $76.20 per share at September 30, 2020. * Book value, excluding accumulated other comprehensive income (AOCI) other than foreign currency translation adjustments (FCTA), of $57.29 per share, up 8 percent from $53.10 per share at September 30, 2020. * Return on equity (ROE) of 9.3 percent. * Adjusted ROE, excluding AOCI other than FCTA, of 17.0 percent. * Holding company cash and liquid assets of $5.1 billion at September 30, 2021, which is above the target cash buffer of $3.0 - $4.0 billion.

Commenting on the company's results, MetLife President and CEO Michel Khalaf said: "MetLife delivered another very strong quarter. Outstanding variable investment income more than offset elevated COVID claims, underlying PFO growth was strong, and expense discipline held firm. Having the right strategy, a superior asset mix, and consistent execution continues to generate exceptional earnings."

Third Quarter 2021 Summary

Three months ended($ in millions, except per share data) September 30,

2021 2020 Change

Premiums, fees and other revenues $ 11,639 $ 11,887 (2 )%

Net investment income 5,568 4,729 18 %

Net investment gains (losses) (84 ) (20 )

Net derivative gains (losses) (218 ) (581 )

Total revenues $ 16,905 $ 16,015



Adjusted premiums, fees and other revenues $ 11,419 $ 11,820 (3 )%

Adjusted premiums, fees and other revenues, $ 11,443 $ 11,333 1 %excluding pension risk transfers (PRT)



Net income (loss) $ 1,521 $ 633 140 %

Net income (loss) per share $ 1.77 $ 0.69 157 %



Adjusted earnings $ 2,062 $ 1,578 31 %

Adjusted earnings per share $ 2.39 $ 1.73 38 %

Adjusted earnings, excluding total notable $ 2,202 $ 1,781 24 %items

Adjusted earnings, excluding total notable $ 2.56 $ 1.95 31 %items per share



Book value per share $ 77.24 $ 76.20 1 %

Book value per share, excluding AOCI other $ 57.29 $ 53.10 8 %than FCTA



Expense ratio 19.2 % 18.4 %

Direct expense ratio, excluding totalnotable items related to direct expenses and 11.1 % 11.4 % PRT

Adjusted expense ratio, excluding totalnotable items related to adjusted other 18.7 % 18.8 % expenses and PRT



ROE 9.3 % 3.6 %

Adjusted ROE, excluding AOCI other than FCTA 17.0 % 13.2 %

Adjusted ROE, excluding total notable items 18.2 % 14.9 % (excludes AOCI other than FCTA)

Information regarding the non-GAAP and other financial measures included in this news release and reconciliation of the non-GAAP financial measures to GAAP measures are in "Non-GAAP and Other Financial Disclosures" below and in the tables that accompany this news release.

Supplemental slides for the third quarter of 2021, titled "3Q21 Supplemental Slides," are available on the MetLife Investor Relations website at https://investor.metlife.com and in the Form 8-K furnished by MetLife to the U.S. Securities and Exchange Commission in connection with this earnings news release.

Total Company Discussion

MetLife reported third quarter 2021 premiums, fees and other revenues of $11.6 billion, down 2 percent from the third quarter of 2020. Adjusted premiums, fees and other revenues were $11.4 billion, down 3 percent on both a reported and constant currency basis from the prior-year period.

Net investment income was $5.6 billion, up 18 percent from the third quarter of 2020. Adjusted net investment income was $5.7 billion, up 21 percent from the prior-year period. These increases were largely driven by higher variable investment income primarily due to strong private equity returns.

Net derivative losses amounted to $218 million, or $172 million after tax during the quarter, driven by foreign currency exchange rate changes.

Net income was $1.5 billion, compared to net income of $633 million in the third quarter of 2020. On a per share basis, net income was $1.77, compared to net income of $0.69 in the prior-year period.

MetLife reported adjusted earnings of $2.1 billion, up 31 percent, and up 30 percent on a constant currency basis, from the third quarter of 2020. On a per share basis, adjusted earnings were $2.39, up 38 percent from the prior-year period.

Annual Actuarial Assumption Review

In the third quarter of 2021, MetLife performed the company's annual global actuarial assumption review. The actuarial assumption review during the quarter reduced net income by $216 million, of which $140 million impacted adjusted earnings.

Adjusted Earnings by Segment Summary*

Three months ended September 30, 2021

Change from Change fromSegment prior-year period prior-year period (on a constant currency basis)

U.S. (1 )%

Asia 22 % 22 %

Latin America (26 )% (29 )%

Europe, the Middle East and Africa (EMEA) 81 % 81 %

MetLife Holdings 140 %

*The percentages in this table are on a reported and constant currency basis, and do not exclude notable items. For the three months ended September 30, 2021, U.S. results exclude Property & Casualty as MetLife completed the sale of the business. U.S. results for the three months ended September 30, 2020, include Property & Casualty.

Business Discussions

All comparisons of the results for the third quarter of 2021 in the business discussions that follow are with the third quarter of 2020, unless otherwise noted. The third quarter of 2021 notable items table follows the Business Discussions section of this release.

U.S.*

Three months Three months ended ended($ in millions) Change September 30, September 30, 2021 2020

Adjusted earnings $895 $900 (1)%

Adjusted premiums, fees and other revenues $6,408 $6,833 (6)%

Adjusted premiums, fees and other revenues, $6,432 $6,346 1%excluding PRT

Notable item(s) $0 $0

* For the three months ended September 30, 2021, U.S. results exclude Property & Casualty as MetLife completed the sale of the business. U.S. results for the three months ended September 30, 2020, include Property & Casualty.

* Adjusted earnings were $895 million, down 1 percent, with unfavorable group life underwriting largely offset by higher variable investment income. In the prior-year period, adjusted earnings included $18 million from Property & Casualty. * Adjusted return on allocated equity was 38.4 percent, and adjusted return on allocated tangible equity was 44.8 percent. * Adjusted premiums, fees and other revenues were $6.4 billion, down 6 percent. In the prior-year period, adjusted premiums, fees and other revenues included $908 million from Property & Casualty.

Group Benefits

Three months Three months ended ended($ in millions) Change September 30, September 30, 2021 2020

Adjusted earnings $111 $392 (72)%

Adjusted premiums, fees and other $5,517 $4,901 13%revenues

Notable item(s) $0 $0

* Adjusted earnings were $111 million, down 72 percent, largely driven by unfavorable group life underwriting as a result of COVID-19 and dental utilization returning to normal levels. Volume growth and the addition of Versant Health provided partial offsets. * Adjusted premiums, fees and other revenues were $5.5 billion, up 13 percent, driven by solid growth across most products, including voluntary, and the addition of Versant Health. * Sales were up 40 percent year-to-date due to higher jumbo case activity.

Retirement and Income Solutions

Three months Three months ended ended($ in millions) Change September 30, September 30, 2021 2020

Adjusted earnings $784 $490 60%

Adjusted premiums, fees and other revenues $891 $1,024 (13)%

Adjusted premiums, fees and other revenues, $915 $537 70%excluding PRT

Notable item(s) $0 $0

* Adjusted earnings were $784 million, up 60 percent, largely driven by higher variable investment income, as well as favorable underwriting and volume growth. * Adjusted premiums, fees and other revenues were $891 million, down 13 percent, largely driven by pension risk transfer sales in the prior-year period. * Excluding pension risk transfers, adjusted premiums, fees and other revenues were $915 million, up 70 percent, primarily from higher single-premium annuity and life insurance sales and UK longevity reinsurance. * Sales were down 15 percent year-to-date, primarily driven by lower sales of stable value products.

ASIA

At or for the At or for the three three

($ in millions) months ended months ended Change

September 30, September 30, 2021 2020

Adjusted earnings $569 $465 22%

Adjusted earnings (constant currency) $569 $466 22%

Adjusted premiums, fees and other revenues $2,088 $2,265 (8)%

Notable item(s) $(79) $(28)

Asia general account assets under management $130,777 $125,171 4%(at amortized cost)

* Adjusted earnings were $569 million, up 22 percent on both a reported and constant currency basis, largely driven by higher variable investment income, as well as volume growth. Negative impacts from the annual actuarial assumption review and lower accident and health utilization in the prior-year period were partial offsets. * Excluding notable items from both periods, adjusted earnings were up 31 percent on both a reported and constant currency basis. * Adjusted return on allocated equity was 15.5 percent, and adjusted return on allocated tangible equity was 23.2 percent. * Adjusted premiums, fees and other revenues were $2.1 billion, down 8 percent, and down 6 percent on a constant currency basis, driven by positive actuarial assumption updates in the prior-year period. * Asia general account assets under management (at amortized cost) were $130.8 billion, up 4 percent, and up 7 percent on a constant currency basis. * Sales were $498 million, down 12 percent on a constant currency basis. Year-to-date, sales were up 10 percent on a constant currency basis.

LATIN AMERICA

Three months Three months ended ended($ in millions) Change September 30, September 30, 2021 2020

Adjusted earnings $29 $39 (26)%

Adjusted earnings (constant currency) $29 $41 (29)%

Adjusted premiums, fees and other $988 $761 30%revenues

Notable item(s) $(2) $(9)

* Adjusted earnings were $29 million, down 26 percent, and down 29 percent on a constant currency basis, primarily driven by higher COVID-19 related claims. Higher variable investment income provided a partial offset. * Excluding notable items from both periods, adjusted earnings were down 35 percent, and down 38 percent on a constant currency basis. * Adjusted return on allocated equity was 4.2 percent, and adjusted return on allocated tangible equity was 6.6 percent. * Adjusted premiums, fees and other revenues were $988 million, up 30 percent, and up 22 percent on a constant currency basis, driven by strong sales and persistency across the region. * Sales were $234 million, up 45 percent on a constant currency basis, driven by growth across most markets.

EMEA*

Three months Three months ended ended($ in millions) Change September 30, September 30, 2021 2020

Adjusted earnings $94 $52 81%

Adjusted earnings (constant currency) $94 $52 81%

Adjusted premiums, fees and other $670 $680 (1)%revenues

Notable item(s) $(6) $(31)

* For the three months ended September 30, 2021, EMEA results exclude MetLife Russia, which has been sold, and Poland and Greece, which are reported as divested businesses. These businesses are included in the prior-year period.

* Adjusted earnings were $94 million, up 81 percent on both a reported and constant currency basis, primarily driven by a smaller negative impact in the current-year period from the annual actuarial assumption review, volume growth, and favorable underwriting. * Excluding notable items from both periods, adjusted earnings were up 20 percent on both a reported and constant currency basis. * Adjusted return on allocated equity was 13.2 percent, and adjusted return on allocated tangible equity was 22.8 percent. * Adjusted premiums, fees and other revenues were $670 million, down 1 percent, and down 2 percent on a constant currency basis. * Sales were $195 million, down 5 percent on a constant currency basis, primarily driven by divested businesses, partially offset by growth in Turkey and Europe.

METLIFE HOLDINGS

Three months Three months ended ended($ in millions) Change September 30, September 30, 2021 2020

Adjusted earnings $606 $253 140%

Adjusted premiums, fees and other $1,141 $1,206 (5)%revenues

Notable item(s) $(53) $(135)

* Adjusted earnings were $606 million, up 140 percent, largely driven by higher variable investment income and a smaller negative impact in the current-year period from the annual actuarial assumption review. Unfavorable underwriting was a partial offset. * Excluding notable items from both periods, adjusted earnings were up 70 percent. * Adjusted return on allocated equity was 23.2 percent, and adjusted return on allocated tangible equity was 25.4 percent. * Adjusted premiums, fees and other revenues were $1.1 billion, down 5 percent.

CORPORATE & OTHER

Three months ended Three months ended($ in millions) Change September 30, 2021 September 30, 2020

Adjusted earnings $(131) $(131)

Notable item(s) $0 $0

* Adjusted losses were flat at $131 million.

INVESTMENTS

Three months ended Three months ended($ in millions) Change September 30, 2021 September 30, 2020

Adjusted net investment income $5,668 $4,688 21%

* Adjusted net investment income was $5.7 billion, up 21 percent. Variable investment income was $1.8 billion, compared to $652 million in the prior-year period, primarily driven by private equity returns of 12.6 percent.

THIRD QUARTER 2021 NOTABLE ITEMS

Adjusted Earnings($ in millions) Three months ended September 30, 2021

U.S. Corporate Retirement Latin MetLifeNotable Items Group Asia EMEA & Total and Income America Holdings Benefits Other Solutions

Actuarialassumption $ $review and other $0 $0 (79) $(2) $(6) $(53) $0 (140)insuranceadjustments

Total notable $0 $0 $ $(2) $(6) $(53) $0 $items (79) (140)

About MetLife

MetLife, Inc. (NYSE: MET), through its subsidiaries and affiliates (MetLife), is one of the world's leading financial services companies, providing insurance, annuities, employee benefits and asset management to help its individual and institutional customers navigate their changing world. Founded in 1868, MetLife has operations in more than 40 markets globally and holds leading positions in the United States, Japan, Latin America, Asia, Europe and the Middle East. For more information, visit www.metlife.com.

Conference Call

MetLife will hold its third quarter 2021 earnings conference call and audio webcast on Thursday, November 4, 2021, from 9-10 a.m. (ET). The conference call will be available live via telephone and the internet. To listen via telephone, dial 877-692-8955 (U.S.) or 234-720-6979 (outside the U.S.). The participant access code is 2510803. To listen to the conference call via the internet, click the link to the webcast on the MetLife Investor Relations web page ( https://investor.metlife.com). Those who want to listen to the call via telephone or the internet should dial in or go to the website at least 15 minutes prior to the call to register, and/or download and install any necessary audio software.

The conference call will be available for replay via telephone and the internet beginning at 11 a.m. (ET) on Thursday, November 4, 2021, until Thursday, November 11, 2021, at 11:59 p.m. (ET). To listen to a replay of the conference call via telephone, dial 866-207-1041 (U.S.) or 402-970-0847 (outside the U.S.). The access code for the replay is 7756549. To access the replay of the conference call over the internet, visit the above-mentioned website.

Non-GAAP and Other Financial Disclosures

Any references in this news release(except in this section and the should be read as, respectively:tables that accompany this release)to:



net income (loss) available to(i) net income (loss); (i) MetLife, Inc.'s common shareholders;

net income (loss) available to(ii) net income (loss) per share; (ii) MetLife, Inc.'s common shareholders per diluted common share;

(iii) adjusted earnings; (iii) adjusted earnings available to common shareholders;

adjusted earnings available to(iv) adjusted earnings per share; (iv) common shareholders per diluted common share;

(v) book value per share; (v) book value per common share;

book value per share, book value per common share,(vi) excluding AOCI other than (vi) excluding AOCI other than FCTA; FCTA;

book value per share-tangible book value per common(vii) common stockholders' equity; (vii) share-tangible common stockholders' equity;

(viii) return on equity; (viii) return on MetLife, Inc.'s common stockholders' equity;

adjusted return on equity, adjusted return on MetLife,(ix) excluding AOCI other than (ix) Inc.'s common stockholders' FCTA; and equity, excluding AOCI other than FCTA; and

adjusted tangible return on adjusted return on MetLife,(x) equity. (x) Inc.'s tangible common stockholders' equity.

In this news release, MetLife presents certain measures of its performance on a consolidated and segment basis that are not calculated in accordance with accounting principles generally accepted in the United States of America (GAAP). MetLife believes that these non-GAAP financial measures enhance the understanding for MetLife and its investors of MetLife's performance by highlighting the results of operations and the underlying profitability drivers of the business. Segment-specific financial measures are calculated using only the portion of consolidated results attributable to that specific segment.

The following non-GAAP financial measures should not be viewed as substitutes for the most directly comparable financial measures calculated in accordance with GAAP:

Non-GAAP financial measures: Comparable GAAP financial measures:



(i) total adjusted revenues; (i) total revenues;

(ii) total adjusted expenses; (ii) total expenses;

(iii) adjusted premiums, fees and (iii) premiums, fees and other other revenues; revenues;

(iv) adjusted premiums, fees and (iv) premiums, fees and other other revenues, excluding PRT; revenues;

(v) adjusted net investment income; (v) net investment income;

adjusted capitalization of(vi) deferred policy acquisition (vi) capitalization of DAC; costs (DAC);

net income (loss)(vii) adjusted earnings available to (vii) available to MetLife, common shareholders; Inc.'s common shareholders;

adjusted earnings available to net income (loss)(viii) common shareholders, excluding (viii) available to MetLife, total notable items; Inc.'s common shareholders;

net income (loss) adjusted earnings available to available to MetLife,(ix) common shareholders per diluted (ix) Inc.'s common common share; shareholders per diluted common share;

adjusted earnings available to net income (loss) common shareholders, excluding available to MetLife,(x) total notable items, per (x) Inc.'s common diluted common share; shareholders per diluted common share;

(xi) adjusted return on equity; (xi) return on equity;

(xii) adjusted return on equity, (xii) return on equity; excluding AOCI other than FCTA;

adjusted return on equity,(xiii) excluding total notable items (xiii) return on equity; (excludes AOCI other than FCTA);

(xiv) adjusted tangible return on (xiv) return on equity; equity;

(xv) investment portfolio gains (xv) net investment gains (losses); (losses);

(xvi) derivative gains (losses); (xvi) net derivative gains (losses);

(xvii) total MetLife, Inc.'s tangible (xvii) total MetLife, Inc.'s common stockholders' equity; stockholders' equity;

total MetLife, Inc.'s tangible total MetLife, Inc.'s(xviii) common stockholders' equity, (xviii) stockholders' equity; excluding total notable items;

total MetLife, Inc.'s common total MetLife, Inc.'s(xix) stockholders' equity, excluding (xix) stockholders' equity; AOCI other than FCTA;

total MetLife, Inc.'s common(xx) stockholders' equity, excluding (xx) total MetLife, Inc.'s total notable items (excludes stockholders' equity; AOCI other than FCTA);

(xxi) book value per common share, (xxi) book value per common excluding AOCI other than FCTA; share;

book value per common share - book value per common(xxii) tangible common stockholders' (xxii) share; equity;

MetLife, Inc. (parent(xxiii) free cash flow of all holding (xxiii) company only) net cash companies; provided by (used in) operating activities;

(xxiv) adjusted other expenses; (xxiv) other expenses;

other expenses, net of(xxv) adjusted other expenses, net of (xxv) capitalization of DAC; adjusted capitalization of DAC;

adjusted other expenses, net of adjusted capitalization of DAC, other expenses, net of(xxvi) excluding total notable items (xxvi) capitalization of DAC; related to adjusted other expenses;

(xxvii) adjusted expense ratio; (xxvii) expense ratio;

adjusted expense ratio, expense ratio;(xxviii) excluding total notable items (xxviii) related to adjusted other expenses and PRT;

(xxix) direct expenses; (xxix) other expenses;

direct expenses, excluding other expenses;(xxx) total notable items related to (xxx) direct expenses;

(xxxi) direct expense ratio; and (xxxi) expense ratio; and

direct expense ratio, excluding(xxxii) total notable items related to (xxxii) expense ratio. direct expenses and PRT.

Any of these financial measures shown on a constant currency basis reflect the impact of changes in foreign currency exchange rates and are calculated using the average foreign currency exchange rates for the most recent period and applied to the comparable prior period.

Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in this earnings news release and in this period's quarterly financial supplement, which is available at www.metlife.com.

MetLife's definitions of non-GAAP and other financial measures discussed in this news release may differ from those used by other companies:

Adjusted earnings and related measures

* adjusted earnings; * adjusted earnings available to common shareholders; * adjusted earnings available to common shareholders on a constant currency basis; * adjusted earnings available to common shareholders, excluding total notable items; * adjusted earnings available to common shareholders, excluding total notable items, on a constant currency basis; * adjusted earnings available to common shareholders per diluted common share; * adjusted earnings available to common shareholders on a constant currency basis per diluted common share; * adjusted earnings available to common shareholders, excluding total notable items per diluted common share; and * adjusted earnings available to common shareholders, excluding total notable items, on a constant currency basis per diluted common share.

These measures are used by management to evaluate performance and allocate resources. Consistent with GAAP guidance for segment reporting, adjusted earnings and components of, or other financial measures based on, adjusted earnings are also MetLife's GAAP measures of segment performance. Adjusted earnings and other financial measures based on adjusted earnings are also the measures by which MetLife senior management's and many other employees' performance is evaluated for the purposes of determining their compensation under applicable compensation plans. Adjusted earnings and other financial measures based on adjusted earnings allow analysis of MetLife's performance relative to its business plan and facilitate comparisons to industry results.

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

Adjusted revenues and adjusted expenses

These financial measures, along with the related adjusted premiums, fees and other revenues, focus on our primary businesses principally by excluding the impact of market volatility, which could distort trends, and revenues and costs related to non-core products and certain entities required to be consolidated under GAAP. Also, these measures exclude results of discontinued operations under GAAP and other businesses that have been or will be sold or exited by MetLife but do not meet the discontinued operations criteria under GAAP and are referred to as divested businesses. 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.

Adjusted revenues also excludes net investment gains (losses) (NIGL) and net derivative gains (losses) (NDGL). Adjusted expenses also excludes goodwill impairments.

The following additional adjustments are made to revenues, in the line items indicated, in calculating adjusted revenues:

* Universal life and investment-type product policy fees excludes the amortization of unearned revenue related to NIGL and NDGL (Unearned revenue adjustments) and certain variable annuity guaranteed minimum income benefits (GMIB) fees (GMIB fees); * Net investment income: (i) includes adjustments for earned income on derivatives and amortization of premium on derivatives that are hedges of investments or that are used to replicate certain investments, but do not qualify for hedge accounting treatment (Investment hedge adjustments), (ii) excludes post-tax adjusted earnings adjustments relating to insurance joint ventures accounted for under the equity method (Operating joint venture adjustments), (iii) excludes certain amounts related to contractholder-directed equity securities (Unit-linked contract income), (iv) excludes certain amounts related to securitization entities that are variable interest entities (VIEs) consolidated under GAAP (Securitization entities income); and (v) includes distributions of profits from certain other limited partnership interests that were previously accounted for under the cost method, but are now accounted for at estimated fair value, where the change in estimated fair value is recognized in NIGL under GAAP (Certain partnership distributions); and * Other revenues is adjusted for settlements of foreign currency earnings hedges and excludes fees received in association with services provided under transition service agreements (TSA fees).

The following additional adjustments are made to expenses, in the line items indicated, in calculating adjusted expenses:

* Policyholder benefits and claims and policyholder dividends excludes: (i) amortization of basis adjustments associated with de-designated fair value hedges of future policy benefits (PBC hedge adjustments), (ii) changes in the policyholder dividend obligation related to NIGL and NDGL (PDO adjustments), (iii) inflation-indexed benefit adjustments associated with contracts backed by inflation-indexed investments and amounts associated with periodic crediting rate adjustments based on the total return of a contractually referenced pool of assets and other pass-through adjustments (Inflation and pass-through adjustments), (iv) benefits and hedging costs related to GMIBs (GMIB costs), and (v) market value adjustments associated with surrenders or terminations of contracts (Market value adjustments); * Interest credited to policyholder account balances includes adjustments for earned income on derivatives and amortization of premium on derivatives that are hedges of policyholder account balances but do not qualify for hedge accounting treatment (PAB hedge adjustments) and excludes certain amounts related to net investment income earned on contractholder-directed equity securities (Unit-linked contract costs); * Amortization of DAC and value of business acquired (VOBA) excludes amounts related to: (i) NIGL and NDGL, (ii) GMIB fees and GMIB costs and (iii) Market value adjustments; * Amortization of negative VOBA excludes amounts related to Market value adjustments; * Interest expense on debt excludes certain amounts related to securitization entities that are VIEs consolidated under GAAP (Securitization entities debt expense); and * Other expenses excludes: (i) noncontrolling interests, (ii) implementation of new insurance regulatory requirements costs (Regulatory implementation costs), and (iii) acquisition, integration and other costs. Other expenses includes TSA fees.

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

The tax impact of the adjustments mentioned above are calculated net of the U.S. or foreign statutory tax rate, which could differ from MetLife'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.

In addition, adjusted earnings available to common shareholders excludes the impact of preferred stock redemption premium, which is reported as a reduction to net income (loss) available to MetLife, Inc.'s common shareholders.

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

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

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

* Total MetLife, Inc.'s common stockholders' equity, excluding AOCI other than FCTA: total MetLife, Inc.'s common stockholders' equity, excluding the net unrealized investment gains (losses) and defined benefit plans adjustment components of AOCI, net of income tax. * Total MetLife, Inc.'s common stockholders' equity, excluding total notable items (excludes AOCI other than FCTA): total MetLife, Inc.'s common stockholders' equity, excluding the net unrealized investment gains (losses), defined benefit plans adjustment components of AOCI and total notable items, net of income tax. * Return on MetLife, Inc.'s common stockholders' equity: net income (loss) available to MetLife, Inc.'s common shareholders divided by MetLife, Inc.'s average common stockholders' equity. * Adjusted return on MetLife, Inc.'s common stockholders' equity: adjusted earnings available to common shareholders divided by MetLife, Inc.'s average common stockholders' equity. * Adjusted return on MetLife, Inc.'s common stockholders' equity, excluding AOCI other than FCTA: adjusted earnings available to common shareholders divided by MetLife, Inc.'s average common stockholders' equity, excluding AOCI other than FCTA. * Adjusted return on MetLife, Inc.'s common stockholders' equity, excluding total notable items (excludes AOCI other than FCTA): adjusted earnings available to common shareholders, excluding total notable items, divided by MetLife, Inc.'s average common stockholders' equity, excluding total notable items (excludes AOCI other than FCTA). * Allocated equity: portion of MetLife, Inc.'s common stockholders' equity that management allocates to each of its segments and sub-segments based on local capital requirements and economic capital. Economic capital is an internally developed risk capital model, the purpose of which is to measure the risk in the business and to provide a basis upon which capital is deployed. MetLife management periodically reviews this model to ensure that it remains consistent with emerging industry practice standards and the local capital requirements; allocated equity may be adjusted if warranted by such review. Allocated equity excludes the impact of AOCI other than FCTA. * Adjusted return on allocated equity: adjusted earnings available to common shareholders divided by allocated equity.

The above measures represent a level of equity consistent with the view that, in the ordinary course of business, MetLife does not plan to sell most investments for the sole purpose of realizing gains or losses.

* Total MetLife, Inc.'s tangible common stockholders' equity or tangible equity: total MetLife, Inc.'s common stockholders' equity, excluding AOCI other than FCTA, reduced by the impact of goodwill, value of distribution agreements (VODA) and value of customer relationships acquired (VOCRA), all net of income tax. * Total MetLife, Inc.'s tangible common stockholders' equity, adjusted for total notable items: total MetLife, Inc.'s common stockholders' equity, excluding AOCI other than FCTA, reduced by the impact of goodwill, VODA, VOCRA and total notable items, all net of income tax. * Adjusted return on MetLife, Inc.'s tangible common stockholders' equity: adjusted earnings available to common shareholders, excluding amortization of VODA and VOCRA, net of income tax, divided by MetLife, Inc.'s average tangible common stockholders' equity. * Allocated tangible equity: allocated equity reduced by the impact of goodwill, VODA and VOCRA, all net of income tax. * Adjusted return on allocated tangible equity: adjusted earnings available to common shareholders, excluding amortization of VODA and VOCRA, net of income tax, divided by allocated tangible equity.

The above measures are, when considered in conjunction with regulatory capital ratios, a measure of capital adequacy.

Expense ratio, direct expense ratio, adjusted expense ratio and related measures

* Expense ratio: other expenses, net of capitalization of DAC, divided by premiums, fees and other revenues. * Direct expense ratio: adjusted direct expenses, divided by adjusted premiums, fees and other revenues. * Direct expense ratio, excluding total notable items related to direct expenses and PRT: adjusted direct expenses, excluding total notable items related to direct expenses, divided by adjusted premiums, fees and other revenues, excluding PRT. * Adjusted expense ratio: adjusted other expenses, net of adjusted capitalization of DAC, divided by adjusted premiums, fees and other revenues. * Adjusted expense ratio, excluding total notable items related to adjusted other expenses and PRT: adjusted other expenses, net of adjusted capitalization of DAC, excluding total notable items related to adjusted other expenses, divided by adjusted premiums, fees and other revenues, excluding PRT.

Asia General account (GA) assets under management (GA AUM) and related measures

Asia GA AUM is used by MetLife to describe assets in its Asia GA investment portfolio which are actively managed and stated at estimated fair value. Asia GA AUM is comprised of Asia GA total investments and cash and cash equivalents, excluding policy loans, contractholder-directed equity securities, fair value option securities and certain other invested assets, as substantially all of these assets are not actively managed in MetLife's Asia GA investment portfolio. Mortgage loans (including commercial, agricultural and residential) and real estate and real estate joint ventures included in Asia GA AUM (at net asset value, net of deduction for encumbering debt) have been adjusted from carrying value to estimated fair value. At the segment level, intersegment balances (intercompany activity, primarily related to investments in subsidiaries, that eliminate at the MetLife consolidated level) are excluded from Asia GA AUM.

Asia GA AUM (at amortized cost) excludes the following adjustments: (i) unrealized gain (loss) on investments carried at estimated fair value and (ii) adjustments from carrying value to estimated fair value on mortgage loans (including commercial, agricultural and residential) and real estate and real estate joint ventures. Asia GA AUM (at amortized cost) is presented net of related allowance for credit loss.

Statistical sales information:

* U.S.: Group Benefits: calculated using 10% of single premium deposits and 100% of annualized full-year premiums and fees from recurring premium policy sales of all products. Retirement and Income Solutions: calculated using 10% of single premium deposits and 100% of annualized full-year premiums and fees only from recurring premium policy sales of specialized benefit resources and corporate-owned life insurance. * Latin America, Asia and EMEA: calculated using 10% of single-premium deposits (mainly from retirement products such as variable annuity, fixed annuity and pensions), 20% of single-premium deposits from credit insurance and 100% of annualized full-year premiums and fees from recurring-premium policy sales of all products (mainly from risk and protection products such as individual life, accident & health and group).

Sales statistics do not correspond to revenues under GAAP, but are used as relevant measures of business activity.

The following additional information is relevant to an understanding of MetLife's performance results and outlook:

* Volume growth, as discussed in the context of business growth, is the period over period percentage change in adjusted earnings available to common shareholders attributable to adjusted premiums, fees and other revenues and assets under management levels, applying a model in which certain margins and factors are held constant. The most significant of such items are underwriting margins, investment margins, changes in equity market performance, expense margins and the impact of changes in foreign currency exchange rates. * MetLife uses a measure of free cash flow to facilitate an understanding of its ability to generate cash for reinvestment into its businesses or use in non-mandatory capital actions. MetLife defines free cash flow as the sum of cash available at MetLife's holding companies from dividends from operating subsidiaries, expenses and other net flows of the holding companies (including capital contributions to subsidiaries), and net contributions from debt to be at or below target leverage ratios. This measure of free cash flow is prior to capital actions, such as common stock dividends and repurchases, debt reduction and mergers and acquisitions. Free cash flow should not be viewed as a substitute for net cash provided by (used in) operating activities calculated in accordance with GAAP. The free cash flow ratio is typically expressed as a percentage of annual adjusted earnings available to common shareholders. * Notable items reflect the unexpected impact of events that affect MetLife's results, but that were unknown and that MetLife could not anticipate when it devised its business plan. Notable items also include certain items regardless of the extent anticipated in the business plan, to help investors have a better understanding of MetLife's results and to evaluate and forecast those results. Notable items represent a positive (negative) impact to adjusted earnings available to common shareholders. * We refer to observable forward yield curves as of a particular date in connection with making our estimates for future results. The observable forward yield curves at a given time are based on implied future interest rates along a range of interest rate durations. This includes the 10-year U.S. Treasury rate which we use as a benchmark rate to describe longer-term interest rates used in our estimates for future results.

Forward-Looking Statements

This news release may contain or incorporate by reference information that includes or is based upon forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements give expectations or forecasts of future events and do not relate strictly to historical or current facts. They use words and terms such as "anticipate," "assume," "believe," "continue," "could," "estimate," "expect," "if," "intend," "likely," "may," "plan," "potential," "project," "should," "will," "would," and other words and terms of similar meaning or that are otherwise tied to future periods or future performance, in each case in all derivative forms. They include statements relating to future actions, prospective services or products, future performance or results of current and anticipated services or products, future sales efforts, future expenses, the outcome of contingencies such as legal proceedings, and future trends in operations and financial results.

Many factors determine the results of MetLife, Inc., its subsidiaries and affiliates, and they involve unpredictable risks and uncertainties. Our forward-looking statements depend on our assumptions, our expectations, and our understanding of the economic environment, but they may be inaccurate and may change. MetLife, Inc. does not guarantee any future performance. Our results could differ materially from those MetLife, Inc. expresses or implies in forward-looking statements. The risks, uncertainties and other factors identified in MetLife, Inc.'s filings with the U.S. Securities and Exchange Commission, and others, may cause such differences. These factors include:

economic condition difficulties, including risks relating to public health, interest rates, credit spreads, equity, real estate, obligors and(1) counterparties, currency exchange rates, derivatives, and terrorism and security;

(2) global capital and credit market adversity;

(3) credit facility inaccessibility;

(4) financial strength or credit ratings downgrades;

(5) unavailability, unaffordability, or inadequate reinsurance;

statutory life insurance reserve financing costs or limited market(6) capacity;

(7) legal, regulatory, and supervisory and enforcement policy changes;

(8) changes in tax rates, tax laws or interpretations;

(9) litigation and regulatory investigations;

London Interbank Offered Rate termination and transition to alternative(10) reference rates;

unsuccessful efforts to meet all environmental, social, and governance(11) standards or to enhance our sustainability;

(12) MetLife, Inc.'s inability to pay dividends and repurchase common stock;

(13) MetLife, Inc.'s subsidiaries' inability to pay it dividends;

(14) investment defaults, downgrades, or volatility;

(15) investment sales or lending difficulties;

(16) collateral or derivative-related payments;

(17) investment valuations, allowances, or impairments changes;

claims or other results that differ from our estimates, assumptions, or(18) models;

(19) global political, legal, or operational risks;

(20) business competition;

(21) technological change;

(22) catastrophes;

(23) climate changes or responses to it;

(24) deficiencies in our closed block;

goodwill or other asset impairment, or deferred income tax asset(25) allowance;

acceleration of amortization of DAC, deferred sales inducements, VOBA, or(26) VOCRA;

(27) product guarantee volatility, costs, and counterparty risks;

(28) risk management failures;

(29) insufficient protection from operational risks;

confidential information protection or other cybersecurity or disaster(30) recovery failures;

(31) accounting standards changes;

(32) excessive risk-taking;

(33) marketing and distribution difficulties;

(34) pension and other postretirement benefit assumption changes;

inability to protect our intellectual property or avoid infringement(35) claims;

acquisition, integration, growth, disposition, or reorganization(36) difficulties;

(37) Brighthouse Financial, Inc. separation risks;

MetLife, Inc.'s Board of Directors influence over the outcome of(38) stockholder votes through the voting provisions of the MetLife Policyholder Trust; and

(39) legal- and corporate governance-related effects on business combinations.

MetLife, Inc. will not publicly correct or update any forward-looking statements if MetLife, Inc. believes it is not likely to achieve them or for any other reasons. Please consult any further disclosures MetLife, Inc. makes on related subjects in subsequent reports to the U.S. Securities and Exchange Commission.

MetLife, Inc.

GAAP Interim Condensed Consolidated Statements of Operations

(Unaudited)

(In millions)



For the Three Months Ended

September 30,

2021 2020

Revenues

Premiums $ 9,455 $ 9,935

Universal life and investment-type product policy 1,521 1,497 fees

Net investment income 5,568 4,729

Other revenues 663 455

Net investment gains (losses) (84 ) (20 )

Net derivative gains (losses) (218 ) (581 )

Total revenues 16,905 16,015



Expenses

Policyholder benefits and claims 10,103 10,000

Interest credited to policyholder account balances 1,287 1,416

Policyholder dividends 189 206

Capitalization of DAC (635 ) (764 )

Amortization of DAC and VOBA 816 1,066

Amortization of negative VOBA (6 ) (15 )

Interest expense on debt 240 229

Other expenses 2,869 2,954

Total expenses 14,863 15,092



Income (loss) before provision for income tax 2,042 923

Provision for income tax expense (benefit) 453 214

Net income (loss) 1,589 709

Less: Net income (loss) attributable to 5 3 noncontrolling interests

Net income (loss) attributable to MetLife, Inc. 1,584 706

Less: Preferred stock dividends 63 59

Preferred stock redemption premium - 14

Net income (loss) available to MetLife, Inc.'s common $ 1,521 $ 633 shareholders



See footnotes on last page.

MetLife, Inc.

(Unaudited)

(In millions, except per share data)

For the Three Months Ended

September 30,

2021

2020

Reconciliation to Adjusted Earnings Available to Common Shareholders

Earnings Per

Weighted

Average

Common Share

Diluted (1)

Earnings Per

Weighted

Average

Common Share

Diluted (1)

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

$

1,521

$

1.77

$

633

$

0.69

Adjustments from net income (loss) available to common shareholders to adjusted earnings available to common shareholders:

Less: Net investment gains (losses)

(84

)

(0.10

)

(20

)

(0.02

)

Net derivative gains (losses)

(218

)

(0.25

)

(581

)

(0.64

)

Premiums

57

0.07

-

-

Universal life and investment-type product policy fees

84

0.10

28

0.03

Net investment income

(100

)

(0.12

)

41

0.04

Other revenues

79

0.09

39

0.04

Policyholder benefits and claims and policyholder dividends

(181

)

(0.20

)

(237

)

(0.26

)

Interest credited to policyholder account balances

(120

)

(0.14

)

(267

)

(0.28

)

Capitalization of DAC

15

0.02

-

-

Amortization of DAC and VOBA

(58

)

(0.07

)

(71

)

(0.08

)

Amortization of negative VOBA

-

-

-

-

Interest expense on debt

-

-

-

-

Other expenses

(109

)

(0.12

)

(55

)

(0.06

)

Goodwill impairment

-

-

-

-

Provision for income tax (expense) benefit

99

0.11

195

0.21

Add: Net income (loss) attributable to noncontrolling interests

5

0.01

3

-

Preferred stock redemption premium

-

-

14

0.02

Adjusted earnings available to common shareholders

2,062

2.39

1,578

1.73

Less: Total notable items (2)

(140

)

(0.16

)

(203

)

(0.22

)

Adjusted earnings available to common shareholders, excluding total notable items (2)

$

2,202

$

2.56

$

1,781

$

1.95

Adjusted earnings available to common shareholders on a constant currency basis

$

2,062

$

2.39

$

1,581

$

1.73

Adjusted earnings available to common shareholders, excluding total notable items, on a constant currency basis (2)

$

2,202

$

2.56

$

1,784

$

1.95

Weighted average common shares outstanding - diluted

861.2

913.7

See footnotes on last page.

MetLife, Inc.

(Unaudited)

(In millions, except per share data)



For the Three Months Ended

September 30,

2021 2020

Earnings Earnings Per Per

Weighted WeightedReconciliation to AdjustedEarnings Available to Common Average AverageShareholders Common Common Share Share

Diluted Diluted (1) (1)

Net income (loss) available toMetLife, Inc.'s common $ 1,521 $ 1.77 $ 633 $ 0.69 shareholders



Adjustments from net income(loss) available to commonshareholders to adjusted earnings available to commonshareholders:

Less: Net investment gains (84 ) (0.10 ) (20 ) (0.02 )(losses)

Net derivative gains (losses) (218 ) (0.25 ) (581 ) (0.64 )

Premiums 57 0.07 - -

Universal life andinvestment-type product policy 84 0.10 28 0.03 fees

Net investment income (100 ) (0.12 ) 41 0.04

Other revenues 79 0.09 39 0.04

Policyholder benefits andclaims and policyholder (181 ) (0.20 ) (237 ) (0.26 )dividends

Interest credited to (120 ) (0.14 ) (267 ) (0.28 )policyholder account balances

Capitalization of DAC 15 0.02 - -

Amortization of DAC and VOBA (58 ) (0.07 ) (71 ) (0.08 )

Amortization of negative VOBA - - - -

Interest expense on debt - - - -

Other expenses (109 ) (0.12 ) (55 ) (0.06 )

Goodwill impairment - - - -

Provision for income tax 99 0.11 195 0.21 (expense) benefit

Add: Net income (loss)attributable to noncontrolling 5 0.01 3 - interests

Preferred stock redemption - - 14 0.02 premium

Adjusted earnings available to 2,062 2.39 1,578 1.73 common shareholders

Less: Total notable items (2) (140 ) (0.16 ) (203 ) (0.22 )

Adjusted earnings available tocommon shareholders, excluding $ 2,202 $ 2.56 $ 1,781 $ 1.95 total notable items (2)



Adjusted earnings available tocommon shareholders on a $ 2,062 $ 2.39 $ 1,581 $ 1.73 constant currency basis

Adjusted earnings available tocommon shareholders, excluding $ 2,202 $ 2.56 $ 1,784 $ 1.95 total notable items, on aconstant currency basis (2)



Weighted average common shares 861.2 913.7 outstanding - diluted



See footnotes on last page.

MetLife, Inc.

(Unaudited)

(In millions)

For the Three Months Ended

September 30,

2021

2020

Premiums, Fees and Other Revenues

Premiums, fees and other revenues

$

11,639

$

11,887

Less: Unearned revenue adjustments

46

2

GMIB fees

25

26

Settlement of foreign currency earnings hedges

-

-

TSA fees

73

39

Divested businesses

76

-

Adjusted premiums, fees and other revenues

$

11,419

$

11,820

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

$

11,419

$

11,828

Less: Pension risk transfers (PRT) (3)

(24

)

487

Adjusted premiums, fees and other revenues, excluding PRT, on a constant currency basis

$

11,443

$

11,341

Net Investment Income

Net investment income

$

5,568

$

4,729

Less: Investment hedge adjustments

(228

)

(229

)

Operating joint venture adjustments

(1

)

-

Unit-linked contract income

114

262

Securitization entities income

-

-

Certain partnership distributions

(1

)

-

Divested businesses

16

8

Adjusted net investment income

$

5,668

$

4,688

Revenues and Expenses

Total revenues

$

16,905

$

16,015

Less: Net investment gains (losses)

(84

)

(20

)

Less: Net derivative gains (losses)

(218

)

(581

)

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

46

2

Less: Other adjustments to revenues:

GMIB fees

25

26

Investment hedge adjustments

(228

)

(229

)

Operating joint venture adjustments

(1

)

-

Unit-linked contract income

114

262

Securitization entities income

-

-

Certain partnership distributions

(1

)

-

Settlement of foreign currency earnings hedges

-

-

TSA fees

73

39

Divested businesses

92

8

Total adjusted revenues

$

17,087

$

16,508

Total expenses

$

14,863

$

15,092

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

31

64

Less: Goodwill impairment

-

-

Less: Other adjustments to expenses:

PBC hedge adjustments

8

9

Inflation and pass-through adjustments

-

(37

)

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

129

238

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

21

21

PAB hedge adjustments

(1

)

(1

)

Unit-linked contract costs

116

266

Securitization entities debt expense

-

-

Noncontrolling interest

(7

)

(4

)

Regulatory implementation costs

-

6

Acquisition, integration and other costs

2

7

TSA fees

73

39

Divested businesses

81

22

Total adjusted expenses

$

14,410

$

14,462

See footnotes on last page.

MetLife, Inc.

(Unaudited)

(In millions)



For the Three Months Ended

September 30,

2021 2020

Premiums, Fees and Other Revenues

Premiums, fees and other revenues $ 11,639 $ 11,887

Less: Unearned revenue adjustments 46 2

GMIB fees 25 26

Settlement of foreign currency earnings hedges - -

TSA fees 73 39

Divested businesses 76 -

Adjusted premiums, fees and other revenues $ 11,419 $ 11,820



Adjusted premiums, fees and other revenues, on a $ 11,419 $ 11,828 constant currency basis

Less: Pension risk transfers (PRT) (3) (24 ) 487

Adjusted premiums, fees and other revenues, excluding $ 11,443 $ 11,341 PRT, on a constant currency basis



Net Investment Income

Net investment income $ 5,568 $ 4,729

Less: Investment hedge adjustments (228 ) (229 )

Operating joint venture adjustments (1 ) -

Unit-linked contract income 114 262

Securitization entities income - -

Certain partnership distributions (1 ) -

Divested businesses 16 8

Adjusted net investment income $ 5,668 $ 4,688



Revenues and Expenses

Total revenues $ 16,905 $ 16,015

Less: Net investment gains (losses) (84 ) (20 )

Less: Net derivative gains (losses) (218 ) (581 )

Less: Adjustments related to net investment gains 46 2 (losses) and net derivative gains (losses)

Less: Other adjustments to revenues:

GMIB fees 25 26

Investment hedge adjustments (228 ) (229 )

Operating joint venture adjustments (1 ) -

Unit-linked contract income 114 262

Securitization entities income - -

Certain partnership distributions (1 ) -

Settlement of foreign currency earnings hedges - -

TSA fees 73 39

Divested businesses 92 8

Total adjusted revenues $ 17,087 $ 16,508



Total expenses $ 14,863 $ 15,092

Less: Adjustments related to net investment gains 31 64 (losses) and net derivative gains (losses)

Less: Goodwill impairment - -

Less: Other adjustments to expenses:

PBC hedge adjustments 8 9

Inflation and pass-through adjustments - (37 )

GMIB costs and amortization of DAC and VOBA related to 129 238 GMIB fees and GMIB costs

Market value adjustments and amortization of DAC, VOBA 21 21 and negative VOBA related to market value adjustments

PAB hedge adjustments (1 ) (1 )

Unit-linked contract costs 116 266

Securitization entities debt expense - -

Noncontrolling interest (7 ) (4 )

Regulatory implementation costs - 6

Acquisition, integration and other costs 2 7

TSA fees 73 39

Divested businesses 81 22

Total adjusted expenses $ 14,410 $ 14,462



See footnotes on last page.

MetLife, Inc.

(Unaudited)

(In millions, except per share and ratio data)

For the Three Months Ended

September 30,

2021

2020

Expense Detail and Ratios

Reconciliation of Capitalization of DAC to Adjusted Capitalization of DAC

Capitalization of DAC

$

(635

)

$

(764

)

Less: Divested businesses

(15

)

-

Adjusted capitalization of DAC

$

(620

)

$

(764

)

Reconciliation of Other Expenses to Adjusted Other Expenses

Other expenses

$

2,869

$

2,954

Less: Noncontrolling interests

(7

)

(4

)

Less: Regulatory implementation costs

-

6

Less: Acquisition, integration and other costs

2

7

Less: TSA fees

73

39

Less: Divested businesses

41

7

Adjusted other expenses

$

2,760

$

2,899

Other Detail and Ratios

Other expenses

$

2,869

$

2,954

Capitalization of DAC

(635

)

(764

)

Other expenses, net of capitalization of DAC

$

2,234

$

2,190

Premiums, fees and other revenues

$

11,639

$

11,887

Expense ratio

19.2

%

18.4

%

Direct expenses

$

1,266

$

1,288

Less: Total notable items related to direct expenses (2)

-

-

Direct expenses, excluding total notable items related to direct expenses (2)

$

1,266

$

1,288

Adjusted other expenses

$

2,760

$

2,899

Adjusted capitalization of DAC

(620

)

(764

)

Adjusted other expenses, net of adjusted capitalization of DAC

2,140

2,135

Less: Total notable items related to adjusted other expenses (2)

-

-

Adjusted other expenses, net of adjusted capitalization of DAC, excluding total notable items related to adjusted other expenses (2)

$

2,140

$

2,135

Adjusted premiums, fees and other revenues

$

11,419

$

11,820

Less: PRT

(24

)

487

Adjusted premiums, fees and other revenues, excluding PRT

$

11,443

$

11,333

Direct expense ratio

11.1

%

10.9

%

Direct expense ratio, excluding total notable items related to direct expenses and PRT (2)

11.1

%

11.4

%

Adjusted expense ratio

18.7

%

18.1

%

Adjusted expense ratio, excluding total notable items related to adjusted other expenses and PRT (2)

18.7

%

18.8

%

See footnotes on last page.

MetLife, Inc.

(Unaudited)

(In millions, except per share and ratio data)



For the Three Months Ended

September 30,

2021 2020

Expense Detail and Ratios



Reconciliation of Capitalization of DAC to Adjusted Capitalization of DAC

Capitalization of DAC $ (635 ) $ (764 )

Less: Divested businesses (15 ) -

Adjusted capitalization of DAC $ (620 ) $ (764 )



Reconciliation of Other Expenses to Adjusted Other Expenses

Other expenses $ 2,869 $ 2,954

Less: Noncontrolling interests (7 ) (4 )

Less: Regulatory implementation costs - 6

Less: Acquisition, integration and other costs 2 7

Less: TSA fees 73 39

Less: Divested businesses 41 7

Adjusted other expenses $ 2,760 $ 2,899



Other Detail and Ratios

Other expenses $ 2,869 $ 2,954

Capitalization of DAC (635 ) (764 )

Other expenses, net of capitalization of DAC $ 2,234 $ 2,190



Premiums, fees and other revenues $ 11,639 $ 11,887



Expense ratio 19.2 % 18.4 %



Direct expenses $ 1,266 $ 1,288

Less: Total notable items related to direct expenses - - (2)

Direct expenses, excluding total notable items $ 1,266 $ 1,288 related to direct expenses (2)



Adjusted other expenses $ 2,760 $ 2,899

Adjusted capitalization of DAC (620 ) (764 )

Adjusted other expenses, net of adjusted 2,140 2,135 capitalization of DAC

Less: Total notable items related to adjusted other - - expenses (2)

Adjusted other expenses, net of adjustedcapitalization of DAC, excluding total notable items $ 2,140 $ 2,135 related to adjusted other expenses (2)



Adjusted premiums, fees and other revenues $ 11,419 $ 11,820

Less: PRT (24 ) 487

Adjusted premiums, fees and other revenues, excluding $ 11,443 $ 11,333 PRT



Direct expense ratio 11.1 % 10.9 %

Direct expense ratio, excluding total notable items 11.1 % 11.4 %related to direct expenses and PRT (2)

Adjusted expense ratio 18.7 % 18.1 %

Adjusted expense ratio, excluding total notable items 18.7 % 18.8 %related to adjusted other expenses and PRT (2)



See footnotes on last page.

MetLife, Inc.

(Unaudited)

(In millions, except per share data)

September 30,

Equity Details

2021

2020

Total MetLife, Inc.'s stockholders' equity

$

69,050

$

73,316

Less: Preferred stock

3,818

4,312

MetLife, Inc.'s common stockholders' equity

65,232

69,004

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

18,658

22,869

Defined benefit plans adjustment, net of income tax

(1,805

)

(1,954

)

Total MetLife, Inc.'s common stockholders' equity, excluding AOCI other than FCTA

48,379

48,089

Less: Goodwill, net of income tax

9,317

9,021

VODA and VOCRA, net of income tax

763

253

Total MetLife, Inc.'s tangible common stockholders' equity

$

38,299

$

38,815

September 30,

2021

2020

Total MetLife, Inc.'s common stockholders' equity, excluding AOCI other than FCTA

$

48,379

$

48,089

Less: Accumulated year-to-date total notable items (2)

(74

)

(203

)

Total MetLife, Inc.'s common stockholders' equity, excluding total notable items (excludes AOCI other than FCTA) (2)

48,453

48,292

Less: Goodwill, net of income tax

9,317

9,021

VODA and VOCRA, net of income tax

763

253

Total MetLife, Inc.'s tangible common stockholders' equity, excluding total notable items (2)

$

38,373

$

39,018

September 30,

Book Value (4)

2021

2020

Book value per common share

$

77.24

$

76.20

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

22.09

25.26

Defined benefit plans adjustment, net of income tax

(2.14

)

(2.16

)

Book value per common share, excluding AOCI other than FCTA

57.29

53.10

Less: Goodwill, net of income tax

11.04

9.96

VODA and VOCRA, net of income tax

0.90

0.28

Book value per common share - tangible common stockholders' equity

$

45.35

$

42.86

Common shares outstanding, end of period (5)

844.5

905.6

For the Three Months Ended

September 30,

Average Common Stockholders' Equity

2021

2020

Average common stockholders' equity

$

65,276

$

70,193

Average common stockholders' equity, excluding AOCI other than FCTA

$

48,464

$

47,763

Average common stockholders' equity, excluding total notable items (excludes AOCI other than FCTA) (2)

$

48,468

$

47,864

Average tangible common stockholders' equity

$

38,335

$

38,539

Average tangible common stockholders' equity, excluding total notable items (2)

$

38,339

$

38,640

See footnotes on last page.

MetLife, Inc.

(Unaudited)

(In millions, except per share data)



September 30,

Equity Details 2021 2020

Total MetLife, Inc.'s stockholders' equity $ 69,050 $ 73,316

Less: Preferred stock 3,818 4,312

MetLife, Inc.'s common stockholders' equity 65,232 69,004

Less: Net unrealized investment gains (losses), net 18,658 22,869 of income tax

Defined benefit plans adjustment, net of income tax (1,805 ) (1,954 )

Total MetLife, Inc.'s common stockholders' equity, 48,379 48,089 excluding AOCI other than FCTA

Less: Goodwill, net of income tax 9,317 9,021

VODA and VOCRA, net of income tax 763 253

Total MetLife, Inc.'s tangible common stockholders' $ 38,299 $ 38,815 equity



September 30,

2021 2020

Total MetLife, Inc.'s common stockholders' equity, $ 48,379 $ 48,089 excluding AOCI other than FCTA

Less: Accumulated year-to-date total notable items (74 ) (203 )(2)

Total MetLife, Inc.'s common stockholders' equity,excluding total notable items (excludes AOCI other 48,453 48,292 than FCTA) (2)

Less: Goodwill, net of income tax 9,317 9,021

VODA and VOCRA, net of income tax 763 253

Total MetLife, Inc.'s tangible common stockholders' $ 38,373 $ 39,018 equity, excluding total notable items (2)



September 30,

Book Value (4) 2021 2020

Book value per common share $ 77.24 $ 76.20

Less: Net unrealized investment gains (losses), net 22.09 25.26 of income tax

Defined benefit plans adjustment, net of income tax (2.14 ) (2.16 )

Book value per common share, excluding AOCI other 57.29 53.10 than FCTA

Less: Goodwill, net of income tax 11.04 9.96

VODA and VOCRA, net of income tax 0.90 0.28

Book value per common share - tangible common $ 45.35 $ 42.86 stockholders' equity



Common shares outstanding, end of period (5) 844.5 905.6





For the Three Months Ended

September 30,

Average Common Stockholders' Equity 2021 2020

Average common stockholders' equity $ 65,276 $ 70,193

Average common stockholders' equity, excluding AOCI $ 48,464 $ 47,763 other than FCTA

Average common stockholders' equity, excluding total $ 48,468 $ 47,864 notable items (excludes AOCI other than FCTA) (2)

Average tangible common stockholders' equity $ 38,335 $ 38,539

Average tangible common stockholders' equity, $ 38,339 $ 38,640 excluding total notable items (2)



See footnotes on last page.

MetLife, Inc.

(Unaudited)

For the Three Months Ended

September 30, (6)

2021

2020

Return on Equity

Return on MetLife, Inc.'s:

Common stockholders' equity

9.3

%

3.6

%

Adjusted return on MetLife, Inc.'s:

Common stockholders' equity

12.6

%

9.0

%

Common stockholders' equity, excluding AOCI other than FCTA

17.0

%

13.2

%

Common stockholders' equity, excluding total notable items (excludes AOCI other than FCTA) (2)

18.2

%

14.9

%

Tangible common stockholders' equity (7)

21.7

%

16.5

%

Tangible common stockholders' equity, excluding total notable items (2), (7)

23.2

%

18.5

%

Adjusted Return on Allocated Equity:

U.S.

38.4

%

32.5

%

Asia

15.5

%

13.0

%

Latin America

4.2

%

5.1

%

EMEA

13.2

%

7.3

%

MetLife Holdings

23.2

%

10.2

%

Adjusted Return on Allocated Tangible Equity:

U.S.

44.8

%

37.3

%

Asia

23.2

%

19.6

%

Latin America

6.6

%

8.3

%

EMEA

22.8

%

12.9

%

MetLife Holdings

25.4

%

11.4

%

See footnotes on last page.

MetLife, Inc.

(Unaudited)



For the Three Months Ended

September 30, (6)

2021 2020

Return on Equity

Return on MetLife, Inc.'s:

Common stockholders' equity 9.3 % 3.6 %



Adjusted return on MetLife, Inc.'s:

Common stockholders' equity 12.6 % 9.0 %

Common stockholders' equity, excluding AOCI other than 17.0 % 13.2 %FCTA

Common stockholders' equity, excluding total notable items 18.2 % 14.9 %(excludes AOCI other than FCTA) (2)

Tangible common stockholders' equity (7) 21.7 % 16.5 %

Tangible common stockholders' equity, excluding total 23.2 % 18.5 %notable items (2), (7)



Adjusted Return on Allocated Equity:

U.S. 38.4 % 32.5 %

Asia 15.5 % 13.0 %

Latin America 4.2 % 5.1 %

EMEA 13.2 % 7.3 %

MetLife Holdings 23.2 % 10.2 %



Adjusted Return on Allocated Tangible Equity:

U.S. 44.8 % 37.3 %

Asia 23.2 % 19.6 %

Latin America 6.6 % 8.3 %

EMEA 22.8 % 12.9 %

MetLife Holdings 25.4 % 11.4 %



See footnotes on last page.

MetLife, Inc.

Adjusted Earnings Available to Common Shareholders

(Unaudited)

(In millions)

For the Three Months Ended

September 30,

2021

2020

U.S. (3), (8):

Adjusted earnings available to common shareholders

$

895

$

900

Less: Total notable items (2)

-

-

Adjusted earnings available to common shareholders, excluding total notable items (2)

$

895

$

900

Adjusted premiums, fees and other revenues

$

6,408

$

6,833

Less: PRT

(24

)

487

Adjusted premiums, fees and other revenues, excluding PRT

$

6,432

$

6,346

Group Benefits (3):

Adjusted earnings available to common shareholders

$

111

$

392

Less: Total notable items (2)

-

-

Adjusted earnings available to common shareholders, excluding total notable items (2)

$

111

$

392

Adjusted premiums, fees and other revenues

$

5,517

$

4,901

Retirement & Income Solutions (3):

Adjusted earnings available to common shareholders

$

784

$

490

Less: Total notable items (2)

-

-

Adjusted earnings available to common shareholders, excluding total notable items (2)

$

784

$

490

Adjusted premiums, fees and other revenues

$

891

$

1,024

Less: PRT

(24

)

487

Adjusted premiums, fees and other revenues, excluding PRT

$

915

$

537

Property & Casualty (3), (8):

Adjusted earnings available to common shareholders

$

-

$

18

Less: Total notable items (2)

-

-

Adjusted earnings available to common shareholders, excluding total notable items (2)

$

-

$

18

Adjusted premiums, fees and other revenues

$

-

$

908

See footnotes on last page.

MetLife, Inc.

Adjusted Earnings Available to Common Shareholders

(Unaudited)

(In millions)



For the Three Months Ended

September 30,

2021 2020



U.S. (3), (8):



Adjusted earnings available to common shareholders $ 895 $ 900

Less: Total notable items (2) - -

Adjusted earnings available to common shareholders, $ 895 $ 900excluding total notable items (2)





Adjusted premiums, fees and other revenues $ 6,408 $ 6,833

Less: PRT (24 ) 487

Adjusted premiums, fees and other revenues, excluding PRT $ 6,432 $ 6,346





Group Benefits (3):



Adjusted earnings available to common shareholders $ 111 $ 392

Less: Total notable items (2) - -

Adjusted earnings available to common shareholders, $ 111 $ 392excluding total notable items (2)





Adjusted premiums, fees and other revenues $ 5,517 $ 4,901





Retirement & Income Solutions (3):



Adjusted earnings available to common shareholders $ 784 $ 490

Less: Total notable items (2) - -

Adjusted earnings available to common shareholders, $ 784 $ 490excluding total notable items (2)





Adjusted premiums, fees and other revenues $ 891 $ 1,024

Less: PRT (24 ) 487

Adjusted premiums, fees and other revenues, excluding PRT $ 915 $ 537







Property & Casualty (3), (8):



Adjusted earnings available to common shareholders $ - $ 18

Less: Total notable items (2) - -

Adjusted earnings available to common shareholders, $ - $ 18excluding total notable items (2)





Adjusted premiums, fees and other revenues $ - $ 908



See footnotes on last page.

MetLife, Inc.

Adjusted Earnings Available to Common Shareholders (Continued)

(Unaudited)

(In millions)

For the Three Months Ended

September 30,

2021

2020

Asia:

Adjusted earnings available to common shareholders

$

569

$

465

Less: Total notable items (2)

(79

)

(28

)

Adjusted earnings available to common shareholders, excluding total notable items (2)

$

648

$

493

Adjusted earnings available to common shareholders on a constant currency basis

$

569

$

466

Adjusted earnings available to common shareholders, excluding total notable items, on a constant currency basis (2)

$

648

$

494

Adjusted premiums, fees and other revenues

$

2,088

$

2,265

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

$

2,088

$

2,225

Latin America:

Adjusted earnings available to common shareholders

$

29

$

39

Less: Total notable items (2)

(2

)

(9

)

Adjusted earnings available to common shareholders, excluding total notable items (2)

$

31

$

48

Adjusted earnings available to common shareholders on a constant currency basis

$

29

$

41

Adjusted earnings available to common shareholders, excluding total notable items, on a constant currency basis (2)

$

31

$

50

Adjusted premiums, fees and other revenues

$

988

$

761

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

$

988

$

807

EMEA:

Adjusted earnings available to common shareholders

$

94

$

52

Less: Total notable items (2)

(6

)

(31

)

Adjusted earnings available to common shareholders, excluding total notable items (2)

$

100

$

83

Adjusted earnings available to common shareholders on a constant currency basis

$

94

$

52

Adjusted earnings available to common shareholders, excluding total notable items, on a constant currency basis (2)

$

100

$

83

Adjusted premiums, fees and other revenues

$

670

$

680

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

$

670

$

682

MetLife Holdings (3):

Adjusted earnings available to common shareholders

$

606

$

253

Less: Total notable items (2)

(53

)

(135

)

Adjusted earnings available to common shareholders, excluding total notable items (2)

$

659

$

388

Adjusted premiums, fees and other revenues

$

1,141

$

1,206

Corporate & Other (3):

Adjusted earnings available to common shareholders

$

(131

)

$

(131

)

Less: Total notable items (2)

-

-

Adjusted earnings available to common shareholders, excluding total notable items (2)

$

(131

)

$

(131

)

Adjusted premiums, fees and other revenues

$

124

$

75

See footnotes on last page.

MetLife, Inc.

Adjusted Earnings Available to Common Shareholders (Continued)

(Unaudited)

(In millions)



For the Three Months Ended

September 30,

2021 2020



Asia:



Adjusted earnings available to common shareholders $ 569 $ 465

Less: Total notable items (2) (79 ) (28 )

Adjusted earnings available to common shareholders, $ 648 $ 493 excluding total notable items (2)



Adjusted earnings available to common shareholders on a $ 569 $ 466 constant currency basis

Adjusted earnings available to common shareholders,excluding total notable items, on a constant currency $ 648 $ 494 basis (2)



Adjusted premiums, fees and other revenues $ 2,088 $ 2,265

Adjusted premiums, fees and other revenues, on a $ 2,088 $ 2,225 constant currency basis



Latin America:



Adjusted earnings available to common shareholders $ 29 $ 39

Less: Total notable items (2) (2 ) (9 )

Adjusted earnings available to common shareholders, $ 31 $ 48 excluding total notable items (2)



Adjusted earnings available to common shareholders on a $ 29 $ 41 constant currency basis

Adjusted earnings available to common shareholders,excluding total notable items, on a constant currency $ 31 $ 50 basis (2)



Adjusted premiums, fees and other revenues $ 988 $ 761

Adjusted premiums, fees and other revenues, on a $ 988 $ 807 constant currency basis



EMEA:



Adjusted earnings available to common shareholders $ 94 $ 52

Less: Total notable items (2) (6 ) (31 )

Adjusted earnings available to common shareholders, $ 100 $ 83 excluding total notable items (2)



Adjusted earnings available to common shareholders on a $ 94 $ 52 constant currency basis

Adjusted earnings available to common shareholders,excluding total notable items, on a constant currency $ 100 $ 83 basis (2)



Adjusted premiums, fees and other revenues $ 670 $ 680

Adjusted premiums, fees and other revenues, on a $ 670 $ 682 constant currency basis



MetLife Holdings (3):



Adjusted earnings available to common shareholders $ 606 $ 253

Less: Total notable items (2) (53 ) (135 )

Adjusted earnings available to common shareholders, $ 659 $ 388 excluding total notable items (2)



Adjusted premiums, fees and other revenues $ 1,141 $ 1,206



Corporate & Other (3):



Adjusted earnings available to common shareholders $ (131 ) $ (131 )

Less: Total notable items (2) - -

Adjusted earnings available to common shareholders, $ (131 ) $ (131 )excluding total notable items (2)



Adjusted premiums, fees and other revenues $ 124 $ 75



See footnotes on last page.

MetLife, Inc.

(Unaudited)

(In millions)

For the Three Months Ended

September 30,

2021

2020

Variable investment income (post-tax, in millions) (9)

U.S.

Group Benefits

$

17

$

6

Retirement and Income Solutions

449

164

Property & Casualty (8)

-

16

Total U.S.

466

186

Asia

373

148

Latin America

22

(3

)

EMEA

-

-

MetLife Holdings

487

172

Corporate & Other

65

12

Total variable investment income

$

1,413

$

515

Segments: U.S., Asia, Latin America and EMEA (10)

Capital Deployed

Value Added (VNB)

Internal Rate of

Return (IRR)

Payback (Years)

Value of new business ($ in billions)

2020

$

3.2

$

1.9

17

%

6

2019

$

3.8

$

1.8

15

%

7

2018

$

3.8

$

2.1

15

%

7

2017

$

3.1

$

1.3

14

%

7

2016

$

2.9

$

1.0

14

%

7

See footnotes on last page.

MetLife, Inc.

(Unaudited)

(In millions)



For the Three Months Ended

September 30,

2021 2020

Variable investment income (post-tax, in millions) (9)

U.S.

Group Benefits $ 17 $ 6

Retirement and Income Solutions 449 164

Property & Casualty (8) - 16

Total U.S. 466 186

Asia 373 148

Latin America 22 (3 )

EMEA - -

MetLife Holdings 487 172

Corporate & Other 65 12

Total variable investment income $ 1,413 $ 515





Segments: U.S., Asia, Latin America and EMEA (10)

Internal Capital Value Rate of Payback Deployed Added (Years) (VNB) Return (IRR)

Value of new business ($ in billions)

2020 $ 3.2 $ 1.9 17 % 6

2019 $ 3.8 $ 1.8 15 % 7

2018 $ 3.8 $ 2.1 15 % 7

2017 $ 3.1 $ 1.3 14 % 7

2016 $ 2.9 $ 1.0 14 % 7



See footnotes on last page.

MetLife, Inc.

(Unaudited)

Cash & Capital (11), (12)

(In billions)

September 30

2021

2020

Holding Companies Cash & Liquid Assets

$

5.1

$

7.8

Group Benefits Underwriting (13)

For the Three Months Ended

September 30,

2021

2020

Group Life Mortality Ratio (14)

106.2

%

89.6

%

MetLife, Inc.

(Unaudited)



Cash & Capital (11), (12)

(In billions)



September 30

2021 2020

Holding Companies Cash & Liquid Assets $ 5.1 $ 7.8



Group Benefits Underwriting (13)



For the Three Months Ended

September 30,

2021 2020

Group Life Mortality Ratio (14) 106.2 % 89.6 %

Footnotes

(1)

Adjusted earnings available to common shareholders, excluding total notable items, per diluted common share is calculated on a standalone basis and may not equal (i) adjusted earnings available to common shareholders per diluted common share, less (ii) total notable items per diluted common share.

(2)

Notable items reflect the unexpected impact of events that affect MetLife's results, but that were unknown and that MetLife could not anticipate when it devised its business plan. Notable items also include certain items regardless of the extent anticipated in the business plan, to help investors have a better understanding of MetLife's results and to evaluate and forecast those results. Notable items can affect MetLife's results either positively or negatively.

(3)

Results on a constant currency basis are not included as constant currency impact is not significant.

(4)

Book values exclude $3,818 million and $4,312 million of equity related to preferred stock at September 30, 2021 and 2020, respectively.

(5)

There were share repurchases of $1.0 billion for the three months ended September 30, 2021.

(6)

Annualized using quarter-to-date results.

(7)

Adjusted earnings available to common shareholders, used to calculate the adjusted return on tangible common stockholders' equity, excludes the impact of amortization of VODA and VOCRA, net of income tax, for the three months ended September 30, 2021 and 2020 of $20 million and $7 million, respectively.

(8)

For the three months ended September 30, 2021, U.S. results exclude Property & Casualty as MetLife completed the sale of the business. U.S. results for the three months ended September 30, 2020, include Property & Casualty.

(9)

Assumes a 21% tax rate.

(10)

Excludes the MetLife Holdings segment; Value of New Business is the present value of future profits net of the cost of capital and time value of guarantees from new sales.

(11)

The total U.S. statutory adjusted capital is expected to be approximately $19.7 billion at September 30, 2021, up 16% from December 31, 2020. This balance includes MetLife, Inc.'s principal U.S. insurance subsidiaries, excluding American Life Insurance Company and Metropolitan Property and Casualty Insurance Company from both periods.

(12)

As of June 30, 2021, the solvency margin ratio of MetLife's insurance subsidiary in Japan was 960%, which is calculated quarterly and does not reflect conditions and factors occurring after June 30, 2021.

(13)

Results are derived from insurance and non-administrative services-only contracts.

(14)

Excludes certain experience-rated contracts and includes accidental death and dismemberment. For the three months ended September 30, 2021 there was an estimated (18) percentage point impact to the ratio due to COVID-19 reported deaths with an estimated impact to adjusted earnings of ($290) million.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211103006200/en/

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