MetLife, Inc. · NYSE:MET
MetLife — Q1 2022 Earnings Presentation
20 slides from MetLife's earnings presentation, 2022
Slide 1: 1Q22 Supplemental Slides
Exhibit 99.3 1 1Q22 Supplemental Slides John McCallion Chief Financial Officer 1 These slides highlight information in MetLife, Inc.'s earnings release, quarterly financial supplement and other prior public disclosures.
Slide 2: Table of contents
Table of contents Topic Page No. Net income (loss) to adjusted earnings 3 Adjusted earnings, ex. total notable items, by segment 4 Group Benefits underwriting 5 Variable investment income (VII) 6 Direct expense ratio 8 Cash & capital 9 Appendix 10 2
Slide 3: Net income (loss) to adjusted earnings
Net income (loss) to adjusted earnings 1Q22 (post-tax) $ in millions $ per share1 Net Income (Loss) $606 $0.73 Less: Net Investment Gains (Losses) (409) (0.49) Net Derivative Gains (Losses) (679) (0.82) Investment Hedge Adjustments (170) (0.20) Other 137 0.16 Adjusted Earnings $1,727 $2.08 1 The per
Slide 4: Adjusted earnings, ex. total notable items, by segment
Adjusted earnings, ex. total notable items, by segment % Change Key Drivers1 ($ in millions - post-tax) 1Q22 1Q21 % Change (Constant Rate) Favorable Unfavorable Volume Growth; Group Benefits $112 $93 20% Underwriting Margins Retirement and Income Solutions 581 691 (16%) Volume Growth Investment Marg
Slide 5: Group Benefits underwriting impacted by COVID-19 mortality
Group Benefits underwriting impacted by COVID-19 mortality Group Life Mortality Ratio1,2 1Q22 Highlights Ratio (as reported) Ratio ex. COVID-19 • COVID-19 life claims remain elevated 110.0% 106.3% 106.2% 106.3% • Lower percentage of COVID-19 deaths under 103.8% 105.0% age 65 relative to 4Q21 100.0%
Slide 6: 1Q22 VII driven by private equity returns
1Q22 VII driven by private equity returns ($ in millions - pre-tax) $1,789 $1,390 $1,269 $1,202 $1,185 1Q21 2Q21 3Q21 4Q21 1Q22 Private Equity Other 1 Quarterly VII range of $450 million - $500 million, based on full year 2022 guidance range of $1.8 - $2.0 billion. 6
Slide 7: VII by segment
VII by segment ($ in millions - post-tax1) 1Q21 2Q21 3Q21 4Q21 1Q22 Group Benefits $11 $14 $17 $17 $12 Retirement and Income Solutions 390 351 449 324 277 U.S. 401 365 466 341 289 Asia 273 218 373 307 288 Latin America 17 22 22 17 16 EMEA — — — — — MetLife Holdings 381 301 487 266 208 Corporate & Ot
Slide 8: 1Q22 direct expense ratio of 11.7%, below 12.3% target
1Q22 direct expense ratio1 of 11.7%, below 12.3% target 12.9% 12.3% Target 11.7% 11.4% 11.1% 11.0% 1Q21 2Q21 3Q21 4Q21 1Q22 1 Direct expense ratio, excluding total notable items related to direct expenses and pension risk transfers (PRT). 8
Slide 9: Cash & capital
Cash & capital Holding Company Cash1 Capital ($ in billions) • Share repurchases of $915 million in 1Q22 $6.5 • 2021 Combined NAIC Risk-Based Capital ratio2,3 of 386%, above 360% target $5.4 $5.1 • Expected total U.S. Statutory Adjusted Capital4 of $3.8 $4.2 $18.7 billion at 3/31/22, down 2% from 12
Slide 10: Appendix
Appendix Wi MetLife
Slide 11: Cautionary Statement on Forward-Looking Statements
Cautionary Statement on Forward-Looking Statements The forward-looking statements in this presentation, which contain words such as “anticipate,” “assume,” “believe,” “continue,” “could,” “estimate,” “expect,” “if,” “intend,” “likely,” “may,” “plan,” “potential,” “project,” “should,” “will,” and “wo
Slide 12: Explanatory Note on Non-GAAP and Other Financial Information
Explanatory Note on Non-GAAP and Other Financial Information Any references in this presentation (except in this Explanatory Note on Non-GAAP Financial Information and Reconciliations) to: Should be read as, respectively: (i) net income (loss); (i) net income (loss) available to MetLife, Inc.’s comm
Slide 13: Explanatory Note on Non-GAAP and Other Financial Information (Continued)
Explanatory Note on Non-GAAP and Other Financial Information (Continued) 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
Slide 14: Explanatory Note on Non-GAAP and Other Financial Information (Continued)
Explanatory Note on Non-GAAP and Other Financial Information (Continued) 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 re
Slide 15: Explanatory Note on Non-GAAP and Other Financial Information (Continued)
Explanatory Note on Non-GAAP and Other Financial Information (Continued) 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 I
Slide 16: Reconciliation of Net Income (Loss) to Adjusted Earnings
Reconciliation of Net Income (Loss) Available to MetLife, Inc.'s Common Shareholders to Adjusted Earnings Available to Common Shareholders 1Q22 1Q21 Earnings Per Earnings Per Weighted Weighted Average Average Common Common Share Share Diluted1 Diluted1 (In millions, except per share data) Net Income
Slide 17: Reconciliation to Adjusted Earnings, Excluding Total Notable Items
Reconciliation to Adjusted Earnings Available to Common Shareholders, Excluding Total Notable Items 1Q22 Retirement Group & Income Latin MetLife Corporate U.S.1 Benefits1 Solutions1 Asia America EMEA Holdings1 & Other1 (In millions) Adjusted earnings available to common shareholders $ 693 $ 112 $ 58
Slide 18: Expense Detail and Ratios
Expense Detail and Ratios (In millions, except ratio data) 1Q21 2Q21 3Q21 4Q21 1Q22 Reconciliation of Capitalization of DAC to Adjusted Capitalization of DAC Capitalization of DAC $ (775) $ (642) $ (635) $ (666) $ (650) Less: Divested businesses (89) — (15) (15) (11) Adjusted capitalization of DAC $
Slide 19: Premiums, Fees and Other Revenues
Premiums, Fees and Other Revenues 1Q21 2Q21 3Q21 4Q21 1Q22 Total Company - Premiums, Fees and Other Revenues Premiums, fees and other revenues $ 12,349 $ 11,218 $ 11,639 $ 15,178 $ 12,849 Less: Unearned revenue adjustments — 12 46 13 (8) Less: GMIB fees 25 24 25 24 23 Less: TSA fees 35 60 73 53 47 L
Slide 20: MetLife - Navigating life together
iy’ MetLife Navigating life together Wi MetLife