MetLife, Inc. · NYSE:MET
MetLife — Q2 2021 Earnings Presentation
21 slides from MetLife's earnings presentation, August 2021
Slide 1: 2Q21 Supplemental Slides
1 2Q21 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. notable items, by segment 4 Group Benefits - Life underwriting performance 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 2Q21 (post-tax) $ in millions $ per share1 Net Income (Loss) $3,366 $3.83 Less: Net Investment Gains (Losses) 1,268 1.44 Net Derivative Gains (Losses) 333 0.38 Investment Hedge Adjustments (167) (0.19) Other (157) (0.18) Adjusted Earnings $2,089 $2.37 Less Nota
Slide 4: Adjusted earnings, ex. notable items, by segment
Adjusted earnings, ex. notable items,1 by segment ($ in millions - post-tax) 2Q21 % 2Q20 Change % Change Highlights2 4 (Constant Rate) + Volume Growth; + Versant; Group Benefits $248 $248 —% - Underwriting Margins Retirement and Income Solutions 654 192 241% + Investment Margins; - Underwriting Marg
Slide 5: 2Q21 Group Benefits - Life underwriting impacted by excess mortality
2Q21 Group Benefits - Life underwriting impacted by excess mortality 2Q21 Group Benefits Life Underwriting Annual Target Underwriting Excess Mortality Excess Mortality Ratio1 Ratio1 Impact on Ratio Impact on Adjusted Highlights Earnings Higher claim frequency 85-90%2 94.3%2 (~7.2 pts) (~$115 million
Slide 6: 2Q21 VII driven by strong private equity returns
2Q21 VII driven by strong private equity returns $1,390 ($ in millions - pre-tax) $1,202 $778 $652 Top end of quarterly range1 $0 ($555) 2Q20 3Q20 4Q20 1Q21 2Q21 Private Equity Other 1 Quarterly VII range of $300 million - $350 million, based on full year 2021 guidance range of $1.2 - $1.4 billion.
Slide 7: VII by segment
VII by segment ($ in millions - post-tax1) 1Q21 2Q21 Group Benefits $11 $14 Retirement and Income Solutions 390 351 U.S. 401 365 Asia 273 218 Latin America 17 22 EMEA — — MetLife Holdings 381 301 Corporate & Other 26 44 Total Variable Investment Income $1,098 $950 1 Post-tax assumes a 21% rate. 7
Slide 8: Favorable 2Q21 direct expense ratio driven by Adjusted PFO growth and ongoing discipline
Favorable 2Q21 direct expense ratio1 driven by Adjusted PFO growth and ongoing discipline 12.4% 12.3% 12.3% Target 12.0% 11.4% 11.4% 11.0% 2Q20 3Q20 4Q20 2020 1Q21 2Q21 1 Direct expense ratio, excluding total notable items related to direct expenses and pension risk transfers (PRT). 8
Slide 9: Cash & capital
Cash & capital Holding Company Cash1 Capital ($ in billions) $7.8 • Higher 2Q21 holding company cash driven by $3.94 billion of proceeds from P&C sale $6.6 $6.5 • Completed $1.1 billion of share repurchases in 2Q21 $4.5 $3.8 • Expected total U.S. Statutory Adjusted Capital2,3 of $18.5 billion at 6/3
Slide 10: Appendix
Appendix Wi MetLife
Slide 11: Sensitivity for Hypothetical Long-Term Interest Rate Assumption Change
Sensitivity for Hypothetical Long-Term Interest Rate Assumption Change1 • Hypothetical impact if long-term interest rate assumption changes from 2.75%: Assumption Change Impact to Net Income GAAP Loss Recognition ($ in millions - post-tax) +/- 25 bps +/- $60 No 1 Included in the assumptions that the
Slide 12: Cautionary Statement on Forward-Looking Statements
Cautionary Statement on Forward-Looking Statements The forward-looking statements in this presentation, which contain words such as "assumes," "estimates," "expected," "guidance," "hypothetical," "if," "long-term," "ongoing," "target," and "will," are based on assumptions and expectations that invol
Slide 13: 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 14: 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 15: 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 16: 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 17: Reconciliation of Net Income (Loss) to Adjusted Earnings Available to Common Shareholders
Reconciliation of Net Income (Loss) Available to MetLife, Inc.'s Common Shareholders to Adjusted Earnings Available to Common Shareholders 2Q21 2Q20 Earnings Per Earnings Per Weighted Weighted Average Average Common Common Share Share Diluted1 Diluted1 (In millions, except per share data) Net Income
Slide 18: Reconciliation to Adjusted Earnings, Excluding Total Notable Items
Reconciliation to Adjusted Earnings Available to Common Shareholders, Excluding Total Notable Items 2Q21 Retirement Group & Income Property & Latin MetLife Corporate U.S.1 Benefits1 Solutions1 Casualty1 Asia America EMEA Holdings1 & Other1 (In millions) Adjusted earnings available to common sharehol
Slide 19: Expense Detail and Ratios
Expense Detail and Ratios (In millions, except ratio data) 2Q20 3Q20 4Q20 2020 1Q21 2Q21 Reconciliation of Capitalization of DAC to Adjusted Capitalization of DAC Capitalization of DAC $ (671) $ (764) $ (804) $ (3,013) $ (775) $ (642) Less: Divested businesses (2) — — (5) (89) — Adjusted capitalizat
Slide 20: Premiums, Fees and Other Revenues
Premiums, Fees and Other Revenues (In millions) 2Q20 3Q20 4Q20 2020 1Q21 2Q21 Total Company - Premiums, Fees and Other Revenues Premiums, fees and other revenues $ 10,491 $ 11,887 $ 15,772 $ 49,486 $ 12,349 $ 11,218 Less: Unearned revenue adjustments 5 2 8 33 — 12 Less: GMIB fees 25 26 25 102 25 24
Slide 21: MetLife - Navigating life together
iy’ MetLife Navigating life together Wi MetLife