Appendix




           1
Explanatory Note on Non-GAAP Financial Information
The historical and forward-looking financial information presented at I...
Explanatory Note on Non-GAAP Financial Information (Continued)

 For the historical periods presented, reconciliations of ...
Table of Contents

Definitions ……………………………….……….………………………………………5
Reconciliation
  Reconciliation of Net Income Available t...
Definitions




              5
Definitions
Sales (Total Company):
      Variable annuity sales are on a VARDS basis.

Sales (Institutional):
      Sales ...
Reconciliation




                 7
Reconciliation of Net Income Available to Common Shareholders to
Operating Earnings Available to Common Shareholders -Tota...
Reconciliation of Net Income Available to Common Shareholders per Share to
Operating Earnings Available to Common Sharehol...
Reconciliation of Net Income Available to Common Shareholders to
Operating Earnings Available to Common Shareholders
($ Mi...
Reconciliation of Net Income Available to Common Shareholders to
Operating Earnings Available to Common Shareholders

($ M...
Reconciliation of Book Value per Common Share
                                                              2003         2...
Reconciliation of Premiums, Fees & Other Revenues
($ Millions)                                                            ...
Reconciliation of Operating Expenses and Expense Ratio
                                                               2003...
Reconciliation of Return on Common Equity
                                                     2003              2004     ...
2007 Reconciliation of Return on Common Equity
                                      Institutional       Individual    Int...
Institutional Metrics




                        17
Institutional: 2008 Results
($ Millions)
                                                                2007             ...
Institutional: 2009 Targets
($ Millions)
                                                                                 ...
Institutional: 2007 - 2009 Operating Earnings
($ Millions)
                                                          2007 ...
Group Life: Key Metrics
($ Millions)
                                                                 2007                ...
Retirement & Savings: Key Metrics
($ Millions)
                                                                 2007      ...
Non-Medical Health: Key Metrics
($ Millions)
                                                                 2007        ...
Individual Metrics




                     24
Individual: 2008 Results
($ Millions, except headcount)
                                                                20...
Individual: 2009 Targets
($ Millions, except headcount)
                                                                  ...
Individual: 2007 - 2009 Operating Earnings
($ Millions)
                                            2007                  ...
Individual: 2007 - 2009 Premiums, Fees & Other
($ Millions)
                                                              ...
International Metrics




                        29
International: 2008 Results
($ Millions)
                                                                   2007          ...
International: 2009 Targets

($ Millions)
                                                                                ...
Auto & Home Metrics




                      32
Auto & Home: 2008 Results
($ Millions)
                         2007         2008E
Premiums, Fees & Other   3,009    3,010...
Auto & Home: 2009 Targets
($ Millions)
                                                                                   ...
Investor Day 2008 Appendix
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Investor Day 2008 Appendix

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Investor Day 2008 Appendix

  1. 1. Appendix 1
  2. 2. Explanatory Note on Non-GAAP Financial Information The historical and forward-looking financial information presented at Investor Day and contained in these presentations include performance measures which are based on methodologies other than Generally Accepted Accounting Principles (“GAAP”). MetLife analyzes its performance using so-called non-GAAP measures, including operating earnings, operating earnings available to common shareholders, operating earnings available to common shareholders per diluted common share and operating return on common equity. MetLife believes these measures enhance the understanding and comparability of its performance by excluding net investment gains and losses, net of income tax, and adjustments related to net investment gains and losses, net of income tax, both of which can fluctuate significantly from period to period, and discontinued operations other than discontinued real estate, net of income tax, thereby highlighting the results from operations and the underlying profitability drivers of the business. Operating earnings is defined as GAAP net income, excluding net investment gains and losses, net of income tax, adjustments related to net investment gains and losses, net of income tax, and discontinued operations other than discontinued real estate, net of income tax. Scheduled periodic settlement payments on derivative instruments not qualifying for hedge accounting treatment are included in operating earnings available to common shareholders. Operating earnings available to common shareholders is defined as operating earnings less preferred stock dividends. All references in these slides and in the presentations made at Investor Day to “operating earnings” for 2005 and future years should be read as references to “operating earnings available to common shareholders.” Operating earnings available to common shareholders per diluted common share is calculated by dividing operating earnings available to common shareholders by the number of weighted average diluted common shares outstanding for the period indicated. All references in these slides and in the presentations made at Investor Day to “operating earnings per share” for 2005 and future years should be read as references to “operating earnings available to common shareholders per diluted common share.” Operating return on common equity is calculated by dividing operating earnings available to common shareholders by average common equity for the period indicated, excluding accumulated other comprehensive income. 2
  3. 3. Explanatory Note on Non-GAAP Financial Information (Continued) For the historical periods presented, reconciliations of the non-GAAP measures used in the presentations made at Investor Day to the most directly comparable GAAP measures are included in this Appendix and are on the Investor Relations portion of MetLife, Inc.’s website (www.metlife.com). Additional information about MetLife’s historical financial results is available in the Company’s Quarterly Financial Supplements for the corresponding periods which may be accessed through the Company’s website. The non- GAAP measures used in the presentations made at Investor Day should not be viewed as substitutes for the most directly comparable GAAP measures. In the presentations made at Investor Day, MetLife provides guidance on its future earnings, earnings per diluted common share and return on equity on an operating and non-GAAP basis. A reconciliation of the non-GAAP measures to the most directly comparable GAAP measures is not accessible on a forward-looking basis because MetLife believes it is not possible to provide other than a range of net investment gains and losses, which can fluctuate significantly within or without the range and from period to period and may have a significant impact on GAAP net income. 3
  4. 4. Table of Contents Definitions ……………………………….……….………………………………………5 Reconciliation Reconciliation of Net Income Available to Common Shareholders …..….…….…8 Reconciliation of Book Value per Common Share ….…………………………….12 Reconciliation of Premiums, Fees & Other Revenues .…………………………..13 Reconciliation of Operating Expenses and Expense Ratio ……………………...14 Reconciliation of Return on Common Equity…………………….………………...15 2007 Reconciliation of Return on Common Equity ……………..………………...16 Institutional Metrics ..…………….…………………………………………………...17 Individual Metrics ……………….………………………………………………..……24 International Metrics….………….……………………………………………………29 Auto & Home Metrics ……..…………….…………………………………………….32 4
  5. 5. Definitions 5
  6. 6. Definitions Sales (Total Company): Variable annuity sales are on a VARDS basis. Sales (Institutional): Sales include annualized revenue at issue and initial deposit. Sales (Individual): Variable annuity sales are on a VARDS basis. Fixed annuity and life sales are on a LIMRA basis. Sales (International): Sales include annualized full year premiums and fees from risk and protection products such as life insurance, credit insurance, AD&D, etc., and include joint ventures in Japan and China. Premium Equivalents: The estimated premium amount for administrative services only accounts if they had been fully insured plans. 6
  7. 7. Reconciliation 7
  8. 8. Reconciliation of Net Income Available to Common Shareholders to Operating Earnings Available to Common Shareholders -Total Company 2003 2004 2005 2006 2007 ($ Millions) Total Company Net income available to common shareholders $ 2,196 $ 2,758 $ 4,651 $ 6,159 $ 4,180 Cumulative effect of a change in accounting 26 86 - - - Investment (gains) losses 164 (143) (1,247) (2,000) 554 Adjustments related to investment (gains) losses (140) (34) 36 (74) 24 Discontinued operations (113) (123) (283) (210) (175) Operating earnings available to common shareholders 2,133 2,544 3,157 3,875 4,583 IRS tax audit settlement - (105) - - - Premium tax liability - (31) - - - MetLife Foundation contribution - 32 - - - Race conscious underwriting (92) - - - - Merger of Mexican operations (40) - - - - Change in reserve methodology (22) - - - - New England Financial charge 31 - - - - Operating earnings available to common shareholders, as presented $ 2,010 $ 2,440 $ 3,157 $ 3,875 $ 4,583 8
  9. 9. Reconciliation of Net Income Available to Common Shareholders per Share to Operating Earnings Available to Common Shareholders per Share - Total Company YTD 2003 2004 2005 2006 2007 3Q08 Total Company Net income available to common shareholders per diluted common share $ 2.94 $ 3.65 $ 6.16 $ 7.99 $ 5.48 $ 2.92 Cumulative effect of a change in accounting 0.04 0.11 - - - - Investment (gains) losses 0.22 (0.19) (1.65) (2.60) 0.73 0.34 Adjustments related to investment (gains) losses (0.19) (0.05) 0.05 (0.10) 0.03 (0.19) Discontinued operations (0.15) (0.16) (0.37) (0.27) (0.23) 0.49 Operating earnings available to common shareholders per diluted common share 2.86 3.36 4.19 5.02 6.01 3.56 IRS tax audit settlement - (0.14) - - - - Premium tax liability - (0.04) - - - - MetLife Foundation contribution - 0.04 - - - - Race conscious underwriting (0.13) - - - - - Merger of Mexican operations (0.05) - - - - - Change in reserve methodology (0.03) - - - - - New England Financial charge 0.04 - - - - - Operating earnings available to common shareholders per diluted common share, as presented $ 2.69 $ 3.22 $ 4.19 $ 5.02 $ 6.01 $ 3.56 9
  10. 10. Reconciliation of Net Income Available to Common Shareholders to Operating Earnings Available to Common Shareholders ($ Millions) 2003 2004 2005 2006 2007 Total Institutional Net income available to common shareholders $ 886 $ 1,267 $ 1,562 $ 1,167 $ 1,449 Cumulative effect of a change in accounting 26 60 - - - Investment (gains) losses and related adjustments 139 (78) (117) 533 518 Operating earnings available to common shareholders 1,051 1,249 1,445 1,700 1,967 Premium tax liability - (31) - - - Operating earnings available to common shareholders, as presented $ 1,051 $ 1,218 $ 1,445 $ 1,700 $ 1,967 2003 2004 2005 2006 2007 Group Life Net income available to common shareholders $ 282 $ 373 $ 364 $ 345 $ 355 Investment (gains) losses and related adjustments 68 25 36 81 108 Operating earnings available to common shareholders 350 398 400 426 463 Premium tax liability - (31) - - - Operating earnings available to common shareholders, as presented $ 350 $ 367 $ 400 $ 426 $ 463 10
  11. 11. Reconciliation of Net Income Available to Common Shareholders to Operating Earnings Available to Common Shareholders ($ Millions) 2003 2004 2005 2006 2007 Total Individual Net income available to common shareholders $ 566 $ 885 $ 1,499 $ 1,264 $ 1,357 Investment (gains) losses and related adjustments 60 (79) (248) 280 154 Operating earnings available to common shareholders 626 806 1,251 1,544 1,511 New England Financial charge 31 - - - - Operating earnings available to common shareholders, as presented $ 657 $ 806 $ 1,251 $ 1,544 $ 1,511 2003 2004 2005 2006 2007 Total International Net income available to common shareholders $ 208 $ 163 $ 193 $ 200 $ 635 Cumulative effect of a change in accounting - 30 - - - Investment (gains) losses and related adjustments (7) (38) 41 56 (76) Discontinued operations 5 9 (5) (28) 9 Operating earnings available to common shareholders 206 164 227 228 568 Merger of Mexican operations (40) - - - - Change in reserve methodology (22) - - - - Operating earnings available to common shareholders, as presented $ 144 $ 164 $ 227 $ 228 $ 568 11
  12. 12. Reconciliation of Book Value per Common Share 2003 2004 2005 2006 2007 Book value per common share, actual shares outstanding $ 27.93 $ 31.16 $ 35.72 $ 42.23 $ 45.44 Accumulated other comprehensive income 3.69 4.04 2.52 1.49 1.48 Book value per common share, actual shares outstanding, excluding accumulated other comprehensive income $ 24.24 $ 27.12 $ 33.20 $ 40.74 $ 43.96 12
  13. 13. Reconciliation of Premiums, Fees & Other Revenues ($ Millions) 2003 2004 2005 2006 2007 Total Company Premiums, Fees & Other Revenues $ 21,594 $ 22,869 $ 26,038 $ 28,147 $ 29,761 Adjustments related to universal life and investment-type product policy fees - - - 6 12 Premiums, Fees & Other Revenues, as presented $ 21,594 $ 22,869 $ 26,038 $ 28,153 $ 29,773 2006 2007 Individual Premiums, Fees & Other Revenues $ 8,240 $ 8,609 Adjustments related to universal life and investment-type product policy fees 6 12 Premiums, Fees & Other Revenues, as presented $ 8,246 $ 8,621 13
  14. 14. Reconciliation of Operating Expenses and Expense Ratio 2003 2004 2005 2006 2007 ($ Millions) Total Company Operating Expenses $ 6,020 $ 6,422 $ 7,620 $ 8,840 $ 9,485 Other Expenses IRS tax audit settlement - 22 - - - Premium tax liability - 49 - - - MetLife Foundation contribution - (50) - - - Race conscious underwriting 144 - - - - New England Financial charge (48) - - - - Change in reserve methodology (45) - - - - Operating Expenses, as presented $ 6,071 $ 6,443 $ 7,620 $ 8,840 $ 9,485 1 Operating Expense Ratio : Premium, Fees & Other Revenues $ 21,594 $ 22,869 $ 26,038 $ 28,147 $ 29,761 Premium, Fees & Other Revenues, as presented $ 21,594 $ 22,869 $ 26,038 $ 28,153 $ 29,773 Operating Expense Ratio 27.9% 28.1% 29.3% 31.4% 31.9% Operating Expense Ratio, as presented 28.1% 28.2% 29.3% 31.4% 31.9% 1 The operating expense ratio is calculated by dividing operating expenses by premiums, fees & other revenues. The operating expense ratio, as presented, is calculated by dividing operating expenses, as presented, by premiums, fees & other revenues, as presented. 14
  15. 15. Reconciliation of Return on Common Equity 2003 2004 2005 2006 2007 ($ Millions) Net income available to common shareholders $ 2,196 $ 2,758 $ 4,651 $ 6,159 $ 4,180 Adjustments (See Slide 8) (63) (214) (1,494) (2,284) 403 Operating earnings available to common shareholders 2,133 2,544 3,157 3,875 4,583 Reconciling items (See Slide 8) (123) (104) - - - Operating earnings available to common shareholders, as presented $ 2,010 $ 2,440 $ 3,157 $ 3,875 $ 4,583 Total equity $ 21,149 $ 22,824 $ 29,101 $ 33,798 $ 35,179 Less: Accumulated other comprehensive income 2,792 2,956 1,912 1,118 1,078 Less: Preferred stock - - 2,042 2,042 2,042 Adjusted equity $ 18,357 $ 19,868 $ 25,147 $ 30,638 $ 32,059 Average equity $ 16,868 $ 19,113 $ 22,508 $ 27,893 $ 31,349 Net income available to common shareholders return on equity 13.1% 14.4% 20.7% 22.1% 13.3% Operating earnings available to common shareholders return on equity 12.6% 13.3% 14.0% 13.9% 14.6% Operating earnings available to common shareholders return on equity, as presented 11.9% 12.8% 14.0% 13.9% 14.6% 15
  16. 16. 2007 Reconciliation of Return on Common Equity Institutional Individual International ($ Millions) Net income $ 1,449 $ 1,357 $ 635 Adjustments 518 (63) (67) Operating earnings $ 1,967 $ 1,511 $ 568 Average equity 9,551 9,956 2,889 Operating earnings return on equity 20.6% 15.2% 19.7% 16
  17. 17. Institutional Metrics 17
  18. 18. Institutional: 2008 Results ($ Millions) 2007 2008E Premiums, Fees & Other 13,920 16,485 - 16,730 Operating Earnings 1,967 1,655 - 1,675 Operating ROE 20.6% 16.5% - 16.7% See Definitions and Reconciliation sections included elsewhere in this Appendix. 18
  19. 19. Institutional: 2009 Targets ($ Millions) Growth Rate1 2008E 2009P Premiums, Fees & Other 16,485 - 16,730 17,285 - 17,685 5.3% Operating Earnings 1,655 - 1,675 1,600 - 1,660 -2.1% Operating ROE 16.5% - 16.7% 15.1% - 15.7% 1 Growth rate is calculated for 2008E to 2009P, mid-point to mid-point. 19
  20. 20. Institutional: 2007 - 2009 Operating Earnings ($ Millions) 2007 2008E Group Life 463 525 - 545 Retirement & Savings 1,140 810 - 830 Non-Medical Health 364 300 - 320 Total 1,967 1,655 - 1,675 Growth Rate1 2008E 2009P Group Life 525 - 545 545 - 565 3.7% Retirement & Savings 810 - 830 720 - 740 -11.0% Non-Medical Health 300 - 320 335 - 355 11.3% Total 1,655 - 1,675 1,600 - 1,660 -2.1% Growth rate is calculated for 2008E to 2009P, mid-point to mid-point. 1 20 See Definitions and Reconciliation sections included elsewhere in this Appendix.
  21. 21. Group Life: Key Metrics ($ Millions) 2007 2008E Premiums, Fees & Other 7,100 7,555 - 7,585 Operating Earnings 463 525 - 545 Investment Spread 196 bps 230 - 240 bps Mortality Ratio 91.7% 91.0% - 93.0% Growth Rate1 2008E 2009P Premiums, Fees & Other 7,555 - 7,585 7,855 - 7,905 4.1% Operating Earnings 525 - 545 545 - 565 3.7% Investment Spread 230 - 240 bps 210 - 230 bps Mortality Ratio 91.0% - 93.0% 91.0% - 95.0% Growth rate is calculated for 2008E to 2009P, mid-point to mid-point. 1 21 See Definitions and Reconciliation sections included elsewhere in this Appendix.
  22. 22. Retirement & Savings: Key Metrics ($ Millions) 2007 2008E Premiums, Fees & Other 1,496 2,875 - 3,060 Operating Earnings 1,140 810 - 830 Investment Spread 150 bps 95 - 105 bps Growth Rate1 2008E 2009P Premiums, Fees & Other 2,875 - 3,060 3,015 - 3,315 6.7% Operating Earnings 810 - 830 720 - 740 -11.0% Investment Spread 95 - 105 bps 80 - 100 bps Growth rate is calculated for 2008E to 2009P, mid-point to mid-point. 1 See Definitions and Reconciliation sections included elsewhere in this Appendix. 22
  23. 23. Non-Medical Health: Key Metrics ($ Millions) 2007 2008E Premiums, Fees & Other 5,324 6,055 - 6,085 Operating Earnings 364 300 - 320 Morbidity Ratio 89.9% 88.0% - 90.0% Growth Rate1 2008E 2009P Premiums, Fees & Other 6,055 - 6,085 6,415 - 6,465 6.1% Operating Earnings 300 - 320 335 - 355 11.3% Morbidity Ratio 88.0% - 90.0% 89.0% - 94.0% 1 Growth rate is calculated for 2008E to 2009P, mid-point to mid-point. 23 See Definitions and Reconciliation sections included elsewhere in this Appendix.
  24. 24. Individual Metrics 24
  25. 25. Individual: 2008 Results ($ Millions, except headcount) 2007 2008E Premiums, Fees & Other 8,621 8,500 - 8,700 Operating Earnings 1,511 545 - 675 Operating ROE 15.2% 5.2% - 6.4% Sales Variable Annuity Sales 15,135 13,900 - 14,100 Fixed Annuity Sales 1,271 3,300 - 3,700 Life Sales 540 535 - 545 Agency Headcount 8,398 8,650 - 8,700 Annuity Spread 282 bps 195 - 215 bps V&UL Spread 184 bps 150 - 170 bps See Definitions and Reconciliation sections included elsewhere in this Appendix. 25
  26. 26. Individual: 2009 Targets ($ Millions, except headcount) Growth Rate1 2008E 2009P Premiums, Fees & Other 8,500 - 8,700 8,150 - 8,450 -3.5% Operating Earnings 545 - 675 850 - 1,050 55.7% Operating ROE 5.2% - 6.4% 7.8% - 9.6% Sales Variable Annuity Sales 13,900 - 14,100 15,300 - 15,600 Fixed Annuity Sales 3,300 - 3,700 1,525 - 1,675 Life Sales 535 - 545 530 - 550 Agency Headcount 8,650 - 8,700 8,800 - 8,900 Annuity Spread 195 - 215 bps 175 - 195 bps V&UL Spread 150 - 170 bps 135 - 155 bps 1 Growth rate is calculated for 2008E to 2009P, mid-point to mid-point. 26 See Definitions and Reconciliation sections included elsewhere in this Appendix.
  27. 27. Individual: 2007 - 2009 Operating Earnings ($ Millions) 2007 2008E Traditional 294 255 - 275 V&UL 282 180 - 200 Annuities 899 60 - 140 Other 36 50 - 60 Total 1,511 545 - 675 Growth Rate1 2008E 2009P Traditional 255 - 275 195 - 215 -22.6% V&UL 180 - 200 220 - 240 21.1% Annuities 60 - 140 405 - 555 380.0% Other 50 - 60 30 - 40 -36.4% Total 545 - 675 850 - 1,050 55.7% Growth rate is calculated for 2008E to 2009P, mid-point to mid-point. 1 See Definitions and Reconciliation sections included elsewhere in this Appendix. 27
  28. 28. Individual: 2007 - 2009 Premiums, Fees & Other ($ Millions) Growth Rate1 2007 2008E 2009P Traditional 4,158 4,140 - 4,160 4,190 - 4,270 1.9% V&UL 1,543 1,675 - 1,715 1,630 - 1,690 -2.1% Annuities 2,276 2,080 - 2,210 1,815 - 1,960 -12.0% Other 644 605 - 615 515 - 530 -14.3% Total 8,621 8,500 - 8,700 8,150 - 8,450 -3.5% Growth rate is calculated for 2008E to 2009P, mid-point to mid-point. 1 28 See Definitions and Reconciliation sections included elsewhere in this Appendix.
  29. 29. International Metrics 29
  30. 30. International: 2008 Results ($ Millions) 2007 2008E Premiums, Fees & Other 4,115 4,525 - 4,625 Operating Earnings 568 480 - 500 Operating ROE 19.7% 13.3% - 13.9% Drivers Sales 10,328 10,000 - 10,200 Sales Japan 6,031 5,400 - 5,600 30 See Definitions and Reconciliation sections included elsewhere in this Appendix.
  31. 31. International: 2009 Targets ($ Millions) Growth Rate1 2008E 2009P Premiums, Fees & Other 4,525 - 4,625 4,750 - 4,850 4.9% Operating Earnings 480 - 500 525 - 565 11.2% Operating ROE 13.3% - 13.9% 13.4% - 14.4% Drivers Sales 10,000 - 10,200 11,600 - 12,000 17.0% Sales Japan 5,400 - 5,600 6,400 - 6,600 1 Growth rate is calculated for 2008E to 2009P, mid-point to mid-point. 31
  32. 32. Auto & Home Metrics 32
  33. 33. Auto & Home: 2008 Results ($ Millions) 2007 2008E Premiums, Fees & Other 3,009 3,010 - 3,020 Operating Earnings 426 355 - 375 Operating ROE 30.1% 19.5% - 20.6% Drivers Expense Ratio (0.5pp) - (1.0pp) 33
  34. 34. Auto & Home: 2009 Targets ($ Millions) Growth Rate1 2008E 2009P Premiums, Fees & Other 3,010 - 3,020 3,010 - 3,110 1.5% Operating Earnings 355 - 375 310 - 330 -12.3% Operating ROE 19.5% - 20.6% 16.9% - 18.0% Combined Ratio 90.5% - 92.5% 92.5% - 94.5% Drivers Exposures In-force 0.5% - 1.5% Expense Ratio (0.2pp) - (0.8pp) 1 Growth rate is calculated for 2008E to 2009P, mid-point to mid-point. 34
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