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MetLife Announces Fourth Quarter & Full Year 2012 Results

MetLife, Inc. does not undertake any obligation to publicly correct or update any forward-looking statement if MetLife, Inc. later becomes aware that such statement is not likely to be achieved. Please consult any further disclosures MetLife, Inc. makes on related subjects in reports to the SEC.

MetLife, Inc.
Consolidated Statements of Operating Earnings Available to Common Shareholders
(Unaudited)
         
For the Three Months Ended For the Years Ended
December 31, December 31,
2012 2011 2012 2011
(In millions) (In millions)
OPERATING REVENUES
Premiums $ 10,585 $ 9,148 $ 37,911 $ 36,269
Universal life and investment-type product policy fees 2,156 1,882 8,212 7,528
Net investment income 5,175 4,892 20,472 19,638
Other revenues   443     420     1,756     1,652  
Total operating revenues   18,359     16,342     68,351     65,087  
 
OPERATING EXPENSES
Policyholder benefits and claims and policyholder dividends 10,704 8,926 37,770 36,241
Interest credited to policyholder account balances 1,589 1,536 6,242 6,057
Capitalization of DAC (1,308 ) (1,398 ) (5,284 ) (5,549 )
Amortization of DAC and VOBA 946 1,060 4,177 4,355
Amortization of negative VOBA (99 ) (143 ) (555 ) (619 )
Interest expense on debt 292 326 1,190 1,304
Other expenses   4,266     4,257     16,680     16,620  
Total operating expenses   16,390     14,564     60,220     58,409  
 
Operating earnings before provision for income tax 1,969 1,778 8,131 6,678
Provision for income tax expense (benefit)   565     503     2,323     1,879  
Operating earnings 1,404 1,275 5,808 4,799
Preferred stock dividends   31     31     122     122  
OPERATING EARNINGS AVAILABLE TO COMMON SHAREHOLDERS $ 1,373   $ 1,244   $ 5,686   $ 4,677  
 
 

Reconciliation to Net Income (Loss) and Financial Statement Line Item Adjustments from GAAP

 
Operating earnings $ 1,404 $ 1,275 $ 5,808 $ 4,799
Adjustments from operating earnings to income (loss) from continuing operations:
Net investment gains (losses) (200 ) (558 ) (352 ) (867 )
Net derivative gains (losses) (1,315 ) 591 (1,919 ) 4,824
Premiums 4 23 64 92
Universal life and investment-type product policy fees 94 68 344 278
Net investment income 373 35 1,512 (53 )
Other revenues 18 234 150 880
Policyholder benefits and claims and policyholder dividends (644 ) (485 ) (1,586 ) (676 )
Interest credited to policyholder account balances (459 ) 37 (1,487 ) 454
Capitalization of DAC - 2 5 9
Amortization of DAC and VOBA (52 ) 73 (22 ) (543 )
Amortization of negative VOBA 17 18 67 78
Interest expense on debt (38 ) (43 ) (166 ) (325 )
Other expenses (244 ) (498 ) (1,431 ) (1,645 )
Goodwill impairment - - (1,868 ) -
Provision for income tax (expense) benefit (1)   1,147     191     2,195     (914 )
Income (loss) from continuing operations, net of income tax 105 963 1,314 6,391
Income (loss) from discontinued operations, net of income tax   31     25     48     24  
Net income (loss) 136 988 1,362 6,415
Less: Net income (loss) attributable to noncontrolling interest   9     (2 )   38     (8 )
Net income (loss) attributable to MetLife, Inc. 127 990 1,324 6,423
Less: Preferred stock dividends 31 31 122 122
Less: Preferred stock redemption premium   -     -     -     146  
Net income (loss) available to MetLife, Inc.'s common shareholders $ 96   $ 959   $ 1,202   $ 6,155  
MetLife, Inc.
(Unaudited)
                       
For the Three Months Ended For the Years Ended
December 31, December 31,
2012

2011
2012

2011
    Earnings Per Weighted Average Common Shares

Diluted (2)
    Earnings Per Weighted Average Common Shares

Diluted (2)
    Earnings Per Weighted Average Common Shares

Diluted (2)
      Earnings Per Weighted Average Common Shares

Diluted
(In millions, except per share data) (In millions, except per share data)
Reconciliation to Net Income (Loss) Available to MetLife, Inc.'s Common Shareholders
Operating earnings available to common shareholders $ 1,373 $ 1.25 $ 1,244 $ 1.17 $ 5,686 $ 5.28 $ 4,677 $ 4.38
 
Adjustments from operating earnings available to common shareholders to net income (loss) available to MetLife, Inc.'s common shareholders:
 
Add: Net investment gains (losses) (200 ) (0.18 ) (558 ) (0.52 ) (352 ) (0.33 ) (867 ) (0.81 )
Add: Net derivative gains (losses) (1,315 ) (1.20 ) 591 0.55 (1,919 ) (1.78 ) 4,824 4.52
Add: Goodwill impairment - - - - (1,868 ) (1.73 ) - -
Add: Other adjustments to continuing operations (931 ) (0.85 ) (536 ) (0.50 ) (2,550 ) (2.36 ) (1,451 ) (1.36 )
Add: Provision for income tax (expense) benefit (1) 1,147 1.05 191 0.18 2,195 2.04 (914 ) (0.86 )
Add: Income (loss) from discontinued operations, net of income tax 31 0.03 25 0.02 48 0.04 24 0.02
Less: Net income (loss) attributable to noncontrolling interests 9 0.01 (2 ) - 38 0.04 (8 ) (0.01 )
Less: Preferred stock redemption premium   -     -     -     -     -     -     146     0.14  
Net income (loss) available to MetLife, Inc.'s common shareholders $ 96   $ 0.09   $ 959   $ 0.90   $ 1,202   $ 1.12   $ 6,155   $ 5.76  
 
Weighted average common shares outstanding - diluted 1,097.5 1,066.3 1,076.8 1,068.1
    For the Three Months Ended   For the Years Ended
December 31, December 31,
2012   2011 2012   2011
(In millions) (In millions)
Reconciliation to GAAP Premiums, Fees and Other Revenues
Total operating premiums, fees and other revenues $ 13,184 $ 11,450 $ 47,879 $ 45,449
Add: Adjustments to premiums, fees and other revenues   116     325     558     1,250  
Total premiums, fees and other revenues $ 13,300   $ 11,775   $ 48,437   $ 46,699  
 
 
Reconciliation to GAAP Revenues and GAAP Expenses
 
Total operating revenues $ 18,359 $ 16,342 $ 68,351 $ 65,087
Add: Net investment gains (losses) (200 ) (558 ) (352 ) (867 )
Add: Net derivative gains (losses) (1,315 ) 591 (1,919 ) 4,824
Add: Adjustments related to net investment gains (losses) and net derivative gains (losses) 5 - 15 14
Add: Other adjustments to revenues   484     360     2,055     1,183  
Total revenues $ 17,333   $ 16,735   $ 68,150   $ 70,241  
 
Total operating expenses $ 16,390 $ 14,564 $ 60,220 $ 58,409
Add: Adjustments related to net investment gains (losses) and net derivative gains (losses) (38 ) 16 41 526
Add: Goodwill impairment - - 1,868 -
Add: Other adjustments to expenses   1,458     880     4,579     2,122  
Total expenses $ 17,810   $ 15,460   $ 66,708   $ 61,057  
 
December 31,
Book Value Per Common Share (3)   2012 2011
 
Book value per common share, excluding accumulated other comprehensive
income (loss) - (actual common shares outstanding) $ 46.73 $ 46.69
Add: Accumulated other comprehensive income (loss) per common share   10.44     5.74  

Book value per common share - (actual common shares outstanding)
$ 57.17   $ 52.43  
 
Common shares outstanding, end of period (in millions) 1,091.7 1,058.0
 
 
 
Return on MetLife, Inc.'s Common Equity Year Ended Year Ended
December 31, December 31,
2012 2011
 
Operating return on MetLife, Inc.'s common equity, excluding accumulated other comprehensive income (loss) (4) 11.3 % 10.1 %
Operating return on MetLife, Inc.'s common equity (4) 9.6 % 9.3 %
Return on MetLife, Inc.'s common equity, excluding accumulated other comprehensive income (loss) (5) 2.4 % 13.2 %
Return on MetLife, Inc.'s common equity (5) 2.0 % 12.2 %
 
 
MetLife, Inc.
Reconciliations to Net Income (Loss) Available to Common Shareholders
(Unaudited)
       
For the Three Months Ended For the Years Ended
December 31, December 31,
2012 2011 2012 2011
(In millions) (In millions)
Total Americas Operations:
Operating earnings available to common shareholders $ 1,253 $ 1,033 $ 4,769 $ 3,852
Add: Net investment gains (losses) 112 (57 ) 310 145
Add: Net derivative gains (losses) (649 ) 828 (20 ) 3,914
Add: Goodwill impairment - - (1,692 ) -
Add: Other adjustments to continuing operations (704 ) (415 ) (1,575 ) (1,107 )
Add: Provision for income tax (expense) benefit 442 (128 ) 671 (1,082 )
Add: Income (loss) from discontinued operations, net of income tax 29 (2 ) 46 64
Less: Net income (loss) attributable to noncontrolling interest   1     (6 )   2     (3 )
Net income (loss) available to MetLife, Inc.'s common shareholders $ 482   $ 1,265   $ 2,507   $ 5,789  
 
Retail:
Operating earnings available to common shareholders $ 633 $ 444 $ 2,002 $ 1,335
Add: Net investment gains (losses) 34 24 212 158
Add: Net derivative gains (losses) (475 ) 562 162 2,321
Add: Goodwill impairment - - (1,692 ) -
Add: Other adjustments to continuing operations (638 ) (392 ) (1,260 ) (709 )
Add: Provision for income tax (expense) benefit 379 (69 ) 532 (619 )
Add: Income (loss) from discontinued operations, net of income tax 23 (2 ) 33 35
Less: Net income (loss) attributable to noncontrolling interest   -     -     -     1  
Net income (loss) available to MetLife, Inc.'s common shareholders $ (44 ) $ 567   $ (11 ) $ 2,520  
 
Group, Voluntary & Worksite Benefits:
Operating earnings available to common shareholders $ 167 $ 240 $ 960 $ 891
Add: Net investment gains (losses) (18 ) (10 ) (7 ) (26 )
Add: Net derivative gains (losses) (162 ) 114 (63 ) 1,203
Add: Other adjustments to continuing operations (34 ) (36 ) (141 ) (137 )
Add: Provision for income tax (expense) benefit 76 (23 ) 75 (363 )
Add: Income (loss) from discontinued operations, net of income tax 2 - 2 2
Less: Net income (loss) attributable to noncontrolling interest   -     (1 )   -     (1 )
Net income (loss) available to MetLife, Inc.'s common shareholders $ 31   $ 286   $ 826   $ 1,571  
 
Corporate Benefit Funding:
Operating earnings available to common shareholders $ 305 $ 226 $ 1,224 $ 1,112
Add: Net investment gains (losses) 86 (66 ) 107 19
Add: Net derivative gains (losses) (8 ) 146 (157 ) 426
Add: Other adjustments to continuing operations 8 26 19 79
Add: Provision for income tax (expense) benefit (30 ) (35 ) 11 (182 )
Add: Income (loss) from discontinued operations, net of income tax 4 - 11 27
Less: Net income (loss) attributable to noncontrolling interest   1     (5 )   1     (3 )
Net income (loss) available to MetLife, Inc.'s common shareholders $ 364   $ 302   $ 1,214   $ 1,484  
 
Latin America:
Operating earnings available to common shareholders $ 148 $ 123 $ 583 $ 514
Add: Net investment gains (losses) 10 (5 ) (2 ) (6 )
Add: Net derivative gains (losses) (4 ) 6 38 (36 )
Add: Other adjustments to continuing operations (40 ) (13 ) (193 ) (340 )
Add: Provision for income tax (expense) benefit 17 (1 ) 53 82
Add: Income (loss) from discontinued operations, net of income tax - - - -
Less: Net income (loss) attributable to noncontrolling interest   -     -     1     -  
Net income (loss) available to MetLife, Inc.'s common shareholders $ 131   $ 110   $ 478   $ 214  
 
Asia:
Operating earnings available to common shareholders $ 198 $ 259 $ 1,037 $ 880
Add: Net investment gains (losses) (174 ) (109 ) (342 ) (305 )
Add: Net derivative gains (losses) (159 ) (27 ) (170 ) 202
Add: Other adjustments to continuing operations (21 ) 12 (32 ) 14
Add: Provision for income tax (expense) benefit (1) 424 58 483 44
Add: Income (loss) from discontinued operations, net of income tax - 27 - (44 )
Less: Net income (loss) attributable to noncontrolling interest   1     8     26     9  
Net income (loss) available to MetLife, Inc.'s common shareholders $ 267   $ 212   $ 950   $ 782  
 
EMEA:
Operating earnings available to common shareholders $ 59 $ 47 $ 271 $ 251
Add: Net investment gains (losses) (6 ) (221 ) 31 (525 )
Add: Net derivative gains (losses) 5 3 61 32
Add: Other adjustments to continuing operations - (4 ) (22 ) (75 )
Add: Provision for income tax (expense) benefit (30 ) 57 (48 ) 164
Add: Income (loss) from discontinued operations, net of income tax - - - -
Less: Net income (loss) attributable to noncontrolling interest   3     (6 )   9     (12 )
Net income (loss) available to MetLife, Inc.'s common shareholders $ 25   $ (112 ) $ 284   $ (141 )
 
Corporate & Other:
Operating earnings available to common shareholders $ (137 ) $ (95 ) $ (391 ) $ (306 )
Add: Net investment gains (losses) (132 ) (171 ) (351 ) (182 )
Add: Net derivative gains (losses) (512 ) (213 ) (1,790 ) 676
Add: Goodwill impairment - - (176 ) -
Add: Other adjustments to continuing operations (206 ) (129 ) (921 ) (283 )
Add: Provision for income tax (expense) benefit 311 204 1,089 (40 )
Add: Income (loss) from discontinued operations, net of income tax 2 - 2 4
Less: Net income (loss) attributable to noncontrolling interest 4 2 1 (2 )
Less: Preferred stock redemption premium   -     -     -     146  
Net income (loss) available to MetLife, Inc.'s common shareholders $ (678 ) $ (406 ) $ (2,539 ) $ (275 )
 
MetLife, Inc.
GAAP Consolidated Statements of Operations
(Unaudited)
         
For the Three Months Ended For the Years Ended
December 31, December 31,
2012 2011 2012 2011
(In millions)
Revenues
Premiums $ 10,589 $ 9,171 $ 37,975 $ 36,361
Universal life and investment-type product policy fees 2,250 1,950 8,556 7,806
Net investment income 5,548 4,927 21,984 19,585
Other revenues 461 654 1,906 2,532
Net investment gains (losses):
Other-than-temporary impairments on fixed maturity securities (36 ) (399 ) (346 ) (924 )
Other-than-temporary impairments on fixed maturity securities transferred to other comprehensive income (loss)
(10 ) (26 ) 29 (31 )
Other net investment gains (losses)   (154 )   (133 )   (35 )   88  
Total net investment gains (losses) (200 ) (558 ) (352 ) (867 )
Net derivative gains (losses)   (1,315 )   591     (1,919 )   4,824  
Total revenues   17,333     16,735     68,150     70,241  
 
Expenses
Policyholder benefits and claims 11,029 9,095 37,987 35,471
Interest credited to policyholder account balances 2,048 1,499 7,729 5,603
Policyholder dividends 319 316 1,369 1,446
Goodwill impairment - - 1,868 -
Other expenses   4,414     4,550     17,755     18,537  
Total expenses   17,810     15,460     66,708     61,057  
 
Income (loss) from continuing operations before provision for income tax (477 ) 1,275 1,442 9,184
Provision for income tax expense (benefit) (1)   (582 )   312     128     2,793  
Income (loss) from continuing operations, net of income tax 105 963 1,314 6,391
Income (loss) from discontinued operations, net of income tax   31     25     48     24  
Net income (loss) 136 988 1,362 6,415
Less: Net income (loss) attributable to noncontrolling interests   9     (2 )   38     (8 )
Net income (loss) attributable to MetLife, Inc. 127 990 1,324 6,423
Less: Preferred stock dividends 31 31 122 122
Preferred stock redemption premium   -     -     -     146  
Net income (loss) available to MetLife, Inc.'s common shareholders $ 96   $ 959   $ 1,202   $ 6,155  
(1)   Includes deferred tax benefit of $324 million related to the conversion of the Japan branch to a subsidiary for both the three months and year ended December 31, 2012.
 
(2) For the three months and year ended December 31, 2012, and for the three months ended December 31, 2011, all shares related to the assumed issuance of shares in settlement of the applicable purchase contracts of the common equity units have been excluded from the weighted average common shares outstanding - diluted, as these assumed shares would be anti-dilutive to operating earnings available to common shareholders per common share - diluted and net income available to MetLife, Inc.’s common shareholders per common share - diluted.
 
(3) Book value per common share and book value per common share, excluding accumulated other comprehensive income (loss) exclude $2,043 million of equity related to preferred stock.
 
(4) Operating return on MetLife, Inc.'s common equity is defined as operating earnings available to common shareholders divided by average GAAP common equity.
 
(5) Return on MetLife, Inc.'s common equity is defined as net income available to common shareholders divided by average GAAP common equity.

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