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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): May 4, 2011
METLIFE, INC.
 
(Exact Name of Registrant as Specified in Its Charter)
         
Delaware   1-15787   13-4075851
 
(State or Other Jurisdiction
of Incorporation) 		  (Commission
File Number) 		  (IRS Employer
Identification No.)
     
200 Park Avenue, New York, New York   10166-0188
 
(Address of Principal Executive Offices)   (Zip Code)
212-578-2211
 
(Registrant’s Telephone Number, Including Area Code)
N/A
 
(Former Name or Former Address, if Changed Since Last Report)
     Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
o   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 

 

Item 2.02.     Results of Operations and Financial Condition.
     On May 4, 2011, MetLife, Inc. (the “Company”) issued (i) a press release announcing its results for the quarter ended March 31, 2011, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference, and (ii) a Quarterly Financial Supplement for the quarter ended March 31, 2011, a copy of which is attached hereto as Exhibit 99.2 and is incorporated herein by reference. The press release and the Quarterly Financial Supplement are furnished and not filed pursuant to instruction B.2 of Form 8-K.
Item 7.01. Regulation FD Disclosure.
     On May 2, 2011, the Company issued a press release announcing that its Board of Directors has appointed Steven J. Goulart as Executive Vice President and Chief Investment Officer, effective May 1, 2011. A copy of the press release is attached hereto as Exhibit 99.3 and is incorporated herein by reference. The press release is furnished and not filed pursuant to Instruction B.2 of Form 8-K.
Item 8.01 Other Events.
     Effective for the quarter ended March 31, 2011, the Company modified its definition of operating earnings and operating earnings available to common shareholders to exclude impacts related to certain variable annuity guarantees and market value adjustments associated with surrenders or terminations of contracts (“Market Value Adjustments”) to better conform to the way it manages and assesses its business. Operating earnings and operating earnings available to common shareholders results for prior periods have been adjusted to conform to this modified definition.
     Operating earnings and operating earnings available to common shareholders should not be viewed as substitutes for GAAP income (loss) from continuing operations, net of income tax and GAAP net income (loss) available to MetLife, Inc.’s common shareholders, respectively. The Company believes the presentation of operating earnings and operating earnings available to common shareholders as the Company measures it for management purposes enhances the understanding of our performance by highlighting the results of operations and the underlying profitability drivers of the business. See note (1) to the schedules below.
     The following schedule shows the effect on the Company’s consolidated results for the periods indicated for the modification described above:
                                                         
    For the Three Months Ended     Years Ended December 31,  
(In millions)   December 31, 2010     September 30, 2010     June 30, 2010     March 31, 2010     2010     2009     2008  
 
                                                        
Operating earnings available to common shareholders prior to modified definition and discontinued operations
   $ 1,158     $ 878     $ 1,022     $ 834     $ 3,892     $ 2,365     $ 2,694  
Preferred stock dividends
     31       30       31       30       122       122       125  
 
                                          
Operating earnings prior to modified definition and discontinued operations
     1,189       908       1,053       864       4,014       2,487       2,819  
 
                                                        
Impact of modified definition to earnings:
                                                        
 
                                                        
Retirement Products
     53       82       (105 )     34       64       90       (91 )
 
                                                        
Impact of Taiwan operations classified as discontinued operations in the first quarter 2011:
                                                      
 
                                                        
Other International Regions(2)
     (3 )     (2 )     (3 )     (4 )     (12 )     (12 )     (6 )
 
                                          
 
                                                        
Operating earnings, as currently reported (1)
     1,239       988       945       894       4,066       2,565       2,722  
Less: Preferred stock dividends
     31       30       31       30       122       122       125  
 
                                          
Operating earnings available to common shareholders, as currently reported (1)
   $ 1,208     $ 958     $ 914     $ 864     $ 3,944     $ 2,443     $ 2,597  
 
                                          
     The following schedule shows the contributions of the Company’s segments and Banking, Corporate & Other results for the periods indicated:
                                                         
    For the Three Months Ended     Years Ended December 31,  
(In millions)   December 31, 2010     September 30, 2010     June 30, 2010     March 31, 2010     2010     2009     2008  
 
                                                        
Operating earnings, as currently reported (1)
                                                        
Business Segments:
                                                        
Insurance Products
   $ 309     $ 345     $ 369     $ 298     $ 1,321     $ 1,142     $ 1,310  
Retirement Products
     228       238       136       201       803       398       89  
Corporate Benefit Funding
     283       182       235       220       920       580       926  
Auto & Home
     74       81       73       72       300       322       363  
 
                                          
Total U.S. Business
     894       846       813       791       3,344       2,442       2,688  
 
                                          
 
                                                        
Japan
     94       —       —       —       94       —       —  
Other International Regions
     208       189       142       147       686       451       473  
 
                                          
Total International (2)
     302       189       142       147       780       451       473  
 
                                          
 
                                                        
Banking, Corporate & Other — Operating earnings, as currently reported
     43       (47 )     (10 )     (44 )     (58 )     (328 )     (439 )
Less: Preferred stock dividends
     31       30       31       30       122       122       125  
 
                                          
Total Banking, Corporate & Other — Operating earnings available to common shareholders, as currently reported
     12       (77 )     (41 )     (74 )     (180 )     (450 )     (564 )
 
                                          
 
                                                        
Operating earnings, as currently reported(1)
   $ 1,239     $ 988     $ 945     $ 894     $ 4,066     $ 2,565     $ 2,722  
 
                                          
Operating earnings available to common shareholders, as currently reported (1)
   $ 1,208     $ 958     $ 914     $ 864     $ 3,944     $ 2,443     $ 2,597  
 
                                          
      The following schedule shows a reconciliation of the Company’s consolidated results for the periods indicated:
                                                         
    For the Three Months Ended     Years Ended December 31,  
(In millions)   December 31, 2010     September 30, 2010     June 30, 2010     March 31, 2010     2010     2009     2008  
 
                                                        
Operating earnings available to common shareholders, as currently reported (1)
   $ 1,208     $ 958     $ 914     $ 864     $ 3,944     $ 2,443     $ 2,597  
Add: Preferred stock dividends
     31       30       31       30       122       122       125  
 
                                          
Operating earnings, as currently reported (1)
   $ 1,239     $ 988     $ 945     $ 894     $ 4,066     $ 2,565     $ 2,722  
Adjustments from operating earnings to income (loss) from continuing operations:
                                                        
Net investment gains (losses)
     (84 )     (342 )     (14 )     32       (408 )     (2,901 )     (2,085 )
Net derivative gains (losses)
     (1,543 )     (244 )     1,481       41       (265 )     (4,866 )     3,910  
Other adjustments (3)
     (72 )     (433 )     (404 )     (174 )     (1,083 )     141       (527 )
Provision for income tax (expense) benefit
     527       351       (472 )     36       442       2,731       (540 )
 
                                          
Income (loss) from continuing operations, net of income tax
     67       320       1,536       829       2,752       (2,330 )     3,480  
Income (loss) from discontinued operations, net of income tax
     18       —       11       5       34       52       (202 )
 
                                          
Net income (loss)
     85       320       1,547       834       2,786       (2,278 )     3,278  
Less: Net income (loss) attributable to noncontrolling interest
     3       4       (10 )     (1 )     (4 )     (32 )     69  
 
                                          
Net income (loss) attributable to MetLife, Inc.
     82       316       1,557       835       2,790       (2,246 )     3,209  
Less: Preferred stock dividends
     31       30       31       30       122       122       125  
Less: Preferred stock redemption premium
     —       —       —       —       —       —       —  
 
                                          
Net income (loss) available to MetLife, Inc.’s common shareholders
   $ 51     $ 286     $ 1,526     $ 805     $ 2,668     $ (2,368 )   $ 3,084  
 
                                          
 
(1)   Operating earnings is defined as operating revenues less operating expenses, both net of income tax. Operating earnings available to common shareholders is defined as operating earnings less preferred stock dividends. Operating revenues exclude net investment gains (losses) (“NIGL”) and net derivative gains (losses) (“NDGL”). The following additional adjustments are made to GAAP revenues, in the line items indicated, in calculating operating revenues:
  •   Universal life and investment-type product policy fees exclude the amortization of unearned revenue related to NIGL and NDGL and certain variable annuity guaranteed minimum income benefits (“GMIB”) fees (“GMIB Fees”);
 
  •   Net investment income: (i) includes amounts for scheduled periodic settlement payments and amortization of premium on derivatives that are hedges of investments but do not qualify for hedge accounting treatment, (ii) includes income from discontinued real estate operations, (iii) excludes certain amounts related to contractholder-directed unit-linked investments, (iv) excludes post-tax operating earnings adjustments relating to insurance joint ventures accounted for under the equity method and (v) excludes certain amounts related to securitization entities that are variable interest entities (“VIEs”) consolidated under GAAP; and
 
  •   Other revenues are adjusted for settlements of foreign currency earnings hedges.
    The following adjustments are made to GAAP expenses, in the line items indicated, in calculating operating expenses:
  •   Policyholder benefits and claims and policyholder dividends exclude (i) changes in the policyholder dividend obligation related to NIGL and NDGL, (ii) 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, (iii) benefits and hedging costs related to GMIBs (“GMIB Costs”) and (iv) Market Value Adjustments;
 
  •   Interest credited to policyholder account balances includes adjustments for scheduled periodic settlement payments and amortization of premium on derivatives that are hedges of policyholder account balances but do not qualify for hedge accounting treatment and amounts related to net investment income earned on contractholder-directed unit-linked investments;
 
  •   Amortization of deferred policy acquisition costs and value of business acquired (“VOBA”) exclude 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; and
 
  •   Other expenses exclude costs related to (i) noncontrolling interests, (ii) implementation of new insurance regulatory requirements and (iii) business combinations.
(2)   In the first quarter of 2011, the Company began reporting the results from its international operations in two separate segments to reflect a change in the manner in which the financial results are reviewed and evaluated by executive management. The assets, liabilities and the operating results relating to the acquisition of American Life Insurance Company and Delaware American Life Insurance Company (collectively, “ALICO”) are included in Japan and Other International Regions segments. Prior period results have been adjusted to conform to this new presentation of segments.
(3)   See note (1) for definitions of operating earnings, operating earning available to common shareholders, operating revenues and operating expenses for the components of such adjustments.
Item 9.01.     Financial Statements and Exhibits.
      (a) Not applicable.
      (b) Not applicable.
      (c) Not applicable.
      (d) Exhibits
 
    99.1  Press release of MetLife, Inc., dated May 4, 2011, announcing first quarter 2011 results.
 
    99.2  Quarterly Financial Supplement for the quarter ended March 31, 2011.
 
    99.3  Press release of MetLife, Inc. dated May 2, 2011, announcing that its Board of Directors has appointed Steven J. Goulart as Executive Vice President and Chief Investment Officer, effective May 1, 2011.

 

SIGNATURES
     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
         
  METLIFE, INC.
 		  
  By:   /s/ Christine M. DeBiase
     
    Name:   Christine M. DeBiase   
    Title:   Vice President and Secretary  
 
Date: May 4, 2011

 

EXHIBIT INDEX
     
EXHIBIT    
NUMBER   EXHIBIT
99.1  
Press release of MetLife, Inc., dated May 4, 2011, announcing first quarter 2011 results.
 
99.2  
Quarterly Financial Supplement for the quarter ended March 31, 2011.
 
99.3   Press release of MetLife, Inc. dated May 2, 2011, announcing that its Board of Directors has appointed Steven J. Goulart as Executive Vice President and Chief Investment Officer, effective May 1, 2011.