METLIFE INC - FORM 8-K - EX-99.2

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EX-99.1 - EX-99.1 - METLIFE INC	d235576dex991.htm
8-K - 8-K - METLIFE INC	d235576d8k.htm

Exhibit 99.2

MetLife, Inc.

GAAP Interim Condensed Consolidated Statements of Operations

(Unaudited)


	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2016			2015			2016			2015
	(In millions)						(In millions)
Revenues
Premiums	$	9,417		$	9,312		$	19,110		$	18,565
Universal life and investment-type product policy fees		2,286			2,434			4,630			4,828
Net investment income		4,887			4,947			9,446			10,408
Other revenues		487			518			974			1,013
Net investment gains (losses)		266			(133	)		281			153
Net derivative gains (losses)		(2,099	)		(912	)		(764	)		(91	)

Total revenues		15,244			16,166			33,677			34,876

Expenses
Policyholder benefits and claims		10,274			9,352			19,952			18,609
Interest credited to policyholder account balances		1,500			1,298			2,826			3,293
Policyholder dividends		324			331			639			670
Other expenses		3,246			4,072			7,438			8,132

Total expenses		15,344			15,053			30,855			30,704

Income (loss) from continuing operations before provision for income tax		(100	)		1,113			2,822			4,172
Provision for income tax expense (benefit)		(214	)		(6	)		505			890

Net income (loss)		114			1,119			2,317			3,282
Less: Net income (loss) attributable to noncontrolling interests		4			4			6			9

Net income (loss) attributable to MetLife, Inc.		110			1,115			2,311			3,273
Less: Preferred stock dividends		46			31			52			61
Preferred stock repurchase premium		—			42			—			42

Net income (loss) available to MetLife, Inc.’s common shareholders	$	64		$	1,042		$	2,259		$	3,170

See footnotes on last page.

MetLife, Inc.

Consolidated Statements of Operating Earnings Available to Common Shareholders

(Unaudited)


	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2016			2015			2016			2015
	(In millions)						(In millions)
Operating revenues
Premiums	$	9,417		$	9,313		$	18,684		$	18,566
Universal life and investment-type product policy fees		2,173			2,335			4,324			4,629
Net investment income		4,881			5,185			9,587			10,167
Other revenues		484			527			971			1,030

Total operating revenues		16,955			17,360			33,566			34,392

Operating expenses
Policyholder benefits and claims and policyholder dividends		10,385			9,503			19,978			18,950
Interest credited to policyholder account balances		1,314			1,342			2,615			2,673
Capitalization of DAC		(915	)		(927	)		(1,791	)		(1,895	)
Amortization of DAC and VOBA		1,015			1,001			1,896			1,954
Amortization of negative VOBA		(61	)		(83	)		(128	)		(173	)
Interest expense on debt		303			307			615			604
Other operating expenses		3,659			3,882			7,369			7,682

Total operating expenses		15,700			15,025			30,554			29,795

Operating earnings before provision for income tax		1,255			2,335			3,012			4,597
Provision for income tax expense (benefit)		285			539			707			1,133

Operating earnings		970			1,796			2,305			3,464
Preferred stock dividends		46			31			52			61

Operating earnings available to common shareholders	$	924		$	1,765		$	2,253		$	3,403

Reconciliation to Income (Loss) from Continuing Operations, Net of Income Tax
Operating earnings	$	970		$	1,796		$	2,305		$	3,464
Adjustments from operating earnings to income (loss) from continuing operations, net of income tax:
Net investment gains (losses) (1)		266			(133	)		281			153
Net derivative gains (losses) (1)		(2,099	)		(912	)		(764	)		(91	)
Premiums		—			(1	)		426			(1	)
Universal life and investment-type product policy fees		113			99			306			199
Net investment income		6			(238	)		(141	)		241
Other revenues		3			(9	)		3			(17	)
Policyholder benefits and claims and policyholder dividends (1)		(213	)		(180	)		(613	)		(329	)
Interest credited to policyholder account balances		(186	)		44			(211	)		(620	)
Capitalization of DAC		—			—			105			—
Amortization of DAC and VOBA (1)		894			104			780			32
Amortization of negative VOBA		6			9			38			19
Interest expense on debt		(3	)		(1	)		(3	)		(2	)
Other operating expenses		(142	)		(4	)		(397	)		(9	)
Goodwill impairment		—			—			—			—
Provision for income tax (expense) benefit (1)		499			545			202			243

Income (loss) from continuing operations, net of income tax		114			1,119			2,317			3,282
Income (loss) from discontinued operations, net of income tax		—			—			—			—

Net income (loss)		114			1,119			2,317			3,282
Less: Net income (loss) attributable to noncontrolling interests		4			4			6			9

Net income (loss) attributable to MetLife, Inc.		110			1,115			2,311			3,273
Less: Preferred stock dividends		46			31			52			61
Preferred stock repurchase premium		—			42			—			42

Net income (loss) available to MetLife, Inc.’s common shareholders	$	64		$	1,042		$	2,259		$	3,170

See footnotes on last page.

MetLife, Inc.

(Unaudited)


	For the Three Months Ended June 30,												For the Six Months Ended June 30,
	2016						2015						2016						2015
				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 (2)
	(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, adjusted for total notable items	$	1,410		$	1.27		$	1,704		$	1.51		$	2,860		$	2.58		$	3,358		$	2.97
Add: Total notable items		(486	)		(0.44	)		61			0.05			(607	)		(0.55	)		45			0.04

Operating earnings available to common shareholders	$	924		$	0.83		$	1,765		$	1.56		$	2,253		$	2.03		$	3,403		$	3.01
Adjustments from operating earnings available to common shareholders to net income (loss) available to MetLife, Inc.’s common shareholders:
Add: Net investment gains (losses)		266			0.24			(133	)		(0.12	)		281			0.25			153			0.14
Add: Net derivative gains (losses)		(2,099	)		(1.89	)		(912	)		(0.81	)		(764	)		(0.69	)		(91	)		(0.08	)
Add: Goodwill impairment		—			—			—			—			—			—			—			—
Add: Other adjustments to continuing operations		478			0.43			(177	)		(0.15	)		293			0.27			(487	)		(0.43	)
Add: Provision for income tax (expense) benefit		499			0.45			545			0.48			202			0.18			243			0.21
Add: Income (loss) from discontinued operations, net of income tax		—			—			—			—			—			—			—			—
Less: Net income (loss) attributable to noncontrolling interests		4			—			4			—			6			—			9			0.01
Less: Preferred stock repurchase premium		—			—			42			0.04			—			—			42			0.04

Net income (loss) available to MetLife, Inc.’s common shareholders	$	64		$	0.06		$	1,042		$	0.92		$	2,259		$	2.04		$	3,170		$	2.80

Weighted average common shares outstanding - diluted					1,109.1						1,128.4						1,108.9						1,131.1

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2016			2015			2016			2015
	(In millions)						(In millions)
Reconciliation to Premiums, Fees and Other Revenues
Total operating premiums, fees and other revenues	$	12,074		$	12,175		$	23,979		$	24,225
Add: Adjustments to premiums, fees and other revenues		116			89			735			181

Total premiums, fees and other revenues	$	12,190		$	12,264		$	24,714		$	24,406

Reconciliation to Revenues and Expenses
Total operating revenues	$	16,955		$	17,360		$	33,566		$	34,392
Add: Net investment gains (losses)		266			(133	)		281			153
Add: Net derivative gains (losses)		(2,099	)		(912	)		(764	)		(91	)
Add: Adjustments related to net investment gains (losses) and net derivative gains (losses)		9			3			34			7
Add: Other adjustments to revenues		113			(152	)		560			415

Total revenues	$	15,244		$	16,166		$	33,677		$	34,876

Total operating expenses	$	15,700		$	15,025		$	30,554		$	29,795
Add: Adjustments related to net investment gains (losses) and net derivative gains (losses)		(1,087	)		(94	)		(1,081	)		1
Add: Goodwill impairment		—			—			—			—
Add: Other adjustments to expenses		731			122			1,382			908

Total expenses	$	15,344		$	15,053		$	30,855		$	30,704

See footnotes on last page.

MetLife, Inc.

(Unaudited)


	June 30,
	2016			2015
Book Value (3)
Book value per common share	$	70.18		$	60.27
Less: Net unrealized investment gains (losses), net of income tax		18.78			11.52
Less: Defined benefit plans adjustment, net of income tax		(1.80	)		(1.98	)

Book value per common share, excluding AOCI other than FCTA	$	53.20		$	50.73
Less: Goodwill, net of income tax		8.79			8.51
Less: VODA and VOCRA, net of income tax		0.43			0.49

Book value per common share - tangible common stockholders’ equity	$	43.98		$	41.73

Common shares outstanding, end of period (In millions)		1,098.8			1,116.8

	For the Three Months Ended June 30,
	2016			2015
Return on Equity (4)
Return on MetLife, Inc.’s:
Common stockholders’ equity		0.3	%		6.0	%
Common stockholders’ equity, excluding AOCI other than FCTA		0.4	%		7.4	%
Tangible common stockholders’ equity		0.6	%		9.1	%

Operating return on MetLife, Inc.’s:
Common stockholders’ equity		4.9	%		10.2	%
Common stockholders’ equity, excluding AOCI other than FCTA		6.3	%		12.5	%
Common stockholders’ equity, excluding AOCI other than FCTA, adjusted for total notable items		9.5	%		12.1	%
Tangible common stockholders’ equity		7.7	%		15.3	%
Tangible common stockholders’ equity, adjusted for total notable items		11.5	%		14.9	%

Return on Allocated Equity:
Americas		(7.6	)%		10.4	%
Asia		27.9	%		19.6	%
EMEA		11.8	%		7.7	%

Return on Allocated Tangible Equity:
Americas		(8.3	)%		11.7	%
Asia		48.0	%		33.7	%
EMEA		20.2	%		14.2	%

Operating Return on Allocated Equity:
Americas		8.6	%		14.8	%
Asia		9.4	%		14.8	%
EMEA		7.9	%		6.0	%

Operating Return on Allocated Tangible Equity:
Americas		9.6	%		16.6	%
Asia		16.2	%		25.4	%
EMEA		13.8	%		11.2	%

See footnotes on last page.

MetLife, Inc.

Supplemental Reconciliations to Net Income (Loss) Available to Common Shareholders

(Unaudited)


	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2016			2015			2016			2015
	(In millions)						(In millions)
Total Americas Operations:
Operating earnings available to common shareholders, adjusted for total notable items	$	1,266		$	1,443		$	2,520		$	2,840
Add: Total notable items		(431	)		—			(547	)		(16	)

Operating earnings available to common shareholders		835			1,443			1,973			2,824
Add: Net investment gains (losses)		180			(14	)		(91	)		260
Add: Net derivative gains (losses)		(3,174	)		(508	)		(2,725	)		69
Add: Other adjustments to continuing operations		576			(124	)		374			(392	)
Add: Provision for income tax (expense) benefit		844			221			836			16
Less: Net income (loss) attributable to noncontrolling interests		2			3			3			6

Net income (loss) available to MetLife, Inc.’s common shareholders	$	(741	)	$	1,015		$	364		$	2,771

Retail:
Operating earnings available to common shareholders, adjusted for total notable items	$	575		$	692		$	1,161		$	1,348
Add: Total notable items		(391	)		(2	)		(445	)		(5	)

Operating earnings available to common shareholders		184			690			716			1,343
Add: Net investment gains (losses)		84			9			(33	)		77
Add: Net derivative gains (losses)		(3,643	)		(95	)		(3,654	)		218
Add: Other adjustments to continuing operations		749			(72	)		717			(264	)
Add: Provision for income tax (expense) benefit		984			55			1,040			(11	)

Net income (loss) available to MetLife, Inc.’s common shareholders	$	(1,642	)	$	587		$	(1,214	)	$	1,363

Group, Voluntary & Worksite Benefits:
Operating earnings available to common shareholders, adjusted for total notable items	$	228		$	229		$	419		$	469
Add: Total notable items		(7	)		2			(24	)		(10	)

Operating earnings available to common shareholders		221			231			395			459
Add: Net investment gains (losses)		11			8			(28	)		11
Add: Net derivative gains (losses)		314			(264	)		605			(59	)
Add: Other adjustments to continuing operations		(44	)		(41	)		(89	)		(83	)
Add: Provision for income tax (expense) benefit		(94	)		104			(166	)		46

Net income (loss) available to MetLife, Inc.’s common shareholders	$	408		$	38		$	717		$	374

Corporate Benefit Funding:
Operating earnings available to common shareholders, adjusted for total notable items	$	331		$	406		$	656		$	775
Add: Total notable items		(29	)		—			(59	)		—

Operating earnings available to common shareholders		302			406			597			775
Add: Net investment gains (losses)		67			(31	)		(26	)		174
Add: Net derivative gains (losses)		181			(134	)		266			(54	)
Add: Other adjustments to continuing operations		(73	)		13			(148	)		(26	)
Add: Provision for income tax (expense) benefit		(61	)		53			(32	)		(33	)

Net income (loss) available to MetLife, Inc.’s common shareholders	$	416		$	307		$	657		$	836

Latin America:
Operating earnings available to common shareholders, adjusted for total notable items	$	132		$	116		$	284		$	248
Add: Total notable items		(4	)		—			(19	)		(1	)

Operating earnings available to common shareholders		128			116			265			247
Add: Net investment gains (losses)		18			—			(4	)		(2	)
Add: Net derivative gains (losses)		(26	)		(15	)		58			(36	)
Add: Other adjustments to continuing operations		(56	)		(24	)		(106	)		(19	)
Add: Provision for income tax (expense) benefit		15			9			(6	)		14
Less: Net income (loss) attributable to noncontrolling interests		2			3			3			6

Net income (loss) available to MetLife, Inc.’s common shareholders	$	77		$	83		$	204		$	198

Asia:
Operating earnings available to common shareholders, adjusted for total notable items	$	313		$	364		$	618		$	691
Add: Total notable items		(54	)		61			(54	)		61

Operating earnings available to common shareholders		259			425			564			752
Add: Net investment gains (losses)		140			57			363			125
Add: Net derivative gains (losses)		606			9			1,017			27
Add: Other adjustments to continuing operations		(30	)		(37	)		37			(92	)
Add: Provision for income tax (expense) benefit		(204	)		111			(347	)		101
Less: Net income (loss) attributable to noncontrolling interests		1			1			1			1

Net income (loss) available to MetLife, Inc.’s common shareholders	$	770		$	564		$	1,633		$	912

EMEA:
Operating earnings available to common shareholders, adjusted for total notable items	$	64		$	50		$	127		$	120
Add: Total notable items		—			—			—			—

Operating earnings available to common shareholders		64			50			127			120
Add: Net investment gains (losses)		16			5			24			8
Add: Net derivative gains (losses)		3			13			2			14
Add: Other adjustments to continuing operations		48			(12	)		66			7
Add: Provision for income tax (expense) benefit		(35	)		7			(49	)		(19	)
Less: Net income (loss) attributable to noncontrolling interests		1			(1	)		2			1

Net income (loss) available to MetLife, Inc.’s common shareholders	$	95		$	64		$	168		$	129

Corporate & Other:
Operating earnings available to common shareholders, adjusted for total notable items	$	(233	)	$	(153	)	$	(405	)	$	(293	)
Add: Total notable items		(1	)		—			(6	)		—

Operating earnings available to common shareholders		(234	)		(153	)		(411	)		(293	)
Add: Net investment gains (losses)		(70	)		(181	)		(15	)		(240	)
Add: Net derivative gains (losses)		466			(426	)		942			(201	)
Add: Other adjustments to continuing operations		(116	)		(4	)		(184	)		(10	)
Add: Provision for income tax (expense) benefit		(106	)		206			(238	)		145
Less: Net income (loss) attributable to noncontrolling interests		—			1			—			1
Less: Preferred stock repurchase premium		—			42			—			42

Net income (loss) available to MetLife, Inc.’s common shareholders	$	(60	)	$	(601	)	$	94		$	(642	)

⁽¹⁾

The impacts of asymmetrical and non-economic accounting for the three months ended June 30, 2016 are as follows: i) Net investment gains (losses) - $217 million; ii) Net derivative gains (losses) - $2.3 billion; iii) Policyholder benefits and claims and policyholder dividends - ($66) million; iv) Amortization of DAC and VOBA - $402 million; and v) Provision for income tax (expense) benefit - ($989) million.

⁽²⁾

Operating earnings available to common shareholders is calculated on a stand alone basis and may not equal the sum of operating earnings available to common shareholders, adjusted for total notable items and total notable items.

⁽³⁾

Book values exclude $2,066 million of equity related to preferred stock at both June 30, 2016 and 2015.

⁽⁴⁾

Annualized using quarter-to-date results.

METLIFE INC - FORM 8-K - EX-99.2 - August 4, 2016

Attached files