METLIFE INC – 10-Q – Management’s Discussion and Analysis of Financial Position and Results of Operations


Index to the management report and analysis of the financial situation and results

  Forward-Looking Statements and Other Financial Information         87
  Executive Summary                                                  87
  Industry Trends                                                    91
  Summary of Critical Accounting Estimates                           93
  Economic Capital                                                   94
  Acquisitions and Dispositions                                      95
  Results of Operations                                              96
  Investments                                                        123
  Derivatives                                                        137
  Off-Balance Sheet Arrangements                                     139
  Policyholder Liabilities                                           140
  Liquidity and Capital Resources                                    147
  Adoption of New Accounting Pronouncements                          156
  Future Adoption of New Accounting Pronouncements                   157
  Non-GAAP and Other Financial Disclosures                           157

  Table of Contents
Forward-Looking Statements and Other Financial Information
For purposes of this discussion, "MetLife," the "Company," "we," "our" and "us"
refer to MetLife, Inc., a Delaware corporation incorporated in 1999, its
subsidiaries and affiliates. This discussion should be read in conjunction with
MetLife, Inc.'s Annual Report on Form 10-K for the year ended December 31, 2020
(the "2020 Annual Report"), the cautionary language regarding forward-looking
statements included below, the "Risk Factors" set forth in Part II, Item 1A, and
the additional risk factors referred to therein, "Quantitative and Qualitative
Disclosures About Market Risk" and the Company's interim condensed consolidated
financial statements included elsewhere herein.
This Management's Discussion and Analysis of Financial Condition and Results of
Operations may contain or incorporate by reference information that includes or
is based upon forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. See "Note Regarding Forward-Looking
Statements" for cautionary language regarding forward-looking statements.
This Management's Discussion and Analysis of Financial Condition and Results of
Operations includes references to our performance measures, adjusted earnings
and adjusted earnings available to common shareholders, that are not based on
accounting principles generally accepted in the United States of America
("GAAP"). See "- Non-GAAP and Other Financial Disclosures" for definitions and a
discussion of these and other financial measures, and "- Results of Operations"
and "- Investments" for reconciliations of historical non-GAAP financial
measures to the most directly comparable GAAP measures.
Executive Summary
MetLife is one of the world's leading financial services companies, providing
insurance, annuities, employee benefits and asset management. MetLife is
organized into five segments: U.S.; Asia; Latin America; Europe, the Middle East
and Africa ("EMEA"); and MetLife Holdings. In addition, the Company reports
certain of its results of operations in Corporate & Other. See Note 2 of the
Notes to the Interim Condensed Consolidated Financial Statements for further
information on the Company's segments and Corporate & Other.
COVID-19 Pandemic
We continue to closely monitor developments relating to the novel coronavirus
COVID-19 pandemic (the "COVID-19 Pandemic") and assess its impact on our
business. The COVID-19 Pandemic continues to impact the global economy and
financial markets and has caused volatility in the global equity, credit and
real estate markets. See "- Industry Trends - Financial and Economic
Environment." We have implemented risk management and business continuity plans
and taken preventive measures and other precautions, such as employee business
travel restrictions and remote work arrangements which, to date, have enabled us
to maintain our critical business processes, customer service levels,
relationships with key vendors, financial reporting systems, internal controls
over financial reporting and disclosure controls and procedures.
We continue to grant certain accommodations to our customers and borrowers,
including (i) relaxing claim documentation requirements for disability claims
and (ii) payment deferrals and other loan modifications on certain commercial,
agricultural and residential mortgage loans. See Note 6 of the Notes to the
Interim Condensed Consolidated Financial Statements for further information
regarding COVID-19 Pandemic-related mortgage loan concessions. See also "-
Results of Operations - Segment Results and Corporate & Other" for further
information regarding the effect of the COVID-19 Pandemic on our businesses.
Current Period Highlights
During the three months ended September 30, 2021, adjusted premiums, fees and
other revenues, net of foreign currency fluctuations, decreased compared to the
prior period driven by the disposition of MetLife Property and Casualty
Insurance Company and certain of its wholly-owned subsidiaries (collectively,
"MetLife P&C"). Growth in our Group Benefits business in our U.S. segment was
driven by the acquisition of Versant Health, Inc. ("Versant Health"). Strong
returns in our private equity portfolio resulted in improved investment yields
and changes in key equity indexes and long-term interest rates drove a favorable
change in net derivative gains (losses). In addition, results in both periods
included a charge due to the impact of our annual actuarial assumption review.
Underwriting experience was unfavorable and reflected impacts from the COVID-19

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The following represents segment level results and percentage contributions to
total segment-adjusted profit available to common shareholders for the
three months ended September 30, 2021:

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(1) Excludes adjusted loss of head office and others available to common shareholders of
$ 131 million.
(2) In accordance with GAAP guidelines for segment reporting, adjusted profit is our
GAAP measure of sector performance. For more information, see note 2 of
the notes to the condensed consolidated interim financial statements.


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