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Exhibit 99.1
Contacts: For Media: Kevin Foley
(212) 578-4132
For Investors: Eric Steigerwalt
(212) 578-8670
METLIFE ANNOUNCES SECOND QUARTER 2000 RESULTS
NEW YORK, August 9, 2000 - MetLife, Inc. (NYSE: MET) today reported an 18%
increase in after-tax adjusted operating earnings to $374 million for the three
months ended June 30, 2000 from $317 million for the same period in 1999. The
after-tax adjusted operating earnings exclude a one-time payout to transferred
Canadian policyholders of $327 million associated with Metropolitan Life
Insurance Company's demutualization. During the prior year period, adjusted
operating earnings excluded a one-time charge of $317 million associated with a
previously disclosed litigation settlement.
Diluted adjusted operating earnings per share for the second quarter of 2000
were $0.48 as compared to $0.40, on a pro-forma basis, for the same period last
year. Adjusted operating earnings for the first half of 2000 increased 19% to
$753 million from $632 million in the prior year period.
"We continue to be pleased with our steady progress. We are seeing strong sales
growth in key business areas, notably in our variable and universal life
insurance products in our Individual Business segment, and non-medical and other
offerings in our Institutional Business segment," said Robert H. Benmosche,
chairman and chief executive officer. "We are optimistic that the second half of
the year will reflect the favorable growth trends experienced thus far."
For the quarter, the company reported a net loss of $115 million compared with a
net loss of $120 million during the same three-month period in 1999. The net
loss for the 2000 quarter includes the one-time payout as cited above of $327
million, demutualization expenses of $129 million and realized investment losses
of $33 million. The net loss for the 1999 quarter includes the one-time charge
of $317 million cited above, demutualization expenses of $36 million, realized
investment losses of $53 million and surplus taxes of $31 million.
Net income for the second quarter, excluding the $327 million one-time payout
and demutualization expenses of $129 million, was $341 million or $0.44 per
share on a diluted basis. Income for the second quarter in 1999, excluding the
$317 million litigation charge and demutualization expenses of $36 million, was
$233 million or $0.30 per share on a pro-forma diluted basis.
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SECOND QUARTER SEGMENT RESULTS
Individual Business
Individual Business operating earnings for the quarter increased 48% to $194
million compared with $131 million in the year-ago period. Solid increases in
net investment income contributed, in large part, to earnings improvements.
Total premiums and deposits increased 28% to $3.70 billion from $2.89 billion
from the year-ago quarter. Total first year life insurance premiums and deposits
were $201 million, up 43% from the second quarter of 1999. First year premiums
and deposits for variable and universal life insurance products were $154
million, up 57% from the same period in 1999. Annuity deposits were $1.49
billion, up 24% over the prior year period. The Individual Business sales forces
sold $1.16 billion in mutual funds, compared with $984 million in second quarter
1999. These results reflect continued sales growth from the company's existing
distribution channels, including contributions from the GenAmerica Corporation
channels MetLife acquired in January 2000.
Excluding the contributions from GenAmerica, total first year life insurance
premiums and deposits were up 30%, first year premiums and deposits for variable
and universal life insurance products increased 43% and annuity deposits rose 8%
as compared to the prior year period.
Institutional Business
Institutional Business operating earnings were $148 million for the second
quarter, down 17% from $178 million for the year-ago period. Total premiums,
fees and other revenue were up 29% to $2.09 billion from $1.62 billion reported
in second quarter 1999. Operating earnings from group life and non-medical
health improved 42% and 18%, respectively, over the year ago period. Retirement
and savings operating earnings decreased 53% from the prior year level which
included unusually high investment income. Premiums, fees and other revenues for
the non-medical health and other category increased 40% to $650 million during
the quarter from $463 million for the prior year period. Group life premiums,
fees and other revenues increased 18% to $1.13 billion, over the year ago
period.
Auto & Home
MetLife Auto & Home reported an operating loss of $13 million for the second
quarter 2000 compared with a gain of $18 million for the same period in 1999.
This decrease is primarily the result of catastrophe losses from storms in the
Midwest and fires in New Mexico.
International
In the second quarter, adjusted operating earnings from international
operations, which excludes the one-time payout of $327 million cited previously,
were $7 million, up from $4 million from the year-ago period.
Reinsurance
Operating earnings from this business segment were $9 million for the quarter.
The company established a reinsurance segment in the first quarter of this year
as a result of the acquisition of GenAmerica and its 58% ownership interest in
its subsidiary, Reinsurance Group of America (NYSE:RGA).
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Asset Management
Operating earnings for the asset management segment were $10 million for the
second quarter of 2000, down from $14 million in the year-ago period. MetLife
agreed to sell its 48% interest in Nvest Companies, L.P. to CDC Asset
Management, an affiliate of Caisse des Depots Group (CDC) based in Paris, on
June 16, 2000, for $858 million. The company expects the transaction to be
completed before the end of the year.
CORPORATE EVENTS
Share Repurchase
As permitted by the Metropolitan Life Insurance Company demutualization plan,
MetLife, Inc. has been purchasing all shares available for sale, subject to
certain limitations, from the MetLife Policyholder Trust, which was established
in connection with the demutualization. As of June 30, 2000, the company has
bought back 11,262,493 shares at an aggregate cost of approximately $214 million
through the MetLife Policyholder Trust. In addition, on June 27, 2000, MetLife's
Board of Directors authorized a stock repurchase program for up to an aggregate
of $1 billion of the company's outstanding common stock. The company may make
purchases in the open market and through privately negotiated transactions, in
addition to purchasing shares through the MetLife Policyholder Trust.
MetLife, Inc., through its subsidiaries and affiliates, is a leading provider of
insurance and other financial services to individual and group customers. The
MetLife companies serve approximately nine million individual households in the
U.S. and companies and institutions with 33 million employees and members. It
also has international insurance operations in 11 countries.
# # #
This release contains statements which constitute forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements are not guarantees of future performance. Actual
results may differ materially from those anticipated in the forward-looking
statements as a result of risks and uncertainties including: changes in interest
rates, declines in securities markets and the effect on sales of investment
products and on our investment portfolio, competition, litigation, differences
between actual claims experience and underwriting and reserving assumptions,
downgrades in our or our affiliates' ratings and the risk factors described from
time to time in our filings with the Securities and Exchange Commission,
including our S-1 registration statements.
For a copy of our Quarterly Financial Supplement, please visit our Web site
[www.metlife.com].
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MetLife, Inc.
Consolidated Statements of Adjusted Operating Earnings
Unaudited
(Dollar amounts in millions)
<TABLE>
<CAPTION>
Three months ended June 30, Six months ended June 30,
---------------------------------------------------------------
2000 1999 2000 1999
---------------------------------------------------------------
<S> <C> <C> <C> <C>
Premiums and fees $ 4,564 $ 3,182 $ 8,894 $ 6,437
Net investment income 2,924 2,497 5,708 4,807
Other revenues 677 574 1,342 1,048
-------- -------- -------- --------
8,165 6,253 15,944 12,292
-------- -------- -------- --------
Policyholder benefits, claims and dividends 4,747 3,659 9,263 7,184
Interest credited to policyholder account balances 724 598 1,421 1,208
Other expenses 2,447 2,002 4,426 3,421
-------- -------- -------- --------
7,918 6,259 15,110 11,813
-------- -------- -------- --------
Operating earnings, before provision for income taxes 247 (6) 834 479
Provision for income taxes 200 (6) 408 164
-------- -------- -------- --------
Operating earnings $ 47 $ -- $ 426 $ 315
======== ======== ======== ========
Cash Payments - Transferred Canadian Policyholders 327 -- 327 --
Global Litigation Settlement (net of income taxes) -- 317 -- 317
Adjusted operating earnings $ 374 $ 317 $ 753 $ 632
======== ======== ======== ========
</TABLE>
MetLife, Inc.
Financial Highlights
Unaudited
(Dollar amounts in millions, unless otherwise noted)
<TABLE>
<CAPTION>
At or for the three months At or for the six months
ended June 30, ended June 30,
----------------------- ----------------------
2000 1999 2000 1999
------- ------- ------- -------
<S> <C> <C> <C> <C>
Other Financial Data:
Adjusted operating earnings $ 374 $ 317 $ 753 $ 632
Operating earnings $ 47 $ -- $ 426 $ 315
Net income (loss) $ (115) $ (120) $ 121 $ 109
Total assets under management (billions) $ 421 $ 364 $ 421 $ 364
Sales Data:
Total first year life premiums & deposits $ 201 $ 141 $ 398 $ 281
Variable & universal life first year premiums & deposits $ 154 $ 98 $ 299 $ 195
Total annuity deposits $ 1,489 $ 1,197 $ 3,017 $ 2,256
Mutual fund sales $ 1,164 $ 984 $ 2,631 $ 1,905
Earnings per Share Calculation:
Weighted average common shares outstanding - diluted 780.1 n/a 783.2 * n/a
Adjusted operating earnings per share - diluted $ 0.48 n/a $0.96 * n/a
</TABLE>
* Note: MetLife, Inc.'s initial public offering took place on April 5, 2000.
Weighted average common shares outstanding - diluted and Adjusted operating
earnings per share - diluted for the six months ended June 30, 2000 are
pro-forma assuming 786.2 million common shares outstanding beginning January 1,
2000 through the date of IPO.
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MetLife, Inc.
Balance Sheet Data
Unaudited
(Dollar amounts in millions, unless otherwise noted)
<TABLE>
<CAPTION>
At At
June 30, December 31,
2000 1999
--------- ---------
<S> <C> <C>
Balance Sheet Data:
General account assets $ 181,119 $ 160,291
Separate account assets 73,706 64,941
--------- ---------
$ 254,825 $ 225,232
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Policyholder liabilities (including amounts of closed block) $ 140,515 $ 124,955
Short-term debt $ 1,776 $ 4,208
Long-term debt $ 2,833 $ 2,514
Company-obligated mandatorily redeemable capital securities $ 1,084 $ --
Common stock, at par value $ 8 $ --
Capital in excess of par value $ 14,926 $ --
Retained earnings $ 341 $ 14,100
Treasury stock $ (214) $ --
Accumulated other comprehensive loss $ (494) $ (410)
Total equity $ 14,567 $ 13,690
</TABLE>
