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EXHIBIT 99.1
Contacts: For Media: Kevin Foley
(212) 578-4132
For Investors: Eric Steigerwalt
(212) 578-8670
METLIFE ANNOUNCES THIRD QUARTER 2000 RESULTS
NEW YORK, November 7, 2000 - MetLife, Inc. (NYSE: MET) today reported a 26%
increase in after-tax operating earnings to $384 million for the three months
ended September 30, 2000 from $305 million for the same period in 1999. Diluted
operating earnings per share for the third quarter of 2000 were $0.49, compared
with $0.39, on a pro-forma basis, for the same period last year.
Adjusted after-tax operating earnings for the first nine months of 2000
increased 21% to $1.14 billion from $937 million in the prior year period.
Adjusted after-tax operating earnings for the first nine months of 2000 exclude
a one-time payout to transferred Canadian policyholders of $327 million
associated with Metropolitan Life Insurance Company's demutualization. Adjusted
after-tax operating earnings for the prior year period exclude a one-time charge
of $317 million associated with a previously disclosed litigation settlement.
"Year over year we have shown strong growth in operating earnings per share,
which we fully anticipate will carry through for the remainder of the year,"
said Robert H. Benmosche, chairman and chief executive officer.
Net income for the third quarter of 2000 was $241 million, or $0.31 per share,
on a diluted basis, compared with $242 million, or $0.31 per share, on a
pro-forma basis, for the third quarter of 1999. The net income for the 2000
quarter includes net realized investment losses of $143 million, net of income
taxes. The net income for the 1999 quarter includes demutualization expenses of
$33 million and surplus taxes of $30 million.
THIRD QUARTER SEGMENT RESULTS
Individual Business
Individual Business operating earnings for the quarter increased 41% to $194
million, compared with $138 million in the prior year period. Solid increases in
net investment income contributed, in large part, to earnings improvements.
Total premiums and deposits increased 19% to $3.31 billion from $2.77 billion
from the year-ago quarter. Total first year life insurance premiums and deposits
were $201 million, up 28% from the third quarter of 1999. First year premiums
and deposits for variable and universal life insurance products were $158
million, up 46% from the
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same period in 1999. Annuity deposits were $1.29 billion, up 14% over the prior
year period. The Individual Business sales forces sold $1.03 billion in mutual
funds, compared with $972 million in third quarter 1999. The Individual Business
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 20%, first year premiums and deposits for variable
and universal life insurance products increased 37% and annuity deposits fell
10% from the prior year period. While life insurance premiums and deposits
continued to show strong growth, annuity deposits suffered, in part, because of
customer concerns over volatile markets.
Institutional Business
Institutional Business operating earnings were $159 million for the third
quarter, up 31% from $121 million for the prior year period. Total premiums,
fees and other revenues were up 17% to $1.98 billion from $1.69 billion reported
in third quarter of 1999. Operating earnings from group life increased 47% over
the prior year period while operating earnings from non-medical health and other
increased nearly five-fold over a weak prior year period. Retirement and savings
operating earnings decreased 17% from the year-ago period partially due to
higher expense levels in the defined contribution business. Premiums, fees and
other revenues for the non-medical health and other category increased 28% to
$617 million during the quarter from $482 million for the prior year period.
Group life premiums, fees and other revenues increased 10% to $1.11 billion over
the year-ago period.
Auto & Home
MetLife's Auto & Home segment reported operating earnings of $10 million for the
third quarter 2000 and for the third quarter of 1999. Costs associated with the
integration of the St. Paul personal lines property and casualty business
acquired in 1999, as well as catastrophe losses from storms in the Midwest,
offset improvements in this segment's operating earnings. A major portion of the
catastrophe losses was late claims from storms originally reported in the second
quarter of 2000.
International
In the third quarter, operating earnings from international operations were $5
million versus a break-even quarter in the year-ago period.
Reinsurance
Operating earnings from this business segment were $16 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 which resulted in the company's 58%
ownership interest in Reinsurance Group of America (NYSE:RGA).
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Asset Management
Operating earnings for the asset management segment were $9 million for the
third quarter of 2000, down from $13 million in the year-ago period. On October
30, 2000, the company announced the completion of the sale of its 48% interest
in Nvest, L.P. and Nvest Companies, L.P. to wholly-owned subsidiaries of CDC
Asset Management. The company received $858 million in proceeds from the sale.
CORPORATE EVENTS
Share Repurchase
For the quarter ended September 30, 2000, the company repurchased approximately
7.9 million shares of common stock at an aggregate cost of approximately $193
million through the MetLife Policyholder Trust and the company's share
repurchase program. From April to September 30, 2000, the company has bought
back approximately 19.2 million shares at an aggregate cost of approximately
$407 million.
Earnings Conference Call
MetLife will hold a conference call later this morning from 11:00 a.m. to 12:00
p.m. (EST) to discuss the third quarter results. A Webcast of the call will be
available over the Internet at either www.metlife.com (click on the "Investors
Relations for MetLife, Inc." tab) or www.streetfusion.com. Those who want to
listen to the call should go to the Web site at least fifteen minutes early to
register, and download and install any necessary audio software.
The conference call will be available for replay via telephone and Internet
beginning at 2:00 p.m. (EST) on November 7, 2000 until Monday, November 13,
2000, at 5:00 p.m. (EST). To listen to a replay of the conference call over the
telephone, dial 1-888-790-3813 (domestic callers) or 1-815-394-2809
(international callers). To access the replay of the conference call over the
Internet, visit the above-mentioned Web sites.
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 12 countries.
# # #
This release contains statements which constitute forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995,
including statements relating to trends in the company's operations and
financial results and the business and the products of the company, as well as
other statements including words such as "anticipate", "believe", "plan",
"estimate", "expect", "intend" and other similar expressions. Forward-looking
statements are made based upon management's current expectations and beliefs
concerning future developments and their potential effects on the company. Such
forward-looking statements are not guarantees of future performance.
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Actual results may differ materially from those included in the forward-looking
statements as a result of risks and uncertainties including, but not limited to
the following: (i) changes in general economic conditions, including the
performance of financial markets and interest rates; (ii) heightened
competition, including with respect to pricing, entry of new competitors and the
development of new products by new and existing competitors; (iii) the company's
primary reliance, as a holding company, on dividends from its subsidiaries to
meet debt payment obligations and the applicable regulatory restrictions on the
ability of the subsidiaries to pay such dividends; (iv) catastrophe losses; (v)
regulatory, accounting or tax changes that may affect the cost of, or demand
for, the company's products or services; (vi) downgrades in the company's
affiliates' claims paying ability or financial strength ratings; (vii)
discrepancies between actual claims experience and assumptions used in setting
prices for the company's products and establishing the liabilities for the
company's obligations for future policy benefits and claims; (viii) adverse
litigation or arbitration results and (ix) other risks and uncertainties
described from time to time in the company's filings with the Securities and
Exchange Commission, including its S-1 registration statements. The company
specifically disclaims any obligation to update or revise any forward-looking
statement, whether as a result of new information, future developments or
otherwise.
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 Nine months ended
September 30, September 30,
---------------------- ----------------------
2000 1999 2000 1999
------- ------- ------- -------
<S> <C> <C> <C> <C>
Premiums and fees $ 4,418 $ 3,306 $13,313 $ 9,743
Net investment income 2,946 2,382 8,653 7,189
Other revenues 653 531 1,995 1,579
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8,017 6,219 23,961 18,511
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Policyholder benefits, claims and dividends 4,589 3,607 13,852 10,791
Interest credited to policyholder account balances 754 625 2,175 1,833
Other expenses 2,089 1,509 6,515 4,930
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7,432 5,741 22,542 17,554
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Operating earnings, before provision for income taxes 585 478 1,419 957
Provision for income taxes 201 173 609 337
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OPERATING EARNINGS $ 384 $ 305 $ 810 $ 620
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Cash payments - transferred Canadian policyholders -- -- 327 --
Global litigation settlement (net of income taxes) -- -- -- 317
------- ------- ------- -------
ADJUSTED OPERATING EARNINGS $ 384 $ 305 $ 1,137 $ 937
======= ======= ======= =======
</TABLE>
MetLife, Inc.
Financial Highlights
Unaudited
(Dollar amounts in millions, unless otherwise noted)
<TABLE>
<CAPTION>
At or for the At or for the
three months nine months
ended September 30, ended September 30,
-------------------- ---------------------
2000 1999 2000 1999
------ ------ ------ ------
<S> <C> <C> <C> <C>
Other Financial Data:
Adjusted operating earnings $ 384 $ 305 $1,137 $ 937
Operating earnings $ 384 $ 305 $ 810 $ 620
Net income $ 241 $ 242 $ 362 $ 351
Total assets under management (billions) $ 423 $ 368 $ 423 $ 368
Sales Data:
Total first year life premiums and deposits $ 201 $ 157 $ 599 $ 472
Variable and universal life first year premiums and deposits $ 158 $ 108 $ 457 $ 323
Total annuity deposits $1,290 $1,129 $4,307 $3,385
Mutual fund sales $1,027 $ 972 $3,658 $2,878
Earnings per Share Calculation:
Weighted average common shares outstanding - diluted 788.7 n/a 785.0* n/a
Adjusted operating earnings per share - diluted $ 0.49 n/a $ 1.45* 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 - diliuted for the nine months ended September 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.
Consolidated Balance Sheet Data
Unaudited
(Dollar amounts in millions, unless otherwise noted)
<TABLE>
<CAPTION>
At At
September 30, December 31,
2000 1999
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<S> <C> <C>
Consolidated Balance Sheet Data:
General account assets $ 182,386 $ 160,291
Separate account assets 75,103 64,941
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$ 257,489 $ 225,232
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Policyholder liabilities (including amounts of closed block) $ 141,264 $ 124,955
Short-term debt $ 1,829 $ 4,208
Long-term debt $ 2,892 $ 2,514
Company-obligated mandatorily redeemable capital securities $ 1,085 $ -
Common stock, at par value $ 8 $ -
Capital in excess of par value $ 14,926 $ -
Retained earnings $ 583 $ 14,100
Treasury stock $ (407) $ -
Accumulated other comprehensive income (loss) $ 97 $ (410)
Total equity $ 15,207 $ 13,690
</TABLE>
