Steven Wevodau - Life Insurance

NEW YORK–(BUSINESS WIRE)–MetLife, Inc. (NYSE: MET - News) today reported fourth quarter 2008 net income¹ of $1.0 billion, or $1.20 per share, compared with $1.1 billion, or $1.44 per share, for the fourth quarter of 2007. Operating earnings² for the fourth quarter of 2008 were $148 million, or $0.19 per share, compared with $1.2 billion, or $1.54 per share, for the prior period.MetLife today also reported full year 2008 net income of $3.1 billion, or $4.14 per share, compared with $4.2 billion, or $5.48 per share, for 2007. Operating earnings for 2008 were $2.7 billion, or $3.67 per share, compared with $4.6 billion, or $6.00 per share, for 2007.

	For the three months ended December 31,			For the year ended December 31,
	2008	2007		2008	2007
	(In millions, except per common share data)
Net income available to common shareholders	$954	$1,083		$3,084	$4,180
Net income available to common shareholders per diluted common share	$1.20	$1.44		$4.14	$5.48
Operating earnings available to common shareholders2	$148	$1,161		$2,736	$4,570
Operating earnings available to common shareholders per diluted common share2	$0.19	$1.54		$3.67	$6.00
Book value per diluted common share	$27.33	$43.94
Book value per diluted common share, excluding accumulated other comprehensive income2	$45.29	$42.51

¹ All references in this press release (other than in any of the tables and in the Non-GAAP and Other Financial Disclosures discussion below) to net income, net income per share, operating earnings and operating earnings per share should be read as net income available to common shareholders, net income available to common shareholders per diluted common share, operating earnings available to common shareholders and operating earnings available to common shareholders per diluted common share, respectively.

² Operating earnings available to common shareholders, operating earnings available to common shareholders per diluted common share and book value per diluted common share, excluding accumulated other comprehensive income, are not calculated based on generally accepted accounting principles (GAAP). Information regarding non-GAAP financial measures in this press release and the reconciliation of them to GAAP measures are provided in the Non-GAAP and Other Financial Disclosures discussion below, as well as in the tables that accompany this release.

Full Year 2008 Highlights

 

• Total premiums, fees and other revenues of $32.9 billion, up 11% over 2007
• Premiums, fees and other revenues up 19% for Institutional Business and 11% for International over 2007
• U.S. annuity deposits up 16% over 2007
• Annual common stock dividend maintained at $0.74 per share

“In 2008, MetLife generated a strong, 11% increase in top line results in what is clearly the most challenging economic environment we have experienced in decades,” said C. Robert Henrikson, chairman, president & chief executive officer of MetLife, Inc. “During the year, we benefited from a flight to quality in the marketplace. Our core businesses continued to grow and we achieved a number of positive results, including higher pension close-out sales as well as strong annuity deposits in both the U.S. and Japan.”

“MetLife’s capital strength, strong ratings and focus on the long-term will continue to set us apart as we move ahead in 2009. These attributes, along with our diversified businesses and investment portfolio, serve us well,” added Henrikson.

Fourth Quarter Segment Overview

All comparisons of fourth quarter 2008 results in the segment discussions below are with the fourth quarter of 2007, unless otherwise noted. Reconciliations of segment net income to segment operating earnings are provided in the tables that accompany this release.

Institutional Business

Institutional Business continued to generate significant top line growth across all of its businesses as total premiums, fees and other revenues grew 18% over the fourth quarter of 2007 to reach $4.2 billion. Institutional Business operating earnings were $272 million, down from $527 million in the prior period due mainly to significantly lower investment income.

Premiums, fees and other revenues in the group life business increased 9% for the quarter due largely to growth in term life premiums. Group life operating earnings were $117 million, up 26% from $93 million as the business continued to experience solid underwriting and investment results, as well as lower expenses.

Non-medical health premiums, fees and other revenues increased 13% over the prior period, due to strong growth in all product lines, particularly in dental, which benefited from both organic growth and a recent dental HMO acquisition. Operating earnings for non-medical health were $71 million, down from $98 million, due primarily to lower investment income.

Retirement & savings premiums, fees and other revenues grew 80% over the fourth quarter of 2007 to $689 million, primarily due to several pension closeout sales in the U.K. as well as higher structured settlement sales. Retirement & savings operating earnings were $84 million, down from $336 million, driven mainly by lower investment income.

Individual Business

Total Individual Business premiums and deposits grew 58% over the prior period as a result of strong growth in fixed annuity deposits. For the quarter, Individual Business had an operating loss of $106 million, compared with operating earnings of $380 million in the prior period. The decline in earnings was primarily due to the increased amortization of deferred acquisition costs and other capitalized items, along with lower fee revenue, resulting from the poor equity market performance in the 2008 quarter.

In the annuity business, total deposits grew 91% over the prior period to reach $7.5 billion as fixed annuity deposits grew from $261 million to $4.1 billion. In addition, variable annuity deposits remained strong at $3.4 billion, down from $3.7 billion in the fourth quarter of 2007. For both fixed and variable annuities, net flows were positive and lapse rates declined.

In the life business, total first year premiums and deposits were $228 million, compared with $307 million. Total life operating earnings were $88 million, down from $181 million due mostly to a decline in investment income.

International Business

In the fourth quarter of 2008, total International premiums, fees and other revenues were $1.0 billion, compared with $1.1 billion in the prior period. The year-over-year performance reflects the negative impact of foreign currency exchange rates in the fourth quarter of 2008. Total operating earnings were $94 million, compared with $193 million in the prior period. The fourth quarter of 2008 includes a one time liability adjustment in the Latin America region. In the fourth quarter of 2007, International’s earnings were positively impacted by a one time liability reduction and related tax benefits (due to pension regulation changes in the Latin America region) of $105 million ($0.14 per share).

In the Latin America region, premiums, fees and other revenues were $496 million, down from $550 million, largely due to lower annuity sales and the effect of foreign currency exchange rates. In the region, earnings were $115 million, down from $166 million, due to the previously mentioned one time benefit in the fourth quarter of 2007.

In the Asia Pacific region, premiums, fees and other revenues (excluding Japan) increased 9% on a constant currency basis. In Japan, annuity deposits were 125 billion yen ($1.3 billion), compared with 139 billion yen ($1.2 billion) in the prior period. Quarterly earnings in the region (excluding Japan) increased to $34 million.

In the European region, premiums, fees and other revenues grew 11% over the prior period to $99 million, reflecting growth in most of the countries in Europe where MetLife operates as well as India. The region had an operating loss of $23 million during the quarter, compared with $1 million in operating earnings in the prior period, reflecting the company’s continued investment in expansion of the business throughout the region.

Auto & Home

Auto & Home operating earnings were $112 million in the fourth quarter of 2008, up 9% from $103 million. In the fourth quarter of 2008, the segment benefited from favorable non-catastrophe claim development related to prior accident years of $27 million, net of income tax, compared with $25 million, net of income tax, in the prior year period. During the 2008 quarter, Auto & Home also experienced lower auto claim frequencies.

Investments

MetLife has a high quality, diversified $322.5 billion general account portfolio. For the quarter, net realized investment gains, net of income tax, were $1.3 billion, including $403 million, net, in credit-related losses and impairments. These credit-related losses are offset by derivative gains of $1.6 billion, net of income tax, which arose primarily from a decrease in interest rates in the fourth quarter. Derivative gains also include other items which primarily offset in the quarter driven by changes in currency, equity and credit spreads.

In the fourth quarter of 2008, variable income was negative and lower than plan by $540 million, or $317 million ($0.40 per share) after income tax and the impact of deferred acquisition costs and other offsets, driven mostly by negative returns from hedge funds and real estate funds.

Corporate & Other

Corporate & Other had an operating loss of $224 million, compared with a $42 million operating loss in the fourth quarter of 2007, primarily reflecting lower investment income.

Corporate Events

Earnings Conference Call

MetLife will hold its fourth quarter and full year 2008 earnings conference call and audio Webcast on Wednesday, February 4, 2009, from 8:00 to 9:00 a.m. (ET). The conference call will be available live via telephone and the Internet. To listen over the telephone, dial (612) 288-0340 (domestic and international callers). To listen to the conference call over the Internet, visit www.metlife.com (through a link on the Investor Relations page). Those who want to listen to the call on the telephone or via the Internet should dial in or go to the Web site at least fifteen minutes prior to the call to register, and/or download and install any necessary audio software.

The conference call will be available for replay via telephone and the Internet beginning at 10:00 a.m. (ET) on Wednesday, February 4, 2009, until Wednesday, February 11, 2009 at 11:59 p.m. (ET). To listen to a replay of the conference call over the telephone, dial (320) 365-3844 (domestic and international callers). The access code for the replay is 980627. To access the replay of the conference call over the Internet, visit the above-mentioned Web site.

Non-GAAP and Other Financial Disclosures

All references in this press release to net income, net income per share, operating earnings and operating earnings per share should be read as net income available to common shareholders, net income available to common shareholders per diluted common share, operating earnings available to common shareholders and operating earnings available to common shareholders per diluted common share, respectively.

Net income available to common shareholders and net income available to common shareholders per diluted common share are defined as Generally Accepted Accounting Principles (“GAAP”) net income and GAAP net income per diluted common share less preferred stock dividends, respectively.

The historical and forward-looking financial information presented in this press release includes performance measures which are based on methodologies other than GAAP. MetLife analyzes its performance using so-called non-GAAP measures, including operating earnings, operating earnings available to common shareholders, operating earnings available to common shareholders per diluted common share and operating return on common equity. MetLife believes these measures enhance the understanding and comparability of its performance by excluding net investment gains and losses, net of income tax, and adjustments related to net investment gains and losses, net of income tax, both of which can fluctuate significantly from period to period, and discontinued operations other than discontinued real estate, net of income tax, thereby highlighting the results from operations and the underlying profitability drivers of the business. Operating earnings available to common shareholders and operating earnings available to common shareholders per diluted common share should not be viewed as substitutes for GAAP net income available to common shareholders and GAAP net income available to common shareholders per diluted common share, respectively.

Operating earnings is defined as GAAP net income, excluding net investment gains and losses, net of income tax, adjustments related to net investment gains and losses, net of income tax, and discontinued operations other than discontinued real estate, net of income tax, less preferred stock dividends. Scheduled periodic settlement payments on derivative instruments not qualifying for hedge accounting treatment are included in operating earnings.

Operating earnings available to common shareholders is defined as operating earnings less preferred stock dividends, which are recorded in Corporate & Other.

Operating earnings available to common shareholders per diluted common share is calculated by dividing operating earnings available to common shareholders by the number of weighted average diluted common shares outstanding for the period indicated.

Operating return on common equity is calculated by dividing operating earnings available to common shareholders by average common equity for the period indicated, excluding accumulated other comprehensive income.

	For the three months ended December 31,
	2008						2007
	(In millions, except per common share data)
Net income available to common shareholders	$954			$1.20			$1,083			$1.44
Less: Net investment gains (losses), net of income tax1	1,345			1.69			(125	)		(0.16	)
Less: Adjustments related to net investment  gains (losses), net of income tax2	(577	)		(0.73	)		21			0.03
Less: Discontinued operations, net of income tax3	38			0.05			26			0.03
Operating earnings available to common shareholders	$148			$0.19			$1,161			$1.54
Book value per diluted common share				$27.33						$43.94
Less: Accumulated other comprehensive income (loss) per diluted common share				(17.96	)					1.43
Book value per diluted common share, excluding accumulated other comprehensive income				$45.29						$42.51

¹ Net investment gains (losses), net of income tax, includes gains (losses) on sales of real estate and real estate joint ventures related to discontinued operations of $5 million for the three months ended both December 31, 2008 and 2007, and excludes gains (losses) of $34 million and $44 million for the three months ended December 31, 2008 and 2007, respectively, from scheduled periodic settlement payments on derivative instruments not qualifying for hedge accounting treatment.

² Adjustments related to net investment gains (losses), net of income tax, include amortization of unearned revenue and deferred acquisition costs, adjustments to the policyholder dividend obligation and amounts allocable to certain participating contracts.

³ Discontinued operations, net of income tax, exclude gains (losses) from discontinued operations related to real estate and real estate joint ventures.

	For the year ended December 31,
	2008						2007
	(In millions, except per common share data)
Net income available to common shareholders	$3,084			$4.14			$4,180			$5.48
Less: Net investment gains (losses), net of income tax1	1,100			1.48			(564	)		(0.74	)
Less: Adjustments related to net investment  gains (losses), net of income tax2	(443	)		(0.59	)		(24	)		(0.03	)
Less: Discontinued operations, net of income tax3	(309	)		(0.42	)		198			0.25
Operating earnings available to common shareholders	$2,736			$3.67			$4,570			$6.00

¹ Net investment gains (losses), net of income tax, includes gains (losses) on sales of real estate and real estate joint ventures related to discontinued operations of $8 million and $5 million for the full year ended December 31, 2008 and 2007, respectively, and excludes gains (losses) of $3 million and $164 million for the full year ended December 31, 2008 and 2007, respectively, from scheduled periodic settlement payments on derivative instruments not qualifying for hedge accounting treatment.

² Adjustments related to net investment gains (losses), net of income tax, include amortization of unearned revenue and deferred acquisition costs, adjustments to the policyholder dividend obligation and amounts allocable to certain participating contracts.

³ Discontinued operations, net of income tax, exclude gains (losses) from discontinued operations related to real estate and real estate joint ventures.

Forward Looking Statements

This press release 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. Forward-looking statements give expectations or forecasts of future events. These statements can be identified by the fact that they do not relate strictly to historical or current facts. They use words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe” and other words and terms of similar meaning in connection with a discussion of future operating or financial performance. In particular, these include statements relating to future actions, prospective services or products, future performance or results of current and anticipated services or products, sales efforts, expenses, the outcome of contingencies such as legal proceedings, trends in operations and financial results.

Any or all forward-looking statements may turn out to be wrong. They can be affected by inaccurate assumptions or by known or unknown risks and uncertainties. Many such factors will be important in determining MetLife’s actual future results. These statements are based on current expectations and the current economic environment. They involve a number of risks and uncertainties that are difficult to predict. These statements are not guarantees of future performance. Actual results could differ materially from those expressed or implied in the forward-looking statements. Risks, uncertainties, and other factors that might cause such differences include the risks, uncertainties and other factors identified in MetLife, Inc.’s filings with the U.S. Securities and Exchange Commission (“SEC”). These factors include: (i) difficult and adverse conditions in the global and domestic capital and credit markets; (ii) continued volatility and further deterioration of the capital and credit markets; (iii) uncertainty about the effectiveness of the U.S. government’s plan to stabilize the financial system by injecting capital into financial institutions, purchasing large amounts of illiquid, mortgage-backed and other securities from financial institutions, or otherwise; (iv) the impairment of other financial institutions; (v) potential liquidity and other risks resulting from MetLife’s participation in a securities lending program and other transactions; (vi) exposure to financial and capital market risk; (vii) changes in general economic conditions, including the performance of financial markets and interest rates, which may affect the company’s ability to raise capital and generate fee income and market-related revenue; (viii) defaults on the company’s mortgage and consumer loans; (ix) investment losses and defaults, and changes to investment valuations; (x) market value impairments to illiquid assets; (xi) unanticipated changes in industry trends; (xii) heightened competition, including with respect to pricing, entry of new competitors, the development of new products by new and existing competitors and for personnel; (xiii) 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; (xiv) discrepancies between actual experience and assumptions used in establishing liabilities related to other contingencies or obligations; (xv) ineffectiveness of risk management policies and procedures; (xvi) catastrophe losses; (xvii) changes in assumptions related to deferred policy acquisition costs, value of business acquired or goodwill; (xviii) downgrades in MetLife’s and its affiliates’ claims paying ability, financial strength or credit ratings; (xix) economic, political, currency and other risks relating to the company’s international operations; (xx) regulatory, legislative or tax changes that may affect the cost of, or demand for, the company’s products or services; (xxi) changes in accounting standards, practices and/or policies; (xxii) adverse results or other consequences from litigation, arbitration or regulatory investigations; (xxiii) deterioration in the experience of the “closed block” established in connection with the reorganization of Metropolitan Life Insurance Company; (xxiv) the effects of business disruption or economic contraction due to terrorism or other hostilities; (xxv) MetLife’s ability to identify and consummate on successful terms any future acquisitions, and to successfully integrate acquired businesses with minimal disruption; (xxvi) MetLife, Inc.’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; and (xxvii) other risks and uncertainties described from time to time in MetLife, Inc.’s filings with the SEC.

MetLife, Inc. does not undertake any obligation to publicly correct or update any forward-looking statement if MetLife, Inc. later becomes aware that such statement is not likely to be achieved. Please consult any further disclosures MetLife, Inc. makes on related subjects in reports to the SEC.

About MetLife

MetLife, Inc. is a leading provider of insurance, employee benefits and financial services with operations throughout the United States and the Latin America, Europe and Asia Pacific regions. Through its subsidiaries and affiliates, MetLife, Inc. reaches more than 70 million customers around the world and MetLife is the largest life insurer in the United States (based on life insurance in-force). The MetLife companies offer life insurance, annuities, auto and home insurance, retail banking and other financial services to individuals, as well as group insurance and retirement & savings products and services to corporations and other institutions. For more information, visit www.metlife.com.

MetLife, Inc.
Consolidated Statements of Income
For the Three Months and Years Ended December 31, 2008 and 2007 (Unaudited)
(In millions)
				Three Months Ended								Years Ended
				December 31,								December 31,
				2008				2007				2008				2007
Revenues
Premiums				$	6,498			$	5,932			$	25,914			$	22,970
Universal life and investment-type product policy fees					1,236				1,391				5,381				5,238
Net investment income					3,633				4,720				16,296				18,063
Other revenues					445				359				1,586				1,465
Net investment gains (losses)					2,150				(94	)			1,812				(578	)
		Total revenues			13,962				12,308				50,989				47,158
Expenses
Policyholder benefits and claims					7,011				6,066				27,437				23,783
Interest credited to policyholder account balances					1,230				1,391				4,787				5,461
Policyholder dividends					428				436				1,751				1,723
Other expenses					3,855				2,885				11,924				10,429
		Total expenses			12,524				10,778				45,899				41,396
Income from continuing operations before provision for income tax					1,438				1,530				5,090				5,762
Provision for income tax					497				447				1,580				1,660
Income from continuing operations					941				1,083				3,510				4,102
Income (loss) from discontinued operations, net of income tax					44				35				(301	)			215
Net income					985				1,118				3,209				4,317
Preferred stock dividends					31				35				125				137
Net income available to common shareholders				$	954			$	1,083			$	3,084			$	4,180
Operating Earnings Available to Common Shareholders Reconciliation
Net income available to common shareholders				$	954			$	1,083			$	3,084			$	4,180
	Net investment gains (losses)				2,100				(163	)			1,771				(844	)
	Minority interest - net investment gains (losses)				-				-				-				-
	Net investment gains (losses) tax benefit (provision)				(755	)			38				(671	)			280
Net investment gains (losses), net of income tax (1) (2)					1,345				(125	)			1,100				(564	)
	Adjustments related to universal life and investment-type product policy fees				16				2				18				(12	)
	Adjustments related to policyholder benefits and dividends				(123	)			9				(181	)			(156	)
	Adjustments related to other expenses				(778	)			19				(521	)			125
	Adjustments related to tax benefit (provision)				308				(9	)			241				19
Adjustments related to net investment gains (losses), net of income tax (3)					(577	)			21				(443	)			(24	)
Discontinued operations, net of income tax (4)					38				26				(309	)			198
Operating earnings available to common shareholders				$	148			$	1,161			$	2,736			$	4,570
(1)	Net investment gains (losses), net of income tax, excludes scheduled periodic settlement payments on derivative instruments not qualifying for hedge accounting treatment of $44 million and $34 million for the three months ended December 31, 2007 and December 31, 2008, respectively, and $164 million and $3 million for the year ended December 31, 2007 and December 31, 2008, respectively.
(2)	Net investment gains (losses), net of income tax, from real estate and real estate joint ventures includes discontinued operations of $5 million for the three months ended both December 31, 2007 and 2008, and $8 million and $5 million for the year ended December 31, 2007 and 2008, respectively.
(3)	Adjustments related to net investment gains (losses), net of income tax, includes amortization of unearned revenue and deferred policy acquisition costs, adjustments to the policyholder dividend obligation and amounts allocable to certain participating contracts.
(4)	Discontinued operations, net of income tax, excludes gains (losses) from discontinued operations related to real estate and real estate joint ventures.

MetLife, Inc.
Financial Highlights
Unaudited
(In millions, except per common share data or unless otherwise noted)
				At or For the Three Months						At or For the Years
				Ended December 31,						Ended December 31,
				2008			2007			2008			2007
Other Financial Data:
Net income available to common shareholders				$	954		$	1,083		$	3,084		$	4,180
Operating earnings available to common shareholders				$	148		$	1,161		$	2,736		$	4,570
Total assets (billions)				$	501.7		$	559.1		$	501.7		$	559.1
Individual Business Sales Data:
Total life first year premiums and deposits				$	228		$	307		$	973		$	1,063
Variable and Universal life first year premiums and deposits (including COLI/BOLI)				$	174		$	252		$	767		$	848
Total annuity deposits				$	7,546		$	3,958		$	19,111		$	16,524
Earnings Per Common Share Calculation:
Weighted average common shares outstanding - diluted					793.6			754.1			744.8			762.3
Operating earnings available to common shareholders per common share - diluted				$	0.19		$	1.54		$	3.67		$	6.00
Net income available to common shareholders per common share - diluted				$	1.20		$	1.44		$	4.14		$	5.48

MetLife, Inc.
Consolidated Balance Sheet Data
December 31, 2008 and 2007 (Unaudited)
(In millions)
				December 31,				December 31,
				2008				2007
Balance Sheet Data:
General account assets				$	380,839			$	399,007
Separate account assets					120,839				160,142
Total assets				$	501,678			$	559,149
Policyholder liabilities				$	289,145			$	265,976
Short-term debt					2,659				667
Long-term debt					9,667				9,100
Collateral financing arrangements					5,192				4,882
Junior subordinated debt securities					3,758				4,075
Other liabilities					46,684				79,128
Separate account liabilities					120,839				160,142
Total liabilities					477,944				523,970
Preferred stock, at par value					1				1
Common stock, at par value					8				8
Additional paid-in capital					15,811				17,098
Retained earnings					22,403				19,884
Treasury stock					(236	)			(2,890	)
Accumulated other comprehensive income (loss)					(14,253	)			1,078
Total stockholders’ equity					23,734				35,179
Total liabilities and stockholders’ equity				$	501,678			$	559,149

MetLife, Inc.
Reconciliations of Net Income Available to Common Shareholders to Operating Earnings Available to Common Shareholders
Unaudited
(In millions)
				Three Months Ended								Years Ended
				December 31,								December 31,
				2008				2007				2008				2007
Total Institutional Operations
		Net income available to common shareholders		$	655			$	459			$	1,862			$	1,449
		Net investment gains (losses), net of income tax			369				(86	)			107				(517	)
		Adjustments related to net investment gains (losses), net of income tax			14				18				81				(1	)
		Operating earnings available to common shareholders		$	272			$	527			$	1,674			$	1,967
Institutional Operations:
	Group Life
		Net income available to common shareholders		$	33			$	34			$	353			$	355
		Net investment gains (losses), net of income tax			(85	)			(61	)			(167	)			(111	)
		Adjustments related to net investment gains (losses), net of income tax			1				2				3				3
		Operating earnings available to common shareholders		$	117			$	93			$	517			$	463
	Retirement & Savings
		Net income (loss) available to common shareholders		$	(618	)		$	211			$	(162	)		$	613
		Net investment gains (losses), net of income tax			(712	)			(147	)			(1,029	)			(537	)
		Adjustments related to net investment gains (losses), net of income tax			10				22				48				10
		Operating earnings available to common shareholders		$	84			$	336			$	819			$	1,140
	Non-Medical Health & Other
		Net income available to common shareholders		$	1,240			$	214			$	1,671			$	481
		Net investment gains (losses), net of income tax			1,166				122				1,303				131
		Adjustments related to net investment gains (losses), net of income tax			3				(6	)			30				(14	)
		Operating earnings available to common shareholders		$	71			$	98			$	338			$	364
Total Individual Operations
		Net income (loss) available to common shareholders		$	(256	)		$	348			$	619			$	1,357
		Net investment gains (losses), net of income tax			428				(13	)			424				(102	)
		Adjustments related to net investment gains (losses), net of income tax			(558	)			(19	)			(532	)			(61	)
		Discontinued operations, net of income tax			(20	)			-				(16	)			14
		Operating earnings available to common shareholders		$	(106	)		$	380			$	743			$	1,506
Individual Operations:
	Traditional Life
		Net income (loss) available to common shareholders		$	(106	)		$	65			$	36			$	175
		Net investment gains (losses), net of income tax			(16	)			(33	)			(116	)			(66	)
		Adjustments related to net investment gains (losses), net of income tax			(125	)			(4	)			(161	)			(56	)
		Discontinued operations, net of income tax			(5	)			(1	)			(5	)			1
		Operating earnings available to common shareholders		$	40			$	103			$	318			$	296
	Variable & Universal Life
		Net income available to common shareholders		$	72			$	79			$	179			$	234
		Net investment gains (losses), net of income tax			45				4				4				(61	)
		Adjustments related to net investment gains (losses), net of income tax			(8	)			(4	)			3				8
		Discontinued operations, net of income tax			(13	)			1				(9	)			12
		Operating earnings available to common shareholders		$	48			$	78			$	181			$	275
	Annuities
		Net income (loss) available to common shareholders		$	(222	)		$	199			$	378			$	934
		Net investment gains (losses), net of income tax			409				25				562				47
		Adjustments related to net investment gains (losses), net of income tax			(425	)			(11	)			(374	)			(13	)
		Discontinued operations, net of income tax			(2	)			-				(2	)			1
		Operating earnings available to common shareholders		$	(204	)		$	185			$	192			$	899
	Other
		Net income available to common shareholders		$	-			$	5			$	26			$	14
		Net investment gains (losses), net of income tax			(10	)			(9	)			(26	)			(22	)
		Operating earnings available to common shareholders		$	10			$	14			$	52			$	36
International
		Net income (loss) available to common shareholders		$	(33	)		$	205			$	580			$	635
		Net investment gains (losses), net of income tax			(94	)			(5	)			50				38
		Adjustments related to net investment gains (losses), net of income tax			(33	)			23				8				38
		Discontinued operations, net of income tax			-				(6	)			-				(9	)
		Operating earnings available to common shareholders		$	94			$	193			$	522			$	568
Total Auto & Home
		Net income available to common shareholders		$	84			$	105			$	275			$	436
		Net investment gains (losses), net of income tax			(28	)			2				(88	)			10
		Operating earnings available to common shareholders		$	112			$	103			$	363			$	426
Auto & Home:
	Auto
		Net income available to common shareholders		$	29			$	66			$	241			$	287
		Net investment gains (losses), net of income tax			(20	)			1				(61	)			7
		Operating earnings available to common shareholders		$	49			$	65			$	302			$	280
	Homeowners & Other
		Net income available to common shareholders		$	55			$	39			$	34			$	149
		Net investment gains (losses), net of income tax			(8	)			1				(27	)			3
		Operating earnings available to common shareholders		$	63			$	38			$	61			$	146
Corporate, Other & Eliminations
		Net income available to common shareholders		$	504			$	(34	)		$	(252	)		$	303
		Net investment gains (losses), net of income tax			670				(23	)			607				7
		Adjustments related to net investment gains (losses), net of income tax			-				(1	)			-				-
		Discontinued operations, net of income tax			58				32				(293	)			193
		Operating earnings available to common shareholders		$	(224	)		$	(42	)		$	(566	)		$	103

 

MetLife, Inc.
For Media:
John Calagna, 212-578-6252
or
For Investors:
Conor Murphy, 212-578-7788

NEW YORK–(BUSINESS WIRE)–Plan sponsors for the largest U.S. defined benefit (DB) pension plans – which account for $2.3 trillion in assets and cover nearly 42 million plan participants – report that they are focused on only a few risk factors associated with their pension plan. Many also report inconsistent success in addressing the risks they view as most important. These are two of the key findings from the MetLife U.S. Pension Risk Behavior Index^SM (“PRBI”), released today. The first of its kind study polled 168 corporate plan sponsors among the 1,000 largest US defined benefit plans on 18 different risk factors identified by a panel of industry experts and researchers.MetLife designed and fielded this study to encourage public dialogue around pension risk issues. The primary objective of the research is to help plan sponsors develop a new framework for understanding risks, and to explore solutions for mitigating risk exposure.

On an aggregate basis, the plan sponsors surveyed by MetLife ranked “asset allocation,” “meeting return goals,” and “underfunding of liabilities” as most important – factors that are relatively easy to model and measure. The risks ranked least important by plan sponsors are slower to change, more difficult to model/measure and may be less well understood. Among them: “longevity risk,” “mortality risk” and “early retirement risk.”

What’s surprising about the ranking is not the order in which the risk factors appear; this is relatively consistent with the asset centric, “total rate of return” pension plan management model that has prevailed over the past 15 years. What’s unexpected, however, is the range of importance among risk items. The top four risk factors received the vast majority of attention, while the bottom four items received nearly negligible readings. Asset allocation (the most important attribute) was ranked “most important” 54% of the time, while 13 of the remaining 18 factors were picked as “most important” fewer than 30% of the time.

“We believe that the results of this study will help increase awareness among pension plan sponsors about the need to take a more comprehensive view of the risks associated with today’s pensions plans,” said Bill Mullaney, President of MetLife’s Institutional Business division.

Looking separately at the responses of individual plan sponsors, the gap between “most” and “least” important risk factors is even greater. Only 26% of the individual respondents rated a majority of risk items (i.e., more than half) as important. Every respondent did not consider at least five of the 18 risk factors (assigning at least five an importance rating of 0.00%).

“This research suggests that many plan sponsors tend to view and manage risks individually rather than holistically,” said Cynthia Mallett, Vice President of MetLife’s Institutional Business. “Over time, the approach of focusing on some risks – and ignoring others – could have serious repercussions, including unnecessary volatility in earnings and/or cash flow with the potential to adversely affect the ability of the plans to provide retirement security to plan participants. During the next 12 to 24 months, we expect DB plans to develop a broader view of the risks to which their plans may be exposed as demographic forces, regulatory pressures and market volatility combine to make pension plan management more challenging and more transparent.”

Gap Between Importance and Success Scores

In addition to measuring the relative importance of the 18 risk factors, the PRBI tracks how well plan sponsors report that they are managing each area of risk – i.e., the study tracks aptitude as well as attitudes. Looking at these two measures together, the PRBI shows a significant gap between “importance” and “success.” Nearly two-thirds of the study respondents report some degree of inconsistency between importance and success, and about one of every six reports significantly greater discrepancies. Of the 18 risk factors studied, eight were given an above-average importance score but below-average success score or vice versa. Only two of the risk factors had the same ranking for importance and success.

“The research indicates that, for many plan sponsors, risk management is out of alignment. As a result, many plan sponsors may be missing the opportunity to manage the array of risk factors applicable to their plan as optimally as possible,” added Mallett. “Against this backdrop, the potential for incomplete decision-making could be significant. Today’s corporate plan sponsors should be encouraged more than ever to improve the processes by which they identify the full range of short- and long-term risks associated with their plans, and the industry has an opportunity to focus on the importance of developing tools and protocols for managing these risks.”

MetLife U.S. Pension Risk Behavior Index^SM Score: A Baseline Measure with Room for Improvement

By comparing the consistency of plan sponsors’ rankings for importance and success, MetLife developed a PRBI score. The score takes into account the relative importance of each risk and the relative size of each retirement plan. The PRBI score is 76 out 100. This score establishes a baseline for risk management practices against which future changes may be measured.

“The PRBI score leaves significant room for improvement,” remarked Dev Clifford from Greenwich Associates and Richard Dunne from Bdellium, Inc., two researchers who collaborated with MetLife on the PRBI study. “It would be desirable to see every plan sponsor agreeing that they are addressing the risk factors that they believe are most important. While it is unrealistic to expect an index value of 100, a score in excess of 87 is both achievable and desirable.”

Dr. Susan Mangiero of Pension Governance, Incorporated, who also collaborated with MetLife on the groundbreaking research, commented: “This research should broaden awareness among plan sponsors of risk factors outside their present comfort zone, thereby enabling them to have a more balanced understanding of their plan’s dynamics.”

About the Study

The MetLife U.S. Pension Risk Behavior Index^SM was conducted by three research partners – Greenwich Associates, Bdellium Inc. and Pension Governance, Inc. – during the period of June through August 2008. The PRBI consists of a quantitative telephone survey of 168 large plan sponsors (73 of which reported defined benefit assets of more than $1 billion), supplemented by a series of in-depth individual interviews and rigorous statistical analysis. The quantitative portion of the study addressed 18 different investment, liability and business risks faced by DB plan sponsors. These risks were identified by a panel of industry experts and researchers, including: Bdellium Inc., Greenwich Associates and Pension Governance, Incorporated. Greenwich Associates completed the quantitative research for the PRBI, while the detailed analysis and qualitative interviews were conducted by Bdellium Inc. and Pension Governance, Inc. respectively. Respondents for all phases of the research consisted of senior financial professionals whose primary focus included finance, risk management and investment policy. A complete report of the findings for the PRBI (and detailed description of the research methodology) is available at www.metlife.com/pensionrisk.

About MetLife

MetLife is a subsidiary of MetLife, Inc. (NYSE: MET - News), a leading provider of insurance, employee benefits and financial services with operations throughout the United States and the Latin America, Europe and Asia Pacific regions. Through its subsidiaries and affiliates, MetLife, Inc. reaches more than 70 million customers around the world and MetLife is the largest life insurer in the United States (based on life insurance in-force). The MetLife companies offer life insurance, annuities, auto and home insurance, retail banking and other financial services to individuals, as well as group insurance and retirement & savings products and services to corporations and other institutions. For more information, visit www.metlife.com.

In 1921, MetLife was the first company to issue a group annuity contract. Today, the company manages group annuity assets of over $65 billion,¹ leads the market² with over $30 billion in transferred defined benefit pension liabilities¹ and provides benefit payments to over one million annuitants every month.³

1) As of December 31, 2007.

2) Based on LIMRA International Stable Value and Funding Agreement Products report, fourth quarter 2007 results—statistics for single premium buyouts and terminal funding.

3) Available through group annuity contracts issued by Metropolitan Life Insurance Company. Like most annuity contracts, MetLife’s contracts contain limitations, exclusions, and terms for keeping them in force. Please contact your MetLife representative for details.

L0109014558[exp0210][All States]

 

MetLife
Toni L. Griffin / Joseph Madden
(727) 862-7006 / (212) 578-3021
tgriffin2@metlife.com
jmadden@metlife.com
or
Katherine Kilpatrick
(212) 584-5475
katherine@blisspr.com

WESTPORT, Conn.–(BUSINESS WIRE)–The adage that money can’t buy happiness is supported analytically by new research demonstrating the importance of having purpose in one’s life and that the most content people focus on the non-financial essentials in their lives, even during difficult economic times. Living the “good life” for middle-aged and older Americans is equated with spending time with family and friends, a previously unquantified finding, according to the MetLife Mature Market Institute’s latest study, Discovering What Matters: Balancing Money, Medicine and Meaning, produced in conjunction with leading author, life coach, and executive educator, Richard Leider. They describe the good life in terms of having health, a financial safety net and the time to do what is important to them.The MetLife report, based on interviews with more than 1,000 Americans between the ages of 45 and 74, explores what brings contentment to those in the second half of life. Respondents, regardless of financial status, maintain that their goals are primarily meaning-based. Further, older respondents focus less on wealth accumulation and more on health and well-being, compared to younger respondents.

Discovering What Matters is accompanied by a workbook and DVD with self-assessment tools, advice and resources. With information on how people can “repack their bags” for life’s journey, these tools are designed to help people let go of “the way things used to be” and to empower them to create new goals for what lies ahead. The materials will also help them adapt to life’s inevitable transitions, both positive and negative. With worksheets and a series of questions relating to lifestyle, environment, health status, finances, relationships and community, people can reset their priorities and learn to achieve a life of purpose and fulfillment. The contents of the workbook were developed by Richard Leider, and are based on his book, Repacking Your Bags: Lighten Your Load for the Rest of Your Life.

“Living the ‘good life’ is not as closely equated with material wealth and physical comfort as we have traditionally believed,” said Sandra Timmermann, Ed.D., director of the MetLife Mature Market Institute. “We found through this research that people who make valuable use of their lives through meaningful work, time to socialize, personal interests and travel, and care for their physical and spiritual health, are more likely to have contentment and purpose in their lives. Having enough money to be comfortable, a different standard for everyone, remains important as well, but it’s not the only, or even most important, focus. This information may inspire Americans to do some life planning, beyond finances, as they start the New Year.”

Richard Leider adds, “The ‘good life’ is an integration of various components in a person’s life for which each component enables the next. Living the ‘good life’ means living in the place you ‘belong,’ with the people you love, doing work that benefits others. Given that people today are living longer, planning for the purpose that they will want to achieve later in life is essential.”

The study data breaks down a number of myths:

1. Myth: The Good Life = material wealth. When asked to select from a list of 13 activities that contribute to living a purposeful life, respondents were most likely to select spending time with friends/family (86%) and taking care of their physical self (63%). These purpose-driven activities become increasingly important as people age.

2. Myth: Happiness = the absence of misfortune. Over the years, most people experience one or more negative “trigger events” such as serious illness, the death of a friend/family member and/or a major financial loss. In fact, 59% of the respondents experienced at least one such negative trigger event over the past 12 months. Positive events, such as the birth of a grandchild or getting a new job, can serve as trigger events. Most trigger events are not under a person’s control, but Americans who live the good life are able to regain happiness through the meaning in their lives.

3. Myth: The Good Life = more (more friends, more money, more health, more activity). The good life comes from balance and alignment of financial security, health and meaningful activity. This usually means “lightening one’s load” by doing away with burdens that lead to unnecessary and/or unproductive activity.

According to the findings, there are five basic types of people defined by the value they place on the core components in their lives - money, medicine, meaning and place: 1) The Balanced Givers, 2) The Meaning-Minded, 3) The Balanced Individualists, 4) The Financially Focused, and 5) The Hyper-Individualists. The highest percentage of those who say they are living the good life are the Meaning-Minded; they are willing to give up money for meaning. The Financially Focused may have a strong vision for the future and engagement in meaningful “work” that provides purpose and fulfillment, but are least likely to say they are at the “good life” level.

The study used a gap analysis technique to characterize individuals in the study. As shown in the following table, more of those who have attained the “good life” are content and optimistic.

		Gap Analysis
		Those Living the Good Life (%0-8) N=542		Those Not Living the Good Life (%0-7) N=459		Gap
I am completely content with my life		71%		25%		46%
I am highly optimistic about my future		74%		34%		40%
I am in control of my life		82%		43%		39%
I am a very happy person		84%		47%		37%
I look forward to each new day		87%		50%		37%
I am well-liked by other people		79%		55%		24%
I feel loved by those around me		91%		65%		26%
I have strong values that are my foundation in life		87%		68%		19%

Methodology

A consumer panel of 1,001 individuals between the ages of 45 and 74 participated in the online survey conducted by Chadwick Martin Bailey, a global custom market research and consulting firm. Members of the panel were invited to participate in the survey via email between August and October 2008. Respondents had a minimum household income of $50K or more a year ($25K or more a year if they were retired), and investable assets of $50K or more. These are approximately the average incomes for the U.S. population in those categories. They were categorized into three age groups: age 45-54 (n=333), age 55-64 (n=335), and age 65-74 (n=333). Other demographics were collected as well.

The MetLife Mature Market Institute®

Established in 1997, the Mature Market Institute (MMI) is MetLife’s center on aging and longevity. MMI’s groundbreaking research, gerontology expertise, national partnerships, and educational materials work to expand the knowledge and choices for those in, approaching, or caring for those in the mature market.

MMI supports MetLife’s long-standing commitment to identifying emerging issues and innovative solutions for the challenges of life. MetLife, a subsidiary of MetLife, Inc. (NYSE: MET - News), is celebrating 140 years and is a leading provider of insurance and financial services to individual and institutional customers.

For more information about the MetLife Mature Market Institute, please visit: www.maturemarketinstitute.com.

The full study, Discovering What Matters: Balancing Money, Medicine and Meaning is now available at www.maturemarketinstitute.com under “What’s New.” To order a copy of the printed version of the study, write to: MetLife Mature Market Institute, 57 Greens Farms Road, Westport, CT 06880. A workbook and DVD packet (single copies are free) are also available.

 

 

 

DJC Communications
Debra Caruso, 212-907-0051
debra@djccommunications.com
or
MetLife
Shalana Morris, 212-578-1115
snmorris@metlife.com
or
MetLife
Joseph Madden, 212-578-3021
jmadden@metlife.com

NEW YORK–(BUSINESS WIRE)–MetLife announced today that four quality resource guides have been added to its American Dental Association (ADA) and Academy of General Dentistry (AGD) recognized dental continuing education program. The new self-study courses focus on: 1) Adolescent Oral Health: Perspectives for Dental Practitioners, 2) Cosmetic Dentistry, 3) Digital Radiography (second edition), and 4) Restoration of the Single Tooth Dental Implant. The courses are available online at www.metdental.com and can be completed for continuing education credits.“Staying current with new ideas is important and having access to these ideas is critical for those in the dental profession, and MetLife is pleased to provide easy-to-access educational resources that can help keep the dental community current on clinical and professional developments,” said Alan Vogel, DMD, national dental director for MetLife, which is the largest administrator of dental benefit plans among all single commercial carriers, providing dental plan administration for over 21 million people.

The MetLife Dental Advisory Council provides expert guidance for the company’s Quality Initiatives Program, in which educational offerings are developed via needs assessment. The four new MetLife Dental Quality Resource Guides include:

Adolescent Oral Health: Perspectives for Dental Practitioners. Written by Deborah Studen-Pavlovich, DMD, chair and professor of the department of pediatric dentistry at the University of Pittsburgh and Dennis N. Ranalli, DDS, MDS, senior associate dean and professor of pediatric dentistry at the University of Pittsburgh School of Dental Medicine, this guide discusses the physical growth, hormonal changes, changing self-awareness and the expectations of peers and society that all play a role in the expression of oral diseases in adolescents and influence their treatment decisions. The shift in caries risks and patterns, the onset of periodontal diseases, questions regarding third molar removal, tooth whitening and the management of traumatic injuries are among the topics discussed in this guide. In addition, oral health problems associated with the use and misuse of common medications are included. While taking the practitioner on a tour of the oral health problems occurring during adolescence, this guide also highlights multiple opportunities to establish effective strategies for a lifetime of good oral health at a time when the patients focus is on self.

Cosmetic Dentistry. Author Richard D. K. Wilson, DDS, former clinical professor, Virginia Commonwealth University, School of Dentistry and private practitioner, defines cosmetic dentistry as “the oral health procedures that improve patient appearance.” As such, there is much more involved than creating an aesthetically acceptable restoration when treating disease or the consequences of traumatic injury. The process of obtaining and documenting the patient’s expectations and arriving at a mutual understanding of what can and what cannot be accomplished is the thread that runs through this guide, including the point when the dentist must decide whether or not they agree to treat or refer. The guide also covers the pertinent aspects of tooth preparation, material selection and the periodontal considerations necessary for successful cosmetic dentistry.

Digital Radiography. Now in its second edition and written by Dr. André Mol, DDS, MS, PhD, assistant professor in the department of diagnostic sciences and general dentistry at the University of North Carolina at Chapel Hill, this guide provides insights into the design of dental offices, including digital radiography, converting your office to digital, or simply assessing your current digital system with a view to a possible upgrade. The guide provides objective information to help address questions such as: What kind of sensor best meets the needs of your practice? Should you have intraoral capability only or intraoral plus panoramic? What about detector sensitivity? What are The Digital Imaging and Communications in Medicine (DICOM) standards? How best to display images and what about storage and making hard copies?

Restoration of the Single Tooth Dental Implant. Dr. Thomas McGarry, DDS, associate professor at the University of Oklahoma School of Dentistry, adjunct assistant professor at the University of Illinois School of Dentistry and clinical director for the McGarry Implant Institute, is the author of this new guide. As dental implants continue to grow in popularity as the treatment of choice for missing teeth, general dentists must recognize the factors that make their restoration unique. This guide looks at the many factors influencing the ultimate success of a crown supported by a single dental implant and discusses all phases of restoring a single dental implant from case selection through follow-up maintenance care. Clinical photos illustrate the author’s guidelines and a table outlines selection decisions that must be made when designing the final restoration.

As an added benefit for participating in the MetLife Preferred Dentist Program (PDP), participating dentists and hygienists receive continuing education credits for MetLife educational offerings at no charge. Non-PDP dentists and hygienists also have access to the offerings free of charge, but will be assessed a nominal fee for educational credits.

For additional information about MetLife’s dental continuing education program, visit www.metdental.com.

About MetLife

MetLife is a subsidiary of MetLife, Inc. (NYSE: MET - News), a leading provider of insurance, employee benefits and financial services with operations throughout the United States and the Latin America, Europe and Asia Pacific regions. Through its subsidiaries and affiliates, MetLife, Inc. reaches more than 70 million customers around the world and MetLife is the largest life insurer in the United States (based on life insurance in-force). The MetLife companies offer life insurance, annuities, auto and home insurance, retail banking and other financial services to individuals, as well as group insurance and retirement & savings products and services to corporations and other institutions. For more information, visit www.metlife.com.

 

MetLife
Shalana Morris, 212-578-1115
snmorris@metlife.com