METLIFE INC [MET] Filings

10-Q 1 met-20210930.htm 10-Q met-20210930

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

______________________________________

Form 10-Q

(Mark One)


☑			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2021


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE TRANSITION PERIOD FROM TO

Commission file number: 001-15787

_____________________________________

MetLife, Inc.

(Exact name of registrant as specified in its charter)

Delaware

13-4075851

(State or other jurisdiction of
incorporation or organization)

(I.R.S. Employer
Identification No.)

200 Park Avenue,

New York,

10166-0188

(Address of principal executive offices)

(Zip Code)

(212) 578-9500

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01	MET	New York Stock Exchange
Floating Rate Non-Cumulative Preferred Stock, Series A, par value $0.01	MET PRA	New York Stock Exchange
Depositary Shares, each representing a 1/1,000th interest in a share of 5.625% Non-Cumulative Preferred Stock, Series E	MET PRE	New York Stock Exchange
Depositary Shares, each representing a 1/1,000th interest in a share of 4.75% Non-Cumulative Preferred Stock, Series F	MET PRF	New York Stock Exchange

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☑	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

At October 29, 2021, 841,160,193 shares of the registrant’s common stock were outstanding.

Table of Contents


		Page
Part I — Financial Information
Item 1.	Financial Statements (Unaudited) (at September 30, 2021 and December 31, 2020 and for the Three Months and Nine Months Ended September 30, 2021 and 2020)
	Interim Condensed Consolidated Balance Sheets	4
	Interim Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)	5
	Interim Condensed Consolidated Statements of Equity	6
	Interim Condensed Consolidated Statements of Cash Flows	7
	Notes to the Interim Condensed Consolidated Financial Statements:
	Note 1 — Business, Basis of Presentation and Summary of Significant Accounting Policies	8
	Note 2 — Segment Information	11
	Note 3 — Dispositions	18
	Note 4 — Insurance	20
	Note 5 — Closed Block	22
	Note 6 — Investments	25
	Note 7 — Derivatives	43
	Note 8 — Fair Value	55
	Note 9 — Long-Term Debt	73
	Note 10 — Equity	74
	Note 11 — Other Revenues and Other Expenses	79
	Note 12 — Employee Benefit Plans	80
	Note 13 — Income Tax	80
	Note 14 — Earnings Per Common Share	81
	Note 15 — Contingencies, Commitments and Guarantees	81
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	86
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	159
Item 4.	Controls and Procedures	160

Part II — Other Information
Item 1.	Legal Proceedings	161
Item 1A.	Risk Factors	161
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	161
Item 6.	Exhibits	162

Signatures		163

Table of Contents

As used in this Form 10‑Q, “MetLife,” the “Company,” “we,” “our” and “us” refer to MetLife, Inc., a Delaware corporation incorporated in 1999, its subsidiaries and affiliates.

Note Regarding Forward-Looking Statements

This Quarterly Report on Form 10‑Q, including 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. Forward-looking statements give expectations or forecasts of future events and do not relate strictly to historical or current facts. They use words and terms such as “anticipate,” “assume,” “believe,” “continue,” “could,” “estimate,” “expect,” “if,” “intend,” “likely,” “may,” “plan,” “potential,” “project,” “should,” “will,” “would” and other words and terms of similar meaning or that are otherwise tied to future periods or future performance, in each case in all derivative forms. They include statements relating to future actions, prospective services or products, future performance or results of current and anticipated services or products, future sales efforts, future expenses, the outcome of contingencies such as legal proceedings, and future trends in operations and financial results.

Many factors determine Company results, and they involve unpredictable risks and uncertainties. Our forward-looking statements depend on our assumptions, our expectations, and our understanding of the economic environment, but they may be inaccurate and may change. We do not guarantee any future performance. Our results could differ materially from those we express or imply in forward-looking statements. The risks, uncertainties and other factors identified in MetLife, Inc.’s filings with the U.S. Securities and Exchange Commission, and others, may cause such differences. These factors include:

(1) economic condition difficulties, including risks relating to public health, interest rates, credit spreads, equity, real estate, obligors and counterparties, currency exchange rates, derivatives, and terrorism and security;

(2) global capital and credit market adversity;

(3) credit facility inaccessibility;

(4) financial strength or credit ratings downgrades;

(5) unavailability, unaffordability, or inadequate reinsurance;

(6) statutory life insurance reserve financing costs or limited market capacity;

(7) legal, regulatory, and supervisory and enforcement policy changes;

(8) changes in tax rates, tax laws or interpretations;

(9) litigation and regulatory investigations;

(10) London Interbank Offered Rate termination and transition to alternative reference rates;

(11) unsuccessful efforts to meet all environmental, social, and governance standards or to enhance our sustainability;

(12) MetLife, Inc.’s inability to pay dividends and repurchase common stock;

(13) MetLife, Inc.’s subsidiaries’ inability to pay it dividends;

(14) investment defaults, downgrades, or volatility;

(15) investment sales or lending difficulties;

(16) collateral or derivative-related payments;

(17) investment valuations, allowances, or impairments changes;

(18) claims or other results that differ from our estimates, assumptions, or models;

(19) global political, legal, or operational risks;

(20) business competition;

(21) technological change;

(22) catastrophes;

(23) climate changes or responses to it;

(24) deficiencies in our closed block;

(25) goodwill or other asset impairment, or deferred income tax asset allowance;

(26) acceleration of amortization of deferred policy acquisition costs, deferred sales inducements, value of business acquired, or value of customer relationships acquired;

(27) product guarantee volatility, costs, and counterparty risks;

(28) risk management failures;

(29) insufficient protection from operational risks;

(30) confidential information protection or other cybersecurity or disaster recovery failures;

(31) accounting standards changes;

(32) excessive risk-taking;

(33) marketing and distribution difficulties;

(34) pension and other postretirement benefit assumption changes;

(35) inability to protect our intellectual property or avoid infringement claims;

(36) acquisition, integration, growth, disposition, or reorganization difficulties;

(37) Brighthouse Financial, Inc. separation risks;

(38) MetLife, Inc.’s Board of Directors influence over the outcome of stockholder votes through the voting provisions of the MetLife Policyholder Trust; and

(39) legal- and corporate governance-related effects on business combinations.

The Company will not publicly correct or update any forward-looking statements if we believe we are not likely to achieve them or for any other reasons. Please consult any further disclosures MetLife, Inc. makes on related subjects in subsequent reports to the U.S. Securities and Exchange Commission.

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Corporate Information

We announce financial and other information about MetLife to our investors on our website (www.metlife.com) through the MetLife Investor Relations web page (https://investor.metlife.com), as well as in U.S. Securities and Exchange Commission filings, news releases, public conference calls and webcasts. MetLife encourages investors to visit the Investor Relations web page from time to time, as information is updated and new information is posted. The information found on our website is not incorporated by reference into this Quarterly Report on Form 10-Q or in any other report or document we file with the U.S. Securities and Exchange Commission, and any references to our website are intended to be inactive textual references only.

Note Regarding Reliance on Statements in Our Contracts

See “Exhibits — Note Regarding Reliance on Statements in Our Contracts” for information regarding agreements included as exhibits to this Quarterly Report on Form 10-Q.

Table of Contents

Part I — Financial Information

Item 1. Financial Statements

MetLife, Inc.

Interim Condensed Consolidated Balance Sheets

September 30, 2021 and December 31, 2020 (Unaudited)

(In millions, except share and per share data)


	September 30, 2021		December 31, 2020
Assets
Investments:
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $310,004 and $310,811, respectively; allowance for credit loss of $68 and $81, respectively)	$	341,038	$	354,809
Equity securities, at estimated fair value	941		1,079
Contractholder-directed equity securities and fair value option securities, at estimated fair value	12,055		13,319
Mortgage loans (net of allowance for credit loss of $563 and $590, respectively; includes $134 and $165, respectively, under the fair value option)	80,964		83,919
Policy loans	9,186		9,493
Real estate and real estate joint ventures (includes $225 and $169, respectively, under the fair value option and $0 and $128, respectively, of real estate held-for-sale)	12,182		11,933
Other limited partnership interests	13,480		9,470
Short-term investments, principally at estimated fair value	7,150		3,904
Other invested assets (includes $2,019 and $2,156, respectively, of leveraged and direct financing leases and $356 and $332, respectively, relating to variable interest entities)	18,683		20,593
Total investments	495,679		508,519
Cash and cash equivalents, principally at estimated fair value (includes $13 and $12, respectively, relating to variable interest entities)	18,956		19,795
Accrued investment income	3,354		3,388
Premiums, reinsurance and other receivables (includes $5 and $4, respectively, relating to variable interest entities)	17,816		17,870
Deferred policy acquisition costs and value of business acquired	16,191		16,389

Goodwill	9,638		10,112

Assets held-for-sale	7,462		7,418
Other assets (includes $1 and $1, respectively, relating to variable interest entities)	11,614		11,685
Separate account assets	180,954		199,970
Total assets	$	761,664	$	795,146
Liabilities and Equity
Liabilities
Future policy benefits	$	197,086	$	206,656
Policyholder account balances	203,973		205,176
Other policy-related balances	17,735		17,101
Policyholder dividends payable	525		587
Policyholder dividend obligation	1,952		2,969
Payables for collateral under securities loaned and other transactions	31,382		29,475
Short-term debt	346		393
Long-term debt (includes $0 and $5, respectively, relating to variable interest entities)	14,010		14,603
Collateral financing arrangement	806		845
Junior subordinated debt securities	3,155		3,153

Current income tax payable	103		129
Deferred income tax liability	9,850		11,008
Liabilities held-for-sale	6,757		4,650
Other liabilities (includes $1 and $1, respectively, relating to variable interest entities)	23,697		23,614
Separate account liabilities	180,954		199,970
Total liabilities	692,331		720,329
Contingencies, Commitments and Guarantees (Note 15)
Equity
MetLife, Inc.’s stockholders’ equity:
Preferred stock, par value $0.01 per share; $3,905 and $4,405 aggregate liquidation preference	—		—
Common stock, par value $0.01 per share; 3,000,000,000 shares authorized; 1,186,092,767 and 1,181,614,288 shares issued, respectively; 844,531,818 and 892,910,600 shares outstanding, respectively	12		12
Additional paid-in capital	33,457		33,812
Retained earnings	40,426		36,491
Treasury stock, at cost; 341,560,949 and 288,703,688 shares, respectively	(16,956)		(13,829)
Accumulated other comprehensive income (loss) ("AOCI")	12,111		18,072
Total MetLife, Inc.’s stockholders’ equity	69,050		74,558
Noncontrolling interests	283		259
Total equity	69,333		74,817
Total liabilities and equity	$	761,664	$	795,146

See accompanying notes to the interim condensed consolidated financial statements.

Table of Contents

MetLife, Inc.

Interim Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)

For the Three Months and Nine Months Ended September 30, 2021 and 2020 (Unaudited)

(In millions, except per share data)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Revenues
Premiums	$	9,455	$	9,935	$	28,914	$	28,137
Universal life and investment-type product policy fees	1,521		1,497		4,334		4,227
Net investment income	5,568		4,729		16,162		11,877
Other revenues	663		455		1,958		1,350
Net investment gains (losses)	(84)		(20)		1,655		(77)
Net derivative gains (losses)	(218)		(581)		(2,032)		2,910
Total revenues	16,905		16,015		50,991		48,424
Expenses
Policyholder benefits and claims	10,103		10,000		30,031		27,689
Interest credited to policyholder account balances	1,287		1,416		4,153		3,458
Policyholder dividends	189		206		672		788
Other expenses	3,284		3,470		9,315		9,726
Total expenses	14,863		15,092		44,171		41,661
Income (loss) before provision for income tax	2,042		923		6,820		6,763
Provision for income tax expense (benefit)	453		214		1,456		1,503
Net income (loss)	1,589		709		5,364		5,260
Less: Net income (loss) attributable to noncontrolling interests	5		3		15		11
Net income (loss) attributable to MetLife, Inc.	1,584		706		5,349		5,249
Less: Preferred stock dividends	63		59		166		168
Preferred stock redemption premium	—		14		6		14
Net income (loss) available to MetLife, Inc.’s common shareholders	$	1,521	$	633	$	5,177	$	5,067
Comprehensive income (loss)	$	1,392	$	(

METLIFE INC [MET] Filings
METLIFE INC [MET-PA] Filings
METLIFE INC [MET-PE] Filings
METLIFE INC [MET-PF] Filings
10-Q	[2021-11-09]
10-Q	[2021-08-06]
10-Q	[2021-05-06]
10-K	[2021-02-19]
10-Q	[2020-11-09]
10-Q	[2020-08-07]
10-Q	[2020-05-08]
10-K	[2020-02-21]
10-Q	[2019-11-05]
10-Q	[2019-08-06]
10-Q	[2019-05-08]
10-K	[2019-02-22]
10-Q	[2018-11-08]
10-Q	[2018-08-07]
10-Q	[2018-05-08]
10-K	[2018-03-01]
10-Q	[2017-11-06]
10-Q	[2017-08-04]
10-Q	[2017-05-05]
10-K	[2017-03-01]
10-Q	[2016-11-03]
10-Q	[2016-08-05]
10-Q	[2016-05-06]
10-K	[2016-02-25]
10-Q	[2015-11-05]
10-Q	[2015-08-06]
10-Q	[2015-05-08]
10-K	[2015-02-27]
10-Q	[2014-11-06]
10-Q	[2014-08-08]
10-Q	[2014-05-08]
10-K	[2014-02-27]
10-Q	[2013-11-07]
10-Q	[2013-08-07]
10-Q	[2013-05-07]
10-K	[2013-02-27]
10-Q	[2012-11-07]
10-Q	[2012-08-07]
10-Q	[2012-05-08]
10-K	[2012-02-28]

METLIFE INC [MET] Filings

METLIFE INC [MET-PA] Filings

METLIFE INC [MET-PE] Filings

METLIFE INC [MET-PF] Filings