METLIFE INC [MET] Filings

10-Q 1 met-20220331.htm 10-Q met-20220331

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 MARCH 31, 2022


☐			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 April 29, 2022, 813,205,926 shares of the registrant’s common stock were outstanding.

Table of Contents


		Page
Part I — Financial Information
Item 1.	Financial Statements (Unaudited) (at March 31, 2022 and December 31, 2021 and for the Three Months Ended March 31, 2022 and 2021)
	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	12
	Note 3 — Dispositions	17
	Note 4 — Insurance	19
	Note 5 — Closed Block	21
	Note 6 — Investments	23
	Note 7 — Derivatives	39
	Note 8 — Fair Value	49
	Note 9 — Equity	64
	Note 1 0 — Other Revenues and Other Expenses	68
	Note 1 1 — Employee Benefit Plans	69
	Note 1 2 — Income Tax	69
	Note 1 3 — Earnings Per Common Share	70
	Note 1 4 — Contingencies, Commitments and Guarantees	70
	Note 15 — Subsequent Events	75
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	75
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	136
Item 4.	Controls and Procedures	137

Part II — Other Information
Item 1.	Legal Proceedings	138
Item 1A.	Risk Factors	138
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	138
Item 6.	Exhibits	139

Signatures		140

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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, including those relating to the COVID-19 pandemic, 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 discontinuation 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 changes;

(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, value of distribution agreements 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) failure to protect confidentiality and integrity of data 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.

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 subsequent reports to the U.S. Securities and Exchange Commission.

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Corporate Information

We encourage investors and others to frequently visit our website (www.metlife.com), including our Investor Relations web pages (https://investor.metlife.com). We announce significant financial and other information to our investors and the public on the Investor Relations web pages, as well as in U.S. Securities and Exchange Commission filings, in news releases, public conference calls and webcasts, fact sheets and other documents and media. The information found on our website, including MetLife’s Sustainability Report, is not incorporated by reference into this Quarterly Report on Form 10-Q or in any other report or document we submit to 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

March 31, 2022 and December 31, 2021 (Unaudited)

(In millions, except share and per share data)


	March 31, 2022		December 31, 2021
Assets
Investments:
Fixed maturity securities available-for-sale, at estimated fair value (amortized cost: $313,872 and $310,884, respectively; allowance for credit loss of $355 and $91, respectively)	$	320,079	$	340,274
Equity securities, at estimated fair value	988		1,269
Contractholder-directed equity securities and fair value option securities, at estimated fair value	11,418		12,142
Mortgage loans (net of allowance for credit loss of $615 and $634, respectively; includes $119 and $127, respectively, under the fair value option)	79,968		79,353
Policy loans	9,036		9,111
Real estate and real estate joint ventures (includes $284 and $240, respectively, under the fair value option and $175 and $175, respectively, of real estate held-for-sale)	12,379		12,216
Other limited partnership interests	14,570		14,625
Short-term investments, principally at estimated fair value	3,146		7,176
Other invested assets (includes $2,013 and $1,930, respectively, of leveraged and direct financing leases; $356 and $351, respectively, relating to variable interest entities and allowance for credit loss of $37 and $40, respectively)	18,696		18,655
Total investments	470,280		494,821
Cash and cash equivalents, principally at estimated fair value	23,488		20,047
Accrued investment income	3,251		3,185
Premiums, reinsurance and other receivables	17,926		17,149
Deferred policy acquisition costs and value of business acquired	18,409		16,061
Current income tax recoverable	39		184
Goodwill	9,510		9,535

Assets held-for-sale	4,582		7,238
Other assets	11,743		11,615
Separate account assets	165,056		179,873
Total assets	$	724,284	$	759,708
Liabilities and Equity
Liabilities
Future policy benefits	$	195,789	$	199,721
Policyholder account balances	206,762		203,473
Other policy-related balances	19,553		17,751
Policyholder dividends payable	450		478
Policyholder dividend obligation	—		1,682
Payables for collateral under securities loaned and other transactions	30,481		31,920
Short-term debt	323		341
Long-term debt	13,848		13,933
Collateral financing arrangement	754		766
Junior subordinated debt securities	3,156		3,156


Deferred income tax liability	5,690		9,693
Liabilities held-for-sale	4,297		6,634
Other liabilities	23,888		22,538
Separate account liabilities	165,056		179,873
Total liabilities	670,047		691,959
Contingencies, Commitments and Guarantees (Note 14)
Equity
MetLife, Inc.’s stockholders’ equity:
Preferred stock, par value $0.01 per share; $3,905 and $3,905 aggregate liquidation preference, respectively	—		—
Common stock, par value $0.01 per share; 3,000,000,000 shares authorized; 1,189,427,155 and 1,186,540,473 shares issued, respectively; 814,805,526 and 825,540,267 shares outstanding, respectively	12		12
Additional paid-in capital	33,531		33,511
Retained earnings	41,406		41,197
Treasury stock, at cost; 374,621,629 and 361,000,206 shares, respectively	(19,072)		(18,157)
Accumulated other comprehensive income (loss)	(1,912)		10,919
Total MetLife, Inc.’s stockholders’ equity	53,965		67,482
Noncontrolling interests	272		267
Total equity	54,237		67,749
Total liabilities and equity	$	724,284	$	759,708

See accompanying notes to the interim condensed consolidated financial statements.

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MetLife, Inc.

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

For the Three Months Ended March 31, 2022 and 2021 (Unaudited)

(In millions, except per share data)


	Three Months Ended March 31,
		2022		2021
Revenues
Premiums		$	10,771	$	10,327
Universal life and investment-type product policy fees		1,418		1,391
Net investment income		4,284		5,314
Other revenues		660		631
Net investment gains (losses)		(518)		134
Net derivative gains (losses)		(859)		(2,235)
Total revenues		15,756		15,562
Expenses
Policyholder benefits and claims		11,193		10,523
Interest credited to policyholder account balances		630		1,351
Policyholder dividends		198		247
Other expenses		3,020		3,150
Total expenses		15,041		15,271
Income (loss) before provision for income tax		715		291
Provision for income tax expense (benefit)		41		(72)
Net income (loss)		674		363
Less: Net income (loss) attributable to noncontrolling interests		5		5
Net income (loss) attributable to MetLife, Inc.		669		358
Less: Preferred stock dividends		63		68
Net income (loss) available to MetLife, Inc.’s common shareholders		$	606	$	290
Comprehensive income (loss)		$	(12,159)	$	(7,312)
Less: Comprehensive income (loss) attributable to noncontrolling interests, net of income tax		3		5
Comprehensive income (loss) attributable to MetLife, Inc.		$	(12,162)	$	(7,317)





Net income (loss) available to MetLife, Inc.’s common shareholders per common share:
Basic	$	0.74	$	0.33
Diluted	$	0.73	$	0.33

See accompanying notes to the interim condensed consolidated financial statements.

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MetLife, Inc.

Interim Condensed Consolidated Statements of Equity

For the Three Months Ended March 31, 2022 and 2021 (Unaudited)

(In millions)


	Preferred Stock		Common Stock		Additional Paid-in Capital		Retained Earnings		Treasury Stock at Cost		Accumulated Other Comprehensive Income (Loss)		Total MetLife, Inc.’s Stockholders’ Equity		Noncontrolling Interests		Total Equity
Balance at December 31, 2021	$	—	$	12	$	33,511	$	41,197	$	(18,157)	$	10,919	$	67,482	$	267	$	67,749
Treasury stock acquired in connection with share repurchases									(915)				(915)				(915)
Stock-based compensation					20								20				20
Dividends on preferred stock							(63)						(63)				(63)
Dividends on common stock (declared per share of $0.480)							(397)						(397)				(397)
Change in equity of noncontrolling interests													—		2		2
Net income (loss)							669						669		5		674
Other comprehensive income (loss), net of income tax											(12,831)		(12,831)		(2)		(12,833)
Balance at March 31, 2022	$	—	$	12	$	33,531	$	41,406	$	(19,072)	$	(1,912)	$	53,965	$	272	$	54,237


	Preferred Stock		Common Stock		Additional Paid-in Capital		Retained Earnings		Treasury Stock at Cost		Accumulated Other Comprehensive Income (Loss)		Total MetLife, Inc.’s Stockholders’ Equity		Noncontrolling Interests		Total Equity
Balance at December 31, 2020	$	—	$	12	$	33,812	$	36,491	$	(13,829)	$	18,072	$	74,558	$	259	$	74,817
Treasury stock acquired in connection with share repurchases									(999)				(999)				(999)
Stock-based compensation					98								98				98
Dividends on preferred stock							(68)						(68)				(68)
Dividends on common stock (declared per share of $0.460)							(408)						(408)				(408)
Change in equity of noncontrolling interests													—		9		9
Net income (loss)							358						358		5		363
Other comprehensive income (loss), net of income tax											(7,675)		(7,675)		—		(7,675)
Balance at March 31, 2021	$	—	$	12	$	33,910	$	36,373	$	(14,828)	$	10,397	$	65,864	$	273	$	66,137

See accompanying notes to the interim condensed consolidated financial statements.

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MetLife, Inc.

Interim Condensed Consolidated Statements of Cash Flows

For the Three Months Ended March 31, 2022 and 2021 (Unaudited)

(In millions)


	Three Months Ended March 31,
	2022		2021
Net cash provided by (used in) operating activities	$	1,954	$	1,496
Cash flows from investing activities
Sales, maturities and repayments of:
Fixed maturity securities available-for-sale	19,737		24,976
Equity securities	384		156
Mortgage loans	3,404		3,663
Real estate and real estate joint ventures	83		106
Other limited partnership interests	901		174
Purchases and originations of:
Fixed maturity securities available-for-sale	(22,616)		(22,143)
Equity securities	(133)		(12)
Mortgage loans	(3,956)		(2,877)
Real estate and real estate joint ventures	(286)		(236)
Other limited partnership interests	(761)		(682)
Cash received in connection with freestanding derivatives	1,092		1,358
Cash paid in connection with freestanding derivatives	(1,914)		(4,788)



Purchases of investments in operating joint ventures	(240)		—
Net change in policy loans	35		85
Net change in short-term investments	3,986		(828)
Net change in other invested assets	(223)		(23)
Other, net	81		17
Net cash provided by (used in) investing activities	(426)		(1,054)
Cash flows from financing activities
Policyholder account balances:
Deposits	28,335		25,722
Withdrawals	(23,653)		(23,527)
Payables for collateral under securities loaned and other transactions:
Net change in payables for collateral under securities loaned and other transactions	(1,331)		(1,426)

Cash paid for other transactions with tenors greater than three months	—		(100)

Long-term debt repaid	(10)		(15)
Collateral financing arrangement repaid	(12)		(12)

Financing element on certain derivative instruments and other derivative related transactions, net	105		326
Treasury stock acquired in connection with share repurchases	(940)		(999)



Dividends on preferred stock	(63)		(68)
Dividends on common stock	(397)		(

METLIFE INC [MET] Filings
METLIFE INC [MET-PE] Filings
METLIFE INC [MET-PA] Filings
METLIFE INC [MET-PF] Filings
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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]
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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-PE] Filings

METLIFE INC [MET-PA] Filings

METLIFE INC [MET-PF] Filings