MetLife Announces Third Quarter 2021 Results
November 9, 2021 by Metlife
NEW YORK–(BUSINESS WIRE)–MetLife, Inc. (NYSE: MET) today announced its third quarter 2021 results.
Third Quarter Results Summary
- Net income of $1.5 billion, or $1.77 per share, compared to net income of $633 million, or $0.69 per share, in the third quarter of 2020.
- Adjusted earnings of $2.1 billion, or $2.39 per share, compared to adjusted earnings of $1.6 billion, or $1.73 per share, in the third quarter of 2020.
- Book value of $77.24 per share, up 1 percent from $76.20 per share at September 30, 2020.
- Book value, excluding accumulated other comprehensive income (AOCI) other than foreign currency translation adjustments (FCTA), of $57.29 per share, up 8 percent from $53.10 per share at September 30, 2020.
- Return on equity (ROE) of 9.3 percent.
- Adjusted ROE, excluding AOCI other than FCTA, of 17.0 percent.
- Holding company cash and liquid assets of $5.1 billion at September 30, 2021, which is above the target cash buffer of $3.0 – $4.0 billion.
Commenting on the company’s results, MetLife President and CEO Michel Khalaf said: “MetLife delivered another very strong quarter. Outstanding variable investment income more than offset elevated COVID claims, underlying PFO growth was strong, and expense discipline held firm. Having the right strategy, a superior asset mix, and consistent execution continues to generate exceptional earnings.”
Third Quarter 2021 Summary
|
($ in millions, except per share data) |
|
Three months ended September 30, |
|||||||||
|
|
|
2021 |
|
2020 |
|
Change |
|||||
|
Premiums, fees and other revenues |
|
$ |
11,639 |
|
|
$ |
11,887 |
|
|
(2 |
)% |
|
Net investment income |
|
|
5,568 |
|
|
|
4,729 |
|
|
18 |
% |
|
Net investment gains (losses) |
|
|
(84 |
) |
|
|
(20 |
) |
|
|
|
|
Net derivative gains (losses) |
|
|
(218 |
) |
|
|
(581 |
) |
|
|
|
|
Total revenues |
|
$ |
16,905 |
|
|
$ |
16,015 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Adjusted premiums, fees and other revenues |
|
$ |
11,419 |
|
|
$ |
11,820 |
|
|
(3 |
)% |
|
Adjusted premiums, fees and other revenues, excluding pension risk transfers (PRT) |
|
$ |
11,443 |
|
|
$ |
11,333 |
|
|
1 |
% |
|
|
|
|
|
|
|
|
|||||
|
Net income (loss) |
|
$ |
1,521 |
|
|
$ |
633 |
|
|
140 |
% |
|
Net income (loss) per share |
|
$ |
1.77 |
|
|
$ |
0.69 |
|
|
157 |
% |
|
|
|
|
|
|
|
|
|||||
|
Adjusted earnings |
|
$ |
2,062 |
|
|
$ |
1,578 |
|
|
31 |
% |
|
Adjusted earnings per share |
|
$ |
2.39 |
|
|
$ |
1.73 |
|
|
38 |
% |
|
Adjusted earnings, excluding total notable items |
|
$ |
2,202 |
|
|
$ |
1,781 |
|
|
24 |
% |
|
Adjusted earnings, excluding total notable items per share |
|
$ |
2.56 |
|
|
$ |
1.95 |
|
|
31 |
% |
|
|
|
|
|
|
|
|
|||||
|
Book value per share |
|
$ |
77.24 |
|
|
$ |
76.20 |
|
|
1 |
% |
|
Book value per share, excluding AOCI other than FCTA |
|
$ |
57.29 |
|
|
$ |
53.10 |
|
|
8 |
% |
|
|
|
|
|
|
|
|
|||||
|
Expense ratio |
|
|
19.2 |
% |
|
|
18.4 |
% |
|
|
|
|
Direct expense ratio, excluding total notable items related to direct expenses and PRT |
|
|
11.1 |
% |
|
|
11.4 |
% |
|
|
|
|
Adjusted expense ratio, excluding total notable items related to adjusted other expenses and PRT |
|
|
18.7 |
% |
|
|
18.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
ROE |
|
|
9.3 |
% |
|
|
3.6 |
% |
|
|
|
|
Adjusted ROE, excluding AOCI other than FCTA |
|
|
17.0 |
% |
|
|
13.2 |
% |
|
|
|
|
Adjusted ROE, excluding total notable items (excludes AOCI other than FCTA) |
|
|
18.2 |
% |
|
|
14.9 |
% |
|
|
|
Information regarding the non-GAAP and other financial measures included in this news release and reconciliation of the non-GAAP financial measures to GAAP measures are in “Non-GAAP and Other Financial Disclosures” below and in the tables that accompany this news release.
Supplemental slides for the third quarter of 2021, titled “3Q21 Supplemental Slides,” are available on the MetLife Investor Relations website at https://investor.metlife.com and in the Form 8-K furnished by MetLife to the U.S. Securities and Exchange Commission in connection with this earnings news release.
Total Company Discussion
MetLife reported third quarter 2021 premiums, fees and other revenues of $11.6 billion, down 2 percent from the third quarter of 2020. Adjusted premiums, fees and other revenues were $11.4 billion, down 3 percent on both a reported and constant currency basis from the prior-year period.
Net investment income was $5.6 billion, up 18 percent from the third quarter of 2020. Adjusted net investment income was $5.7 billion, up 21 percent from the prior-year period. These increases were largely driven by higher variable investment income primarily due to strong private equity returns.
Net derivative losses amounted to $218 million, or $172 million after tax during the quarter, driven by foreign currency exchange rate changes.
Net income was $1.5 billion, compared to net income of $633 million in the third quarter of 2020. On a per share basis, net income was $1.77, compared to net income of $0.69 in the prior-year period.
MetLife reported adjusted earnings of $2.1 billion, up 31 percent, and up 30 percent on a constant currency basis, from the third quarter of 2020. On a per share basis, adjusted earnings were $2.39, up 38 percent from the prior-year period.
Annual Actuarial Assumption Review
In the third quarter of 2021, MetLife performed the company’s annual global actuarial assumption review. The actuarial assumption review during the quarter reduced net income by $216 million, of which $140 million impacted adjusted earnings.
Adjusted Earnings by Segment Summary*
|
|
Three months ended September 30, 2021 |
|||||||
|
Segment |
Change from prior-year period |
Change from prior-year period (on a constant currency basis) |
||||||
|
U.S. |
(1 |
)% |
|
|||||
|
Asia |
22 |
% |
22 |
% |
||||
|
Latin America |
(26 |
)% |
(29 |
)% |
||||
|
Europe, the Middle East and Africa (EMEA) |
81 |
% |
81 |
% |
||||
|
MetLife Holdings |
140 |
% |
|
|||||
*The percentages in this table are on a reported and constant currency basis, and do not exclude notable items. For the three months ended September 30, 2021, U.S. results exclude Property & Casualty as MetLife completed the sale of the business. U.S. results for the three months ended September 30, 2020, include Property & Casualty.
Business Discussions
All comparisons of the results for the third quarter of 2021 in the business discussions that follow are with the third quarter of 2020, unless otherwise noted. The third quarter of 2021 notable items table follows the Business Discussions section of this release.
U.S.*
|
($ in millions) |
Three months ended September 30, 2021 |
Three months ended September 30, 2020 |
Change |
|
Adjusted earnings |
$895 |
$900 |
(1)% |
|
Adjusted premiums, fees and other revenues |
$6,408 |
$6,833 |
(6)% |
|
Adjusted premiums, fees and other revenues, excluding PRT |
$6,432 |
$6,346 |
1% |
|
Notable item(s) |
$0 |
$0 |
|
* For the three months ended September 30, 2021, U.S. results exclude Property & Casualty as MetLife completed the sale of the business. U.S. results for the three months ended September 30, 2020, include Property & Casualty.
- Adjusted earnings were $895 million, down 1 percent, with unfavorable group life underwriting largely offset by higher variable investment income. In the prior-year period, adjusted earnings included $18 million from Property & Casualty.
- Adjusted return on allocated equity was 38.4 percent, and adjusted return on allocated tangible equity was 44.8 percent.
- Adjusted premiums, fees and other revenues were $6.4 billion, down 6 percent. In the prior-year period, adjusted premiums, fees and other revenues included $908 million from Property & Casualty.
Group Benefits
|
($ in millions) |
Three months ended September 30, 2021 |
Three months ended September 30, 2020 |
Change |
|
Adjusted earnings |
$111 |
$392 |
(72)% |
|
Adjusted premiums, fees and other revenues |
$5,517 |
$4,901 |
13% |
|
Notable item(s) |
$0 |
$0 |
|
- Adjusted earnings were $111 million, down 72 percent, largely driven by unfavorable group life underwriting as a result of COVID-19 and dental utilization returning to normal levels. Volume growth and the addition of Versant Health provided partial offsets.
- Adjusted premiums, fees and other revenues were $5.5 billion, up 13 percent, driven by solid growth across most products, including voluntary, and the addition of Versant Health.
- Sales were up 40 percent year-to-date due to higher jumbo case activity.
Retirement and Income Solutions
|
($ in millions) |
Three months ended September 30, 2021 |
Three months ended September 30, 2020 |
Change |
|
Adjusted earnings |
$784 |
$490 |
60% |
|
Adjusted premiums, fees and other revenues |
