Metropolitan Life Insurance Company

Transcription

1 Retirement & Income Solutions Financial Quality Metropolitan Life Insurance Company A wholly owned subsidiary of MetLife, Inc. Data as of June 30, 2018 Overview of MetLife, Inc. MetLife, Inc., through its subsidiaries and affiliates ( MetLife ), is one of the world s leading financial services companies, providing insurance, annuities, employee benefits and asset management. Founded in 1868, MetLife has operations in more than 40 countries and holds leading market positions in the United States, Japan, Latin America, Asia, Europe and the Middle East. Our Retirement and Income Solutions business provides funding and financing solutions that help institutional customers mitigate and manage liabilities primarily associated with their qualified, nonqualified and welfare employee benefit programs using a spectrum of life and annuity-based insurance and investment products. MetLife, Inc. had $706.3 billion in total assets and $652.5 billion in total liabilities as of June 30, For 150 years, MetLife has been one of the country s most trusted financial institutions. Overview of Metropolitan Life Insurance Company 2 Metropolitan Life Insurance Company is a wholly owned subsidiary of MetLife, Inc. and is recognized in the market for its financial strength. 3 In accordance with statutory accounting principles, 4 Metropolitan Life Insurance Company reported $395.0 billion in total assets and $384.1 billion in total liabilities as of June 30, Total assets (statutory) 5 Year-end Metropolitan Life Insurance Company Total assets (GAAP) Year-end MetLife, Inc.

2 Total capital and surplus 6 As of June 30, 2018, Metropolitan Life Insurance Company s total capital was $13.4 billion. Total capital is comprised of capital and surplus and investment reserves. Capital and surplus totaled $10.9 billion and investment reserves totaled $2.5 billion as of June 30, Metropolitan Life Insurance Company s Capital Adequacy Ratio (total capital general account total cash and invested assets) was 5.49% as of June, 30, Profitability As of June 30, 2018, Metropolitan Life Insurance Company s net gain from operations (after taxes and dividends) was $2.5 billion. 6,7 We utilize a vigorous risk management discipline across our investment portfolio and view risk management as fundamental to our culture. This discipline is woven throughout our investment process with dedicated systems, protocols and models. We carefully assess the risks and benefits presented by each investment, including relevant environmental, social, economic and governance risks and benefits Year-end Metropolitan Life Insurance Company Capital & surplus Investment reserves Rating agency assessments Metropolitan Life Insurance Company s financial strength and claims-paying ability is currently rated Superior, High quality or Very strong by the major rating agencies. 3 Agency A.M. Best Fitch Moody s Standard & Poor s Financial strength rating A+ (Superior) 8 AA (Very strong) 9 Aa3 (High quality) 10 AA (Very strong) 11 Ratings as of September 19, Outlook is stable unless otherwise indicated.

3 Investment portfolio of general account Metropolitan Life Insurance Company s general account portfolio management approach has emphasized the following five factors: Diversity Liquidity Asset/liability matching Quality Total return Portfolio allocation (total cash and invested assets) 6 As of June 30, 2018, bonds composed nearly 61% of Metropolitan Life Insurance Company s general account portfolio, with the rest diversified among several investment sectors. Metropolitan Life Insurance Company general account total cash and invested assets: $243.2billion 6 Bonds 60.90% Mortgage loans 22.39% Misc. assets 11.65% Cash & short-term investments 3.38% Corporate equity 0.95% Real estate 0.73% Bond quality distribution as of June 30, Quality (Moody s Investors Service) Aaa/Aa/A (highest quality/high quality/upper medium quality) Baa (medium grade) Ba (speculative with substantial credit risk) B (speculative with high credit risk) Caa (poor standing with very high credit risk/highly speculative) Ca/C (lowest rated) NAIC rating % Amount (sm) $97, $37, $8, $3, $ $59 Total 100 $148,087 As of June 30, 2018, 91.50% of Metropolitan Life Insurance Company s bond portfolio was investment grade. Real estate and mortgage loan portfolios MetLife is one of the largest originators of commercial real estate and agricultural mortgage loans in the U.S. insurance industry. We maintain a local market presence, primarily in the U.S., and diversify our mortgage portfolios by geography and property type. We exercise strong discipline in analyzing underlying collateral and focus on lower leveraged mortgage investments that offer higher relative value and greater protection from default risk. As of June 30, 2018, none of MetLife s commercial real estate mortgages had both a loan-to-value ratio above 80% and a debt service coverage ratio below 1.0x. Conclusion Metropolitan Life Insurance Company s understanding of the risks associated with its core businesses has enabled the company to have a long tradition of financial strength It is this financial strength that has enabled Metropolitan Life Insurance Company to capitalize on strategic opportunities and strengthen its position within the marketplace As supported by a combination of key financial and investment indicators, Metropolitan Life Insurance Company is a company of high financial quality in solid financial health

4 Safe Harbor Statement This document may contain or refer to forward-looking statements. Forward-looking statements give expectations or forecasts of the future using terms such as anticipate, estimate, expect, project, intend, plan, believe, will, and other terms tied to future periods. Results could differ materially from those expressed or implied in the forward-looking statements. Forward-looking statements are based on assumptions and expectations. They involve risks and uncertainties, including the Risk Factors MetLife, Inc. describes in its U.S. Securities and Exchange Commission filings. The company has no obligation to correct or update any forward-looking statement. Parts of this presentation may include additional information on forward-looking statements. The document may also contain measures that are not calculated based on accounting principles generally accepted in the United States of America, or GAAP. Parts of this document, the Investor Relations portion of MetLife's website ( or other parts of that website include information on non-gaap financial information. 1. Total assets and liabilities (GAAP) include general account and separate account assets and liabilities and are reported under accounting principles generally accepted in the United States of America (GAAP). GAAP is a set of accounting rules not specific to a particular type of entity (public or private) or to a particular business sector. These rules are the standard framework of guidelines for financial accounting in the United States of America. Effective March 6, 2017, there is a reduction in the aggregate value of assets, liabilities and the business mix reported at the MetLife enterprise and operating company levels compared to prior quarters due to the separation of Brighthouse Financial, which included MetLife Insurance Company USA. 2. This document is intended to provide a high level overview of Metropolitan Life Insurance Company. It does not contain all material information with respect to the business, operations or financial condition of Metropolitan Life Insurance Company. Such information is included in Metropolitan Life Insurance Company s periodic reports filed with the U.S. Securities and Exchange Commission, including Metropolitan Life Insurance Company s Annual Report on Form 10-K, as amended or supplemented in its subsequently filed Quarterly Reports on Form 10-Q. 3. For current ratings information and a more complete analysis of the financial strength of Met Tower Life, please go to Statutory Accounting Principles (SAP) is a set of accounting rules for insurance companies developed by the National Association of Insurance Commissioners (NAIC). These rules are used to prepare the statutory financial statements of insurance companies; with minor state-by-state variations, they are the basis for state regulation of insurance company solvency throughout the United States of America. 5. Total assets and liabilities (statutory) include general account and separate account assets and liabilities and are reported under SAP. 6. Reported under SAP. Effective March 6, 2017, there is a reduction in the aggregate value of assets, liabilities and the business mix reported at the MetLife enterprise and operating company levels compared to prior quarters due to the separation of Brighthouse Financial, which included MetLife Insurance Company USA. 7. Net gain from operations (after taxes and dividends) excludes realized capital gains (losses). For more detailed information, please see the statutory filings available in the Investor Relations, Financial Information section of AM Best s Financial Strength Rating is independent opinion of an insurer's financial strength and ability to meet its ongoing insurance policy and contract obligations. The rating is based on a comprehensive quantitative and qualitative evaluation of a company s balance sheet strength, operating performance and business profile. The A+ rating is the second-highest rating on a 16-step scale and indicates that the company has superior ability to meet its ongoing obligations to policyholders. Rating explanations can be found at Fitch s Insurer Financial Strength Rating provides an assessment of the financial strength of an insurance organization. The rating is assigned to the company s policyholder obligations, including assumed reinsurance obligations and contract holder obligations, such as guaranteed investment contracts. The AA- rating is the fourth-highest rating on a 19-step scale and indicates a very strong capacity to meet policyholder and contract obligations. Ratings explanations can be found at Moody s Insurance Financial Strength Rating is an opinion of the ability of insurance companies to repay punctually senior policyholder claims and obligations. The Aa3 rating is the fourth-highest rating on a 21-step scale, and indicates that the company offers high quality financial security. Ratings explanations can be found at Standard & Poor s Insurer Financial Strength Rating is a forward-looking opinion about the financial security characteristics of an insurance organization with respect to its ability to pay under its insurance policies and contracts in accordance with their terms. This opinion is not specific to any particular policy or contract, nor does it address the suitability of a particular policy or contract for a specific purpose or purchaser. The AArating is the fourth highest rating on a 22-step scale and indicates that the insurer has very strong financial security characteristics, differing only slightly from those rated higher. Ratings explanations can be found at Amounts and percentages presented based on final NAIC rating. Quality rating scale is provided as a reference and is based on the equivalent rating to the NAIC scale. 5

5 metlife.com Metropolitan Life Insurance Company 200 Park Avenue New York, NY B L [exp1019][All States] 2018 MetLife Services and Solutions, LLC