Welcome! June 1, 2006

Transcription

1 2006 Stable Value and Global GIC Investor Day Welcome! June 1,

2 Safe Harbor Statement These materials contain statements which constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to trends in the operations and financial results and the business and the products of MetLife, Inc. and its subsidiaries (collectively, the Company ), as well as other statements including words such as "anticipate," "believe," "plan," "estimate," "expect," "intend" and other similar expressions. Forward-looking statements are made based upon management's current expectations and beliefs concerning future developments and their potential effects on the Company. Such forward-looking statements are not guarantees of future performance. Actual results may differ materially from those included in the forward-looking statements as a result of risks and uncertainties including, but not limited to, the following: (i) changes in general economic conditions, including the performance of financial markets and interest rates; (ii) heightened competition, including with respect to pricing, entry of new competitors and the development of new products by new and existing competitors; (iii) unanticipated changes in industry trends; (iv) 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; (v) deterioration in the experience of the "closed block" established in connection with the reorganization of Metropolitan Life Insurance Company; (vi) catastrophe losses; (vii) adverse results or other consequences from litigation, arbitration or regulatory investigations; (viii) regulatory, accounting or tax changes that may affect the cost of, or demand for, the Company's products or services; (ix) downgrades in the Company's or its affiliates' claims paying ability, financial strength or credit ratings; (x) changes in rating agency policies or practices; (xi) 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; (xii) discrepancies between actual experience and assumptions used in establishing liabilities related to other contingencies or obligations; (xiii) the effects of business disruption or economic contraction due to terrorism or other hostilities; (xiv) the Company s ability to identify and consummate on successful terms any future acquisitions, and to successfully integrate acquired businesses with minimal disruption, and (xv) other risks and uncertainties described from time to time in MetLife, Inc.'s filings with the Securities and Exchange Commission, including its S-1 and S-3 registration statements. The Company specifically disclaims any obligation to update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise. 2

3 Explanatory Note on Non-GAAP Financial Information The historical and forward-looking financial information presented at this conference and contained in the written materials provided include performance measures which are based on methodologies other than Generally Accepted Accounting Principles ( GAAP ). MetLife analyzes its performance using so-called non-gaap measures, including operating earnings available to common shareholders, operating earnings available to common shareholders per diluted common share and operating return on common equity ( ROE ). MetLife believes these measures enhance the understanding and comparability of its performance by excluding net investment gains and losses, net of income taxes, and adjustments related to net investment gains and losses, net of income taxes, both of which can fluctuate significantly from period to period, the impact of the cumulative effect of a change in accounting, net of income taxes, and discontinued operations other than discontinued real estate, net of income taxes, thereby highlighting the results from operations and the underlying profitability drivers of the business. Operating earnings available to common shareholders is defined as GAAP net income, excluding net investment gains and losses, net of income taxes, adjustments related to net investment gains and losses, net of income taxes, the impact of the cumulative effect of a change in accounting, net of income taxes, and discontinued operations other than discontinued real estate, net of income taxes, less preferred stock dividends which are recorded in Corporate & Other. Scheduled settlement payments on derivative instruments not qualifying for hedge accounting treatment are included in operating earnings available to common shareholders. Operating earnings available to common shareholders per diluted common share is calculated by dividing operating earnings available to common shareholders as defined above 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 as defined above by average equity for the period indicated, excluding accumulated other comprehensive income. 3

4 Explanatory Note on Non-GAAP Financial Information (continued) For the historical periods presented, reconciliations of the non-gaap measures used in this presentation to the most directly comparable GAAP measures are included at the end of this presentation and are on the Investor Relations portion of the Company s website ( Additional information about MetLife s historical financial results is available in the Company s Quarterly Financial Supplements which may be accessed through the Company s Website. The non-gaap measures used in this presentation should not be viewed as substitutes for the most directly comparable GAAP measures. In this presentation, MetLife provides guidance on its future earnings and earnings per share on an operating, non- GAAP basis. A reconciliation of these measures to the most directly comparable GAAP measures is not accessible on a forward-looking basis because MetLife believes it is not possible to provide a reliable forecast of net investment gains and losses, which can fluctuate significantly from period to period and may have a significant impact on GAAP net income. 4

5 Conference Objectives Overview of MetLife s stable value businesses Review of MET s financial strength and performance Impact of the Travelers acquisition Dialogue with Senior Officers of MetLife 5

6 Agenda Time Topic Presenter 8:30-9:00 a.m. Registration & Breakfast 9:00-9:15 a.m. Welcome & Introductory Remarks Maria R. Morris 9:15-9:35 a.m. MetLife Institutional Business Leland C. Launer, Jr. 9:35-10:20 a.m. MetLife Financial Overview William J. Wheeler 10:20-11:00 a.m. Investments Overview Robert W. Morgan 11:00-11:10 a.m. Break 11:10-11:40 a.m. Global GIC Portfolio Thomas E. Lenihan 11:40-12:00 p.m. Corporate Benefit Funding Robin F. Lenna Andrew T. Aoyama 12:00-1:00 p.m. Lunch 1:00 p.m. Conclusion 6

7 UFS 2006 Stable Value and Global GIC Investor Day MetLife Institutional Business Leland C. Launer, Jr. President, Institutional Business

8 2005 Highlights Operating Earnings up over 15% Grew top line 12% Record sales in several products Persistency improvements across all channels Improved underwriting margins in Disability and Dental Held direct operating expenses flat to previous year Fully integrated Travelers retirement business 8

9 2005 Highlights - Travelers Acquisition Purchased highly similar business Increased MetLife s retirement & savings general account assets by $28 billion or 54% Travelers accounts completely transferred to MetLife systems Providing uninterrupted service for Travelers 275,000 annuitants Managing acquired business with little incremental cost 9

10 Retirement & Savings Travelers ($ in billions) General Account Balances at time of Acquisition (7/1/05) Product Type MetLife Travelers Total Traditional GICs $ 5.7 $ 5.5 $ 11.2 Funding Agreements Global GICs Structured Settlements Closeouts Annuities & Other Total $ 51.0 $ 27.7 $

11 2005 Highlights - Key Management Actions Reorganized product groups to align with the buyer Consolidated sales forces under one leader Increased focus on second sale capabilities Additional focus on service 11

12 Institutional Business Is The Leader 2005 Operating Earnings = $1,445 million Institutional Business Number of Companies Served = 60,500 Institutional Business (44%) Covered Lives = 37.5 Million Number of Products = 31 MetLife Total = $3.3B Associates = 8,000 Sales* y Rank Group Life, Health and Annuity Life #1 Disability #1 Long Term Care #1 Auto & Home #1 Institutional Annuities #1 Structured Settlements #1 Stable Value & Funding Agreements #1 Dental #2 * MetLife rankings include Travelers results. Life, LTC, and Dental are measured in Sales Premiums; Disability in Sales Premiums, Equivalents, and Fees. Sources: Total Group Life, Health (excludes Medical), and Annuity (AM Best 2004); Life, Disability, LTC, Institutional Annuities, Structured Settlements, Stable Value and Funding Agreements Sales (LIMRA 2004); Dental, Auto & Home (MetLife Market Research 2005) See Appendix for reconciliations. 12

13 2005 Institutional Premiums, Fees & Other Revenues ($ millions) Growth Group Life $5,943 $6,444 8% Retirement & Savings 1,554 1,938 25% Non-Medical Health 3,905 4,430 13% $11,402 $12,812 12% 13

14 2005 Institutional - Operating Earnings ($ millions) Growth Group Life $398 $400 1% Retirement & Savings % Non-Medical Health % $1,249 $1,445 16% See Appendix for reconciliations. 14

15 2006 Institutional - Premiums, Fees & Other Revenues ($ millions) Plan Growth Group Life $6,444 $6,705 - $6,745 4% - 5% Retirement & Savings 1,938 $2,800 - $2,840 44% - 47% Non-Medical Health 4,430 $4,910 - $4,950 11% - 12% $12,812 $14,455 - $14,495 13% 15

16 2006 Institutional - Operating Earnings ($ millions) Plan Growth Group Life $400 $ (15%) - (9%) Retirement & Savings (3%) - 1% Non-Medical Health % - 55% $1,445 $1,475 - $1,550 2% - 7% See Appendix for reconciliations. 16

17 Initiatives - Group Life Grow market share Improve underwriting earnings Expand voluntary sales Manage Total Control Account 17

18 Initiatives - Retirement & Savings Maximize Travelers business Expand payout annuity business per retirement strategy Continue growth of structured settlements and closeouts Grow spread margin business Create UK closeout infrastructure 18

19 Initiatives - Non-Medical Health & Other Disability Focus on service as a differentiator Continuing improvement in underwriting margins Expand market share Dental Expand dental network from 85,000 to 90,000 Achieve renewal increases and maintain persistency Expand voluntary offerings Long Term Care Complete new Individual LTC product rollout Invest in operating system Expand multi-life LTC product sold through the workplace 19

20 Future Opportunities Higher participation rates in voluntary products Market share increase in small to mid employers Re-emergence of pension closeout business Expand arbitrage business 20

21 RR UFS

22 UFS 2006 Stable Value and Global GIC Investor Day MetLife Financial Overview Bill Wheeler Executive Vice President & CFO

23 First Quarter 2006 Financial Overview ($ millions, except per share and book value data) Three Months Ended March 31, % Change Premiums, Fees & Other Revenues $7,056 $7, % Operating Earnings Available to Common Shareholders per Diluted Common Share Net Income Available to Common Shareholders per Diluted Common Share Book Value per Common Share (actual common shares outstanding) (1) $1.11 $ % $1.33 $0.93 ( 30.1%) $28.48 $ % Operating Return on Common Equity (1)(2) 16.1% 16.1% (1) Excluding AOCI. See Appendix for reconciliations. (2) Based on annualized first quarter operating earnings available to common shareholders. See Appendix for reconciliations. 23

24 Premiums, Fees & Other Revenues CAGR 10.4% $20,157 $22,331 $24,269 $26,265 $29, % Annualized Sequential Growth ($millions) 12.4% $7,056 $7,934 * Q105 Q106 * Excludes $32 million for Conning, a subsidiary which was sold in See Appendix for reconciliations. 24

25 Premiums, Fees & Other Revenues by Line Of Business ($ millions) Three Months Ended March 31, % Change Institutional Group Life $1,564 $1, % Retirement & Savings (28.3%) Non-Medical Health & Other 1,073 1, % Sub-Total 3,198 3, % Individual Life 1,232 1, % Annuities % Other % Sub-Total 1,619 2, % Auto & Home (0.8%) International % Reinsurance 914 1, % Corporate & Other Total $7,056 $7, % 25

26 Total Assets CAGR 17.0% $ % Annualized $499.1 ($billions) $257.0 $277.4 $62.7 $59.7 $194.3 $217.7 $326.8 $356.8 $75.8 $86.8 $251.0 $270.0 $127.9 $353.7 $132.5 $ Q106 General Account Separate Account 26

27 Underwriting Margins Loss Ratios Q105 Q106 Group Term Life 92.6% 92.4% 90.8% 91.7% 92.4% 94.2% 94.2% Group Disability 100.3% 95.5% 95.4% 91.6% 89.8% 89.5% 90.7% Individual Life 84.8% 83.8% 87.7% 82.0% 85.4% 85.6% 94.0% A&H Combined Ratio 106.0% 99.4% 99.7% 96.8% 96.3% 92.4% 89.6% A&H Combined Ratio Excluding Catastrophes 102.1% 97.4% 97.1% 90.4% 86.7% 90.9% 86.6% 27

28 Investment Yields and Spreads Q105 Q106 Average Yield on Total Invested Assets 7.56% 7.25% 6.72% 6.55% 6.21% 6.48% 6.42% Group Life 1.59% 1.89% 2.04% 2.19% 1.98% 2.03% 1.67% R&S 1.47% 1.44% 1.40% 1.83% 1.71% 1.65% 1.43% Annuities 2.18% 2.07% 2.11% 2.33% 2.83% 2.68% 2.63% 28

29 Total Company Operating Expense Ratio 32.0% 29.5% 27.8% 27.8% 28.0% 28.5% 30.2% 29.0% 25.7% Q105 Q305 Q405 Q106 Operating expense ratio is defined as expenses excluding certain items, divided by premiums, fees and other revenues. See Appendix for reconciliations. 29

30 Operating Earnings Available to Common Shareholders Per Diluted Common Share CAGR 18.9% $4.33 $2.17 $2.59 $2.83 $ % $1.11 $ Q105 Q106 Operating Earnings Available to Common Shareholders Per Diluted Common Share as presented excludes certain items. See Appendix for reconciliations. 30

31 Operating Earnings Available to Common Shareholders by Line of Business ($ millions) Three Months Ended March 31, % Change Institutional $324 $ % Individual % Auto & Home % International % Reinsurance (4.0%) Corporate & Other % Total $822 $1, % 31

32 GAAP Results Total Company ($ millions, except per share) Three Months Ended March 31, Amount Diluted EPS Amount Diluted EPS Operating earnings available to common shareholders $822 $1.11 $1,025 $1.33 Net investment gains (losses) and related adjustments, net of income taxes (311) (0.40) Discontinued operations, net of income taxes Net income available to common shareholders $987 $1.33 $714 $

33 Realized Investment Gains/Losses ($ millions) Three Months Ended March 31, Gross Investment Gains $373 $237 Gross Investment Losses (322) (587) Writedowns (51) (22) Derivative Values (21) (252) Net Investment Gains (Losses) (21) (624) Tax Benefit & Minority Interest Net Investment Gains (Losses), After-Tax (21) (406) Other Offsets Impact on Net Income $15 ($311) Gross Credit Losses ($55) ($72) Gross Non Credit Related Losses (318) (537) Total Gross Investment Losses Including Writedowns ($373) ($609) 33

34 2006 Earnings Outlook Strong first quarter, outlook for rest of 2006 higher More confidence regarding interest rates, Higher variable investment income Revised FY 2006 EPS guidance: $ $4.75 per common share 34

35 Financial Strength Ratings Metropolitan Life Insurance Company Moody's S & P Fitch A.M. Best Aa2 Negative Outlook AA Negative Outlook AA Stable A+ Stable 35

36 Travelers Execution Deliverables Expectation Status Financing Risk Done Leverage 25% by YE 06 On Track Coverage Greater than Cashflow 5.0x On Track Cashflow w/common Dividend > 2.0x On Track $150MM Expense Savings by 2006 On Track Integration Done 36

37 Summary We are running this Company for the long term: Top-line growth Underwriting margins Appropriate risk profile 37

38 RR UFS

39 UFS 2006 Stable Value and Global GIC Investor Day Investments Overview Robert W. Morgan Managing Director Portfolio Management

40 Investments Agenda Market overview Portfolio asset allocation Sectors: Credit Residential mortgage-backed securities Real estate and agricultural investments Derivatives Investment risks 40

41 2006 Market View & Themes Economy No bias to consensus Inflation Inflation lower than consensus Fed Fed Funds may go to 5.25% Interest Rates Buying opportunity Fixed Income Sectors No longer improving Real Estate Mortgages Strong market fundamentals with tighter, but still attractive, spreads Real Estate Equity Strong market fundamentals, but abundant capital is driving rich valuations S&P 500 New 5-year highs in

42 Travelers Portfolio Integrated $55 billion Travelers portfolio as of July 1st Managed as One Travelers portfolio rebalance Reduced credit exposure Increased structured finance More commercial mortgages 42

43 Portfolio Allocation MetLife Inc. as of March 31, 2006 Asset Category Amount ($b) Target Ranges and Holdings U.S. Treasury/Agency $ % 11.0% Residential MBS % 18.0% Commercial MBS % 8.0% Asset Backed Securities % 6.5% A or Better Corporates % 25.0% BBB Corporates % 17.0% Below Invest. Grade Corps % 6.5% Commercial Mortgages % 12.0% Agricultural Mortgages % 4.0% Real Estate Equity % 4.0% Corporate Equity % 3.5% Cash & Short Term % 3.5% MV of Managed Asset Base $302.5 Other Invested Assets 9.3 Real Estate Value Adj. ($4.3) Policy Loans 10.0 Total Carrying Value $317.5 Neutral Min / Max Range 3/31/05 Holdings 3/31/06 Holdings 43

44 Credit Investment grade credit Total portfolio: $110.9 billion Top 10 exposures: $6.4 billion Largest single name: $0.9 billion Below investment grade credit Market Value as of 3/31/06 Total portfolio: $15.5 billion Top 10 exposures: $1.9 billion Largest single name: $0.3 billion As of 3/31/06 44

45 Credit Quality Profile $ billions 3/31/05 3/31/06 Credit Quality Investment Grade 'A' or Better 47.0% 52.2% 'BBB' 41.0% 35.6% Total Investment Grade 88.0% 87.8% Below Investment Grade 'Ba' 7.2% 7.3% 'B' 4.5% 4.7% 'Caa and Lower' 0.3% 0.2% In or Near Default 0.0% 0.0% Total Below Investment Grade 12.0% 12.2% Total $101.9 $

46 Credit Investment Grade Portfolio is more diversified than overall market MetLife Lehman Index Weighted average rating A3 A2 Number of issuers (ex. munis) 1, Foreign % 31.8% 27.1% Highest single exposure 0.8% 2.9% Top 10 exposures 5.7% 19.3% As of 3/31/06 46

47 Credit Below Investment Grade Higher ratings profile than overall market Portfolio maintains stronger position in capital structure than overall market Decreasing as percentage of total invested assets 6.09% as of 12/31/ % as of 12/31/ % as of 12/31/ % as of 12/31/ % as of 3/31/06 MetLife Lehman Index NAIC 3 60% 41% NAIC 4 38% 44% NAIC 5&6 2% 15% Secured 42% 2% Unsecured 50% 74% Subordinated 8% 24% As of 3/31/06 47

48 Credit Risk Management Experienced risk management team Enhanced credit research processes Defensive high yield portfolio Active credit and exposure management Increased use of derivatives as a risk management tool 48

49 Credit Active Credit Risk Management Autos Fundamental considerations Began selling down in 2002 LBO risk Increased risk of LBOs and other event risk Reduced exposure on name by name basis Housing Potential residential real estate bubble Reduced exposure in the home construction, building materials sectors and certain niche markets 49

50 Residential Mortgage-Backed Securities Portfolio composition: 98.9% rated AAA Most liquid securities in the capital markets RMBS offers attractive relative value Mitigate the volatility by: Match short duration RMBS with short duration liabilities Allocate to rate-reset or participating portfolios Buy CMOs that provide protection against extension and prepayments As of 3/31/06 CMOs Pass Throughs Total Short Term 37% 22% 59% Rate-Reset 6% 8% 14% Participating products 6% 3% 9% Sub-Total 49% 33% 82% Other 12% 6% 18% Total 61% 39% 100% 50

51 Real Estate and Agricultural Investments Commercial mortgages Total portfolio $28.3 billion Top 10 exposures $2.2 billion Largest single investment $0.4 billion Agricultural mortgages Total portfolio $7.7 billion Top 10 exposures $0.9 billion Largest single investment $0.2 billion Real estate equity Book Value as of 3/31/06 Total portfolio $4.7 billion Top 10 exposures $2.1 billion Largest single investment $0.5 billion 51

52 Commercial Mortgages Quality Profile $ billions Book Value 3/31/05 3/31/06 Traditional <60% LTV $7.3 $ % LTV % LTV >80% LTV Total Commercial Mortgages $23.7 $27.0 High Yield Commercial Mortgages $0.9 $1.3 Agricultural Loans $5.9 $7.7 Consumer Loans $1.4 $1.4 Total Mortgages $31.9 $

53 Commercial Mortgages Portfolio Composition Amount % of Portfolio Property Type ($ millions) MetLife ACLI Office 13,636 48% 35% Retail 6,270 22% 24% Apartments 3,283 12% 17% Industrial 2,763 10% 17% Hotel 1,490 5% 3% Other 836 3% 4% Total 28, % 100% Book value as of 3/31/06 53

54 Real Estate Equity Quality Profile Occupancy Rates MetLife U.S. Market* % Portfolio Office 88% 87% 40% Apartment 98% 94% 39% Retail 98% 93% 6% Industrial 90% 90% 4% Hotel 73% 68% 4% *Torto Wheaton Research; REIS Reports Market value as of 3/31/06 54

55 Derivatives $ millions 97% of derivatives used for hedging purposes Duration management Rate hedges Foreign currency hedges March 31, 2006 Current Market or Fair Value Notional Amount Assets Liabilities Interest rate swaps $18,410 $663 $247 Interest rate floors 10, Interest rate caps 27, Financial futures Foreign currency swaps 15, ,010 Foreign currency forwards 4, Options Financial forwards 3, Credit default swaps 5, Synthetic GICs 3, Other Total $91,367 $2,015 $1,386 55

56 Investment Risks Low rates Flat curve Tight spreads 56

57 RR

58 UFS 2006 Stable Value and Global GIC Investor Day Capital Markets Investment Products: Global GICs Tom Lenihan Managing Director

59 Agenda Company Structure 2005 Global GIC Market Capital Markets Investment Product (CMIP) Overview Global GIC Program Overview Structure of Program Operating Paradigm MetLife s Global GIC Program MetLife of Connecticut s Global GIC Programs Asset/Liability Management Summary 59

60 Company Structure MetLife, Inc. ( Holding Company ) Metropolitan Life Insurance Company ( Metropolitan Life or MLIC ) Primary Insurance Entity - Domiciled in New York Met A&H International Subsidiaries Bank Other Subsidiaries MetLife of Connecticut 60

61 2005 Global GIC Market Recap GGIC ISSUANCE BY YEAR* $ billion programs issued a total of $32.1 billion of notes New issue volume decreased by $5.5 billion versus 2004 due to AIG s departure from the market Over $200 billion of notes have been offered since 1997 ($145 billion currently outstanding) Issuance through SEC-registered programs continued to expand as it accounted for 28% of the 2005 new issue volume With over $25 billion of maturities projected in 2006 and continued growth expected, issuances likely to remain robust in 2006 *Data published by S&P. 61

62 2005 Global GIC Market By Program OUTSTANDING BALANCE BY PROGRAM* $ billion AIG MET ALL PFG AEGON JHF NYL PACLIF JNL PL 2005 GGIC ISSUANCE BY PROGRAM* $ billion MET ALL NYL AEGON PFG AIG HFG GNW PRU PL *Data published by S&P. 62

63 CMIP Overview MLIC s GGICs MetLife of Connecticut s GGICs Farmer Mac Guaranteed Trust Notes Short Term Funding Agreements 63

64 Global GIC Program Overview Metropolitan Life Global Funding I Type: Global: 144A / Reg S Size: US $17 Billion Issuer: Metropolitan Life Global Funding I Listing: Irish Stock Exchange Ratings: Aa2 (negative outlook) / AA (negative outlook) Maturities: Primarily Out to 10 Yrs; Longer Available Offerings: Generally $100-$500 Million Currencies: Various Interest Rate: Fixed / Floating Distribution: Syndication / Reverse Inquiry 64

65 Structure of Program Standard Global Format Investors $ Notes* Metropolitan Life Global Funding I $ $ Funding Agreement Investment Bank Funding Agreement Metropolitan Life** * Notes rated Aa2/AA. ** Metropolitan Life Financial Strength Ratings: Aa2/AA. 65

66 Global GIC Program Operating Paradigm Operated by Investments Department s Funding Desk Desk has both Asset and Liability responsibility Full transparency (margin/roe) Asset characteristics and mix dependent on liability type Derivatives manage duration, currency and cash flow risks Results in better matching of assets and liabilities Avoids margin leakage 66

67 MLIC s GGIC Program As of 3/31/ discrete transactions totaling $14 billion since program inception (June 2002) Outstanding balance totaled US $12.1 billion Issuance: 73% USD/16% GBP/7% CHF/3% CAD/1% JPY Planned annual new issuance of $3-5 billion Diversification: markets and currencies Utilize a broad group of bankers Program has reached over 265 investors globally 67

68 Diversified GGIC Offerings As of 3/31/2006 Fixed Floating EXLs Non-USD Total Term 3-10 Yr 2-7 Yr 5-7 Yr 5-30Yr 2-30 Yr Amount $2.9B $4.3B $3.2B 3.6B $14.0B # of Deals # of Investors * * Distinct investors 68

69 MLIC of CT s GGIC Programs As of 3/31/2006 EMTN Program Established in 1998 Outstanding balance totaled US $3.8 billion Issuance: 39% EUR/32% USD/14% GBP/9% JPY/6% AUD GMTN Program Established in 2004 Outstanding balance totaled US $200 million Issuance: 100% USD 69

70 Asset/Liability Management GGIC Program Framework Rating agencies require matched book style Duration framework: ALM = ± 0.5 years Diversification: broad use of asset sectors; laddered maturities for liabilities Securities selection/management: extensive use of research, trading, and private market capabilities Asset portfolio quality: A rated overall; economic capital usage is less than company average 70

71 Summary Excellent Creditworthiness Low operational leverage/solid capital position Attractive growth and profitability prospects High Demand for MetLife, Inc./MLIC Names in Capital Markets Each FA-backed note offering well-received Successful $6.9 billion mandatory/preferred/debt offerings MET stock trading at or near all-time high Capitalizes on GIC, ALM and Investments Expertise Long history in traditional GIC/pension market Strong ALM culture Investor perspective 71

72 RR 72

73 UFS 2006 Stable Value and Global GIC Investor Day Corporate Benefit Funding Robin F. Lenna Senior Vice President

74 Corporate Benefit Funding Product Portfolio Structured Risk Solutions Specialized Benefit Resources Post-Retirement Benefits Stable Value Global GICs Funding Agreements Closeouts Structured Settlements COLI BOLI Executive Benefits GLIFA / LIFA Funding Agreements 74

75 Corporate Benefit Funding Growth and Innovation Pension Risk Transfer Product Development UK Pension Closeout Market Develop Infrastructure Build Organization Leverage Unique Strengths New Products to meet Plan Sponsor needs Liability Transfer Solutions 75

76 Corporate Benefit Funding MetLife Stable Value $22.0 billion in Stable Value assets 1 Over 30 years of underwriting experience 6 underwriters; 10 years of experience MetLife s Risk Management, ALM and Investments 1 As of 3/31/06 76

77 Corporate Benefit Funding MetLife s Risk Management Culture Risk Ownership Risks and returns are clearly owned and managed by the accountable business Independent Oversight Corporate Risk Management, reporting to the Governance Committee of the Board, facilitates an enterprise view of risks with focus on the top risks Enterprise Risk Council Risk coordination and support, integrating Corporate Risk Management, Audit, Compliance, Controller, Investments, Legal, IT Risk and Actuarial 77

78 Corporate Benefit Funding Risk Management in the Business ALM Risk Active involvement on product level ALM Committees setting Investment guidelines Quarterly Business Reviews Periodic reporting on key risks, and the impact on performance and results Process and Controls Understanding, managing and effectively mitigating risks in the day to day activities of the business 78

79 Corporate Benefit Funding 2006 Growth Objectives Grow spread businesses Building Pension Risk Transfer Existing product enhancements New product innovation Manage risk as driver of value 79

80 RR 80

81 UFS 2006 Stable Value and Global GIC Investor Day Reconciliations of Non-GAAP Financial Information

82 Explanatory Note on Non-GAAP Financial Information The historical and forward-looking financial information presented at this conference and contained in the written materials provided include performance measures which are based on methodologies other than Generally Accepted Accounting Principles ( GAAP ). MetLife analyzes its performance using so-called non-gaap measures, including operating earnings available to common shareholders, operating earnings available to common shareholders per diluted common share and operating return on common equity ( ROE ). MetLife believes these measures enhance the understanding and comparability of its performance by excluding net investment gains and losses, net of income taxes, and adjustments related to net investment gains and losses, net of income taxes, both of which can fluctuate significantly from period to period, the impact of the cumulative effect of a change in accounting, net of income taxes, and discontinued operations other than discontinued real estate, net of income taxes, thereby highlighting the results from operations and the underlying profitability drivers of the business. Operating earnings available to common shareholders is defined as GAAP net income, excluding net investment gains and losses, net of income taxes, adjustments related to net investment gains and losses, net of income taxes, the impact of the cumulative effect of a change in accounting, net of income taxes, and discontinued operations other than discontinued real estate, net of income taxes, less preferred stock dividends which are recorded in Corporate & Other. Scheduled settlement payments on derivative instruments not qualifying for hedge accounting treatment are included in operating earnings available to common shareholders. Operating earnings available to common shareholders per diluted common share is calculated by dividing operating earnings available to common shareholders as defined above 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 as defined above by average equity for the period indicated, excluding accumulated other comprehensive income. 82

83 Explanatory Note on Non-GAAP Financial Information (continued) For the historical periods presented, reconciliations of the non-gaap measures used in this presentation to the most directly comparable GAAP measures are included at the end of this presentation and are on the Investor Relations portion of the Company s website ( Additional information about MetLife s historical financial results is available in the Company s Quarterly Financial Supplements which may be accessed through the Company s Website. The non-gaap measures used in this presentation should not be viewed as substitutes for the most directly comparable GAAP measures. In this presentation, MetLife provides guidance on its future earnings and earnings per share on an operating, non- GAAP basis. A reconciliation of these measures to the most directly comparable GAAP measures is not accessible on a forward-looking basis because MetLife believes it is not possible to provide a reliable forecast of net investment gains and losses, which can fluctuate significantly from period to period and may have a significant impact on GAAP net income. 83

84 Reconciliation of Book Value and ROE Book Value per Common Share Book Value per Common Share (actual common shares outstanding) $ $ Accumulated Other Comprehensive Income Book Value per Common Share (actual common shares outstanding), Excluding Accumulated Other Comprehensive Income $ $ Q05 QTD 1Q06 Operating Return on Common Equity Net Income Available to Common Shareholders $ 987 $ 714 Investment (gains) losses and related adjustments, net of income taxes (15) 311 Discontinued operations, net of income taxes (150) - Operating Earnings Available to Common shareholders 1Q05 QTD 1Q06 $ 822 $ 1,025 QTD 1Q05 1Q06 Total Equity $ 23,038 $ 28,567 Accumulated Other Comprehensive Income 2, Preferred Stock - 2,042 Total Common Equity, Excluding Accumulated Other Comprehensive Income $ 20,882 $ 25,935 Average Common Equity 20,375 25,541 Operating Return on Common Equity 16.1% 16.1% 84

85 Reconciliation of Premiums, Fees & Other Revenues and Operating Expense Ratio QTD ($ Millions) Q05 3Q05 4Q05 1Q06 Total Company Operating Expenses $ 6,522 $ 6,476 $ 6,706 $ 7,327 $ 8,550 $ 1,811 $ 2,408 $ 2,487 $ 2,297 Other Expenses IRS tax audit settlement Premium tax liability MetLife Foundation contribution (50) Race conscious underwriting (250) New England Financial charge - - (48) Change in reserve methodology - - (45) Asbestos related litigation - (266) th quarter 2001 charges (288) Sales practice liability Conning Corporation (32) GenAm litigation - (75) Nvest - - Conning Corporation - - Operating Expenses, as presented $ 5,952 $ 6,210 $ 6,757 $ 7,348 $ 8,550 $ 1,811 $ 2,408 $ 2,487 $ 2,297 Premium, Fees & Other Revenues $ 20,189 $ 22,331 $ 24,269 $ 26,265 29,959 $ 7,056 $ 7,974 $ 7,781 $ 7,934 Less: Conning Corporation Premium, Fees & Other Revenues, as presented $ 20,157 $ 22,331 $ 24,269 $ 26,265 29,959 $ 7,056 $ 7,974 $ 7,781 $ 7,934 Operating Expense Ratio: Operating Expense Ratio 32.3% 29.0% 27.6% 27.9% 28.5% 25.7% 30.2% 32.0% 29.0% Operating Expense Ratio, as presented 29.5% 27.8% 27.8% 28.0% 28.5% 25.7% 30.2% 32.0% 29.0% The operating expense ratio is calculated by dividing operating expenses by premiums, fees and other revenues. The operating expense ratio, as presented, is calculated by dividing operating expenses, as presented, by premiums, fees and other revenues, as presented. 85

86 Reconciliation of Net Income Available to Common Shareholders per Diluted Common Share to Operating Earnings Available to Common Shareholders per Diluted Common Share Total Company QTD Q05 1Q06 Total Company Net income available to common shareholders per diluted common share $ 0.62 $ 2.20 $ 2.94 $ 3.65 $ 6.16 $ 1.33 $ 0.93 Charge for conversion of securities Cumulative effect of a change in accounting, net of income taxes Investment (gains) losses, net of income taxes (0.21) (1.67) Adjustments related to investment (gains) losses, net of income taxes (0.12) (0.13) (0.18) (0.04) 0.06 (0.05) (0.13) Discontinued operations, net of income taxes (0.02) (0.01) (0.02) (0.01) (0.22) (0.20) - Operating earnings available to common shareholders per diluted common share IRS tax audit settlement (0.14) Premium tax liability (0.04) MetLife Foundation contribution Race conscious underwriting (0.13) Merger of Mexican operations - - (0.05) Change in reserve methodology - - (0.03) New England Financial charge Asbestos related litigation th quarter 2001 charges 0.53 (0.03) September 11th 2001 tragedies 0.27 (0.02) Sales practice liability - (0.04) GenAm litigation Operating earnings available to common shareholders per diluted common share, as presented $ 2.17 $ 2.59 $ 2.83 $ 3.36 $ 4.33 $ 1.11 $ 1.33 The operating expense ratio is calculated by dividing operating expenses by premiums, fees and other revenues. The operating expense ratio, as presented, is calculated by dividing operating expenses, as presented, by premiums, fees and other revenues, as presented. 86

87 Reconciliation of Net Income to Operating Earnings Available to Common Shareholders Institutional 1Q05 1Q06 Net income $ 349 $ 213 Investment (gains) losses and related adjustments, net of income taxes (25) 203 Operating earnings available to common shareholders $ 324 $ 416 QTD Individual 1Q05 QTD 1Q06 Net income $ 368 $ 304 Investment (gains) losses and related adjustments, net of income taxes (47) 104 Operating earnings available to common shareholders $ 321 $

88 Reconciliation of Net Income to Operating Earnings Available to Common Shareholders Auto & Home 1Q05 1Q06 Net income $ 76 $ 91 Investment (gains) losses and related adjustments, net of income taxes - 2 Operating earnings available to common shareholders $ 76 $ 93 QTD International 1Q05 QTD 1Q06 Net income $ 76 $ 104 Investment (gains) losses and related adjustments, net of income taxes (9) (29) Discontinued operations, net of income taxes 1 - Operating earnings available to common shareholders $ 68 $ 75 88

89 Reconciliation of Net Income to Operating Earnings Available to Common Shareholders Reinsurance 1Q05 1Q06 Net income $ 29 $ 26 Investment (gains) losses and related adjustments, net of income taxes (4) (2) Operating earnings available to common shareholders $ 25 $ 24 Corporate, Other & Eliminations 1Q05 1Q06 Net income $ 89 $ 9 Investment (gains) losses and related adjustments, net of income taxes Discontinued operations, net of income taxes (151) - Preferred stock dividends - (33) Operating earnings available to common shareholders $ 8 $ 9 QTD QTD 89

90 Reconciliation of Net Income to Operating Earnings Available to Common Shareholders Total MetLife 2005 Net income $ 4,714 Less: Preferred Stock Dividends 63 Net Income available to common shareholders $ 4,651 Investment (gains) losses and related adjustments, net of income taxes (1,212) Discontinued operations, net of income taxes (168) Operating earnings available to common shareholders $ 3,271 90

91 Reconciliation of Net Income to Operating Earnings Available to Common Shareholders Total Institutional Net income $ 1,267 $ 1,562 Cumulative effect of a change in accounting, net of income taxes 60 - Investment (gains) losses and related adjustments, net of income taxes (78) (117) Operating earnings available to common shareholders $ 1,249 $ 1,445 Group Life Net income $ 373 $ 364 Investment (gains) losses and related adjustments, net of income taxes Operating earnings available to common shareholders $ 398 $

92 Reconciliation of Net Income to Operating Earnings Available to Common Shareholders Retirement & Savings Net income $ 684 $ 943 Cumulative effect of a change in accounting, net of income taxes 40 - Investment (gains) losses and related adjustments, net of income taxes (100) (143) Operating earnings available to common shareholders $ 624 $ 800 Non-Medical Health & Other Net income $ 210 $ 255 Cumulative effect of a change in accounting, net of income taxes 20 - Investment (gains) losses and related adjustments, net of income taxes (3) (10) Operating earnings available to common shareholders $ 227 $

93 RR UFS