01—Abstract
Summary
Summary of the 10-K filed February 26, 2010. Cited figures are marked; the original filing is the authoritative source.
MetLife Inc.'s 2009 10-K filing highlights a year of resilience amidst challenging economic conditions.
The company maintained its position as a leading global provider of insurance, employee benefits, and financial services, serving over 70 million customers worldwide. Despite a net loss attributable to common shareholders in 2009, driven by significant net investment losses, MetLife demonstrated strength in its core businesses and international operations.
The company reorganized its U.S. business segments for clearer reporting and continued to focus on strategic objectives including brand building, customer base expansion, global growth, and operational efficiencies. Key areas of focus for investors include MetLife's diversified product portfolio, its global market presence, its distribution channels, and its management's commitment to financial strength and shareholder value enhancement.
02—Key points
Key Highlights
- MetLife operates globally, serving over 70 million customers across the United States, Latin America, Asia Pacific, and Europe, Middle East, and India.
- The company reorganized its U.S. business into five segments: Insurance Products, Retirement Products, Corporate Benefit Funding, Auto & Home, and Banking, Corporate & Other.
- MetLife Bank's mortgage operations ranked among top originators in reverse and overall mortgage lending for 2009.
- The company maintains a robust general account portfolio of $328 billion, invested across a diversified range of assets.
- MetLife is pursuing strategic objectives to build brand, leverage its customer base, expand distribution, innovate products, and focus on global growth and retirement income solutions.
- Despite a net loss in 2009, the company emphasizes its financial strength and expertise as key differentiators in a competitive market.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2009filed February 26, 2010Financial Statements
FY2009 against FY2008
| Line item | FY2009FY2008 | Change |
|---|---|---|
| Revenue | $40.66B$50.98B | −20.3% |
| Operating Expenses | $10.52B$11.95B | −11.9% |
| Operating Income | -$2.60B$3.38B | −176.8% |
| Interest Expense | $1.04B$1.05B | −0.7% |
| Net Income | -$2.25B$3.21B | −170.0% |
| EPS (Basic) | $-2.89$4.19 | −169.0% |
| EPS (Diluted) | $-2.89$4.14 | −169.8% |
| Shares Outstanding (Basic) | 818.46M735.18M | +11.3% |
| Shares Outstanding (Diluted) | 818.46M744.79M | +9.9% |
05—Questions
Frequently Asked Questions
What was MetLife's financial performance in 2009?
MetLife reported a net loss attributable to common shareholders of $2.37 billion for 2009, compared to a net income of $3.08 billion in 2008. This was largely due to significant net investment losses of $7.77 billion in 2009, primarily driven by losses on freestanding derivatives and other market-related impacts, compared to net investment gains of $1.81 billion in 2008. However, operating earnings available to common shareholders were $2.37 billion in 2009, a decrease from $2.69 billion in 2008, reflecting the challenging economic environment but highlighting resilience in core operations.
How did MetLife's business segments perform in 2009?
The U.S. Business segments, including Insurance Products, Retirement Products, and Corporate Benefit Funding, experienced mixed results impacted by market conditions. The International segment showed growth, driven by investments and market recovery in regions like Asia Pacific and Latin America. MetLife Bank's operations benefited from strong mortgage refinancing activity and growth in reverse mortgages.
What are MetLife's key strategies for future growth?
MetLife's future growth strategies include building on its recognized brand name, capitalizing on its large customer base, expanding and leveraging its diverse distribution channels, continuing to introduce innovative products, focusing on global business growth, capitalizing on retirement income solutions, and maintaining a balanced focus on income and protection products. The company also aims to maintain capital efficiency, achieve organizational efficiencies through its 'Operational Excellence' initiative, focus on margin improvement, and expand return on equity.
How did the 2008-2009 financial crisis impact MetLife?
The financial crisis and subsequent recession had an adverse effect on MetLife's financial results, primarily through its investment portfolio, leading to lower net investment income and increased impairments. However, the company also noted an increase in market share in some businesses due to a 'flight to quality' and benefited from recovering financial markets in its international regions and a strong residential mortgage refinance market domestically. MetLife also participated in government stress tests and was deemed to have adequate capital.
06—Continue