10-KPeriod: FY2010

METLIFE INC Annual Report, Year Ended Dec 31, 2010

Filed February 25, 2011For Securities:METMET-PEMET-PFMET-PA

Summary

MetLife, Inc. reported robust financial performance for the fiscal year ending December 31, 2010, marked by a significant increase in net income available to common shareholders, reaching $2.67 billion, a substantial improvement from a net loss of $2.37 billion in 2009. This turnaround was largely driven by a favorable $3 billion shift in net derivative gains and a $1.6 billion improvement in net investment gains, reflecting a recovery in capital markets and the company's strategic financial management. The acquisition of ALICO for $16.4 billion on November 1, 2010, was a key event, significantly expanding MetLife's global footprint and diversifying its product and geographic mix, particularly strengthening its presence in Japan and Latin America. The company's operational segments, including U.S. Business (Insurance Products, Retirement Products, Corporate Benefit Funding, Auto & Home) and International, demonstrated resilience. The U.S. Business showed stable performance, while the International segment, bolstered by the ALICO acquisition, is expected to contribute significantly to future earnings. MetLife's strong capital position and commitment to shareholder value are underscored by its compliance with regulatory capital requirements and continued dividend payments.

Financial Highlights

43 data points
Beta

Revenue

$52.25B

Net Income

$2.67B

5.1% Net Margin

EPS (Diluted)

$2.86

Total Assets

$730.91B

Cash & Equivalents

$12.96B

Free Cash Flow

$7.99B

Financial Statements
Beta
Revenue$52.25B
Operating Expenses$12.93B
Operating Income$2.50B
Interest Expense$1.55B
Net Income$2.67B
EPS (Basic)$2.88
EPS (Diluted)$2.86
Shares Outstanding (Basic)882.44M
Shares Outstanding (Diluted)889.57M

Key Highlights

  • 1Net income available to common shareholders significantly improved to $2.67 billion in 2010, a reversal from a net loss of $2.37 billion in 2009.
  • 2Completed the acquisition of ALICO for $16.4 billion on November 1, 2010, expanding global reach and diversification.
  • 3Operating earnings available to common shareholders increased by $1.5 billion to $3.9 billion, driven by market recovery and business growth.
  • 4Net derivative gains (losses) improved by $3.0 billion, and net investment gains (losses) improved by $1.6 billion, reflecting favorable market conditions.
  • 5MetLife Bank operations continued, providing mortgage and deposit products, while maintaining compliance with federal banking regulations.
  • 6The company maintained strong capital positions across its subsidiaries, exceeding regulatory capital requirements.
  • 7Continued focus on expense management and operational efficiency initiatives to drive margin improvement.

Frequently Asked Questions

The acquisition of ALICO for $16.4 billion on November 1, 2010, significantly expanded MetLife's international footprint, diversified its product and geographic mix, and accelerated its global growth strategy. ALICO's results contributed to revenue and operating earnings in the final months of 2010, and it is expected to be a key driver of future international growth.

MetLife's investment portfolio saw improved performance in 2010, with net investment income increasing by 18.7% due to higher yields and growth in average invested assets. Net investment gains (losses) also improved significantly, moving from a loss of $2.9 billion in 2009 to a loss of $392 million in 2010, reflecting recovering markets and a decrease in impairments.

MetLife's strategy focuses on strengthening its growth platform through targeted, disciplined global growth, leveraging its widely recognized brand name and large customer base. It also aims to optimize its delivery and operations by expanding distribution channels and focusing on margin improvement, while protecting and extending its risk management capabilities and capitalizing on innovation.

MetLife maintained strong liquidity with $17.6 billion in liquid assets at year-end 2010. The company managed its capital position to preserve financial strength and credit ratings, supported by strong cash flows from operating companies, access to wholesale funding markets, and capital raised through debt and equity issuances, including those related to the ALICO acquisition.