Early Access

10-QPeriod: Q3 FY2021

METLIFE INC Quarterly Report for Q3 Ended Sep 30, 2021

Filed November 9, 2021For Securities:METMET-PEMET-PFMET-PA

Summary

MetLife Inc.'s (MET) third-quarter 2021 results show a notable increase in net income available to common shareholders, reaching $1.521 billion, up from $633 million in the prior year's quarter. This improvement was primarily driven by a favorable change in net derivative gains and a positive impact from actuarial assumption reviews. Adjusted earnings available to common shareholders also saw a significant increase, rising by $484 million to $2.062 billion. The company continued its strategic divestitures, completing the sale of its Argentinian subsidiary and pending the sale of its Polish and Greek operations. Investments benefited from strong returns in private equity and improved net investment income due to a larger asset base. However, underwriting results were negatively impacted by COVID-19 related claims across several segments, particularly in Group Benefits within the U.S. and in Asia. MetLife's total assets decreased to $761.66 billion from $795.15 billion at the end of 2020, primarily reflecting strategic dispositions and the natural run-off of certain businesses. Total liabilities also decreased commensurately. Stockholders' equity declined slightly due to adverse movements in accumulated other comprehensive income. The company maintained a strong capital position, with its credit ratings remaining stable.

Financial Statements
Beta
Revenue$16.91B
Operating Expenses$3.28B
Net Income$1.58B
EPS (Basic)$1.78
EPS (Diluted)$1.77
Shares Outstanding (Basic)854.90M
Shares Outstanding (Diluted)861.20M

Key Highlights

  • 1Net income available to common shareholders increased significantly to $1.521 billion for Q3 2021, compared to $633 million in Q3 2020.
  • 2Adjusted earnings available to common shareholders rose by $484 million to $2.062 billion for Q3 2021, driven by strong investment returns and favorable actuarial assumption reviews.
  • 3Total assets decreased to $761.66 billion, reflecting strategic divestitures and run-off of certain businesses.
  • 4MetLife completed the sale of its Argentinian subsidiary and is pending the sale of its Polish and Greek subsidiaries, consistent with its strategy to reshape its portfolio.
  • 5Net investment income increased, boosted by strong performance in private equity and higher income from real estate investments.
  • 6Underwriting results were negatively impacted by COVID-19 related claims, particularly in the Group Benefits business and Asia segment.
  • 7The company continues to actively manage its investment portfolio and hedge market risks using derivatives, with VA program derivatives and non-VA program derivatives playing key roles in managing financial exposures.

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