8-KRegulation FD

METLIFE INC 8-K Report, Regulation FD Disclosure (Jun 10, 2011)

Filed June 10, 2011For Securities:METMET-PEMET-PFMET-PA

Summary

MetLife, Inc. has filed an 8-K report detailing significant catastrophe losses impacting its Auto & Home business. The company estimates these losses, after tax, to be between $160 million and $180 million due to severe storm activity in the United States during April and May 2011. These figures represent a substantial increase over the planned provision of $27 million for the two-month period, indicating an $133 million to $153 million after-tax impact above plan. The losses are attributed to a record number of tornadoes in April and widespread tornado damage in May, affecting multiple states including Alabama, Tennessee, Missouri, Minnesota, and Oklahoma. While these losses are substantial, it's important for investors to note that the Auto & Home business constituted only 7% of MetLife's net income available to common shareholders in the first quarter of 2011. This suggests that while the catastrophe events are impactful, the overall financial performance of the company may be partially buffered by its diversified business segments.

Key Highlights

  • 1MetLife estimates $160-$180 million in after-tax catastrophe losses from April-May 2011 storms.
  • 2These losses are $133-$153 million higher than the planned provision of $27 million for the period.
  • 3The losses are a result of severe storm activity, including a record number of tornadoes in April and widespread damage in May.
  • 4Affected states include Alabama, Tennessee, Missouri, Minnesota, and Oklahoma.
  • 5The company's Auto & Home business represented 7% of net income available to common shareholders in Q1 2011.

Frequently Asked Questions

This 8-K filing is to disclose significant estimated catastrophe losses in MetLife's Auto & Home business due to severe storm activity in the United States during April and May 2011.

The estimated after-tax catastrophe losses range from $160 million to $180 million, which is a significant increase over the planned provision. However, the Auto & Home business accounted for only 7% of MetLife's net income available to common shareholders in the first quarter of 2011, suggesting a limited impact on the company's total profitability.

The losses are attributed to a record number of tornadoes in April 2011 and three major catastrophes in May 2011, which caused severe tornado damage across multiple states including Missouri, Minnesota, and Oklahoma.

The weather events that led to these estimated losses occurred during April and May of 2011.