What are the primary reasons for the expected charges in MetLife's third quarter 2011 results?

MetLife is reporting several non-recurring charges. These include an adjustment to life insurance reserves to identify deceased policyholders, higher-than-anticipated catastrophe losses in its Auto & Home segment due to severe weather like Hurricane Irene, and a charge related to the liquidation of Executive Life Insurance Company of New York (ELNY).

How significant are these charges to MetLife's earnings?

The combined after-tax charges are substantial. The reserve adjustment is estimated between $115 million and $135 million, catastrophe losses between $80 million and $100 million, and the ELNY charge is approximately $40 million. While these are one-time events, they will negatively impact reported third-quarter earnings.

Are these charges expected to impact MetLife's ongoing business operations or financial stability?

These are classified as non-recurring charges and are not expected to reflect the company's ongoing operational performance. The reserve adjustment is a proactive accounting measure, the catastrophe losses are event-driven, and the ELNY charge is related to a specific liquidation event. MetLife has a robust financial position, and these charges are being disclosed to provide clarity on the quarterly results.

When will investors be able to get more details about these charges and the company's overall performance?

MetLife will issue its third quarter 2011 earnings press release after market close on Thursday, October 27, 2011. The company will then hold an investor conference call and webcast on Friday, October 28, 2011, at 8:00 a.m. ET, where management will discuss these items and answer questions.

METLIFE INC 8-K: Regulation FD

Summary

MetLife, Inc. (MET) has filed an 8-K report detailing significant non-recurring charges anticipated for the third quarter of 2011. These charges are expected to impact the company's financial results, primarily due to adjustments in life insurance reserves, higher-than-expected catastrophe losses in its Auto & Home business, and a contribution related to the liquidation plan for Executive Life Insurance Company of New York (ELNY). Investors should note these as one-time events that will affect reported earnings for the quarter but may not reflect the ongoing operational performance of the business. The reserve adjustment is a proactive measure to identify potential unpaid claims for deceased policyholders, while the elevated catastrophe losses are attributed to severe weather events like Hurricane Irene. The ELNY charge stems from industry support obligations related to the company's liquidation. MetLife has scheduled its third quarter earnings call for October 28, 2011, where further details and management commentary on these items will likely be provided.

Key Highlights

1MetLife expects to incur a pre-tax charge of $115 million to $135 million (after-tax) for adjusting life insurance reserves related to identifying deceased policyholders.
2The company anticipates $80 million to $100 million (after-tax) in catastrophe losses for its Auto & Home business, significantly exceeding its planned provision.
3These catastrophe losses are primarily due to severe storm activity, including Hurricane Irene.
4MetLife expects a net charge of approximately $40 million (after-tax) related to the liquidation plan of Executive Life Insurance Company of New York (ELNY).
5These identified items are considered non-recurring charges for the third quarter of 2011.
6The company will release its third quarter 2011 earnings on October 27, 2011, followed by an investor conference call on October 28, 2011.

METLIFE INC 8-K Report, Regulation FD Disclosure (Oct 6, 2011)

Summary

Key Highlights

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