What is the main purpose of this 8-K filing?

The primary purpose of this 8-K filing is to furnish slide presentations and a press release that MetLife, Inc. presented and issued on December 5, 2011, during their year-end investor conference call. These materials provide updates on the company's 2012 guidance and anticipated 2011 financial results.

What is ASU 2010-26 and how will it affect MetLife?

ASU 2010-26 is a new accounting standard from the Financial Accounting Standards Board (FASB) that changes how insurance companies account for deferred acquisition costs (DAC). It mandates that only costs directly tied to successfully acquiring new or renewed insurance contracts can be capitalized as DAC; all other acquisition-related costs must be expensed as incurred. MetLife plans to adopt this standard on January 1, 2012, which is expected to reduce its reported DAC by $3.1 billion to $3.9 billion and its total equity by $2.1 billion to $2.6 billion (net of tax).

Will the adoption of ASU 2010-26 impact MetLife's past financial performance?

Yes, MetLife plans to apply ASU 2010-26 retrospectively to all prior periods presented in its consolidated financial statements. This retrospective application is expected to result in a reduction of prior period earnings, in addition to the impact on the balance sheet at the time of adoption.

Are the financial figures provided in the exhibits definitive?

The 8-K filing states that the actual impact of adopting ASU 2010-26 may differ from the estimates provided. The final numbers will depend on future financial market performance, updates to DAC assumptions, and actual sales results.

METLIFE INC 8-K: Earnings & Results & Regulation FD

Summary

MetLife, Inc. (MET) filed an 8-K on December 5, 2011, primarily to furnish slide presentations and a press release related to their year-end investor conference call. These documents contain information about the company's 2012 guidance and expected 2011 financial results, though the specifics of this guidance are not detailed within the 8-K itself but are referenced as being in the exhibits. The most significant disclosure within the 8-K pertains to MetLife's planned adoption of new accounting guidance, ASU 2010-26, concerning deferred acquisition costs (DAC). This new guidance, effective January 1, 2012, will restrict the capitalization of acquisition costs to those directly related to successful contract acquisition, requiring other related costs to be expensed. MetLife anticipates this change will significantly reduce its reported DAC and total equity upon adoption.

Key Highlights

1MetLife is furnishing investor presentations and a press release regarding its 2012 guidance and expected 2011 results on December 5, 2011.
2The company will adopt new accounting guidance (ASU 2010-26) for deferred acquisition costs (DAC) effective January 1, 2012.
3ASU 2010-26 restricts capitalization of DAC to costs directly related to successful contract acquisition; other costs will be expensed.
4MetLife estimates a reduction in DAC by $3.1 billion to $3.9 billion due to the new guidance.
5Total equity is expected to decrease by approximately $2.1 billion to $2.6 billion (net of tax) upon adoption of the new accounting standard.
6The company expects a reduction in prior period earnings due to the retrospective application of ASU 2010-26.
7The full financial impacts are subject to market performance, assumption updates, and sales.

METLIFE INC 8-K Report, Financial Results (Dec 5, 2011)

Summary

Key Highlights

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