Advertise Now
  Home > Car Insurance News > MetLife Announces Fourth Quarter And Full Year 2005 Results

MetLife Announces Fourth Quarter And Full Year 2005 Results

Advertising Information for covermecarinsurance
4th Quarter Net Income Available to Common Shareholders of $0.88
Per Diluted Common Share, up 29%
4th Quarter Operating Earnings Available to Common Shareholders of $1.04
Per Diluted Common Share, up 18%

Record 2005 Net Income Available to Common Shareholders of $6.16
Per Diluted Common Share, up 69%
Record 2005 Operating Earnings Available to Common Shareholders of $4.33
Per Diluted Common Share, up 24%

NEW YORK, February 9, 2006 – MetLife, Inc. (NYSE: MET) today reported fourth quarter 2005 net income available to common shareholders of $677 million, or $0.88 per diluted common share, compared with $511 million, or $0.68 per diluted common share, for the fourth quarter of 2004. The company also reported that net income available to common shareholders for 2005 was a record $4.65 billion, or $6.16 per diluted common share, compared with $2.76 billion, or $3.65 per diluted common share, for 2004.

For the three months ended December 31,
For the year ended
December 31,

2005
2004

2005
2004

( in millions,
except per diluted common share data)

Net income available to common shareholders
$677
$511
$4,651
$2,758

Net income available to common shareholders
per diluted common share
$0.88
$0.68
$6.16
$3.65

Operating earnings available to common
shareholders1
$799
$660

$3,271
$2,642

Operating earnings available to common
shareholders per diluted common share1
$1.04
$0.88

$4.33
$3.50

Book value per diluted common
share
$35.19
$30.53

$35.83
$30.23

Book value per diluted common share,
excluding accumulated other comprehensive
income1
$32.70
$26.57

$33.29
$26.32

(1) Operating earnings available to common shareholders, operating earnings available to common shareholders per diluted common share and book value per diluted common share (excluding accumulated other comprehensive income) are not calculated based on generally accepted accounting principles ("GAAP"). Information regarding non-GAAP financial measures in this press release and the reconciliation of them to GAAP measures are provided in the Non-GAAP and Other Financial Disclosures section below, as well as in the tables that accompany this release.

Fourth Quarter Highlights

Earned total premiums, fees and other revenues of $7.8 billion, a 13% increase over the prior year period
Annuity deposits reached $3.6 billion, an increase of 39% over the prior year period
Operating earnings available to common shareholders for the fourth quarter of 2005 were $799 million, or $1.04 per diluted common share, compared with $660 million, or $0.88 per diluted common share, for the prior year period.

"In 2005, MetLife once again demonstrated its ability to deliver strong results as we generated record full year net income and operating earnings," said Robert H. Benmosche, chairman and chief executive officer of MetLife, Inc. "In addition to reaching our financial targets, we completed and integrated the acquisition of Travelers Life & Annuity and substantially all of Citigroup’s international insurance businesses. With strong business fundamentals, leading market positions and a multitude of opportunities to leverage our strong brand in the marketplace, MetLife is well positioned to achieve further growth and success."

Full Year Highlights

Increased total premiums, fees and other revenues to $30 billion, up 14% from the prior year
Grew book value per diluted common share, excluding accumulated other comprehensive income, 26% from the prior year to $33.29 per diluted common share
Achieved record operating earnings available to common shareholders in Institutional Business, Individual Business, Auto & Home and International
Operating earnings available to common shareholders for 2005 were $3.27 billion, or $4.33 per diluted common share, compared with $2.64 billion, or $3.50 per diluted common share, for 2004.

Fourth Quarter Segment Overview
Reconciliations of segment net income available to common shareholders to segment operating earnings available to common shareholders are provided in the tables that accompany this release.

During the quarter, MetLife had $64 million of expenses related to the Travelers integration.

Institutional Business Earnings up 26%
Institutional Business operating earnings available to common shareholders in the fourth quarter of 2005 were $389 million, compared with $309 million in the prior year period. During the quarter, group life earnings increased 24% largely due to business growth across the majority of products and favorable underwriting and investment results. Growth in the asset base for retirement & savings, due in large part to the Travelers acquisition, as well as higher net investment income, also contributed to the earnings growth in the segment. This was partially offset by an adjustment to deferred policy acquisition costs in the long-term care business.

During the quarter, group life premiums, fees and other revenues grew 6% over the prior year period primarily due to sales growth and business retention. Retirement & savings net investment income grew 53% compared to the prior year period largely due to the Travelers acquisition and an increase in the asset base. In addition, non-medical health premiums, fees and other revenues increased 11% over the prior year period primarily due to continued growth across all product lines.

Individual Business Earnings up 52%
Individual Business operating earnings available to common shareholders were $314 million in the fourth quarter of 2005, compared with $207 million in the prior year period. The strong growth in the segment was driven by the Travelers acquisition, as well as continued growth in the business and favorable mortality. Fees for investment-type products within the annuity business nearly doubled compared with the prior year period as a result of growth in the separate account assets. Annuity results also benefited from strong investment performance. In addition, combined life results increased 18% largely due to growth in the business and favorable mortality. Total first year life premiums and deposits were up 61%, reflecting broader distribution, largely due to the Travelers acquisition.

In connection with MetLife’s acquisition of Travelers, the company has performed reviews of Travelers underwriting criteria in its effort to refine its estimated fair values for the purchase price allocation. As a result of these reviews and actuarial analyses, and to be consistent with MetLife’s existing reserving methodologies, the company has established an excess mortality reserve on a specific group of policies. This resulted in an adjustment to the purchase price allocation, an increase to goodwill of $234 million, net of income taxes, and a charge of $20 million, net of income taxes, to fourth quarter results. The company expects to complete its reviews and refine its estimate of the excess mortality reserve by June 30, 2006.

Auto & Home Earnings up 29%
Auto & Home operating earnings available to common shareholders were $81 million in the fourth quarter of 2005, compared with $63 million in the prior year period. Auto & Home’s results benefited from an improved non-catastrophe combined ratio of 83.0% including favorable claim development related to prior accident years. These factors were partially offset by higher catastrophe losses and reinsurance reinstatement premiums of $42 million, net of income taxes, which included $32 million, net of income taxes, related to Hurricane Wilma.

International Earnings up 60%
International operating earnings available to common shareholders were $48 million in the fourth quarter of 2005, compared with $30 million in the prior year period. International earnings increased due to continued business growth in Latin America and Asia Pacific, as well as a one-time $13 million tax benefit. The earnings increase was partially offset by higher one-time expenses, including certain costs of integrating the CitiInsurance operations.

Investments
During the fourth quarter of 2005, corporate joint venture income, commercial mortgage prepayment fees and corporate bond prepayment fees were at higher than normal levels.

Earnings Conference Call
MetLife will hold its fourth quarter and full year 2005 earnings conference call and audio Webcast on Friday, February 10, 2006, from 8:00 to 9:00 a.m. (ET). The conference call will be available live via telephone and the Internet. To listen to the conference call over the Internet, visit metlife.com (through a link on the Investor Relations page). Those who want to listen to the call on the telephone or via the Internet should dial in or go to the Web site at least fifteen minutes prior to the call to register, and/or download and install any necessary audio software.

Non-GAAP and Other Financial Disclosures
MetLife analyzes its performance using so-called non-GAAP measures, including operating earnings available to common shareholders and operating earnings available to common shareholders per diluted common share. Operating earnings available to common shareholders is defined as GAAP net income, excluding net investment gains and losses, net of income taxes, adjustments related to net investment gains and losses, net of income taxes, the impact from the cumulative effect of a change in accounting, net of income taxes, and discontinued operations other than discontinued real estate, net of income taxes, less preferred stock dividends which are recorded in Corporate & Other. Scheduled settlement payments on derivative instruments not qualifying for hedge accounting treatment are included in operating earnings available to common shareholders. Operating earnings available to common shareholders per diluted common share is calculated by dividing operating earnings available to common shareholders by the number of weighted average diluted common shares outstanding for the period indicated. MetLife believes these measures enhance the understanding and comparability of its performance by excluding net investment gains and losses, net of income taxes, and adjustments related to net investment gains and losses, net of income taxes, both of which can fluctuate significantly from period to period, the impact of the cumulative effect of a change in accounting, net of income taxes, and discontinued operations other than discontinued real estate, net of income taxes, thereby highlighting the results from operations and the underlying profitability drivers of the business. Operating earnings available to common shareholders and operating earnings available to common shareholders per diluted common share should not be viewed as substitutes for GAAP net income available to common shareholders and GAAP net income available to common shareholders per diluted common share, respectively.

For the three months ended December 31,

2005

2004

(in millions,
except per diluted common share data)

Net income available to common shareholders
$677
$0.88
$511
$0.68

Net investment (gains) loesses, net of income
taxes1
146
0.20

138
0.18

Adjustments related to net
investment (gains) losses, net of
income taxes2
(12)
(0.02)

3
0.01

Discontinued operations, net of income taxes3
(12)
(0.02)

8
0.01

Operating earnings available to common
shareholders
$799
$1.04
$660
$0.88


Book value per diluted common
share
$35.19


$30.53


Accumulated other comprehensive income per
diluted common share
$(2.49)


$(3.96)

Book value per diluted common share,
excluding accumulated other comprehensive
income
$32.70


$26.57


(1) Net investment (gains) losses, net of income taxes, includes (gains) losses on sales of real estate and real estate joint ventures related to discontinued operations of $(100) million and $(2) million for the three months ended December 31, 2005 and 2004, respectively, and excludes (gains) losses of $(23) million and $(2) million for the three months ended December 31, 2005 and 2004, respectively, from scheduled settlement payments on derivative instruments not qualifying for hedge accounting treatment.

(2) Adjustments related to net investment (gains) losses, net of income taxes, include amortization of deferred policy acquisition costs, adjustments to the policyholder dividend obligation and amounts allocable to certain participating contracts.

(3) Discontinued operations, net of income taxes, excludes (gains) losses on sales of real estate and real estate joint ventures related to discontinued operations.


For the year ended December 31,

2005

2004

(in millions,
except per diluted common share data)

Net income available to common shareholders
$4,651
$6.16
$2,758
$3.65

Net investment (gains) loesses, net of income
taxes1
(1,257)
(1.67)

(158)
(0.21)

Adjustments related to net
investment (gains) losses, net of
income taxes2
45
0.06

(34)
(0.04)

Cummalative effect of a change in accounting --
--

86
0.11

Discontinued operations, net of income taxes3
(168)
(0.22)

(10)
(0.01)

Operating earnings available to common
shareholders
$3,271
$4.33
$2,642
$3.50


Book value per diluted common
share
$35.83


$30.23


Accumulated other comprehensive income per
diluted common share
$(2.54)


$(3.91)

Book value per diluted common share,
excluding accumulated other comprehensive
income
$33.29


$26.32


(1) Net investment (gains) losses, net of income taxes, includes (gains) losses on sales of real estate and real estate joint ventures related to discontinued operations of $(0) million and $(0) million for the three months ended December 31, 2005 and 2004, respectively, and excludes (gains) losses of $(0) million and $(0) million for the three months ended December 31, 2005 and 2004, respectively, from scheduled settlement payments on derivative instruments not qualifying for hedge accounting treatment.

(2) Adjustments related to net investment (gains) losses, net of income taxes, include amortization of deferred policy acquisition costs, adjustments to the policyholder dividend obligation and amounts allocable to certain participating contracts.

(3) Discontinued operations, net of income taxes, excludes (gains) losses on sales of real estate and real estate joint ventures related to discontinued operations.


This release contains statements which constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to trends in the operations and financial results and the business and the products of the company and its subsidiaries, as well as other statements including words such as "anticipate," "believe," "plan," "estimate," "expect," "intend" and other similar expressions. Forward-looking statements are made based upon management’s current expectations and beliefs concerning future developments and their potential effects on the company. Such forward-looking statements are not guarantees of future performance.

Actual results may differ materially from those included in the forward-looking statements as a result of risks and uncertainties including, but not limited to, the following: (i) changes in general economic conditions, including the performance of financial markets and interest rates; (ii) heightened competition, including with respect to pricing, entry of new competitors and the development of new products by new and existing competitors; (iii) unanticipated changes in industry trends; (iv) the company’s primary reliance, as a holding company, on dividends from its subsidiaries to meet debt payment obligations and the applicable regulatory restrictions on the ability of the subsidiaries to pay such dividends; (v) deterioration in the experience of the "closed block" established in connection with the reorganization of Metropolitan Life Insurance Company; (vi) catastrophe losses; (vii) adverse results or other consequences from litigation, arbitration or regulatory investigations; (viii) regulatory, accounting or tax changes that may affect the cost of, or demand for, the company’s products or services; (ix) downgrades in the company’s and its affiliates’ claims paying ability, financial strength or credit ratings; (x) changes in rating agency policies or practices; (xi) discrepancies between actual claims experience and assumptions used in setting prices for the company’s products and establishing the liabilities for the company’s obligations for future policy benefits and claims; (xii) discrepancies between actual experience and assumptions used in establishing liabilities related to other contingencies or obligations; (xiii) the effects of business disruption or economic contraction due to terrorism or other hostilities; (xiv) the company’s ability to identify and consummate on successful terms any future acquisitions, and to successfully integrate acquired businesses with minimal disruption; and (xv) other risks and uncertainties described from time to time in the company’s filings with the Securities and Exchange Commission, including its S-1 and S-3 registration statements. The company specifically disclaims any obligation to update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.

MetLife, Inc. is a leading provider of insurance and other financial services to millions of individual and institutional customers throughout the United States. Through its subsidiaries and affiliates, MetLife, Inc. offers life insurance, annuities, automobile and homeowner’s insurance and retail banking services to individuals, as well as group insurance, reinsurance and retirement and savings products and services to corporations and other institutions. Outside the U.S., the MetLife companies have direct insurance operations in Asia Pacific, Latin America and Europe.

Back to Car Insurance News

 
 
Infinit-i