Index to Management's Discussion and Analysis of Financial Condition and Results
of Operations Page Forward-Looking Statements and Other Financial Information 93 Executive Summary 93 Industry Trends 97 Summary of Critical Accounting Estimates 101Economic Capital 102 Acquisitions and Dispositions 103 Results of Operations 104 Investments 128 Derivatives 144 Off-Balance Sheet Arrangements 146 Policyholder Liabilities 147 Liquidity and Capital Resources 156 Adoption of New Accounting Pronouncements 166 Future Adoption of New Accounting Pronouncements 166 Non-GAAP and Other Financial Disclosures 166 Subsequent Events 167 92
--------------------------------------------------------------------------------
Table of Contents
Forward-Looking Statements and Other Financial Information For purposes of this discussion, "MetLife ," the "Company," "we," "our" and "us" refer toMetLife, Inc. , aDelaware corporation incorporated in 1999, its subsidiaries and affiliates. This discussion should be read in conjunction withMetLife, Inc.'s Annual Report on Form 10-K for the year endedDecember 31, 2019 (the "2019 Annual Report"), the cautionary language regarding forward-looking statements included below, the "Risk Factors" set forth in Part II, Item 1A, and the additional risk factors referred to therein, "Quantitative and Qualitative Disclosures About Market Risk" and the Company's interim condensed consolidated financial statements included elsewhere herein. This Management's Discussion and Analysis of Financial Condition and Results of Operations may contain or incorporate by reference information that includes or is based upon forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. See "Note Regarding Forward-Looking Statements" for cautionary language regarding forward-looking statements. This Management's Discussion and Analysis of Financial Condition and Results of Operations includes references to our performance measures, adjusted earnings and adjusted earnings available to common shareholders, that are not based on accounting principles generally accepted inthe United States of America ("GAAP"). See "- Non-GAAP and Other Financial Disclosures" for definitions and a discussion of these and other financial measures, and "- Results of Operations" for reconciliations of historical non-GAAP financial measures to the most directly comparable GAAP measures. Executive Summary OverviewMetLife is one of the world's leading financial services companies, providing insurance, annuities, employee benefits and asset management.MetLife is organized into five segments:U.S. ;Asia ;Latin America ;Europe , theMiddle East andAfrica ("EMEA"); andMetLife Holdings . In addition, the Company reports certain of its results of operations in Corporate & Other. See Note 2 of the Notes to the Interim Condensed Consolidated Financial Statements for further information on the Company's segments and Corporate & Other. Management continues to evaluate the Company's segment performance and allocated resources and may adjust related measurements in the future to better reflect segment profitability. See "- Consolidated Company Outlook" for a discussion of the impact of the novel coronavirus COVID-19 pandemic (the "COVID-19 Pandemic") on the Company. Current Period Highlights During the three months endedJune 30, 2020 , overall adjusted premiums, fees and other revenues, net of foreign currency fluctuations, declined compared to the second quarter of 2019 in the majority of our segments, and most significantly in ourU.S. segment, due, in large part, to the impacts of the COVID-19 Pandemic and related restrictions. Positive net flows drove an increase in our investment portfolio; however, investment yields substantially declined. Expenses, including interest credited expenses, also declined. Underwriting experience was favorable compared to the prior period and included both positive and negative impacts of the COVID-19 Pandemic and related restrictions. A significant unfavorable change in net derivative gains (losses) was primarily the result of increases in interest rates and key equity markets. 93
--------------------------------------------------------------------------------
Table of Contents
The following represents segment level results and percentage contributions to
total segment level adjusted earnings available to common shareholders for the
three months ended
[[Image Removed: segmentcharta10.jpg]]
__________________
(1) Excludes Corporate & Other adjusted loss available to common shareholders of$289 million . (2) Consistent with GAAP guidance for segment reporting, adjusted earnings is our GAAP measure of segment performance. For additional information, see Note 2 of the Notes to the Interim Condensed Consolidated Financial Statements.
Three Months Ended
© Edgar Online, source