Index to Management's Discussion and Analysis of Financial Condition and Results of Operations



                                                                    Page
  Forward-Looking Statements and Other Financial Information         76
  Executive Summary                                                  76
  Industry Trends                                                    78
  Summary of Critical Accounting Estimates                           80
  Acquisitions and Dispositions                                      81
  Results of Operations                                              82
  Investments                                                        102
  Derivatives                                                        114
  Policyholder Liabilities                                           117
  Liquidity and Capital Resources                                    124
  Adopted Accounting Pronouncements                                  133
  Future Adoption of     Accounting Pronouncements                   133
  Non-GAAP and Other Financial Disclosures                           133
  Risk Management                                                    135
  Subsequent Events                                                  135


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Forward-Looking Statements and Other Financial Information

For purposes of this discussion, "MetLife," the "Company," "we," "our" and "us" refer to MetLife, Inc., a Delaware corporation incorporated in 1999, its subsidiaries and affiliates. This discussion should be read in conjunction with MetLife, Inc.'s Annual Report on Form 10-K for the year ended December 31, 2021 (the "2021 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 in the 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" and "- Investments" for reconciliations of historical non-GAAP financial measures to the most directly comparable GAAP measures.

Executive Summary

Overview

MetLife 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, the Middle East and Africa ("EMEA"); and MetLife 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.

COVID-19 Pandemic

We continue to closely monitor developments relating to the COVID-19 pandemic and assess its impact on our business. The COVID-19 pandemic continues to impact the global economy and financial markets and has caused volatility in the global equity, credit and real estate markets. See "- Industry Trends - Financial and Economic Environment." We have implemented risk management and business continuity plans and taken preventive measures and other precautions, such as employee business travel restrictions and remote work arrangements which, to date, have enabled us to maintain our critical business processes, customer service levels, relationships with key vendors, financial reporting systems, internal control over financial reporting and disclosure controls and procedures.

See "- Results of Operations - Segment Results and Corporate & Other" for further information regarding the effect of the COVID-19 pandemic on our businesses.

Current Period Highlights

During the three months ended March 31, 2022, adjusted premiums, fees and other revenues, net of foreign currency fluctuations, increased compared to the prior period driven by growth in our U.S. segment, primarily in our Retirement and Income Solutions ("RIS") business. Equity market returns had a less favorable impact on our private equity funds and hedge funds compared to the prior period and resulted in lower investment yields, however, positive net flows drove an increase in our investment portfolio. Changes in long-term interest rates and key equity indexes drove a favorable change in net derivative gains (losses). Current period results include net investment losses versus gains in the prior period. Underwriting experience was favorable and reflected a decline in COVID-19 related claims.


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The following represents segment level results and percentage contributions to total segment level adjusted earnings available to common shareholders for the three months ended March 31, 2022:


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(1)Excludes Corporate & Other adjusted loss available to common shareholders of $117 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.


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Three Months Ended March 31, 2022 Compared with the Three Months Ended March 31, 2021

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