Index to Management's Discussion and Analysis of Financial Condition and Results of Operations
Page Forward-Looking Statements and Other Financial Information 49 Executive Summary 49 Industry Trends 51 Summary of Critical Accounting Estimates 53Economic Capital 53 Acquisitions and Dispositions 53 Results of Operations 55 Investments 72 Derivatives 86 Off-Balance Sheet Arrangements 88 Policyholder Liabilities 89 Liquidity and Capital Resources 97 Adoption of New Accounting Pronouncements 106 Future Adoption of New Accounting Pronouncements 106 Non-GAAP and Other Financial Disclosures 107 80
-------------------------------------------------------------------------------- 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, 2020 (the "2020 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" and "- Investments" 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. COVID-19 Pandemic We continue to closely monitor developments relating to the novel coronavirus COVID-19 pandemic (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 controls over financial reporting and disclosure controls and procedures. We continue to grant certain accommodations to our customers, borrowers and lessees, including (i) relaxing claim documentation requirements for disability claims, (ii) payment deferrals and other loan modifications on certain commercial, agricultural and residential mortgage loans, and (iii) certain operating and direct financing lease concessions. See Note 6 of the Notes to the Interim Condensed Consolidated Financial Statements for further information regarding COVID-19 Pandemic-related mortgage loan and lease concessions. See also "- 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 endedMarch 31, 2021 , adjusted premiums, fees and other revenues, net of foreign currency fluctuations, increased compared to the prior period driven by growth in ourU.S. segment, which included the acquisition ofVersant Health Inc. ("Versant Health "), largely offset by the disposition ofMetropolitan Property and Casualty Insurance Company and certain of its wholly-owned subsidiaries (collectively, "MetLife P&C"). Strong returns in our private equity portfolio resulted in improved investment yields, positive net flows drove an increase in our investment portfolio and interest credited expenses were lower. However, changes in long-term interest rates drove an unfavorable change in net derivative gains (losses). Underwriting experience was unfavorable and reflected impacts from the COVID-19 Pandemic. 81
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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
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(1)Excludes Corporate & Other adjusted loss available to common shareholders of
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