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                           53
  Economic 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


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  Table of Contents
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, 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 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 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 ended March 31, 2021, 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, which included the acquisition of
Versant Health Inc. ("Versant Health"), largely offset by the disposition of
Metropolitan 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.
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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 March 31, 2021:


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(1)Excludes Corporate & Other adjusted loss available to common shareholders of $171 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 March 31, 2021 Compared with the Three Months Ended March 31, 2020

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