METLIFE INC – 10-Q – Management's Discussion and Analysis of Financial Condition and Results of Operations

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

                                                                    Page
  Forward-Looking Statements and Other Financial Information         83
  Executive Summary                                                  83
  Industry Trends                                                    86
  Summary of Critical Accounting Estimates                           89
  Acquisitions and Dispositions                                      90
  Results of Operations                                              92
  Investments                                                        117
  Derivatives                                                        129
  Policyholder Liabilities                                           132
  Liquidity and Capital Resources                                    139
  Adopted Accounting Pronouncements                                  147
  Future Adoption of     Accounting Pronouncements                   148
  Non-GAAP and Other Financial Disclosures                           148
  Risk Management                                                    149


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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 September 30, 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. An unfavorable change in
net investment gains (losses) primarily reflects current period losses versus
prior period gains on sales, partially offset by the prior period loss on the
sale of our wholly-owned Argentinian subsidiary, MetLife Seguros S.A. ("MetLife
Seguros"). Changes in long-term interest rates drove an unfavorable change in
net derivative gains (losses). Underwriting experience was favorable and
reflected an overall decline in COVID-19 related claims. Our annual actuarial
assumption review resulted in a gain in the current period versus a charge in
the prior period. In addition, the current period includes the favorable impact
from a reinsurance recapture and the unfavorable impact from model refinements.

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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 September 30, 2022:

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(1)Excludes Corporate & Other adjusted loss available to common shareholders of
$265 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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