MetLife 2001 Annual Report Download - page 4

Cautionary Statement on Forward-Looking Statements
This Annual Report, including the Management’s Discussion and Analysis of Financial Condition and Results of Operations, contains statements
which constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements relating to
trends in the operations and financial results and the business and the products of MetLife, Inc. and its subsidiaries, as well as other statements including
words such as ‘‘anticipate,’’ ‘‘believe,’’ ‘‘plan,’’ ‘‘estimate,’’ ‘‘expect,’’ ‘‘intend’’ and other similar expressions. ‘‘MetLife’’ or the ‘‘Company’’ refers to MetLife,
Inc., a Delaware corporation (the ‘‘Holding Company’’), and its subsidiaries, including Metropolitan Life Insurance Company (‘‘Metropolitan Life’’). Forward-
looking statements are made based upon management’s current expectations and beliefs concerning future developments and their potential effects on
the Company. Such forward-looking statements are not guarantees of future performance.
Actual results may differ materially from those included in the forward-looking statements as a result of risks and uncertainties including, but not
limited to, the following: (i) changes in general economic conditions, including the performance of financial markets and interest rates; (ii) heightened
competition, including with respect to pricing, entry of new competitors and the development of new products by new and existing competitors;
(iii) unanticipated changes in industry trends; (iv) MetLife, Inc.’s primary reliance, as a holding company, on dividends from its subsidiaries to meet debt
payment obligations and the applicable regulatory restrictions on the ability of the subsidiaries to pay such dividends; (v) deterioration in the experience of
the ‘‘closed block’’ established in connection with the reorganization of Metropolitan Life; (vi) catastrophe losses; (vii) adverse litigation or arbitration
results; (viii) regulatory, accounting or tax changes that may affect the cost of, or demand for, the Company’s products or services; (ix) downgrades in the
Company’s and its affiliates’ claims paying ability or financial strength ratings; (x) changes in rating agency policies or practices; (xi) discrepancies between
actual claims experience and assumptions used in setting prices for the Company’s products and establishing the liabilities for the Company’s obligations
for future policy benefits and claims; (xii) the effects of business disruption or economic contraction due to terrorism or other hostilities; and (xiii) other risks
and uncertainties described from time to time in MetLife, Inc.’s filings with the Securities and Exchange Commission, including its S-1 and S-3 registration
statements. The Company specifically disclaims any obligation to update or revise any forward-looking statement, whether as a result of new information,
future developments or otherwise.
Selected Financial Data.
The following table sets forth selected consolidated financial information for the Company. The consolidated financial information for the years ended
December 31, 2001, 2000 and 1999 and at December 31, 2001 and 2000 has been derived from the Company’s audited consolidated financial
statements included elsewhere herein. The consolidated financial information for the years ended December 31, 1998 and 1997 and at December 31,
1999, 1998 and 1997 has been derived from the Company’s audited consolidated financial statements not included elsewhere herein. The following
consolidated statements of income and consolidated balance sheet data, other than the statutory data, have been prepared in conformity with
accounting principles generally accepted in the United States of America (‘‘GAAP’’). The statutory data have been derived from Metropolitan Life’s Annual
Statements filed with insurance regulatory authorities and have been prepared in accordance with statutory accounting practices. The following
information should be read in conjunction with and is qualified in its entirety by the information contained in ‘‘Management’s Discussion and Analysis of
Financial Condition and Results of Operations,’’ and the consolidated financial statements appearing elsewhere herein.
For the Years Ended December 31,
2001 2000 1999 1998 1997
(Dollars in millions)
Statements of Income Data
Revenues:
Premiums ************************************************************* $17,212 $16,317 $12,088 $11,503 $11,278
Universal life and investment-type product policy fees ************************ 1,889 1,820 1,433 1,360 1,418
Net investment income(1) ************************************************ 11,923 11,768 9,816 10,228 9,491
Other revenues ******************************************************** 1,507 2,229 1,861 1,785 1,236
Net realized investment (losses) gains(2)************************************ (603) (390) (70) 2,021 787
Total revenues(3)(4) 31,928 31,744 25,128 27,106 24,465
Expenses:
Policyholder benefits and claims(5) **************************************** 18,454 16,893 13,100 12,638 12,403
Interest credited to policyholder account balances *************************** 3,084 2,935 2,441 2,711 2,878
Policyholder dividends*************************************************** 2,086 1,919 1,690 1,651 1,742
Payments to former Canadian policyholders(3)******************************* — 327 — — —
Demutualization costs *************************************************** — 230 260 6 —
Other expenses(1)(6) **************************************************** 7,565 8,024 6,462 7,810 5,516
Total expenses(3)(4) 31,189 30,328 23,953 25,025 22,794
Income before provision for income taxes ************************************ 739 1,416 1,175 2,081 1,671
Provision for income taxes(7) *********************************************** 266 463 558 738 468
Net income************************************************************** $ 473 $ 953 $ 617 $ 1,343 $ 1,203
Net income after April 7, 2000 (date of demutualization)************************* $ 1,173
MetLife, Inc. 1