MetLife 2002 Annual Report Download - page 5

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 the Registrant 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, financial strength or debt 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) discrepancies between actual experience and assumptions used in establishing liabilities related to
other contingencies or obligations; (xiii) the effects of business disruption or economic contraction due to terrorism or other hostilities; and (xiv) other risks
and uncertainties described from time to time in MetLife, Inc.’s filings with the U.S. 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 selected consolidated financial information for the
years ended December 31, 2002, 2001, and 2000 and at December 31, 2002 and 2001 has been derived from the Company’s audited consolidated
financial statements included elsewhere herein. The selected consolidated financial information for the years ended December 31, 1999 and 1998 and
at December 31, 2000, 1999 and 1998 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 have been prepared in conformity with GAAP. 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. Some previously reported
amounts have been reclassified to conform with the presentation at and for the year ended December 31, 2002.
For the Years Ended December 31,
2002 2001 2000 1999 1998
(Dollars in millions)
Statements of Income Data
Revenues:
Premiums ************************************************************* $19,086 $17,212 $16,317 $12,088 $11,503
Universal life and investment-type product policy fees ************************ 2,139 1,889 1,820 1,433 1,360
Net investment income(1) ************************************************ 11,329 11,255 11,024 9,464 9,856
Other revenues ******************************************************** 1,377 1,507 2,229 1,861 1,785
Net investment (losses) gains(1)(2)(3) ************************************** (784) (603) (390) (70) 2,021
Total revenues(3)(4) *************************************************** 33,147 31,260 31,000 24,776 26,525
Expenses:
Policyholder benefits and claims(5) **************************************** 19,523 18,454 16,893 13,100 12,638
Interest credited to policyholder account balances *************************** 2,950 3,084 2,935 2,441 2,711
Policyholder dividends*************************************************** 1,942 2,086 1,919 1,690 1,651
Payments to former Canadian policyholders(3)******************************* ——327——
Demutualization costs *************************************************** — — 230 260 6
Other expenses(6) ****************************************************** 7,061 7,022 7,401 6,210 7,544
Total expenses(3)(4)*************************************************** 31,476 30,646 29,705 23,701 24,550
Income from continuing operations before provision for income taxes ************* 1,671 614 1,295 1,075 1,975
Provision for income taxes(1)(7) ********************************************* 516 227 421 522 699
Income from continuing operations ****************************************** 1,155 387 874 553 1,276
Income from discontinued operations, net of income taxes(1) ******************** 450 86 79 64 67
Net income************************************************************** $ 1,605 $ 473 $ 953 $ 617 $ 1,343
Income from continuing operations after April 7, 2000 (date of demutualization) ***** $ 1,114
Net income after April 7, 2000 (date of demutualization)************************* $ 1,173
MetLife, Inc. 1