MetLife 2003 Annual Report Download - page 4

Cautionary Note Regarding 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 results or other
consequences from litigation, arbitration or regulatory investigations; (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 credit 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; (xiv) the Company’s ability to identify and consummate on successful terms any future
acquisitions, and to successfully integrate acquired businesses with minimal disruption; and (xv) 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, 2003, 2002, and 2001 and at December 31, 2003 and 2002 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, 2000 and 1999 and
at December 31, 2001, 2000 and 1999 has been derived from the Company’s audited consolidated financial statements not included elsewhere herein.
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, 2003.
For the Years Ended December 31,
2003 2002 2001 2000 1999
(Dollars in millions)
Statements of Income Data
Revenues:
Premiums ************************************************************* $20,673 $19,077 $17,212 $16,317 $12,084
Universal life and investment-type product policy fees ************************ 2,496 2,147 1,889 1,820 1,437
Net investment income(1) ************************************************ 11,636 11,261 11,187 10,986 9,436
Other revenues ******************************************************** 1,342 1,332 1,507 2,229 1,861
Net investment gains (losses)(1)(2)(3)(7) ************************************ (358) (751) (579) (390) (70)
Total revenues(4)(6) *********************************************** 35,789 33,066 31,216 30,962 24,748
Expenses:
Policyholder benefits and claims(2)(7) ************************************** 20,848 19,523 18,454 16,893 13,100
Interest credited to policyholder account balances *************************** 3,035 2,950 3,084 2,935 2,441
Policyholder dividends*************************************************** 1,975 1,942 2,086 1,919 1,690
Payments to former Canadian policyholders(5)******************************* — — — 327 —
Demutualization costs *************************************************** — — — 230 260
Other expenses(1)(2)(8)************************************************** 7,301 7,015 7,022 7,401 6,210
Total expenses(4)(6)*********************************************** 33,159 31,430 30,646 29,705 23,701
Income from continuing operations before provision for income taxes ************* 2,630 1,636 570 1,257 1,047
Provision for income taxes(1)(9) ********************************************* 687 502 204 405 511
Income from continuing operations ****************************************** 1,943 1,134 366 852 536
Income from discontinued operations, net of income taxes(1) ******************** 300 471 107 101 81
Income before cumulative effect of change in accounting *********************** 2,243 1,605 473 953 617
Cumulative effect of change in accounting, net of income taxes****************** (26)————
Net income************************************************************** $ 2,217 $ 1,605 $ 473 $ 953 $ 617
Net income after April 7, 2000 (date of demutualization)************************* $ 1,173
MetLife, Inc. 1