MetLife 2006 Annual Report Download - page 50

Liquidity Uses
The primary uses of liquidity of the Holding Company include debt service, cash dividends on common and preferred stock, capital
contributions to subsidiaries, payment of general operating expenses, acquisitions and the repurchase of the Holding Company’s common
stock.
Dividends. The table below presents declaration, record and payment dates, as well as per share and aggregate dividend amounts,
for the common stock:
Declaration Date Record Date Payment Date Per Share Aggregate
Dividend
(In millions, except per
share data)
October 24, 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . . November 6, 2006 December 15, 2006 $0.59 $450
October 25, 2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . November 7, 2005 December 15, 2005 $0.52 $394
Future common stock dividend decisions will be determined by the Holding Company’s Board of Directors after taking into consid-
eration factors such as the Company’s current earnings, expected medium- and long-term earnings, financial condition, regulatory capital
position, and applicable governmental regulations and policies. Furthermore, the payment of dividends and other distributions to the
Holding Company by its insurance subsidiaries is regulated by insurance laws and regulations.
Information on the declaration, record and payment dates, as well as per share and aggregate dividend amounts, for the Preferred
Shares is as follows:
Declaration Date Record Date Payment Date Series A Per Share Series A Aggregate Series B Per Share Series B Aggregate
Dividend
(In millions, except per share data)
November 15, 2006 . . . . . . . . . . . . . November 30, 2006 December 15, 2006 $0.4038125 $10 $0.4062500 $24
August 15, 2006 . . . . . . . . . . . . . . . August 31, 2006 September 15, 2006 $0.4043771 $10 $0.4062500 $24
May 16, 2006 . . . . . . . . . . . . . . . . . May 31, 2006 June 15, 2006 $0.3775833 $ 9 $0.4062500 $24
March 6, 2006 . . . . . . . . . . . . . . . . . February 28, 2006 March 15, 2006 $0.3432031 $ 9 $0.4062500 $24
November 15, 2005 . . . . . . . . . . . . . November 30, 2005 December 15, 2005 $0.3077569 $ 8 $0.4062500 $24
August 22, 2005 . . . . . . . . . . . . . . . August 31, 2005 September 15, 2005 $0.2865690 $ 7 $0.4017361 $24
See “— Subsequent Events.”
Affiliated Capital Transactions. During the years ended December 31, 2006 and 2005, the Holding Company invested an aggregate of
$1.8 billion and $904 million, respectively, in various affiliated transactions.
On December 12, 2005, RGA repurchased 1.6 million shares of its outstanding common stock at an aggregate price of $76 million
under an accelerated share repurchase agreement with a major bank. The bank borrowed the stock sold to RGA from third parties and
purchased the shares in the open market over the subsequent few months to return to the lenders. RGA would either pay or receive an
amount based on the actual amount paid by the bank to purchase the shares. These repurchases resulted in an increase in the Company’s
ownership percentage of RGA to approximately 53% at December 31, 2005 from approximately 52% at December 31, 2004. In February
2006, the final purchase price was determined, resulting in a cash settlement substantially equal to the aggregate cost. RGA recorded the
initial repurchase of shares as treasury stock and recorded the amount received as an adjustment to the cost of the treasury stock. At
December 31, 2006, the Company’s ownership was approximately 53% of RGA.
The Holding Company lends funds, as necessary, to its affiliates, some of which are regulated, to meet their capital requirements. Such
loans are included in loans to affiliates and consisted of the following at:
Affiliate Interest Rate Maturity Date 2006 2005
December 31,
(In millions)
Metropolitan Life . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.13% December 15, 2032 $ 400 $ 400
Metropolitan Life . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.13% January 15, 2033 100 100
Metropolitan Life . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.00% December 31, 2007 800 800
MetLifeInvestorsUSAInsuranceCompany ..................... 7.35% April1,2035 400 400
Total............................................. $1,700 $1,700
Debt Repayments. The Holding Company repaid a $500 million 5.25% senior note which matured on December 1, 2006 and a
$1,006 million 3.911% senior note which matured on May 15, 2005.
Share Repurchase. On October 26, 2004, the Holding Company’s Board of Directors authorized a $1 billion common stock
repurchase program, of which $216 million remained as of December 31, 2006. On February 27, 2007, the Holding Company’s Board
of Directors authorized an additional $1 billion common stock repurchase program. Upon the date of this authorization, the amount
remaining under these repurchase programs is approximately $1.2 billion. Under these authorizations, the Holding Company may purchase
its common stock from the MetLife Policyholder Trust, in the open market (including pursuant to the terms of a pre-set trading plan meeting
the requirements of Rule 10b5-1 under the Securities Exchange Act of 1934, as amended) and in privately negotiated transactions. As a
result of the acquisition of Travelers, the Holding Company had suspended its common stock repurchase activity. During the fourth quarter
of 2006, as announced, the Holding Company resumed its share repurchase program.
47MetLife, Inc.