MetLife 2013 Annual Report Download - page 12

the surviving entity. The Mergers are expected to occur in the fourth quarter of 2014, subject to regulatory approvals. See “Management’s Discussion
and Analysis of Financial Condition and Results of Operations — Executive Summary” for further information on the Mergers.
Management continues to evaluate the Company’s segment performance and allocated resources and may adjust related measurements in the
future to better reflect segment profitability. For example, starting in the first quarter of 2013, the Latin America segment includes U.S. sponsored direct
business, comprised of group and individual products sold through sponsoring organizations and affinity groups. Products included are life, dental,
group short- and long-term disability, accidental death & dismemberment (“AD&D”) coverages, property & casualty and other accident and health
coverages, as well as non-insurance products such as identity protection. See Note 2 of the Notes to the Consolidated Financial Statements for further
information on the Company’s segments and Corporate & Other.
On November 1, 2010, MetLife, Inc. completed the acquisition of American Life Insurance Company (“American Life”) from AM Holdings LLC
(formerly known as ALICO Holdings LLC) (“AM Holdings”), a subsidiary of American International Group, Inc. (“AIG”), and Delaware American Life
Insurance Company (“DelAm”) from AIG (American Life, together with DelAm, collectively, “ALICO”) (the “ALICO Acquisition”). The assets, liabilities and
operating results relating to the ALICO Acquisition are included in the Latin America, Asia and EMEA segments. See Note 3 of the Notes to the
Consolidated Financial Statements.
Certain international subsidiaries have a fiscal year-end of November 30. Accordingly, the Company’s consolidated financial statements reflect the
assets and liabilities of such subsidiaries as of November 30, 2013 and 2012 and the operating results of such subsidiaries for the years ended
November 30, 2013, 2012 and 2011.
In the U.S., we provide a variety of insurance and financial services products, including life, dental, disability, property & casualty, guaranteed
interest, stable value and annuities, through both proprietary and independent retail distribution channels, as well as at the workplace. This business
serves approximately 60,000 group customers, serving 90 of the FORTUNE 100®companies, and provides protection and retirement solutions to
millions of individuals.
Outside the U.S., we operate in Latin America, Asia, Europe and the Middle East. MetLife is the largest life insurer in both Mexico and Chile and also
holds leading market positions in Japan, Korea, Poland, the Persian Gulf and Russia. Our businesses outside the U.S. provide life insurance, accident&
health insurance, credit insurance, annuities, endowment and retirement & savings products to both individuals and groups. We believe these
businesses will continue to grow more quickly than our U.S. businesses.
In the Americas, excluding Latin America, we market our products and services through various distribution channels. Our retail life, disability and
annuities products targeted to individuals are sold via sales forces, comprised of MetLife employees, as well as third-party organizations. Our group and
corporate benefit funding products are sold via sales forces primarily comprised of MetLife employees. Personal lines property & casualty insurance
products are directly marketed to employees at their employer’s worksite. Personal lines property & casualty insurance products are also marketed and
sold to individuals by independent agents, property & casualty specialists through a direct marketing channel, and via sales forces comprised of MetLife
employees. MetLife sales employees work with all distribution channels to better reach and service customers, brokers, consultants and other
intermediaries.
In Asia, Latin America, and EMEA, we market our products and services through a multi-distribution strategy which varies by geographic region and
stage of market development. The various distribution channels include: career agency, bancassurance, direct marketing, brokerage, other third-party
distribution, and e-commerce. In developing countries, the career agency channel covers the needs of the emerging middle class with primarily
traditional products (e.g., whole life, term, endowment and accident & health). In more developed and mature markets, career agents, while continuing
to serve their existing customers to keep pace with their developing financial needs, also target upper middle class and mass affluent customer bases
with a more sophisticated product set including more investment-sensitive products, such as universal life insurance, unit-linked life insurance, mutual
funds and single premium deposit insurance. In the bancassurance channel, we leverage partnerships that span all regions and have developed
extensive and far reaching capabilities in all regions. Our direct marketing operations, the largest of which is in Japan, deploy both broadcast marketing
approaches (e.g. direct response TV, web-based lead generation) and traditional direct marketing techniques such as inbound and outbound
telemarketing.
Revenues derived from any customer did not exceed 10% of consolidated premiums, universal life and investment-type product policy fees and
other revenues for the years ended December 31, 2013, 2012 and 2011. Financial information, including revenues, expenses, operating earnings, and
total assets by segment, as well as premiums, universal life and investment-type product policy fees and other revenues by major product groups, is
provided in Note 2 of the Notes to the Consolidated Financial Statements. Operating revenues and operating earnings are performance measures that
are not based on accounting principles generally accepted in the United States of America (“GAAP”). See “Management’s Discussion and Analysis of
Financial Condition and Results of Operations — Non-GAAP and Other Financial Disclosures” for definitions of such measures.
MetLife’s operations in the United States and in other jurisdictions are subject to regulation. Each of MetLife’s insurance subsidiaries operating in the
United States is licensed and regulated in each U.S. jurisdiction where it conducts insurance business. The extent of such regulation varies, but most
jurisdictions have laws and regulations governing the financial aspects and business conduct of insurers. MetLife, Inc. and its U.S. insurance
subsidiaries are subject to regulation under the insurance holding company laws of various U.S. jurisdictions. The insurance holding company laws and
regulations vary from jurisdiction to jurisdiction, but generally require a controlled insurance company (insurers that are subsidiaries of insurance holding
companies) to register with state regulatory authorities and to file with those authorities certain reports, including information concerning its capital
structure, ownership, financial condition, certain intercompany transactions and general business operations. State insurance statutes also typically
place restrictions and limitations on the amount of dividends or other distributions payable by insurance company subsidiaries to their parent companies,
as well as on transactions between an insurer and its affiliates. See “Management’s Discussion and Analysis of Financial Condition and Results of
Operations — Liquidity and Capital Resources — MetLife, Inc. — Liquidity and Capital Sources — Dividends from Subsidiaries.”
Our international insurance operations are principally regulated by insurance regulatory authorities in the jurisdictions in which they are located or
operate. This regulation includes minimum capital, solvency and operational requirements. The authority of our international operations to conduct
business is subject to licensing requirements, permits and approvals, and these authorizations are subject to modification and revocation. Periodic
examinations of insurance company books and records, financial reporting requirements, market conduct examinations and policy filing requirements
are among the techniques used by regulators to supervise our non-U.S. insurance businesses. We also have investment and pension companies in
certain foreign jurisdictions that provide mutual fund, pension and other financial products and services. Those entities are subject to securities,
investment, pension and other laws and regulations, and oversight by the relevant securities, pension and other authorities of the countries in which the
companies operate. In some jurisdictions, some of our insurance products are considered “securities” under local law and may be subject to local
securities regulations and oversight by local securities regulators.
4MetLife, Inc.