MetLife 2013 Annual Report Download - page 6

If we are named a SIFI, we will be subject to enhanced prudential standards by the Federal Reserve. However, those
standards have not yet been written, and the Fed maintains that its ability to tailor capital standards for insurers is limited
by the Collins Amendment to the Dodd-Frank Act. It is taking much longer for clarity on the capital rules than anyone had
anticipated, and in the meantime MetLife’s capital continues to grow.
To be clear, MetLife is still taking capital actions. In the second quarter of 2013, we increased our common stock
dividend by 49%. Our philosophy is that excess capital belongs to our shareholders. The challenge is to strike the right
balance between adherence to our philosophy and recognition that required capital levels for MetLife are still unknown
and might increase. Any capital actions we take in 2014 must reflect both of these realities.
Sound Regulation
To no one’s surprise, the regulatory mantra in the post-financial-crisis world is more capital for financial institutions.
However, sound regulation of life insurers must achieve two goals simultaneously: ensure that companies are adequately
capitalized and preserve affordable products for consumers. Leaning too far in the direction of more capital will limit
access to the kinds of financial protection that only life insurers can provide.
If federal capital rules for life insurers do not appropriately reflect the business model of insurance, we could be forced
to raise prices to consumers or exit markets entirely. All regulatory decisions involve trade-offs, and regulators in
Washington must recognize that imposing higher capital requirements on certain life insurance companies is not cost-
free. The costs will be borne by consumers with an urgent need for financial protection and stable retirement income,
especially at a time when government social safety nets are under increasing pressure.
Conclusion
Just as MetLife’s achievements in 2012 raised the bar for our performance in 2013, once again your company
delivered improved results and raised the bar for 2014 and beyond. I cannot promise that every year will be better than
the last, but I can promise you that we are more focused than ever on growing operating earnings, improving free cash
flow, and ensuring that we earn an appropriate risk-adjusted return on the capital you have invested in MetLife.
On behalf of the entire MetLife team, thank you for the continued trust you place in us to run your company.
Sincerely,
Steven A. Kandarian
Chairman of the Board, President and Chief Executive Officer
MetLife, Inc.
March 18, 2014
iv MetLife, Inc.