MetLife Announces Third Quarter 2006 Results

MetLife, Inc. (NYSE: MET) today reported third quarter 2006 netincome available to common shareholders of $999 million, or $1.29 perdiluted common share, compared with $742 million, or $0.97 per dilutedcommon share, for the third quarter of 2005.
For the three months
ended September 30,
---------------------
2006 2005
---------- ----------
(in millions, except
per diluted common
share data)
Net income available to common shareholders $999 $742
Net income available to common shareholders per
diluted common share $1.29 $0.97
Operating earnings available to common
shareholders(1) $958 $780
Operating earnings available to common
shareholders per diluted common share(1) $1.24 $1.01
Book value per diluted common share $38.22 $34.75
Book value per diluted common share, excluding
accumulated other comprehensive income(1) $35.78 $32.32

(1) Operating earnings available to common shareholders, operating
earnings available to common shareholders per diluted common share
and book value per diluted common share (excluding accumulated other
comprehensive income) are not calculated based on generally accepted
accounting principles ("GAAP"). Information regarding non-GAAP
financial measures in this press release and the reconciliation of
them to GAAP measures are provided in the Non-GAAP and Other
Financial Disclosures section below, as well as in the tables that
accompany this release.

Highlights

-- Earned record total premiums, fees and other revenues of $8.1 billion

-- Reached $516.2 billion in total assets

-- Announced the sale of Peter Cooper Village and Stuyvesant Town

Operating earnings available to common shareholders for the thirdquarter of 2006 were $958 million, or $1.24 per diluted common share,compared with $780 million, or $1.01 per diluted common share, for theprior year period.

"MetLife continued to benefit from our diverse businesses in thethird quarter with strong underlying fundamentals in all segments andrecord quarterly results in Auto & Home," said C. Robert Henrikson,chairman of the board, president and chief executive officer ofMetLife, Inc. "We are pleased to continue providing value to ourshareholders with the recently announced 13% increase in the annualcommon stock dividend. In addition, we plan to resume our sharerepurchase program and remain focused on continuing our strongmomentum to achieve our objectives for 2006."

Third Quarter Segment Overview

Reconciliations of segment net income available to commonshareholders to segment operating earnings available to commonshareholders are provided in the tables that accompany this release.

Institutional Business Earnings Remain Strong

Institutional Business operating earnings available to commonshareholders in the third quarter of 2006 remained strong at $390million, compared with $386 million in the prior year period. Duringthe quarter, solid growth in non-medical health & other earnings waspartially offset by the impact of lower interest spreads in theretirement & savings business.

Non-medical health & other earnings increased 29% due to growth inthe business and favorable underwriting results across the majorproduct lines. Non-medical health & other premiums, fees and otherrevenues were up 9% over the prior year period, reflecting growthacross all product lines, especially in dental and disability.

Retirement & savings earnings, while benefiting from certain lowerexpenses, were down 7% compared with the third quarter of 2005,primarily due to the impact of lower interest spreads, driven by theinverted yield curve, and lower variable net investment income. Duringthe quarter, the general and separate account assets for retirement &savings reached a combined record of $114.6 billion.

Group life earnings of $101 million were relatively flat comparedwith the prior year period. Underlying growth in the business, lowerexpenses and favorable underwriting results were offset by the impactof lower interest spreads.

Individual Business Earnings up 11%

Individual Business operating earnings available to commonshareholders were $367 million in the third quarter of 2006, comparedwith $330 million in the prior year period. This increase was due, inpart, to growth in the business and favorable underwriting results,partially offset by lower variable net investment income.

Total life earnings increased 11% over the prior year period asthe business benefited from good mortality and a $12 million benefitfrom a specific reserve reduction. A strong increase in variable &universal life earnings was partially offset by a decline intraditional life results, which was primarily driven by lower variablenet investment income and higher expenses. Total life first yearpremiums and deposits, as expected, were down compared to the prioryear period due to a decline in sales in the independent channel.

Annuity earnings increased 11% over the prior year period asresults benefited from growth in the business. While variable netinvestment income decreased from unusually high levels in the prioryear period, annuity spreads remained strong. During the quarter,total annuity deposits were $3.5 billion and fees for separate accountinvestment-type products within the annuity business increased 15%compared with the prior year period.

Auto & Home Earnings Reach New Record

Auto & Home operating earnings available to common shareholderswere a record $107 million in the third quarter of 2006, compared withan operating loss of $26 million in the prior year period. Auto &Home's strong performance in the quarter was due in part tosignificantly lower catastrophes compared with the prior year period.In addition, the non-catastrophe combined ratio improved to 81.2%,reflecting $27 million, net of income taxes, in favorable claimdevelopment related to prior accident years and good claim frequenciesin both the auto and homeowners businesses.

International Earnings up 9%

International operating earnings available to common shareholderswere $72 million in the third quarter of 2006, compared with $66million in the prior year period. Earnings in the segment benefitedfrom solid performance in Asia Pacific and Latin America. In Japan,MSI MetLife continued its strong performance with sales of $1.5billion, up 12% over the prior year period on a Yen basis.

Investments

MetLife's investment portfolio continued to deliver strong resultsas the net investment income yield increased to 6.32% in the thirdquarter of 2006, compared with 6.17% in the prior year period.Variable net investment income, while on plan, was lower than theprior year period.

On October 17, 2006, MetLife announced the sale of its PeterCooper Village and Stuyvesant Town properties for $5.4 billion. Thesale is expected to result in a gain of approximately $3 billion, netof income taxes. It is anticipated that the sale will close in thefourth quarter of 2006, subject to customary closing conditions.

Corporate Events

Share Repurchase

MetLife announced today that it intends to resume its sharerepurchase program in the fourth quarter of 2006. The companycurrently has $716 million remaining on its existing share repurchaseauthorization.

Earnings Conference Call

MetLife will hold its third quarter 2006 earnings conference calland audio Webcast on Tuesday, October 31, 2006, from 8:00 to 9:00 a.m.(ET). The conference call will be available live via telephone and theInternet. To listen over the telephone, dial (612) 326-1003. To listento the conference call over the Internet, visit www.metlife.com(through a link on the Investor Relations page). Those who want tolisten to the call on the telephone or via the Internet should dial inor go to the Web site at least fifteen minutes prior to the call toregister, and/or download and install any necessary audio software.

The conference call will be available for replay via telephone andthe Internet beginning at 11:30 a.m. (ET) on Tuesday, October 31,2006, until Tuesday, November 7, 2006, at 11:59 p.m. (ET). To listento a replay of the conference call over the telephone, dial (320)365-3844. The access code for the replay is 843183. To access thereplay of the conference call over the Internet, visit theabove-mentioned Web site.

Non-GAAP and Other Financial Disclosures

MetLife analyzes its performance using so-called non-GAAPmeasures, including operating earnings available to commonshareholders and operating earnings available to common shareholdersper diluted common share. Operating earnings available to commonshareholders is defined as GAAP net income, excluding net investmentgains and losses, net of income taxes, adjustments related to netinvestment gains and losses, net of income taxes, and discontinuedoperations other than discontinued real estate, net of income taxes,less preferred stock dividends which are recorded in Corporate &Other. Scheduled settlement payments on derivative instruments notqualifying for hedge accounting treatment are included in operatingearnings available to common shareholders. Operating earningsavailable to common shareholders per diluted common share iscalculated by dividing operating earnings available to commonshareholders by the number of weighted average diluted common sharesoutstanding for the period indicated. MetLife believes these measuresenhance the understanding and comparability of its performance byexcluding net investment gains and losses, net of income taxes, andadjustments related to net investment gains and losses, net of incometaxes, both of which can fluctuate significantly from period toperiod, and discontinued operations other than discontinued realestate, net of income taxes, thereby highlighting the results fromoperations and the underlying profitability drivers of the business.Operating earnings available to common shareholders and operatingearnings available to common shareholders per diluted common shareshould not be viewed as substitutes for GAAP net income available tocommon shareholders and GAAP net income available to commonshareholders per diluted common share, respectively.
For the three months ended
September 30,
-----------------------------
2006 2005
-------------- --------------
(in millions, except per
diluted common share data)
Net income available to common
shareholders $999 $1.29 $742 $0.97
Net investment (gains) losses, net of
income taxes(1) (162) (0.21) 15 0.02
Adjustments related to net investment
(gains) losses, net of income taxes(2) 121 0.16 30 0.03
Discontinued operations, net of income
taxes(3) - - (7) (0.01)
------- ------ ------- ------
Operating earnings available to common
shareholders $958 $1.24 $780 $1.01
======= ====== ======= ======

Book value per diluted common share $38.22 $34.75
Accumulated other comprehensive (income)
loss per diluted common share (2.44) (2.43)
------- -------
Book value per diluted common share,
excluding accumulated other
comprehensive income/loss $35.78 $32.32
======= =======

(1) Net investment (gains) losses, net of income taxes, includes
(gains) losses on sales of real estate and real estate joint ventures
related to discontinued operations of $(63) million and $(30) million
for the three months ended September 30, 2006 and 2005, respectively,
and excludes (gains) losses of $(61) million and $(17) million for
the three months ended September 30, 2006 and 2005, respectively,
from scheduled settlement payments on derivative instruments not
qualifying for hedge accounting treatment.

(2) Adjustments related to net investment (gains) losses, net of
income taxes, include amortization of unearned revenue and deferred
policy acquisition costs, adjustments to the policyholder dividend
obligation and amounts allocable to certain participating contracts.

(3) Discontinued operations, net of income taxes, excludes (gains)
losses from discontinued operations related to real estate and real
estate joint ventures.

This release contains statements which constitute forward-lookingstatements within the meaning of the Private Securities LitigationReform Act of 1995, including statements relating to trends in theoperations and financial results and the business and the products ofthe company and its subsidiaries, as well as other statementsincluding words such as "anticipate," "believe," "plan," "estimate,""expect," "intend" and other similar expressions. Forward-lookingstatements are made based upon management's current expectations andbeliefs concerning future developments and their potential effects onthe company. Such forward-looking statements are not guarantees offuture performance.

Actual results may differ materially from those included in theforward-looking statements as a result of risks and uncertaintiesincluding, but not limited to, the following: (i) changes in generaleconomic conditions, including the performance of financial marketsand interest rates; (ii) heightened competition, including withrespect to pricing, entry of new competitors and the development ofnew products by new and existing competitors; (iii) unanticipatedchanges in industry trends; (iv) the company's primary reliance, as aholding company, on dividends from its subsidiaries to meet debtpayment obligations and the applicable regulatory restrictions on theability of the subsidiaries to pay such dividends; (v) deteriorationin the experience of the "closed block" established in connection withthe reorganization of Metropolitan Life Insurance Company; (vi)catastrophe losses; (vii) adverse results or other consequences fromlitigation, arbitration or regulatory investigations; (viii)regulatory, accounting or tax changes that may affect the cost of, ordemand for, the company's products or services; (ix) downgrades in thecompany's and its affiliates' claims paying ability, financialstrength or credit ratings; (x) changes in rating agency policies orpractices; (xi) discrepancies between actual claims experience andassumptions used in setting prices for the company's products andestablishing the liabilities for the company's obligations for futurepolicy benefits and claims; (xii) discrepancies between actualexperience and assumptions used in establishing liabilities related toother contingencies or obligations; (xiii) the effects of businessdisruption or economic contraction due to terrorism or otherhostilities; (xiv) the company's ability to identify and consummate onsuccessful terms any future acquisitions, and to successfullyintegrate acquired businesses with minimal disruption; and (xv) otherrisks and uncertainties described from time to time in the company'sfilings with the Securities and Exchange Commission, including its S-1and S-3 registration statements. The company specifically disclaimsany obligation to update or revise any forward-looking statement,whether as a result of new information, future developments orotherwise.

MetLife, Inc. is a leading provider of insurance and financialservices with operations throughout the United States and the LatinAmerica, Europe and Asia Pacific regions. Through its domestic andinternational subsidiaries and affiliates, MetLife, Inc. reaches morethan 70 million customers around the world and MetLife is the largestlife insurer in the United States (based on life insurance in-force).The MetLife companies offer life insurance, annuities, auto and homeinsurance, retail banking and other financial services to individuals,as well as group insurance, reinsurance and retirement & savingsproducts and services to corporations and other institutions. For moreinformation, please visit www.metlife.com.

For a copy of MetLife's Quarterly Financial Supplement, pleasevisit www.metlife.com.
MetLife, Inc.
Consolidated Statements of Income
Unaudited
(In millions)


Three months ended Nine months ended
September 30, September 30,
------------------ -----------------
2006 2005 2006 2005
--------- -------- -------- --------

Premiums $ 6,577 $ 6,514 $19,433 $18,514
Universal life and investment-
type product policy fees 1,188 1,112 3,548 2,716
Net investment income 4,193 4,064 12,594 10,713
Other revenues 339 348 1,002 948
Net investment gains (losses) 254 (50) (1,074) 268
--------- -------- -------- --------
Total revenues 12,551 11,988 35,503 33,159
--------- -------- -------- --------

Policyholder benefits and claims 6,712 6,837 19,448 19,018
Interest credited to policyholder
account balances 1,352 1,149 3,839 2,764
Policyholder dividends 422 426 1,268 1,261
Other expenses 2,751 2,615 7,794 6,591
--------- -------- -------- --------
Total expenses 11,237 11,027 32,349 29,634
--------- -------- -------- --------

Income from continuing operations
before provision for income
taxes 1,314 961 3,154 3,525
Provision for income taxes 357 238 855 1,025
--------- -------- -------- --------
Income from continuing operations 957 723 2,299 2,500
Income from discontinued
operations, net of income taxes 76 50 131 1,505
--------- -------- -------- --------
Net income 1,033 773 2,430 4,005
Preferred stock dividends 34 31 100 31
--------- -------- -------- --------
Net income available to common
shareholders $ 999 $ 742 $ 2,330 $ 3,974
========= ======== ======== ========

Operating Earnings Available to
Common Shareholders
Reconciliation
---------------------------------
Net income available to common
shareholders $ 999 $ 742 $ 2,330 $ 3,974
Net investment gains (losses) 254 (23) (1,187) 2,181
Minority interest - net
investment gains (losses) - (1) 2 (12)
Net investment gains (losses)
tax provision (92) 9 417 (766)
--------- -------- -------- --------
Net investment gains (losses),
net of income taxes (1) (2) 162 (15) (768) 1,403
Adjustments related to
universal life and
investment-type product
policy fees 3 - (9) -
Adjustments related to
policyholder benefits and
dividends (204) (55) (12) (71)
Adjustments related to other
expenses 14 7 182 (17)
Adjustments related to tax
benefit (provision) 66 18 (58) 31
--------- -------- -------- --------
Adjustments related to net
investment gains (losses), net
of income taxes (3) (121) (30) 103 (57)
Discontinued operations, net of
income taxes (4) - 7 30 156
--------- -------- -------- --------
Operating earnings available to
common shareholders $ 958 $ 780 $ 2,965 $ 2,472
========= ======== ======== ========

(1) Net investment gains (losses), net of income taxes, from real
estate and real estate joint ventures includes discontinued
operations of $63 million and $30 million for the three months
ended September 30, 2006 and 2005, respectively, and $58 million
and $1,269 million for the nine months ended September 30, 2006
and 2005, respectively.

(2) Net investment gains (losses), net of income taxes, excludes
scheduled periodic settlement payments on derivative instruments
not qualifying for hedge accounting treatment of $61 million and
$17 million for the three months ended September 30, 2006 and
2005, respectively, and $130 million and $41 million for the nine
months ended September 30, 2006 and 2005, respectively.

(3) Adjustments related to net investment gains (losses), net of
income taxes, includes amortization of unearned revenue and
deferred policy acquisition costs, adjustments to the
policyholder dividend obligation and amounts allocable to certain
participating contracts.

(4) Discontinued operations, net of income taxes, excludes gains
(losses) from discontinued operations related to real estate and
real estate joint ventures.
MetLife, Inc.
Financial Highlights
Unaudited
(In millions, except per common share data or unless otherwise noted)



At or for the three At or for the nine
months ended months ended
September 30, September 30,
------------------- ------------------
2006 2005 2006 2005
--------- --------- --------- --------
Other Financial Data:
Net income available to
common shareholders $ 999 $ 742 $ 2,330 $ 3,974
Operating earnings available
to common shareholders $ 958 $ 780 $ 2,965 $ 2,472
Total assets (billions) $ 516.2 $ 482.9 $ 516.2 $ 482.9

Individual Business Sales Data:
Total first year life
premiums and deposits $ 244 $ 357 $ 841 $ 777
Variable and Universal life
first year premiums and
deposits (including
COLI/BOLI) $ 198 $ 305 $ 695 $ 626
Total annuity deposits $ 3,531 $ 3,624 $11,603 $ 8,660

Earnings Per Common Share
Calculation:
Weighted average common
shares outstanding - diluted 773.7 768.7 769.9 753.1
Operating earnings available
to common shareholders per
common share - diluted $ 1.24 $ 1.01 $ 3.85 $ 3.28
Net income available to
common shareholders per
common share - diluted $ 1.29 $ 0.97 $ 3.03 $ 5.28
MetLife, Inc.
Balance Sheet Data
September 30, 2006 (Unaudited) and December 31, 2005 (Audited)
(In millions)



At September 30, At December 31,
2006 2005
---------------- ---------------
Balance Sheet Data:
General account assets $ 378,912 $ 353,776
Separate account assets 137,274 127,869
---------------- ---------------
Total assets $ 516,186 $ 481,645
================ ===============

Policyholder liabilities (including
amounts in closed block) $ 268,693 $ 262,371
Short-term debt 1,706 1,414
Long-term debt 10,711 9,888
Junior subordinated debt securities
underlying common equity units 2,134 2,134
Shares subject to mandatory
redemption 278 278
Other liabilities 63,780 48,590
Separate account liabilities 137,274 127,869
---------------- ---------------
Total liabilities 484,576 452,544
---------------- ---------------

Preferred stock, at par value 1 1
Common stock, at par value 8 8
Additional paid-in capital 17,397 17,274
Retained earnings 13,195 10,865
Treasury stock (878) (959)
Accumulated other comprehensive
income (loss) 1,887 1,912
---------------- ---------------
Total stockholders' equity 31,610 29,101
---------------- ---------------
Total liabilities and
stockholders' equity $ 516,186 $ 481,645
================ ===============
MetLife, Inc.
Reconciliations of Net Income Available to Common Shareholders to
Operating Earnings Available to Common Shareholders
Unaudited
(In millions)


Three months Nine months
ended ended
September 30, September 30,
-------------- ---------------
2006 2005 2006 2005
------ ------- ------- -------
Total Institutional Operations
Net income available to common
shareholders $486 $ 343 $ 908 $1,282
Net investment gains (losses), net
of income taxes 150 (61) (352) 209
Adjustments related to net
investment gains (losses), net of
income taxes (54) 18 1 17
------ ------- ------- -------
Operating earnings available to
common shareholders $390 $ 386 $1,259 $1,056
====== ======= ======= =======

Institutional Operations
Group Life
Net income available to common
shareholders $ 91 $ 113 $ 276 $ 283
Net investment gains (losses), net
of income taxes (10) 7 (59) (3)
Adjustments related to net
investment gains (losses), net of
income taxes - 4 4 4
------ ------- ------- -------
Operating earnings available to
common shareholders $101 $ 102 $ 331 $ 282
====== ======= ======= =======

Retirement & Savings
Net income available to common
shareholders $290 $ 178 $ 420 $ 796
Net investment gains (losses), net
of income taxes 105 (45) (250) 198
Adjustments related to net
investment gains (losses), net of
income taxes (16) 7 (13) 8
------ ------- ------- -------
Operating earnings available to
common shareholders $201 $ 216 $ 683 $ 590
====== ======= ======= =======

Non-Medical Health & Other
Net income available to common
shareholders $105 $ 52 $ 212 $ 203
Net investment gains (losses), net
of income taxes 55 (23) (43) 14
Adjustments related to net
investment gains (losses), net of
income taxes (38) 7 10 5
------ ------- ------- -------
Operating earnings available to
common shareholders $ 88 $ 68 $ 245 $ 184
====== ======= ======= =======

Total Individual Operations
Net income available to common
shareholders $401 $ 313 $ 913 $1,262
Net investment gains (losses), net
of income taxes 53 (6) (316) 353
Adjustments related to net
investment gains (losses), net of
income taxes (19) (11) 101 (31)
------ ------- ------- -------
Operating earnings available to
common shareholders $367 $ 330 $1,128 $ 940
====== ======= ======= =======

Individual Operations
Traditional Life
Net income available to common
shareholders $ 55 $ 108 $ 217 $ 548
Net investment gains (losses), net
of income taxes (14) 31 (106) 300
Adjustments related to net
investment gains (losses), net of
income taxes (4) (22) 55 (29)
------ ------- ------- -------
Operating earnings available to
common shareholders $ 73 $ 99 $ 268 $ 277
====== ======= ======= =======

Variable & Universal Life
Net income available to common
shareholders $105 $ 46 $ 176 $ 133
Net investment gains (losses), net
of income taxes 14 (12) (47) (11)
Adjustments related to net
investment gains (losses), net of
income taxes (3) 7 12 3
------ ------- ------- -------
Operating earnings available to
common shareholders $ 94 $ 51 $ 211 $ 141
====== ======= ======= =======

Annuities
Net income available to common
shareholders $236 $ 148 $ 507 $ 556
Net investment gains (losses), net
of income taxes 56 (29) (151) 66
Adjustments related to net
investment gains (losses), net of
income taxes (12) 4 34 (5)
------ ------- ------- -------
Operating earnings available to
common shareholders $192 $ 173 $ 624 $ 495
====== ======= ======= =======

Other
Net income (loss) available to
common shareholders $ 5 $ 11 $ 13 $ 25
Net investment gains (losses), net
of income taxes (3) 4 (12) (2)
------ ------- ------- -------
Operating earnings (losses)
available to common shareholders $ 8 $ 7 $ 25 $ 27
====== ======= ======= =======

Total Auto & Home
Net income available to common
shareholders $106 $ (29) $ 296 $ 145
Net investment gains (losses), net
of income taxes (1) (3) (3) (6)
------ ------- ------- -------
Operating earnings available to
common shareholders $107 $ (26) $ 299 $ 151
====== ======= ======= =======

Auto & Home
Auto
Net income available to common
shareholders $ 87 $ 63 $ 219 $ 171
Net investment gains (losses), net
of income taxes (1) (2) (2) (4)
------ ------- ------- -------
Operating earnings available to
common shareholders $ 88 $ 65 $ 221 $ 175
====== ======= ======= =======

Homeowners & Other
Net income available to common
shareholders $ 19 $ (92) $ 77 $ (26)
Net investment gains (losses), net
of income taxes - (1) (1) (2)
------ ------- ------- -------
Operating earnings available to
common shareholders $ 19 $ (91) $ 78 $ (24)
====== ======= ======= =======

International
Net income available to common
shareholders $ 11 $ 41 $ 216 $ 162
Net investment gains (losses), net
of income taxes (13) 3 9 8
Adjustments related to net
investment gains (losses), net of
income taxes (48) (35) (2) (36)
Discontinued operations, net of
income taxes - 7 - 5
------ ------- ------- -------
Operating earnings available to
common shareholders $ 72 $ 66 $ 209 $ 185
====== ======= ======= =======

Reinsurance
Net income available to common
shareholders $ 30 $ 28 $ 83 $ 64
Net investment gains (losses), net
of income taxes 1 4 (2) 16
Adjustments related to net
investment gains (losses), net of
income taxes - (2) 3 (7)
------ ------- ------- -------
Operating earnings available to
common shareholders $ 29 $ 26 $ 82 $ 55
====== ======= ======= =======