Slump Hits Hartford, Pru And MetLife

CONSOLIDATED REVENUE: $7 billion

3 Q 2007 Results

CONSOLIDATED NET INCOME: $867 million

NET FINANCIAL SERVICES BUSINESS REALIZED CAPITAL CHANGE: $180 million loss

FINANCIAL SERVICES BUSINESS INVESTMENT CHANGE ON TRADING ACCOUNT ASSETS: $36 million gain

CONSOLIDATED REVENUE: $8.4 billion

- Individual life operating income fell to $238 million, from $251 million.

- The individual annuities unit is reporting a $307 million operating loss, in part because of a $380 million charge “representing a net increase in costs associated with guaranteed minimum death benefits and amortization of deferred policy acquisition and other costs based on an annual review, reflecting an updated estimate of profitability for this business that was largely driven by declines in customer account values through September 30, 2008 and included revised assumptions as to costs associated with death benefit guarantees.”

- Group insurance operating income increased to $101 million, from $100 million.

- Securities analysts at UBS Investment Research, New York, note in a comment on the earnings release that third-quarter individual death benefit payments fell to $2.51 per $1,000 in in-force coverage, from $2.97, and that group life and group disability ratios of claims to premiums also were favorable.

MetLife Inc., New York

3 Q 2008 Results

NET INCOME: $630 million

NET REALIZED INVESTMENT CHANGE: $408 million loss

RESULTS FOR DERIVATIVES THAT DO NOT QUALIFY FOR HEDGE ACCOUNTING: $1.1 billion gain

REVENUE: $13 billion

3 Q 2007 Results

NET INCOME: $1.1 billion

NET REALIZED INVESTMENT CHANGE: $242 million loss

RESULTS FOR DERIVATIVES THAT DO NOT QUALIFY FOR HEDGE ACCOUNTING: $37 million loss

REVENUE: $12 billion

- Institutional operating income fell to $396 million, from $467 million, because of a drop in investment income and less favorable underwriting results in non-medical health lines.

- Non-medical health premiums and fees increased 16%, in part because of strong growth in dental revenue, but unfavorable underwriting results caused operating income to fall to $56 million, from $107 million.

- Annualized institutions general account spreads – the difference between what MetLife pays policyholders and earns on its own investments – increased to 2.27%, from 2% a year earlier, for group life, but fell to 0.96%, from 1.19% for retirement and savings products, and to 0.49%, from 1.68%, for non-medical health products.

- Variable annuity deposits fell to $3.8 billion, from $4 billion, and fixed annuity deposits rose to $499 million, from $320 million.

- The average annualized general account spread fell to 2.01%, from 2.7%, for individual annuities.

- MetLife will maintain its annual common stock dividend of 74 cents per share.

- Securities analysts at Sterne, Agee & Leach Inc., New York, write in a comment on the earnings release that they expect MetLife to make a “financially and strategically motivated acquisition.”