MetLife Announces Third Quarter 2005 Results

-- Net Income Available to Common Shareholders of $0.97 Per Diluted Common Share --

-- Operating Earnings Available to Common Shareholders of $1.01 Per Diluted Common Share, a 23% Increase --

MetLife, Inc. (NYSE: MET) today reported third quarter 2005 netincome available to common shareholders of $742 million, or $0.97 perdiluted common share, compared with $695 million, or $0.92 per dilutedcommon share, for the third quarter of 2004.
For the three
months ended
September 30,
---------------
2005 2004
------- -------
(Dollars in
millions,
except per
diluted common
share data)

Net income available to common shareholders $742 $695
Net income available to common shareholders per diluted
common share $0.97 $0.92
Operating earnings available to common shareholders1 $780 $618
Operating earnings available to common shareholders per
diluted common share1 $1.01 $0.82
Book value per diluted common share $34.75 $30.50
Book value per diluted common share, excluding
accumulated other comprehensive income1 $32.32 $26.79

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

Third Quarter Highlights

-- Achieved quarterly net income available to common shareholders of $742 million

-- Earned total premiums, fees and other revenues of $8 billion, a 19% increase over the prior year period

-- Reached $483 billion in assets under management

-- Completed acquisition of Travelers Life & Annuity and substantially all of Citigroup's international insurance businesses on July 1, which contributed approximately 10% to operating earnings available to common shareholders, excluding integration and related expenses for the quarter

"During the third quarter of 2005, MetLife continued to deliveroverall strong results reflecting, in part, an important contributionfrom the businesses we acquired as a result of the Travelerstransaction. We remain on track to complete the integration of theTravelers business by November 1," said Robert H. Benmosche, chairmanand chief executive officer of MetLife, Inc. "We have been extremelyeffective over the past few months integrating Travelers, whilemaintaining intense focus on achieving our overall financialobjectives. This focus, along with the 2005 annual dividend weannounced earlier this week, further demonstrates our commitment toproviding value to MetLife's shareholders and fulfilling the promiseswe continue to make to our customers."

Operating earnings available to common shareholders for the thirdquarter of 2005 were $780 million, or $1.01 per diluted common share,compared with $618 million, or $0.82 per diluted common share, for theprior year period.

Estimated Katrina Losses

MetLife estimates that the company's total net losses fromHurricane Katrina, which impacted the Auto & Home and Institutional(primarily disability business) segments, will be $130 million, net ofincome taxes and reinsurance recoverables and including premiumsrelated to the catastrophe, or $0.17 per diluted common share. MetLifeestimates its gross losses from Katrina to be approximately $340million, primarily arising from the company's homeowners business.

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.

During the quarter, MetLife had integration-related expenses of$38 million and recorded an accrual of $75 million for an employeebonus tied to the timely completion of the Travelers integration.

Institutional Business Earnings up 30%

Institutional Business operating earnings available to commonshareholders for the third quarter of 2005 were $386 million, comparedwith $298 million in the prior year period. Strong growth in the assetbase for retirement & savings, due in large part to the Travelersacquisition, as well as higher net investment income, contributed tothe earnings growth in the segment. In addition, non-medical health &other earnings increased 39%, primarily due to business growth acrossthe majority of products. This includes a $12 million increase, net ofincome taxes, in disability benefits related to Hurricane Katrina.

During the quarter, group life premiums, fees and other revenuesgrew 16% over the prior year period primarily due to sales growth andfavorable renewal activity, including a substantial, one-time premiumon a large participating contract. Retirement & savings net investmentincome grew 61% compared to the prior year period largely due to theTravelers acquisition, higher corporate joint venture income and anincrease in the asset base driven by favorable guaranteed interestcontract sales. Non-medical health premiums, fees and other revenuesincreased 13% over the prior year period due to continued growthacross all product lines.

Individual Business Earnings up 66%

Individual Business operating earnings available to commonshareholders were $331 million in the third quarter of 2005, comparedwith $200 million in the prior year period. The strong growth in thesegment was driven by the Travelers acquisition, as well as continuedgrowth in the business. Traditional life results benefited from stronginvestment performance and favorable mortality in the open block ofbusiness. Fees for the investment-type products within the annuitybusiness doubled compared with the prior year period as a result ofgrowth in the separate account assets. Annuity results also benefitedfrom strong investment performance. Traditional life first yearpremiums and deposits were up 18%, driven by higher term life sales.

Auto & Home Earnings

The Auto & Home segment reported an operating loss of $26 millionin the third quarter of 2005, compared with operating earningsavailable to common shareholders of $34 million in the prior yearperiod. During the quarter, the segment had catastrophe losses of $130million, net of income taxes and reinsurance recoverables andincluding premiums related to the catastrophes. These losses wereprimarily due to Hurricane Katrina ($116 million, net of income taxesand reinsurance recoverables and including premiums related to thecatastrophe) and Hurricanes Rita and Ophelia ($6 million, net ofincome taxes). While the homeowners business was significantlyimpacted by hurricanes, earnings in the auto business increased 25%.

International Earnings up 40%

International operating earnings available to common shareholderswere $66 million in the third quarter of 2005, compared with $47million in the prior year period. Earnings in this segment increaseddue in part to a one-time $15 million tax benefit, as well ascontinued business growth in Latin America and Asia Pacific.

Investments

During the third quarter of 2005, variable income was at higherthan normal levels, primarily from corporate joint ventures.

Earnings Conference Call

MetLife will hold its third quarter earnings conference call andaudio Webcast on Friday, October 28, 2005, 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 (domesticand international callers). To listen to the conference call over theInternet, visit www.metlife.com (through a link on the InvestorRelations page).

Non-GAAP and Other Financial Disclosures

MetLife analyzes its performance using non-GAAP measures calledoperating earnings, operating earnings available to commonshareholders and operating earnings available to common shareholdersper diluted common share. Operating earnings is defined as GAAP netincome excluding net investment gains and losses, net of income taxes,adjustments related to net investment gains and losses, net of incometaxes, the impact from the cumulative effect of a change inaccounting, net of income taxes, and discontinued operations otherthan discontinued real estate, net of income taxes. Scheduledsettlement payments on derivative instruments not qualifying for hedgeaccounting treatment are included in operating earnings. Operatingearnings available to common shareholders is defined as operatingearnings less preferred stock dividends, which are recorded inCorporate & Other. Operating earnings available to common shareholdersper diluted common share is calculated by dividing operating earningsavailable to common shareholders by the number of weighted averagediluted common shares outstanding for the period indicated. MetLifebelieves these measures enhance the understanding and comparability ofits performance by excluding net investment gains and losses, net ofincome taxes, and adjustments related to net investment gains andlosses, net of income taxes, both of which can fluctuate significantlyfrom period to period, the impact of the cumulative effect of a changein accounting, net of income taxes, and discontinued operations otherthan discontinued real estate, net of income taxes, therebyhighlighting the results from operations and the underlyingprofitability drivers of the business. Operating earnings, operatingearnings available to common shareholders and operating earningsavailable to common shareholders per diluted common share should notbe viewed as substitutes for GAAP net income, GAAP net incomeavailable to common shareholders and GAAP net income available tocommon shareholders per diluted common share, respectively.
For the three months ended
September 30,
-----------------------------
2005 2004
-------------- --------------
(Dollars in millions, except
per diluted common share
data)
Net income available to common
shareholders $742 $0.97 $695 $0.92
Net investment (gains) losses, net of
income taxes1 15 0.02 (118) (0.16)
Adjustments related to net investment
(gains) losses, net of income taxes2 30 0.03 44 0.06
Discontinued operations, net of income
taxes3 (7) (0.01) (3) -
-------------- --------------
Operating earnings available to common
shareholders $780 $1.01 $618 $0.82
============== ==============

Book value per diluted common share $34.75 $30.50
Accumulated other comprehensive income
per diluted common share $(2.43) $(3.71)
------- -------
Book value per diluted common share,
excluding accumulated other
comprehensive income $32.32 $26.79
======= =======

(1) Net investment (gains) losses, net of income taxes, includes(gains) losses on sales of real estate and real estate joint venturesrelated to discontinued operations of $(30) million and $10 millionfor the three months ended September 30, 2005 and 2004, respectively,and excludes (gains) losses of $(17) million and $(8) million for thethree months ended September 30, 2005 and 2004, respectively, fromscheduled settlement payments on derivative instruments not qualifyingfor hedge accounting treatment.

(2) Adjustments related to net investment (gains) losses, net ofincome taxes, include amortization of deferred policy acquisitioncosts, adjustments to the policyholder dividend obligation and amountsallocable to certain participating contracts.

(3) Excludes (gains) losses on sales of real estate and realestate joint ventures related to discontinued operations.

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 otherfinancial services to millions of individual and institutionalcustomers throughout the United States. Through its subsidiaries andaffiliates, MetLife, Inc. offers life insurance, annuities, automobileand homeowner's insurance and retail banking services to individuals,as well as group insurance, reinsurance and retirement and savingsproducts and services to corporations and other institutions. Outsidethe U.S., the MetLife companies have direct insurance operations inAsia Pacific, Latin America and Europe. For more information, pleasevisit www.metlife.com.

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


Three months ended Nine months ended
September 30, September 30,
------------------ -----------------
2005 2004 2005 2004
------- ------- -------- --------

Premiums $6,514 $5,679 $18,514 $16,400
Universal life and investment-type
product policy fees 1,112 736 2,716 2,120
Net investment income 4,088 3,059 10,784 9,076
Other revenues 348 292 948 889
Net investment gains (losses) (50) 206 268 369
------- ------- -------- --------
Total revenues 12,012 9,972 33,230 28,854
------- ------- -------- --------

Policyholder benefits and claims 6,837 5,924 19,018 16,775
Interest credited to policyholder
account balances 1,149 739 2,764 2,220
Policyholder dividends 426 407 1,261 1,252
Other expenses 2,615 1,933 6,591 5,645
------- ------- -------- --------
Total expenses 11,027 9,003 29,634 25,892
------- ------- -------- --------

Income from continuing operations
before provision for income taxes 985 969 3,596 2,962
Provision for income taxes 246 290 1,049 817
------- ------- -------- --------
Income from continuing operations 739 679 2,547 2,145
Income from discontinued operations,
net of income taxes 34 16 1,458 188
------- ------- -------- --------
Income before cumulative effect of a
change in accounting, net of income
taxes 773 695 4,005 2,333
Cumulative effect of a change in
accounting, net of income taxes (1) - - - (86)
------- ------- -------- --------
Net income 773 695 4,005 2,247
Preferred stock dividend 31 - 31 -
------- ------- -------- --------
Net income available to common
shareholders $742 $695 $3,974 $2,247
======= ======= ======== ========


Operating Earnings Available to Common
Shareholders Reconciliation
--------------------------------------
Net income available to common
shareholders 742 695 3,974 2,247
Net investment gains (losses) (23) 178 2,181 458
Minority interest - net
investment gains (losses) (1) 2 (12) (14)
Net investment gains (losses)
tax benefit (provision) 9 (62) (766) (148)
------- ------- -------- --------
Net investment gains (losses), net
of income taxes (2) (3) (15) 118 1,403 296
Adjustments related to
policyholder benefits and
dividends (55) (74) (71) 73
Adjustments related to
other expenses 7 6 (17) (16)
Adjustments related to
tax benefit (provision) 18 24 31 (20)
------- ------- -------- --------
Adjustments related to net investment
gains (losses), net of income
taxes (4) (30) (44) (57) 37
Cumulative effect of a change in
accounting, net of income taxes (1) - - - (86)
Discontinued operations, net of
income taxes (5) 7 3 156 18
------- ------- -------- --------
Operating earnings available to
common shareholders $780 $618 $2,472 $1,982
======= ======= ======== ========

(1) The cumulative effect of a change in accounting, net of income
taxes, for the nine months ended September 30, 2004, is in
accordance with AICPA Statement of Position 03-1, Accounting and
Reporting by Insurance Enterprises for Certain Nontraditional
Long-Duration Contracts and for Separate Accounts.

(2) 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 $30 million and $1,269
million, respectively, for the three months and nine months ended
September 30, 2005 and ($10) million and $88 million,
respectively, for the three months and nine months ended September
30, 2004.

(3) Net investment gains (losses), net of income taxes, excludes gains
(losses) of $17 million and $40 million, respectively, for the
three months and nine months ended September 30, 2005 and $8
million and $31 million, respectively, for the three months and
nine months ended September 30, 2004 from scheduled settlement
payments on derivative instruments not qualifying for hedge
accounting treatment.

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

(5) Excludes gains (losses) on sales of real estate and real estate
joint ventures related to discontinued operations.

MetLife, Inc.
Financial Highlights
Unaudited
(Dollar amounts in millions, except per common
share data or unless otherwise noted)


At or for the At or for the
three months nine months
ended ended
September 30, September 30,
--------------- ---------------
2005 2004 2005 2004
------- ------- ------- -------
Other Financial Data:
Net income available to common
shareholders $742 $695 $3,974 $2,247
Operating earnings available to
common shareholders $780 $618 $2,472 $1,982
Total assets under management
(billions) $482.8 $346.2 $482.8 $346.2

Individual Business Sales Data:
Total first year life premiums and
deposits $357 $240 $777 $716
Variable and Universal life first
year premiums and deposits
(including COLI/BOLI) $305 $196 $626 $580
Total annuity deposits $3,624 $2,410 $8,660 $8,728
Mutual fund sales $1,006 $689 $2,876 $2,598

Earnings Per Share Calculation:
Weighted average common shares
outstanding - diluted 768.7 753.4 753.1 757.3
Operating earnings available to
common shareholders per common share
- diluted $1.01 $0.82 $3.28 $2.62
Net income available to common
shareholders per common share -
diluted $0.97 $0.92 $5.28 $2.97

MetLife, Inc.
Balance Sheet Data
September 30, 2005 (Unaudited) and December 31, 2004 (Audited)
(Dollar amounts in millions)


At At
September 30, December 31,
2005 2004
------------- ------------
Balance Sheet Data:
General account assets $358,775 $270,039
Separate account assets 124,044 86,769
---------- ---------
Total assets $482,819 $356,808
========== =========

Policyholder liabilities (including
amounts of closed block) $260,256 $194,104
Short-term debt 1,303 1,445
Long-term debt 9,492 7,412
Junior subordinated debt securities
underlying common equity units 2,134 -
Shares subject to mandatory redemption 278 278
Other liabilities 56,555 43,976
Separate account liabilities 124,044 86,769
---------- ---------
Total liabilities 454,062 333,984
---------- ---------

Preferred stock, at par value 1 -
Common stock, at par value 8 8
Additional paid-in capital 17,273 15,037
Retained earnings 10,582 6,608
Treasury stock (981) (1,785)
Accumulated other comprehensive income 1,874 2,956
---------- ---------
Total stockholders' equity 28,757 22,824
---------- ---------
Total liabilities and stockholders'
equity $482,819 $356,808
========== =========


MetLife, Inc.
Reconciliations of Net Income Available to Common Shareholders
to Operating Earnings Available to Common Shareholders
Unaudited
(Dollar amounts in millions)


Three months ended Nine months ended
September 30, September 30,
------------------ -----------------
2005 2004 (1) 2005 (1) 2004 (1)
----- -------- -------- --------

Total Institutional Operations
Net income available to common
shareholders $343 $335 $1,282 $1,030
Net investment gains (losses),
net of income taxes (61) 61 209 134
Adjustments related to net
investment gains (losses), net of
income taxes 18 (24) 17 16
Cumulative effect of a change in
accounting, net of income taxes - - - (60)
----- -------- -------- --------
Operating earnings available to
common shareholders $386 $298 $1,056 $940
===== ======== ======== ========

Institutional Operations
Group Life
Net income available to common
shareholders $113 $103 $283 $321
Net investment gains (losses),
net of income taxes 7 3 (3) 18
Adjustments related to net
investment gains (losses), net of
income taxes 4 - 4 -
----- -------- -------- --------
Operating earnings available to
common shareholders $102 $100 $282 $303
===== ======== ======== ========

Retirement & Savings
Net income available to common
shareholders $178 $185 $796 $543
Net investment gains (losses),
net of income taxes (45) 39 198 99
Adjustments related to net
investment gains (losses), net of
income taxes 7 (3) 8 17
Cumulative effect of a change in
accounting, net of income taxes - - - (40)
----- -------- -------- --------
Operating earnings available to
common shareholders $216 $149 $590 $467
===== ======== ======== ========

Non-Medical Health & Other
Net income available to common
shareholders $52 $47 $203 $166
Net investment gains (losses),
net of income taxes (23) 19 14 17
Adjustments related to net
investment gains (losses), net of
income taxes 7 (21) 5 (1)
Cumulative effect of a change in
accounting, net of income taxes - - - (20)
----- -------- -------- --------
Operating earnings available to
common shareholders $68 $49 $184 $170
===== ======== ======== ========

Total Individual Operations
Net income available to common
shareholders $314 $259 $1,265 $685
Net investment gains (losses),
net of income taxes (6) 80 353 92
Adjustments related to net
investment gains (losses), net of
income taxes (11) (21) (31) (3)
----- -------- -------- --------
Operating earnings available to
common shareholders $331 $200 $943 $596
===== ======== ======== ========

Individual Operations
Traditional Life
Net income available to common
shareholders $109 $101 $551 $264
Net investment gains (losses),
net of income taxes 31 61 300 65
Adjustments related to net
investment gains (losses), net of
income taxes (22) (18) (29) -
----- -------- -------- --------
Operating earnings available to
common shareholders $100 $58 $280 $199
===== ======== ======== ========

Variable & Universal Life
Net income available to common
shareholders $46 $42 $133 $86
Net investment gains (losses),
net of income taxes (12) 5 (11) 3
Adjustments related to net
investment gains (losses), net of
income taxes 7 (2) 3 (1)
Cumulative effect of a change in
accounting, net of income taxes - - - (11)
----- -------- -------- --------
Operating earnings available to
common shareholders $51 $39 $141 $95
===== ======== ======== ========

Annuities
Net income available to common
shareholders $148 $106 $556 $321
Net investment gains (losses),
net of income taxes (29) 9 66 28
Adjustments related to net
investment gains (losses), net of
income taxes 4 (1) (5) (2)
Cumulative effect of a change in
accounting, net of income taxes - - - 11
----- -------- -------- --------
Operating earnings available to
common shareholders $173 $98 $495 $284
===== ======== ======== ========

Other
Net income (loss) available to
common shareholders $11 $10 $25 $14
Net investment gains (losses),
net of income taxes 4 5 (2) (4)
----- -------- -------- --------
Operating earnings (loss)
available to common shareholders $7 $5 $27 $18
===== ======== ======== ========

Total Auto & Home
Net income available to common
shareholders $(29) $33 $145 $147
Net investment gains (losses),
net of income taxes (3) (1) (6) (4)
----- -------- -------- --------
Operating earnings available to
common shareholders $(26) $34 $151 $151
===== ======== ======== ========

Auto & Home
Auto
Net income available to common
shareholders $63 $51 $171 $131
Net investment gains (losses),
net of income taxes (2) (1) (4) (4)
----- -------- -------- --------
Operating earnings available to
common shareholders $65 $52 $175 $135
===== ======== ======== ========

Homeowners
Net income available to common
shareholders $(86) $(18) $(23) $16
Net investment gains (losses),
net of income taxes - - (1) -
----- -------- -------- --------
Operating earnings available to
common shareholders $(86) $(18) $(22) $16
===== ======== ======== ========

Other
Net income (loss) available to
common shareholders $(6) $- $(3) $-
Net investment gains (losses),
net of income taxes (1) - (1) -
----- -------- -------- --------
Operating earnings (loss)
available to common shareholders $(5) $- $(2) $-
===== ======== ======== ========

International
Net income available to common
shareholders $41 $38 $162 $144
Net investment gains (losses),
net of income taxes 3 2 8 19
Adjustments related to net
investment gains (losses), net of
income taxes (35) (9) (36) 25
Cumulative effect of a change in
accounting, net of income taxes - - - (30)
Discontinued operations, net of
income taxes 7 (2) 5 (5)
----- -------- -------- --------
Operating earnings available to
common shareholders $66 $47 $185 $135
===== ======== ======== ========

Reinsurance
Net income available to common
shareholders $28 $14 $64 $70
Net investment gains (losses),
net of income taxes 4 (11) 16 15
Adjustments related to net
investment gains (losses), net of
income taxes (2) 10 (7) (1)
Cumulative effect of a change in
accounting, net of income taxes - - - -
----- -------- -------- --------
Operating earnings available to
common shareholders $26 $15 $55 $56
===== ======== ======== ========

(1) Certain amounts in prior periods presented have been reclassified
to conform with current period presentation.