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Company Expects to Report Net Income of
Rescheduling Due to Revision of Prior Year Financials to Reflect Reserve Strengthening
Management of the company has determined the prior release of group
annuity reserves resulted from a material weakness in internal control
over financial reporting. MetLife expects to increase reserves in total
The total amount expected to impact fourth quarter 2017 net income is
Revisions to prior periods will be included in MetLife's 2017 Form 10-K and Fourth Quarter Financial Supplement. These revisions will not constitute a restatement of previously issued financial statements. These pre-tax revisions will be taxed at the 35% U.S. tax rate in effect, and the impacts of the recently enacted U.S. tax reform legislation will be reflected in Corporate & Other in the fourth quarter of 2017.
In connection with MetLife's review and enhancement of the processes and
procedures relating to its Retirement and Income Solutions business in
The company is preannouncing the following unaudited preliminary fourth quarter 2017 results:
Preliminary Fourth Quarter Results
* Information regarding the non-GAAP and other financial measures included in this news release and the reconciliation of the non-GAAP financial measures to GAAP measures is provided in the Non-GAAP and Other Financial Disclosures discussions below. Adjusted measures were formerly referred to as operating measures.
Non-GAAP and Other Financial Disclosures
In this news release,
MetLife's definitions of the various non-GAAP and other financial measures discussed in this news release may differ from those used by other companies:
Adjusted earnings and related measures
These measures are used by management to evaluate performance and
allocate resources. Consistent with GAAP guidance for segment reporting,
adjusted earnings is also MetLife's GAAP measure of segment performance.
Adjusted earnings and other financial measures based on adjusted
earnings are also the measures by which
Adjusted earnings is defined as adjusted revenues less adjusted expenses, both net of income tax. Adjusted earnings available to common shareholders is defined as adjusted earnings less preferred stock dividends.
Adjusted revenues and adjusted expenses
These financial measures, along with the related adjusted premiums, fees
and other revenues, focus on our primary businesses principally by
excluding the impact of market volatility, which could distort trends,
and revenues and costs related to non-core products and certain entities
required to be consolidated under GAAP. Also, these measures exclude
results of discontinued operations under GAAP and other businesses that
have been or will be sold or exited by
The following additional adjustments are made to revenues, in the line items indicated, in calculating adjusted revenues:
The following additional adjustments are made to expenses, in the line items indicated, in calculating adjusted expenses:
Adjusted earnings also excludes the recognition of certain contingent assets and liabilities that could not be recognized at acquisition or adjusted for during the measurement period under GAAP business combination accounting guidance.
The tax impact of the adjustments mentioned above are calculated net of the U.S. or foreign statutory tax rate, which could differ from the company's effective tax rate. Additionally, the provision for income tax (expense) benefit also includes the impact related to the timing of certain tax credits, as well as certain tax reforms.
Return on equity and related measures
The above measures represent a level of equity consistent with the view that, in the ordinary course of business, we do not plan to sell most investments for the sole purpose of realizing gains or losses. Also refer to the utilization of adjusted earnings and other financial measures based on adjusted earnings mentioned above.
The following additional information is relevant to an understanding of MetLife's performance results:
Forward-Looking Statements and Other Financial Information
This news release may contain or incorporate by reference information that includes or is based upon forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements give expectations or forecasts of future events. These statements can be identified by the fact that they do not relate strictly to historical or current facts. They use words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "preliminary," "will be," "will not," and other words and terms of similar meaning, or are tied to future periods, in connection with a discussion of future financial performance. In particular, these include statements relating to future actions, prospective services or products, future performance or results of current and anticipated services or products, sales efforts, expenses, the outcome of contingencies such as legal proceedings, trends in operations and financial results.
Any or all forward-looking statements may turn out to be wrong. They can
be affected by inaccurate assumptions or by known or unknown risks and
uncertainties. Many such factors will be important in determining the
actual future results of
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