NEW YORK--(BUSINESS WIRE)--MetLife, Inc. (NYSE: MET) today announced its responsible investment portfolio grew to more than $52 billion in 2018, and MetLife Foundation fulfilled its five-year commitment to provide $200 million in grants to improve financial inclusion worldwide and expanded its focus to financial health. Those are just two of the ways MetLife and MetLife Foundation are making a positive impact on society, as outlined in the company’s latest sustainability report, released today.
MetLife’s report, Global Impact, highlights how the company manages Environmental, Social and Governance (ESG) issues to make a positive impact on the world. The report includes information on MetLife’s record on climate issues and responsible investing, as well as efforts to make its products more accessible and easier to use, enhance customer value, and cultivate employee wellness and career development. It also details the company’s accomplishments in workplace diversity and MetLife Foundation’s work to improve financial health. Importantly, the report provides a progress update on MetLife’s ESG-related goals and commitments established in 2015.
“The very nature of insurance provides sustainable, long-term value to people,” said Mike Zarcone, MetLife executive vice president and head of Corporate Affairs. “Our business is to make and keep promises, sometimes decades into the future. We live up to these promises through the products we provide, the investments we make, and by operating responsibly. We are pleased to highlight the impact that we make on society in our annual Global Impact report.”
Some of the ways MetLife operated as a force for good in 2018 included:
- Paying approximately $48 billion in claims and benefits to policyholders, demonstrating the vital role the company plays in the social safety net.
- Fueling jobs and economic growth by investing $589 billion in total assets under management for policyholders and clients in agriculture, infrastructure, real estate, and businesses of all kinds.
- Being named to the Dow Jones Sustainability Index (North America) for the third year in a row.
- Earning recognition as one of America's 100 Most JUST Companies by JUST Capital and Forbes for the first time. The list recognizes high-performing U.S. companies on the issues that Americans define as priorities for good corporate behavior.
- Receiving recognition from CDP (formerly the Carbon Disclosure Project) for our high level of collaboration with suppliers on disclosing climate risks, placing MetLife on CDP’s Supplier Engagement Leader Board.
- Announcing a $10 million Workforce of the Future Development Fund to deliver learning programs to employees focused on digital skills, innovation and collaboration.
- Creating a new sustainability function to bring a strategic and coordinated approach to the company’s efforts, and appointing a Chief Sustainability Officer.
Global Impact is prepared in accordance with the latest standards published by the Global Reporting Initiative (GRI), the nonprofit organization that sets the standard for sustainability reporting. The GRI Standards provide a globally recognized framework for companies to measure and communicate their environmental, economic, social and governance performance. By adhering to this framework, MetLife joins thousands of companies around the world in quantifying the benefits and impacts of its business activities.
To view the report, and to learn more about MetLife’s sustainability activities, please visit www.MetLifeGlobalImpact.com.
MetLife, Inc. (NYSE: MET), through its subsidiaries and affiliates (“MetLife”), is one of the world’s leading financial services companies, providing insurance, annuities, employee benefits and asset management to help its individual and institutional customers navigate their changing world. Founded in 1868, MetLife has operations in more than 40 countries and holds leading market positions in the United States, Japan, Latin America, Asia, Europe and the Middle East. For more information, visit www.metlife.com.
CAUTIONARY STATEMENT ON FORWARD-LOOKING STATEMENTS AND NON-GAAP FINANCIAL INFORMATION
This release may contain or refer to forward-looking statements. Forward-looking statements give expectations or forecasts of the future using terms such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” “will,” and other terms tied to future periods. Results could differ materially from those expressed or implied in the forward-looking statements. Forward-looking statements are based on assumptions and expectations. They involve risks and uncertainties, including the “Risk Factors” MetLife, Inc. describes in its U.S. Securities and Exchange Commission filings. The company has no obligation to correct or update any forward-looking statement. Parts of this release may include additional information on forward-looking statements.
The release may also contain measures that are not calculated based on accounting principles generally accepted in the United States of America, or GAAP. Parts of this release, the Investor Relations portion of MetLife's website (www.metlife.com), or other parts of that website include information on non-GAAP financial information.
Explanatory Note on Non-GAAP Financial Information
Total Assets Under Management (“Total AUM”) is a financial measure based on methodologies other than accounting principles generally accepted in the United States of America (“GAAP”). Total AUM are comprised of GA AUM, plus Indexed SA AUM plus TP AUM (each as defined below). MetLife believes the use of Total AUM enhances the understanding of the depth and breadth of its investment management services on behalf of its general account investment portfolio, separate account index investment portfolios and unaffiliated/third party clients.
General Account Assets Under Management (“GA AUM”) is a financial measure based on methodologies other than GAAP. MetLife utilizes GA AUM to describe assets in its general account investment portfolio which are actively managed and stated at estimated fair value. MetLife believes the use of GA AUM enhances the understanding and comparability of its general account investment portfolio. GA AUM are comprised of general account Total Investments and cash and cash equivalents, excluding policy loans, other invested assets, contractholder-directed equity securities and fair value option securities, as substantially all of these assets are not actively managed in MetLife’s general account investment portfolio. Mortgage loans and certain real estate investments included in GA AUM have been adjusted from carrying value to estimated fair value. Classification of GA AUM by sector is based on the nature and characteristics of the underlying investments which can vary from how they are classified under GAAP.
Passive-Indexed Separate Account Assets Under Management (“Indexed SA AUM”) are passive-indexed insurance company separate account investment portfolios, which are stated at estimated fair value, managed by MetLife that track the return of industry market indices. Indexed SA AUM represent separate account assets of MetLife insurance companies which are included in MetLife, Inc.’s consolidated financial statements at estimated fair value.
Third Party Assets Under Management (“TP AUM”) are non-proprietary assets managed by MetLife on behalf of unaffiliated/third party clients, which are stated at estimated fair value. TP AUM are owned by such unaffiliated/third party clients; accordingly, TP AUM are not included in MetLife, Inc.’s consolidated financial statements.
MIM’s investment strategy incorporates relevant environmental, social and governance (“ESG”) considerations in the decision making process to support sustainable long-term returns. Responsible Investments are the portion of Total Assets Under Management that include the following four categories: Impact and Affordable Housing Investments, Green Investments, Infrastructure Investments and Municipal Bonds (i.e., Municipals).
All Other Investments are the portion of Total Assets Under Management that exclude Responsible Investments.
GA AUM, Total AUM and Responsible Investments are non-GAAP financial measures and should not be viewed as substitutes for Total Investments, the most directly comparable GAAP measure. Reconciliations of Total Investments to GA AUM, GA AUM to Total AUM and Total AUM to Responsible Investments are set forth in the table below. Total Investments under GAAP includes short-term investments and excludes cash and cash equivalents.
Additional information about MetLife’s general account investment portfolio is available in MetLife, Inc.’s quarterly financial materials for the quarter ended December 31, 2018, which may be accessed through MetLife’s Investor Relations Web page at http://investor.metlife.com.
Reconciliation of Total Investments to General Account Assets Under Management and Total Assets Under Management and Responsible Investments
|Plus: Cash and Cash Equivalents||15.8|
|Plus: Fair Value Adjustment - Mortgage loans||1.0|
|Plus: Fair Value Adjustment - Real Estate and Real Estate Joint Ventures||5.7|
|Less: Policy Loans||9.7|
|Less: Other Invested Assets||18.2|
|Less: Contractholder-Directed Equity Securities and Fair Value Option Securities||
|General Account Assets Under Management||$||418.2|
|Plus: Passive-Indexed Separate Account Assets Under Management||14.4|
|Plus: Third Party Assets Under Management||156.1|
|Total Assets Under Management||$||588.7|
|Less: All Other Investments||536.1|
Components of Responsible Investments:
|Impact and Affordable Housing Investments||$||2.6|