Index to Administration’s Dialogue and Evaluation of Monetary Situation and Outcomes of Operations Web page Ahead-Wanting Statements and Different Monetary Info 69 Enterprise 69 Abstract of Vital Accounting Estimates 70 Outcomes of Operations 71 Adopted Accounting Pronouncements 76 Future Adoption of Accounting Pronouncements 76 Non-GAAP and Different Monetary Disclosures 76 Danger Administration 76 68

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Ahead-Wanting Statements and Different Monetary Info

For functions of this dialogue, “MLIC,” the “Firm,” “we,” “our” and “us”
seek advice from Metropolitan Life Insurance coverage Firm, a New York company
included in 1868, and its subsidiaries. Metropolitan Life Insurance coverage Firm
is a wholly-owned subsidiary of MetLife, Inc. (MetLife, Inc., along with its
subsidiaries and associates, “MetLife”). Administration’s narrative evaluation of the
Firm’s outcomes of operations is introduced pursuant to Basic Instruction
H(2)(a) of Kind 10-Q. This narrative evaluation must be learn along with
Metropolitan Life Insurance coverage Firm’s Annual Report on Kind 10-Okay for the yr
ended December 31, 2021 (the “2021 Annual Report”), the cautionary language
Concerning forward-looking statements included beneath, the “Danger Elements” set
forth in Half II, Merchandise 1A, and the extra danger components referred to therein,
and the Firm’s interim condensed consolidated monetary statements included
elsewhere in.

This narrative evaluation could comprise or incorporate by reference data that
consists of or relies upon forward-looking statements inside the that means of the
Non-public Securities Litigation Reform Act of 1995. See “Notice Concerning
Ahead-Wanting Statements” for cautionary language concerning forward-looking

This narrative evaluation consists of references to our efficiency measure, adjusted
Earnings that aren’t based mostly on accounting rules typically accepted within the
United States of America (“GAAP”). See “- Non-GAAP and Different Monetary
Disclosures” for definitions and a dialogue of this and different finance
measures, and “- Outcomes of Operations” for reconciliations of historic
non-GAAP monetary measures to essentially the most instantly comparable GAAP measures.

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MLIC is a supplier of insurance coverage, annuities, worker advantages and property
administration. MLIC is organized into two segments: US and MetLife Holdings. In
addition, the Firm stories sure of its outcomes of operations in Company
&Different. See Notice 2 of the Notes to the Interim Condensed Consolidated Monetary
Statements for additional data on the Firm’s segments and Company &

COVID-19 Pandemic and Present Market Situations

We proceed to intently monitor developments referring to the COVID-19 pandemic
and assess its influence on our enterprise. We have now carried out danger administration and
enterprise continuity plans and brought preventive measures and different precautions,
akin to worker enterprise journey restrictions and distant work preparations
which, to this point, have enabled us to take care of our vital enterprise processes,
customer support ranges, relationships with key distributors, monetary reporting
methods, inner management over monetary reporting and disclosure controls and

The COVID-19 pandemic continues to influence the worldwide financial system and finance
markets and has triggered volatility within the world fairness, credit score and actual property
markets. Governments and central banks around the globe responded to the
COVID-19 pandemic with unprecedented fiscal and financial insurance policies, however a lot of
these stimulus applications have concluded as a consequence of world financial restoration and
rising inflation. In the USA, the Federal Reserve Board ended its
buy asset program in March 2022 and can start to scale back its holdings on
June 1, 2022. In March and Could 2022, the Federal Open Market Committee raised
rates of interest; additional will increase within the goal vary for the federal funds price
are anticipated all through 2022 to fight inflation.

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See “- Outcomes of Operations” for additional data concerning the impact of
the COVID-19 pandemic on our companies.

Regulatory Developments

The next dialogue on regulatory developments must be learn in
conjunction with “Enterprise – Regulation” within the 2021 Annual Report, as amended
or supplemented right here.

Environmental Legal guidelines and Laws

In furtherance of President Biden’s Government Order on Local weather-Associated Monetary
Danger, dated Could 20, 2021, the Federal Insurance coverage Workplace (“FIO”) sought public
touch upon climate-related monetary dangers within the insurance coverage trade via
November 2021. The FIO’s request for data famous that it’ll work on
assessing how the insurance coverage sector could mitigate local weather change impacts and assist
obtain nationwide climate-related objectives. The FIO intends to publish a report by
year-end that addresses climate-related points within the regulation of insurers and
local weather associated disclosures by insurers.


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On March 21, 2022, the US Securities and Alternate Fee proposed guidelines
requiring registrants to supply extra climate-related data of their
registration statements and annual stories, together with of their monetary statements
statements. The proposal units forth proposed guidelines for disclosure of
climate-related dangers, materials impacts, governance, danger administration, finance
assertion metrics, greenhouse fuel emissions, attestation of emissions
disclosures, and targets and objectives.

London Interbank Supplied Fee

In March 2022, federal laws was enacted to deal with the transition from
US Greenback London Interbank Supplied Fee (“LIBOR”) to various reference
charges for all US regulation ruled contracts with non-existent or insufficient US
Greenback LIBOR fallback provisions. The federal laws supersedes all states
regulation addressing the US Greenback LIBOR transition, together with laws enacted
in New York in 2021. We proceed to evaluate present and various reference
charges’ deserves, limitations, dangers and suitability for our funding and
insurance coverage processes.

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Abstract of Vital Accounting Estimates

The preparation of economic statements in conformity with GAAP requires
administration to undertake accounting insurance policies and make estimates and assumptions that
have an effect on quantities reported on the Interim Condensed Consolidated Monetary
assertion Essentially the most vital estimates embrace these utilized in figuring out:

(i) liabilities for future coverage advantages and the accounting for reinsurance;

(ii) capitalization and amortization of deferred coverage acquisition prices
(“DAC”) and the institution and amortization of worth of enterprise acquired

(iii) estimated truthful values ​​of investments within the absence of quoted market

(iv) funding allowance for credit score losses and impairments;

(v) estimated truthful values ​​of freestanding derivatives and the popularity and
estimated truthful worth of embedded derivatives requiring bifurcation;

(vi) measurement of worker profit plan liabilities;

(vii) measurement of revenue taxes and the valuation of deferred tax property; different

(viii) Liabilities for litigation and regulatory issues.

In making use of these insurance policies and estimates, administration makes subjective and
advanced judgments that incessantly require assumptions about issues which can be
inherently unsure. Many of those insurance policies, estimates and associated judgments
are widespread within the insurance coverage and monetary providers industries; others are
particular to our enterprise and operations. Precise outcomes might differ from these

The Firm’s vital accounting estimates are described in “Administration’s
Dialogue and Evaluation of Monetary Situation and Outcomes of Operations –
Abstract of Vital Accounting Estimates” and Notice 1 of the Notes to the
Consolidated Monetary Statements included within the 2021 Annual Report.


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