©UFS
Independent Distribution Group Third Party Distribution at MetLife Presented to CSFB Conference November 16, 2005 Michael K. Farrell Senior Vice President, MetLife Independent Distribution Group
Agenda • IDG Mission & Organization Structure • Size and Scope • 2005 Sales Results • Travelers’ Integration Update • Industry Issues • Q&A For Producer Use Only. Not For Use With The General Public.
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MetLife Investors – A Time & Place for Independence • Independent Distribution arm of MetLife • Roots as a startup Variable Annuity company • Combined with General American to form MetLife’s Independent Distribution Group • Added LTC in 2004-2005 • Now combined with TL&A: Combined sales support and wholesaler organization Focused operation to better support your business
For Producer Use Only. Not For Use With The General Public.
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Strategic Intent - MetLife Investors To be recognized as the leading provider of lifestyle preservation solutions distributed through independent producers: –By 2008 be #1 in the sale of life insurance, long-term care insurance, and variable annuities sold through independent distributors.
For Producer Use Only. Not For Use With The General Public.
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Independent Distribution
Mike Farrell Senior Vice President Independent Distribution
Strategic Planning
Life Insurance Sales
Annuity Sales Long Term Care Sales
Operations & Planning
Investment Fund Mgmt Marketing
Broker Dealer Group
For Producer Use Only. Not For Use With The General Public.
MetLife Resources
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IDG percent of Enterprise sales
Pre-Acquisition
Pro Forma Combined
Annuity
Annuity
Life
Life
LTC
LTC
Mutual Funds
Mutual Funds 0%
20%
40%
60%
80% 100%
Independent Distribution Affiliated Distribution
As of 6/30/05
0%
20%
40%
Independent Distribution
For Producer Use Only. Not For Use With The General Public.
60%
80% 100%
Affiliated Distribution
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Enhanced Market Position Institutional
Individual Annuities
Individual Life
Sales
Sales Rankings1
Rankings2
Asset Rankings3 9.3%
1. MetLife (w/Travelers)
36.7%
2. MetLife (w/Travelers)
7.5
2. Principal Financial
11.9
6.1
3. Hartford
7.3
3. MassMutual
10.6
4. AIG
5.9
4. TIAA-CREF
6.0
4. Transamerica
10.4
5. Manulife
5.5
5. ING
5.8
6. ING (U.S.)
5.5
4. Allianz
5.8
7. Aegon
5.1
1. MetLife (w/Travelers)
7.7%
1. AIG
2. New York Life
6.2
3. Northwestern Mutual
Source: LIMRA, VARDS, LIMRA U.S. Pension Sales and Assets 2/2005 report. 1. Based on Annualized Universal Life, Variable Universal Life, Whole Life and Term Life. 2. Based on Total Sales in Variable and Fixed Annuities. 3. Based on New Deposits in Single Premium Buyouts and Terminal Funding. 3/31/05. For Producer Use Only. Not For As UseofWith The General Public.
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Variable Annuity Sales by Channel – 3Q 2005
28%
10% 54%
8% Independent Distribution - Up 4% YOY MetLife - Up 3% YOY MetLife Resources - Up 10% YOY New England - Down 9% YOY For Producer Use Only. Not For Use With The General Public.
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Variable Annuity Sales Ranking $ in millions
YTD 2005 Rank 1 2 3 4 5 6 7 8 9 10
Company TIAA-CREF MetLife Hartford AXA ING Group Lincoln National AIG/SunAmerica John Hancock Pacific Life Prudential/American Skandia Industry
YTD 2005 Premium 6,839.0 6,395.2 6,095.8 5,024.2 4,069.8 4,061.9 3,992.8 3,238.1 3,200.5 3,197.5
YTD 2005 Mkt Share 11% 10% 9% 8% 6% 6% 6% 5% 5% 5%
64,482.4
Source: VARDS, Sales & Asset Survey Tables and Use Charts Q2For 05Use With The General Public. For Producer Only. Not
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LIMRA Life Sales Ranking $ in thousands
Q2 05 Rank Company 1 2 3 4 5 6 7 8 9 10
MetLife Companies AIG American General Northwestern Mutual New York Life Aegon USA ING Life John Hancock/ManuLife State Farm Life Pacific Life AXA Financial Industry
Q2 05 Premium
Q2 05 % Mkt Share
355,938 302,739 289,713 286,546 268,004 252,791 246,170 172,085 161,441 160,760
7.5% 6.3% 6.1% 6.0% 5.6% 5.3% 5.2% 3.6% 3.4% 3.4%
4,774,887
For Producer Use Only. Not For Use With The General Public.
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Independent Distribution Metrics as of 09/30/05
($ in Thousands)
Wholesalers
YTD 04
YTD 05
% Chg
102
279
174%
78,704
90,921
16%
515
550
7%
WSS Registered Reps
1,370
1,177
-14%
TWS Registered Reps
-
Appointed Reps Selling Group Members
692
For Producer Use Only. Not For Use With The General Public.
-
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MetLife Resources
• MetLife Resources combined with CitiStreet Associates 09/01/05 • #2 Market Share in K-12 market • 1.3 million customers • Serves non-profit retirement needs • Year to date annuity sales up 32% • 857 full time representatives
For Producer Use Only. Not For Use With The General Public.
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Historic Moment for MetLife & Travelers • February 2005 – MetLife announces strategic intent to buy Travelers Life & Annuity and Citinsurance • July 1, 2005 - Successful close of transaction • November 1, 2005 - Full integration – Re-platforming products to create common set of business processes & systems – Expanded distribution channels – Execute as one company to realize the full value of this transaction
For Producer Use Only. Not For Use With The General Public.
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Travelers Integration Update - Annuities • Reorganized Sales Management by Channel
For Producer Use Only. Not For Use With The General Public.
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Channel Organization - Annuities
National Sales Manager Annuities / LTC
Channel Head Wirehouse
Channel Head Planner
Channel Head Broker Dealer
Channel Head Bank
For Producer Use Only. Not For Use With The General Public.
Channel Head Long Term Care
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Travelers Integration Update - Annuities • Reorganized Sales Management by Channel
• Integrated Annuity Wholesaling Territories/Markets
For Producer Use Only. Not For Use With The General Public.
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Travelers Integration Update - Annuities • Integrated Annuity Wholesaling Territories/Markets: • Distribution Channels • Wirehouse • Planner/Wrap/Proprietary BD • Broker Dealer/Primerica • Bank
• Account Management • Sales Desk Support
For Producer Use Only. Not For Use With The General Public.
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Distribution Organization - Annuity
For Producer Use Only. Not For Use With The General Public.
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Travelers Integration Update - Annuities • Reorganized Sales Management by Channel
• Integrated Annuity Wholesaling Territories/Markets
• Annuity Headcount
For Producer Use Only. Not For Use With The General Public.
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Q3 Comments - Annuities • TLA distribution relationships represented 4 out of 6 of our largest distributors • TLA Sales down 15% quarter over quarter – as expected • Replatformed product marketing begins • • • •
Citibank/Smith Barney Morgan Stanley Primerica Wrap Channel
11/07 12/01 01/01 01/15
• Tower Square retained reps – GDC up 7% • CitiStreet Integration complete and new org – 1/1/06 kickoff Producer Use Only. Not Forbetween Use With The General Public. • Solid RelationshipsFor developing firms
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Travelers Integration Update - Life • Life Insurance Management Reorganization
For Producer Use Only. Not For Use With The General Public.
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Distribution Organization • Distribution Channels: •
•
Independent Channel •
Independent Division
•
Bank Division
National Accounts Channel
• Account Management • Sales Desk Support • Advanced Market Support
For Producer Use Only. Not For Use With The General Public.
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Distribution Organization - Life
For Producer Use Only. Not For Use With The General Public.
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Travelers Integration Update - Life • Life Insurance Management Reorganization • Life Wholesaler Headcount
For Producer Use Only. Not For Use With The General Public.
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Travelers Integration Update - Life • Life Insurance Management Reorganization • Life Wholesaler Headcount • Product Development
For Producer Use Only. Not For Use With The General Public.
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Competitive Product Portfolio & Integration
• TL&A Acquisition Closes Gap in Life Portfolio – TL&A Market Leader Fixed Universal Life – MetLife Market Leader: Variable Life, Whole Life, Term
• Ease of Doing Business Leads to Common Branding – MetLife Investors USA Insurance Co. → Non-New York – Metropolitan Life Insurance Company → New York
For Producer Use Only. Not For Use With The General Public.
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Product Strategy “MVP” UL (Secondary Guarantee)
Guarantee Advantage UL
11/05
“TSL” Joint Life UL (CA/PF)
MLI Legacy Advantage SUL
11/05
“TSL” Joint Life UL (Secondary Guarantee)
MLI Legacy Advantage SUL
11/05
“Prosperity Builder” Single Premium UL
MLI Single Premium Advantage UL
TBD
“Special T” Term Insurance
Current MLI Term
Close
“TVLAC & TVLDB” VUL
New MLI VUL
05/06
“VSLII” Variable Survivorship Life
New MLI VSL
2006
For Producer Use Only. Not For Use With The General Public.
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Travelers Integration Update - Life • Life Insurance Management Reorganization • Life Wholesaler Headcount • Product Development • Service Strategy
For Producer Use Only. Not For Use With The General Public.
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New Business Service Model • One Operational Site • Contracting and licensing • New Business -
Client Acquisition Team Case Management Underwriting
• New Business Remittance in Hartford • Customized and focused technology – – – –
Provide imaging capabilities in support of Paperclip, Image 1, etc. Support agency operating systems such as Zebu and Agency Works Support industry standard forms delivery, such as iPipeline Support National Securities Clearing Corporation and Depository Trust & Clearing Corporation feeds
• Building on existing “Independent culture” For Producer Use Only. Not For Use With The General Public.
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Q3 Comments - Life • Target Premiums Flat • Dump-ins down ↓ 23% • Intentional Product repricing • Reduce comp/higher targets
• Investor Owned Life Insurance (IOLI) • Life Underwriting • Staffing • Capacity • Oversight
For Producer Use Only. Not For Use With The General Public.
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Industry Issues • Proliferation of Income Features • Tightening Reinsurance • Investor Owned Life Insurance • Regulation/Suitability • Tax Reform • Retirement Boom
For Producer Use Only. Not For Use With The General Public.
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Q&A
For Producer Use Only. Not For Use With The General Public.
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Thank You
For Producer Use Only. Not For Use With The General Public.
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R R
For Producer Use Only. Not For Use With The General Public.
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