Creating Opportunities in a Challenging Environment Julio G. Villalon Head of Middle East Region MetLife.

Creating Opportunities in a Challenging Environment

Julio G. VillalonHead of Middle East RegionMetLife

Objectives

Overview of today’s environment

What we can expect in the future

- Some Challenges

- .. but also great Opportunities

How is MetLife dealing with these

challenges

The World Economy is Changing…

Source: International Monetary Fund, World Economic Outlook Database, September 2011 3

GDP DEVELOPED COUNTRIES GDP EMERGING COUNTRIES

Our Environment: Post – Financial Crisis

Customers•Loss of trust in financial sector•More sensitive to price•Higher risk aversion

Governments and Regulators•Sovereign debt crisis•New Regulation (Solvency II, Customer protection rules)

Insurance Industry•Consolidation•Shortage of capital - Some deleveraging geographically - Others deleveraging lines of business

Low Interest Rates

Lowest Interest Rates in Last 25 Years

Source: WSJ LIBOR: Historical Data

Our Environment: Future

Customers•Value more capitalstrength and solvency•Products with guarantees•Products more transparent

Governments and Regulators•More regulation and supervision

Insurance Industry: 2 Winning Strategies•Large companies that can leverage their size•Specialists who focus in specific risks or niche markets

What are the opportunities?

Life insurance is sold, not bought

Personal interaction is essential

It’s hard to cross-sell to existing customers

Providers can’t materially influence retention

• Customers want to make better-informed decisions when purchasing, rather than relying on the industry to know what’s right for them

• Customers expect to do far more research in the future using online sources, even though they may continue to use an advisor to complete the purchase

• Customers want to be rewarded for loyalty and repeat sales

• Providers could influence retention if they were better at meeting customers‘ changing needs and were prepared to offer better deals to stay

Responding to the New Customer Needs

Source: Ernst & Young global insurance customer survey, 2012; 24,000 customers in 23 countries covering Americas, EMEA and Asia

Life Industry Myths Based on Research

Where are the opportunities?

Emerging Markets will represent most of the growth

•More than 60% of Life Premium growth will come from Emerging markets

Corporations are becoming more Global•65% of Global 1000 have Employees outside the U.S.

Additional Trends

Source: McKinsey Global Insurance PoolDun & Bradstreet Research

MetLife - A leader in the International Life Market

Total Revenues1 $ M $68,150

Market capitalization2 $53.31B

# of countries present4 Over 45

Leading market positions5 Over 20 Markets

Total customers (M)4 90

Assets Total3 $M 836,781

MetLife has a strong

foundation

Will need to adapt to this

changing and challenging

environment

1 Total Revenues are from MetLife’s audited Consolidated Financial Statements for the years Ended December 31, 2012. This financial data should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the audited consolidated financial statements and related notes included in the Metlife’s 2012 Annual report. .

2 Market capitalization as of Oct 28th , 2013. Data from Yahoo Finance3 Assets Total: Consolidated Balance Sheet as of December 31st, 2012. 4 From MetLife Corporate profile. Customer and country information represent combined numbers for both life and non-life businesses. 5 AXCO Insurance Information Services, March 7, 2013

MetLife Positioning in Middle East

Turkey Since 1988

EgyptSince 1997

LebanonSince 1953 Jordan & PNA

Since 1958

Saudi ArabiaSince 1954

KuwaitSince 1954

QatarSince 1962

UAESince 1962

OmanSince 1971

BahrainSince 1960

Over 1350 Employees

Operating Since 1953

Leading Position in Region

10

MetLife Strategy

Drive Toward Customer Centricity and a Global Brand

Grow Emerging Markets

Build Global Employee Benefits

Business

Refocus the U.S. Business

GLOBAL * WORLD-CLASS * SCALE

ONE

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MetLife Strategy

Grow Emerging Markets•GDP Growth driving Insurance penetration

•Growing middle class needs for Life Insurance

Build Global Employee Benefits•Corporations increasing Global presence

•Employee Benefits as a lever to retain talents

Customer Centricity & Global Brand•Listen to Customers to derive better experiences

•Global Brand to differentiate ourselves

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MetLife Strategy Key Enablers

Talent/Collaboration/Communication

Scale & Efficiency

Regulatory Engagement:

- Creating long term relationship - Share Global expertise - Support strong regulation appropriate to marketplace

In Summary

Challenging Environment

• Economic and Financial crisis

- Clients’ loss of trust

- Higher Risk Aversion

• Changing Regulatory environment

• Persistent low interest rates

• Diverse Competition

• Economic and Financial crisis

- Clients’ loss of trust

- Higher Risk Aversion

• Changing Regulatory environment

• Persistent low interest rates

• Diverse Competition

Strategic Response

• Leverage size and scale vs. specialist approach

• Responding to the“new consumer”

• Need for global partnerships (Clients, Distributors, Partners, Brokers)

• Clients want to do business in different ways.

• Insurance penetration is increasing in emerging markets

• Corporations are becoming more Global

• Clients want to do business in different ways.

• Insurance penetration is increasing in emerging markets

• Corporations are becoming more Global

Significant Opportunities

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