A newsletter for MetLife Retirees
connections A Message from CEO Rob Henrikson This past year was a year like none
As we reach the end of our 140th
Especially today, this approach will
other. Amid this environment,
anniversary year, I want you to
continue to differentiate us and
MetLife remains strong and steady.
keep in mind that as a company
ensure that MetLife is well
We are a company
we have witnessed extraordinary
positioned to achieve further
our customers
market cycles over this period of
success and, indeed, extend our
time. But what has set us apart —
leadership in the market.
can count on.
and continues to do so — is the long-term approach to our
Thank you for making MetLife the
business. The promises we make
great company that it is. I wish you
are contingent upon us being there
and your loved ones a happy,
for our customers’ lifetimes. This is
healthy and peaceful season.
■
what we do, and do so well.
Stock Market Volatility and Your MetLife Retirement Benefits In October, Kathleen Henkel, senior vice president
assets in a prudent manner — taking a disciplined
of MetLife Human Resources, wrote to retirees with
approach to risk management in order to meet the
reassurance about the Metropolitan Life Retirement
needs of Plan participants, both active associates
Plan. In light of recent events in the economy, it
and existing and future retirees. We want you to
bears repeating that her message still rings true.
know that the Retirement Plan continues to be well funded and capable of meeting its projected
Kathy wrote: “In the Summer 2008 edition of the
payment obligations.
Connections newsletter for MetLife retirees, we communicated about the Plan in an article titled,
“You should also know that both the Retirement
‘MetLife Retirement Plan on Solid Footing.’ Since
Plan and the MetLife Savings and Investment Plan
this article was published, the turbulence in the
(SIP) are tax-qualified plans covered under the
financial markets has increased rather than
Employee Retirement Income Security Act of 1974
decreased. However, MetLife continues its
(ERISA), which requires the plans to be funded
commitment to managing the Plan and investing its
using investment accounts that are separate from Continued on page 2 ➔
Winter 2008
Volume 2 | Issue 2
Winter 2008
Continued from page 1
Stock Market Volatility and Your MetLife Retirement Benefits the general accounts of MetLife and are to be used
day, Monday through Saturday and after 1 p.m.,
solely for the payment of participant benefits.”
Eastern Time, on Sunday. In addition, the Benefits Manual pages on the Your Retirement Benefits Web
As a reminder, if you have general questions about
site also provide a wealth of information about
your MetLife retirement benefits — the Savings and
how your retirement benefits work. Log on at
Investment Plan (SIP) and Retirement Plan — you
www.yourretirementbenefits.net/metlife.
can contact the Retirement Benefits Service Center at 800-677-5678. Service representatives are
If you are currently in receipt of payment from the
available between 8 a.m. and 6 p.m., Eastern Time,
Retirement Plan and have questions about your
Monday through Friday, except on holidays; and the
payment, you can contact the MetLife Retiree
automated telephone system is available 24 hours a
Service Center at 800-553-3803.
■
It’s Planting Time: MetLife Beautifies NYC with 140,000 Daffodils for 140 Years In honor of MetLife’s 140th
1,400 acres in parks and open
of New Yorkers for Parks in
year anniversary celebration,
space in all five boroughs of
support of the annual Daffodil
the enterprise made a
New York City this month.
Project. Throughout October,
to the New Yorkers for Parks
On October 16, in Manhattan’s
with hundreds of volunteers,
Daffodil Project. This contribution
Stuyvesant Park, Snoopy and Sibyl
planted thousands of daffodil
enabled the Daffodil Project to
Jacobson, president and CEO,
bulbs in parks and open space
provide an additional 140,000
MetLife Foundation, joined 120
citywide.
daffodil bulbs to be planted in
students from P.S. 40 and leaders
commemorative contribution
community organizations, along
Conceived in 2001, the Daffodil Project is a citywide effort to beautify every neighborhood park in New York City by planting daffodils. To date, more than three million daffodils have been planted in all five boroughs.
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MetLife’s support of the Daffodil Project was announced last spring. Shown here with Snoopy® are, from left, Lynden B. Miller, co-chair of the Board of Directors of New Yorkers for Parks; Chairman Rob Henrikson; and Adrian Benepe, commissioner of the New York City Department of Parks & Recreation.
2
connections Going Greener: Nine MetLife Facilities Now Have an Energy Star MetLife has implemented an
seven other MetLife sites that have
corporate citizenship, it’s also
aggressive energy and
also earned an Energy Star since
good business. In fact, we are
environmental management
late 2007 — are in the top 25
now seeking LEED (Leadership in
policy, incorporating industry and
percentile of efficiently operated
Energy and Environmental
individual best practices, that has
buildings in the United States.
Design) certification for some sites, which is the ultimate in
made our enterprise a leader in the financial services industry for
Other MetLife facilities that have
environmentally friendly
Energy Star-certified properties.
earned the Energy Star are:
designations for commercial
• Bridgewater, NJ
buildings. Fewer than 100
• Convent Station, NJ
commercial sites in the entire
• Johnstown, PA
country have earned a LEED
• Long Island City, NY
certification.”
• Oriskany, NY • Somerset, NJ
John also congratulated his
• 700 Quaker Lane, Warwick, RI
Corporate Real Estate team, MetLife’s building management
MetLife is also pursuing Energy
partners Cushman & Wakefield
Star certification for offices in
and, just as importantly, all
St. Louis, MO and Tampa, FL.
MetLife associates in these
Together, all these sites house
facilities. “Associates’ efforts in
40 percent of our total U.S.
doing the right things every day
Recently, our facilities in Aurora
workforce. In fact, MetLife has one
— such as turning off task lights,
and Freeport, IL became the latest
of the largest Energy Star-rated
printers and other electronic
MetLife sites to receive an Energy
real estate portfolios in the U.S.
equipment when not in use — is
Energy Star plaques hang proudly in nine MetLife facilities.
an important contribution to our
Star, the nationally recognized symbol of superior energy
“Our goal,” said John Vazquez,
energy conservation efforts,”
efficiency and environmental
vice president, Corporate Real
John said. “I want to thank
protection awarded by the U.S.
Estate, “is to continue to find new
everyone who continues to pitch
Environmental Protection Agency
ways to make all our facilities
in and help our enterprise ‘go
(EPA) and the U.S. Department of
more efficient, reduce our impact
green.’ We recognize that there
Energy. Aurora’s and Freeport’s
on the environment, reduce
is still more to do and, together,
Energy Star designations mean
expenses and be more energy-
we can make a difference in
that these facilities — along with
friendly. That’s not only good
tomorrow’s world.”
■
Wishing the best to our readers . . . All throughout 2008, MetLife has celebrated its 140th anniversary — a tribute to the history that all of us who’ve been part of MetLife share. As we look ahead to 2009, Connections wishes you and your loved ones a safe, happy and wonderful New Year! 3
Winter 2008
Supporting the Troops MetLife associates regularly conduct volunteer activities to reach out to help their communities and beyond. Supporting the troops holds a special place — here are two recent examples. Dallas Associates Welcome American Troops Home from Iraq
Illinois Associates Launch “Operation Afghanistan” MetLife associates from two neighboring offices in
On a recent Friday morning, a dozen MetLife
Illinois have demonstrated their patriotism with
Auto & Home® associates from the Dallas Field
heartfelt support for the military in war zones.
Claim Office headed to Dallas-Fort Worth International Airport to meet some real-life heroes.
The Mt. Prospect/Schaumburg Local Inclusion Action Team celebrated Independence Day by shipping
The associates were taking part in a community
more than 100 boxes of “wish list” items to troops
program to greet military members coming home
overseas. Mt. Prospect associates originated this
to America from their deployments in Iraq. Charter
program last year in concert with the “Adopt a
flights arrive regularly at Dallas-Fort Worth with
Platoon” armed forces support organization,
troops on their way home for two-week periods
sending 89 boxes of supplies to soldiers in Iraq.
of R&R (Rest and Recuperation). This year, Adopt a Platoon assigned Mt. Prospect The plane arrived at about 8 a.m. carrying some
a 90-member infantry platoon in Afghanistan
240 U.S. troops, most of whom were headed to
deployed with the U.S. Army from Ft. Campbell,
connecting flights for other cities.
KY with the 101st Airborne. “Our platoon is in a remote part of the country, with no PX (post
Military representatives and local news media were
exchange store) at their location,” reports Jo Ann
on hand to photograph the troops and the greeters,
Robinette, RN, nurse consultant, Disability Product
says Susan Wade, claims adjuster. “We waved our
Management, Mt. Prospect. “They’re on missions
flags, thanked the troops and left knowing we had
through the mountains and, in addition to the
done something special that day.”
usual ‘wanted’ items, there was a need for winter wear — hand/foot warmers, knit hats and extra boot socks to keep their feet dry.” The associates outdid the previous effort, this year shipping 104 boxes of food, toiletries and fun items such as baseball cards, fitness magazines, puzzle books, playing cards, handheld video games, CDs, Frisbees and yo-yos. “American flags were placed in every box,” adds Jo Ann, “and we included a picture of MetLife employees holding up a ‘Thank You’ sign. Thank-you
Dallas associates wore MetLife shirts and carried flags while participating in the patriotic program.
4
Continued on page 5 ➔
connections Continued from page 4
Troops cards and ‘get home safely’ cards were stuffed in
On the local front, the MetLife teams also donated
the boxes signed by teams.”
several boxes of items to a shelter/pantry in nearby Oak Park, IL that assists homeless veterans.
In Schaumburg, associates had a very personal connection to the effort. Corporal Garrett King,
Fund-raising was enhanced by a bake sale, a “USA
proudly serving with the U.S. Marine Corps in Iraq,
trinket” sale of flag pins and other patriotic objects,
is the son of Barb Lacey, senior client services
and by a neighborhood eatery that donated 25
consultant, National Accounts. Schaumburg
percent of sales made to MetLife lunchtime
dedicated their efforts to Garrett’s platoon by
customers.
shipping 26 boxes directly to him. “Participation in this program was overwhelming,” In addition to the shipments to Iraq and
Jo Ann says. “Words cannot express the blessings we
Afghanistan, associates collected 49 used cell phones
have been given and to let our troops know of
and donated them to “Cell Phones for Soldiers,” an
MetLife’s patriotic spirit and love. We hoped to show
organization that recycles phones to furnish soldiers
that these brave men and women are not forgotten
with pre-paid calling cards. For every donated
and that we support the heroes who defend the
phone, an hour of talk time was provided.
freedoms of our country.“
■
Customer Service Receives 4th Consecutive Award of Excellence MetLife’s Customer Sales & Service
Center for Customer-Driven
attract new customers. “This
Group (CSSG) has earned the
Quality. “Such an achievement
unique and unprecedented
prestigious distinction of being
hallmarks management’s
accomplishment reflects the efforts
named a Certified Center of
commitment and dedication to
of every CSSG associate and
Excellence for a fourth consecutive
success and their pursuit of call
reiterates our unwavering
year. MetLife is one of only three
center best practices and
commitment to our customers,”
companies ever to achieve the
improvement initiatives.”
said Vice President Karen Hemenway.
certification four years in a row. Receiving the Center of Excellence “In 2008, MetLife accomplished an
Certification demonstrates that
The Certified Center of Excellence
outstanding achievement by
CSSG’s overall results are among
Certification is awarded by
becoming one of an elite few that
the best-in-class in its industry. It
Purdue University’s Center for
have successfully achieved the
also reflects the ability to deliver
Customer-Driven Quality, in
status of a Certified Center of
superior customer service, foster
partnership with BenchmarkPortal
Excellence during four consecutive
existing customer relationships,
— a Web-based benchmarking
years,” said Kamál Webb from the
and provide an opportunity to
service for call centers.
■
Statements made in this publication may constitute forward-looking statements within the meaning of the federal securities laws, including statements relating to trends in the company’s operations and financial results, the markets for its products and the future development of its business. MetLife’s actual results may differ materially from the results anticipated in the forward-looking statements as a result of risks and uncertainties, including those described in MetLife, Inc.’s filings with the SEC. MetLife specifically disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise.
5
Winter 2008
MetLife Sweepstakes Offered Lucky New Yorker a Place in Yankee Stadium History As reported in the Summer issue
More than 46,000 consumers
Connections received this letter
of Connections, MetLife was the
entered the contest, and the
sponsor of the “Regular Season
winner was Ron Glick from the
from reader Tom Duckworth of Manhattan:
Countdown” board at Yankee
Upper West Side of Manhattan.
Stadium, while the New York
Ron and his family enjoyed not
“I read with interest the article
Yankees played their final
only the game, but also the
entitled, ‘MetLife Wins Big at
season at the famed ballpark
opportunity to meet Yankees
Yankee Stadium as Countdown
before moving to a new stadium
Manager Joe Girardi and, of
Sponsor.’ As a MetLife retiree, I
next season.
course, pull the Countdown lever.
have been working part-time as a security officer at Yankee Stadium
To celebrate the exciting final
The contest was all about
for many years. Working with the
games at Yankee Stadium, MetLife
promoting MetLife’s brand and
fans in right field, I can attest to
gave consumers in the New York
driving traffic to www.metlife.com.
their interest in the ‘Countdown’
tri-state area the opportunity to
In fact, during the contest
of remaining Yankee games. In
become a part of history through
duration, more than 71,000
fact, several season ticket holders
the MetLife Countdown
consumers took the opportunity
have been taking pictures of
Sweepstakes. The contest gave
to visit our site and become
each countdown.
one lucky winner the chance at a
more educated about MetLife.
Yankees VIP experience, including
“For those of us who have been
pulling the countdown lever in
On September 21, the Countdown
working at Yankee Stadium, we
front of approximately 55,000
reached zero as the Yankees
are sorry that the stadium, which
stadium fans during the New
played the Baltimore Orioles in
holds so many memories, is being
York Yankees vs. Tampa Bay Rays
their final home game of the
torn down. We will miss it.”
game on September 13, broadcast
2008 regular season.
■
on the YES Network.
Emmy Awarded to MetLife-Sponsored Live From Lincoln Center Live From Lincoln Center’s broadcast of Madama
MetLife is the lead sponsor of Live From Lincoln
Butterfly was honored with a Primetime Emmy Award
Center, the only live performing arts series on
at the 2008 Creative Arts Emmy Award Ceremony.
television. Since its inception in 1976, Live From
Performed by the New York City Opera, Madama
Lincoln Center has won 13 Emmy Awards and 54
Butterfly originally aired on March 20, 2008. The
Emmy nominations, in addition to numerous other
award was in the Outstanding Special Class Program
awards and honors. Broadcast on approximately 300
— Classical Music/Dance Programs category.
PBS stations around the country, each program is watched by more than 30 million viewers.
6
■
connections Friends we’ll miss
In Memoriam for May – October 2008 Abboud, Donald C. - Sept. 1 Adams, Beatrice - Sept. 2 Aegerter, Margaret - Sept. 13 Alaimo, Angelo - Oct. 12 Amenta, Samuel J. - Oct. 28 Andersen, Bergwin E. Aug. 24 Andrews, Helen R. - June 12 Arena, Filippo - May 3 Ashley, John B. - June 5 Bannar, George M. - June 26 Bar, Betty M. - Aug. 26 Barone, Anthony S. - Aug. 23 Bauer, Jr., Melvin - Aug. 2 Bazile, Jacob C. - Oct. 22 Beardsley, Ruth L. - Oct. 2 Bebo, Angelo - July 15 Belcourt, Fabiola - July 17 Benfield, Harold W. - Aug. 19 Bennice, Madeline N. Aug. 8 Berger, Frances R. - July 8 Berkman, Evelyn - June 28 Betz, Mary R. - June 19 Bjerke, Leverne A. - Sept. 2 Black, Margaret C. - May 14 Blake, Theresa - May 13 Blumenthal, Rhoda B. May 12 Boedeker, Virginia M. Oct. 13 Boles, Fred C. - July 21 Bothmann, Ruth - July 2 Brennan, Alice M. - June 16 Brereton, Dorothy A. Sept. 20 Brosman, Martin - Oct. 15 Broyles, Lynn N. - July 22 Bryant, Edward R. - July 24 Bryce, Valerie Titus - June 10 Buckman, Dorothy J. - May 4 Budway, Rosemary - June 3 Burckhardt, Michael E. May 24 Burmeister, Mary - Sept. 8 Bushey, Joan Caroline Aug. 3 Bushong, Doris K. - Aug. 1 Calefati, Anthony - Sept. 8 Callahan, Dorothy - June 8 Cannell, Mary C. - June 11 Cantos, Manuel R. - May 5 Carson, P. D. - Aug. 12 Cash, La Verne M. - Aug. 4 Cattarina, Lillian K. - Oct. 10 Chahrouri, Sami - May 16 Chait, David - Oct. 9 Chapman, John D. - Oct. 6 Chin, William H. - June 4 Christofileas, Rose C. June 15 Cody, Bianca R. - June 18 Colosimo, Joseph V. - June 24 Cook, Gladys L. - May 7 Cornell, Frederick - Aug. 14
Corr, James O. - Oct. 4 Cousin, William - Aug. 3 Cox, Edward H. - June 16 Cox, Jr., Clarence - May 1 Cox, Lloyd P. - July 12 Craith, David - May 16 D’Amato, Albert A. - Aug. 10 Dailey, Rosaria - May 2 Dalen, Winifred - June 6 Daley, Petrona - May 14 Daly, Mary M. - Sept. 13 Degnan, Patricia M. - Aug. 20 DeSantis, Anna M. - June 12 DeSantis, Dante - July 6 Devries, Gordon - Sept. 4 Dickinson, Donald W. Sept. 1 Dickstein, Morton H. - July 17 Domenech, Carmen - Aug. 3 Downes, Hannie T. - Aug. 9 Downing, Dolores - June 4 Dresch, Jean L. - June 23 Dugas, Alton J. - Sept. 6 Eadie, Gisela W. - May 18 Edwards, Albert R. - Oct. 14 Ellenburg, Velma C. - June 19 Emrick, George A. - Sept. 11 Fava, Elvira M. - Oct. 5 Ferrara, Vincent - Oct. 10 Ferris, Helen U. - Sept. 27 Ferris, Wesley W. - Sept. 22 Forgerson, Shirley A. - July 11 Franco, Louis P. - June 2 Franklin, Alberta J. - Sept. 9 Frauwirth, Benjamin Aug. 15 Gagliano, Elizabeth - Aug. 17 Gaines, Willard E. - May 9 Gallagher, Edward S. May 24 Gallagher, Theresa C. - May 1 Gatrell, Victoria - Oct. 1 Geib, Richard - June 17 Genovese, Frank J. - Aug. 8 Geppi, Rose M. - June 22 Germano, Frank J. - Oct. 22 Gerstl, Hedy - Oct. 21 Gessel, Emil L. - Aug. 19 Giglio, Leonard R. - May 8 Giorgi, Angeline E. - Oct. 16 Graham, James R. - Oct. 6 Graham, Roger H. - July 17 Greif, Joseph A. - Aug. 4 Gruen, Nate S. - June 23 Guido, Vincent R. - May 5 Halen, Raymond D. - Sept. 16 Hall, Phillip E. - May 16 Hammond, Learta - Sept. 18 Hanbury, Dorothy A. Aug. 20 Hanson, Arthur D. - Sept. 6 Hatfield, John P. - Oct. 26 Helsper, Harvey J. - Aug. 19 Henderson, Margaret R. Aug. 10
Hendrickson, Leslie G. Aug. 4 Henshaw, Lenley M. - Aug. 2 Hickey, Dorothy - June 2 Hicks, Joan - May 2 Hinson, Elaine - Aug. 13 Hinton, Shirley M. - Sept. 28 Hollander, Bella - July 3 Horn, Jr., John F. - Sept. 21 Howald, Gladys M. - Sept. 18 Howard, Rosemary - May 12 Hutton-Potts, George P. C. June 4 Irons, Margaret K. - Sept. 12 Jackson, Rose M. - Sept. 7 Jacobsen, Lloyd C. - Aug. 1 Jasper, Charles A. - July 18 Jebb, Elizabeth - July 17 Jeffcoat, Nevon F. - Oct. 4 Jenkins, Virginia N. - July 3 Johnson, Naomi - Sept. 10 Jones, Hannah - July 28 Jones, Wynne C. - Sept. 3 Katsonis, George C. - Sept. 20 Kauth, Rosemary - June 25 Kavitsky, Bernard - July 1 Kenny, Evelyn G. - Sept. 15 Klein, Joseph F. - Sept. 1 Klein, Julia - July 1 Koellner, Dorothy - June 13 Kolegue, Richard C. - May 27 Koundouroudas, Ioannis Aug. 16 Kravontka, Margaret L. Sept. 17 Kruzel, Catherine - May 22 Lage, David A. - Aug. 4 Landergott, Carl J. - July 13 Lang, Cecilia G. - Oct. 3 LaRosa, John T. - Sept. 2 Laub, Lyman H. - July 5 Lawrence, Robert M. - Sept. 4 Lemon, Florence K. - June 3 Lopatin, Paul - May 4 LoPresti, Marie E. - May 3 Lundgren, Richard A. Oct. 21 Mandat, Estelle - Oct. 2 Mangam, Elizabeth - Oct. 26 Manuel, Ronald - June 21 Marcucci, Frank J. - July 10 Marro, Peter A. - Oct. 6 Marshall, Harry E. - Aug. 3 Marunchak, Katie - May 3 May, Josephine E. - Oct. 20 McClellan, Herbert C. June 11 McCoy, Margaret A. - Oct. 5 McCracken, Donald R. May 22 McKallen, Kenneth F. Aug. 18 McNamee, Jr., Charles T. Oct. 7 Melcher, Walter E. - July 18
Mikols, Jean - Aug. 10 Mills, Lloyd C. - May 3 Mistry, Mary - May 4 Moore, J. Kenneth - June 20 Moorzitz, Pauline - Aug. 11 Morahan, Alice M. - Aug. 18 Morgan, Milton B. - July 12 Mule, Frank B. - Sept. 11 Muller, Rose D. - May 14 Muzik, Raymond G. - May 6 Narath, Helen E. - May 14 Narizano, Margaret - Sept. 23 Neff, Bert L. - July 29 Nigro, Albert - July 10 Normandy, Kathleen M. Sept. 8 O’Gorman, Jacqueline A. May 3 O’Neil, Robert F. - May 29 O’Neill, Thomas J. - May 5 Offt, Katherine - Sept. 20 Oloane, Daniel R. - Oct. 24 Orand, Arlie - May 7 Osley, Donald - Sept. 17 Othus, Ralph J. - Sept. 22 Pagano, Sr., Louis S. - Aug. 1 Page, Beulah E. - May 22 Paliotta, Allan R. - May 5 Palmer, George B. - Aug. 3 Papp, Elizabeth - July 7 Parker, Sarah W. - Aug. 22 Parks, Katherine I. - May 2 Pascal, Joseph - May 7 Pastorelli, Ledo J. - June 14 Payelian, Richard V. - Oct. 5 Peck, Charles G. - Oct. 14 Pedroli, Marion B. - Sept. 17 Pelletier, Edmour A. - June 3 Pestak, Mary Elizabeth May 24 Peters, Mabel R. - Oct. 15 Petersen, Edith - July 6 Piccigallo, Sam - Oct. 2 Pidgeon, Helen M. - July 5 Pierce, Jean E. - June 12 Pinezic, Anton - May 9 Pinsky, Solomon - July 6 Previte, Joseph D. - June 23 Pyne, Ida - June 4 Rabinowitz, David - May 9 Randolph, Alvin G. - June 23 Rauch, Kate - Sept. 15 Reiser, Josephine B. - June 21 Repetto, John J. - Aug. 25 Reynolds, Madeline L. Aug. 10 Richardson, Marie - July 23 Roczko, Eileen - Aug. 8 Roger, Jesse L. - Oct. 18 Rogers, Mildred K. - Aug. 10 Rudolph, Hilda - Aug. 9 Russo, Lorraine - Oct. 14 Salmon, Jr., Fred D. - May 11 Sampson, Richard C. - May 12 Sanders, Cheryl B. - Aug. 10
Santiago, Frances T. - Sept. 18 Schimelman, Betty - Sept. 25 Schultheiss, George E. - Oct. 2 Schultz, Marian J. - Oct. 11 Schwartz, Lillian - June 24 Schweitzer, Jacqueline L. Aug. 21 Scrudato, Anna - May 11 Seachrist, Estelle D. - June 19 Seeley, Jr., Clifton E. - Oct. 7 Sharpee, Robert J. - July 21 Shears, Nellie - Sept. 15 Shelley, Wilfred E. - Oct. 16 Shelton, William - May 5 Sher, Jessie - June 12 Sherman, Esther - Aug. 3 Short, Janet F. - Oct. 26 Sigelman, Casper - June 13 Simpson, Nancy B. - June 13 Slania, Eugene P. - June 3 Smith, Charles E. - Sept. 21 Smith, Louise E. - Oct. 4 Snyder, Paul H. - May 1 Solomon, Mary E. - Sept. 14 Spiegel, Dennis M. - July 28 Spinosa, John F. - Aug. 2 Stathopulos, Kanella A. Aug. 13 Stavrou, Harry H. - Aug. 19 Stein, Eli - Sept. 17 Stiffler, Clayton H. - Aug. 5 Strickland, Mary L. - Sept. 8 Struck, John D. - June 8 Sudy, Stephen A. - Sept. 25 Sullivan, Mary - May 8 Sweeney, Julia - Oct. 28 Termotto, Martha - July 19 Terzo, Madeline C. - Oct. 26 Teusher, Herta J. - July 14 Thames, Jr., Albert - July 18 Theriault, Norman R. - June 4 Thomas, Alma D. - July 12 Thomas, Dorothy M. - Oct. 14 Timmins, Kenneth A. - May 2 Trivisonno, John J. - Oct. 28 Turney, D. Clarke - Sept. 1 Utsey, William A. - Oct. 1 Venkatasubramanian, S. S. Oct. 20 Vitkus, Walter P. - Oct. 9 Waldron, Helen E. - Oct. 18 Walker, Ann E. - Oct. 17 Wayne Ruth A. - July 3 Weber, Walter A. - May 5 Werbinski, Mary - Sept. 5 Wilkes, Ernest H. - May 2 Williams, Robert E. - Aug. 12 Williams, Sally J. - June 1 Willingham, O. Wayne Aug. 1 Wingfield, Gladys H. - May 15 Wohn, John H. - Oct. 6 York, Charles W. - Sept. 7 Zinke, Richard D. - Aug. 18
Note: Some readers have asked if department names can be provided. Unfortunately, the system that produces this list does not retain information about retirees’ former departments, therefore we are unable to report them here.
7
connections Six Free “Helpful Hint” Publications Now Available The MetLife Mature Market Institute® has a number of
5. Caring from a Distance — Long-distance caregiving
new long-term care and caregiving publications
poses special challenges.
available free to the public. Helpful Hints, produced in
6. Caregiving and Alzheimer’s — Directed specifically
conjunction with the National Alliance for Caregiving,
at families caring for a loved one with Alzheimer’s.
are two-page informational bulletins that contain tips and advice for older Americans and for those caring
Copies of the above tip sheets can be found at
for aging friends and relatives.
www.maturemarketinstitute.com under “What’s
1. Advocating for a Family Member in Healthcare
publications, called “Since You Care Guides®,” can
Situations — Includes advice for talking with insurance
be found under “All Publications.”
New.” Additionally, extended versions of these
personnel, hospital staff and home healthcare aides. 2. If Care is Needed at Home — For those who care for
To receive hard copies, please email a request to
a disabled or elderly relative at home.
maturemarketinstitute@metlife.com, or write to:
3. Choosing an Assisted Living Facility — Tips on how
MetLife Mature Market Institute, 57 Greens Farms
to know what services are included in the basic cost
Road, Westport, CT 06880. Please be specific about
and what level of care the resident will have.
your request, including whether you are requesting
4. Choosing Adult Day Services — How to find the
the “tip sheets” or the Since You Care guides related
right center for a loved one.
to the topics.
Connections is published for MetLife retirees twice a year by Corporate Communications. Questions and comments about this newsletter are welcomed: Write to connections@metlife.com or MetLife Connections, 700 Quaker Lane, Warwick, RI 02886. Editor: Mike Dynon PEANUTS © United Feature Syndicate, Inc., www.snoopy.com Printed in USA (1208)
■
July/August 2009
MetLife Leaders Talk Business at the GOSC. See page 6.
momentum Featured Inside
From Downturn to Recovery
MetLife Volunteers Make 2 Dream Playground a Reality This Month in 2 Momentum Online
As the economic landscape shifts, Steve Kandarian discusses its impact on our portfolio, our strategy initiative and the importance of our brand. See page 3.
One Little Question 4 Top Producers Give Back 5 Everything You Wanted to 5 Know About DDO Institutional Leaders Talk 6 About the Business at the GOSC How to Manage 7 Global Benefits Big, Strong and Trusted 7 Reverse Mortgages 101 8
EDITOR’S NOTE: Articles in this edition were prepared prior to the July 14th announcement regarding the formation of MetLife’s new U.S. Business organization. All department names and titles reflect the previous business structure. Watch Momentum for updates on the new organization.
Practicing Our Corporate Citizenship
Rob Henrikson Chairman, President and CEO
Volume 11, Issue 6
A
s the enterprise-level newsletter
done by MetLife Foundation and
recently. Building outreach activities
for all associates, Momentum
among our associates.
into recognition conferences may be rare in the industry, but it certainly
provides a picture of MetLife that is multifaceted — from what we do
For example, I had the pleasure of
speaks to the commitment of our
throughout our businesses to what we
attending the KaBOOM! project in
sales people to community well-being.
do throughout the world. Focused on
Rhode Island a few weeks ago, in which
To me, this is indeed worthy of
bringing our brand to life, you’ll see
more than 200 MetLife volunteers
recognition!
articles that touch on our product
and guests built a playground for
capabilities and leadership, our
neighborhood children. This is the
Last year, through MetLife and MetLife
financial strength and stability, our
second project MetLife has built with
Foundation, contributions of over
history and other aspects of our
KaBOOM! (the first was in Tampa last
$43 million were made to nonprofit
culture that make MetLife unique.
year), and the reality is, we had so
organizations. MetLife also contributed
much interest from our associates in
$188 million in loans and equity
This issue of Momentum includes
Warwick, we had to turn people away!
investments supporting community
several articles about our community
This says a lot about the spirit of our
improvement. Yes, MetLife is about the
outreach. Since our inception more
people and the culture we have
personal safety net sm we provide our
than 140 years ago, corporate
ingrained at our company. In this issue,
customers, but it is also about the
citizenship has been a hallmark of
you will also read a story about the
support we offer to the communities
how we do business; and today, the
good work done by our sales associates
in which we live, work and do business
tradition is thriving, both in the work
at their recognition conferences
every day. ■
< Visit Momentum Online on my.metlife.com >
1
July/August 2009
Warwick Volunteers Make Dream Playground a Reality MetLife Foundation leads the effort to build a new playground in Providence
I
This year’s Rhode Island project was
On Saturday, June 27, the volunteers
kicked off in May with “Design Day,”
built and dedicated the playground
That was the dream in Providence, RI,
where Providence kids were invited
in just one day. The MetLife team
and the dream has come true, thanks to
to put crayon to paper and draw their
included Chairman, President and CEO
teamwork among MetLife Foundation
dream playgrounds. Elements from
Rob Henrikson. Bill Moore, president,
and a multitude of MetLife associates in
the children’s drawings were
MetLife Auto & Home, was also on
Warwick, RI in partnership with local
incorporated into the final design
hand, as well as MetLife Foundation
community members, the Smith Hill
for the new playground.
Chairman Gwenn Carr and MetLife
f you build it, they will play.
Foundation President Dennis White.
Community Development Cooperation,
More Online See a photo gallery of the playground build. Visit Momentum Online.
MetLife volunteers, including Rob Henrikson (2nd photo, right), build a better place for kids.
Providence Parks Department and
Tim Bowen and Joanne Sherman of
Providence Mayor David N. Cicilline
KaBOOM!
MetLife Auto & Home® in Warwick
was among the many civic leaders
chaired the effort to recruit volunteers
in attendance.
KaBOOM! is a national nonprofit that
for the “Build Day” crew, and their
strives to provide a great place to play
call was overwhelmingly answered by
After 1,000 hours of volunteer time —
within walking distance of every child
more than 230 Warwick associates,
including a full day of lifting, carrying,
in America. In 2008, the organization
family members and friends. They
painting, mixing 11,000 pounds of
helped construct 215 playgrounds
were supported by Mavel Jones, the
concrete, spreading 155 cubic yards of
across the country, including one in
coordinator of MetLife volunteer
mulch and assembling 20 pieces of
partnership with MetLife in Tampa, FL.
programs with Corporate Contributions
playground equipment — volunteers
& Community Relations. In addition,
and happy kids all took part in a joyful
MetLife Foundation awarded a $65,000
ribbon-cutting ceremony to dedicate
grant to fund the playground.
the new play area. ■
See related story in Momentum Online: MetLife Foundation teams with The Trust for Public Land.
The latest edition of the newly enhanced Momentum Online is now available from the home page of my.metlife.com. It includes online extras you won’t find in the print edition, including audio, links to additional information and these “online exclusive” stories:
Commemorating a Decade
Introducing Faster, Better Risk Management
Read about the history and successes of MetLife’s insurance
With the development of Internal Audit’s new Governance
business in Brazil as it celebrates an important anniversary:
Risk & Control System, we’ve positioned ourselves to be a
10 years in operation.
“best-in-class” risk management operation.
CBF Creates “Virtual Brainstorming”
Summer Learning at the INROADS Seniors’ Conference
Corporate Benefit Funding, part of Institutional Business,
Performing important volunteer work for children with
has developed a “virtual” way to capture great business
special needs was only part of this year’s exciting conference
ideas from associates.
for senior MetLife INROADS interns.
Bringing Parks to People
What’s Next On the Web?
We’re helping to build smiles, one park at a time.
MetLife holds its second annual Internet Practitioners Day,
Learn about the ongoing teamwork between
gathering all Web experts around the enterprise to share
MetLife Foundation and The Trust for Public Land.
industry research and best practices.
This Brand is Your Brand What do Thomas Edison and MetLife have in common? Take a quick history quiz and learn how MetLife’s past has helped form the foundation for our future.
2
momentum
T
he “Great Recession” is a phrase some have used to describe the current global economic recession. In this difficult environment, MetLife has stood out as a
financial services provider that remains “Big, Strong and Trusted.” Now, as some signs of stabilization begin to appear, Executive Vice President and Chief Investment Officer Steve Kandarian offers his perspective on why MetLife remains well-positioned.
Steve, where are we in the current economic cycle?
culture is an extremely important factor in successful risk
This recession, which officially began in December 2007, is
management. In Investments, we utilize models to look at
the longest downturn since the Great Depression and the
various scenarios and outcomes, but we don’t rely exclusively
worst in the post-World War II period. Fortunately, conditions
on the output of our models to make our decisions. We use
have improved since last fall when the banking industry was
this information as one part of our overall discussion of risk
in crisis, investment markets were frozen and the overall
and how we need to manage the portfolio. My senior
economy was in disarray. But that does not mean we are out
management team and I meet weekly to talk about what’s
of the woods. We expect that the initial recovery, which
happening in the different sectors of the marketplace, and
many economists are predicting will begin in the second half
we challenge each other and talk about risk. Discussions like
of this year, will be weaker than a normal recovery through
these happen across Investments — it is part of our culture to
2010. We believe that fundamentals in asset sectors such as
think first about risk.
From Downturn to Recovery As the economic landscape shifts, Steve Kandarian discusses its impact on our portfolio, our strategy initiative and the importance of our brand.
credit and real estate will continue to deteriorate. So while we see some stabilization in the market, we remain cautious.
How is this environment impacting the enterprise-wide strategy work that you are leading?
How did Investments position MetLife’s portfolio for
That’s a good question. In April of 2008, we introduced the
this downturn?
outcome of the strategy team’s work, which highlighted our
We began to reposition the investment portfolio for the
long-term objective to be recognized as a leading global
current downturn in the fall of 2007 when we became
provider of income and protection products and services,
concerned about the high probability of a recession and its
and employee benefit programs. (See the Strategic Initiatives
potential impact on MetLife’s investment portfolio. We sold
site on my.metlife.com for more information.) The world
more than $7 billion of bonds and commercial mortgages
has certainly changed since then. The financial crisis and
that we determined to be most vulnerable to a recession.
recession have resulted in a lower tolerance for risk and
Steve Kandarian at a recent investor presentation.
volatility, increased regulation of the financial sector and a Our current portfolio also reflects moves we made several
shift to a higher consumer savings rate, among other effects.
years before the recession took hold. In 2004, during our normal due diligence with mortgage originators, we became
Even with these dramatic changes, our long-term objectives
concerned about residential mortgage underwriting. As a
and initiatives are still on target. Of course, the strategy
result, we began managing our portfolio in anticipation of a
initiative is not a once-and-done exercise. We continually
possible correction in housing. So before the downturn, we
evaluate the impact of environmental and market changes
had already significantly reduced our holdings in subprime
on managing and growing MetLife. For instance, the
mortgages. We also took early action in the commercial
heightened awareness for financial security and savings
mortgage market in response to aggressive underwriting
among consumers is an opportunity for MetLife. We will
and weak deal structures. In 2005, we began to focus our
leverage all of MetLife’s competitive advantages —
commercial mortgage origination on moderate- and
financial strength, reach, relationships and brand — to
low-leveraged loans.
capitalize on this.
So while a portfolio of our size will not be immune to losses,
You mention brand as one of MetLife’s competitive
we believe we came into this downturn with a defensively
advantages. Global Brand and Marketing now reports to
positioned portfolio.
you. Can you talk a bit about what’s happening in this area? Sure. As you can imagine, the economic crisis has negatively
How is the recession influencing your current decisions?
impacted many financial brands. The great news for us is
As I mentioned, we remain cautious despite some
that both third-party data and our own research conclude
stabilization in the market. During the first quarter, we
that consumers give MetLife high marks for strength and
invested new money primarily in liquid, low-risk government
financial stability during this downturn. The reassuring
and agency-backed securities. Our intention was to remain
consistency of our “business as usual” marketing efforts and
very liquid in safe assets. We also invested a smaller portion
the generally very positive press coverage we’ve garnered
of new money in high-quality investment grade bonds in
have boosted MetLife’s reputation in the industry.
“We are not trying to time the market. As the investment manager of an insurance company, we are here to invest in assets that match the liabilities in a way that ensures MetLife will have the wherewithal over the long run to deliver on the promises we’re making to our customers.” – Steve Kandarian
defensive industries. During the second quarter, we began easing into more spread assets, taking on a little more risk.
The big idea behind the MetLife brand — our ability to
We are not trying to time the bottom of the market. As the
deliver guarantees for the if in life — resonates with
investment manager of an insurance company, we are here to
consumers more than ever. The Global Brand and Marketing
invest in assets that match the liabilities in a way that ensures
team has been busy this year extending this platform in
MetLife will have the wherewithal over the long run to
television ads, a new and improved metlife.com, and a
deliver on the promises we’re making to our customers.
number of excellent, award-winning tools consumers can use to create their own personal safety net sm. In the coming
What are some of the key lessons learned from the
months, you’ll begin to see new communications supporting
financial crisis?
the company’s middle market initiative. MetLife will
I believe one of the most important lessons learned has to do
be attracting this underserved, younger, middle-class
with risk models versus culture. While investment managers
demographic in a very innovative and groundbreaking way.
will always need models to assess market and credit risk,
Watch for it. ■
3
July/August 2009
One Little Question MetLife Auto & Home’s Integrated Marketing channel elevates sales by asking, “Who do you work for?”
“
W
ho do you work for?” It’s a
“If John Smith called in five times in
small question that’s been
previous years, we quoted him five
Approaching one-third of total sales
delivering big results for the Integrated
retail rates,” says Kevin. “But now, if
Marketing sales distribution channel of
we know he works for, say, Raytheon,
The sales results attest to how one little
MetLife Auto & Home .
we quote him the Raytheon group rate.
idea can make such a big difference.
Instead of selling him a retail policy,
Integrated Marketing is now averaging
Integrated Marketing generates sales
we can sell him a policy with our
1,500 sales per week, with roughly one-
through direct mail to auto insurance
group program.”
third of those to Institutional customers.
week this year. The mailers display a
Group coverage offers several
“We’ve increased our business
toll-free phone number inviting
advantages to the customer and to
dramatically by asking that question,”
prospects to call for a premium quote.
MetLife, Kevin notes. “The Institutional
states Kevin. “Before, we were doing
The calls are answered by the staff of
sale is powerful. For the customer,
no sales with group, but now we’re on
90 sales consultants at centers in Utica,
group coverage has a variety of unique
track to do 16,000 applications this
NY; Dayton, OH; and Freeport, IL.
discounts. In most states, there is a
year. We’re averaging 400 applications
payroll deduction, a tenure discount,
a week and we’re just learning about
Naturally, individual callers have always
and a garaging discount. For the
this process. I believe we can increase
been quoted individual (or retail)
company, group business has better
that number by learning more through
®
prospects, mailing 800,000 pieces per
“We had a very simple idea and now, the sky’s the limit.” – Kevin Raymond
our data-mining capabilities.”
Furthermore, the idea was implemented online this past April. Consumers who visit MetLife Auto & Home’s retail auto quote site are prompted to enter their employer’s name in a search field that’s populated with the names of Institutional customers. When a match occurs, the inquiry is redirected to the group site where the quote is completed with pricing in our group program.
In the past, traffic at the two quote sites was about equal. But recently, Integrated Marketing’s top sales consultants and management pose at this year’s MetLife Auto & Home Leaders Conference.
premium rates, but the Integrated
retention, strong profitability and
group quotes have outnumbered
Marketing team knew it would increase
builds the relationship for cross-selling
retail quotes three-to-one, says Rick
sales if it could leverage the relationships
other products in the Institutional
Heffernan, manager, Internet
with MetLife’s Institutional customers.
arena.
Sales Strategy.
many mailings their employees receive,
“So we trained our call center
“So far, the results are tremendous,”
so potential customers were not always
consultants to ask, ‘Who do you work
Rick observes. “We have a 65-percent
being reached when they were ready to
for?’ and our sales results have gone
quote completion rate, which is a big
buy insurance.
through the roof,” Kevin continues.
improvement, and our closing ratio is
“Our people love it because the
up dramatically. Since this new page
But there was another way. Kevin
customer loves it. The key is payroll
launched, our group quoting engine
Raymond, assistant vice president in
deduction. Our approach in the call
has been over our weekly plan by
charge of Integrated Marketing sales,
center is: Do you want a bill for $700
88 percent on average.”
explains: “We’re mailing 40 million
every three months, or do you want
pieces this year, and since MetLife Auto
$80 per paycheck? It’s up to you.
“We had a very simple idea and now,
& Home does business with 172 of the
And what do people choose? The $80
the sky’s the limit,” Kevin concludes.
FORTUNE 500 companies, we’re going
per paycheck.
“This is going to allow us to grow
However, those companies limit how
Integrated Marketing averages
1,500 sales per week, with roughly one-third of those to employees of Institutional customers — a market that emerged when sales consultant began asking,
“Who do you work for?”
to bump into a few people who work
profitably, achieve better retention
for those companies. So on May 1 last
“This makes it easier for our people to
and build a better customer base
year, we started asking everyone who
sell, and salespeople are happiest when
while helping MetLife grow our book
calls us a simple question: ‘Who do you
they’re selling. Attitudinally, we’ve
of business. That’s why I’m happy
work for?’”
always been a positive organization,
about it.” ■
but we’ve taken it up a notch.”
Detecting Institutional customers By asking the question, the Integrated Marketing team can determine if the caller is employed by one of MetLife’s Institutional customers. If so, the caller receives a policy quote based on group auto pricing and benefits to which he or she is entitled.
A MetLife Auto & Home mailer tells customers: “Mention your employer and you could save even more!”
4
momentum
T
his year, in the spirit of living a life of significance,
basketball coach John Wooden: ‘It isn’t a complete day until
qualifiers and their guests at MetLife’s 2009 recognition
you've helped someone who can never repay you.’”
Top Producers Give Back
conferences donated more than 1,200 hours to the At the MetLife Resources Leaders Conference in Marco Island,
communities our company serves.
From the East Coast to the West, conference attendees serve local communities
Florida, qualifiers lent a hand painting a barn at the Naples In a period of economic stress, our top producers teamed
Equestrian Challenge, a therapeutic riding center for
with associates from local firms to give back to the cities
individuals with disabilities.
that hosted the conferences this year. Individual Distribution, the Broker Dealer Group, Corporate Contributions,
Meanwhile, at MetLife Leaders in San Diego, California,
Recognition and Conference & Event Planning worked
qualifiers chose from a beach cleanup where they collected
together to identify worthy organizations in local
120 pounds of trash; providing painting, landscaping and
communities that addressed a spectrum of causes, including
classroom improvement assistance at a school that supports
hunger, homelessness, individuals at risk, children with
the military community; or assisting at the Feeding America
disabilities, the environment and education. The projects
food bank, which targets those in vulnerable populations in
selected for these conferences didn’t require any special
the San Diego area. The MetLife Leaders events were hosted
skills or training, just a willingness to help.
by San Diego’s Pacific South Coast office, led by Paul Justin,
1
2
4
5
At President’s Conference in Miami Beach, Florida, some
managing director. Paul and members of his team also
qualifiers traveled to the Linda Ray Center, an early
volunteered.
(1) Executive vice presidents Mike Vietri (left) and Mike Farrell (right) joined other volunteers as part of President’s Conference. (2) Volunteers pack boxes at the Feeding America San Diego food bank during the MetLife Leaders Conference. (3) Lisa Weber and Glen C. Spice, Michigan Financial Associates, get ready to paint at the Linda Ray Center in Miami. (4) Thumbs up! IB recognition conference attendees show their community spirit. (5) Qualifier Dominic Nadeau, Jr. paints a fence at the Naples Equestrian Challenge during the MetLife Resources Leaders Conference.
3
intervention program for youngsters who had prenatal drug exposure and now face developmental delays. Volunteers
Community involvement continued at the National Leaders
painted murals and did landscaping at the center. Others
Conference of Champions in Palm Beach, Florida. There,
contributed to the gardening efforts of Roots in the City, a
qualifiers from Walnut Street Securities and Tower Square
community improvement organization that does ecological
Securities prepared food and fed the homeless as part of
projects to beautify downtown Miami. Both events were
Palm Beach Harvest’s food distribution program. Eric Zeitlin,
hosted by Cypress Financial Group in Fort Lauderdale, Florida,
managing director and chairman of the board of Provenance
a MetLife office headed by Gil Cohen, managing director,
Wealth Advisors, hosted that event.
who had many team members volunteer.
More Online See a photo gallery of these
Said Mike Vietri, executive vice president, Individual
community service efforts.
David Mirabito, a senior financial planner in the MetLife
Distribution: “By taking time to volunteer, we’ve helped
Visit Momentum Online.
Greater Syracuse, New York office, volunteered at the Linda
those in need and built even stronger connections with
Ray Center. “We had a wonderful and fulfilling experience of
these communities.” ■
community service,” he said. “To paraphrase the Hall of Fame
I
f you have not been touched by DDO, you will be soon! As you read last month in Momentum, the Decision-Driven Organization (DDO) initiative, part of Operational Excellence, is a strategic imperative aimed at increasing decision
effectiveness at MetLife. Consistently, research has shown that companies that are decision-driven generate higher revenue growth and profitability — a goal MetLife certainly wants to achieve.
Over the past few months, associates have been introduced to DDO primarily through their business lines. Now, a new and improved DDO site has been added to my.metlife.com to fill you in on all you need to know about DDO —
Everything You Always Wanted to Know About DDO See the new and improved Decision-Driven Organization site on my.metlife.com
from what it is and why it’s important, to how to make it part of your work life and the culture of our company.
The new site includes a variety of resources to be read, listened to and downloaded that can help you better understand DDO and become a champion for your colleagues. Check it out today via the Strategic Initiatives “shortcut” on the my.metlife.com home page. ■
5
July/August 2009
Institutional Leaders Talk About the Business, Meet Colleagues at the GOSC
P
As part of their short stay, the planning board members held
That was Cathy Richmond’s “shorthand” description of her
met with frontline associates to see those operations in
recent visit to the Global Operations Support Center (GOSC)
action. The Institutional team also held meetings with GOSC
in June.
leaders to explore additional opportunities to work together
henomenal in every way.
meetings with GOSC managers to discuss their operations and
to deliver growth for Institutional. Cathy, senior vice president and strategic planning officer for
“The GOSC will give us the capacity we need to grow and to capitalize on significant market trends. It is one of the ‘big ways’ we will move this business ahead. ” — Bill Mullaney in a note to Institutional associates on the business’s commitment to the GOSC
Institutional Business, was joined by fellow Institutional
“The GOSC is doing impressive work around quality initiatives
planning board members and sales leaders on the visit.
and process re-engineering,” notes Tom Purcaro, senior
They were there to talk about the business and get a close-up
vice president and head of Institutional’s Benefit Services
look at how the Center is supporting Institutional’s goals
Organization. “Great service is foundational to why we
for growth.
win and keep customers, so we understand the value that the GOSC can add to our strong service model.” Tom says
The GOSC is an important partner to Institutional, helping
he expects the two-way transfer of expertise between
them create increased capacity in the business, as well as
the GOSC and Institutional to continue and result in
control expenses and strengthen operations through its
continuous improvement.
quality of work and leveraging of scale. Approximately 400 associates at the Center are supporting Institutional
“Institutional has a successful partnership in place already, so
functions, from billing and claims processing to account
it’s exciting to think broadly about how we can build on
servicing and underwriting support.
this,” adds Robin Lenna, senior vice president and head of Institutional’s retirement and savings business. Robin, who
(Top left) Tony Nugent, executive vice president, Institutional Employee Benefits Sales, presents at the GOSC town hall. (Center, left to right) MetLife leaders speaking at the town hall included Tom Purcaro, Todd Katz and Kush Kamra. (Below) Cathy Richmond, strategic planning officer for Institutional Business, came away from her visit to the GOSC energized and eager to explore additional opportunities to work together.
“This was an important trip for our Planning Board as
was also onsite, recently initiated an innovative pilot with
we think about how to grow our business and build out
the GOSC to provide quotation services for MetLife Assurance
our plan,” says Cathy. “It was valuable to meet with the
Limited (MAL), which helps MAL originate sales for its
management team and associates to see firsthand the
pension closeout business in the United Kingdom.
depth of capabilities at the Center.” “We are leveraging actuarial talent from the GOSC that will During their visit, the Institutional leaders toured the new
help us bid on and price smaller-case business,” explains
MetLife GOSC facility. “There is no doubt from the minute
Robin. “Without their involvement, we would not have the
you arrive that this is MetLife,” says Cathy. “Like across
capacity to compete for this business.”
our company, the associates here care about the business and are focused on how they can contribute to the
“We are excited about this business pilot,” adds Peggy
enterprise’s success.”
Fechtmann, executive vice president and head of Global Capability Sourcing. “It represents an excellent opportunity Continued on Page 8
Leveraging the GOSC, Institutional supports its vision Institutional Business has as its vision
GOSC, Dental was able to realize
and will meet their needs. In turn, this
“To be recognized as the benefit and
both improvements in the processes
helps provide employees with an
retirement experts with innovative
themselves and a lower cost structure.
opportunity to choose dental coverage
solutions that help employers manage
that they might not otherwise be
their business for success and support
“This has helped continue to enable us
the well-being and peace of mind of
to bring dental products to market that
their employees and retirees.”
offer high quality and affordability,”
Adds Todd, “It’s a great example of
able to afford.”
says Todd Katz, head of Institutional
how we can leverage the GOSC to
With the help of the GOSC,
Insurance Products. Institutional
provide solutions that support the
Institutional Dental is achieving this
customers can offer these products
well-being and peace of mind of the
vision. By leveraging sourcing and
to their workforce because they are
people we touch through our benefits.”
migrating select processes to the
confident that they are priced right
The Global Operations Support Center (GOSC) has been supporting business
created a MetLife location that provides very high-quality work. The Center’s
needs across the enterprise since 2007 and continues to thrive. Through the
success speaks for itself. More than 95 percent of the time, the Center meets or
GOSC, Institutional Business, like other areas across MetLife, is benefiting from
exceeds its goals in terms of quality and speed.
new capabilities aimed at increased efficiency, expanded customer satisfaction levels and enhanced quality. Over 1,000 MetLife associates at the GOSC support
The GOSC is an important part of our global capability network in the U.S.
70 business processes. Twenty Institutional processes are supported there.
and abroad. This global network will enable MetLife to continue to compete successfully as we grow our businesses by allowing us to leverage the right
The partnership of many MetLife associates both in India and the U.S. has
6
capabilities — from the right source — in the right location — at the right cost.
momentum n today’s global marketplace,
I
Employee Benefits Forums this June
At the conference, attendees discussed
multinational corporations face
in New York and Chicago. The
best practices for managing global
significant challenges in managing
half-day sessions featured insightful
benefits and listened to a panel
benefits plans for their employees
discussions from MetLife leaders and
discussion on trends and challenges in
at home and abroad. Delivering
outside experts.
Latin America, Asia and Europe. Bill Mullaney, president, Institutional
benefits in diverse environments and cultures can be difficult for many
The events were on the heels of new
Business, was the keynote speaker
reasons, including the fact that
Institutional research. In April, the
at the New York event. Todd Katz,
benefits needs vary from country to
Multinational Solutions team, part of
senior vice president, Institutional
country. Addressing a market’s unique
Institutional Business, released
Insurance Products, was the keynote
requirements, and managing cost
“Managing Global Benefits: Challenges
speaker at the Chicago forum.
and administration across borders,
and Opportunities.” The research
add to the depth of the issue.
discusses the global benefits landscape
“The forums gave us a chance
and offers employers practical solutions
to showcase MetLife’s thought
Getting global benefits right is pivotal,
for making benefits decisions that
leadership and demonstrate our
though. Companies see benefits as a
impact employees across the world.
strong customer focus,” says Rudy.
How to Manage Global Benefits Institutional Business Offers Guidance On a Tough Question
“The quality of the discussions
tool to attract and retain talent. At the same time, multinational employers
“The forums were designed to build
anticipate the competition for talent
on these learnings and help companies
will intensify.
take away usable information that
The event, which received very
they can apply to their business,”
favorable feedback from attendees,
To provide perspective, Institutional
says Rudy Bethea, vice president,
has already resulted in good lead
Business hosted two Multinational
Multinational Solutions.
development, in addition to
was terrific.”
press coverage. ■
What is
?
Our Multinational Solutions team offers solutions to help
of insurers. Developed by MetLife and AXA, the MAXIS
multinational employers support their international
network includes independent carriers as well as MetLife
workforce. Employers can access a broad portfolio of
and AXA subsidiaries. Through member companies, we
products delivered at the country level and achieve cost
are able to provide access to life, disability, medical and
savings through multinational pooling arrangements. They
retirement benefits for employees worldwide.
also benefit from easier coordination of their benefits across foreign operations.
More Online Read the entire “Managing Global Benefits” study.
The network, in existence for a decade, has steadily grown.
Visit Momentum Online.
Starting out with a presence in 34 countries, MAXIS today An important piece in the delivery of our international
exists in over 75 countries, strategically located in both
capabilities is MAXIS, our global employee benefits network
mature economies and emerging markets.
Big, Strong and Trusted
A series of quick looks at why MetLife stands out in today’s market
Access to Global Opportunity International Business is all about growth. This slide is often used to show MetLife’s access to over 90 percent of the world’s life insurance market. In addition to the U.S., MetLife has a presence in 15 markets with a geographic reach in three regions: Latin America, Europe & India and Asia Pacific. In Latin America, MetLife has companies in Argentina, Brazil, Chile and Mexico. In the Europe & India region, MetLife has a presence in Belgium, India, Poland and the United Kingdom. MetLife also has companies in the Asia Pacific region located in Australia, China, Hong Kong, Japan, Taiwan and South Korea.
MetLife holds leadership positions in several of these markets. In Mexico, MetLife is #1 in life and group life sales. In Chile, the company is #2 in life and annuity premiums. MetLife is ranked #4 in variable universal life sales in Korea. With these strong positions and strengthened presence in other markets, MetLife International serves approximately 18 million customers.*
In 2009, MetLife International commemorated a number of important milestones, including the MetLife companies’ 20th anniversary in Korea, 10-year anniversary in Brazil and five-year anniversary in Beijing, China. These important milestones highlight MetLife’s longevity and demonstrate MetLife’s position as a strong and trusted company in these markets. * The MetLife companies offer life insurance, annuities, automobile and home insurance, retail banking and other financial services to individuals, as well as group insurance, reinsurance and retirement and savings products and services to corporations and other institutions.
7
July/August 2009 Continued from Page 6
for the GOSC to deliver on Technology & Operations’ vision
Institutional Leaders Talk About the Business, Meet Colleagues at the GOSC
“This was a great opportunity for everyone involved.”
to fuel revenue and earnings growth.” The Institutional leadership team echoed the sentiment. Of By all accounts, an important highlight of the visit was a
the GOSC, Tony Nugent summed up his experiences in two
town hall meeting attended by Institutional-aligned GOSC
words: world class. “World class operations; world class
associates. The meeting focused on providing associates
facility; world class service; world class people. It’s that simple.
with a good overview of Institutional Business — from a
The discussions we had at the GOSC were impressive, and I’m
marketplace and sales perspective, to a look at products in its
sure will lead to increased profitability and competitiveness
insurance and non-medical health segments, to its service
for Institutional.”
reach and 2009 financial plan. Attendees heard from the
More Online See a list of the leaders who visited the GOSC.
business’s most senior leaders, including Todd Katz, senior
Cathy says she plans to keep the conversation — and
vice president of Institutional Insurance Products; Tony
partnership — going. “I think it is important that we have
Nugent, executive vice president of Employee Benefits Sales;
GOSC leadership at the table in the early stages of our
and Tom Purcaro. All of the Institutional leadership team
planning process. We can benefit from their perspectives as
participated in the Q&A and received valuable input from
we think about how to operationalize what we want to
attendees. Peggy Fechtmann and Kush Kamra, managing
achieve for our business.
director and vice president, GOSC, also spoke. “This is about making decisions related to where Institutional
Visit Momentum Online.
Reverse Mortgages 101 Learn about this important mortgage option for homeowners age 62+
“To have such senior Institutional leadership present at
can best do what it takes to differentiate MetLife as a
our site to talk about the business says it all,” says Kush.
breakout company.” ■
Increased interest & need
n June, industry news source Reverse
I
until the last remaining borrower leaves
Mortgage Daily named MetLife Bank
the home permanently or passes away.
#6 among the nation’s top lenders of
Repayment is usually done through the
Why the increased interest in — and
Home Equity Conversion Mortgages
sale of the home or other assets.
need for — reverse mortgages? People
(HECMs), a federally insured category of reverse mortgages. As a market leader, MetLife Bank has launched an education
are living longer and spending more
Recent legislation raises lending limits and more
campaign to help MetLife associates
time in retirement. The economic downturn has also diminished many nest eggs and opportunities for traditional
learn more about this important
In 2009, legislation has raised reverse
sources of retirement support, such as
mortgage option that can help older
mortgage lending limits, and also made
government- and employer-sponsored
homeowners live with greater financial
them available for home purchases —
programs, prompting many to
independence.
potentially expanding the product’s
re-examine their options. For many,
usefulness to many older homeowners.
a reverse mortgage is an important
Although the product’s popularity has
The Economic Stimulus Bill that
option to consider. ■
grown significantly in recent years and
President Obama signed into law in
offers a number of benefits, many
February raised the lending limit for
Americans do not fully understand
reverse mortgages from $417,000 to
how a reverse mortgage works. As an
$625,000 for the duration of 2009. This
Due to differences between banking
associate, it’s important to know the
enables some borrowers to access more
regulations and regulations governing
basic facts, including how recent
of their home equity by securing a new
insurance and investment products,
legislation affects reverse mortgages.
reverse mortgage or refinancing an
insurance representatives, registered
existing one.*
representatives, financial advisors and
What is a reverse mortgage?
financial planners are generally In addition, as of January 1, qualified
prohibited from discussing reverse
A reverse mortgage is a loan that
older adults may now purchase a new
mortgages with prospects or clients and
allows homeowners age 62 and older to
principal residence by taking out a
are not permitted to refer prospects or
convert their home equity into cash for
reverse mortgage on the home they’re
clients to any bank, including MetLife
things like living expenses, home
buying. HECM for Purchase loans make
Bank, to apply for a reverse mortgage.
improvements, healthcare costs and
it possible for older homeowners —
Furthermore, the proceeds of a
more. The borrower continues to live in
regardless of income or credit history —
reverse mortgage may NOT be used
and own the home. Unlike other types
to relocate to homes that are closer
to purchase insurance or investment
of home equity-based loans, monthly
to family members, more physically
products or services.
mortgage payments are not required —
accessible, or “right-sized” for their
in fact, the loan does not become due
needs, without the financial impact of monthly mortgage payments.
All loans are subject to property approval. Certain conditions and fees apply. Mortgage financing provided by MetLife Bank, N.A.
*Appraised property value may affect loan amount.
Equal Housing Lender.
Momentum is published by MetLife Internal Communications for associates enterprise-wide. Send questions, comments or ideas for stories to momentum@metlife.com. Vice President, Internal Communications: Susan Berger Editor: Greg Potter Law Department Liaison: Mark Schuman Contributors: Toby Axelrod, Kasana Banks, Caroline Campanelli, Tanya Cleary, Jacqueline Durett, Mike Dynon, Beth Freedman, Eric Goldberg, April Hawkins, Eileen Holden, Julia Levy, Lindsay McKenzie, Margaret Melozzi PEANUTS © United Feature Syndicate, Inc., www.snoopy.com © 2009 MetLife, Inc. Printed in USA (0709) Statements made in this publication may constitute forward-looking statements within the meaning of the federal securities laws, including statements relating to trends in the company’s operations and financial results, the markets for its products and the future development of its business. MetLife’s actual results may differ materially from the results anticipated in the forward-looking statements asa result of risks and uncertainties, including those described in MetLife, Inc.’s filings with the SEC. MetLife specifically disclaims anyobligation to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise.
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momentum Featured Inside 2
2
4
4
5
5
6 6 7
7
8
8
A Defensive Stance Amid the “Great Recession” Chief Investment Officer Steve Kandarian talks about MetLife’s portfolio today
s the enterprise-level newsletter
done by MetLife Foundation and
recently. Building outreach activities
for all associates, Momentum
among our associates.
into a recognition conference may be
A
rare in the industry, but it certainly
provides a picture of MetLife that is
Rob Henrikson Chairman, President and CEO
Volume 11, Issue 6
multifaceted — from what we do
For example, I had the pleasure of
speaks to the commitment of our
throughout our businesses, to what we
attending the KaBOOM! project in
sales people to community well-being.
do throughout the world. Focused on
Rhode Island a few weeks ago, in
To me, this is indeed worthy of
bringing our brand to life, you'll see
which more approximately 140 MetLife
recognition!
articles that touch on our product
volunteers built a playground for
capabilities and leadership, our
neighborhood children. This is the
Last year, through MetLife Foundation,
financial strength and stability, our
second project MetLife has built with
contributions of over $43 million were
history and other aspects of our culture
KaBOOM (the first was in Tampa last
made to nonprofit organizations.
that make MetLife unique.
year), and the reality is, we had so
MetLife also contributed$188 million
much interest from our associates in
in loans and equity investments
This issue of Momentum includes
Warwick, we had to turn people away!
supporting community improvement.
several articles about our community
This says a lot about the spirit of our
Yes, MetLife is about the personal
outreach. Since our inception more
people and the culture we have
safety nets we provide our customers,
than 140 years ago, corporate
ingrained at our company. In this issue
but it is also about the support we
citizenship has been a hallmark of
you will also read a story about the
provide to the communities in which
how we do business, and today, the
good work done by our sales associates
we live, work and do businesss
tradition is thriving, both in the work
at one of their incentive conferences
every day. ■
< Visit Momentum Online on my.metlife.com >
1
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July/August 2009
momentum Featured Inside 2
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4
As the Storm Passes Chief Investment Officer Steve Kandarian talks about economic recovery and MetLife’s portfolio today
4 Lorem ipsium telos stiem vilut wavth s siem alufutemn. Duis is
5 wabut velit rem. Velit to os tiem suluit, wiem tolust gusti. Cusdte
5
lute bitter quei, selotem, kiotel ret jummi, illustrutm, delir excelijme. osie telos sfiem wath blis cusi, effict ajem hallin. Waniet fores tole
6 6
viem cantern buseliet. Lorem ipsium telos stiem vilut wavth s siem alufutemn. Duis is wabut velit rem. Velit to os tiem suluit, wiem
7 tolst gusti. Cusdte lute bitter quei, selotem, kio
7
8
tel ret jummi, illustrutm, elir excelijme.
Continued on Page 3
8
s the enterprise-level newsletter
done by MetLife Foundation and
recently. Building outreach activities
for all associates, Momentum
among our associates.
into a recognition conference may be
A
rare in the industry, but it certainly
provides a picture of MetLife that is
Rob Henrikson Chairman, President and CEO
Volume 11, Issue 6
multifaceted — from what we do
For example, I had the pleasure of
speaks to the commitment of our
throughout our businesses, to what we
attending the KaBOOM! project in
sales people to community well-being.
do throughout the world. Focused on
Rhode Island a few weeks ago, in
To me, this is indeed worthy of
bringing our brand to life, you'll see
which more approximately 140 MetLife
recognition!
articles that touch on our product
volunteers built a playground for
capabilities and leadership, our
neighborhood children. This is the
Last year, through MetLife Foundation,
financial strength and stability, our
second project MetLife has built with
contributions of over $43 million were
history and other aspects of our culture
KaBOOM (the first was in Tampa last
made to nonprofit organizations.
that make MetLife unique.
year), and the reality is, we had so
MetLife also contributed$188 million
much interest from our associates in
in loans and equity investments
This issue of Momentum includes
Warwick, we had to turn people away!
supporting community improvement.
several articles about our community
This says a lot about the spirit of our
Yes, MetLife is about the personal
outreach. Since our inception more
people and the culture we have
safety nets we provide our customers,
than 140 years ago, corporate
ingrained at our company. In this issue
but it is also about the support we
citizenship has been a hallmark of
you will also read a story about the
provide to the communities in which
how we do business, and today, the
good work done by our sales associates
we live, work and do businesss
tradition is thriving, both in the work
at one of their incentive conferences
every day. ■
< Visit Momentum Online on my.metlife.com >
1
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Page 3
July/August 2009
momentum Featured Inside 2
2
4
4
5
5
Where To Now? Chief Investment Officer Steve Kandarian talks about economic recovery and our current investment management strategy
6 6 Lorem ipsium telos stiem vilut
7
wavth s siem alufutemn. Duis is
7
wabut velit rem. Velit to os tiem suluit, wiem tolust gusti. Cusdte lute bitter quei,
8 selotem, kiotel ret jummi, illustrutm, delir excelijme.
8
osie telos sfiem wath blis cusi, effict ajem hallin. Waniet fores tole viem cantern buseliet. Lorem ipsium telos stiem vilut wavth s siem alufutemn. Duis is wabut velit rem. Velit to os tiem suluit, wiem tolst gusti. Cusdte lute bitter quei, selotem, kiotel ret jummi, illustrutm, elir excelijme. Continued on Page 3
s the enterprise-level newsletter
done by MetLife Foundation and
recently. Building outreach activities
for all associates, Momentum
among our associates.
into a recognition conference may be
A
rare in the industry, but it certainly
provides a picture of MetLife that is
Rob Henrikson Chairman, President and CEO
Volume 11, Issue 6
multifaceted â&#x20AC;&#x201D; from what we do
For example, I had the pleasure of
speaks to the commitment of our
throughout our businesses, to what we
attending the KaBOOM! project in
sales people to community well-being.
do throughout the world. Focused on
Rhode Island a few weeks ago, in
To me, this is indeed worthy of
bringing our brand to life, you'll see
which more approximately 140 MetLife
recognition!
articles that touch on our product
volunteers built a playground for
capabilities and leadership, our
neighborhood children. This is the
Last year, through MetLife Foundation,
financial strength and stability, our
second project MetLife has built with
contributions of over $43 million were
history and other aspects of our culture
KaBOOM (the first was in Tampa last
made to nonprofit organizations.
that make MetLife unique.
year), and the reality is, we had so
MetLife also contributed$188 million
much interest from our associates in
in loans and equity investments
This issue of Momentum includes
Warwick, we had to turn people away!
supporting community improvement.
several articles about our community
This says a lot about the spirit of our
Yes, MetLife is about the personal
outreach. Since our inception more
people and the culture we have
safety nets we provide our customers,
than 140 years ago, corporate
ingrained at our company. In this issue
but it is also about the support we
citizenship has been a hallmark of
you will also read a story about the
provide to the communities in which
how we do business, and today, the
good work done by our sales associates
we live, work and do businesss
tradition is thriving, both in the work
at one of their incentive conferences
every day. â&#x2013;
< Visit Momentum Online on my.metlife.com >
1
June 2009
Get a Look at MetLife’s Underwriting University. Visit Momentum Online.
momentum Featured Inside
Hitting the Mark Through Decision-Driven Behavior
Setting MetLife Apart: The 2 Financial Strength Campaign This Month in 2 Momentum Online
A look at MetLife’s Decision-Driven Organization initiative
MetLife Celebrates 4 20 Years in Korea Strength Through 4 Diversification Promoting Inclusion 5 Through the Arts MetLife Rolls Out 5 Managed Print Services A Company That Cares 6 This Brand is Your Brand 6 Bill Wheeler Named One of 7 America’s Best CFOs
As part of Operational Excellence, the Decision-Driven
New Book Gives MetLife 7 an “Edge”
Organization initiative (DDO) is now well underway throughout the enterprise. Associates are already familiar with the goals
Diversity in Spend: 8 Why It Matters
of Operational Excellence: to build a faster, better and more profitable company. In addition to initiatives aimed at reducing
Transforming Corporate 8 Benefit Funding
the complexity of our operating environment and improving productivity, Operational Excellence is also focused on fundamental behavioral transformations — and key among those is the way we make and execute decisions. Continued on Page 3
Improving Our Decision Making
n a tough environment, MetLife
I
Driven Organization (DDO) initiative.
also for our high-quality decision
remains focused on the fundamentals:
DDO is all about improving our
making — using the right amount of
our business mix and business model,
decision-making behavior: making
time, effort and resources to produce
strong underwriting and expense
better decisions, focusing on the right
the best results.
management. Since we began
decisions and executing decisions well.
Operational Excellence more than a
I have heard from many of you that
Given the pace of change and the
year ago, we have made consistent
the way we make decisions is an area
volatilities that define the new market
strides in both our cost reduction and
where there is room for improvement.
realities, the ability to act quickly and decisively is a critical enterprise
efficiency objectives, and remain
Rob Henrikson Chairman, President and CEO
Volume 11, Issue 5
confident in our ability to achieve at
Effective decision making must become
competence. DDO will help us get
least $400 million of annualized cost
a hallmark of MetLife and a corner-
there. Over the course of the next few
savings by 2010.
stone of our brand. As we celebrate
months, as DDO is rolled out across
the opening of our new brand exhibit
the enterprise, I want to know if you
In this issue of Momentum, you will
in New York City (see page 6), I want
see a difference. Visit CEO Connection
learn about what we are doing to
all of our stakeholders to recognize
on my.metlife.com and use the links
further a very important component of
MetLife not just for its financial
there to share your thoughts on our
Operational Excellence: the Decision-
strength or product leadership, but
transformation. ■
< Visit Momentum Online on my.metlife.com >
1
June 2009
Setting MetLife Apart Individual Business targets independent annuity advisors with financial strength campaign
n past years, it was the annuity products with the most “bells
I
Print advertising provides the backbone of the campaign.
and whistles” that grabbed the most sales. Not so today. With
This is the first time MetLife has developed advertising that
the economy still uncertain, consumers appear more interested
targets the annuity advisor market. Launched in January, the
in buying annuities from companies with financial strength and
ads state that “Times like these set MetLife apart,” and have
a solid reputation — companies like MetLife.
appeared in important trade publications such as Investment News, Financial Planning and Investment Advisor.
As one of the strongest, most well-respected insurance companies in the world, MetLife has been growing its
Additional campaign materials provide more information
reputation — as well as its annuity business — in the
about our diverse business mix, well-positioned investment
independent sales channel as advisors have placed more
portfolio and risk management philosophy, and include:
emphasis on doing business with the most financially secure annuity providers.
Convincing advisors to consider MetLife is the goal of a new national advertising and marketing campaign spearheaded by Individual Business’s Retirement & Wealth Strategies group. Internally referred to as the “Promises” campaign, because it focuses on how MetLife keeps its promises, the campaign reinforces our leadership position and strength, and provides a level of transparency as to how our business is run.
“Our objective is to differentiate MetLife on financial strength,” says Paulina Vakouros, vice president, Retirement & Wealth Strategies. “We are focusing on how we are being smart in today’s tough economy in order to ensure our future success.”
> Webcasts with independent advisors — On February 25, Eric Steigerwalt, senior vice president and treasurer, discussed MetLife’s capital strength and hedging strategies. On May 14, Steve Kandarian, executive vice president and chief investment officer, talked about our company’s investments and investment portfolio. Outstanding turnout for these Webcasts proves that advisors are looking for timely information about MetLife and our financial stability. > “Keeping Our Promises” brochure — This easy-to-read piece, released in March, provides facts about our strong position and has proven to be very popular.
Says Paul Sylvester, senior vice president, Retirement & Wealth Strategies, “This campaign gives our sales force an ‘in’ to talk with advisors about MetLife’s financial strength and stability alongside the product discussion. Advisors want to feel comfortable recommending the company behind the products and guarantees. MetLife has what advisors and their clients are looking for.” ■
* Annuity provider ranking in ad based on LIMRA sales data, YTD 4Q 2008, based on combined sales of fixed and variable annuities to individuals. Guarantees apply to certain insurance and annuity products (not securities, variable or investment advisory products) and are subject to product terms, exclusions and limitations and the insurer’s claims-paying ability and financial strength.
The third edition of the newly enhanced Momentum Online is now available from the home page of my.metlife.com. New format. Easier to read. Full of online extras, such as audio, links to additional information and these “online exclusive” stories: An A+ Underwriting Class
1,500 Kids Say, “Hello, Snoopy!”
Nearly 85 “students” attended Individual Business’s 2009
On April 23, MetLife welcomed more than 1,500 children to
MetLife Underwriting University in mid-April. Learn why
Take Our Daughters and Sons to Work Day® (TODAS). The
these individuals are so important to our business.
event was a huge success.
MetLife Sponsors South Asian Spelling Bee
Opening Doors for Special Families
The 2009 MetLife South Asian Spelling Bee gives children a
Barnum Financial Group, a MetLife office, recently hosted
chance to test their spelling skills — and helps MetLife
an open house at its new Center for Special Needs Planning,
demonstrate our commitment to the South Asian community.
developed in conjunction with MetDESK®.
Looking at Trends in Managed Accounts
The MetLife Pro-Am Cycling Team Rolls On
Join Jeffrey Wilk, vice president, Individual Business, as he
Cycling’s positive impact on health, physical fitness, quality of
attends an industry roundtable on the rapidly evolving wealth
life and environmental issues are just some of the reasons
management arena.
MetLife is again sponsoring the Pro-Am Cycling Team.
Don’t Miss the Blimps!
What’s Your Passion? — Donna Sauer is an Easy Rider
This year, Snoopy One and Snoopy Two will continue to
We profile Donna Sauer, HR Operations & Service Delivery,
promote our brand at more than 70 sporting events and
as she takes to the nation’s byways on her Harley Davidson.
countless public appearances. Here’s a list of dates, places
See a photo gallery of her adventures.
and times.
2
momentum
Continued from Page 1 Research shows companies that focus on
what new behaviors it will require. We
Making decisions RAPID
a rigorous decision-making process —
know that we need to have one decision
one that results in high-quality decisions
framework throughout the organization,
Along with defining our decision style,
made with appropriate speed and effort
to define our predominant decision-
we are also identifying critical decisions
— consistently generate higher levels
making style and ensure clarity around
to ensure we expend the right time and
of revenue growth and profitability.
roles and responsibilities: what decisions
effort on the decisions that make a
Improving our decision-making
matter most, who owns the decision
difference. MetLife will be using a tool
A look at MetLife’s Decision-
capabilities will help us navigate through
and where there are opportunities for
called RAPID (see sidebar) to provide a
Driven Organization initiative
today’s challenging environment and
process improvement.”
common approach and vocabulary
enable us to extend our lead versus our peers.
A commitment to change
Hitting the Mark Through DecisionDriven Behavior
across the enterprise with regard to MetLife has committed to a
decision making. This will help provide
“participative style” of decision
clarity around the roles and processes
making, meaning that we will clarify
in decisions. It will also enable us to
a single point of accountability for
make decisions more efficiently,
What will it take to improve the quality
each decision and efficiently involve
thereby reducing both costs and process
of the decision-making process
all relevant perspectives in the
complexity.
at MetLife? As with any major
decision process in a collaborative
transformation, a key component is
way. Researchers have found that more
Over the past months, we have focused a
having the commitment to change. Says
than half of the companies they’ve
lot of time on developing the plans and
Eric Steigerwalt, senior vice-president,
identified as having a highly effective
framework for enhancing our decision-
treasurer and DDO team captain, “Over
decision-making process use a
making effectiveness. We are gaining momentum. However, we need your
the past few months, we have focused a
participative style — and that these
lot of time on developing the plans and
companies also have significantly higher
help to further embed DDO into our
framework for enhancing our decision-
employee engagement and morale.
culture. As DDO is rolled out in your
making effectiveness: what it means to
organization, please get involved. This
be a decision-driven organization and
important initiative is aimed at helping you do your job better, more efficiently and in a less complex environment. ■
Roles in the
RAPID Decision Model
Recommend — Those who have primary responsibility for making a proposal.
Agree — Those who formally
A DDO Roundup
approve a recommendation. The RAPID tool has been gaining visibility as the Decision-Driven Organization initiative is rolled out by division throughout the enterprise. Here's a brief roundup of a few of the efforts underway to dramatically improve our decision-making processes:
Perform — Accountable for executing the decision.
MetLife Auto & Home®
Individual Business
One of the key processes reviewed was the setting of the
In mid-April, officers participated in a DDO survey to assess
countrywide pricing strategy for the organization. RAPID
the current state of decision effectiveness and execution in
Input — Consulted on the decision. Decide — Individual who makes
was applied to the sub-decisions supporting this process. This
the organization. The IB Senior Leadership Team reviewed
the final decision (“has the D”).
clearly demonstrated where Auto & Home had opportunities
the results in May and selected the first decisions to x-ray.
to provide role clarity for stakeholders and reduce the
Members of the decision teams will learn the x-ray technique
number of people and the effort involved in making
and begin conducting the in-depth analysis in order to make
decisions related to setting the company’s pricing strategy.
recommendations for improvement.
Institutional Business
Finance
Late December, Institutional selected several key decisions —
Two key areas for improvement that will be the focus of the
like how the business invests in discretionary dollars — to be
initial rollout of DDO will be Expense Management and
x-rayed using the decision-making framework and RAPID
Financial and Management Reporting. These areas were
tool. Building on the results of this pilot, Institutional is
discussed at the Finance Leadership Team meeting held in
currently x-raying another set of high-impact decisions by
late May and, using the RAPID tool, participants identified
utilizing the decision-making framework. In addition, the
numerous potential improvement opportunities.
business has a concerted effort underway to improve the effectiveness of meetings and encourage behaviors that
Investments
lead to more productive meetings.
Over the next several months, the top decisions within
Technology & Operations
making roles and processes are clear. To start, two areas are
At April’s Tech & Ops Leadership Meeting, DDO was launched
being addressed: a cross-functional team, including members
and participants engaged in robust discussions to identify
of the portfolio management unit and the relevant asset
their departments’ top 25 decisions, x-ray critical decisions
sectors, are reviewing the process for high-level quarterly
and eliminate low-value work. As an example, ITG began the
asset allocation decisions; Planning Board members are
decision x-ray process, utilizing RAPID, around how project
meeting with their direct reports to assist in rolling out the
resources are identified and committed once a project has
DDO framework, and will choose one decision within their
received approval and funding.
unit to assess.
International Business
Legal Affairs
Two processes — Strategic Planning and Analytics and
In March, DDO and RAPID were introduced to the Legal
Investments are being reviewed to ensure that the decision-
Product Development & Pricing — are in the process of being
Affairs Extended Leadership team. In early May, the DDO
re-designed utilizing RAPID to improve decision making and
survey was launched and completed by a cross section of
ensure greater accountability and delegation for both
Legal Affairs associates. Legal Affairs is now analyzing the
country operations and the New York Home Office.
survey results to determine next steps, which will be explored
Visit the Strategic Initiatives Web site on my.metlife.com for DDO background, work underway, and the methodology being instituted enterprise-wide to strengthen our decisionmaking capabilities.
at the June Extended Leadership meeting.
3
June 2009
An International Milestone: MetLife in Korea Celebrates 20 Years
he MetLife companies have reached
T
began transforming its existing agency
an important milestone: their 20th
force. Now, it consists of approximately
population and the implications of Korea’s upcoming demographic transformation.
year in Korea. On June 1, 1989, the
4,800 highly professional, productive
MetLife companies entered the Korean
and specialized Financial Services
market as Kolon-MetLife, a joint venture
Representatives (FSRs) — both men and
between MetLife and the Kolon Group.
women — who provide clients with full
In 1998, the MetLife companies purchased
financial planning services.
study examining Korea’s rapidly aging
Product innovation and customer focus Also in 2006, MetLife in Korea celebrated
the Kolon Group’s outstanding shares, To further develop its sales force,
the sale of its one millionth individual
MetLife Insurance
MetLife in Korea developed a
life insurance policy, a testament to the
Company of Korea, Ltd.
Retirement Planning Professional
company’s commitment to customer
(“MetLife in Korea”).
Development Program with Seoul
satisfaction and growth.
and the company was re-named
National University in 2008 that will The operation is the
produce 2,400 retirement planning
“We have secured a competitive
second-largest business for
professionals among the FSRs over
advantage in the Korean market in terms
MetLife outside of the U.S.
the next two years.
of innovative product development,” said Stuart Solomon, CEO of MetLife in
(based on premiums, fees
Stu Solomon presents a plaque to Jin-Young Park, the one millionth Korean individual life policyholder, as a token of appreciation.
and other revenues for the
In addition, MetLife in Korea is
Korea, “as witnessed by the success of
past two completed
aggressively pursuing bancassurance
our VUL (Variable Universal Life) product
quarters) and is a leading
based upon the MetLife companies’
and the subsequent success of our GMAB
provider in Korea of whole
experience in other international
(Guaranteed Minimum Accumulation
life, variable universal life
markets. It now has seven partner
Benefit) product.” The company is also
and annuity products (which are
banks and two partner security
pursuing expansion into the retirement
offered through its own individual
companies, covering over 70 percent
market by concentrating on both
agency sales force and bank — or
of the total market.
personal annuity and group retirement pension products.
“bancassurance” — distribution channels) The CSIS report, sponsored by MetLife, identified the key challenges posed by Korea’s looming age wave and proposed creative policy solutions.
and group retirement savings products (offered
Social responsibility and thought leadership
anniversary celebration was held in
through its employee benefits sales force).
A professional distribution approach
To celebrate the milestone, a 20th
In 2005, MetLife in Korea established
Korea in late May. Bill Toppeta, president
the MetLife Welfare Foundation
of MetLife International, attended the
(“MLWF”) to demonstrate the company’s
anniversary celebration and held a
commitment to the community it serves.
town hall meeting.
Since its inception, the MLWF has made Throughout the 20 years,
contributions of approximately US $4
“Celebrating our 20th anniversary is
MetLife in Korea has celebrated a
million in support of programs aimed
a great achievement,” added Stu.
number of noteworthy achievements.
to help poor, mentally or physically
“Throughout the years, the hard work
challenged children.
and dedication of our associates have contributed to our longevity in the
For example, the company’s captive professional agency force is one of its
MetLife in Korea has also built a
biggest success stories in Korea.
thought leadership program on aging
Traditionally, life insurance was sold by
issues. In 2006, it engaged the Center
Look out for more information on Korea’s
housewives in Korea on a part-time
for Strategic and International Studies
20th anniversary on my.metlife.com and
basis — but in 1998, MetLife in Korea
(CSIS) to produce and roll out a major
MetLife NewsDaily. ■
Big, Strong and Trusted
market and to our successful position.”
A series of quick looks at why MetLife stands out in today’s market
Strength Through Diversification “Don’t put all your eggs in one basket.” While that phrase may be cliché, there’s no arguing with the logic behind it. Whether it’s eggs, investments or running a business enterprise, diversification can be a great strategy. It spreads your risk, and helps you weather the storms that time can throw your way.
In this difficult economic time, MetLife’s mix of diversified businesses has been of particular interest to stock analysts as they evaluate our company’s strength. That’s why MetLife senior executives have repeatedly used the slide shown here during their presentations to the investment community. Using firstquarter 2009 results, it shows where our premiums, fees and other revenues (excluding investment income) came from — and it proves that MetLife is not overly reliant on any one product or service for our success.
At the same time, the chart shows that we don’t do things that aren’t core to MetLife. While our businesses are diverse, they are also complementary, relying on a common platform of skills, expertise and management disciplines to drive them forward. ■
4
momentum
M
ore than 50 million Americans
leadership, creativity and innovation in
companies feature performances as
have a disability, including
promoting access to the arts for all.”
well as works developed by dancers with and without disabilities.
physical, sensory, cognitive and developmental. With the aging of the
Grants were made to the following
The Foundation supports their
baby boomer generation, an increasing
organizations:
national tours.
number of Americans are acquiring disabilities. In addition, more students
> VSA Arts — In 2005, MetLife Foundation and VSA Arts launched
with disabilities are joining the general
Arts Connects All, a national
population in public schools and
to make education programs
enable individuals with disabilities to
accessible to students with and
participate fully in all aspects of society.
without disabilities. Twenty-one programs across the country have
Recently, MetLife Foundation made
been honored that have engaged
seven grants totaling $580,000 for
more than 31,000 students directly.
innovative and inclusive programs
The recent grant will expand the
that promote access to the arts for
2
1
Foundation’s partnership with
individuals with disabilities and raise
VSA Arts. > Boston Children’s Museum (BCM) — access/ABILITY, an award-winning,
of exhibitions and arts groups that
highly interactive exhibit for children
promote awareness of disabilities to
and families, promotes public
outreach programs that enable
awareness of disabilities and positive
people with disabilities to participate
images of individuals with disabilities.
in the arts.
With Foundation support, the exhibit, which was developed by BCM, will
“We believe that arts play a vital
travel to at least eight locations
role in learning and enriching our
across the country over the next two
communities,” said Dennis White,
“We are proud to partner with arts
a series of community-specific, cross-
arts organizations and public schools
be an increasing need for programs that
president and CEO, MetLife Foundation.
Undesirable Elements/Secret History,
innovative collaborations between
disability community grows, there will
Programs supported range from tours
> Ping Chong & Company —
competitive program that encourages
requiring special services. As the
public awareness of disabilities.
MetLife Foundation Promotes Inclusion Through the Arts
years. > AXIS Dance Company and the
organizations that have demonstrated
Dancing Wheels Company — These physically integrated dance
cultural oral history theater works, includes Inside/Out . . . Voices from the Disability Community. > Metropolitan Museum of Art — MetLife Foundation is the lead sponsor of the museum’s access initiatives for individuals with developmental, learning, physical and sensory disabilities. > Public Theater — To support outreach
during the free summer season of Shakespeare in the Park in New York City. ■
ometimes, sharing is one of most environmentally
cost savings will help us reduce our expenses, and contribute
friendly things we can do. For example, everyone
to our bottom line. For our enterprise, fewer machines —
S
3
to hearing-impaired theatergoers
knows the advantages of sharing a ride or taking public
coupled with the devices’ advanced “green” technology —
transportation. Less gas is consumed, fewer pollutants are
is a major step forward in our commitment to environmentally
in the air, and it saves money. At MetLife, we’re instituting
friendly practices. That’s something we can all feel good about.”
another form of sharing — and it’s “green” in terms of both of its environmental impact and its effect on our company’s
Realizing that privacy is a concern whenever resources are
bottom line.
shared, the new machines also feature the latest security
MetLife Foundation grants have gone to (1) Boston Children’s Museum, (2) Dancing Wheels and (3) the Metropolitan Museum of Art.
Going Green Through Sharing MetLife rolls out Managed Print Services
technology. Whenever associates need to print securely, they It’s called Managed Print Services (MPS).
select a code at the time they send their document to the
One of MetLife’s many Operational Excellence initiatives,
printer. The document won’t print out until they walk to the
Managed Print Services involves dramatically reducing the
printer and punch in the code. If they forget to walk to the
number of printer, fax and copier devices at MetLife
printer, the document is erased from the printer’s memory
(currently, more than 20,000) and replacing them with
after 24 hours.
all-new, shared, “multi-function” devices from a single provider: Xerox. The end result . . .
Global Procurement has partnered closely with each line of business to ensure business needs were met. In fact, prior to
> Better quality — by upgrading our current print/fax/copier devices with new, leading-edge technology > Faster service — by utilizing an industry leader (Xerox) to provide proactive, centralized maintenance of that technology > Lower cost — in fact, with business support, MetLife expects to save as much as $20 million over the next five years > A “greener” workplace — Through MPS, MetLife will send 70 percent less printer-related waste to landfills and will reduce printer-related energy consumption by 90 percent
“If you look at the benefits of MPS, you realize it’s a triple-win,” says Roy Anderson, vice president, Global Procurement, who is spearheading the initiative. “For associates, the quality and service behind these devices will result in heightened reliability as we print, fax and copy. For our businesses, the
the company-wide rollout, Procurement implemented a pilot program that included portions of Individual Business, Institutional Business, MetLife Auto & Home® and Technology & Operations. The pilot proved very successful. “Now, as we institute MPS at each MetLife location, we’re continuing that partnership by working with key contacts from every business unit,” says Roy. “So all departments have a voice in the process.” As of the date Momentum went to press, MPS rollouts have been implemented in 15 MetLife offices, and more offices will be included throughout the fourth quarter of 2009.
“We realize that sharing print devices is new for associates,” adds Roy, “and training will be provided. The very essence of Operational Excellence is finding new ways of working that make MetLife faster, better and more profitable. Managed
“The very essence of Operational Excellence is finding new ways of working that make MetLife faster, better and more profitable. Managed Print Services certainly delivers on all fronts.” — Roy Anderson
Print Services certainly delivers on all fronts.” ■
5
June 2009
A Company That Cares 100 years ago this month, the MetLife Visiting Nurse Service was born
n the spring of 1909, a handshake
I
trained HSSH nurses would provide
sealed an historic agreement between
nursing care to MetLife policyholders
Suffering from leg ulcers, Daly, an Irish
Haley Fiske, MetLife vice president, and
on the West Side of the city. In return,
immigrant, blessed both Nurse Beazley
Lillian Wald, director of the Henry
MetLife agreed to pay the nurses
and MetLife for attending to her
Street Settlement House (HSSH) in New
50 cents per visit.
sickness and discomfort.
three-month
And so the MetLife Visiting Nurse
Daly — and what would grow to be
experiment,
Service began.
millions of policyholders like her —
MetLife Visiting Nurse Service client.
York City. The agreement called for a
realized the benefits of MetLife’s
during which On June 9, 1909, Ada Beazley, a Henry
promise that, for just pennies a week,
Street nurse, reported to MetLife’s
immigrants could avoid a pauper’s
office to collect a
grave while receiving skilled nursing
list of industrial
care to alleviate the physical and
policyholders who
psychological pain of tenement life.
had requested nursing care. After being
At the height of the program, almost
informed of the social
8,000 cities and towns in the U.S. and
background of her
Canada were served — and over the
patients, she walked the
course of 42 years, more than
See additional VNS images.
city’s sidewalks to locate
105 million visits were made to
Visit Momentum Online.
Ellen Daly, the first
almost 20 million sick people. ■
More Online
This Brand is Your Brand MetLife’s Brand Exhibit Opens in New York City
F
or 141 years and counting, MetLife’s distinctive brand has
been unveiled on the 23rd floor at 1095 Avenue of the
been one of our most powerful assets. Today more than
Americas in New York City: the MetLife Brand Experience.
ever, our brand stands out among competitors for its stability
This 3-D companion to the online exhibit features an ever-
and financial strength. While some financial services players
changing gallery that celebrates MetLife’s history, showcases
have pulled back in terms of their marketplace visibility, the
our people and, of course, pays homage to Snoopy®.
MetLife brand continues to be promoted in very visible ways, reassuring current customers and attracting new consumers
new brand exhibit in May, assisted by other members of the
to MetLife.
New interactive display is a “must see” for MetLife associates and visitors
Chairman Rob Henrikson led the ribbon-cutting for the
Executive Group. Housed on the conference center level of You may already be familiar with our online brand exhibit,
the building, the exhibit is open during business hours daily
Our Brand Our Story (at brandcenter.metlife.com), which was
and is a “must see” for associates, customers and other
launched last year. Now, a new physical brand exhibit has
MetLife guests. ■
1
4
6
6
2
(1) Cutting the ribbon at the exhibit are Beth Hirschhorn, senior vice president, Global Brand and Marketing, and Rob Henrikson, chairman, president and CEO. (2) Snoopy relaxes while watching a video about our history. (3) Rob with brand contest winners Elsa Arnett-Conley, Laura Caggiano and Glenn Buono. (4) A widescreen multimedia display of MetLife history. (5) Snoopy and Woodstock stand in front of interactive media screens and display cases. (6) Harry P. Kamen (left), former MetLife CEO and chairman of the board, is interviewed at the exhibit opening. (7) MetLife associates enjoy an interactive motion picture display recapping our growing global presence. (8) Associates Angela Conway and Jennifer Burke are happy with the exhibit — and with their hug from Snoopy.
3
5
7
8
momentum nstitutional Investor Magazine has
I
the downturn, but also are in a position
weather the recessionary environment
named Bill Wheeler, MetLife’s chief
to increase their market share when
and emerge as one of the strongest
financial officer, one of America’s
the economy recovers,” the publication
companies in the industry.
Best CFOs and the No. 1 CFO in the
reports. “These executives are moving
Insurance/Life sector for three years
to preserve liquidity by clamping down
A profile of Bill appears on Institutional
running. The financial crisis, and how
on costs, paying down debt where
Investor online. The profile and article
CFOs are steering their companies
possible and taking advantage of
are available through MetLife’s Media
through it, was an important driver
market openings to raise capital.”
& Industry News service on the home
Bill Wheeler Named One of America’s Best CFOs
page of my.metlife.com.
of the rankings. The magazine cites Bill’s decision to “Virtually all of the top-ranked CFOs in
further strengthen MetLife’s balance
Commenting in his profile, Bill says:
Institutional Investor’s seventh annual
sheet through a bold capital raise of
“If you are not careful, you can let a
exclusive survey of America’s Best CFOs
$2.3 billion last October as an
crisis run your life. But we still have a
are taking aggressive action to ensure
important reason why he earned the
business to run, and business is actually
that their companies not only survive
top spot. It positioned MetLife well to
pretty good.” ■
F
inancial challenges and the ongoing need to increase
programs and services that are most likely to meet employees’
employee engagement and loyalty have chief financial
desires for security, fulfillment and relevance. Having this
officers and HR executives across many companies stuck
perspective will help companies get the most out of their
between a rock and a hard place. They understand the value
benefits investment, he says.
of providing competitive benefits, which can boost employee satisfaction and retention; but they also face pressure to
After reading the book, employers and brokers should be
manage their costs.
better positioned to assess the competitiveness of their
New Book Gives MetLife an “Edge” Another opportunity to be seen as a thought leader
This is creating an opportunity for Institutional Business to once again differentiate itself as a thought leader. A new book written by Institutional Business’s Dr. Ron Leopold provides strategies to help employers in today’s business climate maximize their benefits dollars as they work to meet the needs of an increasingly diverse workforce.
Grounded in research from MetLife’s Employee Benefits Trends Study, The Benefits Edge: Honing the Competitive Value of Employee Benefits is designed to
benefits programs,
help benefits decision makers optimize the value of their
as well as to make
benefits programs. It encourages employers to approach
decisions on the
benefits, not as an expense, but as a strategic investment in
best way to maximize their benefits spend
their business goals to boost employee productivity, as well
going forward.
(Above) Dr. Ron Leopold, author of The Benefits Edge. (Left) The book and ad promoting it.
as to attract and retain top talent. The Benefits Edge is Ron’s second book. He is also the “Benefits are strategic tools that can enable employers to
author of A Year in the Life of a Million American
strengthen connections with their employees,” says Ron,
Workers, an almanac of absence data that provides a
“which is important given that strong talent is a perennial
comprehensive picture of one million American workers
source of competitive advantage.”
and their health conditions, illnesses and absence patterns over a one-year period.
More Online
In the book, Ron discusses the value of viewing benefits holistically through the lens of employees’ needs. The
Ron has responsibility for thought leadership initiatives and
Benefits Edge shows employers how to target those
events within Institutional Marketing. ■
Listen to a short interview with Ron discussing the four “Employer Profiles.” Visit Momentum Online.
A Bold Framework for Thinking About Employee Benefits
Four Distinct Employer Profiles Described
To shift the mindset of benefits programs as an “expense” to a “strategic business
The Benefits Edge describes
driver,” the book encourages employers and brokers to move away from the
four employer profile types,
conventional notion of benefits silos (e.g. Medical Coverage, Retirement Accounts,
corresponding to how companies
Time-Off Policies) and toward a
approach their benefits
well-thought-out balance of four
programs in comparison with
key Strategies that align with
their competitors. The profiles
employees’ holistic needs:
can help employers better
Health & Wellness, Financial
identify where they are on the
Security, Life Balance and
benefits spectrum and help
Employee Experience.
inform future decisions.
7
June 2009
Diversity at MetLife Diversity in Spend: Why It Matters How our Supplier Diversity program builds MetLife’s competitive advantage
etLife’s marketplace has become
M
Roy Anderson, vice president, Global
increasingly diverse — and the
Procurement, makes the case clear. “As
dollars for our suppliers, but also
trend is likely to continue. According to
we move literally billions of dollars to
provide them with mentorship,” Roy
the U.S. Census Bureau, minorities are
various suppliers around the country
adds, “our MWBE partners can grow
expected to grow from 33 percent of
and around the world, there’s a very
and develop — and maybe find MetLife
the U.S. population in 2010 to over
marked impact,” says Roy. “The dollars
a desirable partner to supply them with
47 percent by 2050.
go beyond the pockets of the MWBE
our products. That’s really where the
(Minority and Women-owned Business
value proposition is!”
This is why our enterprise has created
“If we can generate not only the
Enterprise) owners who supply us.
a Supplier Diversity Program. The
They also go to the folks they’re hiring
MetLife has played a significant role
program is focused on building a
from their communities and to their
in helping many MWBE businesses
supplier base that reflects the diverse
own suppliers. Then, those people
grow. One such success story is River
markets we serve. By doing that, we
invest their salaries at supermarkets
City Furniture (RCF). Go to Momentum
build our reputation and support in
and gas stations and restaurants in
Online to learn more about our
communities across the country while,
the communities. So it’s a very big
Supplier Diversity Program and the
at the same time, helping members of
ripple effect.
RCF success story. ■
those communities to build wealth and stability.
Does Supplier Diversity Matter to Customers?
More Online Read a Supplier Diversity success
A blind survey of 1,200 women asked to what extent knowing a corporation had a strong commitment to purchasing from
story. Visit Momentum Online.
MWBEs would increase their brand loyalty. Seventy-nine percent indicated it would entice them to try a corporation’s products or services if they were not already a customer. Source: WBENC, May 2007
Transforming Corporate Benefit Funding An “Operational Excellence snapshot”
A
cross the enterprise, departments are supporting
threats, the team partnered across the enterprise to design
MetLife’s Operational Excellence initiative – and
the future state operating model and build out strategies
Corporate Benefit Funding (CBF), part of Institutional
and value propositions for each business. Then, the team
Business, is no exception. The group’s efforts to redesign
identified gaps between the current state and the future
their operating model and leverage the Global Operations
state model. Based on that information, CBF is implementing
Support Center (GOSC) are just two of the projects
recommendations that will reduce complexity and expenses
currently underway.
while also improving financial controls and customer service.
A model for the future
As work on the future state model progresses, significant emphasis is also being placed on helping associates be more
Embracing change: CBF leaders Rich Carter, assistant vice president, Robin Lenna and Andy Aoyama.
In the fall of 2007, CBF began a comprehensive analysis of its
effective and using technology strategically to transform
operating model, starting at the point a customer agrees to
how we do business. Better-defined responsibilities and clear
do business with us and continuing through the ongoing
lines of accountability are improving decision making, and
administration of its annuity, investment and structured
opportunities for training are facilitating associate
settlement businesses. According to Robin Lenna, senior vice
development. Through technology, CBF is also enhancing
president, “Our goal is to design an operating model that is
operational and financial controls that are critical to its
more market- and customer-focused and enables us to
success.
maximize our future growth and earnings potential.”
Enhancing capabilities through the GOSC To accomplish this, a cross-functional team assessed the
Did You Know? A key growth area within Institutional Business, CBF offers employers smart ways to “pay for” their employee benefit plans, as well as retirement and savings solutions. For more information, visit my.metlife.com/cbf.
current state of business processes and workflow. This review
In addition to streamlining its operating model, CBF is
identified several issues, including processes that required
supporting Operational Excellence by using the Global
handoffs to multiple organizations, systems and locations, and
Operations Support Center to enhance the CBF’s capabilities.
the need for stronger financial and operational controls.
The group is currently evaluating an opportunity to have
According to Andy Aoyama, vice president and leader of the
GOSC associates work with MetLife Assurance Limited (MAL),
effort, “We’ve taken a pilot approach to the future state
our UK pension closeout business, to generate standard
initiative by focusing first on the opportunities within just a
quotes for smaller cases (below $30 million). While still in the
couple of businesses. This has provided us with best practices
early stages, a pilot is planned over the next several months
and a framework that can be used for the operational
and Dan DeKeizer, head of MAL, points out that, “Using the
re-engineering effort throughout CBF.”
GOSC in this way will allow us to enter a market that, right
Using customer feedback, external benchmarking and an
revenue and profits at a faster pace, and speed our response
in-depth study of strengths, weaknesses, opportunities and
to the client.” ■
now, we can’t enter cost effectively. It will also help us grow
Momentum is published by MetLife Internal Communications for associates enterprise-wide. Send questions, comments or ideas for stories to momentum@metlife.com. Vice President, Internal Communications: Susan Berger Editor: Greg Potter Law Department Liaison: Mark Schuman Contributors: Toby Axelrod, Kasana Banks, Marc Baroni, Lisa Braun, Greg Brown, Ross Calvert, Caroline Campanelli, Jan D’Angelo, Sue Darago, Beth Freedman, Gina Gelman, Julia Levy, Daniel May, Donna Pobiner, Mark Vicenzino PEANUTS © United Feature Syndicate, Inc., www.snoopy.com © 2009 MetLife, Inc. Printed in USA (0609) Statements made in this publication may constitute forward-looking statements within the meaning of the federal securities laws, including statements relating to trends in the company’s operations and financial results, the markets for its products and the future development of its business. MetLife’s actual results may differ materially from the results anticipated in the forward-looking statements asa result of risks and uncertainties, including those described in MetLife, Inc.’s filings with the SEC. MetLife specifically disclaims anyobligation to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise.
8
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5:23 PM
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Read About Institutional Business’s National Benefits Symposium. Visit Momentum Online!
momentum Featured Inside
MetLife is Flying High with New Advertising
Choose to Be a Hero! 2 This Month in 2 Momentum Online Meeting the Need for 3 Trusted Advice
See the story on page 3, then see the TV campaign on the MetLife Video Gallery
The BSO: Adapting to 4 Today’s Needs 101 Jobs: What Does 5 Retirement Mean to You? MetLife Named a Top 50 6 Company for Diversity MetLife’s American Dream 6 Study Makes News Conflicts of Interest: Which 7 Direction Will You Take? “So Where Do You Work?” 8 Introducing the Green 8 Resource Center
The Need to Stay Connected
R
ecent events have fundamentally
consumer confidence in the long-term
It’s also true that we have a lot to say.
changed the context in which we
health of these companies is
New ads for MetLife annuity products
operate. Market volatility, changes in
dramatically influenced by advertising
have just launched (see page 3), touting
consumer expectations and behavior,
and marketing efforts. When asked
MetLife‘s #1 market positioning in
and regulatory actions have altered the
about their own banks, insurance
annuity sales for 2008 and reminding
business climate and the landscape of
companies and investment firms,
consumers that in today’s challenging
55 percent of respondents who said
financial environment, annuity products
they had seen more advertising from
are providing a safe haven for many. In
Adjusting to the new realities requires
their financial institution reported
fact, consumer “flight to safety” has
we adapt, too. Through initiatives like
having “complete confidence” in the
translated into unprecedented volumes
Operational Excellence, which began a
financial health and soundness of their
in our fixed and variable annuity sales.
year ago, we have already begun the
financial company. Of the customers
hard work needed to adjust and become
who reported seeing less advertising
See my.metlife.com for a media schedule
more nimble. At the same time, there
from their provider, 45 percent said they
of these new ads, as well as refreshed
are some things we need to maintain
have “little or no confidence” in their
spots for term life and disability. True,
and even ramp up. One of these is our
financial company.
the market may be tough — but to me,
corporate America.
Rob Henrikson Chairman, President and CEO
that says our clients need us and need
presence in the marketplace. This is why we continue to be active in
to know we are there for them, strong
At a time when financial institutions are
the market. Given an environment
as ever. ■
pulling back on their advertising, a new
where our competitors and industry may
study from Nielsen IAG shows that
be less visible, the MetLife message stands out more than ever.
Volume 11, Issue 4
< Visit Momentum Online on my.metlife.com >
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May 2009
Choose to Be a Hero! At the GAMA LAMP meeting, Joseph Jordan drives home role of the adviser
T
he work done every day by Individual Business’s MetLife
The powerful story truly illustrated how vital our work is to
and New England Financial advisers makes a positive
the lives of so many. “Living a life of significance doesn’t
difference in the lives of clients. Joseph W. Jordan, senior vice
happen by accident,” said Joe. “It’s not a matter of
president, National Sales, recently illustrated this in his
circumstance, it’s a choice. Our reps choose to be heroes,
“Choose to be a Hero” presentation on the main stage at
and they make a difference for our clients.”
GAMA International’s LAMP Meeting in Atlanta, Georgia. LAMP is a professional development event for managers in
The meeting had a tremendous MetLife and New England
the insurance and financial services industry that covers
Financial presence, with a turnout of more than 160 field
topics such as leadership, marketing, recruiting, producer
managers. Attendees participated in first-rate educational
development, retention and practice development.
and networking events designed to provide an edge in the
Joe focused on the significant role of the adviser, and the
highly competitive financial services industry.
Associates also attended a MetLife reception where Steve Day, senior vice president, MetLife Distribution, and Brian Breneman, senior vice president, New England Financial Distribution, shared insights on the value of industry associations like GAMA. They also recognized (Above, left) Joseph Jordan presents at the LAMP meeting.
managing partner Mike importance of telling clients about having a personal safety
Amine of New England Financial – Detroit and managing
net . His message to the audience of over 3,000 financial
director Paul Blanco of Barnum Financial, who were named
services leaders was clear: our clients need us to help them
“First in Class” winners by GAMA. Given annually, the First in
through some of life’s most difficult times.
Class award recognizes outstanding individual leadership.
Joe drove home this message by bringing to the stage Art
“LAMP was an outstanding experience,” said Brianna Castle,
Steinberg, special agent and financial services representative
recruiting coordinator for Thompson Financial in Charlotte,
from the GlobUs firm in Falls Church, Virginia, and his wife,
North Carolina. “As a ’first timer,‘ I was impressed by the
Donna. The Steinbergs provided a personal account of how
quality of speakers and the pool of talent from different
life insurance made all the difference for their family over the
management teams. There aren‘t many industry events where
course of several generations, ending in a heartfelt story
you can create study groups, take home new and exciting
about the unexpected loss of their son. The legacy continued
ideas to implement in your firm and make lasting friendships.
through a college scholarship funded by an endowment on
LAMP was an event to be remembered!”
sm
(Above, right) An emotional moment: Joe hugs Beth Cobb as (left to right) Donna Steinberg, Art Steinberg, Fiona Cobb and Chris Cobb look on.
■
behalf of their son. Joe also invited to the stage Fiona Cobb, a proud recipient of the scholarship.
GAMA International is a professional association for field leaders in the insurance and financial services industry.
This month on my.metlife.com The second edition of the newly enhanced Momentum Online is now available from the home page of my.metlife.com. New format. Easier to read. Full of online “extras,” such as interactive elements to the stories in our print edition plus these “online exclusive” stories:
MetLife Celebrates Five Years in Beijing
Individual Business Pumps Up Recruiting Tools
Five years ago, Sino-US MetLife in Beijing was formed as a joint
The Practice Development Group (PDG), part of Individual
venture between MetLife and Capital Airports Holding
Business’s Individual Distribution unit, was recently involved in
Company. Take a look at the photo gallery as associates
rebranding MetLife and New England Financial “Inexperienced
celebrate. Then, take a peek at the company’s colorful associate
Producer” (IXP) recruiting brochures. Learn the details and see
newsletter, Focus.
what the brochures look like.
Institutional Gets the Discussion Going at Benefits Symposium
What’s Your Passion? — Troy Floyd “Rides the Wave”
Institutional Business’s National Benefits Symposium is now in
Hang out (and hang ten) with MetLife associate Troy Floyd. By
its fifth year. This important event advances the dialogue
day a senior casualty adjuster for MetLife Auto & Home®, Troy
around pressing benefits issues and reinforces our position as
spends his free time riding the wave of his passion: surfing.
a thought leader. Read about it and watch a video from the Symposium.
2
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momentum etLife is continuing its consumer
M
four times the total deposits from the
In addition to these new ads, a
marketing efforts with two new
first three quarters of 2008. Variable
refreshed TV campaign is planned for
and highly relevant advertising
annuity sales also finished the year
our Term Life and Disability package,
messages this spring. At a time when
strong, with the result that for 2008,
leveraging a brand new tool: the Term
other companies may be scaling back
MetLife claimed the number 1 position
Life & Disability Simplifier. This tool on
their visibility, we have tremendous
in total annuity sales according to
metlife.com will enable consumers to
opportunity to make the MetLife brand
LIMRA, a leading industry association.
quickly assess, via three easy steps, how
“In today’s uncertain financial
need. Importantly, given today’s
The first new TV spots are focused on
environment, clients need protection
economy, messaging focuses on
variable annuities, a product many
from market volatility more than ever
affordability and simplicity of coverage.
consumers are finding particularly
before,” says Lisa Weber, president,
valuable today. In light of the
Individual Business and MetLife Auto &
Check my.metlife.com for more
challenging environment, we are
Home . “They’re looking for a strong,
information about the new campaigns
seeing a flight to safety, translating
trusted company that offers solutions
and a link to your own printable media
into unprecedented volumes in our
to help meet their needs. MetLife’s
schedule to share with your friends
fixed and variable annuity sales. In
annuity products, including variable
and family. ■
fact, Individual Business fourth quarter
annuities, provide real value to clients
2008 fixed annuity deposits were nearly
— and the ads highlight this.”
much life and disability insurance they
stand out in a big and positive way.
®
MetLife is Flying High with New Advertising
“In today’s uncertain financial environment, clients need protection from market volatility more than ever before. . . . MetLife’s annuity products, including variable annuities, provide real value to clients — and the ads highlight this.” — Lisa Weber
Watch the new MetLife TV campaign! VIDEO GALLERY
For a sneak peek at the new MetLife television campaign, visit the MetLife Video Gallery from the home page of my.metlife.com. (Below) In a television ad for MetLife’s enhanced disability/term life product, consumers learn that MetLife has combined two essential insurances — term life and disability — into one surprisingly affordable package.
Snoopy® literally “takes to the airwaves” in MetLife’s new television ad, encouraging consumers to prepare for retirement by considering a MetLife variable annuity.
Big, Strong and Trusted
A series of quick looks at why MetLife stands out in today’s market
Meeting the Need for Trusted Advice
T
he flight to quality and safety, coupled with MetLife’s ability to meet clients' needs for trusted advice and
guarantees, positions us to win in this changing marketplace. Individual Business has captured market share through its diverse distribution. This includes the Individual Distribution affiliated channels — MetLife, New England Financial (NEF) and MetLife Resources (MLR) — as well as independent distribution through broker-dealers, wirehouses, banks and independent producers.
MetLife's fierce commitment to face-to-face distribution differentiates us in the industry. Presented at Investor Day 2008 by Lisa Weber, president, Individual Business and MetLife Auto & Home®, the slide at left highlights the strengths of Individual Distribution. Our affiliated sales channels actively attract and retain talented representatives. In the field, our advisors provide trusted and knowledgeable advice to clients. By building and maintaining strong client relationships, our professionals instill peace of mind when needed most. ■
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May 2009
Adapting to Today’s Needs Recent changes in Institutional’s Benefit Services Organization strengthen MetLife’s competitive advantage
T
oday’s unprecedented market
pricing, proposal, contract and
conditions make a complicated
implementation, the BSO plays a major
benefits landscape even more
role in shaping the customer’s
complicated for employers trying to
expectations and overall service
provide attractive benefits to their
experience. Constantly raising the bar,
employees while controlling costs.
associates are focused on increasing
They are looking to MetLife for
the department’s efficiency, teamwork
benefits expertise and innovative
and quality.
Get to Know the BSO Account Management Denise Coffey, vice president Builds trusted relationships with Mid/ Large Market customers to advise and support their group benefits programs.
Underwriting
solutions to help them manage their
A cross-functional efficiency initiative
business for success.
“BSO associates support many cross-BSO and Institutional initiatives to help move the business forward and retain our leadership position in the marketplace. ”
Cynthia Smith, vice president Develops pricing structures to ensure customers have the right coverage at
For the Benefit Services Organization (BSO), part of Institutional Business,
To help Institutional stay competitive,
this means standing ready to meet
the BSO is reducing the complexity
clients’ complex needs with top-quality
of its operations to improve service
service, which leads to customer
delivery. They have embarked on
satisfaction and retention, and creates
a multi-year, cross-functional
a competitive advantage in winning
re-engineering project that spans the
new business.
entire service experience, beginning
the right price.
Client Acquisitions Ann Deugo, vice president Supports the onboarding and proposals for new business in the Mid/ Large Market and National Accounts.
with a customer proposal and ending at
— Tom Purcaro
(1) BSO account managers at work. An impressive 99 percent of customers report being satisfied with their primary MetLife contact at the BSO. (Left to right) Mark Hendricks, Mike Melles, Tom Knight, Lannette Duany-Smith and Kimberly Jahn.
Led by Tom Purcaro, senior vice
the point of claim readiness. The
president, approximately 1,200 BSO
project’s goals are to improve efficiency,
associates provide service to over 3,600
alleviate redundancies and institute
Mid/Large Market customers and
technology for optimum performance.
coverage for over 15 million employees.
Project Manager Nicole Laughridge is
To bring in new customers and retain
excited to report that, “To date,
current ones, the BSO works with many
with only two business units having
Institutional partners, including Sales, Product and Marketing. Through
Operations Chris Reed, vice president Provides business technology expertise and delivers eligibility, billing and ebusiness solutions for group customers.
National Benefit Center
Continued on Page 6
Louise Fultz, vice president Services benefit plans that include life and health administration and disability for National Account-sized customers, and Recordkeeping Services for Life and Voluntary Dental customers.
Business and Strategic Planning Chris Kaloudis, director Provides financial controls, budgeting, metrics, communications and project 1
2
management to support the BSO.
Institutional Contracts Bart Brown, vice president Creates, files and negotiates approvals for policies, certificates and other regulated forms with state and federal regulatory bodies and advises on complex contract matters.
Offshoring & Integration 3
(2) Taneisha Williams, Katina Clay, Cody Bryant and Annette Phillips. (3) Alecia Perry, Brenda Glover and Mary Szymanski. (4) Beth Holton and Louise Fultz.
4
Kurt Shingledecker, vice president Supports MetLife’s Global Operations
A Q&A with Tom Purcaro
Support Center in India, introducing new capabilities that enhance
What are you most proud of in the BSO?
efficiency and quality.
The team-oriented environment. It’s great to see the willingness of associates to support one another. BSO
Enterprise Business Architecture
associates support many cross-BSO and Institutional
David Acselrod, vice president
initiatives to help move the business forward and retain
Supports MetLife’s Operational
our leadership position in the marketplace.
Excellence efforts to enhance our business effectiveness and
What are the BSO’s greatest challenges?
reduce complexity.
Today, it’s meeting the ever-changing market needs, and continually creating more efficient business processes to better service our customers.
Sales and Broker Compensation Services
4
What are the BSO’s greatest opportunities?
Phyllis Mikolaj, assistant vice president
Leveraging our expertise and best practices across Institutional to be thought
Responsible for the design, payment
leaders around processes that create a more nimble, efficient organization that
and reporting of broker and sales
is better equipped to handle any economic environment in a timely manner.
force compensation.
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momentum Welcome to “101 Jobs That Make MetLife Go.” Every job at MetLife is critical to our success — and we thought you’d like to know more about them. Here’s a look through the eyes of another MetLife associate whose contributions keep our enterprise moving.
T
he idea of retirement conjures up different things
you have children? What are your other sources of retirement
for different people. Some dream of relaxing on the
income? All these factors contribute to understanding an
beach or playing golf. Others envision more time with
individual’s retirement picture. The next step is to assess
their grandchildren. Still others plan to continue
options and calculate a monthly benefit that the annuity
working part-time.
would provide.
For employees of MetLife Institutional customers who have
What questions do employees ask Kelly? Besides wanting to
been offered a MetLife annuity option as part of their
understand the products, they want to know about MetLife.
retirement plan, retirement Income Specialist Kelly Brindak is
“People don’t want to put their money just anywhere,
there to walk them through the possibilities — no matter
especially in today’s economic climate,” says Kelly. “One point
what retirement might mean to them.
I always stress is to consider how long a company has been
101 Jobs That Make MetLife Go What Does Retirement Mean to You? Income Specialist Kelly Brindak helps sort out the options
in business as well as its financial strength, stability and Part of a team of retirement income specialists with the
ratings. MetLife has a strong 141-year history of delivering on
Employee Benefits and Customer Sales (EBCS) organization
our promises.”
within the Customer Sales & Service Group (CSSG), Kelly’s job is to provide the extra hands-on support to help customers
Because there is no enrollment deadline for annuities, the
feel confident in planning for their retirement.
retirement income specialists may follow up with people over many months. “It’s a process,” adds Kelly. “And it’s
“Much of what the retirement income specialists do is help
tremendously rewarding when you know you’ve helped
people think through their retirement plans, to consider how
someone make a financial decision that can enhance the
they see themselves living,” says Kelly. “That is an important
quality of the rest of their life.” Even when her efforts don’t
step in helping them make good financial decisions. We also
result in a sale, they almost always translate into a customer’s
educate them so that they understand their benefits and can
positive relationship with MetLife.
make informed choices.” It’s not unusual for any of the income specialists to receive
One-on-one exploration
calls thanking them for their help and for the positive impression they’ve left about doing business with MetLife.
Kelly and her associates typically get calls from employees who have received material about retirement income options
Focusing on education
from their employers. “Employees call us directly if they don’t understand something, or want to discuss their situations,”
In addition to handling calls, the income specialists also
says Kelly. “They may feel overwhelmed by their retirement
conduct educational Webinars and onsite meetings for
benefit information, and are looking for someone who can
employees of Corporate Benefit Funding customers.
walk them through it and explore how it might help them.
According to Kelly, these are great ways to create awareness
We are there to provide individualized service and to help
and educate employees on their retirement benefits. This
translate the information into what it means for them.
also creates additional sales opportunities, as the income
Our services also help the employer, who doesn’t always
specialists reach out to employees following these programs
have the resources or in-depth knowledge to provide this
and offer individual assistance and enrollment support.
“Much of what the retirement income specialists do is help people think through their retirement plans, to consider how they see themselves living.” — Kelly Brindak
level of support.” When she’s not answering calls or conducting training, Kelly Kelly explains the basic concept of an annuity in terms
also speaks with clients’ executives about their benefits.
familiar to people. “Essentially, it’s turning a lump sum of
This is a new role she shares with a small team that handles
money into a guaranteed stream of income for life,” says
executives’ benefits. “We piloted this idea about two years
Kelly. “While there are different types of annuities, such as
ago and have seen it grow over time,” says Kelly. Partnering
fixed and variable, the basic concept is fairly simple. In
closely with product specialists in two areas — Group
explaining annuities, we build on that basic concept,
Variable Universal Life Insurance and Individual Supplemental
depending on what is relevant to the individual.”
Disability Insurance — Kelly and her colleagues proactively contact select executives who have been offered these
A personal touch
benefits.
Knowing what is relevant to the individual is a key part of
“We reach out to offer our personal assistance in explaining
Kelly’s job. It can take time, and requires strong and trusted
the benefits and the enrollment process. Again, our goal, as
relationships.
with all products, is to create the awareness of the offer and
Did You Know? In addition to annuities, CSSG’s Employee Benefits Sales Group of more than 200 associates also help
help to educate.” According to Kelly, this personal touch has “When you’re talking to people about what to do with
become an effective tool that is utilized by her product
money they’ve saved over a lifetime, it can be an emotional
partners, including the account representatives who engage
process,” says Kelly. “You don’t want them to make rash
new customers.
employees with their voluntary benefit decisions regarding auto and home, long-term care, critical illness, life insurance, and MetLife Bank products.
decisions, and you must be sure you have a good feel for their situations. You need to ask questions and gather facts to
“It’s exciting to see that we are making a difference,” says
help the caller make an informed decision.”
Kelly. “We’re part of the puzzle that makes up the Customer Sales and Service Group. We help others feel good about
Kelly begins by asking some key questions: What is your
their decisions and confident about their financial futures.” ■
vision of retirement? Do you plan to travel? Will you be downsizing? Will you work part-time? Are you married/do
5
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May 2009 Continued from Page 4
Adapting to Today’s Needs Recent changes in Institutional’s Benefit Services Organization strengthen MetLife’s competitive advantage
been reviewed, we have already
delivery of quality service. Associates
changing market expectations. We
implemented 13 of 30 quick wins that
benefit by learning new skills and
recently responded to customer
required just minor changes, but will
contributing where they are needed
requests for improvements in how
result in impressive efficiency gains.”
most. Recently, Contingent Staffers
we implement new business and
handled 17 percent of the contract
design plans.”
Better teamwork through
production during the peak January 1st
sharing
implementation season with great
As part of this redesign, a quality
results. Customer Accounting is hosting
assurance program was developed, and
Fostering a team environment is a
Contingent Staffers with equally
the efforts have paid off. Results show
true BSO strength. One example is
impressive results, while Proposals
a more than 98 percent accuracy rate
Contingent Staffing Teams, an
and Underwriting are awaiting
and 22 percent improvement in cycle
innovative method for handling
Contingent Staffers in June.
time for customer implementations.
Results like these are attainable because BSO associates are committed to customers and MetLife. In return, rewarding associates for meeting today’s challenges is a priority for BSO leadership, who recently launched a Reward and Recognition program to recognize the quality work of associates and teams. 1
2
Overall, the BSO’s focus on efficiency, (1) Gerry Przywara, Kimberly Clark and Christine Scobel. (2) Torri Carter.
Diversity at MetLife MetLife Named a Top 50 Company for Diversity
extra-busy seasons in business units. (For more detail, see the February/
Improving quality by responding to feedback
March Momentum.) During peak
teamwork and quality is enabling the organization to successfully manage through today’s economic climate,
workloads, teams “borrow” associates
Paige Scott, assistant vice president,
while maintaining MetLife’s reputation
from other units that have the ability
explains that, “Quickly responding
in group benefits as a provider with
to temporarily loan personnel.
to customer feedback becomes
high-quality service for both employers
Customers benefit from the timely
increasingly important with the
and their employees. ■
etLife has been named to DiversityInc’s “Top 50
president and chief executive officer. “Although we have been
Companies for Diversity” list, a select honor awarded to
on DiversityInc’s list of noteworthy companies for the past
M
companies that excel in their approach to diversity. The award
three years, the last time we were among the top 50 was in
demonstrates MetLife’s strong commitment to diversity and
2005. We should all be proud of this achievement.”
inclusion within our businesses and the workplace, and in the communities we serve.
DiversityInc is a publication that brings education and clarity to the business benefits of diversity. The Top 50 Companies for Diversity survey is an in-depth analysis of corporate diversity management and planning. The competitive listing is highly regarded across industries. This year, 401 leading companies
“Being included in this list is recognition of the central role diversity plays at MetLife.”
participated in the survey, an increase of 14 percent from last year, underscoring the increasing emphasis on diversity among progressive companies.
— Rob Henrikson
“I’m thrilled that DiversityInc has recognized our broad leadership in diversity,” stated Lisa Weber, president, Individual Business and MetLife Auto & Home®. “Every day, we focus on diversity as a key driver of our business results —
MetLife’s American Dream Study Makes News Generates coverage on MSNBC, CBS Sunday Morning and more
“Being included in this select list is recognition of the central
and we win in the marketplace because of it. This prestigious
role diversity plays at MetLife,” said Rob Henrikson, chairman,
award really reinforces MetLife’s longstanding commitment.” ■
S
ince its March launch, The 2009 MetLife Study of the American Dream has been generating significant media interest, including live interviews on MSNBC and Air
America radio; prominent mentions on The McLaughlin Group and CBS Sunday Morning; and widespread written coverage, ranging from the financial press to lifestyle blogs. In fact, the Study has been mentioned or featured by the media nearly 60 times. Especially exciting, The McLaughlin Group devoted an entire show to discussion of the American dream. Beth Hirschhorn, chief marketing officer, represented MetLife as the featured panelist, providing insights and perspective
More Online Watch a video of Beth Hirschhorn’s interview. Visit Momentum Online.
6
around the Study and its relevance in today’s environment. ■
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momentum Good Intentions are Not Enough — To protect MetLife’s “Big, Strong and Trusted” image, it’s up to all of us to conduct business in an ethical manner. But sometimes, the ethical way to act isn’t always clear-cut. This is the second in a series of ethics awareness articles to guide associates in doing the right thing.
Conflicts of Interest: Which Direction Will You Take? Why even the perception of a conflict of interest matters
W
hen the topic of conflicts of interest is raised, you often hear these quotes:
contacts made through our company who have expressed an interest in the services she plans to provide. Why should Mary re-think her plan?
> “My business judgment would not be affected by my friendships.” > “I would never show favoritism toward a vendor based on gifts and entertainment.” > “What do my personal investments have to do with my job?”
The most obvious reason is that she is using information acquired at MetLife to further her own interests. Although she is not competing directly, she may be diverting possible business and affecting MetLife’s future growth. Mary must also realize that the contacts she has made through MetLife see her as a representative of MetLife, regardless of the fact
A conflict of interest occurs when outside influences affect
that her business will be separate.
our ability to make impartial business decisions in the best interest of our company. Just as important are situations
Remember that any second job or business has the potential
where others could perceive that your judgment was
to take so much time and energy that it may affect Mary’s
affected. What would you do in situations like these . . . ?
commitment to MetLife. For all of these reasons, Mary’s new business is a conflict.
Using your influence for personal gain Accepting gifts and courtesies Suppose you’re in a position to select a consultant for some important work. Your good friend Bob has experience in the
While attending a trade conference, a vendor who is bidding
field, and you know he would do a good job at a fair price.
on business with our company treats Tom, the MetLife
Does it matter if you select Bob?
manager responsible for awarding the business, to a lavish
A conflict of interest occurs
dinner and provides tickets to a show. Why shouldn’t Tom Vendor decisions should be solely on the qualifications of
accept this business courtesy?
those available. Even if Bob is well qualified and the best
when outside influences affect our ability to make impartial
choice, the fact that Bob is your friend could create the
Business meals are often exchanged in the normal course of
perception of a conflict. If it appears to other considered
business, but when a meal is “lavish,” a flag is raised. Most
vendors, your fellow associates, customers or our existing
people would equate that with trying to impress or influence
vendors that Bob was hired because of your personal
Tom, especially when the vendor is involved in a bidding
relationship, the integrity of our company’s decisions are
process. Remember that the appearance or impression others
compromised. Furthermore, once Bob begins work, are you
would have overrides the actual intention of the parties
sure you can manage the relationship with him without
involved. MetLife’s negotiations with the bidding vendors
letting your friendship influence your evaluation? Even if you
must be considered fair and impartial, and a situation like this
think you can do that, it might still appear to others that you
opens our company to negative opinions or even legal issues.
business decisions in the best interest of our company. Just as important are situations where others could perceive that your judgment was affected.
can’t separate Bob, your friend, from Bob, your consultant. That can lead to misunderstandings, disagreements or
Before accepting a business courtesy from a business partner,
even litigation.
consider the following:
Outside financial interests
> What is your position in MetLife? The situation changes if you are in a position to influence business with the giver of
How would this situation change if you had a financial interest in Bob’s consulting company? In this case, even if you
the courtesy. > What is the business partner’s relationship with MetLife at
More Online For a link to MetLife’s Employee
disclosed your financial relationship as well as your friendship
this time? Is the business partner a regular vendor as
Code of Business Conduct and Ethics,
with Bob, it not only appears that you are favoring a friend,
opposed to a vendor who is bidding on a competitive job?
see the electronic version of this
but Bob’s selection would also benefit you financially. A more neutral consulting company must be selected.
Second job or businesses
> How would your acceptance of this courtesy look to
story in Momentum Online.
someone else? Remember, appearances count!
Always ask yourself how the decision will be perceived before you take action. If you have any doubts, seek advice from
Your coworker Mary would like to set up a small business.
your manager, Corporate Ethics & Compliance or any of
Mary wants to offer services that MetLife doesn’t offer, so she
the resources listed in the Resource Section of the Code
won’t be competing directly. But her first clients will be
of Conduct before you make a decision. ■
Improve your ethical decision-making skills: visit MyLearning. MetLife offers online tutorials that can help you be more aware of ethical conflicts and assist in your decision-making process. Visit MyLearning (available from the home page of my.metlife.com), select “Search Catalog” from the “MyLearning” drop-down menu, enter “Ethical” in the “Title” menu and hit the “Search” button.
7
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May 2009
This Brand is Your Brand
Y
“So Where Do You Work?”
ou’re at a party and you’ve just met someone new. He/she asks you, “So, where do you work?” Here’s some fodder for holding up your end of the conversation:
✔ MetLife helps you create your own personal safety net
sm
with guarantees that help
protect you — and your family — for life.
✔ We’re a leading provider of insurance, employee benefits and other financial
Tips for holding up your end of the conversation
services to over 70 million customers around the world.
✔ We’re financially strong and have delivered on our promises for over 140 years. ✔ The best way to learn more is to visit metlife.com, call 1-800 METLIFE, or talk with your MetLife representative.
No one’s asking you to completely memorize the talking points above. But being familiar with what MetLife does and why those things are important to customers will go a long way in furthering our enterprise’s reputation. It will also make you look (quite deservedly) well-informed!
Knowing your company is one of the basics of being a brand ambassador. What else can you do?
> Visit the online brand exhibit by clicking on the Brand History Exhibit on the Brand Center home page (at brandcenter.metlife.com). > Take the Brand e-Learning Course ”Inside the MetLife Brand: Exploring the U.S. Consumer Brand,“ available through MyLearning (Reference CAO07502) on my.metlife.com. > Visit the new metlife.com (MetLife’s public Web site) and try out our some of our online tools, such as the MetLife Life Insurance Selector sm and Employee Benefits Simplifier.
Keep looking to this column for ways you can contribute to both the success of our company and your connection to it. ■
If You Don’t See MetLife as Green . . . Look Again! Introducing the Green Resource Center on my.metlife.com
I
n celebration of Earth Day on April 23rd, MetLife launched the Green Resource Center on my.metlife.com. The Green Resource Center is a
place where associates can learn about MetLife’s green initiatives, find answers to your green questions, read about green news and learn how to purchase green and be greener at work and at home.
Take a few minutes to visit the Green Resource Center by pointing your Internet browser to my.metlife.com/green or click on the “Green Resource Center” shortcut on the My MetLife home page. ■ Banners on my.metlife.com and TV screen promotions in some of our buildings (near right) are letting associates know about the Green Resource Center (far right).
A few facts and tips from the Green Resource Center
> Only 10 percent of energy used by
> To print greener, use both sides of
For more green facts and tips, including
an incandescent bulb produces light.
the paper by changing your print
how to work and live green both at
The rest is given off as heat. (Source:
settings to “duplex.” In addition,
MetLife and at home, visit the Green
Energy Information Administration)
decreasing your margin widths and
Resource Center today.
using smaller fonts can decrease the size of your documents.
Momentum is published by MetLife Internal Communications for associates enterprise-wide. Send questions, comments or ideas for stories to momentum@metlife.com. Vice President, Internal Communications: Susan Berger Editor: Greg Potter Law Department Liaison: Mark Schuman Contributors: Toby Axelrod, Kasana Banks, Marc Baroni, Rob Bjorge, Caroline Campanelli, Gina Gelman, Tracy Hisko, Barbara Immergluck, Genny Kellam, Julia Levy, Myra Mass, Janine Wright PEANUTS © United Feature Syndicate, Inc., www.snoopy.com © 2009 MetLife, Inc. Printed in USA (0509) Statements made in this publication may constitute forward-looking statements within the meaning of the federal securities laws, including statements relating to trends in the company’s operations and financial results, the markets for its products and the future development of its business. MetLife’s actual results may differ materially from the results anticipated in the forward-looking statements asa result of risks and uncertainties, including those described in MetLife, Inc.’s filings with the SEC. MetLife specifically disclaims anyobligation to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise.
8
April 2009
MetLife Signs Major Business Deal in Japan. See Page 2.
momentum Featured Inside MetLife Signs Deal with 2 Japan’s Largest Banking Group This Month in 2 Momentum Online
Strong.
Positioning Individual Business 3 for Growth Standing Alone, More 4 Than Ever What’s Next for the 5 Financial Markets?
BIG.
101 Jobs: Meet Wellness 6 Specialist Amy Marlow Diversity at MetLife 7 Good News About Schools 7 This Brand is Your Brand 8 Global Operations Support 8 Center Opens New Facility in India
Trusted. Spreading the Word(s). In today’s economy, the fact that MetLife remains “big, strong and trusted” is a key marketplace differentiator, and one of our greatest opportunities is in telling that story to as broad an audience as possible. This month, Momentum looks at how Individual Business recently “spread the word(s)” at its national wholesaler and management meetings (page 3). Plus, we introduce a new, recurring feature (page 4) that will provide you with highlights of our “big, strong and trusted” story, one “strong point” at a time.
Taking the Enterprise View
his month, I began my town hall
our businesses and our history. This is
digest “sound byte.” Drop me a line and
schedule for the year with a visit
just the purpose of publications like
let me know what you think. You will
to Alisa Viejo, California, home of our
Momentum and our other enterprise
also see enhanced coverage of our
dental DHMO business that we acquired
media, and throughout the year,
businesses in other enterprise media.
last year. Our new associates are
you will notice increased coverage
embracing the MetLife culture,
of our businesses and the financial
In today‘s times, it is incumbent upon
enthusiastic about our future and
underpinnings of what we do.
each of us to stay informed, and to be
T
as knowledgeable as possible about
eager to learn more about the MetLife
Rob Henrikson Chairman, President and CEO
Volume 11, Issue 3
business overall. In fact, this “enterprise
In this issue of Momentum, we are
view” was the perspective I used in our
launching a new feature to provide a
where you work, the answer is not a
Town Hall discussion.
quick snapshot of one of our businesses
specific department or line of business;
— in this case, Institutional. Entitled
it is MetLife. ■
To me, it is important that all associates,
“Big, Strong and Trusted,” this feature
regardless of their roles today, have a
will illustrate the theme we’re using to
good understanding of our company,
talk to our stakeholders in an easy-to-
our company. When someone asks
< Visit Momentum Online on my.metlife.com >
1
April 2009
MetLife Signs Deal with Largest Banking Group in Japan “This is a strong validation of our Japan strategy and a demonstration of MetLife’s broader reach in Japan.” — Leon Beale
ongratulations to the MetLife
deals in Japan, and is part of the
customers for the daily cost of their
Affiliate in Singapore and Japan’s
Affiliate business.
hospital stay).
(MDC), who recently signed a
Leon Beale, head of the Affiliate, led
“MDC expects to start calling MUN
“cooperation agreement” with
the negotiations and said the deal
customers beginning in June,” Leon said.
Mitsubishi UFJ NICOS (MUN) in Tokyo,
represented a noteworthy success for
“It is anticipated that the business will
Japan. MUN belongs to the country’s
the MDC team and for MetLife. “This is
start to deliver reinsurance premium
largest banking group and the world's
a strong validation of our Japan strategy
to MetLife in Australia in 2010 and
second-largest bank holding company,
and a demonstration of MetLife’s
continue to grow until 2012. We are
with $1.1 trillion in bank deposits.
broader reach in Japan,” Leon said. “It is
currently focusing all our energy at
It is also the largest credit card company
a substantial deal that will deliver great
managing a perfect kick-off.”
in Japan, with more than 25 million
value to both MUN and MetLife over
cardholders.
the coming years. Further, we see this
C
MetLife Direct Marketing Company
Leon added, “I would like to express my gratitude to all the team members who worked diligently and tirelessly, never giving up for over a year to bring this deal to fruition. They include John Potkonjak, Junichiro Matsuo, Shara Lo, Pessy Yu, the MDC team in Tokyo as well as Greg Salanthe and associates of the international law firm Morgan Lewis.”
At the signing ceremony (above, left to right): MetLife’s Leon Beale and Eugene Marks with Haremi Kamiyama and Yuji Iwagami of MUN. (Right) Eugene Marks stands in front of the “wall of credit cards,” representing the more than 25 million cardholders served by MUN as Leon Beale looks on.
The MetLife Affiliate team based in
as the start of our push into Japan and
The signing ceremony took place in
Singapore specializes in structuring
a success that we are keen to rapidly
Tokyo on December 17, 2008. “It was
business-to-business direct marketing
build on.”
fantastic that Eugene Marks, executive
region. The Affiliate has been largely
MetLife has a four-year agreement to
attend the signing ceremony, given his
focused on Citigroup in Asia. More
provide direct-marketed insurance
busy schedule. It was an indication of
recently, however, the team has been
products to MUN cardholders. These will
our commitment to MUN,” Leon said.
looking to acquire other large sponsor
be simple, direct-marketing products
“This is great news for all of MetLife in
clients. The MDC team is a direct
such as accidental death and “hospital
a challenging business environment
marketing team based in Tokyo that
cash cover” (a product that reimburses
and shows what a small group of
vice president and head of Asia, could
insurance deals for the Asia Pacific
determined people can do.” ■
concentrates on acquiring sponsor
This month on my.metlife.com This month, we’ve launched a new, enhanced version of Momentum Online. New format. Easier to read. Full of online “extras,” like these additional stories. Available from the home page of my.metlife.com. Check it out.
TelePresence: The Next Best Thing to Being There
The “High Touch” of Hyatt Legal Plans
TelePresence is today’s hottest video conferencing technology —
How do you provide highly personalized service to more than
and now, it’s being piloted at MetLife under the direction of the
five million customers? See the results of Hyatt Legal Plans’
Information Technology Group. Discover how this amazing new
customer satisfaction survey and learn how they live up to
system could revolutionize the way associates collaborate.
their Service Center’s motto: “Quality service always!”
The New HR Organization
In an Ailing Economy, the American Dream is Refined
On February 2, MetLife launched a new Human Resources
In this historic economic period, has the concept of “the
organization aimed at delivering faster, better and more
American dream” been tarnished — or even discarded
efficient service to the businesses and associates. Here’s a
altogether? Learn the answers as we report on the third
roadmap to the new HR, including a handy “quick reference
©UFS
annual MetLife Study of the American Dream.
guide” to HR services. A $1 Billion Breakthrough Making a Difference, Securing the Future
For the first time, Group Benefit Sales has reached $1 billion in
This past year, MetLife and MetLife Foundation contributed over
sales! Learn what it took to reach that new level of success, and
$43 million to nonprofit organizations and $188 million in loans
what goals the organization is focusing on now.
and equity investments to support community improvement. Find out why Rob Henrikson called those contributions “vital to all of us.”
MetLife Welcomes Back Wyeth Murals Four large murals painted by famed American artist and illustrator Newell Convers Wyeth now hang in the Sky Lobby at MetLife’s new 1095 Avenue of the Americas facility in New York City. Take a peek!
2
momentum
T
wo recent Individual Business events — the National Wholesalers Meeting and the National Management Meeting — emphasized the importance of taking action during this pivotal time. “Right now, it’s all about seizing the opportunities in
front of us,” said Lisa Weber, president, Individual Business and MetLife Auto & Home®. “These meetings were the perfect forums to communicate what sets MetLife apart and how each of us can make a difference through responsibility and leadership.”
The National Wholesalers Meeting
group that the upheaval in the financial world means that “we
Positioning Individual Business for Growth At two key meetings, senior leaders discuss MetLife’s strength and everyone’s role in our success
have to throw conventional wisdom out the window and think Individual Business wholesalers convened with MetLife senior
in terms of new economic realities.” Mike pointed out, ”While
leaders at the annual National Wholesalers Meeting in late
significant challenges exist, MetLife is poised to be the leader
January. There, they learned about MetLife’s 2009 strategies,
in the retirement space. Our financial strength and reputation
as well as upcoming product enhancements, the latest
for doing what’s right will take precedence over the shifting
marketing tools and sales best practices. Most importantly,
product landscape.” Mike added, “MetLife is the place to be.”
given the tumultuous economic conditions, the wholesalers heard specific information on why MetLife is “big, strong
“MetLife has a good story to tell,” said Gene Lunman, senior
and trusted.”
vice president, Life & Protection Solutions. “We stand by our guarantees, and we continue to pay competitive dividends to
The meeting brought together 226 annuity, life and long-term
our eligible policyholders.” Gene also noted the ongoing
care/disability income wholesalers from Retirement & Wealth
improvements taking place across his organization — changes
Strategies and Life & Protection Solutions. It represented the
designed to make it easier for financial professionals to do
first time that wholesalers for both affiliated and independent
business with MetLife.
“MetLife has a good story to tell. We stand by our guarantees, and we continue to pay competitive dividends to our eligible policyholders.” — Gene Lunman
channels met as a group following last fall’s reorganization of IB. With jam-packed agendas covering timely topics, the
“The biggest takeaway from the meeting for me was that we
meeting was designed to prepare wholesalers for the
make good on our promises because we are in a position of
challenges — and opportunities — in the year ahead.
strength,” said Jim Totten, regional sales vice president,
(Above, left to right) At the National Wholesalers Meeting, Gene Lunman speaks; a Q&A session with senior leaders; Mike Farrell talks about economic realities. (Second row, left to right) At the National Management Meeting, Mike Vietri announces changes; Lisa Weber and Bill Wheeler discuss today’s market and MetLife’s strengths.
The wholesalers serve as the “face” of IB’s products to financial
Retirement & Wealth Strategies. Jim, one of MetLife’s top
professionals, both inside and outside the company. So it’s
annuity wholesalers working in the independent space, also
essential that the wholesalers speak knowledgeably about the
learned from his colleagues who focus on the affiliated
strength behind those products. With this in mind, Lisa Weber,
channels. Said Jim, “We had a cross-pollination of ideas. It was
president, Individual Business and MetLife Auto & Home; Steve
great to brainstorm strategies with other wholesalers who
Kandarian, executive vice president and chief investment
have different points of view.”
officer; and Tim Schmidt, senior vice president and Individual Business CFO, each presented facts about MetLife’s financial
The National Management Meeting
“While significant challenges exist, MetLife is poised to be the leader in the retirement space.”
stability. They explained how the company’s investment strategies, risk management and business fundamentals have
At Individual Distribution’s (ID) 2009 National Management
differentiated MetLife from competitors. Because of MetLife’s
Meeting, the priority was clear: Our leadership team has a
solid financial position, the company has benefited from the
critical role in our growth.
— Mike Farrell
“flight to quality” and consumer “flight to safety” in recent months.
Mike Vietri, executive vice president, Individual Distribution, stressed that for MetLife to remain an industry leader,
Mike Farrell, executive vice president, Retirement & Wealth Strategies, addressed the annuity wholesalers. He told the
Continued on Page 4
3
April 2009 Continued from Page 3
Positioning Individual Business for Growth At two key meetings, senior leaders discuss MetLife’s strength and everyone’s role in our success
our local firm management must be aligned to capitalize on
vice president, Investor Relations, spoke to attendees about
market opportunities. He used the event to announce some
MetLife’s “big, strong and trusted” story — our strength and
far-reaching changes, centered around strong local leadership
stability — and highlighted the value of client relationships in
and infrastructure, that will position MetLife for long-term
trying times.
success and transform how ID operates. Approximately 150 managing directors and managing partners attended
“In this economy, it’s great to hear from our senior leaders,”
the meeting, and its overarching message was “The Power
said Duane Bartlett, managing partner of Cornerstone Financial
of Alignment.”
Group in St. Louis. “Their confidence made me feel really good about where we’re headed as a company and underscored
“‘The Power of Alignment’ is all about how successful a firm
how the role we play is integral to the company’s success.”
can be when local infrastructure works collaboratively and
“In this economy, it’s great to hear from our senior leaders. Their confidence made me feel really good about where we’re headed as a company and underscores how the role we play is critical to our success. ” — Duane Bartlett
with clear professional accountabilities,” says Mike. “It allows
To drive home the concept of “The Power of Alignment,”
us to better serve our agents and our clients and, ultimately,
managers participated in a Leadership Challenge, teaming up
take our business to the next level.”
to tackle a case study that tested leadership and local firm
Mike announced ID’s enhanced focus on face-to-face
sales and operational teams.
vision, and the alignment of training, marketing, recruiting,
distribution and the intrinsic value of our field sales force. This “transformational” change gives managers the ability to
Mike Amine of the Detroit New England Financial sales office
better impact the overall growth and profitability of their
noted, “Best practices learned from the challenge will help
firms and, as a result, of the overall channels as well.
us implement strategies that sustain long-term growth and profitability in our own firms.”
“Local firm leadership and driving performance through teams are the focus,” said Sandy Kapell, senior vice president, Practice
“The meeting truly reinforced the intrinsic value of our field
Development Group, whose team designed the meeting
sales force," observed Colleen Scheuneman, managing director
content. “The commitment to learning new skills that the
of West Suburban Financial Group outside Chicago. “It’s our
managers demonstrated at the meeting reinforces the
job as leaders to leverage infrastructure, resources and tools
confidence we all have in MetLife.”
to maximize the productivity of our firms and MetLife as a whole.” ■
Senior leadership, including Lisa Weber; Bill Wheeler, executive vice president and chief financial officer; and Conor Murphy,
Big, Strong and Trusted
A series of quick looks at why MetLife stands out in today’s market
Standing Alone, More than Ever
T
his slide is often used with analysts and investors to showcase Institutional Business’s winning franchise.
(Recently, it was used by the Chairman during his remarks at the Citigroup Financial Services Conference, and is based on the latest — 2007 — data available.) For several years, the chart has compared Institutional‘s revenue to that of major competitors. While we have been the clear leader since going public in 2000, we have extended our lead even further as time has gone by, rising head and shoulders above the rest. The chart also demonstrates Institutional’s diverse mix of businesses, a clear competitive advantage. We are not overly dependent on any one product, which gives Institutional the flexibility to adjust to market trends and opportunities.
This slide has become affectionately known at MetLife as the “We Stand Alone“ slide — and with good reason! ■
TODAS is Coming April 23rd! Take Our Daughters And Sons to Work® Day
Take Our Daughters And Sons To Work Day (TODAS) will take place on Thursday, April 23, 2009. The 2009 theme is “Building Partnerships to Educate and Empower.” This is the sixth year that MetLife is proud to sponsor this event in many locations across the company. The program is an opportunity to provide children ages 8 to 12 with an enriching and educational experience. Associates interested in learning more about the program, or finding out if their office is participating, should visit my.metlife.com/todas. ■ © UFS
4
momentum
W
hen will the economy
He is currently a managing director at
and political landscape. Her current
turn around? What can we
J.P. Morgan Asset Management —
book, The Forgotten Man: A New History
Global Real Assets.
of the Great Depression was published
anticipate in the credit markets? How
in 2007, and has been on the national
do we position MetLife’s investment portfolio to weather the storm
Next up was Chris Varvares, president of
while taking advantage of market
Macroeconomic Advisers. Mr. Varvares
opportunities that will add value in
provided an outlook on economic growth
the long-term?
and inflation over the next 12 to 18 months and his analysis of the Stimulus
bestseller list since last winter.
A look down the road
At its Secular Outlook Conference, Investments looks ahead
The second day opened with energetic
The Investments Department is
Plan. Mr. Lazio and Mr. Varvares then sat
talks by BlackRock’s Peter Fisher and
continually looking ahead to identify
down with Sal Greco for a lively Q&A
Goldman Sach’s David Marcinek on the
market trends, and these are just some
with the audience.
future of the financial services industry. These sessions were moderated by Scott
of the issues a group of 80 senior officers recently considered at Investments’
What’s Next for the Financial Markets?
Focusing on credit
O’Donnell, who said, “Given the daily tumult in the financial markets, it was
inaugural Secular Outlook Conference. Chief Investment Officer Steve Kandarian
After setting the stage in the morning
interesting to hear Peter and David
hosted the conference on March 4 and 5
with a macro view, the afternoon was
address long-term issues that the
at MetLife’s new conference facility at
dedicated to a discussion on the credit
industry is facing, including the effect
1095 Avenue of the Americas. Outside
markets. Three speakers focused on the
of government involvement in the
experts were invited to talk about their
current picture and future outlook in the
funding markets and impact of
views on economic, political and social
securitized products market (such as
regulatory reform.”
trends, as well as the current crisis in
residential mortgage backed securities),
the financial sector.
“Last year, we decided an annual Investments conference that involved
“The most important outcome of our conference is garnering new strategic insights that will benefit MetLife.”
diverse, outside voices would augment our regular analysis and discourse on the direction of the economy and asset sectors,” said Steve. “These discussions are being factored into the development
— Steve Kandarian
of our ‘house views’ and action plans to prepare for and capitalize on trends over the next three-to-five years.”
Sal Greco (left) and Steve Kandarian (right) flank conference guest speaker Amity Shlaes, author of The Forgotten Man: A New History of the Great Depression.
Senior Managing Director Brad Rhoads and Managing Director Richard Leist worked with Steve and the Investments Planning Board to formulate an agenda that reflected current issues. The
public and private corporate bonds, and
The Secular Outlook Conference closed
conference moderators — Directors Sal
commercial real estate. Phil Melville, who
with “The Insurance Industry Today and
Greco, Scott O’Donnell, Phil Melville,
moderated the credit sessions, said,
Tomorrow” presented by Doug French
Mike Mazzola and Managing Director
“These sessions provided a granular
of Ernst & Young’s Insurance and
Debbie Mandel — then worked with
view — what’s been priced into the
Actuarial Advisory Services, who covered
the guest speakers to develop topical
credit markets, a comparison of
broad insurance industry trends as
presentations that could potentially
returns across asset classes and sector
well as specific market opportunities
impact how we develop investment
recommendations.”
for MetLife.
Other highlights on the first day of the
“We’ve gotten terrific feedback from
strategy and allocate assets.
Moderated Q&A after each speaker
conference were Jack Robinson's
participants on the speakers, topics and
and live polling helped increase the
“Sustainability: Risks and Rewards”
the new conference facility,” said Richard
audience’s input and insights into each
and author Amity Shlaes’s talk on “The
Leist. Investments was the first large
of the topics. In addition to Investments
Great Depression and Now.”
group to use MetLife’s new conference space, which not only got high marks
officers, participants included officers from the lines of business and
Mr. Robinson, president of Winslow
Investments’ business partners in
Management, is widely recognized as a
Investments IT, Legal and Finance.
leader in the “green” investing field. “In addition to providing a good overview
conference is garnering new, strategic
All “Streets” considered
of sustainable energy solutions and
insights that will benefit MetLife,”
opportunities for us, Jack talked about
concluded Steve. “Considering the size
The conference kicked off with Rick
how the green movement and federal
and breadth of our investments, our
Lazio’s presentation “Main Street, Wall
regulations could impact the various
long-term view, and our in-house
Street and Pennsylvania Avenue,” a look
industries in which we invest,” said
underwriting, there is tremendous value
at government’s influence on business,
session moderator Mike Mazzola.
in taking time away from the office
but also helped hold costs down.
“The most important outcome of our
to look at our market challenges —
the decision makers who will shape things going forward and major issues
Luncheon speaker Ms. Shlaes shared her
and opportunities — from different
and priorities. Elected to Congress in
perspective on why the Great Depression
perspectives.” ■
1992, Mr. Lazio served four terms
lasted so long, drawing parallels to
representing New York’s 2nd District.
today’s current economic environment
5
April 2009
101 Jobs That Make MetLife Go Your Prescription for Good Health Meet Wellness Specialist Amy Marlow
Welcome to “101 Jobs That Make MetLife Go.” Every job at MetLife is critical to our success — and we thought you’d like to know more about them. Here’s a look through the eyes of another MetLife associate whose contributions keep our enterprise moving.
Wellness on the Web(MD)
n today’s uncertain economic climate,
I
(see case study below). Past programs
many of us are dealing with heightened
have focused on nutrition, diabetes,
stress and anxiety as part of our daily lives.
asthma and smoking cessation. A stress
We may sleep less, eat more or experience
management initiative is planned to
strong presence on the World Wide Web
other stress-related symptoms that impact
launch this summer. What these
through a close relationship with
our well-being at work and at home.
programs have in common is that
WebMD, a nationally renowned source
they are all delivered as part of a
of online health information. “We
The Wellness Services team also has a
comprehensive
develop customized content just for
campaign
MetLife associates and their families that
designed to
is part of the WebMD site,” says Amy.
educate, inform
Associates can access the site 24-hours a
and inspire
day through the Associate Information
associates to make
Center (AIC). Amy’s colleague Brittany
positive changes.
Ekleberry works closely with the vendor to keep the information up-to-date
The Wellness Services team: Amy Marlow (seated) and Brittany Ekleberry.
“Communications is
and to ensure that it supports any
a key part of my
internal health promotions taking place
At times like this, it’s
job,” says Amy. “I write articles for
good to know we have
our internal publications, develop
Amy Marlow, wellness
educational presentations and design
To stay abreast of new developments,
specialist, looking out
resource materials for associates. To be
including health legislation, research
for us. Part of the
effective, it’s important that I’m up-to-
and company best practices, the
two-person Wellness
date on the latest scientific research,
Wellness Services team actively
Services team within
but also that I am able to translate
participates in industry groups and
Global Benefits, Amy’s role is devoted
that information into meaningful and
benchmarks with other leading
to encouraging good health among
actionable tools for associates.”
companies. “We’re always looking for
associates by providing information and
within MetLife.
new ideas to strengthen our current
tools that make it easier for us to adopt
It helps that the wellness specialists
programs,” says Amy. “What stands out
healthier lifestyles.
have Masters degrees in Public Health
is that MetLife is ahead of the curve.
and are trained in health promotion,
We have a long-standing tradition of
“My job is to understand the health
including assessing needs, creating
focusing on associate health. Many
issues associates are facing, and then
interventions and measuring results.
other companies are just recently
to develop programs to address them,”
“There is a lot of information out there,
discovering the value of employee
says Amy. Partnering closely with her
so the challenge is to identify what is
health promotion.
Manager Web site, featuring
benefits colleagues, she analyzes
relevant to our associates and to deliver
health information, tools
aggregate information about the nature
it in a way that is useful and likely to
“That value,” adds Amy, “includes
and links to resources
of associate health claims as well as
result in healthier behaviors.”
lower health care costs, fewer absences
Working on Wellness® (WOW) is the name of an array of wellness programs that include:
> WebMD’s Personal Health
> WOW Dividend financial
associate self-reported health assessments.
and associates who are generally
“Privacy is always a top priority,” adds
In fact, the Wellness Services team relies
more engaged at work and in their
Amy. “We look at data on an aggregate
on a strong network of more than 50
personal lives.
> Free & Clear® Quit for LifeTM
level only, never by individual associate.
volunteers across MetLife to deliver
smoking cessation program
That way, we can get a snapshot of the
those programs at the local level. Amy’s
“The most rewarding aspect of my job
health of our population, identify trends
role includes overseeing the volunteer
is when I hear directly from associates,”
and tailor offerings to our specific needs.”
network by providing training and,
says Amy. “It is so personally satisfying
in some cases, helping with the creation
when an associate tells me that the
of local programs. “We could not
information we shared helped them
accomplish what we do without
to take steps that are improving
the volunteers,” says Amy. “They
their own health or the health of
What types of programs does the
disseminate information and launch
their families.” ■
Information about these and other
Wellness team offer? “The Skinny on
‘plug and play’ programs and activities,
WOW programs can be found on
Weight Loss” was a recent campaign
such as walking groups, yoga and
the AIC >> Benefits >> Wellness >>
focused on helping associates learn how
fitness classes, and health information
Wellness Program.
small lifestyle changes can lead to big
fairs. They stay connected to us through
improvements in managing weight
monthly email updates and quarterly
incentive program to encourage healthy behaviors
> GlobalFit discounted fitness club memberships > ConditionCare Connection® for managing chronic health conditions
Programs designed to “tip the scale”
> Flu Shots at major locations
conference calls.”
The Skinny on Weight Loss: A Case Study
Do wellness programs make a difference? Absolutely!
> 28% improved their diets;
“The Skinny on Weight Loss” campaign, launched in
> 26% increased their exercise
December 2008, featured a series of online weight management tips, and an audio visual presentation by a
6
levels; and > 10% spoke with their
panel of experts on nutrition and exercise. A random survey
doctors about their own or a
of associates showed some real changes among respondents:
family member’s weight issues.
momentum
F
or the fourth year in a row, The National Association of
On March 18, MetLife leaders participated in the NAFE awards
Female Executives (NAFE) placed MetLife among its Top
luncheon. Sandy Kapell, senior vice president, Individual Business, accepted the award on behalf of MetLife. Sandy
Companies for Executive Women.
also took part in the Executive Roundtable for senior women NAFE has evaluated scores of companies on virtually every
executives prior to the awards luncheon.
aspect of women’s advancement, including succession planning, profit-and-loss roles, gender pay parity, support
“Our recognition from NAFE adds to an already strong list
programs, work-life balance programs and more. Their
of honors for our company, including Working Mother
exhaustive examination of policies, programs and workforce
magazine’s Best 100 Companies and PINK magazine’s
profiles yields one of the most definitive lists of top
Top Companies for Women,” says Sandy. “MetLife is more
workplaces for women.
committed than ever to leading the way when it comes to
Diversity at MetLife MetLife Named a Top Company for Executive Women
diversity and women’s advancement in the workforce, MetLife was recognized for championing women’s
workplace and marketplace.”
advancement, and for its dedication to the development and advancement of women in the workplace, including
NAFE’s mission is to encourage women’s advancement by
support programs, work-life balance programs, the number
honoring companies that demonstrate strong numbers of
of women on our Board of Directors and how well
women in top positions and in the pipeline. It is the largest
represented women are among our top earners.
women’s professional and business owners’ association in the country. You can read on about NAFE’s Top Companies by visiting www.nafe.com. ■
ublic school teachers today feel
“These days, students are challenged
Other big challenges remain and are
better prepared and are more
as never before to succeed in school,”
increasing, including the range of
satisfied in their careers than teachers in
said MetLife Chairman and CEO Rob
student abilities in the classroom, lack of
the past, according to the new MetLife
Henrikson. “These past 25 years, the
facility with the English language and
Survey of the American Teacher: Past,
MetLife Survey of the American Teacher
the effects of poverty. In addition, urban
Present and Future. The 25th anniversary
has helped share the voices of those
schools continue to see less progress
edition of the annual series, sponsored
closest to the classroom, stimulating
than their suburban and rural counter-
by MetLife and conducted by Harris
discussions in homes, schools and
parts in most areas, including teacher
Interactive, looks back to the earliest
communities across the nation.”
satisfaction, student preparation,
P
Good News About Schools! MetLife Survey of the American Teacher respondents give conditions an improving grade
dropout rates and parent involvement.
surveys and offers comparisons over Over the last 25 years, education
Looking to future, Survey responses also
reform has moved from a focus on the
raise concerns about how well schools
teacher alone to emphasize broader
are educating their students about
responsibility for student achievement
international issues, other nations and
shared among teachers, principals,
other cultures, and how well educators
parents, communities and students
are using new technology.
themselves. Significantly, the current
Some Survey key findings > Students are more ambitious. Students reporting that they are
survey finds that parent and community
“Strengthening education is vital to
support for schools has increased.
the future,” said Dennis White, vice
Although teachers and principals both
president, Corporate Contributions.
“very likely” to attend college increased from 58% to 73% between 1988 and 2008. > Parent relationships have improved. More teachers today (67%) than
time that give insight into progress in
in 1984 (54%) rate parental and
improving schools. The Survey includes
community support for their school
the views of teachers, principals and
as good or excellent.
students on issues that include academic
> Urban schools are more challenged.
standards and curriculum, student
Urban teachers are less likely
success, professional communication,
than their rural and suburban
school conditions, and parent and
counterparts to rate academic
community relations.
standards in their school as excellent (45% vs. 52% vs. 60%).
Beyond overall career satisfaction,
> Some longstanding challenges have
teacher opinions show improvement
increased. Half (49%) of teachers say
in the related areas of pay, recognition
that poverty hinders learning for at
for performance, public respect and
least a quarter of their students,
willingness to recommend teaching as
compared to 41% in 1992. In urban
a career. A major reason most teachers
schools, 39% of teachers report that
teach is that they enjoy working with young people — and, ultimately, the
poverty is a hindrance for most or From the MetLife Survey.
all of their students.
measure of their success is their students. The Survey’s findings about report an increase in parent involvement
“The Survey findings offer
teacher perceptions that their students
in recent years, 50 percent of teachers
encouragement about progress
are better prepared. Based on student
continue to see inadequate parental
made and identify areas for positive
responses, they are more ambitious,
support as the most significant barrier
action and change.” ■
trusting of teachers and satisfied with
to student learning.
students are also encouraging, including
the individual attention they receive.
More Online Link to the complete Survey findings. Visit Momentum Online.
Photos: Kristine Larsen. Findings from the Survey inform MetLife Foundation grants for education.
7
April 2009
This Brand is Your Brand Look for exciting brand events and initiatives this year
A
s part of the ongoing effort to
Helps set the stage for MetLife’s future
Continuing to bring the MetLife
the New York City skyline. In addition,
brand to life, the online Brand
effective Brand Ambassadors, MetLife
coinciding with our 141st anniversary
Exhibit, launched last year on
has a number of exciting events and
on March 24, we added MetLife-sized
brandcenter.metlife.com, will soon
initiatives underway.
personality to workspaces throughout
have a brick-and-mortar counterpart.
the 1095 location. Inside, floor-to-
Come May, you’ll find the physical
First, we’d like to tell you what’s
ceiling photographs of MetLife icons
brand exhibit on the 23rd floor at
happening at our newest Manhattan
celebrate our history in New York City.
1095 Avenue of the Americas.
location at 1095 Avenue of the
Plus, photographs of the MetLife blimp
Americas. Just weeks ago, we installed
document our presence across the U.S.,
Look for more information regarding
the new MetLife sign atop the building
and our global presence is represented
our brand exhibit and other activities
— 742 feet in the air — making the
by transparent murals of Snoopy
in future issues of Momentum. And
around the world.
remember: this brand is your brand. ■
help associates become more
Sky-high branding: The sign on our new Manhattan location
Global Operations Support Center Opens New Facility in India
MetLife name even more prominent in
I
®
To see a video of the 1095 sign being installed, visit videogallery.metlife.com.
n February, the Global Operations Support Center (GOSC)
The inauguration of the new site was held amid two days of
reached a critical milestone — the opening of its new home
business sessions. Visiting executives had the opportunity to see
in Noida, India. Commemorated with members of MetLife’s
and experience the GOSC operations up close, meet with its
Executive Group and other senior leaders, the cutting of
leaders and tour the facility. They also hosted town hall
the ceremonial ribbon marked MetLife’s achievement of
meetings and interacted with associates. “Being here and
end-to-end management of GOSC operations and process
experiencing the GOSC first-hand instills great confidence and
migrations without vendor support.
pride in what we have accomplished,” remarked Tom Purcaro.
1
(1) GOSC leadership and visiting executives at the new facility. (2) (Left to right) Bill Mullaney, Paul Malchow and Maria Morris take part in a tree-planting ceremony, symbolizing new beginnings and future growth. (3) First impression: the reception area in our new GOSC site.
2
3
Joining GOSC leadership and associates onsite for the event
Bill Mullaney offered his perspective, “I’ve been to most of
were Bill Mullaney, president, Institutional Business; Maria
MetLife’s offices, and the GOSC has the same MetLife look and
Morris, executive vice president, Technology & Operations;
‘can do’ attitude,” he began. “Our partnership with the GOSC
Peggy Fechtmann, executive vice president, Global Capability
has afforded Institutional Business benefits of improved quality,
Sourcing; Tom Purcaro, senior vice president, Institutional
enhanced efficiency and increased cost savings. And, by having
Business Benefit Services Organization; Paul Malchow, senior
some of our functions processed at the GOSC, it gives us the
vice president & CIO, Institutional IT; and Rajesh Relan,
capacity to focus more of our energies on growing our business.”
managing director, MetLife in India. Throughout the visit, GOSC and visiting leaders acknowledged In addition to the new facility, there was a “debut” of another sort during the visit: that of the newly published GOSC Capabilities Brochure. “This brochure was designed to give businesses, both current clients of the GOSC as well those considering it in the future, the information they need to understand the expertise available at the Center,” explains Peggy Fechtmann. “This piece provides an overview of the GOSC, the types of functions it supports and the value it adds to MetLife.”
and applauded the accomplishments of the GOSC team and the work of many associates across MetLife who made it all possible. “Today, we celebrate the opening of the new GOSC and recognize its proven capabilities,” stated Maria Morris. “We currently have over 1,100 associates performing work on over 60 processes for MetLife’s businesses. We can now build on our success by generating process improvements and quality enhancements for our businesses that will support MetLife’s growth — both today and in the future.”
“Having MetLife’s business leaders spend time alongside our
More Online
associates and immersed in the GOSC’s day-to-day operation
As part of MetLife’s growing global network of service delivery
endorses the value the GOSC brings to the enterprise,” says
centers, the GOSC is integral to our Global Capability Sourcing
Kush Kamra, vice president and managing director, GOSC.
strategy and is enabling the enterprise’s continued growth,
additional photos.
“Building awareness of the GOSC and its capabilities will
increasing efficiencies and enhancing service. “The capabilities
Visit Momentum Online.
help prepare businesses across the enterprise to leverage its
and capacity are here,” emphasized Peggy Fechtmann. “The
expertise in the future.”
goal now is to fully leverage its power.” ■
View complete brochure and
Momentum is published by MetLife Internal Communications for associates enterprise-wide. Send questions, comments or ideas for stories to momentum@metlife.com. Vice President, Internal Communications: Susan Berger Editor: Greg Potter Law Department Liaison: Mark Schuman Contributors: Toby Axelrod, Ross Calvert, Caroline Campanelli, Michelle Esso, Beth Freedman, Gina Gelman, Tracy Hisko, Eileen Holden, Genny Kellam, Natalie Kitchen, Katie Leweling, Julia Levy, Myra Mass, Jessica Rute, Holly Sheffer Liapas PEANUTS © United Feature Syndicate, Inc., www.snoopy.com © 2009 MetLife, Inc. Printed in USA (0409) Statements made in this publication may constitute forward-looking statements within the meaning of the federal securities laws, including statements relating to trends in the company’s operations and financial results, the markets for its products and the future development of its business. MetLife’s actual results may differ materially from the results anticipated in the forward-looking statements as a result of risks and uncertainties, including those described in MetLife, Inc.’s filings with the SEC. MetLife specifically disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise.
8
February/March 2009
2008: Capturing the Year in Numbers. See page 7.
momentum Featured Inside Steal This Car! 2 MetLife Europe Grows Its Own 2 Contingent Staffing 4 to the Rescue Groundbreaking Pension 5 Risk Attitude Study Keeping Our Promises 6 The New MetLife.com 6 Capturing the Year in Numbers 7 Protecting Privacy in a 8 Borderless World
. . . more profitable! What kind of Operational Excellence ideas do we need from associates to extend our lead in the marketplace? Here’s how associates at a recent MetLife workshop took on Operational Excellence challenges and ran with them.
Skating With Snoopy 9 Retirement Liquidity Study 9 e-Relationship 10 Rallying the Troops 10 Diversity at MetLife 11 5,000 Take the 11 Chairman’s Challengesm
See Page 3 >
Ethics Awareness Month 12 Everyone Could Benefit 12 from $100
EDITOR’S NOTE: Momentum will publish combined (two-month) editions occasionally during 2009. This is the combined February/March edition.
Telling Our Story
ast month, I had occasion to speak
we are strong; and we are trusted.” We
run. This is one of the reasons why in
at the 2009 Financial Services
talked about this at Investor Day and
2008 we saw tremendous growth in our
Conference sponsored by Citi Investor
you will hear me and other senior
top-line performance (see page 7 for a
Research. In today's difficult economic
MetLife leaders return to this theme
snapshot of 2008 results). It is also why,
environment, it is more important than
throughout the year as we tell the
throughout our businesses, we continue
ever to share our story with the multiple
MetLife story. Particularly in times like
to gain customers and, in many cases,
and important stakeholders who impact
these, it is important to remind people
outpace the market.
our business. Over the course of the
that MetLife is successful not because
past few months, we have had some
we are big, but that MetLife is big
Though many forecasters say that the
challenges to talk about, but we have
because we are successful. This is an
difficult economic climate will continue
been and will continue to be honest and
important distinction and a great
for some time, I am confident that
forthcoming in our communications —
place to be.
MetLife is well positioned. Our capital
L
strength, strong ratings and focus on
to you, our employees, as well as to MetLife also is continuing to benefit
the long-term not only set us apart, but,
from a flight to quality. Customers want
together with our diversified businesses
The focus of my remarks at the
to do business with a company they can
and investment portfolio, make us truly
conference was that “MetLife is big;
trust to be there for them in the long
unique in the marketplace. ■
customers and shareholders. Rob Henrikson Chairman, President and CEO
Volume 11, Issue 2
< Be sure to visit Momentum online at my.metlife.com >
1
February/March 2009
Steal This Car! MetLife Auto & Home helps Chicago Police catch thieves in the act
C
ar thieves in Chicago are finding that if they do the
Larry explains. “A thief who attempts to steal the bait car
crime, they’ll have to do the time.
soon realizes the only way out is into the waiting arms of the police.”
Since 2007, MetLife Auto & Home® has collaborated with the Chicago Police Department and the Cook County State’s
In order not to tip off the potential thieves, the bait car’s
Attorney’s Office to combat auto theft through the
identity is closely guarded. When the program was featured
deployment of a “bait car.” Their efforts are paying off not only with
on local TV news in the Windy City, the vehicle was completely hidden under a wrapper.
a reduction of thefts, but also with an increase in convictions
Other law enforcement agencies admire the results Chicago
of perpetrators.
has achieved with MetLife Auto & Home’s support, Larry notes. “As the project has moved forward, auto thefts have
The bait car was donated to the city by
declined in the troubled districts of the city, and there has
MetLife Auto & Home’s Claim Department, in close
been a corresponding dramatic increase in the number
cooperation with the Law Department and the
of arrests.”
Special Investigation Unit (SIU). The vehicle is secretly equipped with video cameras, a global positioning system for tracking, and devices to remotely disable the
According to the Cook County State’s Attorney’s Office, nearly 150 arrests were made through the first 18 months of the program. Of those, 74 were categorized as adult felony
engine and lock the doors.
arrests, and a one hundred-percent conviction rate has been Larry Cholewin, SIU regional manager in the Chicago area, is
achieved on the 50 such cases prosecuted so far. Two
MetLife Auto & Home’s liaison to the police department.
convictions have resulted in sentences of six years each, Larry reports. In addition, 18 repeat offenders have been sentenced
“The Chicago PD’s Covert Auto Theft Team (C.A.T.T.), which
to serve a total of 81 years in the Illinois House of Corrections.
consists of 10 officers and one sergeant, places the bait car on the street in areas of the city where auto theft is prevalent,”
“As an insurer, we at MetLife Auto & Home deal with the victims of auto theft every day,” Larry states. “People feel violated when their car is stolen. It is our belief that
On the streets of Chicago: Cook County Assistant States Attorney Sandy Navarro, Cook County Assistant States Attorney Kevin Byrne, Larry Cholewin of MetLife’s SIU and Cook County Assistant States Attorney Al Vroustouris
Growing Our Own MetLife Europe introduces an innovative graduate sales program
initiatives such as this will benefit everyone and improve the quality of life in Chicago. The results have been astounding and we are proud to assist in this effort.” ■
inding high-quality, committed and
F
roles, which are based in prestigious
many of their colleagues as possible.”
capable sales people is a challenge
Canary Wharf in London. Both types
Following the initial training, the
wherever you are in the world. In the
of positions provide development
graduates spent a week with either
United Kingdom, MetLife Europe
opportunities for the graduates
meta-morphose or Pareto Law working
decided to try to “grow their own” by
over time.
on basic selling skills. Then, they
program. “As part of our sales expansion
“Most of the graduates had some work
visits to gain an understanding of how
plans, we took a risk bringing fresh
experience,” says Fiona Gummerson,
to put all of the knowledge they had
graduates into sales roles,” explained
sales operations and development
learned into practice in the real world.
Mike Phillips, head of Distribution. “It’s
manager. “As we quickly discovered,
not something that is considered very
that gave them a key advantage. But
The 10 associates who graduated in
often. However, taking calculated risks is
only one or two had any financial
June have already been instrumental to
a key sales competence.”
services experience or knowledge.
the organization. Their sales figures are
We designed an intensive four-week
demonstrating that this is a viable way
Working with graduate recruitment
training program, introducing the
to broaden MetLife’s recruitment
specialists meta-morphose and Pareto
graduates to the U.K. financial
efforts in order to attract quality sales
Law, Mike and his team brought a total
services marketplace, MetLife and the
personnel. The 19 October graduates,
shadowed colleagues on live calls and
introducing a graduate recruitment sales
“We took a risk bringing fresh graduates into sales roles. . . . However, taking calculated risks is a key sales competence. ” — Mike Phillips
after passing their assessments, have begun making solo sales visits and calls. They are still closely supervised, supported and coached during these early months, and there is an ongoing two-year development program to ensure they all have the training to be promoted to sales development managers.
“I’m delighted with the progress the graduates are making,” says Mike. “Combined with our existing team of Ready for a MetLife future: Graduates of MetLife Europe’s new sales recruitment program
2
of 30 graduates into sales roles during
products and services we offer in
wholesalers, we now have a great blend
June and October of last year. The
the U.K. Many people across the
of youth and experience. This group
graduates’ positions consist of regionally
organization representing several
of individuals is playing a valuable
based sales roles, which entail working
areas of expertise were involved in
in transitioning MetLife in the U.K.
face-to-face with independent financial
delivering the program. It also gave
from a start-up to a full-fledged,
advisers, and internal telephone sales
the graduates the chance to meet as
successful business.” ■
momentum Throughout the enterprise, Operational Excellence is off and running. In December and January, Momentum highlighted two examples of “grassroots” Operational Excellence initiatives that were created and implemented by MetLife associates. This month, we focus on how the Operational Excellence mindset is being exercised at a different level: in the training and development of our company’s leaders.
Faster, Better, More Profitable A recent workshop challenged leaders to adopt an Operational Excellence mindset and run with it
ver felt “out of your comfort zone”?
That was the challenge faced by
Development, says, “In total, there
Picture this: You’re sent to a MetLife
participants of MetLife’s recent Business
were five teams that developed
workshop filled with people you’ve
Acumen workshop — an intense,
proposals around either Operational
never met before. The instructor teams
three-month development experience
Excellence or our Strategic Initiatives,
you up with several of these “strangers,”
designed for MetLife leaders. During the
and they all did an impressive job.”
tells your team about a MetLife business
workshop, a primary goal was to stretch
E
process that’s totally outside your area
attendees’ abilities to think and act in
While we don’t have the room in
of expertise, and gives you just 90 days
ways that align with the objectives of
Momentum to cover all five proposals,
to develop breakthrough ideas to
Operational Excellence.
each so clearly illustrates the meaning of “faster, better, more profitable” that
make that process faster, better and more profitable.
Joie Townsend, vice president,
we wanted to share at least a sample
Leadership & Management
with our readers.
Will we see these The Integrated Print Proposal
The Personal History Interview Proposal
Project team: James Castillo, Bruce Cook, Julienne Godwin,
Project team: Michael Eng, Barbara Francis-Fulop, George
Jeffrey Hollander, Joann Kraemer, Jeff Rossetti
Lesch, Tony Llopis, Bruce Schindler, Sharon Seabaugh
Project sponsors: Roy Anderson, Heidi Ruzzo
Project sponsors: Kieran Mullins, Mike Harwood,
ideas in action? The results of all five Business Acumen exercises impressed the
Jill Garofalo, Maureen Leydon senior business leaders who
To MetLife customers, an insurance statement is more than just a piece of paper they receive in the mail; it’s an
When Individual Business’s customers apply for insurance,
expression of who MetLife is and how we treat our customers.
personal history interviews (PHIs) provide critical information
In analyzing our statements, Joann Kraemer of MetLife
we need to properly assess our risks and price our premiums.
Auto & Home® said her Business Acumen team conducted
Yet, when a Business Acumen team was assigned to evaluate
extensive interviews, brainstorming sessions and even got
PHIs, they discovered a process that was lengthy, relatively
the customer perspective.
expensive, dependent on outdated technology and a source
sponsored each exercise. Currently, all the ideas are undergoing review for possible implementation.
of irritation for both customers and producers. “What we found,” said Joann, “is that we do a phenomenal job with our up-front branding through our marketing
“We interviewed 35 people in connection with the process,
materials but not in our post-sales communications. At a
analyzed historical materials and even set up a PHI
glance, some customers can’t see that certain statements are
information library,” says team member Michael Eng of
coming from MetLife . . . and they don’t understand some of
Legal Affairs. “We found that MetLife was getting complaints.
the jargon we use. Ultimately, that costs money because we’re
Many PHI questions were the same ones that customers had
fielding phone calls and questions — and it frustrates
already been asked by their sales representatives. Some
customers, threatening our relationships.”
questions didn’t even apply to the customer’s specific situation. Plus, our process was longer and more costly on
As a result, the team developed a series of recommendations
average than that of our competitors. To top it off, the
that included a standardized MetLife format across lines of
process did not lead to any real improved underwriting
business for all statements, the use of “plain language” in
decision making.”
statement text and the creation of “messaging space” on statements that would educate and inform customers about
The team’s solution: to re-engineer the “one size fits all”
our products and services. They also proposed a Shared
nature of MetLife PHIs and develop a streamlined process
Services Group that would ensure consistency in the look
that is customized to individual customer situations. They
and feel of MetLife statements across lines of business to
proposed conducting PHIs only “for cause” — in other words,
improve branding.
only when certain ”red-flag“ risks were involved. They
“We felt free to look at things critically and brought no preconceptions to our analysis. . . . That’s what taking an Operational Excellence view is all about.” — Michael Eng
recommended developing specialized scripts for each of these The team also saw huge cost savings in Web-based delivery of
risks, resulting in a PHI that would provide more specific
statements. While common practice is to provide paper
information for better underwriting decisions. They also
statements and offer opting in to electronic delivery, Joann
outlined new technology solutions that would deliver higher-
says the team proposed a paradigm shift: electronic delivery
quality statistical analyses of our experiences in using each PHI
up-front, with an “opt in” for paper. They also proposed a
script, enabling script improvements on a continuous basis.
“client dashboard” — a single Web page through which customers can access all their MetLife statements and
“The key was that we were invited to do more than ‘kick the
accounts. “That’s the way people are managing their lives,”
tires’ of this process — we were invited to ‘look under the
says Joann. “We need to align with that. In the eyes of
hood,’” said Michael. “Our project sponsors told us nothing
customers, serving them from the perspective of how they’re
was off the table, so we felt free to look at things critically
living today is Operational Excellence.”
and brought no preconceptions to our analysis and eventual recommendations. That’s what taking an Operational Excellence view is all about.” Continued on Page 4 >
3
February/March 2009 Continued from Page 3
The Client-Specific Customization Proposal
Faster, Better, More Profitable
conducted interviews with 52 Institutional Business Project team: Elisabeth Bedore, Kristen Denice, Ray DiGiovanni, Joan Falcetta, Cynthia Ko-Baek, Ken Sardusky Project sponsors: Todd Katz, Michael Fradkin, Scott Boutin
A recent workshop challenged leaders to adopt an Operational Excellence mindset and run with it
To improve the process, Joan and her fellow team members
experts. Then, they developed a three-part proposal for (1) standardizing the customization process, (2) defining accountability for specific decision-making and (3) creating process oversight. “We created a ‘lifecycle wheel’ for the
Just as there are two sides to every coin, there are sometimes disadvantages inherent in advantages. Because of its size, MetLife’s Institutional Business can do things other companies can’t, such as offer extensive customization of our employee
process,” says Joan. “It not only standardizes how we evaluate and execute customization requests, but also assesses our results so that we can better apply the experience to future requests.”
benefit programs to meet our large Institutional customers’ specific needs. But our size also means that it is difficult at times to offer customization in the most efficient way.
The team also recommended a centralized body to oversee the process, making all that experience and knowledge easier to access. Finally, they defined decision-making authority each
“While customization is definitely one of our competitive advantages, there’s a cost to it,” says the Information
step of the way so that requests can be executed relatively quickly and with higher customer satisfaction rates.
Technology Group’s Joan Falcetta, part of the team analyzing Institutional’s customization process. “If you’re an Institutional account executive, wouldn’t it be great to solve for a customization request by leveraging MetLife’s broad experience, knowledge and resources? Unfortunately, our size sometimes makes it hard for one account executive to know
“For us,” says Joan, “it meant realizing that Operational Excellence is a matter of bringing together and empowering the tremendous resources MetLife already has in ways that will make us faster and better so that we can also be more profitable.” ■
what’s been done for other clients. It also makes deciding which customization requests to accept, how to price for them and how to implement them a complex process.”
Do you have a “faster, better, more profitable” idea? Talk to your manager or send a message by visiting my.metlife.com >> Strategic Initiatives Site and clicking on the icon for the Operational Excellence mailbox.
Contingent Staffing to the Rescue New workload solution helps keep service levels up, expenses down
“Contingent Staffing” is a new workload solution for the Benefit Services Organization (BSO). BSO supports almost 3,500 Institutional Business customers who represent $3.5 billion in revenue. The BSO works to provide outstanding service to primarily Mid/Large Market and National Accounts customers, as well as providing support to Small Market customers.
any business operations
“We are a large and diverse
“It is important to note that the
experience natural peaks and
organization of highly skilled
associates on our first Contingent
valleys in their workload. Recently, the
associates,” says Tom Purcaro, BSO
Staffing team are not the only
Benefit Services Organization (BSO) in
senior vice president. “The Contingent
contributors,” adds Tom. “Their
Institutional Business developed a new,
Staffing solution provides a great
respective teams, managers and
collaborative solution for handling the
opportunity to leverage our vast
colleagues throughout the BSO
ups and downs of its work volume. That
knowledge, manage critical peak
supported the effectiveness of this
solution, which is already improving effi-
periods and offer our associates
solution by maintaining the day-to-day
ciency and controlling costs, is
challenging growth experiences.”
workflow in their areas. This is a
M “The Contingent Staffing solution provided a great opportunity to leverage our vast knowledge, manage critical peak periods and offer our associates challenging growth opportunities. ” — Tom Purcaro
collaborative effort that only succeeds
Contingent Staffing. Due to the high volume of work that
through a solid commitment
BSO is responsible for supporting
the BSO’s Mid/Large Market Case
from everyone.”
Institutional’s group customers. These
Implementation area traditionally
customers rely on the BSO to provide
experiences around the first of every
Results indicate that the solution is
them with a seamless, positive service
year, that area was chosen as the pilot
working. During fourth quarter
experience — from the request for
of the Contingent Staffing solution.
2008, contingent staffers provided
proposal (RFP) right
Utilizing a thoughtfully constructed
tremendous assistance to the Mid/
through the underwriting,
business model, contingent staffers
Large Case Implementation team by
sale, implementation and
were selected based on their
completing approximately 17 percent
ongoing administration of
business knowledge, experience
of all new business for the team’s
their programs. To ensure
and competencies.
January 1 implementation cycle with great quality results.
great service during these
Contingent Staffing team members Kim Jakubowski, Kris Erdrich, Gary Jones, Brenda Agresta, Yili Pokay, Bridget Hagspihl, Anne Wilson, Paula Teich, Holly Steffen, Jeff Cormany, Heather Kekev, Ron Gillingham, Alma Forster, Rob Blaisdell, Julia Lawlor, Tchad Harris
4
especially busy times,
These staffers quickly gained the
Contingent Staffing
comprehensive knowledge and skills
Due to this success, the BSO anticipates
utilizes associates from
needed for this assignment through a
that Contingent Staffing will expand
across the BSO and
customized training program developed
to support the Dividends process
“shares” them with other BSO areas
by the BSO. To ensure the team
during its upcoming peak periods.
that are undergoing peak periods. This
continued to meet the high-quality
A Contingent Staffing solution is also
not only keeps service at a high level, it
service standards MetLife customers
in the initial planning stages for the
also provides valuable opportunities for
expect, learning partners were assigned
Mid/Large Market Underwriting and Proposal Teams. ■
associates to expand their skill sets by
to assist contingent staff members and
temporarily taking on assignments in
a rigorous quality assurance program
different areas.
was established.
momentum hough shrinking in number, defined
“We believe that the results of this study
understood or accounted for in their
benefit (“DB”) pension plans remain
will help increase awareness among
risk analysis. These include “longevity
an important part of the investment and
pension plan sponsors about the need to
risk,” “mortality risk” and “early
retirement security landscape. In the
take a more comprehensive view of the
retirement risk.”
U.S., they account for $2.3 trillion in
risks associated with today’s pensions
assets and cover nearly 42 million plan
plans,” added Bill Mullaney, president,
“The research suggests that many
participants, of whom over 20 million
Institutional Business.
plan sponsors manage risk factors
Are plan sponsors focused on
individually rather than holistically,”
all the right pieces of their risk management strategy?
T
are active employees, according to the U.S. Department of Labor.1 Yet, until
The first-of-its-kind study focused on
says Cynthia Mallett, vice president,
now, relatively little has been known
some of the largest pension plans in the
Product & Market Strategies in
about how plan sponsors view and
U.S. One-hundred sixty-eight corporate
MetLife’s Institutional Business, who
manage their DB plan risks.
plan sponsors were asked to rank the
led the research in partnership with
importance of 18 different risk factors
Market Research, Marketing and
A leader in the pension risk transfer
identified by a panel of industry
Public Relations.
business, MetLife recently sought to
experts and researchers. They were also
measure the attitudes of corporate
asked how they are addressing the risks
Over time, the approach of focusing on
decision makers on the investment,
they identify as important.
some risks — and ignoring others — could have serious repercussions for
liability and business risks associated with managing their DB pension plan
Among the major study findings, plan
companies, including depressed
liabilities. The result is brand new,
sponsors report that they are focused on
earnings and unnecessary volatility in
original research entitled the MetLife
only a few risk factors associated with
earnings or cash flow, according to
U.S. Pension Risk Behavior Index .
their pension plan. Many also report
Cynthia. “This groundbreaking research
inconsistent success in addressing the
will raise the volume on the issue and
risks they view as most important.
help jumpstart meaningful conversations
SM
Launched in January, this new research is
about how to more holistically think
serving as a centerpiece of Institutional Business’s thought leadership platform
Generally, the plan sponsors ranked
about and manage pension risk,”
“Making Good on the Promise of a
investment-type risks, like “asset
she said. “The more plan sponsors
Secure Retirement” — and it’s
allocation,” “meeting return goals” and
understand all of their DB plan risks,
tremendously important to our
“under-funding of liabilities,” as most
and how they are interconnected, the
customers. Pension risks can be sizeable.
important. Risks associated with liabilities
better prepared they are to keep their
More than one company has faced
created by the plans ranked least
promise of a secure retirement to
pension troubles in recent years. Some
important and may be less well
plan participants.” ■
“We believe that the results of this study will help improve awareness among pension plan sponsors about the need to take a more comprehensive view of the risks associated with today’s pension plans.”
have decided to freeze their DB plans to new entrants; others have severely underfunded plans.
From the survey: How often each kind of pension risk was selected as “most important” when presented with other risk items.
“MetLife designed and fielded this study to encourage public dialogue around pension risk issues for plan sponsors,” says Robin Lenna, senior vice president and head of Institutional’s Corporate Benefit Funding group. “Our goal is to help plan sponsors develop a new framework for understanding risks, and to explore solutions for mitigating risk exposure.”
1. U.S. Department of Labor, Employee Benefits Society Administration, Private Pension Plan Bulletin Historical Tables, Feb. 2008
Groundbreaking MetLife Study Uncovers Pension Risk Attitudes
Asset Allocation Meeting Return Goals Underfunding of Liabilities Asset and Liability Mismatch Accounting Impact Liability Measurement Ability to Measure Risk Negative Alpha Plan Governance Fiduciary Risk & Litigation Exposure Investment Valuation Decision Process Quality Advisor Risk Inappropriate Trading Quality of Participant Data Longevity Risk Mortality Risk Early Retirement Risk 0.00%
— Bill Mullaney
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
Source: MetLife U.S. Pension Risk Behavior Index
What is pension risk transfer?
What’s a defined benefit pension plan?
Pension plans can expose sponsors (the employers who offer them) to multiple risks. External factors such as fluctuations in the financial markets, demographic
Often referred to as a traditional
shifts and changing legal and regulatory requirements can lead to unexpected
pension plan, a defined benefit pension
cash flow needs, balance sheet volatility and increased administrative
plan determines a future benefit to be
responsibilities associated with the plans.
paid to a participant based on a specified formula that typically includes
MetLife can help companies reduce their pension risks. Through Institutional’s
participants’ pay level and service.
Corporate Benefit Funding group, plan sponsors can access a variety of risk
Participants generally are not required
transfer solutions — some which lessen a portion of the risk and others, like a
to make contributions or investment
pension closeout, which remove the plan sponsor’s pension risk completely. Our
decisions, and the employer funds the
expertise in understanding pension risk, and how to mitigate it, has made us a
plan in order to pay future benefits
leader in this business. As of December 31, 2007, MetLife had over $30 billion in
to participants.
transferred defined benefit pension liabilities.
5
February/March 2009
Keeping Our Promises How MetLife uses disciplined risk management to deliver on its annuity guarantees
I
weighs an appropriate combination of
Giving clients a sense of security
features, limitations, requirements
Given today’s turbulent market, it’s
provided by MetLife’s individual
and fees so that our guarantees are
important that brokers and clients
annuities are particularly important to
competitive in the marketplace, yet
know about MetLife’s risk management
our customers, offering them peace of
financially sound. For example, the
strategies. This is why the Retirement
mind in turbulent economic times.
contractholder may only be able to
and Wealth Strategies group has made
exercise a guarantee up to a certain
it a point to reassure brokers and
age or after a holding period.
clients of the MetLife companies’
n today’s uncertain and volatile market conditions, the guarantees
One way that the MetLife companies ensure we can deliver on these
strength and our ability to meet our
guarantees is by adhering to strict,
Hedging
obligations — particularly since an
The Retirement and Wealth Strategies
annuity’s guarantees are subject to the
group in Individual Business works with
financial strength and claims-paying
MetLife’s Investments department to
ability of the company that issues the
develop hedging programs designed to
annuity. Here are just two examples of
help mitigate risks associated with the
marketing materials produced by the
annuity guarantees we provide, such
Retirement and Wealth Strategies
as interest rate, equity and currency
group Annuity Marketing department
risks. By definition, a “hedge” is an
that tell our story:
investment made specifically to offset another risk. Purchasing hedging instruments lowers the gains, on
management brochure — This piece
average, but also significantly reduces
will be approved for clients and
the potential for larger losses. Hedging
highlights MetLife’s long history,
helps allow the MetLife companies to
strength and stability, as well as our
stabilize their balance sheets, reduce
strategies for managing risks.
economic losses and pay for the
Two examples of marketing materials that tell our risk management story: the “Promise Campaign” (left) and the “Keeping Our Promises” risk management brochure (right)
Introducing the New MetLife.com A redesign of our public Web site
> Keeping Our Promises risk
> Promises Campaign — This campaign
guarantees in the optional benefits
reinforces MetLife’s strength and
when the market reduces the benefits’
stability and includes a broker
performance.
mailer and client letters. ■
disciplined risk management strategies
Reinsurance
The issue of delivering on our annuity
that include prudent product design,
In some cases, the Retirement and
promises was also a topic at MetLife’s
hedging and reinsurance.
Wealth Strategies group will pass a
recent Investor Day meeting. For
portion of the risk, though not the
more detail, see the Investor Day
Prudent product design
obligation or guarantee, to another
story in the January 2009 edition of
MetLife’s annuities are designed to
insurance company, called a reinsurer,
Momentum. (Visit my.metlife.com
offer clients value while limiting the
in exchange for a portion of the
and click on “Momentum.”)
company’s risk exposure. In creating
premiums paid. This takes some of
that design, product management
the burden off MetLife.
n today’s world, the Internet is an essential channel for
These features aren’t just good for users — they’re good for
providing customers with the solutions they need for
our business, according to Manish Bhatt, vice president,
I
themselves, their families and businesses. Nearly 80 percent
Interactive & Web Solutions. “New navigation capability will
of U.S. adults research products online, and more than 90
mean visitors can find what they’re looking for more quickly
million use online banking. But it takes more than a Web site
and easily, improving their satisfaction and likelihood of
to stay ahead of the competition; it takes a great Web
doing business with MetLife,” says Manish. The new platform
experience, with interactive
also has better metrics-tracking capabilities, so MetLife can
tools, easy-to-use navigation
see how site enhancements help us reach business goals.
and content tailored to the different reasons users
The ITG Global Applications and Enterprise Infrastructure
visit a site.
teams were instrumental in developing the platform to support the new site. This collaborative effort enabled the
The new MetLife.com is all
teams to find innovative solutions that will be leveraged
these things, and more.
throughout our many Web sites and lines of business.
The revamped Web site was
MetLife’s focus on MetLife.com in recent years led to more
launched in January, with a
than nine million visitors and over 107,000 Internet leads in
fresh, new design, updated
2008. As the new site evolves with new content, new tools
content and a better search
and continued improvements to the user experience, we can
function. Three customized
expect even bigger and better numbers in years to come.
home pages cater to
The new MetLife.com as viewed by individual customers
individual consumers,
If you haven’t had a chance to explore the new MetLife.com,
businesses and brokers/
check it out! You’ll be amazed at how much information is at
consultants, with targeted
your fingertips and how simple it is for all of our customers
messages and access to account management tools. Research on Internet user habits helped create this engaging experience for all user types, whether they want to find information, read personal stories or are ready to contact an agent.
6
to find the products and services they need. ■
momentum Financial Highlights — 2008
Capturing the Year in Numbers
Financial Results ($ in millions except per share data) (Years ended December 31)
2008
2007
Premiums and fees Net investment income Other revenues
$31,277 16,304 1,586
$28,220 18,328 1,465
Total
$49,167
$48,013
Policyholder benefits and dividends Interest credited to policyholder account balances Other expenses
$29,007 4,743 11,403
$25,349 5,435 10,554
Total
$45,153
$41,338
$2,736 1,100 (443) (309)
$4,570 (564) (24) 198
Net income available to common shareholders Preferred stock dividends Net income
$3,084 125 $3,209
$4,180 137 $4,317
Earnings per common share calculation: Weighted average common shares outstanding — diluted Operating earnings available to common shareholders per common share — diluted (1)
793.60 $3.67
754.10 $6.00
$4.14
$5.48
In the previous Momentum, we
Operating earnings available to common shareholders Net investment gains (losses), net of income tax (2) Adjustments related to net investment gains (losses), net of income tax Discontinued operations, net of income tax (4) (1)
(3)
Net income available to common shareholders per common share — diluted
Premiums, Fees and Other Revenues
Total Assets
reported on Investor Day 2008, at which MetLife’s senior leaders described MetLife’s business accomplishments and challenges during the past year. Here, we take a different view of 2008: a “by the numbers“ look at our financial highlights.
U.S. Employees 41,000
$35,000
$600
$528.1
$28,072 ($ in millions)
$500 ($ in billions)
$32,863
$30,000
$559.1
$501.7 $482.8
$400
$25,000
Worldwide Employees 56,000
$29,685
$25,976
Customer Reach MetLife is a leading provider of
$20,000
insurance and other financial services to over 70 million customers around
$15,000
the world and, in the United States, $10,000
$300 2005
2006
2007
2008
2005
2006
2007
2008
serves over 90 of the top one hundred FORTUNE 500® companies. Outside the United States, the MetLife companies have direct
2008 Operating Earnings Available to Common Shareholders
2008 Diversified Net Income (excludes Corporate &Other)
$1,750 $1,500
Institutional Business
$1,674
#1 U.S. Life Insurer States with approximately
$1,000 ($ in millions)
and Asia Pacific.
Largest life insurer in the United
Auto & Home
$1,250
operations in Latin America, Europe
International Business
$750 $743
$500
17%
$522
$3.4 trillion of life insurance
8%
in-force as of December 31, 2007.
56%
$363
$250 0
19%
($250) ($566)
($500) ($750) Institutional Business
Individual Business
International Business
Auto & Home
Individual Business
Corporate & Other
This financial highlights presentation is not a substitute for MetLife, Inc.’s annual report on Form 10-K or the annual report to shareholders. If you would like to see a complete set of financial statements for MetLife, Inc., visit www.metlife.com and select “Investor Relations.” (1) Non-GAAP and Other Financial Disclosures: All references in this presentation to net income, net income per share, operating earnings and operating earnings per share should be read as net income available to common shareholders, net income available to common shareholders per diluted common share, operating earnings available to common shareholders and operating earnings available to common shareholders per diluted common share, respectively. Net income available to common shareholders and net income available to common shareholders per diluted common share are defined as Generally Accepted Accounting Principles (“GAAP”) net income and GAAP net income per diluted common share less preferred stock dividends, respectively. The historical and forward-looking financial information presented in this presentation includes performance measures which are based on methodologies other than GAAP. MetLife analyzes its performance using so-called non-GAAP measures, including operating earnings, operating earnings available to common shareholders, operating earnings available to common shareholders per diluted common share and operating return on common equity. MetLife believes these measures enhance the understanding and comparability of its performance by excluding net investment gains and losses, net of income tax, and adjustments related to net investment gains and losses, net of income tax, both of which can fluctuate significantly from period to period, and discontinued operations other than discontinued real estate, net of income tax, thereby highlighting the results from operations and the underlying profitability drivers of the business. Operating earnings available to common shareholders and operating earnings available to common shareholders per diluted common share should not be viewed as substitutes for GAAP net income available to common shareholders and GAAP net income available to common shareholders per diluted common share, respectively. Operating earnings is defined as GAAP net income, excluding net investment gains and losses, net of income tax, adjustments related to net investment gains and losses, net of income tax, and discontinued operations other than discontinued real estate, net of income tax, less preferred stock dividends. Scheduled periodic settlement payments on derivative instruments not qualifying for hedge accounting treatment are included in operating earnings. Operating earnings available to common shareholders is defined as operating earnings less preferred stock dividends, which are recorded in Corporate & Other. Operating earnings available to common shareholders per diluted common share is calculated by dividing operating earnings available to common shareholders by the number of weighted average diluted common shares outstanding for the period indicated. Operating return on common equity is calculated by dividing operating earnings available to common shareholders by average common equity for the period indicated, excluding accumulated other comprehensive income. (2) Net investment gains (losses), net of income tax, includes gains (losses) on sales of real estate and real estate joint ventures related to discontinued operations of $8 million and $5 million for the full year ended December 31, 2008 and 2007, respectively, and excludes gains (losses) of $3 million and $164 million for the full year ended December 31, 2008 and 2007, respectively, from scheduled periodic settlement payments on derivative instruments not qualifying for hedge accounting treatment. (3) Adjustments related to net investment gains (losses), net of income tax, include amortization of unearned revenue and deferred acquisition costs, adjustments to the policyholder dividend obligation and amounts allocable to certain participating contracts. (4) Discontinued operations, net of income tax, excludes gains (losses) from discontinued operations related to real estate and real estate joint ventures.
7
February/March 2009
Protecting Privacy in a Borderless World A look at the mission of the MetLife Privacy Office
very day, new technologies emerge, enabling more ways to
globally, as well as to demonstrate how regulators outside the
share data. As a company focused on offering a financial
U.S. think about privacy.
E
“safety net” to its customers, MetLife has a deep-seated commitment to privacy. Protecting personal information is a core responsibility that touches every aspect of our business throughout
Privacy champions: aligning standards across the enterprise To help achieve these objectives, the MPO has also established
the world.
global partnerships with privacy champions throughout Making sure MetLife upholds those standards as it does
MetLife’s international locations. In each country, a privacy
business globally is the job of Virginia Bartlett, MetLife’s
champion is in place to coordinate privacy risk management,
newly appointed chief privacy officer and head of the MetLife
policies and standards. Essentially, the privacy champions are
Privacy Office (MPO). As part of Ethics & Compliance, the MPO
thought leaders who represent their country’s leadership
ensures customer and associate information is appropriately
teams as MetLife’s International Business establishes and
collected, safeguarded and used by the MetLife enterprise.
maintains a consistent approach to data protection.
It is also responsible for establishing a global enterprise Partnering with Legal, Compliance, IT Security and Policy
privacy strategy.
Administration, the privacy champions help MetLife in its
The MetLife Privacy Office team: Virginia Bartlett, chief privacy officer, and Harry Valetk, privacy director-U.S. Not pictured: Janice Rehman, senior compliance analyst
“When I look ahead in 2009, I see a changing internal and
efforts to achieve global consistency through an integrated
external world,” says Virginia. “There’s a borderless mindset to
approach to protecting personal data across the enterprise. In
the way we work and play today — and it’s a call to action.
addition, the champions serve on the International Privacy
Have you ever wondered in what country a Web site is located
Steering Committee, which was established to oversee the
when you place an order online? Have you ever wondered
development of privacy principles and standards for our
where your information is stored if you use an ATM while
International Business.
traveling overseas? As privacy officer, I think about this all the Often, privacy champions are advocates for new standards,
time: where is the data?”
helping to ensure country standards are consistent with
Setting standards internationally
MetLife’s privacy principles. In Europe, India and Latin
In the fall, Virginia participated in the 30th
America, privacy champions have been influential in raising
International Conference of Data Protection
awareness both internally and externally on the importance of
and Privacy Commissioners in Strasbourg,
MetLife’s global privacy and security framework. For example,
France. The conference, held annually, brings
Rafal Harla, chief information officer of MetLife in Poland, has
together 78 data protection authorities and
been instrumental in raising privacy issues and concerns to the
privacy commissioners from every continent.
newly appointed data privacy commissioner in Poland.
Privacy or other data regulators from nearly all of the countries where MetLife does
Momentum caught up with Rafal on his recent participation
business were represented at the event. At
in the European Privacy Officers’ Network (EPON) meeting,
the meeting, a resolution was passed for
where privacy issues and concerns were discussed with
setting international standards on privacy
Poland’s data privacy commissioner. Rafal says, “EPON is a
and personal data protection.
group of specialists that enables multinational companies to have a dialogue with national privacy regulators and to
“There’s a borderless mindset to the way we work and play today — and it’s a call to action. . . . As privacy officer, I think about this all the time.” — Virginia Bartlett
With that in mind, one of Virginia’s most important
manage data protection law compliance programs more
initiatives for 2009 is to encourage MetLife to think globally
effectively. The meeting was held at the law offices of CMS
about information flows. “The privacy impact of being a
Cameron McKenna in Warsaw in November of 2008. The
global company is significant,” says Virginia. “The meaning of
briefing was focused on personal data protection laws and
privacy is different everywhere you go and MetLife has offices,
practices in Poland, Russia and Romania.”
associates, customers and data centers around the world. For example, our Global Operations Support Center in India
When asked what aspect of data protection is most
supports many U.S. line-of-business processes, and we have
important, Rafal replied, “Certainly, the most important
claims service providers that operate offshore. We also offer
aspect for me is technology and the use of technology to
benefits to Institutional clients with global offices. So
protect data misuse, tamper-proof logging of access to
understanding how other cultures and people think about
data, encryption and other security measures for data
privacy is important.”
processed in IT systems. However, technology is only a small part of data protection and privacy. The most important
To address this, the MPO recently launched an internal MetLife
part is to implement and maintain a data protection culture.
awareness campaign called “Privacy Is Everyone’s Business” —
All associates need to understand that privacy is a part of
and that message is going out globally. The office will also
daily corporate life.” ■
introduce a new training program to help associates think
Read the complete interview with Rafal Harla online
MetLife has taken a global view in
meeting, privacy issues were discussed
Rafal’s entire interview. To access the
addressing the ever-evolving privacy
with Poland’s newly appointed data
interview, visit the my.metlife.com
protection issues relating to our
privacy commissioner.
business. As mentioned in the article
8
home page and click on the “Momentum” link (directly beneath
above, Rafal Harla, chief information
To hear more about the meeting, as
MetLife NewsDaily). A link to the
officer for MetLife in Poland, recently
well as Rafal’s personal views on why
interview can be found below the Momentum story listings.
attended the European Privacy
privacy and data protection are so
Officers’ Network (EPON) meeting at
important to MetLife, go to
the request of Virginia Bartlett. At the
Momentum online for a transcript of
momentum id you know Snoopy® could skate?
D
Following “Skate with Snoopy,” there
In recognition of the day’s activities,
To cap off MetLife’s 140th
was an additional event held at Bryant
Jeanne Mulgrav, commissioner of the
anniversary celebrations, approximately
Park during which members of the
Department of Youth and Community
300 New York City school children were
public were invited to have their
Development, presented Beth
invited to see for themselves and skate
pictures taken with PEANUTS characters
Hirschhorn, senior vice president,
with Snoopy on The Pond at Bryant
under the Holiday Tree. Consumers
Global Brand and Marketing Services,
Park in front of MetLife’s new
were provided with a MetLife
with a Proclamation from New York
Manhattan office location at 1095
mousepad directing them to retrieve
City Mayor Michael Bloomberg as a
Avenue of the Americas. The event,
their photos at metlife.com, thereby
“thank-you” to MetLife for sponsoring
which took place during the winter
driving traffic to our site. The rink and
the event. Said Debbie Krautheim,
holiday break, provided an opportunity
surrounding areas were decorated with
vice president, Creative Services and
for children enrolled in New York City’s
MetLife logos and artwork for the day,
Conference Planning, who spearheaded
Department of Youth and Community
providing great visibility for the
many of the year’s 140th anniversary
Development after-school program to
MetLife brand and serving as a festive
events, “Especially during the holiday
skate with Snoopy and have their
announcement of MetLife’s arrival in
season, this was a great way to give
pictures taken with members of the
the neighborhood with the recent
back to the community and give these
PEANUTS gang.
opening of the adjacent office building.
children a unique opportunity they will
®
long remember.” ■
A
t a time when retiree income is being squeezed from
The poll also highlights a resistance to taking action in the
all sides, many are paying a price for a benefit —
wake of major market declines. A majority of current retirees
liquidity — they may not be using. This is one of the key
(59 percent) have seen retirement assets shrink as a result of
findings of a study led by MetLife’s Public Relations and
the current economic environment, and many (44 percent)
Retirement and Wealth Management groups. More than
don’t expect that the return on their retirement funds will
1,000 retired respondents participated in the research,
keep pace with inflation on the essentials. But only 42
conducted by Harris Interactive.
percent are considering reallocating their assets to products that may provide a higher rate of return.
Skating with Snoopy Caps MetLife’s 140th Anniversary Year
Kids hit the ice with the PEANUTS gang. (Far right) Jeanne Mulgrav, Debbie Krautheim, Beth Hirshhorn and Itai Shoffman of The Pond at Bryant Park
Are Retirees Steering the Right Course in Terms of Liquidity? New MetLife study shows retirees paying for a benefit they may not be using
The goal of the survey was to get more people to contemplate the possibility of increasing their returns by
Perhaps leading to this indecision, many American retirees
considering guaranteed income products like annuities. A
who have interest-rate-sensitive accounts demonstrate a lack
good number of retirees — 37 percent, the study found —
of knowledge and understanding about the products they
are holding the majority of their assets in “liquid” accounts.
currently own. One-fifth don’t know the interest rates
These include CDs, savings accounts and money market
for any of their interest-rate-sensitive accounts, and an
funds, which offer ready access to assets. But retirees may
additional 29 percent only know the interest rates for some
not intend to tap these assets any time soon.
of these products — this despite the fact that 47 percent put their money in these products specifically because of the
While some retirees have benefited from liquidity in light
interest rates they yield. Among those who do know the
of the current financial and economic environment, going
interest rate, 63 percent say those assets are generating less
forward, retirees may be disadvantaged by keeping so much
than four percent per year.
of their money on the sidelines, especially if they have no present intention of withdrawing their assets. Because of
“The goal for retirees right now is to achieve an optimal mix
the now historically low yields of liquid instruments,
of investments, liquidity and protection products. For many
retirees may be passing up potentially higher guaranteed
retirees, this means giving up some — but not all — of that
returns elsewhere.
liquidity in favor of products such as income annuities that may provide more income with guarantees,” adds Julia.
“The findings point to a disconnect between the perceived need for liquidity and the actual uses of those funds among
The MetLife survey, yet another extension of our thought
retirees,” notes Julia Lennox, vice president, the Retirement
leadership, has been getting good coverage in benefits,
and Wealth Management group. “If they stay in these liquid
human resources and investments trade publications such
assets, over time, many retirees might unnecessarily miss out
as Pensions & Investments, Human Resource Executive,
on the possibility of higher returns for a ‘liquidity benefit’
Workforce Management, National Underwriter,
that they may never use. While it’s important that every
Retirement Income Reporter, Plan Advisor and Retirement
individual have some portion of their assets in liquid
Weekly. It has also been picked up in major news outlets
accounts, many are putting the lion’s share of their
like Marketwatch. ■
“The findings point to a disconnect between the perceived need for liquidity and the actual uses of those funds among retirees.” – Julia Lennox
investable funds in such holdings and, in the process, passing up potentially higher returns for access they may not need.”
9
February/March 2009
e-Relationship: A Better Way to Connect with Clients
hen turbulence struck the
Mike Vietri, CLU, executive vice
Branding, to make e-Relationship
financial markets last year, the
president of Individual Distribution,
available to the field, and it’s been
e-Relationship e-mail marketing system
urges all reps to take advantage of
expanding its reach ever since. Firm
helped MetLife and New England
e-Relationship. “e-Relationship helps
managers, for example, can now use it
Financial reps reach out quickly at a
keep lines of communication open
to keep in touch with potential recruits.
time when jittery clients most needed
with clients,” says Mike, “and right
In 2008, the platform was expanded to
to hear from a financial professional.
now, that’s absolutely critical. It’s a
allow reps to reach potential customers
powerful tool.”
in addition to current clients.
Distribution (ID)
Growing popularity
Reps can reach up to 3,500 e-mail
developed
More and more reps are putting
addresses as often as they want with
e-Relationship to
e-Relationship to work. In 2008,
e-Relationship for one monthly fee. And
help producers
approximately 1,200 reps sent more
by using e-mail, reps save paper and
maintain strong
than 4.5 million messages to almost
help fulfill the company’s mission to be
client relationships
500,000 clients and prospects. New
environmentally friendly.
in a fast-paced
materials are being added to
world. It provides
e-Relationship all the time so reps can
Financial services representative Barbara
a way to send
provide fresh perspectives.
Henry, LUTCF, of New England Financial
W
Individual
in Orlando, FL, swears by e-Relationship.
personalized and An example of the eRelationship “storyboards” sent to clients, featuring quotes from renowned investor Warren Buffett
professional-looking materials to a
“Clients have told us that the more
In the fall, she sent market-related
broad list of clients and prospects at one
they hear from their rep, the more
pieces to clients and prospects and got
time, giving reps a quick, simple and
satisfied they are and, as a result, they
a terrific response, including dozens of
efficient way to stay in touch.
would refer more and they would
“thank you’s,” 13 appointments and
buy more,” said Joseph W. Jordan,
at least one sale.
Using e-Relationship, reps could offer
“Clients have told us that the more they hear from their rep, the more satisfied they are. ” — Joseph Jordan
Rallying the Troops MetLife Auto & Home’s 2008 National Sales Meeting attendees give recuperating veterans a comforting surprise
senior vice president of National Sales.
reassuring messages as market events
“e-Relationship allows the rep to keep
“We’re always reminded to work
unfolded last fall, including such items as
connected in an efficient, effective
smarter,” Barbara said. “With
national ads attesting to MetLife’s
manner. We encourage every rep to
e-Relationship, I can hit so many clients
strength and stability, which went to
take advantage of this. It’s an
with the click of a button, it’s amazing.
more than 100,000 people; and a
investment that can pay tenfold.”
Staying in touch this way gives me credibility that other advisers out there
“storyboard” presentation featuring quotes from Warren Buffett, which
Efficient, economical and ‘green’
don’t have. It also saves me time and
prompted more than 5,000 people to
Three years ago, MetLife started
saves me money on postage. I can’t
request further contact from their agent.
working with a new vendor, Identity
imagine not having it!” ■
reedom is not free, and nowhere is that more evident than at
That was when participants truly realized the value of their
a veteran’s hospital. This year, during its National Sales Meeting
teambuilding activity. Life stories were casually shared by
F
held in Dallas, Texas just after Veterans Day, MetLife Auto &
many of the veterans, providing glimpses into their
Home decided to give back to those who served
experiences. Some vets had their stories captured on video
our country.
by the Veterans Administration to share with their families.
®
All in all, it was hard to say who got more from those visits. With satisfying memories of the teambuilding event held during its 2007 meeting in New Orleans (refurbishing an
As an extra donation to the troops, the team had mounted a
elementary school ravaged by Hurricane Katrina), the 2008
“Cell Phones for Soldiers” drive prior to the meeting to collect
National Sales Meeting planning team decided to once again
old cell phones for recycling. Every donated phone provides
promote teamwork and reap the priceless byproduct of giving
an hour of calling card time for military personnel overseas,
back to the community. Don Cunningham and Wayne Hudson,
helping them stay in touch with their loved ones. A total of
both regional sales directors, teambuilding activity leaders and
210 cell phones were brought to the meeting and presented
veterans of the armed forces, proposed a “rally for the troops”
by Scott Kuczmarski, Agency Distribution vice president, to
who served in the military.
Fred Maldonado, AT&T regional director and “Cell Phones for Soldiers” representative. The phones will provide our forces
In preparation, Don and Wayne utilized their activity budget
with almost nine days of talk time from Afghanistan and Iraq.
to purchase “comfort items” such as T-shirts, sweatshirts and
(Left to right) Associates assemble “comfort bags”; Scott Kuczmarski (right) presents “Cell Phones for Soldiers”; a comfort bag delivery; Snoopy greets a veteran
10
toiletries from the Army PX, which returns the profits to active
Noticing the flock of MetLife volunteers at the VA hospital,
military families. Then, on-site at the Dallas VA Hospital, 20
one wheelchair-bound veteran asked what was happening.
teams of 10 gung-ho sales managers competed to assemble
When offered a visit, he replied, “Oh, I’m not a patient. I’m
600 “comfort bags” for patients in an hour. The fiercely
a volunteer. It does me good to help people who are less
competitive group finished in less than half the allotted
fortunate than I am.” That’s the spirit — one that the MetLife
time, resulting in more time to deliver the bags and visit
Auto & Home’s sales management team strives to keep alive. ■
with patients.
momentum ecently, MetLife’s Local Inclusion Action Team (LIAT) in
He also described some of the many challenges to creating a
Alpharetta, GA hosted its second annual LIAT Day with
healthy workplace, including injury, communicable diseases
R
Dr. David Satcher, M.D., Ph.D. as the keynote speaker.
such as the flu, obesity and availability of health insurance.
Dr. Satcher spoke to the meeting’s theme of “Diversity Works
Dr. Satcher also emphasized that companies need to create
at MetLife” from the perspective of his particularly distinctive
an environment where people feel comfortable asking for
background. He is a former Surgeon General of the United
help without the fear of stigma or reprisals. He added that
States and, currently, a member of MetLife’s Board of
fostering a healthy workplace benefits companies by
Directors. Dr. Satcher also established The Satcher Health
reducing absenteeism, reducing health care costs and
Leadership Institute (SHLI), is director of the Center of
improving employee morale.
Diversity at MetLife Former Surgeon General “Writes Prescription” for Alpharetta Associates
Excellence on Health Disparities at the Morehouse School of Medicine (MSM) and occupies the Poussaint-SatcherCosby Chair in Mental Health at the Morehouse School of Medicine in Atlanta.
While he was Surgeon General, Dr. Satcher also served as assistant secretary for health in the Department of Health and Human Services from February 1998 to January 2001, making him only the second person in history to have held both positions simultaneously. He was also director of the Centers for Disease Control and Prevention (CDC) from 1993 to 1998 and was the first person to serve as director of the
Concluding his remarks, Dr. Satcher presented all the
CDC and Surgeon General of the United States. Rudy Loney,
participants with a signed “prescription” for good health:
(Left) The Alpharetta LIAT with Rudy Loney (in business suit, left) and Dr. David Satcher (in business suit, right)
> Moderate physical activity, at least five days a week,
(Right) Dr. Satcher presents his prescription for health
vice president, Agency Distribution Financial Services, MetLife Auto & Home , introduced Dr. Satcher to a LIAT ®
Day audience of approximately 120 MetLife associates and
30 minutes per day
business leaders.
> Eat at least five servings of fruits and vegetables a day
The themes of Dr. Satcher’s presentation were the disparity
> Responsible sexual behavior: abstinence plus optimal
> Avoid toxins — tobacco, illicit drugs, and abuse of alcohol
of healthcare, the diversity of health challenges in the workplace and the importance of creating a healthy
protection when sexually active > Daily participation in relaxing and stress-reducing activities
workplace. He stressed that in order to enjoy their retirement years, individuals need to prepare not only
The Alpharetta LIAT was honored to host such a special guest
financially, but also health-wise.
for its LIAT Day! ■
F
ive thousand MetLife associates told us they took the Chairman’s Challengesm on Medical Plan Options in the fall and actively took steps to become better educated about their Medical Plan Options. Did you join them?
In support of Open Enrollment, this latest Chairman’s Challenge provided the opportunity to put what you’ve learned into practice and elect the best medical plan for your needs for 2009. “From mid-October through the end of the Open Enrollment period, associates were provided a wealth of resources and tools to help them learn, plan and take action with regard to their medical plan benefits,” says Margery Brittain, head of Global Benefits.
5,000 Associates Take the Challenge! Latest Chairman’s Challenge deepens associates’ understanding of our medical plan options
“Through a wide range of media, including a new online audio-visual educational format and the Plan & Cost Compare modeling tool, we helped associates who took the Challenge to deepen their understanding of their benefits and build confidence that they were making truly informed benefit choices.”
Many of you shared positive comments about the value of the Chairman’s Challenge. Now that you‘ve selected your options for 2009, don’t forget to make the most of your healthcare benefits throughout the year. Through the Associate Information Center (AIC), you can access information and tools — like healthcare tips and resources on WebMD, the Vision Discount program description and the “Price a Drug“ feature on Express Scripts, to name a few — that can help you make sure you‘re optimizing the value of your healthcare dollars every day. And, to help you and your family maintain or improve your health during 2009, including how to earn the $100 WOW Dividend, be sure to visit the AIC >> Benefits >> Wellness, or contact Wellness & Fitness Services at wellnessandfitness@metlife.com. ■
he Global Operations Support
managed and operated exclusively by
dependence on a third-party provider.
Center (GOSC) is commemorating
MetLife leaders and associates. This
In this new site, the GOSC will continue
an important milestone in its
ribbon-cutting celebrates more than a
to drive quality improvements and
development — and in the next
brick-and-mortar facility; it symbolizes
processing efficiencies, which are both
Momentum, we’ll take you there. In
MetLife’s achievement of end-to-end
important to fueling revenue and
late February, the ribbon was cut on
oversight of GOSC operations and
earnings growth at MetLife. Stay tuned
the new captive center, which will be
process migrations without any
for a full update next month. ■
T
Next Month: A Glimpse into the GOSC Ribbon-Cutting Ceremony in India
11
February/March 2009
March is Ethics Awareness Month: Live by the Code!
ike a good road map, MetLife’s
Though our Code is a navigation tool
and laws in every decision you make.
Employee Code of Business Conduct
specifically designed to guide your daily
Finally, be a model of ethical action by
and Ethics can help you get your
decisions, you have to understand its
ensuring associates know that you
bearings in a tough situation. It outlines
contents and access it when needed in
always include ethical considerations in
our company’s expectations and the
order to reap its benefits. So review the
your decisions.
responsibilities we each bear. The Code
Code on my.metlife.com >> Our
provides guiding principles and suggests
Company >> Policies and decide where
MetLife’s Code of Conduct sends a clear
ways to apply these principles. It also
you should turn if you have a concern.
message about where our company is
L
today and what our emphasis is as we
summarizes our policies and procedures If you are a supervisor or manager,
move forward. When you read,
conflicts of interest, diversity and
introduce the Code to your team as a
understand and utilize the Code in
equal opportunity.
resource. Consider ways to help your
your daily business decisions, you are
direct reports understand the topics in
protecting our company’s good
the Code. Practice ethical decision
reputation and demonstrating our
making by including consideration of
company values. ■
about important topics such as
A reminder to live by the code: A poster from MetLife about our Employee Code of Business Conduct and Ethics.
Everyone Could Benefit from $100 The WOW Dividend Program offers you $100 toward medical, dental or LTD benefits costs
ethics, our guiding principles, policies
et healthier in 2009 and earn $100 or up to $300 per
G
for completing a program phase. Each program includes
family! By completing the Working On Wellness
10 program phases, so participants can earn a total of 50
(WOW) Dividend Program, you and your family can do
Dividend Points for completing an improvement program.
both. The program, offered by Wellness & Fitness Services, rewards associates and their families for practicing good
> Exercise Tracker and/or Walking Planner — Regular exercisers can enter workout sessions into the Exercise Tracker and/or the Walking Planner and earn two points
health habits.
for each data entry (maximum of 50 points can be earned). This year, all adult participants must accumulate 100 Dividend Points on the WebMD Web site by August 31, 2009 to be
> WOW Dividend Confirmation Tracking Number — After completing all program requirements, a Dividend
eligible to receive the $100 WOW Dividend. This dividend is
confirmation tracking number will post to your
applied to medical, dental or long-term disability benefits
Redemption History section on the WOW Dividend
costs in 2010. Adults earn 100 Points by completing the
Program page on WebMD. Participants are responsible
required Health Quotient (HQ) for 30 points and by
for knowing their confirmation tracking number as
completing other qualifying actions for the remaining
proof of completion of the WOW Dividend Program.
70 Points.
Without a tracking number, no dividend will ne awarded; no exceptions will be made.
Remember: parents can also earn the $100 Dividend for eligible children! Visit WebMD for complete program details.
Visit WebMD today for complete program details. Associates can log in to the Associate Information Center (AIC) and go
Highlights of WOW Dividend Program changes for 2009:
to Benefits >> Wellness >> Working On Wellness Dividend Program. Or, click “WebMD website” under “Quicklinks”
> “$100 WOW Dividend Thursdays” — Most program
on the AIC home page.
communications will be posted Thursdays in MetLife NewsDaily on my.metlife.com. Participants may also visit
Questions about the 2009 WOW Dividend Program? Click on
the WebMD site now for complete program details.
the “Questions” link at the top of your WebMD home page
> WebMD’s Improvement Programs — Participants can earn five points per week for a minimum of 10 weeks
Coming in April: The New Momentum Online
or send your question to Wellness & Fitness Services at wellnessandfitness@metlife.com. ■
etLife associates: we heard you!
M
The new Momentum Online will
Next month, be sure to check out the
In our recent Momentum survey
feature text versions of all the stories
new Momentum Online, which will be
(see details in the January Momentum),
you see in the printed Momentum.
available from a special link on the
several respondents asked to see a
Momentum Online will also feature
my.metlife.com home page. And let
better way to access Momentum stories
“bonus stories” you won’t see in the
us know how you like our enhanced
online. So, starting next month, we’re
print edition. Plus, our online stories
online publication by sending us a
enhancing the online version of
will periodically include interactive,
Lotus Notes email. (To send us an email,
Momentum to offer you an easier-to-
audio and video components.
simply type “Momentum” in the “To”
read, more robust online experience.
field of a Lotus Notes message.) ■
Momentum is published by MetLife Internal Communications for associates enterprise-wide. Send questions, comments or ideas for stories to momentum@metlife.com. Vice President, Internal Communications: Susan Berger Editor: Greg Potter Law Department Liaison: Mark Schuman Contributors: Toby Axelrod, Kasana Banks, Tammy Bone, Ross Calvert, Caroline Campanelli, Judy Downey, Mike Dynon, Gina Gelman, Toni Griffin, Barbara Immergluck, Julia Levy, Michael Markowitz, Katherine Paulson, Janine Wright PEANUTS © United Feature Syndicate, Inc., www.snoopy.com © 2009 MetLife, Inc. Printed in USA (0309) Statements made in this publication may constitute forward-looking statements within the meaning of the federal securities laws, including statements relating to trends in the company’s operations and financial results, the markets for its products and the future development of its business. MetLife’s actual results may differ materially from the results anticipated in the forward-looking statements asa result of risks and uncertainties, including those described in MetLife, Inc.’s filings with the SEC. MetLife specifically disclaims anyobligation to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise.
12
January 2009
For Institutional, a Time to Lead, page 5
momentum Featured Inside
“We Are Big, Strong and Trusted.”
For Institutional, a Time to Lead 5
At Investor Day 2008, MetLife explains why our value proposition truly stands out in a time of economic volatility.
Understanding the 6 Underinsured Associates “Take the Lead” in 6 Lead Processing
Against the backdrop of one of the most tumultuous
Targeting the Core 7
periods in U.S. economic history, MetLife’s senior
The Economy is Down: 8 Will Fraud Go Up?
leaders stood onstage last month describing in detail why MetLife is a great company in which to invest.
GOSC Customer Day 9
It was Investor Day: an annual event to which MetLife
A Lesson in Collaboration 10
invites many of the country’s most influential stock
Diversity at MetLife 11
analysts to hear the company’s senior management talk
A New “Go Green” 12 Achievement
about our financial strength, our business results and the actions we’ve taken to fuel our growth.
Momentum Readers: 12 We Heard You! Continued on Page 2 >
Chief Executive Officer Rob Henrikson speaks to stock analysts at Investor Day 2008 in New York City.
An Historic Opportunity to Differentiate Ourselves
Rob Henrikson Chairman, President and CEO
Volume 11, Issue 1
C
ertainly in my lifetime with MetLife,
capital through a public offering of our
in the domestic or international markets,
I’ve never seen a time like this
common stock. Another factor setting
or retail or Institutional arenas, we are
relative to the opportunities for our
us apart today is our investment
in a unique position to take advantage
company. True, we are operating in a
portfolio, which is of very high quality.
of the marketplace in ways that others cannot.
difficult economic climate. But never before have we had the chance to so
Our capital strength, our sound
differentiate ourselves in the financial
investment portfolio and our diverse
You've heard me say before that
services arena.
mix of businesses are important not
MetLife stands alone. As I told the
only because we are in the business of
analyst community at Investor Day
In the turbulent markets we’re in today,
trust, but also because in this volatile
a few weeks ago (see article above),
financial strength is at the forefront
environment, there has and will
MetLife, more than our peers, is well
and we have certainly done a lot to
continue to be a flight to quality.
positioned to deliver long-term
protect and fortify our strength in 2008.
Customers, investors and potential
success. As the new year begins, I
We have taken decisive and thoughtful
employees are attracted to MetLife
know there will be challenges, but I
steps to demonstrate our strength and
because of our strength and stability.
also wholeheartedly believe that we
increase our opportunities for flexibility
They have faith in our promises to be
are a great company with even
and differentiation in the market,
there for them in the long run. Whether
better people. ■
including raising more than $2 billion in
through organic growth or acquisition,
< Be sure to visit Momentum online at my.metlife.com >
1
January 2009
Cont’d from Page 1
This year, the task was particularly important. Due to the
“We Are Big, Strong and Trusted.”
and the online media have been full of stories about the
Steve Kandarian, executive vice president and chief investment
dramatic failures of some financial institutions and the
officer, focused his comments on the state of MetLife’s
troubling weaknesses of others. It was critical to demonstrate
investment portfolio. He acknowledged that today’s
why our enterprise shouldn’t be painted with the same
unprecedented downturn has impacted all portfolios,
brush — that there is something fundamentally different
including MetLife’s. However, Steve said that “the strength
about MetLife.
of our portfolio is really important to contrast against the
“Investor Day 2008”
“We are well-positioned to weather the storm.”
rapid economic downturn in late 2008, newspapers, television
overall market and market indexes.” That difference was summed up by CEO Rob Henrikson when he flashed this statement across the screen above his head:
Much of MetLife’s continued portfolio strength is due to
We are Big, Strong and Trusted.
our Investment Department’s proactive management. Steve pointed out that, foreseeing trouble ahead in the real estate
“The strength of our portfolio is really important to contrast against the overall market and market indices.” — Steve Kandarian
“Big is something that carries with it a lot of opportunities,”
market, our portfolio managers began taking defensive action
said Rob. “We’ve shown you how we can grow using that
back in 2004, especially in the area of sub-prime mortgage
strength of size — that differentiator — to our advantage.”
holdings. He also said that in 2007, the department concluded
To prove it, Rob reminded the audience that at Investor
that a recession was likely and began repositioning the
Day 2007, MetLife predicted it would grow year-over-year
portfolio accordingly.
revenue during 2008 at nine percent. “As I stand before you,” Rob said, “we’ve exceeded those expectations,
Another major move bolstering the portfolio’s strength has
growing at an 11 percent clip.”
been a reduction in our securities lending program. Securities lending is a common practice in our industry, enabling MetLife
In a marketplace like today’s, our customers, policyholders
to profit by loaning out securities from our General Account.
and other key stakeholders have shown that they particularly
At our program’s peak, about $50 billion in securities had
value that MetLife is “big, strong and trusted.” “MetLife
been loaned out. But through an organized reduction in the
employees, agents, distribution partners, policyholders,
program, that figure today is below $27 billion, reducing our
individuals and corporations trust us to protect our strength,”
exposure to risk presented by today’s market downturn.
said Rob, who then outlined some of the important actions
“If you think about the earnings power of this company, the model works and works quite well.” — Bill Wheeler
MetLife took in 2008 to do just that (see details in Rob’s column
Overall, Steve affirmed that MetLife continues to have a
on page 1). As a result, Rob said, as of Investor Day, MetLife’s
well-diversified portfolio across a wide variety of fixed
ratings in terms of our financial strength and outlook had
income and equity sectors. We also continue to focus on
been affirmed by both Standard & Poor’s and Moody’s.
“underwriting securities ourselves” and to taking a strongly proactive stance to portfolio management. So despite the
Rob also pointed out that MetLife has committed to growing
turbulent times, Steve said, “because of the actions we’ve
our businesses by focusing on the fundamentals. “It has
taken, we are well-positioned to weather the storm.”
created a very attractive track record,” Rob said, showing a chart of MetLife’s 8.9 percent Consolidated Annual Growth
“I want to give you ‘A Tale of Two Cities.’”
Rate (CAGR) in revenue since 2003. Looking ahead, Rob said that MetLife would be able to extend its lead in the market-
Borrowing a book title from Charles Dickens, Bill Wheeler,
place because in these turbulent times, customers value our
executive vice president and chief financial officer, described
strength and trust our proven track record.
“We are and will continue to be the preeminent benefits and retirement franchise in the industry.” — Bill Mullaney
Continued on Page 3 >
A major theme at Investor Day: Operational Excellence
Efficiency is always a distinct business
Rob Henrikson pointed out that
embedding of a continuous
advantage — but it’s particularly
MetLife expects at least $400 million in
improvement culture at MetLife.”
important when the economy is weak.
run rate expense savings by 2010 from
That’s why, at Investor Day 2008, all
Operational Excellence, generated
To see our senior leaders’ Operational
three of MetLife’s line-of-business
by both business and technology
Excellence slides summarizing their
presidents concluded their remarks
initiatives. But it’s not just those savings
2009 initiatives, visit Momentum
by summarizing their Operational
that matter. As Bill Toppeta stated,
online. Select “Momentum” from the
Excellence initiatives for 2009.
“Perhaps the most important thing
my.metlife.com home page.
about Operational Excellence is the
2
momentum the market’s effect on MetLife’s 2008 financial results as
driven largely by record term life sales, record dental sales and
“A Tale of Two Cities.” We are being affected by the market’s
strong sales in the pension close-out business. He also said that
impact on both our investment income and annuity earnings.
as a result of aggressive expense management, expense ratios,
If you back out those two factors, Bill said, you can see how
particularly in group insurance, are down dramatically.
well MetLife has continued to perform.
Cont’d from Page 2
“We Are Big, Strong and Trusted.” “Investor Day 2008”
How are we generating this success in tough times? “We are To prove this, Bill reminded the audience that in 2007 we
really benefiting from having a diverse set of businesses
projected 2008 operating earnings, excluding variable
within Institutional,” said Bill. “It allows us to weather the
investment income and annuity earnings, of approximately
kinds of changes we’re seeing in current markets, to capitalize
$2.5 billion. Our actual results, after excluding the same items
on opportunities and continue to deliver long-term growth.”
and one-time charges for Operational Excellence and Retirement and Savings, was $2.3 billion. Even that relatively
Specifically, Bill pointed to three trends that are affecting
small miss, said Bill, was driven in large part by our variable
Institutional. First, recessionary pressures are impacting the
life business, which is also affected by the stock markets.
employment levels of our customers, affecting revenue from payroll-based insurance products. MetLife’s product diversity,
“So the rest of MetLife’s performance is pretty much as
however, means we’re not entirely a payroll-dependent
expected, even in what’s a very difficult time,” said Bill. He
operation. We offer products to retirees, we have strong
added that, on an adjusted basis, expenses dropped by
pension close-out and structured settlement businesses and
approximately two percent in 2008 — even without any impact
some of our products are “portable,” so people can continue
from Operational Excellence initiatives — at a time when
them even if they leave their employer.
“MetLife is one of the few brand names left on earth that can give people guarantees they can count on.” — Lisa Weber
revenues grew approximately 11 percent. “That’s a very impressive performance in terms of expense control,” said Bill.
The second and third trends are cost pressure on employers — which impacts the money they have to spend on benefits —
Given analyst concerns about the market’s impact on other
and the market-driven weakening of employers’ pension plan
“Big is something that carries with it a lot of opportunities.” — Rob Henrikson
(Left) Analysts gather for Investor Day 2008. (Left to right) Investor Day presenters Steve Kandarian, Bill Wheeler, Bill Mullaney, Lisa Weber and Bill Toppeta.
insurance companies’ abilities to deliver on their annuity
funding. Institutional’s value proposition, said Bill, is more
guarantees, Bill pointed out that MetLife continues to practice
important than ever in light of these trends. Our ability to
a strong investment hedging program regarding the
deliver trusted advice, listen to our clients, understand their
Guaranteed Minimum Income Benefit riders in our annuities.
needs and develop innovative solutions to meet those needs
This makes delivering on those guarantees “a very
is even more critical today. Plus, our financial strength is more
manageable capital issue for us,” said Bill.
important than ever as plan sponsors decide with whom to place their benefit programs.
In conclusion, Bill said that MetLife’s earnings power is very much intact. “Yes, we’re going to have volatile variable
Bill detailed several of the strategic moves his business has
annuity account balances for awhile,” he acknowledged. “But
made in light of today’s markets, including a deliberate
if you think about the earnings power of this company, the
slowing in the growth of group disability, a continuation of
model works and works quite well.”
our disciplined pricing approach to group life and the acquisition of Safeguard, a dental health management
“We can do things other companies can’t.”
“We have growth based upon diversification in terms of geography, business model, product and distribution channel.” — Bill Toppeta
organization (DHMO), that has allowed us to quote on and win more business in markets where a DHMO capability is
Encapsulating his area’s 2008 results, Bill Mullaney, president, Institutional Business, pointed to excellent revenue growth,
seen as essential. Continued on Page 4 >
Is MetLife’s 15 percent ROE goal still realistic?
At Investor Day 2007, MetLife introduced the goal of a sustainable annual 15 percent ROE (Return On Investment) by the end of 2010. Of course, this year, the world’s economic realities shifted drastically.
“This is a time when consumers are truly seeing the value in the guarantees we offer and in the advice, expertise and strength we provide.” — Conor Murphy
During the Q&A session at Investor Day 2008, Rob Henrikson noted that while the economy has changed, our business model has not. So, Rob said, “due to the economic turbulence, to say that we’re going to hit that 15 percent in the same timeframe would be totally unrealistic. It might even drive bad behavior for your management team. So, we’re looking at that ROE to try to determine exactly what the target should be; but long term, 15 percent is still there.”
3
January 2009
Cont’d from Page 3
“We Are Big, Strong and Trusted.”
“We have financial strength, we have market leadership, we have innovative solutions and we have the talent to execute,”
“All this growth is based on sticking to our strategies and fundamentals.”
Bill said. “We can do things that other companies can’t. And because of that, we are and will continue to be the
MetLife’s International Business, said Bill Toppeta, president,
preeminent benefits and retirement franchise in the industry.”
“is still all about growth” — which has continued to be solid
“Investor Day 2008”
throughout 2008, particularly in terms of premiums and fees.
“2008 was about doing what we do best.”
While the business’s sales results were flat, that flatness was driven mostly by a decline in MetLife’s Japanese annuity
At MetLife, the impact of recent market volatility has been
business, due in large part to market conditions. The four-year
particularly significant in Individual Business. Lisa Weber,
Consolidated Annual Growth Rate (CAGR) for International
president of Individual Business and MetLife Auto & Home®,
Business revenues remains substantial at 18 percent. Earnings
acknowledged this early in her presentation. “We simply could
growth has been even more substantial during that time,
not outrun the more than 40 percent drop in the S&P,” she
coming in at a CAGR of 29 percent.
said. However, Lisa stressed that tremendous opportunity lies ahead. “The financial services industry is redefining itself —
“All this growth is based on sticking to our strategy and to the
and I believe it’s absolutely ours for the shaping and taking.
fundamentals of our business,” said Bill. He explained that
Now more than ever, people need the guarantees that only
International’s focus remains on the geographic areas we’ve
the insurance industry can provide, and MetLife is one of
already penetrated, which give us access to 90 percent of the
the few brand names left on earth that can give people
world’s life and retirement markets. Plus, International’s
guarantees they can count on.”
product lines, target customers and distribution strategies are similar to the rest of the enterprise. “So,” said Bill, “we
Lisa said that for Individual Business, 2008 was about “doing
are sticking to the things we know best . . . in short, to
what we do best: executing on the fundamentals.” As a result,
be MetLife.”
our variable annuity sales outpaced the competition, enabling Still, Bill said, while the basics of our business are the same worldwide, our business models differ according to what’s appropriate for each country. To illustrate, he pointed to Latin America where, in Mexico, our target is primarily government workers to whom we sell group life and major medical coverage. In Chile, however, we offer group life and accident & health coverage to middle and mass-market consumers. This is done through brokers as well as through Banco Estado, the federal bank of Chile, which gives us stability in terms of earnings and revenues.
The diversity in our business models works to minimize (Top) Conor Murphy moderates the Investor Day agenda. (Bottom left) Analysts raise their hands during a question-and-answer session following the formal presentations. (Bottom right) Stan Talbi, MetLife executive vice president and finance officer, answers a question about reinsurance.
International’s overall risk profile, Bill said. To enhance that MetLife to regain the number one position for the third
diversity, International is continuing to add to its balanced
quarter of 2008 according to VARDS, the key industry source
product portfolio. In Brazil, for example, International
for variable annuity information. In addition, MetLife’s variable
acquired a major dental insurance provider in a country
annuity market share grew from nine to 11 percent. “What I
where the opportunity is enormous: 90 percent of employees
feel best about,” said Lisa, “is that we got to this position
have no dental coverage whatsoever. In Mexico, a country
without doing anything overly aggressive in terms of our
where 92 percent of private medical costs are borne by
products, our features or our pricing.”
consumers out-of-pocket, we are launching an individual major medical product.
Turning to the life insurance business, Lisa said that sales were stable in 2008, even in this economic environment, which was
In summary, Bill emphasized International’s strong results in
quite an achievement. MetLife also moved from number seven
2008 despite the challenging environment. “We have
to five on the list of top life insurance sellers according to
growth based upon diversification in terms of geography,
LIMRA, and introduced four new core life products designed
business model, product and distribution channel. We have a
to improve future profitability.
sound strategy and we’re focused on the fundamentals of the business.”
Distribution continues to be a particular strength in Individual Business. Lisa reported that as competitors have been laying
Conor Murphy, vice president and head of Investor Relations,
off wholesalers, MetLife has been hiring. Our wholesalers have
who moderated Investor Day, was pleased with the messages
delivered steady, stable and reliable results. She also said that
MetLife delivered to the analyst community. “Following
we continue to have the broadest distribution reach in the
Investor Day, the consistency of analysts’ reports demonstrates
business, including our third-party independent distributors
that our messaging was effective,” said Conor, “and the wide
and affiliated MetLife, New England Financial and MetLife
range of questions Rob received during our Investor Day
Resources channels. She called these latter organizations “blue
question and answer session implies a broad interest in
chip” operations that have outpaced the industry in terms of
MetLife’s growth opportunities rather than in specific concerns
retaining talent and productivity.
relative to the financial markets. I believe this is a time when consumers are truly seeing the value in the guarantees
Finally, Lisa acknowledged the exceptional team in Individual
we offer and in the advice, expertise and strength we provide.
Business. “You can copy services and product,” she said, “but
It’s not a time we’d wish on anyone — but it is a great time to
you can’t copy the power of people. I think this is our time.
be MetLife.” ■
This is a time when clients need us. So there will be a flight to quality in 2009 – there will be a flight to MetLife.”
4
momentum At Investor Day 2008, MetLife CEO Rob Henrikson described the advantages of being “big, strong and trusted.” Here’s a look at how MetLife’s Institutional Business plans to use those qualities to set itself apart in today’s marketplace.
F
A new strategic plan
Six goals for growth
employers are feeling the effects of the
Institutional’s work in 2007 and
Institutional has six goals for growth,
tough market conditions. Benefits
2008 has prepared it well for the
which serve to guide it toward
managers, chief financial officers and
opportunities ahead. Last year,
improved profitability.
treasurers are sorting through how the
Institutional set a new strategic plan,
economic environment will impact
defining a common vision and the
One of these is positioning itself as
their business. They are focused on
activities that would matter most to
benefits and retirement experts. To
managing their benefit liabilities so
profitable growth. It placed an
ensure customers and brokers think
they can fulfill their obligations to
emphasis on its benefits and retirement
of MetLife when they have a benefits
employees and retirees. They are
expertise; expanded in high-potential
challenge or need, Institutional has
concerned, too, with protecting their
markets such as pension closeouts and
developed a comprehensive thought
balance sheets and reducing costs.
the small market; and approached
leadership strategy. It makes use of
customers in a more holistic way.
research, tools, events and advertising
At the same time, employers know that
Institutional also made investments
to communicate its value proposition.
benefits play an important role in
in its operating model and began to
attracting and retaining talent. So,
focus on bringing down expenses. It
It also leverages the media as a conduit
they are looking for solutions that
finished the year achieving excellent
to reach key audiences. To ensure
allow them to deliver attractive
top-line growth.
success, Public Relations and
rom small business owners to large multinational organizations,
Institutional Business sets a new strategic plan to capture today’s market opportunities
Institutional Marketing are partnering
benefit programs. Institutional’s 2009 Business Plan builds
closely with the Sales and Service
Companies aren‘t the only ones facing
on this momentum. Says Bill, “In
organizations to ensure that each
uncertainty and risk. So are their
creating the plan, we took a realistic
initiative is understood and leveraged
employees, who are feeling the
look at the current economic
in market because, ultimately, that’s
economic crunch, too. They are looking
environment. From that, we examined
where the rubber meets the road.
for ways to build financial security
what we needed to do to win in the
and are increasingly turning to their
market; to simplify our organization;
Institutional is also focused on
employer for benefits and retirement
and to best tell and reinforce our story
developing and expanding its
advice at work.
to customers, brokers and others.
relationships at the large end of the
We also focused on activities that
market. This includes increased
would support the enterprise’s
cross-selling to existing large customers
strategic initiatives.
and creating relationships with new
There is a silver lining amid all this.
For Institutional, a Time to Lead
“During times of difficulty, companies
ones. It will expand upon the work it
turn to leaders; carriers who they can
“What we found was an opportunity to
began last year to focus resources on
trust,“ says Bill Mullaney, president of
sharpen our focus even further to
those sales opportunities that have the
Institutional Business. “We have the
expand upon the progress we made
most growth potential. (In October, the
opportunity to set ourselves apart
last year.” The plan, says Bill, is a
Sales Organization moved the line of
because we understand the issues and
combination of activities that will fuel
demarcation between Mid-Large and
can help our customers make sense of
growth, and others designed to make
National Accounts to 15,000 lives. It
the challenges. Our benefits and
Institutional a more decision-driven,
had been 25,000.)
retirement expertise, and our
effective organization. It also
financial strength, have never been
continues to place an emphasis on the
Institutional will continue to expand
more valued.” Currently, Institutional
fundamentals, such as risk selection,
its core competencies into new or
Business provides benefit solutions to
maintaining strong relationships with
underpenetrated areas that offer the
over 60,000 group customers, including
customers, getting pricing and under-
ability to grow profitably as part of its
more than 90 of the top 100 FORTUNE®
writing right and managing expenses.
strategy. One good example is in the
500 companies.
small market, which is a growing
VIDEO GALLERY Watch the video: Bill Mullaney discusses Institutional’s opportunities Associates in most U.S. administrative locations can view a replay of the recent Institutional Town Hall meeting mentioned in this article. Go to the MetLife Video Gallery at videogallery.metlife.com and click on "Meetings and Town Halls."
Continued on Page 9 >
Institutional Business: Six Goals for Growth
1
2
Position ourselves as benefits and retirement experts
Deepen, extend and leverage our large market franchise
4
5
Innovatively transform our operating environment to improve the efficiency and effectiveness of our business models and to make it easier to do business with MetLife
Continuously focus on growing, developing and optimizing our talent
3 Leverage existing competencies to expand into selected new or under-penetrated markets
6
Leverage our mergers & acquisitions (M&A) and integration capabilities to take advantage of opportunities in the ongoing consolidation of our industry 5
January 2009
Understanding the Underinsured An update on MetLife’s “Life Insurance” Strategic Initiative
ne of MetLife's strategic growth initiatives — “Life
O
In-depth interviews with middle market consumers reveal
Insurance” — focuses on re-connecting life insurance to
that addressing more immediate financial matters, like
the middle market, defined as adults, ages 25 to 44 with
paying off credit card debt, has taken precedence over
household incomes of under $100,000. Of these 17.9 million
longer-term financial goals of savings and protection. For
households, nearly 50 percent not only recognize the need
many of these consumers, losing a job is a more immediate
for life insurance coverage, they also intend to buy in the
and tangible concern than premature death. These findings
next year. Unfortunately, 80 percent of those who say they
provide insight into why life insurance is no longer the
will buy won't end up making a purchase. As a result, this
social or cultural “must do” that it once was for middle
market remains significantly underinsured and represents a
market households.
tremendous growth opportunity for MetLife. Middle market consumers who do plan to purchase life Over the past three months, MetLife‘s Life Insurance Strategy
insurance often don‘t succeed. They turn to the Internet for
Team has conducted consumer and market research to better
information and grow confused because they get widely
understand these consumers and identify the reasons why so
varying recommendations regarding how much and what
few ultimately purchase life insurance. The insights from
kind of life insurance they need. Many are influenced by
this research reveal two sets of barriers. One set keeps
high-profile personal finance commentators who often
consumers out of the buying process altogether, while the
warn against aggressive sales people and overly complex
other drives all but the most motivated consumers out of the
and expensive insurance products. These consumers often
process as they attempt to buy.
assume coverage will cost too much for their budgets. The lack of easy-to-find cost information drives many out of the buying process early on. Those who actually do apply for coverage often confront a complicated and cumbersome underwriting process that can be more time consuming and complex than expected.
Global Growth
Life Insurance
Retirement Income
As a result of these and other research insights, the Life Insurance Strategy Team has a clear sense of the numerous barriers standing between the middle market and the life insurance coverage they want and need. The team is using
Consolidation
this information to develop strategies to remove these obstacles, thereby expanding the number of middle market consumers “in-market” for life insurance and simplifying the
Operational Excellence
purchasing process. Be sure to stay tuned to Momentum for more updates on the middle market initiative and how
Opportunity: The Middle Market
“Life Insurance” is one of the three “pillars” of MetLife’s Strategic Framework
MetLife is re-connecting with this underserved segment. ■
Adults age 25 – 44 Household income: > $100,000
Associates “Take the Lead” in Faster, Better Lead Processing Another example of an associate-generated Operational Excellence initiative
rassroots efforts to pursue
G
In the past, metlife.com leads have been
Partnering with Individual Business, the
Operational Excellence are springing
processed manually. A call center
Customer Sales and Service Group and
up all over. In another instance of
associate would receive the lead
the Information Technology Group, a
associates taking personal responsibility for
information in one system, check it and
plan was developed to automate those
making things “better, faster and more
then transfer it to another system
leads that met our quality tests while
profitable,” members of Global Brand &
so that an Individual Business sales
retaining the current manual process for
Marketing Services‘ Interactive & Web
representative could follow up. This
only those leads that required further
Solutions recently identified and took
process took a couple of minutes per
investigation. All this was done without
action on opportunities to improve the sys-
lead and, therefore, a few dollars in
creating any new technology systems.
tem for processing Web-based leads.
additional costs for each lead processed. With MetLife’s Internet lead volume
Within a short time, the new process
quadrupling from 26,000 leads in 2006
was put in place. Today, 80 percent of
to more than 100,000 leads in 2008,
leads are immediately automated from
this process was becoming expensive
metlife.com to our lead management
and not providing an optimum
system, eLeads. What’s more, even the
customer experience.
20 percent that aren’t fully automated are entering the right system rapidly.
“As part of the Life Insurance Strategy effort, the group examined some of
The project has started delivering on
our competitors’ Web practices,” says
its promise and should more than pay
Manish Bhatt, Interactive & Web
for itself within six months while
Solutions. “They found that many other
immediately providing a much improved
companies were able to follow up on
customer experience. Projected savings
Internet leads within a few hours. Our
for the project are close to $200,000 per
delay in responding to the metlife.com
year — and that’s not even counting
leads was not only expensive in terms of
projected increases in sales from
operating costs, but was also resulting in
metlife.com leads. ■
lost revenue opportunities. We knew we Thanks to associate action, leads from our corporate Web site, metlife.com, are now processed more efficiently.
6
could take charge to make the process work better.“
momentum etLife Auto & Home® knows the importance of
M
home customers for both the Retail and Group distribution
consistently delivering solid performance, especially
systems. This section of ‘Core Customers’ is more than just a
in trying economic times. But for Bill Moore, president of
niche; it’s a solid market segment comprising approximately
MetLife Auto & Home, consistency isn’t enough; he wants
40 percent of the U.S. population.
Targeting the Core A look at MetLife Auto & Home’s “Core Customer” project
top- and bottom-line growth. “Research shows that this customer group generally desires “Right now, we are a strong competitor in the market, but we
having multiple products with one brand-recognized company,”
could be more,” said Bill. “We have benchmarked ourselves
Bob said. “They are concerned with
against the industry leaders, and I firmly believe we have the
protecting the assets they’ve
people and the products — as well as ample strength in our
accumulated over time and understand
distribution systems — to be the very best. Our biggest
the importance of insurance that
opportunity is top-line growth. I’ve challenged everyone at
addresses their complex needs. Most
Auto & Home to grow premium at twice the rate of the
importantly, the key to gaining these
industry average. It is going to be tough, but with our team
customers is to understand the key life
of talented associates, a lot of hard work and smart decisions,
events that cause them to shop for
I know we can step up and meet this goal.”
insurance and then provide the necessary marketing material to
With input from the Auto & Home Officer Group, teams were
attract them at these opportunities.”
identified to develop a plan to fuel growth, setting a new course that relies on the company’s knowledge and experience
Since completing the research and analysis phase, Auto &
to identify and concentrate on targeting profitable markets
Home has started to develop state-of-the-art tools to allow its
and market segments. This new strategy refines Auto & Home’s
sales force to execute marketing programs targeted at the
focus into six major growth initiatives (see sidebar).
‘Core Customer’ key life event shopping points. Auto & Home then identified the best states and regions in which to achieve
While all these initiatives are vital to focused growth, the
focused growth and immediately began to overlay factors such
company is finding tremendous potential in the ‘Core
as ‘Core Customer’ data, market share opportunities, volatility
Customer’ initiative. It‘s designed to give Auto & Home a
management and regulatory environment to identify areas
better understanding of who its best customers are, thereby
that were ripe for growth — and here the market expansion
helping to identify the best prospects for new customers
strategy came together.
Members of the Core Customer team: (Top left to right) Marisa Riccardi, John Delemontex, Bob Lundgren, Tracey MacMillian, Rob Roche, Luigi Fava; (Bottom left to right) Camille DelPadre, Paul Morin, Sueanne Comerford, Jean McGinn.
MetLife Auto & Home’s Growth Initiatives > Market Expansion
going forward. “Once we had a good under-
The “Core” in action
standing of who
> Pricing Sophistication > Expanded Distribution
our ‘Core
> ‘Core Customer’
research — a detailed analysis of those customers who provide
Customer’ is,
> Enhanced Internet Capabilities
the company with the greatest likelihood of long-term
where they live
> Expense Management.
profit – to its business strategy. This enhanced understanding is
and which states
being used to create a more sophisticated approach to product
have the best
Already, the company has began to apply ‘Core Customer’
development, branding, pricing, underwriting and service. environment “Studies of the most profitable companies found that in
for growth,
difficult economic periods, focusing on your competitive
Auto & Home began
advantages and understanding who your most profitable
putting this strategy into action,”
customers are will sustain you through the ups and downs of
said Bob.
the market,” said Bob Lundgren, vice president of Auto and Home’s Corporate Product Development and Marketing and
“Our State Management organization
executive sponsor of the Core Customer Initiative. “Those
began working with local sales man-
companies that best understand the source of their most
agement to plan and execute state
profitable business and then focus on increasing that market
strategies based on this research.”
share are consistently the most successful.” As a result, Auto & Home has tailored its
Opportunity born from understanding
product offerings to be in line with ‘Core
Under Bob’s direction, the ‘Core Customer’ Initiative began to take shape more than a year ago. His team used several tools
Customer’ values and is preparing to launch an enhanced sales effort in selected states. With
to gain a better understanding of consumers’ demographics and psychographics in order to identify the best auto and
Continued on Page 11 >
MetLife Auto & Home’s Core Customers Research reveals that MetLife Auto & Home’s core customers are segmented into three “life stage” groups: Young Achievers
Responsible Families
Experienced Planners
Typically well-educated singles and childless couples
The presence of children define this under-45-years-
Upscale, generally over-50-years-old empty nesters in
in their late 20's, 30’s and early 40’s. Many with
old age group. These households generally contain
larger, older homes. They have disposable cash to
executive and professional jobs are found here but
families living in larger homes beyond the nation’s
finance active lifestyles that are rich in travel,
they also extend to middle-class households. Found
beltways. With their disposable cash and sophisticated
cultural events, exercise equipment and business
mostly in the suburbs and exurbs, upscale foreign
tastes, they can indulge their children with the latest
media. These folks are also community activists who
auto brands are typically in their driveways and the
technology and sporting gear. The adults read news-
write politicians, volunteer for environmental groups
latest technology is in their homes. Outdoor sports
papers and magazines, buy expensive cars and take
and vote heavily in elections.
and travel are key leisure activities.
frequent vacations.
7
January 2009
The Economy Is Down: Will Fraud Go Up? At MetLife, helping prevent fraud is more important than ever — and easier than you might think
ou read it in the newspapers, you
Y
perpetrators regularly take steps to
see it on TV: In response to today’s
avoid being caught, including stopping
historic economic downturn, companies
at the first sign of suspicion.
private — are putting an increased
For this reason, the SIU often relies on
information, such as overtime that
emphasis on ways they can operate more
the eyes and ears of MetLife associates
was not actually worked or ineligible
cost-efficiently. For our industry, that
in order to detect and prevent fraud
beneficiaries.
includes combating a particularly sinister
committed by individuals both outside
drain on the financial resources of
and within our company. Of course,
cash disbursements; often concealing
companies like MetLife.
there’s no question that most
the activity by using a previously
associates at MetLife — as well as most
reimbursed receipt.
independent agents and brokers we do
Insurance Fraud, a nonprofit
business with – are honest, dedicated
fraud-prevention organization, accurate
people who would never consider
statistics about the cost of insurance
stealing or engaging in fraudulent
If companies have safeguards and
fraud are hard to come by. That’s
activities. Yet, just one or two instances
procedures in place to prevent fraud,
because much fraud goes undetected —
of fraud could have potentially serious
how do fraudulent activities like the
and even when it is detected, it remains
consequences for MetLife in terms of
ones listed above go undetected? Many
unreported. Nevertheless, in its 2007
both financial loss as well as impacting
reported cases of internally generated
annual report, the Coalition estimated
our all-important reputation as a
fraud share some similar characteristics
that theft through fraud amounts to
company our clients can trust.
that help us understand how fraud
There’s safety in process
can occur. When a company’s stated
Awareness is the key
purchasing procedures are not followed or are circumvented, it’s easier for
economy means the fight against fraud may become more difficult.
Naturally, the first step to spotting
individuals to conspire with vendors and
After all, tough financial times will
insurance fraud is to understand what
suppliers. If supervision or cross-checks
stretch the resources of fraud fighters
fraud is, as well as the most common
become lax, employees are sometimes
and increase the motivation of
types of fraud that have been
tempted to “take the risk.” This can be
unscrupulous individuals to engage
committed against insurance companies
particularly true when the individual is
in fraudulent activities.
in the past. In general, fraud involves
considered to be so loyal or above
deliberate deception or misrepresenta-
reproach that their work is never
tion for personal gain. In terms of fraud
properly checked or authorized — or
that is generated from individuals inside
when supervisory personnel are given
a company, this might include:
too much individual authority to
Fraud Hotline: 1-800-462-6565 Hiding in the quiet At MetLife, our Corporate Ethics and
approve payments or purchases.
Compliance department engages in a robust anti-fraud program that is driven by our Special Investigation Unit (SIU). They are responsible for monitoring and
> Collecting, but not depositing, customer funds or premiums. > Soliciting customers to participate
This is why no company can rely solely on the efforts of any single team to
implementing the Corporate Anti-Fraud
in “bogus” investments or
detect and prevent fraud. It’s a task that
Policy and Fraud Prevention Plan. But
outside business.
takes everyone’s help — and it’s easier
no matter how well-organized or
> Making purchases at unauthorized
to do than you might think. Simply be
professional it is, the SIU team can’t
rates (in return for kickbacks) or
diligent at all times about following
be everywhere and see everything,
dealing with bogus customers
the cross-checking and authorization
particularly since fraud often involves
or suppliers.
procedures in your area. If you believe
“quiet activities” — that is, small
> Improperly accessing company
you’ve spotted a problem, talk to your
amounts of money stolen or
computer systems to acquire sensitive
manager or call MetLife’s Compliance
misappropriated occasionally over long
customer information or account
and Fraud Hotline at 1-800-462-6565.
periods of time. Making fraud even
data, and then selling or otherwise
At a time when the economy is down,
harder to spot is the fact that
misusing the data.
it’s all the more important that
> Purchasing items for the company but having them shipped elsewhere; or
8
> Falsifying expense reports or petty
According to the Coalition Against
more, said the Coalition, a shaky
Scenes from “Fraud Awareness,” a new course for associates on MyLearning on my.metlife.com. Enroll today by clicking on the “MyLearning” tab, then enter “Fraud Awareness Course” in the “Search Category” field. Help MetLife protect our enterprise from fraud.
then taking it for personal use. > Falsifying payroll or benefit information, including false
and institutions — both public and
billions of dollars each year. What’s
MetLife’s Compliance and
writing off company property and
everyone’s attention to fraud goes up. ■
momentum
D
The view from those who’ve experienced it
hosted the inaugural GOSC Customer Day in Newark, NJ.
During the day, panel discussions were led by the leaders of
Attended by more than 80 business leaders from across
the GOSC, leaders of the businesses and senior executive
MetLife, the program took attendees on a virtual visit to the
sponsors. These panels provided insight into the GOSC from
GOSC through the use of a variety of interactive media.
varying perspectives; that of the GOSC customer, process
uring fourth quarter 2008, Global Sourcing Solutions (GSS) and the Global Operations Support Center (GOSC)
owner and Operations Director. Collectively, these sessions “While we cannot take everyone to the GOSC in person,
afforded attendees the opportunity to learn about the
our goal today is to bring the center to you and provide
planning, development and management of the Center
information and insight about our strategy, work practices
and to hear first-hand experiences directly from businesses
and capabilities,” remarked Kush Kamra, vice president and
that have moved work there.
Global Operations Support Center Customer Day Inaugural event showcases GOSC strategy, work practices and capabilities
managing director of the GOSC. “In addition, this is an opportunity for you, as business leaders, to foster a
“Being able to hear directly from someone who has gone
community through which ideas, suggestions and learnings
through the migration process, and being given the
can be shared and leveraged across MetLife as we continue to
chance to ask questions and leverage their experiences
grow the GOSC.”
is so valuable,” according to Rhonda Sloan, a MetLife Auto & Home® process owner planning to move work
Even more relevant today
to the GOSC in the near future.
In opening the event, Nancy Hanslowe, vice president,
“To have the opportunity, as a customer of the GOSC,
Global Sourcing Solutions, articulated one of the themes that
to share our experiences with businesses looking to
resonated throughout all the presentations, discussions and
take advantage of its capabilities is key,” according to
activities: “Given the current economic environment and the
Kurt Shingledecker, vice president, Institutional Business.
growth plans of our businesses, the GOSC, which we started
“This exchange of information and dialogue can help
planning 4 years ago, has become even more relevant.”
facilitate the process for future migrations to the GOSC.”
Further emphasizing the GOSC’s key role, Maria Morris,
A walk through the Capability Gallery
The program booklet from MetLife’s first GOSC Customer Day event.
executive vice president, Technology & Operations, discussed the enterprise’s focus on Capability Sourcing as an integral
A highlight of Customer Day was the Capability Gallery, a
part of Operational Excellence. “Being a global company
self-guided tour of interactive presentations illustrating
means sourcing the right capabilities at the right costs from
different facets of the GOSC. Leaders of the GOSC were
the right sources in the U.S. and around the world,” she
available to walk visitors through each of the multi-media
began. “In doing so, we must optimize quality, productivity
displays. Featured topics included the GOSC’s capabilities,
and customer satisfaction through our MetLife and strategic
with a focus on process and quality improvement. Visitors
partner operations centers. The GOSC is a proven component
also got a sneak preview of our new MetLife-owned and
of the global capability network that we are building to
operated facility that will house the GOSC in Noida, a
deliver for our customers.”
suburb of Delhi.
Maria then introduced Peggy Fechtmann, executive vice
In closing, Kush Kamra attributed the GOSC’s success to those
president and head of Capability Sourcing, who recently
in attendance as well as partners across the enterprise. “The
The GOSC currently supports more
joined Technology & Operations to formulate the cross-
story that started four years ago has been envisioned and
than 48 MetLife business processes
enterprise Capability Sourcing initiative. “The objective of
executed by the people here today,” he began. “From our
and has more than 800 associates.
the enterprise-wide initiative is to create a sourcing strategy
first process that was migrated in 2007, our success is a direct
that will outline MetLife’s future state and execution plans,”
result of the support, dedication and teamwork of colleagues
Peggy added. “The GOSC is an integral part of MetLife’s
near and far. The Center, with 48 processes currently
sourcing capabilities. Today’s virtual visit will allow you to
supported by over 800 associates, continues to grow and I
touch and feel it, and further understand and appreciate
am excited about what we, and the GOSC, can accomplish
how it can support your business.”
in the future.” ■
segment. The goal is to make the Small Market a big business for MetLife. The
“Every day we hear people say, ‘Thank you, MetLife.’”
current focus is on the development
Did you know?
Bill was joined by his Planning Board for a town hall in December where they outlined the plan. (Associates in
and implementation of an operating
These are just a few initiatives that will
most U.S. administrative locations can
model for the organization that
propel Institutional’s growth and create
view a replay by going to the MetLife
reduces cost and strengthens service.
a more efficient organization. To
Video Gallery at videogallery.metlife.
To gain greater access and penetration
support its success, Institutional’s
com and clicking on “Meetings and
in this segment, Institutional is going to
operating model is being enhanced to
Town Halls.“) He asked associates to
work on establishing the right broker
reduce complexity and to make it easier
stay focused on the fundamentals and
relationships, as well.
to execute on decisions. Institutional
never forget the significant role they
is focused on enriching the customer
play in bringing financial security and
There is a lot of opportunity in the
experience, reducing expenses and
peace of mind to the individuals
retirement space, too, particularly in
investing in the processes needed to
Institutional ultimately supports.
the areas of pension closeouts and
differentiate itself. It will do this
income annuities. Institutional is looking
through operational reengineering
“Every day we hear people say, ‘Thank
to identify and cultivate new partnership
efforts, improvements to technology
you, MetLife.’ . . . What we do is
opportunities to distribute annuity
and workflow, and leveraging the
enormously important. . . . It’s the work
products, including through Target Date
Global Operations Support Center.
that you do every day that allows us to
Funds and 401(k) plans, for example.
Cont’d from Page 5
For Institutional, a Time to Lead Institutional Business sets a new strategic plan to capture today’s market opportunities
be all that we can be.” ■
9
January 2009
A Lesson in Collaboration A new cross-enterprise partnership helps MetLife make its mark in the Education Industry
F
or years, MetLife has been a leader in the Education
events, including an exhibit booth, workshops and a
Industry, both as a company and as a corporate citizen.
technology showcase, which were all well-attended by
Recently, a new cross-enterprise partnership was formed to
ASBO members.
coordinate MetLife’s strategies in targeting this growing industry segment so that our enterprise can make the most
“We are excited about the synergies being created as a result
of potential sales opportunities.
of our partnership with Institutional Business. Together, we’re able to provide a holistic approach and offer a full spectrum
Segment marketing managers Paola Cabrera, Institutional
of employee benefits unlike anything else available in the
Business, and Shelly Ledford, MetLife Resources, are both
marketplace,” said Thomas G. Hogan Jr., senior vice president
focused on expanding MetLife’s presence in the Education
and head of MetLife Resources. “Recent market conditions
Industry. While they approach the market from different
prove that clients depend on financially strong companies,
channels, the two organizations meet regularly to identify
and our partnership with Institutional serves to reinforce
opportunities for collaboration, including event marketing,
MetLife’s value proposition. The result is a better bottom
sponsorships and thought leadership initiatives. For example,
line for the enterprise and a life-long relationship with
they recently made the following items available across both
mutual customers.“
organizations to help increase awareness of issues impacting This joint sales effort between the Individual and Institutional
the Education marketplace:
Businesses is further supported by special liaison teams that Representing MetLife at the CUPA-HR National Conference & Expo are (left to right) Paola Cabrera, Institutional Marketing; Matt Smith and Angela Winingham, Employee Benefits Sales; Shelly Ledford, MetLife Resources.
> An Education Industry supplement to the 6th annual Study
facilitate market development through existing relationships
of Employee Benefits Trends, which Institutional Business
at the local level. The Individual Business liaison group, led
released earlier this year.
by Jeff Tulloch, was created to leverage and strengthen
> MetLife Resources’ 403(b) White Papers and Web seminars,
Institutional and Individual Business relationships and
which help plan sponsors comply with the changing
competencies. They work closely with MetLife Resource’s
benefits regulations effective in 2009.
Worksite Benefits Team, led by Doug Peters, to identify opportunities to enhance an employer’s benefits solution
Ongoing discussions have facilitated cross-enterprise
with products and services offered throughout the enterprise.
planning and participation in several Education Industry
As awareness grows across the two sales channels,
conferences. Last year, MetLife became a member of the
representatives from both organizations have begun working
College and University Professional Association for
together to secure a number of other collaborative meetings to help identify other potential opportunities.
Human Resources
Anthony J. Nugent, senior vice president, Employee
(CUPA-HR), an
Benefits Sales, feels that with the growing demands on HR
organization
professionals, it’s important that we continue to develop
that serves
cross-enterprise partnerships to make benefits decision-
more than
making easier for our clients. “I think partnering across
10,000 higher
the enterprise should be a key strategy now more than ever,”
education Human
said Anthony. “It is critical that both organizations be aligned
Resources
and go to market as one team.”
professionals at more than 1,600
Giving educational leaders a unique voice
institutions across the country and
Corporate Contributions is another partner that focuses on
internationally.
the education sector. MetLife Resources and Corporate
At the CUPA-HR
Contributions work together with the National Association of
National Conference
Secondary School Principals to sponsor the Principal of the
last October, Institutional Business invited
Year Program. “This important program recognizes the
MetLife Resources to attend so they could
contributions of principals across the country, and helps
jointly network with higher education
demonstrate MetLife’s commitment to principals as leaders
decision makers at workshops and an
in the education market,” said Rick Love of Corporate
exhibit booth promoting the breadth
Contributions. “In addition, we publish The MetLife Survey
of products and services offered
of the American Teacher. This Survey series shows that we are
by MetLife.
serious about what educators think by providing them with a public platform.”
Just a sample of the MetLife informational materials targeted at today’s Education Industry.
Making the grade at all educational levels In the spirit of partnership, representatives from MetLife In addition to the higher education segment, MetLife
Resources and Institutional Business are invited to events
Resources demonstrates continued commitment and support
associated with the survey’s release each year. In addition,
to K-12 school districts throughout the country as a Platinum
MetLife Foundation is a long-time supporter of issues in
Sponsor of the Association of School Business Officials
education, further demonstrating MetLife’s commitment to
International (ASBO). Ongoing support includes participation
the importance of quality education.
in their Annual Meeting and Leadership Conference, as well as providing twenty scholarships for new school business
This solid working relationship between Institutional Business,
administrators as part of their Bridges to the Future program.
MetLife Resources and Corporate Contributions is a great
At last fall’s Annual Meeting, MetLife Resources invited
illustration of how, through collaboration, the enterprise
Institutional Business to join them at a number of marketing
can create win-win scenarios for MetLife and its customers — and, in the case of the Education Industry, put MetLife in a “class by itself.” ■
10
momentum
A
s associates work together to
continue to be sure that our initiatives
> the number of employee-led diversity
are actionable and measurable, and
groups has grown over the past three
profitable MetLife, diversity continues
focused on ensuring that they continue
years from 10 to more than 40;
to be a business imperative, embedded
to contribute to MetLife’s success in the
in the very fabric of the company.
marketplace.
build a faster, better, more
Diversity: Where Do We Go From Here?
> more than five percent of 2007 procurable spend was with minority-
According to Kathy Henkel, senior vice president, Human Resources, "Our com-
Last year, MetLife continued to be
mitment to diversity has differentiated
recognized for some of the great
us not just as an employer, but as a
strides made when it came to diversity.
“Our continued commitment to diversity
provider of financial solutions to many
As seen in the December 2008 issue of
has created a culture where embracing
different individuals and employers,
Momentum, MetLife continues to be
varied perspectives is a key part of the
and as a buyer of products and services.
singled out for its successes by being
way we manage our business, from daily
Diversity is integral to MetLife and
named a Top 50 Company for Diversity,
decision making to strategic planning
continues to make good business sense.
as well as a desirable company for
and career development,” says Kathy.
That’s why we take every opportunity
women, diverse MBAs, GLBT employees,
“But as well as we’ve done and as far
to ensure that our focus on diversity
working mothers and women of color.
as we have come, it’s important that we
continues to make MetLife stronger
Assisting in this success are the many
continue to raise the bar. As Rob
and more competitive and continues
champions who serve as advocates for
Henrikson mentioned at Investor Day,
to create lasting customer and
diversity within our company. Thanks to
we stand out because we are ‘big,
shareholder value.”
them and the EDC, MetLife has made
strong and trusted.’ There’s no doubt
significant strides in areas such as lead-
that a major component of that
Our diversity strategy around our
ership accountability, taking diversity
strength is our focus on the needs of
workforce, workplace and marketplace
education to the next level and tapping
today’s diverse marketplace, as well as
is built on a strong foundation, driven
into marketplace strategies. Some of
the breadth of our diverse internal
through the leadership of our
our success includes:
talent. This is what drives innovation,
and-women-owned businesses.
As we enter 2009, Diversity continues to be key to MetLife’s business strategy
makes us better able to serve customers
Enterprise Diversity Council (EDC). We are proud of the way we have evolved
Diversity at MetLife
> over 7,000 associates participated in
and gives us a distinct, sustainable
our diversity strategies such that many
small-group Diversity Dialogue sessions
competitive advantage in the
are fundamental to the way we do
hosted by senior leaders to discuss
marketplace." ■
business. We have to date and will
strengths and areas of improvement;
I
n November, Lisa Weber, president of Individual Business and MetLife Auto & Home®, was a featured panelist at the fourth
Lisa Weber Gets PINK!
annual PINK Magazine Conference series event in Atlanta, GA.
PINK — a national women’s business magazine — hosted the session as part of a seven-city conference series held at various locations across the country. The November conference featured some of America‘s most influential women in business and
Executive Group member speaks at national women’s business conference
allowed attendees to network and share tools, tactics and strategies for business success. MetLife’s Individual Distribution department and MetLife Auto & Home's Diversity Steering Committee collaborated as sponsors of the Atlanta event. Lisa was one of six female business leaders who spoke on The Women’s Panel, an hour-long discussion that focused on discovering work-life balance, building career success stories and learning valuable business lessons. ■
this new strategy in place and aspirations of growth, Auto &
of Auto & Home’s ‘Core Customer’ also fits into MetLife’s
Cont’d from Page 7
Home is expanding and leveraging its multiple distribution
retirement and ‘New Middle Market’ life insurance strategy.
Targeting the Core
systems to reach more customers, especially in growth regions.
“We have a lot of hard work ahead of us in the coming year if we want to take serious strides toward growing at twice the
Broader implications for the enterprise
industry average. I’m proud of our associates who have banned
This ‘Core Customer’ research also has the potential to impact
together to help make this strategy a reality,” said Bill. “We are
other MetLife lines of business. Part of the value Auto & Home
confident this initiative will create a stronger targeted sales
brings to the enterprise is its ability to provide numerous
plan resulting in increased revenue and earnings.” ■
A look at MetLife Auto & Home’s “Core Customer” project
cross-selling opportunities. According to Bob, a solid portion
Remember MetLife’s Brand Promise All Year Long As associates of MetLife, it's up to us to deliver on the brand promise and keep it top-of-mind 365 days a year! So for 2009, we've created an online quick-reference calendar featuring our brand promise. See mymetlife.com to download your own 2009 calendar today!
11
January 2009
A New “Go Green” Achievement!
W
e did it! In November, Momentum reported that, in
Last summer, LIC associates were asked to participate in an
addition to being awarded Energy Star certifications
online LEED Survey — one of the prerequisites for achieving
for nine of MetLife’s sites, our enterprise had applied for a
LEED certification. An overwhelming 92 percent of LIC
LEED (Leadership in Energy and Environmental Design)
associates participated.
certification for our Long Island City, NY facility. Just as this edition of Momentum was going to press, we The LEED program is run by the U.S. Green Building Council,
learned that the Council has awarded MetLife a Silver LEED
a nonprofit organization composed of more than 15,000
for Long Island City! “This is an achievement that the entire
organizations from across the building industry that are
company can be proud of,” said John Vazquez, vice president,
working to advance structures that are environmentally
Corporate Real Estate. “I want to thank our Corporate Real
responsible, profitable and healthy places to live and work.
Estate team, our building management partners Cushman &
Nationwide, less than 100 commercial buildings have
Wakefield, and all MetLife associates who conscientiously
attained LEED certification.
conserve energy and follow ‘green’ practices. It has truly been a team effort, and we continue to seek LEED designations for additional MetLife sites.” ■
Momentum Readers: We Heard You! In a recent survey, associates provide ideas and inspiration to our editorial team
uring the final quarter of 2008,
D
plan to act on many of your suggestions,
It’s also clear that while a majority (more
MetLife invited a randomly chosen
including those on editorial content,
than 56 percent) prefer the printed
group of associates from across the
cost efficiency, new ways to distribute
version, there is much we can do to
enterprise to give us their views on
Momentum and more.
improve associates’ awareness and readership of Momentum online. (Only
Momentum. We asked whether and how frequently associates read
It was clear that great majority of
about half of respondents were aware
Momentum, what kind of value they
associates surveyed continue to read
that Momentum is available online on
get from the publication, the types of
Momentum and find value in it.
my.metlife.com. Of those, just 26
articles they’d like to see more of, their
Some highlights:
percent read it “every month” or
preferences for reading Momentum
> 63 percent read Momentum “every
“almost every month.”)
month” or “almost every month”
in paper format versus online, and much more.
(only 8 percent “never” read it)
Our thanks to everyone who took the
> 72 percent feel the publication is
time to participate. As we make moves
We were pleased to receive so many
an important part of MetLife’s
to improve Momentum, we’ll repeat the
responses, along with a wide array of
communications to them
survey to gauge your reaction. So if you
thoughtfully considered ideas on what to do (and what not to do) to make Momentum the best it can be. Our editorial team is now studying the results of the
> Nearly 80 percent feel it helps
weren’t included the first time around,
them understand MetLife’s goals
watch for future survey invitations. In
and businesses
the meantime, remember that you can
> 63 percent feel it helps them be better “brand ambassadors”
always contact us by sending an email to momentum@metlife.com. We welcome your ideas and suggestions. ■
Momentum survey and we
What value do you get from Momentum? During the Momentum Survey, associates were given several “value statements” and asked to rank them from “Strongly Agree” to “Strongly Disagree.” Here’s how they responded to just a few of those statements.
Momentum helps me understand MetLife’s business.
57.8%
g g g g g
Momentum makes me proud of MetLife’s community involvement.
Momentum shows me how MetLife “lives” its corporate values.
22%
27.2%
18.8%
0.4%
0.4%
0.6%
52.7%
55.3%
Momentum makes me feel connected to the larger MetLife community.
22.3% 0.8%
50.6%
3.9%
2.5%
3.5%
6.3%
15.9%
17.2%
21.9%
20.1%
511 1 Strongly Agree 1,302 2 Agree 3 Do Not Agree or Disagree 520 179 4 Disagree 5 Strongly Disagree 20
g g g g g
511 1 Strongly Agree 1,302 2 Agree 3 Do Not Agree or Disagree 520 179 4 Disagree 5 Strongly Disagree 20
g g g g g
511 1 Strongly Agree 1,302 2 Agree 3 Do Not Agree or Disagree 520 179 4 Disagree 5 Strongly Disagree 20
g g g g g
560 1 Strongly Agree 1,273 2 Agree 3 Do Not Agree or Disagree 505 4 Disagree 159 5 Strongly Disagree 19
Momentum is published by MetLife Internal Communications for associates enterprise-wide. Send questions, comments or ideas for stories to momentum@metlife.com. Vice President, Internal Communications: Susan Berger Editor: Greg Potter Contributors: Toby Axelrod, Trudie Bolles, Paola Cabrera, Caroline Campanelli, Rob Constantine, Judy Downey, Sarah Faria, Gina Gelman, Shelly Ledford, Julia Levy, Nancy Murray, Janine Wright PEANUTS © United Feature Syndicate, Inc., www.snoopy.com © 2008 MetLife, Inc. Printed in USA (0109) Statements made in this publication may constitute forward-looking statements within the meaning of the federal securities laws, including statements relating to trends in the company’s operations and financial results, the markets for its products and the future development of its business. MetLife’s actual results may differ materially from the results anticipated in the forward-looking statements asa result of risks and uncertainties, including those described in MetLife, Inc.’s filings with the SEC. MetLife specifically disclaims anyobligation to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise.
12
January 2009
momentum Featured Inside 2
2
“We Are Big, Strong and Trusted.”
4
5
At Investor Day 2008, MetLife explains why our value proposition truly stands out in a time of economic volatility.
5
6
Against the backdrop of one of the most tumultuous periods in U.S. economic history, MetLife’s senior leaders stood onstage last month,
6 describing in detail why MetLife is a great company to invest in. It was
7 Investor Day: an annual event at which MetLife faces some of the country’s mostinfluential stock analysts to talk about our financial
7
strength, our business results and the actions we’re taking to fuel
8
our growth. Continued on Page 3 >
A Unique Opportunity to Differentiate Ourselves
Rob Henrikson Chairman, President and CEO
Volume 11, Issue 1
ertainly in my lifetime with MetLife,
C
common stock. Another factor setting
Institutional arenas, we are in a unique
I’ve never seen a time like this
us apart today is our investment
position to take advantage of the
relative to the opportunities for our com-
portfolio, which is of very high quality.
marketplace in ways that others cannot.
economic climate. But never before have
Our capital strength, our sound
You've heard me say before that
we had the chance to so differentiate
investment portfolio and our diverse
MetLife stands alone. As I told the
ourselves in the financial services arena.
mix of businesses are important not
analyst community at Investor Day a
only because we are in the business of
few weeks ago (see article above),
In the turbulent markets we’re in today,
trust, but also because in this volatile
MetLife, more than our peers, is well
financial strength is at the forefront
environment, there has and will contin-
positioned to deliver long-term
and we have certainly done a lot to
ue to be a flight to quality. Customers,
success. As the new year begins, I
protect and fortify our strength in 2008.
investors and potential employees are
know there will be challenges, but I
We have taken decisive and thoughtful
attracted to MetLife because of our
also wholeheartedly believe that we
steps to demonstrate our strength and
strength and stability. They have faith in
are a great company with even
increase our opportunities for flexibility
our promises to be there for them in
better people. ■
and differentiation in the market,
the long run. Whether through organic
including raising more than $2 billion in
growth or acquisition, in the domestic
capital through a public offering of our
or international markets, or retail or
pany. True, we are operating in a difficult
< Be sure to visit Momentum online at my.metlife.com >
1
January 2009
momentum “We Are Big, Strong and Trusted.”
Featured Inside 2
At Investor Day 2008, MetLife explains why our value proposition truly stands out in a time of economic volatility.
2
4
Against the backdrop of one of the most tumultuous periods in U.S. economic history, MetLife’s senior leaders stood onstage last month, describing in detail why MetLife is a great company
5
to invest in. It was Investor Day: an annual event at which MetLife faces some of the country’s mostinfluential stock analysts to talk about our financial strength, our business results and the
5
actions we’re taking to fuel our growth. Continued on Page 3 >
6
6 7
7 8
A Unique Opportunity to Differentiate Ourselves
Rob Henrikson Chairman, President and CEO
Volume 11, Issue 1
ertainly in my lifetime with MetLife,
C
common stock. Another factor setting
Institutional arenas, we are in a unique
I’ve never seen a time like this
us apart today is our investment
position to take advantage of the
relative to the opportunities for our com-
portfolio, which is of very high quality.
marketplace in ways that others cannot.
economic climate. But never before have
Our capital strength, our sound
You've heard me say before that
we had the chance to so differentiate
investment portfolio and our diverse
MetLife stands alone. As I told the
ourselves in the financial services arena.
mix of businesses are important not
analyst community at Investor Day a
only because we are in the business of
few weeks ago (see article above),
In the turbulent markets we’re in today,
trust, but also because in this volatile
MetLife, more than our peers, is well
financial strength is at the forefront
environment, there has and will contin-
positioned to deliver long-term
and we have certainly done a lot to
ue to be a flight to quality. Customers,
success. As the new year begins, I
protect and fortify our strength in 2008.
investors and potential employees are
know there will be challenges, but I
We have taken decisive and thoughtful
attracted to MetLife because of our
also wholeheartedly believe that we
steps to demonstrate our strength and
strength and stability. They have faith in
are a great company with even
increase our opportunities for flexibility
our promises to be there for them in
better people. ■
and differentiation in the market,
the long run. Whether through organic
including raising more than $2 billion in
growth or acquisition, in the domestic
capital through a public offering of our
or international markets, or retail or
pany. True, we are operating in a difficult
< Be sure to visit Momentum online at my.metlife.com >
1
January 2009
Cont’d from Page 1
“We Are Big, Strong and Trusted.”
This year, the task was particularly important. Due to the rapid
continuing to stick to those fundaments in this time of
economic downturn in late 2008, newspapers, television and
financial turbulence, it will help us extend our lead in the
the online media have been full of stories about the dramatic
marketplace because of “the flight to quality” (the tendency
failures of some financial institutions and the troubling
for customers to flock to quality organizations in times
weaknesses of others. It was critical to prove to the Investor
of trouble).
Day audience that our enterprise shouldn’t be painted with the same brush — that there are some fundamental qualities
“We are well-positioned to weather the storm.”
about MetLife that make us different. Steve Kandarian, executive vice president and chief investment Those differences were summed up by CEO Rob Henrikson
officer, focused his comments on the state of MetLife’s
early in remarks when he flashed this phrase across the screen
investment portfolio. He acknowledged that today’s
above his head: We are Big, Strong and Trusted.
unprecedented downturn has impacted all portfolios, including MetLife’s. However, Steve said that “the strength
“Big is something that carries with it a lot of opportunities,”
of our portfolio is really important to contrast against the
said Rob. “We’ve shown you how we can grow using that
overall market and market indexes.”
strength of size — that differentiator — to our advantage.” To prove it, Rob reminded the audience that at Investor Day
Much of MetLife’s continued portfolio strength is due to
2007, MetLife predicted it would grow year-over-year revenue
our Investment Department’s proactive management. Steve
during 2008 at nine percent. “As I stand before you,” Rob
pointed out that, foreseeing trouble ahead in the real estate
said, “we’ve exceeded those expectations, growing at an
market, our portfolio managers began taking defensive action
11 percent clip.”
back in 2004, especially in the area of sub-prime mortgage holdings. He also said that in 2007, the department concluded
In a marketplace like today’s, “big, strong and trusted” also
that a recession was likely and then began repositioning the
comes to the forefront because in times of weakness and
portfolio accordingly.
uncertainty, people naturally place increased value in strong
Another major move bolstering the portfolio’s strength has
organizations. And what do they trust those organizations
been a reduction in our securities lending program. Securities
to do? “MetLife employees, agents, distribution partners,
lending is a common practice in our industry, enabling MetLife
policyholders, individuals and corporations,” said Rob, “trust
to profit by loaning out securities from our General Account.
us to protect our strength.” Rob then outlined some of the
At our program’s peak, about $50 billion in securities had
important actions MetLife took in 2008 to do just that (see
been loaned out. But through an organized reduction in the
details below in Rob’s column). As a result, Rob said, as of
program, that figure today is below $27 billion, reducing our
Investor Day, MetLife’s ratings in terms of our financial
exposure to risk presented by today’s market downturn.
strength and outlook had been affirmed by both Standard & Overall, Steve affirmed that MetLife continues to have a
Poor’s and Moody’s.
well-diversified portfolio across a wide variety of fixed Rob then discussed MetLife’s businesses, pointing out that
income and equity sectors. We also continue to focus on
we have previously talked to analysts about our strategy of
“underwriting securities ourselves” and to taking a strongly
growing the enterprise by focusing on our fundamentals. “It
proactive stance to portfolio management. So despite the
has created a very attractive track record,” Rob said, showing
turbulent times, Steve said, “because of the actions we’ve
a chart of MetLife’s 8.9 percent Consolidated Annual Growth
taken, we are well-positioned to weather the storm.”
Rate (CAGR) in revenue since 2003. And, Rob predicted, by
Continued on Page 3 >
A Major Theme at Investor Day: Operational Excellence Efficiency is always a distinct business
Rob Henrikson pointed out that
embedding of a continuous
advantage — but it’s particularly
MetLife expects at least $400 million in
improvement culture at MetLife.”
important when the economy is weak.
run rate expense savings by 2010 from
That’s why, at Investor Day 2008, all
Operational Excellence, generated
To see our senior leaders’ Operational
three of MetLife’s line-of-business
by both business and technology
Excellence slides summarizing their
presidents concluded their remarks
initiatives. But it’s not just those savings
2009 initiatives, visit Momentum
by summarizing of their Operational
that matter. As Bill Toppeta stated,
online. Select “Momentum” from the
Excellence initiatives for 2009.
“Perhaps the most important thing
my.metlife.com home page.
about Operational Excellence is the
2
momentum “I want to give you ‘A Tale of Two Cities.’”
“We can do things other companies can’t.”
Borrowing a book title from Charles Dickens, Bill Wheeler,
Encapsulating his area’s 2008 results, Bill Mullaney, president,
executive vice president and chief financial officer, described
Institutional Business, pointed to excellent revenue growth,
the market’s affect on MetLife’s 2008 financial results as “A
driven largely by record term life sales, record dental sales and
Tale of Two Cities.” We are being affected by the market’s
strong sales in the pension close-out business. He also said
impact on both our investment income and annuity earnings.
that, as a result of aggressive expense management, expense
If you back out those two factors, Bill said, you can see how
ratios, particularly in group insurance, are down dramatically.
Cont’d from Page 2
“We Are Big, Strong and Trusted.”
well MetLife has continued to perform. How are we generating this success in tough times? “We are To prove this, Bill reminded the audience that in 2007, we pro-
really benefiting from having a diverse set of businesses
jected 2008 operating earnings, excluding variable investment
within Institutional,” said Bill. “It allows us to weather the
income and annuity earnings, of approximately $2.5 billion.
kinds of changes we’re seeing in current markets, to capitalize
Our actual results, after excluding the same items and
on opportunities and continue to deliver long-term growth.”
one-time charges for Operational Excellence and Retirement and Savings, was $2.3 billion. Even that relatively small miss,
Specifically, Bill pointed to three trends that are affecting
said Bill, was driven in large part by our variable life business,
Institutional. First, recessionary pressures are impacting the
which is also affected by the stock markets.
employment levels of our customers, affecting revenue from payroll-based insurance products. MetLife’s product diversity,
“So the rest of MetLife’s performance is pretty much as
however, means we’re not entirely a payroll-dependent
expected, even in what’s a very difficult time,” said Bill. He
operation. We offer products to retirees, we have strong
added that, on an adjusted basis, expenses dropped by
pension close-out and structured settlement businesses and
approximately 2 percent in 2008 — even without any impact
some of our products are “portable,” so people can continue
from Operational Excellence initiatives — at a time when
them even if they leave their employer.
revenues grew approximately eleven percent. “That’s a very
The second and third trends are cost pressure on employers,
impressive performance in terms of expense control,” said Bill.
which impacts the money they have to spend on benefits and the market-driven weakening of employers’ pension plan
Given analyst concerns about the market’s impact on other
funding. Institutional’s value proposition, said Bill, is more
insurance companies’ abilities to deliver on their annuity
important than ever in light of these trends. Our ability to
guarantees, Bill pointed out that MetLife continues to practice
deliver trusted advice, listen to our clients, understand their
a strong investment hedging program regarding the
needs and develop innovative solutions to meet those needs is
Guaranteed Minimum Income Benefit riders in our annuities.
even more critical today. Plus, our financial strength is more
This makes delivering on those guarantees “a very
important than ever as plan sponsors decide with whom to
manageable capital issue for us,” said Bill.
place their benefit programs.
In conclusion, Bill said that MetLife’s earnings power is very
Bill detailed several of the strategic moves his business has
much intact. “Yes, we’re going to have volatile variable
made in light of today’s markets, including a deliberate
annuity account balances for awhile,” he acknowledged. “But
slowing in the growth of group disability, a continuation of
if you think about the earnings power of this company, the
our disciplined pricing approach to group life and the
model works and works quite well.”
acquisition of Safeguard, a dental health management Continued on Page 4 >
Is MetLife’s 15% ROE Goal Still Realistic?
At Investor Day 2007, MetLife introduced the goal of a 15 percent sustainable annual ROE (Return On Investment) by the end of 2010 -- but this year, the world’s economic realities shifted drastically.
During the Q&A session at Investor Day 2008, there was a discussion about whether the 15 percent goal was still in place. Rob Henrikson noted that while the economy has changed, our business model has not. So, Rob said, “due to the economic turbulence, to say that we’re going to hit that 15 percent in the same timeframe would be totally unrealistic. It might even drive bad behavior for your management team. So, we’re looking at that ROE to try to determine exactly what the target should be; but long term, 15 percent is still there.”
3
January 2009
Cont’d from Page 3
“We Are Big, Strong and Trusted.”
organization (DHMO), that has allowed us to quote on and
This is a time when clients need us. So there will be a flight to
win more business in markets where a DHMO capability is
quality in 2009 – there will be a flight to MetLife.”
seen as essential.
“We have financial strength, we have market leadership, we
“All this growth is based on sticking to our strategies and fundamentals”
have innovative solutions and we have the talent to execute,” Bill said. “We can do things that other companies can’t.
MetLife’s International Business, said Bill Toppeta, president,
And because of that, we are and will continue to be the
“is still all about growth” — which has continued to be solid
preeminent benefits and retirement franchise in the industry.”
throughout 2008, particularly in terms of premiums and fees. While the business’s sales results were flat, that flatness was
“2008 was about doing what we do best.”
driven mostly by a decline in MetLife’s Japanese annuity business, due in large part to market conditions. The four-year
At MetLife, the impact of recent market volatility has been
Consolidated Annual Growth Rate (CAGR) for International
particularly significant in Individual Business. Lisa Weber,
Business revenues remains substantial at 18 percent. Earnings
president of Individual Business and MetLife Auto & Home®,
growth has been even more substantial during that time,
acknowledged this early in her presentation. “We simply could
coming in at a CAGR of 29 percent.
not outrun the more than 40 percent drop in the S&P,” she said. However, Lisa stressed that tremendous opportunity lies
“All this growth is based on sticking to our strategy and to the
ahead. “The financial services industry is redefining itself —
fundamentals of our business,” said Bill. He explained that
and I believe it’s absolutely ours for the shaping and taking.
International’s focus remains on the geographic areas we’ve
Now more than ever, people need the guarantees that only
already penetrated, which give us access to 90 percent of the
the insurance industry can provide, and MetLife is one of
world’s life and retirement markets. Plus, International’s
the few brand names left on earth that can give people
product lines, target customers and distribution strategies
guarantees they can count on.”
are similar to the rest of the enterprise. “So,” said Bill, “we are sticking to the things we know best . . . in short, to be MetLife.”
Still, Bill said, while the basics of our business are the same worldwide, our business models differ according to what’s appropriate for each country. To illustrate, he pointed to Latin America where, in Mexico, our target is primarily government workers to whom we sell group life and major medical coverage. In Chile, however, we offer group life and accident & health coverage to middle and mass-market consumers. This is done through brokers as well as through Banco Estado, the federal bank of Chile, which gives us stability in terms of earnings and revenues. During 2008, Lisa said it was about “doing what we do best: executing on the fundamentals.” As a result, our variable
The diversity in our business models works to minimize
annuity sales outpaced the competition, enabling MetLife to
International’s overall risk profile, Bill said. To enhance that
regain the number one position for the third quarter of 2008,
diversity, International is continuing to add to its balanced
according to VARDS, the key industry source for variable
product portfolio. In Brazil, for example, International
annuity information. In addition, MetLife’s variable annuity
acquired a major dental insurance provider in a country
market share grew from nine to 11 percent. “What I feel
where the opportunity is enormous: 90 percent of employees
best about is that we got to this position without doing
have no dental coverage whatsoever. And in Mexico, a country
anything overly aggressive in terms of our products, our
where 92 percent of private medical costs are borne by
features or our pricing.”
consumers out-of-pocket, we are launching an individual major medical product.
Turning to the life insurance business, Lisa said that sales were stable in 2008, even in this economic environment, which was
In summary, Bill emphasized International’s strong results in
quite an achievement. MetLife also moved from number seven
2008 despite the challenging environment. “We have
to five on the list of top life sellers according to LIMRA, and
growth based upon diversification in terms of geography,
introduced four new core life products designed to improve
business model, product and distribution channel. We have a
future profitability.
sound strategy and we’re focused on the fundamentals of the business.”
Distribution continues to be a particular strength in Individual Business. Lisa reported that as competitors have been laying
Conor Murphy, vice president and head of Investor Relations,
off wholesalers, MetLife has been hiring. Our wholesalers have
who moderated Investor Day, was pleased with the messages
delivered steady, stable and reliable results. She also said that
MetLife delivered to the analyst community. “Following
we continue to have the broadest distribution reach in the
Investor Day, the consistency of analysts’ reports demonstrates
business, including our third-party independent distributors
that our messaging was effective,” said Conor, “and the wide
and affiliated MetLife, New England Financial and MetLife
range of questions Rob received during our Investor Day
Resources channels. She called these latter organizations “blue
question and answer session implies a broad interest in
chip” operations that have outpaced the industry in terms of
MetLife’s growth opportunities rather than in specific concerns
retaining talent and productivity.
relative to the financial markets. I believe this is a time when consumers are truly seeing the value in the guarantees
4
Finally, Lisa acknowledged the exceptional team in Individual
we offer and advice, expertise and strength we provide. It’s
Business. “You can copy services and product,” she said, “but
not a time we’d wish on anyone — but it is a great time to
you can’t copy the power of people. I think this is our time.
be MetLife.” ■
momentum rom small business owners to large
F
profitable growth. It placed an
to communicate its value proposition.
multinational organizations,
emphasis on its benefits and retirement
It also leverages the media as a conduit
employers are feeling the effects of the
expertise; expanded in high-potential
to reach key audiences. To ensure
tough market conditions. Benefits
markets, like pension closeouts and
success, Public Relations and
managers, chief financial officers and
the small market; and approached
Institutional Marketing are partnering
treasurers are sorting through how the
customers in a more holistic way.
closely with the Sales and Service
economic environment will impact
Institutional also made investments
organizations to ensure that each
their business. They are focused on
in its operating model and began to
initiative is understood and leveraged
managing their benefit liabilities so
focus on bringing down expenses. It
in market because, ultimately, that’s
they can fulfill their obligations to
finished the year achieving excellent
where the rubber meets the road.
employees and retirees. They are
top-line growth.
Institutional is also focused on developing and expanding its
concerned, too, with protecting their
For Institutional, a Time to Lead Institutional Business sets a new strategic plan to capture today’s market opportunities
Did you know?
Institutional’s 2009 Business Plan builds
relationships at the large end of the
on this momentum. Says Bill, “In
market. This includes increased
At the same time, employers know that
creating the plan, we took a realistic
cross-selling to existing large customers
benefits play an important role in
look at the current economic
and creating relationships with new
provides benefit solutions to
attracting and retaining talent. So,
environment. From that, we examined
ones. It will expand upon the work it
over 60,000 group customers,
they are looking for solutions that
what we needed to do to win in the
began last year to focus resources on
including more than 90 of the top
allow them to deliver attractive
market; to simplify our organization;
those sales opportunities that have the
benefit programs.
and to best tell and reinforce our story
most growth potential. (In October, the
to customers, brokers and others.
Sales Organization moved the line of
Companies aren‘t the only ones facing
We also focused on activities that
demarcation between Mid-Large and
uncertainty and risk. So are their
would support the enterprise’s
National Accounts to 15,000 lives. It
employees, who are feeling the
strategic initiatives.
had been 25,000.)
for ways to build financial security
“What we found was an opportunity to
Institutional will continue to expand
and are increasingly turning to their
sharpen our focus even further to
its core competencies into new or
employer for benefits and retirement
expand upon the progress we made
underpenetrated areas that offer the
advice at work.
last year.” The plan, says Bill, is a
ability to grow profitably as part of its
combination of activities that will fuel
strategy. One good example is in the
growth, and others designed to make
small market, which is a growing
Institutional a more decision-driven,
segment. The goal is to make the Small
effective organization. It also
Market a big business for MetLife. The
“During times of difficulty, companies
continues to place an emphasis on the
current focus is on the development
turn to leaders; carriers who they can
fundamentals, such as risk selection,
and implementation of an operating
trust,“ says Bill Mullaney, president of
maintaining strong relationships with
model for the organization that
Institutional Business. “We have the
customers, getting pricing and under-
reduces cost and strengthens service.
opportunity to set ourselves apart
writing right and managing expenses.
To gain greater access and penetration
balance sheets and reducing costs.
Currently, Institutional Business
100 FORTUNE® 500 companies.
economic crunch, too. They are looking
There is a silver lining amid all this
in this segment, Institutional is going to
because we understand the issues and can help our customers make sense of
Six goals for growth
work on establishing the right broker relationships, as well.
the challenges. Our benefits and retirement expertise, and our
Institutional has six goals for growth,
financial strength, have never been
which serve to guide it toward
There is a lot of opportunity in the
more valued.”
improved profitability.
retirement space, too, particularly in the areas of pension closeouts and
A new strategic plan
One of these is positioning itself as
income annuities. Institutional is
benefits and retirement experts. To
looking to identify and cultivate new
Institutional’s work in 2007 and
ensure customers and brokers think
partnership opportunities to distribute
2008 has prepared it well for the
of MetLife when they have a benefits
annuity products, including through
opportunities ahead. Last year,
challenge or need, Institutional has
Target Date Funds and 401(k) plans,
Institutional set a new strategic plan,
developed a comprehensive thought
for example.
defining a common vision and the
leadership strategy. It makes use of
activities that would matter most to
research, tools, events and advertising
Continued on Page 9 >
The Six Institutional Goals for Growth
1
2
Position ourselves as benefits and retirement experts
Deepen, extend and leverage our large market franchise
4
5
Innovatively transform our operating environment to improve the efficiency and effectiveness of our business models and to make it easier to do business with MetLife
Continuously focus on growing, developing and optimizing our talent
3 Leverage existing competencies to expand into selected new or under-penetrated markets
6
Leverage our mergers & acquisitions (M&A) and integration capabilities to take advantage of opportunities in the ongoing consolidation of our industry 5
January 2009
Understanding the Underinsured An update on MetLife’s “Life Insurance” Strategic Initiative
ne of MetLife's strategic growth initiatives — “Life
O
In-depth interviews with middle market consumers reveal
Insurance” — focuses on re-connecting life insurance to
that addressing more immediate financial matters, like
the middle market, defined as adults, ages 25 to 44 with
paying off credit card debt, has taken precedence over
household incomes of under $100,000. Of these 17.9 million
longer-term financial goals of savings and protection. For
households, nearly 50 percent not only recognize the need
many of these consumers, losing a job is a more immediate
for life insurance coverage, but also intend to buy in the next
and tangible concern than premature death. These findings
year. Unfortunately, 80 percent of those who say they will
provide insight into why life insurance is no longer the
buy won't end up making a purchase. As a result, this
social or cultural “must do” that it once was for middle
market remains significantly underinsured and represents a
market households.
tremendous growth opportunity for MetLife. Middle market consumers who do plan to purchase life Over the past three months, MetLife‘s Life Insurance Strategy
insurance often don‘t succeed. They turn to the Internet for
Team has conducted consumer and market research to better
information and grow confused because they get widely
understand these consumers and identify the reasons why so
varying recommendations regarding how much and what
few ultimately purchase life insurance. The insights from
kind of life insurance they need. Many are influenced by
this research reveal two sets of barriers. One set keeps
high-profile personal finance commentators who often
consumers out of the buying process altogether, while the
warn against aggressive sales people and overly complex
other drives all but the most motivated consumers out of the
and expensive insurance products. These consumers often
process as they attempt to buy.
assume coverage will cost too much for their budgets. The lack of easy-to-find cost information drives many out of the buying process early on. Those who actually do apply for coverage often confront a complicated and cumbersome underwriting process that can be more time consuming and complex than expected.
Global Growth
Life Insurance
Retirement Income
As a result of these and other research insights, the Life Insurance Strategy Team has a clear sense of the numerous barriers standing between the middle market and the life insurance coverage they want and need. The team is using
Consolidation
this information to develop strategies to remove these obstacles, thereby expanding the number of middle market consumers “in-market” for life insurance and simplifying the
Operational Excellence
purchasing process. Be sure to stay tuned to Momentum for more updates on the middle market initiative and how
Opportunity: The Middle Market
MetLife is re-connecting with this underserved segment. ■
Adults age 25 – 44 Household income: > $100,000
Associates “Take the Lead” in Faster, Better Lead Processing Another example of an associate-generated Operational Excellence initiative
rassroots efforts to pursue
G
In the past, metlife.com leads have been
Partnering with Individual Business, the
Operational Excellence are springing
processed manually. A call center
Customer Sales and Service Group and
up all over. In another instance of
associate would receive the lead
the Information Technology Group, a
associates taking personal responsibility for
information in one system, check it and
plan was developed to automate those
making things “better, faster and more
then transfer it to another system
leads that met our quality tests while
profitable,” members of Global Brand &
so that an Individual Business sales
retaining the current manual process for
Marketing Services‘ Interactive & Web
representative could follow up. This
only those leads that required further
Solutions recently identified
process took a couple of minutes per
investigation. All this was done without
and took action on opportunities to
lead and, therefore, a few dollars in
creating any new technology systems.
improve the system for processing
additional costs for each lead processed.
Web-based leads.
With MetLife’s Internet lead volume
Within a short time, the new process
quadrupling from 26,000 leads in 2006
was put in place. Today, 80 percent of
to more than 100,000 leads in 2008,
leads are immediately automated from
this process was becoming expensive
metlife.com to our lead management
and not providing an optimum
system, eLeads. What’s more, even the
customer experience.
20 percent that aren’t fully automated are entering the right system rapidly.
“As part of the Life Insurance Strategy effort, the group examined some of
The project has started delivering on
our competitors’ Web practices,” says
its promise and should more than pay
Manish Bhatt, Interactive & Web
for itself within six months while
Solutions. “They found that many other
immediately providing a much improved
companies were able to follow up on
customer experience. Projected savings
Internet leads within a few hours. Our
for the project are close to $200,000 per
delay in responding to the metlife.com
year — and that’s not even counting
leads was not only expensive in terms of
projected increases in sales from
operating costs, but was also resulting in
metlife.com leads. ■
lost revenue opportunities. We knew we could take charge to make the process work better.“
6
momentum etLife Auto & Home® knows the importance of
M
home customers for both the Retail and Group distribution
consistently delivering solid performance, especially
systems. This section of ‘Core Customers’ is more than just a
in trying economic times. But for Bill Moore, president of
niche; it’s a solid market segment comprising approximately
MetLife Auto & Home, consistency isn’t enough; he wants
40 percent of the U.S. population.
top- and bottom-line growth. “Research shows that this customer group generally desires “Right now, we are a strong competitor in the market, but we
having multiple products with one brand-recognized
could be more,” said Bill. “We have benchmarked ourselves
company,” Bob said. “They are con-
against the industry leaders, and I firmly believe we have the
cerned with protecting the assets
people and the products — as well as ample strength in our
they’ve accumulated over time and
distribution systems — to be the very best. Our biggest
understand the
opportunity is top-line growth. I’ve challenged everyone at
importance of insurance that
Auto & Home to grow premium at twice the rate of the
addresses their complex needs.
industry average. It is going to be tough, but with our team
Most importantly, the key to
of talented associates, a lot of hard work and smart decisions,
gaining these customers is to
I know we can step up and meet this goal.”
understand the key life events that
Targeting the Core Will MetLife Auto & Home’s “Core Customer” initiative shift the company’s growth into overdrive?
cause them to shop for insurance With input from the Auto & Home Officer Group, teams were
and then provide the necessary
identified to develop a plan to fuel growth, setting a new
marketing material to attract
course that relies on the company’s knowledge and experience
them at these opportunities.”
to identify and concentrate on targeting profitable markets and market segments. This new strategy refines Auto & Home’s
Since completing the research and analysis phase, Auto &
focus into six major growth initiatives (see sidebar).
Home has started to develop state-of-the-art tools to allow its sales force to execute marketing programs targeted at the
While all these initiatives are vital to focused growth, the
‘Core Customer’ key life event shopping points. Auto & Home
company is finding tremendous potential in the ‘Core
then identified the best states and regions in which to achieve
Customer’ initiative. It‘s designed to give Auto & Home a
focused growth and immediately began to overlay factors such
better understanding of who its best customers are, thereby
as ‘Core Customer’ data, market share opportunities, volatility
MetLife Auto & Home’s Growth Initiatives
management and regulatory
helping to identify the best prospects for new customers
environment to identify areas
going forward.
that were ripe
The “Core” in action
for growth
> Market Expansion > Pricing Sophistication > Expanded Distribution
Already, the company has began to apply ‘Core Customer’
> ‘Core Customer’
research — a detailed analysis of those customers who provide
> Enhanced Internet Capabilities
the Company with the greatest likelihood of long-term
> Expense Management.
profit – to its business strategy. This enhanced understanding is being used to create a more sophisticated approach to product — and here
development, branding, pricing, underwriting and service.
the market “Studies of the most profitable companies found that in
expansion strategy
difficult economic periods, focusing on your competitive
came together.
advantages and understanding who your most profitable customers are will sustain you through the ups and downs of
“Once we had a good understanding of
the market,” said Bob Lundgren, vice president of Auto and
who our ‘Core Customer’ is, where they
Home’s Corporate Product Development and Marketing and
live and which states have the best
executive sponsor of the Core Customer Initiative. “Those
environment for growth, Auto & Home
companies that best understand the source of their most
began putting this strategy into action,”
profitable business and then focus on increasing that market
said Bob.
share are consistently the most successful.” “Our State Management organization
Opportunity born from understanding
began working with local sales management
Under Bob’s direction, the ‘Core Customer’ Initiative began to
to plan and execute state strategies based on
take shape more than a year ago. His team used several tools
this research.”
to gain a better understanding of consumers’ demographics
Continued on Page 11 >
and psychographics in order to identify the best auto and
MetLife Auto & Home’s Core Customers Research reveals that MetLife Auto & Home’s core customers are segmented into three “life stage” groups: Young Achievers
Responsible Families
Experienced Planners
Typically well-educated singles and childless couples
The presence of children define this under-45-years-
Upscale, generally over-50-years-old empty nesters in
in their late 20's, 30’s and early 40’s. Many with
old age group. These households generally contain
larger, older homes. They have disposable cash to
executive and professional jobs are found here but
families living in larger homes beyond the nation’s
finance active lifestyles that are rich in travel,
they also extend to middle-class households. Found
beltways. With their disposable cash and sophisticated
cultural events, exercise equipment and business
mostly in the suburbs and exurbs, upscale foreign
tastes, they can indulge their children with the latest
media. These folks are also community activists who
auto brands are typically in their driveways, and the
technology and sporting gear. The adults read news-
write politicians, volunteer for environmental groups
latest technology is in their homes. Outdoor sports
papers and magazines, buy expensive cars and take
and vote heavily in elections.
and travel are key leisure activities.
frequent vacations.
7
January 2009
The Economy Is Down: Will Fraud Go Up? Protecting MetLife from fraud takes everyone’s diligence
ou read it in the newspapers, you
Y
perpetrators regularly take steps to
see it on TV: In response to today’s
avoid being caught, including stopping
historic economic downturn, companies
at the first sign of suspicion.
private — are putting an increased
For this reason, the SIU often relies on
information, such as overtime that
emphasis on ways they can operate more
the eyes and ears of MetLife associates
was not actually worked or ineligible
cost-efficiently. For our industry, that
in order to detect and prevent fraud
beneficiaries.
includes combating a particularly sinister
committed by individuals both outside
drain on the financial resources of
and within our company. Of course,
cash disbursements; often concealing
companies like MetLife: fraud.
there’s no question that most
the activity by using a previously
associates at MetLife — as well as most
reimbursed receipt.
According to the Coalition Against
independent agents and brokers we do
Insurance Fraud, a nonprofit fraud-
business with – are honest, dedicated
prevention organization, accurate
people who would never consider
you might think
statistics about the cost of insurance
activities. Yet, just one or two instances
procedures in place to prevent fraud,
fraud are hard to come by. That’s
of fraud could have potentially serious
how do fraudulent activities like the
because much fraud goes undetected —
consequences for MetLife in terms of
ones listed above go undetected? Many
and even when it is detected, it remains
both financial loss as well as impacting
reported cases of internally generated
unreported. Nevertheless, in its 2007
our all-important reputation as a
fraud share some similar characteristics
annual report, the Coalition estimated
company our clients can trust.
that help us understand how fraud can occur. When a company’s stated
Awareness is the key
or are circumvented, it’s easier for Naturally, the first step to spotting
individuals to conspire with vendors and
fraud may become more difficult.
insurance fraud is to understand what
suppliers. If supervision or cross-checks
After all, tough financial times will
fraud is, as well as the most common
become lax, employees are sometimes
stretch the resources of fraud fighters
types of fraud that have been
tempted to “take the risk.” This can be
and increase the motivation of
committed against insurance companies
particularly true when the individual is
unscrupulous individuals to engage in
in the past. In general, fraud involves
considered to be so loyal or above
fraudulent activities.
deliberate deception or misrepresenta-
reproach that their work is never
tion for personal gain. In terms of fraud
properly checked or authorized — or
that is generated from individuals inside
when supervisory personnel are given
a company, this might include:
too much individual authority to approve payments or purchases.
At MetLife, our Corporate Ethics and Compliance department engages in a robust anti-fraud program that is driven by our Special Investigation Unit (SIU).
> Collecting, but not depositing, customer funds or premiums. > Soliciting customers to participate
This is why no company can rely solely on the efforts of any single team to
They are responsible for monitoring and
in “bogus” investments or
detect and prevent fraud. It’s a task that
implementing the Corporate Anti-Fraud
outside business.
takes everyone’s help — and it’s easier
Policy and Fraud Prevention Plan. But
> Making purchases at unauthorized
to do than you might think. Simply be
no matter how well-organized or
rates (in return for kickbacks) or
diligent at all times about following
professional it is, the SIU team can’t
dealing with bogus customers
the cross-checking and authorization
be everywhere and see everything,
or suppliers.
procedures in your area. If you believe
particularly since fraud often involves
> Improperly accessing company
you’ve spotted a problem, talk to your
“quiet activities” — that is, small
computer systems to acquire sensitive
manager or call MetLife’s Compliance
amounts of money stolen or
customer information or account
and Fraud Hotline at 1-800-462-6565.
misappropriated occasionally over long
data, and then selling or otherwise
At a time when the economy is down,
periods of time. Making fraud even
misusing the data.
it’s all the more important that
harder to spot is the fact that fraud
> Purchasing items for the company but having them shipped elsewhere; or
8
purchasing procedures are not followed
economy means the fight against
Hiding in the quiet
Scenes from “Fraud Awareness,” a new course for associates on MyLearning on my.metlife.com. Enroll today by clicking on the “MyLearning” tab, then “Search Category” for “Fraud Awareness Course”. Help MetLife protect our enterprise from fraud.
There’s safety in process If companies have safeguards and
more, said the Coalition, a shaky
than ever — and easier than
> Falsifying expense reports or petty
stealing or engaging in fraudulent
billions of dollars each year. What’s
fraud is more important
then taking it for personal use. > Falsifying payroll or benefit information, including false
and institutions — both public and
that theft through fraud amounts to
At MetLife, helping prevent
writing off company property and
everyone’s attention to fraud goes up. ■
momentum uring fourth quarter 2008, Global Sourcing Solutions
D
sponsors. These panels provided insight into the GOSC from
(GSS) and the Global Operations Support Center (GOSC)
varying perspectives; that of the GOSC customer, process
hosted the inaugural GOSC Customer Day in Newark, NJ.
owner and Operations Director. Collectively, these sessions
Attended by more than 80 business leaders from across
afforded attendees the opportunity to learn about
MetLife, the program took attendees on a virtual visit to the
the planning, development and management of the Center
GOSC through the use of a variety of interactive media.
and to hear first-hand experiences directly from businesses that have moved work there.
“While we cannot take everyone to the GOSC in person, our goal today is to bring the center to you and provide
“Being able to hear directly from someone who has gone
information and insight about our strategy, work practices
through the migration process, and being given the chance
and capabilities,” remarked Kush Kamra, vice president and
to ask questions and leverage their
managing director of the GOSC. “In addition, this is an
experiences is so valuable,” according to
opportunity for you, as business leaders, to foster a
Rhonda Sloan, a MetLife Auto & Home®
community through which ideas, suggestions and learnings
process owner planning to move work
can be shared and leveraged across MetLife as we continue to
to the GOSC in the near future.
Global Operations Support Center Customer Day Inaugural event showcases GOSC strategy, work practices and capabilities
grow the GOSC.” “To have the opportunity, as a
Even more relevant today
customer of the GOSC, to share our experiences with businesses looking
In opening the event, Nancy Hanslowe, vice president,
to take advantage of its capabilities
Global Sourcing Solutions, articulated one of the themes that
is key,” according to Kurt
resonated throughout all the presentations, discussions and
Shingledecker, vice president,
activities: “Given the current economic environment and the
Institutional Business. “This
growth plans of our businesses, the GOSC, which we started
exchange of information and
planning 4 years ago, has become even more relevant.”
dialogue can help facilitate the process for future migrations to
Further emphasizing the GOSC’s key role, Maria Morris,
the GOSC.”
executive vice president, Technology & Operations, discussed the enterprise’s focus on Capability Sourcing as an integral part of Operational Excellence. “Being a global company
A walk through the Capability Gallery
means sourcing the right capabilities at the right costs from the right sources in the U.S. and around the world,” she
A highlight of Customer Day was the Capability Gallery, a
began. “In doing so, we must optimize quality, productivity
self-guided tour of interactive presentations illustrating
and customer satisfaction through our MetLife and strategic
different facets of the GOSC. Leaders of the GOSC were
partner operations centers. The GOSC is a proven component
available to walk visitors through each of the multi-media
of the global capability network that we are building to
displays. Featured topics included the GOSC’s capabilities,
deliver for our customers.”
with a focus on process and quality improvement. Visitors also got a sneak preview of our new MetLife-owned and
Maria then introduced Peggy Fechtmann, executive vice
operated facility that will house the GOSC in Noida, a
president and head of Capability Sourcing, who recently
suburb of Delhi.
joined Technology & Operations to formulate the crossenterprise Capability Sourcing initiative. “The objective of
In closing, Kush Kamra attributed the GOSC’s success to those
the enterprise-wide initiative is to create a sourcing strategy
in attendance as well as partners across the enterprise. “The
that will outline MetLife’s future state and execution plans,”
story that started four years ago has been envisioned and
Peggy added. “The GOSC is an integral part of MetLife’s
executed by the people here today,” he began. “From our
sourcing capabilities. Today’s virtual visit will allow you to
first process that was migrated in 2007, our success is a direct
touch and feel it, and further understand and appreciate
result of the support, dedication and teamwork of colleagues
how it can support your business.”
near and far. The Center, with 48 processes currently supported by over 800 associates, continues to grow and I
The view from those who’ve experienced it
am excited about what we, and the GOSC, can accomplish in the future.” ■
During the day, panel discussions were led by the leaders of the GOSC, leaders of the businesses and senior executive
“Every day we hear people say, ‘Thank you, MetLife.’”
differentiate itself. It will do this
Town Halls.“) He asked associates to
through operational reengineering
stay focused on the fundamentals and
efforts, improvements to technology
never forget the significant role they
These are just a few initiatives that will
and workflow, and leveraging the
play in bringing financial security and
propel Institutional’s growth and create
Global Operations Support Center.
peace of mind to the individuals
Cont’d from Page 5
For Institutional, a Time to Lead
Institutional ultimately supports.
a more efficient organization. To support its success, Institutional’s
Bill was joined by his Planning Board
operating model is being enhanced to
for a town hall in December where
“Every day we hear people say, ‘Thank
reduce complexity and to make it easier
they outlined the plan. (Associates in
you, MetLife.’ . . . What we do is
to execute on decisions. Institutional
most U.S. administrative locations can
enormously important. . . . It’s the work
is focused on enriching the customer
view a replay by going to the MetLife
that you do every day that allows us to
experience, reducing expenses and
Video Gallery at videogallery.metlife.
be all that we can be.” ■
investing in the processes needed to
com and clicking on “Meetings and
9
January 2009
A Lesson in Collaboration A new cross-enterprise partnership helps MetLife make its mark in the Education Industry
F
or years, MetLife has been a leader in the Education
events, including an exhibit booth, workshops and a
Industry, both as a company and as a corporate citizen.
technology showcase, which were all well-attended by
Recently, a new, cross-enterprise partnership was formed to
ASBO members.
coordinate MetLife’s strategies in targeting this growing industry segment so that our enterprise can make the most
“We are excited about the synergies being created as a result
of potential sales opportunities.
of our partnership with Institutional Business. Together, we’re able to provide a holistic approach and offer a full spectrum
Segment marketing managers Paola Cabrera, Institutional
of employee benefits unlike anything else available in the
Business, and Shelly Ledford, MetLife Resources, are both
marketplace,” said Thomas G. Hogan Jr., senior vice president
focused on expanding MetLife’s presence in the Education
and head of MetLife Resources. “Recent market conditions
Industry. While they approach the market from different
prove that clients depend on financially strong companies,
channels, the two organizations meet regularly to identify
and our partnership with Institutional serves to reinforce
opportunities for collaboration, including event marketing,
MetLife’s value proposition. The result is a better bottom
sponsorships and thought leadership initiatives. For example,
line for the enterprise and a life-long relationship with
they recently made the following items available across both
mutual customers.“
organizations to help increase awareness of issues impacting This joint sales effort between the Individual and Institutional
the Education marketplace:
Businesses is further supported by special liaison teams that > An Education Industry supplement to the 6th annual Study
facilitate market development through existing relationships
of Employee Benefits Trends, which Institutional Business
at the local level. The Individual Business liaison group, led
released earlier this year.
by Jeff Tulloch, was created to leverage and strengthen
> MetLife Resources’ 403(b) White Papers and Web seminars, which help plan sponsors comply with the changing benefits regulations effective in 2009.
Institutional and Individual Business relationships and competencies. They work closely with MetLife Resource’s Worksite Benefits Team, led by Doug Peters, to identify opportunities to enhance an employer’s benefits solution with products and services offered throughout the enterprise. As awareness grows across the two sales channels, representatives from both organizations have begun working together to secure a number of other collaborative meetings to help identify other potential opportunities.
Ongoing discussions
Anthony J. Nugent, senior vice president, Employee
have
Benefits Sales, feels that with the growing demands on HR
facilitated
professionals, it’s important that we continue to develop
cross-
cross-enterprise partnerships to make benefits decision-
enterprise
making easier for our clients. “I think partnering across
planning and
the enterprise should be a key strategy now more than ever,”
participation
said Anthony. “It is critical that both organizations be aligned
in several
and go to market as one team.”
Education Industry
Giving educational leaders a unique voice
conferences.
Just a sample of the MetLife informational materials targeted at today’s Education Industry.
Last year, MetLife became a member of
Corporate Contributions is another partner that focuses on
the College and University Professional
the education sector. MetLife Resources and Corporate
Association for Human Resources
Contributions work together with the National Association of
(CUPA-HR), an organization that serves
Secondary School Principals to sponsor the Principal of the
more than 10,000 higher education
Year Program. “This important program recognizes the
Human Resources professionals at
contributions of principals across the country, and helps
more than 1,600 institutions across the
demonstrate MetLife’s commitment to principals as leaders
country and internationally. At the
in the education market,” said Rick Love of Corporate
CUPA-HR National Conference last October, Institutional
Contributions. “In addition, we publish The MetLife Survey
Business invited MetLife Resources to attend so they could
of the American Teacher. This Survey series shows that we are
jointly network with higher education decision-makers at
serious about what educators think by providing them with a
workshops and an exhibit booth promoting the breadth of
public platform.”
products and services offered by MetLife. In the spirit of partnership, representatives from MetLife
Making the grade at all educational levels
Resources and Institutional Business are invited to events associated with the survey’s release each year. In addition,
In addition to the higher education segment, MetLife
MetLife Foundation is a long-time supporter of issues in
Resources demonstrates continued commitment and support
education, further demonstrating MetLife’s commitment to
to K-12 school districts throughout the country as a Platinum
the importance of quality education.
Sponsor of the Association of School Business Officials
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International (ASBO). Ongoing support includes participation
This solid working relationship between Institutional Business,
in their Annual Meeting and Leadership Conference, as well
MetLife Resources and Corporate Contributions is a great
as providing twenty scholarships for new school business
illustration of how, through collaboration, the enterprise
administrators as part of their Bridges to the Future program.
can create win-win scenarios for MetLife and its customers —
At last fall’s Annual Meeting, MetLife Resources invited
and, in the case of the Education Industry, put MetLife in a
Institutional Business to join them at a number of marketing
“class by itself.” ■
momentum s associates work together to
A
business. To date, we have and will
employee-led diversity groups has
build a faster, better, more
continue to be sure that our initiatives
grown over the past three years,
profitable MetLife, diversity continues
are actionable and measurable, and
from 10 to more than 40 and more
to be a business imperative. According
focused on continuing to contribute to
than five percent of 2007 procurable
to Kathy Henkel, senior vice president,
MetLife’s success in the marketplace.
spend was with minority-andwomen-owned businesses.
Human Resources, “Our commitment to diversity has differentiated us as an
Last year, MetLife continued to be
employer, as a provider of financial
recognized for some of the great strides
“Our continued commitment to
solutions to different individuals and
made when it came to diversity.
diversity has created a culture where
employers, and as a buyer of products
Assisting in this success are the many
embracing varied perspectives is key
and services. That’s why we take every
champions who serve as advocates for
part of the way we manage our
opportunity to ensure that our focus
diversity within our company. Thanks to
business,” says Kathy. “But as well as
on diversity continues to make
them and the EDC, MetLife has made
we’ve done, it’s important we continue
MetLife stronger, more competitive
significant strides in areas such as
to raise the bar. There’s no doubt that
and creates lasting customer and
leadership accountability, taking
a major component of our strength is
shareholder value.”
diversity education to the next level and
our focus on the needs of today’s
tapping into marketplace strategies.
diverse marketplace, as well as the
Diversity at MetLife Diversity: Where Do We Go From Here? Diversity continues to be key to MetLife’s business strategy
breadth of our diverse internal talent.
Our diversity strategy is driven through the leadership of our Enterprise
Some of our success includes: over
This is what drives innovation, makes
Diversity Council (EDC). We are proud
7,000 associates participated in
us better able to serve customers
of the way we have evolved our
small-group Diversity Dialogue sessions
and gives us a distinct sustainable
diversity strategies such that many
to discuss strengths and areas of
competitive advantage in the
are fundamental to the way we do
improvement; the number of
marketplace.” ■
I
Lisa Weber Gets PINK!
PINK — a national women’s business magazine — hosted the session as part of a seven-city conference series held at various
Executive Group member speaks at national women’s business conference
n November, Lisa Weber, president of Individual Business and MetLife Auto & Home®, was a featured panelist at the fourth annual PINK Magazine Conference series event in Atlanta, GA.
locations across the country. The November conference featured some of America‘s most influential women in business and allowed attendees to network and share tools, tactics and strategies for business success. MetLife’s Individual Distribution department and MetLife Auto & Home's Diversity Steering Committee collaborated as sponsors of the Atlanta event. Lisa was one of six female business leaders who spoke on The Women’s Panel, an hour-long discussion that focused on discovering work-life balance, building career success stories and learning valuable business lessons. ■
As a result, Auto & Home has tailored its product offerings to
brings to the enterprise is its ability to provide numerous
Cont’d from Page 7
be in line with ‘Core Customer’ values and is preparing to
cross-selling opportunities. According to Bob, a solid portion
Targeting the Core
launch an enhanced sales effort in selected states. With this
of Auto & Home’s ‘Core Customer’ also fits into MetLife’s
new strategy in place and aspirations of growth, Auto & Home
retirement and ‘New Middle Market’ life insurance strategy.
is expanding and leveraging its multiple distribution systems to
“We have a lot of hard work ahead of us in the coming year if
reach more customers, especially in growth regions.
we want to take serious strides toward growing at twice the industry average. I’m proud of our associates who have banned
Broader implications for the enterprise
together to help make this strategy a reality,” said Bill. “We are
This ‘Core Customer’ research also has the potential to impact
confident this initiative will create a stronger targeted sales
other MetLife lines of business. Part of the value Auto & Home
plan resulting in increased revenue and earnings.” ■
As associates of MetLife, it's up to us to deliver on the brand promise and keep it top-of-mind 365 days a year! So for 2009, we've created an online quick-reference calendar featuring our
Remember MetLife’s Brand Promise All Year Long
brand promise. See mymetlife.com to download your own 2009 calendar today!
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January 2009
A New “Go Green” Achievement!
W
e did it! In November, Momentum reported that, in
Last month, the Council awarded MetLife a Silver LEED for
addition to being awarded Energy Star certifications
Long Island City! “This is a achievement that the entire
for nine of MetLife’s sites, our enterprise had applied for a
company can be proud of,” said John Vazquez, vice president,
LEED (Leadership in Energy and
Corporate Real Estate. “I want to thank our Corporate Real
Environmental Design) certification for
Estate team, our building management partners Cushman &
our Long Island City, NY facility. Awarded
Wakefield, and all MetLife associates who conscientiously
by the U.S. Green Building Council, LEED is
conserve energy and follow ‘green’ practices. It has truly been
the ultimate in environmentally friendly
a team effort, and we continue to seek LEED designations for
designations for commercial buildings and
additional MetLife sites.” ■
has been earned by less than 100 commercial sites nationwide.
Caption
Momentum Readers: We Heard You! In a recent survey, associates provide ideas and inspiration to our editorial team
uring the final quarter of 2008,
D
plan to act on many of your suggestions,
It’s also clear that while a majority (more
MetLife invited a randomly chosen
including those on editorial content,
than 56 percent) prefer the printed
group of associates from across the
cost efficiency, new ways to distribute
version, there is much we can do to
enterprise to give us their views on
Momentum and more.
improve associates’ awareness and readership of Momentum online. (Only
Momentum. We asked whether and how frequently associates read
It was clear that great majority of
about half of respondents were aware
Momentum, what kind of value they
associates surveyed continue to read
that Momentum is available online on
get from the publication, the types of
Momentum and find value in it.
my.metlife.com. Of those, just 26
articles they’d like to see more of, their
Some highlights:
percent read it “every month” or
preferences for reading Momentum
> 63 percent read Momentum “every
“almost every month.”)
in paper format versus online, and
month” or “almost every month”
much more.
(only 8 percent “never” read it)
Our thanks to everyone who took the
> 72 percent feel the publication is
time to participate. As we make moves
We were pleased to receive so many
an important part of MetLife’s
to improve Momentum, we’ll repeat the
responses, along with a wide array of
communications to them
survey to gauge your reaction. So if you
thoughtfully considered ideas on what
> Nearly 80 percent feel it helps
weren’t included the first time around,
to do (and what not to do) to make
them understand MetLife’s goals
watch for future survey invitations. In
Momentum the best it can be. Our
and businesses
the meantime, remember that you can
editorial team is now studying the results of the Momentum survey and we
> 63 percent feel it helps them be better “brand ambassadors”
always contact us by sending an email to momentum@metlife.com. We welcome your ideas and suggestions. ■
What value do you get from Momentum? During the Momentum Survey, associates were given several “value statements” and asked to rank them from “Strongly Agree” to “Strongly Disagree.” Here’s how they responded to just a few of those statements. Momentum . . .
Legend Momentum is published by MetLife Internal Communications for associates enterprise-wide. Send questions, comments or ideas for stories to momentum@metlife.com. Vice President, Internal Communications: Susan Berger Editor: Greg Potter Contributors: Toby Axelrod, Trudie Bolles, Paola Cabrera, Caroline Campanelli, Rob Constantine, Sarah Faria, Gina Gelman, Shelly Ledford, Julia Levy, Nancy Murray, Janine Wright PEANUTS © United Feature Syndicate, Inc., www.snoopy.com © 2008 MetLife, Inc. Printed in USA (0109
Statements made in this publication may constitute forward-looking statements within the meaning of the federal securities laws, including statements relating to trends in the company’s operations and financial results, the markets for its products and the future development of its business. MetLife’s actual results may differ materially from the results anticipated in the forward-looking statements asa result of risks and uncertainties, including those described in MetLife, Inc.’s filings with the SEC. MetLife specifically disclaims anyobligation to update or revise any forward-looking statements, whether as a result of new information, future developments or otherwise.
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