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Objectives

Creating Opportunities in a Challenging Environment Julio G. Villalon Head of Middle East Region MetLife. Objectives. Overview of today ’ s environment What we can expect in the future Some Challenges .. but also great Opportunities How is MetLife dealing with these challenges.

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Objectives

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  1. Creating Opportunities in a Challenging EnvironmentJulio G. VillalonHead of Middle East RegionMetLife

  2. Objectives • Overview of today’s environment • What we can expect in the future • Some Challenges • .. but also great Opportunities • How is MetLife dealing with these challenges

  3. The World Economy is Changing… GDP EMERGING COUNTRIES GDP DEVELOPED COUNTRIES Source: International Monetary Fund, World Economic Outlook Database, September 2011

  4. Our Environment: Post – Financial Crisis • Customers • Loss of trust in financial sector • More sensitive to price • Higher risk aversion • Governments and Regulators • Sovereign debt crisis • New Regulation (Solvency II, Customer protection rules) • Insurance Industry • Consolidation • Shortage of capital • - Some deleveraging geographically • - Others deleveraging lines of business Low Interest Rates

  5. Lowest Interest Rates in Last 25 Years Source: WSJ LIBOR: Historical Data

  6. Our Environment: Future • Customers • Value more capitalstrength and solvency • Products with guarantees • Products more transparent • Governments and Regulators • More regulation and supervision • Insurance Industry: 2 Winning Strategies • Large companies that can leverage their size • Specialists who focus in specific risks or niche markets

  7. What are the opportunities? Life Industry Myths Based on Research Life insurance is sold, not bought • Customers want to make better-informed decisions when purchasing, rather than relying on the industry to know what’s right for them Personal interaction is essential • Customers expect to do far more research in the future using online sources, even though they may continue to use an advisor to complete the purchase It’shard to cross-sell to existing customers • Customers want to be rewarded for loyalty and repeat sales Providers can’tmaterially influence retention • Providers could influence retention if they were better at meeting customers‘ changing needs and were prepared to offer better deals to stay Responding to the New Customer Needs Source: Ernst & Young global insurance customer survey, 2012; 24,000 customers in 23 countries covering Americas, EMEA and Asia

  8. Where are the opportunities? Additional Trends • Emerging Markets will represent • most of the growth • More than 60% of Life Premium growth will come from Emerging markets • Corporations are becoming more Global • 65% of Global 1000 have Employees outside the U.S. Source: McKinsey Global Insurance Pool Dun & Bradstreet Research

  9. MetLife - A leader in the International Life Market • MetLife has a strong foundation • Will need to adapt to this changing and challenging environment 1Total Revenues are from MetLife’s audited Consolidated Financial Statements for the years Ended December 31, 2012. This financial data should be read in conjunction with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the audited consolidated financial statements and related notes included in the Metlife’s 2012 Annual report. . 2Market capitalization as of Oct 28th , 2013. Data from Yahoo Finance 3 Assets Total: Consolidated Balance Sheet as of December 31st, 2012. 4 From MetLife Corporate profile. Customer and country information represent combined numbers for both life and non-life businesses. 5 AXCO Insurance Information Services, March 7, 2013

  10. MetLife Positioning in Middle East Turkey Since 1988 Lebanon Since 1953 Jordan & PNA Since 1958 • Over 1350 Employees • Operating Since 1953 • Leading Position in Region Oman Since 1971 Egypt Since 1997 UAE Since 1962 Saudi Arabia Since 1954 Kuwait Since 1954 Bahrain Since 1960 Qatar Since 1962

  11. MetLife Strategy Refocus the U.S. Business Build Global Employee Benefits Business One Grow Emerging Markets Drive Toward Customer Centricity and a Global Brand Global *World-Class * Scale

  12. MetLife Strategy • Grow Emerging Markets • GDP Growth driving Insurance penetration • Growing middle class needs for Life Insurance • Build Global Employee Benefits • Corporations increasing Global presence • Employee Benefits as a lever to retain talents • Customer Centricity & Global Brand • Listen to Customers to derive better experiences • Global Brand to differentiate ourselves

  13. MetLife Strategy Key Enablers • Talent/Collaboration/Communication • Scale & Efficiency • Regulatory Engagement: • - Creating long term relationship • - Share Global expertise • - Support strong regulation appropriate to • marketplace

  14. In Summary Challenging Environment Strategic Response Significant Opportunities • Economic and Financial crisis - Clients’ loss of trust - Higher Risk Aversion • Changing Regulatory environment • Persistent low interest rates • Diverse Competition • Leverage size and scale vs. specialist approach • Responding to the“new consumer” • Need for global partnerships (Clients, Distributors, Partners, Brokers) • Clients want to do business in different ways. • Insurance penetration is increasing in emerging markets • Corporations are becoming more Global

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