Document 27mBYLQKqzBDgdpjxbL4JeKa

tSM L M p -M ) Printed In U S A. Metropolitan Life !' -\f ,i I. I1'{ i'A .J v\'AU\ Mq I mi,- ,:SS& -rtm_ $ a? ill m '"iWiwi ` '''irWWi r'.mw \-^4t m ':y/rt l/i /St V M1' . I. l '> d'V.'.'l. | V' 1` ' r i Ii,,,';"r "mthr,- ;t -If ,'! > ' . . yy^ui , *f '< '3 - I. v. j.1 ' , -f ... ;**'! * i '< "f/- p*; f>f . 1 t>. .' i ' i i > . t. > ' . ii|llk*'*V* *. h j{ "'.'I r * i .i: i-.-i 1 To Metropolitan Policyholders:. Metropolitan Ufe Insurance Company observed lt 100th birthday on March 24,1968, and recognition was given to the fact that, by all the customary standards, 1987, Its 100th year, was the "best year of all."We are especially pleased, therefore, to report that 1868, the first year of the Company's second century of operation, was even better. New highs were attained In: benefit payments to policyholders and beneficiaries; the yield on new Investments; the sale of life Insurance to Individuals; the sale ot annuities to Individuals; the number of people Insured by Metropolitan; the amount of personal and group life Insurance In force. While we think the foregoing are Important Indications of - the vigor of the Company and the scope of Its many insurance services, there were other developments which, while not readily measurable, were also of significance, particularly as we look toward the future. Changes in the organization of the sales force and in Important units in the Home Office added noticeably to our capacity to market our Insurance coverages and to adrrjlnlster them satis factorily. Supplementing these werefurther advances In the application of electronic data processing equipment In the work of the Company. We are confident that these various moves will be effective In Improving the quality of Metropolitan servfoaa and in combating forces whloh land to lead toward higher costa. Altogether, 1968 was a year ot action on many fronta. Reference can be made to only a few highlights:' We tried to speak and act on behalf of restraint against Inflationary forces which havs been rampant We Intensified our activities to help alleviate the prob lems of the cities and fulfilled commitments for Metro politan's share of the life Insurance Industry's $1 billion program. In order to deal with these matters In a mors organized and effective way we created a new Department of Urban Affairs. We agreed on a new contract with the negotiating committee of the union representing some of the Company's Aganta. but It was rejected by a narrow majority of the members who voted. A strike ensued and lasted for 10 weeks before a settlement was reached. 1 9 itm^j^nwrerffpi ' , .; `.I*.1 .'/'`i'.Vi K ,/i.;, < V, m ,' ,7 i , i.."j ' , ,1.:. y .* i' 7 'i i  W continued deep Involvement in the field of health inturence by meeting with various Interested groups to . probe (or ways and moans to dampan tha upward spiral of madlcal ears costs without adversely affecting tha quality of care. In line with thia. we financially supported the first phase of an experimental demonstration project on provid ing medical care, conducted by Washington University School of Medicine in St Louis. We wish to acknowledge the important contribution made by the many thousands of Metropoiiym men and women throughout the United Stales and Canada, as well as those In our Home Office and Head Offices. Their support and cooperation are deeply appreciated. Metropolitan employees continue to be e highly constructive lorce In the Company's efforts to expand and Improve the scope of Its services. cUl President CAtlrmtn of tho fintneo Commtttoo <6*. Chairman et Me Board Metropolitan Life Board of Directors Amory Houghton, Coming. N Y. Honorary Chalrman of tha Board, Coming Qiaos Works Philip O. Rood, Now York, N.Y. Juan T. Trfppa, Now York. N.Y. Honorary Chalrman ol fhs Baud, Pan American World Airways, Ine. Wabstar B. Todd, New York, N.Y. Gala F. Johnston, 8t. Louis, Mo. Pratldanl, Mercantile-Commarce Company Rebait L Handll, New York, N.Y. Chairman or me Board, Sanderson a Porter, Ine. Q. Keith Funeton. New York. N.Y. Chairman ol tha Board, Olin Mathiaaon Chamteat Corporation Edwin C. MeOanald, New York. N.Y. Chairman ol tha Board, Thomson Newspapers, Ine. Frederick R. Kappal, New York, N.Y. Ratirod Chairman ol tha Board, American Talnphons and Telegraph Company Walter R. Williams, Jr., New York, N.Y. Chairman, Union Dima Savings Bank Charles Allan Thomas, Si. Louis, Mo. Retired Chairman ol tha Board, Monsanto Company W. Earls McLaughlin, Montreal, Canada Chairman and Praaldant, Tha Royal Bank at Canada Qflberl W. Fttahagh, Now York. N.Y. Chairman ol tha Board, Metropolitan Ufa Insuranet Company Relnhaid A. Hetuia, New York, N.Y. Ratirod Saaeuthra Viea-Praaldant, Metropolitan Lift Insurance Company Stray Miaou, Jr., New York. N.Y. Chairman at the Board, Union Carbide Corporation I Donald P. Ktrohar, Now York. N.Y. I Praaldant and Chairman or the Beard, I Tha Singer Company Qaorgo P. Jenklne, Now York, N.Y. Chairman ol tha Plnanca Committee, Metropolitan Ufa Insurance Company Lpwoffye A. Jennings, Washington, 0.0. I Chairman ol tha Beard, The Riggs National Bank 1 > Albert L. Nickerson, New York, RY. Chairman ol tha Board, MobU OH Corporation Thames P. Patton, Cleveland, Ohio i Chairman, Republic Stool Corporation Gerald A. Bhrago, Chicago, lit. Praaldant, Marshall Plaid A Company Bmrnott G. gatamen, San Prsnctsco. CaUt Chairman, Crookar-Cklzana HaUenal Bank John D. Harper, Pittsburgh, Pa. Praaldant, Akimlnum Company ol Amarfoa Baa W. ttalnaman, Chicago, Ilk Praaldant, Northwest Industries, Ine. Charles A. Blegfrled. Naw York, N.Y. Praaldant, Metropolitan Lit# Insurance Company Significant Facts Payments to policyholders and beneficiaries reached a new record high of $2,825,384,732. This averaged $28,450 a minute each business day. The overall figure includes: Death benefits...................................................... $888,368,092 Payments to living policyholders, . excluding dividends Under life Insurance policies......................... 734,350,455 Under health Insurance policies.................. 597,595,605 Olvldends to policyholders.................................. 565,070380 * Total life Insurance Issued amounted to $12,494,228,411, made up of $8,832,101390 In personal Inauranee and $3,682,128,721 In group Insurance. * Metropolitan had more life Insurance .In force than any other company: iMotalled $147342.400,955, made up of $77,572,477,004 of personal and $89,969,923,951 of group life Insurance. * Total assets held for the benefit of policyholders amounted to $25,840,125,786-a new high. * Nat rate earned on assets rote 16 points, from 439Vi to 5.05'A. * At the year-end, a total of 38300,000 people ware cov ered by Metropolitan life Insurance, and a total of 18300,000 were covered by health insurance. * The number of people protected by some form of Metropolitan insurance, excluding duplications In coverage. Is estimated at 48,100,000. approximately one out of every five persons in the United States and Canada. Payments to Policyholders and Beneficiaries 3.0---------------------------------------------------------------- 2.5 et 2.0 o 1.5-------- s 1.0 .5-------- 0--------------------------------------------------------------- 1964 65 66 67 68 Personal Ufa Insurance Issued 9-------------------------------------------------------------8-------------------------------------------------------------7-------------------------------------------------------------- 6-------------------------------------------------------------- S 5-------------------------------------------------------------- 01 4-------------------------------------------------------------- i--------------------------------------------------- :----------- o--------------------------------------------------------------1954 68 65 57 88 Total Life Insurance In Force 150145140135130125120115110105100- 1964 68 57 58 Assets 30------- 25------- 20 i3 15 10 0 1954 65 '66 67 86 Metropolitan Life Assets and Liabilities, December 31,1968 (Summarized from the Annual Statement filed with the Insurance Department of the State of New York) Assets Bonds ................................................ U.S., Canadian and other government........ $1,010,568,012 $12,982,244,230 Provincial, municipal, public agencies............ 192,900,818 Industrial and commercial 9.069,818,675 Public utility....................... 2298.140,645 Railroad ............................ 410,816,082 Stocks ............................................................ Preferred or guaranteed.. $ 164257,964 Common.......................... 268,700,070 432258.054 Mortgage Loans on Real Estate .................... Residential, commercial and Industrial .............. 19208,823.578 Farms and ranches.......... 630,359,128 9239,182,702 Real Batata.................................................. Housing projects and other real estate - acquired for Investment $ 402260,919 Properties for Company use.................................. 84278.321 Other properties.............. 6,036,683 493278,103 Policy Loans (made to policyholders on the security of their policies).......................... 1,020269,446 Cash and Bank Deposits.............................. 138,784201 Other Assets (chiefly premiums and Interest due of accrued)............................ 797252,613 Separate Account Business.............. ........... 137268,436 Total Assets, Nole-Assets smountlng to SI ,188,719257 are deposited with various public officials and trustees under the requirements of law or regulatory authority. 8 $28240,128,788 Liabilities and Surplus Funds Statutory Policy Reserves (This amount, re quired by law, together with future pre miums and interest, Is necessary to assure payment of future policy benefits).......... $20,917255,667 Policy Proceeds and Dividends Left with Com pany by beneflcierfee and polfeyholdart, to be paid to them as direetsd st future dates ........................................................... 955,451,150 Set Aside for Dividends to Policyholders (payable in 1969)........................................ 506,029.945 Policy Claims Currently Outstanding (claims In process of settlement, and estimated claims that have not yet been reported) 215245,703 Other Policy Liabilities (including premiums received In advance, funds held for spe cial risks under certain group policies and for certain personal health polides) 963,650,651 Taxes Accrued (not yet payable) .............. 73,377,838 Mandatory Securltiee Valuation Reserve... 245,479,378 Mortgage Loan Valuation Reserve.............. 32,458,000 All Other Uebflltiee....................................... 92278236 Separate Account Bualneea.............................. 137,958,438-' Total UaWfltlee..................................... *24,141,662,200-~ 8peelal ContingencyReserves $278249,000 Croup life insurance reserve for epidemics, etc............... 9117200200 Special reserve for possible loss or fluc tuation In the value of Investments. 180,199200 Special contin gent reserve fund for sepa rate account buainces... 760200 General Contingency Reserve (uneaalgned surplus)___ 1,419,994260 Total Surplus Funds (Special and Qeneral Contingency Reserves)*................... 1298,443280 Total UsbUmes and Surplus Funds..............(25240,128,786 These surplus funds serve as a reserve against unforeseen contingencies and give extra assurance that all policy benefits will be paid In full as they fall due. 7 Premiums and annuity considerations ... $3,561,805,168 Earnings from investments after invest* ment expenses and taxes...................... 1,223,356,121 Net asset adjustments less increase In mandatory securities valuation reserve and less Increase In mortgage loan valuation reserve .................................... 7,222,319 TOTAL .............................................. $4,792563.608 Payments to policyholders and - beneficiaries Death benefits ........................................ $ 898,368,092 Matured endowments ............................ 174,235,558 Health policy benefits ............................ 597,595,605 Disability benefits in life policies ........ 46,813544 Annuity benefits and interest on policy or contract funds................................ 193,794513 Cash values.............................................. 319,507,140 Dividends on policies ............................ 595,070,580 TOTAL .............................................. $2.825584.732 Additions to reserve liabilities for future payments (after deducting $120,823,727 net changes in valuation bases) .......... 912517510 Total paid or added to resarvo llablll* ties (or lutura payments to policy* holders and beneficiaries.................. $3,737,602,642 Insurance expenses (Including health and welfare costs).......................................... 592510.749 Taxes (other than investment taxes) Federal income taxes ... $153,935,107 Other taxes...................... 75551,818 Total taxes................................................ 229,487513 TOTAL .............................................. $4559,100,404 Increase in totaj surplus funds $ 233583504 Total surplus funds, January 1,1968 ,,... 1,485,160578 Total surplus funds, Qecember 31,1968 .. $1598,443580 8 Moving Forward As a mutual life Insurance company, Metropolitan's business Is to provide a full range of policies and prompt sendee of the highest quality to policyholders, at reasonable cost This has required a business structure that Is flexible and adaptable to the many new social, political and economto forces that affect the vitality of private and competitive enterprise. Some of the developments which affected the Company's business in 1968 were: . New Products Anniversary Family Policy-On Metropolitan's 100th Anniversary, a package policy, known as the Anniversary Family Policy, was offered to prospective policyholders at e basic amount of $8,(100. Special features Included at part of this policy are a family Income-type benefit of $100 a month for the first 20 policy years If death occurs within that period, and en.extra protection benefit on both the husband end wife. Versatile Income Protection Disability Policy tor Women-Late In 1968 Metropolitan Introduced this "V.I.P." disability policy for businesswomen, which oilers long-term noncaneeiabfe Income benefits. Other pedal features are income benefits while the Insured is confined In a hospital, end guaranteed insurability, which gives 8 businesswoman the right to purchase additional insurance. ' 9 Investments An Important objective of Metropolitan Investment policy la to achieve a maximum return commenaurale with safety. In 1968, investment yield rose to levels not aeen in many years. The result not only helps to reduce the cosl of insurance to our policyholders but also helps to offset the erosion in the value of our money caused by Inflation, and the increasing-and InjQme cases discriminatory-burden of taxation at the Federal, State and local levels. Metropolitan has been In the forefront of those advo cating the maintenance of sound financial policies to assure a stable price level and a sound currency. It will do all In its power to continue this all-important fight. Metropolitan made many notable Investments in the year 1968. One example was Its very large participation In the senior financing of the $1 billion hydroelectric development at Churchill Falls, Labrador, which, upon completion, will be the biggest power plant in the world. Metropolitan took the leadership among companies underwriting this project. Another example was the Company's $33,700,000 investment, with an equity leeturk, In The City," a 200-acre metropolitan real estate complex now under construction In Southern California The Company must, of course, always be sensitive to the interests and needs of its policyholders. To this end. It has Increased its activities in the equity-baaed products field and has expanded its common stock department and its common slock investments. In addition, many of Metropolitan's loans have included equity features with excellent potential for capital appreciation. Taxes In 1968 Metropolitan paid a total of $246 million in taxes, licenses and fees, including investment taxes, to Federal, Stale and local governments. Of this amount, almost $154 million was Federal income tax, an Increase of approxlmstely $32 million over 1967. Mortality Trends Mortality among holders of standard individual policies declined slightly In 1968 as compared with 1967, as measured by claims actually paid In each of these calendar years. All the major causes of death axcept cancsr of the respiratory system, accidents, pneumonia and influenza, and war deaths showed decreases. Among the general population mortality rates Increased somewhat during the same period for most of the major causes of death. 10 \ In a mutual company such as Metropolitan, where any excess of income over the cost of providing protection is returned to the policyholders through dividends, a favorable mortality experience has an Important effect on Insurance costs. Electronics Metropolitan has pioneered in the use of electronic compeers, which have figured prominently in the Company's long-range planning for over 15 years. A major milestone was reached In early 1966 when the Company completed Installation of equipment In its more than 900 district offices across the United States and in Canada, connecting them by telephone lines with large central computer systems In the Home Office . and in the Pacifio Coast and Canadian Head Offices. Important elements of new electronic data processing systems were installed, giving the district offices fast direct access to the Company's computer files. It la expected that these new and modem facilities will be reflected in Increasingly prompt and efficient service to policyholders. People Maintaining a high level of personalized service In an organization such aa Metropolitan Ufa requires many qualified persons with a variety of skills snd abilities. Meeting this need In an increasingly competitive labor market requires continuous attsntlon to the effective recruitment, selection, training, development and reten tion of employees at all levels. To this end, the Company Is constantly reviewing and updating its personnel practices, with particular atten tion being given to salary administration matters, aa well as other Important areas such aa general working conditions, to make certain that Metropolitan con tinues to be a good place In which to work. In terms of Metropolitan's future development priority Is being given to the need lor highly motivated, topquality personnel. This need becomes even more pressing aa the Company's business continues to grow, as it becomes more technical snd Specialized, and as the Industry itself becomes mors diversified. To meet this situation. Metropolitan is expanding its college-level recruitment High-level personnel from outside the Com pany are being brought In to fill some key administrative and executive positions which require special skills which are not to be found among present employees. In* doing this, no change is being made In the Company's long-standing policy of promotion from within. Metro politan is, and will continue to be, constantly on the look out for those employees who show the ability and 11 potent!*? to handle greater responsibilities, and will continue to encourage and facilitate their growth and development Health and Safety For well over half a century. Metropolitan's health and aafety projects, advertisements, booklets and films have been a major factor In helping to overcome the social lag between the discovery oriiew medical knowledge and procedures, and (lie widespread dissemination of this information to the general public. The most resent special effort In this general program was a grant made last May to Washington University, St. Louis, to support the first phase of a demonstration program in ambulatory medical care. Its objective is to achieve Increased efficiency and economy of services to patients, with a resultant reduction of current large demands on hospital facilities tor diagnostic service, and to enhance opportunities for teaching and learning in general medical care and the specialties. Urban Affairs Equal Employment Opportunlly-For many years Metro politan has had an equal employment opportunity policy. It has remained Ihe same in principle over the years and has been followed in spirit as well as In letter. Since Its adoption, extensive steps have been taken to Im plement It to assure its success, and to let It be known that this Is Metropolitan's policy. Through the years It has been strengthened, and the Company is now engsged In a continuing, broad-gauged "affirmative action" program to recruit train, develop, and upgrade employees from underprivileged areas. These employees follow the same avenues of advancement that are open to all, and to date a substantial number have already reached the classifications of managers, professionals and technicians. A Department of Urban Affairs was created by the Company last November in recognition of Metropolitan's Increasing Involvement in urban affairs, and in order to deal in a more effective way with the many facets of these matters. This department will be responsible for the coordination of the Company's extensive activities iathis field, and the development and Imple- . mentation of Company programs designed to help alleviate some of the many critical urban problems . facing our nation. "A Deep Involvement," a booklet describing Metropoli tan's activities to help in the solution of the nation's urban crises, was published last November. Copies of the booklet can be obtained at the nearest Metropolitan district office, or by writing to Department of Urban Affairs, Metropolitan Life Insurance Company, One Madison Avenue, New York, N. Y. 10010. 12 \ yii*- StsXepaie S(ifyer.Ori<lj*s Hi1- fMnisiSti** 3*Stef' `unjasiav `W'WMHliteU*:* Wtt* 'V*li*i**