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    2015 Annual Report


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    Message from Steven A. Kandarian MetLife is proud of the groundbreaking work the Foundation is doing to help the two billion people around the world who live outside the financial mainstream acquire the tools they need to build better, more secure lives. At the same time, the Foundation continues to honor MetLife’s longstanding commitment to the communities where we do business through support for arts and cultural organizations, health research, education, and community development. Steven A. Kandarian Chairman, President & CEO of MetLife, Inc. Report of 2015 contributions and community investments by MetLife and MetLife Foundation 2 METLIFE FOUNDATION


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    Message from A. Dennis White Anyone who works in financial services comes to understand that financial well-being affects, and is affected by, virtually every other area of life—from health status to educational attainment to family formation and much more. So a person’s ability to live the life he or she wants will depend, to a significant degree, on the ability to manage money. And the ability to manage money depends, in turn, on the availability of effective financial services—services grounded in a real understanding of the customers’ needs. A customer-focused approach is the heart of what MetLife Foundation wants to achieve. We are excited about the insights emerging from our grant-making in behavioral economics, including insights about improving financial education by making it action-oriented. Most adults already know that it is important to budget and save, just as we know it’s important to exercise and eat right. Our failure to do those things cannot be addressed simply through information because lack of information is not the primary reason we fail to meet our goals in exercise, diet—or saving. The issue is behavioral: time management, or fear of the unknown, or simple inertia or procrastination, or some other behavioral factor. So for adults, MetLife Foundation’s grant-making deemphasizes classroom-style adult education in favor of what we call “edu-action”— the chance to put healthy financial behaviors into practice and to learn by doing. It’s the difference between someone telling you that it’s important to save—and someone helping you decide which account to open and how to set it up, and encouraging you to stick with it—as our grantee International Rescue Committee does for recent immigrants. Behavioral economics has important implications for product and service design, too. In Mexico, our grantee ideas42 discovered that one of the reasons people failed to plan for retirement was that they worried it was selfish, that all their money should go toward their children. So ideas42’s recommendations to Mexico’s We're emphasizing what retirement system included culturally appropriate messages that we call "edu-action" – retirement planning is admirable and can help parents avoid becoming a financial burden to their adult children. the chance to put healthy In the pages that follow, MetLife Foundation is pleased to share some financial behaviors of the exciting work our grantees are doing around our three thematic focus areas—Knowledge, Services, and Insights. We’re grateful for the into practice. opportunity to work with some of the best organizations in the field and to share their work via high-profile partnerships. For example, the 2015 debut of our sponsorship of The Wall Street Journal’s “Financial Inclusion Challenge-Asia” provided a prestigious global platform to showcase our grantees’ work and to raise awareness about financial inclusion. The “Financial Inclusion Challenge-Asia” was so successful it has been renewed for a second year. (continued on next page) 2015 ANNUAL REPORT 3


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    Message from A. Dennis White (continued from previous page) This report also describes the commitment of MetLife to our local communities. From medical and health research to arts and culture, disaster relief to workforce readiness, MetLife remains committed to being a positive force in every community where we work. I am particularly proud of the ever-growing support and enthusiasm the Foundation’s work inspires among our associates. The Foundation’s partnership with Kiva, for example, lets MetLife associates direct microloans to the clients of their choice. In Latin America alone, in just the fourth quarter of 2015, more than 1,500 associates participated, directing loans to borrowers in 44 different countries. In Eastern Europe and the Middle East, more than 900 MetLife associates in 19 countries volunteered their time to provide young people with financial education courses. In all, MetLife associates donated more than 72,000 hours of time—11 percent more than last year—and engaged in the Foundation’s work as never before. As we enter the second half of our five-year strategic plan, MetLife Foundation is on track against targets, disbursing nearly $100 million against our five-year goal of $200 million. Our portfolio continues to become more international in scope as well. But regardless of geography or size of disbursement, project type or specific tactics, MetLife Foundation’s guiding principle remains the same. We work with partners driven to understand what customers need—and why—and then to deliver it conveniently, affordably, and efficiently. On behalf of the Foundation’s board and staff, thank you for your support of our work. A. Dennis White President & CEO, MetLife Foundation 4 METLIFE FOUNDATION


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    Our Global Focus: Financial Inclusion MetLife Foundation works in both developing and developed To advance our goals, MetLife Foundation chose three economies to expand and improve financial services. We fund strategic areas–two that are client-focused and one that approaches that help low- and moderate-income people: supports the financial inclusion industry as a whole. • improve basic cash flow management MetLife Foundation is proud to work with some • prepare for life’s inevitable challenges of the best organizations in the financial inclusion • take advantage of opportunities field. The following pages detail a selection of • achieve their short- and long-term goals. what we are learning together. Knowledge Services So that customers are So that customers are • Well-informed • Served by strong and confident in organizations that meet future financial their financial needs decision-making now and in the • Prepared to future meet the • Able to requirements access and of the financial use products sector and services that build their financial aptitude and health Insights So that the financial inclusion industry can • Learn from each other, through high-quality research and thought leadership • Support each other’s efforts, through meetings and conferences to share best practices and identify industry priorities 2015 ANNUAL REPORT 5


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    OUR GLOBAL FOCUS | Financial Inclusion KNOWLEDGE OWLEDGE KN H TS SERV S IG IC IN ES Partnering with Community colleges have a proud tradition of educating working adults, parents, low-income immigrants, older, or other non-traditional Community Colleges student populations. Many of their students are highly motivated but financially- and time-stressed—one flat tire away from having to drop to Reach Low-Income out. So community colleges are experimenting with models that can increase students’ financial stability and in turn increase the likelihood Students of academic success. With support from MetLife Foundation and other like-minded funders, the Working Student Success Network (adminis- tered by Achieving the Dream), which includes 19 colleges and state Working Student Success Network (WSSN) coordinating agencies in Arkansas, California, Virginia, and Washington, United States is helping colleges implement a promising model of integrated services. The model incorporates job training, income and work supports, and financial coaching and products. MetLife Foundation’s support focuses on helping develop, test, and scale the financial-services and coaching components of the model. Dream, Save, Do Financial Empowerment for Families Sesame Workshop Global The greatest predictor of whether a person is financially healthy is whether he or she is a planner. Planners don’t necessarily produce detailed household budgets (although some do), but they have the general ability to project into the future, set goals, and make conscious choices accordingly. After a period of research, development, and consultation with financial experts, Sesame Workshop launched Dream, Save Do to seed a “planner” mentality in children by encouraging them first to understand the basic difference between needs and wants. Through songs on savings and delayed gratification, story lines, games, and activities, Dream Save, Do leads children and their caregivers – in an entertaining way – to dream of what they really want to spend money on, then save up for those goals, and then spend the money, after they have it, on that goal. The program includes print materials, comics, community engagement events, workshops, classrooms, songs, and fairs, all featuring Sesame’s beloved global and local characters. Sesame has launched Dream, Save, Do in four countries – Brazil, China, India, Mexico – and is rolling it out in Chile, Japan, Egypt, and the United Arab Emirates in 2016. 6 METLIFE FOUNDATION


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    Financial Opportunity Centers LISC (Local Initiatives Support Corporation) United States Community-based organizations can better help lower- income people find work and achieve greater financial stability by “bundling” key services, including employment, financial coaching, and improved access to public benefits. This “integrated service delivery” approach has been proven to help clients achieve better outcomes in net worth, credit scores, and job placement and retention. And it is at the heart of LISC’s Financial Opportunity Center (FOC) network. LISC partners with community-based organizations to operate FOCs in lower-income communities, providing one-on-one financial coaching. The personalized coaching helps clients to develop a plan and then, most critically, take action to implement that plan—with ongoing support from their coaches. MetLife Foundation supports FOCs in 11 cities across the United States to expand “Bridges to Career Opportunities,” a program which connects core FOC offerings with tailored education and skills-development to help clients find good jobs. Our grant is also supporting training and technical assistance to LISC staff, and funds behavioral economics research and pilot tests to address issues like client retention and financial product uptake. 2015 ANNUAL REPORT 7


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    OUR GLOBAL FOCUS | Financial Inclusion SERVICES SERVICES EDGE I NS I G WL O HT KN S Scaling Up People sometimes assume that financial exclusion is strictly a developing world issue. But even in advanced economies, important disparities exist, often Alternatives to along racial or socioeconomic class lines, between who is and is not included in the financial mainstream. Fair Finance is a key MetLife Foundation partner Subprime in the United Kingdom, providing personal and business loans to low-income individuals who have been excluded from mainstream finance and left with few options other than borrowing from subprime lenders. Fair Finance’s clien- Fair Finance tele are self-employed, part-time, and low-wage workers; recent immigrants; United Kingdom single mothers; and people of color. Along with more affordable credit, Fair Finance also provides counseling and mediation for tenants facing eviction. Although growing fast, Fair Finance is still meeting only a fraction of the local need, and wants to increase the number of individuals served from 10,000 to 100,000 over five years. MetLife Foundation’s funding is supporting initiatives to strengthen Fair Finance’s operational infrastructure to manage this growth. Applying Behavioral Nonprofits and donors working in financial inclusion have devoted great atten- tion to the issue of access: that is, to ensuring that more of the 2 billion people Science to Improve currently excluded from the financial sector gain access to financial services. And while access is necessary, it’s not sufficient to ensure long-term financial health. Financial Outcomes Behavioral science research from ideas42 found that people want to improve their financial health and often understand the steps they need to take. But they fail to follow through. Take retirement, for example. Despite significant expansion ideas42 of financial access in Latin America, the majority of people do not save enough Latin America for retirement. Through their research, ideas42 discovered that short-term savings goals beat long-term ones, that people can’t visualize what their lives will look like after they stop working, and that they are rarely prompted to think about their retirement. In response, ideas42 designed a range of tactics, from automatic bank account deductions to individualized goal-setting exercises and public awareness campaigns. With support from MetLife Foundation, ideas42 will partner with local financial institutions to analyze the behavioral factors that might increase uptake of a broad range of products and services intended to improve financial health. They will share findings from institutions in Mexico and Chile to design and test more effective ways to help customers actually use financial products. Successful interventions could be a model for the whole region. 8 METLIFE FOUNDATION


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    Beyond “One Size Fits All” Financial Services Svasti Microfinance India Microfinance in India traditionally involves providing small loans to a group of women who are required to cross-guarantee each other, and to attend weekly group meetings to make cash repayments. Although group-based lending can be a useful way to introduce clients to borrowing and using loans to grow a small business or meet other needs, over time, customers may come to chafe against the rigid methodology. Svasti, MetLife Foundation’s partner in Mumbai (Maharashtra), aims to upgrade the microfinance experience by focusing on individual customers’ needs and providing a one-stop shop for a wide range of products to help them lead a healthy financial life. MetLife Foundation is supporting Svasti, a credit-only institution, as they develop the technology to seamlessly connect with banks, enabling Svasti’s loan clients to open and use their bank-held savings accounts. The Svasti expansion will also let clients make bill payments and send remittances to distant family members. Svasti aims to enable more than 50,000 low-income customers to use their new bank accounts effectively, build their assets, and avoid the serious financial risks associated with storing cash at home. Community development credit unions collectively serve over five million consumers deemed the most challenging to reach, including low-wage workers, new immigrants, and individuals with damaged credit. Three-quarters of these credit unions offer financial coun- seling to connect consumers with advice and products to improve their financial well-being. But a Federation study found that credit union financial counseling varies significantly from one institution to another. The study also found that the majority of credit unions do not track the results of their financial capability programs. Together with Neighborhood Trust Financial Partners, the Federation has launched a new program, Pathways to Financial Empowerment, with pilot sites at five credit unions. The goal is to develop a scalable model integrating outcomes-driven financial counseling with the delivery of relevant financial products. A new, standardized platform not only tracks product usage, but also helps clients evaluate their progress toward improved credit, manageable debt levels, and Pathways to Financial short- and longer-term savings. This work helps credit unions deploy staff resources more effectively which, along with the development Empowerment of great products, means the Pathways program should strength- en the participating institutions as well as the financial well-being National Federation of Community of individual customers. In this pilot year, Federation credit union Development Credit Unions partners in New York, Texas, Ohio, Virginia, and Louisiana expect to United States collectively reach 1,250 low-income individuals, and help them find their own pathways to financial empowerment. 2015 ANNUAL REPORT 9


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    OUR GLOBAL FOCUS | Financial Inclusion INSIGHTS The Financial Inclusion Challenge/ I GHTS IN S ”Multipliers of Prosperity” The Wall Street Journal & WSJ. Custom Studios KNOWLE ICES Asia RV DG SE E MetLife Foundation sponsored The Financial Inclusion Challenge, managed by The Wall Street Journal, to reward excellence in programs to deliver innovative, sustainable solutions for people currently excluded from the financial mainstream. Winners of the 2015 Challenge were: Shanghai F-Road Commercial Services • Telenor Pakistan • Kiva To complement The Challenge, MetLife Foundation and WSJ. Custom Studios, the content marketing division within the Journal’s advertising department, launched “Multipliers of Prosperity,” a new website featuring stories from our grantees, videos, infographics, and other compelling content. As part of this custom hub, the Foundation and WSJ. Custom Studios co-produced A Dispatch from India, a video highlighting the work of MetLife Foundation partner Ujjivan. The piece won a Midas Award, which recognizes achievement in financial marketing and advertising on a global scale. Wall Street Journal Asia also developed an editorial series, “Financing the Future,” which received strong public response with more than 35,000 social shares and a tweet reach of more than 50 million people.


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    Aid Like a Paycheck MDRC United States Sometimes even minor tweaks can have major impact. Consider financial aid for students. Higher education is an urgent priority for many individuals and families— and for our society as a whole. Financial constraints can put that important goal out of reach for low-income students unless they receive financial aid. Traditionally aid has been paid out in one lump sum near or at the beginning of the semester. Unless the student possesses an unusual degree stress will allow students to concentrate on their studies and increase the of budgeting skill and discipline, it can be likelihood that they complete their degree or certificates. Small-scale pilot difficult to make the money last through- studies of “aid like a paycheck” found promising initial results in 2010-2013. out the entire school term. He or she may Now with support from MetLife Foundation, MDRC is testing the concept end up having to drop classes, increase at scale. work hours, or leave school altogether. In response, some colleges have begun MDRC is a research organization that demonstrates, evaluates, and scales experimenting with disbursing aid every up innovative ideas to improve the lives of low-income Americans. MDRC is two weeks—like a paycheck—instead of all partnering with community colleges, which have a long history of delivering at once. The financial aid is deposited into post-secondary education to low-income communities, to conduct random- a bank account and rather than feeling like ized control trials of the “Aid Like a Paycheck” concept among thousands of a windfall, the funds come in smaller, more students in Texas and California. The findings from the Aid Like a Paycheck frequent payments that coincide with research may help providers of financial aid use billions in existing resources regular expenses and make it less stressful more effectively to enable better outcomes—both financial and academic— to stay on budget. In theory, less financial for millions of lower-income students. Global Microscope 2015 Report: Financial Inclusion is a global issue, but every country has its own policies and programs. Global Microscope 2015 The Enabling Environment takes a comprehensive look at the state of financial inclu- sion in more than 50 countries. The report lets readers scan for Financial Inclusion by region or country and get a quick understanding of the current state of financial inclusion. Along with facts about Economist Intelligence Unit the products, services, and providers in the various markets, Global Global Microscope 2015 also provides significant detail on the “enabling environment”—the policies and regulations for a range of financial products and services and the institu- tional support that can help ensure the safe provision of ser- vices to low-income people. Global Microscope 2015 scores these issues using a dozen indicators and more than 40 data points to give a nuanced picture of the practical realities of financial inclusion. Finally, the report ranks each country, allowing policymakers, funders, and others to benchmark progress. Index rankings suggest that the best-performing countries are those taking a comprehensive approach, with multi-pronged strategies that tackle simultaneously the multiple, often intertwined barriers to inclusion. MetLife Foundation hosted a launch event in New York for the Global Microscope Report in December 2015 to support EIU’s public outreach campaign and will continue to support this important resource in 2016. 2015 ANNUAL REPORT 11


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    Mohanad Al Saray is a refugee from Iraq who was resettled in San Diego by the Mohanad International Rescue Committee, or IRC, in February 2015. Mohanad’s wife was killed in the violence in Iraq, and now, as a widower and single father to two young Al Saray daughters, he is devoted to building a fresh start for his family in a new country. When Mohanad arrived in the United States, he had no knowledge of the English International language and no understanding of the U.S. financial system. IRC enrolled him in its Rescue Committee English as a Second Language (ESL) program, where in addition to learning English, Mohanad completed a series of MetLife Foundation-supported trainings on financial United States services. With support from IRC, Mohanad visited local banks to understand and evaluate the banking options within his new neighborhood. He was approved for a credit-building loan from the IRC’s MetLife Financial Education for New Americans program, and received one-on-one financial coaching to establish a financial plan. Mohanad also received help from IRC’s financial counselors to enroll in a program to help reduce his monthly expenses. Finally, IRC helped Mohanad land a job—his first in the United States—at a local grocery store. Now with a steady monthly income, a conservative spending plan, and banking products that minimize transaction costs, Mohanad is beginning to build financial stability, with a small but stable nest egg and a sense of optimism about the future. Mohanad says he feels in control of his finances and looks forward to seeing his daughters thrive in the United States. 12 METLIFE FOUNDATION


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    Like many very low-income Indians, Jema Naik and her husband, Basanta, combine subsis- Jema Naik tence farming with other income-generating activities. And like so many others, the Naiks Trickle Up worried constantly about how to put food on the table if the harvest was bad and how to make their very low wages stretch far enough to meet even the most basic needs for them- India selves and their three-year-old daughter. Basanta used to migrate to Goa, the nearest big city for as long as six months at a time, competing with a huge pool of other unskilled men for day labor. Along with the serious material privations the family faced, both Jema and Basanta suffered from periodic bouts of depression from the relentless stress. Trickle Up, a MetLife Foundation grantee, approached Jema and encouraged her to join one of its self-help groups. There she met other women who intimately understood her struggles and provided support that eased Jema’s depression and sense of isolation. They boosted her confidence and encouraged her to pursue Trickle Up’s suggestion that she launch a small business. With a grant from Trickle Up of 7,000 rupees ($101), Jema opened a small grocery store. Trickle Up also provided coaching and technical training for Jema because she had no experience managing a business—or setting goals beyond survival. With Trickle Up’s assistance, financial support, and the encouragement of her group, Jema has steadily invested in her grocery store and also leased an additional acre of more productive land for cultivation. Basanta no longer has to migrate in search of low-wage day labor; husband and wife now work togeth- er in the shop and on their land, and enjoy raising their daughter together. In the past two years, the family has earned 50,727 rupees ($737), more than they dared hope. The family has enough food and clothes, their daughter is in school, and with Trickle Up’s help, they enrolled in the Indian government’s health insurance programs. Jema says that opening the shop has changed her life, and is committed to helping other women start the climb out of poverty. 2015 ANNUAL REPORT 13


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    Community Investments MetLife pursues its commitment to corporate social responsibility in many ways: responsible workplace practices, volunteer activities that engage our global workforce, grants via MetLife Foundation, and also community investments. These investments, which may take the form of debt or equity, are directed at organizations that engage in work that benefits underserved populations. The investments may be made on concessionary terms (lower returns, longer tenors) and are structured to provide innovative organizations with access to capital they might otherwise not be able to obtain. MetLife and MetLife Foundation made $52.5 million of social investments in 2015, providing vital resources to organizations serving smallholder coffee and cocoa farmers, delivering financial services to low-income consumers, building affordable housing, supplying primary healthcare, and many other vital goods and services. Amount Transaction (USD millions) Geography Description Vital Healthcare 5.00 US Financing a new community development (national) finance institution (CDFI) supporting primary health care delivery Bridges Ventures 5.00 US Equity fund investment, supporting small and (national) mid-size enterprise serving poor ROC USA 15.00 US Mortgage financing for resident-owned (national) communities of manufactured housing MicroBuild 2.50 Global Equity fund supported by Habitat for Humanity to support affordable housing lending Genesis LA 3.00 Los Angeles Loan to CDFI serving Los Angeles County (CA) Living Cities Blended 5.00 US National innovative community development Capital Fund (national) investments Self-Help Federal Credit 11.00 California Deposit in credit union serving low-income Union consumers Root Capital 6.00 Global Financing for global lender to agricultural small businesses 2015 TOTAL 52.50 14 METLIFE FOUNDATION


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    Community Investments Innovative Financing for Expanding Access Affordable Housing to Basic Healthcare MicroBuild LLC Vital Healthcare Capital, Inc. Global United States MetLife Foundation MetLife Investment: investment: $2.5 million (equity) $5 million (debt) MicroBuild is an investment fund launched by Habitat for Humani- Along with affordable housing, access to basic healthcare ty, one of the world’s leading champions of affordable housing and is one of the most important building blocks of financial an organization whose builds attract the enthusiastic participation well-being. Vital Healthcare Capital, or V-Cap, is a non- of MetLife associates every year. Habitat launched MicroBuild to profit community development financial institution that demonstrate the viability of housing-focused microloans as an provides capital to support quality healthcare services effective financial tool for lower-income households in the devel- and good healthcare jobs in low-income communi- oping world. The Fund and its related technical assistance compo- ties. Founded in 2011, V-Cap has grown quickly, thanks nent is a major strategic initiative in Habitat’s effort to increase the to funding from MetLife and other impact investors. It scale of its activity dramatically in response to the immense global prioritizes financing for better integrated healthcare for need for affordable housing. From MetLife Foundation’s financial vulnerable populations including frail elderly, at-risk youth, inclusion perspective, addressing a poor person’s housing costs is the disabled, and people living with chronic disease or one of the most effective tactics for building financial health. Along mental illness. V-Cap’s jobs strategy supports employment with other socially motivated investors including Omidyar Network, models that create new or better job opportunities for Triple Jump, and Overseas Private Investment Corporation (OPIC), low-income people with a particular focus on frontline, MetLife Foundation’s investment will provide funds that MicroBuild patient-facing jobs that are critical to the needs of vulner- can on-lend to qualified microfinance institutions (MFIs) in Asia, able populations, and that can help meet the increasing Latin America, and Eastern Europe. Those MFIs’ clients can apply demand for healthcare in the wake of the Affordable for financing to build a new house or improve an existing one, buy Care Act’s passage. V-Cap intends to place financing with land, or access legal aid pertaining to their housing or property high-performing healthcare channels, including hospi- situation. The Fund is expected ultimately to provide support to tals, nursing facilities, specialty practices, and physicians 100,000 low-income households around the world. But its greater groups, which have demonstrated their effectiveness and promise is the proof of concept, encouraging more MFIs to add for whom access to capital is a potential barrier. housing loans to their product offerings. 16 METLIFE FOUNDATION


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    Financial inclusion efforts must include outreach to smallholder farmers because Support to hundreds of millions of the developing world’s poorest people make their living, Smallholder in whole or in part, via agriculture. Smallholder farmers are typically excluded from formal markets and are constrained by lack of market information and lack Farmers of affordable access to inputs such as seeds and fertilizers, equipment, trans- portation, and credit. Root Capital provides loans to rural enterprises or small Root Capital and growing businesses that aggregate hundreds to thousands of smallholder Global farmers in Africa and Latin America and link them to competitive markets. Root Capital provides short-term trade credit and pre-harvest loans as well as long- MetLife Investment: term working capital in amounts that typically range from $50,000 to $4 million. $6 million (debt) Agricultural aggregator businesses can combine the efforts of hundreds or even thousands of smallholder farmers to create the economies of scale that can break down barriers to markets. Such businesses can link farmers to formal mar- kets in efficient, stable value chains that pay farmers a higher share of the end price, while also helping them to invest in climate-smart practices that increase productivity and incomes, enhance farmer and ecosystem resilience to climate change, and reduce and remove greenhouse gas emissions. Most importantly, these businesses can reduce the vulnerability and anxiety faced by farmers who cannot otherwise count on having a well-paying market for their product. 2015 ANNUAL REPORT 17


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    Latin America is an important market for financial inclusion—and for women’s empowerment. For too long, the assumption was that a “one size fits all” approach would suffice to address the financial needs of low-income women. In reality, meaningful progress isn’t possible unless Latin America’s women—half the region’s population—have the financial tools they actually need. Pro Mujer is proud to be a part of the solution by empowering these women to realize their goals through individualized loans and personalized services. We are deeply grateful for the MetLife Foundation’s generous support, which allows us to extend our reach and strengthen our offering. – Maria Cavalcanti President and CEO | Pro Mujer MetLife Foundation is an incredibly important partner for Accion. Its commitment to advancing financial inclusion is extraordinary. MetLife Foundation is helping us to build on- the-ground capacity in China, Myanmar, and the United States and to strengthen the industry through its participation on the Center for Financial Inclusion’s Advisory Council. We also highly value its support for the Economist Intelligence Unit’s Microscope, an important annual review of the enabling environment for financial inclusion around the world. MetLife Foundation’s extraordinary leadership, vision, and action help expand and improve financial inclusion at every level. – Michael Schlein President and CEO | Accion MetLife Foundation embodies the ideal philanthropic partner for Women’s World Banking. The Foundation is our ally and strategic partner in the mission to reach underserved women around the world with vital financial services. MetLife Foundation supports Women’s World Banking’s work to develop innovative financial products for low-income women who are historically left behind. We are not only grateful for the Foundation’s support and counsel, we continue to be inspired by its leadership and commitment to achieving full financial inclusion around the world. – Mary Ellen Iskenderian President and CEO, Women’s World Banking 18 METLIFE FOUNDATION


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    MetLife Foundation has become one of our favorite funders to work with. There is truly a talent to being a good donor – one doesn’t simply give money away – and MetLife Foundation consistently exemplifies the traits of a good donor. Not only are they flexible and open to a wide range of ideas for projects, but they are also excellent thought partners in developing an idea so that it harnesses all its potential for impact. Development work of any sort is difficult—it almost never goes exactly according to plan. To have a funder who is so experienced in the field that they not only expect challenges but can offer solid experience on how to work through them, that is the sort of partner that can really effect change. – Daryl Collins Managing Director Bankable Frontier Associates MetLife Foundation’s grant came to Svasti at a critical time and is helping us transform from a single product conventional microfinance company into a multi-product, comprehensive financial services provider for low-income people. We are using the grant to develop and deliver new and innovative loan products and other financial services to our customers by building proprietary technology, processes and a one-of-a-kind credit rating system. The Foundation team that evaluated the grant had deep knowledge of the sector that helped them quickly understand and appreciate the potential impact of our proposal, which convinced them to support us. – Arun Padmanabhan CEO & Co-Founder Svasti


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    OUR GLOBAL FOCUS | Financial Inclusion MetLife Foundation in Our Communities MetLife Foundation was founded in 1976 to continue MetLife’s long tradition of corporate contributions and community involvement. While financial inclusion is our global focus, we are proud to sponsor initiatives in other philanthropic areas. Our impact expands beyond the financial health of our communities to support for medical research, arts and cultural institutions, disaster relief, and civic initiatives . The Foundation remains committed to being a positive force in every community where we work. 20 METLIFE FOUNDATION


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    ...acting globally Health and Medical Research Damon Runyon Cancer Research Foundation Clinical Investigator Award Worldwide, one in seven deaths is due to cancer. Cancer kills more people Awards for Medical Research than AIDS, tuberculosis, in Alzheimer’s Disease and malaria combined. It is Alzheimer’s medical research and public awareness campaigns the second leading cause have been a signature project for MetLife Foundation for more of death in the high-in- than 25 years. MetLife Foundation Awards for Medical Re- come countries (following search recognize excellence in medical advances and provide cardiovascular disease) and the third leading cause of death outstanding researchers with resources to pursue promising in low- and middle-income countries (behind cardiovascular ideas. At the heart of the program is a belief in research as the disease and infectious and parasitic diseases). Given the scale road to understanding and ultimately curing Alzheimer’s and and seriousness of cancer, and our commitment to healthy other devastating forms of dementia. The 2015 award winners communities, MetLife Foundation chose to expand our partner- were Randall Bateman MD and Christian Haass, PhD. A re- ship with Damon Runyon Cancer Research Foundation through search scientist and practicing physician based in St. Louis, Dr. sponsorship of the Clinical Investigator Award. Over the next Bateman is known for developing a technique known as stable three years, MetLife Foundation funding will provide support isotope-linked kinetics, or SILK, that made it possible for the to early career physician-scientists whose research will directly first time to measure central nervous system proteins in living impact patients by bridging the gap between laboratory and people. Dr. Bateman’s lab is now developing a SILK method clinical work. The goal is to identify and fund the future leaders for studying the abnormal protein that destroys the structure in biomedical research by giving them the resources to con- of brain cells in Alzheimer’s patients. He is also director and tinue their training. An important additional goal is to provide principal investigator of the first Alzheimer’s prevention trials exceptional young scientists and doctors with opportunities testing drugs for people who show no symptoms but are at to interact with industry leaders in cancer research to facilitate high genetic risk for the disease. Dr. Haas, a professor of bio- collaboration that will lead to new therapies. chemistry in Munich, was the first to demonstrate that one of the enzymes implicated in Alzheimer’s is critical to the proper regulation of the electrical insulation of brain cells. His work warned that inhibiting beta-secretase’s work could disrupt ...and locally the development of healthy neurons, and his work has been critical to ensuring that treatments currently in development or trials are both effective and safe. Disaster Relief Nepal Earthquake Response In April 2015, Nepal was devastated by a 7.8 magnitude earthquake, the worst the country had experienced in more than 80 years. More than 8,000 were killed and more than 21,000 injured, with immense damage to property and loss of homes. To help aid the victims, MetLife Foundation donated $250,000 to the International Medical Corps Nepal Earthquake Relief Fund and matched the personal contributions of 700 associates from 26 countries to the Fund. 2015 ANNUAL REPORT 21


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    MetLife in Our Communities Arts & Culture Smithsonian National Museum of African American History and Culture The newest museum on the National Mall in Washington D.C., the Smithsonian National Museum of African American History and Culture will be the only national museum devoted to telling the story of the United States through the lens of African American life, art, history, and culture. Scheduled to open in Fall 2016, the architecturally stunning, environmentally state-of-the-art Museum sits on a five-acre site adjacent to the Washington Monument. It will display more than 30,000 treasures from African American history, including Louis Armstrong’s trumpet, a Jim Crow-era railroad car, one of the planes flown by the Tuskegee Airmen, and extensive collections of African American fashion, fine arts, and Civil War-era photographs. The Museum features 380,000 square feet of space with nine galleries on five levels, providing space for educational and public programs, performances, presentations, and forums. In order to reach young people, the Museum also offers dedicated education spaces for K-12 students, with interactive learning and digital access programming focused on STEAM (science, technology, art, and mathematics) subject matter. The Museum will be free to the public and is projected to draw three to five million visitors annually. MetLife Foundation is proud to continue its long tradition of advancing cultural and artistic diversity by supporting the Museum as a Founding Donor with a $1 million grant. 22 METLIFE FOUNDATION


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    Frida Kahlo: Art, Garden, Life Exhibition Children’s Museum of Jordan at the New York Botanical Garden MetLife Foundation supports the Children’s Museum of Jordan’s Celebrations program, an initiative to build The first solo presentation of artist Frida Kahlo’s work greater cultural understanding among the nation’s youth. in New York City in more than 25 years, Frida Kahlo: A year-round program, Celebrations commemorates Art, Garden, Life was also the first ever to focus on the important national occasions such as Mother’s Day, artist’s fascination with nature, especially vivid botanical Labor Day, and Independence Day. In honor of these imagery. MetLife Foundation was the presenting sponsor and other special occasions throughout the year, the of the exhibition which included a re-creation of Kahlo’s Museum features musicians, dramatic performances, and famous garden and studio at Casa Azul, her home in interactive activities for the children, all built around the Mexico. The show also displayed more than a dozen of themes of those holidays. her paintings, and bilingual (English/Spanish) programs provided historical and cultural background information, The Children’s Museum of Jordan has become a central with photos of the garden as it appeared during Kahlo’s location for empowering children through exciting, lifetime along with quotes from the artist about Casa innovative, authentic learning experiences rooted in Azul and her deep connection to the botanical world. Jordanian culture. It is committed to enabling young The exhibit broke attendance records, bringing more Jordanians to become thinkers, future leaders, and than 500,000 visitors of all ages to the Botanical Garden. innovators as well as active citizens in their communities. More than 35,000 children took part in youth-focused The Celebrations program is one important way the programs including “Cooking with Frida” and “Frida’s Flora Children’s Museum of Jordan advances its mission and Fauna.” MetLife Foundation has a long history of of bringing children and their families closer to their supporting cultural initiatives that foster understanding community, as they explore together their nation’s of diverse cultures and that showcase the work of diverse heritage, values, traditions, and culture. artists to broad audiences. 2015 ANNUAL REPORT 23


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    MetLife in Our Communities Associate Involvement Directing Microloans to Low-Income Borrowers Kiva Kiva is the world’s first and largest crowdfunding platform for social good, with a mission to alleviate poverty by connecting people one-to-one for borrowing and lending. With as little as $25, anyone can make a loan to help a low-income borrower start or grow a business, go to school, access clean energy, or otherwise pursue their goals. In a new partnership with Kiva, MetLife associates volunteer their time to direct MetLife Foundation-funded microloans to the borrower of their choice. The program engages volunteering associates in the Foundation’s financial inclusion focus, helps them understand microfinance—and most important, provides vital support for microentrepreneurs who lack access to conventional financing. To date, more than 4,200 volunteers in MetLife’s Latin America and Europe Middle East Africa (EMEA) regions have directed microloans to borrowers in 48 countries. EMEA’s level of participation— 54 percent of all associates—set a new Kiva record for corporate engagement over a six-week period. 24 METLIFE FOUNDATION


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    Sharing Expertise to Help Nonprofits Solve Challenges Taproot Foundation Most community-based nonprofits rely on supporters for funding, but they often need technical assistance and business advice as well. Knowing who has the necessary expertise and then finding those people can be a significant challenge. Taproot Foundation plays matchmaker, connecting professionals from fields such as marketing, information technology, human resources, and strategic planning with nonprofits which need those skills. MetLife associates have enthusiastically joined forces with Taproot, providing pro bono consulting to nonprofits ranging from Junior Achievement to housing organizations to cultural groups. During single-day ScopeAthon™ events, teams of MetLife volunteers helped more than 20 nonprofit organizations in the United States diagnose problems and begin to develop solutions to address their challenges. Suiting Up and Showing Up Dress for Success MetLife has a long-standing partnership with Dress for Success, an international nonprofit that empowers women to achieve economic independence by providing gently used professional attire and other workforce readiness needs. MetLife has coordinated suiting drives for many years, and in 2015, clothing drives took place in 15 MetLife locations. But a cross-section of associates, from diverse departments as well as MetLife’s Women’s Business Network, decided to take the partnership with Dress for Success to the next level. In addition to the suiting drives, MetLife offices in the United States, Mexico, and the United Kingdom sponsored workshops where MetLife women volunteered with Dress for Success clients to strengthen their resumes, build interviewing skills, and explore career goals. 2015 ANNUAL REPORT 25


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    2015 at a Glance + $49MM MetLife and MetLife Foundation Total Giving 210 72K 30 Grantees* Volunteer Hours Countries Represented Total Commitments 2015 Global Asia 6% 29% 20% All Other 71% 49% Financial Europe/Middle 8% U.S. Inclusion East/Africa 17% Latin America Total Commitments Commitments by Region 26 METLIFE FOUNDATION *MetLife Foundation funds an additional 565 volunteer and matching gift grantees


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    Microfinance Association of Chile 250,000 2015 Grant-Making via Rockefeller Philanthropy Advisors Microfinance Information Exchange 250,000 National League of Cities 750,000 Grants in Financial Inclusion 2015 Paid Pro Mujer 47,000 SEEP Network 35,000 Access & Knowledge Taproot Foundation 92,000 Achieving the Dream 500,000 Trickle Up 50,000 Girl Scouts of the USA 223,000 United Way Worldwide 250,000 JA Worldwide (Various) 1,351,772 University of Kansas Center for Research 240,000 Local Initiatives Support Corporation 2,000,000 University of Texas at Austin 250,000 Network for Teaching Entrepreneurship 250,000 Women’s World Banking 47,000 Sesame Workshop 4,000,000 Access to Insights Total 6,727,869 TechnoServe 250,000 Trickle Up 600,000 uAspire 250,000 Financial Inclusion Total 29,651,042 Veterans Plus 250,000 Access & Knowledge Total 9,674,772 Other Grant-Making Access to Services Health Accion International 504,000 Alzheimer’s Association 250,000 Accion, The US Network 350,000 Alzheimer’s Association, NYC Chapter 35,000 Bankable Frontiers Associates via Rockefeller 2,989,469 Alzheimer’s Disease Research Foundation 80,000 Philanthropy Advisors American Federation for Aging Research 100,000 Behavioral Ideas Lab 1,652,775 Awards for Medical Research working 600,000 BURO via Rockefeller Philanthropy Advisors 82,400 with American Federation for Aging Research Community Solutions International 170,000 Damon Runyon Cancer Research Foundation 400,000 Credit Builders Alliance 250,000 New York Blood Center 250,000 Duke University - CommonCents Lab 3,000,000 Grants $10,000 and under 5,000 Freedom from Hunger 250,000 Health Total 1,720,000 Habitat for Humanity (Various) 455,600 Inter-American Development Bank 925,000 Kiva Microfunds 375,000 Civic Engagement MicroSave India via Rockefeller Philanthropy Advisors 249,260 All Stars Project 250,000 PlaNet Finance 238,000 CASA of Morris & Sussex Counties 25,000 PlaNet Finance Japan via Rockefeller 433,000 Human Rights Campaign Foundation 25,000 Philanthropy Advisors Independent Sector 15,000 Swisscontact North America 250,000 LatinoJustice PRLDEF 53,815 Un TECHO 76,647 New York City Partnership Foundation 70,000 Women’s World Banking 997,250 PFLAG 40,000 Access to Services Total 13,248,401 Regional Plan Association 25,000 SAGE 50,000 Women In Need 25,000 Access to Insights Grants $10,000 and under 50,000 Access India via Rockefeller Philanthropy Advisors 49,955 Civic Engagement Total 628,815 Accion International 272,000 Aeris Insights 25,000 Asian Strategy & Leadership Institute via 3,811 Veterans Rockefeller Philanthropy Advisors American Corporate Partners 75,000 Aspen Institute 275,000 Blue Star Families 250,000 Austin Community Foundation - Verb 1,287,000 Community Hope 15,000 Bankable Frontiers Associates via Rockefeller 250,000 En Garde Arts 60,000 Philanthropy Advisors Folds of Honor Foundation 50,000 Boulder Institute of Microfinance 160,000 Local Initiatives Support Corporation 150,000 Community Solutions International 100,000 Massachusetts General Hospital - Home Base 50,000 Corporation for Enterprise Development 50,000 Operation Finally Home 25,000 D2D Fund 750,000 Semper Fido 15,000 Encore.org 225,000 Sentinels of Freedom Scholarship Foundation 15,000 Financial Innovations Center 835,000 Team Rubicon 15,000 Greene Institute 10,000 Wounded Warrior Family Support 15,000 Inter-American Development Bank 100,000 Grants $10,000 and under 27,500 Japan NPO Center via Rockefeller Philanthropy Advisors 74,103 Veterans Total 762,500 All figures in US dollars. 2015 ANNUAL REPORT 27


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    Community Development Repertorio Espanol 100,000 Advertising Council 75,000 St. Louis Symphony Orchestra 20,000 American Red Cross 250,000 State Theatre Regional Arts Center at New Brunswick 15,000 Common Ground 150,000 Tampa Bay Performing Arts Center 25,000 Community Loan Fund of New Jersey 25,000 Taronga Zoo via Rockefeller Philanthropy Advisors 51,500 Grants $10,000 and under 87,500 Focus Ireland via Rockefeller Philanthropy Advisors 41,200 Food Bank Initiative 180,000 Arts & Culture Total 2,864,750 Generations United 175,000 International Medical Corps 318,000 Youth/Education Living Cities 100,000 American Indian College Fund 15,000 Local Initiatives Support Corporation 60,000 Asia Society 100,000 Mondo Challenge Foundation (Nepal) 25,750 Boys & Girls Clubs of America 150,000 via Rockefeller Philanthropy Advisors Boys & Girls Clubs of Delaware 25,000 Neighborhood Housing Services of New York City 50,000 Central Piedmont Community College Foundation 75,000 Trust for Public Land 100,000 CRY India via Rockefeller Philanthropy Advisors 15,450 United Neighborhood Houses 15,000 Dejme Detem Sanci (Let’s Give Children a Chance) 25,750 United Way Romania via Rockefeller 195,274 via Rockefeller Philanthropy Advisors Philanthropy Advisors Hispanic Scholarship Fund 30,000 Grants $10,000 and under 66,425 INROADS 250,000 Community Development Total 1,826,649 Matching Gifts for Higher Education 774,322 Naruc (Armful) via Rockefeller Philanthropy Advisors 20,600 Arts & Culture National FFA Foundation 22,000 Afro-American Cultural Center 30,000 Natural Heritage Trust 100,000 American Museum of Natural History 150,000 New Leaders 100,000 Americas Society 75,000 New Teacher Center 100,000 Ballet Hispanico of New York 125,000 Opportunity Network 50,000 Bechtler Museum of Modern Art 25,000 Police Athletic League 50,000 Boston Symphony Orchestra 15,000 Scholarship Programs for Employees’ Children 904,948 Brooklyn Academy of Music 50,000 StriveTogether 125,000 Brooklyn Children’s Museum 25,000 United Negro College Fund 50,000 Carnegie Hall 50,000 Grants $10,000 and under 42,750 Chamber Music Society of Lincoln Center 35,000 Youth/Education Total 3,025,820 Charlotte Symphony Orchestra Society 25,000 Chicago Children’s Museum 25,000 Associate Involvement Children’s Museum Jordan via Rockefeller 25,750 Various Charities with an Employee Engagement Component 781,959 Philanthropy Advisors KaBOOM! 497,072 Dayton Art Institute 15,000 Local United Ways 615,000 Foundation for the Carolinas 25,000 Special Olympics 200,000 High Line 50,000 Associate Involvement Total* 2,094,031 Japan Society 75,000 Levine Museum of the New South 15,000 Lincoln Center for the Performing Arts 50,000 Lower East Side Tenement Museum 15,000 Marbles Kids Museum 75,000 Metropolitan Museum of Art 130,000 Other Grant-Making/Total 12,922,565 Museum of Science and Industry 25,000 Museum of Science, Boston 25,000 Financial Inclusion 29,651,042 National Museum of African American 650,000 History and Culture Grant-Making/Total (brought forward from page 27) New York Botanical Garden 250,000 New York City Ballet 25,000 New York City Center 50,000 New York Hall of Science 25,000 Total MetLife 42,573,607 New York Philharmonic 250,000 New York Public Library 25,000 Foundation Giving New York Public Radio 50,000 *An additional $1,884,019 of Associate Involvement is included in Fi- North Carolina Symphony Society 25,000 nancial Inclusion Providence Children’s Museum 25,000 Public Theater 35,000 28 METLIFE FOUNDATION


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    Deloitte & Touche LLP 30 Rockefeller Plaza New York, NY 10112 USA Tel: +1 212 436 2000 Fax: +1 212 436 5000 www.deloitte.com INDEPENDENT AUDITORS’ REPORT To the Board of Directors of MetLife Foundation: We have audited the accompanying financial statements of MetLife Foundation (the “Foundation”), which com- prise the statements of financial position as of December 31, 2015 and 2014, and the related statements of ac- tivities and changes in net assets and cash flows for the years then ended, and the related notes to the financial statements. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, im- plementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the fi- nancial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Foundation’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Foundation’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the over- all presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial po- sition of the Foundation as of December 31, 2015 and 2014, and the changes in its net assets and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. February 12, 2016 2015 ANNUAL REPORT 29


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    METLIFE FOUNDATION STATEMENTS OF FINANCIAL POSITION AS OF DECEMBER 31, 2015 AND 2014 ASSETS NOTES 2015 2014 Investments: Investments, at fair value: Equity investments 1 $ 168,735,597 $ 168,090,542 Short-term investments 1 - 16,697,762 Program-related investments, net of allowance 1 3,835,065 4,085,065 Total investments 172,570,662 188,873,369 Cash and cash equivalents 1 19,965,464 1,154,376 Due and accrued investment income 2,930 2,930 Amounts receivable for investments sold 1 3,743,275 5,629,607 TOTAL ASSETS $ 196,282,331 $ 195,660,282 LIABILITIES AND NET ASSETS Cash overdraft 1 $ 1,269,850 $ 1,455,693 Accrued expenses and other payables 1,525 376,500 Federal excise tax payable 304,548 490,192 Total liabilities 1,575,923 2,322,385 Net assets – unrestricted 194,706,408 193,337,897 TOTAL LIABILITIES AND NET ASSETS $ 196,282,331 $ 195,660,282 See notes to financial statements METLIFE FOUNDATION STATEMENTS OF ACTIVITIES AND CHANGES IN NET ASSETS FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014 REVENUE NOTES 2015 2014 Investment income: Dividends and interest $ 4,898,620 $ 4,109,505 Change in fair value of investments 1 (2,064,364) 13,512,871 Allowance for program-related investments 1 (750,000) - Contributions from MetLife 3 44,000,000 44,000,000 Contributed services 1,4 1,441,593 - Total revenue 47,525,849 61,622,376 GRANTS AND EXPENSES Grants paid 42,573,607 41,068,034 General expenses 4 2,084,782 472,557 Expense of contributed services 1,4 1,441,593 - Federal excise tax 5 57,356 353,063 Total grants and expenses 46,157,338 41,893,654 CHANGE IN NET ASSETS 1,368,511 19,728,722 Net assets – beginning of year 193,337,897 173,609,175 NET ASSETS – end of year $ 194,706,408 $ 193,337,897 See notes to financial statements 30 METLIFE FOUNDATION


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    METLIFE FOUNDATION STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014 CASH FLOWS FROM OPERATING ACTIVITIES: 2015 2014 Change in net assets $ 1,368,511 $ 19,728,722 Adjustments to reconcile change in net assets to net cash (used in) provided by operating activities: Change in fair value of investments 2,064,364 (13,512,871) Change in allowance for program-related investments 750,000 - Accretion of discount/amortization of premiums on investments (20,947) (15,828) Change in due and accrued investment income - 542 Change in cash overdraft (185,843) (1,392,819) Change in accrued expenses and other payables (374,975) 59,075 Change in federal excise tax payable (185,644) 127,763 Net cash provided by operating activities 3,415,466 4,994,584 CASH FLOWS FROM INVESTING ACTIVITIES: Proceeds from sale of investments 101,344,373 71,843,276 Purchase of investments (85,948,751) (84,999,046) Net cash provided by (used in) investing activities 15,395,622 (13,155,770) NET CHANGE IN CASH AND CASH EQUIVALENTS 18,811,088 (8,161,186) Cash and cash equivalents – beginning of year 1,154,376 9,315,562 CASH AND CASH EQUIVALENTS – end of year $ 19,965,464 $ 1,154,376 Supplemental disclosures of cash flow information – Federal excise taxes paid $ 243,000 $ 225,300 See notes to financial statements METLIFE FOUNDATION NOTES TO FINANCIAL STATEMENTS AS OF DECEMBER 31, 2015 AND 2014 AND FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014 The MetLife Foundation (the “Foundation”) was formed for the purpose of supporting various philanthropic organizations and activities, principally in the United States. During 2013, the Foundation began an initiative of devoting resources to advancing financial inclusion, helping to build a secure future for individuals and communities around the world. 1. ACCOUNTING POLICIES Summary of Significant Accounting Policies The Foundation’s financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) which recognize income when earned and expenses when incurred. Investments at Fair Value – The Foundation’s equity investments are principally comprised of Exchange Traded Funds (ETFs). Short-term investments include investments with remaining maturities of one year or less, but greater than three months, at the time of acquisition. Related holdings gains and losses are reported in investment income. The Foundation is not exposed to any significant concentration of credit risk in its investment portfolio. Program-Related Investments - Such investments are authorized by the Board of Directors and represent loans to or equity investments in qualified charitable organizations or investments for appropriate charitable purposes as set forth in the Internal Revenue Code and regulations thereunder, and are carried at outstanding indebtedness or cost. An allowance for possible losses is established when the Foundation does not expect repayment in full on any program-related loan and when such uncollectible amount can be reasonably estimated. At December 31, 2015 the Foundation recorded an allowance for possible losses on program-related investments of $750,000 in investments income on the statements of activities and changes in net assets. At December 31, 2014, this allowance was zero. In addition, the income generated by the program-related loans is generally dependent upon the financial ability of the borrowers to keep current on their obligations. For disclosure purposes, a reasonable estimate of fair value was not made since the difference between fair value and the outstanding indebtedness or cost would not be significant. Maturities of the loan investments range from 2021 through 2022. Cash Equivalents and Cash Overdraft - Cash equivalents are highly liquid investments purchased with an original or remaining maturity of three months or less at the date of purchase and are carried at fair value. The Foundation generally invests funds required for cash disbursements in cash equivalents and transfers such funds to its operating bank account when checks are presented for payment. The cash overdrafts at December 31, 2015 and December 31, 2014 represent grant disbursements that cleared the operating bank account in 2016 and 2015, respectively. 2015 ANNUAL REPORT 31


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    Amounts Receivable for Investments Sold – Security transactions are recorded on the trade date. A receivable is recognized for securities sold but not yet settled as of December 31, 2015. Contributions - All contributions received to date by the Foundation have been unrestricted and, therefore, all of its net assets are similarly unrestricted. All contributions received during 2015 and 2014 have been from MetLife, Inc. and subsidiaries (“MetLife”). Contributed Services – For the year ended December 31, 2015, contributed services from MetLife are recorded at the cost recognized by MetLife in providing those services and are included in revenue and grants and expenses in the statements of activities. See “Adoption of New Accounting Pronouncements.” Grants - Such transactions are authorized by the Board of Directors. Conditional grants authorized for payment in future years are subject to further review and approval by the Foundation. Use of Estimates - The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and changes therein and the disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Since the obligation to make payment of conditional multi-year grants and program-related loans is dependent upon each grantee/borrower’s satisfaction of the applicable conditions, the amount of conditional multi-year grants and program-related loans reported as commitments is based upon the expected or estimated fulfillment of such conditions. Adoption of New Accounting Pronouncements Effective January 1, 2015, the Foundation prospectively adopted new guidance requiring a recipient not-for-profit (“NFP”) entity to recognize all services received from personnel of an affiliate that directly benefit the NFP and for which the affiliate does not charge the NFP. Those services should be measured at the cost recognized by the affiliate for the personnel providing those services. However, if measuring a service received from personnel of an affiliate at cost will significantly overstate or understate the value of that service, the recipient NFP may elect to recognize that service at its fair value. The adoption resulted in an increase to revenues and a corresponding increase to general expenses in the amount of $1,441,593 for the year ended December 31, 2015. Future Adoption of New Accounting Pronouncements In January 2016, the Financial Accounting Standards Board (“FASB”) issued new guidance (Accounting Standards Update (“ASU”) 2016-01, Financial Instruments- Overall: Recognition and Measurement of Financial Assets and Financial Liabilities) on the recognition and measurement of financial instruments. The new guidance changes the current accounting guidance related to (1) the classification and measurement of certain equity investments, (2) the presentation of changes in the fair value of financial liabilities measured under the fair value option that are due to instrument-specific credit risk, and (3) certain disclosures associated with the fair value of financial instruments. The new guidance is effective for fiscal years beginning after December 15, 2018. Early adoption is permitted for the instrument-specific credit risk provision and a provision that eliminates the fair value disclosures for financial instruments not recognized at fair value. The Foundation is currently evaluating the impact of this guidance on its financial statements. In May 2014, the FASB issued a comprehensive new revenue recognition standard (Accounting Standards Update (“ASU”) 201409, Revenue from Contracts with Customers (Topic 606)), effective retrospectively for fiscal years beginning after December 15, 2016. In August 2015, the FASB amended the guidance to defer the effective date by one year, effective for fiscal years beginning after December 15, 2017. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016. The new guidance will supersede nearly all existing revenue recognition guidance under GAAP; however, it will not impact the accounting for insurance contracts, leases, financial instruments and guarantees. For those contracts that are impacted by the new guidance, the guidance will require an entity to recognize revenue upon the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to, in exchange for those goods or services. The Foundation is currently evaluating the impact of this guidance on its financial statements. 2. FAIR VALUE MEASUREMENTS The Foundation has elected to measure its equity investments, short-term investments and cash equivalents at fair value with related holdings gains and losses reported in investment income. When developing estimated fair values, the Foundation considers three broad valuation techniques: (i) the market approach, (ii) the income approach, and (iii) the cost approach. The Foundation determines the most appropriate valuation technique to use, given what is being measured and the availability of sufficient inputs, giving priority to observable inputs. The Foundation categorizes its assets and liabilities measured at estimated fair value into a three-level hierarchy, based on the significant input with the lowest level in its valuation. The input levels are as follows: Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities. The Foundation defines active markets based on average trading volume for equity securities. The size of the bid/ask spread is used as an indicator of market activity for fixed maturity securities. Level 2 Quoted prices in markets that are not active or inputs that are observable either directly or indirectly. These inputs can include quoted prices for similar assets or liabilities other than quoted prices in Level 1, quoted prices in markets that are not active, or other significant inputs that are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 Unobservable inputs that are supported by little or no market activity and are significant to the determination of estimated fair value of the assets or liabilities. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the asset or liability. 32 METLIFE FOUNDATION


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    Financial markets are susceptible to severe events evidenced by rapid depreciation in asset values accompanied by a reduction in asset liquidity. The Foundation’s ability to sell securities, or the price ultimately realized for these securities, depends upon the demand and liquidity in the market and increases the use of judgment in determining the estimated fair value of certain securities. Considerable judgment is often required in interpreting market data to develop estimates of fair value, and the use of different assumptions or valuation methodologies may have a material effect on the estimated fair value amounts. Recurring Fair Value Measurements The assets and liabilities measured at estimated fair value on a recurring basis and their corresponding placement in the fair value hierarchy presented below. Level 1 Level 2 Level 3 Total Estimated Fair Value December 31, 2015: Equity investments $ 168,720,597 $ - $ 15,000 $ 168,735,597 Cash equivalents 9,499,969 9,997,432 - 19,497,401 Short-term investments - - - - Total $ 178,220,566 $ 9,997,432 $ 15,000 $ 188,232,998 December 31, 2014: Equity investments $ 67,214,766 $ 100,860,776 $ 15,000 $ 168,090,542 Cash equivalents 399,998 199,993 - 599,991 Short-term investments - 16,697,762 - 16,697,762 Total $ 67,614,764 $ 117,758,531 $ 15,000 $ 185,388,295 The following describes the valuation methodologies used to measure assets and liabilities at fair value. The description includes the valuation techniques and key inputs for each category of assets or liabilities that are classified within Level 2 and Level 3 of the fair value hierarchy. Equity Investments, Cash Equivalents and Short-term Investments When available, the estimated fair value of these financial instruments is based on quoted prices in active markets that are readily and regularly obtainable. Generally, these are the most liquid of the Company’s securities holdings and valuation of these securities does not involve management’s judgment. When quoted prices in active markets are not available, the determination of estimated fair value is based on market standard valuation methodologies, giving priority to observable inputs. The significant inputs to the market standard valuation methodologies for certain types of securities with reasonable levels of price transparency are inputs that are observable in the market or can be derived principally from, or corroborated by, observable market data. When observable inputs are not available, the market standard valuation methodologies rely on inputs that are significant to the estimated fair value that are not observable in the market or cannot be derived principally from, or corroborated by, observable market data. These unobservable inputs can be based in large part on management’s judgment or estimation and cannot be supported by reference to market activity. Even though these inputs are unobservable, management believes they are consistent with what other market participants would use when pricing such securities and are considered appropriate given the circumstances. All instruments have valuations using independent pricing sources, matrix pricing, discount cash flow methodologies or other similar techniques that use market observable and/or unobservable inputs. Instrument Level 2: Observable Inputs Level 3: Unobservable Inputs Equity Securities Valuation Techniques: Principally the market approach. Valuation Techniques: Principally the market and income approaches. Key Input: Key Inputs: • quoted prices in markets that are not considered active • credit ratings; issuance structures • quoted prices in markets that are not active for identical or similar securities that are less liquid and based on lower levels of trading activity than securities classified in Level 2 • independent non-binding broker quotations Cash Equivalents and Short-term investments Valuation Techniques: Principally the market approach. • N/A Key Inputs: • quoted prices in markets that are not active • benchmark U.S. Treasury yield or other yields • the spread off the U.S. Treasury yield curve for the identical security • issuer ratings and issuer spreads; broker-dealer quotes • comparable securities that are actively traded 2015 ANNUAL REPORT 33


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    Transfers between Levels Overall, transfers between levels occur when there are changes in the observability of inputs and market activity. Transfers into or out of any level are assumed to occur at the beginning of the period. For assets measured at estimated fair value and still held at December 31, 2015, transfers between Levels 1 and 2 were $82 million. There were no transfers into or out of Level 3 during the year ended December 31, 2015. For assets measured at estimated fair value and still held at December 31, 2014, transfers between Levels 1 and 2 were $80 million. The following tables summarize the change of all assets measured at estimated fair value on a recurring basis using significant unobservable inputs (Level 3). There were no unrealized or realized gains (losses) on Level 3 assets during the years ended December 31, 2015 and 2014. Balance, January 1 Investment Income (1) Purchases Sales Balance, December 31 December 31, 2015: Equity investments $ 15,000 $ - $ - $ - $ 15,000 Balance, January 1 Investment Income (1) Purchases Sales Balance, December 31 December 31, 2014: Equity investments $ 15,000 $ - $ - $ - $ 15,000 (1) Amortization of premium/accretion of discount is included within investment income. Interest and dividend accruals, as well as cash interest coupons and dividends received, are excluded from the rollforward. 3. CONTRIBUTIONS In 2015 and 2014, MetLife contributed cash of $44,000,000 to the Foundation. 4. RELATED PARTY TRANSACTIONS The Foundation is supported by MetLife. MetLife also provides the Foundation with management and administrative services without charge. The Statements of Activities and Changes in Net Assets include revenue from contributed services and a corresponding cost of contributed services of $1,441,593 for the year ended December 31, 2015. See Note 1. 5. FEDERAL TAXES The Foundation is exempt from Federal income taxes; however, as a private foundation, it is subject to Federal excise taxes on its net taxable investment income and realized capital gains. The rate for current excise taxes was 2% in 2015 and 2014. The rate for deferred excise taxes was 2% in 2015 and 2014. There were no uncertain tax positions taken by the Foundation as of December 31, 2015. 6. COMMITMENTS As of December 31, 2015, the Board of Directors had authorized grants and program-related investments for future years as follows: Conditional Grants Program-Related Investments 2016 $12,975,662 $2,500,000 2017 11,686,119 - 2018 2,674,100 - $27,335,881 $2,500,000 These commitments are based on conditions that must be met and are therefore not included as a liability on the Statements of Financial Position. As of December 31, 2015, none of the conditional grants required further review and approval by the Board of Directors prior to payment. 7. SUBSEQUENT EVENTS The Foundation has evaluated all subsequent transactions and events after the statement of financial position date and through February 12, 2016, which is the date these financial statements were available to be issued. There are no transactions or events requiring disclosure. ***** 34 METLIFE FOUNDATION


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    MetLife Foundation Board and Staff Board of Directors Frans Hijkoop Executive Vice President & Chief Human Resources Officer Michel Khalaf President, Europe, Middle East, and Africa Esther Lee Executive Vice President & Global Chief Marketing Officer Maria Morris Executive Vice President, Global Employee Benefits John Rosenthal Senior Managing Director, Global Portfolio Management Oscar Schmidt Executive Vice President, Latin America Eric Steigerwalt Executive Vice President, U.S. Retail Chris Townsend President, Asia A. Dennis White President & CEO, MetLife Foundation Michael Zarcone Chairman, MetLife Foundation and Executive Vice President, Corporate Affairs Staff Laura Caggiano Credits Nalleli Garcia All photos from MetLife/MetLife Foundation files except April Hawkins where otherwise indicated. PAGE 6 (top) courtesy of WSSN. PAGE 7 (all photos) courtesy of LISC. PAGE 8 (top) courtesy of Fair Alison Jarrett Finance (bottom) stock photography. PAGE 9 (top) courtesy of Svasti; Mavel Jones (bottom) courtesy of NFCDCU. PAGE 10 (collage of screen shots) courtesy of WSJ. Custom Studios. PAGE 12 courtesy of International Rick Love Rescue Committee. PAGE 13 courtesy of TrickleUp. PAGE 16 (right) stock photography. PAGE 19 (top and bottom) courtesy of Accion. Charlie Pettigrew PAGE 20 courtesy of Pro Mujer. PAGE 22 courtesy of Smithsonian Evelyn Stark Institution. PAGE 23 (left) courtesy of New York Botanical Gardens; (right) courtesy of Children’s Museum of Jordan. All photos used Junko Tashiro with permission. Krishna Thacker Publication designed and produced by Sarah Willis Anne Folan & Associates, Washington, DC. Rebecca Yang 2015 ANNUAL REPORT 35


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    Financial inclusion means that households and businesses have convenient access to a full suite of quality, affordable financial services, delivered by trustworthy providers, with respect for the customer. These services promote better management of incomes and assets, ultimately contributing to greater self- sufficiency and financial security. MetLife Foundation is proud to contribute to financial inclusion. The global effort is making great progress. And it succeeds by focusing on customers. MetLife Foundation | 1095 Avenue of the Americas New York, NY 10036 | www.metlife.org | © 2016 METLIFE, INC.


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