Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L (exp0810)MLIC-LD Study of International Employee Benefits Trends

Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L (exp0711) The Employee Benefits Advantage: Leveraging a Global Perspective DIVERSE ECONOMIES AND DEMOGRAPHICS INDIA MEXICO AUSTRALIA UNITED KINGDOM UNITED STATES GDPPOPULATIONMEDIAN AGE (YEARS) LIFE EXPECTANCY AT BIRTH (YEARS) $ 4.2 trillion $ 1.2 trillion $681 billion $ 2.1 trillion $ 13.2 trillion 1.1 billion million 20.2 million 59.7 million million GDP = Purchasing power parity in international dollars, All other figures as of Source: World Bank (GDP and life expectancy), World Health Organization (population), United Nations (median age). Benefits practices vary significantly from country to country based on government social programs, size and competitiveness of labor markets, and national culture and tradition.

Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L (exp0711) The Employee Benefits Advantage: Leveraging a Global Perspective Overview Business expansion Employee opportunities New competition Rapid growth LESS DEVELOPED MORE DEVELOPED Aging population Longevity New family dynamics Pressure on social security and health care systems Retirement concerns Work life balance Work force migration Spending power Healthier lifestyles Improved health care Decline in birthrates Using history as a guide, we know that economic development in individual countries tends to follow a familiar pattern.

Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L (exp0711) The Employee Benefits Advantage: Leveraging a Global Perspective Overview India  55% of employees surveyed have not assessed income needs in case of disability  20% have taken any retirement planning steps Mexico  62% of employees surveyed have not taken steps to determine their household’s life insurance needs  19% have taken retirement planning steps Australia  58% have not taken steps determine their household’s life insurance needs  43% have taken retirement planning steps U.K.  22% of employees surveyed have not taken steps to determine their household’s life insurance needs  70% have taken steps to determine their needs for retirement income In both developing and developed markets, vast populations are underinsured and unprepared for retirement.

Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L (exp0711) The Employee Benefits Advantage: Leveraging a Global Perspective INDIA MEXICO AUSTRALIA UNITED KINGDOM UNITED STATES #1#2#3 Health insurance Job security Enough money to live on Job security Paying bills during sudden income loss Job security Paying bills during sudden income loss Enough money to live on Health insurance Job security More time to spend with family Health insurance TOP THREE FINANCIAL CONCERNS AND WORK/LIFE GOALS OF EMPLOYEES Employees surveyed in these countries cite having enough money to live on and paying bills after a sudden income loss among their top financial concerns. For employees surveyed in the U.S., India and Mexico, health insurance is also among the top three financial concerns.

Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L (exp0711) The Employee Benefits Advantage: Leveraging a Global Perspective Overview INDIA MEXICO AUSTRALIA UNITED KINGDOM UNITED STATES #1#2#3 Controlling health and welfare benefits costs; increasing employee productivity Increasing employee productivity Retaining employees Helping employees make better financial decisions Increasing employee job satisfaction Increasing employee productivity Attracting employees Controlling costs Addressing more of employees’ different needs Controlling health and welfare benefit costs Increasing employee job satisfaction Increasing employee productivity MOST IMPORTANT BENEFITS OBJECTIVES CITED BY EMPLOYERS OFFERING BENEFITS Employers have an opportunity to find better ways of attracting and retaining good workers in a tight labor market. In the highly developed markets of the U.K. and Australia, “retaining employees” is named most frequently by employers as a benefits objective.

Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L (exp0711) The Employee Benefits Advantage: Leveraging a Global Perspective  Recruiting and retaining the best employees  Increasing productivity of employees  Managing the costs of benefits  Employees’ need for financial planning  Employees’ need for financial protection  The diminishing role of the state in health and social welfare programs Overview A set of common challenges faces employers in the countries surveyed, including:

Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L (exp0711) The Employee Benefits Advantage: Leveraging a Global Perspective Overview  Address global trends and best practices  Country-specific data and analysis will demonstrate the types of local distinctions  Domestic companies can gain a more global perspective Solutions to these challenges may be found by leveraging a more global perspective and applying it to each country’s unique set of circumstances.

Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L (exp0711) India – Profile MARKET PROFILE  3 rd largest global economy 3  GDP over $4.2 trillion 4  Annual national income per capita: $820 5  Rapidly growing economy, but poverty is pervasive 6  Heavily agricultural (18% of GDP), but rapidly industrializing 7  Working age population (ages 15-64) expected to jump from 704 million in 2005 to 1.0 billion in  Median age: 23.8 years 9  Life expectancy at birth:

Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L (exp0711) India – Profile BENEFITS AT A GLANCE  Retirement benefits are dominated by a government- mandated employer benefit called the Gratuity, by which every employee, upon leaving his or her employer after more than five years of service, collects 15 days of salary for each year of service. 11  Workers may also save for retirement with a tax-favored vehicle called a Public Provident Fund, to which some employers also contribute.  The life insurance market is dominated by the government- owned Life Insurance Corporation of India (LIC), but private insurers are entering the Indian market.  A new regulatory body, the Pension Fund Regulatory and Development Authority, is expected to pave the way for more modern financial products.

Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L (exp0711) India – Employer Perspective Overview TOP THREE FINANCIAL CONCERNS AND WORK/LIFE GOALS OF EMPLOYEES CONTROLLING HEALTH AND WELFARE BENEFIT COSTS INDIA: MOST IMPORTANT BENEFITS OBJECTIVES CITED BY EMPLOYERS THAT OFFER BENEFITS INCREASING EMPLOYEE PRODUCTIVITY HELPING EMPLOYEES MAKE BETTER FINANCIAL DECISIONS ADDRESSING DIFFERENT ENEEDS OF EMPLOYEES INCREASING EMPLOYEE JOB SATISFACTION REDUCING HUMAN RESOURCES ADMINISTRATIVE COSTS ATTRACTING EMPLOYEES RETAINING EMPLOYEES 96% 90% 89% 88% 84% 88% 87% Percentages have been rounded to the nearest whole number Indian employers surveyed place controlling costs and increasing employee productivity as more important benefits objectives than attracting and retaining talented workers which is hardly a surprising finding in a country with a huge labor surplus and an expanding population.

Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L (exp0711) India – Employee Perspective  Nearly half (48%) of Indian employees surveyed whose employers do not offer benefits would be interested in purchasing retirement planning products through their employer, even if they had to pay 100% of the cost.  51% of Indian employees currently lacking employer-provided benefits say they would be interested in purchasing term life insurance through their employer, even if they had to pay 100% of the cost. Employees say that despite their need for retirement products and insurance, such benefits are not a major factor in their employment decisions. However any current ambivalence about employer benefits may be more attributable to a lack of employee education about the value of various benefits products than to a lack of need.

Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L (exp0711) India – Employee Perspective India Australia U.K. Overview Study Methodology TOP THREE FINANCIAL CONCERNS AND WORK/LIFE GOALS OF EMPLOYEES APPROPRIATE HEALTH INSURANCE INDIA: EMPLOYEES’ TOP CONCERNS ABOUT FINANCIAL SECURITY JOB SECURITY ENOUGH MONEY TO LIVE ON ENOUGH MONEY FOR CHILDREN’S EDUCATION ENOUGH MONEY TO PAY BILLS DURING SUDDEN INCOME LOSS RESOURCES AND TIME TO CARE FOR AGING PARENTS OR RELATIVES BEING ABLE TO AFFORD QUALITY CHILD CARE ENOUGH MONEY TO BUY A HOME 82% 81% 80% 79% 73% 79% 76% MORE TIME TO SPEND WITH FAMILY 71% ENOUGH MONEY SO ONE PARENT CAN STAY HOME WITH CHILDREN 73% Percentages have been rounded to the nearest whole number When it comes to worries about retirement issues, a top financial concern among Indian workers surveyed is having enough money to take care of elderly parent or in-laws.

Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L (exp0711) India - Conclusions Benefits Strategies for Tomorrow, Today Indian employers regard controlling costs and increasing employee productivity as more important benefits objectives than attracting and retaining talented workers. Despite the country’s labor surplus, benefits are seen by employers in certain service-sector industries – or in areas in which multinational outsourcing business has intensified demand for labor—as a way to satisfy highly skilled without driving up wages:  Companies offering health and life insurance provide two financial solutions that are in high demand.  Retirement planning products can provide employers with a long-term strategic option for meeting benefits goals.  Employers can work with providers of financial products to educate employees on how benefits can improve their financial security and quality-of-life.  Offering voluntary benefits is a way to increase the value of benefits offerings without increasing costs.

Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L (exp0711) Mexico - Profile MARKET PROFILE  12 rd largest global economy 21  GDP of $1.2 trillion 22  Annual national income per capita: $7,  Rapidly growing economy, the “informal” economy has a sizeable presence  Mix of modern and outmoded industries; GDP: 70% services, 26% industry, 4% agriculture 24  Working age population (ages 15-64) expected to jump from 66.1 million in 2005 to 86.4 billion in  Median age: 25.6 years 26  Life expectancy at birth: 75.4 years 27

Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L (exp0711) Mexico - Profile BENEFITS AT A GLANCE  A mandatory retirement savings system is paid for by employers, at 2% of wages, and managed in individual investment accounts by registered organizations known as AFORES. 28  To help restore its public employee pension system to solvency, Congress voted to raise, by 2028, the retirement age for civil servants to an average of 59 years from 49.5 years and workers’ pension contributions to 6.125% from 3.5% by 2012—echoing reforms of private-sector pensions approved a decade ago. 29  Mexico has a decentralized national health system, but employees who can afford private care tend to use it and buy insurance for it. 30

Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L (exp0711) Mexico – Employer Perspective TOP THREE FINANCIAL CONCERNS AND WORK/LIFE GOALS OF EMPLOYEES INCREASING EMPLOYEE PRODUCTIVITY MEXICO: MOST IMPORTANT BENEFITS OBJECTIVES CITED BY EMPLOYERS THAT OFFER BENEEFITS INCREASING EMPLOYEE JOB SATISFACTION CONTROLLING HEALTH AND WELFARE BENEFITS COSTS ATTRACTING EMPLOYEES REDUCING HUMAN RESOURCES ADMINISTRATIVE COSTS ADDRESSING DIVERSE NEEDS OF EMPLOYEES HELPING EMPLOYEES MAKE BETTER BENEFITS DECISIONS RETAINING EMPLOYEES 99% 91% 85% 83% 70% 79% 75% HELPING EMPLOYEES MAKE BETTER FINANCIAL DECISIONS 70% Percentages have been rounded to the nearest whole number 82% of Mexican employers say they are having difficulty finding suitable talent to fill jobs despite the abundance of general labor. 34 Mexican employers view benefits plans more as tools for increasing employee productivity and job satisfaction than for attracting and retaining workers.

Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L (exp0711) Mexico – Employee Perspective TOP THREE FINANCIAL CONCERNS AND WORK/LIFE GOALS OF EMPLOYEES JOB SECURITY MEXICO: EMPLOYEES’ TOP CONCERNS ABOUT FINANCIAL SECURITY ENOUGH MONEY TO PAY BILLS DURING A SUDDEN INCOME LOSS APPROPRIATE HEALTH INSURANCE ENOUGH MONEY FOR CHILDREN’S EDUCATION ENOUGH MONEY TO LIVE ON MORE TIME TO SPEND WITH FAMILY ENOUGH MONEY TO BUY A HOME ENOUGH MONEY SO ONE PARENT CAN STAY HOME WITH CHILDREN 79% 77% 75% 74% 72% 65% 71% 69% RESOURCES AND TIME TO CARE FOR AGING PARENTS OR RELATIVES 61% 52% BEING ABLE TO AFFORD QUALITY CHILD CARE Percentages have been rounded to the nearest whole number The top three concerns of Mexican employees surveyed about financial security are job security, having enough money to pay bills during sudden income loss and having appropriate health insurance

Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L (exp0711) Mexico - Conclusions Benefits Strategies for Tomorrow, Today Mexico has long opened its borders to multinational investment, and is one of the leading nations in facilitating trade agreements worldwide. But these developments, while boosting domestic economic growth at an enviable rate, can reshape the workplace environment. Mexican employees increasingly exposed to multinational influences will doubtless be drawn into the very human game of drawing comparisons. And in such an increasingly competitive landscape, Mexican employers looking to maintain top-quality workforces will increasingly feel compelled to reassess their own benefits practices:  Offer a greater range of benefits such as health insurance and an employer sponsored savings fund than is standard practice.  Educating employees on the importance of financial planning, insurance and retirement savings can deliver significant benefits to both companies and workers for a minimal investment on the part of Mexican employers.  Voluntary benefits represent a valuable and cost-effective tool for employers.

Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L (exp0711) Australia – Profile India U.K. Study Methodology Overview MARKET PROFILE  16 th largest global economy 37  GDP of $681 billion 38  Annual national income per capita: $35,  Developed economy, capitalist system  Dominated by services sector (70% of GDP) 40  Working age population (ages 15-64) expected to grow from 13.7 million in 2005 to 15.5 million in  Median age 36.7 years 42  Life expectancy at birth: 80.6 years 43

Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L (exp0711) Australia – Profile BENEFITS AT A GLANCE  Superannuation is a government-regulated, mandatory retirement savings program for all Australian workers; 9% of employee salary is contributed annually by employers; additional contributions are voluntary. 44  All superannuation funds have an investment component; many also have, on either a voluntary or mandatory basis, an insurance component: term life, disability and income protection. 45  Employees may purchase additional insurance benefits if offered, and costs are deducted from their investment account. 46  Government covers all Australians, but private health insurance is common. 47

Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L (exp0711) Australia – Employer Perspective In 2007, 61% of Australian employers surveyed experienced difficulty in finding the right people to fill jobs, up from 32% in 2006 and significantly above the global average of 41% 53 TOP THREE FINANCIAL CONCERNS AND WORK/LIFE GOALS OF EMPLOYEES RETAINING EMPLOYEES AUSTRALIA: MOST IMPORTANT BENEFITS OBJECTIVES OF ALL EMPLOYERS INCREASING EMPLOYEE PRODUCTIVITY INCREASING EMPLOYEE JOB SATISFACTION ADDRESSING DIVERSE NEEDS OF EMPLOYEES HELPING EMPLOYEES MAKE BETTER BENEFITS DECISIONS ATTRACTING EMPLOYEES HELPING EMPLOYEES MAKE BETTER FINANCIAL DECISIONS REDUCING HUMAN RESOURCES ADMINISTRATIVE COSTS 89% 87% 82% 71% 68% 64% 66% 65% Percentages have been rounded to nearest whole number. Australian employers are feeling pressure to attract and retain talented workers.

Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L (exp0711) Australia – Employee Perspective Percentages have been rounded to nearest whole number. TOP THREE FINANCIAL CONCERNS AND WORK/LIFE GOALS OF EMPLOYEES OUTLIVING RETIREMENT MONEY AUSTRALIA: EMPLOYEES’ TOP CONCERNS ABOUT RETIREMENT BEING ABLE TO AFFORD HEALTH CARE IN RETIREMENT YEARS HAVING TO WORK FULL-TIME OR PART-TIME TO LIVE COMFORTABLY IN RETIREMENT YEARS PROVIDING FOR YOUR SPOUSE/PARTNER’S LONG- TERM CARE NEEDS PROVIDING FOR YOUR OWN LONG-TERM CARE NEEDS 49% 44% 43% 39% 38% HAVING ENOUGH MONEY TO TAKE CARE OF ELDERLY PARENTS OR IN-LAWS 29% 43% understand retirement needs 42% planned for retirement 42% determined life insurance needs 35% determined income protection needs 41% of Australian employees surveyed hope to retire in their 50s – 45% in their 60s, given their ambitions plans for retirement and long life expectancy, most Australians are worried about having enough money to afford it.

Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L (exp0711) Australia - Conclusions Study Methodology Benefits Strategies for Tomorrow, Today Australia’s superannuation funds have succeeded in providing workers with fundamental coverage for retirement and family protection in case of disablement, but this success appears to have bred a degree of complacency among workers when it comes to savings and insurance. However, the need for additional financial advice and education about their value opens a door for growth in employer- provided benefits. As employees become aware that economic and demographic realities could threaten their visions of financial security and retirement lifestyle, they will increasing look to augment their current superannuation coverage. This will provide an opportunity for employers looking to improve employee retention rates, as well as for super funds looking for ways to grow their asset base:  In creating benefits plans, employers should first focus on educating employees about financial risks and appropriate coverage.  Financial planning services will likely prove appealing to the large share of Australian employees that are worried about paying for retirement but have done little to prepare.  Employers may find good results in constructing benefits packages that provide a high degree of personalization, with offerings that span insurance, investments and work/life options.

Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L (exp0711) United Kingdom - Profile India Australia MARKET PROFILE  6 th largest global economy 57  GDP of $2.1 trillion 58  Annual national income per capita: $40,  Developed, wealthy nation  Dominated by services sector (73% of GDP) 60  Working age population (ages 15-64) expected to grow from 39.7 million in 2005 to 40.7 million in  Median age 38.9 years 62  Life expectancy at birth: 78.9 years 63

Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L (exp0711) United Kingdom - Profile India Australia Overview BENEFITS AT A GLANCE  The National Health Service provides publicly funded health care. However, private health insurance is common. 64  The government provides the Basic State Pension, and provides for tax incentives for workers to fund their own personal pensions. 65  The insurance and financial products markets are highly developed and competitive. 66

Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L (exp0711) United Kingdom – Employer Perspective India Study Methodology Overview U.K. TOP THREE FINANCIAL CONCERNS AND WORK/LIFE GOALS OF EMPLOYEES RETAINING EMPLOYEESS U.K.: MOST IMPORTANT BENEFITS OBJECTIVES OF EMPLOYERS THAT OFFER BENEFITS ATTRACTING EMPLOYERES INCREASING EMPLOYEE JOB SATISFACTION INCREASING EMPLOYEE PRODUCTIVITY CONTROLLING HEALTH AND WELFARE BENEFIT COSTS 83% 78% 75% 71% 54% Percentages have been rounded to the nearest whole number. Most U.K. employers offers some benefits, which companies see primarily as a means of retaining and attracting employees.

Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L (exp0711) United Kingdom – Employer Perspective India Study Methodology Overview U.K. TOP THREE FINANCIAL CONCERNS AND WORK/LIFE GOALS OF EMPLOYEES PENSIONS U.K.: BENEFITS OFFERED BY EMPLOYERS THAT OFFER BENEFITS PRIVATE MEDICAL INSURANCE (PMI) LIFE ASSURANCE LONG-TERM DISABILITY OR PERMANENT HEALTH CRITICAL ILLNESS INSURANCE TRAVEL INSURANCE AUTO INSURANCE 94% 82% 66% 43% 31% 30% 27% Percentages have been rounded to the nearest whole number. The majority of U.K. companies offer their employees pensions and private medical and life insurance however few employers have sought to differentiate themselves by expanding benefits beyond this minimum.

Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L (exp0711) United Kingdom – Employee Perspective  45% of U.K. employees have critical illness insurance.  35% have long-term disability, or permanent health insurance.  26% have dental insurance.  11% have long-term care insurance. 40% of U.K. employees surveyed are extremely concerned with having more time to spend with families. Behind job security and having enough money to live on. For a group that has been relatively pro-active in assessing and planning for their financial needs, U.K. employees surveyed seem less than fully prepared in many other health-related issues.

Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L (exp0711) United Kingdom – Employee Perspective India Australia U.K. Overview TOP THREE FINANCIAL CONCERNS AND WORK/LIFE GOALS OF EMPLOYEES PENSION U.K.: WHERE EMPLOYEES OBTAINED DIFFERENT FINANCIAL PRODUCTS CRITICAL ILLNESS LIFE ASSURANCE PERSONAL ACCIDENT COVERAGE PRIVATE MEDICAL INSURANCE (PMI) 48% 10% 34% 18% 11% 22% 12% 1% 51% 13% 32% 1% 3% 28% 14% Workplace Outside WorkplaceBoth Among those who do own these products, most purchased them outside the workplace.

Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L (exp0711) United Kingdom - Conclusions India Australia U.K. Study Methodology Overview Benefits Strategies for Tomorrow, Today U.K. companies recognize the potential value of benefits programs in attracting and retaining workers— a task that looks to become increasingly challenging due to demographic changes occurring the workforce:  Consider financial education programs to assist employees in making the many important decisions facing workers forced to shoulder more responsibility for their own financial security.  Employers can increase the impact of their benefits plans by offering programs that provide employees with better work/life balance.  When expanding benefits plans, start with insurance.

Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L (exp0711) Contact your MetLife representative for more information India Mexico Australia United Kingdom United States

Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L (exp0711) Study Methodology Overview The MetLife Study of International Employee Benefits Trends was conducted between November 2006 and March 2007 by GfK Custom Research, one of the top global market research consultants. Results were obtained through face to face, telephone and online interviews. The targeted sample of each country was designed to appropriately represent the full-time employee population base. Totals do not always equal 100% due to rounding.

Metropolitan Life Insurance Company 200 Park Avenue, New York, NY L (exp0711) Study Methodology Overview