Core Insights - MetLife has been providing insurance and annuities for over 155 years, positioning itself as a reliable financial service provider [1] Group 1: Company Overview - MetLife's stock price has shown minimal growth despite its long-standing presence in the market [1] Group 2: Investment Criteria - The ideal investment characteristics include companies that demonstrate growth in revenue, earnings, and free cash flow, along with favorable valuations [1]

Financial Performance - Total revenues for Q1 2025 were $18,569 million, an increase of 15.6% compared to $16,057 million in Q1 2024[22] - Net income attributable to MetLife, Inc. for Q1 2025 was $945 million, up from $867 million in Q1 2024, representing a growth of 9%[22] - Premiums collected in Q1 2025 reached $11,723 million, a 16.6% increase from $10,053 million in Q1 2024[22] - Total expenses for Q1 2025 were $17,215 million, compared to $15,012 million in Q1 2024, reflecting a rise of 14.7%[22] - Basic earnings per share for common shareholders in Q1 2025 was $1.29, compared to $1.11 in Q1 2024, marking a 16.2% increase[22] - Comprehensive income attributable to MetLife, Inc. for Q1 2025 was $2,957 million, significantly higher than $338 million in Q1 2024[22] - Net income for the three months ended March 31, 2025, was $950 million, compared to $875 million for the same period in 2024, representing an increase of 8.6%[28] - Operating cash flow for the three months ended March 31, 2025, was $4,262 million, significantly higher than $2,328 million in the same period of 2024[28] - Total consolidated adjusted earnings for Q1 2025 were $1,415 million, a slight increase from $1,401 million in Q1 2024, representing a growth of 1%[72] Assets and Liabilities - Total assets as of March 31, 2025, were $688,316 million, up from $677,457 million at the end of 2024, indicating a growth of 1.3%[18] - Total liabilities increased to $660,561 million as of March 31, 2025, compared to $649,754 million at the end of 2024, a rise of 1.8%[18] - The total liabilities for future policy benefits as of March 31, 2025, were $197,667 million, up from $193,646 million at the end of 2024, indicating an increase of 2%[76] - The balance of retained earnings at March 31, 2025, was $43,131 million, up from $40,350 million at March 31, 2024, indicating an increase of 6.9%[28] Investment Income - The company reported net investment income of $4,885 million for Q1 2025, down from $5,436 million in Q1 2024, a decrease of 10.1%[22] - Net investment income for the RIS segment increased to $2,167 million in Q1 2025, compared to $2,089 million in Q1 2024, a growth of 4%[72] - The Asia segment's net investment income increased to 11% in Q1 2025 from 8% in Q1 2024, indicating improved performance[72] Segment Performance - MetLife is organized into six segments: Group Benefits, RIS, Asia, Latin America, EMEA, and MetLife Holdings, with enhanced disclosures following the adoption of ASU 2023-07[42] - Total segment revenues increased to $18,644 million in Q1 2025 from $16,806 million in Q1 2024, reflecting a growth of 10%[72] - Adjusted earnings for the Group Benefits segment rose to $367 million in Q1 2025, up from $284 million in Q1 2024, marking a growth of 29%[72] - Premiums for the Group Benefits segment were $5,763 million in Q1 2025, compared to $5,711 million in Q1 2024, reflecting a growth of 1%[72] Policyholder Accounts and Benefits - Total policyholder account balances increased to $28,692 million in deposits for the three months ended March 31, 2025, compared to $24,444 million in 2024, reflecting a growth of 17.5%[28] - Policyholder benefits and claims for the Group Benefits segment were $5,183 million in Q1 2025, compared to $5,236 million in Q1 2024, a decrease of 1%[72] - The total policyholder account balances increased to $225,623 million as of March 31, 2025, from $221,445 million at the end of 2024, marking a growth of 1.6%[102] Stock and Dividends - The company repurchased treasury stock amounting to $1,411 million during the three months ended March 31, 2025[28] - Dividends declared on common stock were $374 million for the three months ended March 31, 2025, consistent with $377 million in 2024[28] Market and Economic Factors - The company is currently evaluating the impact of ASU 2023-09 and ASU 2024-03 on its consolidated financial statements, which may affect income tax disclosures and expense disaggregation[40] - The effect of changes in interest rates contributed $123 million to the balance of MetLife Holdings - Annuities for the three months ended March 31, 2025, compared to a negative impact of $373 million in the same period of 2024[145] Closed Block Performance - Total revenues for the closed block were $514 million for the three months ended March 31, 2025, down 8.0% from $559 million in the same period of 2024[181] - Total expenses for the closed block were $493 million in Q1 2025, a decrease of 4.1% from $514 million in Q1 2024[181] - The excess of closed block liabilities over assets designated to the closed block was $4,596 million, down from $4,863 million at the end of 2024[178] Securities and Investments - Total fixed maturity securities available-for-sale (AFS) were valued at $291,735 million as of March 31, 2025, compared to $281,043 million at the end of 2024, indicating an increase of 3.8%[184] - The total fair value of unit-linked investments was $9.118 billion as of March 31, 2025, with net unrealized gains of $1.493 billion[203] - The company did not intend to sell its securities in an unrealized loss position without an ACL, indicating a long-term holding strategy[193]

Core Viewpoint - MetLife, Inc. reported first-quarter 2025 adjusted operating earnings per share (EPS) of $1.96, missing the Zacks Consensus Estimate by 1.5%, but showing a 7% year-over-year increase. Adjusted operating revenues rose 10.6% year over year to $18.8 billion, surpassing the consensus mark by 3.4% [1][2]. Financial Performance - The quarterly results were impacted by elevated expenses, weaker performance in Asia due to tax changes and lower surrenders, and declining earnings in Latin America and MetLife Holdings. However, improved variable investment income and strong EMEA sales partially offset these declines [2]. - Total expenses increased 14.7% year over year to $17.2 billion, driven by higher policyholder benefits and claims. The adjusted expense ratio deteriorated by 20 basis points year over year to 20.6% [4]. - Net income rose 10% year over year to $879 million, with an adjusted return on equity improving by 60 basis points to 14.4% [4]. Segment Performance - Group Benefits segment adjusted earnings increased 29% year over year to $367 million, exceeding the Zacks Consensus Estimate of $343.1 million, supported by favorable life underwriting results [5]. - RIS segment adjusted earnings totaled $401 million, a 1% year-over-year increase, but fell short of the consensus mark. Adjusted PFOs, excluding pension risk transfer, advanced 14% year over year to $954 million [6]. - Asia unit adjusted earnings decreased 12% year over year to $374 million, below the consensus estimate, affected by lower surrenders and a tax rate change. Adjusted PFOs slipped 4% year over year to $1.7 billion [7]. - Latin America adjusted earnings fell 6% year over year to $218 million, lower than the consensus mark, while adjusted PFOs inched up 1% year over year to $1.5 billion [8]. - EMEA segment adjusted earnings increased 8% year over year to $83 million, surpassing the consensus estimate, with adjusted PFOs rising 8% year over year to $668 million [9]. - MetLife Holdings adjusted earnings decreased 3% year over year to $154 million, falling short of the consensus mark, with adjusted PFOs at $780 million, down 7% year over year [10]. - Corporate & Other unit incurred an adjusted loss of $248 million, wider than the prior-year quarter's loss [11]. Financial Position - As of March 31, 2025, MetLife had cash and cash equivalents of $21.3 billion, a 6.3% increase from the end of 2024. Total assets rose 1.6% to $688.3 billion, while long-term debt decreased by 2.6% to $14.7 billion [12]. - Book value per share was $35.16, reflecting a 2% year-over-year growth [13]. Capital Deployment - MetLife repurchased shares worth approximately $1.4 billion in the first quarter and authorized a new share buyback program of $3 billion in April 2025 [14]. 2025 Outlook - Management expects variable investment income of around $1.7 billion for 2025, with adjusted losses in Corporate & Other anticipated between $850 million and $950 million. The effective tax rate is projected to be 24-26% [15]. - Over the next three years, adjusted PFOs in Group Benefits are expected to rise by 4-7% annually, while declines of 4-6% are anticipated in MetLife Holdings [16]. - MetLife aims for an adjusted return on equity in the range of 15-17% and expects double-digit adjusted EPS growth in the near term [17].

Financial Data and Key Metrics Changes - Adjusted earnings for Q1 2025 were $1.3 billion, or $1.96 per share, representing a 7% increase from the same period last year [11][24] - Adjusted return on equity was 14.4%, with a direct expense ratio of 12%, indicating operational efficiency [11][35] - Adjusted earnings were up 1% year-over-year, and 5% on a constant currency basis, driven by favorable life underwriting and higher variable investment income [24][25] Business Segment Data and Key Metrics Changes - Group Benefits adjusted earnings were $367 million, up 29% year-over-year, attributed to favorable life underwriting margins due to lower mortality [12][25] - Retirement and Income Solutions (RIS) adjusted earnings totaled $400 million, with strong sales in synthetic GICs and UK longevity reinsurance, and inflows from pension risk transfers of $1.8 billion [13][27] - Asia adjusted earnings were $374 million, down 12% year-over-year, impacted by lower underwriting margins and higher taxes, although sales were up 10% [14][29] - Latin America adjusted earnings were $218 million, down 6% year-over-year, but up 7% on a constant currency basis, with adjusted PFOs up 1% reported and 14% constant currency [14][30] Market Data and Key Metrics Changes - The U.S. dollar has started to weaken against many currencies, which may benefit international business growth [7][9] - The company noted that the underlying growth of international businesses could emerge as a tailwind despite being masked by the strong dollar [9][12] Company Strategy and Development Direction - The company has rolled out a "New Frontier" strategy aimed at guiding operations over the next five years, focusing on strategic diversification and resilience [6][10] - A significant risk transfer deal was announced, reinsuring approximately $10 billion of U.S. retail variable annuity reserves, aimed at reducing enterprise risk [16][40] - The company is on a path to achieve $1 trillion in total assets under management for MetLife Investment Management [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the uncertain economic environment, emphasizing a recurring revenue business model [8][20] - The company is focused on executing its strategy without significant changes, despite rising recession risks [75][76] - Management highlighted strong fundamentals and a commitment to responsible growth and attractive returns [43] Other Important Information - The company returned approximately $1.8 billion to shareholders through dividends and share repurchases in Q1 2025 [17][36] - A new $3 billion share repurchase authorization was announced, reflecting confidence in financial strength [18][36] - The effective tax rate on adjusted earnings was 23.2%, slightly below the 2025 guidance range [33] Q&A Session Summary Question: Inquiry about spreads in the RIS business - Management acknowledged a sequential decline in spreads due to interest rate gaps and lower rates than expected, but noted growth momentum in the business [46][52] Question: Comments on the CRE portfolio and recovery indications - Management indicated that while there are signs of stabilization in the commercial mortgage loan book, ongoing uncertainty may impact momentum [56][58] Question: Discussion on the risk transfer deal valuation - Management explained that the deal was structured to reduce tail risk and was aligned with their economic valuation expectations, despite a loss in net income [63][67] Question: Underwriting experience in MetLife Holdings - Management reported that underwriting experience was consistent across both life insurance and long-term care segments [70][71] Question: Current environment's influence on capital management strategy - Management confirmed that while they are aware of the economic environment, their strategy remains focused on executing existing plans without significant changes [74][76] Question: Insights on PRT sales and market activity - Management noted that while market volatility can be a distraction, it does not significantly alter the pipeline for pension risk transfer transactions [90][91] Question: Expectations for variable investment income in 2025 - Management indicated that while Q1 results were strong, predicting future performance remains challenging due to market volatility [95][98]

Financial Data and Key Metrics Changes - The company reported adjusted earnings of $1,300,000,000 or $1.96 per share, up 7% from the same period a year ago, driven by favorable underwriting and good volume growth [11][24] - Adjusted return on equity in the first quarter was 14.4%, with a direct expense ratio of 12%, indicating efficiency [11][36] - Adjusted earnings were $1,300,000,000, up 1% year over year, and up 5% on a constant currency basis [24] Business Segment Data and Key Metrics Changes - Group Benefits adjusted earnings were $367,000,000, up 29% from the prior year due to favorable life underwriting margins [12][25] - Retirement and Income Solutions (RIS) adjusted earnings totaled $400,000,000, with strong sales in synthetic GICs and UK longevity reinsurance [13][28] - Asia adjusted earnings were $374,000,000, down 12% year over year, primarily due to lower underwriting margins and higher taxes [13][30] - Latin America adjusted earnings were $218,000,000, down 6%, but up 7% on a constant currency basis [14][31] - EMEA adjusted earnings were $83,000,000, up 8% and up 14% on a constant currency basis [32] Market Data and Key Metrics Changes - The company noted that the U.S. dollar has started to weaken against many currencies, which could benefit international business growth [9][10] - The company experienced favorable life underwriting margins due to lower mortality rates in the working-age population, consistent with CDC data [12][26] Company Strategy and Development Direction - The company has rolled out its New Frontier strategy to guide operations over the next five years, focusing on strategic diversification and resilience [7][10] - A significant risk transfer deal was announced, reinsuring approximately $10,000,000,000 of U.S. Retail variable annuity and rider reserves, aimed at reducing enterprise risk [16][40] - The company aims to achieve $1,000,000,000,000 in total assets under management through MetLife Investment Management [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate the uncertain economic environment, emphasizing the all-weather nature of its business model [9][20] - The company is focused on executing its strategy without significant changes, despite rising recession risks [73][75] - Management highlighted strong underlying fundamentals and a commitment to responsible growth and attractive returns [43][44] Other Important Information - The company returned approximately $1,800,000,000 to shareholders through dividends and share repurchases in the first quarter [18][19] - The Board of Directors increased the common dividend per share by 4.1% [19] - The company ended the quarter with $4,500,000,000 in cash and liquid assets, above its target cash buffer [37][39] Q&A Session Summary Question: On spreads in the RIS business - Management acknowledged a sequential decline in spreads due to interest rate gaps and lower rates than expected, but noted growth momentum in the business [46][52][54] Question: On the commercial mortgage loan book - Management indicated that while there are signs of stabilization in real estate activity, uncertainty may slow momentum [56][58] Question: On the risk transfer deal valuation - Management explained that the deal was evaluated from multiple perspectives, including economic value and the removal of tail risk, which justified the transaction [62][66] Question: On underwriting experience in MetLife Holdings - Management reported that underwriting experience was in line with expectations across both life insurance and long-term care [68][69] Question: On capital management strategy in the current environment - Management confirmed that there would be no changes to capital management strategy, focusing on executing their existing strategy [72][75] Question: On PRT sales and market volatility - Management noted that while market volatility can be a distraction, it does not significantly impact the pipeline of transactions in the PRT space [87][90] Question: On variable investment income outlook - Management indicated that while the current environment poses challenges, they plan to provide preliminary information on expectations for variable investment income in July [94][96] Question: On the implementation of ESR in Japan - Management expressed confidence in operational readiness and indicated that the new framework would not change their operational approach [99][100]

1Q25 Supplemental Slides1 John McCallion Chief Financial Officer and Head of MetLife Investment Management 1 These slides highlight information in MetLife, Inc.'s earnings release, quarterly financial supplement and other prior public disclosures. Table of contents | Topic | Page No. | | --- | --- | | Net income (loss) to adjusted earnings | 3 | | Adjusted earnings by segment and Corporate & Other (C&O) | 4 | | Variable investment income (VII) | 5 | | Direct expense ratio | 7 | | Cash & capital | 8 | | Vari ...

Group 1: Earnings Performance - MetLife reported quarterly earnings of $1.96 per share, missing the Zacks Consensus Estimate of $1.99 per share, but showing an increase from $1.83 per share a year ago, representing an earnings surprise of -1.51% [1] - The company posted revenues of $18.83 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 3.40%, compared to year-ago revenues of $17.02 billion [2] - Over the last four quarters, MetLife has surpassed consensus EPS estimates just once, while topping consensus revenue estimates three times [2] Group 2: Stock Performance and Outlook - MetLife shares have declined approximately 6.7% since the beginning of the year, compared to a decline of -5.5% for the S&P 500 [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $2.30 on revenues of $18.55 billion, and for the current fiscal year, it is $9.11 on revenues of $74.94 billion [7] Group 3: Industry Context - The Insurance - Multi line industry, to which MetLife belongs, is currently ranked in the top 17% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact MetLife's stock performance [5] - The Zacks Rank for MetLife is currently 3 (Hold), suggesting that the shares are expected to perform in line with the market in the near future [6]

Financial Performance - Total revenues for Q1 2025 were $18,569 million, a slight decrease from $18,666 million in Q4 2024[5] - Net income attributable to MetLife, Inc. for Q1 2025 was $945 million, compared to $1,271 million in Q4 2024, reflecting a decrease of 25.6%[5] - Premiums, fees, and other revenues for Q1 2025 totaled $13,639 million, down from $14,475 million in Q4 2024[5] - Policyholder benefits and claims for Q1 2025 were $11,806 million, compared to $12,572 million in Q4 2024, indicating a decrease of 6.1%[5] - The company reported net investment income of $4,885 million for Q1 2025, down from $5,405 million in Q4 2024[5] - Total expenses for Q1 2025 were $17,215 million, a decrease from $17,285 million in Q4 2024[5] - The provision for income tax expense for Q1 2025 was $404 million, compared to $106 million in Q4 2024, showing an increase of 280.2%[5] - The adjusted earnings available to common shareholders for Q1 2025 were $879 million, compared to $1,239 million in Q4 2024, reflecting a decrease of 29.1%[5] - The company experienced net derivative losses of $432 million in Q1 2025, a significant recovery from losses of $903 million in Q4 2024[5] Year-to-Date Performance - Total revenues for the year-to-date period ended March 31, 2025, were $18,569 million, an increase from $16,057 million for the same period in 2024, representing a growth of 15.7%[13] - Adjusted net investment income for the year-to-date period ended March 31, 2025, was $5,213 million, compared to $5,068 million for the same period in 2024, reflecting an increase of 2.9%[13] - Adjusted premiums, fees, and other revenues for the year-to-date period ended March 31, 2025, were $13,614 million, up from $11,948 million for the same period in 2024, indicating a growth of 13.9%[14] - Total adjusted revenues for the year-to-date period ended March 31, 2025, reached $18,827 million, compared to $17,016 million for the same period in 2024, marking an increase of 10.6%[13] - Total expenses for the year-to-date period ended March 31, 2025, were $17,215 million, an increase from $15,012 million for the same period in 2024, representing a growth of 14.7%[14] - Total adjusted expenses for the year-to-date period ended March 31, 2025, were $16,985 million, compared to $15,185 million for the same period in 2024, reflecting an increase of 11.8%[14] Shareholder Metrics - Adjusted earnings available to common shareholders for Q1 2025 were $1,349 million, a decrease from $1,375 million in Q3 2024[18] - Group Benefits adjusted earnings available to common shareholders for Q1 2025 were $367 million, down from $416 million in Q4 2024[18] - The total equity of MetLife as of March 31, 2025, was $27,755 million, a slight increase from $27,703 million in Q4 2024[17] - The retained earnings increased to $43,131 million as of March 31, 2025, from $42,626 million in Q4 2024[17] Investment Performance - The company reported net investment losses of $375 million in Q1 2024, with net derivative losses of $979 million[6] - The yield on equity securities increased to 6.16% for the year-to-date period ended March 31, 2025, up from 5.48% in the previous year[51] - The ending carrying value of fixed maturity securities was $290,416 million as of March 31, 2025, compared to $279,855 million a year earlier[51] - The company reported investment portfolio gains (losses) of $(461) million for the year-to-date period ended March 31, 2025[51] Future Outlook - The company anticipates continued improvements in expense ratios and revenue growth as part of its future outlook[16] - Future guidance indicates adjusted earnings available to common shareholders, excluding notable items, is expected to remain stable around $1,349 million for Q1 2025[6] - The company plans to continue its strategy of share repurchases, with 16.9 million shares repurchased in Q1 2024[9] Operational Insights - MetLife continues to focus on enhancing its non-GAAP financial measures to provide better insights into its operational performance[4] - The company emphasizes the importance of non-GAAP financial measures to provide a clearer picture of operational performance and profitability drivers[1] - Adjusted earnings exclude the impact of market volatility and focus on core business performance, allowing for better comparisons to industry results[1]

Core Viewpoint - MetLife, Inc. is expected to report first-quarter 2025 results on April 30, with earnings estimated at $1.99 per share and revenues at $18.21 billion, reflecting year-over-year growth of 8.7% and 7% respectively [1] Financial Estimates - The Zacks Consensus Estimate for MetLife's revenues for the current year is $74.94 billion, indicating a year-over-year increase of 2.6% [2] - The consensus estimate for current-year EPS is $9.11, suggesting a year-over-year jump of approximately 12.33% [2] - In the last four quarters, MetLife beat the consensus estimate once, met it once, and missed twice, with an average surprise of negative 1.5% [2] Earnings Prediction - The current model does not predict a definitive earnings beat for MetLife, as it has an Earnings ESP of +0.24% but a Zacks Rank of 4 (Sell) [3][4] Factors Influencing Q1 Results - Rising adjusted group benefits revenues are anticipated to positively impact MetLife's first-quarter results, particularly from improved operations in international markets, especially Asia and Latin America [5] - The Zacks Consensus Estimate for total adjusted group benefits suggests a 2.3% increase from the prior-year quarter, driven by profits from Asia and Latin America [6] - Adjusted earnings from the domestic business are expected to grow by 10.5% year-over-year in the first quarter [7] Challenges - Rising costs and expenses may partially offset profit growth in the upcoming quarter, with net investment income consensus pegged at $5.3 billion, indicating a 3% decline year-over-year [9]

Core Insights - MetLife (MET) is expected to report quarterly earnings of $1.99 per share, reflecting an 8.7% increase year-over-year, with revenues projected at $18.21 billion, a 7% increase from the previous year [1]. Earnings Projections - The consensus EPS estimate has been revised down by 2.7% in the last 30 days, indicating a reassessment by analysts [2]. - Changes in earnings projections are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate trends and short-term stock price movements [3]. Revenue Estimates - Analysts project 'Revenue- Premiums' to reach $10.97 billion, indicating a year-over-year increase of 9.1% [5]. - 'Revenue- Other Revenues' is expected to be $631.98 million, reflecting a decline of 6.2% year-over-year [5]. - 'Revenue- Universal life and investment-type product policy fees' is forecasted at $1.27 billion, showing a 1.7% increase from the prior year [5]. Investment Income and Regional Revenue - 'Revenue- Net investment income' is estimated at $5.27 billion, suggesting a decrease of 3.1% year-over-year [6]. - 'Total Adjusted Revenue- Latin America' is projected to be $1.95 billion, indicating a 3.4% increase year-over-year [6]. - 'Total Adjusted Revenue- U.S. Business' is expected to reach $10.64 billion, reflecting an 11.5% increase year-over-year [7]. Regional Adjusted Revenue - 'Total Adjusted Revenue- EMEA' is estimated at $703.80 million, indicating a 4.4% increase year-over-year [8]. - 'Total Adjusted Revenue- Asia' is projected to be $2.99 billion, reflecting a 4.8% increase year-over-year [8]. - 'Adjusted Revenue- Asia- Net investment income' is expected to reach $1.25 billion, indicating a 13% increase from the prior year [9]. Stock Performance - MetLife shares have decreased by 8.7% over the past month, compared to a 4.8% decline in the Zacks S&P 500 composite [10].