MetLife, Inc. (MET) recently announced expanding its collaboration with Micruity, a leader in retirement technology solutions. Both companies will work on the development of MET’s Universal Digital Retirement Platform, aiming to provide accessible and simple retirement income solutions.This move bodes well for MetLife as it will be able to streamline and simplify the way plan sponsors can offer its retirement income solutions in their Defined Contribution plans. MET’s Institutional Income Annuities business ...

MetLife, Inc.’s (MET) unit, Metropolitan Tower Life Insurance Company, recently inked a deal with the American multinational conglomerate, 3M. As a result, the MetLife subsidiary will assume defined benefit pension obligations of around $2.5 billion and deliver annuity benefits to roughly 23,000 retirees and beneficiaries of the 3M Employee Retirement Income Plan.A group annuity contract was bought from Metropolitan Tower Life this month. However, the monthly pension benefits received by retirees, their spo ...

For Immediate ReleaseChicago, IL – June 14, 2024 – Today, Zacks Equity Research discusses MetLife Inc. (MET) , American International Group Inc. (AIG) , Prudential Financial Inc. (PRU) , The Hartford Financial Services Group (HIG) and Old Republic International Corp. (ORI) .Industry: Multi-line InsuranceLink: https://www.zacks.com/commentary/2287921/5-multiline-insurers-to-watch-amid-rising-insurance-demandProduct diversification helps Zacks Multiline Insurance industry players lower concentration risk, ens ...

MetLife, Inc. (MET) is reportedly in talks to acquire Hayfin Capital Management, a London-based private credit specialist, per Bloomberg. The potential deal might value Hayfin Capital Management at $1.3 billion. The company has been looking to divest its operations for the past year and has even attracted interest from several parties.Hayfin Capital Management was founded in 2019 by former Goldman Sachs executives Tim Flynn and Mark Tognolini. The company invests across the private credit spectrum, focusing ...

MetLife, Inc. (MET) is reportedly in talks to acquire Hayfin Capital Management, a London-based private credit specialist, per Bloomberg. The potential deal might value Hayfin Capital Management at $1.3 billion. The company has been looking to divest its operations for the past year and has even attracted interest from several parties.Hayfin Capital Management was founded in 2019 by former Goldman Sachs executives Tim Flynn and Mark Tognolini. The company invests across the private credit spectrum, focusing ...

Core Insights - MetLife, Inc. has launched My Leave Navigator, a digital tool aimed at improving the employee experience during leave, addressing various life events such as family expansion, caregiving, or illness recovery [1][2] - Research indicates that 62% of employees lack confidence in their understanding of available benefits, and 38% feel neglected due to insufficient information about beneficial programs [1] - The introduction of My Leave Navigator is expected to enhance employee loyalty and productivity by providing cohesive support throughout the leave process [2] Product Features - My Leave Navigator is tailored to meet individual employee needs, helping them understand their options and ensuring support during the leave process [2] - The tool integrates disability insurance with employer-sponsored programs like Paid Family Medical Leave and Family Medical Leave Act, offering a seamless experience [2] Market Performance - MetLife's shares have increased by 39.2% over the past year, outperforming the industry growth of 24.5% [4] - The company currently holds a Zacks Rank of 3 (Hold) [5] Comparisons with Peers - Other better-ranked stocks in the finance sector include Ambac Financial Group, Brown & Brown, and Root, each with a Zacks Rank of 2 (Buy) [6] - Ambac Financial's current-year earnings estimate is $1.45 per share, with a significant average surprise of 893.5% over the past four quarters [6] - Brown & Brown's earnings estimate is $3.61 per share, reflecting a 28.5% year-over-year growth, with a consistent record of beating earnings estimates [6] - Root's current-year earnings are expected to improve by 35.6%, with a notable average surprise of 34.1% in the past four quarters [7]

Financial Performance - Total revenues for the three months ended March 31, 2024, were $16,057 million, an increase from $15,388 million in the same period of 2023, representing a growth of 4.4%[17]. - Net income attributable to MetLife, Inc. for Q1 2024 was $867 million, significantly up from $80 million in Q1 2023, marking an increase of 1,083.8%[17]. - Basic earnings per share for common shareholders was $1.11 for Q1 2024, compared to $0.02 in Q1 2023, reflecting a substantial increase[17]. - Total expenses decreased to $15,012 million in Q1 2024 from $15,131 million in Q1 2023, a reduction of 0.8%[17]. - The company reported net investment income of $5,436 million for Q1 2024, compared to $4,645 million in Q1 2023, an increase of 17.0%[17]. - Comprehensive income attributable to MetLife, Inc. was $338 million for Q1 2024, down from $3,554 million in Q1 2023, reflecting a decrease of 90.5%[17]. - Adjusted earnings for the quarter were $1,401 million, reflecting a decrease in total revenues and expenses adjustments[56]. - The Company reported net income of $875 million for the quarter, indicating a stable performance despite revenue adjustments[56]. Investments and Assets - Total investments decreased from $446,137 million as of December 31, 2023, to $440,004 million as of March 31, 2024, a decline of approximately 1.5%[14]. - Total assets as of March 31, 2024, amounted to $677,576 million, down from $687,584 million at the end of December 2023[63]. - The total fixed maturity securities amounted to $59,556 million as of March 31, 2024, compared to $56,000 million at the end of the previous year, showing an increase of 6.8%[171]. - The total investments for MetLife as of March 31, 2024, were $135,462 million, an increase from $130,000 million at the end of March 31, 2023, representing a growth of 4.2%[171]. - The total fixed maturity securities available-for-sale (AFS) amounted to $300,623 million as of March 31, 2024[197]. - The estimated fair value of total fixed maturity securities AFS was $278,409 million, reflecting unrealized losses of $113 million[197]. Liabilities and Equity - Total liabilities decreased from $657,331 million to $648,780 million, a decrease of approximately 1.0%[14]. - Total equity decreased from $30,253 million to $28,796 million, a decline of about 4.8%[14]. - Future policy benefits decreased from $196,406 million to $191,013 million, representing a reduction of about 2.0%[14]. - The balance of total equity for MetLife, Inc. as of March 31, 2024, was $28,796 million, an increase from $32,423 million as of March 31, 2023[21]. - The cumulative effect of changes in the instrument-specific credit risk was $2,192 million, reflecting a significant adjustment from the previous balance of $3,589 million[156]. Segment Performance - The Group Benefits segment offers a range of products including life insurance, dental, and disability insurance, primarily in the U.S.[42]. - The RIS segment provides life and annuity-based insurance and investment products, including pension risk transfer products and structured settlements[43]. - The Asia segment offers life insurance and retirement products, while the Latin America segment includes life insurance and credit insurance[44][45]. - The EMEA segment provides life insurance and retirement products to individuals and corporations[46]. - The Group Benefits segment reported total assets of $37,076 million, an increase from $36,715 million[63]. Policyholder Accounts and Premiums - Policyholder account balances saw deposits of $24,444 million in Q1 2024, while withdrawals were $23,373 million, resulting in a net inflow of $1,071 million[24]. - The net premiums collected for the three months ended March 31, 2024, were $(316) million, compared to $(220) million for the same period in 2023, indicating a decline in premium collection[75]. - The expected future gross premiums for the Asia segment were $8,799 million for the three months ended March 31, 2024, down from $9,309 million in 2023, indicating a decrease of approximately 5.5%[78]. - The net liability for future policy benefits (FPBs) decreased to $9,693 million from $11,022 million, a reduction of approximately 12.0%[81]. Economic and Market Conditions - The economic capital model is utilized to measure business risks and allocate capital effectively, aligning with emerging standards[53]. - The Company’s guaranteed minimum death benefits (GMDBs) and living benefit guarantees are subject to market conditions, which may increase costs in volatile or declining equity markets[158]. - The company noted that unrealized losses were largely due to economic and market uncertainty, impacting credit spreads and interest rates[204]. Foreign Currency and Other Adjustments - The company experienced a foreign currency translation effect of $(471) million on DAC and VOBA balances[180]. - The effect of foreign currency translation and other for RIS stable value and risk solutions was $(1,082) million for the three months ended March 31, 2024, compared to $(796) million for the same period in 2023, reflecting a negative impact[171].

Core Insights - MetLife, Inc. reported first-quarter 2024 adjusted operating earnings of $1.83 per share, matching the Zacks Consensus Estimate, with a year-over-year improvement of 20.4% [1] - Adjusted operating revenues increased by 5.5% year over year to $17 billion, although this figure missed the consensus mark by 3.8% [1] Financial Performance - Adjusted premiums, fees, and other revenues (PFOs), excluding pension risk transfer (PRT), were $12 billion, reflecting a 4% year-over-year increase [2] - Adjusted net investment income rose by 10% year over year to $5.1 billion, driven by rising rates and improved variable investment income [2] - Total expenses decreased by 0.8% year over year to $15 billion, attributed to lower policyholder dividends, but the adjusted expense ratio worsened by 40 basis points to 20.4% [2] - Net income surged to $800 million from $14 million in the prior year, with adjusted return on equity improving by 250 basis points to 13.8% [2] Segment Performance - Group Benefits segment's adjusted earnings fell by 7% year over year to $284 million, below the consensus estimate, despite a 5% increase in adjusted PFOs to $6.3 billion [3] - The RIS segment reported adjusted earnings of $399 million, a slight decline of 0.3% year over year, but exceeded the consensus estimate, with adjusted PFOs surging 25% to $813 million [3] - Asia segment's adjusted earnings improved by 51% year over year to $423 million, surpassing the consensus estimate, although adjusted PFOs dipped by 3% to $1.7 billion [4] - Latin America segment's adjusted earnings rose by 8% year over year to $233 million, beating the consensus estimate, with adjusted PFOs increasing by 9% to $1.5 billion [4] - EMEA segment's adjusted earnings surged by 28% year over year to $77 million, exceeding the consensus estimate, with adjusted PFOs growing by 7% to $620 million [5] - MetLife Holdings segment's adjusted earnings rose by 1% year over year to $159 million but fell short of the consensus estimate, with adjusted PFOs declining by 12% to $841 million [5] - Corporate & Other segment incurred an adjusted loss of $241 million, wider than the previous year's loss [5] Financial Position - As of March 31, 2024, MetLife had cash and cash equivalents of $19.8 billion, down 3.9% from the end of 2023, with total assets decreasing by 1.5% to $677.6 billion [6] - Long-term debt increased by 2.7% to $16 billion, while total equity declined by 4.8% to $28.8 billion, with book value per share at $34.54, down 6% year over year [6] Capital Deployment - MetLife repurchased shares worth approximately $1.2 billion in the first quarter and an additional $330 million in April 2024, announcing a new share repurchase plan of $3 billion [7] 2024 Outlook - Management anticipates variable investment income to be around $1.5 billion for 2024, with adjusted losses in Corporate & Other estimated between $750 million and $850 million [8] - Adjusted earnings in the Asia segment are expected to grow by around 20%, while EMEA unit earnings are projected to remain within $60-$65 million per quarter [8] Near-Term Targets - Over the next three years, MetLife projects adjusted PFOs in the Group Benefits business to rise by 4-6%, with similar growth expected in MetLife Holdings [9] - The company aims for an adjusted return on equity within 13-15% and a free cash flow ratio of 65-75% of adjusted earnings [9]

Financial Data and Key Metrics Changes - MetLife reported adjusted earnings of $1.3 billion, or $1.83 per share, up 20% per share from the prior year period [11][22] - Net income for Q1 was $800 million, significantly higher than $14 million from the prior year [11] - Adjusted premium fees and other revenues (PFOs) totaled $12 billion, up 4% compared to Q1 2023, with a 5% increase on a constant currency basis [11][12] - Adjusted return on equity was 13.8%, within the target range of 13% to 15% [12] - Direct expense ratio improved to 11.9%, below the annual target of 12.3% [12][31] Business Line Data and Key Metrics Changes - Group Benefits generated $6.3 billion of adjusted PFOs, up 5% year-over-year, with adjusted earnings of $284 million impacted by seasonally high life mortality [13][22] - Retirement and Income Solutions (RIS) reported adjusted earnings of $399 million, essentially flat year-over-year, with quarterly sales of $2.7 billion, up 49% from the prior year [15][24] - Asia's adjusted earnings increased by 51%, with assets under management up 6% year-over-year [16][25] - Latin America generated adjusted earnings of $233 million, rising 8%, with adjusted PFOs up 9% [16][25] - EMEA adjusted earnings were $77 million, up 28%, driven by favorable underwriting and volume growth [26] Market Data and Key Metrics Changes - Group Benefits sales were up 25% from the prior year, reflecting strong growth across core and voluntary products [14][22] - In Asia, sales were down relative to a strong prior year quarter, but assets under management showed resilience [16][25] - Latin America continued to show momentum, particularly in Mexico and Chile, contributing to record earnings [16][25] Company Strategy and Development Direction - MetLife is focused on its "Next Horizon" strategy, emphasizing risk management and diversification across products and geographies [7][10] - The company aims to leverage emerging technologies to drive margin expansion and enhance operational consistency [20] - A thoughtful process is underway to chart the next course of strategic development, building on the established foundation [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience amid economic and geopolitical uncertainties [7][8] - The outlook for variable investment income is expected to improve in the second half of the year, with guidance of $1.5 billion for the full year [29] - The company remains committed to returning capital to shareholders while supporting organic growth [17][52] Other Important Information - MetLife announced a $3 billion increase to its share repurchase authorization, bringing the total to approximately $3.6 billion [5][17] - The company paid $377 million in dividends and repurchased nearly $1.2 billion of common stock in Q1 [17][32] - Laura Hay joined the Board of Directors, bringing extensive experience in the insurance sector [18] Q&A Session Summary Question: Can you unpack the real estate loss of 5.8%? - The loss was primarily due to appraisals and valuation, with expectations of moderation in the second quarter [37][38] Question: What is the plan for future share buybacks? - The measured pace refers to the first quarter, with a greater pace expected than in the balance of the year [39][40] Question: What is the outlook for variable investment income? - The expectation is to be towards the higher end of the range for the balance of the year [42][43] Question: Can you discuss the competitive environment in Group Benefits? - The competitive dynamics remain unchanged, with a focus on differentiation beyond price [44][46] Question: What is the outlook for pension risk transfer? - The pipeline remains robust, particularly for jumbo deals, with a disciplined approach to capital deployment [49][50] Question: How do interest rates impact structured settlement demand? - Interest rates are the primary driver of demand, with some influence from social inflation [70] Question: What is the outlook for sales in Latin America? - Sales are expected to continue growing, supported by strong persistency and favorable underwriting [73]

| --- | --- | |-------------------------------------------------------------------------------------------------------------|-------| | | | | | | | 1Q24 Supplemental Slides 1 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. | --- | --- | |--------------------------------------------------------|------ ...