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].

Partnership with Leading Insurers Helps Turbocharge Company's Continued GrowthNEW YORK, April 15, 2025 /PRNewswire/ -- Octane® (Octane Lending, Inc.®), the fintech revolutionizing the buying experience for major recreational purchases, announced today that it has executed an up to $700 million forward-flow facility. New York Life, the largest1 mutual life insurance company in the United States, was the Loan Arranger and lead investor along with MetLife Investment Management (MIM), the institutional asset ma ...

Group 1 - MetLife, Inc. has partnered with SKYGEN to improve the digital experience for dental providers, focusing on simplifying credentialing and provider interactions [1][2] - The integration of SKYGEN's Dental Hub will provide a centralized platform for managing credentialing and directory updates, reducing paperwork and stress for providers [2] - This initiative is expected to enhance provider relationships, leading to better service for policyholders and reinforcing MetLife's position in the dental insurance market [3] Group 2 - A streamlined credentialing system will lower administrative costs, speed up processing times, and improve claims management, resulting in quicker reimbursements for providers and patients [4] - An improved provider experience is likely to attract more dental professionals to MetLife's network, expanding the provider base and enhancing policyholder satisfaction, which contributes to premium revenue growth [4] Group 3 - MetLife shares have increased by 3.1% over the past year, compared to a 12.5% growth in the broader industry [5]

In terms of dividend growth, the company's current annualized dividend of $2.18 is up 1.2% from last year. Over the last 5 years, MetLife has increased its dividend 5 times on a year-over-year basis for an average annual increase of 4.31%. Any future dividend growth will depend on both earnings growth and the company's payout ratio; a payout ratio is the proportion of a firm's annual earnings per share that it pays out as a dividend. MetLife's current payout ratio is 27%. This means it paid out 27% of its t ...

Core Insights - MetLife has launched a new business unit named MetLife Xcelerator in Latin America, which is part of its New Frontier strategy aimed at enhancing digital distribution and strategic partnerships in the insurance sector [1][2] - The New Frontier strategy is projected to support double-digit growth in adjusted earnings per share and deliver a 15-17% adjusted return on equity, with plans to expand into high-growth international markets [2] - The Xcelerator platform integrates insurance products into digital platforms, achieving 4.5 million active customers and generating over $200 million in premiums, fees, and other income since its launch in November 2023 [3][4] Business Strategy - MetLife aims to leverage technology and an agile startup-like model to scale operations across Latin America, improving customer experience and broadening insurance inclusion in regions with traditionally low penetration [4][5] - The initiative positions MetLife as a leader in digital insurance innovation, providing a competitive edge in a rapidly evolving industry [5] Market Performance - MetLife shares have increased by 13.1% over the past year, outperforming the industry growth of 6.7% [6]

Core Viewpoint - MetLife's recent earnings report showed mixed results, with adjusted operating earnings per share (EPS) missing estimates but showing year-over-year growth. The company faces challenges in certain segments, particularly in the Group Benefits and Retirement and Income Solutions (RIS) units, while some areas like Asia performed well [2][3][9]. Financial Performance - Adjusted operating EPS for Q4 2024 was $2.08, missing the Zacks Consensus Estimate by 2.4%, but increased by 7.8% year over year [2]. - Adjusted operating revenues reached $19.7 billion, a 5.4% increase year over year, surpassing consensus estimates by 2.7% [2]. - Total expenses were $17.3 billion, down 4.4% year over year, attributed to lower interest credited to policyholder accounts and reduced interest expenses [5]. Segment Analysis - Group Benefits segment reported adjusted earnings of $416 million, down 11% year over year, but above the consensus estimate [7]. - RIS segment's adjusted earnings fell 8% year over year to $386 million, missing estimates due to reduced margins [8]. - Asia's adjusted earnings grew 50% year over year to $443 million, exceeding estimates, although adjusted PFOs declined by 4% [9]. - Latin America reported adjusted earnings of $201 million, a 3% decrease year over year, but a 10% increase on a constant currency basis [10]. - EMEA segment's adjusted earnings increased 26% year over year to $59 million, though it was below consensus estimates [11]. Capital and Equity - As of December 31, 2024, MetLife had cash and cash equivalents of $20.1 billion, a decline of 2.8% from the previous year [13]. - Total equity fell 8.4% year over year to $27.7 billion, with book value per share at $34.28, down 4.4% [14]. Future Outlook - Management anticipates variable investment income of $1.7 billion for 2025 and expects adjusted losses in the Corporate & Other segment to be between $850 million and $950 million [16]. - Over the next three years, adjusted PFOs in the Group Benefits business are projected to rise by 4-7%, while declines are expected in the MetLife Holdings segment [17]. - The company aims for an adjusted return on equity in the range of 15-17% and double-digit adjusted EPS growth in the near term [18]. Market Position - MetLife's stock has a Zacks Rank of 3 (Hold), indicating an expectation of in-line returns in the coming months [22]. - The company is part of the Zacks Insurance - Multi line industry, which has seen varied performance among peers, such as Everest Group, which reported significant revenue growth but faced challenges in EPS [23][24].