MetLife Q3 Earnings Beat Estimates on Lower Costs, Asia Unit Strength

Core Insights - MetLife, Inc. reported third-quarter 2025 adjusted operating earnings per share (EPS) of $2.34, exceeding the Zacks Consensus Estimate by 0.4% and reflecting a 21% year-over-year increase [1][10] - Adjusted operating revenues reached $17.9 billion, a 1.6% year-over-year increase, but fell short of the consensus mark by 5% [1][2] Financial Performance - Strong performance in Asia, Group Benefits, and EMEA segments contributed to the quarterly results, driven by higher volumes and improved investment income [2] - Adjusted premiums, fees, and other revenues (PFOs) grew 4% year over year to $12.5 billion, while adjusted net investment income rose 6% year over year to $5.4 billion [3] - Total expenses decreased by 1.8% year over year to $16.2 billion, aided by lower policyholder benefits and claims [4] - Net income fell 36% year over year to $818 million, but adjusted return on equity improved by 230 basis points to 16.7% [4] Segment Performance - Group Benefits segment reported adjusted earnings of $455 million, a 22% year-over-year increase, surpassing the consensus estimate [5] - Adjusted earnings in the RIS unit declined 8% year over year to $436 million, but exceeded the consensus mark [6] - Asia segment's adjusted earnings surged 77% year over year to $543 million, significantly outpacing the consensus estimate [7] - Latin America adjusted earnings dropped 33% year over year to $147 million, impacted by a VAT charge in Mexico [8] - EMEA segment's adjusted earnings increased 26% year over year to $88 million, matching the consensus estimate [9] Financial Position - As of September 30, 2025, MetLife had cash and cash equivalents of $20.2 billion, a 0.8% increase from the end of 2024 [12] - Total assets rose 6.2% year over year to $719.7 billion, while total equity increased by 5.4% to $29.2 billion [12] Capital Management - MetLife repurchased shares worth $502 million in the third quarter and planned additional repurchases of approximately $150 million in October 2025 [14] - Common stock dividends paid in the quarter amounted to $378 million [14] Future Outlook - Management expects pre-tax variable investment income of around $1.7 billion for 2025 and projects an expense ratio of 12.1% [15] - Adjusted PFOs in Group Benefits are anticipated to rise by 4-7% annually, while declines of 4-6% are expected in the MetLife Holdings segment [16] - 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 [17]