Group 1 - The article does not provide any relevant content regarding company or industry insights [1]

Core Insights - MetLife's shares have underperformed over the past year, losing approximately 9% of their value due to mixed operating results and only beating earnings estimates sporadically [1] Company Performance - The company has faced challenges in achieving consistent operating results, which has contributed to its stock price decline [1]

Core Insights - MetLife reported a strong performance in Q4 2025, showcasing the firm's earnings power through a diversified set of market-leading businesses [1] - The company has restructured its business segments, establishing MetLife Investment Management as a stand-alone segment, highlighting the strategic importance of its asset management operations [2] Financial Performance - For the full year 2025, MetLife achieved a net income of $3.2 billion and adjusted earnings of $5.9 billion, with adjusted earnings per share rising 10% to $8.89 [3] - The company recorded $14.2 billion in pension risk transfer (PRT) transactions, indicating strong volume growth across its businesses [4] - MetLife maintained expense discipline with a direct expense ratio of 11.7%, outperforming its target of 12.1% for 2025, and achieved a full year adjusted return on equity of 15.9%, within the target range of 15% to 17% [4]

Core Insights - MetLife, Inc. reported fourth-quarter 2025 adjusted operating earnings per share (EPS) of $2.58, exceeding the Zacks Consensus Estimate by 9.3% and reflecting a 24% year-over-year increase [1][9] - Adjusted operating revenues reached $24.2 billion, marking a 22.6% year-over-year growth, although it fell short of the consensus estimate by 19.5% [1][9] Financial Performance - The quarterly earnings were bolstered by strong performance in Asia, Group Benefits, RIS, and EMEA segments, driven by higher volumes and improved investment income [2][9] - Adjusted premiums, fees, and other revenues (PFOs) grew 8% year over year to $12.8 billion, while adjusted net investment income rose 5% year over year to $5.6 billion [3] - Total expenses increased by 31.3% year over year to $22.7 billion, primarily due to higher policyholder benefits and claims [4] - Net income decreased by 37% year over year to $778 million, but adjusted return on equity improved by 300 basis points to 18.3% [4] Segment Performance - Group Benefits segment reported adjusted earnings of $465 million, a 12% year-over-year increase, surpassing the consensus estimate [5] - RIS segment's adjusted earnings grew 18% year over year to $454 million, also beating the consensus mark [6] - Asia segment's adjusted earnings were $444 million, up 1% year over year, exceeding the consensus estimate [7] - Latin America segment's adjusted earnings dropped 1% year over year to $198 million, impacted by a VAT charge in Mexico [8] - EMEA segment's adjusted earnings surged 64% year over year to $97 million, outperforming the consensus estimate [9] Financial Position - As of December 31, 2025, MetLife had cash and cash equivalents of $22 billion, a 9.8% increase from the previous year [11] - Total assets rose to $745.2 billion, a 10% increase year over year, while total equity increased by 3.5% to $28.7 billion [11] - Book value per share was $39.02, reflecting a 13.8% year-over-year increase [12] Capital Deployment - MetLife repurchased shares worth $430 million in the fourth quarter and planned additional repurchases of approximately $200 million in January 2026 [13] Full-Year Results and Outlook - For full-year 2025, adjusted operating revenues were $78.8 billion, up from $73.1 billion the previous year, with adjusted EPS rising 10% year over year to $8.89 [14] - Management projects a pre-tax variable investment income of around $1.6 billion for 2026 and expects an expense ratio of 12.1% [15] - Near-term targets include adjusted PFO growth in Group Benefits of 4-7% annually and double-digit adjusted EPS growth [16]

Financial Data and Key Metrics Changes - In Q4 2025, adjusted earnings were reported at $1.6 billion or $2.49 per share, with an adjusted EPS of $2.58, up 24% from $2.08 a year ago, marking MetLife's highest single EPS quarter [11][20] - For the full year 2025, adjusted earnings, excluding notable items, totaled $6 billion or $8.89 per share, reflecting a growth of approximately 10% [12][20] - The company achieved a 10% adjusted EPS growth and an adjusted return on equity (ROE) of 16%, within the target range [9][20] Business Line Data and Key Metrics Changes - Group Benefits adjusted earnings for Q4 were $465 million, up 12% year-over-year, driven by favorable underwriting in life and dental, despite weaker disability results [24] - Retirement and Income Solutions (RIS) adjusted earnings were $454 million for Q4, up 18%, benefiting from record origination in pension risk transfers and U.K. longevity reinsurance [14][25] - Asia adjusted earnings were $444 million, essentially flat year-over-year, with sales growth of 18% on a constant currency basis, primarily driven by Japan and Korea [26] - Latin America adjusted earnings were $227 million, up 13%, with adjusted PFOs rising 25% [27] Market Data and Key Metrics Changes - Asia saw constant currency sales jump 18% in 2025, while Latin America sales rose by 12%, with Mexico leading the growth [7] - EMEA adjusted earnings increased by 64%, driven by robust volume growth and favorable underwriting margins [27] Company Strategy and Development Direction - The company launched the "New Frontier" strategy focusing on growth, capital deployment, and operational efficiency [5] - MetLife Investment Management (MIM) was established as a new business segment following the acquisition of PineBridge Investments, with $742 billion in assets under management [6][28] - The company aims to achieve double-digit adjusted EPS growth and maintain a direct expense ratio target of 11.3% over five years [9][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to adapt to changing economic environments, emphasizing the importance of disciplined capital management and operational efficiency [10][18] - The outlook for 2026 includes expectations for double-digit adjusted EPS growth and a stable U.S. dollar, with a projected increase in long-term interest rates [35] Other Important Information - MetLife returned approximately $4.4 billion to shareholders through stock repurchases and dividends in 2025 [8] - The company reported a total of $50 billion in policyholder benefits and claims paid in 2025 [19] Q&A Session Summary Question: Comments on Group Benefits renewal season and pricing - Management noted robust results in persistency, particularly in dental, with good sales growth across the business, including disability [47] Question: Impact of macroeconomic volatility in Japan - Management acknowledged short-term impacts on sales due to macroeconomic fluctuations but maintained a strong value proposition and diversified product portfolio [48][49] Question: Change in GAAP earnings for real estate accounting - Management explained the change aimed to better reflect annual cash flows and returns, aligning with overall economics of the asset class [52][54] Question: Outlook for U.S. retail retirement space - Management highlighted successful execution of flow reinsurance deals, enhancing liability origination and capital flexibility [62] Question: Surrender activity in Japan - Management reported a slight increase in surrender trends in Q4 but expected surrenders to return to long-term assumptions in 2026 [64] Question: Employment actions and their impact on Group Benefits - Management indicated that employment actions were considered in the outlook, but strong sales growth and persistency were also observed [68]

Financial Data and Key Metrics Changes - In Q4 2025, adjusted earnings were reported at $1.6 billion or $2.49 per share, with an adjusted EPS of $2.58, up 24% from $2.08 a year ago, marking MetLife's highest single EPS quarter [11][20] - For the full year 2025, adjusted earnings, excluding notable items, reached $6 billion or $8.89 per share, reflecting a growth of approximately 10% [12][20] - The company achieved a 10% adjusted EPS growth and a 16% adjusted return on equity (ROE) for the year, aligning with its five-year financial commitments [9][20] Business Line Data and Key Metrics Changes - Group Benefits adjusted earnings for Q4 totaled $465 million, up 12% year-over-year, driven by favorable underwriting in life and dental, despite weaker disability results [13][24] - Retirement and Income Solutions (RIS) adjusted earnings were $454 million for Q4, up 18%, benefiting from record origination in pension risk transfers and UK longevity reinsurance [14][25] - Asia adjusted earnings were $444 million, essentially flat year-over-year, with sales growth of 18% on a constant currency basis, primarily driven by Japan and Korea [26] - Latin America adjusted earnings reached $227 million, up 13%, with adjusted PFOs increasing by 25% [27] Market Data and Key Metrics Changes - Asia saw constant currency sales jump 18% in 2025, while Latin America sales rose by 12%, with Mexico leading the growth [7][27] - EMEA adjusted earnings increased by 64%, driven by robust volume growth and favorable underwriting margins [27] Company Strategy and Development Direction - The company launched the "New Frontier" strategy emphasizing growth, capital deployment, and operational discipline, with a focus on enhancing market leadership [5][10] - MetLife Investment Management (MIM) was established as a new business segment following the acquisition of PineBridge Investments, with $742 billion in assets under management at year-end [6][28] - The company aims to achieve double-digit adjusted EPS growth and maintain a direct expense ratio target of 11.3% over five years, despite a projected increase in 2026 due to the acquisition [9][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to adapt and succeed in various economic environments, highlighting strong business momentum and market leadership [10][18] - The outlook for 2026 includes expectations for double-digit adjusted EPS growth and a stable US dollar, with a focus on maintaining capital flexibility [35][41] Other Important Information - The company returned approximately $4.4 billion to shareholders through stock repurchases and dividends in 2025 [8] - MetLife paid roughly $50 billion in policyholder benefits and claims, emphasizing its commitment to building a confident future for its stakeholders [19] Q&A Session Summary Question: Comments on Group Benefits renewal season and pricing - Management noted robust results in persistency, particularly in dental, with good sales growth across the business, including disability [47] Question: Impact of macroeconomic variables in Japan - Management acknowledged macroeconomic volatility affecting sales but maintained a strong value proposition and optimistic outlook for the market [48][49] Question: Change in GAAP earnings for real estate accounting - The change was made to better reflect annual cash flows and returns, aligning with the company's operational cash flow [52][53] Question: Impact of Brighthouse acquisition on MIM - Management expressed excitement about the PineBridge acquisition and its potential to enhance service offerings, with minimal expected impact on EPS from Brighthouse [55][58] Question: Surrender activity in Japan - Management reported a slight increase in surrenders in Q4 but expected them to return to long-term assumptions in 2026 [65]

Financial Data and Key Metrics Changes - In Q4 2025, MetLife reported adjusted earnings of $1.6 billion or $2.49 per share, with adjusted EPS excluding notable items at $2.58, a 24% increase from $2.08 a year ago, marking the highest single EPS quarter for the company [10][19] - For the full year 2025, adjusted earnings excluding notable items reached $6 billion or $8.89 per share, up roughly 10% [11][19] - The company achieved 10% adjusted EPS growth and an adjusted return on equity (ROE) of 16%, within the target range of 15%-17% [8][19] Business Line Data and Key Metrics Changes - Group Benefits adjusted earnings for Q4 were $465 million, contributing to full-year adjusted earnings of $1.7 billion, with life mortality trends improving [12][22] - Retirement and Income Solutions (RIS) adjusted earnings were $454 million for Q4, up 18%, with full-year earnings also at $1.7 billion, benefiting from record origination in pension risk transfers [13][24] - Asia adjusted earnings were $444 million for Q4, essentially flat year-over-year, while Latin America adjusted earnings rose 13% to $227 million [25][26] Market Data and Key Metrics Changes - Asia saw constant currency sales jump 18% in 2025, with Japan contributing significantly, while Latin America sales rose by 12%, led by Mexico [5][26] - EMEA adjusted earnings increased 64%, driven by robust volume growth and favorable underwriting margins [26] Company Strategy and Development Direction - MetLife's "New Frontier" strategy emphasizes growth, capital deployment, and operational discipline, with a focus on enhancing market leadership in group benefits and asset management [4][17] - The acquisition of PineBridge Investments established a new business segment, MetLife Investment Management, which had $742 billion in assets under management by year-end [5][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving five-year commitments for adjusted EPS, adjusted ROE, and free cash flow, despite evolving macroeconomic conditions [9][34] - The company anticipates continued growth in 2026, with adjusted EPS growth expected to remain in double digits and adjusted ROE targeted at 15%-17% [34] Other Important Information - MetLife returned approximately $4.4 billion to shareholders in 2025 through stock repurchases and dividends, while also funding acquisitions and investments totaling about $1.2 billion [6][15] - The company paid roughly $50 billion in policyholder benefits and claims in 2025, highlighting its commitment to customer service [18] Q&A Session Summary Question: Comments on Group Benefits renewal season and pricing - Management noted robust results in persistency, particularly in dental, with good sales growth across the business, including strength in disability [46] Question: Impact of macroeconomic volatility in Japan - Management acknowledged short-term impacts on sales due to macroeconomic fluctuations but emphasized a solid value proposition and strong sales results [48][49] Question: Changes in GAAP earnings for real estate accounting - Management explained the change aimed to better reflect cash flows and returns, aligning with overall economics of the asset class [52][54] Question: Outlook for U.S. retail retirement space - Management highlighted successful execution of flow reinsurance deals, enhancing liability origination and capital flexibility [61][64] Question: Trends in surrender activity in Japan - Management reported a slight increase in surrenders in Q4 but expected them to return to long-term assumptions in 2026 [65] Question: Group disability experience and outlook - Management indicated pressure in disability results but did not expect this to indicate a trend into 2026, citing strong full-year performance [78]

4Q25 Earnings Call Presentation1 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. 1 These slides highlight information in MetLife, Inc.'s earnings release, quarterly financial supplement and other prior public disclosures. 1 Table of contents Page No. | Key 2025 highlights | 3 | | --- | --- | | Adjusted earnings by segment and Corporate ...

Core Insights - MetLife reported $24.19 billion in revenue for Q4 2025, a year-over-year increase of 22.6%, with EPS of $2.58 compared to $2.08 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate of $30.04 billion, resulting in a surprise of -19.47%, while the EPS exceeded expectations by 9.32% [1] Financial Performance Metrics - Adjusted Revenue from Asia's net investment income was $1.41 billion, exceeding the estimated $1.38 billion, reflecting a 12.3% year-over-year increase [4] - Adjusted Revenue from Latin America's premiums reached $1.44 billion, surpassing the $1.24 billion estimate, marking a 31.4% year-over-year growth [4] - Adjusted Revenue from Asia's premiums was $1.22 billion, slightly below the $1.23 billion estimate, showing a 1.3% year-over-year increase [4] - Adjusted Revenue from EMEA's premiums was $679 million, exceeding the $627.25 million estimate, with a year-over-year change of 19.5% [4] - Total revenue from net investment income was $5.92 billion, above the $5.5 billion estimate, representing a 9.6% year-over-year increase [4] - Other revenues amounted to $737 million, surpassing the $661.92 million estimate, with a year-over-year change of 15% [4] - Universal life and investment-type product policy fees generated $1.27 billion, slightly above the $1.26 billion estimate, reflecting a 4.2% year-over-year increase [4] - Total adjusted revenue for Group Benefits was $6.65 billion, slightly below the $6.71 billion estimate, with a year-over-year change of 2.3% [4] - Adjusted Revenue for Retirement & Income Solutions from universal life and investment-type product policy fees was $104 million, exceeding the $98.69 million estimate, marking a 5.1% year-over-year increase [4] - Adjusted Revenue for Retirement & Income Solutions from net investment income was $2.23 billion, above the $2.19 billion estimate, reflecting a 4% year-over-year increase [4] - Adjusted Revenue for Retirement & Income Solutions from other revenues was $75 million, surpassing the $62.52 million estimate, with a year-over-year change of 23% [4] Stock Performance - MetLife's shares have returned -5.3% over the past month, while the Zacks S&P 500 composite increased by 0.9% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance compared to the broader market in the near term [3]

MetLife’s fourth-quarter earnings beat analysts’ expectations, with higher private equity returns propelling a jump in the insurer’s investment income https://t.co/Gz7ETKOkA4 ...