Group 1 - The article suggests considering preferred shares issued by MetLife (NYSE: MET) in a "higher for longer" interest rate environment, indicating a potential investment opportunity [1] - The investment group European Small Cap Ideas focuses on high-quality small-cap investment opportunities in Europe, emphasizing capital gains and dividend income [1] - The group offers two model portfolios: the European Small Cap Ideas portfolio and the European REIT Portfolio, along with weekly updates and educational content [1] Group 2 - The analyst has a beneficial long position in the shares of MET.PR.A, indicating confidence in the investment [1] - There is a mention of the possibility of writing put options on MET, although it is unlikely to occur in the immediate future [2]

Let's bring in MetLife investment manage management chief market strategist Drew Mattis. Drew, it's good to have you. I've been struck by, you know, everyone's talking about better risk appetite and better capital markets activity.You kind of remain in a harder landing camp, don't you. Uh, we do. We we're expecting more of a slowdown as you go into the second half of the year.Uh, I know the claims data looked fine, but the continuing claims data continue to disappoint. Um, you know, I'd also point out, you ...

just leaving that data point. Megan. Thanks, Megan Cassella.Drew Mattis is here for more. He's the chief market strategist at MetLife Investment Management here on set with us. Do you want to jump into this debate over do you perceive that.Yes, in largely speaking, we're not seeing a lot of pass through on the inflation front, which means that foreigners are eating the cost. You know, some importers eating the cost. Corporate margins are taking it somewhere.Just what's your macro thought about what we're se ...

Investment Rating - The report maintains an "Overweight" (OW) rating for AIA Group, indicating a positive outlook for the company's performance in the insurance sector [30]. Core Insights - AIA Group has shown strong resilience in agent productivity, achieving a 3% year-over-year growth in the number of MDRT agents, contrasting with a decline in many of its peers [1][3]. - Asian insurers dominate the global MDRT rankings, contributing 89% of the top 100, although there has been a slight decrease in recognition compared to the previous year [3][4]. - The report attributes AIA's positive growth to three main factors: raised MDRT recognition criteria, regulatory discouragement in China, and tightening regulations in Vietnam [1][3]. Summary by Sections MDRT Statistics - The 2025 MDRT statistics reveal that AIA Group is one of the few multinational insurers to maintain positive growth in agent numbers, with a notable 9% CAGR from 2020 to 2025 [3][4]. - The overall number of MDRT members among the top five multinational insurers increased to 36,903, with AIA leading the growth compared to peers like Metlife and Prudential, which experienced declines of -12% and -17% respectively [4][9]. Regulatory Environment - The report highlights that the criteria for MDRT recognition have been strengthened post-pandemic, impacting the overall recognition rates for many insurers in Asia [3][4]. - Regulatory changes in China and Vietnam are noted as significant factors affecting MDRT membership and recognition, with the former discouraging participation and the latter tightening regulations [1][3]. Financial Metrics - AIA's stock is currently trading at 1.4x FY25E P/EV and 12.8x FY25E P/OPAT, indicating a favorable valuation compared to historical averages [1][4].

Core Insights - MetLife, Inc. has partnered with Sprout.ai to automate claims processes across the U.S., Asia, and Latin America, aiming for faster and more accurate claims while enhancing customer experience [1][10] - The AI-powered platform from Sprout.ai enables instant claims decisions and integrates smoothly with existing systems, improving operational efficiency while maintaining a human-centered approach [2][4] - Following a successful pilot in Latin America, MetLife plans to expand Sprout.ai's solutions to other markets, aligning with its global strategy to enhance customer engagement and digitize core processes [3][10] Industry Trends - The insurance industry is increasingly adopting digital transformation, with strategic tech-driven partnerships becoming essential for sustainable growth [5] - Automating claims processes is seen as a pathway to cost savings, service improvements, and competitive differentiation, as insurers face pressure to innovate [4][5]

Core Insights - MetLife, Inc. is expanding its Upwise benefits experience platform through a partnership with Nayya, making it available to employers via the Workday Marketplace starting October 1, 2025 [1][7]. Group 1: Upwise Platform Expansion - Upwise will be offered at no additional cost to employers who include MetLife's Accident, Hospital Indemnity, or Critical Illness insurance products in their benefits packages [2]. - The platform aims to address the benefits 'confusion gap' affecting the workforce, with 64% of employees reporting it simplifies their benefits decision-making process [3]. Group 2: Strategic Implications - This initiative reflects MetLife's strategy to enhance customer satisfaction and retention rates by streamlining the benefits decision-making process [4]. - The expansion is expected to increase the uptake of MetLife's Employee Benefit plans, potentially leading to higher premiums for the insurer [5]. Group 3: Financial Performance - MetLife's total premiums increased by 16.6% year over year in Q1 2025 [5]. - The company's shares have gained 12.5% over the past year, outperforming the industry growth of 10.4% [6].

Financial Data and Key Metrics Changes - In 2024, the company generated adjusted earnings per share of $8.11, representing an 11% increase compared to the previous year [14] - Adjusted return on equity increased to 15.2% from 13.8% in 2023 [14] - The company returned $4.7 billion to shareholders through $3.2 billion in common stock repurchases and $1.5 billion in common stock dividends [14] Business Line Data and Key Metrics Changes - The company successfully completed its five-year Next Horizon strategy in 2024, exceeding all financial commitments set during the 2019 Investor Day [14] - The new strategy, New Frontier, aims for double-digit adjusted EPS growth and a 15% to 17% adjusted ROE over the next five years [15][16] Market Data and Key Metrics Changes - The company is focused on generating over $25 billion in free cash flow over the next five years, despite external uncertainties [16] Company Strategy and Development Direction - The New Frontier strategy is an evolution that leverages the strength of diversified businesses while capitalizing on market opportunities [15] - The company aims to reduce its direct expense ratio target by 100 basis points [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to drive long-term value for shareholders and stakeholders, emphasizing the importance of purpose in the company's culture [17][18] - The company was recognized as number 13 on Fortune's list of the world's 25 best workplaces in 2024, highlighting its commitment to employees and communities [17] Other Important Information - The formal business of the annual meeting included the election of directors and the ratification of Deloitte and Touche LLP as the independent auditor for 2025 [9][11] - All proposals presented at the meeting were approved, including the advisory vote on executive compensation [11] Q&A Session Summary Question: Were there any shareholder questions or comments? - There were no shareholder questions or comments related to the proposals during the meeting [10][19]

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].