Financial Data and Key Metrics Changes - Distributable earnings before realizations increased 13% year over year to $1,300,000,000, equating to $0.80 per share for the quarter and $5,300,000,000 or $3.36 per share for the last twelve months [5][15] - Total distributable earnings including realizations were $1,400,000,000 or $0.88 per share for the quarter and $5,900,000,000 or $3.71 per share over the last twelve months, with total net income of $2,900,000,000 [15] Business Line Data and Key Metrics Changes - The asset management business generated distributable earnings of $650,000,000 or $0.41 per share in the quarter, and $2,700,000,000 or $1.72 per share over the last twelve months [16] - Wealth Solutions business delivered distributable operating earnings of $391,000,000 or $0.25 per share in the quarter and $1,600,000,000 or $1.02 per share over the last twelve months [18] - Strong fundraising across flagship funds led to inflows of $22,000,000,000 during the quarter, including over $5,000,000,000 from retail and wealth solutions clients [17] Market Data and Key Metrics Changes - Global equities hit all-time highs, credit spreads tightened dramatically, and interest rates remained largely unchanged, with expectations of potential cuts in the near future [6] - The company completed GBP55 billion of asset sales this year, including GBP35 billion in the quarter, generating excellent returns [7][22] Company Strategy and Development Direction - The company is focusing on digitalization, deglobalization, and decarbonization as key themes for capital deployment [7] - A new AI infrastructure strategy is being launched, focusing on developing AI factories to meet the growing demand for compute capacity [9] - The company plans to enhance its capital structure to support low-risk, long-duration insurance operations, indicating a shift towards integrating insurance with investment strategies [10][11] Management's Comments on Operating Environment and Future Outlook - Management noted that the macro environment is becoming increasingly constructive, supporting increased monetizations and strong demand for high-quality assets [6][7] - The company anticipates continued growth in financial results over the remainder of the year, supported by strong underlying fundamentals [27] Other Important Information - The company announced an agreement to acquire Just Group for $3,200,000,000, which is expected to significantly accelerate growth in the insurance business [19] - A quarterly dividend of $0.09 per share was declared, and a three-for-two stock split of Class A limited voting shares was approved [27] Q&A Session Summary Question: Growth in P&C business and scaling plans - Management indicated that the focus is on low-risk liabilities, particularly in the annuity business, with potential for organic growth in P&C if competitive advantages are identified [29][30] Question: Market conditions and carried interest - Management noted that while market conditions are improving, the timing of carried interest realization remains broadly in line with previous expectations, with significant contributions expected next year [35][36] Question: Just Group acquisition financing - Management stated that details on the financing facility for the Just Group acquisition are limited due to UK takeover rules, but it is a public to private transaction [40] Question: AI infrastructure strategy and investor support - Management confirmed that they are engaging with large shareholders for potential cornerstone investments in the new AI infrastructure strategy [48] Question: Wealth Solutions business spread and cash distributions - Management clarified that the spread remains consistent with previous quarters, and the reduction in cash distributions is primarily due to one-time income from the residential land and housing business last year [56][57]

Financial Data and Key Metrics Changes - Adjusted net operating income for Q2 2025 was $180 million, reflecting a 6% year-over-year increase, while diluted adjusted operating EPS rose 10% to $5.46 [5] - Total capital returned to stockholders during the quarter was $163 million, comprising $129 million in share repurchases and $34 million in regular dividends [5] - The company ended the quarter with $371 million in cash and invested assets, with an estimated RBC ratio of 490% [20][56] Business Line Data and Key Metrics Changes - Term Life segment revenues for Q2 2025 were $442 million, up 3% year-over-year, driven by a 5% growth in adjusted direct premiums [13] - ISP segment sales increased 15% to $3.5 billion, with net inflows of $487 million compared to $227 million in the prior year [8] - The mortgage business saw closed loan volume of $133 million in the U.S., up 33% year-over-year, and $45 million in Canada, up 30% [11] Market Data and Key Metrics Changes - The number of new term life insurance policies issued declined by 19% year-over-year, with a total face amount in force reaching a record $968 billion [7] - Client asset values in the ISP segment ended the quarter at $120 billion, up 14% year-over-year [8] - The company recruited over 80,000 individuals in Q2, with 13,000 new representatives licensed, a 10% decrease from the previous year [5][6] Company Strategy and Development Direction - The company aims to grow its sales force by 23% in 2025, emphasizing the importance of recruiting during economic uncertainty [6] - The complementary nature of ISP and Term Life products is highlighted, with ISP sales helping to offset headwinds in life sales [12] - The company is committed to investing in technology and infrastructure to support growth in the ISP segment [18] Management's Comments on Operating Environment and Future Outlook - Management noted that cost of living pressures and economic uncertainty have led to a "wait and see" attitude among middle-income families, impacting term life sales [25][29] - There is confidence that middle-income families will adapt to economic conditions over time, and the company expects a normalization of persistency rates [14][46] - The company anticipates continued strong demand for retirement savings products, driven by demographic trends [9][62] Other Important Information - The company corrected its methodology for calculating outflows and market value for Canadian mutual fund assets, which had no impact on financial statements [9] - The net unrealized loss in the investment portfolio improved, ending the quarter with a loss of $158 million, attributed to interest rates rather than credit concerns [19] Q&A Session Summary Question: Decline in term life sales and cost of living impact - Management indicated that the decline in term life sales is due to cost of living pressures and uncertainty, leading to a wait-and-see attitude among families [25][29] Question: Recruitment opportunities amid economic pressures - Management confirmed that financial stress can create opportunities for recruiting new agents, as individuals seek additional income [31] Question: Favorable mortality trends - Management noted that favorable mortality trends have been observed for over ten quarters, with potential adjustments to long-term assumptions being considered [36] Question: ISP sales growth expectations - Management expects ISP sales growth to moderate but remain strong, with continued strength observed in July [44] Question: Capital deployment and RBC ratio - Management explained that the RBC ratio is influenced by regulatory restrictions and the desire to maintain a strong capital position to support growth [56] Question: Dynamics in different product areas - Management discussed the mix shift in product sales, noting that variable annuities are gaining traction due to market conditions [62] Question: Trends in mortgage business - Management expressed optimism about the mortgage business, particularly if interest rates decline, which could lead to refinancing opportunities [67] Question: Expense results in Q2 - Management indicated that Q2 expenses were influenced by timing and technology investments, with a full-year guidance of a 6% to 8% increase [74] Question: Efforts to grow ISP sales force - Management highlighted ongoing efforts to grow the ISP sales force and increase diversity in sales across product lines [78]

Financial Data and Key Metrics Changes - The company reported adjusted net earnings of $103 million or $0.77 per share for the second quarter, with investment income from alternative investments at $83 million or $0.62 per share, below long-term expectations [17] - Adjusted return on assets (ROA) was 92 basis points, compared to 91 basis points in the same quarter of the previous year, while adjusted return on equity (ROE) was 8.8%, up 40 basis points year-over-year [19] Business Line Data and Key Metrics Changes - Gross sales reached $4.1 billion in the second quarter, with core sales of fixed index annuities, index life, and pension risk transfer totaling $2.2 billion, up 22% sequentially and 10% year-over-year [6][9] - MYGA sales were a record $1.9 billion in the second quarter, a 73% increase over the previous quarter but down 21% from the same quarter last year [8] Market Data and Key Metrics Changes - The total annuity market has expanded, driven by strong consumer demand and favorable demographics, with the aging population seeking guaranteed income streams [5] - The company reported record assets under management (AUM) before flow reinsurance of $69.2 billion, a 137% increase compared to the previous year [10] Company Strategy and Development Direction - The company is transitioning towards a more fee-based, higher-margin, and less capital-intensive business model, supported by the launch of a new reinsurance vehicle in partnership with Blackstone [4][12] - The reinsurance sidecar is expected to enhance ROE over time and is part of a broader strategy to optimize capital allocation [20][22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting the strong second quarter results and the potential for continued growth in fee-based earnings [24] - The company remains focused on managing profitability and optimizing return on capital while navigating industry dynamics and macroeconomic conditions [24] Other Important Information - An executive management transition was announced, with Connor Murphy taking on the role of President in addition to his current role as CFO [12] - The company has invested nearly $700 million in its own distribution company, reflecting a commitment to diversifying its business model [22] Q&A Session Summary Question: What is the expected capacity of the new sidecar and how quickly can it be filled? - Management indicated that the sidecar could provide multiple billions in capacity, depending on product type, and is part of a strategy for a more capital-light approach [27] Question: What does the capital-light path mean for potential consolidation? - Management emphasized the importance of smart capital allocation and expressed excitement about the growth of own distribution, which is generating strong returns [29][30] Question: How are MYGA sales shaping up for Q3? - Management expects a more normalized rate for MYGA sales, with potential volatility, but anticipates higher indexed annuity sales due to the new sidecar [38] Question: How do you see the funding agreements shaping up? - Management noted that the funding agreement market looks attractive and will be closely monitored in the upcoming quarter [41] Question: What is the balance of opportunity between FIAs and RILAs? - Management expressed confidence in both FIAs and RILAs, noting significant growth in RILAs relative to their size, but emphasized that FIAs remain a core product [43] Question: What is the walk from Q2 ROA to Investor Day targets? - Management provided insights on tracking towards Investor Day targets, indicating progress in ROA and expense ratio improvements [45][47]

Financial Data and Key Metrics Changes - Hamilton Insurance Group reported net income of $187 million for Q2 2025, representing an annualized return on average equity of 30.2%, compared to $131 million and 23.6% in Q2 2024 [4][17][18] - Operating income was $162 million, or $1.55 per diluted share, with an annualized operating return on average equity of 26.1% [17][18] - Book value per share increased by 8.3% to a record $25.55 [18][32] Business Line Data and Key Metrics Changes - Gross premiums written increased by 18% in Q2 2025, reaching $1.6 billion compared to $1.3 billion in Q2 2024 [4][19] - Hamilton Global Specialty saw gross premiums written grow by 7%, while Hamilton Select experienced a significant growth of 52% year-over-year [11][22] - The Bermuda segment's gross premiums written grew by 21% to $841 million, driven by casualty and property reinsurance classes [24][25] Market Data and Key Metrics Changes - The international segment's gross premiums written increased by 13% to $715 million, with underwriting income rising to $27 million [22] - The combined ratio for the group was 86.8%, up from 84.4% in Q2 2024, with a loss ratio increase to 52.8% [20][21] - The investment income for Q2 2025 was $149 million, significantly higher than $96 million in Q2 2024 [27] Company Strategy and Development Direction - The company is focused on proactive cycle management, targeting attractive underwriting opportunities while reducing exposure in less favorable areas [8][19] - Recent management appointments reflect a commitment to internal talent development and strategic alignment with company goals [5][6] - The company aims to maintain a disciplined underwriting approach, particularly in the casualty and property markets, while leveraging its AM Best rating upgrade to access new business opportunities [9][56] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's performance trajectory, citing a well-diversified platform and strong client relationships [15][16] - The company remains vigilant regarding loss reserves and expects continued favorable reserve development [14][15] - Despite some market pressures, management believes the underwriting environment remains attractive for disciplined organizations [16] Other Important Information - The company repurchased $35 million of shares in Q2 2025, with an additional $15 million repurchased in July [30] - Total assets increased by 14% to $8.9 billion, with total investments and cash rising by 11% to $5.3 billion [31] Q&A Session Summary Question: Can you provide more color around the reserve increases and the discontinued lines? - The reserve increase was modest, primarily related to discontinued lines from strategic transformation, specifically from 2020 and prior [34][36][39] Question: Can you talk about property pricing in the quarter? - Property pricing saw pressure in certain areas, but overall remains attractive, with a focus on mid-sized to smaller accounts [42][44][46] Question: Are you seeing MGA competition in your Select business? - The Hamilton Select business is performing well, with a healthy flow of business and no support for MGAs, maintaining in-house underwriting [49][50] Question: How should we think about tax rates going forward? - The current effective tax rate is in the low single digits, with a five-year deferral on the global minimum tax [80][81] Question: What drove the drop in interest expense? - The decrease in interest expense was due to lower SOFR rates and improved credit conditions leading to reduced margins on letters of credit [70][71]

Financial Performance - GAAP revenues reached $793.3 million, slightly up from $791.0 million in Q2 2024 [11] - GAAP net income was $178.3 million, a significant increase compared to $1.2 million in Q2 2024, which was impacted by a loss from discontinued operations [11] - Adjusted operating revenues increased by 7% to $796.0 million from $740.9 million in Q2 2024 [12] - Adjusted net operating income rose by 6% to $180.4 million from $171.0 million in Q2 2024 [12] - Diluted adjusted operating EPS increased by 10% to $5.46 from $4.95 in Q2 2024 [12] Sales & Distribution - The life-licensed sales force grew by 5% year-over-year, reaching 152,592 [16, 19] - Recruits decreased by 16% to 80,924 from 96,563 in Q2 2024 [16] - New life-licensed representatives decreased by 10% to 12,903 from 14,402 in Q2 2024 [16] Production Highlights - Issued life insurance policies decreased by 11% to 89,850 from 100,768 in Q2 2024 [22] - Total product sales for Investment and Savings Products (ISP) increased by 15% to $3.5 billion from $3.1 billion in Q2 2024 [29] - Client asset values for ISP increased by 14% to $120.2 billion from $105.1 billion in Q2 2024 [29]

Financial Data and Key Metrics Changes - Adjusted earnings for the second quarter were reported at $1.4 billion or $2.2 per share, reflecting a 16% decrease year-over-year due to less favorable underwriting and investment margins [7][21] - The adjusted return on equity was 14.6%, well above the cost of capital and near the mid-teen target range [8] - Free cash flow allowed the company to return approximately $900 million to shareholders through dividends and share repurchases [8][18] Business Segment Data and Key Metrics Changes - Group Benefits adjusted earnings were $400 million, down 25% from the previous year due to less favorable life and non-medical health underwriting [8][22] - Retirement and Income Solutions (RIS) reported adjusted earnings of $368 million, down 10% year-over-year, primarily due to lower recurring interest margins [11][24] - Asia adjusted earnings were $350 million, down 22% year-over-year, with sales up 9% on a constant currency basis [13][26] - Latin America adjusted earnings totaled $233 million, up 3% and 15% on a constant currency basis, driven by volume growth [14][28] - EMEA adjusted earnings were $100 million, up 30% on both a reported and constant currency basis, primarily due to strong volume growth [15][29] Market Data and Key Metrics Changes - Total liability exposures increased by 6% year-over-year, exceeding the 2025 outlook range of 3% to 5% [12] - In Japan, sales increased by 29% on a constant currency basis, while Korea saw a 36% increase year-over-year [13][50] - EMEA's quarterly run rate is expected to remain above its 2025 guidance of $70 million to $75 million for the remainder of the year [29] Company Strategy and Development Direction - The company is executing its "New Frontier" growth strategy, focusing on managing expenses, returning capital to shareholders, and capitalizing on market trends [6][19] - Strategic partnerships, such as with Workday, are aimed at enhancing the benefits experience and driving sales growth [10][15] - Recent acquisitions and partnerships, including Pinebridge Investments and Chariot Re, are expected to support growth in the investment management platform [16][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver on commitments despite the current economic environment [6] - The company anticipates improvements in underwriting and investment margins in the upcoming quarters [39][72] - Management noted that the current quarter's results do not fully reflect the company's earnings power, with expectations for better performance in the second half of the year [19][36] Other Important Information - The company has repurchased approximately $2 billion of its common stock year-to-date, with a total of nearly $16 billion repurchased since 2021 [18][34] - Cash and liquid assets at holding companies were reported at $5.2 billion, exceeding the target buffer range [18][34] - The effective tax rate on adjusted earnings was approximately 24%, at the bottom end of the 2025 guidance range [30] Q&A Session Summary Question: Observations on elevated claims in the sector - Management indicated that the elevated claims were not surprising and expected improvements in the non-medical health ratio in the upcoming quarters [38][39] Question: Outlook for Chariot Re and growth opportunities - Management views Chariot Re as a vehicle for growth, focusing on MetLife-originated liabilities and anticipating more transactions [44][46] Question: Strong sales in Japan and Korea - Management reported strong sales performance driven by new product launches and expects to remain at the top end of guidance for Asia sales [49][52] Question: Stability of retirement spreads - Management expects core spreads to remain stable, with some seasonality anticipated in Q3 [53][56] Question: Analysis of disability claims - Management clarified that the pressure on disability claims was related to specific clients and not indicative of broader trends [61][62] Question: Update on commercial mortgage loan reserves - Management acknowledged an increase in reserves for commercial mortgages, indicating it reflects stabilization in the market [65][66] Question: Implementation of Gen AI - Management expressed excitement about the potential of AI, highlighting ongoing investments and improvements in processes to leverage emerging technologies [98][100]

Financial Data and Key Metrics Changes - AIG reported adjusted after-tax income per diluted share of $1.81, a 56% increase year over year [7] - Adjusted after-tax income for the quarter was $1 billion, up 35% from the prior year, driven by the general insurance business [7] - Net investment income on an adjusted pretax basis was $955 million, an increase of 9% year over year [7] - The accident year combined ratio as adjusted was 88.4%, while the calendar year combined ratio improved to 89.3%, a 320 basis point improvement from the prior year quarter [8][37] - AIG returned $2 billion of capital to shareholders, bringing the year-to-date total to $4.5 billion [8] Business Line Data and Key Metrics Changes - Net premiums written were $6.9 billion, a 1% increase year over year, with 3% growth in global commercial [10] - North America commercial insurance net premiums written increased 4% year over year, with a notable 11% increase excluding property [11] - Retail casualty and Lexington casualty each increased by 19%, while retail property and Lexington property saw an 8% decline [11] - International commercial insurance net premiums written increased by 1%, driven by modest growth in casualty and global specialty [12] Market Data and Key Metrics Changes - Global commercial produced strong new business of nearly $1.4 billion, a 7% increase from the prior year quarter [12] - The submission count in the Lexington business increased by 28% year over year, indicating strong demand [13] - Global personal net premiums written decreased by 3%, impacted by a high net worth quota share reinsurance treaty [14] Company Strategy and Development Direction - AIG is focused on maintaining its US property portfolio while managing risk-adjusted returns and being cautious in growth due to market conditions [24] - The company aims to reduce its general insurance expense ratio below 30% by 2027 [37] - AIG NEXT initiative has delivered $500 million in savings and operational improvements, with a total of $530 million in annual run rate expense savings achieved [27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a 10% plus core operating ROE target in 2025, despite a dynamic macro and insurance market [52] - The company is well-positioned for growth, with significant opportunities in casualty and specialty lines, despite some rate pressure [66][72] - Management noted that social inflation is a long-term issue, but AIG's strong brand and financial strength make it an attractive partner for clients [84] Other Important Information - AIG's major insurance subsidiaries received financial strength upgrades from S&P to AA- and Moody's to A1 during the quarter [51] - The company sold $430 million worth of Corbridge Financial shares, reducing its stake to approximately 21% [8] - Book value per share increased to $74.14, up 8% from the previous year [52] Q&A Session Summary Question: Property pricing implications and combined ratio targets - Management clarified that reinsurance benefits the original pricing, and they do not expect significant headwinds in underwriting despite potential combined ratio increases [56][60] Question: Capital situation if growth outlook is not as expected - Management indicated that if capital cannot be deployed for growth, it would be returned to shareholders, but they believe there are opportunities for growth in the current environment [62][64] Question: Reapportionment of reserves to accident years '21 and '22 - Management explained that the reapportionment is a prudent measure and does not indicate deterioration in the underlying portfolio [80][81] Question: Demand for liability coverage due to social inflation - Management noted a strong demand for underwriting companies with expertise in casualty lines, indicating a flight to quality among buyers [84]

Financial Performance - F&G reported strong 2Q25 performance with $4.1 billion in gross sales, a 41% increase compared to 1Q25[4] - Net sales reached $2.7 billion in 2Q25, up 23% from 1Q25[4] - Assets Under Management (AUM) increased to $55.6 billion, a 7% year-over-year increase[4] - AUM before flow reinsurance rose to $69.2 billion, a 13% year-over-year increase[4] - The adjusted Return on Equity (ROE) was 8.8% for 1H25, a 40 bps increase year-over-year[4] - F&G returned $65 million of capital to shareholders in 1H25[4, 92] Investment Portfolio - The investment portfolio is conservatively positioned and well-diversified, with fixed income being 97% investment grade[52, 58] - The portfolio includes $13 billion in structured credit, $9 billion in mortgage loans, and $9 billion in private origination[61, 62, 66] - Alternative LPs comprise 6% of the total portfolio, with a NAV of $2.9 billion[58, 144, 145] Strategic Goals - F&G aims to grow AUM by 50%, expand adjusted ROA to 1.33%-1.55%, and increase adjusted ROE to 13%-14%[19] - The company is focused on margin expansion through retained business, flow reinsurance, and owned distribution[17]

Core Insights - Paperclip Inc. emphasizes that its encryption-in-use technology could have mitigated the impact of the recent Allianz Life Insurance data breach, which affected over 1.4 million U.S. customers [1][4]. Group 1: Allianz Breach Context - Allianz Life Insurance experienced a significant data breach on July 16, 2025, due to a social engineering attack targeting a third-party cloud-based CRM system, leading to the exposure of personally identifiable information (PII) [2]. - The breach involved the extraction of sensitive data such as names, addresses, dates of birth, Social Security numbers, and policy identifiers, increasing the risk of identity theft and fraud for millions [2]. - Although Allianz has not confirmed the specific CRM platform involved, sources suggest that Salesforce was likely targeted based on threat actor activity and technical evidence [3]. Group 2: Paperclip SAFE Technology - Paperclip SAFE® employs encryption-in-use technology, which secures data even while it is being processed or searched, unlike traditional encryption methods [4][5]. - The technology combines shredded data with strong encryption architecture, ensuring that sensitive information remains unintelligible throughout its lifecycle [4]. - Paperclip SAFE's Machine Learning surveillance could have halted data export after the first thousand records, potentially reducing the breach's impact [4]. Group 3: Industry Implications - Encryption-in-use is becoming a new standard for data protection, as in-use data is a primary target for cyber threats globally [5]. - Paperclip SAFE is designed to comply with various regulatory frameworks, including GDPR and NYDFS 500, and is rapidly being adopted by major life insurance providers in the U.S. [6][12]. - The technology's zero-trust design protects data across vendor ecosystems, ensuring that third-party environments cannot expose sensitive information [9].

2Q25 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 | | Appe ...