MetLife 2026 Conference Summary Company Overview - **Company**: MetLife (NYSE: MET) - **Date**: February 10, 2026 - **Speakers**: Michel Khalaf (President and CEO), John McCallion (Head of Investment Management) Key Points Strategic Initiatives - **New Frontier Strategy**: Launched over a year ago, focusing on strong growth, attractive returns, and lower risk. Aimed to deliver a superior value proposition by 2025 [5][6] - **Financial Performance**: In 2025, MetLife achieved $10 billion in free cash flow and reduced direct expenses by 40 basis points, reflecting an efficiency mindset [5][6] - **Growth in Key Segments**: Significant progress in group benefits, asset management, and international markets, with a focus on retirement origination and reinsurance capabilities [6][7] Financial Metrics - **Assets Under Management (AUM)**: Increased from approximately $600 billion to over $740 billion, indicating strong growth across various segments [7] - **Earnings Per Share (EPS)**: MetLife established a target for double-digit EPS growth, with a 60-40 split between earnings growth and capital management [9] - **Return on Equity (ROE)**: Current target set at 15%-17%, with expectations for continued growth driven by high-return businesses and the runoff of legacy businesses [10][11] Expense Management - **Expense Ratio Goals**: Committed to reducing the expense ratio by 100 basis points over five years, with a current ratio of 11.7% expected to reach 11.3% [13][14] - **Use of AI**: Leveraging AI to enhance process efficiency and reduce expenses, contributing to overall cost management [13][24] Market Dynamics - **Disability and Life Insurance Trends**: Adjusted loss ratios in life insurance and slight increases in average severity in disability insurance, with expectations for favorable trends to persist [19][20] - **Impact of AI on Employment**: AI is expected to enhance productivity rather than reduce workforce size, creating new opportunities for growth [22][23] International Growth - **Japan and Korea Markets**: Strong growth driven by diversified distribution and product capabilities, with a focus on market-linked instruments as cash savings transition [36][37] - **Sales Performance**: 2/3 of sales in 2025 came from US dollar products, capitalizing on favorable currency conditions [37] Investment Management - **PineBridge Acquisition**: Closed on December 30, 2025, expected to enhance growth in EBITDA and earnings through revenue synergies [31][32] - **Investment Strategy**: Focus on higher-yielding fixed income assets in response to the current economic environment, maintaining a 9% annualized return target for 2026 [43] Regional Performance - **LATAM Growth**: Confident in continued momentum in Latin America, targeting near-term earnings of $1 billion [42] Conclusion - MetLife is positioned for strong growth through strategic initiatives, effective expense management, and leveraging market opportunities across various segments and regions. The focus on diversification and innovation, particularly through AI and acquisitions, is expected to drive future performance.

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]

Summary of Great-West Lifeco FY Conference Call Company Overview - **Company**: Great-West Lifeco (OTCPK:GRWF.F) - **Date of Conference**: September 08, 2025 Key Industry Insights - **Industry Focus**: Retirement and wealth management sectors in the U.S. and Canada - **Market Position**: Second largest retirement provider in the U.S. after significant consolidation and strategic transactions [5][6] Core Strategic Points - **Portfolio Transformation**: The company has shifted its focus towards capital-light businesses, which now constitute about two-thirds of its operations, including retirement, wealth, and group benefits [7][8] - **Earnings Growth Target**: The earnings growth target has been raised from 8% to a range of 8% to 10%, with a return on equity (ROE) target increased from 16%-17% to 19% plus [7][76] - **Capital Generation**: The company aims to generate over 580% of capital as a percentage of earnings over the medium term, emphasizing strong capital generation capabilities [7][30] Operational Focus - **Wealth Business Expansion**: The primary focus over the next two to three years is to expand the wealth business in the U.S., with a target to increase rollover capture rates by 30% [10][11] - **Cost Efficiency**: The company has a cost advantage, able to reduce costs by 30%-40% when integrating new books onto its platform [14][15] - **Diversified Revenue Streams**: Approximately 50% of revenues are asset-based fees, with an additional 25%-30% from transactional fees, providing a diversified revenue profile [19][21] Competitive Landscape - **Market Share Gains**: The company has successfully captured $135 billion in plan flows from competitors over the last three to four years, indicating strong organic growth [26][27] - **Pricing Strategy**: While there is some price competition, the company believes it often wins on service and capability rather than price alone [29] International Operations - **Canada**: The company is a leading group benefits provider in Canada, focusing on small and medium sectors while also moving into larger markets [49][50] - **UK Market**: The company is targeting growth in bulk annuities and pension risk transfer, with a focus on small to mid-sized transactions [58][63] Future Outlook - **M&A Strategy**: The company remains open to opportunistic acquisitions, particularly in the retirement sector, while maintaining strict price discipline [31][34] - **Productivity Initiatives**: Investments are being made to improve efficiency, particularly in Canada, with a goal to reduce the efficiency ratio from 56%-57% to below 50% [69][70] - **Technological Advancements**: The company is modernizing its tech platform to enable AI integration, which is expected to drive further efficiencies [68][70] Conclusion - Great-West Lifeco is strategically positioned for growth in the retirement and wealth management sectors, with a focus on capital-light businesses, strong capital generation, and a commitment to enhancing customer experience and operational efficiency. The company is well-prepared for potential market consolidation and is actively pursuing opportunities to expand its market share.

Summary of Principal Financial Group (PFG) 2025 Conference Call Company Overview - **Company**: Principal Financial Group (PFG) - **Focus**: Benefits and protection businesses, particularly in the small to midsize business (SMB) sector Key Points Unique Business Model - PFG's Group Benefits business is notably focused on small to midsize businesses (SMBs), defined as companies with 2 to 500 employees, with a sweet spot under 100 employees [3][4] - The company has a comprehensive product portfolio that integrates technology solutions to assist brokers and employers [5] - PFG has a higher concentration of knowledge workers (55%) compared to the industry average (40-45%), which differentiates its business model [6][10] SMB Market Sentiment - Recent well-being index results indicate that SMBs are resilient, with 51% of surveyed businesses adding staff in the last three months [12][14] - Business owners are reluctant to reduce benefits, indicating a strong focus on employee retention and hiring [13] Disability Insurance Insights - The company has seen improvements in disability loss ratios post-pandemic, attributed to better incidents, recoveries, and severity management [17][19] - Incidents are expected to return to pre-COVID levels, while improvements in severity and recoveries are likely to be sustained due to the nature of the knowledge worker block [23][24] - PFG has been adjusting pricing based on favorable performance, with new sale rates becoming more competitive [32] Dental Insurance Challenges - The dental segment is experiencing inflationary pressures, with claims rising due to increased utilization and severity [41][42] - PFG has a strategy to bundle dental with other products, which helps maintain persistency and manage renewal rates [45] - The company anticipates a slowdown in new sales but remains confident in long-term growth [46] Life Insurance Strategy - PFG has shifted focus to the business market, moving away from the highly commoditized retail life insurance sector [57] - The business market is characterized by fewer competitors (4-5) compared to the retail market (38), allowing for a more consultative sales approach [61] - Premium growth in the business market is strong (10-12%), while legacy blocks are running off [59] Technology Investments - PFG is investing in technology to enhance claims processing and improve efficiency, particularly in the small market segment [69][70] - The company is utilizing AI and predictive analytics to better manage claims and improve outcomes [70][71] Long-term Growth Outlook - PFG projects long-term premium and fee growth in specialty benefits at 6-9%, although this year may be lower due to current market conditions [54] - The company is focused on maintaining strong relationships with brokers and advisers, which is crucial for expanding its business market presence [66] Additional Insights - The company is actively managing fraud detection across its products, utilizing advanced technology to identify atypical behaviors [39] - PFG's approach to disability and individual disability insurance is complementary, allowing for a more comprehensive coverage strategy [68] This summary encapsulates the key insights and strategic directions discussed during the Principal Financial Group conference call, highlighting the company's focus on SMBs, technology integration, and market resilience.

Financial Data and Key Metrics Changes - The company reported a return on equity (ROE) of 15.2% last year, with a new target of 15% to 17% under the New Frontier strategy, indicating a strong improvement from the previous target of 12% to 14% [5][10] - Group sales grew by 9% in the first half of the year, with liability balances increasing by 6%, surpassing the previously committed range of 3% to 5% [9][10] Business Line Data and Key Metrics Changes - The group benefits business raised its premium and fee growth target to 4% to 7% from 4% to 6%, reflecting confidence in driving top-line growth [16] - The retirement income solutions (RIS) business achieved a 6% growth in total liability balances in the second quarter, with expectations to remain within the 3% to 5% growth range for the year [29] Market Data and Key Metrics Changes - In Asia, sales increased by 10% in Japan and over 40% in Korea during the first half of the year, driven by demographic and economic shifts [38] - The company has seen strong growth momentum in Latin America, with earnings more than doubling since the pandemic, and a target of reaching $1 billion in earnings [46][50] Company Strategy and Development Direction - The New Frontier strategy focuses on extending leadership in group benefits, leveraging global retirement platforms, accelerating growth in MetLife Investment Management, and expanding presence in key international markets [6][7] - The company aims to reach $1 trillion in assets under management (AUM) for MetLife Investment Management [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the execution of the New Frontier strategy, highlighting strong early momentum and strategic initiatives such as acquisitions and reinsurance transactions [8][10] - The company anticipates continued strong performance in the second half of the year, particularly in group benefits and retirement income solutions [22][30] Other Important Information - The company launched Chariot Re, a Bermuda-based reinsurer, to augment capital generation and support growth opportunities in retirement solutions [35][37] - The implementation of the economic solvency ratio (ESR) in Japan is expected to have a seamless transition for the company, with no significant impact on dividend capacity [43][45] Q&A Session Summary Question: What are the plans to improve the direct expense ratio? - Management plans to reduce the direct expense ratio by 100 basis points over the next five years, with an evenly distributed reduction expected [11][12] Question: How is the group benefits business driving growth? - The company is focusing on adding more products for existing employers and increasing employee participation, leveraging its comprehensive product portfolio [18][21] Question: What is the outlook for the retirement income solutions business? - The RIS business is expected to maintain a healthy growth trajectory, benefiting from diversification and demographic trends [29][30] Question: How is the company managing capital allocation? - The company prioritizes organic growth, strategic M&A, and maintaining an attractive dividend yield, with a history of significant buybacks [57][60]