MetLife, Inc. (MET) KBW Annual Insurance Conference (Transcript)

MetLife, Inc. Conference Call Summary Company Overview - Company: MetLife, Inc. (NYSE: MET) - Participants: Michel Kalaf (President and CEO), John McCallion (CFO and Head of MetLife Investment Management) Key Industry Insights - Five-Year Strategy: MetLife is completing its "Next Horizon" strategy and will introduce a new strategy called "New Frontier" [2][6] - Market Environment: The life insurance industry has shifted from historically low interest rates and pandemic challenges to a more stable economy with rebounding interest rates and technological advancements [3][4] - Demographic Trends: Population shifts are contributing to renewed growth momentum in the industry [5] Financial Performance Highlights - Performance Metrics: MetLife is on track to exceed commitments made during the Next Horizon period, including: - $20 billion in distributable cash [5] - $1 billion in operating leverage for growth and technology [5] - ROE exceeding the target of 13% to 15%, currently at 15.5% [8][10] - Free cash flow targets consistently exceeded [5] New Frontier Strategy - Growth Focus: The New Frontier strategy aims to build on the successes of the Next Horizon period, focusing on growth and performance consistency [6][7] - Business Reshaping: MetLife has made strategic acquisitions and divestitures to lower risk and enhance growth potential [7] Group Benefits Segment - Competitive Environment: The group benefits market is competitive but rational, with a focus on building capabilities beyond pricing [17] - Growth Strategy: MetLife targets mid-single-digit premium and fee growth, achieving over $6 billion in PFOs during the Next Horizon period [19][20] - Customer Complexity: Employers face increasing complexity in benefits management, presenting opportunities for MetLife to offer comprehensive solutions [21][22] Retirement Income Solutions (RIS) - Spread Business: MetLife has seen healthy growth in its spread-based liabilities, with a target growth rate of 2% to 4% annually [33][34] - Market Opportunities: The company is focused on jumbo pension risk transfer (PRT) business and structured settlements, with a strong pipeline for growth [35][36] International Markets - Japan: MetLife has a strong presence in Japan, with premium income growth exceeding market growth. The company is adapting to currency fluctuations and increasing demand for yen-denominated products [38][39][40][41] - Latin America: MetLife is a market leader in LATAM, with significant growth driven by diversification and strong distribution capabilities [42][43][44][46] Commercial Real Estate Portfolio - Performance: The commercial mortgage loan portfolio is performing as expected, with a low loan-to-value ratio and manageable charge-off expectations [48][49][50] Capital Management Strategy - Balanced Approach: MetLife maintains a balanced approach to capital management, prioritizing organic growth, dividends, buybacks, and strategic M&A opportunities [57][59] Conclusion - MetLife is positioned for continued growth and performance improvement through its strategic initiatives, strong market presence, and focus on customer needs across various segments and regions. The company is optimistic about future opportunities while maintaining a disciplined approach to capital management.