Metlife ((MET)) has held its Q3 earnings call. Read on for the main highlights of the call.
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MetLife’s recent earnings call conveyed a generally positive sentiment, highlighting significant growth in earnings and strong performances in key segments like PRT and Asia. Despite facing challenges such as the impact of the Mexican tax law change and reduced earnings from reinsurance transactions, the positive aspects of the results were predominant.
Strong Earnings Growth
MetLife reported impressive adjusted earnings of $1.6 billion or $2.37 per share, marking a 22% increase per share from the previous year. Even when excluding notable items, the adjusted earnings showed a robust 21% increase, reflecting the company’s strong financial performance.
Record PRT Transactions
The company achieved a record quarter with $12 billion in Pension Risk Transfer (PRT) transactions in the fourth quarter, underscoring its leadership and strategic focus in this area.
Asia Sales Surge
MetLife’s performance in Asia was particularly noteworthy, with adjusted earnings reaching $473 million, a 36% increase from the prior year. Sales in the region surged 34% on a constant currency basis, driven by a significant 31% increase in Japan.
Strong Group Benefits Performance
The Group Benefits segment reported adjusted earnings of $457 million, a 6% increase from the previous year, showcasing solid underwriting results and operational efficiency.
High Return on Equity
MetLife achieved an adjusted return on equity of 16.7%, which is near the top of its target range, demonstrating effective capital management and profitability.
Efficient Expense Management
The company’s direct expense ratio was 11.6% in the third quarter, below the full-year target of 12.1%, highlighting significant productivity and efficiency gains.
Increased Value of New Business
In 2024, MetLife invested $3.4 billion in new business origination, achieving an impressive average internal rate of return of 19% and a payback period of 5 years.
Mexico Tax Law Impact
A change in the Mexican tax law resulted in an after-tax charge of $71 million in Q3 of 2025, with further anticipated charges in Q4, affecting Latin America’s adjusted earnings for 2026.
Impact of Reinsurance Transactions
The transfer of approximately $10 billion of RIS liabilities to Chariot Re in Q3 of ’25 led to a reduction in adjusted earnings by $15 million to $20 million per quarter.
Higher Corporate and Other Losses
Corporate and Other reported an adjusted loss of $288 million for Q3 of ’25, compared to a loss of $249 million in the same period last year, driven by market-related employee costs and higher interest payments.
Forward-Looking Guidance
MetLife’s forward-looking guidance remains optimistic, with strong third-quarter results and strategic initiatives in place. The company reported adjusted earnings of $1.6 billion or $2.37 per share, a 22% increase per share from the previous year. Variable investment income exceeded expectations, driven by higher private equity returns. The company’s global retirement liability origination platform is expanding, particularly in the U.S., U.K., and Japan. MetLife’s economic solvency ratio in Japan is expected to range between 170% to 190% by March 2026.
In conclusion, MetLife’s earnings call reflected a positive outlook, with significant growth in earnings and strong performances in key segments. Despite some challenges, the company’s strategic initiatives and efficient management have positioned it well for future growth.