MetLife, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net income increased 187% year-over-year to $2.4 billion ($3.67 per share), compared to $818 million ($1.22 per share) in the prior-year quarter.
• Adjusted earnings increased 12% to $1.8 billion, with adjusted earnings per share rising 17% to $2.78; excluding total notable items, adjusted earnings per share increased 22% to $2.85.
• Premiums, fees, and other revenues (PFOs) grew 12% to $14.1 billion; adjusted PFOs excluding pension risk transfers (PRT) increased 8% to $13.5 billion.
• Net investment income rose 2% to $6.2 billion, driven by higher variable investment income (VII) and asset growth; adjusted net investment income increased 10% to $6.0 billion.
• Return on equity (ROE) was 42.7%, while adjusted ROE was 19.2% (19.6% excluding total notable items).
• Book value per share (BVPS) decreased 22% to $30.73; adjusted BVPS increased 5% to $59.41.
• Holding company cash and liquid assets totaled $3.4 billion at quarter end.
• Direct expense ratio, excluding total notable items related to direct expenses and PRT, was 11.9%.

Guidance and Future Outlook:

• Management stated the company is on track to deliver against free cash flow ratio and direct expense ratio targets for the year.
• CEO Michel Khalaf expressed confidence in the "New Frontier" strategy's ability to drive repeatable results in year two.
• The company aims to turn strong free cash flow into reinvestment for responsible growth and capital returns to shareholders.

Business Segments and Product Lines:

• Group Benefits: Adjusted earnings rose 15% to $523 million; adjusted PFOs excluding participating contracts increased 5% to $5.1 billion, driven by growth in core and voluntary products.
• Retirement and Income Solutions (RIS): Adjusted earnings decreased 6% to $413 million; excluding notable items, earnings increased 12% to $478 million. Adjusted PFOs excluding PRT surged 33% to $1.6 billion, driven by higher sales of post-retirement benefits and U.K. longevity reinsurance.
• Asia: Adjusted earnings increased 11% to $602 million (14% on a constant currency basis); adjusted PFOs rose 1% to $1.7 billion. General account assets under management (at amortized cost) grew 4% to $145.0 billion.
• Latin America: Adjusted earnings jumped 45% to $215 million (30% on a constant currency basis); adjusted PFOs increased 22% to $2.0 billion.
• EMEA: Adjusted earnings rose 24% to $108 million (32% on a constant currency basis); adjusted PFOs increased 14% to $832 million.
• MetLife Investment Management (MIM): Adjusted earnings increased 9% to $63 million; other revenues rose 34% to $319 million. Total assets under management grew 14% to $723.4 billion, including the addition of PineBridge Investments.
• Corporate & Other: Reported an adjusted loss of $144 million.

Market and Competitive Landscape:

• Revenue growth was broad-based across all six business segments.
• The company benefited from a higher-rate environment and strong equity markets in certain regions.
• Sales in Group Benefits were up 12% year-to-date, with strong performance in National Accounts and Regional Business.
• Year-to-date sales in Asia were up 10% on a constant currency basis, led by Japan and Korea.

Risks and Challenges:

• The annual global actuarial assumption review and other insurance adjustments reduced net income by $56 million and adjusted earnings by $46 million.
• Latin America results were impacted by a value-added tax charge in Mexico in the prior-year period.
• Net investment losses were $340 million after tax, reflecting normal trading activity.
• Forward-looking statements note risks including economic condition difficulties, interest rate changes, credit spreads, declining equity or debt markets, and regulatory changes.

Management Commentary and Tone:

• CEO Michel Khalaf described the quarter as the highest quarterly adjusted earnings per share in MetLife's history, citing the strength of the New Frontier strategy and execution discipline.
• Management highlighted that revenue rose in every business segment, supported by solid underwriting, volume growth, and higher investment returns.
• The tone was confident, with management stating they are "firing on all cylinders" and turning results into strong free cash flow.

Other Key Points:

• The company returned approximately $1 billion to shareholders via share repurchases and common stock dividends.
• Footnotes indicate $650 million in share repurchases for the quarter and $2.4 billion year-to-date (including $265 million in October 2026).
• Common stock dividends of $380 million were paid for the quarter.
• Total U.S. statutory adjusted capital is expected to be approximately $17.0 billion at September 30, 2026, up 3% from June 30, 2026.
• The Japan Economic Solvency Ratio was 192% for the fiscal year ended March 31, 2026.
• Variable investment income increased 49% to $720 million.