MET-PA — MetLife, Inc.

Summary of MetLife Q1 2026 Earnings Call

1. Key Financial Results and Metrics

• Adjusted Earnings: $1.6 billion, or $2.42 per share, up 18% year-over-year; adjusted EPS increased 23%.
• Net Income: $1.1 billion, or $1.74 per share.
• Adjusted Return on Equity (ROE): 17%, at the top end of the 15%-17% target range.
• Direct Expense Ratio: 11.9%, better than the full-year target of 12.1%.
• Variable Investment Income: $518 million, driven by strong private equity returns (2.9%).
• Adjusted Premiums, Fees, and Other Revenues: Increased 10% year-over-year.

2. Strategic Updates and Business Highlights

• New Frontier Strategy: Year 2 focuses on accelerating execution across diversified businesses, with strong top-line growth across all segments.
• Group Benefits: Adjusted earnings of $439 million, up 19% year-over-year; strong sales growth (15%).
• Retirement & Income Solutions (RIS): Adjusted earnings of $451 million, up 11%, supported by strong variable investment income.
• Asia Performance: Adjusted earnings of $487 million, up 31%; sales increased 22% on a constant currency basis, particularly strong in Japan and Korea.
• Latin America: Adjusted earnings of $229 million, up 5%; strong sales growth of 20% despite tax changes in Mexico.
• EMEA: Adjusted earnings of $110 million, up 33%; strong sales growth across multiple markets.
• MetLife Investment Management (MIM): Adjusted earnings of $47 million, up 68% following the PineBridge acquisition.

3. Forward Guidance and Outlook

• MetLife expects continued strong performance driven by diversified business growth and disciplined capital management.
• RIS adjusted earnings for the full year are projected between $1.6 billion to $1.8 billion.
• The company anticipates some moderation in year-over-year growth rates in Asia due to strong prior-year comparatives but expects momentum to continue.

4. Bad News, Challenges, or Points of Concern

• Investment Losses: Net investment losses impacted net income, primarily due to trading activity in the fixed maturity portfolio.
• Market Volatility: Institutional client outflows of approximately $2 billion in MIM due to market conditions and integration challenges post-PineBridge acquisition.
• Regulatory Scrutiny in Japan: Ongoing discussions with regulators regarding industry-wide practices, although no direct impact on MetLife's business was reported.
• Disability Claims: Increased claims from new state-mandated paid family leave programs may require future pricing adjustments.

5. Notable Q&A Insights

• Group Life Mortality Trends: Favorable working-age mortality trends are being monitored, with potential long-term implications for pricing.
• Japan Sales Dynamics: Strong sales growth attributed to successful product launches and distribution strength; however, regulatory changes are being closely observed.
• Disability Pricing: Current severity trends do not warrant overall repricing, but the company remains vigilant and can reprice about 50% of the disability book annually.
• MIM Integration: Early integration with PineBridge is progressing well, with positive feedback on cross-selling opportunities and a strong pipeline of new commitments.

Overall, MetLife's Q1 2026 results reflect a strong start to the year, driven by strategic execution and diversified growth, despite facing some market and regulatory challenges.