MET-PA — MetLife, Inc.

Summary of MetLife Q4 2025 Earnings Call

1. Key Financial Results and Metrics

• Adjusted Earnings: Q4 adjusted earnings were $1.6 billion ($2.49 per share), with $2.58 per share excluding notable items, marking a 24% increase year-over-year.
• Full-Year Adjusted Earnings: $6 billion ($8.89 per share), up approximately 10%.
• Adjusted Return on Equity (ROE): 16%, within the target range of 15%-17%.
• Direct Expense Ratio: Improved to 11.7%, ahead of the five-year target of 11.3%.
• Free Cash Flow: Generated $4.9 billion in 2025, contributing to a five-year target of $25 billion.
• Net Income: Approximately $800 million for Q4 and $3.2 billion for the full year.

2. Strategic Updates and Business Highlights

• New Frontier Strategy: Focused on growth, capital deployment, and operational efficiency. Key initiatives included the acquisition of PineBridge Investments and the establishment of MetLife Investment Management (MIM).
• Group Benefits: Added approximately $100 million in new adjusted premiums, with a 10% year-over-year increase in voluntary PFOs.
• Retirement Solutions: Achieved record pension risk transfer sales of over $14 billion, the highest annual total for MetLife.
• International Markets: Asia saw an 18% increase in constant currency sales, while Latin America reported a 12% increase, driven by strong performance in Mexico.
• Capital Management: Returned $4.4 billion to shareholders through stock repurchases and dividends while funding $1.2 billion in acquisitions.

3. Forward Guidance and Outlook

• 2026 Expectations: Anticipate double-digit adjusted EPS growth and adjusted ROE of 15%-17%.
• Group Benefits: Projected adjusted earnings growth of 7%-9% in 2026.
• Retirement and Income Solutions: Expected adjusted earnings between $1.6 billion and $1.8 billion.
• Asia: Forecasted sales growth in the mid to high single digits and adjusted earnings growth in the mid-single digits.
• MIM: Expected adjusted earnings between $240 million and $280 million in 2026, with a revenue growth target of approximately 30%.

4. Bad News, Challenges, or Points of Concern

• Disability Experience: Weaker than expected results in disability insurance, with higher average severity and incidents noted in Q4.
• Variable Investment Income: Fell short of the 2025 target of $1.7 billion, with full-year results at $1.5 billion.
• Surrender Activity: Increased surrender trends noted in Japan due to macroeconomic volatility, particularly currency fluctuations, which may impact future sales.
• Expense Ratios: The acquisition of PineBridge is expected to increase the direct expense ratio by 50 basis points in 2026.

5. Notable Q&A Insights

• Group Benefits Pricing: Management noted robust results in renewals and persistency, especially in dental, with a focus on maintaining margins.
• Japan Market: The macroeconomic environment is causing short-term fluctuations in sales, but management remains optimistic about long-term prospects.
• AI Impact on Employment: While there are concerns about AI affecting employment levels, management is confident in their diversified book and growth outlook.
• Reinsurance Strategy: Management emphasized leveraging reinsurance to support growth in retirement solutions while maintaining capital flexibility.

Overall, MetLife demonstrated strong performance in Q4 2025, with solid growth across various segments and strategic initiatives in place to drive future growth, despite facing some challenges in specific areas like disability and macroeconomic volatility in international markets.