Summary of MetLife Q1 2026 Earnings Call

1Key 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.

2Strategic 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.

3Forward 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.

4Bad 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.

5Notable 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.