METLIFE INC
For the period ended Mar 31, 2024. Filed May 2, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2024 · Filed May 2, 2024
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Item 2. Results of Operations
Results of Operations
MetLife is one of the world’s leading financial services companies, providing insurance, annuities, employee benefits and asset management. In the fourth quarter of 2023, MetLife reorganized from five segments into the following six segments to reflect changes in management’s responsibilities: Group Benefits; Retirement and Income Solutions (“RIS”); Asia; Latin America; Europe, the Middle East and Africa (“EMEA”); and MetLife Holdings. The Group Benefits and RIS businesses were previously reported as the U.S. segment. These changes were applied retrospectively and did not have an impact on prior period total consolidated net income (loss) or adjusted earnings. In addition, the Company continues to report certain of its results of operations in Corporate & Other. See Note 2 of the Notes to the Interim Condensed Consolidated Financial Statements for further information on the Company’s segments and Corporate & Other.
Key Financial Highlights
Net income available to MetLife, Inc.’s common shareholders of $800 million for the three months ended March 31, 2024, compared to $14 million for the three months ended March 31, 2023.
Adjusted earnings available to common shareholders of $1.3 billion for the three months ended March 31, 2024, compared to $1.2 billion for the three months ended March 31, 2023.
Consolidated Results
| Three MonthsEndedMarch 31, | ||
|---|---|---|
| 2024 | 2023 | |
| (In millions) | ||
| Revenues | ||
| Premiums | $10,053 | $9,589 |
| Universal life and investment-type product policy fees | 1,248 | 1,289 |
| Net investment income | 5,436 | 4,645 |
| Other revenues | 674 | 639 |
| Net investment gains (losses) | (375) | (684) |
| Net derivative gains (losses) | (979) | (90) |
| Total revenues | 16,057 | 15,388 |
| Expenses | ||
| Policyholder benefits and claims and policyholder dividends | 10,221 | 10,031 |
| Policyholder liability remeasurement (gains) losses | (22) | (9) |
| Market risk benefit remeasurement (gains) losses | (694) | 188 |
| Interest credited to policyholder account balances | 2,290 | 1,864 |
| Amortization of deferred policy acquisition costs and value of business acquired | 508 | 470 |
| Amortization of negative value of business acquired | (6) | (7) |
| Interest expense on debt | 264 | 255 |
| Other expenses, net of capitalization of deferred policy acquisition costs | 2,451 | 2,339 |
| Total expenses | 15,012 | 15,131 |
| Income (loss) before provision for income tax | 1,045 | 257 |
| Provision for income tax expense (benefit) | 170 | 172 |
| Net income (loss) | 875 | 85 |
| Less: Net income (loss) attributable to noncontrolling interests | 8 | 5 |
| Net income (loss) attributable to MetLife, Inc. | 867 | 80 |
| Less: Preferred stock dividends | 67 | 66 |
| Net income (loss) available to MetLife, Inc.’s common shareholders | $800 | $14 |
Net income (loss) available to MetLife, Inc.’s common shareholders - Increased $786 million primarily due to the following:
Net Investment Gains (Losses)(1) - Favorable change of $309 million ($244 million, net of income tax):
Lower losses on sales of fixed maturity securities
Lower impairment losses on mortgage loans
Losses on foreign currency transactions in the current period
Losses on other limited partnerships in the current period
Net Derivative Gains (Losses)(2) - Unfavorable change of $889 million ($702 million, net of income tax)(3):
Long-term interest rates increased in the current period versus decreased in the prior period- unfavorable impact to the estimated fair value of receiver swaps and swaptions
The U.S. dollar strengthened more significantly against the Japanese yen in the current period compared to the prior period - unfavorable impact to the estimated fair value of sell-U.S. dollar currency forwards
Market Risk Benefit Remeasurement (Gains) Losses(4) - Favorable change of $882 million ($697 million, net of income tax):
Long-term interest rates increased in the current period versus decreased in the prior period
Adjusted Earnings(5) - Favorable change of $150 million. See “— Consolidated Results — Adjusted Earnings.”
Taxes - Favorable change in effective tax rate - 16% in the current period versus 67% in the prior period
Current period effective tax rate on income before provision for income tax was 16% versus the U.S. statutory rate of 21% primarily due to tax benefits from:
The reversal of previously non-deductible losses
Non-taxable investment income
Low income housing and other tax credits, partially offset by the impact of tax equity investments now accounted for under the proportional amortization method
Corporate tax deduction for stock compensation
Prior period effective tax rate on income before provision for income tax was 67% versus the U.S. statutory rate of 21% primarily due to tax charges from:
Foreign earnings taxed at higher statutory rates than the U.S. statutory rate and foreign losses taxed at lower statutory rates
Partially offset by tax benefits from:
Low income housing and other tax credits
Corporate tax deduction for stock compensation
Non-taxable investment income
(1) See “— Investments — Overview” and “— Investments — Investment Portfolio Results — Net Investment Gains (Losses)” for information regarding management of our investment portfolio.
(2) See “— Derivatives — Net Derivative Gains (Losses)” for information regarding the use of derivatives to hedge market risk.
(3) Includes amounts relating to investment hedge adjustments, which are also included in adjusted earnings available to common shareholders. See “— Investments — Investment Portfolio Results” for additional information.
(4) See Note 6 of the Notes to the Interim Condensed Consolidated Financial Statements for further information on the Company’s MRBs.
(5) As used in “— Consolidated Results — Adjusted Earnings” and as more fully described in “— Non-GAAP and Other Financial Disclosures,” we refer to adjusted earnings, which does not equate to net income (loss), as determined in accordance with GAAP, to analyze our performance, evaluate segment performance, and allocate resources. We believe that the presentation of adjusted earnings and other financial measures based on adjusted earnings, as we measure it for management purposes, enhances the understanding of our performance by highlighting the results of operations and the underlying profitability drivers of the business. Adjusted earnings and other financial measures based on adjusted earnings allow analysis of our performance relative to our business plan and facilitate comparisons to industry results. Adjusted earnings should not be viewed as a substitute for net income (loss). Adjusted earnings available to common shareholders and adjusted earnings available to common shareholders on a constant currency basis should not be viewed as substitutes for net income (loss) available to MetLife, Inc.’s common shareholders.
Reconciliation of net income (loss) to adjusted earnings available to common shareholders and premiums, fees and other revenues to adjusted premiums, fees and other revenues
Three Months Ended March 31, 2024
| Group Benefits · RIS · Asia · Latin America · EMEA · MetLife Holdings · Corporate & Other · Total | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (In millions) | ||||||||||||||||
| Net income (loss) available to MetLife, Inc.'s common shareholders | $291 | $290 | $26 | $42 | $50 | $188 | $(87) | $800 | ||||||||
| Add: Preferred stock dividends | — | — | — | — | — | — | 67 | 67 | ||||||||
| Add: Net income (loss) attributable to noncontrolling interests | — | — | — | 2 | — | — | 6 | 8 | ||||||||
| Net income (loss) | 291 | 290 | 26 | 44 | 50 | 188 | (14) | 875 | ||||||||
| Less: adjustments from net income (loss) to adjusted earnings available to common shareholders: | ||||||||||||||||
| Revenues: | ||||||||||||||||
| Net investment gains (losses) | (24) | (121) | (131) | (3) | (37) | (286) | 227 | (375) | ||||||||
| Net derivative gains (losses) | 53 | 68 | (572) | (202) | (14) | (299) | (13) | (979) | ||||||||
| Premiums | — | — | — | — | — | — | — | — | ||||||||
| Universal life and investment-type product policy fees | — | — | — | — | — | — | — | — | ||||||||
| Net investment income | (20) | (78) | 232 | 16 | 263 | (50) | 5 | 368 | ||||||||
| Other revenues | — | (20) | — | — | — | 39 | 8 | 27 | ||||||||
| Expenses: | ||||||||||||||||
| Policyholder benefits and claims and policyholder dividends | — | — | 67 | (33) | — | 19 | — | 53 | ||||||||
| Policyholder liability remeasurement (gains) losses | — | — | — | — | — | — | — | — | ||||||||
| Market risk benefit remeasurement (gains) losses | — | 12 | 13 | — | 29 | 640 | — | 694 | ||||||||
| Interest credited to policyholder account balances | — | 1 | (236) | (40) | (262) | (26) | — | (563) | ||||||||
| Capitalization of deferred policy acquisition costs | — | — | — | — | — | — | — | — | ||||||||
| Amortization of deferred policy acquisition costs and value of business acquired | — | — | — | — | — | — | — | — | ||||||||
| Amortization of negative value of business acquired | — | — | — | — | — | — | — | — | ||||||||
| Interest expense on debt | — | — | — | — | — | — | — | — | ||||||||
| Other expenses | — | — | — | 2 | (1) | — | (12) | (11) | ||||||||
| Goodwill impairment | — | — | — | — | — | — | — | — | ||||||||
| Provision for income tax (expense) benefit | (2) | 29 | 230 | 71 | (5) | (8) | (55) | 260 | ||||||||
| Adjusted earnings | $284 | $399 | $423 | $233 | $77 | $159 | (174) | 1,401 | ||||||||
| Less: Preferred stock dividends | 67 | 67 | ||||||||||||||
| Adjusted earnings available to common shareholders | $(241) | $1,334 | ||||||||||||||
| Premiums, fees and other revenues | $6,330 | $793 | $1,744 | $1,496 | $620 | $880 | $112 | $11,975 | ||||||||
| Less: adjustments to premiums, fees and other revenues | — | (20) | — | — | — | 39 | 8 | 27 | ||||||||
| Adjusted premiums, fees and other revenues | $6,330 | $813 | $1,744 | $1,496 | $620 | $841 | $104 | $11,948 | ||||||||
Three Months Ended March 31, 2023
| Group Benefits · RIS · Asia · Latin America · EMEA · MetLife Holdings · Corporate & Other · Total | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (In millions) | ||||||||||||||||
| Net income (loss) available to MetLife, Inc.'s common shareholders | $267 | $130 | $(277) | $272 | $58 | $(439) | $3 | $14 | ||||||||
| Add: Preferred stock dividends | — | — | — | — | — | — | 66 | 66 | ||||||||
| Add: Net income (loss) attributable to noncontrolling interests | — | — | — | 1 | 1 | — | 3 | 5 | ||||||||
| Net income (loss) | 267 | 130 | (277) | 273 | 59 | (439) | 72 | 85 | ||||||||
| Less: adjustments from net income (loss) to adjusted earnings available to common shareholders: | ||||||||||||||||
| Revenues: | ||||||||||||||||
| Net investment gains (losses) | 6 | (184) | (617) | (2) | 9 | (145) | 249 | (684) | ||||||||
| Net derivative gains (losses) | (24) | 19 | 36 | 221 | (23) | (380) | 61 | (90) | ||||||||
| Premiums | — | — | — | — | — | — | — | — | ||||||||
| Universal life and investment-type product policy fees | — | — | — | — | — | — | — | — | ||||||||
| Net investment income | (33) | (120) | 112 | (28) | 176 | (71) | 3 | 39 | ||||||||
| Other revenues | — | (18) | — | — | 1 | — | 14 | (3) | ||||||||
| Expenses: | ||||||||||||||||
| Policyholder benefits and claims and policyholder dividends | — | (2) | 14 | (82) | — | — | — | (70) | ||||||||
| Policyholder liability remeasurement (gains) losses | — | — | — | — | — | — | — | — | ||||||||
| Market risk benefit remeasurement (gains) losses | — | (36) | (4) | — | 12 | (160) | — | (188) | ||||||||
| Interest credited to policyholder account balances | — | (1) | (124) | (28) | (169) | — | — | (322) | ||||||||
| Capitalization of deferred policy acquisition costs | — | — | — | — | — | — | — | — | ||||||||
| Amortization of deferred policy acquisition costs and value of business acquired | — | — | — | — | — | — | — | — | ||||||||
| Amortization of negative value of business acquired | — | — | — | — | — | — | — | — | ||||||||
| Interest expense on debt | — | — | — | — | — | — | — | — | ||||||||
| Other expenses | — | — | — | 2 | (1) | — | (28) | (27) | ||||||||
| Goodwill impairment | — | — | — | — | — | — | — | — | ||||||||
| Provision for income tax (expense) benefit | 11 | 72 | 26 | (25) | (6) | 159 | (57) | 180 | ||||||||
| Adjusted earnings | $307 | $400 | $280 | $215 | $60 | $158 | (170) | 1,250 | ||||||||
| Less: Preferred stock dividends | 66 | 66 | ||||||||||||||
| Adjusted earnings available to common shareholders | $(236) | $1,184 | ||||||||||||||
| Adjusted earnings available to common shareholders on a constant currency basis (1) | $307 | $400 | $269 | $221 | $57 | $158 | $(236) | $1,176 | ||||||||
| Premiums, fees and other revenues | $6,049 | $630 | $1,794 | $1,372 | $582 | $959 | $131 | $11,517 | ||||||||
| Less: adjustments to premiums, fees and other revenues | — | (18) | — | — | 1 | — | 14 | (3) | ||||||||
| Adjusted premiums, fees and other revenues | $6,049 | $648 | $1,794 | $1,372 | $581 | $959 | $117 | $11,520 | ||||||||
| Adjusted premiums, fees and other revenues on a constant currency basis (1) | $6,049 | $648 | $1,659 | $1,380 | $568 | $959 | $117 | $11,380 | ||||||||
(1)Amounts for Group Benefits, RIS, MetLife Holdings and Corporate & Other are shown on a reported basis, as constant currency impact is not significant.
Consolidated Results — Adjusted Earnings
Business Overview. Adjusted premiums, fees and other revenues for the three months ended March 31, 2024 increased $428 million, or 4%, compared to the prior period. Adjusted premiums, fees and other revenues, net of foreign currency fluctuations, increased $568 million, or 5%, compared to the prior period due to growth across most of our segments, partially offset by the expected decline in our MetLife Holdings segment from business run-off.
| Three MonthsEndedMarch 31, | ||
|---|---|---|
| 2024 | 2023 | |
| (In millions) | ||
| Group Benefits | $284 | $307 |
| RIS | 399 | 400 |
| Asia | 423 | 280 |
| Latin America | 233 | 215 |
| EMEA | 77 | 60 |
| MetLife Holdings | 159 | 158 |
| Corporate & Other | (241) | (236) |
| Adjusted earnings available to common shareholders | $1,334 | $1,184 |
| Adjusted earnings available to common shareholders on a constant currency basis | $1,334 | $1,176 |
| Adjusted premiums, fees and other revenues | $11,948 | $11,520 |
| Adjusted premiums, fees and other revenues on a constant currency basis | $11,948 | $11,380 |
Unless otherwise stated, all amounts discussed below are net of income tax and foreign currency fluctuations. Foreign currency fluctuations can result in significant variances in the financial statement line items.
Adjusted Earnings Available to Common Shareholders - Increased $150 million on a reported basis, primarily due to the following business drivers:
Reinsurance Transaction - Decreased adjusted earnings by approximately $50 million as a result of the reinsurance transaction that closed in November 2023
Foreign Currency - Decreased adjusted earnings by $8 million, primarily in our Asia segment
Market Factors - Increased adjusted earnings by $220 million:
Variable investment income increased- higher returns on private equity funds
Recurring investment income increased- higher yields on fixed income securities and mortgage loans, partially offset by lower derivative income, as well as lower average invested assets in our MetLife Holdings segment due to business run-off
Higher average interest crediting rates on investment-type and certain insurance products, primarily in our RIS and Asia segments
Volume Growth - Increased adjusted earnings by $21 million:
Higher average invested assets primarily in our Latin America and RIS segments
Higher sales and business growth in our foreign segments
Increase in interest credited expenses on long duration products primarily in our Latin America and RIS segments
Underwriting and Other Insurance Adjustments - Increased adjusted earnings by $25 million:
Favorable underwriting experience primarily in our Asia and EMEA segments
Lower dividend expense due to business run-off in our MetLife Holdings segment
Unfavorable mortality primarily in our RIS segment
Expenses - Decreased adjusted earnings by $37 million:
Higher direct expenses, including employee-related and technology costs, in most of our segments
Lower corporate-related expenses, primarily in Corporate & Other
Segment Results and Corporate & Other
Business Overview. Adjusted premiums, fees and other revenues for the three months ended March 31, 2024 increased $281 million, or 5%, compared to the prior period, primarily driven by growth in both core and voluntary products.
| Three MonthsEndedMarch 31, | ||
|---|---|---|
| 2024 | 2023 | |
| (In millions) | ||
| Total adjusted revenues | $6,645 | $6,359 |
| Total adjusted expenses | 6,286 | 5,968 |
| Provision for income tax expense (benefit) | 75 | 84 |
| Adjusted earnings | $284 | $307 |
| Adjusted premiums, fees and other revenues | $6,330 | $6,049 |
Adjusted Earnings - Decreased $23 million primarily due to the following business drivers:
Underwriting and Other Insurance Adjustments - Decreased adjusted earnings by $17 million:
Unfavorable change from refinements to certain insurance and other liabilities in both periods
Unfavorable morbidity - higher incidence in disability businesses and an unfavorable change in dental prior year development
Expenses - Decreased adjusted earnings by $9 million:
Higher technology, employee-related and various other operating expenses exceeded the corresponding increase in adjusted premiums, fees and other revenues
Retirement & Income Solutions
Business Overview. Adjusted premiums, fees and other revenues for the three months ended March 31, 2024 increased $165 million, or 25%, compared to the prior period. The increase was primarily due to growth in our structured settlements and the United Kingdom (“U.K.”) longevity reinsurance businesses. Changes in RIS premiums are generally offset by a corresponding change in policyholder benefits.
| Three MonthsEndedMarch 31, | ||
|---|---|---|
| 2024 | 2023 | |
| (In millions) | ||
| Total adjusted revenues | $2,902 | $2,462 |
| Total adjusted expenses | 2,398 | 1,957 |
| Provision for income tax expense (benefit) | 105 | 105 |
| Adjusted earnings | $399 | $400 |
| Adjusted premiums, fees and other revenues | $813 | $648 |
Adjusted Earnings - Decreased $1 million primarily due to the following business drivers:
Market Factors - Increased adjusted earnings by $28 million:
Recurring investment income increased - higher yields on fixed income securities and mortgage loans, partially offset by lower derivative income
Variable investment income increased - higher returns on private equity funds
Higher average interest crediting rates on investment-type products
Volume Growth - Increased adjusted earnings by $6 million:
Positive flows from pension risk transfer transactions and funding agreement issuances resulted in higher average invested assets
Increase in interest credited expenses on long duration products
Underwriting and Other Insurance Adjustments - Decreased adjusted earnings by $29 million:
Less favorable mortality - annuity businesses
Expenses - Decreased adjusted earnings by $8 million:
Higher expenses, including technology and certain employee-related costs
Asia
Business Overview. Adjusted premiums, fees and other revenues for the three months ended March 31, 2024 decreased $50 million, or 3%, compared to the prior period. Adjusted premiums, fees and other revenues, net of foreign currency fluctuations, increased $85 million, or 5%, compared to the prior period, as increases in premiums in Korea and Australia, as well as fee income from Japan’s foreign currency life and annuity products, were partially offset by a decrease in premiums from Japan’s yen-denominated life products.
| Three MonthsEndedMarch 31, | ||
|---|---|---|
| 2024 | 2023 | |
| (In millions) | ||
| Total adjusted revenues | $2,852 | $2,675 |
| Total adjusted expenses | 2,270 | 2,270 |
| Provision for income tax expense (benefit) | 159 | 125 |
| Adjusted earnings | $423 | $280 |
| Adjusted earnings on a constant currency basis | $423 | $269 |
| Adjusted premiums, fees and other revenues | $1,744 | $1,794 |
| Adjusted premiums, fees and other revenues on a constant currency basis | $1,744 | $1,659 |
Unless otherwise stated, all amounts discussed below are net of income tax and foreign currency fluctuations. Foreign currency fluctuations can result in significant variances in the financial statement line items.
Adjusted Earnings - Increased $143 million on a reported basis, primarily due to the following business drivers:
Foreign Currency - Decreased adjusted earnings by $11 million:
Japanese yen and Korean won weakened against the U.S. dollar
Market Factors - Increased adjusted earnings by $96 million:
Variable investment income increased - higher returns on private equity funds
Recurring investment income increased - higher yields on fixed income securities
Higher average interest crediting rates on investment-type and certain insurance products
Underwriting and Other Insurance Adjustments - Increased adjusted earnings by $32 million:
Higher surrender charges in Japan
Taxes - Increased adjusted earnings by $19 million:
Favorable change in Korea - tax benefits due to a tax audit settlement in the current period and lower dividend withholding tax as a result of a rate decrease
Favorable change in Japan - tax benefits from higher foreign earnings taxed at lower rates in the current period
Latin America
Business Overview. Adjusted premiums, fees and other revenues for the three months ended March 31, 2024 increased $124 million, or 9%, compared to the prior period. Adjusted premiums, fees and other revenues, net of foreign currency fluctuations, increased $116 million, or 8%, compared to the prior period, mainly driven by strong sales and solid persistency across the region.
| Three MonthsEndedMarch 31, | ||
|---|---|---|
| 2024 | 2023 | |
| (In millions) | ||
| Total adjusted revenues | $1,882 | $1,751 |
| Total adjusted expenses | 1,551 | 1,448 |
| Provision for income tax expense (benefit) | 98 | 88 |
| Adjusted earnings | $233 | $215 |
| Adjusted earnings on a constant currency basis | $233 | $221 |
| Adjusted premiums, fees and other revenues | $1,496 | $1,372 |
| Adjusted premiums, fees and other revenues on a constant currency basis | $1,496 | $1,380 |
Unless otherwise stated, all amounts discussed below are net of income tax and foreign currency fluctuations. Foreign currency fluctuations can result in significant variances in the financial statement line items.
Adjusted Earnings - Increased $18 million on a reported basis primarily due to the following business drivers:
Foreign Currency - Increased adjusted earnings by $6 million:
Mexican peso strengthened against the U.S. dollar
Chilean peso weakened against the U.S. dollar
Market Factors - Increased adjusted earnings by $5 million:
Recurring investment income increased - increase in bond index returns on our Chilean encaje within fair value option (“FVO”) securities and higher yields on fixed income securities, primarily in Mexico and Chile, partially offset by lower earnings from a joint venture investment in Chile
Unfavorable impact of lower inflation, primarily in Chile
Volume Growth - Increased adjusted earnings by $15 million:
Higher sales, primarily in Mexico and Chile
Higher average invested assets, primarily in Chile
Increase in interest credited expenses on long duration products
Underwriting and Other Insurance Adjustments - Increased adjusted earnings by $12 million:
Favorable refinements to certain insurance liabilities primarily in Chile and Mexico
Unfavorable underwriting - prior period reduction to the incurred but not reported reserve in Mexico
Expenses - Decreased adjusted earnings by $11 million:
Higher corporate-related and various other operating expenses, primarily in Mexico and Chile
Other - Decreased adjusted earnings by $7 million - includes amortization of deferred policy acquisition costs (“DAC”)
EMEA
Business Overview. Adjusted premiums, fees and other revenues for the three months ended March 31, 2024 increased $39 million, or 7%, compared to the prior period. Adjusted premiums, fees and other revenues, net of foreign currency fluctuations, increased $52 million, or 9%, compared to the prior period primarily due to increases in our (i) corporate solutions business in the Gulf, the U.K. and Egypt, (ii) credit life business in Turkey and Romania, and (iii) accident & health business across the region.
| Three MonthsEndedMarch 31, | ||
|---|---|---|
| 2024 | 2023 | |
| (In millions) | ||
| Total adjusted revenues | $674 | $626 |
| Total adjusted expenses | 571 | 550 |
| Provision for income tax expense (benefit) | 26 | 16 |
| Adjusted earnings | $77 | $60 |
| Adjusted earnings on a constant currency basis | $77 | $57 |
| Adjusted premiums, fees and other revenues | $620 | $581 |
| Adjusted premiums, fees and other revenues on a constant currency basis | $620 | $568 |
Unless otherwise stated, all amounts discussed below are net of income tax and foreign currency fluctuations. Foreign currency fluctuations can result in significant variances in the financial statement line items.
Adjusted Earnings - Increased $17 million on a reported basis, primarily due to the following business drivers:
Foreign Currency - Decreased adjusted earnings by $3 million:
Turkish lira weakened against the U.S. dollar
Market Factors - Increased adjusted earnings by $7 million:
Recurring investment income increased - higher yields on fixed income securities
Volume Growth - Increased adjusted earnings by $7 million:
Increase in sales and business growth:
Corporate solutions business in the Gulf, the U.K. and Egypt
Accident & health business across the region
Credit life business in Turkey
Underwriting and Other Insurance Adjustments - Increased adjusted earnings by $19 million:
Favorable underwriting experience across the region
Favorable change from refinements to certain insurance liabilities in the current period
Expenses - Decreased adjusted earnings by $8 million:
Higher direct expenses, including employee-related costs and various other operating expenses across the region
Other - Decreased adjusted earnings by $4 million - includes amortization of DAC
Business Overview. Our MetLife Holdings segment consists of operations relating to products and businesses, previously included in our former retail business, that we no longer actively market in the U.S. As anticipated, adjusted premiums, fees and other revenues continue to decline from expected business run-off.
| Three MonthsEndedMarch 31, | ||
|---|---|---|
| 2024 | 2023 | |
| (In millions) | ||
| Total adjusted revenues | $1,851 | $2,086 |
| Total adjusted expenses | 1,655 | 1,891 |
| Provision for income tax expense (benefit) | 37 | 37 |
| Adjusted earnings | $159 | $158 |
| Adjusted premiums, fees and other revenues | $841 | $959 |
Adjusted Earnings - Increased $1 million primarily due to the following business drivers:
Reinsurance Transaction - Decreased adjusted earnings by approximately $50 million as a result of the reinsurance transaction that closed in November 2023
Market Factors - Increased adjusted earnings by $44 million:
Variable investment income increased- higher returns on private equity funds
Recurring investment income decreased - lower average invested assets due to business run-off, largely offset by higher yields on fixed income securities
Volume Growth - Decreased adjusted earnings by $8 million, consistent with business run-off
Underwriting and Other Insurance Adjustments - Increased adjusted earnings by $8 million:
Lower dividend expense due to business run-off
Expenses & Other - Increased adjusted earnings by $6 million:
Lower expenses primarily driven by business run-off
Corporate & Other
| Three MonthsEndedMarch 31, | ||
|---|---|---|
| 2024 | 2023 | |
| (In millions) | ||
| Total adjusted revenues | $210 | $167 |
| Total adjusted expenses | 454 | 440 |
| Provision for income tax expense (benefit) | (70) | (103) |
| Adjusted earnings | (174) | (170) |
| Less: Preferred stock dividends | 67 | 66 |
| Adjusted earnings available to common shareholders | $(241) | $(236) |
| Adjusted premiums, fees and other revenues | $104 | $117 |
The table below presents adjusted earnings available to common shareholders by source:
| Three MonthsEndedMarch 31, | ||
|---|---|---|
| 2024 | 2023 | |
| (In millions) | ||
| Business activities | $6 | $19 |
| Net investment income | 102 | 51 |
| Interest expense on debt | (265) | (258) |
| Corporate initiatives and projects | (6) | (14) |
| Other | (81) | (71) |
| Provision for income tax (expense) benefit and other tax-related items | 70 | 103 |
| Preferred stock dividends | (67) | (66) |
| Adjusted earnings available to common shareholders | $(241) | $(236) |
Adjusted Earnings - Decreased $5 million primarily due to the following:
Business Activities – Decreased adjusted earnings by $10 million:
Higher expenses in certain of our businesses
Net Investment Income - Increased adjusted earnings by $40 million:
Recurring investment income increased - the impact of tax equity investments now accounted for under the proportional amortization method, increased yields on fixed maturity securities and higher average invested assets
Variable investment income increased – higher returns on private equity funds
Interest Expense on Debt – Decreased adjusted earnings by $6 million:
Senior note issuances in July 2023 and March 2024
Early senior note redemption in February 2023
Surplus note repayment at maturity in January and February 2024
Corporate Initiatives and Projects & Other – Decreased adjusted earnings by $2 million:
Higher employee-related expenses
Higher litigation reserves
Substantially offset by:
Lower corporate-related expenses, including from initiatives and projects
Taxes - Unfavorable change in Corporate & Other’s taxes:
Lower utilization of tax preferenced items, primarily due to low-income housing tax credits, partially offset by the impact of tax equity investments now accounted for under the proportional amortization method
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