METLIFE INC
For the period ended Jun 30, 2024. Filed Aug 1, 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.
Jun 30, 2024 · Filed Aug 1, 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 $912 million and $1.7 billion for the three months and six months ended June 30, 2024, respectively, compared to $370 million and $384 million for the three months and six months ended June 30, 2023, respectively.
Adjusted earnings available to common shareholders of $1.6 billion and $3.0 billion for the three months and six months ended June 30, 2024, respectively, compared to $1.5 billion and $2.7 billion for the three months and six months ended June 30, 2023, respectively.
Consolidated Results
| Three MonthsEndedJune 30, | Six MonthsEndedJune 30, | |||
|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |
| (In millions) | ||||
| Revenues | ||||
| Premiums | $11,628 | $11,678 | $21,681 | $21,267 |
| Universal life and investment-type product policy fees | 1,281 | 1,288 | 2,529 | 2,577 |
| Net investment income | 5,205 | 5,072 | 10,641 | 9,717 |
| Other revenues | 638 | 621 | 1,312 | 1,260 |
| Net investment gains (losses) | (421) | (1,039) | (796) | (1,723) |
| Net derivative gains (losses) | (508) | (997) | (1,487) | (1,087) |
| Total revenues | 17,823 | 16,623 | 33,880 | 32,011 |
| Expenses | ||||
| Policyholder benefits and claims and policyholder dividends | 11,633 | 11,960 | 21,854 | 21,991 |
| Policyholder liability remeasurement (gains) losses | (10) | (16) | (32) | (25) |
| Market risk benefit remeasurement (gains) losses | (182) | (817) | (876) | (629) |
| Interest credited to policyholder account balances | 2,000 | 1,933 | 4,290 | 3,797 |
| Amortization of deferred policy acquisition costs and value of business acquired | 499 | 479 | 1,007 | 949 |
| Amortization of negative value of business acquired | (6) | (6) | (12) | (13) |
| Interest expense on debt | 257 | 256 | 521 | 511 |
| Other expenses, net of capitalization of deferred policy acquisition costs | 2,430 | 2,404 | 4,881 | 4,743 |
| Total expenses | 16,621 | 16,193 | 31,633 | 31,324 |
| Income (loss) before provision for income tax | 1,202 | 430 | 2,247 | 687 |
| Provision for income tax expense (benefit) | 249 | 22 | 419 | 194 |
| Net income (loss) | 953 | 408 | 1,828 | 493 |
| Less: Net income (loss) attributable to noncontrolling interests | 7 | 6 | 15 | 11 |
| Net income (loss) attributable to MetLife, Inc. | 946 | 402 | 1,813 | 482 |
| Less: Preferred stock dividends | 34 | 32 | 101 | 98 |
| Net income (loss) available to MetLife, Inc.’s common shareholders | $912 | $370 | $1,712 | $384 |
Net income (loss) available to MetLife, Inc.’s common shareholders - Increased $542 million primarily due to the following:
Net Investment Gains (Losses)(1) - Favorable change of $618 million ($488 million, net of income tax):
Impairment losses in the prior period for investments disposed of in connection with a reinsurance transaction that closed in November 2023
Higher losses on sales of fixed maturity securities
Higher losses on foreign currency transactions
Net Derivative Gains (Losses)(2) - Favorable change of $489 million ($386 million, net of income tax)(3):
Key equity indexes increased less in the current period versus the prior period - favorable impact to the estimated fair value of long put options, short futures and total rate of return swaps
Long-term interest rates increased less in the current period compared to the prior period- favorable impact to the estimated fair value of receiver swaps and swaptions
The U.S. dollar strengthened less against the Japanese yen in the current period compared to the prior period - favorable impact to the estimated fair value of sell-U.S. dollar currency forwards and swaps
Market Risk Benefit Remeasurement (Gains) Losses(4) - Unfavorable change of $635 million ($502 million, net of income tax):
Key equity indexes increased less in the current period versus the prior period
Long-term interest rates increased less in the current period compared to the prior period
Adjusted Earnings(5) - Favorable change of $136 million. See “— Consolidated Results — Adjusted Earnings.”
Taxes - Unfavorable change in effective tax rate - 21% in the current period versus 5% in the prior period
Current period effective tax rate on income before provision for income tax was equal to the U.S. statutory rate of 21% and included tax benefits from:
Offset by tax charges from:
Prior period effective tax rate on income before provision for income tax was 5% versus the U.S. statutory rate of 21% primarily due to tax benefits from:
Foreign earnings taxed at lower statutory rates than the U.S. statutory rate and foreign losses taxed at higher statutory rates
Net income (loss) available to MetLife, Inc.’s common shareholders - Increased $1.3 billion primarily due to the following:
Net Investment Gains (Losses)(1) - Favorable change of $927 million ($732 million, net of income tax):
Impairment losses in the prior period for investments disposed of in connection with a reinsurance transaction that closed in November 2023
Lower losses on sales of fixed maturity securities
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 $400 million ($316 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
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
Key equity indexes increased less in the current period compared to the prior period - favorable impact to the estimated fair value of long put options and short futures
Market Risk Benefit Remeasurement (Gains) Losses(4) - Favorable change of $247 million ($195 million, net of income tax):
Long-term interest rates increased in the current period versus decreased in the prior period
Key equity indexes increased less in the current period compared to the prior period
Adjusted Earnings(5) - Favorable change of $286 million. See “— Consolidated Results — Adjusted Earnings.”
Taxes - Favorable change in effective tax rate - 19% in the current period versus 28% in the prior period
Current period effective tax rate on income before provision for income tax was 19% versus the U.S. statutory rate of 21% primarily due to tax benefits from:
Reversal of previously non-deductible losses
Prior period effective tax rate on income before provision for income tax was 28% versus the U.S. statutory rate of 21% primarily due to tax charges from:
(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 June 30, 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 | $534 | $195 | $(194) | $228 | $78 | $152 | $(81) | $912 | ||||||||
| Add: Preferred stock dividends | — | — | — | — | — | — | 34 | 34 | ||||||||
| Add: Net income (loss) attributable to noncontrolling interests | — | — | — | 1 | 2 | — | 4 | 7 | ||||||||
| Net income (loss) | 534 | 195 | (194) | 229 | 80 | 152 | (43) | 953 | ||||||||
| Less: adjustments from net income (loss) to adjusted earnings available to common shareholders: | ||||||||||||||||
| Revenues: | ||||||||||||||||
| Net investment gains (losses) | (17) | (131) | (405) | 19 | (2) | (52) | 167 | (421) | ||||||||
| Net derivative gains (losses) | 37 | 82 | (583) | 52 | (5) | (112) | 21 | (508) | ||||||||
| Premiums | — | — | — | — | — | — | — | — | ||||||||
| Universal life and investment-type product policy fees | — | — | — | — | — | — | — | — | ||||||||
| Net investment income | (19) | (62) | 64 | (45) | 155 | (53) | 5 | 45 | ||||||||
| Other revenues | — | (18) | — | — | — | 35 | 7 | 24 | ||||||||
| Expenses: | ||||||||||||||||
| Policyholder benefits and claims and policyholder dividends | — | (126) | 87 | (52) | — | 18 | — | (73) | ||||||||
| Policyholder liability remeasurement (gains) losses | — | — | — | — | — | — | — | — | ||||||||
| Market risk benefit remeasurement (gains) losses | — | (17) | 1 | — | 12 | 185 | 1 | 182 | ||||||||
| Interest credited to policyholder account balances ("PABs") | — | 1 | (65) | 23 | (153) | (23) | (2) | (219) | ||||||||
| Capitalization of deferred policy acquisition costs ("DAC") | — | — | — | — | — | — | — | — | ||||||||
| Amortization of DAC and value of business acquired ("VOBA") | — | — | — | — | — | — | — | — | ||||||||
| Amortization of negative VOBA | — | — | — | — | — | — | — | — | ||||||||
| Interest expense on debt | — | — | — | — | — | — | — | — | ||||||||
| Other expenses | — | — | — | 2 | (1) | — | (10) | (9) | ||||||||
| Goodwill impairment | — | — | — | — | — | — | — | — | ||||||||
| Provision for income tax (expense) benefit | — | 56 | 258 | 4 | (3) | 1 | (46) | 270 | ||||||||
| Adjusted earnings | $533 | $410 | $449 | $226 | $77 | $153 | (186) | 1,662 | ||||||||
| Less: Preferred stock dividends | 34 | 34 | ||||||||||||||
| Adjusted earnings available to common shareholders | $(220) | $1,628 | ||||||||||||||
| Premiums, fees and other revenues | $6,210 | $2,564 | $1,668 | $1,506 | $621 | $858 | $120 | $13,547 | ||||||||
| Less: adjustments to premiums, fees and other revenues | — | (18) | — | — | — | 35 | 7 | 24 | ||||||||
| Adjusted premiums, fees and other revenues | $6,210 | $2,582 | $1,668 | $1,506 | $621 | $823 | $113 | $13,523 | ||||||||
Three Months Ended June 30, 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 | $388 | $376 | $28 | $204 | $82 | $(415) | $(293) | $370 | ||||||||
| Add: Preferred stock dividends | — | — | — | — | — | — | 32 | 32 | ||||||||
| Add: Net income (loss) attributable to noncontrolling interests | — | — | — | 2 | 1 | — | 3 | 6 | ||||||||
| Net income (loss) | 388 | 376 | 28 | 206 | 83 | (415) | (258) | 408 | ||||||||
| Less: adjustments from net income (loss) to adjusted earnings available to common shareholders: | ||||||||||||||||
| Revenues: | ||||||||||||||||
| Net investment gains (losses) | (5) | (30) | (125) | (5) | 18 | (968) | 76 | (1,039) | ||||||||
| Net derivative gains (losses) | 66 | 83 | (582) | 85 | (21) | (484) | (144) | (997) | ||||||||
| Premiums | — | — | — | — | — | — | — | — | ||||||||
| Universal life and investment-type product policy fees | — | — | — | — | — | — | — | — | ||||||||
| Net investment income | (39) | (113) | 168 | (7) | 83 | (64) | 4 | 32 | ||||||||
| Other revenues | — | (18) | — | — | — | — | 11 | (7) | ||||||||
| Expenses: | ||||||||||||||||
| Policyholder benefits and claims and policyholder dividends | — | (11) | 43 | (62) | — | — | — | (30) | ||||||||
| Policyholder liability remeasurement (gains) losses | — | — | — | — | — | — | — | — | ||||||||
| Market risk benefit remeasurement (gains) losses | — | 35 | 37 | — | 21 | 724 | — | 817 | ||||||||
| Interest credited to PABs | — | 2 | (179) | (27) | (87) | — | — | (291) | ||||||||
| Capitalization of DAC | — | — | — | — | — | — | — | — | ||||||||
| Amortization of DAC and VOBA | — | — | — | — | — | — | — | — | ||||||||
| Amortization of negative VOBA | — | — | — | — | — | — | — | — | ||||||||
| Interest expense on debt | — | — | — | — | — | — | — | — | ||||||||
| Other expenses | — | — | — | 2 | (1) | — | (21) | (20) | ||||||||
| Goodwill impairment | — | — | — | — | — | — | — | — | ||||||||
| Provision for income tax (expense) benefit | (6) | 11 | 235 | 1 | — | 166 | 12 | 419 | ||||||||
| Adjusted earnings | $372 | $417 | $431 | $219 | $70 | $211 | $(196) | $1,524 | ||||||||
| Less: Preferred stock dividends | 32 | 32 | ||||||||||||||
| Adjusted earnings available to common shareholders | $(228) | $1,492 | ||||||||||||||
| Adjusted earnings available to common shareholders on a constant currency basis (1) | $372 | $417 | $417 | $209 | $64 | $211 | $(228) | $1,462 | ||||||||
| Premiums, fees and other revenues | $6,013 | $2,805 | $1,727 | $1,385 | $582 | $938 | $137 | $13,587 | ||||||||
| Less: adjustments to premiums, fees and other revenues | — | (18) | — | — | — | — | 11 | (7) | ||||||||
| Adjusted premiums, fees and other revenues | $6,013 | $2,823 | $1,727 | $1,385 | $582 | $938 | $126 | $13,594 | ||||||||
| Adjusted premiums, fees and other revenues on a constant currency basis (1) | $6,013 | $2,823 | $1,591 | $1,339 | $554 | $938 | $126 | $13,384 | ||||||||
(1)Amounts for Group Benefits, RIS, MetLife Holdings and Corporate & Other are shown on a reported basis, as constant currency impact is not significant.
Six Months Ended June 30, 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 | $825 | $485 | $(168) | $270 | $128 | $340 | $(168) | $1,712 | ||||||||
| Add: Preferred stock dividends | — | — | — | — | — | — | 101 | 101 | ||||||||
| Add: Net income (loss) attributable to noncontrolling interests | — | — | — | 3 | 2 | — | 10 | 15 | ||||||||
| Net income (loss) | 825 | 485 | (168) | 273 | 130 | 340 | (57) | 1,828 | ||||||||
| Less: adjustments from net income (loss) to adjusted earnings available to common shareholders: | ||||||||||||||||
| Revenues: | ||||||||||||||||
| Net investment gains (losses) | (41) | (252) | (536) | 16 | (39) | (338) | 394 | (796) | ||||||||
| Net derivative gains (losses) | 90 | 150 | (1,155) | (150) | (19) | (411) | 8 | (1,487) | ||||||||
| Premiums | — | — | — | — | — | — | — | — | ||||||||
| Universal life and investment-type product policy fees | — | — | — | — | — | — | — | — | ||||||||
| Net investment income | (39) | (140) | 296 | (29) | 418 | (103) | 10 | 413 | ||||||||
| Other revenues | — | (38) | — | — | — | 74 | 15 | 51 | ||||||||
| Expenses: | ||||||||||||||||
| Policyholder benefits and claims and policyholder dividends | — | (126) | 154 | (85) | — | 37 | — | (20) | ||||||||
| Policyholder liability remeasurement (gains) losses | — | — | — | — | — | — | — | — | ||||||||
| Market risk benefit remeasurement (gains) losses | — | (5) | 14 | — | 41 | 825 | 1 | 876 | ||||||||
| Interest credited to PABs | — | 2 | (301) | (17) | (415) | (49) | (2) | (782) | ||||||||
| Capitalization of DAC | — | — | — | — | — | — | — | — | ||||||||
| Amortization of DAC and VOBA | — | — | — | — | — | — | — | — | ||||||||
| Amortization of negative VOBA | — | — | — | — | — | — | — | — | ||||||||
| Interest expense on debt | — | — | — | — | — | — | — | — | ||||||||
| Other expenses | — | — | — | 4 | (2) | — | (22) | (20) | ||||||||
| Goodwill impairment | — | — | — | — | — | — | — | — | ||||||||
| Provision for income tax (expense) benefit | (2) | 85 | 488 | 75 | (8) | (7) | (101) | 530 | ||||||||
| Adjusted earnings | $817 | $809 | $872 | $459 | $154 | $312 | (360) | 3,063 | ||||||||
| Less: Preferred stock dividends | 101 | 101 | ||||||||||||||
| Adjusted earnings available to common shareholders | $(461) | $2,962 | ||||||||||||||
| Premiums, fees and other revenues | $12,540 | $3,357 | $3,412 | $3,002 | $1,241 | $1,738 | $232 | $25,522 | ||||||||
| Less: adjustments to premiums, fees and other revenues | — | (38) | — | — | — | 74 | 15 | 51 | ||||||||
| Adjusted premiums, fees and other revenues | $12,540 | $3,395 | $3,412 | $3,002 | $1,241 | $1,664 | $217 | $25,471 | ||||||||
Six Months Ended June 30, 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 | $656 | $505 | $(249) | $476 | $140 | $(854) | $(290) | $384 | ||||||||
| Add: Preferred stock dividends | — | — | — | — | — | — | 98 | 98 | ||||||||
| Add: Net income (loss) attributable to noncontrolling interests | — | — | — | 3 | 2 | — | 6 | 11 | ||||||||
| Net income (loss) | 656 | 505 | (249) | 479 | 142 | (854) | (186) | 493 | ||||||||
| Less: adjustments from net income (loss) to adjusted earnings available to common shareholders: | ||||||||||||||||
| Revenues: | ||||||||||||||||
| Net investment gains (losses) | 1 | (214) | (742) | (7) | 27 | (1,113) | 325 | (1,723) | ||||||||
| Net derivative gains (losses) | 42 | 102 | (546) | 306 | (44) | (864) | (83) | (1,087) | ||||||||
| Premiums | — | — | — | — | — | — | — | — | ||||||||
| Universal life and investment-type product policy fees | — | — | — | — | — | — | — | — | ||||||||
| Net investment income | (71) | (234) | 280 | (35) | 259 | (135) | 7 | 71 | ||||||||
| Other revenues | — | (36) | — | — | 1 | — | 25 | (10) | ||||||||
| Expenses: | ||||||||||||||||
| Policyholder benefits and claims and policyholder dividends | — | (13) | 57 | (144) | — | — | — | (100) | ||||||||
| Policyholder liability remeasurement (gains) losses | — | — | — | — | — | — | — | — | ||||||||
| Market risk benefit remeasurement (gains) losses | — | (1) | 33 | — | 33 | 564 | — | 629 | ||||||||
| Interest credited to PABs | — | 1 | (303) | (55) | (256) | — | — | (613) | ||||||||
| Capitalization of DAC | — | — | — | — | — | — | — | — | ||||||||
| Amortization of DAC and VOBA | — | — | — | — | — | — | — | — | ||||||||
| Amortization of negative VOBA | — | — | — | — | — | — | — | — | ||||||||
| Interest expense on debt | — | — | — | — | — | — | — | — | ||||||||
| Other expenses | — | — | — | 4 | (2) | — | (49) | (47) | ||||||||
| Goodwill impairment | — | — | — | — | — | — | — | — | ||||||||
| Provision for income tax (expense) benefit | 5 | 83 | 261 | (24) | (6) | 325 | (45) | 599 | ||||||||
| Adjusted earnings | $679 | $817 | $711 | $434 | $130 | $369 | (366) | 2,774 | ||||||||
| Less: Preferred stock dividends | 98 | 98 | ||||||||||||||
| Adjusted earnings available to common shareholders | $(464) | $2,676 | ||||||||||||||
| Adjusted earnings available to common shareholders on a constant currency basis (1) | $679 | $817 | $686 | $430 | $121 | $369 | $(464) | $2,638 | ||||||||
| Premiums, fees and other revenues | $12,062 | $3,435 | $3,521 | $2,757 | $1,164 | $1,897 | $268 | $25,104 | ||||||||
| Less: adjustments to premiums, fees and other revenues | — | (36) | — | — | 1 | — | 25 | (10) | ||||||||
| Adjusted premiums, fees and other revenues | $12,062 | $3,471 | $3,521 | $2,757 | $1,163 | $1,897 | $243 | $25,114 | ||||||||
| Adjusted premiums, fees and other revenues on a constant currency basis (1) | $12,062 | $3,471 | $3,250 | $2,719 | $1,122 | $1,897 | $243 | $24,764 | ||||||||
(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 June 30, 2024 decreased $71 million, or 1%, compared to the prior period. Adjusted premiums, fees and other revenues, net of foreign currency fluctuations, increased $139 million, or 1%, compared to the prior period due to growth across most of our segments, largely offset by lower premiums in the pension risk transfer business in our RIS segment and the expected decline in our MetLife Holdings segment from business run-off.
| Three MonthsEndedJune 30, | Six MonthsEndedJune 30, | |||
|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |
| (In millions) | ||||
| Group Benefits | $533 | $372 | $817 | $679 |
| RIS | 410 | 417 | 809 | 817 |
| Asia | 449 | 431 | 872 | 711 |
| Latin America | 226 | 219 | 459 | 434 |
| EMEA | 77 | 70 | 154 | 130 |
| MetLife Holdings | 153 | 211 | 312 | 369 |
| Corporate & Other | (220) | (228) | (461) | (464) |
| Adjusted earnings available to common shareholders | $1,628 | $1,492 | $2,962 | $2,676 |
| Adjusted earnings available to common shareholders on a constant currency basis | $1,628 | $1,462 | $2,962 | $2,638 |
| Adjusted premiums, fees and other revenues | $13,523 | $13,594 | $25,471 | $25,114 |
| Adjusted premiums, fees and other revenues on a constant currency basis | $13,523 | $13,384 | $25,471 | $24,764 |
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 $136 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 in our MetLife Holdings segment
Foreign Currency - Decreased adjusted earnings by $30 million, primarily in our Asia and Latin America segments
Market Factors - Decreased adjusted earnings by $24 million:
Higher average interest crediting rates on investment-type and certain insurance products, primarily in our RIS and Asia segments
Recurring investment income increased- higher yields on fixed income securities and mortgage loans, partially offset by lower income on derivatives
Volume Growth - Increased adjusted earnings by $89 million:
Higher average invested assets primarily in our RIS, Asia and Latin America segments
Higher sales and business growth in our foreign segments
Increase in interest credited expenses on long duration products primarily in our RIS and Asia segments
Underwriting and Other Insurance Adjustments - Increased adjusted earnings by $183 million:
Favorable mortality and morbidity results primarily in our Group Benefits segment
Favorable change from refinements to certain insurance assets and other liabilities in both periods
Taxes - Unfavorable change in effective tax rate - 24% in the current period versus 22% in the prior period
Current period effective tax rate on income before provision for income tax was 24% versus the U.S. statutory rate of 21% primarily due to tax charges from:
Prior period effective tax rate on income before provision for income tax was 22% versus the U.S. statutory rate of 21% primarily due to tax charges from:
Non-taxable investment income
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 $286 million on a reported basis, primarily due to the following business drivers:
Reinsurance Transaction - Decreased adjusted earnings by approximately $100 million as a result of the reinsurance transaction that closed in November 2023 in our MetLife Holdings segment
Foreign Currency - Decreased adjusted earnings by $38 million, primarily in our Asia segment
Market Factors - Increased adjusted earnings by $196 million:
Recurring investment income increased- higher yields on fixed income securities and mortgage loans, partially offset by lower income on derivatives
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 $110 million:
Higher average invested assets primarily in our RIS and Latin America segments
Higher sales and business growth in our foreign segments
Increase in interest credited expenses on long duration products primarily in our RIS and Latin America segments
Underwriting and Other Insurance Adjustments - Increased adjusted earnings by $208 million:
Favorable mortality and morbidity results primarily in our Group Benefits segment
Favorable change from refinements to certain insurance assets and other liabilities in both periods
Expenses - Decreased adjusted earnings by $48 million:
Higher direct expenses, including employee-related and technology costs, in most of our segments
Lower corporate-related expenses, primarily in Corporate & Other
Taxes - Unfavorable change in effective tax rate - 24% in the current period versus 22% in the prior period
Current period effective tax rate on income before provision for income tax was 24% versus the U.S. statutory rate of 21% primarily due to tax charges from:
Prior period effective tax rate on income before provision for income tax was 22% versus the U.S. statutory rate of 21% primarily due to tax charges from:
Non-taxable investment income
Corporate tax deduction for stock compensation
Adjustments related to prior years taxes
Segment Results and Corporate & Other
Business Overview. Adjusted premiums, fees and other revenues for the three months ended June 30, 2024 increased $197 million, or 3%, compared to the prior period, primarily driven by growth in both core and voluntary products, partially offset by a decrease in premiums related to our participating life contracts, which can fluctuate with claims experience.
| Three MonthsEndedJune 30, | Six MonthsEndedJune 30, | |||
|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |
| (In millions) | ||||
| Total adjusted revenues | $6,523 | $6,340 | $13,168 | $12,699 |
| Total adjusted expenses | 5,849 | 5,869 | 12,135 | 11,837 |
| Provision for income tax expense (benefit) | 141 | 99 | 216 | 183 |
| Adjusted earnings | $533 | $372 | $817 | $679 |
| Adjusted premiums, fees and other revenues | $6,210 | $6,013 | $12,540 | $12,062 |
Adjusted Earnings - Increased $161 million primarily due to the following business drivers:
Underwriting and Other Insurance Adjustments - Increased adjusted earnings by $174 million:
Favorable mortality - lower claims incidence in our life business
Favorable morbidity - favorable experience due to lower severity and a favorable reserve adjustment in the current period in our disability businesses, partially offset by a less favorable change in dental reserves
Favorable change from refinements to certain insurance and other liabilities in both periods
Adjusted Earnings - Increased $138 million primarily due to the following business drivers:
Underwriting and Other Insurance Adjustments - Increased adjusted earnings by $157 million:
Favorable mortality - lower claims incidence in our life business
Favorable morbidity - favorable experience due to lower severity and a favorable reserve adjustment in the current period in our disability businesses, partially offset by a less favorable change in dental reserves, including the impact of prior year development
Favorable change from refinements to certain insurance and other liabilities in both periods
Expenses - Decreased adjusted earnings by $15 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 June 30, 2024 decreased $241 million, or 9%, compared to the prior period. The decrease was primarily driven by lower premiums from our pension risk transfer business, partially offset by growth in our institutional income annuities and United Kingdom (“U.K.”) longevity reinsurance businesses. Changes in premiums are mostly offset by a corresponding change in policyholder benefits, both of which are reported net of ceded reinsurance.
| Three MonthsEndedJune 30, | Six MonthsEndedJune 30, | |||
|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |
| (In millions) | ||||
| Total adjusted revenues | $4,699 | $4,771 | $7,601 | $7,233 |
| Total adjusted expenses | 4,181 | 4,244 | 6,579 | 6,201 |
| Provision for income tax expense (benefit) | 108 | 110 | 213 | 215 |
| Adjusted earnings | $410 | $417 | $809 | $817 |
| Adjusted premiums, fees and other revenues | $2,582 | $2,823 | $3,395 | $3,471 |
Adjusted Earnings - Decreased $7 million primarily due to the following business drivers:
Market Factors- Decreased adjusted earnings by $25 million driven primarily by:
Higher average interest crediting rates on investment-type products
Recurring investment income increased - higher yields on fixed income securities and mortgage loans, partially offset by lower income on derivatives
Volume Growth - Increased adjusted earnings by $21 million:
Positive flows from pension risk transfer transactions and funding agreement issuances resulted in higher average invested assets
Underwriting and Other Insurance Adjustments - Increased adjusted earnings by $4 million
Favorable refinements to certain insurance liabilities in the current period
Expenses - Decreased adjusted earnings by $10 million:
Higher expenses, including certain employee-related costs and other taxes, licenses and fees
Adjusted Earnings - Decreased $8 million primarily due to the following business drivers:
Market Factors - Increased adjusted earnings by $3 million:
Recurring investment income increased - higher yields on fixed income securities and mortgage loans, partially offset by lower income on derivatives
Substantially offset by:
Higher average interest crediting rates on investment-type products
Volume Growth - Increased adjusted earnings by $27 million:
Positive flows from pension risk transfer transactions and funding agreement issuances resulted in higher average invested assets
Underwriting and Other Insurance Adjustments - Decreased adjusted earnings by $25 million:
Less favorable mortality - mainly in structured settlements and specialized benefit resources products
Expenses - Decreased adjusted earnings by $18 million:
Higher expenses, including certain employee-related costs and other taxes, licenses and fees
Asia
Business Overview. Adjusted premiums, fees and other revenues for the three months ended June 30, 2024 decreased $59 million, or 3%, compared to the prior period. Adjusted premiums, fees and other revenues, net of foreign currency fluctuations, increased $77 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 accident & health products.
| Three MonthsEndedJune 30, | Six MonthsEndedJune 30, | |||
|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |
| (In millions) | ||||
| Total adjusted revenues | $2,835 | $2,777 | $5,687 | $5,452 |
| Total adjusted expenses | 2,210 | 2,166 | 4,480 | 4,436 |
| Provision for income tax expense (benefit) | 176 | 180 | 335 | 305 |
| Adjusted earnings | $449 | $431 | $872 | $711 |
| Adjusted earnings on a constant currency basis | $449 | $417 | $872 | $686 |
| Adjusted premiums, fees and other revenues | $1,668 | $1,727 | $3,412 | $3,521 |
| Adjusted premiums, fees and other revenues on a constant currency basis | $1,668 | $1,591 | $3,412 | $3,250 |
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 - Decreased adjusted earnings by $14 million:
Japanese yen weakened against the U.S. dollar
Market Factors - Increased adjusted earnings by $4 million:
Recurring investment income increased - higher yields on fixed income securities
Variable investment income increased - higher returns on private equity and real estate funds
Higher average interest crediting rates on investment-type and certain insurance products
Volume Growth - Increased adjusted earnings by $6 million:
Positive net flows driven by business growth across the region
Underwriting and Other Insurance Adjustments - Increased adjusted earnings by $21 million:
Higher surrender charges in Japan
Lower claims experience in Korea
Unfavorable change from refinements to certain insurance assets and liabilities in both periods
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 $161 million on a reported basis, primarily due to the following business drivers:
Foreign Currency -Decreased adjusted earnings by $25 million:
Japanese yen and Korean won weakened against the U.S. dollar
Market Factors - Increased adjusted earnings by $100 million:
Recurring investment income increased - higher yields on fixed income securities
Variable investment income increased - higher returns on private equity and real estate funds
Higher average interest crediting rates on investment-type and certain insurance products
Underwriting and Other Insurance Adjustments - Increased adjusted earnings by $53 million:
Higher surrender charges in Japan
Lower claims experience in Korea
Unfavorable change from refinements to certain insurance assets and liabilities in both periods
Taxes - Increased adjusted earnings by $26 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 June 30, 2024 increased $121 million, or 9%, compared to the prior period. Adjusted premiums, fees and other revenues, net of foreign currency fluctuations, increased $167 million, or 12%, compared to the prior period, mainly driven by strong sales and solid persistency across the region.
| Three MonthsEndedJune 30, | Six MonthsEndedJune 30, | |||
|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |
| (In millions) | ||||
| Total adjusted revenues | $1,904 | $1,803 | $3,786 | $3,554 |
| Total adjusted expenses | 1,593 | 1,522 | 3,144 | 2,970 |
| Provision for income tax expense (benefit) | 85 | 62 | 183 | 150 |
| Adjusted earnings | $226 | $219 | $459 | $434 |
| Adjusted earnings on a constant currency basis | $226 | $209 | $459 | $430 |
| Adjusted premiums, fees and other revenues | $1,506 | $1,385 | $3,002 | $2,757 |
| Adjusted premiums, fees and other revenues on a constant currency basis | $1,506 | $1,339 | $3,002 | $2,719 |
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 $7 million on a reported basis primarily due to the following business drivers:
Foreign Currency - Decreased adjusted earnings by $10 million:
Chilean peso weakened against the U.S. dollar
Mexican peso strengthened against the U.S. dollar
Market Factors - Decreased adjusted earnings by $8 million:
Recurring investment income decreased - lower returns on our Chilean encaje within fair value option (“FVO”) securities driven by a decrease in bond index returns
Favorable impact of higher inflation
Volume Growth - Increased adjusted earnings by $22 million:
Strong sales of single premium immediate annuities in Chile resulted in higher average invested assets
Higher sales, primarily in Mexico
Underwriting and Other Insurance Adjustments - Increased adjusted earnings by $10 million:
Favorable underwriting - lower claims in Mexico, partially offset by higher claims in Chile
Taxes - Decreased adjusted earnings by $9 million:
Tax adjustments in both periods - recurring tax item related to inflation in Chile and Mexico and adjustments related to the filing of the tax return in Mexico
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 $25 million on a reported basis primarily due to the following business drivers:
Foreign Currency - Decreased adjusted earnings by $4 million:
Chilean peso weakened against the U.S. dollar
Mexican peso strengthened against the U.S. dollar
Market Factors - Decreased adjusted earnings by $3 million:
Unfavorable impact of lower inflation, primarily in Chile
Volume Growth - Increased adjusted earnings by $37 million:
Strong sales of single premium immediate annuities in Chile resulted in higher average invested assets
Higher sales, primarily in Mexico and Chile
Underwriting and Other Insurance Adjustments - Increased adjusted earnings by $22 million:
Favorable refinements to certain insurance liabilities primarily in Chile and Mexico
Favorable underwriting - lower claims in Mexico, largely offset by higher claims in Chile and the 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
Taxes - Decreased adjusted earnings by $11 million:
Tax adjustments in both periods - recurring tax item related to inflation in Chile and Mexico and adjustments related to the filing of the tax return in Mexico
Other - Decreased adjusted earnings by $5 million - includes amortization of DAC
EMEA
Business Overview. Adjusted premiums, fees and other revenues for the three months ended June 30, 2024 increased $39 million, or 7%, compared to the prior period. Adjusted premiums, fees and other revenues, net of foreign currency fluctuations, increased $67 million, or 12%, 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 MonthsEndedJune 30, | Six MonthsEndedJune 30, | |||
|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |
| (In millions) | ||||
| Total adjusted revenues | $675 | $629 | $1,349 | $1,255 |
| Total adjusted expenses | 577 | 537 | 1,148 | 1,087 |
| Provision for income tax expense (benefit) | 21 | 22 | 47 | 38 |
| Adjusted earnings | $77 | $70 | $154 | $130 |
| Adjusted earnings on a constant currency basis | $77 | $64 | $154 | $121 |
| Adjusted premiums, fees and other revenues | $621 | $582 | $1,241 | $1,163 |
| Adjusted premiums, fees and other revenues on a constant currency basis | $621 | $554 | $1,241 | $1,122 |
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 $7 million on a reported basis, primarily due to the following business drivers:
Foreign Currency - Decreased adjusted earnings by $6 million:
Turkish lira and Egyptian pound weakened against the U.S. dollar
Market Factors - Increased adjusted earnings by $8 million:
Recurring investment income increased - higher yields on fixed income securities
Volume Growth - Increased adjusted earnings by $14 million:
Increase in sales and business growth:
Corporate solutions business in the U.K., Gulf and Egypt
Credit life and pension businesses in Turkey and Romania
Accident & health business in the U.K.
Underwriting and Other Insurance Adjustments- Decreased adjusted earnings by $6 million:
Unfavorable change from refinements to certain insurance liabilities in both periods
Favorable underwriting experience across the region
Expenses- Decreased adjusted earnings by $7 million:
Higher direct expenses, including employee-related costs and various other operating expenses across the region
Other - Increased adjusted earnings slightly - includes amortization of DAC
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 $24 million on a reported basis, primarily due to the following business drivers:
Foreign Currency - Decreased adjusted earnings by $9 million:
Turkish lira and Egyptian pound weakened against the U.S. dollar
Market Factors- Increased adjusted earnings by $15 million:
Recurring investment income increased - higher yields on fixed income securities
Volume Growth - Increased adjusted earnings by $21 million:
Increase in sales and business growth:
Corporate solutions business in the U.K., Gulf and Egypt
Credit life and pension businesses in Turkey and Romania
Accident & health business across the region
Underwriting and Other Insurance Adjustments - Increased adjusted earnings by $13 million:
Favorable underwriting experience across the region
Unfavorable change from refinements to certain insurance liabilities in both periods
Expenses- Decreased adjusted earnings by $15 million:
Higher direct expenses, including employee-related costs and various other operating expenses across the region
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 MonthsEndedJune 30, | Six MonthsEndedJune 30, | |||
|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |
| (In millions) | ||||
| Total adjusted revenues | $1,839 | $2,108 | $3,690 | $4,194 |
| Total adjusted expenses | 1,651 | 1,846 | 3,306 | 3,737 |
| Provision for income tax expense (benefit) | 35 | 51 | 72 | 88 |
| Adjusted earnings | $153 | $211 | $312 | $369 |
| Adjusted premiums, fees and other revenues | $823 | $938 | $1,664 | $1,897 |
Adjusted Earnings - Decreased $58 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 $15 million:
Variable investment income increased- higher returns on private equity funds, partially offset by lower returns on mortgage loan funds
Volume Growth - Decreased adjusted earnings by $7 million, consistent with business run-off
Underwriting and Other Insurance Adjustments - Decreased adjusted earnings by $19 million:
Unfavorable mortality - higher claim severity in our life business, partially offset by favorable experience in our annuity business
Adjusted Earnings - Decreased $57 million primarily due to the following business drivers:
Reinsurance Transaction - Decreased adjusted earnings by approximately $100 million as a result of the reinsurance transaction that closed in November 2023
Market Factors - Increased adjusted earnings by $59 million:
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 $15 million, consistent with business run-off
Underwriting and Other Insurance Adjustments - Decreased adjusted earnings by $11 million:
Unfavorable mortality - higher claim severity in our life business
Lower dividend expense due to business run-off
Corporate & Other
| Three MonthsEndedJune 30, | Six MonthsEndedJune 30, | |||
|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |
| (In millions) | ||||
| Total adjusted revenues | $208 | $206 | $418 | $373 |
| Total adjusted expenses | 441 | 485 | 895 | 925 |
| Provision for income tax expense (benefit) | (47) | (83) | (117) | (186) |
| Adjusted earnings | (186) | (196) | (360) | (366) |
| Less: Preferred stock dividends | 34 | 32 | 101 | 98 |
| Adjusted earnings available to common shareholders | $(220) | $(228) | $(461) | $(464) |
| Adjusted premiums, fees and other revenues | $113 | $126 | $217 | $243 |
The table below presents adjusted earnings available to common shareholders by source:
| Three MonthsEndedJune 30, | Six MonthsEndedJune 30, | |||
|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |
| (In millions) | ||||
| Business activities | $30 | $20 | $36 | $39 |
| Net investment income | 92 | 81 | 194 | 132 |
| Interest expense on debt | (255) | (254) | (520) | (512) |
| Corporate initiatives and projects | (7) | (32) | (13) | (46) |
| Other | (93) | (94) | (174) | (165) |
| Provision for income tax (expense) benefit and other tax-related items | 47 | 83 | 117 | 186 |
| Preferred stock dividends | (34) | (32) | (101) | (98) |
| Adjusted earnings available to common shareholders | $(220) | $(228) | $(461) | $(464) |
Adjusted Earnings - Increased $8 million primarily due to the following:
Business Activities – Increased adjusted earnings by $8 million:
Lower expenses in certain of our businesses
Net Investment Income - Increased adjusted earnings by $9 million:
Recurring investment income increased - the impact of tax equity investments now accounted for under the proportional amortization method, higher average invested assets and higher returns on FVO securities, substantially offset by lower yields on fixed income securities and lower income on real estate investments
Corporate Initiatives and Projects & Other - Increased adjusted earnings by $21 million:
Lower corporate-related expenses, including from initiatives and projects
Taxes - Unfavorable change in Corporate & Other’s taxes:
Lower tax preferenced items, primarily due to the impact of tax equity investments now accounted for under the proportional amortization method, partially offset by foreign earnings taxed at different rates than the U.S. statutory rate
Adjusted Earnings - Increased $3 million primarily due to the following:
Net Investment Income - Increased adjusted earnings by $49 million:
Variable investment income increased - higher returns on private equity funds and corporate debt funds
Recurring investment income increased - the impact of tax equity investments now accounted for under the proportional amortization method and higher average invested assets, largely offset by lower yields on fixed income securities
Interest Expense on Debt – Decreased adjusted earnings by $6 million:
Senior note issuances in July 2023, March 2024 and June 2024
Early senior note redemption in February 2023 and April 2024
Surplus note repayment at maturity in January and February 2024
Senior note repayment at maturity in April 2024
Corporate Initiatives and Projects & Other – Increased adjusted earnings by $19 million:
Lower corporate-related expenses, including from initiatives and projects
Higher employee-related expenses
Taxes - Unfavorable change in Corporate & Other’s taxes:
Lower tax preferenced items, primarily due to the impact of tax equity investments now accounted for under the proportional amortization method, partially offset by foreign earnings taxed at different rates than the U.S. statutory rate
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.