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METLIFE INC

For the period ended Dec 31, 2024. Filed Feb 21, 2025.

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A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.

FY2024 · Filed Feb 21, 2025

MET$101.67+3.5%Stored close · as of Nov 9, 2026

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Contents

Item 7. 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. MetLife is organized into six segments: Group Benefits; RIS; Asia; Latin America; EMEA; and MetLife Holdings. In addition, the Company reports certain of its results of operations in Corporate & Other. See “Business — Segments and Corporate & Other” and Note 2 of the Notes to the 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 was $4.2 billion and $1.4 billion for the years ended December 31, 2024 and 2023, respectively.

Adjusted earnings available to common shareholders was $5.8 billion and $5.5 billion for the years ended December 31, 2024 and 2023, respectively.

Consolidated Results

Years Ended December 31,
20242023
(In millions)
Revenues
Premiums$44,945$44,283
Universal life and investment-type product policy fees4,9745,152
Net investment income21,27319,908
Other revenues2,6012,526
Net investment gains (losses)(1,184)(2,824)
Net derivative gains (losses)(1,623)(2,140)
Total revenues70,98666,905
Expenses
Policyholder benefits and claims and policyholder dividends45,32345,212
Policyholder liability remeasurement (gains) losses(206)(45)
Market risk benefit remeasurement (gains) losses(1,109)(994)
Interest credited to policyholder account balances8,3397,860
Amortization of deferred policy acquisition costs, value of business acquired and negative value of business acquired2,0211,926
Interest expense on debt1,0371,045
Other expenses, net of capitalization of deferred policy acquisition costs9,9599,739
Total expenses65,36464,743
Income (loss) before provision for income tax5,6222,162
Provision for income tax expense (benefit)1,178560
Net income (loss)4,4441,602
Less: Net income (loss) attributable to noncontrolling interests1824
Net income (loss) attributable to MetLife, Inc.4,4261,578
Less: Preferred stock dividends200198
Net income (loss) available to MetLife, Inc.’s common shareholders$4,226$1,380

Net income (loss) available to MetLife, Inc.’s common shareholders - Increased $2.8 billion primarily due to the following:

Net Investment Gains (Losses)(1) - Favorable change of $1.6 billion ($1.3 billion, net of income tax):

Impairment losses in 2023 for investments disposed of in connection with a reinsurance transaction that closed in November 2023

Lower losses on sales of fixed maturity securities

Higher gains on sales of real estate investments

Net Derivative Gains (Losses)(2) - Favorable change of $517 million ($408 million, net of income tax)(3):

Key equity indexes increased less in 2024 compared to 2023 - favorable impact to the estimated fair value of long put options and short futures

Certain long-term interest rates increased more significantly in 2024 compared to 2023 and other long-term interest rates increased in 2024 compared to decreased in 2023 - unfavorable impact to the estimated fair value of receiver swaps

Market Risk Benefit Remeasurement (Gains) Losses(4) - Favorable change of $115 million ($91 million, net of income tax):

Certain long-term interest rates increased more significantly in 2024 compared to 2023 and other long-term interest rates increased in 2024 compared to decreased in 2023

Key equity indexes increased less in 2024 compared to 2023

Actuarial Assumption Review - Favorable change of $70 million ($55 million, net of income tax):

Years Ended December 31, · Variance
2024 · 2023
Assumptions · (In millions, net of income tax)
Economic$(55)$(40)$(15)
Mortality1105159
Morbidity53(14)67
Policyholder behavior(91)—(91)
Operational471235
Total$64$9$55

Total results for 2024 and 2023 include gains of $64 million and $9 million, respectively:

Of the $64 million gain, a loss of $5 million was recognized in MRB remeasurement (gains) losses, a loss of $1 million was recognized in net derivative gains (losses), both of which are discussed above, and a gain of $70 million was recognized in adjusted earnings available to common shareholders, which is discussed below

Of the $9 million gain, a loss of $4 million was recognized in MRB remeasurement (gains) losses, a loss of $2 million was recognized in net derivative gains (losses), both of which are discussed above, and a gain of $15 million was recognized in adjusted earnings available to common shareholders, which is discussed below

The $55 million increase was primarily driven by (i) favorable mortality experience in the RIS segment in the current year, (ii) updates made in the prior year to morbidity assumptions in the MetLife Holdings segment associated with an increase in incident rates for the long-term care business, and (iii) updates to policyholder behavior assumptions in the Asia segment related to lapse assumptions in the accident & health business, partially offset by updates to policyholder behavior assumptions in the MetLife Holdings segment related to claim utilization experience for the long-term care business

Adjusted Earnings Available to Common Shareholders(5) - Favorable change of $271 million. See “— Consolidated Results — Adjusted Earnings Available to Common Shareholders.”

Taxes - Favorable change in effective tax rate - 21% in 2024 compared to 26% in 2023:

2024 effective tax rate on income before provision for income tax was equal to the U.S. statutory rate of 21% primarily due to tax benefits from:

Low income housing and other tax credits, partially offset by the impact of tax equity investments now accounted for under the proportional amortization method

Offset by tax charges from:

Adjustments related to prior years’ taxes

2023 effective tax rate on income before provision for income tax was 26% compared to the U.S. statutory rate of 21% primarily due to tax charges from:

Non-taxable investment loss

Partially offset by tax credits from:

Low income housing and other tax credits

(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 Consolidated Financial Statements for further information on the Company’s MRBs.

(5)See “— Non-GAAP and Other Financial Disclosures” for information regarding adjusted earnings and related measures.

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

Year Ended December 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$1,596$1,138$723$522$269$697$(719)$4,226
Add: Preferred stock dividends——————200200
Add: Net income (loss) attributable to noncontrolling interests————4(1)1518
Add: Preferred stock redemption premium————————
Net income (loss)1,5961,138723522273696(504)4,444
Less: adjustments from net income (loss) to adjusted earnings available to common shareholders:
Revenues:
Net investment gains (losses)(58)(501)(591)28(40)(408)386(1,184)
Net derivative gains (losses)118278(1,108)(257)(19)(540)(95)(1,623)
Premiums31——————31
Universal life and investment-type product policy fees————————
Net investment income(74)(191)441(42)625(183)25601
Other revenues—(76)———15828110
Expenses:
Policyholder benefits and claims and policyholder dividends(19)(141)255(148)—71—18
Policyholder liability remeasurement gains (losses)————————
Market risk benefit remeasurement gains (losses)—(11)(7)—541,074(1)1,109
Interest credited to policyholder account balances (“PABs”)—2(372)(81)(624)(109)—(1,184)
Capitalization of deferred policy acquisition costs (“DAC”)————————
Amortization of DAC, VOBA and negative VOBA————————
Interest expense on debt————————
Other expenses(11)(30)37(4)(1)(81)(117)
Goodwill impairment————————
Provision for income tax (expense) benefit3141481134(2)(13)(57)687
Adjusted earnings$1,606$1,667$1,621$881$283$647$(709)$5,996
Less: Preferred stock dividends——————200200
Adjusted earnings available to common shareholders$1,606$1,667$1,621$881$283$647$(909)$5,796
Premiums, fees and other revenues$24,901$8,518$6,757$5,936$2,548$3,430$430$52,520
Less: adjustments to premiums, fees and other revenues31(76)———15828141
Adjusted premiums, fees and other revenues$24,870$8,594$6,757$5,936$2,548$3,272$402$52,379

Year Ended December 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$1,521$942$(150)$652$253$(1,338)$(500)$1,380
Add: Preferred stock dividends——————198198
Add: Net income (loss) attributable to noncontrolling interests——274—1124
Add: Preferred stock redemption premium————————
Net income (loss)1,521942(148)659257(1,338)(291)1,602
Less: adjustments from net income (loss) to adjusted earnings available to common shareholders:
Revenues:
Net investment gains (losses)(56)(563)(1,019)110(1,914)717(2,824)
Net derivative gains (losses)39120(921)89(44)(1,350)(73)(2,140)
Premiums————————
Universal life and investment-type product policy fees————————
Net investment income(153)(449)350(34)688(260)17159
Other revenues—(75)——12940(5)
Expenses:
Policyholder benefits and claims and policyholder dividends—(32)183(157)—11—5
Policyholder liability remeasurement (gains) losses————————
Market risk benefit remeasurement (losses) gains—2943—40882—994
Interest credited to PABs——(395)(149)(687)(20)—(1,251)
Capitalization of DAC————————
Amortization of DAC, VOBA and negative VOBA————————
Interest expense on debt————————
Other expenses——18(5)—(97)(93)
Goodwill impairment————————
Provision for income tax (expense) benefit3620432861(11)551(135)1,034
Adjusted earnings$1,655$1,708$1,282$840$265$733$(760)$5,723
Less: Preferred stock dividends——————198198
Adjusted earnings available to common shareholders$1,655$1,708$1,282$840$265$733$(958)$5,525
Adjusted earnings available to common shareholders on a constant currency basis (1)$1,655$1,708$1,248$791$253$733$(958)$5,430
Premiums, fees and other revenues$23,929$8,757$6,969$5,727$2,347$3,737$495$51,961
Less: adjustments to premiums, fees and other revenues—(75)——12940(5)
Adjusted premiums, fees and other revenues$23,929$8,832$6,969$5,727$2,346$3,708$455$51,966
Adjusted premiums, fees and other revenues on a constant currency basis (1)$23,929$8,832$6,608$5,392$2,271$3,708$455$51,195

(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 Available to Common Shareholders

Business Overview. Adjusted premiums, fees and other revenues for the year ended December 31, 2024 increased $413 million, or 1%, compared to 2023. Adjusted premiums, fees and other revenues, net of foreign currency fluctuations, increased $1.2 billion, or 2%, compared to 2023, primarily due to growth in both core and voluntary products in the Group Benefits segment and strong sales and solid persistency across the region in the Latin America segment, partially offset by the expected decline in the MetLife Holdings segment from business run-off.

Years Ended December 31,
20242023
(In millions)
Group Benefits$1,606$1,655
RIS1,6671,708
Asia1,6211,282
Latin America881840
EMEA283265
MetLife Holdings647733
Corporate & Other(909)(958)
Adjusted earnings available to common shareholders$5,796$5,525
Adjusted earnings available to common shareholders on a constant currency basis$5,796$5,430
Adjusted premiums, fees and other revenues$52,379$51,966
Adjusted premiums, fees and other revenues on a constant currency basis$52,379$51,195

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 $271 million on a reported basis, primarily due to the following business drivers:

Reinsurance Transaction - Decreased adjusted earnings available to common shareholders by approximately $170 million as a result of the reinsurance transaction that closed in November 2023 in the MetLife Holdings segment

Foreign Currency - Decreased adjusted earnings available to common shareholders by $95 million, primarily in the Latin America and Asia segments

Market Factors - Increased adjusted earnings available to common shareholders by $217 million:

Variable investment income increased- higher returns on private equity funds

Recurring investment income increased- higher yields on fixed income securities and mortgage loans, as well as the impact of tax equity investments now accounted for under the proportional amortization method, partially offset by lower income on derivatives and real estate investments

Higher average interest crediting rates on investment-type and certain insurance products, primarily in the RIS and Asia segments

Volume Growth - Increased adjusted earnings available to common shareholders by $194 million:

Higher average invested assets, primarily in the RIS and Latin America segments

Higher sales and business growth in the EMEA and Latin America segments

Increase in interest credited expenses on long duration products, primarily in the RIS segment

Underwriting and Other Insurance Adjustments - Increased adjusted earnings available to common shareholders by $190 million:

Favorable mortality results, primarily in the Group Benefits segment, higher surrender charges in the Asia segment, and favorable morbidity experience in the MetLife Holdings segment, partially offset by unfavorable morbidity experience in the Group Benefits segment

Favorable change from refinements to certain insurance assets and other liabilities in both years, primarily in the Asia and Group Benefits segments, partially offset by an unfavorable change to certain insurance liabilities in the RIS segment

Expenses - Decreased adjusted earnings available to common shareholders by $122 million:

Higher direct expenses, including employee-related and technology costs, in most of the segments

Higher litigation reserves

Lower corporate-related expenses, primarily in Corporate & Other

Taxes - Unfavorable change in effective tax rate - 24% in 2024 compared to 22% in 2023:

2024 effective tax rate on income before provision for income tax was 24% compared to the U.S. statutory rate of 21% primarily due to tax charges from:

Partially offset by tax benefits from:

Low income housing and other tax credits, partially offset by the impact of tax equity investments now accounted for under the proportional amortization method

2023 effective tax rate on income before provision for income tax was 22% compared to the U.S. statutory rate of 21% primarily due to tax charges from:

Partially offset by tax benefits from:

Low income housing and other tax credits

Notable Items - Actuarial assumption review and other insurance adjustments, litigation reserves and settlement costs, and tax adjustments - Increased adjusted earnings available to common shareholders by $88 million on a reported basis:

Years Ended December 31, · Variance
2024 · 2023
(In millions, net of income tax)
Group Benefits$(58)$27$(85)
RIS1046143
Asia(41)(94)53
Latin America4—4
EMEA(5)18(23)
MetLife Holdings12210
Corporate & Other10(76)86
Total$26$(62)$88

Segment Results and Corporate & Other

Business Overview. Adjusted premiums, fees and other revenues for the year ended December 31, 2024 increased $941 million, or 4%, compared to 2023, 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.

Years Ended December 31,
20242023
(In millions)
Adjusted earnings$1,606$1,655
Adjusted premiums, fees and other revenues$24,870$23,929

Adjusted Earnings - Decreased $49 million primarily due to the following business drivers:

Market Factors- Decreased adjusted earnings by $27 million:

Recurring investment income decreased - lower income on derivatives, partially offset by higher yields on fixed income securities

Volume Growth - Increased adjusted earnings by $18 million:

Growth in both core and voluntary products

Underwriting and Other Insurance Adjustments - Increased adjusted earnings by $88 million:

Favorable mortality - primarily due to lower claims incidence in our life business

Favorable change from refinements to certain insurance and other liabilities in both years

Unfavorable morbidity - (i) higher incidence in the accident & health business, (ii) higher claims in vision, and (iii) higher utilization and the impact of prior year development in dental, partially offset by (a) favorable claims experience and rate actions in our pet insurance business and (b) higher recoveries and a favorable reserve adjustment in 2024 in our disability business

Expenses - Decreased adjusted earnings by $43 million:

Higher legal plan utilization and higher technology, employee-related and various other operating expenses exceeded the corresponding increase in adjusted premiums, fees and other revenues

Notable Items - Decreased adjusted earnings by $85 million:

2024 notable items - unfavorable impact of $58 million - actuarial assumption review and other insurance adjustments, which includes an unfavorable refinement on certain life policies

2023 notable item - favorable impact of $27 million - actuarial assumption review

Retirement & Income Solutions

Business Overview. Adjusted premiums, fees and other revenues for the year ended December 31, 2024 decreased $238 million, or 3%, compared to 2023. The decrease was primarily driven by lower premiums from our pension risk transfer and post-retirement benefit businesses, largely offset by growth in our U.K. longevity reinsurance and institutional income annuities businesses. Changes in premiums were partially offset by a corresponding change in policyholder benefits, both of which are reported net of ceded reinsurance.

Years Ended December 31,
20242023
(In millions)
Adjusted earnings$1,667$1,708
Adjusted premiums, fees and other revenues$8,594$8,832

Adjusted Earnings- Decreased $41 million primarily due to the following business drivers:

Market Factors- Decreased adjusted earnings by $97 million:

Higher average interest crediting rates primarily on investment-type products

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 income on derivatives

Volume Growth- Increased adjusted earnings by $62 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 $32 million:

Unfavorable refinements to certain insurance liabilities

Expenses - Decreased adjusted earnings by $39 million:

Higher expenses, including certain employee-related costs

Notable Items - Increased adjusted earnings by $43 million:

2024 notable item - favorable impact of $104 million - actuarial assumption review

2023 notable item - favorable impact of $61 million - actuarial assumption review

Asia

Business Overview. Adjusted premiums, fees and other revenues for the year ended December 31, 2024 decreased $212 million, or 3%, compared to 2023. Adjusted premiums, fees and other revenues, net of foreign currency fluctuations, increased $149 million, or 2%, compared to 2023, 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 and yen-denominated life products.

Years Ended December 31,
20242023
(In millions)
Adjusted earnings$1,621$1,282
Adjusted earnings on a constant currency basis$1,621$1,248
Adjusted premiums, fees and other revenues$6,757$6,969
Adjusted premiums, fees and other revenues on a constant currency basis$6,757$6,608

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 $339 million on a reported basis, primarily due to the following business drivers:

Foreign Currency - Decreased adjusted earnings by $34 million:

Japanese yen and Korean won weakened against the U.S. dollar

Market Factors - Increased adjusted earnings by $193 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 $89 million:

Higher surrender charges in Japan

Favorable change from refinements to certain insurance assets and liabilities in both years

Taxes- Increased adjusted earnings by $41 million:

Favorable change in Japan - lower premium tax due to lower sales and tax benefits from higher foreign earnings taxed at lower rates in 2024

Favorable change in Korea - tax benefits due to lower dividend withholding tax as a result of a rate decrease and a tax audit settlement in 2024

Notable Items - Increased adjusted earnings by $53 million on a reported basis:

2024 notable item - unfavorable impact of $41 million - actuarial assumption review

2023 notable item - unfavorable impact of $94 million - actuarial assumption review

Business Overview. Adjusted premiums, fees and other revenues for the year ended December 31, 2024 increased $209 million, or 4%, compared to 2023. Adjusted premiums, fees and other revenues, net of foreign currency fluctuations, increased $544 million, or 10%, compared to 2023, mainly driven by strong sales and solid persistency across the region.

Years Ended December 31,
20242023
(In millions)
Adjusted earnings$881$840
Adjusted earnings on a constant currency basis$881$791
Adjusted premiums, fees and other revenues$5,936$5,727
Adjusted premiums, fees and other revenues on a constant currency basis$5,936$5,392

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 $41 million on a reported basis, primarily due to the following business drivers:

Foreign Currency - Decreased adjusted earnings by $49 million:

Chilean and Mexican peso weakened against the U.S. dollar

Volume Growth - Increased adjusted earnings by $95 million:

Strong sales of single premium immediate annuities in Chile resulted in higher average invested assets

Higher sales, primarily in Mexico and Chile

Increase in interest credited expenses on long duration products

Underwriting and Other Insurance Adjustments - Increased adjusted earnings by $22 million:

Favorable refinements to certain insurance liabilities primarily in Chile and Mexico

Expenses - Decreased adjusted earnings by $13 million:

Higher corporate-related and various other operating expenses, primarily in Mexico and Chile

Other - Decreased adjusted earnings by $15 million, includes

Higher amortization of DAC

Notable Items - Increased adjusted earnings by $4 million:

2024 notable item - favorable impact of $4 million - actuarial assumption review

EMEA

Business Overview. Adjusted premiums, fees and other revenues for the year ended December 31, 2024 increased $202 million, or 9%, compared to 2023. Adjusted premiums, fees and other revenues, net of foreign currency fluctuations, increased $277 million, or 12%, compared to 2023 primarily due to increases in our (i) corporate solutions business in the Gulf, the U.K. and Egypt, (ii) credit life and pension businesses in Turkey and Romania, and (iii) accident & health business across the region.

Years Ended December 31,
20242023
(In millions)
Adjusted earnings$283$265
Adjusted earnings on a constant currency basis$283$253
Adjusted premiums, fees and other revenues$2,548$2,346
Adjusted premiums, fees and other revenues on a constant currency basis$2,548$2,271

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 $12 million:

Turkish lira and Egyptian pound weakened against the U.S. dollar

Market Factors - Increased adjusted earnings by $29 million:

Recurring investment income increased - higher yields on fixed income securities

Volume Growth - Increased adjusted earnings by $51 million:

Increase in sales and business growth of:

Credit life and pension businesses in Turkey and Romania

Corporate solutions business in the Gulf, the U.K. and Egypt

Accident & health business across the region

Underwriting and Other Insurance Adjustments - Decreased adjusted earnings by $4 million:

Unfavorable change from refinements to certain insurance liabilities in both years

Favorable underwriting experience across the region

Expenses- Decreased adjusted earnings by $36 million:

Higher direct expenses, including employee-related costs and various other operating expenses across the region

Taxes- Increased adjusted earnings by $13 million

Tax-related adjustments in both years

Notable Items- Decreased adjusted earnings by $23 million on a reported basis:

2024 notable item - unfavorable impact of $5 million - actuarial assumption review

2023 notable items - favorable impact of $18 million - actuarial assumption review and other insurance adjustments

Business Overview. The 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. In addition, see Note 9 of the Notes to the Consolidated Financial Statements for information on a transaction to reinsure an in-force block of this business.

Years Ended December 31,
20242023
(In millions)
Adjusted earnings$647$733
Adjusted premiums, fees and other revenues$3,272$3,708

Adjusted Earnings - Decreased $86 million primarily due to the following business drivers:

Reinsurance Transaction - Decreased adjusted earnings by approximately $170 million as a result of the reinsurance transaction that closed in November 2023

Market Factors - Increased adjusted earnings by $73 million:

Variable investment income increased- higher returns on private equity funds

Decrease in interest credited expenses on long duration products

Recurring investment income decreased - lower average invested assets due to business run-off and lower income on derivatives, largely offset by higher yields on fixed income securities

Volume Growth - Decreased adjusted earnings by $40 million, consistent with business run-off

Underwriting and Other Insurance Adjustments - Increased adjusted earnings by $28 million:

Favorable morbidity experience in our long-term care business

Lower dividend expense due to business run-off

Notable Items - Increased adjusted earnings by $10 million:

2024 notable items - favorable impact of $12 million- actuarial assumption review and other insurance adjustments

2023 notable items - favorable impact of $2 million- actuarial assumption review, largely offset by other insurance adjustments

Years Ended December 31,
20242023
(In millions)
Adjusted earnings available to common shareholders$(909)$(958)
Adjusted premiums, fees and other revenues$402$455

The table below presents adjusted earnings available to common shareholders by source:

Years Ended December 31,
20242023
(In millions)
Business activities$72$87
Net investment income416353
Interest expense on debt(1,033)(1,047)
Corporate initiatives and projects(33)(67)
Other(306)(493)
Provision for income tax (expense) benefit and other tax-related items175407
Preferred stock dividends(200)(198)
Adjusted earnings available to common shareholders$(909)$(958)

Adjusted Earnings Available to Common Shareholders- Increased $49 million primarily due to the following:

Business Activities - Decreased adjusted earnings available to common shareholders by $12 million:

Lower revenues in certain of our businesses

Net Investment Income - Increased adjusted earnings available to common shareholders by $50 million:

Recurring investment income increased - the impact of tax equity investments now accounted for under the proportional amortization method, partially offset by lower yields on fixed income securities and lower average invested assets

Variable investment income increased - higher returns on corporate debt funds

Interest Expense on Debt - Increased adjusted earnings available to common shareholders by $11 million:

Surplus notes repayments at maturity in January and February 2024

Senior note repayment at maturity in April 2024

Early senior note redemption in February 2023 and April 2024

Interest rate decrease on surplus notes

Senior note issuances in July 2023, March 2024, June 2024 and September 2024

Corporate Initiatives and Projects & Other – Increased adjusted earnings available to common shareholders by $175 million:

Interest associated with a tax refund in 2024 (notable item)

Lower corporate and employee-related expenses, including from initiatives and projects

Litigation reserves increased less in 2024 compared to 2023 (includes notable items in both years)

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

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