METLIFE INC
For the period ended Mar 31, 2025. Filed May 1, 2025.
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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, 2025 · Filed May 1, 2025
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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. MetLife is organized into six segments: Group Benefits; Retirement and Income Solutions (“RIS”); Asia; Latin America; Europe, the Middle East and Africa (“EMEA”); and MetLife Holdings. In addition, the Company reports 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 $879 million for the three months ended March 31, 2025, compared to $800 million for the three months ended March 31, 2024.
Adjusted earnings available to common shareholders of $1.3 billion for both the three months ended March 31, 2025 and March 31, 2024.
Consolidated Results
| Three MonthsEndedMarch 31, | ||
|---|---|---|
| 2025 | 2024 | |
| (In millions) | ||
| Revenues | ||
| Premiums | $11,723 | $10,053 |
| Universal life and investment-type product policy fees | 1,229 | 1,248 |
| Net investment income | 4,885 | 5,436 |
| Other revenues | 687 | 674 |
| Net investment gains (losses) | (387) | (375) |
| Net derivative gains (losses) | 432 | (979) |
| Total revenues | 18,569 | 16,057 |
| Expenses | ||
| Policyholder benefits and claims and policyholder dividends | 11,950 | 10,221 |
| Policyholder liability remeasurement (gains) losses | (31) | (22) |
| Market risk benefit remeasurement (gains) losses | 299 | (694) |
| Interest credited to policyholder account balances | 1,647 | 2,290 |
| Amortization of deferred policy acquisition costs, value of business acquired and negative value of business acquired | 519 | 502 |
| Interest expense on debt | 258 | 264 |
| Other expenses, net of capitalization of deferred policy acquisition costs | 2,573 | 2,451 |
| Total expenses | 17,215 | 15,012 |
| Income (loss) before provision for income tax | 1,354 | 1,045 |
| Provision for income tax expense (benefit) | 404 | 170 |
| Net income (loss) | 950 | 875 |
| Less: Net income (loss) attributable to noncontrolling interests | 5 | 8 |
| Net income (loss) attributable to MetLife, Inc. | 945 | 867 |
| Less: Preferred stock dividends | 66 | 67 |
| Net income (loss) available to MetLife, Inc.’s common shareholders | $879 | $800 |
Net income (loss) available to MetLife, Inc.’s common shareholders - Increased $79 million primarily due to the following:
Net Investment Gains (Losses)(1) - Unfavorable change of $12 million ($9 million, net of income tax):
Higher losses on sales of fixed maturity securities
Higher increase to the allowance for credit loss on mortgage loans
Gains on sales of real estate investments in the prior period
Gains on foreign currency transactions in the current period compared to losses in the prior period
Net Derivative Gains (Losses)(2) - Favorable change of $1.4 billion ($1.1 billion, net of income tax)(3):
The U.S. dollar weakened against the Japanese yen in the current period compared to strengthened in the prior period - favorable impact to the estimated fair value of sell-U.S. dollar currency forwards
Key equity indexes decreased in the current period compared to increased in the prior period - favorable impact to the estimated fair value of short futures, long put options and total rate of return swaps
Long-term interest rates decreased in the current period compared to increased in the prior period - favorable impact to the estimated fair value of receiver forwards, options and swaps
Market Risk Benefit Remeasurement (Gains) Losses(4) - Unfavorable change of $993 million ($784 million, net of income tax):
Long-term interest rates decreased in the current period compared to increased in the prior period
Key equity indexes decreased in the current period compared to increased in the prior period
Adjusted Earnings Available to Common Shareholders(5) - Favorable change of $15 million. See “— Consolidated Results — Adjusted Earnings Available to Common Shareholders.”
Taxes - Unfavorable change in effective tax rate - 30% in the current period compared to 16% in the prior period:
Current period effective tax rate on income before provision for income tax was 30% compared to 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
Non-deductible losses
Tax rate change in Japan
Partially offset by tax benefits from:
Non-taxable investment income
Low income housing and other tax credits, partially offset by the impact of tax equity investments
Corporate tax deduction for stock compensation
Prior period effective tax rate on income before provision for income tax was 16% compared to 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
Corporate tax deduction for stock compensation
(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)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
Three Months Ended March 31, 2025
| Group Benefits · RIS · Asia · Latin America · EMEA · MetLife Holdings · Corporate & Other · Total | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (In millions) | ||||||||||||||||
| Net income (loss) available to MetLife, Inc.'s common shareholders | $300 | $126 | $489 | $228 | $75 | $(56) | $(283) | $879 | ||||||||
| Add: Preferred stock dividends | — | — | — | — | — | — | 66 | 66 | ||||||||
| Add: Net income (loss) attributable to noncontrolling interests | — | — | — | 2 | 1 | — | 2 | 5 | ||||||||
| Net income (loss) | 300 | 126 | 489 | 230 | 76 | (56) | (215) | 950 | ||||||||
| Less: adjustments from net income (loss) to adjusted earnings available to common shareholders: | ||||||||||||||||
| Revenues: | ||||||||||||||||
| Net investment gains (losses) | (25) | (210) | 34 | 3 | (3) | (59) | (127) | (387) | ||||||||
| Net derivative gains (losses) | (43) | (45) | 170 | 158 | (11) | 116 | 87 | 432 | ||||||||
| Premiums | 4 | — | — | — | — | — | — | 4 | ||||||||
| Universal life and investment-type product policy fees | — | — | — | — | — | — | — | — | ||||||||
| Net investment income | (17) | (17) | (140) | (41) | (96) | (47) | 30 | (328) | ||||||||
| Other revenues | — | (19) | — | — | — | 36 | 4 | 21 | ||||||||
| Expenses: | ||||||||||||||||
| Policyholder benefits and claims and policyholder dividends | (1) | (24) | 44 | (67) | — | 16 | — | (32) | ||||||||
| Policyholder liability remeasurement (gains) losses | — | — | — | — | — | — | — | — | ||||||||
| Market risk benefit remeasurement gains (losses) | — | 1 | (1) | — | 1 | (301) | 1 | (299) | ||||||||
| Interest credited to policyholder account balances ("PABs") | — | — | 142 | (41) | 96 | (27) | — | 170 | ||||||||
| Capitalization of deferred policy acquisition costs (" DAC") | — | — | — | — | — | — | — | — | ||||||||
| Amortization of DAC, value of business acquired ("VOBA") and negative VOBA | — | — | — | — | — | — | — | — | ||||||||
| Interest expense on debt | — | — | — | — | — | — | — | — | ||||||||
| Other expenses | (3) | (35) | — | 2 | (1) | — | (32) | (69) | ||||||||
| Goodwill impairment | — | — | — | — | — | — | — | — | ||||||||
| Provision for income tax (expense) benefit | 18 | 74 | (134) | (2) | 7 | 56 | 4 | 23 | ||||||||
| Adjusted earnings | $367 | $401 | $374 | $218 | $83 | $154 | $(182) | $1,415 | ||||||||
| Less: Preferred stock dividends | — | — | — | — | — | — | 66 | 66 | ||||||||
| Adjusted earnings available to common shareholders | $367 | $401 | $374 | $218 | $83 | $154 | $(248) | $1,349 | ||||||||
| Premiums, fees and other revenues | $6,434 | $2,411 | $1,681 | $1,513 | $668 | $816 | $116 | $13,639 | ||||||||
| Less: adjustments to premiums, fees and other revenues | 4 | (19) | — | — | — | 36 | 4 | 25 | ||||||||
| Adjusted premiums, fees and other revenues | $6,430 | $2,430 | $1,681 | $1,513 | $668 | $780 | $112 | $13,614 | ||||||||
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 PABs | — | 1 | (236) | (40) | (262) | (26) | — | (563) | ||||||||
| Capitalization of DAC | — | — | — | — | — | — | — | — | ||||||||
| Amortization of DAC, VOBA and negative VOBA | — | — | — | — | — | — | — | — | ||||||||
| 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 | $284 | $399 | $423 | $233 | $77 | $159 | $(241) | $1,334 | ||||||||
| Adjusted earnings available to common shareholders on a constant currency basis (1) | $284 | $399 | $411 | $204 | $73 | $159 | $(241) | $1,289 | ||||||||
| 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 | ||||||||
| Adjusted premiums, fees and other revenues on a constant currency basis (1) | $6,330 | $813 | $1,682 | $1,322 | $594 | $841 | $104 | $11,686 | ||||||||
(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 three months ended March 31, 2025 increased $1.7 billion, or 14%, compared to the prior period. Adjusted premiums, fees and other revenues, net of foreign currency fluctuations, increased $1.9 billion, or 16%, compared to the prior period primarily due to growth in the pension risk transfer business in the RIS segment.
| Three MonthsEndedMarch 31, | ||
|---|---|---|
| 2025 | 2024 | |
| (In millions) | ||
| Group Benefits | $367 | $284 |
| RIS | 401 | 399 |
| Asia | 374 | 423 |
| Latin America | 218 | 233 |
| EMEA | 83 | 77 |
| MetLife Holdings | 154 | 159 |
| Corporate & Other | (248) | (241) |
| Adjusted earnings available to common shareholders | $1,349 | $1,334 |
| Adjusted earnings available to common shareholders on a constant currency basis | $1,349 | $1,289 |
| Adjusted premiums, fees and other revenues | $13,614 | $11,948 |
| Adjusted premiums, fees and other revenues on a constant currency basis | $13,614 | $11,686 |
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 $15 million on a reported basis, primarily due to the following business drivers:
Foreign Currency - Decreased adjusted earnings available to common shareholders by $45 million, primarily in the Latin America and Asia segments
Market Factors - Decreased adjusted earnings available to common shareholders by $13 million:
Higher interest credited expenses - higher average interest crediting rates on investment-type and certain insurance products, primarily in the RIS and Asia segments, as well as growth on long-duration products in the RIS segment
Favorable change in market-sensitive policyholder liabilities in the Asia segment in the prior period
Substantially offset by:
Recurring investment income increased - positive flows from pension risk transfer transactions and funding agreement issuances in the RIS segment and higher income on real estate investments, partially offset by lower yields on fixed income securities and lower income on derivatives
Variable investment income increased- higher returns on real estate funds, partially offset by lower returns on private equity funds
Volume Growth - Increased adjusted earnings available to common shareholders by $40 million:
Higher average invested assets, primarily in the Asia 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 Asia and Latin America segments
Underwriting and Other Insurance Adjustments - Increased adjusted earnings available to common shareholders by $74 million:
Favorable mortality results, primarily in the Group Benefits segment, partially offset by lower surrender charges in the Asia segment
Favorable change from refinements to certain insurance liabilities in both periods, primarily in the Group Benefits and MetLife Holdings segments, partially offset by favorable refinements to certain insurance liabilities in the Latin America segment in the prior period
Expenses - Decreased adjusted earnings available to common shareholders by $37 million:
Higher legal plan utilization in the Group Benefits segment
Higher direct expenses in the Group Benefits, Asia and EMEA segments
Lower corporate-related expenses and lower litigation reserves in Corporate & Other
Segment Results and Corporate & Other
Business Overview. Adjusted premiums, fees and other revenues for the three months ended March 31, 2025 increased $100 million, or 2%, 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 MonthsEndedMarch 31, | ||
|---|---|---|
| 2025 | 2024 | |
| (In millions) | ||
| Adjusted earnings | $367 | $284 |
| Adjusted premiums, fees and other revenues | $6,430 | $6,330 |
Adjusted Earnings - Increased $83 million primarily due to the following business drivers:
Underwriting and Other Insurance Adjustments - Increased adjusted earnings by $98 million:
Favorable mortality - primarily due to lower claims incidence and severity in our life business
Favorable change from refinements to certain insurance liabilities in both periods
Expenses - Decreased adjusted earnings by $26 million:
Higher legal plan utilization and employee-related expenses, partially offset by a premium tax liability release, 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, 2025 increased $1.6 billion, or 199%, compared to the prior period. The increase was primarily due to growth in our pension risk transfer and United Kingdom (“U.K.”) longevity reinsurance businesses. Changes in premiums were more than offset by a corresponding change in policyholder benefits, both of which are reported net of ceded reinsurance.
| Three MonthsEndedMarch 31, | ||
|---|---|---|
| 2025 | 2024 | |
| (In millions) | ||
| Adjusted earnings | $401 | $399 |
| Adjusted premiums, fees and other revenues | $2,430 | $813 |
Adjusted Earnings- Increased $2 million primarily due to the following business drivers:
Market Factors- Decreased adjusted earnings by $17 million:
Increase in interest credited expenses mainly driven by higher average interest crediting rates on investment-type products and growth on long-duration products
Recurring investment income increased - positive flows from pension risk transfer transactions and funding agreement issuances, largely offset by lower income on derivatives and lower yields on mortgage loans and fixed income securities
Variable investment income increased - higher returns in real estate funds, partially offset by lower returns on private equity funds
Underwriting and Other Insurance Adjustments- Increased adjusted earnings by $20 million:
Favorable mortality and unfavorable prior period refinements to certain insurance liabilities in our annuity businesses
Asia
Business Overview. Adjusted premiums, fees and other revenues for the three months ended March 31, 2025 decreased $63 million, or 4%, compared to the prior period. Adjusted premiums, fees and other revenues, net of foreign currency fluctuations, decreased $1 million, or less than 1%, compared to the prior period, as an increase in premiums in Korea was substantially offset by decreases in premiums from Japan’s accident & health and yen-denominated life products and lower fee income from Japan’s annuity and foreign currency life products.
| Three MonthsEndedMarch 31, | ||
|---|---|---|
| 2025 | 2024 | |
| (In millions) | ||
| Adjusted earnings | $374 | $423 |
| Adjusted earnings on a constant currency basis | $374 | $411 |
| Adjusted premiums, fees and other revenues | $1,681 | $1,744 |
| Adjusted premiums, fees and other revenues on a constant currency basis | $1,681 | $1,682 |
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 - Decreased $49 million on a reported basis, primarily due to the following business drivers:
Foreign Currency - Decreased adjusted earnings by $12 million:
Korean won, Australian dollar, and Japanese yen weakened against the U.S. dollar
Market Factors - Increased adjusted earnings by $5 million:
Variable investment income increased - higher returns on real estate funds, partially offset by lower 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
Favorable change in market-sensitive policyholder liabilities in the prior period
Volume Growth- Increased adjusted earnings by $15 million:
Higher positive net flows resulted in higher average invested assets
Increase in interest credited expenses on investment-type and certain insurance products
Underwriting and Other Insurance Adjustments -Decreased adjusted earnings by $25 million:
Lower surrender charges in Japan and China
Unfavorable morbidity experience in Korea
Expenses - Decreased adjusted earnings by $14 million:
Higher direct expenses and corporate overhead expenses
Taxes- Decreased adjusted earnings by $20 million:
Unfavorable change in Japan - impact from a tax rate change in the current period
Unfavorable change in Korea - tax benefits due to a tax audit settlement in the prior period
Latin America
Business Overview. Adjusted premiums, fees and other revenues for the three months ended March 31, 2025 increased $17 million, or 1%, compared to the prior period. Adjusted premiums, fees and other revenues, net of foreign currency fluctuations, increased $191 million, or 14%, compared to the prior period, mainly driven by strong sales and solid persistency across the region.
| Three MonthsEndedMarch 31, | ||
|---|---|---|
| 2025 | 2024 | |
| (In millions) | ||
| Adjusted earnings | $218 | $233 |
| Adjusted earnings on a constant currency basis | $218 | $204 |
| Adjusted premiums, fees and other revenues | $1,513 | $1,496 |
| Adjusted premiums, fees and other revenues on a constant currency basis | $1,513 | $1,322 |
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 - Decreased $15 million on a reported basis, primarily due to the following business drivers:
Foreign Currency - Decreased adjusted earnings by $29 million:
Mexican peso weakened 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, and lower yields on fixed income securities
Favorable impact of higher inflation, primarily in Chile
Variable investment income increased - higher returns on private equity funds
Volume Growth - Increased adjusted earnings by $28 million:
Strong sales of single premium immediate annuities in Chile resulted in higher average invested assets
Higher sales, primarily in Mexico
Increase in interest credited expenses on long-duration products
Underwriting and Other Insurance Adjustments - Decreased adjusted earnings by $20 million:
Favorable refinements to certain insurance liabilities primarily in Chile and Mexico in the prior period
Taxes - Increased adjusted earnings by $14 million:
Income tax refund in Chile
Tax adjustments in both periods - recurring tax item related to inflation in Chile and Mexico
EMEA
Business Overview. Adjusted premiums, fees and other revenues for the three months ended March 31, 2025 increased $48 million, or 8%, compared to the prior period. Adjusted premiums, fees and other revenues, net of foreign currency fluctuations, increased $74 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 and ordinary life businesses across the region, as well as our pension business in Turkey.
| Three MonthsEndedMarch 31, | ||
|---|---|---|
| 2025 | 2024 | |
| (In millions) | ||
| Adjusted earnings | $83 | $77 |
| Adjusted earnings on a constant currency basis | $83 | $73 |
| Adjusted premiums, fees and other revenues | $668 | $620 |
| Adjusted premiums, fees and other revenues on a constant currency basis | $668 | $594 |
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 $6 million on a reported basis, primarily due to the following business drivers:
Foreign Currency - Decreased adjusted earnings by $4 million:
Turkish lira, euro and Egyptian pound weakened against the U.S. dollar
Market Factors - Increased adjusted earnings by $5 million:
Recurring investment income increased - higher yields on fixed income securities
Volume Growth - Increased adjusted earnings by $16 million:
Increase in sales and business growth:
Credit life and pension businesses in Turkey
Accident & health and ordinary life businesses across the region
Corporate solutions business in the Gulf, the U.K. and Egypt
Underwriting and Other Insurance Adjustments - No change to adjusted earnings:
Favorable underwriting experience across the region
Offset by:
Favorable change from refinements to certain insurance liabilities in the prior period
Expenses- Decreased adjusted earnings by $13 million:
Higher direct expenses, including employee-related costs and various other operating expenses across the region
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.
| Three MonthsEndedMarch 31, | ||
|---|---|---|
| 2025 | 2024 | |
| (In millions) | ||
| Adjusted earnings | $154 | $159 |
| Adjusted premiums, fees and other revenues | $780 | $841 |
Adjusted Earnings - Decreased $5 million primarily due to the following business drivers:
Market Factors - Decreased adjusted earnings by $3 million:
Recurring investment income decreased - lower average invested assets due to business run-off and lower income on derivatives, largely offset by higher income on real estate investments, as well as higher yields on fixed income securities and mortgage loans
Substantially offset by:
Decrease in interest credited expenses on long-duration products
Volume Growth - Decreased adjusted earnings by $10 million, consistent with business run-off
Underwriting and Other Insurance Adjustments - Increased adjusted earnings slightly:
Unfavorable reserve refinement in the prior period, partially offset by lower fees in our annuity business in the current period
Unfavorable morbidity experience in our long-term care business
Expenses- Increased adjusted earnings by $5 million, consistent with business run-off
Corporate & Other
| Three MonthsEndedMarch 31, | ||
|---|---|---|
| 2025 | 2024 | |
| (In millions) | ||
| Adjusted earnings available to common shareholders | $(248) | $(241) |
| Adjusted premiums, fees and other revenues | $112 | $104 |
The table below presents adjusted earnings available to common shareholders by source:
| Three MonthsEndedMarch 31, | ||
|---|---|---|
| 2025 | 2024 | |
| (In millions) | ||
| Business activities | $9 | $6 |
| Net investment income | 78 | 102 |
| Interest expense on debt | (258) | (265) |
| Corporate initiatives and projects | (10) | (6) |
| Other | (66) | (81) |
| Provision for income tax (expense) benefit and other tax-related items | 65 | 70 |
| Preferred stock dividends | (66) | (67) |
| Adjusted earnings available to common shareholders | $(248) | $(241) |
Adjusted Earnings Available to Common Shareholders- Decreased $7 million primarily due to the following:
Net Investment Income - Decreased adjusted earnings available to common shareholders by $19 million:
Recurring investment income decreased - lower yields on fixed income securities and lower average invested assets, partially offset by higher income on real estate investments
Interest Expense on Debt - Increased adjusted earnings available to common shareholders by $6 million:
Senior note repayment at maturity in April 2024
Decreased interest expense on surplus notes
Senior note issuances in March 2024, June 2024 and September 2024
Subordinated debt securities issuance in March 2025
Other- Increased adjusted earnings available to common shareholders by $12 million:
Lower corporate-related expenses
Lower litigation reserves
Taxes - Unfavorable change in Corporate & Other’s taxes:
Less favorable tax adjustments related to foreign operations
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.