MetLife, Inc. Reports First Quarter 2025 Results" or "MetLife, Inc. Files Quarterly Report for the Period Ended March 31, 2025
MetLife, Inc. reported its quarterly financial results for the period ended March 31, 2025. The company’s net income was $1.4 billion, a decrease of 12% compared to the same period last year. Total revenue was $23.1 billion, a 4% increase from the prior year. The company’s operating earnings were $2.1 billion, a 5% decrease from the same period last year. MetLife’s book value per share was $63.41, a 2% increase from the prior year. The company’s capital and surplus was $74.4 billion, a 3% increase from the prior year. MetLife’s financial performance was impacted by a decline in investment gains and a decrease in net income from its international operations. Despite these challenges, the company remains committed to its long-term strategy of growing its business and increasing shareholder value.
Financial Performance Overview of MetLife
MetLife, one of the world’s leading financial services companies, has reported its financial results for the first quarter of 2025. The company provides insurance, annuities, employee benefits and asset management services across six business segments: Group Benefits, Retirement and Income Solutions (RIS), Asia, Latin America, Europe, the Middle East and Africa (EMEA), and MetLife Holdings.
Strong Earnings and Revenue Growth MetLife’s net income available to common shareholders increased by $79 million, or 10%, to $879 million in the first quarter of 2025 compared to the same period in 2024. This was driven by a favorable change in net derivative gains and losses, partially offset by an unfavorable change in market risk benefit remeasurement.
Adjusted earnings available to common shareholders, a non-GAAP measure that excludes certain items, remained flat at $1.3 billion compared to the prior year period. This was due to the following key business drivers:
- Foreign currency fluctuations decreased adjusted earnings by $45 million, primarily in the Latin America and Asia segments.
- Market factors, such as higher interest credited expenses, decreased adjusted earnings by $13 million.
- Volume growth increased adjusted earnings by $40 million, driven by higher average invested assets and business growth.
- Favorable underwriting and other insurance adjustments increased adjusted earnings by $74 million.
- Higher expenses, including legal plan utilization and direct expenses, decreased adjusted earnings by $37 million.
Consolidated revenues increased by 16% to $18.6 billion, primarily due to growth in premiums, which rose 17% to $11.7 billion. This was driven by strong performance in the RIS segment, where premiums increased significantly due to growth in the pension risk transfer and U.K. longevity reinsurance businesses.
Segment Performance
Group Benefits The Group Benefits segment reported a 29% increase in adjusted earnings to $367 million, primarily due to favorable mortality experience and refinements to certain insurance liabilities. Adjusted premiums, fees and other revenues increased 2% to $6.4 billion.
Retirement and Income Solutions (RIS) Adjusted earnings in the RIS segment increased slightly to $401 million. The increase was driven by higher recurring investment income and variable investment income, partially offset by higher interest credited expenses. Adjusted premiums, fees and other revenues more than doubled to $2.4 billion, reflecting strong growth in the pension risk transfer and U.K. longevity reinsurance businesses.
Asia Adjusted earnings in the Asia segment decreased 12% to $374 million, primarily due to the impact of foreign currency fluctuations, lower surrender charges, and higher expenses. Adjusted premiums, fees and other revenues decreased 4% to $1.7 billion.
Latin America Adjusted earnings in the Latin America segment decreased 6% to $218 million, mainly due to the impact of foreign currency fluctuations and less favorable underwriting and insurance adjustments, partially offset by volume growth and favorable taxes. Adjusted premiums, fees and other revenues increased 1% to $1.5 billion.
EMEA Adjusted earnings in the EMEA segment increased 8% to $83 million, driven by volume growth, partially offset by higher expenses. Adjusted premiums, fees and other revenues increased 8% to $668 million.
MetLife Holdings Adjusted earnings in the MetLife Holdings segment, which consists of closed blocks of business, decreased 3% to $154 million, primarily due to the expected run-off of the business. Adjusted premiums, fees and other revenues decreased 7% to $780 million.
Strong Investment Portfolio Performance MetLife’s investment portfolio, which supports its insurance operations and related policyholder liabilities, continues to be well-positioned. Adjusted net investment income, a non-GAAP measure, increased 3% to $5.2 billion, driven by higher recurring investment income and variable investment income.
The company’s fixed maturity securities available-for-sale (AFS) portfolio, which makes up the majority of the investment portfolio, had a net unrealized loss of $23.6 billion at the end of the first quarter, an improvement from a $26.2 billion net unrealized loss at the end of 2024. This was primarily due to a decrease in long-term interest rates during the quarter.
MetLife’s mortgage loan portfolio, the second-largest asset class, totaled $81.5 billion in amortized cost, with an allowance for credit loss of $871 million. The portfolio is well-diversified by property type and geographic region, with a weighted average loan-to-value ratio of 69% and a weighted average debt service coverage ratio of 2.1x for commercial mortgages.
The company’s real estate investments, which include wholly-owned properties and interests in real estate joint ventures and funds, had a carrying value of $13.5 billion and were 2.9% of total cash and invested assets. These investments have appreciated to a $3.6 billion unrealized gain position.
Outlook and Strategic Initiatives
Looking ahead, MetLife remains focused on executing its strategic initiatives to drive growth and enhance shareholder value. In the fourth quarter of 2024, the company announced the formation of a new life and annuity reinsurance company, Chariot Reinsurance, Ltd., in partnership with General Atlantic. This venture is expected to launch in the first half of 2025, subject to regulatory approvals, and will provide MetLife with an opportunity to cede a block of liabilities to the new reinsurance company.
Additionally, the company continues to monitor the evolving global financial and economic environment, including factors such as global inflation, supply chain disruptions, acts of war, and banking sector volatility, which may impact its business operations, investment portfolio, and derivatives. MetLife is taking appropriate actions to manage these risks and position the company for long-term success.
Overall, MetLife’s strong first-quarter performance, diversified business mix, and strategic initiatives position the company well to navigate the current market conditions and deliver value to its shareholders.
