MetLife (MET) Investor Day 2024 summary

Strategic direction and business priorities

• Launched the New Frontier strategy, building on the prior Next Horizon plan, with a focus on growth, attractive returns, responsible risk management, and leveraging scale, diversification, and technology to deliver superior outcomes for stakeholders.

• Four strategic priorities: extend leadership in Group Benefits, capitalize on the retirement platform, accelerate asset management growth, and expand in high-growth international markets.

• Emphasizes disciplined capital allocation, operational efficiency, and optimizing business mix by growing capital-light businesses and reducing exposure to legacy and variable annuity balances.

• Outperformed previous commitments, exceeding targets for adjusted ROE, free cash flow, and operating leverage from 2020-2024, and outperformed S&P 500 in TSR over the last five years.

• Executive leadership team with deep industry experience and a strong focus on stakeholder value, including employees, customers, and communities.

Financial guidance and performance targets

• Raised adjusted EPS growth target to double digits (from 6%) and adjusted ROE to 15-17% (from 12-14%) for 2024-2029.

• Increased free cash flow target to $25B+ over five years, up from ~$20B previously.

• Direct expense ratio target improved by 100bps to 11.3% by 2029, down from 12.3%.

• High free cash flow conversion (65-75%) and disciplined capital allocation support organic growth, M&A, and shareholder returns.

• Consistent capital return with high payout ratios, significant share repurchases, and dividends over recent years.

Group Benefits leadership and growth

• Maintains #1 market position in U.S. Group Benefits, three times the size of the nearest peer, growing 1.5x faster than the market, and investing $1.9B+ in technology since 2019.

• Added $6.5 billion in premiums and $300 million in earnings over five years, with investments in technology and product innovation driving differentiation.

• Expanded product offerings, increased employee participation, and persistency rates above 95% among large employers.

• Leveraged digital tools and channel consolidation to simplify benefits, drive higher participation rates, and support margin expansion.

• Significant opportunity remains in underpenetrated segments and through channel consolidation.