MetLife (MET) Q2 2024 earnings summary

Executive summary

• Adjusted earnings reached $1.6 billion ($2.28 per share), up 9% year-over-year, with EPS up 18%, driven by strong Group Benefits and Asia performance.

• Net income was $912 million ($1.28 per share), up from $370 million in the prior year, reflecting higher adjusted earnings and absence of prior-year reinsurance-related losses.

• Group Benefits posted record adjusted earnings of $533 million, with a historical low Group Life mortality ratio of 79.1%.

• The company continues to execute its Next Horizon strategy, focusing on efficiency, technology investment, and sustainable growth.

• Segment reorganization in late 2023 resulted in six reporting segments, with no impact on prior period consolidated results.

Financial highlights

• Total revenues for Q2 2024 were $17.8 billion, up from $16.6 billion in Q2 2023.

• Net investment income rose to $5.2 billion, supported by higher interest rates and variable investment income.

• Adjusted earnings rose 9% year-over-year (11% on constant currency), with EPS up 18% (20% on constant currency).

• Group Benefits adjusted earnings up 43% year-over-year; RIS adjusted earnings down 2% due to lower recurring interest margins.

• Direct Expense Ratio improved to 11.9% from prior year, below the 12.3% annual target.

Outlook and guidance

• Expectation for full-year Direct Expense Ratio to be 12.3% or below.

• RIS spreads anticipated to remain within 115-140 basis points in Q3, stabilizing in Q4 as interest rate caps mature.

• Full-year Asia sales expected to be flat year-over-year; strong pipeline for Pension Risk Transfer deals.

• Variable Investment Income expected to improve in the second half of the year, with a quarterly target of $375 million.

• Management expects continued impact from global economic and market volatility, including inflation, interest rate changes, and geopolitical risks.