MetLife (MET) Q4 2025 earnings summary

Executive summary

• Achieved 10% adjusted EPS growth and 16% adjusted ROE for FY25, meeting or exceeding targets, with net income of $3.2 billion ($4.71/share).

• Advanced strategic priorities under the New Frontier initiative, emphasizing responsible growth, capital deployment, and operational discipline.

• Returned $4.4 billion to shareholders through buybacks and dividends, while maintaining holding company cash and liquid assets at $3.6 billion.

• Achieved record pension risk transfer sales and expanded in asset management with the PineBridge acquisition, creating a new business segment.

• Free cash flow ratio reached 81%, surpassing the 65-75% target.

Financial highlights

• FY25 adjusted earnings (ex notable items) were $6 billion ($8.89/share), up ~10% year-over-year.

• Q4 adjusted earnings ex notable items rose 18% year-over-year to $1.7 billion ($2.58/share), marking the highest single EPS quarter.

• Full-year premiums, fees, and other revenues increased 10% to $57.6 billion; Q4 premiums, fees, and other revenues rose 29% to $18.7 billion.

• Net income was $3.2 billion for the full year; variable investment income for FY25 was $1.5 billion, above guidance.

• Book value per share increased 14% to $39.02; adjusted book value per share up 4% to $57.07.

Outlook and guidance

• On track to achieve 5-year commitments: double-digit adjusted EPS growth, 15%-17% adjusted ROE, direct expense ratio improvement, and $25B+ free cash flow.

• 2026 guidance: double-digit adjusted EPS growth, adjusted ROE of 15%-17%, direct expense ratio target of 12.1%, and $1.6B pre-tax VII.

• Share repurchases in 2026 expected to match 2025 levels.

• Group Benefits adjusted earnings ex notables expected to grow 7%-9% in 2026; RIS adjusted earnings projected at $1.6B-$1.8B.

• Effective tax rate expected between 24-26%.