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1. Company Snapshot

1.a. Company Description

MetLife, Inc., a financial services company, provides insurance, annuities, employee benefits, and asset management services worldwide.It operates through five segments: U.S.; Asia; Latin America; Europe, the Middle East and Africa; and MetLife Holdings.The company offers life, dental, group short-and long-term disability, individual disability, pet insurance, accidental death and dismemberment, vision, and accident and health coverages, as well as prepaid legal plans; administrative services-only arrangements to employers; and general and separate account, and synthetic guaranteed interest contracts, as well as private floating rate funding agreements.


It also provides pension risk transfers, institutional income annuities, structured settlements, and capital markets investment products; and other products and services, such as life insurance products and funding agreements for funding postretirement benefits, as well as company, bank, or trust-owned life insurance used to finance nonqualified benefit programs for executives.In addition, it provides fixed, indexed-linked, and variable annuities; and pension products; regular savings products; whole and term life, endowments, universal and variable life, and group life products; longevity reinsurance solutions; credit insurance products; and protection against long-term health care services.MetLife, Inc.


was founded in 1863 and is headquartered in New York, New York.

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1.b. Last Insights on MET

The recent performance of MetLife, Inc. was negatively impacted by several factors. The company's fourth-quarter earnings missed estimates, with a quarterly earnings of $2.08 per share, compared to the Zacks Consensus Estimate of $2.13 per share. Higher expenses and lower net investment income are expected to have affected the company's earnings. Additionally, the company's RIS and EMEA units underperformed, contributing to the earnings miss.

1.c. Company Highlights

2. MetLife Delivers Strong Q3 2025 Results with 21% Adjusted Earnings Growth

MetLife reported adjusted earnings of $1.6 billion or $2.34 per share, exceeding analyst estimates of $2.31 per share. The company's adjusted return on equity, excluding notables, was 16.7%, near the top of its target range of 15% to 17%. Revenue growth was driven by strong investment margins, led by variable investment income, which was $483 million, above the implied quarterly outlook of $425 million. The effective tax rate on adjusted earnings was approximately 24%, at the bottom end of the 2025 guidance range.

Publication Date: Nov -07

📋 Highlights
  • Adjusted Earnings Growth:: MetLife reported adjusted earnings of $1.6B ($2.37 per share), a 22% increase YoY, driven by strong investment margins and volume growth.
  • Variable Investment Income Outperformance:: Generated $483M in variable investment income, exceeding guidance of $425M, fueled by 3% private equity returns.
  • Asia Performance:: Adjusted earnings surged 36% to $473M, with Latin America and EMEA showing 2% and double-digit growth, respectively.
  • Shareholder Returns:: Returned $875M to shareholders via $375M dividends and $500M share repurchases, maintaining a $4.9B cash buffer above targets.
  • ROE and Cost Efficiency:: Adjusted ROE reached 16.7% (near top of 15-17% target), while direct expense ratio improved to 11.6% (vs. 11.7% YoY).

Segment Performance

The Group Benefits segment delivered adjusted earnings of $457 million, up 6% from a year ago, driven by solid underwriting results. The Retirement and Income Solutions segment reported adjusted earnings of $423 million, up 15% from the prior year quarter, reflecting higher variable investment income. Asia displayed strong performance across all key metrics, with adjusted earnings of $473 million, up 36% and up 37% on a constant currency basis.

Investment Income and Expenses

Variable investment income was driven by higher private equity returns, which reached 3% for the quarter. The company's direct expense ratio improved to 11.6% in Q3 2025, below the full-year target of 12.1%. According to John McCallion, "the credit environment is strong, but spreads are tight, so discipline is needed around value and risk." The company's investment portfolio is well-positioned to navigate a wide range of economic outcomes.

Valuation and Outlook

With a Price-to-Book Ratio of 1.74, MetLife's valuation appears reasonable. Analysts estimate revenue growth of 5.3% for next year. The company's strong capitalization and robust liquidity position it well for future growth. As Ramy Tadros mentioned, "we'll be disciplined in exploring risk transfer opportunities and will prioritize shareholder value." The company's commitment to returning excess capital to shareholders is evident in its $875 million return through common stock dividends and share repurchases.

Capital Position and Shareholder Returns

MetLife remains strongly capitalized, with cash and liquid assets at the holding companies totaling $4.9 billion, exceeding the target cash buffer of $3 billion to $4 billion. The company returned approximately $875 million to shareholders through common stock dividends and share repurchases, demonstrating its commitment to shareholder value.

3. NewsRoom

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MetLife Completes $10 Billion Variable Annuity Risk Transfer Transaction

Dec -01

Source: businesswire.com

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MetLife, Inc. $MET Shares Sold by Advisors Asset Management Inc.

Nov -26

Source: defenseworld.net

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MetLife Preferreds Reviewed: Hold For Now

Nov -21

Source: seekingalpha.com

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FIFA Global Citizen Education Fund Opens Grant Applications for Grassroots Organizations Worldwide

Nov -21

Source: businesswire.com

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MetLife Declares Fourth Quarter 2025 Preferred Stock Dividends

Nov -17

Source: businesswire.com

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Fidelity National Financial (NYSE:FNF) versus MetLife (NYSE:MET) Head-To-Head Comparison

Nov -15

Source: defenseworld.net

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Allworth Financial LP Raises Position in MetLife, Inc. $MET

Nov -15

Source: defenseworld.net

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MetLife Celebrated as a Top 25 Fortune World's Best Workplace™ 2025

Nov -13

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.15%)

6. Segments

U.S. - Group Benefits

Expected Growth: 4.5%

MetLife’s U.S. Group Benefits segment growth is driven by increasing demand for employee benefits, rising healthcare costs, and the need for employers to attract and retain talent.

U.S. - Retirement and Income Solutions

Expected Growth: 4.5%

MetLife's U.S. segment benefits from an increasing demand for retirement solutions, driven by an aging population and a growing need for income security. The segment's growth is also fueled by its diversified product offerings, including annuities and pension risk transfer solutions.

Asia

Expected Growth: 7.3%

MetLife's Asia segment growth is driven by increasing demand for life, accident, and health insurance products in Japan, Asia, and other markets, supported by a large and growing middle class, aging populations, and government healthcare reforms.

Latin America

Expected Growth: 6.4%

MetLife's Latin America segment is expected to grow driven by increasing demand for insurance and employee benefits in Mexico, Latin America, and the Caribbean, fueled by economic growth, urbanization, and a rising middle class

Metlife Holdings

Expected Growth: 4.5%

MetLife Holdings’ growth is driven by increasing demand for life insurance and annuities, expansion in emerging markets, and growth in employee benefits segment.

Europe, The Middle East and Africa (EMEA)

Expected Growth: 4.5%

MetLife's growth is driven by increasing demand for insurance products, expansion into emerging markets, and strategic acquisitions, leading to a forecast CAGR of 4.5%.

Unallocated Unit-Linked Contract Income

Expected Growth: 5.2%

MetLife's unallocated unit-linked contracts are expected to grow driven by increasing demand for personalized insurance products, rising disposable incomes, and the company's expanding distribution channels, including its digital platform.

Unallocated Other

Expected Growth: 4.2%

MetLife's Unallocated Other segment is expected to grow driven by increasing unallocated corporate revenues, diversification of non-underwriting gains, and effective expense management, contributing to a forecasted growth rate.

Unallocated Investment Hedge Adjustments

Expected Growth: 3.8%

MetLife's unallocated investment hedge adjustments are driven by increasing interest rates, expansion of alternative investments, and a shift towards hedging liabilities, resulting in a forecasted growth rate of 3.8%.

Unallocated Net Investment Gains (Losses)

Expected Growth: 4.5%

MetLife’s unallocated portfolio growth is driven by increasing investment returns, favorable market conditions, and effective asset liability management strategies.

Unallocated Net Derivative Gains (Losses)

Expected Growth: 5.4%

MetLife's unallocated net derivative losses are driven by interest rate and foreign exchange rate fluctuations. The company's hedging strategies aim to mitigate these risks, but non-qualifying derivatives contribute to volatility. As global economic conditions evolve, MetLife's derivatives portfolio will likely continue to be affected, influencing the company's bottom line.

7. Detailed Products

Life Insurance

MetLife offers a range of life insurance products, including term life, whole life, and universal life insurance, to provide financial protection for loved ones in the event of death.

Dental Insurance

MetLife's dental insurance plans provide coverage for routine cleanings, fillings, crowns, and other dental procedures, helping to maintain good oral health.

Disability Insurance

MetLife's disability insurance products provide income protection in the event of illness or injury, helping to replace lost income and maintain financial stability.

Auto and Home Insurance

MetLife offers auto and home insurance products to protect against damage or loss to vehicles and homes, providing financial protection and peace of mind.

Retirement and Savings

MetLife's retirement and savings products, including 401(k) and IRA plans, help individuals plan and save for retirement and other long-term financial goals.

Vision Insurance

MetLife's vision insurance plans provide coverage for eye exams, glasses, and contact lenses, helping to maintain good eye health and correct vision problems.

Employee Benefits

MetLife offers a range of employee benefits, including life insurance, disability insurance, and other voluntary benefits, to help employers attract and retain top talent.

8. MetLife, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

MetLife, Inc. operates in a highly competitive industry, and customers have various alternatives to choose from. However, the company's strong brand recognition and diversified product offerings mitigate the threat of substitutes to some extent.

Bargaining Power Of Customers

MetLife, Inc. has a large customer base, but individual customers have significant bargaining power due to the availability of alternatives. The company needs to focus on customer retention and satisfaction to maintain its market share.

Bargaining Power Of Suppliers

MetLife, Inc. has a diversified supply chain, and suppliers have limited bargaining power. The company's scale and financial resources also give it an upper hand in negotiations with suppliers.

Threat Of New Entrants

The insurance industry has high barriers to entry, including regulatory hurdles and significant capital requirements. While new entrants may emerge, they are unlikely to pose a significant threat to MetLife, Inc.'s market position in the short term.

Intensity Of Rivalry

The insurance industry is highly competitive, with many established players competing for market share. MetLife, Inc. needs to focus on differentiating its products and services to maintain its competitive edge.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 38.55%
Debt Cost 7.49%
Equity Weight 61.45%
Equity Cost 9.09%
WACC 8.47%
Leverage 62.73%

11. Quality Control: MetLife, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Manulife

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Value: 6.9

Growth: 3.9

Quality: 6.7

Yield: 9.0

Momentum: 6.0

Volatility: 9.7

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MetLife

A-Score: 6.1/10

Value: 7.3

Growth: 4.7

Quality: 5.7

Yield: 6.0

Momentum: 4.0

Volatility: 8.7

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A-Score: 5.9/10

Value: 5.3

Growth: 4.3

Quality: 7.1

Yield: 8.0

Momentum: 5.0

Volatility: 5.7

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Truist

A-Score: 5.8/10

Value: 4.8

Growth: 2.8

Quality: 5.5

Yield: 8.0

Momentum: 6.0

Volatility: 8.0

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Prudential Financial

A-Score: 5.5/10

Value: 5.7

Growth: 3.4

Quality: 4.9

Yield: 8.0

Momentum: 2.0

Volatility: 9.0

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Aflac

A-Score: 5.3/10

Value: 3.0

Growth: 4.2

Quality: 6.7

Yield: 4.0

Momentum: 4.0

Volatility: 10.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

78.03$

Current Price

78.03$

Potential

-0.00%

Expected Cash-Flows