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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's Strong Q4 2025 Earnings: A Closer Look

MetLife reported strong fourth-quarter 2025 adjusted earnings of $1.6 billion, or $2.49 per share, with $2.58 per share excluding notable items, a 24% increase compared to $2.08 per share a year ago. The company's adjusted earnings rose 18% to $1.7 billion, driven by higher variable investment income, strong volume growth, and favorable expense margins. The actual EPS came out at $2.58, beating analysts' estimates of $2.34.

Publication Date: Feb -06

📋 Highlights
  • Strong Q4 Adjusted Earnings Growth: Adjusted earnings per share reached $2.49, up 24% YoY from $2.08, with $2.58 excluding notable items.
  • Capital Deployment and Shareholder Returns: Deployed $4 billion for organic growth and returned $4.4 billion to shareholders via buybacks and dividends in 2025.
  • Strategic Reinsurance Transactions: Executed $21 billion in reinsurance deals (Chariot and Talcott) to manage liabilities and optimize capital.
  • 2026 Outlook: Projects double-digit adjusted EPS growth, ROE of 15-17%, and 65-75% free cash flow ratio, targeting $1.6–1.8 billion in RIS adjusted earnings.
  • Operational Efficiency: Direct expense ratio fell to 11.7% in 2025, ahead of the 2029 target of 11.3%, driven by AI and tech adoption.

Segment Performance

Group Benefits adjusted earnings were $465 million, up 12% year over year, while Retirement and Income Solutions adjusted earnings were $454 million, up 18% year over year. The company's business growth has been fueled by sound capital deployment and capital management, with close to $4 billion deployed to support organic new business in 2025.

Capital Management and Liquidity

MetLife's cash and capital position remains strong, with $3.6 billion of cash and cash equivalents, within the target liquidity buffer of $3 billion to $4 billion. The company repurchased $200 million of its common stock in January and expects 2026 repurchases to be in line with 2025.

Outlook and Guidance

The company expects double-digit adjusted EPS growth, adjusted ROE to be in the range of 15% to 17%, and to maintain its two-year average free cash flow ratio of 65% to 75% of adjusted earnings in 2026. Group Benefits adjusted earnings are expected to grow 7% to 9% in 2026, driven by robust results in dental and persistency.

Valuation

With a Price-to-Book Ratio not available, we can look at other relevant valuation metrics for insurance companies. The Dividend Yield is 3.01%, which is attractive. Considering the company's strong financial performance and guidance, the current valuation appears reasonable. The EV/EBITDA ratio is 11.43, indicating a moderate valuation.

Growth Prospects

MetLife expects strong volume growth in Latin America and EMEA, and double-digit adjusted EPS growth in 2026. The company's diversified business and geographic presence, along with its strong capital position, position it for continued growth. As Michel Khalaf mentioned, "We are entering 2026 as a stronger company with sustained business momentum and expanding market leadership."

3. NewsRoom

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MetLife: Limited Upside Given VII Reliance

Feb -08

Source: seekingalpha.com

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Twin Capital Management Inc. Decreases Holdings in MetLife, Inc. $MET

Feb -07

Source: defenseworld.net

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MetLife, Inc. (MET) Q4 2025 Earnings Call Prepared Remarks Transcript

Feb -06

Source: seekingalpha.com

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MetLife Inc (MET) Q4 2025 Earnings Call Highlights: Strong Financial Performance and Strategic Growth Initiatives

Feb -05

Source: gurufocus.com

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MetLife Q4 Earnings Beat Estimates on Increasing Volumes

Feb -05

Source: zacks.com

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MetLife, Inc. (MET) Q4 2025 Earnings Call Transcript

Feb -05

Source: seekingalpha.com

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ABN AMRO Bank N.V. Purchases 36,950 Shares of MetLife, Inc. $MET

Feb -05

Source: defenseworld.net

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MetLife, Inc. $MET Shares Bought by Bessemer Group Inc.

Feb -05

Source: defenseworld.net

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: 6.7

Growth: 3.9

Quality: 6.7

Yield: 8.0

Momentum: 7.0

Volatility: 9.7

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Jackson Financial

A-Score: 6.6/10

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Growth: 4.3

Quality: 7.8

Yield: 8.0

Momentum: 5.0

Volatility: 6.0

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MetLife

A-Score: 6.0/10

Value: 7.1

Growth: 4.7

Quality: 5.6

Yield: 6.0

Momentum: 4.0

Volatility: 8.7

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Prudential Financial

A-Score: 6.0/10

Value: 7.0

Growth: 3.4

Quality: 5.3

Yield: 8.0

Momentum: 3.0

Volatility: 9.0

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Aflac

A-Score: 5.7/10

Value: 3.7

Growth: 4.2

Quality: 6.6

Yield: 4.0

Momentum: 6.0

Volatility: 10.0

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Truist

A-Score: 5.7/10

Value: 4.7

Growth: 2.8

Quality: 5.7

Yield: 8.0

Momentum: 5.0

Volatility: 8.0

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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

76.38$

Current Price

76.38$

Potential

-0.00%

Expected Cash-Flows