Metlife Inc.

02/04/2026 | Press release | Distributed by Public on 02/04/2026 16:08

Regulation FD Presentation, Business/Financial Results (Form 8-K)

Page 1 of 26
For Immediate Release | Global Communications | MetLife, Inc.
MetLife Announces Full Year and 4Q 2025 Results
Full Year Results
•Net income was $3.2 billion, or $4.71 per share.
•Adjusted earnings per share, excluding total
notable items, up 10%1 to $8.89.
•Premiums, fees and other revenues (PFOs)
increased 10% to $57.6 billion.
•Adjusted PFOs, excluding pension risk transfers
(PRT), were up 5% to $49.8 billion.
•RIS record sales, including transactions of $14.2
billion in PRT and $11.1 billion of U.K. longevity
reinsurance.
•Beat free cash flow ratio and direct expense
ratio2 targets.
•ROE was 12.9%. Adjusted ROE, excluding total
notable items, was 16%, at midpoint of target
range.
•Book value per share (BVPS) up 14% to $39.02.
Adjusted BVPS increased 4% to $57.07.
•Returned nearly $4.4 billion to shareholders.
•Holding company cash and liquid assets totaled
$3.6 billion at year end, within target range.
Fourth Quarter Results
•Net income was $778 million, or $1.17 per share.
•Adjusted earnings increased 13% to $1.6 billion,
driven by variable investment income, strong
volume growth and improved expense margins.
•Adjusted earnings per share, excluding total
notable items, increased 24% to $2.58.
•PFOs increased 29% to $18.7 billion. Adjusted
PFOs, excluding PRT, up 8% to $12.8 billion.
•Net investment income up 10% to $5.9 billion.
•Variable investment income was $497 million,
primarily reflecting higher private equity returns.
Earnings
Per Share
4Q 2025
Net
Income $1.17
Adjusted
Earnings $2.49
Return
on Equity (ROE)
4Q 2025
ROE 12.0%
Adjusted
ROE 17.6%
Comment from Michel Khalaf, President
and Chief Executive Officer:
MetLife delivered record fourth quarter
results, underscoring the strength of our
diversified businesses and the disciplined
execution of our all-weather New Frontier
strategy.
For the full year, we achieved 10%
adjusted earnings per share growth, 16%
adjusted return on equity, and beat our
direct expense and free cash flow ratio
targets, while returning nearly $4.4 billion
to shareholders. We made significant
progress in advancing our New Frontier
priorities, completing key strategic
transactions and entering new
partnerships to extend our market
leadership, expand our global reach, and
enhance capital flexibility.
We are confident that the foundation built
in 2025 positions MetLife to accelerate
growth responsibly and deploy capital
prudently to deliver on our New Frontier
commitments.
1In this news release, all comparisons of results for the fourth quarter of 2025 are with the fourth quarter of 2024, unless otherwise noted. All comparisons of results for the full year
of 2025 are with the full year of 2024, unless otherwise noted. 2 Direct expense ratio, excluding total notable items related to direct expenses and PRT.
Page 2 of 26
Fourth Quarter and Full Year 2025 Summary
($ in millions, except per share data)
Three Months Ended
December 31,
Year Ended
December 31,
2025
2024
Change
2025
2024
Change
Premiums, fees and other revenues
$18,696
$14,475
29%
$57,609
$52,520
10%
Net investment income
5,924
5,405
10%
22,559
21,273
6%
Net investment gains (losses)
(160)
(311)
(1,145)
(1,184)
Net derivative gains (losses)
(646)
(903)
(1,939)
(1,623)
Total revenues
$23,814
$18,666
$77,084
$70,986
Adjusted premiums, fees and other
revenues
$18,614
$14,437
29%
$57,408
$52,379
10%
Adjusted premiums, fees and other
revenues, excluding pension risk
transfers (PRT)
$12,839
$11,844
8%
$49,839
$47,530
5%
Market risk benefit remeasurement
gains (losses)
$267
$764
$508
$1,109
Net income (loss)
$778
$1,239
(37)%
$3,173
$4,226
(25)%
Net income (loss) per share
$1.17
$1.78
(34)%
$4.71
$5.94
(21)%
Adjusted earnings
$1,648
$1,459
13%
$5,943
$5,796
3%
Adjusted earnings per share
$2.49
$2.09
19%
$8.83
$8.15
8%
Adjusted earnings, excluding total
notable items
$1,709
$1,449
18%
$5,986
$5,770
4%
Adjusted earnings, excluding total
notable items per share
$2.58
$2.08
24%
$8.89
$8.11
10%
Book value per share
$39.02
$34.28
14%
$39.02
$34.28
14%
Adjusted book value per share
$57.07
$54.81
4%
$57.07
$54.81
4%
Expense ratio
15.4%
17.8%
18.5%
19.0%
Direct expense ratio, excluding total
notable items related to direct
expenses and PRT
11.6%
13.1%
11.7%
12.1%
Adjusted expense ratio, excluding
total notable items related to
adjusted other expenses and PRT
20.3%
21.9%
20.1%
20.9%
ROE
12.0%
19.6%
12.9%
16.9%
Adjusted ROE
17.6%
15.4%
15.9%
15.2%
Adjusted ROE, excluding total
notable items
18.3%
15.3%
16.0%
15.2%
Information regarding the non-GAAP and other financial measures included in this news release
and reconciliation of the non-GAAP financial measures to GAAP measures are in "Non-GAAP
and Other Financial Disclosures" below and in the tables that accompany this news release.
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Supplemental slides for the fourth quarter of 2025, titled "4Q25 Earnings Call Presentation," are
available on the MetLife Investor Relations website at https://investor.metlife.com and in the
Form 8-K furnished by MetLife to the U.S. Securities and Exchange Commission in connection
with this earnings release. Supplemental information about MetLife's diversified global
investment portfolio is contained in the "4Q25 - General Account Assets Under Management
Fact Sheet," available on the above-mentioned website. Additionally, further information is
available under the heading "Consolidated Company Outlook" in Item 8.01 of the Form 8-K.
Total Company Discussion
MetLife reported fourth quarter 2025 premiums, fees and other revenues of $18.7 billion, up 29
percent compared with the prior-year quarter. Adjusted premiums, fees and other revenues,
excluding pension risk transfers, were $12.8 billion, up 8 percent.
Net investment income was $5.9 billion, up 10 percent, primarily due to higher variable
investment income and increases in the estimated fair value of certain securities that do not
qualify as separate accounts under GAAP. Adjusted net investment income was $5.6 billion, up
5 percent, mainly driven by higher variable investment income.
Net investment losses were $160 million, or $126 million after tax, reflecting normal trading
activity and a stable credit environment. Net derivative losses amounted to $646 million, or
$510 million after tax, due to higher long-term interest rates, stronger equity markets and
strengthening of the U.S. dollar.
Net income decreased 37 percent to $778 million. Net derivative losses and net investment
losses were the primary drivers, partially offset by market risk benefit remeasurement gains and
higher adjusted earnings. On a per-share basis, net income decreased 34 percent to $1.17.
Adjusted earnings were $1.6 billion, up 13 percent on a reported basis and 12 percent on a
constant currency basis. On a per-share basis, adjusted earnings were $2.49, up 19 percent.
MetLife's direct expense ratio, excluding total notable items related to direct expenses and PRT,
was 11.6 percent in the fourth quarter and 11.7 percent for the full year, compared to 13.1
percent in the prior-year quarter and 12.1 percent for the full year 2024.
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Adjusted Earnings by Segment Summary
Three Months Ended
December 31, 2025
Year Ended
December 31, 2025
Segment
Change from
prior-year period
(on a reported
basis)
Change from
prior-year period
(on a constant
currency basis)
Change from
prior year
(on a reported
basis)
Change from
prior year
(on a constant
currency basis)
Group Benefits
12%
5%
Retirement and Income
Solutions (RIS)
18%
-%
Asia
-%
1%
5%
6%
Latin America
(1)%
(9)%
(9)%
(6)%
Europe, the Middle East and
Africa (EMEA)
64%
64%
30%
31%
MetLife Investment
Management (MIM)
275%
264%
Business Discussions
GROUP BENEFITS
($ in millions)
Three Months Ended
December 31, 2025
Three Months Ended
December 31, 2024
Change
Adjusted earnings
$465
$416
12%
Notable item(s)
$0
$0
Adjusted earnings ex. notables
$465
$416
12%
Adjusted PFOs
$6,287
$6,184
2%
•Adjusted earnings were $465 million, up 12 percent, largely reflecting favorable life
underwriting.
•Adjusted PFOs were $6.3 billion, up 2 percent. Overall growth was partially offset by the
impact of favorable mortality on participating life contracts. PFOs from participating life
contracts can fluctuate with claims experience.
•Sales were up 4 percent for the full year, primarily driven by regional business growth.
RIS
($ in millions)
Three Months Ended
December 31, 2025
Three Months Ended
December 31, 2024
Change
Adjusted earnings
$454
$386
18%
Notable item(s)
$0
$0
Adjusted earnings ex. notables
$454
$386
18%
Adjusted PFOs
$7,209
$3,620
99%
Adjusted PFOs, excluding PRT
$1,434
$1,027
40%
•Adjusted earnings were $454 million, up 18 percent, largely driven by favorable variable
investment income.
•Adjusted PFOs were $7.2 billion, mainly reflecting record PRT sales.
•Adjusted PFOs, excluding PRT, were $1.4 billion, up 40 percent, mainly due to U.K.
longevity reinsurance.
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•Total liability exposure grew 14 percent, including 13 percent in general account liabilities.
ASIA
($ in millions)
Three Months Ended
December 31, 2025
Three Months Ended
December 31, 2024
Change
Constant
currency
change
Adjusted earnings
$444
$443
-%
1%
Notable item(s)
$0
$0
Adjusted earnings ex. notables
$444
$443
-%
1%
Adjusted PFOs
$1,671
$1,635
2%
3%
Asia general account assets under
management (at amortized cost)
$140,168
$129,959
8%
7%
•Adjusted earnings were $444 million, essentially flat on a reported basis and up 1 percent
on a constant currency basis. Volume growth and favorable expenses were offset by less
favorable underwriting.
•Adjusted PFOs were $1.7 billion, up 2 percent on a reported basis, and up 3 percent on a
constant currency basis, reflecting strong growth across the region.
•Asia general account assets under management (at amortized cost) were
$140.2 billion, up 7 percent on a constant currency basis.
•Sales were $598 million, up 18 percent on a constant currency basis, primarily driven by
Japan and Korea.
LATIN AMERICA
($ in millions)
Three Months Ended
December 31, 2025
Three Months Ended
December 31, 2024
Change
Constant
currency
change
Adjusted earnings
$198
$201
(1)%
(9)%
Notable item(s)
$(29)
$0
Adjusted earnings ex. notables
$227
$201
13%
4%
Adjusted PFOs
$1,796
$1,438
25%
16%
•Adjusted earnings were $198 million, down 1 percent on a reported basis and down 9
percent on a constant currency basis, primarily reflecting a value-added tax adjustment in
Mexico.
•Excluding notable items, adjusted earnings were $227 million, up 13 percent on a
reported basis and up 4 percent on a constant currency basis, primarily driven by strong
volume growth across the region and favorable Chilean encaje returns.
•Adjusted PFOs were $1.8 billion, up 25 percent on a reported basis and up 16 percent on a
constant currency basis, due to strong growth across the region.
•Sales were $451 million, up 26 percent on a constant currency basis, driven by growth
across the region.
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EMEA
($ in millions)
Three Months Ended
December 31, 2025
Three Months Ended
December 31, 2024
Change
Constant
currency
change
Adjusted earnings
$97
$59
64%
64%
Notable item(s)
$0
$0
Adjusted earnings ex. notables
$97
$59
64%
64%
Adjusted PFOs
$787
$652
21%
17%
•Adjusted earnings were $97 million, up 64 percent on a reported and constant currency
basis, primarily driven by strong volume growth across the region and favorable
underwriting.
•Adjusted PFOs were $787 million, up 21 percent on a reported basis and up 17 percent on
a constant currency basis, reflecting strong sales across the region.
•Sales were $310 million, up 24 percent on a constant currency basis, reflecting strong
growth across most markets.
METLIFE INVESTMENT MANAGEMENT
($ in millions)
Three Months Ended
December 31, 2025
Three Months Ended
December 31, 2024
Change
Adjusted earnings
$60
$16
275%
Notable item(s)
$0
$0
Adjusted earnings ex. notables
$60
$16
275%
Other revenues
$239
$181
32%
Total assets under management
$741,674
$585,729
27%
Institutional net flows
$5,612
$5,118
10%
•Adjusted earnings were $60 million compared with $16 million.
•Other revenues were $239 million, up 32 percent.
•Total assets under management were $741.7 billion, up 27 percent, primarily reflecting the
acquisition of PineBridge Investments, which closed on December 30, 2025.
CORPORATE & OTHER
($ in millions)
Three Months Ended
December 31, 2025
Three Months Ended
December 31, 2024
Change
Adjusted earnings
$(70)
$(62)
Notable item(s)
$(32)
$10
Adjusted earnings ex. notables
$(38)
$(72)
•Adjusted loss of $70 million, compared to an adjusted loss of $62 million.
•Adjusted loss, excluding notable items, of $38 million, compared to an adjusted loss,
excluding notable items, of $72 million.
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INVESTMENTS
($ in millions)
Three Months Ended
December 31, 2025
Three Months Ended
December 31, 2024
Change
Adjusted net investment income
$5,577
$5,301
5%
•Adjusted net investment income was $5.6 billion, up 5 percent. Variable investment
income increased 70 percent to $497 million, primarily driven by higher returns on private
equity assets.
FOURTH QUARTER 2025 NOTABLE ITEMS
($ in millions)
Adjusted Earnings
Three Months Ended December 31, 2025
Notable Items
Group
Benefits
RIS
Asia
Latin
America
EMEA
MIM
Corporate
&
Other
Total
Litigation reserves
and settlement
costs
$0
$0
$0
$0
$0
$0
$(32)
$(32)
Tax adjustments
$0
$0
$0
$(29)
$0
$0
$0
$(29)
Total notable items
$0
$0
$0
$(29)
$0
$0
$(32)
$(61)
Contacts: For Media: Jane Slusark (347) 989-5477, [email protected]
For Investors: John Hall (212) 578-7888, [email protected]
About MetLife
MetLife, Inc. (NYSE: MET), through its subsidiaries and affiliates ("MetLife"), is one of the
world's leading financial services companies, providing insurance, annuities, employee benefits
and asset management to help individual and institutional customers build a more confident
future. Founded in 1868, MetLife has operations in more than 40 markets globally and holds
leading positions in the United States, Asia, Latin America, Europe and the Middle East. For
more information, visit www.metlife.com.
Conference Call
MetLife will hold its combined fourth quarter and full year 2025 earnings and outlook conference
call on Thursday, February 5, 2026, from 9-10 a.m. (ET). The conference call will be available
live via the internet. To listen to the conference call, click the following link to register (https://
events.q4inc.com/attendee/951205562).
The conference call will be available for replay via telephone and the internet beginning at 11:00
a.m. (ET) on Thursday, February 5, 2026, until Thursday, February 12, 2026, at 11:59 p.m. (ET).
To listen to a replay of the conference call via telephone, dial 800-770-2030 (U.S.) or
647-362-9199 (outside the U.S.). The Conference ID for the replay is 11336 followed by the #
key. To access the replay of the conference call via the internet, visit the MetLife Investor
Relations webpage (https://investor.metlife.com).
###
Page 8 of 26
Non-GAAP and Other Financial Disclosures
Any references in this news release (except in
this section and the tables that accompany this
release) to:
Should be read as, respectively:
(i)
net income (loss)
(i)
net income (loss) available to MetLife,
Inc.'s common shareholders
(ii)
net income (loss) per share
(ii)
net income (loss) available to MetLife,
Inc.'s common shareholders per diluted
common share
(iii)
adjusted earnings
(iii)
adjusted earnings available to common
shareholders
(iv)
adjusted earnings per share
(iv)
adjusted earnings available to common
shareholders per diluted common
share
(v)
book value per share
(v)
book value per common share
(vi)
adjusted book value per share
(vi)
adjusted book value per common
share
(vii)
return on equity
(vii)
return on MetLife, Inc.'s common
stockholders' equity
(viii)
adjusted return on equity
(viii)
adjusted return on MetLife, Inc.'s
common stockholders' equity
In this news release, MetLife presents certain measures of its performance on a consolidated and
segment basis that are not calculated in accordance with accounting principles generally accepted in the
United States of America (GAAP). MetLife believes that these non-GAAP financial measures enhance our
investors' understanding of MetLife's performance by highlighting the results of operations and the
underlying profitability drivers of the business. Segment-specific financial measures are calculated using
only the portion of consolidated results attributable to that specific segment.
The following non-GAAP financial measures should not be viewed as substitutes for the most directly
comparable financial measures calculated in accordance with GAAP:
Non-GAAP financial measures:
Comparable GAAP financial measures:
(i)
total adjusted revenues
(i)
total revenues
(ii)
total adjusted expenses
(ii)
total expenses
(iii)
adjusted premiums, fees and other
revenues
(iii)
premiums, fees and other revenues
(iv)
adjusted premiums, fees and other
revenues, excluding PRT
(iv)
premiums, fees and other revenues
(v)
adjusted net investment income
(v)
net investment income
(vi)
adjusted earnings available to common
shareholders
(vi)
net income (loss) available to MetLife,
Inc.'s common shareholders
(vii)
adjusted earnings available to common
shareholders, excluding total notable items
(vii)
net income (loss) available to MetLife,
Inc.'s common shareholders
(viii)
adjusted earnings available to common
shareholders per diluted common share
(viii)
net income (loss) available to MetLife,
Inc.'s common shareholders per diluted
common share
(ix)
adjusted earnings available to common
shareholders, excluding total notable
items, per diluted common share
(ix)
net income (loss) available to MetLife,
Inc.'s common shareholders per diluted
common share
(x)
adjusted return on equity
(x)
return on equity
Page 9 of 26
(xi)
adjusted return on equity, excluding total
notable items
(xi)
return on equity
(xii)
investment portfolio gains (losses)
(xii)
net investment gains (losses)
(xiii)
derivative gains (losses)
(xiii)
net derivative gains (losses)
(xiv)
adjusted capitalization of deferred policy
acquisition costs (DAC)
(xiv)
capitalization of DAC
(xv)
total MetLife, Inc.'s adjusted common
stockholders' equity
(xv)
total MetLife, Inc.'s stockholders' equity
(xvi)
total MetLife, Inc.'s adjusted common
stockholders' equity, excluding total
notable items
(xvi)
total MetLife, Inc.'s stockholders' equity
(xvii)
adjusted book value per common share
(xvii)
book value per common share
(xviii)
adjusted other expenses
(xviii)
other expenses
(xix)
adjusted other expenses, net of adjusted
capitalization of DAC
(xix)
other expenses, net of capitalization of
DAC
(xx)
adjusted other expenses, net of adjusted
capitalization of DAC, excluding total
notable items related to adjusted other
expenses
(xx)
other expenses, net of capitalization of
DAC
(xxi)
adjusted expense ratio
(xxi)
expense ratio
(xxii)
adjusted expense ratio, excluding total
notable items related to adjusted other
expenses and PRT
(xxii)
expense ratio
(xxiii)
direct expenses
(xxiii)
other expenses
(xxiv)
direct expenses, excluding total notable
items related to direct expenses
(xxiv)
other expenses
(xxv)
direct expense ratio
(xxv)
expense ratio
(xxvi)
direct expense ratio, excluding total
notable items related to direct expenses
and PRT
(xxvi)
expense ratio
(xxvii)
future policy benefits at original discount
rate
(xxvii)
future policy benefits at balance sheet
discount rate
(xxviii)
free cash flow of all holding companies
(xxviii)
MetLife, Inc. (parent company only) net
cash provided by (used in) operating
activities
Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures are not
accessible on a forward-looking basis because we believe it is not possible without unreasonable effort to
provide other than a range of net investment gains and losses and net derivative gains and losses, which
can fluctuate significantly within or outside the range and from period to period and may have a material
impact on net income.
Any of these financial measures shown on a constant currency basis reflect the impact of changes in
foreign currency exchange rates and are calculated using the average foreign currency exchange rates
for the current period and applied to the comparable prior period ("constant currency basis").
Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial
measures are included in this earnings news release and in this period's quarterly financial supplement,
which is available at MetLife's Investor Relations webpage (https://investor.metlife.com).
MetLife's definitions of non-GAAP and other financial measures discussed in this news release may differ
from those used by other companies:
Adjusted earnings and related measures
•adjusted earnings;
Page 10 of 26
•adjusted earnings available to common shareholders;
•adjusted earnings available to common shareholders, on a constant currency basis;
•adjusted earnings available to common shareholders, excluding total notable items;
•adjusted earnings available to common shareholders, excluding total notable items, on a constant
currency basis;
•adjusted earnings available to common shareholders per diluted common share;
•adjusted earnings available to common shareholders, on a constant currency basis per diluted
common share;
•adjusted earnings available to common shareholders, excluding total notable items per diluted
common share; and
•adjusted earnings available to common shareholders, excluding total notable items, on a constant
currency basis per diluted common share.
Adjusted earnings is used by MetLife's chief operating decision maker, its chief executive officer, to
evaluate performance and allocate resources. Consistent with GAAP guidance for segment reporting,
adjusted earnings is MetLife's GAAP measure of segment performance. Adjusted earnings and related
measures based on adjusted earnings are also the measures by which senior management's and many
other employees' performance is evaluated for the purposes of determining their compensation under
applicable compensation plans. Adjusted earnings and related measures based on adjusted earnings
allow analysis of MetLife's performance relative to its business plan and facilitate comparisons to industry
results.
Adjusted earnings is defined as adjusted revenues less adjusted expenses, net of income tax. Adjusted
earnings available to common shareholders is defined as adjusted earnings less preferred stock
dividends.
Adjusted earnings, along with the related adjusted revenues, adjusted expenses and adjusted premiums,
fees and other revenues, focus on our primary businesses principally by excluding the impact of (i) market
volatility which could distort trends, (ii) asymmetrical and non-economic accounting, (iii) revenues and
costs related to divested businesses, and (iv) other adjustments. Also, adjusted earnings and related
measures exclude results of discontinued operations under GAAP.
Market volatility can have a significant impact on MetLife's financial results. Adjusted earnings excludes
net investment gains (losses), net derivative gains (losses), market risk benefit remeasurement gains
(losses) and goodwill impairments. Further, net investment income is adjusted to exclude similar items
relating to joint ventures accounted for under the equity method ("Joint venture adjustments"), and
policyholder benefits and claims exclude (i) changes in the discount rate on certain annuitization
guarantees accounted for as additional liabilities and (ii) market value adjustments.
Asymmetrical and non-economic accounting adjustments are made in calculating adjusted earnings:
•Universal life and investment-type product policy fees exclude asymmetrical accounting associated
with in-force reinsurance.
•Net investment income includes earned income on derivatives and amortization of premium on
derivatives that are hedges of investments or that are used to replicate certain investments, but do
not qualify for hedge accounting treatment ("Investment hedge adjustments").
•Other revenues include settlements of foreign currency earnings hedges and exclude asymmetrical
accounting associated with in-force reinsurance.
•Policyholder benefits and claims excludes (i) inflation-indexed benefit adjustments associated with
contracts backed by inflation-indexed investments, (ii) asymmetrical accounting associated with in-
force reinsurance, and (iii) non-economic losses incurred at contract inception for certain single
premium annuity business. These losses are amortized into adjusted earnings within policyholder
benefits and claims over the estimated lives of the contracts.
•Policyholder liability remeasurement gains (losses) excludes asymmetrical accounting associated
with in-force reinsurance.
Page 11 of 26
•Interest credited to policyholder account balances excludes amounts associated with periodic
crediting rate adjustments based on the total return of a contractually referenced pool of assets and
other pass-through adjustments and asymmetrical accounting associated with in-force reinsurance.
"Divested businesses" are those that have been or will be sold or exited by MetLife but do not meet the
discontinued operations criteria under GAAP. Divested businesses also include the net impact of
transactions with exited businesses that have been eliminated in consolidation under GAAP and costs
relating to businesses that have been or will be sold or exited by MetLife that do not meet the criteria to
be included in results of discontinued operations under GAAP.
Other adjustments are made in calculating adjusted earnings:
•Beginning in the fourth quarter of 2025, net investment income excludes depreciation of wholly-
owned real estate and real estate joint ventures.
•Net investment income and interest credited to policyholder account balances exclude certain
amounts related to contractholder-directed equity securities ("Unit-linked contract income" and
"Unit-linked contract costs").
•Net investment income and other expenses exclude Reinsurance activity (as defined below).
•Net investment income and interest expense on debt exclude amounts related to collateralized
financing entities that are consolidated variable interest entities.
•Other revenues include fee revenue on synthetic guaranteed interest contracts ("GICs") accounted
for as freestanding derivatives.
•Other expenses exclude (i) amortization and impairment of asset management intangible assets,
(ii) implementation of new insurance regulatory requirements and other costs, and (iii) acquisition,
integration and other related costs. Other expenses include (i) deductions for net income
attributable to noncontrolling interests and redeemable noncontrolling interests, and (ii) benefits
accrued on synthetic GICs accounted for as freestanding derivatives.
•"Reinsurance activity" relates to amounts subject to ceded reinsurance arrangements with third
parties and joint ventures, including (i) the related investment returns and expenses which are
passed through to the reinsurers and (ii) the corresponding invested assets and cash and cash
equivalents.
Adjusted earnings also excludes the recognition of certain contingent assets and liabilities that could not
be recognized at acquisition or adjusted for during the measurement period under GAAP business
combination accounting guidance.
The tax impact of the adjustments mentioned above are calculated net of the U.S. or foreign statutory tax
rate, which could differ from MetLife's effective tax rate. Additionally, the provision for income tax
(expense) benefit also includes the impact related to the timing of certain tax credits, as well as certain tax
reforms.
In addition, adjusted earnings available to common shareholders excludes the impact of preferred stock
redemption premium, which is reported as a reduction to net income (loss) available to MetLife, Inc.'s
common shareholders.
Investment portfolio gains (losses) and derivative gains (losses)
These are measures of investment and hedging activity. Investment portfolio gains (losses) principally
excludes amounts that are reported within net investment gains (losses) but do not relate to the
performance of the investment portfolio, such as gains (losses) on sales and divestitures of businesses,
as well as investment portfolio gains (losses) of divested businesses. Derivative gains (losses) principally
excludes earned income on derivatives and amortization of premium on derivatives, where such
derivatives are either hedges of investments or are used to replicate certain investments, and where such
derivatives do not qualify for hedge accounting. This earned income and amortization of premium is
reported within adjusted earnings and not within derivative gains (losses).
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Return on equity and related measures
•Total MetLife, Inc.'s adjusted common stockholders' equity: total MetLife, Inc.'s common
stockholders' equity, excluding unrealized investment gains (losses), net of related offsets, deferred
gains (losses) on derivatives, future policy benefits discount rate remeasurement gains (losses),
market risk benefits instrument-specific credit risk remeasurement gains (losses) and defined benefit
plans adjustment components of accumulated other comprehensive income (loss) ("AOCI") and the
estimated fair value of certain ceded reinsurance-related embedded derivatives, all net of income
tax.
•Total MetLife, Inc.'s adjusted common stockholders' equity, excluding total notable items: total
MetLife, Inc.'s common stockholders' equity, excluding unrealized investment gains (losses), net of
related offsets, deferred gains (losses) on derivatives, future policy benefits discount rate
remeasurement gains (losses), market risk benefits instrument-specific credit risk remeasurement
gains (losses) and defined benefit plans adjustment components of AOCI, the estimated fair value of
certain ceded reinsurance-related embedded derivatives and total notable items, all net of income
tax.
•Return on MetLife, Inc.'s common stockholders' equity: net income (loss) available to MetLife, Inc.'s
common shareholders divided by MetLife, Inc.'s average common stockholders' equity.
•Adjusted return on MetLife, Inc.'s common stockholders' equity: adjusted earnings available to
common shareholders divided by MetLife, Inc.'s average adjusted common stockholders' equity.
•Adjusted return on MetLife, Inc.'s common stockholders' equity, excluding total notable items:
adjusted earnings available to common shareholders, excluding total notable items, divided by
MetLife, Inc.'s average adjusted common stockholders' equity, excluding total notable items.
The above measures represent a level of equity that excludes most components of AOCI, such as
unrealized investment gains (losses), net of related offsets, and future policy benefits discount rate
remeasurement gains (losses), as well as the impact of certain ceded reinsurance-related embedded
derivatives, as these amounts are primarily driven by market volatility.
Expense ratio, direct expense ratio, adjusted expense ratio and related measures
•Expense ratio: other expenses, net of capitalization of DAC, divided by premiums, fees and other
revenues.
•Direct expense ratio: direct expenses divided by adjusted premiums, fees and other revenues. Direct
expenses are comprised of employee-related costs, third-party staffing costs, and general and
administrative expenses.
•Direct expense ratio, excluding total notable items related to direct expenses and PRT: direct
expenses, excluding total notable items related to direct expenses, divided by adjusted premiums,
fees and other revenues, excluding PRT.
•Adjusted expense ratio: adjusted other expenses, net of adjusted capitalization of DAC, divided by
adjusted premiums, fees and other revenues.
•Adjusted expense ratio, excluding total notable items related to adjusted other expenses and PRT:
adjusted other expenses, net of adjusted capitalization of DAC, excluding total notable items related
to adjusted other expenses, divided by adjusted premiums, fees and other revenues, excluding PRT.
Assets Under Management ("AUM"):
•Total Assets Under Management ("Total AUM") is comprised of MIM GA AUM plus Institutional Client
AUM (each, as defined below).
•MIM General Account AUM ("MIM GA AUM") is used by MetLife to describe the portion of GA AUM
(as defined below) that MetLife Investment Management, LLC and certain of its affiliates ("MIM")
manages or advises.
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•General Account AUM ("GA AUM") is used by MetLife to describe assets in its general account
("GA") investment portfolio. GA AUM is stated at estimated fair value and is comprised of GA total
investments, the portion of the GA investment portfolio classified within assets held-for-sale, cash
and cash equivalents, and accrued investment income on such assets, and excludes policy loans,
certain contractholder-directed equity securities, fair value option securities, mortgage loans
originated for third parties, assets subject to ceded reinsurance arrangements with third parties and
joint ventures, and certain other invested assets. Mortgage loans and real estate and real estate joint
ventures included in GA AUM (at net asset value, net of deduction for encumbering debt) have been
adjusted from carrying value to estimated fair value. Classification of GA AUM by sector is based on
the nature and characteristics of the underlying investments which can vary from how they are
classified under GAAP. Accordingly, the underlying investments within certain real estate and real
estate joint ventures that are primarily commercial mortgage loans (at net asset value, net of
deduction for encumbering debt) have been reclassified to exclude them from real estate and real
estate joint ventures and include them as commercial mortgage loans.
•Institutional Client AUM is comprised of SA AUM plus Reinsurance AUM plus TP AUM (each, as
defined below). MIM manages or advises Institutional Client AUM in accordance with client
guidelines contained in each investment advisory agreement.
◦Separate Account AUM ("SA AUM") is comprised of separate account investment portfolios, which
are managed or advised by MIM and included in MetLife, Inc.'s consolidated financial statements
at estimated fair value, as well as accrued investment income on such assets.
◦Reinsurance AUM is comprised of GA assets subject to ceded reinsurance arrangements with
third parties and joint ventures, which are managed or advised by MIM and are generally included
in MetLife, Inc.'s consolidated financial statements at estimated fair value, as well as accrued
investment income on such assets.
◦Third-Party AUM ("TP AUM") is comprised of non-proprietary assets managed or advised by MIM
on behalf of unaffiliated/third-party clients, which are stated at estimated fair value, as well as
accrued investment income on such assets. Such non-proprietary assets are owned by
unaffiliated/third-party clients and, accordingly, are generally not included in MetLife, Inc.'s
consolidated financial statements.
•Asia General Account AUM ("Asia GA AUM") is used by MetLife to describe assets in its Asia GA
investment portfolio. Asia GA AUM is stated at estimated fair value and is comprised of Asia GA total
investments, the portion of the Asia GA investment portfolio classified within assets held-for-sale,
cash and cash equivalents, and accrued investment income on such assets, and excludes policy
loans, certain contractholder-directed equity securities, fair value option securities, mortgage loans
originated for third parties, assets subject to ceded reinsurance arrangements with third parties and
joint ventures, and certain other invested assets. Mortgage loans and real estate and real estate joint
ventures included in Asia GA AUM (at net asset value, net of deduction for encumbering debt) have
been adjusted from carrying value to estimated fair value. At the segment level, intersegment
balances (intercompany activity, primarily related to investments in subsidiaries, that eliminate at the
MetLife consolidated level) are excluded from Asia GA AUM.
Asia GA AUM (at amortized cost) excludes the following adjustments: (i) unrealized gain (loss) on
investments carried at estimated fair value and (ii) adjustments from carrying value to estimated fair
value on mortgage loans and real estate and real estate joint ventures. Asia GA AUM (at amortized
cost) is presented net of related allowance for credit loss.
Other items
The following additional information is relevant to an understanding of MetLife's performance:
•Statistical sales information:
•Group Benefits: calculated using 10% of single premium deposits and 100% of annualized full-
year premiums and fees from recurring premium policy sales of all products.
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•RIS: calculated using 10% of single premium contracts, on and off-balance sheet deposits, and
the contract value for new U.K. longevity reinsurance contracts, and 100% of annualized full-year
premiums and fees only from recurring premium policy sales of specialized benefit resources and
corporate-owned life insurance.
•Asia, Latin America and EMEA: calculated using 10% of single premium deposits (mainly from
retirement products such as variable annuity, fixed annuity and pensions), 20% of single premium
deposits from credit insurance and 100% of annualized full-year premiums and fees from
recurring-premium policy sales of all products (mainly from risk and protection products such as
individual life, accident & health and group).
Sales statistics do not correspond to revenues under GAAP, but are used as relevant measures of
business activity.
•Volume growth, where cited, represents the change in certain measures of our segment results,
including adjusted earnings, attributable to business growth, applying a model in which certain
margins and factors are held constant, the most significant of which are underwriting margins,
investment margins, changes in equity market performance, expense margins and the impact of
changes in foreign currency exchange rates.
•PRT includes U.K. funded reinsurance.
•Institutional net flows reflect Institutional Client AUM total fund additions less withdrawals.
•"Third-party mortgage loan activity" relates to amounts associated with mortgage loans originated
and acquired for third parties, including (i) the related investment returns and expenses which are
passed through to the third-party lenders and (ii) the corresponding mortgage loan assets.
•We refer to observable forward yield curves as of a particular date in connection with making our
estimates for future results. The observable forward yield curves at a given time are based on
implied future interest rates along a range of interest rate durations. This includes the 10-year U.S.
Treasury rate which we use as a benchmark rate to describe longer-term interest rates used in our
estimates for future results.
•Notable items reflect the unexpected impact of events that affect MetLife's results, but that were
unknown and that MetLife could not anticipate when it devised its business plan. Notable items also
include certain items regardless of the extent anticipated in the business plan, to help investors have
a better understanding of MetLife's results and to evaluate and forecast those results. Notable items
represent a positive (negative) impact to adjusted earnings available to common shareholders.
•Holding company cash and liquid assets are held by MetLife, Inc. collectively with other MetLife
holding companies and include cash and cash equivalents, short-term investments and publicly
traded securities excluding assets that are pledged or otherwise committed. Assets pledged or
otherwise committed include amounts received in connection with securities lending, repurchase
agreements, derivatives, regulatory deposits, the collateral financing arrangement, funding
agreements and secured borrowings, as well as amounts held in the closed block.
•MetLife uses a measure of free cash flow to facilitate an understanding of its ability to generate cash
for reinvestment into its businesses or use in non-mandatory capital actions. MetLife defines free
cash flow as the sum of cash available at MetLife's holding companies from dividends from operating
subsidiaries, expenses and other net flows of the holding companies (including capital contributions
to subsidiaries), and net contributions from debt to be at or below target leverage ratios. This
measure of free cash flow is prior to capital actions, such as common stock dividends and
repurchases, debt reduction and mergers and acquisitions. Free cash flow should not be viewed as
a substitute for net cash provided by (used in) operating activities calculated in accordance with
GAAP. The free cash flow ratio is typically expressed as a percentage of annual adjusted earnings
available to common shareholders.
Page 15 of 26
Forward-Looking Statements
This news release may contain or incorporate by reference information that includes or is based upon
forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements give expectations or forecasts of future events and do not relate strictly to
historical or current facts. They use words and terms such as "anticipate," "are confident," "assume,"
"believe," "continue," "could," "estimate," "expect," "if," "intend," "likely," "may," "plan," "potential," "project,"
"should," "target," "will," "would," and other words and terms of similar meaning or that are otherwise tied
to future periods or future performance, in each case in all derivative forms. They include statements
relating to strategy, goals and expectations concerning our market position, future operations, margins,
profitability, capital expenditures, liquidity and capital resources and other financial and operating
information. By their nature, forward-looking statements: speak only as of the date they are made; are not
statements of historical fact or guarantees of future performance; and are subject to risks, uncertainties,
assumptions or changes in circumstances that are difficult to predict or quantify. Our expectations, beliefs
and projections are expressed in good faith and we believe there is a reasonable basis for them.
However, there can be no assurance that management's expectations, beliefs and projections will result
or be achieved and actual results may vary materially from what is expressed in or indicated by the
Metlife Inc. published this content on February 04, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on February 04, 2026 at 22:08 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]