MetLife, Inc.

MetLife reported adjusted earnings of approximately $1.6 billion, or $2.43 per share, with adjusted earnings up 15% year over year and adjusted EPS up 20%. Net income was $705 million, or $1.09 per share. Adjusted premiums, fees and other revenues excluding pension risk transfers increased 5% year over year, sales rose 7%, variable investment income was $231 million pretax, and adjusted ROE was 17%. The direct expense ratio was 12.1%, in line with the full-year target, and holding company cash and liquid assets were $3.4 billion, within the $3 billion to $4 billion buffer. For guidance, management said the company remains on track to beat its 2026 direct expense ratio target of 12.1%, RIS total investment spread was 97 basis points with core spread at 100 basis points and expected to remain around 95 to 100 basis points, and MIM is expected to land within its full-year adjusted earnings guidance of $240 million to $280 million, likely toward the low end. Japan ESR is now expected at the top end of a 170% to 190% range for the fiscal year ended March 31, 2026.

Michel Khalaf framed the quarter as evidence that MetLife’s “New Frontier” strategy is working, emphasizing two complementary earnings engines: capital-light businesses and capital-driven businesses. He said the model is becoming more balanced, resilient and able to perform across market environments, and highlighted broad-based earnings growth, strong underwriting and continued investment in growth while returning excess capital. His tone was confident and upbeat, with repeated references to repeatability, discipline and long-term value creation.

John McCallion focused on execution, margins and capital strength. He cited adjusted EPS growth of 20%, adjusted ROE of 17%, net income of $705 million, and a direct expense ratio of 12.1%, saying MetLife is on track to beat its 2026 expense target. He also highlighted $3.4 billion of holding company cash and liquid assets, approximately $1.1 billion returned to shareholders in the quarter, another $225 million of repurchases in July, and $16.4 billion of estimated total statutory adjusted capital for U.S. companies. On asset management, he noted total AUM of $748 billion and said MIM’s full-year earnings should be within the $240 million to $280 million guide, likely at the low end.

Analysts pressed on M&A, Group Life mortality, PRT market conditions, Japan sales, interest-rate effects on spreads, PE allocation, and nonmedical health trends. Management said M&A remains focused on asset management and selective adjacent capabilities in Group, with a high discipline bar, and would not comment on market speculation. On mortality, management said Group Life improvement is likely to normalize gradually over years, while RIS mortality is broadly in line with pricing and reserving; on PRT, they said the market is lumpy but the second half pipeline is stronger and RIS remains on track for 3% to 5% retained balance growth. They also said Japan and broader Asia are benefiting from scale, product innovation and execution, while RIS core spreads should stay around 95 to 100 basis points and higher rates are a gradual tailwind rather than a quick portfolio reset.