MetLife, Inc.

MetLife reported net income of $705 million, or $1.09 per share, and adjusted earnings of approximately $1.6 billion, or $2.43 per share. Adjusted earnings increased 15% year over year, and adjusted EPS increased 20%; adjusted earnings were up 14% on a constant-currency basis. Adjusted premiums, fees and other revenues excluding pension risk transfers increased 5% year over year, and sales rose 7%. Adjusted ROE was 17%, direct expense ratio was 12.1%, and variable investment income was $231 million pretax. By segment, adjusted earnings were: Group Benefits $503 million (+25%), RIS $377 million (+2%), Asia $420 million (+21% reported, +25% constant currency), Latin America $268 million (+15% reported, +4% constant currency), EMEA $108 million (+8% reported, +11% constant currency), and MIM $57 million (+6%). For guidance, management said the direct expense ratio is on track to beat the 12.1% 2026 target; MIM expects full-year adjusted earnings of $240 million to $280 million, likely toward the low end; RIS retained liability exposures grew 3% year over year and management still expects full-year growth of 3% to 5%; and Japan’s initial economic solvency ratio is now expected at the top end of a 170% to 190% range. The company ended Q2 with $3.4 billion of cash and liquid assets at holding companies, repurchased about $700 million of common shares in the quarter, and announced a new $3 billion share repurchase authorization.

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 retirement/spread businesses. He highlighted that adjusted earnings rose across every segment, underwriting was strong, sales grew broadly, and the company is using capital both to fund growth and return excess to shareholders. He also said AI is becoming a structural advantage through productivity and customer-service gains, while governance and return discipline remain central.

John McCallion emphasized broad-based earnings growth, favorable underwriting, disciplined expenses, and prudent capital deployment. He pointed to adjusted EPS up 20%, adjusted ROE of 17%, and a 12.1% direct expense ratio that he said keeps the company on track to beat the 2026 target; he also noted the direct expense ratio absorbed roughly 50 basis points of PineBridge impact. On capital, he said MetLife had $3.4 billion of cash and liquid assets at holding companies, returned about $1.1 billion to shareholders in Q2, repurchased about $225 million more shares in July, and maintained a stable outlook on credit and hedging performance.

Analysts asked about M&A priorities, PRT market softness, mortality trends, Japan sales momentum, interest-rate-driven portfolio repositioning, private equity allocation, and group growth. Management said M&A focus remains on asset management and group adjacencies, with a high discipline bar; on PRT, it called the market lumpy but said the second-half pipeline is stronger and the full-year retained balance growth outlook remains 3% to 5%. On mortality, management said working-age mortality improvements have been stronger than older-age trends, but RIS results are tracking expectations and group mortality should moderate gradually rather than sharply. For Japan and Asia, management said distribution scale, product innovation, and execution are driving sales strength, while higher rates may help over time but do not create a quick portfolio change.