Metlife, Inc. · NYSE:MET
Metlife — Q3 2024 Earnings Presentation
25 slides from Metlife's earnings presentation, Oct 31, 2024
Slide 1: 3Q24 Supplemental Slides
1 3Q24 Supplemental Slides John McCallion Chief Financial Officer and Head of MetLife Investment Management 1 These slides highlight information in MetLife, Inc.'s earnings release, quarterly financial supplement and other prior public disclosures.
Slide 2: Table of contents
Table of contents Topic Page No. Net income (loss) to adjusted earnings 3 Annual actuarial assumption review & other insurance adjustments 4 Adjusted earnings, ex. total notable items, by segment 5 Variable investment income (VII) 6 Investments 8 Direct expense ratio 9 Value of new business 10 Cash
Slide 3: Net income (loss) to adjusted earnings
Net income (loss) to adjusted earnings 3Q24 (post-tax) $ in millions $ per share1 Net Income (Loss) $1,275 $1.81 Less: Net Investment Gains (Losses) (61) (0.09) Net Derivative Gains (Losses)2 605 0.86 Market Risk Benefit Remeasurement Gains (Losses)2 (424) (0.60) Actuarial Assumption Review and Othe
Slide 4: 3Q24 annual actuarial assumption review and other insurance adjustments
3Q24 annual actuarial assumption review and other insurance adjustments Impact Highlights • Group Benefits: – Liability refinement related to an annuity payout feature on a small subset of Group Life portfolio – No ongoing impact • RIS: Favorable impacts from higher mortality in recent years • Asia:
Slide 5: Adjusted earnings, ex. total notable items, by segment
Adjusted earnings, ex. total notable items, by segment % Change Key Drivers1 ($ in millions - except per share data) 3Q24 3Q23 % Change (Constant Rate) Favorable Unfavorable Group Benefits $431 $483 (11%) Underwriting Margins Volume Growth; RIS 368 409 (10%) Investment Margins Underwriting Margins A
Slide 6: 3Q24 VII decline due to lower private equity returns; real estate returns improve
3Q24 VII decline due to lower private equity returns; real estate returns improve1 ($ in millions - pre-tax) $298 $260 $179 $162 $63 $0 3Q23 4Q23 1Q24 2Q24 3Q24 Private Equity Other 1 Quarterly target VII range of $375 million, based on full year 2024 guidance range of ~ $1.5 billion. 6
Slide 7: VII by segment
VII by segment ($ in millions - post-tax1) 3Q23 4Q23 1Q24 2Q24 3Q24 Group Benefits $1 $1 $4 $3 $2 RIS 35 23 73 64 50 Asia 37 10 56 99 44 Latin America 5 4 1 2 8 EMEA — — — — — MetLife Holdings 35 23 55 46 29 Corporate & Other 28 (11) 16 21 (5) Total Variable Investment Income $141 $50 $205 $235 $128
Slide 8: Net investment income: Higher asset growth offset by lower income from interest rate caps
Net investment income: Higher asset growth offset by lower income from interest rate caps Net Investment Income1 Roll Off vs. Reinvestment ($ in billions) 7% $21.3 6.00% $19.7 6% $18.2 $0.4 5.78% $5.7 $1.5 5% 4% 3.78% $19.3 $16.7 $15.6 3% $5.1 $5.1 $0.2 $0.2 2% $4.9 $5.0 1% 2 FY21 FY22 FY23 3Q23 3Q2
Slide 9: 3Q24 direct expense ratio of 11.7%, below 12.3% annual target
3Q24 direct expense ratio1 of 11.7%, below 12.3% annual target 12.3% Annual 12.2% Target 11.9% 11.9% 11.7% FY23 1Q24 2Q24 3Q24 1 Direct expense ratio, excluding total notable items related to direct expenses and pension risk transfers (PRT). 9
Slide 10: Value of new business
Value of new business1 ($ in billions) $3.8 $3.7 $3.6 $3.2 $2.8 $2.6 $2.3 $1.8 $1.9 $1.9 2019 2020 2021 2022 2023 Capital Deployed Value of New Business Internal Rate of Return 15% 17% 17% 17% 19% Payback Period 7 Years 6 Years 6 Years 6 Years 5 Years 1 Excludes MetLife Holdings; Value of New Busine
Slide 11: Cash & capital
Cash & capital Holding Company Cash1 Capital ($ in billions) • Share repurchases of ~$0.8 billion in 3Q24 – ~$130 million shares repurchased in October 2024 • Expected total U.S. Statutory Adjusted Capital2 of $17.6 $5.2 $5.2 billion at 9/30/24, down 2% from 6/30/24 $4.9 $4.4 $4.5 • Expected Japan S
Slide 12: Appendix
Appendix iif MetLife
Slide 13: High quality commercial loans (CML) portfolio
High quality commercial loans (CML) portfolio1 • Concentrated in high quality assets and in larger primary LTV and DSCR Matrix markets $50.5 Billion DSCR • 68% average Loan-to-Value (LTV) Ratio and 2.2x average Debt LTV >1.2x 1.0-1.2x <1.0x Total Service Coverage Ratio (DSCR) <65% 46.2% 2.3% 2.0% 50
Slide 14: Cautionary Statement on Forward-Looking Statements
Cautionary Statement on Forward-Looking Statements The forward-looking statements in this presentation, using words such as “anticipate,” “are confident,” “assume,” “believe,” “continue,” “could,” “estimate,” “expect,” “if,” “intend,” “likely,” “may,” “plan,” “potential,” “project,” “should,” “will,
Slide 15: Explanatory Note on Non-GAAP and Other Financial Information
Explanatory Note on Non-GAAP and Other Financial Information Any references in this presentation (except in this Explanatory Note on Non-GAAP Financial Information and Reconciliations) to: Should be read as, respectively: (i) net income (loss); (i) net income (loss) available to MetLife, Inc.’s comm
Slide 16: Explanatory Note on Non-GAAP and Other Financial Information (Continued)
Explanatory Note on Non-GAAP and Other Financial Information (Continued) 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
Slide 17: Explanatory Note on Non-GAAP and Other Financial Information (Continued)
Explanatory Note on Non-GAAP and Other Financial Information (Continued) Asymmetrical and non-economic accounting adjustments are made to the line items indicated in calculating adjusted earnings: • Net investment income includes earned income on derivatives and amortization of premium on derivative
Slide 18: Explanatory Note on Non-GAAP and Other Financial Information (Continued)
Explanatory Note on Non-GAAP and Other Financial Information (Continued) Return on equity and related measures • Total MetLife, Inc.’s common stockholders’ equity, excluding AOCI other than FCTA: total MetLife, Inc.’s common stockholders’ equity, excluding the net unrealized investment gains (losses
Slide 19: Explanatory Note on Non-GAAP and Other Financial Information (Continued)
Explanatory Note on Non-GAAP and Other Financial Information (Continued) 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. • Retirement and Income So
Slide 20: Reconciliation of Net Income Available to Common Shareholders to Adjusted Earnings
Reconciliation of Net Income (Loss) Available to MetLife, Inc.'s Common Shareholders to Adjusted Earnings Available to Common Shareholders 3Q24 3Q23 Earnings Per Earnings Per Weighted Weighted Average Average Common Common Share Diluted1 Share Diluted1 (In millions, except per share data) Net Income
Slide 21: Reconciliation to Adjusted Earnings, Excluding Total Notable Items
Reconciliation to Adjusted Earnings Available to Common Shareholders, Excluding Total Notable Items 3Q24 Retirement Group & Income Latin MetLife Corporate Benefits1 Solutions1 Asia America EMEA Holdings1 & Other1 (In millions) Adjusted earnings available to common shareholders $ 373 $ 472 $ 306 $ 22
Slide 22: Reconciliation of Net Investment Income to Adjusted Net Investment Income
Reconciliation of Net Investment Income to Adjusted Net Investment Income FY21 FY22 FY23 3Q23 3Q24 (In millions) Net investment income $ 21,395 $ 15,916 $ 19,908 $ 4,825 $ 5,227 Less: Adjustments to net investment income Investment hedge adjustments (895) (976) (1,012) (232) (129) Unit-linked contra
Slide 23: Reconciliation of Premiums, Fees and Other Revenues to Adjusted
Reconciliation of Premiums, Fees and Other Revenues to Adjusted Premiums, Fees and Other Revenues FY23 1Q24 2Q24 3Q24 (In millions) Premiums, fees and other revenues $ 51,961 $ 11,975 $ 13,547 $ 12,523 Less: Adjustments to premiums, fees and other revenues: Asymmetrical and non-economic accounting 2
Slide 24: Expense Detail and Ratios
Expense Detail and Ratios FY23 1Q24 2Q24 3Q24 (In millions, except ratio data) Reconciliation of Capitalization of DAC to Adjusted Capitalization of DAC Capitalization of DAC $ (2,917) $ (740) $ (683) $ (691) Less: Divested businesses — — — — Adjusted capitalization of DAC $ (2,917) $ (740) $ (683)
Slide 25: MetLife
iy’ MetLife