Metlife, Inc. · NYSE:MET
Metlife — Q4 2024 Earnings Presentation
34 slides from Metlife's earnings presentation, Feb 6, 2025
Slide 1: 4Q24 Supplemental Slides and Outlook
4Q24 Supplemental Slides and Outlook1 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 Adjusted earnings, ex. total notable items 4 Variable investment income (VII) 5 Direct expense ratio 7 Cash & capital 8 Outlook 10 Appendix 15 2
Slide 3: Net income (loss) to adjusted earnings
Net income (loss) to adjusted earnings 4Q24 FY24 (post-tax) $ in millions $ per share1 $ in millions $ per share1 Net Income (Loss) $1,239 $1.78 $4,226 $5.94 Less: Net Investment Gains (Losses) (246) (0.35) (935) (1.31) Net Derivative Gains (Losses)2 (713) (1.02) (1,281) (1.80) Market Risk Benefit R
Slide 4: Adjusted earnings, ex. total notable items, by segment & C&O
Adjusted earnings, ex. total notable items, by segment & C&O % Change Key Drivers1 ($ in millions - except per share data) 4Q24 4Q23 % Change (Constant Rate) Favorable Unfavorable Group Benefits $416 $466 (11%) Underwriting Margins RIS 386 421 (8%) Investment Margins; Volume Growth Underwriting Marg
Slide 5: 2024 VII below guidance driven by lower real estate returns
2024 VII below guidance1 driven by lower real estate returns ($ in millions - pre-tax) $1,013 $419 $260 $298 $293 $162 $0 1Q24 2Q24 3Q24 4Q24 FY23 FY24 Private Equity Other2 1 Quarterly target VII range of $375 million, based on full year 2024 guidance of ~ $1.5 billion. 2 Other includes Real Estate
Slide 6: VII by segment and C&O
VII by segment and C&O ($ in millions - post-tax1) 1Q24 2Q24 3Q24 4Q24 FY24 Group Benefits $4 $3 $2 $1 $10 RIS 73 64 50 71 258 Asia 56 99 44 121 320 Latin America 1 2 8 4 15 EMEA — — — — — MetLife Holdings 55 46 29 29 159 Corporate & Other 16 21 (5) 6 38 Total Variable Investment Income $205 $235 $1
Slide 7: FY24 direct expense ratio of 12.1%, below 12.3% annual target
FY24 direct expense ratio1 of 12.1%, below 12.3% annual target 13.1% 12.4% 12.2% 12.3% 12.2% 12.3% Annual 12.0% 12.1% Target 11.9% 11.9% 11.7% 1Q23 1Q24 2Q23 2Q24 3Q23 3Q24 4Q23 4Q24 FY23 FY24 1 Direct expense ratio, excluding total notable items related to direct expenses and pension risk transfers
Slide 8: Cash & capital
Cash & capital Holding Company Cash1 Capital ($ in billions) • Share repurchases of ~$0.4 billion in 4Q24 and ~$3.2 billion in FY24 – ~$470 million shares repurchased in January 2025 • Average 2023 - 2024 free cash flow ratio2 of 72% • 2024 Combined NAIC Risk-Based Capital (RBC) ratio3 above 360% ta
Slide 9: Beat all of our Next Horizon commitments
Beat all of our Next Horizon commitments Accretive Strong Free Positive Operating Returns Cash Flow Leverage Generate ~$20B of Create ~$1B additional Deliver 12–14% distributable cash2 capacity to accelerate Adjusted ROE1 over 5 years growth over 5 years 15.2% 3 $20.7B $1.2B FY 2024 2020-2024 2020-2
Slide 10: Outlook
Outlook Wi! MetLife
Slide 11: Overview
Overview • U.S. Dollar strengthens in 2025 vs 2024 Macro Assumptions • Long-term interest rates stable with yield curve steepening • S&P 500 annual return of 5% Near-term1 targets: • Double-digit adjusted EPS growth • Adjusted return on equity2 of 15-17% Near-Term1 Targets and • Free cash flow ratio
Slide 12: VII average asset balances and key drivers
VII average asset balances and key drivers Average Asset Balance Key Drivers ($ in billions) • Near-term annual return assumptions: – Private equity: 9-11% $18.9 $18.9 $19.0 – Real estate and other funds: 7-9% • VII includes prepayment fees on fixed maturity securities and mortgage loans $14.3 $14.2
Slide 13: Near-Term Guidance
Near-Term Guidance • Adjusted premiums, fees and other revenues (PFOs) expected to grow annually 4-7% • Group Life mortality ratio of 84.5% in 2024; target of 84-89%1 Group Benefits • Group Non-Medical Health interest adjusted benefit ratio of 72.2% in 2024; target of 69-74%1 • Incremental adjusted
Slide 14: Near-Term Guidance
Near-Term Guidance1 • Sales growth of mid-to-high single-digits • General account assets under management2 to grow at mid single-digits Asia • Adjusted earnings in 2025 to grow mid single-digits on a constant currency basis and low single-digits on a reported basis due to FX headwinds • Adjusted ear
Slide 15: Appendix
Appendix iif MetLife
Slide 16: High quality commercial mortgage loan (CML) portfolio
High quality commercial mortgage loan (CML) portfolio1 • Concentrated in high-quality assets and in larger, primary markets LTV and DSCR Matrix $49.0 Billion • 69% average Loan-to-Value (LTV) Ratio and 2.1x average Debt LTV >1.2x 1.0-1.2x <1.0x Total Service Coverage Ratio (DSCR) <65% 45.9% 2.4% 1.6
Slide 17: Key Sensitivities
Key Sensitivities • 1% change in Group Life mortality ratio translates to ~$75 million of adjusted earnings1 Group Benefits • 1% change in Group Non-Medical Health interest adjusted benefit ratio translates to ~$90 million of adjusted earnings1 Impact on $ in millions Change Adjusted Earnings1 +10 b
Slide 18: Key Sensitivities
Key Sensitivities Annual Impact on Regulatory $ in millions Change Adjusted Earnings Ratios (%) Parallel shift in yield curve: Asia Japan - UST1 +/-10 bps $1-2 10-15% Japan - JPY1 +/-10 bps $1-2 5-10% Korea2 +/-10 bps $0-1 0-5% Annual Impact on $ in millions Change Adjusted Earnings Latin America Me
Slide 19: Interest Rates: Base vs. Declining Rate Scenario
Interest Rates: Base vs. Declining Rate Scenario 12/31/24 12/31/25 12/31/26 12/31/27 Declining Declining Declining Declining Base Rate Base Rate Base Rate Base Rate SOFR1 4.49% 3.99% 3.90% 3.40% 3.87% 3.37% 3.93% 3.43% 10-Year U.S. Treasury1 4.57% 4.07% 4.69% 4.19% 4.78% 4.28% 4.88% 4.38% 30-Year U.
Slide 20: Interest Rates: Base vs. Rising Rate Scenario
Interest Rates: Base vs. Rising Rate Scenario 12/31/24 12/31/25 12/31/26 12/31/27 Rising Rising Rising Rising Base Rate Base Rate Base Rate Base Rate SOFR1 4.49% 4.99% 3.90% 4.40% 3.87% 4.37% 3.93% 4.43% 10-Year U.S. Treasury1 4.57% 5.07% 4.69% 5.19% 4.78% 5.28% 4.88% 5.38% 30-Year U.S. Treasury1 4.
Slide 21: 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,” “targe
Slide 22: 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 23: Explanatory Note on Non-GAAP and Other Financial Information (Continued)
Explanatory Note on Non-GAAP and Other Financial Information (Continued) 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 ra
Slide 24: 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 25: 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 adjusted common stockholders’ equity: total MetLife, Inc.’s common stockholders’ equity, excluding unrealized investment gains (losses), net of related offsets, defe
Slide 26: 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 27: Reconciliation of Net Income (Loss) to Adjusted Earnings
Reconciliation of Net Income (Loss) Available to MetLife, Inc.’s Common Shareholders to Adjusted Earnings Available to Common Shareholders FY24 4Q24 4Q23 Earnings Per Earnings Per Earnings Per Weighted Weighted Weighted Average Average Average Common Common Common Share Diluted1 Share Diluted1 Share
Slide 28: Reconciliation to Adjusted Earnings, Excluding Total Notable Items
Reconciliation to Adjusted Earnings Available to Common Shareholders, Excluding Total Notable Items 4Q24 Retirement Group & Income Latin MetLife Corporate Benefits1 Solutions1 Asia America EMEA Holdings1 & Other1 (In millions) Adjusted earnings available to common shareholders $ 416 $ 386 $ 443 $ 20
Slide 29: Reconciliation of Premiums, Fees and Other Revenues to Adjusted
Reconciliation of Premiums, Fees and Other Revenues to Adjusted Premiums, Fees and Other Revenues 1Q23 2Q23 3Q23 4Q23 FY23 1Q24 2Q24 3Q24 4Q24 FY24 (In millions) Premiums, fees and other revenues $ 11,517 $ 13,587 $ 13,170 $ 13,687 $ 51,961 $ 11,975 $ 13,547 $ 12,523 $ 14,475 $ 52,520 Less: Adjustme
Slide 30: Expense Detail and Ratios
Expense Detail and Ratios 1Q24 2Q24 3Q24 4Q24 FY24 (In millions, except ratio data) Reconciliation of Capitalization of DAC to Adjusted Capitalization of DAC Capitalization of DAC $ (740) $ (683) $ (691) $ (719) $ (2,833) Less: Divested businesses — — — — — Adjusted capitalization of DAC $ (740) $ (
Slide 31: Expense Detail and Ratios
Expense Detail and Ratios 1Q23 2Q23 3Q23 4Q23 FY23 (In millions, except ratio data) Reconciliation of Capitalization of DAC to Adjusted Capitalization of DAC Capitalization of DAC $ (718) $ (729) $ (742) $ (728) $ (2,917) Less: Divested businesses — — — — — Adjusted capitalization of DAC $ (718) $ (
Slide 32: Equity Details
Equity Details FY24 FY23 (In millions) Equity Details Total MetLife, Inc.'s stockholders' equity $ 27,445 $ 30,015 Less: Preferred stock 3,818 3,818 MetLife, Inc.'s common stockholders' equity 23,627 26,197 Less: Net unrealized investment gains (losses), net of income tax (19,402) (14,506) Deferred
Slide 33: Condensed Reconciliation of Operating Cash Flow to Free Cash Flow
Condensed Reconciliation of Net Cash Provided by Operating Activities of MetLife, Inc. to Free Cash Flow of All Holding Companies FY24 FY23 (In billions, except ratios) MetLife, Inc. (parent company only) net cash provided by operating activities $ 4.7 $ 4.2 Adjustments from net cash provided by ope
Slide 34: MetLife
iy’ MetLife