MetLife, Inc. · NYSE:MET
MetLife — Q3 2024 Earnings Presentation
36 slides from MetLife's earnings presentation, 2024
Slide 1: 3Q24 Investor Presentation
MetLife MetLife 2Q24Investor 2Q24 3Q24 InvestorPresentation Presentation
Slide 2: MetLife investment thesis
MetLife investment thesis Our diverse set of market leading businesses, guided by an all-weather strategy, drives consistent performance across market cycles and positions MetLife for strong long-term returns to shareholders Consistent Strategic Execution Differentiated Growth Deploy capital and Mod
Slide 3: Market-leading, diversified global insurer
Market-leading, diversified global insurer Growing and established markets around the world MetLife at a Glance1 Diversified by Geography and Business 156 years of operation $609.3 billion 2023 Adjusted Earnings5,6 Total Assets Under Management (AUM)2 $58 billion MetLife ~45,000 employees Market cap
Slide 4: Long-term value creation
Long-term value creation Delivering on key financial commitments while creating shareholder value Execution on key Next Horizon targets: Expect to exceed Expect to exceed Increased target Deployed new target to generate target to free up by 100 basis points business capital of and achieved new $20 B
Slide 5: Adjusted earnings snapshot
Adjusted earnings snapshot EPS dampened by lower private equity returns, business fundamentals remain strong Adjusted Earnings ex. Total Notable Items % % 3Q24 3Q23 FY23 FY22 ($ in millions, except per share data) Change Change Group Benefits $431 $483 (11%) $1,628 $1,332 +22% Retirement & Income So
Slide 6: At a glance
At a glance Diversified set of businesses and product offerings Retirement & Group Benefits Asia Latin America EMEA Income Solutions Provides financial products and Provides funding and financing Diverse set of product offerings: Serving almost 30 million customers EMEA is MetLife’s most diverse ser
Slide 7: Group Benefits
Group Benefits1 Recognized leader in Employee Benefits and growing faster than the market – Largest market share in National Accounts, second largest in Regional market ($ in millions) 3Q24 3Q23 % Change FY23 FY22 % Change Overview3 Provides financial products and services to Product offerings: Adju
Slide 8: Retirement & Income Solutions (RIS)
Retirement & Income Solutions (RIS)1 A market leader with well-diversified set of Institutional Retirement businesses ($ in millions) 3Q24 3Q23 % Change FY23 FY22 % Change Overview Provides funding and financing solutions that help institutional Adjusted Earnings2 $368 $409 (10%) $1,647 $1,556 +6% c
Slide 9: Asia
Asia1 Achieving disciplined growth through a diversified and differentiated business model – A market leader in Japan, well-positioned to win across both mature and growth markets Overview3 % % ($ in millions) 3Q24 3Q23 Change FY23 FY22 Change Diverse set of product offerings: #3 multinational prote
Slide 10: Latin America
Latin America1 #1 life insurer2 in the region – Competitive positioning, strength of franchise and innovative digital capabilities accelerating growth % % Overview4 ($ in millions) 3Q24 3Q23 FY23 FY22 Change Change Serving almost 30 million customers across Mexico, Chile, Brazil, Colombia, and Urugu
Slide 11: Europe, the Middle East and Africa (EMEA)
Europe, the Middle East and Africa (EMEA)1 Geographically diverse set of market-segmented protection businesses focused on cash generation Overview3 % % ($ in millions) 3Q24 3Q23 Change FY23 FY22 Change EMEA is MetLife’s most diverse region, Leading provider of Adjusted Earnings2 $75 $70 +7% $247 $2
Slide 12: MetLife Holdings (MLH) and Corporate & Other (C&O)
MetLife Holdings (MLH)1 High quality legacy block; cash generation supports EPS accretion ($ in millions) 3Q24 3Q23 % Change FY23 FY22 % Change Overview Key Highlights3 Adjusted MetLife Holdings represents MetLife’s • Contributed 11% of total company adjusted earnings $170 $206 (17%) $731 $1,005 (27
Slide 13: High-quality, well-diversified investment portfolio
High-quality, well-diversified investment portfolio1 Disciplined asset-liability management for resiliency across market cycles General Account AUM2 Corporate and Foreign Government Bond Portfolio 2.2% Diversification 3.6% 3.9% 5.5% 6.0% U.S. Corporate 22.5% Foreign Corporate 8.0% 43.0% 32.9% $195.6
Slide 14: Strong capital, liquidity and ratings
Strong capital, liquidity and ratings Our robust balance sheet gives us the financial flexibility to weather storms and take advantage of market opportunities Holding Company Cash1 Capital ($ in billions) • Share repurchases of ~$0.8 billion in 3Q24 and $3.1 billion in FY23 ‒ ~$130 million shares re
Slide 15: Value of new business (VNB)
Value of new business (VNB)1 Capital deployed toward organic growth at attractive internal rates of return ($ in billions) $3.8 $3.7 $3.6 $3.2 $2.8 $2.6 $2.3 $1.9 $1.9 Capital Deployed $1.8 Value of New Business 2019 2020 2021 2022 2023 Internal Rate of 15% 17% 17% 17% 19% Return (IRR) 7 6 6 6 5 Pay
Slide 16: Consistent dividend increases & return of capital
Consistent dividend increases & return of capital Strong track record and commitment of returning excess capital to shareholders Annualized Common Stock Dividends1 +9% Capital Returned to Shareholders ($ per share) CAGR2 ($ in billions) $2.08 $2.00 $6.0 $1.92 $1.84 $1.76 $1.68 $1.60 $1.60 $4.9 $1.50
Slide 17: Living our purpose
Living our purpose Sustainability1 at MetLife Select highlights2: Environment Equity & Economic Health & & Climate Inclusivity Growth Well-Being Established 2030 $1B+ $420B+ Certified Great interim targets to in MetLife Foundation MetLife General Place to Work® in guide MetLife’s Net giving since 19
Slide 18: MetLife's executive leadership team
MetLife’s executive leadership team An experienced, diverse, and engaged set of insurance and financial services leaders Michel Khalaf President & Chief Executive Officer Over 30 years in the industry Ramy Tadros Regional President, U.S. Business Eric Clurfain Head of MetLife Holdings Regional Presi
Slide 19: MetLife key investment points
MetLife key investment points Market leading businesses positioned for growth, returns, and consistency Compounding Leveraging Delivering growth to generate our competitive strong and sustainable consistent free cash advantages to drive long-term value flow in highest higher returns and for our shar
Slide 20: Appendix
Appendix
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,” “will,
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) 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 measur
Slide 24: 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 most recent period
Slide 25: 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 26: 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 27: 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 28: Reconciliation of Net Income 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 29: Reconciliation of Net Income to Adjusted Earnings
Reconciliation of Net Income (Loss) Available to MetLife, Inc.'s Common Shareholders to Adjusted Earnings Available to Common Shareholders FY23 FY22 Earnings Per Earnings Per Weighted Weighted Average Average Common Common Share Diluted1 Share Diluted1 (In millions, except per share data) Net Income
Slide 30: Reconciliation to Adjusted Earnings, Excluding Total Notable Items
Reconciliation to Adjusted Earnings Available to Common Shareholders, Excluding Total Notable Items 3Q24 Group Latin MetLife Corporate Benefits1 RIS1 Asia America EMEA Holdings1 & Other1 (In millions) Adjusted earnings available to common shareholders $ 373 $ 472 $ 306 $ 221 $ 70 $ 182 $ (249) Less:
Slide 31: Reconciliation to Adjusted Earnings, Excluding Total Notable Items
Reconciliation to Adjusted Earnings Available to Common Shareholders, Excluding Total Notable Items FY23 Group Latin MetLife Corporate Benefits RIS Asia America EMEA Holdings & Other (In millions) Adjusted earnings available to common shareholders $ 1,655 $ 1,708 $ 1,282 $ 840 $ 265 $ 733 $ (958) Le
Slide 32: Equity Details
Equity Details 3Q24 3Q23 FY23 FY22 (In millions) Equity Details Total MetLife, Inc.'s stockholders' equity $ 30,885 $ 25,658 $ 30,015 $ 29,881 Less: Preferred stock 3,818 3,818 3,818 3,818 MetLife, Inc.'s common stockholders' equity 27,067 21,840 26,197 26,063 Less: Net unrealized investment gains (
Slide 33: Book Value and Return on Equity
Book Value and Return on Equity 3Q24 3Q23 FY23 FY22 Book Value1 Book value per common share $ 39.02 $ 29.34 $ 35.85 $ 33.45 Less: Net unrealized investment gains (losses), net of income tax (16.62) (35.66) (19.60) (27.07) Future policy benefits discount rate remeasurement gain (losses), net of incom
Slide 34: Adjusted Premiums, Fees and Other Revenues
Adjusted Premiums, Fees and Other Revenues 3Q24 3Q23 FY23 FY22 (In millions) RIS Adjusted premiums, fees and other revenues $ 1,579 $ 2,478 $ 8,832 $ 14,314 Less: PRT 529 1,461 5,324 12,219 Adjusted premiums, fees and other revenues excluding PRT $ 1,050 $ 1,017 $ 3,508 $ 2,095 Latin America Adjuste
Slide 35: 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 FY23 FY22 (In billions, except ratios) MetLife, Inc. (parent company only) net cash provided by operating activities $ 4.2 $ 4.4 Adjustments from net cash provided by ope
Slide 36: iy MetLife
iy MetLife