01—Abstract
Summary
Summary of the 10-K filed February 19, 2026. Cited figures are marked; the original filing is the authoritative source.
MetLife's 2025 Form 10-K shows a company in the midst of a strategic pivot toward asset management and group benefits, with steady adjusted earnings but compressed GAAP net income.
Net income available to common shareholders fell to $3.2 billiona in 2025 from $4.2 billion in 2024, driven primarily by unfavorable market risk benefit remeasurement and derivative results, while adjusted earnings available to common shareholders rose 2.5% to $5.9 billion. Management's key operating metrics point to resilience: adjusted premiums, fees and other revenues grew 10% to $57.4 billion, led by pension risk transfer and U.K. longevity reinsurance growth in RIS, and Asia and Latin America contributed strongly to segment earnings. The filing also marks a structural change.
Under the New Frontier strategy, MetLife reorganized into six segments, adding MetLife Investment Management as a reportable segment and folding MetLife Holdings into Corporate & Other, and it closed the roughly $885 millionb cash acquisition of PineBridge Investments on December 30, 2025. Capital return remained substantial, with about $4.4 billion returned to shareholders in 2025, a $2.1 billion repurchase authorization remaining, and free cash flow of $4.9 billion across all holding companies, equal to 82% of adjusted earnings. Management maintained its 2026 targets of 15%-17% adjusted ROE, double-digit adjusted EPS growth, and a $25 billion five-year free cash flow goal for 2025-2029.
Risks investors should weigh include a 2025 effective tax rate of 27% (versus 21% in 2024), a $100 millionc Mexican value-added tax charge, the forthcoming VM-22 principle-based reserving requirement for non-variable annuities, sensitivity of earnings to interest rate scenarios, a $2.2 billion increase in long-term debt and subordinated debt, and a large and growing asbestos liability. Net investment income rose to $22.6 billion, and the company's insurer financial strength ratings remained in the AA- to A+ range across major agencies.
02—Key points
Key Highlights
- GAAP net income available to common shareholders declined to $3.2 billion ($4.71 diluted EPS) from $4.2 billion in 2024, mainly due to market risk benefit and derivative remeasurement swings, while adjusted earnings available to common shareholders rose to $5.9 billion from $5.8 billion.
- Adjusted premiums, fees and other revenues grew 10% to $57.4 billion, driven by pension risk transfer and U.K. longevity reinsurance growth in RIS and strong sales in Latin America.
- The Strategic Reorganization created six reportable segments (Group Benefits, RIS, Asia, Latin America, EMEA, MIM), with MIM now a standalone segment following the $885 million PineBridge acquisition closed December 30, 2025.
- Capital returns totaled about $4.4 billion in 2025 ($2.9 billion in share repurchases and $1.5 billion in common dividends), with $2.1 billion of repurchase authorization remaining at year-end.
- Free cash flow of all holding companies was $4.9 billion, or 82% of adjusted earnings available to common shareholders, within the 65%-75% two-year target range exceeded; management reiterated about $25 billion of free cash flow over 2025-2029.
- The 2025 effective tax rate rose to 27% from 21%, including a $100 million Mexico value-added tax charge and a $61 million tax expense from resolving the 2017-2019 IRS audit.
- Management reaffirmed 2026 targets of 15%-17% adjusted return on equity and double-digit adjusted EPS growth, and expects a $50-60 million Latin America adjusted earnings headwind from the Mexico VAT change.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 19, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $77.08B$70.99B | +8.6% |
| Operating Expenses | $13.86B$13.02B | +6.5% |
| Operating Income | $6.14B$6.00B | +2.4% |
| Interest Expense | $724.00M$738.00M | −1.9% |
| Net Income | $3.40B$4.44B | −23.4% |
| EPS (Basic) | $4.74$5.98 | −20.7% |
| EPS (Diluted) | $4.71$5.94 | −20.7% |
| Shares Outstanding (Basic) | 668.90M706.40M | −5.3% |
| Shares Outstanding (Diluted) | 673.30M711.10M | −5.3% |
05—Questions
Frequently Asked Questions
Why did GAAP net income fall while adjusted earnings rose?
GAAP results are volatile because they include net investment gains and losses, net derivative gains and losses, and market risk benefit remeasurement. In 2025, net derivative losses widened to $1.9 billion and MRB remeasurement gains were smaller than in 2024 as long-term interest rates rose less. Adjusted earnings exclude these market-driven items and grew modestly on volume growth, higher variable investment income, and expense discipline, partly offset by a $219 million unfavorable underwriting variance.
How much capital did MetLife return to shareholders, and how much capacity remains?
In 2025 MetLife repurchased $2.9 billion of common stock and paid $1.5 billion in common dividends, totaling about $4.4 billion. Remaining authorization under the April 2025 program was $2.1 billion at December 31, 2025, not reflecting the 1% excise tax. The company also redeemed its $1.0 billion Series G preferred stock and issued $1.0 billion of 6.350% subordinated debentures.
What is the company's exposure to interest rate changes?
Under the hypothetical 50 basis point scenarios, a declining rate environment would reduce 2026 through 2028 adjusted earnings by about $38 million, $97 million and $138 million, while a rising rate environment would increase them by $44 million, $108 million and $146 million. Interest rate sensitivity of net derivatives and MRB remeasurement moves in the opposite direction, and management points to diversification and ALM hedging as mitigants.
What are the main new regulatory and accounting risks?
The NAIC adopted a principles-based framework for non-variable annuities (VM-22) effective for new issues from January 1, 2026, with a three-year optional implementation period, which could make reserve and capital levels less predictable. The EU Solvency II amendments take effect by January 2027, the EU AI Act applies from August 2026, and Mexico removed a VAT deduction on certain claims expenses starting in 2026. Chile enacted pension reform with competitive bidding expected to begin around 2027.
How strong is the balance sheet and liquidity position?
MetLife held $3.6 billion of cash and liquid assets at the holding companies, within its $3.0-4.0 billion target, and total short-term liquidity of $18.1 billion at the consolidated level. Long-term debt was $14.5 billion and subordinated debt rose to $4.2 billion. Insurer financial strength ratings were AA- or higher from S&P and Fitch for the main U.S. insurers, and the Statement-Based Combined RBC ratio exceeded 350%.
06—Continue