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METLIFE INC 8-K Report, Financial Results (Jul 31, 2024)

Reports
Earnings & Results·Regulation FD·Other Events+1
Filing Date
Filed July 31, 2024
Period End
July 31, 2024
In the record · 2016–202610-K1110-Q328-K249

MET filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 249 current reports (8-K) between 2016 and 2026.

  1. Deal closed8-K · Aug ’17Aug ’17
  2. Leadership change8-K · Jun ’22Jun ’22
  3. Leadership change8-K · Feb ’26Feb ’26

01—Abstract

Summary

Summary of the 8-K filed July 31, 2024. Cited figures are marked; the original filing is the authoritative source.

MetLife reported second-quarter 2024 results on July 31, 2024, showing a sharp rebound in GAAP profitability and solid underlying growth.

Net income available to common shareholders was $912 milliona ($1.28 per diluted share), up from $370 million ($0.48) a year earlier. Adjusted earnings, the company's primary performance measure, rose 9% to $1.6 billion ($2.28 per share, up 18%), with no notable items in the quarter. The improvement in GAAP results was driven mainly by higher adjusted earnings and by the absence of the accounting losses tied to the May 2023 reinsurance transaction that hit the prior-year period.

The quality of the quarter was led by Group Benefits, where adjusted earnings jumped 43% on favorable life underwriting and sales were up 11% year-to-date. Asia (+4%, +8% constant currency), Latin America (+3%, +8%) and EMEA (+10%, +20%) all grew, while Retirement and Income Solutions was roughly flat (-2%) and MetLife Holdings fell 27% as a result of the 2023 reinsurance deal. Net investment income rose 3% to $5.2 billionb on higher interest rates and stronger private equity returns.

Capital and liquidity remained strong: holding company cash and liquid assets were $4.4 billionc, above the $3.0–$4.0 billion target buffer, and the company repurchased about $0.9 billion of stock in the quarter. The headline reported book value per share fell 5% to $33.30, but book value excluding most AOCI, which management emphasizes, declined only 1% to $53.12. Investors should weigh the strong earnings momentum and buybacks against the shrinking share base and the sensitivity of GAAP results to interest rates and currency, reflected in net derivative losses of $508 million and net investment losses of $421 million this quarter.

02—Key points

Key Highlights

  1. Adjusted earnings of $1.6 billion ($2.28 per share) rose 9% (18% per share) year over year, with zero notable items in the quarter.
  2. GAAP net income available to common shareholders of $912 million ($1.28 per share) more than doubled from $370 million, aided by the absence of prior-year reinsurance-related accounting losses.
  3. Group Benefits adjusted earnings grew 43% to $533 million on favorable life underwriting; year-to-date sales were up 11%.
  4. Book value per share fell 5% to $33.30, but book value excluding AOCI (other than FCTA) was $53.12, down only 1%.
  5. Holding company cash and liquid assets of $4.4 billion sit above the $3.0–$4.0 billion target buffer, and about $0.9 billion of shares were repurchased in Q2 2024 (plus ~$270 million in July).
  6. MetLife Holdings adjusted earnings fell 27% to $153 million, reflecting the 2023 reinsurance transaction; RIS was roughly flat at $410 million (-2%).
  7. Adjusted return on equity excluding AOCI other than FCTA rose to 17.3% from 14.6%, and the direct expense ratio improved to 11.9%.

03—Questions

Frequently Asked Questions

  1. Why did GAAP net income more than double year over year?

    Net income available to common shareholders rose to $912 million from $370 million, mainly because adjusted earnings grew 9% and the prior-year quarter carried net losses tied to accounting adjustments from the May 2023 reinsurance transaction. Net investment losses ($421 million) and net derivative losses ($508 million) still weighed on the current quarter.

  2. Is the 5% decline in book value per share a concern?

    The headline decline to $33.30 is largely driven by AOCI, particularly unrealized investment losses from higher interest rates. Book value excluding AOCI other than FCTA, which management emphasizes, was $53.12, down only 1%, and the figure is more representative of underlying equity.

  3. Which business segments drove the quarter?

    Group Benefits (+43% to $533 million) was the standout, driven by favorable life underwriting. Asia (+4%, +8% constant currency), Latin America (+3%, +8%) and EMEA (+10%, +20%) also grew. RIS was roughly flat, and MetLife Holdings declined 27% due to the 2023 reinsurance transaction.

  4. How strong is MetLife's capital and liquidity position?

    Holding company cash and liquid assets were $4.4 billion, above the $3.0–$4.0 billion target buffer. Expected total U.S. statutory adjusted capital was about $18.0 billion, down 2% from March 31, 2024, and the Japan solvency margin ratio was roughly 670%.

  5. What does the filing say about shareholder returns?

    MetLife repurchased approximately $0.9 billion of common stock during the second quarter and about $270 million in July 2024. Common shares outstanding fell to 703.8 million from 757.2 million a year earlier, which supports per-share earnings growth.

04—Continue

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