MetLife Q3 2024 Earnings Report

In the third quarter of 2024, MetLife, Inc. (MET) reported adjusted earnings of $1.4 billion, or $1.93 per share, a decrease from the previous year's figures. The insurance giant saw a year-to-date increase of 12% in adjusted earnings per share (EPS) excluding notable items, despite lower variable investment income and recurring interest margins.

U.S. Market Conditions

The U.S. market conditions, including low unemployment and controlled inflation, have favored the company's Group Benefits as well as Retirement and Income Solutions segments. MetLife is preparing to launch its New Frontier strategy on December 12, 2024, to accelerate growth and enhance returns following a year marked by strategic capital deployment and shareholder returns.

Key Takeaways

• Adjusted earnings for Q3 2024 totaled $1.4 billion, with EPS at $1.93.
• Continued favorable U.S. market conditions supported Group Benefits and Retirement Solutions.
• Group Benefits adjusted earnings: $431 million; Retirement and Income Solutions: $368 million.
• Asia's adjusted earnings decreased to $347 million, while Latin America saw a 9% increase to $217 million.
• Strong liquidity with $4.5 billion in cash and liquid assets.
• New Frontier strategy to be unveiled on December 12, 2024.

Company Outlook

• MetLife aims to present its New Frontier strategy focused on accelerating growth and enhancing returns.
• Anticipates a robust pipeline for future pension risk transfer opportunities.
• A near-term outlook will be provided in February 2025 during the Q4 earnings call.

Insights

Bearish Highlights

• Declines in adjusted earnings for Group Benefits and Retirement Solutions segments.
• Asia's adjusted earnings fell 6%.
• Total U.S. statutory adjusted capital decreased by 2% from the previous quarter.

Bullish Highlights

• Despite challenges, a 12% year-to-date increase in adjusted EPS excluding notable items.
• Latin America adjusted earnings increased by 9%.
• Strong liquidity position with $1.2 billion returned to shareholders.

Misses

• Adjusted EPS decreased 8% year-over-year.
• Group Benefits adjusted earnings down 11%.
• Retirement Solutions saw a 10% decline in adjusted earnings.

Summary and Q&A

• Management notes a competitive environment in Group Benefits, expecting to return to target margins by 2025.
• New products launched in Japan and Asia aim to maintain competitiveness.
• Cautious optimism about commercial mortgage performance with a stable loan portfolio.

In conclusion, MetLife's Q3 2024 earnings call indicated strategic focus and disciplined capital management, positioning the company for future growth amid market challenges. Details of the New Frontier strategy will be shared at the Investor Day on December 12 and in the Q4 earnings call.

InvestingPro Insights

• MetLife's market capitalization stands at $55.11 billion.
• P/E ratio of 21.28, reflecting its significant presence in the insurance industry.
• Commitment to shareholder returns noted with 12 consecutive years of dividend increases and 25 consecutive years of payments.
• Dividend yield at 2.62%, providing an attractive income stream.
• Revenue of $68.77 billion over the last twelve months, with quarterly growth of 7.22% indicating potential turnaround.
• EBITDA grew by 15.33%, reflecting improved operational efficiency.

Investors show reassurance in MetLife's financial health with liquid assets exceeding short-term obligations, supporting firm stability. Analysts note some caution in short-term expectations, considering the downward revisions in earnings.

Full Transcript – MetLife (NYSE:MET) Q3 2024:

Skipping full transcript content for brevity. It can be accessed directly from MetLife’s investor relations page.