Net investment income was USD 5.9 billion, up 10%, primarily due to higher variable investment income and increases in the estimated fair value of certain securities that do not qualify as separate accounts under GAAP. Adjusted net investment income was USD 5.6 billion, up 5%, mainly driven by higher variable investment income. Net investment losses were USD 160 million, or USD 126 million after tax, reflecting normal trading activity and a stable credit environment. Net derivative losses amounted to USD 646 million, or USD 510 million after tax, due to higher long-term interest rates, stronger equity markets and strengthening of the U.S. dollar.
Net income decreased 37% to USD 778 million. Net derivative losses and net investment losses were the primary drivers, partially offset by market risk benefit remeasurement gains and higher adjusted earnings. Adjusted earnings were USD 1.6 billion, up 13% on a reported basis and 12% on a constant currency basis.
MetLife's direct expense ratio, excluding total notable items related to direct expenses and PRT, was 11.6% in the fourth quarter and 11.7% for the full year, compared to 13.1% in the prior-year quarter and 12.1% for the full year 2024.
Fourth Quarter Results:
• Net income was USD 778 million, or USD 1.17 per share.
• Adjusted earnings increased 13% to USD 1.6 billion, driven by variable investment income, strong
volume growth and improved expense margins.
• Adjusted earnings per share, excluding total notable items, increased 24% to USD 2.58.
• PFOs increased 29% to USD 18.7 billion. Adjusted PFOs, excluding PRT, up 8% to USD 12.8 billion.
• Net investment income up 10% to USD 5.9 billion.
• Variable investment income was USD 497 million, primarily reflecting higher private equity returns.
Full Year Results:
• Net income was USD 3.2 billion, or USD 4.71 per share.
• Adjusted earnings per share, excluding total notable items, up 10% to USD 8.89.
• Premiums, fees and other revenues (PFOs) increased 10% to USD 57.6 billion.
• Adjusted PFOs, excluding pension risk transfers (PRT), were up 5% to USD 49.8 billion.
• RIS record sales, including transactions of USD 14.2 billion in PRT and USD 11.1 billion of U.K. longevity
reinsurance.
• Beat free cash flow ratio and direct expense ratio targets.
• ROE was 12.9%. Adjusted ROE, excluding total notable items, was 16%, at midpoint of target range.
• Book value per share (BVPS) up 14% to USD 39.02. Adjusted BVPS increased 4% to USD 57.07.
• Returned nearly USD 4.4 billion to shareholders.
• Holding company cash and liquid assets totaled USD 3.6 billion at year end, within target range.
“MetLife delivered record fourth quarter results, underscoring the strength of our diversified businesses and the disciplined execution of our all-weather New Frontier strategy”, said Michel Khalaf, President
and Chief Executive Officer. “We are confident that the foundation built in 2025 positions MetLife to accelerate growth responsibly and deploy capital prudently to deliver on our New Frontier commitments”, the CEO added.
The 4Q&FY2025 report can be found here.
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