MetLife, Inc. Reports Third Quarter 2024 Financial Results
MetLife, Inc. (NYSE:MET) has released its financial results for the third quarter of 2024.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | YoY % Change | Consensus Estimate |
|---|---|---|---|---|
| Net Income | $1.3 billion | $422 million | 208% | - |
| EPS (Net Income) | $1.81 | $0.56 | 223% | $2.17 |
| Adjusted Earnings | $1.4 billion | $1.5 billion | -8% | - |
| Adjusted EPS | $1.95 | $1.97 | -1% | $2.17 |
| Total Revenue | $12.5 billion | $13.16 billion | -5% | $18.66 billion |
| Net Investment Income | $5.2 billion | $4.81 billion | 8% | - |
Interpretation: MetLife's revenue was below expectations, but the significant year-over-year increase in net income was driven by net derivative gains and a decrease in market risk benefit remeasurement losses. Despite a decrease in adjusted earnings on a reported basis due to currency impacts and lower variable investment income, the company's financial strength remains evident through its improved net income and book value per share.
Revenue Performance by Segment
| Segment | Adjusted Earnings (Q3 2024) | YoY % Change | Adjusted Revenue |
|---|---|---|---|
| Group Benefits | $373 million | -27% | $6.1 billion |
| Retirement & Income Solutions (RIS) | $472 million | Flat | $1.6 billion |
| Asia | $306 million | 11% | $1.7 billion |
| Latin America | $221 million | 11% | $1.5 billion |
| EMEA | $70 million | -20% | $655 million |
| MetLife Holdings | $182 million | -13% | $793 million |
Interpretation: MetLife saw varied performance across its business segments. Although the Group Benefits segment faced a decline due to liability refinements and underwriting impacts, the Asia and Latin America segments demonstrated positive earnings growth. RIS maintained stable earnings, thanks to strong sales in UK longevity reinsurance.
Key Developments and Operational Highlights
- Net derivative gains of $767 million, driven by interest rate changes and currency effects.
- Book value per share increased significantly by 33% from the previous year.
- Holding company cash and liquid assets totaled $4.5 billion, surpassing target cash buffer levels.
Comments from MetLife Officers
MetLife CEO Michel Khalaf emphasized the resilience of the company's financial structure, highlighting an adjusted return on equity of 14.6% despite challenges such as reduced investment income from variable assets. Khalaf affirmed a continued strong momentum across MetLife's diverse set of businesses, attributing this to precise execution of strategies.
Stock Price Movement
Following the earnings release, MetLife's stock experienced a modest increase, with shares rising by approximately 0.42%.
Conclusion: MetLife demonstrated solid financial performance in the third quarter of 2024, marked by substantial net income growth and strategic execution despite fluctuations in investment income and challenges within certain segments.
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