Group Benefits margins

Adjusted earnings were $466M, up 19% year-over-year. Favorable life underwriting margins, with a strong performance in voluntary products and solid persistency highlighted. The company expected a higher mortality ratio in early 2024. " " "

Adjusted earnings were $431M, down 11%. Some pressure in nonmedical health, but pricing actions in dental are expected to drive margins back to target by 2025. Overall sentiment improved on the outlook for recovery. " " "

Margins remain a key focus, with sentiment shifting from cautious to more optimistic.

Retirement and Income Solutions

Adjusted earnings were $421M, up 10%. Spreads compressed further, mainly from rate movements, but pricing stayed healthy. Variable Investment Income (VII) remains a key uncertainty. Overall sentiment was still negative given the slow VII recovery. " " " " "

Adjusted earnings were $368M, down 10% on lower recurring interest margins. The expiration of rate caps pressured spread, but management expects stabilization in Q4. Overall sentiment remains cautious due to macro headwinds. " " "

Sentiment remains negative, though spreads are expected to stabilize going forward.

FX volatility in Japan

Not specifically mentioned in Q4 2023.

FX volatility impacted foreign currency product sales, causing some customers to wait on the sidelines. Year-over-year sales of single-premium FX products declined. "

No longer mentioned.

Asia growth

Adjusted earnings reached $296M, up 12% year-over-year, contributing to a 13% full-year sales increase. Mid-single-digit earnings and AUM growth anticipated near term. " "

Sales declined 1% on a constant currency basis, driven by a 7% drop in Japan but offset by 10% growth in other Asian markets (e.g., India, China). Adjusted earnings were down 6% overall. " " "

Growth sentiment improved, with stronger performance noted by year-end.

Pension Risk Transfer pipeline

Market remains active and broad-based, with a strong pipeline extending into 2024 and beyond. MetLife sees high levels of activity in the jumbo segment, supported by funding levels and plan derisking trends. " "

$5.6B in PRT sales year-to-date, plus $1.5B closed in October. The pipeline remains robust, with many companies looking to fully divest their defined benefit plans within a few years. " "

Newly emphasized in Q4; significant near-term growth opportunity.

Strong capital position

Ended the year with $5.2B in holding company liquidity and an RBC ratio near 400%. The $19B reinsurance deal will free $3B+ of capital over time, providing greater financial flexibility. " " " "

Returned nearly $1B to shareholders and held $4.5B in holding company liquidity. Emphasized balance sheet strength and disciplined capital deployment. " "

Newly highlighted in Q4 as a major future enabler of strategic plans.

Asbestos claims

Reserves increased by $76M (after tax), with a higher frequency of severe claims than anticipated. This was tagged as a notable item in Corporate & Other. " "

No mention in Q3 2024.

Newly disclosed in Q4, could pose litigation risk.

Variable Investment Income

VII was $63M in Q4, finishing the year at $419M, below the $2B target. Private equity and real estate equity funds contributed almost zero in Q4. Some improvement is expected in later quarters of the following year. " " "

Remained low due to lagging private equity returns, though real estate funds improved slightly. Management expects modest pickup but remains cautious. " "

Continues to be below trend, with a potential rebound in late 2024.