Executive Summary

Q4 2024 adjusted EPS was $2.09 and adjusted earnings were $1.459B, with net income of $1.239B; premiums, fees and other revenues rose 6% YoY to $14.475B . Variable investment income recovered to $293M on improved private equity returns .
Segment mix showed strength in Asia (adjusted earnings +50% YoY to $443M) and resilience across RIS and Group Benefits despite softer non-medical health underwriting margins .
Management introduced the New Frontier strategy with commitments to double-digit adjusted EPS growth and a 15–17% adjusted ROE; 2025 guidance includes lowering the direct expense ratio target to 12.1%, VII of ~$1.7B pretax, and FX headwinds of ~$150–175M to adjusted earnings .
Capital returns remained robust: $3.2B repurchases and $1.5B dividends in 2024; Q4 repurchases ~$400M and January 2025 ~$470M, supporting EPS momentum and ROE delivery .
Stock narrative catalysts: execution on New Frontier priorities (Chariot Re reinsurance platform, PineBridge acquisition to scale asset management), stabilizing RIS spreads, and favorable Group Life mortality trends .

What Went Well and What Went Wrong

What Went Well

Asia earnings surged: “Adjusted earnings were $443 million, up 50%…driven by higher variable investment income and favorable underwriting” .
VII momentum: “Variable investment income was $293 million in Q4 driven by the private equity portfolio” .
Capital returns and efficiency: “We returned ~$4.7B to shareholders in 2024…adjusted ROE of 15.2% for the year…direct expense ratio was 12.1%” .
Strategic growth platform: “We are committed to achieving double-digit adjusted EPS growth…adjusted ROE 15%–17%…$25B of free cash flow over five years” .
Group Life favorable mortality: “Group Life mortality ratio was 83.2%…we expect full year ratio to be in the bottom half of the guidance range in 2025 if trends persist” .

What Went Wrong

Non-medical health margins: Group non-medical health interest-adjusted benefit ratio was 71.8%, above prior year and within annual range (69–74%), reflecting less favorable underwriting in Q4 .
RIS recurring interest margin pressure: Core spread remained flat at ~108 bps; total spread was 112 bps in Q4 (improving sequentially but below earlier levels) .
Corporate & Other loss: Adjusted loss of $199M in Q4, though improved YoY; notable litigation and tax items netted to +$10M .
VII full-year shortfall: “Variable investment income, or VII, was $1 billion, below our 2024 target of approximately $1.5 billion” due to real estate and other funds .
FX headwinds: Management flagged a $150–$175M adjusted earnings headwind in 2025 from currency, impacting reported growth in non-U.S. segments .

Financial Results

Metric (USD)	Q2 2024	Q3 2024	Q4 2024
Adjusted EPS ($)	$2.28	$1.95	$2.09
Adjusted Earnings ($MM)	$1,628	$1,375	$1,459
Net Income ($MM)	$912	$1,275	$1,239
Premiums, Fees & Other Revenues ($MM)	$13,547	$12,523	$14,475
Adjusted Premiums, Fees & Other Revenues ($MM)	$13,523	$12,471	$14,437
Variable Investment Income ($MM)	$298	$162	$293
ROE (%)	15.2%	20.2%	19.6%
Adjusted ROE (%)	17.3%	14.6%	15.4%

Segment adjusted earnings ($MM):

Segment	Q2 2024	Q3 2024	Q4 2024
Group Benefits	$533	$373	$416
Retirement & Income Solutions (RIS)	$410	$472	$386
Asia	$449	$306	$443
Latin America	$226	$221	$201
EMEA	$77	$70	$59
MetLife Holdings	$153	$182	$153
Corporate & Other	$(220)	$(249)	$(199)

KPIs and margins:

KPI	Q2 2024	Q3 2024	Q4 2024
RIS Total General Account Spread (bps)	121	106	112
Asia GA AUM (Amortized Cost, $MM)	$126,997	$135,107	$129,959
Holding Co. Cash & Liquid Assets ($B)	$4.4	$4.5	$5.1

Note on estimates: Wall Street consensus EPS/revenue for Q4 2024 via S&P Global was unavailable due to data access limits; comparisons to consensus cannot be provided. Values retrieved from S&P Global would be noted with an asterisk and “Values retrieved from S&P Global” if available.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Direct Expense Ratio	FY 2025	12.3% (2024 guidance baseline)	12.1%	Lowered
Variable Investment Income (pretax)	FY 2025	—	~$1.7B	New disclosure
Corporate & Other Adjusted Loss (after tax)	FY 2025	—	$850–$950M	New disclosure
Effective Tax Rate (Adjusted Earnings)	FY 2025	24–26%	24–26%	Maintained
Group Benefits Adjusted PFO Growth	Near-term (annual)	4–6% (2024 target)	4–7%	Raised
Group Life Mortality Ratio	Annual	84–89%	84–89%	Maintained; likely bottom half in 2025 if trends persist
Non-medical Health IAB Ratio	Annual	69–74%	69–74%	Maintained
RIS Total GA Investment Spread	FY 2025	—	110–135 bps	New disclosure
MetLife Holdings Adjusted Earnings	FY 2025	—	$650–$800M; PFOs -4% to -6%	New disclosure
Asia Adjusted Earnings Growth (CC)	FY 2025	—	Mid-single digits CC; low single digits reported	New disclosure
Latin America PFO/Earnings Growth (CC)	FY 2025	—	High single digits CC; flat reported	New disclosure
EMEA Quarterly Run Rate	FY 2025	—	$70–$75M per quarter	New disclosure
FX Headwind to Adjusted Earnings	FY 2025	—	~$150–$175M	New disclosure

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 2024)	Previous Mentions (Q3 2024)	Current Period (Q4 2024)	Trend
VII trajectory	VII $298M; PE returns supported	VII $162M; real estate funds improving; new money rate favorable	VII $293M; 2025 VII ~$1.7B pretax; PE 9–11% and RE 7–9% expected ranges	Improving
RIS spreads	Annualized GA spread 1.21%	Total spread 106 bps; caps roll-off pressure	Total 112 bps; 2025 spread 110–135 bps; core spread stabilizing ~106–108 bps	Stabilizing
Group non-medical health	Strong Group performance	IAB ratio 72.4% with one-timers; dental repricing underway	IAB ratio 71.8%; midpoint of range expected in 2025 with dental actions	Recovering to target
Group Life mortality	Favorable underwriting	85.6% (82.4% ex notable), low end of annual range	83.2%; expect bottom half of range in 2025 if CDC trends persist	Favorable
FX/currency	—	Japan solvency ~745%	2025 FX headwind $150–$175M; Asia earnings low-single reported, mid-single CC	Headwind persists
PRT pipeline/litigation	PRT sales YTD +62%	Active pipeline; spreads to stabilize	$6.7B 2024 inflows; lawsuit issues not materially impacting demand	Robust
CRE exposure	—	Fundamentals showing bottoming; modest losses expected	Approaching cycle trough; reserves largely adequate; limited RBC impact	Stabilizing
Strategy: New Frontier, Chariot Re, PineBridge	—	Investor Day preview	New Frontier roll-out; Chariot Re formation; PineBridge acquisition to expand MIM	Offensive posture
Asset management (NIM)	—	—	NIM to be a reporting segment coincident with PineBridge close (H2’25)	Structural change ahead

Management Commentary

“We are committed to achieving double-digit adjusted EPS growth over the course of the New Frontier period…adjusted ROE to be in the range of 15% to 17%…$25 billion of free cash flow” .
“Variable investment income was $293 million in Q4 driven by the private equity portfolio, which had an average return of 1.8% in the quarter” .
“For 2025, we are lowering our direct expense ratio guidance to 12.1%, down from 12.3% in 2024…variable investment is expected to be approximately $1.7 billion pretax” .
“We have started the new year strong having repurchased roughly $470 million of our common stock in January…for the full year 2024, we returned approximately $4.7 billion” .
“We expect 2025 total general account investment spread to be 110 to 135 basis points…we anticipate our core spread to stabilize from 2025 forward” .

Q&A Highlights

Group renewals and dental repricing: Renewals and persistency in-line; targeted rate actions in dental support 2025 margin return to midpoint .
PRT litigation: Lawsuits against select providers not materially impacting demand; MET finished 2024 with ~$6.7B inflows and healthy ROEs, pipeline remains active .
VII outlook: Raised alternative return assumptions; expect gradual improvement through 2025 with PE and real estate towards lower end initially .
RIS spreads: Interest rate caps rolled off; core spread stabilizing; 2025 total spread guided 110–135 bps .
Long-term care risk transfer: Market activity increasing; bid-ask narrowing; MET’s LTC block well capitalized/reserved; not yet a cash contributor (still growing liabilities) .
CRE: Signs of stabilization (office vacancies likely peaked in 2024; transaction volumes picking up); losses largely reserved; potential impact framed via RBC points .
Asset management reporting: NIM will be broken out as a segment timed with PineBridge closing (H2’25) .

Estimates Context

Wall Street consensus (EPS and revenue) via S&P Global for Q4 2024 was unavailable due to data access limits; as a result, we cannot provide a formal beat/miss analysis versus consensus at this time. Values retrieved from S&P Global.

Key Takeaways for Investors

Segment balance remains a strength: Asia and Group Benefits offset episodic pressure in RIS spreads; portfolio diversification supports consistent adjusted ROE delivery .
RIS spreads have likely bottomed; 2025 guidance implies stabilization and recovery (110–135 bps), supporting pretax spread income as VII normalizes .
Group Life mortality trends are favorable; dental repricing is catalyzing non-medical health margin normalization to the midpoint in 2025—supportive for Group adjusted earnings trajectory .
FX will be a reported headwind (~$150–$175M) in 2025; focus on constant currency growth and operational efficiency (12.1% direct expense ratio guidance) to mitigate .
Capital deployment remains shareholder-friendly (buybacks/dividends), while strategic M&A (PineBridge) and Chariot Re expand asset management earnings and capital flexibility—potential multiple support as execution is evidenced .
VII reset reduces near-term volatility vs 2024 target shortfall; 2025 expectations and asset-class return ranges signal improving contribution from alternatives over the plan period .
Near-term trading: watch Group underwriting ratio cadence in Q1 seasonality, FX trajectory (LatAm/JPY), and milestones on PineBridge closing/NIM segment breakout that could re-rate the asset management narrative .

METLIFE INC (MET)·Q4 2024 Earnings Summary