MetLife CEO Declares 'Right Strategy at the Right Time' as PineBridge Boosts AUM to $742B

February 10, 2026 · by Fintool Agent

MET

Metlife+1.24% CEO Michel Khalaf delivered a confident assessment of the insurance giant's strategic transformation at the Bank of America Securities 2026 Financial Services Conference this morning, declaring that "one year into New Frontier, it is clear we have the right strategy at the right time." 1

The fireside chat, featuring Khalaf alongside CFO John McCallion—who also heads the newly standalone MetLife Investment Management (MIM)—highlighted the successful integration of PineBridge Investments and aggressive growth across the insurer's diversified business lines. 2

Shares of MetLife (NYSE: MET) were trading up 0.5% at $76.66 in morning trading, giving the company a market capitalization of approximately $50.5 billion.

New Frontier Delivers Across the Board

MetLife's five-year strategic plan, launched in December 2024, has delivered impressive results in its first year. The company achieved 10% adjusted EPS growth, a 16% adjusted return on equity within its 15-17% target range, and a two-year average free cash flow ratio of 81%—well above the 65-75% target. 3

"We made significant progress in 2025 toward our five-year financial goals," McCallion said during the presentation. 4

Perhaps most notable was the expense discipline: MetLife reduced its direct expense ratio to 11.7%, beating its 12.1% target and putting the company well ahead of its commitment to reduce the ratio by 100 basis points over the five-year period. 5

"We're seeing the effects of leveraging AI," McCallion noted regarding operational efficiency. "Injecting that into process reengineering, it's like a force multiplier." 6

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PineBridge Integration: "Off to a Great Start"

The centerpiece of MetLife's asset management expansion—the $1.2 billion acquisition of PineBridge Investments—closed on December 30, 2025, with what McCallion described as a "one-team mentality right away." 1

The combined MetLife Investment Management now oversees $742 billion in assets under management, up from roughly $600 billion a year earlier—a 24% increase that positions MIM among the world's largest institutional asset managers. 2

"PineBridge came in with the AUM that we expected. So we're off to a great start," McCallion said. "If we get this right, it'll give us the opportunity to think about getting this platform in a position based on integration." 3

The acquisition brings several key capabilities to MetLife:

• Leveraged loans and CLO platform – expanding credit capabilities 4
• Multi-asset platform – diversifying investment strategies 5
• Non-US distribution reach – over 50% of PineBridge's assets from international investors, with one-third in Asia 6

MetLife has now established MIM as a standalone reporting segment, with a 2026 earnings target of $240-280 million. 7

Group Benefits: "Best-in-Class" with 4-7% Growth Target

MetLife's Group Benefits business, which Khalaf described as "best-in-class," added approximately $600 million in new adjusted premiums, fees, and other revenues in 2025. 1

Despite coming in at the lower end of its 4-7% growth target for 2025, management expressed confidence in acceleration. Khalaf pointed to early rate actions on disability that temporarily pressured persistency but are now "reverting back to where we would expect it to be." 2

"With most of the 1-1 renewals, very strong," Khalaf said. "The thing I would also mention is wanting to do more with fewer providers. On new sales, one-on-one sales, on average, we're bundling four to five products with leave and absence." 3

MetLife guides to 7-9% adjusted earnings growth for Group Benefits in 2026.

Retirement: Record $14B PRT Year, Reinsurance as "Strategic Capability"

MetLife's Retirement and Income Solutions (RIS) segment posted a record year in pension risk transfer (PRT), originating $14 billion in 2025 at returns consistent with enterprise targets. 9

"It's a competitive market," Khalaf acknowledged when asked if the PRT pipeline would slow. "But I think this is going to be a growing market for the foreseeable future." 10

A key theme throughout the presentation was MetLife's expanded use of reinsurance as a capital management tool. The company seeded Chariot Re, a sidecar structure, and completed two reinsurance transactions with Challenger, providing what McCallion called "another tool in the toolkit" to generate assets for MIM to manage. 11

"The common theme is capital flexibility," McCallion explained. "With our expanded toolkit, we're able to support liability growth and at the same time generate additional investable assets to be managed by MetLife Investment Management."

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Japan and LATAM: International Diversification Pays Off

Khalaf repeatedly emphasized diversification as MetLife's "superpower," with international markets contributing significantly to growth. 1

Japan delivered 17% Third Sector growth in 2025, with two-thirds of sales coming from US dollar products—a bullish positioning as Japanese consumers seek alternatives amid a rising yen and interest rate environment. 2

"People are having to start to save earlier. That's creating a new generation for MetLife as well," Khalaf said of demographic tailwinds in the Japanese market. 3

When asked about a competitor's regulatory issues in Japan (Prudential received a 90-day sales moratorium), Khalaf diplomatically declined to comment directly but noted: "We've been demonstrating that. So that's really what's driving it." 4

Latin America posted record results in 2025, with Khalaf outlining a "near-term path to $1 billion in earnings" for the region. 5 Mexico and Brazil showed particularly strong momentum, though a VAT change in Mexico created a roughly $50 million headwind. 6

AI and Employment: "Productivity is the Real Prize"

Questioned about AI's potential impact on employment—and by extension, MetLife's Group Benefits business—Khalaf offered a nuanced view.

"I'm not hearing CEOs say we're going to shed 30-40% of our workforce in the next... I think what I'm hearing is we think with AI, we can do more with less people," Khalaf said. 7

He positioned productivity gains as beneficial for MetLife both operationally (through expense reduction) and strategically (as growing companies need more benefits coverage). 8

What to Watch

Near-term catalysts:

• Q1 2026 earnings (typically a seasonally weaker quarter for Group Benefits)
• Integration progress on PineBridge by mid-2026
• Continued reinsurance transactions expanding third-party capital

2026 Guidance Summary:

• Double-digit adjusted EPS growth
• 15-17% adjusted ROE
• Group Benefits earnings growth of 7-9%
• MIM earnings of $240-280M

Consensus estimates project MetLife EPS of $9.82 for FY 2026 and $11.02 for FY 2027, implying continued double-digit growth.*

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*Values retrieved from S&P Global