MetLife Q4 Earnings Beat Estimates on Increasing Volumes

MetLife, Inc. MET reported fourth-quarter 2025 adjusted operating earnings per share (EPS) of $2.58, which beat the Zacks Consensus Estimate by 9.3%. The bottom line advanced 24% year over year.

Adjusted operating revenues totaled $24.2 billion, which rose 22.6% year over year. However, the top line lagged the consensus mark by 19.5%.

The quarterly earnings were aided by strong performance in its Asia, Group Benefits, RIS and EMEA segments, driven by higher volumes and improved investment income. An increase in adjusted premiums, fees and other revenues (PFOs) contributed to the upside. However, the upside was partly offset by a VAT charge in Mexico that inflicted pressure on adjusted earnings in the Latin America unit.

MetLife, Inc. Price, Consensus and EPS Surprise

MetLife, Inc. price-consensus-eps-surprise-chart | MetLife, Inc. Quote

Behind the Headlines

Adjusted PFOs, excluding pension risk transfer (PRT), grew 8% year over year to $12.8 billion.

Adjusted net investment income of $5.6 billion rose 5% year over year, attributable to increased variable investment income.

Total expenses rose 31.3% year over year to $22.7 billion due to higher policyholder benefits and claims. The adjusted expense ratio, excluding total notable items related to adjusted other expenses and PRT, came in at 20.3%. The metric improved 160 basis points (bps) year over year.

Net income dropped 37% year over year to $778 million. Adjusted return on equity, excluding total notable items, improved 300 bps year over year to 18.3%.

Inside MetLife’s Segments

Group Benefits: The segment recorded adjusted earnings of $465 million in the fourth quarter, which advanced 12% year over year and surpassed the Zacks Consensus Estimate of $439.8 million. Adjusted earnings, excluding notable items, improved 12% year over year to $465 million on the back of improved underwriting. Adjusted PFOs of $6.3 billion grew 2% year over year.

RIS: Adjusted earnings in the unit grew 18% year over year to $454 million and beat the consensus mark of $427.5 million. Excluding notable items, adjusted earnings climbed 18% year over year to $454 million, resulting from improved variable investment income. Adjusted PFOs, excluding PRT, came in at $1.4 billion. The metric rose 40% year over year.

Asia: The segment’s adjusted earnings of $444 million inched up 1% year over year on a constant currency basis and topped the Zacks Consensus Estimate of $425.1 million. Adjusted earnings, excluding notable items, climbed 1% year over year to $444 million, attributable to higher volumes. Adjusted PFOs of $1.7 billion rose 2% year over year in the quarter under review.

Latin America: Adjusted earnings of $198 million dropped 1% year over year and fell short of the consensus mark of $207 million. The metric was affected by a value-added tax charge in Mexico. Excluding notable items, adjusted earnings rose 13% year over year to $227 million. Adjusted PFOs of $1.8 billion grew 25% year over year in the quarter under review on the back of solid regional sales.

EMEA: The segment’s adjusted earnings advanced 64% year over year to $97 million, which beat the Zacks Consensus Estimate of $82.6 million. The year-over-year growth stemmed from strong volumes and favorable underwriting. Excluding notables, adjusted earnings amounted to $97 million, up 64% year over year. Adjusted PFOs improved 21% year over year to $787 million on the back of solid regional sales.

Corporate & Other: The unit incurred an adjusted loss of $70 million, wider than the prior-year quarter’s loss of $62 million.

Financial Update (As of Dec. 31, 2025)

MetLife exited the fourth quarter with cash and cash equivalents of $22 billion, which grew 9.8% from the 2024-end level. Total assets of $745.2 billion increased 10% from the figure at 2024-end.

Long-term debt amounted to $14.5 billion, down 4.1% from the figure as of Dec. 31, 2024. Short-term debt amounted to $355 million.

Total equity of $28.7 billion rose 3.5% from the 2024-end level.

Book value per share was $39.02 as of Dec. 31, 2025, which rose 13.8% year over year.

Capital Deployment Update

MetLife bought back shares worth $430 million in the fourth quarter. It pursued additional repurchases of roughly $200 million in January 2026. Management paid common stock dividends of $370 million in the quarter under review.

Full-Year 2025 Results of MET

MET’s 2025 adjusted operating revenues of $78.8 billion rose from $73.1 billion a year ago.

Full-year 2025 adjusted operating earnings per share of $8.89 rose 10% year over year.

MET’s 2026 Outlook

Management expects a pre-tax variable investment income of around $1.6 billion for 2026. The expense ratio is projected to be 12.1%.

Corporate & Other adjusted losses are projected to be between $500 million and $700 million. The effective tax rate is projected to be 24-26%.

Near-Term Targets

MetLife projected adjusted PFOs in the Group Benefits business to rise in the range of 4-7% annually. Adjusted PFOs in the Latin America unit are expected to witness high-single-digit growth on a constant currency basis, while the same in the EMEA unit are forecasted to witness high-single-digit growth on a reported basis.

MetLife aims to achieve an adjusted return on equity in the range of 15-17%. It is expected to achieve double-digit adjusted EPS growth in the near term.

MET’s Zacks Rank & Key Picks

MET currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the broader finance space are Cboe Global Markets, Inc. CBOE, Skyward Specialty Insurance Group, Inc. SKWD and Trupanion, Inc. TRUP. While CBOE and SKWD sport a Zacks Rank #1 (Strong Buy) each at present, TRUP carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Cboe Global Markets’ current-year earnings of $10.55 per share has witnessed nine upward revisions in the past 30 days against none in the opposite direction. Cboe Global Markets beat earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 2.9%. The consensus estimate for current-year revenues is pegged at $2.4 billion, implying 15.4% year-over-year growth.

The Zacks Consensus Estimate for Skyward Specialty Insurance Group’s current-year earnings of $3.80 per share has witnessed one upward revision in the past 30 days, against no movement in the opposite direction. Skyward Specialty Insurance Group beat earnings estimates in each of the trailing four quarters, with the average surprise being 11.6%. The consensus estimate for current-year revenues is pegged at $1.4 billion, calling for 22.7% year-over-year growth.

The Zacks Consensus Estimate for Trupanion’s current-year earnings is pegged at 48 cents per share, implying 308.7% year-over-year growth. In the past 60 days, Trupanion has witnessed one upward estimate revision against none in the opposite direction. The consensus mark for the current-year revenues is pegged at $1.4 billion, calling for 11.9% year-over-year growth.

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