On July 31, 2024, MetLife Inc (MET, Financial) released its 8-K filing announcing its second quarter 2024 results. MetLife, one of the largest life insurers in the U.S. by assets, provides a variety of insurance and financial services products. The company is organized into five segments: U.S., Asia, Latin America, EMEA, and MetLife Holdings. The U.S. business contributes around 50% of earnings, while the Asia segment contributes around 22%, Latin America 13%, EMEA 4%, and MetLife Holdings 11%.
Performance Overview
MetLife Inc (MET, Financial) reported net income of $912 million, or $1.28 per share, a significant increase from $370 million, or $0.48 per share, in the second quarter of 2023. Adjusted earnings were $1.6 billion, or $2.28 per share, compared to $1.5 billion, or $1.94 per share, in the same period last year. This performance exceeded analyst estimates of $2.19 earnings per share.
Revenue and Investment Income
Total revenues for the quarter were $17.8 billion, up from $16.6 billion in the prior-year period. Net investment income rose to $5.2 billion, a 3% increase from $5.1 billion in the second quarter of 2023, driven by higher interest rates and variable investment income.
Segment Performance
| Segment | Adjusted Earnings ($ millions) | Change from Prior Year |
|---|---|---|
| Group Benefits | 533 | 43% |
| Retirement and Income Solutions (RIS) | 410 | -2% |
| Asia | 449 | 4% |
| Latin America | 226 | 3% |
| EMEA | 77 | 10% |
| MetLife Holdings | 153 | -27% |
Financial Metrics
MetLife's book value per share was $33.30, down 5% from $34.92 at June 30, 2023. Excluding accumulated other comprehensive income (AOCI) other than foreign currency translation adjustments (FCTA), book value per share was $53.12, down 1% from $53.55. The return on equity (ROE) was 15.2%, while the adjusted ROE, excluding AOCI other than FCTA, was 17.3%.
Commentary
"The excellent second quarter results reflect MetLife's building business momentum, led by our flagship Group Benefits franchise and continuing across our set of market-leading businesses," said MetLife President and CEO Michel Khalaf. "Our diversification and ability to generate free cash flow benefits MetLife shareholders and other stakeholders, positioning us to continue to drive sustained long-term value."
Analysis
MetLife Inc (MET, Financial) demonstrated robust performance in Q2 2024, significantly surpassing analyst estimates. The strong results were primarily driven by the Group Benefits segment and higher net investment income. However, challenges such as a decrease in book value per share and the impact of net investment and derivative losses highlight areas for cautious monitoring. Overall, MetLife's diversified business model and strong cash flow generation position it well for sustained long-term growth.
Explore the complete 8-K earnings release (here) from MetLife Inc for further details.
