Q2 2024 MetLife Inc Earnings Call Transcript
Key Points
- MetLife Inc (MET) reported adjusted earnings of $1.6 billion or $2.28 per share, up 18% from the prior-year period.
- The company posted a 17.3% adjusted return on equity in the quarter, well above the target range of 13% to 15%.
- Group benefits business reported adjusted earnings of $533 million, representing an all-time quarterly record.
- MetLife Inc (MET) executed two jumbo pension risk transfer deals totaling $3.5 billion and a $2.2 billion stable value addition.
- The company has a strong balance sheet with $4.4 billion of cash and liquid assets at holding companies, above the target cash buffer of $3 billion to $4 billion.
- Net derivative losses were primarily due to the strengthening of the US dollar versus the yen and higher interest rates.
- Real estate funds saw significantly narrower losses in the second quarter, impacting variable investment income.
- Sales in Japan were impacted by currency fluctuations, with a 19% year-over-year decline in Japan sales on a constant currency basis.
- The company experienced higher-than-expected surrender activity in Japan due to the weaker yen.
- MetLife Holdings adjusted earnings were down 27% versus the prior-year quarter, primarily due to foregone earnings from a reinsurance transaction.
Ladies and gentlemen, thank you for standing by. Welcome to the MetLife second-quarter 2024 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded.
Before we get started, I refer you to the cautionary note about forward-looking statements in yesterday's earnings release and to risk factors discussed in MetLife's SEC filings.
With that, I will turn the call over to John Hall, Global Head of Investor Relations. Please go ahead.
Thank you, operator. Good morning, all. We appreciate you joining MetLife second-quarter 2024 earnings call. Before we begin, I'd point you to the information on non-GAAP measures on the Investor Relations portion of metlife.com, in our earnings release, and in our quarterly financial supplements, which you should review.
On the call this morning are Michel Khalaf, President and Chief Executive Officer; and John McCallion, Chief Financial Officer. Other members of senior management are
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