MetLife, Inc. Q3 FY2025 earnings call

• MetLife reported strong third quarter results with adjusted earnings of $1.6 billion or $2.37 per share, up 22% per share from the prior year period. - Group Benefits underwriting results bounced back with normal disability experience and seasonally better dental profitability. - Retirement and Income Solutions' Chariot Re launched in Q3 with an initial reinsurance transaction of roughly $10 billion. - Asia sales surged 34% on constant currency basis, driven by Japan's 31% increase and other Asia markets' 39% growth. - Latin America's Accelerator digital platform for embedded insurance has over 20 partners and generated over $340 million of annualized premiums. - Progress on strategic transactions: acquisition of PineBridge and sale of legacy block of variable annuities to Talcott Resolution Life expected to close in Q4. - Strong capital position with cash and liquid assets at holding companies of roughly $4.9 billion, above target cash buffer.

Group Benefits: Adjusted earnings excluding notable items totaled $457 million, up 6% from a year ago. Retirement and Income Solutions: Adjusted earnings excluding notable items totaled $423 million, up 15% from the prior year quarter. Asia: Adjusted earnings excluding notable items were $473 million, a 36% increase on a reported basis from the prior year quarter, with sales surging 34% on a constant currency basis. Latin America: Adjusted earnings excluding notable items were $222 million, up 2%, and adjusted PFOs for the region totaled $1.7 billion, up 11% on both a reported and constant currency basis. EMEA: Adjusted earnings excluding notable items of $89 million, up 19% on a reported basis, primarily due to volume growth.

• Expect momentum in Asia to continue into Q4 and exceed full year sales guidance for 2025. - Anticipate further improvement in nonmedical health loss ratio in Q4. - Progress on strategic transactions (acquisition of PineBridge and sale of variable annuities block) on track to close in Q4. - Confident in maintaining strong capital position and returning excess capital to shareholders.

• Mexico tax law change: Industry-wide tax matter resulted in after-tax charge of $71 million in 3Q 2025, with additional charges expected in 4Q 2025 and reduction in Latin America adjusted earnings in 2026. - Credit environment risks: Spreads historically tight and priced for perfection, need to maintain up and quality bias in portfolio.

Q: On Asia sales, can you provide additional color on the strength that you saw? What were the key drivers? And what do you think will -- to what extent can this momentum continue going forward?

A: Lyndon Oliver responded that Japan sales were up 31% due to product launches and enhancements, and other Asia markets saw 39% growth. Expect momentum to continue into Q4 and exceed full year sales guidance for 2025.

Q: Just on PRT, is any of the $14 billion that you are planning to write this year going into Chariot Re? And how do we think about the difference in earnings impact if it goes in Chariot Re or if it stays on your balance sheet?

A: John McCallion said yes, and that the temporary impact on earnings for the $10 billion deal is between $15 million to $20 million per quarter.

Q: Could you just discuss the forward timing of the impact of the Mexico tax law change?

A: Eric Sacha Clurfain explained the timing of the impact, with notable charges in 2025, lesser in 2026, and little to no impact by 2027.