MetLife, Inc. Q1 FY2026 earnings call

• AI plays important role in advancing new frontier strategy, improving decision-making, customer service, reducing friction. - Active on capital management fronts: repurchased ~$750M MetLife common shares, paid ~$370M common dividends, board announced 4.4% increase in Common dividend per share, issued $1B of subordinated debt. - Divested business in Ukraine. - MIM's pipeline and forward commitments strong, especially within private assets. - Asia, EMEA, Latin America etc. showed strong business performances with various growth drivers.

RIS: Adjusted earnings of $451 million, up 11% from a year ago. Asia: Adjusted earnings of $487 million, increased 31%, sales advanced 22% on constant currency basis. Japan sales rose 26% on constant currency basis, Korea sales up 44% on constant currency basis. Latin America: Adjusted earnings totaled $229 million, an increase of 5% despite Mexico tax change. Sales increased 20% and adjusted PFOs up 11% on constant currency basis. EMEA: Adjusted earnings of $110 million rose 33%, adjusted PFOs up 15% on constant currency basis. MEM: Adjusted earnings of $47 million, an increase of 68% following first fully integrated quarter post Pinebridge acquisition.

RIS still expects full-year adjusted earnings to be between $1.6 to $1.8 billion. Core spread XVII was in line with expectations at 95 basis points and down four basis points sequentially. Expect core spreads to remain close to Q1 levels or slightly improve in Q2. Confident in MetLife's ability to compound value over time and deliver attractive, dependable returns for shareholders.

• Regulatory issues in Japan, with industry-wide actions and ongoing discussions with regulators. - Investment portfolio risks like market depreciation in equity and public fixed income, and potential impacts from private equity secondary market divestments. - Sun Life's baseless indemnity claim allegations.

Q: About group life working age mortality trend, A: Favorable prior quarter development, about half a point favorable severity, drivers include COVID pull-forward, GLP-1 drugs etc., and strategy to differentiate beyond price.

Q: On Japan regulator actions, A: Industry issue, comprehensive review done, all seconded employees returned, in conversations with FSA, no impact on business and results in sales.

Q: On Japan strong sales, A: Driven by distribution strength, product launches, life sales growth from yen variable and US dollar single premium products, A&H sales up 77% etc., rest of Asia sales up 18% with Korea as key driver.

Q: On non-medical health key drivers, A: Dental seasonally higher utilization, disability higher claims from paid family leave programs, slightly elevated severity in LTD but flat sequentially.

Q: On RIS spread, A: Core spreads 95 basis points, sequential decline due to large 4Q flows rotation, expect slight improvement in Q2 but headwind from flat yield curve.

Q: On Sun Life class action lawsuit, A: Claims baseless, MetLife not named defendant, no legal proceedings.

Q: On StatNet income, A: ~4% decline due to U.S. entities dividend seasonality, free cashflow ratio 65 to 75%, RBC ratio 379% above target.

Q: On investment reallocation, A: Cautious on commercial mortgage loan portfolio, reallocating to asset-backed financing and other private assets with relative value.

Q: On MIM with Pinebridge, A: Excited about integration, early signs of cross-selling, diversified pipeline, Pinebridge brings international non-U.S. footprint.

Q: On EMEA performance, A: Pleased with performance, earnings building over years, Middle East situation not material to EMEA results, outlook trending towards middle to upper end of range.

Q: On disability trends, A: 50% of disability book repriceable annually, not seeing evidence for overall repricing of LTD book outside normal, paid family medical leave front end nature monitored for repricing as needed