Wall Street analysts expect MetLife (MET) to post quarterly earnings of $2.13 per share in its upcoming report, which indicates a year-over-year increase of 10.4%. Revenues are expected to be $19.23 billion, up 2.7% from the year-ago quarter.Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 3.1% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.Prior to a company's earnings anno ...

Company Overview - MetLife (MET) is expected to report a year-over-year increase in earnings, with a projected EPS of $2.13, reflecting a +10.4% change, and revenues of $19.23 billion, up 2.7% from the previous year [3][12] - The upcoming earnings report is scheduled for February 5, 2024, and the stock may react positively if results exceed expectations, while a miss could lead to a decline [2][3] Earnings Estimates and Revisions - The consensus EPS estimate has been revised 3.09% lower in the last 30 days, indicating a bearish sentiment among analysts regarding MetLife's earnings prospects [4][10] - The Most Accurate Estimate is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -0.56%, which complicates the prediction of an earnings beat [10][11] Earnings Surprise History - In the last reported quarter, MetLife was expected to post earnings of $2.16 per share but only achieved $1.93, resulting in a surprise of -10.65% [12] - Over the past four quarters, MetLife has only beaten consensus EPS estimates once [13] Comparison with Industry Peers - Prudential (PRU), another player in the insurance industry, is expected to report an EPS of $3.28 for the same quarter, indicating a +27.1% year-over-year change, with revenues projected at $14.15 billion, up 8.7% [17] - Prudential's consensus EPS estimate has also been revised 0.6% lower, leading to an Earnings ESP of -1.07%, making it similarly challenging to predict an earnings beat [18]

Company Performance - MetLife's stock gained 28% over the last year, outperforming the S&P 500 index, which returned 23% [1] - Prudential Financial, a peer company, saw a 19% stock increase over the same period [1] - Q3 adjusted operating revenues declined 3.4% year-over-year to $17.6 billion [1] - Premiums, fees, and other revenues decreased by approximately 5%, while investment-related income rose 8% [1] - Adjusted earnings were $1.93 per share, impacted by a 7.3% year-over-year increase in expenses due to higher interest credited to policyholder account balances [1] - The group benefits business underperformed, particularly in non-medical health underwriting and actuarial assumption review [1] Market Trends and Outlook - The U.S. Federal Reserve's slower path toward monetary easing could benefit MetLife, as life insurers are more sensitive to interest rates due to their long-term bond-heavy investment strategies [2] - Potential regulatory and tax changes under the Trump administration may improve profitability for insurers like MetLife [2] - MetLife has been growing its dividend yield and maintains a strong share buyback program, which could drive long-term gains [2] - At $82 per share, MetLife's stock is trading 5% below Trefis' estimated valuation of $86 per share [2] Comparative Analysis - The Trefis High Quality Portfolio, consisting of 30 stocks, has provided better returns with less risk compared to the S&P 500 index over the last four years [2]

Company Overview - MetLife Investment Management (MIM) has entered into a definitive agreement to acquire PineBridge Investments, which has approximately $100 billion in assets under management. The deal includes $800 million in cash at closing, with additional contingent payments based on financial metrics and earnouts [6] - The acquisition aligns with MetLife's New Frontier strategy aimed at accelerating asset management growth and enhancing MIM's competitiveness through PineBridge's global footprint and investment expertise [1][6] Financial Impact - Upon completion, MIM's total assets under management (AUM) are expected to exceed $700 billion, significantly enhancing its scale and broadening its global offerings. MIM's AUM was $609.3 billion as of September 30, 2024 [2] - The transaction is anticipated to be neutral to earnings per share in the first year and accretive thereafter, supported by potential expense synergies and a capital-light structure [1][6] Market Context - The asset management industry is facing intense competition due to evolving client needs and increased regulations, prompting companies to strengthen their positions through expansion [7] - The acquisition is expected to enhance MIM's product offerings and attract a larger customer base, particularly as over half of the client assets acquired are owned by investors outside the United States, with one-third owned by investors in Asia [1][7] Performance Metrics - MetLife's shares have gained 14.4% in the past six months, outperforming the industry growth of 3.1% [8] - MetLife currently holds a Zacks Rank 4 (Sell), indicating a need for cautious evaluation despite recent performance [9]

Core Insights - MetLife has launched a new five-year strategy called "New Frontier" aimed at enhancing long-term growth and profitability [1][2] - The plan targets double-digit adjusted earnings per share (EPS) growth, a 15% to 17% adjusted return on equity, a one-percentage-point reduction in direct expense ratio, and $25 billion in free cash flow [1] - Following the announcement, MetLife's shares increased by 5% [1] Group 1: Strategy Overview - The "New Frontier" strategy builds on the previous "Next Horizon" plan, which focused on simplifying and differentiating the company [2] - CEO Michel Khalaf emphasized that MetLife operates in attractive markets with strong competitive advantages, allowing for growth with lower risk [2] Group 2: Key Focus Areas - The "New Frontier" strategy will concentrate on four main areas: enhancing leadership in group benefits, leveraging a unique retirement platform, accelerating asset management growth, and expanding in high-growth international markets [2]

Core Insights - MetLife, Inc. and General Atlantic are launching Chariot Reinsurance, Ltd., a Bermuda-based life and annuity reinsurer, set to commence operations in 2025, backed by over $1 billion in equity investment [1][2] - The formation of Chariot Re will allow MetLife to transfer approximately $10 billion in liabilities, optimizing its balance sheet and enhancing financial flexibility [2] - MetLife will manage Chariot Re's investment portfolio exclusively, creating a new revenue stream and leveraging its expertise in complex asset management [3] Financial Implications - The transfer of liabilities to Chariot Re will reduce MetLife's risk exposure and free up capital for reinvestment in higher return areas [2] - MetLife's shares have increased by 9.4% over the past three months, outperforming the industry growth of 5.3% [5] Market Context - The launch of Chariot Re is timely, as there is a rising global demand for life insurance, reinsurance, and retirement solutions, which MetLife can capitalize on through innovative reinsurance offerings [4] - The collaboration with General Atlantic is expected to support sustainable growth for Chariot Re in the long term [4]

Core Insights - Albert Anthony is a Croatian-American media personality and financial contributor, reaching over 1 million investors globally since 2023 [1] - His content on Seeking Alpha averages over 25,000 views monthly, focusing on stock analysis and dividend income portfolio building [1] - In addition to financial media, he has participated in city council politics in Croatia and ran for Parliament in 2024 [1] Company and Industry Analysis - Albert Anthony provides curated analysis of stocks trading on major US exchanges, offering a forward-looking perspective on stock performance [1] - He has experience in financial services, having worked at Charles Schwab and completed certifications from various prestigious institutions [1] - His involvement in the Croatian Economic Association indicates a commitment to economic discourse and policy development [1]

Financial Performance - Total revenues for Q3 2024 were $18,440 million, an increase of 16% compared to $15,866 million in Q3 2023[16]. - Net investment income rose to $5,227 million in Q3 2024, up 8.4% from $4,825 million in Q3 2023[16]. - Net income attributable to MetLife, Inc. for Q3 2024 was $1,342 million, significantly higher than $489 million in Q3 2023, representing a 174% increase[16]. - Basic earnings per share for Q3 2024 were $1.82, compared to $0.56 in Q3 2023, reflecting a 225% increase[16]. - Comprehensive income for Q3 2024 was $4,838 million, a recovery from a loss of $3,373 million in Q3 2023[16]. - Total revenues for the three months ended September 30, 2024, were $18,440 million, an increase from $17,614 million in the previous period, representing a growth of 4.7%[44]. - Adjusted earnings for the quarter were $1,442 million, showing a decrease from $1,624 million, which is a decline of 11.2%[44]. - Total revenues for the nine months ended September 30, 2024, amounted to $53.313 billion, a decrease of $993 million compared to the previous period[48]. - Adjusted earnings for the period were $4.505 billion, with a decrease of $542 million compared to the previous year[48]. - The company reported net income of $3.169 billion for the period[48]. Investment and Assets - Total investments increased to $455.283 billion as of September 30, 2024, compared to $446.137 billion at December 31, 2023, reflecting a growth of approximately 2.57%[14]. - Total assets reached $704.976 billion, compared to $687.584 billion, marking an increase of about 2.00%[14]. - Cash and cash equivalents rose to $21.765 billion, up from $20.639 billion, indicating an increase of approximately 5.46%[14]. - The total balance of separate accounts at the end of September 30, 2024, was $40,448 million, a decrease from $48,265 million at the beginning of the period[121]. - Total fixed maturity securities amounted to $64,250 million as of September 30, 2024, compared to $62,193 million in the previous year, reflecting an increase of approximately 3.3%[123]. - The total amount of U.S. government and agency bonds was $19,611 million, while foreign government bonds reached $5,388 million[125]. - The total amount of corporate bonds in the energy sector was $1,018 million, highlighting investment in this industry[125]. Policyholder Accounts and Benefits - Policyholder account balances increased to $224.609 billion from $219.269 billion, representing a growth of approximately 2.00%[14]. - Policyholder benefits and claims decreased to $10,597 million in Q3 2024 from $11,130 million in Q3 2023, a decline of 4.8%[16]. - Policyholder benefits and claims totaled $32.601 billion, with a slight decrease of $30 million from the previous period[48]. - The total policyholder account balances increased to $224,609 million as of September 30, 2024, up from $219,269 million at the end of December 2023, representing a growth of about 2.9%[82]. Liabilities and Equity - The company reported a decrease in total liabilities to $673.812 billion from $657.331 billion, a reduction of approximately 2.53%[14]. - MetLife, Inc.'s stockholders' equity grew to $30.885 billion from $30.015 billion, reflecting an increase of approximately 2.89%[14]. - Retained earnings increased to $41.765 billion from $40.146 billion, showing a growth of about 4.03%[14]. - The market risk benefits at estimated fair value were $3.117 billion, slightly down from $3.179 billion, indicating a decrease of about 1.95%[14]. Segment Performance - The company is organized into six segments: Group Benefits, Retirement and Income Solutions, Asia, Latin America, EMEA, and MetLife Holdings, indicating a diversified operational structure[24]. - The Group Benefits segment offers a range of products including life insurance, dental, and disability insurance, targeting corporations and their employees[33]. - The RIS segment provides life and annuity-based insurance and investment products, including pension risk transfer products and structured settlements[34]. - The Asia segment offers life insurance, accident & health insurance, and retirement savings products to individuals and corporations[35]. - The Latin America segment includes life insurance, retirement savings, and credit insurance products for individuals and corporations[36]. - The EMEA segment provides life insurance and retirement products to individuals and corporations[37]. Cash Flow and Operating Activities - Net cash provided by operating activities for the nine months ended September 30, 2024, was $9,987 million, compared to $8,539 million for the same period in 2023, representing an increase of 17.0%[22]. - Net cash used in investing activities was $(6,129) million for the nine months ended September 30, 2024, compared to $(10,822) million in 2023, indicating a reduction in cash outflow of 43.0%[22]. Derivatives and Risk Management - The total gross notional amount of derivatives was $290,446 million, with estimated assets of $8,172 million and fair value liabilities of $6,357 million[194]. - The company utilized derivatives to hedge variable annuity guarantees, with a gross notional amount of $9,092 million and estimated assets of $13 million as of September 30, 2024[196]. - The estimated fair value of interest rate swaps designated as hedging instruments was $1,654 million in assets and $1,062 million in liabilities as of September 30, 2024[194]. Future Outlook - The company plans to focus on market expansion and new product development in the upcoming quarters[44]. - The company is focusing on market expansion and new product development to enhance future growth prospects[46].

Core Insights - MetLife, Inc. reported third-quarter 2024 adjusted operating earnings of $1.93 per share, missing the Zacks Consensus Estimate by 10.7%, and a 1% decline year over year [1] - Adjusted operating revenues were $17.6 billion, down 3.4% year over year, also missing the consensus mark by 4.7% [1] Financial Performance - Total expenses increased to $16.4 billion, up 7.3% year over year, primarily due to higher interest credited to policyholder account balances [4] - Adjusted net investment income rose 2% year over year to $5.1 billion, supported by rising rates and asset growth [3] - Net income more than doubled year over year to $1.3 billion, while adjusted return on equity decreased by 30 basis points to 14.6% [5] Segment Analysis - Group Benefits segment adjusted earnings fell 27% year over year to $373 million, missing the consensus estimate [6] - RIS segment adjusted earnings increased 0.4% year over year to $472 million, beating the consensus mark [7] - Asia segment adjusted earnings grew 11% year over year to $306 million but missed the consensus estimate [8] - Latin America segment adjusted earnings rose 11% year over year to $221 million, lagging the consensus mark [9] - EMEA segment adjusted earnings declined 20% year over year to $70 million, exceeding the consensus estimate [10] - MetLife Holdings segment adjusted earnings dropped 13% year over year to $182 million, beating the consensus mark [11] - Corporate & Other segment incurred an adjusted loss of $249 million, an improvement from the prior year's loss [12] Balance Sheet and Capital Deployment - As of September 30, 2024, MetLife had cash and cash equivalents of $14.9 billion, down 27.7% from the end of 2023 [13] - Total assets decreased by 5.2% to $652.1 billion, while total equity fell 14.4% to $25.9 billion [13] - The company repurchased shares worth $0.8 billion in the third quarter and plans additional repurchases of approximately $130 million in October 2024 [15] 2024 Outlook - Management anticipates variable investment income of $1.5 billion for 2024, with adjusted losses in Corporate & Other expected between $750 million and $850 million [16] - Adjusted earnings in the Asia segment are projected to grow by 20% [17] - Near-term targets include a 4-6% increase in adjusted PFOs for Group Benefits and MetLife Holdings segments over the next three years [18] - The company aims for an adjusted return on equity of 13-15% and a free cash flow ratio of 65-75% of adjusted earnings [19]

Core Insights - MetLife reported revenue of $17.61 billion for the quarter ended September 2024, a decrease of 3.4% year-over-year, and EPS of $1.93, down from $1.97 in the same quarter last year [1] - The revenue fell short of the Zacks Consensus Estimate of $18.47 billion by 4.66%, and the EPS was 10.65% below the consensus estimate of $2.16 [1] Financial Performance Metrics - Total Adjusted Revenue for Latin America was $1.93 billion, slightly below the estimated $1.98 billion, reflecting a year-over-year increase of 4.4% [3] - Adjusted Revenue for Corporate & Other Premiums reported a loss of $6 million, significantly lower than the estimated $16.67 million, marking a year-over-year decline of 166.7% [3] - Total Adjusted Revenue for Asia was $2.84 billion, below the estimated $3.02 billion, with a year-over-year increase of 2.8% [3] - Net investment income was reported at $5.23 billion, exceeding the estimated $5.13 billion, with a year-over-year increase of 6.9% [3] - Revenue from Universal life and investment-type product policy fees was $1.23 billion, below the estimated $1.33 billion, representing a year-over-year decline of 8% [3] - Adjusted Revenue for MetLife Holdings Premiums was $673 million, below the estimated $688.58 million, with a year-over-year decrease of 1.8% [3] - Adjusted Revenue for MetLife Holdings Net investment income was $981 million, below the estimated $1.01 billion, reflecting a year-over-year decline [3] Stock Performance - MetLife shares have returned +1.3% over the past month, compared to the Zacks S&P 500 composite's +1.8% change, with a current Zacks Rank of 3 (Hold) indicating potential performance in line with the broader market [3]