MetLife, Inc.
CEO : Mr. Michel Abbas Khalaf
Quarterly earnings growth(YoY,%)
| Period | Revenue | Operating Income | EPS | Release Date |
|---|---|---|---|---|
| 2022 Q4 | -14.9% YoY | -75.7% | 17.4% | 2023-02-02 |
John McCallion says,
Financial Performance Highlights
- Net income in 4Q of ’22 was $1.3 billion, $88 million higher than adjusted earnings.
- Net investment gains in the fourth quarter were primarily driven by real estate sales, offset by losses on the fixed maturity portfolio.
- Credit losses in the portfolio remain modest.
- Adjusted earnings in 4Q of ’22 were $1.2 billion, down 28% YoY, primarily due to lower variable investment income.
- Adjusted earnings per share were $1.55, down 23% YoY.
U.S. Group Benefits Segment
- Adjusted earnings were $400 million versus $20 million in 4Q of ’21.
- Group Life mortality ratio was 87.6% in the fourth quarter of ’22.
- Group Benefits adjusted PFOs were essentially flat YoY.
Retirement and Income Solutions Segment
- Adjusted earnings were down 40% YoY.
- RIS investment spreads were 96 basis points and 112 basis points excluding VII.
- RIS liability exposures were down 1% YoY.
- RIS had strong volume growth driven by sales up 23% in 2022.
Asia Segment
- Adjusted earnings were down 63% YoY, primarily due to lower variable investment income.
- Asia’s underwriting was modestly unfavorable versus Q4 of ’21, but saw a significant sequential improvement due to lower COVID claims in Japan.
- General account assets under management on an amortized cost basis grew 4% on a constant currency basis.
Latin America Segment
- Adjusted earnings were $181 million, up 45% YoY.
- COVID-19 related deaths in Mexico were down significantly YoY.
- LatAm’s top line continues to perform well as adjusted PFOs are up 20% YoY on a constant currency basis.
EMEA Segment
- Adjusted earnings were $70 million, up 67% YoY.
- EMEA adjusted PFOs were up 2% on a constant currency basis.
Ramy Tadros says,
Overall Impact of Potential Recession on Business
- No significant impact seen on the group business
- Difficult to speculate how a recession scenario could play out
- Low unemployment levels in the labor market
- Long-term trends favor benefits in the workplace
The Franchise’s Resilience to Downturn
- Highly diversified book by industry and size of employer
- Excellent sales momentum in ’23
- Exceptional performance of the in-force book with respect to 1/1 persistency, renewal, and rate actions
- Significant growth opportunities in the market due to investments in voluntary opportunity, national accounts business, and growth in regional markets
- Confidence in guidance range despite uncertainties and potential for recession
Q & A sessions,
Guidance Raise
- Provided a guidance raise of 1 to 1.2.
PFO Decline versus Earnings
- Movement of fees below the line resulted in a revenue decline but not an earnings decline.
- Claims also moved down below the line as per accrual-based accounting.
Marginal Positive from LDTI
- Runoff business shows resiliency and has a marginal positive impact from LDTI.
Optimization Efforts
- The team has done a great job in finding improvements around expenses and contracts.
Equity Outlook
- Guidance range of 1 to 1.2 is considered a good outlook.
No bad stock 