Metlife Inc

Strong quarter; earnings growth outpacing EPS and ROE at upper target - Adjusted earnings: ~$1.6B ($2.43/share), +15% YoY; Adjusted EPS +20% (outpacing earnings due to capital management). - Adjusted ROE: 17%, at the top end of the 15–17% target range (again, second quarter in a row) and well above cost of capital. - Adjusted premiums/fees/revenues (ex pension risk transfers): +5% YoY; Variable investment income: $231M pretax (see “bad/surprising” below). - Direct expense ratio: 12.1%, in line with full-year target despite ~50 bps impact from PineBridge (higher expense profile), with confidence in beating the 2026 ~12.1% target.

Core business momentum across segments (growth broad-based, underwriting favorable) - Group Benefits: adjusted earnings $503M (+25% YoY); Group Life mortality ratio 79% (favorable vs target range 83–88%). - RIS (Retirement & Income Solutions): adjusted earnings $377M (+2% YoY); PFOs ex pension risk transfers +19% (driven by U.K. longevity reinsurance and structured settlements). - Asia: adjusted earnings $420M (+21% reported / +25% constant currency); sales +17% (constant currency), strong Korea momentum; Japan showed ~90% A&H growth on a new medical product. - Latin America: adjusted earnings $268M, record quarter, +15% YoY (+4% constant currency) with strong volume and persistency. - EMEA: adjusted earnings $108M (+8% / +11% constant currency); sales +15% (constant currency), renewals supporting durability.

Investment Management (MIM) integrating PineBridge; upward earnings trajectory - MIM adjusted earnings: $57M (+6%), helped by PineBridge integration and expense management. - Total AUM: ~$748B (up $12B sequentially), including + $7B institutional AUM. - Operating margin: +410 bps improvement in the quarter. - Outlook: Full-year 2026 adjusted earnings guidance $240M–$280M, likely toward low end, and 2027 guidance remains intact; management expects MIM’s earnings to keep trending upward through 2H26.