MetLife Adjusted Earnings Per Share Hit $2.85, Up 22%, As Investment Income Surges
Net income reached $2.4 billion, but book value per share fell 22% to $30.73 as unrealized investment losses grew.
MetLife, the insurer that sells life, dental and disability coverage, annuities and asset management, earned $2.85 a share on an adjusted basis in the third quarter, up 22% and excluding notable items. The company calls it the highest-ever quarter for adjusted earnings per share, with revenue up in all six segments.
Investment income does the lifting
Adjusted earnings rose 12% to $1.8 billion, or $2.78 a share, up 17% including a $46 million hit from notable items. The company credited higher variable investment income, broad volume growth and favorable underwriting. Variable investment income, which sits inside net investment income, climbed 49% to $720 million.
CEO Michel Khalaf said MetLife delivered "the highest quarterly adjusted earnings per share in MetLife’s history," adding: "We are firing on all cylinders in year two of New Frontier."
Net income rose 187% to $2.4 billion, or $3.67 a share. Net derivative gains of $698 million before tax, against a $929 million loss a year earlier, helped; the company tied them to higher U.S. interest rates. Premiums, fees and other revenues rose 12% to $14.1 billion, and 8% to $13.5 billion excluding pension risk transfers.
Book value falls 22% on unrealized losses
Book value per share dropped 22% to $30.73, from $39.52 a year earlier. Adjusted book value per share, which strips out most unrealized investment swings, rose 5% to $59.41.
Common stockholders' equity was $19.4 billion, down from $26.1 billion. Unrealized investment losses, net of offsets and tax, reached $30.7 billion at September 30, against $14.7 billion a year earlier.
Segments and capital returned
Group Benefits adjusted earnings rose 15% to $523 million. Retirement and Income Solutions fell 6% to $413 million, but rose 12% excluding notable items. Asia rose 11% to $602 million, Latin America 45% to $215 million, EMEA 24% to $108 million and MetLife Investment Management 9% to $63 million.
MetLife returned about $1 billion to shareholders: $650 million of buybacks and $380 million of dividends. Holding company cash and liquid assets stood at $3.4 billion.
MetLife holds its earnings call Thursday from 9 a.m. to 10 a.m. ET.
Sources
- 8-K Filing — METLIFE INC (MET) — SEC EDGAR
- Exhibit ex991earningsreleasetables.htm — METLIFE INC 8-K exhibit — SEC EDGAR
- Exhibit ex992qfs8kdoc.htm — METLIFE INC 8-K exhibit — SEC EDGAR
- Exhibit ex993totalaum.htm — METLIFE INC 8-K exhibit — SEC EDGAR
- Exhibit ex994earningscallpresent.htm — METLIFE INC 8-K exhibit — SEC EDGAR
- MetLife Announces 3Q 2026 Results — businesswire.com
