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MET's net investment income rose 10% to $6B, while expenses climbed 8.5% to $17.5B, limiting the upside.
MetLife, Inc. (MET - Free Report) reported third-quarter 2026 adjusted operating earnings per share (EPS) of $2.85, which beat the Zacks Consensus Estimate by 5.2%. The bottom line advanced 22% year over year.
Adjusted operating revenues improved 11.2% year over year to $19.91 billion. The top line missed the consensus mark by 1%.
MetLife's quarterly results benefited from higher variable investment income, broad-based business volume growth and favorable underwriting. Improved investment margins and growth in adjusted premiums, fees and other revenues (PFOs) also supported results. However, increased expenses and unfavorable actuarial adjustments partially offset the upside.
MarketAxess Holdings Inc. Price, Consensus and EPS Surprise
Adjusted PFOs, excluding pension risk transfers (PRT), were $13.5 billion, up 8% year over year. The metric benefited from revenue growth across all six business segments.
Adjusted net investment income increased 10% year over year to $6 billion, driven by higher variable investment income, asset growth and investments in a higher-rate environment.
Total expenses of $17.5 billion increased 8.5% year over year, reflecting higher policyholder benefits and claims, and other expenses, net of capitalization of deferred acquisition costs. Adjusted expense ratio, excluding total notable items related to adjusted other expenses and PRT, deteriorated 40 basis points year over year to 20.2%.
Net income climbed 187% year over year to $2.4 billion, aided by net derivative gains and improved adjusted earnings. Adjusted return on equity, excluding total notable items, improved 290 basis points year over year to 19.6%.
MetLife’s Business Segments in Focus
Group Benefits: The segment recorded adjusted earnings of $523 million, which rose 15% year over year and beat the Zacks Consensus Estimate by 3.2%. Favorable underwriting supported its performance. Adjusted PFOs rose 3% year over year to $6.5 billion. Excluding participating contracts, the metric increased 5%, reflecting growth in core and voluntary products.
Retirement and Income Solutions (“RIS”): Adjusted earnings totaled $413 million, down 6% year over year, due to unfavorable actuarial adjustments. The metric missed the Zacks Consensus Estimates by 12.8%. Adjusted PFOs, excluding PRT, surged 33% to $1.6 billion, benefiting from higher post-retirement benefit sales and U.K. longevity reinsurance.
Asia: The segment reported adjusted earnings of $602 million, up 11% year over year on a reported basis and 14% on a constant-currency basis. The metric beat the Zacks Consensus Estimate by 17%. Excluding notable items, earnings grew 17% to $550 million, supported by higher variable investment income, favorable equity markets and volume growth. Adjusted PFOs increased 1% to $1.7 billion.
Latin America: Adjusted earnings rose 45% year over year to $215 million on a reported basis and 30% on a constant-currency basis. The metric missed the Zacks Consensus Estimates by 12.8%. The improvement reflected actuarial adjustments and the impact of a prior-year tax charge in Mexico. Excluding notable items, earnings increased 3% to $229 million. Adjusted PFOs advanced 22% to $2 billion, driven by strong regional growth.
EMEA: Adjusted earnings increased 24% year over year to $108 million and beat the Zacks Consensus Estimate by 8.1%, reflecting broad-based volume growth. Excluding notable items, earnings advanced 30% to $114 million. Adjusted PFOs grew 14% to $832 million, supported by strong sales momentum and solid renewal activity.
MetLife Investment Management: Adjusted earnings improved 9% year over year to $63 million, aided by business growth, including the addition of PineBridge Investments. Other revenues jumped 34% to $319 million, while total assets under management increased 14% to $723.4 billion.
Corporate & Other: Corporate & Other incurred an adjusted loss of $144 million compared with a loss of $146 million in the year-ago quarter. The loss was narrower than the Zacks Consensus Estimate of an adjusted loss of $145.4 million.
MET's Financial Position
MetLife exited the third quarter with cash and cash equivalents of $19.8 billion, down from $22 billion as of 2025-end. Total assets were $744.6 billion compared with $745.2 billion at the end of 2025.
Long-term debt totaled $14.3 billion, while short-term debt amounted to $289 million. Total equity declined to $22.5 billion from $28.7 billion as of 2025-end. Book value per share fell 22% year over year to $30.73.
Capital Deployment Update
MetLife repurchased shares worth $650 million during the quarter and paid common stock dividends of $380 million. Holding company cash and liquid assets totaled $3.4 billion as of September-end, within management's targeted cash buffer.
MetLife's 2026 Outlook and Operating Targets
Management continues to target double-digit annual adjusted EPS growth and an adjusted return on equity of 15-17%. The company remains on track to exceed its annual profitability target.
The direct expense ratio, excluding notable items related to direct expenses and PRT, was 11.9%. Management expects to outperform its 2026 target of 12.1%.
MetLife's earlier full-year guidance called for approximately $1.6 billion in pre-tax variable investment income. The third-quarter result exceeded the implied quarterly target of $400 million, primarily reflecting stronger private equity returns.
Several insurance companies, including The Travelers Companies, Inc. (TRV - Free Report) , The Hartford Insurance Group, Inc. (HIG - Free Report) and RenaissanceRe Holdings Ltd. (RNR - Free Report) , have already reported their results for the September quarter of 2026. Here’s how they have performed:
The Travelers Companies reported third-quarter 2026 core earnings of $9.18 per share, which beat the Zacks Consensus Estimate of $7.07 by 29.8%. The bottom line increased 12.8% year over year. Revenues of $12.45 billion surpassed the consensus estimate of $12.40 billion by 0.4% and remained nearly flat year over year. TRV’s earnings strength was driven by favorable prior-year reserve development and increased net investment income, partially offset by higher catastrophe losses.
The Hartford Insurance delivered third-quarter 2026 core earnings per share of $3.50, which beat the Zacks Consensus Estimate by 11.1%. However, the bottom line declined 2.5% year over year. The results benefited from HIG’s higher investment income and premium growth in Business Insurance. However, higher catastrophe losses and weaker Employee Benefits profitability partly offset the upside.
RenaissanceRe reported third-quarter 2026 operating income of $12.71 per share, which surpassed the Zacks Consensus Estimate by 12.9%. Yet, the bottom line fell from $15.62 a year ago. The quarterly earnings benefited from lower operational expenses and higher net investment income. The upside was partly offset by lower net premiums earned, weaker underwriting results in RNR’s Casualty & Specialty segment and lower fee income.
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MET Q3 Earnings Beat on Higher Investment Income, Revenues Miss
Key Takeaways
MetLife, Inc. (MET - Free Report) reported third-quarter 2026 adjusted operating earnings per share (EPS) of $2.85, which beat the Zacks Consensus Estimate by 5.2%. The bottom line advanced 22% year over year.
Adjusted operating revenues improved 11.2% year over year to $19.91 billion. The top line missed the consensus mark by 1%.
MetLife's quarterly results benefited from higher variable investment income, broad-based business volume growth and favorable underwriting. Improved investment margins and growth in adjusted premiums, fees and other revenues (PFOs) also supported results. However, increased expenses and unfavorable actuarial adjustments partially offset the upside.
MarketAxess Holdings Inc. Price, Consensus and EPS Surprise
MarketAxess Holdings Inc. price-consensus-eps-surprise-chart | MarketAxess Holdings Inc. Quote
A Closer Look at Q3 Performance
Adjusted PFOs, excluding pension risk transfers (PRT), were $13.5 billion, up 8% year over year. The metric benefited from revenue growth across all six business segments.
Adjusted net investment income increased 10% year over year to $6 billion, driven by higher variable investment income, asset growth and investments in a higher-rate environment.
Total expenses of $17.5 billion increased 8.5% year over year, reflecting higher policyholder benefits and claims, and other expenses, net of capitalization of deferred acquisition costs. Adjusted expense ratio, excluding total notable items related to adjusted other expenses and PRT, deteriorated 40 basis points year over year to 20.2%.
Net income climbed 187% year over year to $2.4 billion, aided by net derivative gains and improved adjusted earnings. Adjusted return on equity, excluding total notable items, improved 290 basis points year over year to 19.6%.
MetLife’s Business Segments in Focus
Group Benefits: The segment recorded adjusted earnings of $523 million, which rose 15% year over year and beat the Zacks Consensus Estimate by 3.2%. Favorable underwriting supported its performance. Adjusted PFOs rose 3% year over year to $6.5 billion. Excluding participating contracts, the metric increased 5%, reflecting growth in core and voluntary products.
Retirement and Income Solutions (“RIS”): Adjusted earnings totaled $413 million, down 6% year over year, due to unfavorable actuarial adjustments. The metric missed the Zacks Consensus Estimates by 12.8%. Adjusted PFOs, excluding PRT, surged 33% to $1.6 billion, benefiting from higher post-retirement benefit sales and U.K. longevity reinsurance.
Asia: The segment reported adjusted earnings of $602 million, up 11% year over year on a reported basis and 14% on a constant-currency basis. The metric beat the Zacks Consensus Estimate by 17%. Excluding notable items, earnings grew 17% to $550 million, supported by higher variable investment income, favorable equity markets and volume growth. Adjusted PFOs increased 1% to $1.7 billion.
Latin America: Adjusted earnings rose 45% year over year to $215 million on a reported basis and 30% on a constant-currency basis. The metric missed the Zacks Consensus Estimates by 12.8%. The improvement reflected actuarial adjustments and the impact of a prior-year tax charge in Mexico. Excluding notable items, earnings increased 3% to $229 million. Adjusted PFOs advanced 22% to $2 billion, driven by strong regional growth.
EMEA: Adjusted earnings increased 24% year over year to $108 million and beat the Zacks Consensus Estimate by 8.1%, reflecting broad-based volume growth. Excluding notable items, earnings advanced 30% to $114 million. Adjusted PFOs grew 14% to $832 million, supported by strong sales momentum and solid renewal activity.
MetLife Investment Management: Adjusted earnings improved 9% year over year to $63 million, aided by business growth, including the addition of PineBridge Investments. Other revenues jumped 34% to $319 million, while total assets under management increased 14% to $723.4 billion.
Corporate & Other: Corporate & Other incurred an adjusted loss of $144 million compared with a loss of $146 million in the year-ago quarter. The loss was narrower than the Zacks Consensus Estimate of an adjusted loss of $145.4 million.
MET's Financial Position
MetLife exited the third quarter with cash and cash equivalents of $19.8 billion, down from $22 billion as of 2025-end. Total assets were $744.6 billion compared with $745.2 billion at the end of 2025.
Long-term debt totaled $14.3 billion, while short-term debt amounted to $289 million. Total equity declined to $22.5 billion from $28.7 billion as of 2025-end. Book value per share fell 22% year over year to $30.73.
Capital Deployment Update
MetLife repurchased shares worth $650 million during the quarter and paid common stock dividends of $380 million. Holding company cash and liquid assets totaled $3.4 billion as of September-end, within management's targeted cash buffer.
MetLife's 2026 Outlook and Operating Targets
Management continues to target double-digit annual adjusted EPS growth and an adjusted return on equity of 15-17%. The company remains on track to exceed its annual profitability target.
The direct expense ratio, excluding notable items related to direct expenses and PRT, was 11.9%. Management expects to outperform its 2026 target of 12.1%.
MetLife's earlier full-year guidance called for approximately $1.6 billion in pre-tax variable investment income. The third-quarter result exceeded the implied quarterly target of $400 million, primarily reflecting stronger private equity returns.
MET’s Zacks Rank
MET currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
How Did Other Insurers Perform?
Several insurance companies, including The Travelers Companies, Inc. (TRV - Free Report) , The Hartford Insurance Group, Inc. (HIG - Free Report) and RenaissanceRe Holdings Ltd. (RNR - Free Report) , have already reported their results for the September quarter of 2026. Here’s how they have performed:
The Travelers Companies reported third-quarter 2026 core earnings of $9.18 per share, which beat the Zacks Consensus Estimate of $7.07 by 29.8%. The bottom line increased 12.8% year over year. Revenues of $12.45 billion surpassed the consensus estimate of $12.40 billion by 0.4% and remained nearly flat year over year. TRV’s earnings strength was driven by favorable prior-year reserve development and increased net investment income, partially offset by higher catastrophe losses.
The Hartford Insurance delivered third-quarter 2026 core earnings per share of $3.50, which beat the Zacks Consensus Estimate by 11.1%. However, the bottom line declined 2.5% year over year. The results benefited from HIG’s higher investment income and premium growth in Business Insurance. However, higher catastrophe losses and weaker Employee Benefits profitability partly offset the upside.
RenaissanceRe reported third-quarter 2026 operating income of $12.71 per share, which surpassed the Zacks Consensus Estimate by 12.9%. Yet, the bottom line fell from $15.62 a year ago. The quarterly earnings benefited from lower operational expenses and higher net investment income. The upside was partly offset by lower net premiums earned, weaker underwriting results in RNR’s Casualty & Specialty segment and lower fee income.