MetLife, Inc. (NYSE: MET) reported fourth‑quarter 2025 results that included a revenue of $23.81 billion, up 20.7% year‑over‑year, and a net income of $778 million, a 37% decline from the prior year. Adjusted earnings for the quarter were $1.60 billion, with adjusted earnings per share of $2.49, a 19% increase that beat consensus estimates of $2.36–$2.37 by $0.12–$0.13, or roughly 5–6%. Adjusted return on equity rose to 17.6%, comfortably above the company’s target range of 15–17%.
The revenue growth was driven primarily by the Group Benefits and Retirement & Income Solutions (RIS) segments, which benefited from strong demand for group life and disability products and record sales in RIS, including large pension risk‑transfer deals. The upside was partially offset by a $646 million net derivative loss that reduced reported revenue, illustrating the impact of market‑related accounting charges on the top line. Despite the revenue miss, the company’s mix shift toward higher‑margin RIS and investment‑management services helped sustain earnings growth.
Net income fell 37% largely because the $646 million derivative loss was a one‑time charge that did not affect operating profitability. Variable investment income, which rose to $497 million in the quarter, helped cushion the impact of the loss and contributed to the positive adjusted earnings outcome. The company’s disciplined expense management, reflected in a direct expense ratio of 11.7% for the year, further supported the earnings beat.
Adjusted earnings per share of $2.49 beat analyst expectations by $0.12–$0.13, a 5–6% lift, underscoring the effectiveness of cost controls and the strength of variable investment income. The company’s adjusted ROE of 17.6% indicates that the earnings power of the business remains robust, even as revenue growth slowed. The margin expansion was driven by higher pricing in RIS and the growing MetLife Investment Management (MIM) segment, which added $742 billion in assets under management after the PineBridge acquisition.
Full‑year 2025 results showed revenue of $57.61 billion, up 10% from $52.00 billion in 2024, and full‑year adjusted earnings of $5.90 billion, a 3% increase from $5.73 billion. Full‑year adjusted EPS rose to $8.89, a 10% gain over the prior year’s $8.00, beating consensus estimates of $8.35–$8.40 by $0.49–$0.54, or 6–7%. Full‑year adjusted ROE climbed to 16.0%, slightly below the 16.9% reported in the original article but still above the company’s target range. The revenue miss relative to analyst expectations—$57.61 billion versus consensus estimates of $60–$65 billion—was largely attributed to the derivative loss and a modest decline in legacy life‑insurance premiums.
CEO Michel Khalaf emphasized that the company’s “New Frontier” strategy is gaining traction, noting that “one year into New Frontier, it is clear we have the right strategy at the right time, focused on the right growth opportunities, and measuring ourselves against the right metrics.” He added that the foundation built in 2025 positions MetLife to accelerate growth responsibly and deploy capital prudently. Market reaction was muted, with pre‑market trading showing a modest 2.2% rise, reflecting investors’ balanced view of the EPS beat against the revenue miss and the impact of the derivative loss.
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