Aug 6, 2026 earnings call — New Frontier strategy drives results and capital returns
MetLife reported adjusted earnings of approximately $1.6 billion or $2.43 per share, up 15% year-over-year.
Revenue $19.1B (est $19.7B) · EPS $2.43 (est $2.30)
Key quotes
"New Frontier is the right strategy for MetLife, and we are moving forward with speed and purpose."
"Adjusted earnings increased in every business segment compared with a year ago."
"In the second quarter, we returned approximately $1.1 billion to shareholders, including approximately $700 million of share repurchases."
Analyst Q&A 7
M&A areas and Group Life pricing
Q (Ryan Krueger · KBW): He asked which parts of the company they'd consider for acquisitions now, and whether favorable Group Life mortality would force pricing changes for customers.
A: Management said their M&A philosophy is unchanged and they focus on strategic fits, especially asset management and adjacent group capabilities, while remaining opportunistic elsewhere. On Group Life, they saw about 2 points of favorability this quarter but expect those items to normalize and any margin normalization to unfold gradually over the 3 to 5 year renewal cycle.
"The more likely area I would say is asset management, and you saw us do the PineBridge Investments deal late last year." — Michel Khalaf (CEO)
Mortality in other businesses
Q (Pablo Singzon · JPMorgan): He asked how mortality experience looks outside Group Life — in individual life, Corporate & Other, PRT, and RIS (older-age blocks).
A: They said RIS covers an older, largely retiree population and the improvements there match what is already reflected in expectations and reserves. Management noted working-age mortality improved faster than the over-65 group, and underwriting results in RIS are emerging in line with pricing and reserving expectations.
"I would say, think about the RIS population as being sitting largely older population, retiree population and the improvements we're seeing in that population are very much in line with what we have baked into our expectations and reserves." — Ramy Tadros
PRT market and Japan sales
Q (Suneet Kamath · Jefferies): He asked whether PRT activity is slowing and what would improve it, and why Japan sales are growing while markets face volatility.
A: For PRT they said the jumbo market is lumpy, the first half was lighter after a record 2025, but the pipeline is stronger for Q3 and Q4 and they remain disciplined on pricing; they expect to be within retained balance growth of 3% to 5% for the year. On Japan, they said sales are up materially (Q2 up 17%, year-to-date up 19%) driven by scale, product innovation in U.S. dollar and local currency products, and strong execution, and momentum continued into July despite some yen volatility.
"The first half of the year has been lighter, particularly from the jumbo space." — Ramy Tadros
Interest in LatAm deals and portfolio shifts
Q (Thomas Gallagher · Evercore): He asked if they would be interested in Latin America assets for sale and whether higher rates have led them to reposition portfolios in Japan or the U.S.
A: They said they will not comment on market speculation but remain in the deal flow and are highly disciplined with a high bar for M&A; they also highlighted strong LatAm momentum and that LatAm is on track to generate $1 billion in earnings this year. On portfolio positioning, they said ALM and risk management guide reinvestment decisions, there is no quick change to portfolios, and over time higher rates provide positive momentum; Japan now has a balanced U.S./yen portfolio.
"We don't comment on market speculation, and we're not going to start now." — Michel Khalaf (CEO)
Private equity trimming and Group PFO growth
Q (Wilma Jackson Burdis · Raymond James): She asked why private equity exposure was trimmed and whether Group PFO growth could accelerate from about 4% toward 7%.
A: They said the private equity allocation is on a multiyear path to modestly decline because the rate environment differs from several years ago; they remain invested but expect distributions to outpace contributions and saw an opportunistic sale earlier. On Group PFO, they said top-line momentum is strong with sales and persistency up, rate actions running as expected, rising participation, and double-digit voluntary growth; the 4%–7% range is a multiyear target and any single year can be at the low or high end.
"I think all in all, the direction of travel is a modest decline over time on PE, but that doesn't mean we're going to continue to invest in the space." — John McCallion (CFO)
Nonmedical health and Asia PFO growth
Q (Joel Hurwitz · Dowling): He asked about nonmedical health experience this quarter (dental, disability, PFML) and why Asia PFO growth reaccelerated and if it is sustainable.
A: They said PFML had the expected higher upfront claims that tend to normalize after a few months and PFML submissions have declined as that run-in effect passed; they are taking rate actions where needed. Disability results were favorable with improved recoveries driven by data and AI investments, dental shows normal seasonality that should improve in H2, and Asia PFO/AUM growth is driven by retirement AUM focus, growing FAS 60-type yen business, and yen now represents over 50% of sales.
"As you may recall, the PFML products have a claim pattern where you have higher upfront claims that tend to normalize after a few months of the introduction of that program." — Ramy Tadros
RIS spreads and Group mortality outlook
Q (Wesley Carmichael · Wells Fargo): He asked how base spreads in RIS might trend in H2 given higher rates, and where group mortality might land for the back half or full year.
A: They said core spreads were about 100 basis points, total 97, and they still view a 95 to 100 range as the baseline; seasonal real estate income may reverse and Q3 might sit near the midpoint of the range. On group mortality they noted Q1 has the most pronounced seasonality from flu severity, expect the two points of normalization seen this quarter not to repeat in H2, and that normalization would be gradual.
"So when we think about looking ahead, we still think the 95 to 100 even with the rate environment." — John McCallion (CFO)