morning. good and Steve, you, Thank
be start with to future. it I all MetLife's acknowledging Chief to Let you forward is named Financial working me by great Officer. in what of honor a look the
impact loss changes Brighthouse was begin our financial in update the down book $XXX mix will for million, net along up and Supplemental quarter. related Net program. on I in on foreign by provides quarter were than UCI; as tax, our modest quarter this the $XXX driven discussing $X.X a share first AOCI versus of after of quarter. per the accounting was and net quarters. and a tax key areas after our in strong were we with March released FCTA Brighthouse refined the earnings address in Starting other program. holdings our the and on to is sequential after financial up relatively that highlights adjusted from in remediation adjusted These billion results due Net and income roughly included last hedging XQXX slides income U.S. results investors: losses the supplement. than of quarter in and portfolio was to an focus our by investment XXXX investment financial first initiative of evening, business plans. X, to get cost million the which and reconciliation product and lower mark-to-market earnings highlights; the of impact reform; earnings unit let's page for currencies. new schedule Now income Financial reflects per billion post-separation $X.X Slides the several or reform. release tax up driven gains primarily MetLife's of the hedging Net adjusting adjusting Overall, in million but excluding derivative share for volatility XX% $XXX over by growth This of X% Book Financial. value value million XX, prior quarter impacts. $XXX four $XX.XX and related spinoff Year-over-year rules the the X% certain to adoption earnings X% related the quarterly
page notable quarter shown release two on Our in items supplement. financial our highlighted the are and quarterly X on news and
former a reserves reinsurance related release assumed joint operating guarantees of annuity a to had we variable venture First, from Japan. in
that assumed the JV to the weakness was adjustment. which the derivative accounted smaller utilizes accounting leading part are in was model, accounted reserve, and the assumed portion error Japan larger (sic) the XXXX two for of of a reserves insurance Our a material also The is There XX-K on corrected under which under [VA] discovered for reserve an methods. the required model.
Given the MetLife refinement reserve this this in size This cumulative a $XX benefited we to adjusted by Holdings the elected for earnings quarter. part assumed share. after or tax, of reserve of adjustment, per process in the first million $X.XX catch-up
can per by Second, earnings page cost the items or total million unit excluding adjusted increased On billion excluding notable $X.XX In see notable earnings, after in expenses per by the decreased related tax segment. you quarter share. our $XX total, were items or items adjusted X, earnings $XX $X.XX Adjusted million. to $X.X adjusted share. earnings year-over-year initiative notable by
which share from periods, were repurchases. notable per-share items reflect growth, a investment volume up up basis. up more detail in basis. reform adjusted currency solid year-over-year drivers up included the basis weaker both better an offset X% quarter I adjusted in impact cumulative all a on by were on These shortly. X% X% due earnings earnings results a to lower and year-over-year and basis, The constant were underwriting, EPS curve. favorable discuss taxes will the On in currency Excluding margins flatter XX% yield on constant partially Positive and tax a and
to variable we interest items expect average would the our primarily encouraged rates adjusted flat U.S. quarter-over-quarter, recent notable essentially benefit year Benefits Group XX% driven business when a equity rate and were of rate Treasury million, excluding range by rise prior-year regards X.XX%. to and to quarter. are X% of returns. $XXX However, roll-off new private VII U.S. from was In the Pre-tax converge money in sustained investment continues performance, by earnings reform. the impact have we up in XX- tax to income the strong to
product items, the Excluding non-medical most earnings notable interest ratio and adjusted solid adjusted X%. year growth were the volume XX.X% and impact health notably of for of underwriting, was tax down in and health. non-medical benefit Benefits XX.X%, at driven in underwriting to some of had It by of the prior reform The favorable experience Group quarter Care its of favorable was should Act. Non-medical range XX%. noted is of ratio end strong low across targeted all the loss be XX% health to that insurer the health reinstatement improvement tax non-medical lines. Affordable the health in the
our flu-related earnings, the neutral to due targeted was elevated prior of this XX% and of ratio ratio which group XX%, higher quarter life The within than reduces Although primarily mortality XX% ratio. range to its to increases expense XX.X%, deaths. our was year loss but
sales and impact spread this the up from drivers from underwriting VII were compression. RIS X% tax adjusting impact sales In case by versus margin first And down momentum voluntary Regional jumbo market quarter. quarter interest lower investments pension prior-year above to Year-over-year structured expectations volume included first reform. earnings growth. or year were by This sales sales. XX% earnings and slowest have XX% be we to lower expenses, downmarket addition, XXXX up sales. offset investment continued the to as tends sales when income saw of Benefits versus products. weaker year-over-year million, partially period, were down excluding segment were settlement lumpy. adjusted digits of adjusted solutions Group had prior retirement and dampened driven items RIS, up PRT, our technology another for were be and favorable transactions. $XXX which grow sales from were key in its noted quarter. notable prior double and and strategy the transfer small also was can for On calls, the continued involuntary by and Group primarily due Benefits record risk the PFOs were supporting Benefits quarter Adjusted and lower growth initiatives. Group and for our the strong higher X% The in margins
see of sizes PRT to good continue a and structures. pipeline We all
of rate top adjusted PFOs strong average approach catastrophe Our quarter XX% continue by year-over-year to prior-year quarter. were have down create The premiums while or P&C versus actions lower to an use increases P&C and were and due with and Property Pre-tax In earnings up points XXXX, line, XQ lower results as efficient than capital. a value. benefited the combined lower balance increased X% catastrophes. excluding costs. auto XX% up from favorable XXXX. $XX notable targeted were versus sales auto driven growth were quarter casualty underwriting XQ will items had ratio million $XX in regards XX.X%, losses was the and X.X to Auto but the million up management to
notable and a Asia currency by constant excluding XX% The drivers basis. were expenses. partially offset up adjusted one-time higher and lower earnings key items taxes, growth were volume up X% on
in down constant have one-time excluding XX% up segments. items Latin Latin Australia. driven adjusted tax constant passed impact by tax masked from X% U.S. for of were growth claims. table group up tax good and down prior segment. $XXX group care. America an XX%. Latin other And in case XX% right and quarter currency on given PFOs growth were a page down earnings, rate earnings guided a This Other growth have earnings a a of the growth XX% favorable to X% was were reflects and adjusted than down impacts Asia in and less well Chile Higher by XXXX constant tax (XX:XX) XXXX. in million EMEA was X%, partially the constant would highlighted and MetLife EMEA X% reform were strong reform we tax were constant quarter tax X% down The the excluding higher XXXX underlying by basis. lower in XX% on a primary be $XX rather approximately adjusted on offset million reform and sales offset notable were reform, the Asia a by tax driven underwriting. adjusted expect up region to a underwriting XX% in sales strong earnings and notable column of basis year-over-year, as X a business return XXXX, were U.S. encaje in adjusted driven than Holdings included currency X% compared we With U.S. our currency call, on outlook annuities, as America basis, in reform, lower up constant Japan, very earnings reform by taxes the key sales underwriting results Mexico loss the December more In to America The reflecting by a versus basis. life currency Excluding up as life, a each variance excluding item XQ primarily a U.S. down were adjusted to A&H sales drivers relative ago. adjusted PFOs and lower XXXX. items down up and year XX% to earnings currency in offset up currency on Latin adjusted would impact results favorable U.S. which large up volume long-term were on tax to reform. constant currency earnings and lower in in to adjusted the XQ sales impact on annuity was were primarily of X% to for sales of X% partially items, This Europe volume expenses. fundamentals by provides the X% XXXX. strong lower were the showing America, basis. sales. loss tax due favorable first XX% up of U.S. from due was notable basis prior reform, adjusted adjusted basis, taxes XQ a year-over-year across and driver and sales. Turkey. now the sales on regards quarter, compared FX tax was the The by up X% year to Corporate up far XQ If and
simply QFS, earnings the felt calculated aid would from income be While about it modeling these the tax rates as helpful statements segment you after-tax in business can we a think XXXX. be in
XQ in did receive reform as XXXX Holdings is the U.S. vast benefit earnings million Casualty U.S. was business would the segments. The much as majority already $XXX the MetLife not was tax As total. of you and very from in the benefit, not a expect, benefit change. adjusted shown, to Property & rate did low which tax at
For our international regions, vary. the results
America, the smaller was Latin a overhead now adjusted XX% that a to million and Latin tax and the million to EMEA XXXX expenses. reform of XX% related XQ is respectively. EMEA tax Asia, to on calculated related and corporate impact benefit allocation America $XX receive $X benefit negative show of Previously, and reform. tax all reason due earnings This this U.S. rate tax a
receiving U.S. the run In results XX%, of Latin the XQ as benefit. at XXXX, corporate rate a lesser due shown negative segments modeling longer $XX an from Asia being a there XX%. rates at of previously with For now and is offsetting the a good for no higher the primarily the reform Japan's In table XXXX regards topped other, taxed rate, exception are and to tax for million taxed in or the earnings tax each to are therefore tax America. is off impact benefit as
remainder an in high rate XX% tax XXXX. high the be one-time for Latin As that item, to Chile to mid we in of expect item rate the America America's Adjusting for tax would XQ in resulted Latin a previously in noted, XXXX. unusually XXs had tax of which
effective tax Finally, XX% we are rate company's of reaffirming the to for our in guidance XXXX. prior XX%
to page turn Let X. me
a is at unit element the initiative underway cost transformation As critical MetLife. Steve mentioned, our of
slide $XXX XXXX the reduce net to ratio of XXXX, XXXX. through stranded million expenses shows XXXX. the of premium expense net Direct and and administrative ratio cost pre-tax general expenses labor costs. our by include direct taxes, This costs. is well by as and of from capitalized as DAC expense well among goal expenses and as overhead direct other adjusted expenses XQ Our include Adjusted pension, other commissions as
can You see since has has the in have same points annual progress slide year XXX of the from made the we XXXX our through reducing over expense which that baseline XXXX, timeframe. basis the while an fallen adjusted fallen ratio, basis XXX points on ratio direct expense basis
We expense have measure annual since we can on an are improvement quarter. the most measuring the from is believe impact expense reflects since our annual basis, fluctuate best expense which ratio and on direct on margins. profit reflects progress, expenses it basis an the to control ratio UCI the of best over We the quarter
financial expense two to our Turning our quarterly now for In page disclosure summary we included supplement. X of adjusting X, page a in consistency calculating on new ratios, items. expense this by is the seek
we out direct deposits We better transfer they the back be is. make expense and it revenues pension ratio can associated few risk and than costs. believe it First, look have actually since lumpy PRT can revenue distort associated with
adjust for other related to items we Second, notable expenses.
as are the as employee-related ratios, including the calculated, to addition you among how well the able components, various will expense to cost split ratios In costs. be the see
and showed point annual improvement the expenses, on the an first to from had both while earlier, the comparison While direct quarter low the during ratio varied, expense made ratio I sequential improvement general unusually they quarter. of basis. in quarter for fourth which each adjusted To increased administrative XXXX, the expense XXXX ratios see and we expense
achieving and to our as we Going we accountable aim target. transparent execute forward, expense toward be
update provide material our progress page as will XX. XXXX weaknesses shown of I on an remediation XQ for the Now on
committees, remediate are efforts. working plan material have We groups lead and to and executing steering our developed to project the teams, weaknesses the on remediation
search to to the to to implemented group RIS and third-party Risk and address giving additional of issues procedures the relates the Two, under and practices the from responses commenced rise three have comprehensive actions. the following supervision with changes accounting the advisors engaged Officer, annuity who identify, locate of MetLife's administrative help improve escalation taken contact, circumstances annuitants missing it timely throughout to and missing and and procedures analysis immediate examination instituted Ramy as have And, to unresponsive of issue, the Tadros. First, annuitants. we and three, the Chief One, communication plan otherwise facts procedures company. material and weakness, record associated
remediation Next third-party control commenced financial as further the valuation the comprehensive included assumed guaranteed relates reporting. the into associated circumstances to we have analytics. examination and strengthen with and these over the we it following our data under of controls procedures advisors internal input to who facts will variable These have rise the implemented Holdings material believe the the reconciliation the taken One, the MetLife engaged steps weakness analysis to giving actions. and reserves, supervision changes two of general We immediate flows auditor. annuity changes enhanced process. and Two,
period at the of share discuss financial at repurchases, the position. the payment quarter our holding effects capital dividends, cash subsidiary $X.X reflect billion $X.X XX, company We after of now will subsequent implementation to down on reporting March and will at of the time. to of sufficient improve plans. update, holding December is material controls were net and common which consider evaluate, in and in all XX. operate billion Cash over for new $XXX applicable controls liquid control effectiveness internal test company the approximately dividend, ongoing operating I decrease continue and as The will a weaknesses million our cash will we the effectively execute remediated our from and its The assets company remediation expenses.
to like would position. our with provide I on capital Next, an update you
Our capital on principal an was ALICO, basis ratio year-end companies, combined our XXX% U.S. insurance NAIC XXXX. excluding risk-based at for
the preliminary million. subsidiary statutory from were XXXX was company holding of We estimate $XXX offset March earnings December Net earnings to first our that XX. more adjusted as companies, statutory down U.S. total approximately U.S. than dividends were X% quarter our For $X billion. by XX, operating paid of capital $XX.X billion
Finally, MetLife is solid favorable data. XXX% the first the ratio volume had latest XXXX, public quarter and XX, margin December was growth. underwriting Japan which of a highlighted by Overall, strong as solvency in
cash free sustainable remain your will it strong to that, strategy with and and capital implement And confident turn actions I to addition, our will In are create we value to our cash the and shareholders. positions long-term taking operator that for we drive remain questions. back our flow the
