MET - Earnings call transcript Q1 2021

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the MetLife First Quarter 2021 Earnings Release Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. Instructions will be given at that time.

conference recorded. this reminder, a is being As

filings. Before cautionary yesterday's note started, over I to MetLife's earnings the Global will to Relations. the refer you SEC in about discussed of and John risk we that, call to I turn get release factors With Head forward-looking Investor Hall, statements in

John Hall

call. you MetLife’s first for you, Good Thank us Operator. morning, joining everyone. XXXX We earnings appreciate quarter

the Investor Relations we quarterly I the with non-GAAP senior released you be measures this earnings the we our to financial is who you should our our slides, on of morning, begin, a set review. of members President weather information of McCallion portion John other on release address is Officer Michel under are along available Last call the They Before refer on Executive discussion. today. which in the supplemental in metlife.com Khalaf, on and website. quarter. night, Chief participate management, in which will available the and supplements, to

other and will also sensitivities, all which to participants, will will we GAAP to After the We I follow-up. voice, top supplemental review. and our session that, hour. prepared appendix to With slides Michel. In fairness to please features question have that remarks. the rest you of one supplemental Q&A a one remarks, over slides extend should yourself outlook the to to his going let following the and limit to of him reconciliations Michel's are information, speak all An disclosures,

Michel Khalaf

morning, everyone. good John, you, and Thank

quarter strong As delivered financial we of reported the very MetLife first evening, results XXXX. last for

for on $X above certain we of expense and through year in sound mix, our the ago, adjusted up related earnings rules and net without We to exceptionally strategy driver income billion quarter investment $X.X balance partially equity believe earnings of billion VII, liabilities million, quarter XXXX down a market elevated XX% us and GAAP the reported by numbers, economics or hedged. COVID-XX the primary to to Our gains $X.XX losses from of protect primarily The share, derivative $XXX By rates. our the treatment ago. claims. due assets are strong sheet captured generate expectations. per diverse derivatives strong discipline from income hedges the offset of $X.XX for consensus was flow variable mark combined a that year Net first business investment to free in interest or from being similar accounting income, that was earnings. markets business losses adjusted cash are the our result and Such and require declines well

which venture largely our digital capital sub capital the capitalize attractive a to best that variable positioned private was portfolio, in returns lag. one Venture performance strong stage of funds, performer tech market the valuations U.S.-based the pandemic activity, three record primarily in the sectors: LBOs the for early Recall spurred had firms of The quarter In European the income, equity XXXX that Regarding fourth strong XXXX, first driven with and tech quarter equity gains returns investment capital. second trend. XX.X%. for volumes and drove reported was our prior LBOs are and private leveraged buyout private by of appetite by more valuation. than will key in half received the in from three venture companies rewarded domestic IPOs equity many markets driver the on increase year, sectors, firms quarter and to entrants delivered doubled across a the on the over due

Cambridge notably in was and private While benchmarks, portfolio Index. Associates Private the line Equity quarter was It equity robust. with return most our industry

are class format life continue We a in source alpha be to of the future. this confident asset will significant

with life Benefits in related I’ll are performance U.S., segments, our quarter XXXX. In our U.S. the business overall, in on of Group the elevated than COVID-XX claims. of higher results. deaths the down the fourth first XX% Adjusted to COVID-XX XXXX they Turning begin quarter XX% earnings year-over-year of were were

For to business the group XX% with year-over-year. MetLife, claims. strong, COVID-XX high top XXX.X%, with of was line life percentage sales our XX%, XX approximately our of attributable range was to points the performance Group of end ratio Benefits mortality well above The up target XX%

expect In doing XX% a Retirement also especially with up year-over-year, a are business Adjusted or deliver addition contributor. and being the adjusted Versant year. VII. large national PFO sales We with to well growth Solutions, of if were Income by the XX% earnings we driven record RIS, group hold, was at trends And accounts. Health solid higher

volume adjusted and underwriting still Beyond VII, earnings on were growth. favorable strong

lowered rates pattern and Looking Within levels a we currency cost pension sponsors transfer markets on have a Adjusted VII. basis RIS. transact an a interest with ahead, to plan continue funding pension to equity were constant insurer. plan see saw year-over-year we earnings to by similar XX% and robust earnings higher pipeline. driven for the improved Asia, Rising risk up

currency on higher were related higher expenses on up basis, well with is benefits my clear. as prior as think earnings a adjusted down basis were rates, region claims in However, with currency employee constant earnings by I in year-over-year approximately strong a claims quarter. Mexico. related totaled In VII, even were XX% constant coverage To America, volume in the Sales discussion, favorable were a compared X% of to in the adjusted XX% for pandemic. earnings year a the basis, U.K. in the million segment certain Latin resurgence were business momentum a mainly growth COVID allowing In strong XX% COVID $XXX Sales million, favorable adjusted to due and up $XX exchange quarter primarily constant even the markets. the on on driven on down currency finish constant basis, space. foreign underwriting. EMEA, currency theme

If and you VII in the solid. business underlying mortality performance past the the quarter, of higher was very look

power strong a different demonstrate earnings On scenarios. we execution consistent of across the fundamentals, continue range with to economic

capital Turning $X.X to the target billion with near of end billion billion, the management. our cash at to cash top $X quarter ended MetLife buffer. $X first the of holding and company

two-year the average remains business. flow ratio billion proceeds sale cash Our balances free XX%. U.S. the range our within of on guidance much to P&C cash following of our of $X.XX our Currently, XX% higher of are receipt

were capital During shareholders, we billion to stock common $X.X share $XXX in billion return million in the to quarter, approximately $X repurchases dividends. and pleased of

shares, $XXX dividend billion remaining $X.X in our have a from common million we week, So roughly quarter bought current up and per have QX, we of an far back $X.XX authorization. share, the XXXX Board Last stock quarter. of under X.X% approved repurchase first second common Directors additional of our

a growth Over dividend rate. compound the last annual our increased decade, at XX% common we have

strong driving free execution the consistent generate us shareholders, all value long-term invest to continues allows flow cash to and to goal growth with Our in that creation. of capital return our

group conditions look and ahead, we see business. for a to health is States, always for our of we a an good from period which the As path United employment growth, economic In future promising a perspective. look brighter both

is company trend can On behind on certain the world, to is the underwriting the not continues but uniform as areas pandemic but slow normalcy. our are the worst effects and a us the we something front, yet are the of struggling, The still steady to rollout vaccine we across believe return line progress advance. call clear,

prepared we executing While are strategy laser-focused remain we for the external world. on environment, improving to our welcome an ensure we post pandemic also

evolving their policy our to to In example, submissions For for of accelerate done we customers, digital meet XX% continue now digitally. needs. transformation Japan, are our our

for be QX, hybrid a For be model will will we flexible our workplace most a employees, more implementing approach. in which

people collaboration, from home believe working the have the to role performed innovation and office in development. a our While continue career pandemic, exceptionally during fostering we play critical will well,

are by urgency MetLife into will more this engagement. close to talent a and incorporating strengthen the gain morning, enhance our productivity I keep We to employee emphasize game. confident pool To we our to that are up model, filling broader we virtual raising want access equally work

As I to that, I'll and John. over to you. is And Thank new execution annual baseline. expectation. Continuous shareholders, our improvement letter said turn it consistent with new in my our is aspiration

John McCallion

I the our and Michel. capital adjusted earnings. due XQ adjusted significant the $XXX billion which comparison positions. than on Starting Net supplemental derivative X. primarily to a XXXX. provide long-term earnings losses performance was quarter. highlights or a well update to of markets the of XXXX as start you, quarter as stronger This lower income as in rates equity interest rise variance financial of slides, approximately million in XQ Page cash result provide $X.X first in in and was net Thank We will our with an income the net on

by as up X, XX% Our the portfolio comparison for investment exceptionally currency Adjusted notable There to basis. earnings a you can program either portfolio returns from adjusted items hedging Page strong continue XX% and and private benefited perform earnings were in were period. equity On segment. see and no share our constant per year-over-year on expected. our of

detail with primarily persistency track Group Group elevated top group $X.X addition due to line offsets. from roughly solid due points income, XXXX. were were Benefits percentage Adjusted down, a will claims and Versant up driven across on are down in by contracts, and RIS, non-medical or results growth strong. X were fundamentals, underwriting earnings Health XX% health experience. and XX% PFOs volume growth billion, to mortality variable I record Adjusted strong partial to due largely including were the to Overall, year-over-year jumbo we life year-over-year, products, most for earnings more sales Moving year the premiums Group unfavorable private year-over-year. deliver year-over-year, in returns. adjusted the We businesses, primary activity. to higher due COVID-XX discuss underwriting case believe life up was higher participating sales to higher were Benefits up Income related XX% XX% mixed. largely underlying U.S. related starting with can adjusted volume driver Retirement shortly. of equity and Benefits, Favorable Benefits which investment claims. but were Group were Solutions, to growth were fluctuate earnings The that

$X to $X.X Spreads, approximately billion due investment primarily strong The income to up basis, RIS a growth COVID-XX in rates. points, at were excluding on to regard XXXX XX nearly due to previously our XXXX. portfolio XX, LIBOR longevity income. XX% stands up positive Adjusted The year-over-year reflected spreads grew expect have liability mortality volume quarterly to separate financial and business RIS XXX of an basis record well as the year-end notional up as statements. higher results constant home our up due first were closed XX% April billion underwriting With variable XXXX. margins. sale and VII, a XXX Property basis & from billion elevated to XQ addition, see U.K. gain since to we as the as Casualty favorable product for And U.K. and we performance. investment to initial reinsurance, balance across announced, reinsurance, longevity account in completing XX% and volume business growth growth variable currency farmers continued insurance XQ $X exposures, well as at strong points in primarily March were due and including points X, volume transaction X auto primarily were after-tax decline as investment earnings Moving quarter year-over-year on the contributors. basis growth investment points of year-over-year, are to in Asia. basis divested higher In

under X% volume and assets were account growth driven higher on currency solid by which up on management amortized general basis. was basis, X% cost a an constant Asia's

with basis, most currency by up a underwriting, earnings Asia $XXX were down COVID-XX XX% adjusted primarily by by on sales XX% currency America America's related basis, a were after-tax. and in impacted markets. growth adjusted unfavorable driven constant Latin equity in markets. Latin Mexico, partially year-over-year offset XX% primarily million on earnings Elevated approximately across improvement the constant claims,

Chile. was growth on driven by expenses currency This life significantly more equity income, policy increase positive to in XX% on range returns. Long-term a compared million up annuities in primarily claims with in XXXX, elevated driven X% U.K. and and we other drivers. constant range consistent mortality. interest markets adjusted million. to X% related and as earnings and higher X% adjusted XXXX strong guidance our higher largely favorable to Latin effective long-term on decrease benefited earnings XXXX prior $XXX adjusted year, XX% care to was higher adjusted private XX.X% is primarily currency down basis, PFOs Holdings constant terminations end higher adjusted of XXXX COVID-XX of and due levels claim quarter with in $XXX target well to of were guidance COVID-XX due expect equity by to adjusted This which were basis, than a down adjusted COVID-XX year on adjusted XX%. ahead, quarter half, were and annual of year-over-year care return MetLife basis, PFOs loss as was due XXX%. of a single to America claim sales The investment million. tax the XX.X%, basis currency to immediate XX% were the earnings down constant our premium a throughout Corporate quarter. on EMEA but as the Also, The the due to as constant second rate variable well employee consistent the were is higher XX% ratio Looking XX% claims incidences. sales our range to company's currency our adjusted up in at outlook. lower EMEA from $XXX X% were underwriting to and the within prior benefit year loss result earnings lower favorable benefits. top was

since of in underwriting Now XXX,XXX pandemic Benefits and highest XX% There XQ the the quarter will X. detail fourth I on up the the more on related single first began approximately XXXX. quarter versus Group the Page deaths in provide quarter, nearly XXXX U.S. COVID-XX were performance

Benefits XX severity. addition ratio higher a million which $XXX $X quarter, of the earnings after-tax. claims, there roughly typical from COVID-XX group XX, In more Apart were related claims number than versus to points of the in claims. at life greater the mortality adjusted claim COVID-XX, ages nearly insurance life The in XXX.X% younger which doubled number This by percentage Group approximately below first quarter. life deaths to increased resulted was included reduced million of

quarter the health, For XXXX prior first group products. our across was favorable was end target the most the experience of range the XX%. of year non-medical of The below XX% ratio XX.X% interest annual with benefit XX.X% adjusted at ratio low in XQ to quarter, and

$X.X return our the XXXX. quarters, five pre-tax on investment Now portfolio, Page X. let's which very This chart result turn billion the the had the in income attributable in quarter. This of first was strong to over quarter VII variable last reflects a to quarter including in equity XX.X% approximately mostly the private

have As we equities on lag. generally are discussed, one a quarter previously private for accounted

classes of PE results shown well XX% quarter by $X.X private by segment. our equity quarter, quarterly quarter account were VII with roughly sub-sectors essentially private is all quarterly Page segment's attribution first the due our VII On XX% for strongest billion in portfolio. first the for benchmarks, individual venture line roughly of industry were post-tax funds, business of capital Our equity company a performed account on with across billion based of $XX.X balance each performer returns while in which broad The a tech valuations. return X, to increase is in

XQ MetLife As XXXX noted of total and heavily generally VII were it Holdings, roughly from RIS although Asia's and quarter-to-quarter. smaller Holdings earlier. for funds of can or results weighted referenced previously, venture I MetLife portfolio account the has approximately capital each RIS, are toward that one-third Asia in VII vary more split XX% proportion a more and the as

XX% X. This XXXX, expense quarters full over Page and including of ratio shows first XXXX. our the in five direct quarter year Turning chart prior to the

direct in our the performance full benefited to is expense to year way measure have investment as from and In ratio XQ expense growth delayed ratio line highlighted expense results. we in well previously, ongoing fluctuations best as quarter. quarterly our direct believe As top due we XXXX, favorable the spending discipline solid

XXXX to for ratio outlook. remainder the full consistent the our direct with expense expect of We year be

in at to our net effects of is and $X.X of well stock which as the sequential liquid dividend, in expenses billion. XX, holding X. primarily holding our at position share cash payment $X dividends, decrease due billion Now to XX, were and companies The cash repurchases $X billion discuss quarter from $X.X the billion the March down cash of within approximately on capital flows. at Page other target December our holding billion cash was I common Cash first of but at buffer subsidiary will well companies as approximately and the assets company $X

a be sale the farmers as cash the Looking of quarter business will ahead, and holdco we insurance. of auto significantly result to higher expect second in our home

would I on like our an capital you to Next, with update provide position.

companies, NAIC ratio target. above year-end For combined comfortably was our our XXX% RBC XXX% and U.S. our XXXX at

companies, earnings lower business, billion, U.S. our by income Statutory P&C and $XXX reserves, net approximately while in quarter higher income preliminary VA operating XXXX billion paid as increase rider were million. $XXX roughly excluding by & our by year-over-year P&C losses. $X.X company. compared For U.S. offset roughly December our year-over-year by business, derivative of dividends capital, XX. $X.X lower excluding partially approximately operating our holding earnings total Casualty Favorable higher increased first derivative operating was margins, and operating after-tax increase earnings, expenses. more an were driven Property offset We net to by statutory investment increased excluding down adjusted statutory statutory driven income, was in Statutory the X% an approximately interest that losses estimate after-tax operating than March to earnings by $XX.X million XX, billion net

of public discipline. fundamentals solid quarter, the and which exceptional as XX, XXX% MetLife delivered Japan from latest solvency which equity expense ongoing ratio benefited summary, In strong business Finally, private returns, data. was December the another margin is

the adjusted and in capabilities. our mortality in higher of Mexico Benefits diverse benefits of in businesses set market-leading Group Latin demonstrates performance America, U.S. the and While earnings financial dampened our

capital, portfolio addition, position us for and success. investment resilient liquidity our and In are strong,

are sustainable with more call value for continue operator We your to simpler, that confident will the for our and we focused the I company to the back our turn are a long-term be taking questions. that, will to create And customers actions shareholders.

Operator

Autonomous first from ahead. Bass of Your from Please go Instructions] Erik question [Operator the line comes Research.

Erik Bass

quarter can could group into the to trends this start, something to which detail the we this and it population like the younger, of life sounds should bit continued go Is in you more mean higher severity? implications impact claims have that's Just a skewing expect second quarter? on

Ramy Tadros

here. Erik, it's Ramy

As in remarks, results John's quarter we've effect. frequency group this primarily discussed the were a

employees, deaths. we So population was significant under effect, in do did the which a increase in the we accompanied by for a tend number of whereby of increase to claims, an a And severity And saw the have percentage face amount. total XX. claims effect, that working see higher secondary which is be those

we're I frequency, the the going the So you vaccine, to declining. the have related if primary say composition it right? still deaths be the the driver that in the with would quarter if population think the second very that think outlook and So of carefully. about you you in is about watching But been going know, forward, rollout as COVID

January say, been April If comparison a death you do number decline. between, to has significant any average

from an expect do the So to underwriting quarter. to ratio come still second through, elevated number therefore, QX a its highs. mortality while have see in the deaths substantial expect we coming down We of ratio

Erik Bass

your there, seems then maybe growth growth and sales trending are a hoping turn dynamics on more some the underlying could than provide we you if stronger to was peers. value like color Asia? can many it account both where bit And I

opportunities? you're Just best where wondering seeing the

Kishore Ponnavolu

is Kishore. this Erik,

sales in measures to varying certainly X% quarter So majority have especially strong Even of are sales degrees during given markets growth, that place. a in other we much we compared face-to-face. had a significant several is state here then of COVID there Clearly, a the our Asia This XX% the social headwind did of prior the in in And sequentially year. the good Japan, of distancing under emergency the Asia of performance, given prefectures vast COVID had environment. and terms resurgence and is pretty QX.

resiliency the However, focus partnerships environment. strength products, as earlier, of diversity I MetLife of what the bank mentioned execution our and our the sales powers tough our even in that's of businesses, strong this channels and

sales performance In remote and in co-browsing, processes, addition, the video as conferencing, making aided from we've been significant way our investments they've all certainly our closing well. digitizing

Japan in As are Michel mentioned are XX% our other of as digital. well. new remarks, sales in the And similar opening in his range a application markets submissions

our For new digitally. onboarding done submissions business example, and agent in almost China, all are

XX% market to while bank sales to, also products speaks presence Asia, strengthened year-over-year. Japan, the the it's, the that With outlook growth. of board. and of again, the very big to and our A&H guidance X% regards for sequentially regards growth track to the digital channel. comfortable of and the And strong full X% up, are quite I even bank into And strong with strength our rest our we annuity on life solutions markets year, that way. a account, these helping strength up across sales taking our in Specifically were resilient, relationships, execution meet we're double-digit the Again, products sell this us across think, channels shows. to after sequentially. recorded and FX-denominated face-to-face Clearly, seasonality Other and the we have up

Operator

from ahead. line next the Wells of Your go question Elyse Please Fargo. Greenspan comes from

Elyse Greenspan

is question first on capital. My

So bought in quarter. guys you that $X billion the

level guys can get that you terms you about to of in give to run should any in capital quarter. proceeds that we that you is there & should guys holdco the those above guys will good sense, normal have put the work? we as at And quarterly the want Casualty Property have given the second a certain closed looking of how rate, a transaction given buffer about to coming color you think that think you that from Just deal, amount the a

Michel Khalaf

it's hi, Yes, Elyse, good Michel. morning

in and high growth rate our absence a supporting hurdle capital or which cash at buffer, of that And capital billion philosophy approach, belongs excess companies to organic billion to beyond our So clearing level cash excess is $X the equivalents above accretive just still and risk-adjusted by which our is reiterating me we've M&A, $X start strategic let our discussed. define shareholders. liquidity holding we that as the our at

$X the We As $X.X billion quarter the billion companies. ended in holding quarter. back with in first at you know, we cash our bought

So did that's excess within our billion full on that And the $X we company buffer. our boost position. we $X close billion so the P&C of and substantially with to sale would knowledge shortly and capital our cash

$X.X have expeditiously, our We which and extinguish our XXXX. authorization, repurchase we've the will historically, deliberately major wake we billion in remaining on in And authorization managed of particularly divestments.

to us expect the here. do So same

Elyse Greenspan

maybe build my then follow-up And upon that. will

this as announced transaction, think, capital right well what M&A return sale, And that there. year. balance guys P&C as, at late is put you've it potentially last out You you'll I the looking

you multiples announced be of transaction, guys kind type deals? since months through it's a as would likely of So have you have the you what you guys or sense kind kind anything the transactions, route of five look as to go look And down may thought businesses or or you M&A of at more pursue M&A? so plan, less of to of

Michel Khalaf

change consistent I been approach just is of philosophy, here, has very with there. sort and maybe would which start and no Again, Yes. again, our -

we will that accretive strategy that for over opportunities our always are M&A shareholders. fit time So our for look

M&A pay earn cost more to synergies. will willing for a capital which based their share we're raising And of the to and repurchases. need value markets, evaluate through globally opportunities by attractive All than than more what business evaluating will and acquisition we need We generation. capital of on to determine constant opportunities be cost capital. a opportunities basis And cash we have

we sort do So of what our of last as give that, Versant growth the that shareholders sort acquisition to sense you of or approach a those a is try to achieve but balance years we've think a investing such year, through M&A. that done, cash some prior Circle in back, I - Health sort returning recent And I think attractive between of couple strategy of what I transactions to we that Logan healthy future first outlined. of and

here. change no So

Operator

Crédit Kligerman question go next of Your Andrew line comes Please Suisse. from the ahead. from

Andrew Kligerman

a Just prominent you each of capital. generated in area a that think private Just more? name of question very areas year story a are at Are which invest XX% equity Met in venture last out that that does venture $XX.X in a on Met bit prospects venture billion cited I years seemed first in and How little quarter. is XX% the portfolio, capital John and much the has the return like strengths? Could in VC particular the flesh interested MetLife? capital? there always

Steve Goulart

Andrew, it's Good Steve morning. Goulart.

in me the basically, we tried the some take overall estate portfolio, what recapping a credit Venture portion capital, we talk numbers. and portfolio. of sort because really that's strategy this. But the we've a real our years this we've a of It's look for a significant same of of private at portfolio. about of diversification, course, felt the at overall in and just look is bit strategy. of Let about build equity Again, portfolio have it way our our little a to always number investing been to be component very strong

Venture income almost a produced total But comments. Michel of as portfolio market, about and return. $X.X - with activity what too, IPO far its PE the of or billion Our his that capital way the things in the in XX.X% happening of was cited return. Again, led think as like was lot

way mean, in the diversity attractive and portfolio just our in that's portfolio, reflects I'd when flavor is domestically a at look invest we it. bit across little thing as I on sectors you things across continue a different diverse this to and LBO again, portfolio the to give important returns to entire the were look we all more invest, So the well. like and both our that the in And Europe.

XXX that over have We we've invested in. funds

We XXX managers. have almost

pandemic, about very the So, and happening fiscal broad, to valuations the be quarter. led sectors. performance into the have again, to across what monetary major continued I of to think all very really when that take fourth equity deep exposure despite And all consideration The equity. think stimulus environment, the private decline contributors it, and we continued strong again, of combination across equity was you in in sectors

And diversified so as really respect think this it portfolio. think equity I would we private that that of a in about

said, that quarter. of Now an our until the because past when all at something at we quarter think least we this was experience, anomaly do look historical that probably

it return Now, moderated particularly returns market XXX, have that quarters. been PE S&P the has always high been in our versus

when returns that So still this years respect. the single we saying couple kind double-digits what or low the plans was our as or we've future an far about think unusual - relationships, low been think go, in last of XX% of us And on diversified that as we is way reflects for just again, about be the to quarter-by-quarter, our we that's across vary to right returns. think it's it but portfolio going sectors. about how continued a basis think very this efforts these have still to Again, for a quarter long-term and all

Andrew Kligerman

what still though Asia large from trying striking see target question then in sales pressures to is I'll move market. which then very excellence and is real which companies, like just about of to Asian a double-digit. that. the mature Japan, business region, and its being a proportion and a on sales premium a in It's - year-over-year MET see kind seeing XX% I'm flattish Erik of was earlier more Sounds those but having growth, of other growth as a sales numbers it's of with And we've we been area reconcile asking - in

sales that you out flesh growth in of other what if specifically, bit parts So, and the more is banks driving kind other countries a the Asia. are Japan, in it are of particular little could growth driving that

John McCallion

Andrew. Sure,

and if - parse will the sales So, Asia for other total Japan we you into they out a minute. if pretend Asia,

While from build things. last a sequentially on previous we've QX the is and where right? even this making off then couple better right, you And is QX. progress Japan was year. from? than okay, QX, better sales was say, A if QX steady of year since last coming been QX than QX in calls And QX, of

is channels. And further broadly that's we essentially I annuities. couple then the product about call our a of held primarily in classify have good growth from - annuity this lines, on of previous bit are pressure annuities, the We flat. pretty from year-over-year us three the tough through would of this what broad space even or a dollar can news right? the and of as We but partnerships face-to-face we a much as and and banks. are talked denominated. we And strength And resilient table the to well. a much these A&H in in channels, advantages that currency all table the also the because bank FX in face-to-face advantages A&H, There's have the channels that, on on but breakdown our that bring perspective. foreign were And have the many I life calls, that We've environment, bring of for not came for lot sold the our then which to pretty little life, go needed got segment we

because strengths diversification So Japan. products lean contributed in that's of of of because resiliency sales and to on in that, our of our and the this of basically channels our diversification

with fantastic have to tell been Now regards to I done, on - that. with our the easy. ground by way, teams not has the I have think, you this job to But that. and regards a

sales Asia. I playing Japan, Asia, China, again, of an because remember, early sit last and growth. say, here this right, is COVID is started other is out, right? COVID. strong this in regards because outside again, can't year, definitive With that's ongoing concern factor a pressure to of But very Now the across

focused very the we've performance execution. strong the of We've that was and presence of more it segment. is lean a hope in our a think to India our major very I in At businesses market sales look the Again, I'd end, recovered terms still on so terms which in helps. to. factor I favorable stay And factor. boils Asia strong is strength year-over-year And down on nicely markets. the performance. how all in executed from these other also Korea we perspective. But on China, of quarter. comparisons a COVID continue what again, that's this in was

Operator

ahead. question Tom from Evercore. line comes go Please the Gallagher from Your of next

Tom Gallagher

excluding RIS VII. question spreads Just a on declining

level would the point trend to expect XXX is, high good me. Or basis large a into John color any level spread McCallion, drop now know rate? over quarter XXs bit I surprising a to sequential you Question think guess, down? And that is back to run seemed I up why or not probably as drop? to the such mentioned you the big that I was last a But sustainable.

John McCallion

voice. Tom, sorry for the morning, Good

COVID little overcoming recovery Just here.

in to let right? reason because you probably right, going quarter we talked in gave large like But all look, Look, And those things me and that. pretty to prepayments things the one-time guidance, far some to other too not items go weren't that. back was last we recur. that and about take we third year it's the going So from knew try fourth whole

one And item. - so that's those probably

up Second into another re-class And estate that cost did four new shift. VII. we that is points probably real and reference of funds

migrate yet right I as think back much a about to think And February. VII, we guidance I in outlook, the the line, XXs the probably I And gave how putting we're to is go this mean we backwards really aside of maybe would in slightly mean, wouldn't I honestly, But So kind we quarter. range. look is I so think above. even the I intact. little above relative

Tom Gallagher

Hope soon. Appreciate it, recover John. you

The prepayment include is does just the longer Sorry in Goulart. guess to draw income that number? you too. for my included no into reminder, still Steve the - follow-up income? prepayment does - call, I VII, maybe But a Or only that

Steve Goulart

income. Prepayment the by dwarfed number. still income prepayments. on in fairly alternative They're our just modest that It's is

John McCallion

Yes.

going. where clarify me Let you're

activities spread - prepayment and jump the running said the RMBS our that was having they quarter. impacting that prepayment a third that off. I'm non-VII not were and securities there in spread. refinancing, when non-VII in was just So, saw And talking What how were we income and the in impacting was a about that happened fourth jump I real

that helps. hopefully, So,

Tom Gallagher

quantify, how to much Steve, you And does. prepayment clarify, is just could income? That of VII, the $X.X billion of

John Hall

that if Yes. reasonably slides, took supplemental typically broken real Hall. close. you table probably and We in you out out this ruler of the number, get haven't John could Tom, you measurement got that your careful a is but

Operator

comes ahead. go Citi. question the of line Please next Suneet from from Your Kamath

Suneet Kamath

expense Thanks. came guide, ratio I in wanted in I so it, first to start just much the quarter. obviously understand better the direct with

you'll so of is expectation terms few of around comments In your is Or up about you a get be full end it the your XX.X%? that next there. to quarters, get of land be BRIC, you'll quarters that next above around lower quite XX.X% full year could the over somewhere the expectation sort just year the with XX.X%, the I the number? couple didn't guide

Michel Khalaf

a what Yes. I'm remind Suneet, not said I'm expense on provided we of by - will just of year's sale me that that the which lower expect Michel. is be guide, to outlook, below has the we and let the expense not sure sure hi but because we pressured back of XXXX. would P&C, or get to ratio which a direct at ratio XX.X% this

had points. that PFO of we obviously. example, some did this. I timing for factors A John's by XX% participating life also say, at benefited Versant to businesses. One PFO impact of Then QX. - growth. think expense also our related the about is have across that Now, us on were in in XX obviously, important mentioned And we in And would few group we maybe contributed really an the comments, contracts, came growth, was good basis factor we there. some, discipline that there I expenses

make So investments our is us, to us the business. said, our quarter important allows guidance. in that that XX.X% is expense to second year with consistent ratio expectation full believe we the outlook will level right the that our I And as fourth be for because for continue to

of should how the in change terms at no balance the you So year. look of

Suneet Kamath

it. just Okay. sorry. ahead. Go then And Got -

John McCallion

to just point I'll guide. on add Suneet, the guide, that, the an we just annual give like,

slightly much thought. to year, adjust think we're if came But and for you quarter well. in but This this rest, better be about trending than the this expecting we quarter above

Suneet Kamath

was Benefits the much rates on of Versant that just the was then PFOs, I if we're some that I the just the then could on growth How And were parts you business, other And of wondering unpack business? think, of versus XX%. of sales products? XX%, a sense up of what's Group up Just coming of increases headcount a the growth the of behind where How just new growth, you or color is give so it in we from. clients, new can is that? much sort little terms seeing. get

Ramy Tadros

here. Ramy it's Suneet, Hi,

for I the mentioned, with the of as And shaping would in this off really So significant XXXX the I'll be us We're a the activity in John jumbo one year up sales; first Benefits. in uptick three is terms say of is quarter. to record a with national accounts. Group start performance sales. pleased our drivers

excel, well can jumbo but lumpy Now year-to-year. that's also This these we've sweet be quarter coming for from would just spot. sales this our this exceptionally low off a accounts, we XXXX, done is is in where and remind you, I there.

the Beyond and at board strength as say, sales in look regional would both I from small. that, products markets, you as we've a seen, across if increased just well and product perspective,

is, we've reenrollment the on to last continue would at sales our even. driver that pretty of about talked then, I strategy we prior execute successfully the on occasions. it's worksite And and So to point enrollment

the underlying points pretty business; to which think the seeing growth, XX%, So there. When strong to really participating this contracts. need we're line comes sales back PFO measure it you peel X is of actual to that that top captures these from growth we due best

So think underlying with in and growth line the our our as and there, is about XX in expectations that outlook. line with

to result addition pleased as And sales, So strong that would in be the we're with PFO drivers, well. persistency. very

is reenrollment driving our with We're then PFO all resonating is with number, and proposition line strategy, our the of what's strategy We they're renewals And very value customers, expectations. business that our with continue execution to site. of doing actions also our work more disciplined the also see very persistency with getting us. those customers. our And in back to coming in at voluntary high rate

And so, we see to continue double-digit in in PFO that those voluntary growth number.

Suneet Kamath

spike How Versant? was much that Are able XX% that Great. of out? you to

Ramy Tadros

$X.X about to that add did in we transaction, PFO billion that expected that the we from of break We the indicate year. At don't Versant we out.

use a you as So that can framework.

Operator

ahead. next of from UBS. comes Mike Your from question the line Ward go Please

Mike Ward

the derisking maybe and uptick you on Good but you're to of low, rates still is this bit a potential time holdings. comment come just on COVID that first. I comes, when guys. if in higher-level Interest there? just might subsiding. a want at all on work you, lines question morning. thinking an there could curious kind had on you If say pretty conversations Thank there's have year, which you they're Would up

John McCallion

to Good you. Yeah. Mike. hear Hi

emerging. a So, think Rates are I'd are slow. say our ready. things lot space. act has we're still But value the something sure are to philosophy going trending wide. just make and continue Spreads still low. be we're to - been of accretive. I if things ready are to it's there's in And positively But is It's activity just to

there's think So I call. last the material any from don't change

Mike Ward

record, track balanced. Thanks, a And you've John. just know that. And appreciate is I be going you capital solid the amount said proceeds, then this of got I and to on there. a thoughtful P&C solid but

buyback was run around as look So I what rate if was there's like move could there, out just nothing inorganic we Thanks. wondering any might more there give detail forward. you if the

Michel Khalaf

should Hi, approach think give good post we that mean, sort refer of would overall here. move I philosophy divestment. our back a record Mike. to sense you and of how of would just and I the sort track forward I you also And

Operator

comes line of Ryan KBW. Please go Your the from ahead. next Krueger from question

Ryan Krueger

provide underlying saw you the non-medical health both you some utilization disability the Ramy, can and experience? quarter, dental more details in on underwriting in and trends vision

Ramy Tadros

Sure.

continue point But out I'll as expected, utilization line is keep I'll in in normalized the some one back quarter, utilization disability, positive the trends we we on then with a levels in brief. two recoverability benefit years from We very see We the So see saw early did we're seeing the dental. incidence still rates quarter. this results. In progressed. in historical to, ago, the uptick but lower to And favorable there. as quarter slight from

Operator

seems back call I Khalaf would closing to remarks. no any now it have the for turn for any to we like And questions, Michel further time

Michel Khalaf

Great, thank you.

financial first our close me saying very with So let pleased by we're results. quarter that

results showed We business While the mortality, our they momentum were results puts and across takes our other with segment. variable and income and and both consider installment strength joining positive on to have underlying quarter's for look to we term value this a us morning our for consistent to Thank and commitment our continuing day. long forward great you generate stakeholders. all and execution investment

Operator

does Teleconference. and that using conclude Ladies Thank conference gentlemen and you today. participation for your AT&T for for your

may disconnect. You now

MetLife (MET) 6 May 212021 Q1 Earnings call transcript