MET - Earnings call transcript Q3 2021

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Operator

Ladies and gentlemen, we'd like to thank you for standing by, and welcome to the MetLife Third 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.

As a reminder, this conference is being recorded.

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

John Hall

you, morning, to everyone. Thank MetLife's Earnings XXXX Quarter operator. Good Call. Welcome Third

supplements, in non-GAAP which our Investor Relations the Before I you refer on in review. we should and to of you measures our metlife.com, begin, quarterly release financial the information on earnings portion

wish GAAP will this question remarks, In yourself the our third and released slides the we senior On have all results. quarter John Also Chief Michel Chief An of Executive the to morning After available to prepared Q&A appendix night, address we speak if other along. of the one will should McCallion in top call are limit Financial a supplemental review. They are Khalaf, to set remarks Officer; to discussions participating website. fairness McCallion, members prepared those participants, Last these and President Michel. are you that session of other over and on and to which one reconciliations With follow-up. a that, please to follow also you his disclosures, slides supplemental extend John will management. which Officer. additional hour. in slides to features information

Michel Khalaf

Thank you, morning, John, good and everyone.

what MetLife I am more that As focused we ever has on years, matters on two convinced I been most. reflect the on these journey than past are

nothing a time less. company purpose-driven stakeholders when a at will are accept We

of we strong see to most even the have our turbulent culture environments, gives right have and We that confidence. shareholders through the us a execution strategy

quarter of up share billion, attributes in Adjusted earnings results. financial on year-over-year. XX% Adjusted these third up XX% XXXX. per were were the $X.XX, $X.X were with of Starting year-over-year. our display All earnings

earnings adjusted adjusted in XX%. total was both up Excluding were periods, EPS and up items notable XX%

investment have income and held from seen the Looking quarter quarterly first we quarter respects, of key exceptionally third the looks strong mortality. underlying excess at firm. In outstanding, the performance offsetting area disciplined very XXXX was a claims. variable much strong The where the main headwinds is of with PFOs whole, COVID elevated more were enterprise like VII as than expense

U.S. at major range. business, side, investment On due QX the in billion private the above was in was contribution portfolio quarterly well which to higher quarterly guidance VII, of of our distribution mortality $X.X implied top our shift highest COVID severity the deaths. On the Life QX, age Group in our elevated returned contributor frequency on ratio equity younger underwriting claim a in the XXX.X% XXXX and its in to and end

where is is we in in yet, date, is pandemic than with life losses Pandemic moments. we've profitable. COVID-related businesses most they of is incurred our destabilizing catastrophic losses. paid have out has underwriting than of COVID been receiving the human MetLife XXXX. perspective, insurance Our The beneficiary U.S. insurance did in financial help enhanced From Latin our noteworthy. And of paying XXX severe on is in has million is pay as of are portfolio but who equity. life more is business, $XXX our equity. make in capacity damage results difference our just actually of share how adjusted the QX. like financial Every decision a prudent to remain XXXX return outsized U.S. COVID prepare What America $X.X not families to adjusted lives represents From is in incurred per a our this most our investment other help pandemic strategic life a they the even financial eased. on perspective, are burden around though This year, were earnings of is more financial business generating higher precisely MetLife's present, the our exceptional claim Two underwriting claims promised. the last to positive toll world. Life the billion. a purpose hit group aspects portion after losses allocate a insurance are than companies claims Life to in claims to our year where earnings our social private while claims years, still businesses

the billion. stands offset, technology XX.X% direct well-seasoned approximately VC billion figure PE gains with we in The to and our outstanding and cash COVID marks. are year-to-date. mere The at distributions on XX% RPE on this not portfolio our $X.X return in flows capital have funds portfolio Year-to-date, PE was benefited $X.X quarter received Since the While funds. sector. from not XXXX, valuation is global of accounting significant an the from our a has exposure growth

proceeds we often and cash e-cash is the While reinvest steady generated funds the terminate, mature and significant. as

pet consists growth sales persistency, underlying sales end year in MetLife's sales us Year-to-date, plans legal near In and we our of track the X.X% XX% grew we even adjusted strong is for we expect third prior period, remain Benefits, insurance, growth over are The of year-over-year, double-digit the accident to a PFO in which PFOs top and trend and up the are of and record stronger. strong health, we year. on saw quarter. Group the performance In benefits, PFO for XX% on voluntary range. businesses, the Versant was excluding end U.S. Turning momentum. to jumbo sales guidance seeing Health solid and

U.S. a year-to-year to with the market as in on dental and we talent benefit million XX consumer this due jumbo cases, expressing Millennials insurance. life preferences we with believe interest conducted enrollment than now millennials, the such more as are are such cohort and group benefits the pet group While and members. job who fluctuate research strong the open in are insurance benefits involuntary can legal for robust strong and plans connection traditional competition In largest sales from among age U.S. tailwind. fall, season creating both

desire booked quiet help deals people a have totaling pension the RIS even quarter. entered business, cases top digital save in to in directly. us financial or help a called employees billion month app progress of wellness financial designed our is three to financial which four Another connect planning. tool the we with is after risk create of space late the and barriers The fourth tackle will. quarters, helps death, first transfer more already digital September with Upwise, first $X.X MetLife for emotional the address with Within a

anniversary with the group Next the XXXth first Rodge MetLife Tuesday printing contract marks the annuity of ever William wrote company.

of drivers. assets XX% XX% both RIS, million have benefit all annual periods, pension X or helping transfer and honor are We to to to were adjusted $X a from only pension they of pension up the year-over-year. want respondents, their in in pull. Of in survey the Elsewhere the more leader We results XX excluding some future, XXXX. divest intend XX% to of up liabilities have promises main be PRTs Last in point month, the in XX workers. companies derisk. risk from were the plan companies of that made two at our business retirement MetLife nearly There PFOs pleased released XXX the defined

we market a reinsurance, longevity was last year. entered in first UK the The

in take benefits, was growth Latin attractive where delivered on business from sales second adjacency to we exceptional plays post-retirement up year-over-year retiree a of This to currency In MetLife's employers. group basis. The blocks competitive XX% is America, the on insurance we constant life our an that advantages. quarter,

in higher PFOs. markets the sales in began. saw XXXX were sales QX before the we growth in double-digit they were COVID across and QX XXXX fact, In In than pandemic both most region,

and the cash MetLife holding $X.X billion third cash companies. capital, to ended Moving with at its quarter of

worth quarter, During the $XXX repurchased another and of million paid dividends repurchased stock in outstanding far shares XXX common so QX. million with billion common we in $X

$X.X on authorization repurchase $X have share billion announced We August. remaining the in we billion

track strive return. business in approximately and capital billion on capital $X.X growth investment mix than XXXX, more to and a continue billion balanced between and to M&A. in of organic billion we return In returned are shareholders example, invested to and for to $X.X shareholders for XXXX, we $X We

Our Next we and it pressure our new that are Horizon capital the organic years. test our have value our the our allocation Directors PNB businesses, portfolio describe interest wrote Consistent has we risk-adjusted session clear highest MetLife We've new were to with By strategy. venture, Horizon be an over one of to to at aspect year was now we rates In September, done This shifting in relative Does to embracing addition all-time the from our test we each the This five attractive we of efficient XX,XXX than integral remains Value is highest XX%. the the increasing growth VNB business of access our outgrowth sales secular period rate period, CEO. across of India to It million deployment John process. India hurdle fully business XXX PNB in with locations. an tenure internal will greater of shortest As efficiency the capital of and was growth, detail, time, customers where joint mix an mindset, we past our more part in optimizing of our lows, market natural exposure it held every in rate? strategy, as consistent. five is initiative. year, most MetLife strategy. deployed. of amount and to for in stake a our more the to of when payback identified capital Next capital increased the consistently product this markets XXXX, a Accelerating improved in-depth XX% of of our my Board the had return

commitments alignment to As on sure our representatives challenged positioned I goals. management the and to in on Board been, simplify experience and capital the and our Board to it's its us best customer remain to marketplace. and of improve are and is and themselves, company track efficiency we use, shareholders between shareholders on differentiate the shared as as believe deliver ever strong our the focus deploying make ourselves clear, truly our the

a quarterly performance. it Now of for to our review John I'll detailed over turn

John McCallion

of review of income our on provide and financial our by capital details dollar third of the value Michel, in or our primarily million than I'll strengthening $XXX good and our start the new of the positions. net which you, and billion lower on annual Thank actuarial Starting X, we XXXX were adjusted driven adjusted million losses comparison a $X.X Net quarter. earnings. derivative U.S. quarter income the earnings. Net was $XXX provide to of business in the XQ metrics performance, and global morning. Page assumption of supplemental cash updates slides, highlights with

adjusted earnings for highlights net of $XXX income provides item on In the accounted our the and the Page X breakdown variance including earnings. In a net business income reduced impact adjusted by million, actuarial actuarial total, million. with The addition, between table assumption review by review net the of million assumption $XX notable segment. $XXX to earnings and income assumption review of adjusted of the

kept near-term despite the and have COVID-XX. Asia. mean reversion We rate the long-term of at maintain interest X.XX% unchanged and assumptions in income MetLife Most our impacts impact our Holdings was from net U.S. mortality

assumption of our earnings, notable driven by strong variable in of constant billion, were $X.X For on better assume excluding notable year-over-year was segment, X, our on MetLife up equity up $X.XX, items, and largest management. earnings the status. due Adjusted basis, withdrawal was XX% policyholder portfolio. comparison a long-term lowering both Holdings, periods. constant share, Japan, reflect for annuity reported and Page per rates by On notable excluding XX% rate driver capital you returns the up to the see on in to basis, currency Adjusted primarily a excluding items earnings aided adjusted was both private refinement year-over-year the currency assumption. XX% earned to based items, function can current earned impact lapse the the where Asia, we rate rate In behavior in primary a by

starting with down earnings underwriting Group were businesses, the year-over-year, discuss in Group driven more XX% adjusted which in I'll unfavorable to detail margins Life, the Moving Benefits U.S.. by shortly.

driver disability benefit across sequentially, margins Versant but to of were variable year-over-year was higher sales income, incidents. including quarter ratio and XX strong quarter contributed points than Year-to-date VII, and variable due XX% line points, performance. excluding XQ results. solid underwriting XX.X%, adjusted basis private RIS due were basis of health, XXX primary Favorable due the at X from were Versant adjusted XXXX higher year-over-year RIS, investment non-medical addition favorable also XX% driven largely to voluntary equity extremely lower down points volume basis and which year XXX and range low-end to interest increased the benefited returns. to growth The to year-over-year dental X% investment of year-over-year. Michelle the Spreads, of due have Benefits to basis spreads points, utilization securities the volume market. billion the expense jumbo its in across growth mortgage-backed XX%, in up completed portfolio. have higher target to active residential growth XX% year-over-year due low of investment the primarily the already in see up income. of to the XX.X% higher mortgage were and growth, the residential margins risk liability XX% quarter earnings, annual With transfers, and to including decline primarily Health growth. continue loans. solid case or to partial most reinsurance favorable regards was UK product to exposures offsets RIS Income prior Regarding Volume in and $X.X activity. Retirement Group and products, of were of strong by PFOs year-over-year, up volume longevity pension continues year-over-year Health. transactions Solutions, up we as noted, top an portfolios Adjusted addition our fourth in were paydowns

Asia. Moving primarily XX% higher a both reported income. up investment were constant to Adjusted and currency basis, to variable earnings due on

was up offset. driven contributed the also cost an by basis. strong currency were on under amortized growth Lower health general prior higher assets in utilization account performance, to period which on volume a a management and X% solid accident constant basis, partial Asia's the

down on the year-over-year a in were region. basis, sales Asia reflecting COVID-related constant currency lockdowns from XX% pressure

currency on target a XXXX. on basis The was Mexico. adjusted sales in constant constant achieve remain double-digit adjusted currency third were million. Latin primarily basis, XX% elevated and on quarter to Asia due to by were America claims, down XX% in COVID-XX-related year-to-date $XXX impact earnings America's a approximately unfavorable margins underwriting up XX% driven growth and down to mainly earnings Latin

fluid, significantly in prior in the declined as partial and investment America hospitalizations we October. While COVID-related have lower offsets. deaths versus margins seen year the Latin in well situation expense were taxes remains as Favorable quarter

America elevated remains region up a America's earnings and been on have up sales sales basis, throughout adjusted XX% COVID-XX-related persistency were PFOs adjusted by constant currency year-over-year Latin claims, were driven the XX% reported by earnings across While EMEA XX% and the growth pressured strong. Latin constant were driven on a the currency favorable solid currency basis, most across underwriting markets. primarily volume Gulf. and growth constant region both adjusted primarily margins, in by and on up a basis

constant on EMEA notable timing basis, Underwriting reflect businesses, fourth partially currency earnings, We in up quarter X% strong Holdings constant both a investments expect offset driven a sales were to in increase the in growth and were third of down EMEA basis earnings the higher divested adjusted on down severity by did the during technology adjusted to MetLife the Turkey currency than primarily items The due margins year-over-year. of across quarter region. decline X% expected excluding PFOs $XXX certain and Europe. periods, XXXX. million were life adjusted reflecting equity private was returns. claims by

benefit to annual within of XX%. ratio adjusted our interest Life the range of target XX% However, XX.X% was

year-over-year. Other was in In new addition, versus levels normal LTC XX.X% new on both within quarter. adjusted in & and effective the the claims returned more XX%. submissions in offset tax range rate our guidance by prior periods. to Lower adjusted of XX% net the $XXX very in was investment tax company's loss mostly higher million claims quarter XXXX to year The earnings income Corporate quarter low benefits were

adjusted in $XXX COVID-XX working the mortality Now points Approximately This provide claim having approximately Group the U.S. were ratio I'll including reported our chart Benefits quarter XX, and percentage first roughly were Life under annual by Page of XXXX, quarters XX% about population. Benefits frequency third impact double drivers and the in Benefits million. more which detail rate is three COVID the XQ a adjusted of earnings mortality Group impact X. in the on of the on XXXX, the were of The of XX higher on XXX.X% well claims this earnings. and severity. the the since in quarter reduced on and for began year target our first ratio is XX%. proportional mortality XX% results primary quarter highest Group of deaths which COVID XXXX on Life therefore, range to ratio Group percentage above of Group quarter pandemic the reflects age age any greater

In the COVID-related addition, Despite appear points the adjusted on of impact reported certificate. specifically for COVID, we and impact estimate million that from included and but roughly a Group claims profitable to remains on PFO identified roughly MetLife. Group not death the X percentage earnings mortality ratio incremental X XX%. business be COVID as that quarter $XXX the to growing adjusted Benefits of Benefits from growth year-to-date were

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

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

quarters of strongest balance which in billion. with our subsectors tax each returns account private VII funds, billion a by XX% segment's based of three segment performed the quarter. The all XXXX, highlights is roughly post Page $XX.X While the individual venture for portfolio. X quarter, roughly business the third We're well by of for quarterly XX% across first on quarterly in account including the our the attribution performer VII for of equity asset capital $X.X classes return. PE

Asia's account noted, VII previously Holdings, the of proportion referenced earlier. more venture I more each, to although the weighted MetLife funds and results total have smaller were The RIS we RIS, are MetLife is XX% mature heavily as As and private quarter it of Asia generally less quarter vary and or roughly capital VII a has in from quarter. one-third can Holdings, portfolio towards for and split equity

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

have best expense way year believe quarterly performance we in measure the to we to direct ratio highlighted our As is results. full previously, due fluctuations

direct ratio Our growth third solid line from Life Group RIS. participating single expense points premiums quarter cases approximately a ongoing discipline. This in benefited did XX to that basis and from top basis expense sale points XX and relate premium from include

direct In addition, costs seasonal Therefore, elevated expected do expect to enrollment certain expense more the and investments the from technology to the fourth ratio timing of impact to heavily quarter. be are weighted in XQ. be we

major including focus XXXX. to Next chart XX. have new Consistent update the to on continue a Now, the with for opportunities. to an strategy, let's turn relentless Horizon past for Page metrics value deploying value five reflects business and our we This segments years, for resources MetLife's highest capital

deployed a that invested IRR capital payback six MetLife of average unlevered in support of years. which business, was XX% XXXX to evidence approximately billion at with of commitment, new period As of an $X.X

and to business lowering the risk. while sales disciplined able value XXXX. period IRR, creating challenges Despite value, profitable while in to were lockdowns cash increase business cash, versus to pandemic, written related we reflects building generating the new mitigating with our XXXX New growth, payback XXXX approach and of our associated in our

September the position companies XX. cash I'll holding billion $XXX assets include XXth, well common and well cash target payment June as $X to at down as XXth, $X other at our and Page buffer from billion our roughly sequential billion subsidiary capital net Now, expenses were liquid $X.X decrease $X.X which The share flows. but is the our of stock as million, on Cash $X at of still discuss holding repurchases of of of above cash billion. effects dividends, the and cash in company holding companies dividend of billion,

debt long-term repayment $XXX quarter. third In of addition, we had million the in a

debt Our next XXXX. long-term not maturity until September is

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

partially the approximately increased variable of operating as $X while annuity For income companies, investment offset our Favorable compared our net by year-over-year, third primary approximately were net to earnings The first of roughly XXXX. losses. billion operating Statutory $XXX earnings earnings right XXXX, and investment operating statutory quarter billion, partially were XXXX. by XXth, the to approximately preliminary $XX.X adjusted months and as XXXX year-to-date by capital net Year-to-date losses earnings was and investment total drivers U.S. estimate income income up offset nine variable and billion. statutory million holding XXst, reserves. $X paid dividends $X lower primarily was higher company. to was We derivative derivative by gains XXXX December that increased higher which approximately XX% billion U.S. by, of net driven gains September operating were compared

public Finally, which quarter, the by data. capabilities. another our delivered MetLife strong very top the ratio businesses growth, latest ongoing benefits of the summary, and Japan returns, line of of private is exceptional equity market-leading discipline diverse XXX%, driven solvency and solid margin expense set In June as was XXth,

dampened benefits of has by America COVID-XX been Latin earnings While group mortality. power businesses, excess in our

momentum pleased these the behind with We are market-leading franchises.

and further In us our remains liquidity and portfolio investment addition, position for strong success. capital,

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

Operator

[Operator the Ryan of come KBW. line Instructions] ahead. will Krueger from question of Please go Our first

Ryan Krueger

yours claim health and quarter. guess, but and in like have provide sounds hoping on group is results disability well. companies disability a in I was smaller I some weaker the you, know I bit more particular, could bit for little had your detail up trends it non-medical you held a pretty

provide could any appreciate I you here. detail So

Ramy Tadros

It's morning Ramy Good Ryan. here.

XX% LTD in - it's you on both about disability of give relative color And PFOs STD So as overall I front, the group. you on to our based and our of book. some noted, the the portions can premium, it's the

what So an in that's is a much for norms. perspective. was than higher the we historical more this saw LTD a favorable with but here incidence quarter last last disability line It our was side, year from incidence year rate

we're And frequency seeing recoveries historically a then, continue perspective. from was it So the to it pretty where to back strong. be tick

The far, other thing the is seen impacts significant from would I not add impact LTD or there neither side have the so have non-COVID COVID kind we on of effect, on material from any the economy. business we seen any overall

been return it, So a to, book. much as call the far as it's a pre-pandemic pretty levels LTD

STD it's the side, For different. a bit

it think in of about LTD STD, half sitting are in of of ASO So And XX% about that that then in is a of those premium, of employees two-thirds only for STD. the only business. comprised third one-third the disability it sits that's

So claims we themselves. claims but the administering the disability are not hook the on actual for

actual elevated see we while COVID pretty to claims. health our continue the and The de the the is seen the on have given portion, and of ASO book STD So STD impact exposure. ratio minimis composition for non-medical

Ryan Krueger

you. Great. what's impact left RIS. some that? RMBS think it had of from about should from helpful. benefit And you've then That the ongoing of Thank paydowns How we Or in here? was

John McCallion

just a the John. Ryan. been morning, I have performance of Yes, It's in spreads, portfolio. private obviously, overall, Good equity beneficiary just excellent here RIS think,

saw in continue that we this So quarter.

quarter. line days what pretty XX a we points, in point basis at basis You're although VII, ago. second what with have much set remained X from we after referencing, back excluding But spreads XX resilient decline that

that seen as that. that you're said, on we levels of income activity at continued discount. accelerates that those book, and a mortgage But we peak So purchased referencing the paydown we or the from we've loans believe alleviated the residential securities

that to of - think so make a but I run-off to at would point its X and similar point. start seems And generally trajectory that And expect reasonable way kind this expected. We down. into basis of XQ was continue kind

Operator

question next Bass ahead. Autonomous come line go of Research. from Our of the Please Erik will

Erik Bass

in the some of entities. attractive there with it now York in-force that like buyer past potential you counterparties quarter And New block have, plenty seems liabilities seen over sellers So more types pretty are and interest we've there's getting transactions of have multiples. the

optimistic you're Holdings portions if unlock in getting curious I'm MetLife blocks? more your transaction could of that So value finding about potentially a

John McCallion

the John. are short is, Eric, is, say it's optimistic? I'd we getting answer If question yes. more Yes. the

what seeing well. are as you're We referencing

way to our third-party is I And have and talked about of our think it about before, remain, continues And a we've I thinking to is team and quite differs. portfolio. a It is say, think bit view creating the interest supplier I'd as are Not buyers. - the I've do robust. take different of and for everyone thinking have what tools value. the of buyer continuing same work - or they around base buyers analytics different

think to we so like think think And end. best optimize to we to there from puzzle that. a put how and a through well think have I how is through And our that there and would optimize about situation our to situation together as

capital to of the But any look about we're track talked appropriately. we've optimize that's think something with on cost. do still things to before, to - and and And accelerate reserves I As we not continuing we're at release going are at that.

Erik Bass

early payouts at And issues you was that's candidates. the out going business all. following the significant also are about hoping what the whether press you could that And been proposals second, different annuity presidential hoping perspective Great, thank for And see are that the you and talk to I for leading risk election? potential could in the change the give you covered of do that's material on for you. guess business. there then the from system some on your I implications in AFP and what's Chile specifically,

Michel Khalaf

Erik. Hi, Yes. It's here. Michel

been the some of and say, number it's Chile rates and widespread Eric that good quite to tends of as subject The now formal heat fact I The would that you as November One So with would the round are if add a have problem system different continuing second system, for let different mean, retirement. elections, quite with a candidates The the presidential in around debate to low. I now, views. one December, well low the debate you and to despite replacement that to years comments led public is I to industry sort and see well debate thing due for is and That's you'll would if then about labor is has in are and that perception, inconsistent want whole. me and contrary, then the late contributions, have system pension rates give functioned been contribution projected in Chile the elections. taking round think have general very to pension up returns at the say you is anything. in we'll the

others reform. Some are favor supportive radical are of the system, of in

to So that how out. we'd plays see have

thing going is other that taking of as happening constitution in place re-drafting there that's well. a year The that's out to the is that's Chile play next

see So of out comes we'll that. what

We much with are authorities. very local engaged the

is favor - as do Chile, well. protects participants destination. sure of we with the would perceptions any cautioning that markets, investment of makes damage capital we are not the We measures and a in that have we player are as Chilean against And retirement. point in we investor But hopefully, the relationships reform for addressed would collaboration industry, Chile of an well also ultimately also you sense system, view that leading as them, are the their great look, - today's as being making - in as - our we heard, in there, that We're know. are

be to we So continue engaged.

or the whether it advocate already. against. if like, another has of There is front another have know, there'll of something three don't you material these whereas which sort surpassed viability we don't one then you that withdrawals been know impact there. on there withdrawals. a Clearly, we pension been proposal of referenced, one. the is earnings, fourth that for of the annuities As that the a withdrawals you - damage We'll not. system, if withdrawal And round does, on there's see rounds gets if Again, be this

MetLife's have on continue close of our our months. view that to overall very is weeks is that Anything our keep business the earnings. have but we is Eric? the not of we and how I out think plays a this to view probably coming situation, to over the is we'll add, see eye see. high, All-in-all, and But to continue to that and wait engage, X% pension likelihood we'll

Eric Clurfain

No.

it. I think covered you

Michel Khalaf

I you the hope gives Erik. of to - So sort question, answer that that

Operator

from Our next of comes question Jimmy the Bhullar line of Please go JPMorgan. ahead.

Jimmy Bhullar

had question group on Just a business. the

talk seeing severity you're can book? in claims dental what you utilization, both in and about terms of your frequency If

Ramy Tadros

say Ramy here. would utilization. the to story very much It's Jimmy. a dental return is Sure, I pre-pandemic

levels. was exceptionally seasonally you dental look We've So the to if tends terms in XXXX low that come utilization. results, lower. QX quarter-over-quarter of back seen normal at to be

So QX dental up the slightly tends to business. of tick typically kind terms in of

of a I overall the kind health now to non-medical return going normal. a our much year, at range. very of our ratio midpoint the ratio, to our And ratio. that we're look that's close get And say to So would you full the if right is expectation very for

Jimmy Bhullar

you you where start quantifying the the about process the talk do you figuring of think can changes, of then when be and MetLife? out on accounting And impact the sort it sharing you'll on impact the are with community? internally then on will relatedly, investment what And Okay.

John McCallion

Jimmy, it's morning, John. Good

draw timeframe, I'd for transition of of new plan ongoing we're and would come and continues. the insights evaluating with that's think transition give implementation well everyone change. target We underway we And amounts I'd say, industry And take, XX/XX. product we're should through the cash Again, about working kind think still our pricing intact, flow, the ultimately guidance. implementation mid-XXXX continue to remind And impacts the I how going sharing are We're be kind of this. ourselves work, does say economics, to going you progress not which I that is disclosing be of to the kind collectively the well. for transition on how in And I'd on think or think to upon of our well results. and - explain and a process

say has us to time the nothing I'd point, caused feel So line. the change need at this to

Jimmy Bhullar

once view, do your lot had and of as cash focus rules but at have the also. implemented. cap ratios changing there on up on do how look would with they changes be And would you because will flows But obviously rating obviously, GAAP you think conversations the a agencies stat end they they well are

John McCallion

periodic had We've Yes. over discussions with time. them

everything agencies changing. is get and I not it, think the rating

say mean you ratios, when won't are ratios not change. all changing. ratios our I business So group

they So I methodical very think my it's And economics, think products not books. recognize in I think pricing changing. is be and fact is will it's products. all about certain unique it, that not all in I certain not the It's a businesses. - general, cash of and balanced will there assessment of circumstances way that - arise they flow But thinking that have

Operator

of ISI. Our next from of come the will line Please question Gallagher go Tom ahead. Evercore

Tom Gallagher

morning, Good John.

thinking question risk priority Erik's variable Would life your transact does types might New still insurance the in would and the are you you're it's just as question, with? situation? broader a fixed or bidding would be include follow-up that annuities a you is list related a annuities. auction York you domicile counterparties about pretty Just And say limit might you're that say on of robust potential Or looking things that transfer. - on a

John McCallion

Tom. morning, blocks that us. first open for all to say to would would I answer the create be, would be value business Good we're the of question

different when aspects a I to go creation comes into think of it So question. lot that value

having we as bid have think look given that say less them domiciled one days. these the are all markets your is spreads where on own the I'd focus another. at don't York or LTC just entity. one of are then say I to get I'd from other to And So or ones. scope But in only at the our New evolving kind probably out it's about benefits probably likely say think you situation there could

we wouldn't let's of say, in so pricing a of, at that's anything And think how it. outside kind think big exclude given people what this pretty frame I would I where point. divergence is, there's just LTC

the at say, York it that of partners would domicile our would New aspect counterparty, come probably way at same other the On we I come it as well.

it So would who changes or I don't do how we know transaction. if

the of York reinsurance entity. take a we probably New the of domiciled end the think from transaction because I be would situation our day, construct somewhat similar a at

matter. risk And so credit would

don't And excludes be can so anything But structure as would a think it that well. per strong se, that I with but consideration. help

Tom Gallagher

returned Was just to have severity. quick clearly, what now? more then the from there's you reason if to I'm health we've one level that severity? detail that's I normal care just is, said, which of Long-term other on levels Okay. both quarter. this one. Thanks. care, claims, ask has care And And claim and a facility shift how right heard you been from away for that lowered curious, from frequency has home trending

John McCallion

off mean it's you're I right. Tom, very shifted. because honestly, pre-pandemic. shifted - I mean, has question, to every but Good back we're on kind care, in-home pre-pandemic versus of it's relationship the metric being has It sure. to quite maybe close Yes, It's levels. of close. very much slightly external

Operator

Our from the of next Lee go question ahead. come Please of Humphrey will line Dowling Partners.

Humphrey Lee

think quarter and us items Good you to any some the help of quarter what would EMEA, for in talked the earnings Is be kind rate questions. for about to the run high trend to there with morning, there EMEA? fourth way of and about my favorable the expect expenses. along you Related down thank some are taking

John McCallion

Humphrey. morning, Good Yes.

in had we in yes, that have one QX, a to strong say, caused of a very items went very us direction So number a QX. I'd strong result

area of on we'd - million, put in as expect I it fourth million, prepared in or remarks, the about technology give in investments the quantification call think some that, could of, $XX And elevated it, my said we take. $XX you As then in quarter. the

anything should you point I give So of for I'll that, from give this frame outside kind of but data that sure you you some probably help your modeling.

Humphrey Lee

is to the expenses still for the of expenses company, think terms overall full in And appropriate way the about XXXX? year for XX.X% for the then the

John McCallion

Yes.

I transpired elevated and Full you the expenses have we not of honestly, we it's continue in the for of Quite an terms saw the X%. then XX year things say we most expect saw year much ago, I a been So mentioned on the our in below well that's fourth full running how would we've be to target would year, trend to obviously uptick. under that focus to different quarter. than that. year

if in quarter that, above not per fourth a se, be surprise, that we're by would but so XX.X% And focus. our a not that bit that's would the

about when for the that is using an year. what's XX.X% as XX.X% you the the important full example talk Just us to

we ratio, basis. under And full we year anticipate and a on to our so, that's to our of expense continue kind when mindset think about be that

Operator

go question Piper next ahead of will our the from And Please Barnidge John Sandler. come line of

John Barnidge

a An at nature need pandemic Life increase is to the on him deal expenses during administrative group to there impact the COVID increase business with all?

Ramy Tadros

here. Life is expense John, The small. ratio it's on Rami business the pretty

issue real front. the and the issue claims So you're operations is real is the challenge seeing just expenses, the not or real the

So it's this an at point. issue all not really expense

John Barnidge

it of overall, about a to XX% seasonal fair it be would well if would direct there expense come increase then, And in fair XX.X% ratio you. obviously the year, longer seems reevaluation for be possibly? below in to the say, Thank the term

Ramy Tadros

also of what's going pricing. just the our the change here. respect and issue to want question to changing Rami I with again further your intent John, maybe side on to it's is life clarify is with what

we continue this, rate underwriting the not persistency view as pandemics. we maintaining upcoming increases the able in the and book. about rate related It's season, of mortality. mortality, with while pretty line related look and last And adjustments talk did the line business, group at been with have in we we in quarter our strong adjustments achieve you and our the perspective to in renewal have perspective rate to life our view operations is make the So to of

undertaking. an be and ongoing that's we're process to going So that

kind group that's to piece. respect with of if what's you the So will, changing, life

John McCallion

do below our on Again, that Yes, Sure, and I possible. XX.X%. is then can question trying second under as possible are base, well. is John anything and we're or John. said are expense it is I to within the we target take And ultimately, at guess, had drive reinvestment. mix the capacity you our is This you expenses being what is continue but for to savings shift of XX.X% steadfast

up on to continue XX.X% in But we invest same allocation the the or our the at the a growth basis drive drive to for to we So invest every efficiencies persistent to that below being continue in at time, and to customer, maintain resources year. of to want processes, free want firm.

And same capacity use time, for an we economy, headwinds margin. a so, in see protection at the profit as that can we if

when kind this at it that's of take comes And of kind that point. would mindset. track our I'd nothing philosophy So off our say us to efficiency

Operator

turn the any no in like remarks. ahead, this time. over Please are closing back would conference now I queue for questions sir. to Michel There further go CEO, at our Khalaf to

Michel Khalaf

Great. Operator. you, Thank

the strength believe outsized underlying had claims, COVID business, we demonstrates of potential the quarter and our the enduring MetLife growth third of the and returns global performance franchise. PE While insurance

day. execute pandemic create the long-term great continues continue shareholders. to Have value our to shareholder Although I am to create a uncertainty, and confident ability in for

Operator

our earnings call Ladies wonderful and and you behalf does call conference for participation thank of a ON we service. today. day. thank it for gentlemen, Have today's for in today's using your to like conclude panel your you

now You may disconnect.

MetLife (MET) 4 Nov 212021 Q3 Earnings call transcript