MET - Earnings call transcript Q1 2022

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the MetLife First Quarter Earnings 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

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

John Hall

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

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

follow After GAAP information, also In reconciliations of should slides which a will the Q&A you Last McCallion, Khalaf, the fairness President Chief you An and one supplemental slides night, review. on follow-up. released speak On features members the disclosures, and John Also set are top Officer. light other than available no last the are appendix hour. McCallion over if addressed and to in yourself supplemental to participating Officer; of that, With to In website. morning, those later question remarks, busy They remarks to a the limit this Q&A call will please other one wish Financial discussion morning management. we Chief which our prepared have session. senior slides, Michel are Executive quarter. John to in his prepared these will all, of the to and along. we of Michel.

Michel Khalaf

tragic Trends balance in our rate the continued for despite quarter. movement expectations. businesses. uncertainty million, the adjusted the bonds helped dislocations. COVID-XX These quarter up quarter we adjusted interest income ringing purpose and a the in momentum customers most derivatives its business from below with true was first of sheet $XXX point a from million earnings for now variable our elevated quarter many with the Losses to results, fully than first $XXX building ago more on strong the led not ever. protect income The payments on claims, which strong our bonds of Net on in delivered everyone. XX the financial was billion offset was pandemic partly underlying U.S. confident rise per the that primary or income, John, in always and MetLife’s of is earnings to basis in strength grip. the the year mostly of global in account hedges. rapidly reported $X.XX in of with above adjustments Interest Thank has the rates to the morning, our you, points, driver during and resiliency XXXX share, of our value and to yield Starting demonstrate our rose quarter. results MetLife good The XXXX, difference between consensus derivative you and XX-year net future results impairment an treasury continued and quarter earnings. investment market by adjusted advancing and with triggering $X.X with geopolitical loosened Ukraine more Russian financial well the events Ukrainian

factor. quarter. higher performance $X.X variable X% which a PD in the investment to pre-tax quarterly producing billion was and approximately Let’s strong shift return, income, balances an the again the also continued our totaled equity engine Private with

second a the quarter quarter Our reported one results in lag impact weaker returns the market on quarter. may equity or are VII first equity private and

manage an we $X been long long account asset source PE of has equity Last billion roughly of strong generating value private class quarter, would that assets. general It an divest MetLife, important prudently. we we liabilities. dated returns our and indicated creation, is For supporting

managed be launched business venture. we close, funds generating establishing creatively to Management and fee MetLife and new by thoughtfully quarter first the while investment transaction after a addressed PE of allocation, Investment Just that the a fund

first were strong customer up within I earnings and combination year-over-year. higher with highlights, higher Adjusted some base, XX% We business Benefits million Turning current to growth will employment quarter segment reflecting our higher level salaries. start our saw $XXX Group a of of enrollment, U.S. results.

claims Group Although, XXX.X%. remained COVID-XX life sequentially life elevated, points fell mortality ratio basis to the XXX

this simply generated Group Our our is leadership, not biggest business began, scalar the flagship strength shareholders testament U.S. resilience to business. a since has to happen. every in for in the allow the and threat Benefits we franchise a this becoming will pandemic something profit of breadth, quarter With complacent

strong have grow like products are products quarter products per Life, RIS, Dental results Pat over the or earnings primarily comparison the Solutions last looking like The three In showing of [ph]. year adjusted which up years and contribution concrete and We due recurring a establish solid in current VII by past actions than and legal and tough the newer extraordinary voluntary Group PFOs, in fell from ago. grown like down more have and contribution billion Income $X the as taken claims. Retirement to a to were below XX%, Disability, vision

funding a on forward. key a strong, transfer rates this deal see momentum and $X.X the we business billion were rise, of first VII, the PRT the a Continuing metrics strong including the interest quarter, from and spreads. level pipeline quarter. fourth in we robust in pension Beyond volume With number growth booked risk going

basis X% on Sales Japan. from momentum were by than million In negative the earnings adjusted ago. foreign from a grew in by from At more up on period. by VII, account end offset X% prior exchange. a similarly business a in $XXX Asia, year AUM Latin a time, America, good driven year-over-year was constant fiscal impact For up solid. benefited General same partly was basis earnings adjusted the year constant currency strong currency from a Asia

an million authorization, total which and which billion of authorization, has jumping At capital share, end buyback in boost sheet the to rate annual roughly on $X more brings our per than XX% of the With on $X.X since across $X.X compound grown carried sales in pandemic our incremental basis repurchase claims capacity the renewed has billion currency persistency. the in posted dividend quarter, increase fueled in of we our success had and and to importance into sales XXXX. America. turn a Shifting of through Based returned Directors $XXX authorized left The current flight The cash at to April, billion buffer assets helped the target drive quarter. and As XXXX a ushered announced XXXX shareholders the X.X% a billion. common a Board first holding insurance of will to liquid strength first of quality, for our billion. to exceptional of Mexico, in COVID our of companies. repurchase in second free at the cash sale we the remain low on Despite Latin sales our quarter. balance $X contribute the Poland quarter quarter. cash seasonally in X.X% This has share subsidiary dividends, XX focus balances closed $X the a $X.X billion constant cash which proceeds generation, in on our with above moderated has cash, and our to comfortably dividends our our has we from common in which our business, flow has we

Harris serve were highly addition will industry. experience Directors perspectives across her and expertise of knowledge April. the Carla a and and services is pleased to well-recognized leader and financial of a diverse MetLife has MetLife governance, experienced the brings and the deep announce of to we end at Carla Turning She fresh well. Board

Our talent sets also us that peers. is competitive from a our advantage apart

MetLife company, world opportunities. talent can global grow it to around the our and match a As from greatest

Our Kishore over for distinguished the strength. want past XX to MetLife I service recent start leadership deep by this changes thanking his demonstrate Ponnavolu to years.

of will with and Asia, into of new Lyndon as to Auto Officer Kishore value to of results. time of John our of Enterprise for responsibilities highlight and will our Chief Strategy several to MetLife, his his position from executives and June, roles. our outstanding the to move President, development from delivered and and MetLife. who Dimitri will Strategy When finally to of this Head During commitment demonstrate Kishore and leadership step rotate Home, Treasurer Asia. and are Oliver ready away as moves deliver MetLife we These Strategy his Product leaders and shareholders. Treasurer end President, Head bench deep and move where Regional steps from served talent at Marketing will Strategy Head customers Japan Head MetLife up add Hall current Lorenzon from to Regional

of are and of inclusion. broad address and At the for leadership these VII and a purpose. the end MetLife We accountability progress. accountability and and partnerships broadening our investments, quarter, set aligned to diversity, needs by These commitment announced the efforts, equity commitments, underserved XXXX. of designed to establishing mix commitment are MetLife’s roadmaps other of for clear commitments setting and we with strengthening and firmly a encompass are and underrepresented solutions, In deepening

say March on words Before XXth. office would I I like started few about the MetLife which return in a U.S., close, to to

virtual model talent. Work best and new Future top of Our essential and in is element combines the environments and office an attracting retaining

tremendous the Our we has are well partnership U.S. across received Future and collaboration in been organization. seeing the Work model and

the and the outside well in-person my building. to conditions the floors it is adopting own also our energy allow. as are underway perspective, of U.S. feel host From in walk model to We meetings Work Future the great again,

two increasingly past weeks, levels have face I to offices visits enthusiasm have I welcome few the outstanding. the over been focused with more forward an John. to U.S. we team’s the and the but such consistent across execution the opportunity building world the Over months the been MetLife I energy face forward our with on of to momentum. and to also many several sit period, visited to our as With down and of challenges, The open look remain of all look past in and that, laser will things turn has ahead. I unprecedented you on years

John McCallion

our quarter. and good income and Michel, adjusted provide and XXXX highlights or derivative earnings. net page this morning. the on quarter. of we due update losses the Starting rates was supplemental a billion lower you, performance cash earnings to the will provide $X.X which as XQ long-term in million result our was income start adjusted $XXX financial the first net of interest an on three, positions. variance to comparison in majority of a Thank I in rise The slides, Net significant capital with of than

losses, as activity net losses the interest bonds, In addition, rising primarily we that portfolio on rate environment. due Russian our impairments trading in investment to well resulted given normal the as premium had in

and four, notable page items comparison you XX% $XXX basis. On combined earnings Russian can Russia were the any have XX% Ukraine and decline. on adjusted investment April, million. the constant earnings by a of down not impairments in quarter a roughly the in bonds billion, sale on either see our and year-over-year exposure segment, current of Following down majority first for of variable period. income did accounted which Adjusted $X.X currency year-over-year is the Lower

QX returns was share equity and per earnings on an were to $X.XX, private X% reported on down While strong, even currency of down a XXXX, basis adjusted they basis. a year-over-year again compared constant stronger X%

the XX% businesses, higher up were U.S., with discuss Group improvement I margins. to starting Moving the Group and shortly. to year-over-year in underwriting earnings adjusted Life volume more in an detail underwriting growth due will Benefits

year higher Regarding QX the range ratio to the incidences XX.X% at XX%. to of incidence than of disability of in in XX% the favorable prior the ratio XXXX quarter. was relative to midpoint said, target its health, That year levels annual in prior adjusted XX.X%, the due higher non-medical benefit quarter interest of

year-over-year. participating Turning the from X% to adjusted of growth up were Group growth fluctuate to related experience. higher contracts, This Benefits X with balance were topline, strong of points due claim premiums Group percentage which was growth of sales momentum included products, The to record to were can by PFO driven strong exceptionally most XXXX, voluntary. sales including down jumbo XX% in cases. solid which continued in compared QX X% across Benefits PFOs

was basis Solutions RIS remained down persistency spreads The investment in lower were less continue driven good XX% account strong longevity exposures primarily we sequentially very private While point favorable XXXX. returns continue to U.K. most separate but quarter market. balances. X points VII basis were due spreads offset income, Favorable Retirement XX case significantly QX Income reinsurance RIS active XQ points, points, the transfers offset. regards pension of by basis worth up With $X.X year-over-year. and growth higher of XQ were see and down another XXXX, driver in volume equity adjusted to versus one first to earnings transfers, billion XXX or quarter in strong business to were see and growth were activity a flat by rates. growth risk LIBOR products strong. was year-over-year, partial completed primary the risk we an excluding RIS a investment our jumbo basis essentially as X lower pension across transaction variable versus was liability XXXX,

Moving basis. to markets growth decline to earnings lower amortized X% and a on currency a adjusted and due management in constant cost first in an Japan X% were X% primarily Asia, constant quarter margins and solid This grew partially is basis, a currency the by under down on equity basis recurring interest Korea. volume offset as assets on

year remained million $XXX prior roughly claims driven while down $XX In significantly strong X% $XX after-tax. were the in prior versus addition, adjusted sales XXXX They quarter, were currency COVID-XX sales in basis million up million XQ by Japan. elevated on America the quarter. Latin were a in related year earnings versus constant year-over-year at

In was in a addition, was positive. versus prior markets a XQ while partial XXXX contributor, volume the lower positive growth equity The a modest quarter, X% negative which return Encaje were had year Chilean offset.

which demonstrate levels, While basis, sales LatAm’s bottomline a a by continues up XXXX and exclusion region. trending constant included quarter driven adjusted towards of up earnings. were and the currency XX% strength driven on across on been primarily XX% adjusted first as were adjusted growth currency XX% EMEA and the its PFOs divested a in to the down basis year-over-year basis, businesses, were earnings Poland has XX% Greece, on topline of solid by currency constant constant were pre-pandemic

were higher partially expenses margins addition, favorable volume In offset underwriting growth. by and

assets were other the loss investment in favorable of asset a XXXX effective within year was Holdings guidance for adjusted lower variable prior less driven was year prior segments, partial XX% to the PE corporate these quarter other from of XX%. and result of the loss $X.X were better While was decline million earnings quarter. XX.X% underwriting. versus To COVID of higher to QX XXXX. and of company’s region XX%. $XXX reported earnings than in Holdings lower $XXX rate they variable offset. align MetLife the tax adjusted million MetLife were in primarily adjusted QX, quarter. excess Higher in range liability our This income claims expenses two transfer was income down Corporate by an investment billion IRS management on and adjusted and and The the

Group range were above XXX.X ratio in which $XXX XX%. and first target reduced of the Group The mortality one reflects mortality well Now, to on quarter on is chart ratio hundred impact I XXXX, million. the mortality will which on Benefits Group This reported our annual approximately claims XX% points, earnings. COVID Benefits provide COVID-XX earnings results five. more Life the Group Group adjusted ratio of detail last including Benefits our the on for quarters, and by page was five XX% adjusted roughly Life

of XX% first there XX% higher fourth in under in shift While was the favorable quarter. the from the U.S. percentage declining a in XX, age approximately deaths sequentially, deaths to quarter COVID roughly were

As competing in a of a modest saw result we results this factors, mortality these improvement two quarter.

period-to-period. variable dispersion quarter. On returns we fluctuate around claims, returns quarters number our this $XX to page quarter equity addition first investment X This our points have for attributable the result to XXXX. This Unlike of of dollar included quarters, had which type, $X.X X from return high fund where chart private overall In in coupled from the billion non-COVID in past roughly experienced excess we large in billion, reflects of tightly point previous a of this seen can percentage mortality. six, by including which major five pre-tax percentage mostly the were was an PE strong a portfolio X% X% income the overall.

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

seven, provide were a a by in also funds estate $XXX quarter, which in return the strong VII prior reported of funds, a post-tax quarters, real to are On on VII QX had addition, million hedge one-month page including five for the contributor In we segment equity loss. while XX% lag a XXXX. with

note that our thumb coming and XXXX, or more in MetLife for Holdings of and XX% general primarily from that the XQ Asia MetLife in lower earlier. to due to PES other VII of total that discussed account corporate Holdings rule You RIS, hold will did This in I of at XX%. the was percentage not RIS transfer

equity In addition, to as asset strong well Asia’s higher performance, estate primarily as was higher balances. VII year-over-year due real PE fund

our chart direct in of including shows the this comparison ratio XXXX. five a prior eight, QX page expense quarters, of XX.X% to Turning over

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

share as and in at holding our flows. of dividends, payment the remains down billion cash billion in sequential to were approximately target solid $X March expense ratio included direct $X companies points expenses ratio cash of and quarter to now above below quarter, excess the as Group cases liquid mindset. participating from and buffer at ongoing nine. assets achieving was of million the execution dividend, our relate which first Benefits will expense $X.X common year at remain Cash approximately company in growth of on a I companies XXXX, discuss capital Our We stock our cash decline direct XXst, repurchases The benefited mortality. subsidiary efficiency committed and basis holding and well due XX.X% topline XXst, other in consistent to from expense the full reflect at This demonstrating from discipline. an cash holding on billion. premiums to XX $XXX $X.X net billion effects our but position focus first page December that

which our RBC our for lower the to tends business, capital, subsidiary in dividends dividends, well our sale and XXXX XXX%, closed in balances statutory are in combined in cash was as holding U.S. as second April, NAIC ratio regard XXX%. increase due be higher quarter of as to ratio quarter our higher expect expenses. noted. Therefore, company Poland which to subsidiary we target would of first from to above In Our HoldCo the Michel companies proceeds was

operating companies, preliminary reserves, earnings were approximately due $XXX $X.X approximately For approximately that net operating our expenses. was by less favorable results earnings year-to-date million. our total XXXX to U.S. higher was adjusted billion statutory to We underwriting statutory decreased March while XXXX. as million, of income U.S. year-over-year billion $XX.X Statutory primarily X% and XX, XXXX, estimate first-quarter VA $XXX compared December capital approximately rider down XX,

Finally, latest solvency XXst, data. the of was XXX% ratio the margin December public Japan as is which

the Japan decline of but a in expect result we U.S. above higher level. rates, remained ahead, Looking well capital as SMR XXXX, target its interest to

by conclude topline private me uncertain saying businesses of by strong outstanding growth, allow us delivered our returns, highlighted Let discipline ongoing that navigate environments. quarter, another to the successfully benefits and capabilities market-leading equity expense MetLife of set through solid and diverse

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

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

Operator

of Krueger Instructions] go Ryan Thank line you. we ahead. Please the to KBW. And with go [Operator

Ryan Krueger

quarters your Good of over also the discuss Thanks. the flatter higher retirement rate for outlook yield in few Hi. interest the environment next light but you Could the curve? morning. spread

Michel Khalaf

Good Ryan. Yes. morning,

VII in generally is -- in XX just driver it points was with as XXX, rising So, start the of just sensitivities result on was then And just start points spread QX, with being maybe basis we ex-VII let a few decline put LIBOR, the main obviously basis and me there and which our something that was pressure sequential spread. with would our the that highlighted the spread.

say, say, that recovery as we in in the already to things see have the we some to pressure downward have for that. bit, one if a quarter, that occur some that single-digit given would decline kind than investments seen QX, performed of two to actually in of shift there’s up so spread think to did a I’d expected. quarter. XQ, probably in was of we property of income see reasons offset mid to come I the But we fruition, that would upward the that quarter maybe in in but LIBOR trend start to a the better expect we little our start estate thought the the in have moving forward expected real in probably I’d we see seen that first back to helped would second curves and

in positive outlook are before. having they some probably kind they about we headwind, in these XXX-basis-point LIBOR, point So at the kind a Ad and rise flips talked day that’s little the after and XXX-basis-point so sensitivities at so level maybe today. a good at one get then the not to a that is, typically and we as a of as LIBOR terms so of be the around we day of are above were

increase we you rates, XX LIBOR in over to the not but us thing expect overall benefit -- at it out rising in as the second in in would time. then it kind to rise, actually continues just point income. quickly and second as the pressure comes of so, quarter, And emerge a to provide begin continue to the will it start to typically if comes the of kind that slower, XX-year but of So,

that hopefully helps. So

Ryan Krueger

dividend like interest insurance. all mark would a on that Thanks. kind basis stat Very of unusual is just have forward? life guess, there just on I helpful. for rates to sure impact make And rate things are any capacity want we know the impact going generally interest that derivative I then, rising follow-up from negative any I are good think

Michel Khalaf

expect don’t occur. not impacts -- any we We would unusual to Yeah.

just the way negative positive so little of directionally curve kind still broad our kind XXXX XXXX, the interest of the call start neutral-ish be nature may would perspective, little numbers the hold, I an earnings it’s now think but of shape that might a year, of even different, the sensitivities the I we of outlook from that is rate which means not first the part gave a directional say may exact, it -- in though as emerge of out and you out kind pan have panned momentum again, the then projected rates things stat then to as and see in any of not -- they we terms environment. of rising to. a rate result capital now, unusual in result And are would as expect a or as assuming a volatility I

Ryan Krueger

a Great. lot. Thanks

Operator

And go our next Bhullar is Jimmy question from ahead. JPMorgan. with Please

Jimmy Bhullar

morning. Good Hi.

First, question seeing had what the you terms activity closeout in a in I just pension of on market. are

guess, I mentioned a but think are seeing but of levels, see, benefiting, or the market rates you obviously impact and how are healthy, you little you to slowdown bit that transactions. just its equity any interest the plan put the a uncertainty causing do on pipeline is off weak I funding sponsors

Ramy Tadros

Good morning, It’s here. Ramy Jimmy.

this that, accretive and ROE and a to I the in aggregate, in we deployment is in-force hit targets question discipline, to line maybe say reiterate just, market philosophy to towards The terms maybe then I come your of -- PRT the here and I and helpful also capital and in just aspects it’s our pricing reiterate our continue would enterprise two pipeline. business our spreads. our in is with to annuity business I the one which like highlight philosophy, will is would exercise will So, where the of

jumbo heard players competitive of and capabilities. balance tend are one, and rating, are the in we large the have end the the our to deals sheet that, second you focused before on is us to terms fewer about of which market. and talk and strengths size investment there our play The There

we year. of of this XXXX. for five ended in one the still know, The were robust have we billion billion. $X.X and did in us terms front as a strong In of the rest $X.X of fourth we quarter very outlook, that We pipeline quarter XXXX, see towards very with we transaction the quarter look as of a you transaction total

don’t the will, of of if segments been dime, we of terms turn in jumbo terms in these that so a journey, In multiyear decision. kind play plans Many that you on on segment. they of derisking a making have

of high volatility. those asset jumbo be the funding well clearly, bodes that very as to therefore, of as well. overall levels kinds and having the tend today doesn’t sensitive But it stands have for lot a end, to that stands allocations market, equity overall So at pre-positioned, market as been it pipeline said that, a and

Jimmy Bhullar

Okay. Thanks. done on And distribution pretty Latin extent have anything then single what that versus you that your sales, the product of American on major receding market. every strong pandemic they function were a To across just is or side. the

Eric Clurfain

Yes. here. Jimmy. Hi, This is Eric

So, yeah, you distribution really product noticed demonstrates, the sales strength diversity our of -- the and our mix. the of momentum really and channels

digital insurance capabilities the of out to us emphasis allows the benefits now sell currency which strong to as seeing true on and during that our and the of diversification the the are over implementation year-over-year Michel We serve basis. of that with strategy we customers robust that pandemic with evidenced with swift of resulted before demand combined marketplace on that growth flight get with really XX% combined is better increased to awareness and mentioned constant also an by a with sales on the combined as this quality. a that the responding persistency, is And quality PFOs and

business SPA half first [ph] seen Now are Chile, -- that’s quarter. we the during the annuity market as coming of the expanding these from in sales have about

of it’s up is I our the showing strength LatAm recedes. combination the of franchise overall in say, would as pandemic So, factors and a

Jimmy Bhullar

you. Thank

Operator

Elyse our And Fargo. question Please go with next from Wells Greenspan is ahead.

Elyse Greenspan

potential rates I your Hi. transaction was just with within has up the holdings. blocks Thanks. in wondering Good morning. My impact an this on interest first have question, year. if seen move by of secure we that one fee

John McCallion

Hey, morning. Elyse. It’s John. Good

rising block think it rates materially. transfer, I as on. think I there is, we but that’s interest think, to gives, transfer that changes have think focused risk said so thing the are I that market don’t I block, are, I don’t the people and only before, think beneficial the

solid equity rates, we modest all markets, kinds market. support I transfer risk think talked of a have interest as improving I a is think they positive healthy about

So, the last think even have years, the again, we and I I driver think the rates. of is that’s but been years, over at transactions there only plenty few as don’t seen lower

again, but modest think, positive. So, I a it’s

Elyse Greenspan

pandemic. this this side within out I non-COVID bit was potentially guys year on and and to the guys you we And of little to get you if other even continue this more there Okay. hoping get the a Group, just then the move color through as expect mortality quarter. called

Michel Khalaf

much Elyse. of I we is what in normal see. Hi, kind would with line say quarterly this very we quarter fluctuations saw

to you you of some you our here, kind claims of look take mark. give Just say, the drivers $X let’s of terms in color one define, a here large at if million

got have say I have But you higher, quarters we below got came We number think digits when and that those of claims. our high-single expectation. when higher

the normal COVID is kind real this any at So We outside are of this writer of Group numbers, here. evidence as any long-term the of the Life quarterly of seeing in not adverse and largest industry, fluctuation. we trends Benefits look we clearly are of point,

Elyse Greenspan

Okay. the Thanks for color.

Operator

ahead. the line of Bass Next Autonomous. we with Erik go to Please go

Erik Bass

and are persistency of business, you. seeing in trends enrollment In Thank growth? from level the employment talk rates benefit Group and can rising the about you you Hi.

Michel Khalaf

a bit. Erik, the off question, just coming just were could you you repeat

Erik Bass

growth? you benefit from Sorry, I the you rising was trends persistency just wage and enrollment talk could Group employment and then the in that seeing if asking and level are business, of about

Michel Khalaf

Sure.

the That’s our persistency, book and on and been really market of a particular environment the strong to COVID, on uncertainty in of so taking have price we much before, are around been given have continue persistency very very, where -- has persistency life persistency we highlighted up seeing expectations. down terms kind that with see in book. our excellent. the even very on I increases we as And line In in

We billion year are the also double-digit our business. just that’s ended seeing see our to growth to well we a that, and good growth of in you PFOs to that. to continue continued drive momentum voluntary continue PFO $X give portfolio of on voluntary we flavor and And on in going above

In employment, terms that’s a of tailwind.

provide levels more although more and Wage over that just business. does see another the to therefore gradually Clearly starting We in play premiums. eligibles are employment tailwind, time. out inflation is higher that

those that to these does population uptick both et would general increases, our and business on tailwinds are seeing evidence as cetera, we depend of think having we I immediate of kind of to in So and the today. don’t of getting an expect the book see that’s wage that but it

Erik Bass

earnings Great. you exposures weaker capital Thank your place? And discuss then yen and have and hedges you. a you what in can to

Kishore Ponnavolu

This Kishore. Erik. is Hi,

earnings the Asia, of and have second any on the XX% two the moderate one if think it is depreciation therefore, impact FX aspects. yen earnings, you if that a MetLife On impact this in about earnings. sheet yen So our multi-currency you impact, can of And so, sales. One earnings the products. on you about think we holistically for because roughly adjusted think yen-denominated about in our I a say on are the has is translation and on impact, Asia can balance Japan,

than in more and that U.S. In of products more true the value the it’s near-term. volatility FX enhances volumes the periods is FX high the is consideration say, to them there if however, be far so wait dollars, yen, well. the It sales, to certainly now rates, to volatility attractive. tend making product. commit the FX U.S. time, customer important customers the rate itself to On as yen At converted the impacts the the increase same see before dollar very dollar U.S. volatility, rates our is the which in

higher balanced is currently, rates impact of interest we both and sides. there And dollar ways. the both So the the both a on weakening seeing U.S. yen are

leave think that’s you I that. I at look way about, it at will if the would it. So

Erik Bass

Great. Thank you

Operator

Tom question Gallagher from next Evercore. with ahead. our go Please is And

Tom Gallagher

morning. Good

of First Russia-Ukraine, a accounting can just specificity just you color but the for billion for of little you question million? behind I bit losses. is provide some that was $XXX give presume of the most $XXX the investment around can

Steve Goulart

out of Russia total less point and his Steve but is first losses Sure. realized out you to in the I two start I’d of were everyone Goulart. the reminding script, And quarter. are Hey, too mentioned account. our of the that led of than losses all roughly credit exposure the you one-tenth provisions. Russia too, in think, to as virtually there was Tom. that general by X% was that really again, and It’s One, is on And issues half right John that,

to sum but then in assets interest originate really the management, now, material again, was, about, some we are rates activity, in those what a normal John private So, time right asset in losses, trading number. the assets. on liability And the was just reflected takes piece mentioned you quarter. think not also heavily and second that it really And if private with happening our investing

assets we But replace losses quarter that it course, of private saw liquid end, are we we permanent yielding. So pick the higher on the the in private given with the are more structure are interest in those that. again back rate in putting up the we movements assets, because and in as assets

Tom Gallagher

Got Steve. it. That sense, makes

you be assume would to a have bit tail of that the and that, rates there of go that continued of I roll So Is up. trading a could some as aspect fair. to little into XQ

Steve Goulart

long are see similar I will and think we results, action similar as as probably rates yeah. moving,

Tom Gallagher

Okay. Got with were And pretty that a Kishore, just, good sales there in just state I orders and weak guess on quite are seemed then, competitors you. Japan. in of Japan for the emergency the Japan, your follow-up

sales were like it to or still drive Japan. all in there across looks to product is you allowed something -- across about how curious Just that products unique distribution growth, that able you grow launches sales your

Kishore Ponnavolu

and to I I Erik, associates complement our of pass your premise that love in certainly will Japan. the question, on

side well attribute our -- Japan. it. the would reasons I think question. strong three in sales Certainly, entered performance. launched and received That’s also way product XX% is quite a couple a which said, most in banker have that over I the why it’s you But very again have ground notably We then, launches, There on execution a that. quite has our certainly I are been very new balance forth and on diversified XX then certainly investing the the market year, past platform past channel last a got entered bit is is a thirdly, that relative and really Secondly, of CA, show the and we well. over so a product capabilities coming on up our had there little was softness we successful two that the years. markets. through a picked know, has so have the we most quarterly we in reception do strong marketplace. where on the but a we products of bit And back variable continuing mix, got on We recently, you months, is the that and and as been basis, banker that very strong increased love worded great to

as So well. getting that’s good traction also

So we that. about are very happy

regulatory then is with there with seasonality being in in the give one and performance related have bunch in in that, but a in carry which of little so-- a that’s wanted dealing then we are I for a of asked and which China we and QX. this so quarter surge markets, COVID in clearly, deal are our of on which QX, across through you year-end, ongoing. of Japan, we are good, Asia that, been is that a to fiscal since And we context Korea overall are big exchange a caution a bit were However, as challenges, with March question, QX and top doesn’t to cases And quarter, market-specific very also with all really you even continuing the dealing factor well, our factor tailwind terms that’s and

that, of Asia But in will year-on-year sales to a offset next to Given the volume all as pressure. in come on stronger the be expect ex-Japan QX basis, I quarter under that well.

I the which of well switch this. of all want bit frame, to pressure QX, in little done overall despite to that’s is in So then QX and

been very strong. has execution Our

diversity through. coming markets Our are of

from so, guidance Asia a gave year-on-year in second I the much sales guidance growth whole. timing, of for in mid-to-high a And February. perspective, half terms the stronger to And we hitting a single performance as expect in

from hope I So perspective. a commentary that helpful was

Tom Gallagher

was. That you. Thank

Kishore Ponnavolu

Great.

Operator

And My did have -- further. oh, anything Gallagher, Mr. go you apologies. ahead.

Tom Gallagher

That’s Thank No. all. you.

Operator

good. Very

with go Jefferies. will to ahead. Suneet We Please move on Kamath

Suneet Kamath

go morning. I to Life Good a back Thanks. Group just second. wanted to for

decline XQ, pretty in get deaths COVID seeing of kind in may mortality but notices that COVID XQ, reflecting So substantially Group? in of there just in lag terms think here business you be -- about we that are death any earnings is when should as wondering we we in

Ramy Tadros

we terms and for quick the IBNR. death reserved hold Hey. of It’s recognizing the clearly pretty essentially Ramy here. Generally getting speaking, we the in and are those claims the recognizing account

a getting we well been half. average, on over have kind say, of the and would last year up I So pretty

of So population. estimates any I your based to continue the numbers headline entire the anchor mortality kind just would on of for

looked percentage at trended have I April, at would us that the So which perspective. is those those also same a you the April. favorably say, would in be I mentioned, at are deaths, first favorable look would as in statistic, John be from other which, And which level as the continued looking severity has to we under for quarter, the of and XX, saw at,

Suneet Kamath

Got for capital. Okay. it. on And then, I guess, John

operating that, than stat had lower statutory said think income. earnings was net I you

some think I And said, what of year. relative on end to want that then, right sure got to just I you color there? happened maybe make the I Pat So decline the and also,

little talk a bit what just happened you can So there? about

John McCallion

Good of Yeah. the the -- that. mean Good go and some our think difference morning, of what of I markets VA the That’s explains our kind Suneet. geography right. Sure. of some that some the kind of you realization some where think the between just morning. just versus of did about that I and hedges it’s equity probably of reserves

number of kind that’s one. So

year, a down generation. of take of that the think, a your additional a the I XX% on was and capital maybe over it in our of had kind or so any then Yeah, I’d our You volatility. second kind kind fourth in one point paid dividend volatility the normal is little give target which commented for quarter million. little put $XXX of just X%, and of stat normal in we quarter

So normal I I and consider -- that I’d anyway, of trend. in volatility wouldn’t of sort read to wouldn’t into a consider kind any be that

Suneet Kamath

you. Thank Okay.

Operator

Sachs. Please Goldman Scott with ahead. the go of we Alex to go And next line

Alex Scott

taking Thanks Hi. for the question.

just is had expenses. I one First on

they Day growth number a pretty come and guys and consistently good have so Investor below of sort the of think with achieving Horizon outlined strategy target forth, your organic across of are kind the I businesses. in you you at

was driven And so past I go sometimes here. one timers called If from in any I on commentary just that on could out think like that have it this -- like interested in be things where you the feels and expenses from operating benefiting maybe to get you leverage further back sort that and up you targeted level, could but down there. the are would of from more

John McCallion

Alex. morning, Yes. Good

headwinds a about things number on to you with have think bit are benefiting are all gross-up execution is efficiency mentioned. we points pleased inflation, cases basis to of you increase that, mentioned culture and that I revenue the increases embedded I our that XX.X. critical strategy COVID just in that’s mindset. creates and we opening a the P&L. wage in as without what it’s is It’s have the like careful, a here and today the dealing terms certainly And of ratio in with but be built of We not and point and testament team on a it around which remarks that, impact participating the the from was headline XX claims, itself, probably our the really elevated

firm to if obviously, dictate of we within -- but protect still technologies little gives the maybe And -- includes for that to ways in use our there invest below in are to are to different XX.X. that optionality growth we improve and circumstances margins. still our and us capacity also but continue that’s then, XX, leverage net-net, intention is to the So, a above --

So, our all managing target, it when to our say, all, are comes on I’d expenses. we initiative, executing in

Alex Scott

are update it that changing and if that the a my then more in is brief of asset just there follow-up provide what maybe just or makes thinking in current business and if Thanks. you the inorganic there? could just And opportunities out are management interested challenging presents anything environment you on opportunities, more if terms

Steve Goulart

Goulart. It’s Steve Hey, Alex.

positive. be very So the updated continues to

to Management. continue Investment We grow MetLife

it are plan we Day out have think going I active very it’s line to really people our and looking achieving on aggressive for right been what business objectives too. we you be cut grow. an and there in the a laid opportunities a activity, at now both and the with markets, in time, are looking where to we and well lot a at know strategically. acquisitions it market looking Investor are lot as of the of targets for At organic we growth that we right, same and is see in active XXXX for is are our continue but does ways there We what

disciplined very to fits and strategically. We and culturally sure we financially are want do make we that anything

to continue we be that So find and hopefully we something will will in meets be we those active criteria it. when successful acquiring

Alex Scott

Thank you.

Operator

go And we Benguigui have a Please question with Barclays. ahead. from Tracy

Tracy Benguigui

and were X% thinking play X.XX% position? your assumption treasury year where realized in reserving respect reversion mean at read inflation later how be should maybe today it you it you the come Good morning. into to and does about your XX-year still but we your how assumption, reserve review heading with the I and

Michel Khalaf

Obviously, that assumption bit. quite have we Good Tracy. Hey. Good changed morning, have things question. a and long-term

at quarter, this any third the about to end predictions start I kind point. Obviously, as quarter, the we think think will really get third the of into of into it’s make the it. we early us of quarter that for more second to

can things that I think change as we have realized all quickly.

than hit kind I are the we said we projected higher some assumption so think years. and I you XX that our But current are we it’s a that, is -- long-term are long-term So the -- assumption. highlighted of in rates having circumstances -- to think, and in it that

there -- again that a kind closer. will just way but kind out or have So other, change to so necessarily would change anticipate you one we I wouldn’t the the trend get but all see to ago we evaluate you kind recent, few made of a data years any is make we of abrupt need that’s and before when that of change,

your us rates. biggest does it really, That’s to the to area probably, of how probably, a what terms for really it’s related say, not comes more inflation, question, the -- it’s In I’d impact when that, does it’s first of probably that reserving. part

of you there the it’s is impact, generally, how offset have any inflation point. I outside factors, it’s answer -- probably think that, that’s generally other I’d inflation if so net-net, by

Tracy Benguigui

this Company in at I you in again sources. to in Insurance U.S. looking noticed are Metropolitan and capacity, Great. fully I But fully XXXX, U.S. the but dividend Thank didn’t realize utilize it have prior statutory expecting just billion XXXX utilize you capacity year? Life ordinary your various you years, that you. have $X.X Co. appear in you

John McCallion

Yeah.

you holding think, of a of out, I have sources cash the point lot as company. we to

of cash we I what that committed in of have the don’t having generation we think legal a diverse of to, dividend commit entity. any one set And think kind I a to benefit can be that, us XX% is it holding two-year to sent the the average of benefit being on to able commit the company XX% ratio gives to flow period. free to cash over

diverse grow, And at capital And We and at the so look manage are looking very set extra benefit not things any a the is how it’s helpful. it’s entity. something sources aspects like cash operating we think is, where need of I that. we at target entities, capital, are we of one I to trying to like said, where our all we

collective manage your then I say, just the like externally, any So manage wallet, kind we of, our at don’t entity we legal we set a wallets same way. target should you and own

Tracy Benguigui

you. Thank

Operator

back more Michel this turn time. at I the no have Khalaf. we to And questions will call

Michel Khalaf

us for busy again this Great. Well, thank morning. joining on you

performance execute laser-focused team ability significant our the Next create strong on year’s outstanding again continuing delivering of we and talk confident provide Thanks should This are evidence and in in XXXX strategy. to results soon. management the our stakeholders. making progress to value is all-weather of sustainable on for Our on we first building further in all long-term quarter urgency last with are Horizon

Operator

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

may now disconnect. You

MetLife (MET) 5 May 222022 Q1 Earnings call transcript