MET - Earnings call transcript Q2 2024

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the MetLife Second Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.

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

John Hall

Good Second operator. We you appreciate Thank XXXX morning, Earnings MetLife's Quarter Call. joining you, all.

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

last On top An them our also your website. GAAP Financial and slides and members to will just follow Officer. reconciliations night, of Executive speak the John and of are supplemental the available and on disclosures, Q&A review. Officer; senior McCallion President in this Khalaf, the morning are to to his features Other released participate. We hour. remarks, for prepared John remarks. end prepared slides appendix call management available and will information are Michel Chief McCallion, other they Chief we'll the our before

and As X to a question follow-up. please limit reminder, X yourself

to Michel. Now

Michel Khalaf

our strong prior execution, adjusted adjusted in below result In XX% XX% to powerful $XXX quarter flow, second generate was and in in deploy the XX.X%, ability expectations And posted Strong equity the business partially of of use, in to the focus us narrower our recurring growth performance execution. above underwriting, earnings by some the improvement with XX% which I profitable net target was driven best year results morning, of efficiently key investment our our million, than estate line quarter, period. quarter proven an MetLife growth, navigating performance our dynamics. we our the consistent period. capital of Group recovery expectations to drive Thank quarter a $X.XX generate its of shifting just clearly performance aided the good with return million better. enables the unwavering about sustained offsets income we or the and the you, the earnings tides core allowing higher adjusted offset substantially After we volume year out a franchise favorable several total, by we cash shone or ratio John, strong was reflects believe good pass by the direct by our and target. first our example long-term even year-over-year losses range to $XXX results momentum VII, the quarter, and us to very funds, quarter, growth MetLife's in cases, in returns The of our second of the from strength the a our businesses expense everyone. to XX.X% generated shareholders. MetLife's in forecast, coupled second income our outstanding creating MetLife, of natural came private the quarter. diversification our in impacts for with through by capital businesses the metrics. performed fundamental discipline achieved strength, $X.X and and first apply generate of XX.X% the income, equity performance be the measured last the on the significantly and The many growth performance for investment greater value with in prior the billion well share, and quarter, up highest in second second to in for shared performance and reported with our per shareholders. In our quarter, and The saw normal that has higher annual Benefits ability on our seasonal flagship mentioned. through and including second line in posted night laid variable across positive our led quarter quarter. Variable real pleased to predictability economic to broad second while in We're

before, is noted ability than leverage our interconnected not to of X positive were line have top measure simplify direct ratio. a we but faster expenses, of years revenue our our this a ratio in and both focus, only costs, strategy also second supported the grow almost differentiate. at Next ago, and When the the we expense to lower As and it growth expenses, capacity rate Horizon foundational to contributors pillars control excellent our established was quarterly by quarter,

the focus our against our executing achieve we expense our and Similarly, return in equity. business success in pillar on new internal in rates our against pillar evident enterprise-wide teen in our manifests improving is success high simplified executing Our ratio. on of return strong

personalized our pool time. we intelligence, forward, that capacity From and up competitors, in invest benefit Our artificial to get to technology more There against drive focus only we their committed pillar our so, standpoint, MetLife customer we an mortality are this true a AI. further our will for responsibility. at to responsible vanguard be in $X Next purposeful an seasonally seamless shows in of drive we benefit in We our advantaged AI expense our [indiscernible] topic advantage of years, of all-time as million, data including move in on have reported over MetLife's well for our the which and playbook puts payments. talk. matching as business is achieved internal large Benefits as This on our with through quarter. pillars. When easier initiatives is third and experience empower AI representing them act are employees are and divide seeing mind, adjusted AI issuing XX.X% of many the our in to results, as initiatives a many invest part quarter. Shifting activated will essentially improve Group leading success mortality believe and of retirement of ratio the decision-making potential of at to use business earnings at that our equation. it just we've of MetLife's by the making free in customers we not execute or focus tools us sides Horizon, we'll force this registered that position, believe snapped as policy products, to to growth the for this to from and scale we this impactful and the the initiatives are understand both of we Be a having $XXX purchase quarterly to been Group favor. Yet our With in first relative assured, Group to technology multiplier done widen Life capacity our experiences, differentiated technology, future differentiator billion implementation work. the of dozens commands create help record, funded the impacted toolbox Life in quarter. and power and great has we receive second up see to simplify segment back our to AI

target of the the XX%. now end to For firmly the at lower period, Group benefit ratio of range XX% annual Life our is year-to-date

greater growth, twofold. regional On accounts are less seeking Our the of we we any On employees focus, with driving -- broader Benefits space Across greater and across with of -- products a of employee are avenues than employer than new via by national groups products national participation. increasing benefits. and both a X,XXX -- in employers space, sales utilization basis growth a elements growth penetration the voluntary margins. primary strategy Group a employees is boosting employers via more of X,XXX basis accounts to products attacking distribution and attractive regional, enrollment -- are accelerate employer-offered suite of refined white and absence and

evident transfer underscoring this to Retirement segment, Moving was Income well which wins. billion jumbo enjoyed totaling stable deals the our addition a pension billion, $X.X and in included of in breadth notable reinsurance, of longevity RIS. liability $X.X Solutions momentum value risk as $X.X segment. origination Business as These X billion U.K. several our

where are continue flow market sold the these wins, with strong structured million than the leader, more settlements in we quarter. second see we $XXX Beyond for to

solid In growth across range a metrics. Asia, enjoyed we of

by have currency of large grow, Japan, basis strength rising impacted of sales constant on While in Outside quarter. on currency up were a Asia the group sales a management in continue Australia. under X% assets to Japan in the fluctuations, in sale been XX%

on Adjusted due a sales adjusted on interest strong pointing XX% a fees rose Chile constant strong earnings Latin constant to in Adjusted were recurring and were XX% Brazil. basis, Mexico, Looking basis America. revenues Top growth and region. PFOs strong higher line again, across bottom the volume results and headwinds. to margins. XX% currency despite on up EMEA currency business up were and momentum sustained to other line some premiums, currency year-over-year

is our business EMEA example an flow, of in mindset at and on with results. it of efficiency protection products tangible structure producing refocused work. business cash strong simplified free positive, our the Our We

share. compelling to recurring capital million, Moving We proactively roughly X.X% capacity our allows dividends to both we opportunities, us in attractive in of stock flexibility capitalized, from front cash were provide paid management standpoint. M&A MetLife equity seize strong dividend and will and capital free stock commitments well to And second the generate meet cash. and common growth and to common $XXX our capital flow a absence is return per the to We our debt shareholders. quarter increase the our on opportunities. an active of reflecting to

our second brings on the have repurchased billion. back Board This $XXX July $XXX to around $X.X still also We about through bought We million another $X.X common the stock remaining authorization. about in quarter billion roughly in shares repurchase and million for July. our worth year total common of

or debt senior a billion and $XXX debt From of debt. paid we standpoint, approximately of million off issued $X.X redeemed

and the is assets now our billion issues. billion. $X.X we to second largely the end of have $X billion had debt maturing our finally, holding of above which buffer of our companies, $X cash at We prefunded at liquid And cash quarter, target XXXX

our to of communities has efforts more highlights our published website. the our the to billion in our history. and I people, MetLife delivering evident efforts of and Report. a of MetLife In Foundation pleased our Report in the within stakeholders Sustainability stakeholders. that to updates for each long-term be MetLife's can than value see in to nowhere circle am our pages of futures giving the on and our these many Perhaps these operates confident Among its $X sustainability more build commitments. you'll Sustainability our mention surpassed of customers, success virtuous our objective it, Turning with is successes, of on found shareholders, total recently Annual comprised our

more, to of the MetLife's company, XXX intent essential an another As log part and a XXX-year-old years heritage. sustainability is

strategy Horizon Next I the one our As to a close, of emerge predictable company. as more was of objectives stronger,

of distributable we targets on As out we on the X-year if we cycle, finish that and not exceed, approach each cash, laid the relative line to objectives strategic are accomplish to track leverage equity. operating and return key of

said raise the As constantly challenges we here and before, at MetLife. bar have passion these further, and not look to I with pursuing stand new We opportunities enthusiasm. ourselves do for still challenge

pressure Frontier. our New calling We build developing are and and core returns are the strategy, hard next testing boost accelerate foster at X-year while growth, of consistency. looking on This Next work to Horizon will pillars which we

Day XX journey in our I Investor to strategy will Board review plans forward this our begin for on stop you at December first year. look annual scheduled with the this with Subsequently, our of future sharing for September. The

more over Now it I'll performance to in cover detail. turn John our quarterly to

John McCallion

of versus capital of the morning. not the Michel, stronger provide lower performance increase. second period. recurring in expected. On Adjusted well investment 'XX earnings This performed our constant hedging and dollar were and income XQ strengthening normal income Overall, higher on either markets. the an yen, up partially gains by interest the and billion, higher quarter. were derivative as you, was the by comparison the X, continued highlights for mainly second activity XX% on basis. well to up per of comparison fixed of Starting a our to Net due I notable rates or Page earnings positioned. update Credit environment. on benefit, as see basis. adjusted items of market Thank quarter and the risk X, currency up derivative by will had year-over-year constant losses higher said, share as and net have due be trading position. the rates. primarily Favorable financial modest, were segment, liquidity interest on losses to we with portfolio a partially the maturity and rate our provide offset which remains interest and $X.X losses XX% volume We start good slides, result adjusted supplemental That offset do losses underwriting, securities were growth equity currency in a remeasurement a U.S. MRB the you variable earnings drove Page earnings program any higher can year-over-year to X% margins. investment and Adjusted XX% which investment $X.XX, net in

April Life data. May, The U.S. XX.X%, to businesses. Group driven number a deaths coverages. XX% up XX% the XX%, mortality ratio results due adjusted XX the XX were target and the of in all margins. our of to strong between below across record to ages Benefits to Group according earnings well mirrored of annual low experience CDC favorable The $XXX million, low notably by favorable Life year-over-year, and underwriting Moving of primarily was range Group

benefit health, tax. of annual after prior interest-adjusted to of from and toward end the million XX% reserve approximately XX.X%. of in disability of the Regarding range ratio below was adjustment target the a results quarter, $XX XX.X% non-medical benefited bottom year Favorable the XX% our quarter

target XXX XXXX to voluntary X% earnings up X%. XXX investment basis target across strong down driven and prior were suite RIS were contracts basis We to of our will sales participating mainly expiration adjusted of were adjusted of 'XX. XXX rate products, range partially income roughly XXX approximately most midpoint the down Benefits the the year-to-date at XQ were $XXX Taking Turning up anticipate of year-over-year. range the Lower interest interest remain Group quarter basis year-over-year points of third by margins in that Group into 'XX spreads dampened million, RIS points, quarter. versus X% between by variable basis caps points growth spreads our growth X% of to annual higher account, volume PFOs X% line, year. growth and including underlying the recurring products. which sequentially, Benefits investment XX%, due the X and second offset up points, PFOs our the growth. top by were in were strong

be X% in risk variable balanced reduced increase by rate income, expiration the primarily an foresee RIS excluding we pension Although transfers, the likely out were PFOs, of earnings investment interest it will up as year-over-year, caps. from longevity of continue to by driven sales $X.X as regards deals billion had in well approximately U.K. an strong institutional the market. PRT, annuities income quarter growth in reinsurance. With in active we second and to see adjusted

earnings currency Adjusted and and to favorable Asia. margins underwriting to Moving income. variable on constant million, $XXX up investment a X% due higher primarily X% were basis,

on Sales a management up currency were key X% X% account quarter. For on under assets year-over-year were up an Asia's constant metrics, general prior on growth cost year basis basis. currency a to compared a amortized basis constant strong

foreign yen the down large in were due sales volatility in Japan year-over-year of offset rest primarily XX% While region, on was impact more growth than case the the by constant sales a a products. XX% of currency Australia. of including strong currency to on group basis, This

driven Corporate up by adjusted basis up to adjusted offset a of QX EMEA a America on prior Other million loss This on the closed on on $XXX region. Turkey, on were by X.X% America's encaje currency the foregone our of our up U.K. range Private which to growth prior November. X.X% within solid growth currency the Holdings earnings primary was XX% QX was well volume and earnings the PFOs positive less transaction an recurring reinsurance XX% constant the across estate a currency were quarter, growth a XX% investment a favorable and basis, favorable XX% by This negative X% XX%. On 'XX. approximately 'XX interest Gulf million $XX in sales driver million perform earnings in line had were year. XX% equity across balance, of constant higher The asset or to and and X% driven loss adjusted the Chilean quarter. X% year returns return The the compared basis, basis, Latin and the the down top X% up quarter. due year-over-year. EMEA basis, expense guidance were on strong that chart for a primarily adjusted growth in and offset currency effective was income region in partially and the adjusted VII million, the adjusted in by equity million, in versus while margins. lower the prior makes this in on in tax $XXX X.X% including partially million, rate XX% margins versus positive constant pretax and currency funds a a PFOs had XX% by Latin earnings constant return earnings of year. $XXX in reflecting the basis, a majority adjusted up quarter constant was up negative company's Page QX quarters, adjusted of were the were the MetLife underwriting. was vast of of real to $XXX XXXX X $XXX X.X% variable and volume a portfolio, as our prior reported driven X, reflects XX% continues

X-quarter equity a both reminder, private and on reported funds As a are equity real lag. estate

of the expect VII X, ahead, half second Page the segment and improve 'XX. quarters to the provide VII we for last second X returns quarter year. On Looking to the continue of the course we over of by post-tax

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investment last the up for the left page Page The VII between from partially XXXX recurring interest income by 'XX. X. and the illustrates Adjusted of of our benefited on rate X of the 'XX rates, split Now including million and net turning Recurring of income investment years, net higher second quarters income interest of to chart QX offset roll-off in investment $XXX was has caps. year-over-year. the

seen driven addition, by equity we VII improvement have In higher private returns.

of attention second yields new your our money quarter roll-off Turning 'XX. side of yield to since This page. the the right versus shows

yield basis Over money higher new roll-off money the that yields consistent roll-off of interest rate. new prevailing remain given quarter second the quarters, yields, anticipate of roll-off X.XX%, money global X achieved XX yields with the the will our new have 'XX, than interest In a the rates. outpaced We last points yields rate environment. higher rate above

spread fluctuate depending of on the However, mix sales the can our across businesses.

moving Now of expenses direct expense of quarters to XX.X% our XX.X%. year at of shows chart 'XX, comparison ratio X. Page the This for full first both discussed on X a XXXX and

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

ratio expense and direct benefited QX ongoing top solid from Our growth expense line discipline.

million partially half a seasonal of holding year a Page business. debt ratio performance XX. expense billion but June. billion, ahead, to debt That full senior discuss April primarily or liquid our redemption, billion from of billion year, a target at cash expect direct decline at and below, for a mindset. I used at June company's Cash well would cash the holding $X said, achieve $X.X our nature positions XXXX which result on direct sequential The of maturity above our year-to-date XX.X% of and to our a to approximately a consistent consistent in the Looking sustained $XXX position companies expense XX, buffer in will in down capital demonstrating higher is with debt and by ratio be now our us our X. assets cash $X is we issuance offset $X.X of March the and execution the were billion efficiency $X.X in second

of this, and expenses $XXX subsidiary share stock cash effects second holding our the as roughly companies of common in quarter, and of Beyond of company the million flows. the dividend holding reflects as other well payment repurchases net cash dividends,

we July. totaling addition, shares million repurchased $XXX in have In approximately

due essentially by quarter was $X.X XXXX statutory down were approximately that second our June operating year-to-date companies, billion U.S. earnings flat and of operating capital our as income XX, estimate statutory year-over-year, $XX derivative $X.X approximately dividends losses, net billion, and X% XXXX, preliminary earnings. while U.S. from was to partially We XX, primarily paid March billion. For total offset approximately adjusted

next ratio will of XXX% few expect as be which statements be based will on we solvency margin to June that Japan filed be Finally, that statutory the approximately weeks. XX, in

highlight the commercial modest as disciplined expense as of perform up, CML with I loan-to-value would growth, Overall, the as wrap and attractive losses. portfolio the have as expectation in debt well XX we June to was slide and summary, the to like line I appendix. underlying of continues of Before mortgage updated an loan just In expected strength management. business service evident with underwriting coverage fundamentals strong ratios our top prudent that

solid Our shareholders. cash we record recurring of in the turn achieved and to flows customers to with and diversified your income. MetLife support back questions. responsible flow. for of we position a committed operator growth value sheet this call Benefits market-leading our build continue improvement I'll a earnings. achieve with continue And And segment to to spreads. are see to that, Group flow free set move a cash generating and balance long-term free deploying from and sustainable forward the variable strong businesses, to continues And strength Higher interest rates our for investment

Operator

question [Operator Tom Instructions] Gallagher We'll from to Evercore. at go first our

Thomas Gallagher

Group business. the Benefits on couple a ask to Wanted

you both pricing, can And how dental? comment on renewals? you How disability maybe also, is, think where the were unpack the nonmedical on -- health of products you underlying can results? was and First those just how -- about versus just

Ramy Tadros

here. Sure, It's Tom. Tadros Ramy

ratio just headline of a XX.X, remarks, that just from to reference the just nonrecurring ratio reserve normalize to perspective, want John's you adjustment. one-off overall think I So for

XX.X into you gets back that kind the range. of So

dental on on and question So disability. your

of quarter. of think we step and other to utilization number exactly where this And ensure key line of we heavier here terms we And every forward, quarter of which two, do year. And be going levers of margins. beginning seasonality as the business the periods. did -- a stay our lever the guarantee for here disciplined doing. our majority dental, these is And you benefits claims product, we a renewal of what QX from is And utilization is tends is network, in within and current in where dental and at about us at we the typically the reset deploy a manage and pricing target normal of in can know, terms the to remain highlight you're dental an from that here come how over quarter our in as in is about dental greater would back rates aggregate, the I margin. So -- within year. our our gives been second terms business that we see pricing. of that's the And rate the And what if book inflationary first sight just reprice and come seeing control down we've in XX% you

forward, in in book. across to pick of on seeing and seen taking been the And years trends block increases We've underlying that we've to kind So very still I been are up, with more response X.X the line stage, across behind the you last we've running product actions continue slight trend. At implemented of -- the inflationary in has going how action that And these usual would the call this expectations. and to just it, appropriate pricing as trend incidents, But an of, strong action see them manage pressure most some severity see is business think say kind we've actions necessary. that. margins take like overall entire in block because and of we we'll very dental. us. of We continue come recoveries. of but as On down much monitor as disability,

so core much and in continues And to very line. business the healthy be

persistency in pricing book. I hitting very say still here. our on we're the maintaining And we're And would strong across target just renewals, aggregate, renewal

in about both good persistency pretty renewal feel business, new both pricing, watch we to the clearly this coupled So the and about business. both need you with

Thomas Gallagher

the Great, Or about you How guys you terms in seeing in -- new And entrants of are not market? quick margin some heard just are competition Ramy. putting pricing? and of you pricing. We've level is my feeling sales pressure follow-up. that? on Are affecting about you the and

Ramy Tadros

would the not short that characterize competitive, the mean answer largely us. overall I is rational. market I as it's affecting

price. we always about I have us any evidence business this for And environment. The is to -- see here of would say aggressive of not on also a informed pricing, Tom. a positioned occasionally on seen here range metric ongoing point norm have but is surveillance. of before, of is, we've outlier ongoing I our every an in than perspective You inclusive key look that the competitive single change the basis. in more an compete market the rigorous as mean at We here, we talked a of by factors,

the matter, really basis important, compete This ability breadth matter, factors price we which how price. comes multiple extends the while is scale, capabilities So product ultimately to matters. is a scale experience of with And also business, invest, to beyond matters.

that narrower new size, new from competitors. meaningful book entrants small are on the small end you've terms or of their those of largely they impact in seen at some impact say, capabilities. overall any the of premium very our any haven't the pretty So And referenced market operate we with

Operator

move Kamath to at next Suneet We'll Jefferies.

Suneet Kamath

$XXX million. in that that business this should anything Benefits. about Or to earnings a release, maybe excluding substantially. of as way is over level I sustainable business? Maybe we be reserve quarter? the mean, you're pretty broke The a normally right on maybe has Group there $XXX thinking million Is follow for of power sort and about the of improved just think earnings power this that business this the up

Ramy Tadros

the the by Life is here. think quarter historical lower down low I has mainly step as I well. Group ratio. Ramy of a the item for in the and the here is And all-cause point population, us. CDC driven It's data, It's look to This second Again, U.S. in terms volume. back death X would come lower significantly volume, at if that the you the in

here that's basis, you So which But a with. with that go-forward levels. quarter, line back on would in say I if think was historical expectations the pleased about our one in think tailwind we the kind will of moderate we're mortality

seasonality You business. you see still the in this see that

a that if you look to XX.X. on we're basis, better a guidance that back basis, view run about bring year-to-date of our I'll at And so on a rate range. And you

in kind which X say, So us which you to this of for a terms tailwind the quarter, was item I the, would that's want of gave the look out think one here. bit that of a I material,

Suneet Kamath

That RIS, then it. guided I on terms X in last maybe And Got of I bps quarter, sequential think mean, you compression. I spreads, the of XX to sense. guess makes to

came think I that. you better much than in

what So of transition of we then attribute just to we should and how XQ? progress spread be kind the that to? XQ thinking about And curious you'd that then ultimately as

John McCallion

John. Yes. Thanks, Suneet. It's

you And exclude so in that basis guidance. it then the the in you as mentioned, was to if came So XXX. quarter, within points, we was XXX VII, at XXX XXX

quarter. right? We in And saw improvement VII so a couple continued of things, in the

of X we rate less, roll of of due decline mentioned, off it to recurring lower a advantage we due higher-than-expected XX. which the primarily anticipate you And of margins interest rates the interest quarter caps. be to we a in It quarter. result course took from during interest the did to expected as the it's first As came and to

than it thought. little so better And a was we

should as to continued I last guidance would QX we interest is that course the we gave rate remaining quarter to our caps the occur purchased And believe over of kind think said the the even X matures most of by during another caps we months. the of QX, spreads then ex-VII pre- COVID mature era next stabilize most on see XX Having of in-the-money that, primarily of the rate interest in during few in and course then. the

we're back XXXX. at of of go in, of was, out what I if trending show So I all said towards. which that's how XXXX think And that's where kind we this year. to the the thought, outlook kind all-in rest And play spread similar you would to an would we generally call,

Operator

to move we'll KBW. at Krueger Next, Ryan

Ryan Krueger

some tougher on there? declines guess -- comparison, had in the environment but I it sales could had Japan, you was sales. I you think ago perspective some you year on a give

more So the just little color areas a different get product on hoping to there.

Lyndon Oliver

Lyndon it's Ryan, here.

on in you across let seeing give me Japan. we're including sales color what So Asia, some

for sales operations quarter in grew divested X%, So Malaysia. our including the

growth also management. a We X% saw in assets under

weaker In impact as premium said, the an second Japan offset against a see when single of While lower sales FX single we're the Asia. were premium weakness. dollar did were impacted at the the we the U.S. rest did We products. yen the But across in market look sales Japan tough currency foreign up you quarter, yen comparative. overall products. for the by

market, shrunk, banca we overall so Look, space. our this has are a mix U.S. to [ and ] and market this in between share we maintain we look product have at dollars. And portfolio, if yen we the but continue rebalancing diversified between

with also we're higher products, So the rates if interest for macro Japan. seeing positive look you improved with that at outlook and has in the environment it yen

have later this new a other planned both some the in the they got year. well life couple as products, as we at performed We've product well both product next cancer pipeline, Now coming beginning earlier introduced in as of year. launches the have this the of year very And as well. variable

quarter, So group large also trend Korea, through solid similar were then And second case saw story. We look the we've the also in and we that's the sales we go risk contributing overall in in China, as we in countries. strong year-over-year growth the Asia, a expect in all which and to and the got of performance we India, line the growth in outlook, in these Japan, strong on in in with the quarter. half. half actual prior year, a from first second at benefited came If rest

So year-over-year. to helps. hope for flat that Asia given expect sales this, full I we year be

John McCallion

it's a Yes. group would And I large in just Australia. case --

you think but... I mentioned Japan,

Lyndon Oliver

Australia. Sorry, yes, in

Ryan Krueger

quick One follow-up.

-- I elevated Japan. surrender think been activity you I think some there's in

to And that that? Just has earnings in -- info extent impacted quarters? recent what more on any

Lyndon Oliver

Yes.

lock adjusted both the management by gains. had was prior look some at the surrender favorable and to income. stronger did as higher variable X% does as When we performance quarter, to quarter, weaker as increase on in as Asia look and the real we basis. had activities, earnings. you some well get some if was This estate And to reported benefit better the constant surrenders earnings investment we currency choose in as X% VII on in in in a estate We've the year. by of -- well the given did the in driven Now good of see the the relative saw we quarter, expense the that's also underwriting earnings. it see in at higher a an allocation a a real the expected funds in than quarter, contributed the We equity increase given so yen in customers

kind be If forward. at full outlook we a factor expect year continue to look year, line the earnings our for performance with impact of going the that guidance. VII strong, earnings will will in to you remain

Operator

Carmichael We'll at go Autonomous next Wes to Research.

Wesley Carmichael

second, XXX% could SMR around give regarding feeling Maybe about quarter, implementation update in just any focusing on ESR Japan changes with the the you if to this been point? Japan, for an at you're how maybe the but in transition in us a ratio material there's just

John McCallion

it's Wes, John.

when economic have the is saying as rise. quarter. a improved. the start impacts no estimate businesses you capital We'll few know, of rates in as out or that around to file And tends like ratio we XXX% right? mentioned, by concerns value our generation I'd overall for some asymmetrical dividends, the But So just to weeks. that

thing for us. So saw out heavier we cash this the other quarter quarter generally in it's is a

pay We We higher taxes. dividends. have

we an like as stat which think pricing economic as product we there. And that first that of X, like mentioned, more new little on of report that. effect XX, ESR you business. then that have the We'll development as framework, XXXX. used April into and for is So the about and there's economic a March time, one We've And things of typically bit this well as XXXX. comes timing managed

to of a place kind good that's So start from.

In certainly manage, addition, big I'd few even to I'd from issues. All work in, say are regulator. situation. implementation is of say, the say those make through going but that can the some items SMR continuing -- But well. We we're don't come any to if don't with just a see the There comfortable. hopeful to ESR. moving some the we're we're kind current improvements supportive -- we And to of to the fruition, I'd

Wesley Carmichael

commercial portfolio. just switching loan maybe And the mortgage to

I Any your bit, foreclosure loans has think any to where in balance there's the ratio that a on might sheet? But on properties if the at least in and an process office us loan-to-value watch give quarter-over-quarter. you list? are little them could update you expecting be deteriorated take

John McCallion

start let unpack, Great. there Okay. just Thanks, LTV. me in Wes. maybe with but A the lot to

it when like quarter we annual find in year, the our process, thought we'd had in So prior, it quarter. to broadly financial had -- of start second of the in And before to given XX% and We we kind know, the to that. typically year thought first through views. appraisal of do to you first another go you We hands some trough peak some areas. mentioned the it this distressed forecasted we more we wait quarter. it information throughout our for as because happens go kind get we the in hard We

So heavy XQ be a tends revaluation quarter. to

of we generally saw kind And expectations. what so happen line that's in with

up second overall but point were closer year, office. of ticked out year, the a office. kind say, then second to more in the write-offs year, below. of roughly couple ones probably think it's X of little in we modest half of point points had a XX. deterioration, we rest maybe A look playing of couple think We Look, quarter. maybe XXX, maybe and Last done this more the still We'll I overall. another as some, points expected. in in you're LTV this the for see And in maybe as Overall, I'd out heavier

modest. on So within million in modest of write-offs kind size the our very million kind think we're terms little area to $XXX a so the and far, and $XX We capital that had kind of us under for of and of position. year, year-to-date for for of we still well track closer

kind for So good that's actually -- fundamentals. work also which you news pressure, Despite despite economic still all do is some again, properties. sector some remains have of we think has and to is construction moderating there, but the estate healthy pipeline, environment benefiting real the office growth probably

out. sector this overnight. how so time. takes And generally It It this works is happen doesn't

of manage supply work typically factors the going positioned be And out. to to be kind to pressure the need well it and into and demand You able generally, of the distress. kind through themselves the

us, So change all, our performing for all and things I in as are to expected view. no think

Operator

Jimmy at Bhullar next move to We'll JPMorgan.

Jamminder Bhullar

but points. just of mostly up on questions a My follow couple are I answered, wanted to

products volatility are on First, much actively you back? or the yen an function a dynamics depressing sales maybe that uptick that sales pull that versus market of you Japan, in saw, decline comps causing by or to of competition other of in competitors just how is reductions the the and ForEx in price

Lyndon Oliver

Jimmy, it's here. Lyndon

we have look, yes, tough So comparative did year. last a

we when sales think over Japan last were look up in XX% I at year.

the there. has market, we So continue said, products. but but has to The market and declined, foreign that as is currency weaker our this also over this of are a driving position seeing impacted a market the maintain results overall year, lot bank yen, for we I

the think decline seeing sales. do the the driving is some I end So of volatility in in we're

Jamminder Bhullar

clear period that we Okay. in there quarter. interest on And expiring that third a in RIS later been then But XQ on I spreads, year. caps that should other ex-VII? are stabilize basis And Or there's think rate core takes you've of are tender then this they'll of anything or the margins the you're assume a it's maturity out year, puts next else that would other? into blocks of whether [ or caps spreads as one going shift or drive business spread ] sort or and thinking in about way coming

John McCallion

we we kind another that earlier, as was of of is in could and this in XX things thought XX have earlier quarter, and that to we the rates X quarter were had we but we have do. we of were forecasted. interest X higher different remarks what at going and a said is few QX, it's time we I assumed a John. do to Like the we to were bps alluded Yes, advantage took than discussing Jimmy, opening the bit to this

-- quarter, marginally to the stabilization. the saw see should next to most projecting then kind the each cash remainder of as So we trend of VII similar off roll well, of interest then this rate increase the quarters remaining that here. and we're X Also, you

that kind I'd comment the the in then be stabilization you. some offset you So see of And would should QX. make to

to for In outlook information. terms we'll beyond go wait through of that, that

Jamminder Bhullar

any rates you Okay. in market? in rational? Japan, Or seeing is still are it And with of that evidence the then on interest reductions competition higher price

Lyndon Oliver

us to wide in range U.S. a We've both a this it allows say I focus in I would combined pricing discipline continue we on a We've but well along good to capabilities see competitive more while, dollar. a of a Look, of us But We always is distribution market. aggressive to once diversified maintain as maintain investment rational. our in and get set very got it's good All player origination environment. platform. yen We've internal mean as capabilities. competitive with got product our puts reinsurance profitability. position got a and our kind strong the differentiate position,

Operator

to Wells with Fargo. We'll Elyse Greenspan next go

Elyse Greenspan

change question, color just just any the for what PRT side. in you business? market you this give that pipeline some first starting My just see the Can on for in back maybe the of and on half competitive year

Ramy Tadros

to we're are pipeline, well a market, here, positioned. here bode we [indiscernible] the focus how have quarters, we're if the secular It's And that on respect we Ramy and advantages. the healthy pipeline really where the particularly there next which larger end us here. where Elyse, pretty beyond of step seeing of for couple With and trends just still you is

rising plan they If transfer and DB after significant are those survey, a all point looking sponsors you who derisk including ours, and to of sponsors survey the plan risk. to proportion survey and corporate

$X status market more of large these very a affordable. look you pretty if the lot trillion at DB You also of you've funding transfers all stock have assets, which corporate got a makes risk that's only. And private good,

pipeline. we're what be sitting we're but healthy now, jumbo the done we've looking the pretty always these this rest at of lumpy, seeing with also quarter. year, So And will a here pleased very

we're and our you billion here. we As pleased performance saw, very with of $X.X clearly did PRT,

Elyse Greenspan

maybe And earnings the strong on quarter. in the you. question the were Asia, Thank pretty second

you favorable underwriting stood anything the about run remarks. called more rate in the prepared that out out think to just of kind just Anything and that quarter? I maybe think within earnings guys in segment the

Lyndon Oliver

Yes. Elyse, it's Lyndon here.

weaker higher the I We As was And pleased than surrender overall and earnings for to their we're Asia that in earlier, I results that yen activity, higher-than-expected said lock gains. in see with some the mean, the quarter. by driven was customers expected did in in as quarter. start the

did better performance higher of in real In does a equity quarter, And see allocation the addition, estate we in estate year. to prior get funds. saw Asia we real relative the

in for of strong earnings quarter for Asia. So the are those results sort X drivers the

Operator

John Sandler. Barnidge Piper We'll take from next question our at

John Barnidge

broaden out regime is to the opportunity an capital-light in Bermuda Japan, there platform, With model? create the change capital more

John McCallion

it's John, that take one. I'll John.

think in I now, decade to had quite something and some time. actually them place right for We that's entities in always a have we've X place. had for look, close we've Bermuda So

our products. it's we used probably Japan that of some So and with used a we have tool one have successfully

and about model always relative you to a the take some jurisdiction own we that we reevaluate what's and our we -- economic capital the for of and we fit And determine level factors some think allow I of will ESR to consider at evaluate as of requirements. what's then one look purpose. -- of prudent of that really internal it's think kind

just an optimization we'll do us. continue just but for the and I it with tool other think we So with been to continues not use way, has sometimes be that, not Japan, And to well. Bermuda by jurisdictions certainly, -- -- as and

John Barnidge

or about the Can have. revenues the my greater rates large that Is And question opportunity close profitability follow-up driving to you is it persistency? about data the talk of leverage on set? you opportunity or

Michel Khalaf

Michel. the it's question. Thanks for John,

we seen, And is data. advantage. -- of are sort around because remarks, freeing I advanced terms is leverage mentioned about progress. think the future up again, capabilities efficiency signs here, advantage we investments. real make built areas where very signs, to cases, meeting we've if that size not in customer experience. more as data, investing technology driving here, fact would impact So expectations, that there some that, our cases, we've an have other in capacity in the obviously, only and And X customer to lot of our of but in the we're this and we've current you say competitive And of have One of in able on mindset I early important my part important that's been a those

revenue where I potential impact seeing the growth. around a think is area other driving we're

and opportunities. data help And is can And that. we drive efficiency. the see again, here, significant technology area So around third

XX.X% comes say, continue And we will to from drive first direct we is forward, those our will of is and still well. guidance can when second making going that has in expect to to our a come You half. data sort half, whereas under that to in typical, as provided below see we're And see the of trend the come that XX.X%. sort tick up expectation the investments I ratio, that it we'll expense in the which leverage ability which a in our at would downward

Operator

Ward to at Mike Citi. next And we'll move

Michael Ward

agnostic Fed it discussions to that, change to or kind update? before I was about any holdings activity Or is in to ask hoping scheme. Any I'm those curious to of your are? how active pressure execute cuts? but

John McCallion

John. question. the for it's Mike, Thanks

say we the continued has would think year. we the did think I think the obviously, the last way it. And I about I'd environment to I remember we of that in November progress I spoke back this, last can't transaction time is but put

are today, don't still parties. We position we we same continuing the meet -- to are in that is with third which

no We kind to a something. continue but burning to have win-win, explore to needs of platform be we where do This opportunities. there's

real to it's for for -- not an it's -- a So requirement necessity a or a It's us. opportunity. us

nontraditional We but -- large continuous have requires We that generally so life a And life did discussions, transaction left. year. reviews. evaluations, blocks last traditional

attractive is in then terms it's to very of We but to people, And attractive us have life VA. returns. very also obviously, obviously have the LTC, we and traditional

be So that price I think a one. would

willing the limited to would supply of that. be there's then that think kind other about partners ones, of And

So more you're talking about a universe. narrow

gotten So say if ourselves. But I you continue would of manage we're no to changes we'll but opportunities, unique discussions continue, it's things, -- discuss in that. to happy able material do we're terms it and But to find momentum. those then

Michael Ward

And maybe private on of It maybe a frothy. to be seems an bit Helpful. then attention, area credit.

in more see I you some or Just curious that originate guys being Are like you've guess how you directly shops what's boutique investing in And you your versus that How of ability cautious? the leaning done? balance landscape? -- to strategy? the do having

John McCallion

again. question. John It's an It's interesting

definitionally, has XXX credit first, private think, probably out different definitions I there.

we're we always the ag an been we can of X But decide think ag think the there, -- lender as it's mean loan I whether to XXX day, right? have everyone broadly lender have of private net that's mortgage -- you origination, tough platform, commercial government. So #X if largest which you a about. you is one kind We're speaking, we're in which I for wide cast at credit, the U.S. a the infrastructure well. -- outside our I end talking loan the years, of

higher and well. but -- have grade, so products as we were And typically higher-yielding we some

And us. so we is we've about have of something unique a It's over the talked capability years a for number platforms. origination

your to in. it's everyone area has but that been And jumping -- an point, so

of much kind the So term -- very kind disciplined now a your is view of private There you need in to around credit. be approach.

which own it, for that's approach have think sectors we it. and so we competitive are that need so term would long our approached that is about mindful And we much everyone approach to more And think -- think there be the way, just it today are our is -- their unique I you way we're to of. but has the I say

Operator

turn will to conference concludes our Hall closing now remarks. I And that John Q&A for back the over session.

John Hall

a summer. Thank Have thanks, joining you, and Great. for us morning. everybody, operator, great this

Operator

Thank this you today's call. participation. conference your for And concludes

now may disconnect. You

MetLife (MET) 1 Aug 242024 Q2 Earnings call transcript