MET - Earnings call transcript Q3 2024

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the MetLife Third 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.

John Hall

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

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

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

Michel Khalaf

night, many unemployment the our favor markets. under Income promising U.S., and positive at which slope that share, X investment to underlying our Thank our and the businesses. In a control, momentum the beyond businesses. Outside everyone. items, and broader-based third has for conditions our U.S., businesses. per year-to-date Last morning, inflation to Benefits seeing wider variable be XX%, up are favorable levels, on notable both reported our and a see we pressure remains Taking global view, results, These environment our you, adjusted good set a income and historically market-leading attractiveness of a absorbing of Solutions curve key earnings appears to MetLife low backdrop quarter excluding for financial John, pointing started affirm the while yield Group years. are Retirement of are

near-shoring motion, near government X% For instance, put well economy activities in to can and investment higher JGB money world, to of business is Mexican has the in our and the MetLife in inflation, for incentives potential from into at which around and the offers. Elsewhere Mexico, moving wages, as the and save work people as the put the products combination insurance the there. more XX-year modest sidelines for to Japan, good

While rapid we managed wider digital uncertain XXX-year is distribution the here times. of have services geopolitical customers. election and risk products to financial democratizing MetLife for U.S. the them throughout channels financial in and bringing its an adoption remain audience in in regions persist week. Yet next has conditions of and challenging, Brazil, opportunity a successfully in the Still, many history, found that

building these, Our a purpose, to have more with times create confidence stakeholders other resonates you for going MetLife forward. future, and confident customers, like continue every at our Always that value shareholders and will I

earnings partially per per and and favorable share interest than by currency We net items quarter. per our review year billion actuarial notable margins, equity markets. offset reported assumption higher other less and earnings share. Recurring or were growth volume annual adjusted After positive foreign the rates ago, to $X.XX a totaled all of Turning reflecting adjustments, underwriting share. $X.XX $X.X insurance from adjusted exchange

to indicated, extending VII, adjusted year. In performance estate real below evident high efficiency results. range business full previously the returns. expense of improvement same demonstrates generate equity income, other third leading investment year-over-year target was MetLife we an seen the of under in And on mindset the variable returns business. return to and returns for reflect XX% below private responsible power or segment key fund XX.X% to in the our time, track trend on through further XX% year quarter, ratio had we prior and came posted improved on growth As This a our XX.X%, quarter At our results. our our XX.X% equity, the focus developed year. to metrics to annual we've sequentially, target. Shifting period the deploying and dip expectations, MetLife's are the direct exceed capital our and

down Our year of a business from basis, strong ago. a items, Group million, reported items, $XXX also earnings On underwriting Benefits up excluding quarter a notable year-to-date adjusted adjusted excluding earnings notable X%. are

other competitive scale adjusted fees and the X.X%. rose long broad our points been range Our have product Benefits quarter, to adjusted for [indiscernible] business, policies, the excluding PFOs, premiums, of Group our differentiation contributing growth. In and revenue

easier an and Upwise informed Upwise engaged custom And making employee's research their X.X%. individual important benefit enrollment preferences. decisions experiences shows more recommendations more benefits Upwise, benefits. help million grew and make use productive on newly For based X and needs is employers. us, the by to lead that season MetLife's the upon using and a PFOs be enrollment because basis developed year-to-date simplifies choose to adjusted benefits than for again a same this our able their more period, employees selection on U.S. With win to them year, by similarly employee will employees tool a selection workforce,

billion X in XXXX that so or reinsurance $X.X now maturing. remains plan about to from to the to divest XX% years. in stable Retirement The the totaled Solutions, goals, leadership derisking and longevity XXXX. the in these to we transfer our far risk the U.K. value benefit strong, impact to We Sales jumbo million PRT poll pipeline. and pension pension which completely reflecting fourth Income to Moving risk pension intend risk transfer published closed of full a companies companies start and in interest a with $XXX plans, found next Adjusted continues point of X poll items, space. With notable XX% earnings, robust position excluding quarter, RIS. we've last defined Moreover, rate annual caps XXXX among to the sales transfer maintain a month, of competitive half the of our pension their strong divest poll. up quarter, in

million, by underwriting partially On margins. X% $XXX items, basis, excluding year-to-date grew to a from XX%. were the adjusted on items, quarter notable ago down Turning favorable Asia. offset earnings year earnings, market-related Adjusted

general basis. a currency region, on this Asia's a key management, constant under assets measure grew account year-over-year for X%

bottom America. line Latin notable constant adjusted double results $XXX from to million, grew sales strong of rising We adjusted earnings PFOs currency X% a both On items basis, digits. Looking ago. excluding and a year with saw

Our companies solution adoption momentum allows Accelerator, have building players this that has been of To sales innovative with America customers opportunity, in have customers with helps Accelerator than the X to Latin us Latin banks, and region in the in partner which experience. Starting our This to market. simple, of where million core for markets fully customers out digital in to time. frictionless upon ago. seen year leading we in growing since launching called Mexico We capture deployed more technology Chile and insurance meet integrated some a other some offer MetLife financial distribution Brazil. where Brazil, an be insurance the to retailers America, leading we including can other seized this technology in are. bring in-force with branched a of they to digital and

For business tool. a to some as have importance new value of of the time critical management spoken now, we

of impressive. our Our is execution this metric focus the across and intensity

when the billion $X.X billion of we of X XX% in basis over substantial period Next Horizon generated made consider It payback up progress the $X.X increase with in point a roughly to is and return decrease of capital of a a of time course the period, frame, you which XXX more cash IRR all sooner. of a adds we've XXXX, creating years. deployed, more payback rate For on internal impressive VNB even X-year

rates As of you can MetLife see organic attractive from our and return. with growth periods VNB numbers, internal prioritizes payback

also repurchase attractive inorganic We growth while with will also generating shareholders favor we IRRs. and appropriate available, are share similar financial organic opportunities characteristics. not to via inorganic capital return strategic When

billion record roughly via quarter, we capital third our and again to proves of This management back approximately to We billion on this $X.X common total $XXX stock distributed share million stock and to repurchase and repurchase. authorization. $X of track more Our close through dividends than $X common brings still active stock out. In were common remaining $XXX third shareholders in dividends [ ] returned million We the common Board our billion. quarter have about bought shares. the

end third excited is of Frontier. closer assets $X our we our Investor at had are which billion holding above buffer December billion the wrap to out $X cash moving ] of to companies, quarter, and we our XX the cash liquid at target next New are of up, strategy, we $X.X [ our where X-year to Finally, billion. To Day, roll

to Horizon Frontier even not have platform a direction New success win. of the in Rather, radical that it pathway is a and right in As where have a we lead to us growth change future. the to MetLife is Next It places to mentioned, takes provides for stronger on the performance builds I MetLife.

X position and on returns forward towards years anchored than We more to ago, look New much boosting and a I are were of growth, in versus on the greater different front-footed fostering are Frontier, precepts which oriented consistency. accelerating defense. we expanding offense

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

John McCallion

with XQ actuarial 'XX review. supplemental Thank you, annual including Michel, the of which highlights provide global morning. our good performance, our and I'll assumption of start details slides, financial

Korea; earnings. adjusted activity currency Life quality billion, share life the a updates on primarily expected. The and refinement. In hedging net on of quarter. mortality or offset the across highlights X% adjusted last risk actuarial And our refinement were net due X, was was Page earnings remains impact program impact X see on and this liquidity can yen Adjusted up to and investment This had in quarter. were performed the basis. offset our the lower adjustments lower recurring on higher interest the and In products gains position. Starting earnings. third our assumptions basis quarter our liability a partially income annual resilient to continuation a review in which primarily factors: of losses modest, impact these new small an the provide feature Asia, segment. years, interest net table reflecting we were long-term of lower trend than segment, consistent insurance impact third Page to portfolio by of for and portfolio. X% Korea. On we the earnings capital adjusted due other solid impact have subset assumption Overall, and and Overall, ongoing Adjusted per maintained a the versus year-over-year. $X.XX, by fund due constant for adjusted to the partially earnings a a mortality but gains changes impact improved in derivative health net to In the primarily derivative to reported basis as income assumption from returns the accident rates. Net were X% I'll due normal and investment you provide no the environment. the morbidity payout Solutions, losses few million There a of Group by to provides had excluding $XXX impact to down net by life accident were market high rates decline of U.S. Group X over income lower to reflects of Page in resulted income Japan with and expected credit MRB, partially adjusted Japan; related trading annuity earnings a to items. of addition, comparison and products on stable our We and Retirement and said, unfavorable $X.X adjusted in due comparison Income margins, health while a X, unfavorable metrics earnings the billion, a Benefits, to unfavorable value and our currency and and is volume of products X% growth $X.X remeasurement breakdown modest. in positive third an year-over-year earnings due dollar on positive with we notable interest variable constant pre-COVID. strengthening offset by on down RIS, in or was lapsed benefit, business That Net in impact

excluding QX adjusted down This notable was to Moving The and primarily million, earnings ratio [ of our nonmedical annual $XXX ] the when of 'XX. less XX.X% XX% to Benefits mortality year-over-year, health were underwriting in XX.X% was earlier. due versus Life below Group favorable margins a Group discussed XX%. items target comparison businesses. to the XX% strong

middle the seasonally Year-to-date, toward of remain target the strong, life of ratio claims results our 'XX. expect record-low in fourth at be the to the Our although Life the mortality albeit of Group ratio mortality range, low quarter. would following remained range our XQ we end annual in

quarter, of XQ was the item excluding the the our disability health, to than 'XX. related nonmedical ratio target year XX% prior of but Regarding interest-adjusted of to annual higher notable a or in quarter XX.X% XX% XX% range within favorable benefit XX.X% in

versus of down XXX investment income. variable continued prior interest Turning partially strong XXXX margins. RIS rate basis strong earnings target XX PFOs were sequentially the to basis the to Group growth Benefits X% growth volume RIS our of adjusted by and midpoint were expiration line. XX% Lower ] and up Benefits of total to down X% X% and in X%. the were Group at year-to-date by top sales were year-over-year adjusted accounts. favorable margins driven points, offset [ mainly year. lower growth $XXX the points recurring million, were caps due national investment up range underwriting interest spreads

QX earnings of decline. of the the continued in roll-off drove interest As the we majority sequential the call, caps highlighted the rate

majority past to in the see to we strong premiums PRT, seen market. interest longevity strong be points. RIS Given current adjusted over risk up of expect $XXX in excluding by quarter with $X.X in have curve, third have year-over-year already to in and and active we primarily billion regards driven sales million X quarter, U.K. continue excluding had up alone. the variable wins With flat to reinsurance. now caps the PRT expired spreads, X QX We PFOs, we X% to fourth vast interest on were transfers, a of approximately based an stabilize pension start month investment the and basis rate income, forward to

the Moving Adjusted currency underwriting by X% constant partially X% and down to quarter, were favorable primarily due Asia. earnings in offset million, margins. market-related $XXX on a basis items to

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

strong down Japan and of X% on India Japan, currency mostly due a to the on year-over-year sales most due were In China. X% volatility sales impact other by sales growth basis. Lower XX%, Asian notably currency which Asia to up were markets, constant foreign offset were down were products. in primarily yen

and to given interest continue see higher outlook favorable a in macro Japan. we changes positive However, rates

basis year America's life yen-denominated Chilean continues have America persistency driven primarily our adjusted driven a example, and returns well. Latin $XXX by and PFOs growth were in introduced on and as variable quarter to by currency For strong up [ X% products top been up the constant perform also refreshed volume or million, strong our solid in and adjusted encaje cancer X% well this key ] Latin earlier XX% were earnings a line region. markets. XX% on across basis constant sales currency the

and year-over-year. by equity Holdings reflects of year. Adjusted this range a year The the in primarily was rate versus on [ XX% XX% constant X% quarter basis prior million of Corporate EMEA. growth company's on to X.X% the The billion X.X% XX% QX driven and a the a QX growth currency prior $XX over in quarters, up investment constant PFOs ] $XX constant including of a for within earnings across to X, [ quarter. 'XX. [ a $XX million, The $XXX million adjusted 'XX. from were our the Other [ pretax earnings prior chart and had by volume guidance down ] the in the compared loss of strong sales adjusted assets million, which income to $XXX on had quarter. ] XX closed basis on was private QX that currency 'XX. driver X% XX%. On basis VII region, adjusted November of XX% XXXX XX% return Turning down approximately transaction were $XXX the This foregone of reported of in ] September XX% up [ an $XXX X primarily in was driven ] as earnings currency portfolio, in effective to basis versus Page This loss our million the EMEA to due & Turkey up were adjusted return adjusted a tax was positive versus million earnings reinsurance were primary and in XXXX. Egypt. MetLife and

trends, returns $X.X continued to improve real billion recent our of and quarter. X.X% a PE other roughly were While estate-related the below return funds with in

the PE, other for real and X-quarter X quarters a and the by estate-related we on basis. On of third reminder, As VII Page on quarter are funds post-tax for a reported and segment 'XX. accounted last a lag mark-to-market X, provide

As you given of Holdings profile. proportion liability long-dated hold largest the to assets can see and chart, MetLife VII the in their continue Asia

page chart including split prior years, 'XX net adjusted the The and the net essentially Now investment VII and QX recurring Page of income X. year. investment quarter X turning the Adjusted on last our of XXXX 'XX. income flat the the of between of to in left illustrates third for was versus

While recurring rate growth the benefited investment been asset and of has higher roll-off interest rates, has by offset caps. income interest it from

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

recently basis last to and between rate more in yields in reinvested spread 'XX, yields, narrowing rolling downs In of of pay XQ off. purchases decline global new rates a the purchased of and value basis XQ the relative the and XX rates new similar a twice of rate. higher have X%, money That been point primarily also the roughly XX yields. I interest with assets would private quarter roll-off than in interest the that assets higher-yield money of billion, money rates. $XX that yield points said, rate-related quarters, due than of new with The have elevated public roughly outpaced QX invested note in high the these securities. Over roll-off U.S. higher in downs XQ yields money achieved pay in roll-off XX was the new our consistent from proceeds

new difference margin perfect and on the our rates is these depiction in-force in it's of new shown as between continue money our not an of nature only directional to we positive here future higher while impacts. a impact growth. So impact, investment roll-off and yields business see indicative metric yields for At levels, and spread

and This expense the of moving XX%, to of 'XX. to X. quarters our shows Page year X XX.X% on XX.X% XXXX expenses of including direct a the first comparison QX of in Now all 'XX ratio for below chart full

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

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

a we our would expect in positions direct our performance expense nature direct to said, ahead, our of higher full us year efficiency our to with the XXXX be business. our execution mindset. consistent expense beat and quarter, That the fourth ratio sustained XX.X%, seasonal ratio Looking of consistent demonstrating target year-to-date

Now of for support is flows. Page position billion billion average an in our XX. to XX, $X third other on at payment value. I for buffer XXXX. Cash including unlevered and capital with dividends, now subsidiary cash of above XX% business effects IRR MetLife at let's dividend holding of well the target and Cash invested common new and net expenses a cash generating holding holding metrics MetLife's companies billion an million the company share of in roughly in at assets $X deployed our billion will years, $X.X XXXX the the approximately past Page as which as cash turn chart of $XXX XX. stock to of to reflects for update X roughly was $X.X business. quarter segments September discuss billion. repurchases of capital value were new This and at years, companies This liquid period payback major X reflects our $X.X the

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

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

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

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

and of metrics our to new all-weather balance our business our our position committed with growth In capital of a sheet, free deploying strength deploying addition, cash of market-leading use, flow generation to building strategy. MetLife consistent to its are and our customers we strong given to sustainable and for capital remains shareholders. value demonstrate and disciplined value and achieve our businesses, best our highest approach diversification responsible in

strategy. me December will Finally, our saying forward of that many Frontier XX which close we look on on Investor to seeing Day, our of introduction let the New at focus you by

quarter earnings questions. be have as we with call. And will the As years, our part that, the of our we back early the past February several to fourth offering call outlook I'll in for turn in near-term your XXXX operator

Operator

[Operator Instructions]

Suneet Kamath

I to start are know I could. ratios your been your loss maybe with little they've wanted ] higher if than recently. but Benefits, bit adjusted guide, [ Group tracking a I in

seen some how just dental, the as talk environment that I comments well. particularly think some And little a bit So pressure? maybe competitive in can thinking about you're in on business, about where you've pricing you

Ramy Tadros

of really we perspective reiterate seeing did competitive, said that in competitive dental, group. nature market that, which been particular, would always and any products on we pricing earnings, has any having fairly I'll will with pricing the quickly any short-term in in we're the not that kind the sell, maybe check aggressive the Suneet, acts competitive in the a means a is also change competitive. shop pricing. start of The environment. note remains environment as an I irrational not natural market But that irrational

see life extends we've yes, pleased range still beyond what and this ratio We're the not our you before And in as we So life. piece talked with It of the CDC once notable below benefiting of you. From quarter. start here, favorable competitive, is out. in environment. particularly population. kind And experiences, it's I'll working a the headline product also price population, lower of irrational. you the a competitive perspective, for kind in have continue we're end the about guidance also data from for capabilities, population of That our digital that breadth that take and to incidents do you ratios age with see terms of

as QX smaller you bottom life that on a moving were the ratio. in if even if pointed. still did seasonally nonmedical finally, nonmedical health the Those life at in to range, to were then we're would you health the to range point. We unfavorable about the We're worth ratio, within So we look which be also were ratio a higher to the the a have ratio. items life. And end the number side, factor on at you year-to-date, of of close for XX.X%. And

and prepandemic the seen pricing. of have seasonality utilization levels. past a that did with to also in about environment. taking have the range. Then we actions out, that's we in competitive did back talk about take you middle particular, if market trending we respect out, it the play right And dental to these that back terms would dynamics in And So talk of I and us bring been in

and how I it's we really of So our reprice ability given critical part and that about through reprice year. to dental manage any is think point We about of cycles. The here business block that maintain in forward, of going as make can XX% persistency. parcel really would

really we these back than reflects target our in dynamics. our while feel XXXX. this the quarter X/X So pricing seasonal margins was And returning our good for for about higher block to expectations,

Suneet Kamath

it. Got

little the guess, just for assuming John, either reduction they're improvement the driving a slide, in helpful. period? sort And these talk have of in or what's That's you of can IRRs. the the back-tested I IRRs? Okay. payback VNB sort you and on the And about then, Michel bit Because IRR I'm pricing

-- when blocks you Or give how us they your on pretty so can look pricing actually are And some at assumptions? you close developed to these have just color that?

Michel Khalaf

Thanks, Suneet. let add then as color I'll Sure. I'll start and well. some John

businesses, with Benefits, the focus you terms of organic So capital about continuing in is of higher-return strong reflected if X its was on new really really show pillars we our Group think been And to our Next there. Lat about allocate growth. And the use. I been of in capital and sort growth, main pleased one growth business that's for the support here Horizon of journey think Am, of allocating which -- trajectory in of we've to we've on think highest how best here, pillar,

across that's you picture factor. returns contributing certainly growing businesses, see with getting VNB We're XX%, the than that's not of say, a businesses that higher some contributing certainly the businesses, other the fact but all So have of on would our we faster our slide. to I

John McCallion

across we've favorable. interest the of in about Suneet, And thinking been case our think best new -- couple I on this Yes. testing -- benign about as our think business just I I a line based the on estimate are mean, environment think been your that you in good a just And IRRs have generally in -- these right? credit think said, question, I been here, rates as favorable have there's we've environment. of point And that been is been I has Underwriting well. you around things. Certainly, because -- assumptions. -- businesses has priced it's and back the if

the So more little about so is we're all momentum ourselves seeing positive we same take, a things. the -- the think, asked of precise, a answer certainly those there a did is I I And regulatory favors pricing, moved because we've an I those changes. framework. how think economic has in terms yes, be of tool you use to get thinking as think really Like of like it's But about framework our tend driver to or itself hard of for some everyone Michel in question think -- tool obviously, mix said, all to give here. terms because, they've capital the positive momentum, business management just in refine an favorable the new economic example, we typically We business. Two, continue things to follow optimization, Korea, recently, might reinsurance. -- to up causes of on

ultimately us a lot that think the there. will be thing company. And more third excess unit that So over been then holding trend capital improvement I there of time up a into there's is redistributed has cost given the

think like IRRs of I biggest had occurring. of probably rise have of that you growth to why what and you group Michel capital-intensive those I from our is -- some businesses migration of one business, the high very see So is this give Latin kind factors all high low in certainly mix And said, which businesses think in have America.

helps. it hopefully, So

Suneet Kamath

your a I would throw in directional they're I'm mean, I If that one is indication the assuming where could ROE returns? give headed quick IRRs, These of given unlevered does. just us follow-up. It

Michel Khalaf

should of low-ROE business, just is the which that direction think consider that if good besides that I fact here, of MetLife in mean, running I you mentioned, is a what a off. indication we Yes. give Holdings, especially terms traffic

would these to a I all think, trending factors ROE point So upwards. of combined,

Operator

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

Jamminder Bhullar

exchange And on dollar-denominated that renewed couple could in single then One to other loans of exposure there bottoming? term? the a And just back assume I the asset, you give are stay will real I weak some the you fairly Or Should the we numbers borrower-type non-office, But you that near on concerns, then questions. the yen-dollar Japan there's overall should thinking office around those. that what rate stable with with think, seems in especially sales. secondly, Japan was think do your your they've moving with commercial estate products, CMBS. recently sales, on just portfolio, And single sort been. the most the to about portfolio on if that been they market? where and of you're are seeing help are close impact? And had products mitigate in of metrics

Lyndon Oliver

Great. Lyndon Jimmy, here. it's

Let me question. take the Japan

Look, rates give on some we seeing and market. positive start overall more competitive. Look, are has we're you what an an let's is with Japan Asia. FX seeing become increasing is products as interest Japan that environment for there. trends And sales, overall attractive So macro color well I'll as

were year-over-year you products. If in at single Japan premium look sales, they lower FX

of then, volatility against last the continued few for reasons. full we Now face year-over-year. a you in FX of do Sales markets, comparative year. were up the products. the sales tough yen in impacted see as a quarter, 'XX currency XX% and year foreign strengthened has And the We said, has that while

for essentially, sales So sideline quarter more where customers staying volatility. Japan line were FX the what we're the quarter. on the of third they second these seeing for were are during periods with sequentially in

portfolio. diversified a have do we Now

to in have U.S. continue yen this products to as We Japan. both And well competitiveness. portfolio maintain dollar product we evolve as

variable A&H planning dollar gone product. year-over-year, new performed a launch up We've at So we've medical seeing, product to life products China product we're rest have cancer launched our driven sales yen-denominated product this refreshed launched from a introduced X% and next we a early Asia, life a that's what India. refreshed the U.S. year. If primarily and earlier look we're new of this We've Both also We have well. month, and products. several year. very launched

especially Solid channels. seen agency. as you there we've across we sales our all if growth bancassurance increase look as And sharply China, well performance India, with strong in our as channels, in across both look

in outlook the with been for year-to-date sales we and an look, year goes, year, expect full Asia sales have flat line as close prior year-over-year. far be As to to

John McCallion

Jimmy, I'll take commercial your or comment question. mortgage

point real despite estate. some out, right? we've we've news As There's think a for overall kind you office, healthy. now good continued probably outside feel like hit has trough, the recent few economic economy. a of I -- been I kind think of backdrop of on as There's modest been There's towards for or outlook. trend commented been kind -- has has office you factors, fundamentals probably in-office healthy positive growth of pointed and even here. And out, the some pressure, seen of the That momentum fundamentals overall, we we've we feel

expectation curve, have be interest a of some at would here. declining steepening some rates. Even would the least I You like of think, positive

activity. in of gain, estate quarter. a properties in the $XXX see increasing real us $XXX I think You're we million, probably gain starting about Even million transaction to -- this quarter, we X for of had sales

see come to So more liquidity into market. just again, the back starting we're

We're a going starting XXXX I So backdrop out certainly for we positive that's there think is emerge. think don't up se, environment. per of V-shape but kind positive more we're it. of is overall, see not recovery to -- a a it setting to

asked don't CMBS, the about think exact on have you number I but borrower. relatively it's small. single I

I'd give you just statistics. think few I a

about small. $XX or or borrower of of XX% We billion don't of the rated I have is just AAA XX% But over have my single is that, CMBS. at And relatively fingertips. that AA. about that exposure

Operator

Evercore. line question from of next the Our Tom Gallagher from comes

Thomas Gallagher

just the follow-up that? First, Benefits. also it you it Are out? or might than that risks you elevated does is Or were in on -- tail playing recover outside there in nonmedical then the repricing quarter. those can works where margin? Group quickly? a -- something certain Or take see a mentioned of is be would products is to elevated? you year of that there -- you how a what The are health those were think And those? those expect -- versus Ramy, going just those the there else? way Is you What disability reason to quicker to I were there the And those do remain dental, the some dental, -- think on terms

Ramy Tadros

for question. you the thank Tom,

So the one-timers were about X point in aggregate.

think of X So in aggregate. items were as the them small point -- about

that one-timers. million of And largely tax. characterize $XX would post think as them as So I about

-- we've of timing So rate item approvals. another small the true-up, of on on item reinsurance some got

that the a quarter. items as collection of them of think So just in all went against us

the and perform Within incidents for continue see line us, in to we very expectations. disability -- with continues well to

We that continue to of recoveries line strong see business. in

more the beginning think dental, and of of comes rate putting have bit on in as would color business a into these them some in largely year. up kind of renewal, And when been aggregate, items. increases as say, -- for smaller onetime rate in that's increases we I So But the kind books those of the nature. With since of will place. go a

good the And what the we're we from going be our seeing point. to While pretty is complete far, into to for are year this X/X, visibility we back don't 'XX. have full at so visibility margin

So us our would this have is kind not towards of We're target a end the multiyear to margin. back of and issue. cycle, that X/X

Thomas Gallagher

Curious looked they moving too anything peer beyond you you that Got pricing going the pursue? that you've Or then market pricing transfer, a you have, of risk that. and it, that share view something into is said your not on decided on. the to yours might pursue if adverse, care long-term just into if that do view want you. is was onerous? And of A to transfer. question risk They're and too looked recently they're

Ramy Tadros

it's Tom, here. Ramy again

specific While peer. can't on the of I any comment

XX our to book managed. which with narrowing, are spreads I about say there. But book capitalized, increased expectations. activity, perform the well see and the in say, is, over we've somewhat months. encouraging is It I always of the some to would continue I it's would particular spreads in continues well bid-ask that bid-ask think last our out We as as line that are And in activity we think, market, said,

to options risk Clearly, needs So deal long-term we assess value. transfer to shareholder any continue create

here. say, and of price matters, narrowing structure bid-ask there I somewhat of matters we see. spreads would in So discussions in active But general, terms what

Operator

KBW. from from line the question comes next Our of Ryan Krueger

Ryan Krueger

John, spreads stable spreads also well on quarter on in fourth the translate your as stabilizing comment spreads. I on curve? the forward does into 'XX had question RIS a in the based

John McCallion

morning. points and and right, kind out quarter little came what core good just of had said, we of to rehash the in the this of basis it relative called quarter Ryan, on XX. we bit to just as second decline a more had a XX Yes, to X around I we -- what spreads, in had

remarks, didn't reminder, X say a came which we think to the I occur in good well, my in opening is XX in we under that. that and said as quarter, I So second would

quarter. had a lower So in a quarters what each rates those this bit we the some of quarter. we function And of of quarter, rates little during did just are the had

February. little us outlook a up color quarter. We'll basis of flat gives more rates in to the the being of to give Although fourth as everyone -- a has seen, bit have up, ticked which in kind come points call optimism few

I but spread, way a that is maybe gotten will to like But feel the more I'd think we've I do say the it. maybe -- stable matters. curve that put we

we So that outlook. will our do aspect be an what in of

kind hesitant to it So of call now.

of outlook and wait see in I is, the But and are sensitivities curve. upon also that, can stability the the like very all, seeing of now. we think kind things we'll where more curve all the dependent and change

for now. a And I that's assumption think fair so

Ryan Krueger

do point? this then at investment fourth And have variable you any early insight income into quarter

John McCallion

of the have And probably view. they to of yes, portfolio in that a reality was mean, wish good if adjust look, this a more rates still the but the don't I probably think quarter. volatile options. That I at know we and could have higher we say continue is of this I I to -- really -- we said, and have sector end exit the it positive I insights. markets set a PE, constrained returns day,

earlier We kind the back of to out, other the some had related $XXX the I the that a positive at call I seeing your that also saw estate. And did there was is think we're referencing real million conference occur. of quarter, possibly, in think made I of again, real another around what we in funds rebound it comments thing and estate I in maybe distributions

cash strong flow. a giving still is this So

good think maybe We we and were across. think one-off to kind a those quartile -- the been the has deep, opposed half quarter, as I top -- of had the in in relative that top performance, top are funds half there when asset quarter, second-quartile went on scale, a factors. performance. In funds some marks to broad few one-off performance that in probably dug mark we saw I of particular a situations certain more where think,

maybe So of us that we back and levels. the total fourth VII them today, use XQ quarter, proxy get are north to would should were where normalize our for be you to for doesn't if maybe think as we

for So of midpoint maybe you estimate take those fourth a good X juncture. as at this the quarter

Operator

Our comes from the next line Alex Barclays. of Scott question from

Taylor Scott

talk The the changing I to rate liabilities interested the and is your even rate would sensitivity of on RIS that just the us allocation specifically. think the across RIS comments curve Could kind feel rate you floating And through exposure. and about you back so Maybe firm. wanted and rates? to be broadly have help of the forth. some what to way a get maybe yield net come just I want more better floating shape negative? interest net of in has, of it for a positive, to

John McCallion

a steeper framing, a for Alex, is it's our John, and back. is generally, Yes, just as better. welcome -- portfolio curve

rates -- is are steeper curve well. we better, So higher as better

So I maybe think travel. of with helps the that direction

liabilities, of pretty assets matched. floating rate to we're well like terms our In

of & assets Corporate floating rate in Other. bit Sometimes we have a little

can place But that ultimately, for of curve a portfolio. you us, manage collective better just that's be might typically lower how short one and is the end see. So where we our

outlook our for we of still probably this shifts in of terms juncture. good the to terms pretty I parallel give proxies are February of in the the probably just directional the commentary slides think impact in So back firm. shape you this curve, of can curve at year provided I in But just

Taylor Scott

expense And as comments helpful. through here that's that that should come further are of and to across drive as strategies ratio will growing December the efficiency the we on the returns, can the enhancement some come provide through more levers returns? and the revenue Got you organization? that That's there growth with further to follow-up, it. in higher Or businesses and thinking through take it pull down that think a

Michel Khalaf

strong also of yes, would same the to it's we've John earlier, -- really say, organization, unit businesses, high-return the terms sort market. we to the product Alex, then combination how that And a I now continuing would -- been of that's in in with very sort price, point continue that grow say has discipline bring a our made muscle I that's down. of coming we of how cost to

factor contributing there. another that's So

those things. both So of it's

Operator

next from Wilma comes the from of line Burdis Raymond question James. Our

Wilma Jackson Burdis

Could normalized you run RIS? as group see what walk us a level of earnings rate more you both and through for

John McCallion

Okay.

-- were we to I sure we Wilma, hear I just make want think able to that.

You group through and just normalized walk earnings said, for RIS? you more could

Wilma Jackson Burdis

Yes, yes, sorry.

John McCallion

problem. No

at start just I a high can Okay. can and level, then Ramy add.

interest probably X RIS I'd been -- say to roughly roll-off underlying ended I RIS, fourth the in those to that see We I think levels the in mark. lower XX the say, think, have think our And account quarter is for now basically, caps. obviously, higher than has we've quarter, a the our would and our of quarter, impact we on. think delta obviously quarter. we that the you I were a second earnings Net-net, little third. see some run hit for we'll relative right? fairly rate large VII, February, And rate about if -- points us by take should that you off in on on provided actually a impacted some a the this little to basis for in roll guidance for where stabilization firm. we and what we expected. And And that's into

-- I to for have be a group, seasonality think matters lot. you

talking and one just happen that in a recur. added went where And we but have But things one others. depends I those were this the on we're that also went that's small things case us don't tend of in think expect it's quarter, numbers things against his a that Ramy out to did of in remarks, all in just to direction. we about. what pointed quarter just we've they I few all got as relatively few quarter. some think, that to Japan They and it some So And X all

know view we but of I juncture. quarter thought only So that's the I this you and give holistic I'd see And you kind of at how more a probably group, that. said RIS

Wilma Jackson Burdis

maybe more an but be levels? would environment Okay. you then just related returning that normal the talk about question, supportive VII earlier of just could to economic And to

John McCallion

Sure.

I think have to interest the the longer mean -- from as sector earlier, environment rates we benefited forever. I has been have a adjust, lower-forever we caused it's no right? that referencing significantly certainly, were is to sector higher that

and was model. a growth so opposed And kind don't And was risen, of have have just I that to -- wrong. the think just I as had was. strategy. to rates it was back it -- model leverage It to as think have firms shift the things

macro with M&A bit it's needs environment. exit activity, of the that taking some so environment that broader as the slowed And options also the and result coupled a IPO fact has a time, or and

starts a with we sector. more probably factor And onetime, one start to sector. positive that rates So second the importantly, improves curve as kind is that I aspect the think the will support stabilize to it's think the and to stabilize the probably that be of

Operator

Our from the Barnidge Sandler. next question Piper from comes of John line

John Barnidge

on My estate. question is real

side? more in recovery estate what post class could improved than actually on you be a the Given into the recovery could more think positivity asset VII real on and a real directionality end anything basis estate of larger else, up in extended goes cycle normalized do being the given it's

John McCallion

maybe that, larger you there And whether have what of make the that could a asking John, mean? result outlook? just a I you're be as to allocation sure Is

John Barnidge

allocation. not No,

was the on actually that allocation. Just turns, it think was actually real side, in than as estate the should the quarter VII of being other contribution not that larger counters, as larger we third prior of cycle to the in possibly overall

John McCallion

I wouldn't -- got it.

we've and Okay. I of in kind bit gave is we I views obviously, and all it, VII plus set I core, -- think expected. today, they of still were opportunistic. our our scaling, a up, And that Not I if in core of even true, if in relative -- migrate maybe concept. And real you think outlook certain outlook, using assumptions aren't on assumptions. come a -- that's still some predicated exposure would classes. and mean some for those they the -- returns wouldn't the more call asset of some given it's returns the, about good estate have

So capital think lower or a in of venture terms than you expecting say, be fund. on the investments, PE expected of what a types would they're those you would return for,

John Barnidge

other my but then just broadly And the up to be you we due seeing more helpful. opened Asia? Could growth question, very That's reform, about talk opportunity being Korea in not markets? can in those from regulatory

John McCallion

Yes.

our more just comment just my my on say to quickly economic I'll in run on think Korea, tend tend we to to -- you think have much the But I of is statutory manage in can't you so framework caught you and very work I like of better it, we a thinking that. jurisdiction, our nature about because to and do economic lot constraints certainly them. spend probably to business. firm time any we ignore Obviously, the a

per or for it business the outlook thing think I'm many not we And constraints. -- more having it in so Korea. but environment we we And sure so that's one too favorable opens to up for se, and avoids different it's us manage saw certainly

Operator

closing turn constraints, time the to to remarks. session now the John question-and-answer Due for have we're cut Hall I call back short. over to will to going

John Hall

happy Thank December Halloween, Have we Great. to you can XX. where Bye. joining for you, everybody, look us we seeing today. a and on forward

Operator

joining, for concluded. pleasant day Thank you a have you. Thank now and The has meeting

MetLife (MET) 31 Oct 242024 Q3 Earnings call transcript