On February 5, 2025, MetLife Inc (MET, Financial) released its 8-K filing detailing its financial performance for the fourth quarter and full year of 2024. MetLife, one of the largest life insurers in the U.S., offers a wide range of insurance and financial services products across five segments: U.S., Asia, Latin America, Europe/Middle East/Africa (EMEA), and MetLife Holdings. The U.S. segment, contributing around 50% of earnings, is divided into group benefits and retirement solutions. The Asia segment, primarily driven by Japan, contributes 22% of earnings, while Latin America accounts for 13%, EMEA for 4%, and MetLife Holdings for 11%.

Financial Performance Overview

MetLife Inc (MET, Financial) reported a net income of $1.2 billion for the fourth quarter of 2024, or $1.78 per share, significantly up from $574 million, or $0.77 per share, in the same period of 2023. This represents a 116% increase in net income. Adjusted earnings for the quarter were $1.5 billion, or $2.09 per share, surpassing the analyst estimate of $1.97 per share. For the full year, net income reached $4.2 billion, or $5.94 per share, marking a 228% increase from the previous year. Adjusted earnings for the year were $5.8 billion, or $8.15 per share, up 12% from 2023, exceeding the annual estimate of $6.16 per share.

Revenue and Investment Income

Fourth quarter premiums, fees, and other revenues totaled $14.5 billion, a 6% increase from the prior year. Net investment income rose slightly to $5.4 billion, driven by higher private equity returns and asset growth. However, net investment losses were reported at $311 million, primarily due to market volatility and derivative losses of $903 million, influenced by rising interest rates and currency fluctuations.

Segment Performance

The Asia segment showed remarkable growth with adjusted earnings up 50% on a reported basis, driven by favorable underwriting and investment income. In contrast, the Group Benefits and Retirement and Income Solutions segments experienced declines in adjusted earnings by 11% and 8%, respectively, due to lower underwriting margins and interest margins.

Key Financial Metrics

MetLife's book value per share decreased by 4% to $34.28, while the adjusted book value per share increased by 2% to $54.81. The return on equity (ROE) for the fourth quarter was 19.6%, with an adjusted ROE of 15.4%. The holding company maintained a strong cash position with $5.1 billion in cash and liquid assets, exceeding its target cash buffer.

MetLife's strength and resilience were evident in 2024 as we delivered solid fourth quarter and full year results," said MetLife President and Chief Executive Officer Michel Khalaf. "We exceeded our five-year Next Horizon commitments and begin our New Frontier strategy from a position of strength with a greater emphasis on responsible growth."

Analysis and Outlook

MetLife Inc (MET, Financial) demonstrated robust financial performance in 2024, surpassing analyst expectations and achieving significant growth in net income and adjusted earnings. The company's strategic focus on responsible growth and its diversified global presence have positioned it well for future challenges. However, the decline in certain segments highlights the need for continued focus on improving underwriting margins and managing interest rate risks.

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Explore the complete 8-K earnings release (here) from MetLife Inc for further details.