MetLife reported a notable improvement in second-quarter adjusted earnings, driven by stronger underwriting performance, broad-based volume growth and an uplift in investment returns associated with higher interest rates. The company highlighted particularly robust results across its Asia and Latin America operations.
Management said the insurance industry more broadly has benefited from resilient customer demand, robust sales growth and disciplined underwriting practices. MetLife noted that elevated interest rates contributed to stronger investment results during the period.
Financial results and revenue drivers
For the three months ended June 30, MetLife said premiums, fees and other revenue increased 7% year-over-year to $13.7 billion. The company clarified that this category typically reflects the income insurers earn from selling insurance policies, annuities and related financial products. MetLife also reported that adjusted earnings per share rose 20% to $2.43 for the quarter.
Net investment income rose sharply, increasing 18% to $6.7 billion in the period. The company noted that insurers typically generate investment income by investing premiums they collect, primarily in bonds and other low-risk assets.
Business lines and regional performance
- Group benefits - which include employer-sponsored insurance products - posted a 25% increase in adjusted profit, reaching $503 million.
- Asia adjusted earnings were up 21% on a reported basis in the quarter.
- Latin America recorded a 15% increase in adjusted earnings.
Reflecting on the results, CEO Michel Khalaf said, "This quarter further reinforces our ability to create value for shareholders across cycles."
Company profile
Founded in 1868, MetLife operates in more than 40 markets and is one of the world’s largest life insurers. The company offers insurance, annuities, employee benefits and asset management services to individuals and institutions.
Takeaway
MetLife's second-quarter performance showed strength across revenue growth, underwriting, and investment returns. Regional gains in Asia and Latin America, plus a solid quarter for group benefits, contributed to a 20% rise in adjusted earnings per share and significant increases in both top-line revenue and investment income.