MetLife Q3 Adjusted EPS Rises 22% on Investment Income, Segment Growth

MetLife Inc. (NYSE: MET) reported higher third-quarter 2026 earnings across its major operating segments, with adjusted earnings per share excluding notable items rising 22% from a year earlier. Stronger investment margins, underwriting results and variable investment income helped the insurer remain on track to surpass its annual profitability and expense-efficiency targets.

Net income available to common shareholders was $2.35 billion, or $3.67 per diluted share, compared with $818 million, or $1.22 per share, in the third quarter of 2025. Adjusted earnings increased to $1.78 billion, or $2.78 per share, from $1.58 billion, or $2.37 per share.

Excluding total notable items, adjusted earnings rose 17% to $1.83 billion. On a per-share basis, the measure increased 22% to $2.85, reflecting both earnings growth and a decline in diluted weighted-average shares to 639.9 million from 669.1 million.

Adjusted premiums, fees and other revenue increased to $13.92 billion from $12.46 billion. The company’s adjusted return on equity excluding notable items was 19.6%, which MetLife said leaves it on track to exceed its 15% to 17% annual target.

Investment income and operating segments support growth

Variable investment income reached $720 million on a pretax basis, above the quarterly target of $400 million implied by MetLife’s approximately $1.6 billion full-year guidance. The result, which the company attributed to higher private-equity returns, was consistent with its preliminary disclosure of at least $600 million. Post-tax variable investment income totaled $569 million, up from $382 million a year earlier.

Asia accounted for $277 million of post-tax variable investment income, while Retirement and Income Solutions contributed $164 million and Corporate & Other generated $118 million.

Adjusted earnings excluding notable items increased across all operating segments. Group Benefits earnings rose 14% to $523 million, supported by underwriting margins. Retirement and Income Solutions increased 12% to $478 million as investment margins and volume growth offset other pressures.

Asia earnings advanced 17% to $550 million, or 21% on a constant-currency basis. Investment margins, equity markets and volume growth were favorable drivers, while underwriting margins were unfavorable. Latin America reported a 3% increase to $229 million, although earnings declined 5% at constant exchange rates as unfavorable equity-market effects weighed against volume growth.

Europe, the Middle East and Africa increased adjusted earnings by 30% to $114 million, or 37% at constant currency, driven by volume growth. MetLife Investment Management reported a 9% increase to $63 million on business growth. The Corporate & Other loss narrowed to $131 million from $159 million, reflecting favorable investment margins and preferred-stock dividend effects, partly offset by expense margins.

Actuarial review reduces adjusted earnings

MetLife’s annual actuarial assumption review and other insurance adjustments reduced adjusted earnings by $46 million after tax, equivalent to $0.07 per share. The items lowered net income by $56 million, or $0.09 per share.

Retirement and Income Solutions recorded a $65 million adjusted earnings charge, primarily reflecting an unfavorable impact from lower mortality. That was partly offset by a $52 million benefit in Asia from economic and mortality updates. Latin America, EMEA and Corporate & Other recorded negative adjusted earnings impacts of $14 million, $6 million and $13 million, respectively.

The direct expense ratio excluding notable direct-expense items and pension risk transfers was 11.9%, compared with 11.6% a year earlier. Despite the year-over-year increase, MetLife said it remains on track to beat its 12.1% annual target.

Capital returns and portfolio exposure

MetLife returned approximately $1 billion to shareholders during the quarter, comprising $380 million of common-stock dividends and $650 million of share repurchases. Repurchases totaled $2.4 billion through October 2026, including $265 million in October.

Holding-company cash and liquid assets stood at $3.4 billion at quarter-end, within the company’s $3 billion to $4 billion cash buffer. MetLife expects total adjusted capital at its principal U.S. insurance subsidiaries to be about $17 billion on a National Association of Insurance Commissioners basis, up 3% from June 30. Its Japan economic solvency ratio was 192% for the fiscal year ended March 31, 2026.

The presentation also detailed $4.1 billion of combined exposure to major hyperscalers and data centers as of September 30. Each category represented less than 1% of MetLife’s $431 billion general-account assets under management, and the company reported no delinquencies or impairments. Its $1.6 billion hyperscaler portfolio was entirely investment grade, while more than 95% of the fixed-income portion of its $2.5 billion data-center exposure was investment grade.

Commercial mortgage loans remained a potential area of portfolio sensitivity. The portfolio declined 26% from year-end 2023 to $38.3 billion, while office exposure fell 28% to $14.2 billion. The overall portfolio had an average loan-to-value ratio of 70% and debt-service coverage of 2.1 times. Office loans carried a higher average loan-to-value ratio of 85%, although their average debt-service coverage ratio was 2.0 times. MetLife noted that future results remain subject to the assumptions, market conditions and other risks described in its regulatory filings.