Street View: MetLife's fundamentals hold firm despite market volatility

** MetLife MET.N posted a 16% fall in second-quarter adjusted profit on Wednesday, as weaker premiums offset gains from higher investment income

** Shares of insurer down ~4% to $73 in premarket trading

STRONG POLICIES, SHAKY PORTFOLIOS

** J.P.Morgan ("overweight", PT: $95) expects several of the factors that weighed on MetLife's recent earnings, particularly weaker investment income and compressed margins, to improve in the coming periods

** Morgan Stanley ("overweight", PT: $98) believes the recent headwinds in MetLife's Group Benefits segment—driven by elevated large claims and higher utilization in voluntary products—are likely temporary, with sequential improvement expected in the second half

** Evercore ISI ("outperform", PT: $110) says it's somewhat encouraging to hear that dental margins seem to be improving after a year of some adversity

** "We shall see if the unusual items in 2Q are one-timers or persist into 2H25, but the company currently views them as more likely one-timers" - Evercore ISI

** Morningstar (fair value: $73) says MetLife's variable investment income is tied to alternative asset returns such as private equity and real estate, which can be highly volatile

** A significant correction in capital markets could materially impact the firm's overall profitability, adds Morningstar