MetLife, Inc. (MET) Earnings Call Transcript & Summary

Hello, and thank you for joining as I discuss MetLife's results for the first quarter of 2022. It was a strong quarter led by variable investment income. While we continue to experience some headwinds from COVID-19, we maintain momentum with solid growth and persistency across many of our businesses. First quarter net income was $606 million compared to $290 million in the first quarter of 2021. Adjusted earnings were $1.7 billion compared to adjusted earnings of $2 billion a year ago. The decrease was a function of even stronger private equity returns in the prior year period. On a per share basis, adjusted earnings were $2.08 compared to $2.20 a year ago. Now let's turn to our business segments. Starting with the U.S. business. Group Benefits adjusted earnings were $112 million, up 20%, primarily driven by a decline in COVID-19 life insurance claims and volume growth. The business also continued to see strong top line momentum, with growth across most products, including voluntary benefits. Retirement and Income Solutions adjusted earnings were $581 million, down 16%, largely driven by lower variable investment income compared to an outsized contribution a year ago. Volume growth provided a partial offset. In Asia, adjusted earnings were down 7% on a reported basis and down 4% on a constant currency basis. The primary drivers were lower recurring interest margins and less favorable equity markets. Volume growth provided a partial offset. In Latin America, adjusted earnings were $142 million, up significantly on both a reported and a constant currency basis as COVID-19-related claims subsided. Strong sales and persistency across the region contributed to top line growth, with adjusted premiums, fees and other revenues, up 22% on a constant currency basis. In EMEA, adjusted earnings were down 27% on a reported basis and 15% on a constant currency basis, driven by the exclusion of divested businesses in the current year period and higher expenses, lower COVID-19-related impacts and volume growth provided partial offsets. And finally, in MetLife Holdings adjusted earnings were down 39%. The primary drivers were lower variable investment income compared to an outsized contribution a year ago and less favorable underwriting. Further details regarding the performance of our business segments can be found in our earnings release dated May 4. Here are some key enterprise metrics. MetLife's adjusted return on equity was 14.7% and book value per common share was $57.12. Turning to cash and capital management. Cash and liquid assets at our holding companies was $4.2 billion at March 31, above our target cash buffer of $3 billion to $4 billion. In the first quarter, we bought back more than $900 million of our common shares and paid approximately $400 million in common stock dividends. In addition, our Board of Directors recently declared a second quarter common stock dividend of $0.50 per share, an increase of 4.2% from the first quarter dividend and approved a new share repurchase authorization of $3 billion, reflecting the ongoing confidence in our business. In an environment rife with uncertainty, MetLife remains resilient. Our financial results in the quarter were strong. Our underlying performance is demonstrating a healthy momentum. Our cash and capital position is solid, and we remain committed to consistent execution. Thank you for watching.