MetLife's Q1 2025: Key Contradictions on RIS Spreads, PRT Market Volatility, and World Cup Participation

RIS spreads and market conditions, PRT market impact and volatility, RIS spread stabilization expectations, issues with dental repricing and persistency, and attendance at 2025 World Cup are the key contradictions discussed in MetLife's latest 2025Q1 earnings call.



Strong Financial Performance and Earnings Growth:
- MetLife reported adjusted earnings of $1.3 billion or $1.96 per share in Q1 2025, up 7% from the previous year.
- The growth was driven by favorable life underwriting, favorable mortality rates, and strong volume growth across various business segments.

Group Benefits Segment Performance:
- The Group Benefits segment reported adjusted earnings of $367 million, up 29% from the prior year.
- This was primarily due to favorable life underwriting margins, resulting from lower mortality rates, especially in the working-age population.

RIS Segment and Pension Risk Transfers:
- RIS adjusted earnings totaled $401 million, with a notable increase of 1.8 billion in new inflows from pension risk transfers (PRTs).
- The growth in PRTs underscores the strong demand for MetLife's liability management solutions.

Asia Sales Growth:
- Adjusted earnings in Asia were $374 million, down 12% year-over-year on a constant currency basis.
- Despite this, sales were up 10% on a constant currency basis, driven by strong volume growth in Korea and China, though Japan sales were pressured by foreign currency impacts.