MetLife's Q2 2025: Unpacking Key Contradictions in Claims Performance and Pricing Strategies

Disability claims performance, RIS spreads and stabilization, non-medical health ratio expectations, accident, hospital, and critical illness claims, and group benefits pricing and margins are the key contradictions discussed in MetLife's latest 2025Q2 earnings call.



Financial Performance and Economic Environment:
- MetLife reported adjusted earnings of $1.4 billion or $2.02 per share for Q2 2025, with a quarterly adjusted return on equity of 14.6%.
- The economic environment resulted in less favorable underwriting and investment margins, affecting earnings.

Sales Growth in Asia:
- Sales in Asia rose by 9% on a constant currency basis, with significant growth in Japan and Korea, up 29% and 36% respectively.
- This growth was driven by successful new product launches and enhancements, as well as favorable exchange rate dynamics.

Challenges in Group Benefits:
- Group Benefits adjusted earnings were $400 million, down from a record quarter, due to less favorable life and non-medical health underwriting.
- The underwriting performance was impacted by elevated claims experience in specific non-medical health products, which is expected to normalize in the future quarters.

Variable Investment Income and Strategic Initiatives:
- Variable investment income was lower than expected, with private equity returns generating a positive 0.9% return, despite a negative 4.6% return for the S&P 500.
- Strategic initiatives, including the acquisition of PineBridge Investments and the launch of Chariot Re, are expected to enhance growth and reduce enterprise risk.