MetLife Q2 EPS Falls 11%, Misses Estimates on Weaker Underwriting and Lower Investment Margins.

MetLife reported Q2 adjusted EPS of $2.02, a 11% decline YoY and 6% miss on estimates. Revenue fell to $17.34 billion, below analyst forecasts. Net income dropped to $698 million, down from $912 million in Q2 2024. Book value per share increased to $35.79, while adjusted book value per share rose to $56.23. The company's mixed quarter was marked by weakness in core profitability and lower investment margins.

MetLife (NYSE:MET), a leading global insurance and financial services provider, reported its Q2 2025 earnings on August 6, 2025. The company's adjusted earnings per share (EPS) of $2.02 fell 11% year-over-year (YoY) and missed analysts' estimates by 6% [1]. Revenue declined to $17.34 billion, below the $18.53 billion forecast by analysts [2]. Net income dropped to $698 million, down from $912 million in Q2 2024 [2].

Despite the mixed results, MetLife's book value per share (BVPS) increased to $35.79, while adjusted BVPS rose to $56.23 [2]. The company's international operations showed mixed results, with adjusted earnings in the Asia segment declining 22% due to margin pressures, while Latin America and EMEA regions saw gains of 3% and 30%, respectively [2].

Key Takeaways:
1. Revenue and EPS Misses: MetLife's revenue fell 7.2% YoY to $17.34 billion, missing analysts' estimates by $1.3 billion [1]. Adjusted EPS of $2.02 was 11% lower than Q2 2024 and 6% below estimates [2].
2. Net Income Decline: Net income dropped 23% YoY to $698 million, primarily due to weaker underwriting and lower investment margins [2].
3. Book Value Per Share: Despite the earnings decline, MetLife's BVPS increased to $35.79, and adjusted BVPS rose to $56.23, indicating the company's capital management efforts [2].
4. Segment Performance: Group Benefits and Retirement and Income Solutions segments saw earnings declines, while International operations showed mixed results [2].

MetLife's latest results highlight the challenges faced by the insurance sector, including weaker underwriting and lower investment margins. However, the company's capital management efforts and international growth provide some optimism. Investors should closely monitor MetLife's ability to adapt to changing market conditions and regulatory environments.

References:
[1] https://finance.yahoo.com/news/metlife-nyse-met-misses-q2-230541876.html
[2] https://www.nasdaq.com/articles/metlife-met-q2-eps-falls-11