MetLife’s 2.8% Drop and 286th Volume Rank as Q2 Earnings Miss and Asia Woes Overshadow Latin America Gains

MetLife (MET) fell 2.80% on August 7, 2025, with a trading volume of $0.42 billion, ranking 286th in the day's market activity. The decline followed its Q2 earnings report, which revealed adjusted operating earnings of $2.02 per share, missing estimates by 7.8% and declining 11% year-over-year. Revenue dropped 4.1% to $17.9 billion, driven by weak underwriting results, reduced investment returns, and performance challenges in Asia and group benefits.

The underperformance was driven by weak results in Asia, lower underwriting margins, and reduced investment returns, particularly in the Group Benefits, RIS, and MetLife Holdings segments. However, gains in Latin America from favorable Chilean encaje returns and strong EMEA sales partially offset the losses. Total expenses fell 1.6% YoY, and adjusted PFOs grew 5% to $12.4 billion. MetLife’s cash reserves increased to $22.2 billion, while total assets rose to $702.5 billion.

The company repurchased $510 million in shares during Q2 and paid a $382 million dividend. Management maintains a 2025 outlook for variable investment income of around $1.7 billion and expects adjusted PFOs in the Group Benefits segment to grow 4-7% annually. However, the MetLife Holdings segment is projected to decline 4-6% per year.

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