MetLife's Q4 2024: Contradictions Uncovered in Pricing Strategies, RIS Spreads, and Long-Term Care Management

These are the key contradictions discussed in MetLife's latest 2024Q4 earnings call, specifically including: Pricing Strategy and Expectations in Group Benefits, Impact of Interest Rates on RIS Spreads, RIS Spreads Expectations, and Long-Term Care Risk Transfer:



Strong Financial Performance Under Next Horizon:
- MetLife reported adjusted earnings of $1.5 billion for Q4 2024, up 14% year-on-year, excluding notable items.
- This growth was supported by improved private equity fund performance and momentum across most of its businesses.

Group Benefits and Retirement Income Solutions:
- Group benefits generated adjusted earnings of $1.7 billion in 2024, with full-year sales up 8%.
- The retirement and income solutions segment saw liability exposures grow by 3.4%, driven by strong contributions from structured settlements and pension risk transfer.

International Business Growth:
- Asia's adjusted earnings increased by 21% in 2024, with general account AUM growing 5% on a constant currency basis.
- The growth in Asia was attributed to a rebound in variable investment income and favorable underwriting margins.

Capital Management and Shareholder Returns:
- MetLife returned approximately $4.7 billion to shareholders in 2024 through stock repurchases and dividends.
- The company maintained a strong capital position, repurchasing nearly $400 million of stock in Q4 and $470 million in January 2025.

New Frontier Strategy and Financial Commitments:
- MetLife announced new financial commitments for the New Frontier strategy, including achieving double-digit adjusted EPS growth and increasing its adjusted ROE target range to 15% to 17%.
- The strategy focuses on extending leadership in group benefits, capitalizing on the retirement platform, and expanding in high-growth international markets.