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MetLife Reports 23% Decline in Net Income for Q2 2025
ByAinvest
Thursday, Aug 7, 2025 4:04 am ET1min read
MetLife reported a 23% decline in net income to $698 million in Q2 2025, with adjusted earnings per share falling 11% to $2.02. The company faced challenges in underwriting and investment margins. MetLife returned approximately $900 million to shareholders through share repurchases and dividends in the quarter.
MetLife, Inc. (NYSE: MET) released its second-quarter 2025 financial results, revealing a mixed performance marked by declines in net income and adjusted earnings per share (EPS). The company's net income fell 23% to $698 million, while adjusted EPS dropped 11% to $2.02. Despite these setbacks, MetLife managed to return approximately $900 million to shareholders through share repurchases and dividends.The quarter was characterized by challenges in underwriting and investment margins. MetLife's Group Benefits segment saw adjusted earnings drop 25% to $400 million, primarily due to less favorable underwriting outcomes. The Retirement and Income Solutions segment also faced a 10% decline in adjusted earnings to $368 million, attributed to lower recurring interest margins. The company's international operations were mixed, with the Asia segment posting a 22% decline in adjusted earnings to $350 million, while Latin America and EMEA regions saw gains of 3% and 30% respectively.
Investment metrics provided additional context. Net investment income (GAAP) increased 9% to $5.7 billion, but adjusted net investment income was up just 1%. Variable investment income, which includes volatile sources like private equity and real estate, was especially weak, declining 35% from the prior year.
Despite these challenges, MetLife's capital position remained strong. Book value per share and adjusted book value per share both increased, rising 7% and 6% respectively. The company also made progress on strategic initiatives, including an agreement with Talcott Financial Group to reinsure variable annuity reserves and continued advancement on the $100 billion PineBridge asset management deal.
Looking ahead, investors will be closely watching MetLife's ability to navigate these challenges and execute its strategic initiatives. The company's "New Frontier" strategy, focusing on international growth, risk transfer transactions, and asset management development, will be key areas of interest.
References:
[1] https://www.nasdaq.com/articles/metlife-met-q2-eps-falls-11
[2] https://www.investing.com/news/company-news/metlife-q2-2025-slides-adjusted-earnings-hit-202-per-share-despite-investment-headwinds-93CH-4175109
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