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What changed in MetLife's 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of MetLife's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+620 added−584 removedSource: 10-K (2026-02-19) vs 10-K (2025-02-21)

Top changes in MetLife's 2025 10-K

620 paragraphs added · 584 removed · 489 edited across 6 sections

Item 1. Business

Business — how the company describes what it does

125 edited+54 added−41 removed125 unchanged
Biggest changeThe Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”) increased the federal role in regulating businesses such as ours, including in the following ways: • The Financial Stability Oversight Council (“FSOC”) may designate certain financial companies that pose a threat to U.S. financial stability as non-bank systemically important financial institutions (“non-bank SIFI”) subject to supervision by the Board of Governors of the Federal Reserve System and the Federal Reserve Bank of New York. • The Federal Insurance Office (“FIO”) within the Department of the Treasury may participate in the negotiations of international insurance agreements with foreign regulators for the U.S., collect information about the insurance industry, and recommend prudential standards. • If an entity such as MetLife, Inc. or another non-insurance financial institution faces insolvency or threat of default significantly impacting U.S. financial stability, the Federal Deposit Insurance Corporation (“FDIC”) could liquidate it as a receiver.
Biggest changeThe Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”) increased the federal role in regulating businesses such as ours, including in the following ways: • The Financial Stability Oversight Council (“FSOC”) may designate certain financial companies that pose a threat to U.S. financial stability as non-bank systemically important financial institutions (“non-bank SIFIs”) subject to supervision by the Board of Governors of the Federal Reserve System and the Federal Reserve Bank of New York. • The Federal Insurance Office (“FIO”) within the Department of the U.S.
Accident & Health Insurance Full range of accident & health products, including hospitalization, cancer, critical illness, disability, income protection and personal accident coverage. Retirement and Savings Fixed and variable annuities, as well as regular savings products. Latin America Our largest operations are in Mexico and Chile.
Accident & Health Insurance Full range of accident & health products, including hospitalization, cancer, critical illness, disability, income protection and personal accident coverage. Retirement and Savings Fixed and variable annuities, as well as regular savings products. Latin America Our largest operations in Latin America are in Mexico and Chile.
Generally, we are not obligated to accept any risk or group of risks from, or to issue a policy or group of policies to, any employer or intermediary. We review requests for coverage on their merits and issue policies only after we have examined and approved the particular risk or group under our underwriting guidelines.
Generally, we are not obligated to accept any risk or group of risks from, or to issue a policy or group of policies to, any employer or intermediary. We review requests for coverage on their merits and issue policies only after we have examined and approved the particular risk or group of risks under our underwriting guidelines.
The revised process could have the effect of simplifying and shortening FSOC’s procedures for designating certain financial companies as non-bank SIFIs, thereby subjecting such companies to additional supervision, examination, and regulation.
The revised process could have the effect of simplifying and shortening the FSOC’s procedures for designating certain financial companies as non-bank SIFIs, thereby subjecting such companies to additional supervision, examination, and regulation.
The EU Corporate Sustainability Reporting Directive (“CSRD”) requires in-scope companies to report on (i) how sustainability issues might create financial risks for the company; and (ii) the company’s impacts on people and the environment. CSRD applies on a staggered basis to companies, over a multi-year period, with the first reports due in 2025 in respect of the 2024 financial year.
The EU Corporate Sustainability Reporting Directive (“CSRD”) requires in-scope companies to report on (i) how sustainability issues might create financial risks for a company; and (ii) a company’s impacts on people and the environment. CSRD applies on a staggered basis to companies, over a multi-year period, with the first reports due in 2025 in respect of the 2024 financial year.
In some non-U.S. jurisdictions, some of our insurance products are considered “securities” under local law, and we may be subject to local securities regulations and oversight by local securities regulators. Some of our subsidiaries and their activities in offering and selling variable insurance products are subject to extensive regulation under the federal securities laws and regulations administered by the SEC.
In some non-U.S. jurisdictions, some of our insurance products are considered “securities” under local law, and we may be subject to local securities regulations and oversight by local securities regulators. Some of our subsidiaries and their activities in offering and selling Variable Products are subject to extensive regulation under the federal securities laws and regulations administered by the SEC.
Business Index to Business Page Business Overview & Strategy 5 Segments and Corporate & Other 6 Policyholder Liabilities 10 Underwriting and Pricing 11 Reinsurance Activity 12 Regulation 12 Competition 23 Human Capital Resources 23 Information About Our Executive Officers 25 Trademarks 26 Available Information 26 4 Table of Contents Business Overview & Strategy As used in this Form 10-K, “MetLife,” the “Company,” “we,” “our” and “us” refer to MetLife, Inc., a Delaware corporation incorporated in 1999, its subsidiaries and affiliates.
Business Index to Business Page Business Overview & Strategy 5 Segments and Corporate & Other 6 Policyholder Liabilities 10 Underwriting and Pricing 11 Reinsurance Activity 12 Regulation 12 Competition 23 Human Capital Resources 24 Information About Our Executive Officers 25 Trademarks 26 Available Information 26 4 Table of Contents Business Overview & Strategy As used in this Form 10-K, “MetLife,” the “Company,” “we,” “our” and “us” refer to MetLife, Inc., a Delaware corporation incorporated in 1999, its subsidiaries and affiliates.
The extent of our retained risks depends on our risk evaluation, subject, in certain circumstances, to maximum retention limits based on our risk appetite. We also cede first dollar mortality risk under certain contracts. We reinsure both mortality and other risks. We obtain reinsurance for capital requirement purposes and when its economic impact makes it appropriate to do so.
The extent of our retained risks depends on our risk evaluation, subject, in certain circumstances, to maximum retention limits based on our risk appetite. We also cede first dollar mortality risk under certain contracts. We reinsure both mortality and other risks. We obtain reinsurance for capital requirement purposes and when its expected economic impact makes it appropriate to do so.
Investments State insurance laws and regulations limit how much our U.S. insurance subsidiaries can invest in certain asset categories, such as below investment grade fixed income securities, real estate equity, other equity investments, and derivatives, and require diversification of investment portfolios. Investments exceeding regulatory limitations are not admitted for purposes of measuring surplus.
Investments State insurance laws and regulations limit how much our U.S. insurance subsidiaries can invest in certain asset categories, such as below investment grade fixed income securities, real estate and REJVs, other equity investments, and derivatives, and require diversification of investment portfolios. Investments exceeding regulatory limitations are not admitted for purposes of measuring surplus.
We are also one of the largest institutional investors in the U.S. with a general account portfolio invested primarily in fixed income securities (corporate, structured products, municipals, and government and agency) and mortgage loans, as well as real estate, real estate joint ventures, other limited partnerships and equity securities.
We are also one of the largest institutional investors in the U.S. with a general account portfolio invested primarily in fixed income securities (corporate, structured products, municipals, and government and agency) and mortgage loans, as well as real estate, real estate joint ventures (“REJVs”), other limited partnerships and equity securities.
Generally, a wrap contract means that participants will not experience negative returns. • Private floating rate funding agreements are generally privately placed, unregistered investment contracts issued as general account obligations with interest credited based on a specified rate or agreed upon short-term benchmark rate.
Generally, a wrap contract means that participants will not experience negative returns. • Private floating rate funding agreements are generally privately placed, unregistered investment contracts issued as general account obligations with interest credited based on a specified rate or an agreed upon short-term benchmark rate.
The new disclosure standard is consistent with the international Task Force on Climate-Related Financial Disclosures’ framework for reporting climate-related financial information. Pursuant to its authority under Dodd-Frank, the FIO is also assessing how the insurance sector may mitigate climate risks and help achieve national climate-related goals.
The disclosure standard is consistent with the international Task Force on Climate-Related Financial Disclosures’ framework for reporting climate-related financial information. Pursuant to its authority under Dodd-Frank, the FIO is also assessing how the insurance sector may mitigate climate risks and help achieve national climate-related goals.
See “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources — MetLife, Inc. — Liquidity and Capital Sources — Dividends from Subsidiaries.” See also “Dividend Restrictions” in Note 19 of the Notes to the Consolidated Financial Statements for further information regarding such limitations.
See “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources — MetLife, Inc. — Liquidity and Capital Sources and Uses — Dividends from Subsidiaries.” See also “Dividend Restrictions” in Note 19 of the Notes to the Consolidated Financial Statements for further information regarding such limitations.
Non-participating contracts have economic features similar to our general account product, but offer the added protection of an insulated separate account. Under accounting principles generally accepted in the United States of America (“GAAP”), these annuity contracts are treated as general account products.
Non-participating contracts have economic features similar to our general account products, but offer the added protection of an insulated separate account. Under accounting principles generally accepted in the United States of America (“GAAP”), these annuity contracts are treated as general account products.
Except for this consent order and other items as described in Note 24 of the Notes to the Consolidated Financial Statements, during the years ended December 31, 2024, 2023 and 2022, MetLife did not receive any material adverse findings resulting from state insurance department examinations of its insurance subsidiaries. 13 Table of Contents Organizations like the NAIC encourage insurance supervisors to establish Supervisory Colleges to facilitate cooperation among insurance supervisors to enhance their understanding of risk profiles of U.S.-based insurance groups with international operations.
Except for this consent order and other items as described in Note 24 of the Notes to the Consolidated Financial Statements, during the years ended December 31, 2025, 2024 and 2023, MetLife did not receive any material adverse findings resulting from state insurance department examinations of its insurance subsidiaries. 13 Table of Contents Organizations like the NAIC encourage insurance supervisors to establish Supervisory Colleges to facilitate cooperation among insurance supervisors to enhance their understanding of risk profiles of U.S.-based insurance groups with international operations.
Similarly, the IRS could determine that our disposal of the fair value option of Brighthouse Financial, Inc.’s common stock in the debt-for-equity exchange should be treated as a taxable transaction to MetLife, Inc.
Similarly, the IRS could determine that our disposal of the fair value option (“FVO”) of Brighthouse Financial, Inc.’s common stock in the debt-for-equity exchange should be treated as a taxable transaction to MetLife, Inc.
(together with its subsidiaries, “Brighthouse”) common stock in 2017, we received a private letter ruling from the IRS regarding certain significant issues under the Code, as well as an opinion from tax counsel that the distribution qualified for non-recognition of gain or loss to us and our shareholders pursuant to Sections 355 and 361 of the Code, except to the extent of cash received in lieu of fractional shares, each subject to the accuracy of and compliance with certain representations, assumptions and covenants therein.
(together with its subsidiaries, “Brighthouse”) common stock in 2017, we received a private letter ruling from the IRS regarding certain significant issues under the Code, as well as an opinion from tax counsel that the distribution qualified for non-recognition of gain or loss to us and our stockholders pursuant to Sections 355 and 361 of the Code, except to the extent of cash received in lieu of fractional shares, each subject to the accuracy of and compliance with certain representations, assumptions and covenants therein.
Privacy and Data Protection In the U.S., we are subject to state laws imposing obligations on the processing of personal information and providing consumers specific rights over such information.
Privacy and Data Protection In the U.S., we are subject to state laws imposing obligations on the processing and sharing of personal information and providing consumers specific rights over such information.
If the IRS ultimately determines that the distribution is taxable, the distribution could be treated as a taxable dividend or capital gain to MetLife shareholders who received shares of Brighthouse Financial, Inc. common stock in the distribution for U.S. federal income tax purposes, and such shareholders could incur significant U.S. federal income tax liabilities if the 2017 tax year is still open with respect to such shareholders under the applicable statute of limitation.
If the IRS ultimately determines that the distribution is taxable, the distribution could be treated as a taxable dividend or capital gain to MetLife stockholders who received shares of Brighthouse Financial, Inc. common stock in the distribution for U.S. federal income tax purposes, and such stockholders could incur significant U.S. federal income tax liabilities if the 2017 tax year is still open with respect to such stockholders under the applicable statute of limitation.
The commercial paper is issued in U.S. dollars or foreign currencies, receives the same short-term credit rating as MLIC and is marketed by major investment banks’ broker-dealer operations. • Funding agreements are issued by certain of our insurance subsidiaries to the Federal Home Loan Bank of New York (“FHLBNY”) and to a subsidiary of the Federal Agricultural Mortgage Corporation.
The commercial paper is issued in U.S. dollars or foreign currencies, receives the same short-term credit rating as MLIC or MTL, as applicable, and is marketed by major investment banks’ broker-dealer operations. • Funding agreements are issued by certain of our insurance subsidiaries to the Federal Home Loan Bank of New York (“FHLBNY”) and to a subsidiary of the Federal Agricultural Mortgage Corporation.
Also in 2023, California adopted a law establishing disclosure requirements for entities operating within California that market, sell, purchase, or use voluntary carbon offsets, as well as those that make claims of achieving net zero emissions or carbon neutrality that operate within and make such claims within the state. MetLife is in compliance with such requirements.
Also in 2023, California adopted a law establishing disclosure requirements for entities operating within California that market, sell, purchase, or use voluntary carbon offsets, as well as those that make claims of achieving net zero emissions or carbon neutrality that operate within and make such claims within the state. MetLife is in compliance with applicable carbon offset disclosure requirements.
Annuities Pension Risk Transfers General account and separate account annuities are offered in connection with defined benefit pension plans which include single premium buyouts allowing for full or partial transfers of pension liabilities. • General account annuities include non-participating group contract benefits purchased for retired or active employees covered under terminating or ongoing pension plans. • Separate account annuities include both participating and non-participating group contract benefits.
Annuities Pension Risk Transfers General account and separate account annuities are offered in connection with defined benefit pension plans which include single premium buyouts and buy-ins allowing for full or partial transfers of pension liabilities. • General account annuities include non-participating group contract benefits purchased for retired or active employees covered under terminating or ongoing pension plans. • Separate account annuities include both participating and non-participating group contract benefits.
Dividends exceeding prescribed limits and transactions above a specified size between an insurer and its affiliates require domiciliary insurance regulator approval.
Dividends exceeding prescribed limits and certain transactions above a specified size between an insurer and its affiliates require domiciliary insurance regulator approval.
Our Group Benefits segment quarterly claims experience may vary, as seasonal illnesses effect mortality and morbidity, and due to utilization rate fluctuation in our non-medical health businesses. Annual benefit renewal implementation, enrollment, and marketing costs normally elevate expenses for the Group Benefits segment in the fourth quarter.
Our Group Benefits segment quarterly claims experience may vary, as seasonal illnesses affect mortality and morbidity, and due to utilization rate fluctuation in our non-medical health businesses. Annual benefit renewal implementation, enrollment, and marketing costs normally elevate expenses for the Group Benefits segment in the fourth quarter.
However, the NYDFS issued separate guidance for New York domestic insurers, which contains more detailed expectations, such as (i) ensuring the board of directors understands relevant climate risks; (ii) performing regular reviews of the insurer’s procedures that are designed to manage climate risks; (iii) using scenario analysis to inform the insurer’s business strategies and risk assessment; and (iv) incorporating material climate risks into its financial risk management (e.g., ERM and ORSA).
However, the NYDFS issued separate guidance for New York domestic insurers, which contains more detailed expectations, such as (i) ensuring the board of directors understands relevant climate risks; (ii) performing regular reviews of the insurer’s procedures that are designed to manage climate risks; (iii) using scenario analysis to inform the insurer’s business strategies and risk assessment; and (iv) incorporating material climate risks into its financial risk management (e.g., ERM and Own Risk and Solvency Assessment).
The North American Securities Administrators Association has proposed revisions to its broker-dealer conduct model rule intended to apply Regulation Best Interest at the state level and prohibiting the use of the terms “advisor” or “adviser” without being registered as an investment adviser.
The North American Securities Administrators Association has adopted revisions to its broker-dealer conduct model rule intended to apply Regulation Best Interest at the state level and prohibiting the use of the terms “advisor” or “adviser” without being registered as an investment adviser.
(May 2019 – August 2023) • Executive Vice President and Chief Risk Officer of MetLife, Inc. (September 2017 – April 2019) Shurawl Sibblies 53 • Executive Vice President and Chief Human Resources Officer of MetLife, Inc. (August 2024 – present) • Executive Vice President, Colleague Strategic Partner, American Express Company (January 2020 – June 2024) Monica M.
(May 2019 – August 2023) • Executive Vice President and Chief Risk Officer of MetLife, Inc. (September 2017 – April 2019) Shurawl Sibblies 54 • Executive Vice President and Chief Human Resources Officer of MetLife, Inc. (August 2024 – present) • Executive Vice President, Colleague Strategic Partner, American Express Company (January 2020 – June 2024) Monica M.
Curtis 42 • Executive Vice President, Chief Legal Officer, and Head of Government Relations of MetLife, Inc. (January 2025 – present) • Executive Vice President and Chief Legal Officer of MetLife, Inc. (June 2023 – December 2024) • Senior Vice President and Chief Counsel – Litigation, Special Investigations Unit, and M&A of Metropolitan Life Insurance Company and MetLife Group, Inc.
Curtis 43 • Executive Vice President, Chief Legal Officer, and Head of Government Relations of MetLife, Inc. (January 2025 – present) • Executive Vice President and Chief Legal Officer of MetLife, Inc. (June 2023 – December 2024) • Senior Vice President and Chief Counsel – Litigation, Special Investigations Unit, and M&A of Metropolitan Life Insurance Company and MetLife Group, Inc.
Furthermore, we must comply with laws and regulations governing the security and integrity of our information systems, many of which require comprehensive information security programs, and mandatory notifications to affected individuals and regulators in the event of security breaches and other cyber incidents.
Furthermore, we must comply with laws and regulations governing the security and integrity of our information systems, many of which require comprehensive information security programs, and mandatory notifications to affected individuals and regulators in the event of security breaches and other cybersecurity incidents.
MLIC and MetLife Group, Inc. are affiliates of MetLife, Inc.: Name Age Position with MetLife and Business Experience Michel A. Khalaf 61 • President, Chief Executive Officer and Director of MetLife, Inc. (May 2019 – present) • President, U.S. Business, of MetLife, Inc. (July 2017 – April 2019) John D.
MLIC and MetLife Group, Inc. are affiliates of MetLife, Inc.: Name Age Position with MetLife and Business Experience Michel A. Khalaf 62 • President, Chief Executive Officer and Director of MetLife, Inc. (May 2019 – present) • President, U.S. Business, of MetLife, Inc. (July 2017 – April 2019) John D.
For developments that could affect our ratio of free cash flow to adjusted earnings results, and thus our surplus and capital, see “Risk Factors.” Dividend Restrictions State insurance statutes typically restrict the dividends or other distributions an insurance company subsidiary may pay to its parent company and limit transactions between an insurer and its affiliates.
For developments that could affect our ratio of free cash flow to adjusted earnings results, and thus our surplus and capital, see “Risk Factors.” Restrictions on Dividends and Certain Transactions State insurance statutes typically restrict the dividends or other distributions an insurance company subsidiary may pay to its parent company and limit transactions between an insurer and its affiliates.
Centralized clearing also exposes us to the risk of a default by a clearing member or clearinghouse with respect to our cleared derivative transactions. 20 Table of Contents Dodd-Frank also expanded the definition of “swap” and mandated the SEC and U.S. Commodity Futures Trading Commission (“CFTC”) to study whether “stable value contracts” should be treated as swaps.
Centralized clearing also exposes us to the risk of a default by a clearing member or clearinghouse with respect to our cleared derivative transactions. Dodd-Frank also expanded the definition of “swap” and mandated the SEC and U.S. Commodity Futures Trading Commission (“CFTC”) to study whether “stable value contracts” should be treated as swaps.
We believe that our trusted global brand, diversified and resilient business, and position as a leader in attractive markets are the powers of our business. Over the next five years we will execute on our New Frontier strategy, which was designed to accelerate growth across our global platform while delivering attractive returns and all-weather performance.
We believe that our trusted global brand, diversified and resilient business, and position as a leader in attractive markets are the powers of our business. Over the next four years we will continue to execute on our New Frontier strategy, which was designed to accelerate growth across our global platform while delivering attractive returns and all-weather performance.
For more details on policyholder liabilities see “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Summary of Critical Accounting Estimates — Future Policy Benefit Liabilities.” MetLife, Inc.’s insurance subsidiaries, including affiliated reinsurers, establish statutory reserves under methods prescribed by the insurance laws of their respective domiciliary jurisdiction.
For more details on policyholder liabilities, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Summary of Critical Accounting Estimates — Future Policy Benefit Liabilities.” 10 Table of Contents MetLife, Inc.’s insurance subsidiaries, including affiliated reinsurers, establish statutory reserves under methods prescribed by the insurance laws of their respective domiciliary jurisdiction.
(July 2016 – April 2018) Marlene Debel 58 • Executive Vice President and Chief Risk Officer of MetLife, Inc. and Head of MetLife Insurance Investments (September 2023 – present) • Executive Vice President and Chief Risk Officer of MetLife, Inc. (May 2019 – August 2023) • Executive Vice President and Head of Retirement & Income Solutions of MetLife, Inc.
(July 2016 – April 2018) Marlene Debel 59 • Executive Vice President and Chief Risk Officer of MetLife, Inc. and Head of MetLife Insurance Investments (September 2023 – present) • Executive Vice President and Chief Risk Officer of MetLife, Inc. (May 2019 – August 2023) • Executive Vice President and Head of Retirement & Income Solutions of MetLife, Inc.
(November 2019 – present) • Head of Global Operations, Bank of America, a financial services company (February 2016 – November 2019) Ramy Tadros 49 • Regional President, U.S. Business, of MetLife, Inc. and Head of MetLife Holdings (September 2023 – present) • President, U.S. Business, of MetLife, Inc.
(November 2019 – present) • Head of Global Operations, Bank of America, a financial services company (February 2016 – November 2019) Ramy Tadros 50 • Regional President, U.S. Business, of MetLife, Inc. and Head of MetLife Holdings (September 2023 – present) • President, U.S. Business, of MetLife, Inc.
The notes are underwritten and marketed by major investment banks’ broker-dealer operations and are sold to institutional investors. • Funding agreement-backed commercial paper is issued by a special-purpose limited liability company which deposits the proceeds under a master funding agreement issued to it by Metropolitan Life Insurance Company (“MLIC”).
The notes are underwritten and marketed by major investment banks’ broker-dealer operations and are sold to institutional investors. • Funding agreement-backed commercial paper is issued by a special-purpose limited liability company which deposits the proceeds under a master funding agreement issued to it by Metropolitan Life Insurance Company (“MLIC”) or Metropolitan Tower Life Insurance Company (“MTL”).
Major Products Stable Value Products • General account guaranteed interest contracts (“ GIC s”) are designed to provide stable value investment options within tax-qualified defined contribution plans by offering a fixed maturity investment with a guarantee of liquidity at contract value for participant transactions. • Separate account GIC s are available to defined contribution plan sponsors by offering market value returns on separate account investments with a general account guarantee that plan participants will always be able to transact in their accounts at contract value. • Synthetic GICs or “wraps” are contracts available only to the sponsor of a participant-directed defined contribution plan.
Major Products Stable Value Products • General account guaranteed interest contracts (“GICs”) are designed to provide stable value investment options within tax-qualified defined contribution plans by offering a fixed maturity investment with a guarantee of liquidity at contract value for participant transactions. • Separate account GICs are available to defined contribution plan sponsors by offering market value returns on separate account investments with a general account guarantee that plan participants will always be able to transact in their accounts at contract value. • Synthetic GICs or “wraps” are contracts available only to the sponsor of a participant-directed defined contribution plan.
(March 2018 – May 2019) • Executive Vice President and Chief Financial Officer, U.S. Business, of MetLife, Inc. (July 2016 – March 2018) Bill Pappas 55 • Executive Vice President, Global Technology and Operations, of MetLife, Inc.
(March 2018 – May 2019) • Executive Vice President and Chief Financial Officer, U.S. Business, of MetLife, Inc. (July 2016 – March 2018) Bill Pappas 56 • Executive Vice President, Global Technology and Operations, of MetLife, Inc.
We continually review our pricing guidelines in light of applicable regulations and to ensure that our policies remain competitive, support our marketing strategies and profitability goals, and otherwise remain appropriate. 11 Table of Contents Reinsurance Activity We enter into reinsurance agreements primarily as a purchaser of reinsurance for our various insurance products and also as a provider of reinsurance for some pension products and insurance products issued by third parties.
We continually review our pricing guidelines in light of applicable regulations and to ensure that our policies remain competitive, support our marketing strategies and profitability goals, and otherwise remain appropriate. 11 Table of Contents Reinsurance Activity We enter into reinsurance agreements both as a purchaser of reinsurance for our various insurance products and also as a provider of reinsurance for pension, annuity and insurance products issued by third parties.
These initiatives may not succeed in attracting and retaining productive agents. See “— Segments and Corporate & Other” for information on sales distribution. Numerous aspects of our business are heavily regulated. Legislative and other changes affecting the regulatory environment can affect our competitive position within the life insurance industry and within the broader financial services industry.
These initiatives may not succeed in attracting and retaining such talent. See “— Segments and Corporate & Other” for information on sales distribution. Numerous aspects of our business are heavily regulated. Legislative and other changes affecting the regulatory environment can affect our competitive position within the life insurance industry and the broader financial services industry.
In it, the qualified actuary states that the statutory reserves and related actuarial amounts recorded in support of specified policies and contracts, and the assets supporting such statutory reserves and related actuarial amounts, adequately provide for the anticipated cash flow required to meet contractual obligations and related expenses.
In this document, the qualified actuary states that the statutory reserves and related actuarial amounts recorded in support of specified policies and contracts, and the assets supporting such statutory reserves and related actuarial amounts, adequately provide for the anticipated cash flow required to meet contractual obligations and related expenses.
McCallion 51 • Executive Vice President and Chief Financial Officer of MetLife, Inc. and Head of MetLife Investment Management (September 2023 – present) • Executive Vice President and Chief Financial Officer of MetLife, Inc. (November 2019 – August 2023) • Executive Vice President and Chief Financial Officer and Treasurer of MetLife, Inc.
McCallion 52 • Executive Vice President and Chief Financial Officer of MetLife, Inc. and Head of MetLife Investment Management (September 2023 – present) • Executive Vice President and Chief Financial Officer of MetLife, Inc. (November 2019 – August 2023) • Executive Vice President and Chief Financial Officer and Treasurer of MetLife, Inc.
The NAIC’s interim statutory accounting guidance is effective until December 31, 2025 and permits an insurer with a company action level RBC ratio greater than 150% (or an authorized control level RBC ratio greater than 300%) to admit negative IMR up to 10% of its general account capital and surplus, subject to certain restrictions and reporting obligations.
The NAIC’s interim statutory accounting guidance, which is effective until December 31, 2026, permits an insurer with a company action level RBC ratio greater than 150% (or an authorized control level RBC ratio greater than 300%) to admit negative IMR for an amount up to 10% of its general account capital and surplus, subject to certain restrictions and reporting obligations.
Our Statement-Based Combined RBC Ratio was in excess of 360% and in excess of 380% at December 31, 2024 and 2023, respectively. By contrast, we calculate an “NAIC-Based Combined RBC Ratio” based on such subsidiaries’ statutory-based financial statements and NAIC capital and reserving standards.
Our Statement-Based Combined RBC Ratio was in excess of 350% and in excess of 360% at December 31, 2025 and 2024, respectively. By contrast, we calculate an “NAIC-Based Combined RBC Ratio” based on such subsidiaries’ statutory-based financial statements and NAIC capital and reserving standards.
We may increase reserves in order to submit this opinion without qualification. In addition, the NYDFS issues SCLs to New York-licensed insurance companies, including MLIC, that affect year-end asset adequacy testing.
We may increase reserves in order to submit this opinion without qualification. 15 Table of Contents In addition, the NYDFS issues SCLs to New York-licensed insurance companies, including MLIC, that affect year-end asset adequacy testing.
See “— Regulation.” Human Capital Resources At December 31, 2024, we had approximately 45,000 employees. 23 Table of Contents As a financial services company, meeting our business objectives requires that we rely significantly on our global workforce, leveraging a wide variety of professional, technical, management, business, and other skills and expertise, to create value for our stakeholders.
See “— Regulation.” Human Capital Resources At December 31, 2025, we had approximately 46,000 employees. As a financial services company, meeting our business objectives requires that we rely significantly on our global workforce, leveraging a wide variety of professional, technical, management, business, and other skills and expertise, to create value for our stakeholders.
This NAIC-Based Combined RBC Ratio was in excess of 380% and in excess of 400% at December 31, 2024 and 2023, respectively. NAIC developments related to the RBC framework are described below. • RBC Revisions.
This NAIC-Based Combined RBC Ratio was in excess of 370% and in excess of 380% at December 31, 2025 and 2024, respectively. NAIC developments related to the RBC framework are described below. • RBC Revisions.
Our direct marketing channel includes sponsors and telesales representatives selling mainly accident & health and individual life products directly to consumers. We also work with brokers and independent agents on sales of group and individual life, accident & health, group medical, dental and pension products, and worksite marketing.
Our direct marketing channel includes sponsors and digital sales, offering mainly accident & health and individual life products directly to consumers. We also work with brokers and independent agents on sales of group and individual life, accident & health, group medical, dental and pension products, and worksite marketing.
We periodically review all our underwriting to maintain high standards of quality and consistency. Our reinsurers generally have the right to audit our underwriting.
We continually review our underwriting to maintain high standards of quality and consistency. Our reinsurers generally have the right to audit our underwriting.
Furthermore, consumer protection laws, privacy, anti-money laundering, securities, commodities, broker-dealer and investment adviser regulations, environmental and unclaimed property laws and regulations, and the Employee Retirement Income Security Act of 1974 (“ERISA”) also apply to some of MetLife’s operations, products and services.
Furthermore, consumer protection laws, big data, artificial intelligence (“AI”), cybersecurity, privacy and data protection, anti-money laundering, securities, commodities, broker-dealer and investment adviser regulations, environmental and unclaimed property laws and regulations, and the Employee Retirement Income Security Act of 1974 (“ERISA”) also apply to some of MetLife’s operations, products and services.
Securities, Broker-Dealer and Investment Adviser Regulation U.S. federal and state securities laws and regulations apply to insurance products that meet the definition of a “security,” including variable annuity contracts and variable life insurance policies, and certain fixed interest rate or index-linked contracts with features that require them to be registered as securities or exempt from registration.
Securities, Broker-Dealer and Investment Adviser Regulation U.S. federal and state securities laws and regulations apply to insurance products that meet the definition of a “security,” including variable annuity contracts and variable life insurance policies, and certain fixed interest rate or index-linked contracts with features that require them to be registered as securities under the Securities Act of 1933, as amended (the “Securities Act”) or exempt from registration (“Variable Products”).
Our Global Risk Management department develops product pricing standards and oversees underwriting practices in MetLife’s insurance businesses. We also regularly conduct experience studies to monitor assumptions against expectations, impose formal new product approval processes, periodically update product profitability studies, and use reinsurance to manage our exposures, as appropriate.
Our Global Risk Management department develops product pricing standards and provides independent pricing and underwriting oversight for MetLife’s insurance businesses. We also regularly conduct experience studies to monitor assumptions against expectations, impose formal new product approval processes, periodically update product profitability studies, and use reinsurance to manage our exposures, as appropriate.
Two of our U.S. subsidiaries are registered with the SEC as broker-dealers under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and are members of, and subject to regulation by, FINRA. The SEC, CFTC and FINRA from time to time propose and adopt rules and regulations that impact broker-dealers and products deemed to be securities.
Three of our U.S. subsidiaries are registered with the SEC as broker-dealers under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and are members of, and subject to regulation by, FINRA and state securities regulators. The SEC, CFTC and FINRA periodically propose and adopt rules and regulations that impact broker-dealers and products deemed to be securities.
Structured Settlements Customized annuities designed to serve as an alternative to a lump sum payment in a lawsuit initiated because of personal injury, wrongful death, or a workers’ compensation claim or other claim for damages. Surrenders are generally not allowed, although commutations are permitted in certain circumstances.
Structured Settlements Customized annuities designed to serve as an alternative to a lump sum payment in a lawsuit initiated because of personal injury, wrongful death, or a workers’ compensation claim or other claim for damages. Surrenders are generally not allowed, although commutations are permitted in certain circumstances. Guaranteed payments consist of life contingent annuities, term certain annuities and lump sums.
With regard to insurance products, the NAIC revised its Suitability in Annuity Transactions Model Regulation to add a “best interest” standard for the sale of annuities.
With regard to insurance products, the NAIC revised its Suitability in Annuity Transactions Model Regulation to add a “best interest” standard for the sale of annuities, which most states have adopted.
One of our U.S. broker-dealers serves as the principal underwriter and distributor of these variable products and other securities offerings. Our broker-dealer distributes these products via unaffiliated third-party broker-dealers and financial intermediaries that sell these products to end investors.
One of our U.S. broker-dealers serves as the principal underwriter and distributor of these Variable Products and other securities offerings. This broker-dealer distributes these products via unaffiliated third-party broker-dealers and financial intermediaries that sell these products to end investors. The other two broker-dealers distribute private funds for MIM.
We cannot predict what effect the amended Regulation will have on our business or compliance costs. 17 Table of Contents The NAIC’s Insurance Data Security Model Law (the “Cybersecurity Model Law”) requires insurers to develop and maintain a risk-based information security program, establish data security standards and notify insurance commissioners of certain cybersecurity events.
The new requirements became effective in 2024 and 2025. We cannot predict what effect the amended Regulation will have on our business or compliance costs. The NAIC’s Insurance Data Security Model Law (the “Cybersecurity Model Law”) requires insurers to develop and maintain a risk-based information security program, establish data security standards and notify insurance commissioners of certain cybersecurity events.
We must attract and retain highly skilled people with knowledge of our business and industry experience to support our business. See “— Human Capital Resources.” We continue to seek to grow our career agency forces in selected global markets. We also continue efforts to enhance the efficiency and production of our sales representatives.
We must attract and retain highly skilled people with knowledge of our businesses and industry experience to support our businesses. See “— Human Capital Resources.” We continue to seek to grow our career agency forces and institutional asset management teams in selected global markets and enhance the efficiency and production of our sales representatives and asset managers.
Also included in Corporate & Other are: the excess capital, as well as certain charges and activities, not allocated to the segments (including external integration and disposition costs, internal resource costs for associates committed to acquisitions and dispositions and enterprise-wide strategic initiatives), interest expense related to the majority of the Company’s outstanding debt, expenses associated with certain legal proceedings and income tax audit issues, the elimination of intersegment amounts (which generally relate to investment expenses and intersegment loans bearing interest rates commensurate with related borrowings), and the Company’s institutional investment management business (through which the Company provides public fixed income, private capital and real estate investment solutions to institutional investors worldwide).
Also included in Corporate & Other are: the excess capital, as well as certain charges and activities, not allocated to the segments (including external integration and disposition costs, internal resource costs for associates committed to acquisitions and dispositions and enterprise-wide strategic initiatives), interest expense related to the majority of the Company’s outstanding debt, expenses associated with certain legal proceedings and income tax audit issues, and the elimination of intersegment amounts (which generally relate to asset management fees and loans bearing interest rates commensurate with related borrowings).
These interim changes had an immaterial impact on RBC. The NAIC is developing a long-term solution for this issue. 14 Table of Contents • Group Capital Calculation. The NAIC’s group capital calculation (“GCC”) tool uses an RBC aggregation methodology for all entities within an insurance holding company system, including non-U.S. entities.
These interim changes had an immaterial impact on our RBC. The NAIC is developing a long-term solution for the accounting treatment of negative IMR. • Group Capital Calculation. The NAIC’s group capital calculation (“GCC”) tool uses an RBC aggregation methodology for all entities within an insurance holding company system, including non-U.S. entities.
Covered entities that fail to comply with the Regulation may be subject to NYDFS enforcement actions, the result of which could lead to civil penalties, and other legal and reputational costs.
Covered entities are also required to submit annual compliance notifications. Covered entities that fail to comply with the Regulation may be subject to NYDFS enforcement actions, the result of which could lead to civil penalties, and other legal and reputational costs.
In more mature markets, we focus our strategy on our preferred market segments to play a “niche” role. We also have a strong market presence in emerging markets leveraging a multi-channel distribution strategy. Our businesses in EMEA use captive and independent agency, independent brokerage, bancassurance, corporate solutions and direct-to-consumer distribution channels.
We also have a strong market presence in emerging markets, leveraging a multi-channel distribution strategy. Our businesses in EMEA use captive and independent agency, independent brokerage, bancassurance, corporate solutions and direct-to-consumer distribution channels.
Diversity and Corporate Governance The NAIC and state insurance regulators are evaluating issues related to diversity within the insurance industry. In New York, for example, the NYDFS expects insurers to make diversity of their leadership a business priority and a key element of their corporate governance, and it includes diversity-related questions in its examination process.
In New York, for example, the NYDFS expects insurers to make diversity of their leadership a business priority and a key element of their corporate governance, and it includes diversity-related questions in its examination process.
These subsidiaries issue variable annuity contracts and variable life insurance policies with separate accounts that are registered with the SEC as investment companies under the Investment Company Act of 1940, as amended (the “Investment Company Act”) or are exempt from registration under the Investment Company Act.
Some of these subsidiaries issue certain Variable Products with separate accounts that are registered with the SEC as investment companies under the Investment Company Act of 1940, as amended (the “Investment Company Act”) or are exempt from registration under the Investment Company Act.
Although the consumer financial services subject to the CFPB’s jurisdiction generally exclude insurance business of the kind in which we engage, the CFPB does have authority to regulate non-insurance consumer services we provide. Consumer protection laws in non-U.S. jurisdictions may also affect us.
Although the consumer financial services subject to the CFPB’s jurisdiction generally exclude insurance business of the kind in which we engage, the CFPB does have authority to regulate non-insurance consumer services we provide.
Shortly thereafter, these changes were challenged in court, and in July 2024, two federal district courts entered separate stays of the effective date of the new regulation regarding the definition of “fiduciary” and the amendments to the PTEs, pending further orders of the courts. The DOL has appealed these stay orders.
Shortly thereafter, these changes were challenged in court, and two federal district courts entered separate stays of the effective date of the new regulation regarding the definition of “fiduciary” and the amendments to the PTEs, pending further orders of the courts. The DOL has signaled that it intends to revisit and re-evaluate the regulation and PTE amendments.
We support retention of our employees through a variety of means, such as maintaining employee recognition programs, focusing on employee health and wellness, and offering our total compensation and benefit programs. 24 Table of Contents Information About Our Executive Officers Set forth below is information regarding the executive officers of MetLife, Inc.
We support retention of our employees through recognition programs, health and wellness initiatives, and our total compensation and benefit programs. 24 Table of Contents Information About Our Executive Officers Set forth below is information regarding the executive officers of MetLife, Inc.
Guaranteed payments consist of life contingent annuities, term certain annuities and lump sums. 7 Table of Contents Risk Solutions Longevity Reinsurance Solutions Longevity reinsurance is a risk mitigation solution for United Kingdom (“U.K.”) pension plan sponsors and U.K. insurance companies that write pension risk transfer business, converting uncertain future pension benefit obligations into a fixed stream of payments to MetLife over the duration of the contract as opposed to a lump sum at inception in typical pension risk transfer transactions.
Group Deferred Annuities Group fixed and variable deferred annuities generally offered in connection with defined contribution retirement plans for not-for-profit organizations. 7 Table of Contents Risk Solutions Longevity Reinsurance Solutions Longevity reinsurance is a risk mitigation solution for United Kingdom (“U.K.”) pension plan sponsors and U.K. insurance companies that write pension risk transfer business, converting uncertain future pension benefit obligations into a fixed stream of payments to MetLife over the duration of the contract as opposed to a lump sum at inception in typical pension risk transfer transactions.
MetLife’s company-paid and company-subsidized healthcare, disability, life insurance and retirement benefits are tailored to the needs of each market and competitive paid time off, as well as parental leave programs, are provided in all markets. • Compensation: We have a pay-for-performance philosophy that directly links an employee’s compensation to their performance and to MetLife’s performance.
MetLife tailors Company-paid and/or Company-subsidized benefits, including healthcare, dental insurance, disability, life insurance and retirement benefits, to meet the needs of each market and offers competitive paid time off in all markets. • Compensation: We have a pay-for-performance philosophy that directly links an employee’s compensation to their performance and to MetLife’s performance.
The rule effectively requires such participants to clear eligible cash transactions in U.S. Treasury securities beginning on December 31, 2025. Furthermore, the rule effectively requires eligible repurchase and reverse repurchase transactions in U.S. Treasury securities to be cleared beginning on June 30, 2026. As a result, certain transactions between such participants and us will be required to be cleared.
Treasury securities beginning on December 31, 2026, and clear eligible repurchase and reverse repurchase transactions in U.S. Treasury securities beginning on June 30, 2027. As a result, certain transactions between such participants and us will be required to be cleared. The rule’s potential effect on the U.S. Treasury markets is uncertain.
In 2022, the FSB endorsed this framework and stopped designating global systemically important insurers. An IAIS proposal becomes effective when it is enacted through legislation or regulation in the applicable jurisdiction. Accordingly, the impact on MetLife, Inc. of the IAIS’s global proposals is uncertain.
An IAIS proposal becomes effective when it is enacted through legislation or regulation in the applicable jurisdiction. Accordingly, the impact on MetLife, Inc. of the IAIS’s global proposals is uncertain.
Increasing cybersecurity risks and threats from various actors have increased regulatory focus on cybersecurity practices, and regulatory and legislative activity in the areas of privacy, data protection and cybersecurity continues to increase worldwide. Below, we highlight some of the key data protection and cybersecurity laws and regulations to which we are subject.
Increasing cybersecurity risks and threats from various actors have heightened regulatory focus on cybersecurity practices, and regulatory and legislative activity in the areas of privacy, data protection and cybersecurity continues to increase worldwide.
As a result of these developments, it is possible that it may become more costly to provide and distribute our products and services, and that we might be subject to additional litigation and regulatory investigations regarding our compliance with those rules.
As a result of these developments, it is possible that it may become more costly to provide and distribute our products and services, and that we might be subject to additional litigation and regulatory investigations regarding our compliance with those rules. 19 Table of Contents In 2025, Chile enacted a pension reform bill, which introduced structural changes to the pension system.
The IAIS’s holistic framework assesses and mitigates systemic risk in the global insurance sector. The framework monitors vulnerabilities at jurisdictional and global levels to address any such risk through the application of enhanced supervisory measures based on existing insurance core principles and the common framework for supervision of IAIGs.
The framework monitors vulnerabilities at jurisdictional and global levels to address any such risk through the application of enhanced supervisory measures based on existing insurance core principles and the common framework for supervision of IAIGs. In 2022, the FSB endorsed this framework and stopped designating global systemically important insurers.
These reserves are reported as liabilities, and we expect them to be sufficient to meet policy and contract obligations, when taken together with expected future premiums and interest at assumed rates.
These reserves are reported as liabilities, and we expect them to be sufficient to meet policy and contract obligations, when taken together with expected future premiums and interest at assumed rates. Statutory reserves and actuarial liabilities for future policy benefits reported under GAAP generally differ due to the difference in accounting requirements.
Derivatives Regulation and Clearing of Treasury Securities Dodd-Frank includes a framework of regulation of the over-the-counter (“OTC”) derivatives markets requiring clearing of certain OTC derivative transactions and imposes additional costs, including reporting and margin requirements.
Consumer protection laws in non-U.S. jurisdictions may also affect us. 20 Table of Contents Derivatives Regulation and Clearing of Treasury Securities Dodd-Frank includes a framework of regulation of the over-the-counter (“OTC”) derivatives markets requiring clearing of certain OTC derivative transactions and imposes additional costs, including reporting and margin requirements.
We continue to monitor the developments of the EU AI Act and other governmental initiatives around the world, particularly in jurisdictions where we operate. 18 Table of Contents Standards of Conduct, ERISA, Fiduciary Considerations, and Other Pension and Retirement Regulation We provide products and services to certain employee benefit plans that are subject to ERISA and/or Section 4975 of the Internal Revenue Code of 1986, as amended (the “Code”).
Standards of Conduct, ERISA, Fiduciary Considerations, and Other Pension and Retirement Regulation We provide products and services to certain employee benefit plans that are subject to ERISA and/or Section 4975 of the Internal Revenue Code of 1986, as amended (the “Code”).
As most of our operations are in jurisdictions with a tax rate above 15%, we do not currently expect these rules to have a material impact on us. Competition The life insurance industry remains highly competitive.
A number of countries have either enacted Pillar Two rules or are evaluating whether to enact such rules. As most of our operations are in jurisdictions with a tax rate above 15%, we do not currently expect these rules to have a material impact on us. Competition The life insurance and institutional asset management industries are highly competitive.
In most of those cases, a locally qualified actuary must submit an adequacy analysis, although regulatory and actuarial analytic standards vary widely. 15 Table of Contents Adjusting Non-Guaranteed Elements of Life Insurance Products New York’s Insurance Regulation 210 sets standards for the determination and any readjustment of non-guaranteed elements (“NGEs”) that may vary at the insurer’s discretion for life insurance policies and annuity contracts delivered or issued for delivery in New York.
Adjusting Non-Guaranteed Elements of Life Insurance Products New York’s Insurance Regulation 210 sets standards for the determination and any readjustment of non-guaranteed elements (“NGEs”) that may vary at the insurer’s discretion for life insurance policies and annuity contracts delivered or issued for delivery in New York.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeConsolidation and other industry changes may also increase the likelihood that distributors will renegotiate agreements on terms less favorable to us. In addition, legislative and other changes affecting the regulatory environment for our business may not impact all activities and companies equally, which could adversely affect our competitive position within the insurance industry and the broader financial services industry.
Biggest changeIn addition, legislative and other changes affecting the regulatory environment for our business may not impact all activities and companies equally, which could adversely affect our competitive position within the insurance industry, institutional asset management industry and the broader financial services industry. 35 Table of Contents We Face Technological Changes That Present New and Intensified Challenges and May Fail to Foresee or Adapt to These Changes Our business operations rely on functioning and secure information systems, including those of our vendors and other third parties.
We may be unable to mitigate the risk of such changes in exchange rates due to unhedged positions, asymmetrical and non-economic accounting resulting from derivative gains (losses) on non-qualifying hedges, the failure of hedges to effectively offset the impact of the foreign currency exchange rate fluctuation, or other factors.
We may be unable to mitigate the risk of such changes in exchange rates due to unhedged positions, asymmetrical and non-economic accounting resulting from derivative gains (losses) on non-qualifying hedges, the failure of hedges to effectively offset the impact of foreign currency exchange rate fluctuation, or other factors.
We May Be Required to Impair VOBA, VODA or VOCRA Adverse changes to investment returns, mortality, morbidity, persistency, interest crediting rates, dividends paid to policyholders, expenses to administer the business, significant or sustained equity market declines, significant changes to bond spreads, and certain other economic variables, such as inflation, could cause an impairment of the value of distribution agreements acquired (“VODA”), VOBA or the value of customer relationships acquired (“VOCRA”).
We May Be Required to Impair VODA, VOBA or VOCRA Adverse changes to investment returns, mortality, morbidity, persistency, interest crediting rates, dividends paid to policyholders, expenses to administer the business, significant or sustained equity market declines, significant changes to bond spreads, and certain other economic variables, such as inflation, could cause an impairment of the value of distribution agreements acquired (“VODA”), VOBA or the value of customer relationships acquired (“VOCRA”).
While we have implemented what we believe to be reasonable and appropriate cybersecurity and data protection measures across business lines and at the enterprise level (and we contractually require our critical vendors to implement similar measures), including a formal risk-based information security program, our efforts to minimize the risk of cyber-incidents and protect our information technology may be insufficient to prevent material break-ins, attacks, fraud, security breaches or other unauthorized access to our and our vendors’ systems, including as a result of software code that contains vulnerabilities, which may increase the potential of cyber attacks or unauthorized access.
While we have implemented what we believe to be reasonable and appropriate cybersecurity and data protection measures across business lines and at the enterprise level (and we contractually require our critical vendors to implement similar measures), including a formal risk-based information security program, our efforts to minimize the risk of cybersecurity incidents and protect our information technology may be insufficient to prevent material break-ins, attacks, fraud, security breaches or other unauthorized access to our and our vendors’ systems, including as a result of software code that contains vulnerabilities, which may increase the potential of cyber-attacks or unauthorized access.
Higher unemployment, changes to inflation, lower family income, lower corporate earnings, greater government regulation, lower business investment, lower consumer spending, elevated incidence of claims, adverse utilization of benefits relative to our best estimate expectations, lapses or surrenders of policies, reduced demand for our products, and deferred or canceled payments of insurance premiums may negatively affect our earnings and capitalization.
Higher unemployment, changes to inflation, lower family income, lower corporate earnings, greater government regulation, lower business investment, lower consumer spending, elevated incidence of claims, adverse utilization of benefits relative to our best estimate expectations, lapses or surrenders of policies, reduced demand for our products and services, and deferred or canceled payments of insurance premiums may negatively affect our earnings and capitalization.
During rapidly increasing interest rates, we may not be able to replace the investments in our general account with higher yielding investments needed to fund the higher crediting rates required to stay competitive. This could result in a lower spread, lower profitability, decreased sales, and greater loss of existing contracts and related assets.
During periods of rapidly increasing interest rates, we may not be able to replace the investments in our general account with higher yielding investments needed to fund the higher crediting rates required to stay competitive. This could result in a lower spread, lower profitability, decreased sales, and greater loss of existing contracts and related assets.
We May Face Increasing Litigation and Regulatory Investigations Legal or regulatory actions, inquiries or investigations, involving us or our competitors, whether ongoing or yet to come, could harm our reputation, ability to attract or retain customers or employees, and business, financial condition, or results of operations, even if we or our competitors, ultimately prevail.
We May Face Increasing Litigation and Regulatory Investigations Legal or regulatory actions, inquiries or investigations, involving us or our competitors, whether ongoing or yet to come, could harm our reputation, ability to attract or retain customers, clients or employees, and business, financial condition, or results of operations, even if we or our competitors ultimately prevail.
Any of these changes may harm our ability to continue to offer the products we do today or to introduce new products. We may incur costs to comply with laws and regulations and changes to these laws and regulations may increase our expenses and regulatory capital charges.
Any of these changes may harm our ability to continue to offer the products we do today or to introduce new products. We may incur costs to comply with laws and regulations and changes to or interpretations of these laws and regulations may increase our expenses and regulatory capital charges.
We may be subject to enhanced capital standards, supervision and additional requirements, such as group capital standards or insurer capital standards. MetLife, Inc. could be compelled to undergo FDIC liquidation if it becomes insolvent or is in danger of defaulting on its obligations, potentially imposing greater losses on shareholders and unsecured creditors than under the Bankruptcy Code.
We may be subject to enhanced capital standards, supervision and additional requirements, such as group capital standards or insurer capital standards. MetLife, Inc. could be compelled to undergo FDIC liquidation if it becomes insolvent or is in danger of defaulting on its obligations, potentially imposing greater losses on stockholders and unsecured creditors than under the Bankruptcy Code.
The occurrence of a major economic downturn, acts of corporate malfeasance, widening credit spreads, or other adverse events may increase the default rate of the fixed income securities and mortgage loans in our investment portfolio. Many of our transactions with counterparties expose us to the risk of counterparty default.
The occurrence of a major economic downturn, acts of corporate malfeasance, widening credit spreads, or other adverse events may increase the default rate of the fixed income securities and mortgage loans in our investment portfolio. Many of our transactions with counterparties, including reinsurers, expose us to the risk of counterparty default.
We may choose, for competitive or other reasons, to support policyholder dividend payments with our general account funds. Such actions may reduce funds otherwise available for other uses. The assets of the closed block can never revert to the benefit of MLIC’s non-closed block policyholders or us, as sole shareholder of MLIC.
We may choose, for competitive or other reasons, to support policyholder dividend payments with our general account funds. Such actions may reduce funds otherwise available for other uses. The assets of the closed block can never revert to the benefit of MLIC’s non-closed block policyholders or us, as sole stockholder of MLIC.
We may have to implement more extensive or different risk management policies and procedures due to legal and regulatory requirements. Our Policies and Procedures May Be Insufficient to Protect Us From Operational Risks We may make errors in any of the large number of transactions we process through our complex administrative systems.
We may have to implement more extensive or different risk management policies and procedures due to legal and regulatory requirements. Our Policies and Procedures May Be Insufficient to Protect Us From Operational Risks We may make errors in any of the large number of transactions we process through our complex administrative, information and investment systems.
We may incur regulatory, mailing, or other costs related to the termination of the trust, distribution of the common stock held in the trust to beneficiaries and the resulting increase in the number of shareholders with full voting rights. This increase may affect the outcome of matters brought to a stockholder vote and other aspects of our corporate governance.
We may incur regulatory, mailing, or other costs related to the termination of the trust, distribution of the common stock held in the trust to beneficiaries and the resulting increase in the number of stockholders with full voting rights. This increase may affect the outcome of matters brought to a stockholder vote and other aspects of our corporate governance.
We May Face a Variety of Political, Legal, Operational, Economic and Other Risks Globally The global nature of our business operations exposes us to a wide range of political, legal, operational, economic and other risks, including: nationalization or expropriation of assets; imposition of limits on foreign ownership of local companies; restrictions on the ability to access cash on deposit, changes in laws, their application or interpretation; political instability; military conflicts; economic or trade sanctions; sanctions on cross-border exchange listing, investment or other securities transactions; dividend limitations; price controls; regulations related to ESG matters; currency exchange controls or other transfer or exchange restrictions; difficulty enforcing contracts; regulatory restrictions; and public or political criticism of our business and operations.
We May Face a Variety of Political, Legal, Operational, Economic and Other Risks Globally The global nature of our business operations exposes us to a wide range of political, legal, operational, economic and other risks, including: nationalization or expropriation of assets; imposition of limits on foreign ownership of local companies; restrictions on the ability to access cash on deposit, changes in laws, their application or interpretation; political instability; civil unrest; military conflicts; economic or trade sanctions; sanctions on cross-border exchange listing, investment or other securities transactions; dividend limitations; price controls; regulations related to sustainability matters; currency exchange controls or other transfer or exchange restrictions; difficulty enforcing contracts; regulatory restrictions; and public or political criticism of our business and operations.
MetLife, Inc. may also not meet its free cash flow or shareholder cash distribution goals. Insurance regulators may restrict dividends or other payments above certain amounts where their approval is required if they determine payments could be adverse to our policyholders or contractholders.
MetLife, Inc. may also not meet its free cash flow or stockholder cash distribution goals. Insurance regulators may restrict dividends or other payments above certain amounts where their approval is required if they determine payments could be adverse to our policyholders or contractholders.
We, our vendors, our reinsurers, and our customers may suffer disasters such as a natural catastrophe, epidemic, pandemic, industrial accident, blackout, computer virus, terrorist attack, ransomware or cyber-attack, or war, and our or their disaster recovery systems may be insufficient to safeguard our ability to conduct normal business operations, obtain reinsurance and maintain our critical business or information technology systems in such circumstances, particularly if such disasters affect computer-based data processing, transmission, storage and retrieval systems and/or destroy or otherwise adversely impact the confidentiality, integrity or availability of valuable data or the financial wherewithal of reinsurers or vendors.
We, our vendors, our reinsurers, and our customers may suffer disasters such as a natural catastrophe, epidemic, pandemic, industrial accident, blackout, telecommunications or other infrastructure failure, computer virus, terrorist attack, ransomware or cyber-attack, or war, and our or their disaster recovery systems may be insufficient to safeguard our ability to conduct normal business operations, obtain reinsurance and maintain our critical business or information technology systems in such circumstances, particularly if such disasters affect computer-based data processing, transmission, storage and retrieval systems and/or destroy or otherwise adversely impact the confidentiality, integrity or availability of valuable data or the financial wherewithal of reinsurers or vendors.
Increases in the prevalence and accuracy of genetic testing, or restrictions on its use, may exacerbate adverse selection risks. Pandemics and other public health issues have caused and may continue to cause increased claims under many of our policies (for example, life, disability, leave, long-term care, major medical and supplemental health products), raising our resulting costs.
Increases in the prevalence and accuracy of genetic testing, or restrictions on its use, may exacerbate adverse selection risks. 34 Table of Contents Pandemics and other public health issues have caused and may continue to cause increased claims under many of our policies (for example, life, disability, leave, long-term care, major medical and supplemental health products), raising our resulting costs.
Such credit risk may be exacerbated if we cannot realize on the collateral held by us in secured transactions or cannot liquidate such collateral at prices sufficient to recover the full amount of the loan or derivative exposure due to us.
Such credit risk may be exacerbated if we cannot realize on the collateral held by us in secured transactions or cannot liquidate such collateral at prices sufficient to recover the full amount of the loan, derivative exposure or reinsurance obligations due to us.
Alternatively, we could be required to execute costly licensing arrangements with third parties or implement a costly alternative. 39 Table of Contents Risks Related to Acquisitions, Dispositions or Other Structural Changes We May Face Difficulties, Unforeseen Liabilities, Asset Impairments or Rating Actions from Business Acquisitions or Integrating and Managing Growth of Such Businesses, Dispositions of Businesses, or Legal Entity Reorganizations Acquisitions and dispositions of businesses, joint ventures, and other structural changes expose us to a number of risks arising from, among other factors, economic, operational, strategic, financial, tax, legal, regulatory, and compliance.
Alternatively, we could be required to execute costly licensing arrangements with third parties or implement a costly alternative. 40 Table of Contents Risks Related to Acquisitions, Dispositions or Other Structural Changes We May Face Difficulties, Unforeseen Liabilities, Asset Impairments or Rating Actions from Business Acquisitions or Integrating and Managing Growth of Such Businesses, Dispositions of Businesses, or Legal Entity Reorganizations Acquisitions and dispositions of businesses, joint ventures, and other structural changes expose us to a number of risks arising from, among other factors, economic, operational, strategic, financial, tax, legal, regulatory, information security and compliance.
In addition, downturns or volatility in the equity markets may decrease the estimated fair value of our alternative investments and equity securities. 28 Table of Contents Real Estate Risks Changes in leasable commercial space supply and demand, lessee behaviors, pandemics and other public health issues, creditworthiness of tenants and partners, capital markets volatility, interest rate fluctuations, commodity prices, farm incomes, housing and commercial property market conditions, and real estate investment supply and demand may adversely impact our investments in commercial, agricultural and residential mortgage loans, and real estate equity investments including joint ventures.
In addition, downturns or volatility in the equity markets may decrease the estimated fair value of our alternative investments and equity securities. 28 Table of Contents Real Estate Risks Changes in leasable commercial space supply and demand, lessee behaviors, pandemics and other public health issues, creditworthiness of tenants and partners, capital markets volatility, interest rate fluctuations, commodity prices, farm incomes, housing and commercial property market conditions, and real estate investment supply and demand may adversely impact our investments in commercial, agricultural and residential mortgage loans, and real estate and REJVs.
The areas where we face risks include, among others, rights to indemnification for losses, regulatory, liquidity and capital requirements, loss of customers, distributors, vendors and key personnel, diversion of management time and resources to acquisition integration challenges or growth strategies from maximizing business value, and inability to realize anticipated efficiencies.
The areas where we face risks include, among others, rights to indemnification for losses, regulatory, liquidity and capital requirements, loss of customers, distributors, vendors and key personnel, diversion of management time and resources to acquisition integration challenges, including integration of information technologies, or growth strategies from maximizing business value, and inability to realize anticipated efficiencies.
Governments may change regulation of financial services, insurance, variable annuities and variable life insurance, securities, derivatives, pension, health care, accounting, cybersecurity, AI, privacy and data protection, tort reform, taxation, benefit plan investment advice and related fiduciary duties, antitrust as applied to the business of health insurance or otherwise, and other areas.
Governments may change regulation of financial services, insurance, reinsurance, variable annuities and variable life insurance, securities, derivatives, pension, health care, accounting, cybersecurity, AI, privacy and data protection, asset management, tort reform, taxation, benefit plan investment advice and related fiduciary duties, antitrust as applied to the business of health insurance or otherwise, and other areas.
Fluctuations in currency exchange rates may adversely affect the translation of results into our U.S. dollar basis consolidated financial statements. Derivatives Risks If our counterparties, clearing brokers or central clearinghouses fail or refuse to honor their obligations under our derivatives agreements, our risks may not be fully hedged.
Fluctuations in currency exchange rates may adversely affect the translation of results into our U.S. dollar basis consolidated financial statements. 29 Table of Contents Derivatives Risks If our counterparties, clearing brokers or central clearinghouses fail or refuse to honor their obligations under our derivatives agreements, our risks may not be fully hedged.
Further, terms applicable to our Floating Rate Non-Cumulative Preferred Stock, Series A, junior subordinated debentures and trust securities may prevent us from paying dividends or interest on those instruments. We may not be able to eliminate these restrictions through the repayment, redemption or purchase of junior subordinated debentures or other securities.
Further, terms applicable to our Floating Rate Non-Cumulative Preferred Stock, Series A, and junior subordinated debt securities may prevent us from paying dividends or interest on those instruments. We may not be able to eliminate these restrictions through the repayment, redemption or purchase of subordinated debt or other securities.
We maintain a buffer of cash and other liquid assets, and may increase it. As a result, we may have less capital to devote to other uses, such as innovation, acquisitions, development and return of capital to shareholders.
We maintain a buffer of cash and other liquid assets, and may increase it. As a result, we may have less capital to devote to other uses, such as innovation, acquisitions, development and return of capital to stockholders.
Other factors may affect our ability to pay dividends or repurchase our common stock. Governments, investors or media may pressure us not to repurchase shares of our common stock or other securities, or prohibit us from doing so. Our use of other means to return excess capital to shareholders may be less tax-efficient than repurchases.
Other factors may affect our ability to pay dividends on or repurchase our common stock. Governments, investors or media may pressure us not to repurchase shares of our common stock or other securities, or prohibit us from doing so. Our use of other means to return excess capital to stockholders may be less tax-efficient than repurchases.
These may continue to contribute to our risk of investment defaults, downgrades and volatility, asset impairments and lower variable investment income and returns, and may cause or exacerbate any of the investment risks we describe in these risk factors. Market volatility affects the value of or return on our investments.
These may continue to contribute to our risk of investment defaults, downgrades and volatility, asset impairments and lower variable investment income and returns, and may cause or exacerbate any of the investment risks we describe in these risk factors. 33 Table of Contents Market volatility affects the value of or return on our investments.
As a result, we may incur charges, reserve strengthening, and expenses, regulatory examinations, or penalties. Our practices and procedures may, at times, limit our efforts to contact all our customers, which may result in delayed, untimely, or missed customer payments. 37 Table of Contents Our associates, vendors, non-employee sales agents, customers, or others may commit fraud against us.
As a result, we may incur charges, reserve strengthening, and expenses, regulatory examinations, or penalties. Our practices and procedures may, at times, limit our efforts to contact all our customers, which may result in delayed, untimely, or missed customer payments. Our associates, vendors, non-employee sales agents, customers, or others may commit fraud against us.
Regulators or private parties may bring class actions, individual suits, or investigations seeking large recoveries and alleging wrongs relating to matters such as sales or underwriting practices, claims payments and procedures, failure to adequately or appropriately supervise, inappropriate compensation contrary to licensing requirements, product design, disclosure, administration, investments, denial or delay of benefits, pandemic- or other public health-related practices, privacy and data protection, or data security incidents, discriminatory or inequitable practices, and breaches of fiduciary or other duties.
Regulators or private parties may bring class actions, individual suits, or investigations seeking large recoveries and alleging wrongs relating to matters such as sales or underwriting practices, claims payments and procedures, failure to adequately or appropriately supervise, inappropriate compensation contrary to licensing requirements, product design, disclosure, administration, cost of insurance charges, premium rate increases, investments, denial or delay of benefits, pandemic- or other public health-related practices, privacy and data protection, or data security incidents, discriminatory or inequitable practices, and breaches of fiduciary or other duties.
Our intent to sell, or our assessment of the likelihood that we will be required to sell, fixed income securities may increase our write-downs or impairments. Our realized losses or impairments on these securities may harm our net income. The default rate, loss severity or other performance of our mortgage loan investments may change.
Our intent to sell, or our assessment of the likelihood that we will be required to sell, fixed income securities may increase our reserve provisions or impairments. Our realized losses or impairments on these securities may harm our net income. The default rate, loss severity or other performance of our mortgage loan investments may change.
We may be harmed by competition from other insurance companies, as well as non-insurance financial services companies, which may have a broader array of products, more competitive pricing, higher claims paying ability ratings, greater financial resources with which to compete, or pre-existing customer bases for financial services products.
We may be harmed by competition from other insurance companies, asset managers, and non-insurance financial services companies, which may have a broader array of products, more competitive pricing, higher claims paying ability ratings, greater financial resources with which to compete, or pre-existing customer bases for financial services products.
Likewise, the growth and availability of AI technologies, including generative AI, presents significant opportunities but also complex challenges; these include balancing and mitigating potential risks of harm posed by the development or deployment of AI technologies, as well as implementing and maintaining controls reasonably designed to ensure compliance with an evolving and increasingly complex AI regulatory landscape.
Likewise, the growth and availability of AI technologies, including generative AI, presents significant opportunities but also complex challenges; these include balancing and mitigating potential risks of harm posed by the development or deployment of AI technologies, as well as implementing and maintaining controls reasonably designed to ensure compliance with an increasingly complex AI regulatory landscape, with evolving requirements that may vary across jurisdictions.
We could be compelled to publicly disclose information prematurely in order to dispel such inaccurate perceptions, or in order to fulfill our disclosure obligations, even if we do not believe the information is yet completely reliable or confirmed per our usual internal controls and disclosure controls. This may result in harm to our reputation.
We could be compelled to publicly disclose information prematurely in order to dispel such inaccurate perceptions, or in order to fulfill our disclosure obligations, even if we do not believe the information is yet completely reliable or confirmed per our usual internal controls and disclosure controls.
Changes in market credit spreads could result in volatility to liabilities for future policy benefits relative to our asset values. Equity Risks Downturns and volatility in equity markets may harm our savings and investment products’ revenues and investment returns, where fee income is earned based upon the fair value of our managed assets.
Changes in market credit spreads could result in volatility to liabilities for future policy benefits relative to our asset values. Equity Market Risks Downturns, volatility or other negative equity market conditions may harm our savings, asset management, and investment products’ and services’ revenues and investment returns, where fee income is earned based upon the fair value of our managed assets.
Our Efforts to Meet Environmental, Social, and Governance Standards and to Enhance the Sustainability of our Businesses May Not Meet Investors', Regulators' or Customers' Expectations Some of our shareholders, investors and customers, or those considering such a relationship with us, evaluate our business or other practices according to a variety of ESG standards and expectations.
Our Efforts to Enhance the Sustainability of our Businesses May Not Meet Investors', Regulators' or Customers' Expectations Some of our stockholders, investors, and customers, or those considering such a relationship with us, evaluate our business or other practices according to a variety of sustainability standards and expectations.
Capital Risks We May Not be Able to Pay Dividends or Repurchase Our Stock Due to Legal and Regulatory Restrictions or Cash Buffer Needs Our financial condition, results of operations, cash requirements, future prospects, capital position, liquidity, financial strength and credit ratings, as well as regulatory restrictions on the payment of dividends by MetLife, Inc.’s insurance subsidiaries, general market conditions, the market price of our common stock compared to management’s assessment of the stock’s underlying value, applicable regulatory approvals, other legal and accounting factors, and any other factors our Board deems relevant may preclude us from paying dividends or repurchasing our common stock.
We may also face adverse regulatory, investor, media, or public scrutiny leading to business, reputational, or legal challenges. 32 Table of Contents Capital Risks We May Not be Able to Pay Dividends or Repurchase Our Stock Due to Legal and Regulatory Restrictions or Cash Buffer Needs Our financial condition, results of operations, cash requirements, future prospects, capital position, liquidity, financial strength and credit ratings, as well as regulatory restrictions on the payment of dividends by MetLife, Inc.’s insurance subsidiaries, general market conditions, the market price of our common stock compared to management’s assessment of the stock’s underlying value, applicable regulatory approvals, other legal and accounting factors, and any other factors our Board of Directors deems relevant may preclude us from paying dividends on or repurchasing our common stock.
We may accelerate amortization or impair these assets in the period these occur. 36 Table of Contents We May Face Volatility, Higher Risk Management Costs, and Increased Counterparty Risk Due to Guarantees Within Certain of Our Products Our liabilities for guaranteed benefits, including no-lapse guarantee benefits, guaranteed minimum death benefits, guaranteed minimum withdrawal benefits, guaranteed minimum accumulation benefits, guaranteed minimum income benefits, and certain minimum crediting rate features could increase if equity or fixed income funds decline or become more volatile, or interest rates decrease.
We May Face Volatility, Higher Risk Management Costs, and Increased Counterparty Risk Due to Guarantees Within Certain of Our Products Our liabilities for guaranteed benefits, including no-lapse guarantee benefits, guaranteed minimum death benefits, guaranteed minimum withdrawal benefits, guaranteed minimum accumulation benefits, guaranteed minimum income benefits, and certain minimum crediting rate features could increase if equity or fixed income funds decline or become more volatile, or interest rates decrease.
Laws, regulations or regulatory actions may limit or change the type, amount or structure of compensation or benefits we offer our employees or others, or may limit or ban the use of non-competition agreements, which may harm our ability to compete in recruiting and retaining key personnel. We may also fail to fulfill our fiduciary or other benefit-related obligations completely.
Laws, regulations or regulatory actions may limit or change the type, amount or structure of compensation or benefits we offer our employees or others, or may limit or ban the use of non-competition agreements, which may harm our ability to compete in recruiting and retaining key personnel.
Our success in conducting business through joint ventures will depend on our ability to manage a variety of issues, including: (i) our exposure to additional operational, financial, legal, tax or compliance risks as a result of entry into certain joint ventures; (ii) our dependence on a joint venture counterparty given limits on our ownership or distribution requirements, as well as for resources, including capital and product distribution, may reduce our control over, financial returns from, or the value of a joint venture; and (iii) our counterparties' cooperation or their ability to meet obligations, or election to alter, modify or terminate a relationship.
Our success in conducting business through joint ventures will depend on our ability to manage a variety of issues, including: (i) our exposure to additional operational, financial, legal, regulatory, tax or compliance risks as a result of entry into certain joint ventures; (ii) our dependence on a joint venture counterparty given limits on our ownership levels and/or certain distribution requirements, including for resources, such as capital and product distribution; and (iii) the risk of our counterparties' failure to cooperate or meet their obligations, or their election to alter, modify or terminate a relationship.
Our policies and procedures may be ineffective in preventing, detecting or mitigating fraud and other illegal or improper acts. We may fail to attract, motivate and retain employees, develop talent, and plan for management succession. Additionally, attrition could cause a lapse in implementation of policies and procedures.
Our policies and procedures may be ineffective in preventing, detecting or mitigating fraud and other illegal or improper acts. We may fail to attract, motivate and retain employees, develop talent, and plan for management succession.
Compliance with solvency standards or financial condition regulations may increase our capital and reserve requirements, risk management costs, and reporting costs. See “Business — Regulation — State Insurance Regulation — Surplus and Capital” for a summary of the NAIC’s developments related to financial condition regulation.
We may also fail to fulfill our fiduciary or other client and benefit-related obligations completely. Compliance with solvency standards or financial condition regulations may increase our capital and reserve requirements, risk management costs, and reporting costs. See “Business — Regulation — State Insurance Regulation — Surplus and Capital” for a summary of the NAIC’s developments related to financial condition regulation.
Globally, the frequency, severity and sophistication of cybersecurity incidents have increased, and these trends may continue.
Globally, the frequency, severity and sophistication of cybersecurity incidents have increased, and these trends are likely to continue.
Our securities lending activities and profitability may decrease. We May Have to Pledge Collateral or Make Payments in Derivatives Transactions We may have to pledge additional collateral and increase payments we make under our derivatives transactions.
We May Have to Pledge Collateral or Make Payments in Derivatives and Reinsurance Transactions We may have to pledge additional collateral and increase payments we make under our derivatives and reinsurance transactions.
We May Face Competition for Business Competitive pressures, based on a number of factors including service, product features, scale, price, financial strength, claims-paying ratings, credit ratings, e-business capabilities, name recognition, performance against ESG metrics, technology, adaptation in light of pandemics and other public health issues, changes in regulation and taxes, and other factors, may adversely affect the persistency of our products and our ability to sell products in the future.
We May Face Competition for Business Competitive pressures, based on a number of factors including service, product features, scale, price, commission structure, financial strength, investment performance, the level of fees charged, our ability to develop new investment strategies and products, institutional client relationships, talent, claims-paying ratings, credit ratings, e-business capabilities, name recognition, sustainability-related expectations, technology, AI, adaptation in light of pandemics and other public health issues, changes in regulation and taxes, and other factors, may adversely affect the persistency of our products and our ability to sell products in the future.
Catastrophic events may also reduce economic activity in affected areas, which could harm our existing business or prospects for new business, or the value of our investments. The severity of claims from catastrophic events may be higher if property values increase due to inflation or other factors or our insured lives or property are geographically concentrated.
Catastrophic events may also reduce economic activity in affected areas, which could harm our existing business or prospects for new business, or the value of our investments. The severity of claims from catastrophic events may be higher if those who are insured by us are geographically concentrated.
Our controls and procedures to prevent such errors may not be effective. Our controls and procedures to comply with and enforce contractual obligations may not always be effective. Mistakes can subject us to claims from our customers.
Our controls and procedures to prevent such errors may not be effective. Our controls and procedures to comply with and enforce contractual obligations may not always be effective. Mistakes can subject us to claims from our customers, regulatory fines, or the obligation to reimburse clients for investment losses.
We remain liable and may incur costs as the direct insurer on all risks we reinsure as a result of a reinsurer’s insolvency, inability or unwillingness to make payments, or inability or unwillingness to maintain collateral, which could have a material adverse impact on our business, results of operations or financial condition.
Any of these could harm our ability to write future business or result in the assumption of more risk with respect to the policies we issue. 30 Table of Contents We remain liable and may incur costs as the direct insurer on all risks we reinsure as a result of a reinsurer’s insolvency, inability or unwillingness to make payments, or inability or unwillingness to maintain collateral, which could have a material adverse impact on our business, results of operations or financial condition.
We may fail to meet our commitments or targets, and our policies and processes to evaluate and manage ESG standards in coordination with other business priorities may not prove completely effective or fully satisfy expectations of some stakeholders.
As techniques, industry standards, and regulatory expectations continue to develop, our assessments, reporting, and targets may change. We may fail to meet our interim targets, and our policies and processes to evaluate and manage sustainability standards in coordination with other business priorities may not prove completely effective or fully satisfy expectations of some stakeholders.
Furthermore, our derivatives valuations may change based on changes to our valuation methodology or errors in such valuation or valuation methodology. 29 Table of Contents Terrorism and Security Risks The continued threat of terrorism, ongoing or potential military conflict and other actions, and heightened security measures may cause economic uncertainty and result in loss of life, property damage, additional disruptions to commerce and reduced economic activity.
Terrorism and Security Risks The continued threat of terrorism, ongoing or potential military conflict and other actions, and heightened security measures may cause economic uncertainty and result in loss of life, property damage, additional disruptions to commerce and reduced economic activity.
We May Face Direct or Indirect Effects of Climate Change or Responses to It Climate change may increase the frequency and severity of short-, medium-, or long-term weather-related disasters, public health incidents, wildfires, rising sea levels and pandemics, and their effects may increase over time.
We may also be called upon to make contributions to guaranty associations or similar organizations as a result of catastrophes. 36 Table of Contents We May Face Direct or Indirect Effects of Climate Change or Responses to It Climate change may increase the frequency and severity of short-, medium-, or long-term weather-related disasters, public health incidents, wildfires, rising sea levels and pandemics, and their effects may increase over time.
We may not carry business interruption insurance sufficient to protect us from all losses that may result from such interruptions, and any insurance for liability, operational and other risks may become less readily available or more expensive in the future. 38 Table of Contents We may not be able to reliably access all the documents and records in the information storage systems we use, whether electronic or physical.
We may not carry business interruption insurance sufficient to protect us from all losses that may result from such interruptions, and any insurance for liability, operational and other risks may become less readily available or more expensive in the future.
We may not detect such incidents in a timely manner. If we or our vendors fail to prevent, detect, address and mitigate such incidents, we may suffer significant financial and reputational harm.
We may not detect such incidents in a timely manner. If we or our vendors fail to prevent, detect, address and mitigate such incidents, we may suffer significant financial and reputational harm. The personnel and financial resources we commit to maintaining and upgrading our information systems may not be sufficient to address all potential issues.
Our practices and performance are subject to increasing scrutiny with regard to various aspects of ESG performance from regulators and other stakeholders. Our investors or others may evaluate our practices by ESG criteria that are continually evolving and not always clear or readily measurable.
Our practices and performance are subject to increasing scrutiny with regard to various aspects of sustainability performance from regulators and other stakeholders. Our investors or others may evaluate our practices against sustainability criteria that continue to evolve and may be unclear, inconsistent or based on methodologies that are not readily measurable.
We may face unfavorable conditions in privately-placed fixed income securities, private structured credit, certain derivative instruments, mortgage loans, policy loans, direct financing and leveraged leases, tax credit and renewable energy partnerships, private equity, and real estate equity, including real estate joint ventures and funds.
We may face unfavorable conditions in privately-placed fixed income securities, private structured credit, certain derivative instruments, mortgage loans, policy loans, direct financing and leveraged leases, tax credit and renewable energy partnerships, private equity, real estate and REJVs and funds. Our investments may suffer reduced liquidity during periods of market volatility or disruption or for other reasons.
New technologies may impact the configuration of our information systems, and how they connect with those of our vendors, service providers and/or partners. Such technological developments may introduce or uncover information security vulnerabilities, which may result in breaches or increased costs associated with maintaining appropriate data privacy, data protection, and cybersecurity measures or enforcement actions against us by regulators.
Such technological developments may introduce or uncover information security vulnerabilities, which may result in breaches, increased costs associated with maintaining appropriate data privacy, data protection, and cybersecurity measures, enforcement actions against us by regulators or other outcomes that may adversely impact our operations or business.
Reorganizing or consolidating the legal entities through which we conduct business may raise similar risks. Our success in realizing the benefits from legal entity reorganizations will also depend on our management of various issues, including regulatory approvals, modification of our operations and changes to our investment portfolios or derivatives hedging activities.
Our success in realizing the benefits from legal entity reorganizations will also depend on our management of various issues, including regulatory approvals, modification of our operations and changes to our investment portfolios or derivatives hedging activities. Any of these risks, if realized, could prevent us from achieving the benefits we expect from such transactions.
For example, some current customers and potential customers may decline to do business with us based on our sustainability practices and related policies and actions. We may also face adverse regulatory, investor, media, or public scrutiny leading to business, reputational, or legal challenges.
For example, some current and potential customers may decline to do business with us based on our sustainability practices and related policies and actions.
Regulators’ or others’ scrutiny of cybersecurity, including new laws or regulations, could increase our compliance costs and operational burdens, especially as regulatory and legislative focus on cybersecurity matters intensifies, which could lead to more enforcement actions of such laws or regulations. See “Business — Regulation — Cybersecurity, Privacy and Data Protection, and Innovation and Technology Regulation” for additional information.
This may result in harm to our reputation. 39 Table of Contents Regulators’ or others’ scrutiny of cybersecurity, including new laws or regulations, could increase our compliance costs and operational burdens, especially as regulatory and legislative focus on cybersecurity matters intensifies, which could lead to more enforcement actions of such laws or regulations.
A failure to protect the confidentiality, integrity or availability of such systems, use by our employees or agents of unauthorized tools, software or other technology to communicate with customers or business counterparties or a failure to maintain the security of our internal or external vendors’ systems, or the confidential information stored thereon, may adversely affect our ability to conduct business, result in regulatory enforcement action and litigation, and harm our results of operations, financial condition and reputation.
A failure to protect the confidentiality, integrity or availability of such systems, use by our employees or agents of unauthorized tools, software or other technology to communicate with customers or business counterparties or a failure to maintain the security of our internal or external vendors’ systems, or the confidential information stored thereon, may adversely affect our ability to conduct business, result in regulatory enforcement action and litigation, and harm our results of operations, financial condition and reputation. 38 Table of Contents We, our employees, and our vendors, like other commercial entities, continue to be targeted by or subject to malicious actors attempting to install computer viruses or other malicious code, to gain unauthorized or fraudulent access, or to carry out ransomware or cyber-attacks, as well as human errors and other breaches or incidents affecting our cybersecurity and information security systems.
We face other risks that may affect our global operations and investments, including those related to the imposition of tariffs or other barriers to international trade, changes to international trade agreements, uncertainties in intergovernmental organizations, pension system reforms, labor problems with workers’ associations or trade unions, and reliance on interconnected information systems and the security of such systems. 34 Table of Contents Expanding our operations to new businesses or jurisdictions may require considerable management time and expenses before significant, if any, revenues and earnings are generated, which may reduce management and financial resources available for other uses.
We face other risks that may affect our global operations and investments, including those related to the imposition of tariffs or other barriers to international trade, changes to international trade agreements, uncertainties in intergovernmental organizations, pension system reforms, labor problems with workers’ associations or trade unions, and reliance on interconnected information systems and the security, integrity, availability and proper operation of such systems.
Operational Risks Our Risk Management Policies and Procedures, or Our Models, May Leave Us Exposed to Unidentified or Unanticipated Risk Our ERM and business continuity policies and procedures may not be sufficiently comprehensive and may not identify or adequately protect us from every risk to which we are exposed.
Operational Risks Our Risk Management Policies and Procedures, or Our Models, May Leave Us Exposed to Unidentified or Unanticipated Risk Our ERM and business continuity policies and procedures may not be sufficiently comprehensive and may not identify or adequately protect us from every risk to which we are exposed. 37 Table of Contents Pandemics and other public health issues, and authorities’ and people’s reactions thereto may strain our risk management, and our business continuity plans, introduce or increase our operational and cybersecurity risks, and otherwise impair our ability to manage our business.
Tax authorities may enact laws, change regulations to increase existing taxes, or add new types of taxes, and authorities who have not imposed taxes in the past may impose taxes. 31 Table of Contents Customers shifting away from employee benefits, life insurance and annuity contracts, or other tax-preferred products would reduce our income from these products and our asset base, reducing our earnings and potentially affecting the value of our deferred tax assets.
Customers shifting away from employee benefits, life insurance and annuity contracts, or other tax-preferred products would reduce our income from these products and our asset base, reducing our earnings and potentially affecting the value of our deferred tax assets.
Sustained declines in long-term equity returns or interest rates may harm the funding of our pension plans and other post-retirement benefit obligations. An increase in equity markets could increase settlement payments on equity futures and total rate of return swaps (“TRRs”), which may increase our cash outflows and liquidity needs.
An increase in equity markets could increase settlement payments on equity futures and total rate of return swaps (“TRRs”), which may increase our cash outflows and liquidity needs.
We may fail to adjust our investments accordingly or suffer stranded assets. If we are unable to update our business model to match evolving consumer preferences and purchasing behavior, or the evolving technological landscape, our business, results of operations and financial condition may be adversely affected.
If we are unable to update our business model to match evolving consumer preferences and purchasing behavior, or the evolving technological landscape, our business, results of operations and financial condition may be adversely affected. New technologies may impact the configuration of our information systems, and how they connect with those of our vendors, service providers and/or partners.
If regulators disallow assets to back statutory reserves, we would not be able to take some or all related statutory reserve credit, which may harm the statutory capitalization of certain of our insurance subsidiaries. 30 Table of Contents Regulatory and Legal Risks Changes in Laws or Regulation, or in Supervisory and Enforcement Policies, May Reduce Our Profitability, Limit Our Growth, or Otherwise Adversely Affect Us Insurance or other regulators may change licensing, permit, or approval requirements, or take other actions harmful to us.
Regulatory and Legal Risks Changes in Laws or Regulation, or in Supervisory and Enforcement Policies, May Reduce Our Profitability, Limit Our Growth, or Otherwise Adversely Affect Us Insurance or other regulators may change licensing, permit, or approval requirements, or take other actions harmful to us.
Any such vulnerability that results in a security breach or failure of our information systems, or those of third parties on which we rely, may result in litigation, regulatory action, negative impacts to our business operations, and reputational harm. 35 Table of Contents We May Face Catastrophes That Affect Liabilities for Policyholder Claims and Reinsurance Availability Catastrophic events could increase claims, impair assets in or otherwise harm our investment portfolio, and could harm our reinsurers’ financial condition, increasing reinsurance defaults.
In addition, any such vulnerability that results in a security breach or failure of our information systems, or those of third parties on which we rely, may result in litigation, regulatory action, negative impacts to our business operations, and reputational harm.
Our Associates May Take Excessive Risks Our associates, including executives and others who manage sales, investments, products, wholesaling, underwriting, and others, may take excessive risks. Our compensation programs and practices, and our other controls, may not effectively deter excessive risk-taking or misconduct.
Our compensation programs and practices, and our other controls, may not effectively deter excessive risk-taking or misconduct.
Our variable annuity and life insurance business is highly sensitive to equity markets, and a sustained weakness or stagnation in the equity markets may decrease these products’ revenues and earnings. Furthermore, certain of our variable annuity and life products offer guaranteed benefits that increase our potential benefit exposure should equity markets decline or stagnate.
Sustained investment underperformance relative to benchmarks or competitors could result in an increase of client withdrawals of assets from investment products. Our variable annuity and life insurance business is highly sensitive to equity markets, and a sustained weakness or stagnation in the equity markets may decrease these products’ revenues and earnings.
In the U.S., a threat facing the economy is the continued disagreement over the federal debt limit, other budget questions, and potential restrictions on trade with other markets.
Government entities may face budget deficits and other financial difficulties, which may harm the value of securities we hold issued by or under the auspices of such governments. In the U.S., a threat facing the economy is the continued disagreement over the federal debt limit, other budget questions, and potential restrictions on trade with other markets.
Regulators, customers, or others may act against us for any cybersecurity failures. We also have an increasing challenge of attracting and retaining highly qualified personnel to assist us in combating these security threats. Our continuous technological evaluations and enhancements, including changes designed to update our protective measures, may increase our risk of a breach or gap in our security.
See “Business — Regulation — Cybersecurity, Privacy and Data Protection, and Innovation and Technology Regulation” for additional information. Regulators, customers, or others may act against us for any cybersecurity failures. We also have an increasing challenge of attracting and retaining highly qualified personnel to assist us in combating these security threats.
Our New York insurance regulator’s annual SCL for year-end asset adequacy testing may impose unforeseen assumptions or requirements that require us to increase or release reserves, which could affect our statutory capital and surplus.
Such delays may increase uncertainty, prolong deleterious regulations and policies, delay or prevent beneficial regulatory or policy changes, and create the potential for later, more rapid changes to which we may find it more difficult to adjust. 31 Table of Contents Our New York insurance regulator’s annual SCL for year-end asset adequacy testing may impose unforeseen assumptions or requirements that require us to increase or release reserves, which could affect our statutory capital and surplus.
We may fail to obtain or maintain all the records we need to administer and establish appropriate reserves for benefits and claims accurately and timely. If a data breach exposed any of our sensitive financial information, then customers, investors, or regulators may develop an inaccurate perception of our financial condition or results of operations.
If a data breach exposes any of our sensitive financial information, then customers, investors, or regulators may develop an inaccurate perception of our financial condition or results of operations.
We may realize losses that harm our financial metrics, which could harm our compliance with our credit requirements and rating agency capital adequacy measures. 33 Table of Contents We may face similar risks if we are required under our securities lending program to return significant amounts of cash collateral that we have invested.
We may face similar risks if we are required under our securities lending program to return significant amounts of cash collateral that we have invested. Our securities lending activities and profitability may decrease.
We have oriented our climate objectives and interim targets to advance this commitment, which involves assumptions and expectations that involve risks and uncertainties. Data and measurement techniques continue to evolve. Further, because of the financed emissions included in our investment portfolio, our ability to meet our commitments is dependent on those counterparties meeting their own carbon reduction objectives.
Our sustainability aspirations and interim targets rely on assumptions and expectations that involve risks and uncertainties. Further, because of the financed emissions included in our investment portfolio, our ability to achieve these aspirations depends in part on counterparties meeting their own emissions reduction objectives.
If the net estimated fair value of a derivative to which we are a party declines, we may need to pledge additional collateral or make increased payments. In addition, we may face increased costs to the extent we replace counterparties or clearing brokers who suffer financial difficulties.
If the net estimated fair value of a derivative to which we are a party declines, we may need to pledge additional collateral or make increased payments. Strategies we manage for clients may face similar collateral and margin requirements, which can affect liquidity and performance.
We may also be restricted from repurchasing shares or entering into share repurchase programs at times, such as when we are aware of material non-public information. 32 Table of Contents If we do not pay dividends on our preferred stock or pay interest on our junior subordinated debentures or trust securities, terms of those instruments may restrict our ability to pay dividends on or repurchase our common stock.
We may also be restricted from repurchasing shares or entering into share repurchase programs at times, such as when we are aware of material non-public information.
Changes in accounting rules applicable to our business may have an adverse impact on our results of operations and financial condition. For a discussion of the impact of U.S. GAAP accounting pronouncements issued but not yet implemented, see Note 1 of the Notes to the Consolidated Financial Statements.
We May Face Changes in Accounting Standards Authorities may change accounting standards that apply to us, and we may adopt changes earlier than required. Changes in accounting rules applicable to our business may have an adverse impact on our results of operations and financial condition. For a discussion of the impact of U.S.
An increase in consolidation activity among banks, insurance brokers, broker-dealers and investment advisers may negatively impact the insurance industry’s sales. It may increase competition for access to distributors, resulting in greater distribution expenses, and may impair our ability to market insurance products to or expand our current customer base.
It may increase competition for access to distributors, resulting in greater distribution expenses, and may impair our ability to market insurance products to or expand our current customer base. Consolidation and other industry changes may also increase the likelihood that distributors will renegotiate agreements on terms less favorable to us.
We may incur higher costs to comply with laws on, or regulators’ scrutiny of, our use, collection, management, or transfer of data and other privacy practices. We are continuously evaluating and enhancing our cybersecurity and information security systems and creating new systems and processes.
Our continuous technological evaluations and enhancements, including changes designed to update our protective measures, may increase our risk of a breach or gap in our security. We may incur higher costs to comply with laws on, or regulators’ scrutiny of, our use, collection, management, or transfer of data and other privacy practices.
However, there can be no assurance that these measures will be effective in preventing or limiting the impact of future cybersecurity incidents. We May Face Changes in Accounting Standards Authorities may change accounting standards that apply to us, and we may adopt changes earlier than required.
We are continuously evaluating and enhancing our cybersecurity and information security systems and creating new systems and processes. However, there can be no assurance that these measures will be effective in preventing or limiting the impact of future cybersecurity incidents.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeWe exercise risk-based due diligence in selecting our third-party service providers, including, as appropriate, review of vendor applications, general IT controls and the IT facilities used to service MetLife’s business. Third parties are governed by the MetLife Third-Party Risk Management program, which includes risk assessment prior to onboarding.
Biggest changeWe exercise risk-based due diligence in selecting our third-party service providers, including, as appropriate, review of vendor applications, general IT controls and the IT facilities used to service MetLife’s business. Based on the assessment of risk, certain third-party service providers must periodically update relevant assessment documentation and be reevaluated by MetLife relative to their internal controls.
The primary goal of the Program is to protect the confidentiality, integrity and availability of all data MetLife owns or possesses, as well as its technology assets, through physical, technical, and administrative safeguards. This includes controls and procedures across business units and at the enterprise level for monitoring, detecting, reporting, containing, managing, and remediating cyber threats.
The primary goal of the Program is to protect the confidentiality, integrity and availability of data MetLife owns or possesses, as well as its technology assets, through physical, technical, and administrative safeguards. This includes controls and procedures across business units and at the enterprise level for monitoring, detecting, reporting, containing, managing, and remediating cyber threats.
Management provides regular reports to the CISO detailing on-going cybersecurity risk management. The CISO and the head of Global Technology & Operations present updates to the Audit Committee quarterly and, as necessary, to the full Board of Directors. These regular reports include updates on our performance preparing for, preventing, detecting, responding to and recovering from cyber incidents.
Management provides regular reports to the CISO detailing on-going cybersecurity risk management. The CISO and the head of Global Technology & Operations present updates to the Audit Committee quarterly and, as necessary, to the full Board of Directors. These regular reports include updates on our performance preparing for, preventing, detecting, responding to and recovering from cybersecurity incidents.
Item 1C. Cybersecurity Cybersecurity Management & Strategy We manage information security risk through, and as part of, MetLife’s Information Security Program (the “Program”), instituted to maintain controls for the systems, applications, and databases of the Company and of its third-party providers.
Item 1C. Cybersecurity Cybersecurity Management & Strategy We manage information security risk through, and as part of, MetLife’s Information Security Program (the “Program”), instituted to maintain controls for the systems, applications, and databases of the Company and of its third-party service providers.
For further discussion of MetLife’s risks related to cybersecurity, see “Risk Factors — Operational Risks — We May Fail to Protect the Confidentiality, Integrity or Availability of Our Systems or Data, Including As a Result of a Failure in Our Cybersecurity or Other Information Security Systems or Our Disaster Recovery Plans or Those of Our Vendors.” 41 Table of Contents Cybersecurity Governance The CISO is a senior-level executive responsible for establishing and executing the Company’s information security strategy.
For further discussion of MetLife’s risks related to cybersecurity, see “Risk Factors — Operational Risks — We May Fail to Protect the Confidentiality, Integrity or Availability of Our Systems or Data, Including As a Result of a Failure in Our Cybersecurity or Other Information Security Systems or Our Disaster Recovery Plans or Those of Our Vendors.” 42 Table of Contents Cybersecurity Governance The CISO is a senior-level executive responsible for establishing and executing the Company’s information security strategy.
Mine Safety Disclosures Not applicable. 42 Table of Contents Part II
Mine Safety Disclosures Not applicable. 43 Table of Contents Part II
We also work with third parties, such as independent assessors (for example, for industry maturity assessments, penetration testing, application security reviews, and independent audits), external legal counsel and other consultants as part of the design and implementation of the Program.
Vendors deemed critical and high risk are continuously monitored by various industry solutions and services designed to identify cybersecurity risks. We also work with third parties, such as independent assessors (for example, for industry maturity assessments, penetration testing, application security reviews, and independent audits), external legal counsel and other consultants as part of the design and implementation of the Program.
Removed
Based on the assessment of risk, certain third-party service providers must periodically update relevant assessment documentation and be reevaluated by MetLife relative to their internal controls. Vendors deemed critical and high risk are continuously monitored by various industry solutions and services designed to identify cybersecurity risks.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

6 edited+0 added−0 removed2 unchanged
Biggest changeThe graph and table below shall not be deemed to be “soliciting material” or to be “filed,” or to be incorporated by reference in future filings with the SEC, or to be subject to the liabilities of Section 18 of the Exchange Act, except to the extent that we specifically incorporate it by reference into a document filed under the Securities Act or the Exchange Act. 43 Table of Contents As of December 31, 2019 2020 2021 2022 2023 2024 MetLife, Inc. common stock $ 100.00 $ 96.58 $ 132.73 $ 158.26 $ 149.56 $ 190.96 S&P 500 100.00 118.40 152.39 124.79 157.59 197.02 S&P 500 Insurance 100.00 99.56 131.54 144.86 158.28 200.73 S&P 500 Financials 100.00 98.31 132.75 118.77 133.20 173.90 S&P 500 Life & Health Insurance 100.00 90.52 123.73 136.53 142.87 171.87 Item 6.
Biggest changeThe graph and table below shall not be deemed to be “soliciting material” or to be “filed,” or to be incorporated by reference in future filings with the SEC, or to be subject to the liabilities of Section 18 of the Exchange Act, except to the extent that we specifically incorporate it by reference into a document filed under the Securities Act or the Exchange Act. 44 Table of Contents As of December 31, 2020 2021 2022 2023 2024 2025 MetLife, Inc. common stock $ 100.00 $ 137.43 $ 163.86 $ 154.85 $ 197.71 $ 196.13 S&P 500 $ 100.00 $ 128.71 $ 105.40 $ 133.10 $ 166.40 $ 196.16 S&P 500 Insurance $ 100.00 $ 132.12 $ 145.50 $ 158.97 $ 201.61 $ 209.85 S&P 500 Financials $ 100.00 $ 135.04 $ 120.81 $ 135.49 $ 176.89 $ 203.47 S&P 500 Life & Health Insurance $ 100.00 $ 136.68 $ 150.82 $ 157.83 $ 189.87 $ 201.00 Item 6.
See also “Risk Factors — Capital Risks — We May Not be Able to Pay Dividends or Repurchase Our Stock Due to Legal and Regulatory Restrictions or Cash Buffer Needs.” Common Stock Performance Graph The graph and table below compare the total return on our common shares with the total return on the Standard & Poor’s Global Ratings (“S&P”) 500, S&P 500 Insurance, S&P 500 Financials and S&P 500 Life & Health Insurance indices, respectively, for the five-year period ended on December 31, 2024.
See also “Risk Factors — Capital Risks — We May Not be Able to Pay Dividends or Repurchase Our Stock Due to Legal and Regulatory Restrictions or Cash Buffer Needs.” Common Stock Performance Graph The graph and table below compare the total return on our common shares with the total return on the Standard & Poor’s Global Ratings (“S&P”) 500, S&P 500 Insurance, S&P 500 Financials and S&P 500 Life & Health Insurance indices, respectively, for the five-year period ended on December 31, 2025.
The graph and table show the total return on a hypothetical $100 investment in our common shares and in each index, respectively, on December 31, 2019, including the reinvestment of all dividends.
The graph and table show the total return on a hypothetical $100 investment in our common shares and in each index, respectively, on December 31, 2020, including the reinvestment of all dividends.
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Issuer Common Equity MetLife, Inc.’s common stock, par value $0.01 per share, began trading on the New York Stock Exchange under the symbol “MET” on April 5, 2000. At February 13, 2025, there were 71,197 stockholders of record of our common stock.
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Issuer Common Equity MetLife, Inc.’s common stock, par value $0.01 per share, began trading on the New York Stock Exchange under the symbol “MET” on April 5, 2000. At February 12, 2026, there were 69,355 stockholders of record of our common stock.
(2) In May 2024, MetLife, Inc. announced that its Board of Directors authorized an additional $3.0 billion of common stock repurchases. At December 31, 2024, MetLife, Inc. had $1.9 billion of common stock repurchases remaining under this authorization. Neither the authorization remaining, nor the amount repurchased, reflects the applicable excise tax payable in connection with such repurchases.
(2) In April 2025, MetLife, Inc. announced that its Board of Directors authorized an additional $3.0 billion of common stock repurchases. At December 31, 2025, MetLife, Inc. had $2.1 billion of common stock repurchases remaining under its authorization. Neither the authorization remaining, nor the amount repurchased, reflect the applicable excise tax payable in connection with such repurchases.
Issuer Purchases of Equity Securities Purchases of MetLife, Inc. common stock made by or on behalf of MetLife, Inc. or its affiliates during the quarter ended December 31, 2024 are set forth below: Period Total Number of Shares Purchased (1) Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs (2) October 1 - October 31, 2024 1,540,782 $83.34 1,540,782 $2,172,966,699 November 1 - November 30, 2024 153,276 $78.29 153,276 $2,160,966,737 December 1 - December 31, 2024 2,887,469 $81.62 2,887,469 $1,925,294,295 Total 4,581,527 4,581,527 __________________ (1) During the periods October 1 — October 31, 2024, November 1 — November 30, 2024 and December 1 — December 31, 2024, there were no purchases by separate account index funds of MetLife, Inc. common stock on the open market in non-discretionary transactions.
Issuer Purchases of Equity Securities Purchases of MetLife, Inc. common stock made by or on behalf of MetLife, Inc. or its affiliates during the quarter ended December 31, 2025 are set forth below: Period Total Number of Shares Purchased (1) Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs (2) October 1 - October 31, 2025 1,845,671 $81.27 1,845,671 $2,352,468,033 November 1 - November 30, 2025 3,598,160 $77.81 3,598,160 $2,072,488,851 December 1 - December 31, 2025 — — — $2,072,488,851 Total 5,443,831 5,443,831 __________________ (1) During the periods presented, separate account index funds did not purchase any MetLife, Inc. common stock on the open market in non-discretionary transactions.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

254 edited+59 added−43 removed228 unchanged
Biggest change(5) See “— Non-GAAP and Other Financial Disclosures” for information regarding adjusted earnings and related measures. 64 Table of Contents Reconciliation of net income (loss) to adjusted earnings available to common shareholders and premiums, fees and other revenues to adjusted premiums, fees and other revenues Year Ended December 31, 2024 Group Benefits RIS Asia Latin America EMEA MetLife Holdings Corporate & Other Total (In millions) Net income (loss) available to MetLife, Inc.'s common shareholders $ 1,596 $ 1,138 $ 723 $ 522 $ 269 $ 697 $ (719) $ 4,226 Add: Preferred stock dividends — — — — — — 200 200 Add: Net income (loss) attributable to noncontrolling interests — — — — 4 (1) 15 18 Add: Preferred stock redemption premium — — — — — — — — Net income (loss) 1,596 1,138 723 522 273 696 (504) 4,444 Less: adjustments from net income (loss) to adjusted earnings available to common shareholders: Revenues: Net investment gains (losses) (58) (501) (591) 28 (40) (408) 386 (1,184) Net derivative gains (losses) 118 278 (1,108) (257) (19) (540) (95) (1,623) Premiums 31 — — — — — — 31 Universal life and investment-type product policy fees — — — — — — — — Net investment income (74) (191) 441 (42) 625 (183) 25 601 Other revenues — (76) — — — 158 28 110 Expenses: Policyholder benefits and claims and policyholder dividends (19) (141) 255 (148) — 71 — 18 Policyholder liability remeasurement gains (losses) — — — — — — — — Market risk benefit remeasurement gains (losses) — (11) (7) — 54 1,074 (1) 1,109 Interest credited to policyholder account balances (“PABs”) — 2 (372) (81) (624) (109) — (1,184) Capitalization of deferred policy acquisition costs (“DAC”) — — — — — — — — Amortization of DAC, VOBA and negative VOBA — — — — — — — — Interest expense on debt — — — — — — — — Other expenses (11) (30) 3 7 (4) (1) (81) (117) Goodwill impairment — — — — — — — — Provision for income tax (expense) benefit 3 141 481 134 (2) (13) (57) 687 Adjusted earnings $ 1,606 $ 1,667 $ 1,621 $ 881 $ 283 $ 647 $ (709) $ 5,996 Less: Preferred stock dividends — — — — — — 200 200 Adjusted earnings available to common shareholders $ 1,606 $ 1,667 $ 1,621 $ 881 $ 283 $ 647 $ (909) $ 5,796 Premiums, fees and other revenues $ 24,901 $ 8,518 $ 6,757 $ 5,936 $ 2,548 $ 3,430 $ 430 $ 52,520 Less: adjustments to premiums, fees and other revenues 31 (76) — — — 158 28 141 Adjusted premiums, fees and other revenues $ 24,870 $ 8,594 $ 6,757 $ 5,936 $ 2,548 $ 3,272 $ 402 $ 52,379 65 Table of Contents Year Ended December 31, 2023 Group Benefits RIS Asia Latin America EMEA MetLife Holdings Corporate & Other Total (In millions) Net income (loss) available to MetLife, Inc.'s common shareholders $ 1,521 $ 942 $ (150) $ 652 $ 253 $ (1,338) $ (500) $ 1,380 Add: Preferred stock dividends — — — — — — 198 198 Add: Net income (loss) attributable to noncontrolling interests — — 2 7 4 — 11 24 Add: Preferred stock redemption premium — — — — — — — — Net income (loss) 1,521 942 (148) 659 257 (1,338) (291) 1,602 Less: adjustments from net income (loss) to adjusted earnings available to common shareholders: Revenues: Net investment gains (losses) (56) (563) (1,019) 1 10 (1,914) 717 (2,824) Net derivative gains (losses) 39 120 (921) 89 (44) (1,350) (73) (2,140) Premiums — — — — — — — — Universal life and investment-type product policy fees — — — — — — — — Net investment income (153) (449) 350 (34) 688 (260) 17 159 Other revenues — (75) — — 1 29 40 (5) Expenses: Policyholder benefits and claims and policyholder dividends — (32) 183 (157) — 11 — 5 Policyholder liability remeasurement (gains) losses — — — — — — — — Market risk benefit remeasurement (losses) gains — 29 43 — 40 882 — 994 Interest credited to PABs — — (395) (149) (687) (20) — (1,251) Capitalization of DAC — — — — — — — — Amortization of DAC, VOBA and negative VOBA — — — — — — — — Interest expense on debt — — — — — — — — Other expenses — — 1 8 (5) — (97) (93) Goodwill impairment — — — — — — — — Provision for income tax (expense) benefit 36 204 328 61 (11) 551 (135) 1,034 Adjusted earnings $ 1,655 $ 1,708 $ 1,282 $ 840 $ 265 $ 733 $ (760) $ 5,723 Less: Preferred stock dividends — — — — — — 198 198 Adjusted earnings available to common shareholders $ 1,655 $ 1,708 $ 1,282 $ 840 $ 265 $ 733 $ (958) $ 5,525 Adjusted earnings available to common shareholders on a constant currency basis (1) $ 1,655 $ 1,708 $ 1,248 $ 791 $ 253 $ 733 $ (958) $ 5,430 Premiums, fees and other revenues $ 23,929 $ 8,757 $ 6,969 $ 5,727 $ 2,347 $ 3,737 $ 495 $ 51,961 Less: adjustments to premiums, fees and other revenues — (75) — — 1 29 40 (5) Adjusted premiums, fees and other revenues $ 23,929 $ 8,832 $ 6,969 $ 5,727 $ 2,346 $ 3,708 $ 455 $ 51,966 Adjusted premiums, fees and other revenues on a constant currency basis (1) $ 23,929 $ 8,832 $ 6,608 $ 5,392 $ 2,271 $ 3,708 $ 455 $ 51,195 __________________ (1) Amounts for Group Benefits, RIS, MetLife Holdings and Corporate & Other are shown on a reported basis, as constant currency impact is not significant. 66 Table of Contents Consolidated Results — Adjusted Earnings Available to Common Shareholders Business Overview .
Biggest change(5) See “— Non-GAAP and Other Financial Disclosures” for information regarding adjusted earnings available to common shareholders and related measures. 67 Table of Contents Reconciliations of net income (loss) available to MetLife, Inc.’s common shareholders to adjusted earnings available to common shareholders and premiums, fees and other revenues to adjusted premiums, fees and other revenues Year Ended December 31, 2025 Group Benefits RIS Asia Latin America EMEA MIM Corporate & Other Total (In millions) Net income (loss) available to MetLife, Inc.'s common shareholders $ 1,473 $ 542 $ 885 $ 872 $ 338 $ 131 $ (1,068) $ 3,173 Add: Preferred stock dividends — — — — — — 194 194 Add: Preferred stock redemption premium — — — — — — 12 12 Add: Net income (loss) attributable to noncontrolling interests and redeemable noncontrolling interests — — — 7 5 — 12 24 Net income (loss) 1,473 542 885 879 343 131 (850) 3,403 Less: adjustments from net income (loss) to adjusted earnings available to common shareholders: Revenues: Net investment gains (losses) (147) (818) (117) 51 10 (74) (50) (1,145) Net derivative gains (losses) (69) (246) (1,218) 295 (53) — (648) (1,939) Premiums 8 — — — — — — 8 Universal life and investment-type product policy fees — — — — — — 6 6 Net investment income (59) 345 402 (19) 705 — (247) 1,127 Other revenues — (7) — 36 — — 158 187 Expenses: Policyholder benefits and claims and policyholder dividends (3) (394) 209 (90) — — 65 (213) Policyholder liability remeasurement (gains) losses — (3) — — — — — (3) Market risk benefit remeasurement gains (losses) — 113 64 — 17 — 314 508 Interest credited to policyholder account balances (“PABs”) — (70) (388) (158) (700) — (103) (1,419) Capitalization of deferred policy acquisition costs (“DAC”) — — — — — — — — Amortization of DAC, VOBA and negative VOBA — — — — — — (1) (1) Interest expense on debt — — — — — — — — Other expenses (8) (350) — 6 (3) (18) (108) (481) Goodwill impairment — — — — — — — — Provision for income tax (expense) benefit 59 301 231 (40) — 23 57 631 Adjusted earnings $ 1,692 $ 1,671 $ 1,702 $ 798 $ 367 $ 200 $ (293) $ 6,137 Less: Preferred stock dividends — — — — — — 194 194 Adjusted earnings available to common shareholders $ 1,692 $ 1,671 $ 1,702 $ 798 $ 367 $ 200 $ (487) $ 5,943 Premiums, fees and other revenues $ 25,477 $ 12,255 $ 6,768 $ 6,642 $ 2,901 $ 932 $ 2,634 $ 57,609 Less: adjustments to premiums, fees and other revenues 8 (7) — 36 — — 164 201 Adjusted premiums, fees and other revenues $ 25,469 $ 12,262 $ 6,768 $ 6,606 $ 2,901 $ 932 $ 2,470 $ 57,408 68 Table of Contents Year Ended December 31, 2024 Group Benefits RIS Asia Latin America EMEA MIM Corporate & Other Total (In millions) Net income (loss) available to MetLife, Inc.'s common shareholders $ 1,596 $ 1,138 $ 723 $ 522 $ 269 $ (27) $ 5 $ 4,226 Add: Preferred stock dividends — — — — — — 200 200 Add: Preferred stock redemption premium — — — — — — — — Add: Net income (loss) attributable to noncontrolling interests and redeemable noncontrolling interests — — — — 4 — 14 18 Net income (loss) 1,596 1,138 723 522 273 (27) 219 4,444 Less: adjustments from net income (loss) to adjusted earnings available to common shareholders: Revenues: Net investment gains (losses) (58) (501) (591) 28 (40) (93) 71 (1,184) Net derivative gains (losses) 118 278 (1,108) (257) (19) — (635) (1,623) Premiums 31 — — — — — — 31 Universal life and investment-type product policy fees — — — — — — — — Net investment income (74) (191) 441 (42) 625 — (158) 601 Other revenues — (76) — — — — 186 110 Expenses: Policyholder benefits and claims and policyholder dividends (19) (141) 255 (148) — — 71 18 Policyholder liability remeasurement (gains) losses — — — — — — — — Market risk benefit remeasurement gains (losses) — (11) (7) — 54 — 1,073 1,109 Interest credited to PABs — 2 (372) (81) (624) — (109) (1,184) Capitalization of DAC — — — — — — — — Amortization of DAC, VOBA and negative VOBA — — — — — — — — Interest expense on debt — — — — — — — — Other expenses (11) (30) 3 7 (4) (17) (65) (117) Goodwill impairment — — — — — — — — Provision for income tax (expense) benefit 3 141 481 134 (2) 28 (98) 687 Adjusted earnings $ 1,606 $ 1,667 $ 1,621 $ 881 $ 283 $ 55 $ (117) $ 5,996 Less: Preferred stock dividends — — — — — — 200 200 Adjusted earnings available to common shareholders $ 1,606 $ 1,667 $ 1,621 $ 881 $ 283 $ 55 $ (317) $ 5,796 Adjusted earnings available to common shareholders on a constant currency basis (1) $ 1,606 $ 1,667 $ 1,605 $ 846 $ 280 $ 55 $ (317) $ 5,742 Premiums, fees and other revenues $ 24,901 $ 8,518 $ 6,757 $ 5,936 $ 2,548 $ 718 $ 3,142 $ 52,520 Less: adjustments to premiums, fees and other revenues 31 (76) — — — — 186 141 Adjusted premiums, fees and other revenues $ 24,870 $ 8,594 $ 6,757 $ 5,936 $ 2,548 $ 718 $ 2,956 $ 52,379 Adjusted premiums, fees and other revenues on a constant currency basis (1) $ 24,870 $ 8,594 $ 6,723 $ 5,751 $ 2,566 $ 718 $ 2,956 $ 52,178 __________________ (1) Amounts for Group Benefits, RIS, MIM and Corporate & Other are shown on a reported basis, as constant currency impact is not significant. 69 Table of Contents Year Ended December 31, 2023 Group Benefits RIS Asia Latin America EMEA MIM Corporate & Other Total (In millions) Net income (loss) available to MetLife, Inc.'s common shareholders $ 1,521 $ 942 $ (150) $ 652 $ 253 $ 3 $ (1,841) $ 1,380 Add: Preferred stock dividends — — — — — — 198 198 Add: Preferred stock redemption premium — — — — — — — — Add: Net income (loss) attributable to noncontrolling interests and redeemable noncontrolling interests — — 2 7 4 — 11 24 Net income (loss) 1,521 942 (148) 659 257 3 (1,632) 1,602 Less: adjustments from net income (loss) to adjusted earnings available to common shareholders: Revenues: Net investment gains (losses) (56) (563) (1,019) 1 10 (73) (1,124) (2,824) Net derivative gains (losses) 39 120 (921) 89 (44) — (1,423) (2,140) Premiums — — — — — — — — Universal life and investment-type product policy fees — — — — — — — — Net investment income (153) (449) 350 (34) 688 — (243) 159 Other revenues — (75) — — 1 — 69 (5) Expenses: Policyholder benefits and claims and policyholder dividends — (32) 183 (157) — — 11 5 Policyholder liability remeasurement (gains) losses — — — — — — — — Market risk benefit remeasurement gains (losses) — 29 43 — 40 — 882 994 Interest credited to PABs — — (395) (149) (687) — (20) (1,251) Capitalization of DAC — — — — — — — — Amortization of DAC, VOBA and negative VOBA — — — — — — — — Interest expense on debt — — — — — — — — Other expenses — — 1 8 (5) (16) (81) (93) Goodwill impairment — — — — — — — — Provision for income tax (expense) benefit 36 204 328 61 (11) 22 394 1,034 Adjusted earnings $ 1,655 $ 1,708 $ 1,282 $ 840 $ 265 $ 70 $ (97) $ 5,723 Less: Preferred stock dividends — — — — — — 198 198 Adjusted earnings available to common shareholders $ 1,655 $ 1,708 $ 1,282 $ 840 $ 265 $ 70 $ (295) $ 5,525 Adjusted earnings available to common shareholders on a constant currency basis (1) $ 1,655 $ 1,708 $ 1,248 $ 791 $ 253 $ 70 $ (295) $ 5,430 Premiums, fees and other revenues $ 23,929 $ 8,757 $ 6,969 $ 5,727 $ 2,347 $ 719 $ 3,513 $ 51,961 Less: adjustments to premiums, fees and other revenues — (75) — — 1 — 69 (5) Adjusted premiums, fees and other revenues $ 23,929 $ 8,832 $ 6,969 $ 5,727 $ 2,346 $ 719 $ 3,444 $ 51,966 Adjusted premiums, fees and other revenues on a constant currency basis (1) $ 23,929 $ 8,832 $ 6,608 $ 5,392 $ 2,271 $ 719 $ 3,444 $ 51,195 __________________ (1) Amounts for Group Benefits, RIS, MIM and Corporate & Other are shown on a reported basis, as constant currency impact is not significant. 70 Table of Contents Consolidated Results — Adjusted Earnings Available to Common Shareholders Business Overview .
We reinvest our cash flows from our group insurance products in higher yielding assets, mitigating the impact of (i) higher interest crediting rates on, primarily, our retained asset accounts, and (ii) lower income from our derivative positions used to mitigate low interest rate margin compression.
We reinvest our cash flows from our group insurance products in higher yielding assets, mitigating the impact of (i) higher interest crediting rates, primarily on our retained asset accounts, and (ii) lower income from our derivative positions used to mitigate low interest rate margin compression.
To determine the mortgage loan ACL, we apply significant judgment to estimate expected lifetime credit loss over the contractual term of our mortgage loans adjusted for expected prepayments and any extensions; and we consider past events and current and forecasted economic conditions which are subject to inherent uncertainty and which may change from time to time.
To determine the mortgage loan ACL, we apply significant judgment to estimate expected lifetime credit loss over the contractual term of our mortgage loans adjusted for expected prepayments and any extensions; we consider past events and current and forecasted economic conditions which are subject to inherent uncertainty and which may change from time to time.
Derivatives The determination of the estimated fair value of freestanding derivatives, when quoted market values are not available, is based on market standard valuation methodologies and inputs that management believes are consistent with what other market participants would use when pricing the instruments.
Freestanding Derivatives The determination of the estimated fair value of freestanding derivatives, when quoted market values are not available, is based on market standard valuation methodologies and inputs that management believes are consistent with what other market participants would use when pricing the instruments.
The estimated fair value of the reporting units tested can be impacted by unexpected changes in the legislative, regulatory and macroeconomic environment. Declines in the estimated fair value of our reporting units could result in goodwill impairments in future periods which could materially adversely affect our results of operations or financial position.
The estimated fair value of the reporting units tested can be impacted by unexpected changes in the legislative, regulatory and macroeconomic environment. Declines in the estimated fair value of our reporting units could result in goodwill impairments in future periods which could materially and adversely affect our results of operations or financial position.
Foreign currency fluctuations can result in significant variances in the financial statement line items.
Foreign currency fluctuations can result in significant variances in the financial statement line items.
Foreign currency fluctuations can result in significant variances in the financial statement line items.
Foreign currency fluctuations can result in significant variances in the financial statement line items.
Foreign currency fluctuations can result in significant variances in the financial statement line items.
Foreign currency fluctuations can result in significant variances in the financial statement line items.
We position our portfolio based on relative value and our view of the economy and financial markets. We maintain our focus on appropriate level of diversification and asset quality. We manage our investment portfolio using disciplined ALM principles, focusing on cash flow and duration to support our current and future liabilities.
We position our portfolio based on relative value and our view of the economy and financial markets. We maintain our focus on the appropriate level of diversification and asset quality. We manage our investment portfolio using disciplined ALM principles, focusing on cash flow and duration to support our current and future liabilities.
Expense ratio and direct expense ratio: • Expense ratio: other expenses, net of capitalization of DAC, divided by premiums, fees and other revenues. • Direct expense ratio: adjusted direct expenses, divided by adjusted premiums, fees and other revenues.
Expense ratio and direct expense ratio: • Expense ratio : other expenses, net of capitalization of DAC, divided by premiums, fees and other revenues. • Direct expense ratio : direct expenses divided by adjusted premiums, fees and other revenues.
Direct expenses are comprised of employee-related costs, third-party staffing costs, and general and administrative expenses. • Direct expense ratio, excluding total notable items related to direct expenses and pension risk transfers: adjusted direct expenses, excluding total notable items related to direct expenses, divided by adjusted premiums, fees and other revenues, excluding pension risk transfers.
Direct expenses are comprised of employee-related costs, third-party staffing costs, and general and administrative expenses. • Direct expense ratio, excluding total notable items related to direct expenses and pension risk transfers : direct expenses, excluding total notable items related to direct expenses, divided by adjusted premiums, fees and other revenues, excluding pension risk transfers.
Risk management is overseen and conducted through multiple Board and senior management risk committees (financial and non-financial). The risk committees are established at the enterprise, regional and local levels, as needed, to oversee capital and risk positions, approve ALM strategies and limits, and establish certain corporate risk standards and policies.
Risk management is overseen and conducted through multiple Board and senior management risk committees (financial and non-financial). The risk committees are established at the enterprise, regional and local levels, as needed, to oversee capital and risk positions, approve ALM strategies and risk limits, and establish certain corporate risk standards and policies.
For additional discussion on gross margin and interest rate assumptions, as well as the potential impact of low interest rates, see “— Results of Operations — Consolidated Results — Year Ended December 31, 2024 Compared with the Year Ended December 31, 2023 — Actuarial Assumption Review”; “Risk Factors — Economic Environment and Capital Markets Risks — We May Face Difficult Economic Conditions — Interest Rate Risks”; “Risk Factors — Business Risks — We May Be Required to Impair VOBA, VODA or VOCRA”; “Risk Factors — Business Risks — We May Be Required to Recognize an Impairment of Our Goodwill or Other Long-Lived Assets or to Establish a Valuation Allowance Against Our Deferred Income Tax Assets”; and “Risk Factors — Business Risks — We May Face Volatility, Higher Risk Management Costs, and Increased Counterparty Risk Due to Guarantees Within Certain of Our Products.” Impact of a Rising Interest Rate Environment Periods of rising U.S. interest rates may cause us to: • Reinvest investment proceeds in higher yielding assets and experience lower frequency prepayment or redemption of assets in our portfolio; • Decrease the value of our reserves related to policy liabilities; • Increase interest expense, change pension and other post-retirement benefit calculations, and change derivative cash flows and market values; and • Change our product offerings, design features, crediting rates and sales mix.
For additional discussion on gross margin and interest rate assumptions, as well as the potential impact of low interest rates, see “— Results of Operations — Consolidated Results — Year Ended December 31, 2025 Compared with the Year Ended December 31, 2024 — Actuarial Assumption Review”; “Risk Factors — Economic Environment and Capital Markets Risks — We May Face Difficult Economic Conditions — Interest Rate Risks”; “Risk Factors — Business Risks — We May Be Required to Impair VODA, VOBA, or VOCRA”; “Risk Factors — Business Risks — We May Be Required to Recognize an Impairment of Our Goodwill or Other Long-Lived Assets or to Establish a Valuation Allowance Against Our Deferred Income Tax Assets”; and “Risk Factors — Business Risks — We May Face Volatility, Higher Risk Management Costs, and Increased Counterparty Risk Due to Guarantees Within Certain of Our Products.” Impact of a Rising Interest Rate Environment Periods of rising U.S. interest rates may cause us to: • Reinvest investment proceeds in higher yielding assets and experience lower frequency prepayment or redemption of assets in our portfolio; • Decrease the value of our reserves related to policy liabilities; • Increase interest expense, change pension and other post-retirement benefit calculations, and change derivative cash flows and market values; and • Change our product offerings, design features, crediting rates and sales mix.
Adjusted Earnings - Increased $339 million on a reported basis, primarily due to the following business drivers: Foreign Currency - Decreased adjusted earnings by $34 million: • Japanese yen and Korean won weakened against the U.S. dollar Market Factors - Increased adjusted earnings by $193 million: • Variable investment income increased - higher returns on private equity funds • Recurring investment income increased - higher yields on fixed income securities Partially offset by: • Higher average interest crediting rates on investment-type and certain insurance products Underwriting and Other Insurance Adjustments - Increased adjusted earnings by $89 million: • Higher surrender charges in Japan • Favorable change from refinements to certain insurance assets and liabilities in both years Taxes - Increased adjusted earnings by $41 million: • Favorable change in Japan - lower premium tax due to lower sales and tax benefits from higher foreign earnings taxed at lower rates in 2024 • Favorable change in Korea - tax benefits due to lower dividend withholding tax as a result of a rate decrease and a tax audit settlement in 2024 Notable Items - Increased adjusted earnings by $53 million on a reported basis: • 2024 notable item - unfavorable impact of $41 million - actuarial assumption review • 2023 notable item - unfavorable impact of $94 million - actuarial assumption review 72 Table of Contents Latin America Business Overview.
Adjusted Earnings - Increased $339 million on a reported basis, primarily due to the following business drivers: Foreign Currency - Decreased adjusted earnings by $34 million: • Japanese yen and Korean won weakened against the U.S. dollar Market Factors - Increased adjusted earnings by $193 million: • Variable investment income increased - higher returns on private equity funds • Recurring investment income increased - higher yields on fixed income securities Partially offset by: • Higher average interest crediting rates on investment-type and certain insurance products Underwriting and Other Insurance Adjustments - Increased adjusted earnings by $89 million: • Higher surrender charges in Japan • Favorable change from refinements to certain insurance assets and liabilities in both years Taxes - Increased adjusted earnings by $41 million: • Favorable change in Japan - lower premium tax due to lower sales and tax benefits from higher foreign earnings taxed at lower rates in 2024 • Favorable change in Korea - tax benefits due to lower dividend withholding tax as a result of a rate decrease and a tax audit settlement in 2024 Notable Items - Increased adjusted earnings by $53 million on a reported basis: • 2024 notable item - unfavorable impact of $41 million - actuarial assumption review • 2023 notable item - unfavorable impact of $94 million - actuarial assumption review 79 Table of Contents Latin America Business Overview.
Adjusted Earnings - Decreased $41 million primarily due to the following business drivers: Market Factors - Decreased adjusted earnings by $97 million: • Higher average interest crediting rates primarily on investment-type products Largely offset by: • Variable investment income increased - higher returns on private equity funds • Recurring investment income increased - higher yields on fixed income securities and mortgage loans, partially offset by lower income on derivatives Volume Growth - Increased adjusted earnings by $62 million: • Positive flows from pension risk transfer transactions and funding agreement issuances resulted in higher average invested assets Largely offset by: • Increase in interest credited expenses on long duration products Underwriting and Other Insurance Adjustments - Decreased adjusted earnings by $32 million: • Unfavorable refinements to certain insurance liabilities Expenses - Decreased adjusted earnings by $39 million: • Higher expenses, including certain employee-related costs Notable Items - Increased adjusted earnings by $43 million: • 2024 notable item - favorable impact of $104 million - actuarial assumption review • 2023 notable item - favorable impact of $61 million - actuarial assumption review 71 Table of Contents Asia Business Overview.
Adjusted Earnings - Decreased $41 million primarily due to the following business drivers: Market Factors - Decreased adjusted earnings by $97 million: • Higher average interest crediting rates primarily on investment-type products Largely offset by: • Variable investment income increased - higher returns on private equity funds • Recurring investment income increased - higher yields on fixed income securities and mortgage loans, partially offset by lower income on derivatives Volume Growth - Increased adjusted earnings by $62 million: • Positive flows from pension risk transfer transactions and funding agreement issuances resulted in higher average invested assets Largely offset by: • Increase in interest credited expenses on long-duration products Underwriting and Other Insurance Adjustments - Decreased adjusted earnings by $32 million: • Unfavorable refinements to certain insurance liabilities Expenses - Decreased adjusted earnings by $39 million: • Higher expenses, including certain employee-related costs Notable Items - Increased adjusted earnings by $43 million: • 2024 notable item - favorable impact of $104 million - actuarial assumption review • 2023 notable item - favorable impact of $61 million - actuarial assumption review 77 Table of Contents Asia Business Overview.
Adjusted Earnings - Increased $41 million on a reported basis, primarily due to the following business drivers: Foreign Currency - Decreased adjusted earnings by $49 million: • Chilean and Mexican peso weakened against the U.S. dollar Volume Growth - Increased adjusted earnings by $95 million: • Strong sales of single premium immediate annuities in Chile resulted in higher average invested assets • Higher sales, primarily in Mexico and Chile Partially offset by: • Increase in interest credited expenses on long duration products Underwriting and Other Insurance Adjustments - Increased adjusted earnings by $22 million: • Favorable refinements to certain insurance liabilities primarily in Chile and Mexico Expenses - Decreased adjusted earnings by $13 million: • Higher corporate-related and various other operating expenses, primarily in Mexico and Chile Other - Decreased adjusted earnings by $15 million, includes • Higher amortization of DAC Notable Items - Increased adjusted earnings by $4 million: • 2024 notable item - favorable impact of $4 million - actuarial assumption review 73 Table of Contents EMEA Business Overview .
Adjusted Earnings - Increased $41 million on a reported basis, primarily due to the following business drivers: Foreign Currency - Decreased adjusted earnings by $49 million: • Chilean and Mexican peso weakened against the U.S. dollar Volume Growth - Increased adjusted earnings by $95 million: • Strong sales of single premium immediate annuities in Chile resulted in higher average invested assets • Higher sales, primarily in Mexico and Chile Partially offset by: • Increase in interest credited expenses on long-duration products Underwriting and Other Insurance Adjustments - Increased adjusted earnings by $22 million: • Favorable refinements to certain insurance liabilities primarily in Chile and Mexico Expenses - Decreased adjusted earnings by $13 million: • Higher corporate-related and various other operating expenses, primarily in Mexico and Chile Other - Decreased adjusted earnings by $15 million, includes • Higher amortization of DAC Notable Items - Increased adjusted earnings by $4 million: • 2024 notable item - favorable impact of $4 million - actuarial assumption review 81 Table of Contents EMEA Business Overview .
We establish portfolio guidelines that define ranges and limits related to asset allocation, interest rate risk, liquidity, concentration and other risks for each major business segment, legal entity or insurance product group. These guidelines support implementation of investment strategies used to adequately fund our liabilities within acceptable levels of risk.
We establish portfolio guidelines that define ranges and limits related to asset allocation, interest rate risk, liquidity, concentration and other risks for each major business segment, legal entity and insurance product group. These guidelines support implementation of investment strategies used to adequately fund our liabilities within acceptable levels of risk.
Additional details regarding certain of our primary sources of liquidity and capital are included in the Notes to the Consolidated Financial Statements referenced in “— Overview” and are discussed below. The diversity of our global funding sources enhances our funding flexibility, limits dependence on any one market or source of funds and generally lowers the cost of funds.
Additional details regarding certain of our primary sources and uses of liquidity and capital are included in the Notes to the Consolidated Financial Statements referenced in “— Overview” and are discussed below. The diversity of our global funding sources enhances our funding flexibility, limits dependence on any one market or source of funds and generally lowers the cost of funds.
For such contracts, original assumptions developed at the time of issue are locked-in and used in all future liability calculations. An additional liability would be required if the resulting liabilities are not adequate to provide for future benefits and expenses (i.e., there is a premium deficiency).
For such contracts, original assumptions developed at the time of issue are locked-in and used in all future liability calculations. An additional reserve would be required if the resulting liabilities are not adequate to provide for future benefits and expenses (i.e., there is a premium deficiency).
Adjusted Earnings - Decreased $49 million primarily due to the following business drivers: Market Factors - Decreased adjusted earnings by $27 million: • Recurring investment income decreased - lower income on derivatives, partially offset by higher yields on fixed income securities Volume Growth - Increased adjusted earnings by $18 million: • Growth in both core and voluntary products Underwriting and Other Insurance Adjustments - Increased adjusted earnings by $88 million: • Favorable mortality - primarily due to lower claims incidence in our life business • Favorable change from refinements to certain insurance and other liabilities in both years Partially offset by: • Unfavorable morbidity - (i) higher incidence in the accident & health business, (ii) higher claims in vision, and (iii) higher utilization and the impact of prior year development in dental, partially offset by (a) favorable claims experience and rate actions in our pet insurance business and (b) higher recoveries and a favorable reserve adjustment in 2024 in our disability business Expenses - Decreased adjusted earnings by $43 million: • Higher legal plan utilization and higher technology, employee-related and various other operating expenses exceeded the corresponding increase in adjusted premiums, fees and other revenues Notable Items - Decreased adjusted earnings by $85 million: • 2024 notable items - unfavorable impact of $58 million - actuarial assumption review and other insurance adjustments, which includes an unfavorable refinement on certain life policies • 2023 notable item - favorable impact of $27 million - actuarial assumption review 70 Table of Contents Retirement & Income Solutions Business Overview.
Adjusted Earnings - Decreased $49 million primarily due to the following business drivers: Market Factors - Decreased adjusted earnings by $27 million: • Recurring investment income decreased - lower income on derivatives, partially offset by higher yields on fixed income securities Volume Growth - Increased adjusted earnings by $18 million: • Growth in both core and voluntary products Underwriting and Other Insurance Adjustments - Increased adjusted earnings by $88 million: • Favorable mortality - primarily due to lower claims incidence in our life business • Favorable change from refinements to certain insurance and other liabilities in both years Partially offset by: • Unfavorable morbidity - (i) higher incidence in the accident & health business, (ii) higher claims in vision, and (iii) higher utilization and the impact of prior year development in dental, partially offset by (a) favorable claims experience and rate actions in our pet insurance business and (b) higher recoveries and a favorable reserve adjustment in 2024 in our disability business Expenses - Decreased adjusted earnings by $43 million: • Higher legal plan utilization and higher technology, employee-related and various other operating expenses exceeded the corresponding increase in adjusted premiums, fees and other revenues Notable Items - Decreased adjusted earnings by $85 million: • 2024 notable items - unfavorable impact of $58 million - actuarial assumption review and other insurance adjustments, which includes an unfavorable refinement on certain life policies • 2023 notable item - favorable impact of $27 million - actuarial assumption review Retirement & Income Solutions Business Overview.
See “— Summary of Critical Accounting Estimates — Derivatives” for further information on the estimates and assumptions that affect derivatives. See also “Quantitative and Qualitative Disclosures About Market Risk — Management of Market Risk Exposures — Hedging Activities” for more information about our use of derivatives by major hedge program.
See “— Summary of Critical Accounting Estimates — Freestanding Derivatives” for further information on the estimates and assumptions that affect derivatives. See also “Quantitative and Qualitative Disclosures About Market Risk — Management of Market Risk Exposures — Hedging Activities” for more information about our use of derivatives by major hedge program.
Such dividends are subject to local insurance regulatory requirements, as discussed in “— Liquidity and Capital Sources — Dividends from Subsidiaries.” See “— Consolidated Company Outlook” for the targeted level of liquid assets at the holding companies.
Such dividends are subject to local insurance regulatory requirements, as discussed in “— Liquidity and Capital Sources and Uses — Dividends from Subsidiaries.” See “— Consolidated Company Outlook” for the targeted level of liquid assets at the holding companies.
See Note 12 of the Notes to the Consolidated Financial Statements for: • A comprehensive description of the nature of our derivatives, including the strategies for which derivatives are used in managing various risks. • Information about the primary underlying risk exposure, gross notional amount, and estimated fair value of our derivatives by type of hedge designation, excluding embedded derivatives held at December 31, 2024 and 2023. • The statement of operations effects of derivatives in net investments in foreign operations, cash flow, fair value, or nonqualifying hedging relationships for the years ended December 31, 2024, 2023 and 2022.
See Note 12 of the Notes to the Consolidated Financial Statements for: • A comprehensive description of the nature of our derivatives, including the strategies for which derivatives are used in managing various risks. • Information about the primary underlying risk exposure, gross notional amount, and estimated fair value of our derivatives by type of hedge designation, excluding embedded derivatives held at December 31, 2025 and 2024. • The statement of operations effects of derivatives in net investments in foreign operations, cash flow, fair value, or nonqualifying hedging relationships for the years ended December 31, 2025, 2024 and 2023.
In addition to proactive management strategies, businesses within our Latin America, EMEA, and Asia (exclusive of our Japan business) segments help alleviate impacts to our consolidated results given their limited U.S. interest rate sensitivity.
In addition to proactive management strategies, businesses within our Latin America, EMEA, Asia (exclusive of our Japan business) and MIM segments help alleviate impacts to our consolidated results given their limited U.S. interest rate sensitivity.
The most critical estimates include those used in determining: (i) future policy benefit liabilities (“FPBs”), MRBs, and the accounting for reinsurance; (ii) estimated fair values of investments in the absence of quoted market values; (iii) investment allowance for credit loss (“ACL”) and impairments; (iv) estimated fair values of freestanding derivatives; (v) measurement of goodwill and related impairment; (vi) measurement of employee benefit plan liabilities; (vii) measurement of income taxes and the valuation of deferred tax assets; and (viii) liabilities for litigation and regulatory matters.
The most critical estimates include those used in determining: (i) future policy benefit liabilities (“FPBs”), MRBs, and reinsurance recoverables; (ii) estimated fair values of investments in the absence of quoted market values; (iii) investment allowance for credit loss (“ACL”) and impairments; (iv) estimated fair values of freestanding derivatives; (v) measurement of goodwill and related impairment; (vi) measurement of employee benefit plan liabilities; (vii) measurement of income taxes and the valuation of deferred tax assets; and (viii) liabilities for litigation and regulatory matters.
These ratings modifiers are generally assigned in connection with certain events such as potential mergers, acquisitions, dispositions or material changes in a company’s results, in order for the rating agency to perform its analysis to fully determine the rating implications of the event. Our insurer financial strength ratings at the date of this filing are indicated in the following table.
These ratings modifiers are generally assigned in connection with certain events such as potential mergers, acquisitions, dispositions or material changes in a company’s results, in order for the rating agency to perform its analysis to fully determine the rating implications of the event. 109 Table of Contents Our insurer financial strength ratings at the date of this filing are indicated in the following table.
Market conditions including changes in interest rates, equity indices, market volatility and foreign currency exchange rates, variations in actuarial assumptions regarding policyholder behavior, mortality and risk margins related to non-capital market inputs, may result in significant fluctuations in the estimated fair value of the guarantees that could materially affect net income, and changes in our nonperformance risk could materially affect OCI.
Market conditions including changes in interest rates, equity indices, market volatility and foreign currency exchange rates, variations in actuarial assumptions regarding policyholder behavior, mortality and risk margins related to non-capital market inputs, may result in significant fluctuations in the estimated fair value of the guarantees that could materially affect net income, and changes in the Company’s nonperformance risk could materially affect OCI.
As shown in the following section, less than 1% of our fixed maturity securities AFS were valued using non-binding quotations from independent brokers at December 31, 2024. Senior management, independent of the trading and investing functions, is responsible for the oversight of control systems and valuation policies for securities, mortgage loans, real estate and derivatives.
As shown in the following section, less than 1% of our fixed maturity securities AFS were valued using non-binding quotations from independent brokers at December 31, 2025. Senior management, independent of the trading and investing functions, is responsible for the oversight of control systems and valuation policies for securities, mortgage loans, real estate and derivatives.
Best Fitch Moody’s S&P Ratings Structure “A++ (Superior)” to “S (Suspended)” “AAA (Exceptionally Strong)” to “C (Distressed)” “Aaa (Highest Quality)” to “C (Lowest Rated)” “AAA (Extremely Strong)” to “SD (Selective Default)” or “D (Default)” American Life Insurance Company NR NR A1 AA- 5th of 21 4th of 21 Metropolitan Life Insurance Company A+ AA- Aa3 AA- 2nd of 16 4th of 19 4th of 21 4th of 21 MetLife Insurance K.K.
Best Fitch Moody’s S&P Ratings Structure “A++ (Superior)” to “S (Suspended)” “AAA (Exceptionally Strong)” to “C (Distressed)” “Aaa (Highest Quality)” to “C (Lowest Rated)” “AAA (Extremely Strong)” to “SD (Selective Default)” or “D (Default)” American Life Insurance Company Not Rated Not Rated A1 AA- 5th of 21 4th of 21 Metropolitan Life Insurance Company A+ AA- Aa3 AA- 2nd of 16 4th of 19 4th of 21 4th of 21 MetLife Insurance K.K.
Our Latin America, EMEA, and Asia (exclusive of our Japan business) segments are excluded given their limited U.S. interest rate sensitivity.
Our Latin America, EMEA, Asia (exclusive of our Japan business) and MIM segments are excluded given their limited U.S. interest rate sensitivity.
While most of these contracts are either at or slightly above their minimum crediting rate, we use interest rate derivatives to manage the gross margin compression risk. 51 Table of Contents Our long-term care business experiences gross margin compression as we cannot reduce interest crediting rates for established claim reserves.
While most of these contracts are either at or slightly above their minimum crediting rate, we use interest rate derivatives to manage the gross margin compression risk. 52 Table of Contents Our long-term care business experiences gross margin compression as we cannot reduce interest crediting rates for established claim reserves.
See “— Consolidated Results — Adjusted Earnings Available to Common Shareholders.” Taxes - Favorable change in effective tax rate - 21% in 2024 compared to 26% in 2023: • 2024 effective tax rate on income before provision for income tax was equal to the U.S. statutory rate of 21% primarily due to tax benefits from: ◦ Non-taxable investment income ◦ Low income housing and other tax credits, partially offset by the impact of tax equity investments now accounted for under the proportional amortization method ◦ Corporate tax deduction for stock compensation Offset by tax charges from: ◦ Foreign earnings taxed at higher statutory rates than the U.S. statutory rate and foreign losses taxed at lower statutory rates ◦ Adjustments related to prior years’ taxes • 2023 effective tax rate on income before provision for income tax was 26% compared to the U.S. statutory rate of 21% primarily due to tax charges from: ◦ Foreign earnings taxed at higher statutory rates than the U.S. statutory rate and foreign losses taxed at lower statutory rates ◦ Non-taxable investment loss Partially offset by tax credits from: ◦ Low income housing and other tax credits ◦ Non-taxable investment income ◦ Corporate tax deduction for stock compensation __________________ (1) See “— Investments — Overview” and “— Investments — Investment Portfolio Results — Net Investment Gains (Losses)” for information regarding management of our investment portfolio.
See “— Consolidated Results — Adjusted Earnings Available to Common Shareholders.” Taxes - Favorable change in effective tax rate - 21% in 2024 compared to 26% in 2023: • 2024 effective tax rate on income before provision for income tax was equal to the U.S. statutory rate of 21% primarily due to tax benefits from: ◦ Non-taxable investment income ◦ Low income housing and other tax credits, partially offset by the impact of tax equity investments accounted for under the proportional amortization method in 2024 ◦ Corporate tax deduction for stock compensation Offset by tax charges from: ◦ Foreign earnings taxed at higher statutory rates than the U.S. statutory rate and foreign losses taxed at lower statutory rates ◦ Adjustments related to prior years’ taxes • 2023 effective tax rate on income before provision for income tax was 26% compared to the U.S. statutory rate of 21% primarily due to tax charges from: ◦ Foreign earnings taxed at higher statutory rates than the U.S. statutory rate and foreign losses taxed at lower statutory rates ◦ Non-taxable investment loss Partially offset by tax credits from: ◦ Low income housing and other tax credits 66 Table of Contents ◦ Non-taxable investment income ◦ Corporate tax deduction for stock compensation __________________ (1) See “— Investments — Overview” and “— Investments — Investment Portfolio Results — Net Investment Gains (Losses)” for information regarding management of our investment portfolio.
Adjusted Earnings - Increased $18 million on a reported basis, primarily due to the following business drivers: Foreign Currency - Decreased adjusted earnings by $12 million: • Turkish lira and Egyptian pound weakened against the U.S. dollar Market Factors - Increased adjusted earnings by $29 million: • Recurring investment income increased - higher yields on fixed income securities Volume Growth - Increased adjusted earnings by $51 million: • Increase in sales and business growth of: ◦ Credit life and pension businesses in Turkey and Romania ◦ Corporate solutions business in the Gulf, the U.K. and Egypt ◦ Accident & health business across the region Underwriting and Other Insurance Adjustments - Decreased adjusted earnings by $4 million: • Unfavorable change from refinements to certain insurance liabilities in both years Partially offset by: • Favorable underwriting experience across the region Expenses - Decreased adjusted earnings by $36 million: • Higher direct expenses, including employee-related costs and various other operating expenses across the region Taxes - Increased adjusted earnings by $13 million • Tax-related adjustments in both years Notable Items - Decreased adjusted earnings by $23 million on a reported basis: • 2024 notable item - unfavorable impact of $5 million - actuarial assumption review • 2023 notable items - favorable impact of $18 million - actuarial assumption review and other insurance adjustments 74 Table of Contents MetLife Holdings Business Overview.
Adjusted Earnings - Increased $18 million on a reported basis, primarily due to the following business drivers: Foreign Currency - Decreased adjusted earnings by $12 million: • Turkish lira and Egyptian pound weakened against the U.S. dollar Market Factors - Increased adjusted earnings by $29 million: • Recurring investment income increased - higher yields on fixed income securities Volume Growth - Increased adjusted earnings by $51 million: • Increase in sales and business growth of: ◦ Credit life and pension businesses in Turkey and Romania ◦ Corporate solutions business in the Gulf, the U.K. and Egypt ◦ Accident & health business across the region Underwriting and Other Insurance Adjustments - Decreased adjusted earnings by $4 million: • Unfavorable change from refinements to certain insurance liabilities in both years Partially offset by: • Favorable underwriting experience across the region Expenses - Decreased adjusted earnings by $36 million: • Higher direct expenses, including employee-related costs and various other operating expenses across the region Taxes - Increased adjusted earnings by $13 million • Tax-related adjustments in both years Notable Items - Decreased adjusted earnings by $23 million on a reported basis: • 2024 notable item - unfavorable impact of $5 million - actuarial assumption review • 2023 notable items - favorable impact of $18 million - actuarial assumption review and other insurance adjustments MetLife Investment Management Business Overview.
Future Adoption of Accounting Pronouncements See Note 1 of the Notes to the Consolidated Financial Statements. 107 Table of Contents Non-GAAP and Other Financial Disclosures In this report, the Company presents certain measures of its performance on a consolidated and segment basis that are not calculated in accordance with GAAP.
Future Adoption of Accounting Pronouncements See Note 1 of the Notes to the Consolidated Financial Statements. 118 Table of Contents Non-GAAP and Other Financial Disclosures In this report, the Company presents certain measures of its performance on a consolidated and segment basis that are not calculated in accordance with GAAP.
The valuation of these MRBs also includes an adjustment for our nonperformance risk and risk margins for non-capital market inputs.
The valuation of these MRBs also includes an adjustment for nonperformance risk and risk margins for non-capital market inputs.
Additional details regarding certain of MetLife, Inc.’s primary uses of liquidity and capital are included in “— The Company — Liquidity and Capital Uses,” the Notes to the Consolidated Financial Statements referenced in “— Overview” and are discussed below. 106 Table of Contents Based on our analysis and comparison of our current and future cash inflows from the dividends we receive from subsidiaries that are permitted to be paid without prior insurance regulatory approval, our investment portfolio and other cash flows and anticipated access to the capital markets, we believe there will be sufficient liquidity and capital to enable MetLife, Inc. to make payments on debt, pay cash dividends on its common and preferred stock, contribute capital to its subsidiaries, repurchase its common stock and certain of its other securities, pay all general operating expenses and meet its cash needs under current market conditions and reasonably possible stress scenarios.
Additional details regarding certain of MetLife, Inc.’s primary sources of liquidity and capital are included in “— The Company — Liquidity and Capital Sources and Uses” and the Notes to the Consolidated Financial Statements referenced in “— Overview” and are discussed below. 116 Table of Contents Based on our analysis and comparison of our current and future cash inflows from the dividends we receive from subsidiaries that are permitted to be paid without prior insurance regulatory approval, our investment portfolio and other cash flows and anticipated access to the capital markets, we believe there will be sufficient liquidity and capital to enable MetLife, Inc. to make payments on debt, pay cash dividends on its common and preferred stock, contribute capital to its subsidiaries, repurchase its common stock and certain of its other securities, pay all general operating expenses and meet its cash needs under current market conditions and reasonably possible stress scenarios.
Liabilities for unpaid claims are estimated based upon our historical experience and other actuarial assumptions that consider the effects of current developments, anticipated trends and risk management programs. 53 Table of Contents Traditional non-participating long-duration and limited-payment contracts comprise the majority of MetLife’s FPBs, inclusive of deferred profit liabilities, as described in Note 4 of the Notes to the Consolidated Financial Statements.
Liabilities for unpaid claims are estimated based upon our historical experience and other actuarial assumptions that consider the effects of current developments, anticipated trends and risk management programs. Traditional non-participating long-duration and limited-payment contracts comprise the majority of MetLife’s FPBs, inclusive of deferred profit liabilities, as described in Note 4 of the Notes to the Consolidated Financial Statements.
(2) All sensitivities exclude potential changes in our future premium rate assumptions. (3) For products which are subject to morbidity risk, MetLife applied sensitivities to the incidence rate assumptions only. (4) For MetLife Holdings long-term care products, the lapse impacts include mortality as both mortality and lapse result in termination of these contracts without any additional benefit payment.
(2) All sensitivities exclude potential changes in our future premium rate assumptions. (3) For products which are subject to morbidity risk, MetLife applied sensitivities to the incidence rate assumptions only. (4) For long-term care and individual disability products, the lapse impacts include mortality as both mortality and lapse result in termination of these contracts without any additional benefit payment.
(2) Includes primarily securities collateralized by broadly syndicated bank loans. 88 Table of Contents CMBS Our CMBS portfolio is comprised primarily of conduit, single asset and single borrower securities. Conduit securities are collateralized by many commercial mortgage loans and are broadly diversified by property type, borrower and geography.
(2) Includes primarily securities collateralized by broadly syndicated bank loans. 98 Table of Contents CMBS Our CMBS portfolio is comprised primarily of conduit, single asset and single borrower securities. Conduit securities are collateralized by many commercial mortgage loans and are broadly diversified by property type, borrower and geography.
See Note 9 of the Notes to the Consolidated Financial Statements for additional information on our reinsurance programs. Traditional participating contracts comprise a significant portion of MetLife’s FPBs, as described in Note 4 of the Notes to the Consolidated Financial Statements.
See Note 9 of the Notes to the Consolidated Financial Statements for additional information on our reinsurance transactions. Traditional participating contracts comprise a significant portion of MetLife’s FPBs, as described in Note 4 of the Notes to the Consolidated Financial Statements.
This portfolio did not have any exposure to any single issuer in excess of 1% of total investments at either December 31, 2024 or 2023. The top 10 holdings comprised 1% of total investments at both December 31, 2024 and 2023.
This portfolio did not have any exposure to any single issuer in excess of 1% of total investments at either December 31, 2025 or 2024. The top 10 holdings comprised 1% of total investments at both December 31, 2025 and 2024.
In our group life and disability businesses, premiums increase as compensation levels of our customers’ employees increase. However, during inflationary periods with rising interest rates, the value of fixed income investments falls which could increase realized and unrealized losses, resulting in additional deferred tax assets that may not be realizable.
In our group life and disability businesses, premiums increase as compensation levels of our customers’ employees increase. For example, during inflationary periods with rising interest rates, the value of fixed income investments falls which could increase realized and unrealized losses, resulting in additional deferred tax assets that may not be realizable.
This provides repricing flexibility to mitigate the negative impact of reinvesting in lower yielding assets. 50 Table of Contents Our retained asset accounts experience gross margin compression due to minimum crediting rate guarantees. Additionally, we experience gross margin compression from our disability policy claim reserves for which crediting rates cannot be reduced.
This provides repricing flexibility to mitigate the negative impact of reinvesting in lower yielding assets. Our retained asset accounts experience gross margin compression due to minimum crediting rate guarantees. Additionally, we experience gross margin compression from our disability policy claim reserves for which crediting rates cannot be reduced.
Our intent is to match the timing and amount of liability cash outflows with invested assets that have cash inflows of comparable timing and amount, while optimizing risk-adjusted investment income and risk-adjusted total return. Our investment portfolio is heavily weighted toward fixed income investments, with the vast majority of our portfolio invested in fixed maturity securities AFS and mortgage loans.
Our intent is to match the timing and amount of liability cash outflows with invested assets that have cash inflows of comparable timing and amount, while optimizing risk-adjusted investment income and risk-adjusted total return. Our investment portfolio is heavily weighted toward fixed income investments, with most of our portfolio invested in fixed maturity securities AFS and mortgage loans.
Based on our investment portfolios and expected cash flows, only a small portion of invested assets are subject to reinvestment risk through 2027. Rising Interest Rate Scenario .
Based on our investment portfolios and expected cash flows, only a small portion of invested assets are subject to reinvestment risk through 2028. Rising Interest Rate Scenario .
If no NAIC designation is available, then, as permitted by the NAIC, an internally developed designation is used. NAIC designations for non-agency RMBS and CMBS are based on a modeling methodology that estimates security level expected losses under a variety of economic scenarios.
If no NAIC designation is available, then, as permitted by the NAIC, an internally developed designation is used. 93 Table of Contents NAIC designations for non-agency RMBS and CMBS are based on a modeling methodology that estimates security level expected losses under a variety of economic scenarios.
In addition, adjusted earnings available to common shareholders excludes the impact of preferred stock redemption premium, which is reported as a reduction to net income (loss) available to MetLife, Inc.’s common shareholders. 108 Table of Contents Return on equity, allocated equity and related measures: • Total MetLife, Inc.’s adjusted common stockholders’ equity : total MetLife, Inc.’s common stockholders’ equity, excluding unrealized investment gains (losses), net of related offsets, deferred gains (losses) on derivatives, future policy benefits discount rate remeasurement gains (losses), MRBs instrument-specific credit risk remeasurement gains (losses) and defined benefit plans adjustment components of AOCI (AOCI other than FCTA) and the estimated fair value of certain ceded reinsurance-related embedded derivatives, all net of income tax. • Total MetLife, Inc.’s adjusted common stockholders’ equity, excluding total notable items : total MetLife, Inc.’s common stockholders’ equity, excluding unrealized investment gains (losses), net of related offsets, deferred gains (losses) on derivatives, future policy benefits discount rate remeasurement gains (losses), MRBs instrument-specific credit risk remeasurement gains (losses) and defined benefit plans adjustment components of AOCI (AOCI other than FCTA), the estimated fair value of certain ceded reinsurance-related embedded derivatives and total notable items, all net of income tax. • Return on MetLife, Inc.’s common stockholders’ equity : net income (loss) available to MetLife, Inc.’s common shareholders divided by MetLife, Inc.’s average common stockholders’ equity. • Adjusted return on MetLife, Inc.’s common stockholders’ equity : adjusted earnings available to common shareholders divided by MetLife, Inc.’s average adjusted common stockholders’ equity. • Adjusted return on MetLife, Inc.’s common stockholders’ equity, excluding total notable items : adjusted earnings available to common shareholders, excluding total notable items, divided by MetLife, Inc.’s average adjusted common stockholders’ equity, excluding total notable items. • Allocated equity : the portion of total MetLife, Inc.’s adjusted common stockholders’ equity that management allocates to each of its segments based on local capital requirements and economic capital.
In addition, adjusted earnings available to common shareholders excludes the impact of preferred stock redemption premium, which is reported as a reduction to net income (loss) available to MetLife, Inc.’s common shareholders. 119 Table of Contents Return on equity, allocated equity and related measures: • Total MetLife, Inc.’s adjusted common stockholders’ equity : total MetLife, Inc.’s common stockholders’ equity, excluding unrealized investment gains (losses), net of related offsets, deferred gains (losses) on derivatives, future policy benefits discount rate remeasurement gains (losses), MRBs instrument-specific credit risk remeasurement gains (losses) and defined benefit plans adjustment components of accumulated other comprehensive income (loss) (“AOCI”) and the estimated fair value of certain ceded reinsurance-related embedded derivatives, all net of income tax. • Total MetLife, Inc.’s adjusted common stockholders’ equity, excluding total notable items : total MetLife, Inc.’s common stockholders’ equity, excluding unrealized investment gains (losses), net of related offsets, deferred gains (losses) on derivatives, future policy benefits discount rate remeasurement gains (losses), MRBs instrument-specific credit risk remeasurement gains (losses) and defined benefit plans adjustment components of AOCI, the estimated fair value of certain ceded reinsurance-related embedded derivatives and total notable items, all net of income tax. • Return on MetLife, Inc.’s common stockholders’ equity : net income (loss) available to MetLife, Inc.’s common shareholders divided by MetLife, Inc.’s average common stockholders’ equity. • Adjusted return on MetLife, Inc.’s common stockholders’ equity : adjusted earnings available to common shareholders divided by MetLife, Inc.’s average adjusted common stockholders’ equity. • Adjusted return on MetLife, Inc.’s common stockholders’ equity, excluding total notable items : adjusted earnings available to common shareholders, excluding total notable items, divided by MetLife, Inc.’s average adjusted common stockholders’ equity, excluding total notable items. • Allocated equity : the portion of total MetLife, Inc.’s adjusted common stockholders’ equity that management allocates to each of its segments based on local capital requirements and economic capital.
Our real estate investment portfolio had appreciated to a $3.7 billion and $4.8 billion unrealized gain position at December 31, 2024 and 2023, respectively. We continuously monitor and assess our real estate investments for impairment when facts and circumstances indicate that the real estate may be impaired.
Our real estate investment portfolio had appreciated to a $3.4 billion and $3.7 billion unrealized gain position at December 31, 2025 and 2024, respectively. We continuously monitor and assess our real estate investments for impairment when facts and circumstances indicate that the real estate may be impaired.
Notable items represent a positive (negative) impact to adjusted earnings available to common shareholders. 109 Table of Contents • The Company uses a measure of free cash flow to facilitate an understanding of its ability to generate cash for reinvestment into its businesses or use in non-mandatory capital actions.
Notable items represent a positive (negative) impact to adjusted earnings available to common shareholders. • The Company uses a measure of free cash flow to facilitate an understanding of its ability to generate cash for reinvestment into its businesses or use in non-mandatory capital actions.
Notable items also include certain items regardless of the extent anticipated in the business plan, to help investors have a better understanding of MetLife’s results and to evaluate and forecast those results.
Notable items also include certain items regardless of the extent anticipated in the business plan, to help investors have a better understanding of the Company’s results and to evaluate and forecast those results.
Also, see Note 13 of the Notes to the Consolidated Financial Statements for additional information on the fair value measurement of MRBs. 56 Table of Contents Estimated Fair Value of Investments The estimated fair values of our investments are based on unadjusted quoted prices for identical investments in active markets that are readily and regularly obtainable.
Also, see Note 13 of the Notes to the Consolidated Financial Statements for additional information on the fair value measurement of MRBs. Estimated Fair Value of Investments The estimated fair values of our investments are based on unadjusted quoted prices for identical investments in active markets that are readily and regularly obtainable.
The methodologies, assumptions and inputs utilized are described in Note 13 of the Notes to the Consolidated Financial Statements. For the vast majority of our investments, sensitivity analysis regarding unobservable inputs is not necessary or appropriate, as they are valued using quoted prices, as described above.
The methodologies, assumptions and inputs utilized are described in Note 13 of the Notes to the Consolidated Financial Statements. For most of our investments, sensitivity analysis regarding unobservable inputs is not necessary or appropriate, as they are valued using quoted prices, as described above.
Adjusted premiums, fees and other revenues, net of foreign currency fluctuations, increased $1.2 billion, or 2%, compared to 2023, primarily due to growth in both core and voluntary products in the Group Benefits segment and strong sales and solid persistency across the region in the Latin America segment, partially offset by the expected decline in the MetLife Holdings segment from business run-off.
Adjusted premiums, fees and other revenues, net of foreign currency fluctuations, increased $1.2 billion, or 2%, compared to 2023, primarily due to growth in both core and voluntary products in the Group Benefits segment and strong sales and solid persistency across the region in the Latin America segment, partially offset by the decline in Corporate & Other from business run-off.
Changes in tax laws and/or statutory tax rates in countries in which we operate could have an impact on our valuation of net deferred tax assets.
Changes in tax laws or interpretations of such laws and/or statutory tax rates in countries in which we operate could have an impact on our valuation of net deferred tax assets.
The portion of these properties located in Japan, Washington, D.C. and Georgia were 28%, 9% and 8%, respectively, at December 31, 2024, at carrying value. Other Limited Partnership Interests Other limited partnership interests are comprised of investments in private funds, including private equity funds and hedge funds.
The portion of these properties located in Japan, Washington, D.C. and Georgia were 28%, 9% and 8%, respectively, at December 31, 2025, at carrying value. Other Limited Partnership Interests Other limited partnership interests are comprised of investments in private funds, including private equity funds.
In the absence of such market-based evidence, management’s best estimate is used. We have reviewed the significance and observability of inputs used in the valuation methodologies to determine the appropriate fair value hierarchy level for each of our securities.
In the absence of such market-based evidence, management’s best estimate is used. 92 Table of Contents We have reviewed the significance and observability of inputs used in the valuation methodologies to determine the appropriate fair value hierarchy level for each of our securities.
Given the amount of plan assets as of December 31, 2023, the beginning of the measurement year, if we had assumed an expected rate of return for both our pension and other postretirement benefit plans that was 100 basis points higher or 100 basis points lower than the rates we assumed, the change in our net periodic benefit costs in 2024 would have been as follows: Year Ended December 31, 2024 Increase/(Decrease) in Net Periodic Pension Cost Increase/(Decrease) in Net Other Postretirement Benefit Cost (In millions) Increase in expected rate of return by 100 bps $ (79) $ (13) Decrease in expected rate of return by 100 bps $ 79 $ 13 This table considers only changes in our assumed long-term rate of return given the level and mix of invested assets at the beginning of the year, without consideration of possible changes in any of the other assumptions described above that could ultimately accompany any changes in our assumed long-term rate of return.
Given the amount of plan assets as of December 31, 2024, the beginning of the measurement year, if we had assumed an expected rate of return for both our pension and other postretirement benefit plans that was 100 basis points higher or 100 basis points lower than the rates we assumed, the change in our net periodic benefit costs in 2025 would have been as follows: Year Ended December 31, 2025 Increase/(Decrease) in Net Periodic Pension Cost Increase/(Decrease) in Net Other Postretirement Benefit Cost (In millions) Increase in expected rate of return by 100 bps $ (76) $ (7) Decrease in expected rate of return by 100 bps $ 76 $ 7 The above table considers only changes in our assumed long-term rate of return given the level and mix of invested assets at the beginning of the year, without consideration of possible changes in any of the other assumptions described above that could ultimately accompany any changes in our assumed long-term rate of return.
The nonperformance risk adjustment, which is captured as a spread over the risk-free rate in determining the discount rate to discount the cash flows of the liability, is determined by taking into consideration publicly available information relating to spreads in the secondary market for MetLife, Inc.’s debt, including related credit default swaps.
For direct and assumed MRBs, the nonperformance risk adjustment, which is captured as a spread over the risk-free rate in determining the discount rate to discount the cash flows of the liability, is determined by taking into consideration publicly available information relating to spreads in the secondary market for MetLife, Inc.’s debt, including related credit default swaps.
If there had been a 1% increase in the global effective income tax rate, the change would have resulted in an approximate $ 132 million increase in the net deferred income tax asset balance at December 31, 2024. See Notes 1 and 22 of the Notes to the Consolidated Financial Statements for additional information on our income taxes.
If there had been a 1% increase in the global effective income tax rate, the change would have resulted in an approximate $98 million increase in the net deferred income tax asset balance at December 31, 2025. See Notes 1 and 22 of the Notes to the Consolidated Financial Statements for additional information on our income taxes.
See Note 24 of the Notes to the Consolidated Financial Statements for the amount of our unfunded investment commitments at December 31, 2024 and 2023.
See Note 24 of the Notes to the Consolidated Financial Statements for the amount of our unfunded investment commitments at December 31, 2025 and 2024.
Real Estate and Real Estate Joint Ventures Our real estate investments are comprised of wholly-owned properties, and interests in both real estate joint ventures and real estate funds which invest in a wide variety of properties and property types, consisting of single and multi-property projects, and are broadly diversified across multiple property types and geographies.
Real Estate and REJVs Our real estate investments are comprised of wholly-owned properties, and interests in both REJVs and real estate funds which invest in a wide variety of properties and property types, consisting of single and multi-property projects, and are broadly diversified across multiple property types and geographies.
Assuming (i) interest rates follow the observable forward yield curves as of December 31, 2024, including a 10-year U.S.
Assuming (i) interest rates follow the observable forward yield curves as of December 31, 2025, including a 10-year U.S.
We use interest rate derivatives to mitigate gross margin compression for both products. Gross margin compression is limited for our group disability products, which are generally renewable term policies allowing for crediting rate adjustments at renewal based on the retrospective experience rating and the prevailing interest rate assumptions. Rising Interest Rate Scenario .
We use interest rate derivatives to mitigate gross margin compression for both products. 51 Table of Contents Gross margin compression is limited for our group disability products, which are generally renewable term policies allowing for crediting rate adjustments at renewal based on the retrospective experience rating and the prevailing interest rate assumptions. Rising Interest Rate Scenario .
See “Business — Regulation — State Insurance Regulation” and “— MetLife, Inc. — Liquidity and Capital Sources — Dividends from Subsidiaries.” 97 Table of Contents Affiliated Reinsurance Transactions Certain subsidiaries of MetLife, Inc. cede certain products to various affiliated U.S. captive reinsurers and affiliated non-U.S. reinsurers for risk and capital management purposes, as well as to manage statutory reserve requirements.
See “Business — Regulation — State Insurance Regulation” and “— MetLife, Inc. — Liquidity and Capital Sources and Uses — Dividends from Subsidiaries.” Affiliated Reinsurance Transactions Certain subsidiaries of MetLife, Inc. cede certain products to various affiliated U.S. captive reinsurers and affiliated non-U.S. reinsurers for risk and capital management purposes, as well as to manage statutory reserve requirements.
For U.S. dollar denominated products, higher reinvestment rates on cash flows from these products more than offset the negative impacts of (i) higher interest crediting rates on such products, and (ii) lower income from derivative positions designed to protect against a low interest rate environment. MetLife Holdings Declining Interest Rate Scenario.
For U.S. dollar denominated products, higher reinvestment rates on cash flows from these products more than offset the negative impacts of (i) higher interest crediting rates on such products, and (ii) lower income from derivative positions designed to protect against a low interest rate environment.
Years Ended December 31, 2024 2023 (In millions) Adjusted earnings $ 1,606 $ 1,655 Adjusted premiums, fees and other revenues $ 24,870 $ 23,929 Year Ended December 31, 2024 Compared with the Year Ended December 31, 2023 Unless otherwise stated, all amounts discussed below are net of income tax.
Years Ended December 31, 2025 2024 2023 (In millions) Adjusted earnings $ 1,692 $ 1,606 $ 1,655 Adjusted premiums, fees and other revenues $ 25,469 $ 24,870 $ 23,929 Year Ended December 31, 2025 Compared with the Year Ended December 31, 2024 Unless otherwise stated, all amounts discussed below are net of income tax.
MetLife, Inc. lends funds, as necessary, through credit agreements or otherwise to its subsidiaries and affiliates, some of which are regulated, to meet their capital requirements or to provide liquidity. MetLife, Inc. had loans to subsidiaries outstanding of $285 million and $305 million at December 31, 2024 and 2023, respectively.
MetLife, Inc. lends funds, as necessary, through credit agreements or otherwise to its subsidiaries and affiliates, some of which are regulated, to meet their capital requirements or to provide liquidity. MetLife, Inc. had loans to subsidiaries outstanding of $0 and $285 million at December 31, 2025 and 2024, respectively.
The principal cash outflows come from repayments of debt and the collateral financing arrangement, payments of dividends on and repurchases or redemptions of MetLife, Inc.’s securities, withdrawals associated with PABs and the return of securities on loan. 99 Table of Contents Liquidity and Capital Sources Liquidity and capital are provided by a variety of global funding sources, including: (i) preferred and common stock; (ii) short-term debt, which includes commercial paper; (iii) long-term debt; collateral financing arrangement; and junior subordinated debt securities; (iv) PABs, which includes funding agreements; (v) credit and committed facilities; (vi) shelf registration statement, which permits the issuance of public debt, equity and hybrid securities and provides for automatic effectiveness upon filing and has no stated issuance capacity; and (vii) dispositions.
The principal cash outflows come from repayments of debt and the collateral financing arrangement, payments of dividends on and repurchases or redemptions of MetLife, Inc.’s securities, withdrawals associated with PABs and the return of securities on loan. 111 Table of Contents Liquidity and Capital Sources and Uses Liquidity and capital are provided by a variety of global funding sources, including: (i) preferred and common stock; (ii) short-term debt, which includes commercial paper; (iii) issuances of long-term debt, including subordinated debt securities, and collateral financing arrangement; (iv) PABs, which includes funding agreements; (v) credit and committed facilities; (vi) the facility agreement for senior debt issuances: (vii) shelf registration statement, which permits the issuance of public debt, equity and hybrid securities and provides for automatic effectiveness upon filing and has no stated issuance capacity; and (viii) dispositions.
Years Ended December 31, 2024 2023 (In millions) Adjusted earnings $ 1,621 $ 1,282 Adjusted earnings on a constant currency basis $ 1,621 $ 1,248 Adjusted premiums, fees and other revenues $ 6,757 $ 6,969 Adjusted premiums, fees and other revenues on a constant currency basis $ 6,757 $ 6,608 Year Ended December 31, 2024 Compared with the Year Ended December 31, 2023 Unless otherwise stated, all amounts discussed below are net of income tax and foreign currency fluctuations.
Years Ended December 31, 2025 2024 2023 (In millions) Adjusted earnings $ 1,702 $ 1,621 $ 1,282 Adjusted earnings on a constant currency basis $ 1,702 $ 1,605 $ 1,248 Adjusted premiums, fees and other revenues $ 6,768 $ 6,757 $ 6,969 Adjusted premiums, fees and other revenues on a constant currency basis $ 6,768 $ 6,723 $ 6,608 Year Ended December 31, 2025 Compared with the Year Ended December 31, 2024 Unless otherwise stated, all amounts discussed below are net of income tax and foreign currency fluctuations.
Years Ended December 31, 2024 2023 (In millions) Adjusted earnings $ 283 $ 265 Adjusted earnings on a constant currency basis $ 283 $ 253 Adjusted premiums, fees and other revenues $ 2,548 $ 2,346 Adjusted premiums, fees and other revenues on a constant currency basis $ 2,548 $ 2,271 Year Ended December 31, 2024 Compared with the Year Ended December 31, 2023 Unless otherwise stated, all amounts discussed below are net of income tax and foreign currency fluctuations.
Years Ended December 31, 2025 2024 2023 (In millions) Adjusted earnings $ 367 $ 283 $ 265 Adjusted earnings on a constant currency basis $ 367 $ 280 $ 253 Adjusted premiums, fees and other revenues $ 2,901 $ 2,548 $ 2,346 Adjusted premiums, fees and other revenues on a constant currency basis $ 2,901 $ 2,566 $ 2,271 Year Ended December 31, 2025 Compared with the Year Ended December 31, 2024 Unless otherwise stated, all amounts discussed below are net of income tax and foreign currency fluctuations.
(MetLife Japan) NR NR NR AA- 4th of 21 Metropolitan Tower Life Insurance Company A+ AA- Aa3 AA- 2nd of 16 4th of 19 4th of 21 4th of 21 __________________ NR = Not rated 98 Table of Contents Credit ratings indicate the rating agency’s opinion regarding a debt issuer’s ability to meet the terms of debt obligations in a timely manner.
(MetLife Japan) Not Rated Not Rated Not Rated AA- 4th of 21 Metropolitan Tower Life Insurance Company A+ AA- Aa3 AA- 2nd of 16 4th of 19 4th of 21 4th of 21 Credit ratings indicate the rating agency’s opinion regarding a debt issuer’s ability to meet the terms of debt obligations in a timely manner.
Our sub-prime RMBS portfolio consists predominantly of securities that were purchased at significant discounts to par value and discounts to the expected principal recovery value of these securities, and the vast majority are investment grade under NAIC designations. 87 Table of Contents ABS & CLO Our non-mortgage loan-backed structured securities are comprised of two broad categories of securitizations: ABS & CLO.
Our sub-prime RMBS portfolio consists predominantly of securities that were purchased at significant discounts to par value and discounts to the expected principal recovery value of these securities, and most are investment grade under NAIC designations. 97 Table of Contents ABS & CLO Our non-mortgage loan-backed structured securities are comprised of two broad categories of securitizations: ABS and CLO.
These risks arise from public and private fixed income assets, private loans including real estate, derivative transactions, bank deposits, reinsurance treaties and other similar contracts. • Insurance Risk: is the risk of loss or adverse change in insurance liabilities from changes in the level, trend, and volatility of insurance and policyholder behavior experience varying from best estimate assumptions.
These risks arise from public and private fixed income assets, private loans including real estate, derivative transactions, bank deposits, reinsurance agreements and other similar contracts. 123 Table of Contents • Insurance Risk: is the risk of loss or adverse change in insurance liabilities from changes in the level, trend, and volatility of insurance and policyholder behavior experience varying from best estimate assumptions.
Adjusted Earnings Available to Common Shareholders - Increased $271 million on a reported basis, primarily due to the following business drivers: Reinsurance Transaction - Decreased adjusted earnings available to common shareholders by approximately $170 million as a result of the reinsurance transaction that closed in November 2023 in the MetLife Holdings segment Foreign Currency - Decreased adjusted earnings available to common shareholders by $95 million, primarily in the Latin America and Asia segments Market Factors - Increased adjusted earnings available to common shareholders by $217 million: • Variable investment income increased - higher returns on private equity funds • Recurring investment income increased - higher yields on fixed income securities and mortgage loans, as well as the impact of tax equity investments now accounted for under the proportional amortization method, partially offset by lower income on derivatives and real estate investments Largely offset by: • Higher average interest crediting rates on investment-type and certain insurance products, primarily in the RIS and Asia segments Volume Growth - Increased adjusted earnings available to common shareholders by $194 million: • Higher average invested assets, primarily in the RIS and Latin America segments • Higher sales and business growth in the EMEA and Latin America segments Largely offset by: • Increase in interest credited expenses on long duration products, primarily in the RIS segment 67 Table of Contents Underwriting and Other Insurance Adjustments - Increased adjusted earnings available to common shareholders by $190 million: • Favorable mortality results, primarily in the Group Benefits segment, higher surrender charges in the Asia segment, and favorable morbidity experience in the MetLife Holdings segment, partially offset by unfavorable morbidity experience in the Group Benefits segment • Favorable change from refinements to certain insurance assets and other liabilities in both years, primarily in the Asia and Group Benefits segments, partially offset by an unfavorable change to certain insurance liabilities in the RIS segment Expenses - Decreased adjusted earnings available to common shareholders by $122 million: • Higher direct expenses, including employee-related and technology costs, in most of the segments • Higher litigation reserves Partially offset by: • Lower corporate-related expenses, primarily in Corporate & Other Taxes - Unfavorable change in effective tax rate - 24% in 2024 compared to 22% in 2023: • 2024 effective tax rate on income before provision for income tax was 24% compared to the U.S. statutory rate of 21% primarily due to tax charges from: ◦ Foreign earnings taxed at higher statutory rates than the U.S. statutory rate and foreign losses taxed at lower statutory rates Partially offset by tax benefits from: ◦ Non-taxable investment income ◦ Low income housing and other tax credits, partially offset by the impact of tax equity investments now accounted for under the proportional amortization method ◦ Corporate tax deduction for stock compensation • 2023 effective tax rate on income before provision for income tax was 22% compared to the U.S. statutory rate of 21% primarily due to tax charges from: ◦ Foreign earnings taxed at higher statutory rates than the U.S. statutory rate and foreign losses taxed at lower statutory rates Partially offset by tax benefits from: ◦ Low income housing and other tax credits ◦ Non-taxable investment income ◦ Corporate tax deduction for stock compensation 68 Table of Contents Notable Items - Actuarial assumption review and other insurance adjustments, litigation reserves and settlement costs, and tax adjustments - Increased adjusted earnings available to common shareholders by $88 million on a reported basis: Years Ended December 31, Variance 2024 2023 (In millions, net of income tax) Group Benefits $ (58) $ 27 $ (85) RIS 104 61 43 Asia (41) (94) 53 Latin America 4 — 4 EMEA (5) 18 (23) MetLife Holdings 12 2 10 Corporate & Other 10 (76) 86 Total $ 26 $ (62) $ 88 69 Table of Contents Segment Results and Corporate & Other Group Benefits Business Overview.
Adjusted Earnings Available to Common Shareholders - Increased $271 million on a reported basis, primarily due to the following business drivers: Reinsurance Transaction - Decreased adjusted earnings available to common shareholders by approximately $170 million as a result of the reinsurance transaction that closed in November 2023 in Corporate & Other Foreign Currency - Decreased adjusted earnings available to common shareholders by $95 million, primarily in the Latin America and Asia segments Market Factors - Increased adjusted earnings available to common shareholders by $232 million: • Variable investment income increased - higher returns on private equity funds • Recurring investment income increased - higher yields on fixed income securities and mortgage loans, as well as the impact of tax equity investments accounted for under the proportional amortization method in 2024, partially offset by lower income on derivatives and real estate investments Largely offset by: • Higher average interest crediting rates on investment-type and certain insurance products, primarily in the RIS and Asia segments Volume Growth - Increased adjusted earnings available to common shareholders by $189 million: • Higher average invested assets, primarily in the RIS and Latin America segments • Higher sales and business growth in the EMEA and Latin America segments Largely offset by: • Increase in interest credited expenses on long-duration products, primarily in the RIS segment Underwriting and Other Insurance Adjustments - Increased adjusted earnings available to common shareholders by $190 million: • Favorable mortality results, primarily in the Group Benefits segment, higher surrender charges in the Asia segment, and favorable morbidity experience in Corporate & Other, partially offset by unfavorable morbidity experience in the Group Benefits segment • Favorable change from refinements to certain insurance assets and other liabilities in both years, primarily in the Asia and Group Benefits segments, partially offset by an unfavorable change to certain insurance liabilities in the RIS segment 73 Table of Contents Expenses - Decreased adjusted earnings available to common shareholders by $132 million: • Higher direct expenses, including employee-related and technology costs, in most of the segments • Higher litigation reserves Partially offset by: • Lower corporate-related expenses, primarily in Corporate & Other Taxes - Unfavorable change in effective tax rate - 24% in 2024 compared to 22% in 2023: • 2024 effective tax rate on income before provision for income tax was 24% compared to the U.S. statutory rate of 21% primarily due to tax charges from: ◦ Foreign earnings taxed at higher statutory rates than the U.S. statutory rate and foreign losses taxed at lower statutory rates Partially offset by tax benefits from: ◦ Non-taxable investment income ◦ Low income housing and other tax credits, partially offset by the impact of tax equity investments accounted for under the proportional amortization method in 2024 ◦ Corporate tax deduction for stock compensation • 2023 effective tax rate on income before provision for income tax was 22% compared to the U.S. statutory rate of 21% primarily due to tax charges from: ◦ Foreign earnings taxed at higher statutory rates than the U.S. statutory rate and foreign losses taxed at lower statutory rates Partially offset by tax benefits from: ◦ Low income housing and other tax credits ◦ Non-taxable investment income ◦ Corporate tax deduction for stock compensation Notable Items - Actuarial assumption review and other insurance adjustments, litigation reserves and settlement costs, and tax adjustments - Increased adjusted earnings available to common shareholders by $88 million on a reported basis: Years Ended December 31, Variance 2024 2023 (In millions, net of income tax) Group Benefits $ (58) $ 27 $ (85) RIS 104 61 43 Asia (41) (94) 53 Latin America 4 — 4 EMEA (5) 18 (23) MIM — — — Corporate & Other 22 (74) 96 Total $ 26 $ (62) $ 88 74 Table of Contents Segment Results and Corporate & Other Group Benefits Business Overview.
(3) See MetLife, Inc. (Parent Company Only) Condensed Statements of Cash Flows included in Schedule II of the Financial Statement Schedules for information regarding the source of liquid assets from receipts on loans to subsidiaries (excluding interest) and the use of liquid assets related to the issuances of loans to subsidiaries (excluding interest).
(Parent Company Only) Condensed Statements of Cash Flows included in Schedule II of the Financial Statement Schedules for information regarding the source of liquid assets from receipts on loans to subsidiaries (excluding interest) and the use of liquid assets related to the issuances of loans to subsidiaries (excluding interest).
Certain subsidiaries have pledged assets to secure this debt. (2) Includes $348 million and $442 million of long-term debt that is non-recourse to MetLife, Inc. and MLIC, subject to customary exceptions, at December 31, 2024 and 2023, respectively. Certain investment subsidiaries have pledged assets to secure this debt.
Certain subsidiaries have pledged assets to secure this debt. (2) Includes $411 million and $348 million of long-term debt that is non-recourse to MetLife, Inc. and MLIC, subject to customary exceptions, at December 31, 2025 and 2024, respectively. Certain investment subsidiaries have pledged assets to secure this debt.
Reinsurance adjustments, unless otherwise stated, have been excluded from the amounts within the Investments sections of Management’s Discussion and Analysis of Financial Condition and Results of Operations. See Note 9 of the Notes to the Consolidated Financial Statements for more information about reinsurance.
Reinsurance activity, unless otherwise stated, has been excluded from the amounts within the Investments sections of Management’s Discussion and Analysis of Financial Condition and Results of Operations. See Note 9 of the Notes to the Consolidated Financial Statements for more information about reinsurance.
Investment Commitments We enter into the following commitments in the normal course of business for the purpose of enhancing the total return on our investment portfolio: mortgage loan commitments and commitments to fund partnerships, bank credit facilities, bridge loans and private corporate bond investments.
Investment Commitments We enter into the following commitments in the normal course of business for the purpose of enhancing the total return on our investment portfolio: mortgage loan commitments and commitments to fund partnership investments, bank credit facilities and private corporate bond investments.
For purposes of goodwill impairment testing, if the carrying value of a reporting unit exceeds its estimated fair value, an impairment charge would be recognized for the amount by which the carrying value exceeds the reporting unit’s fair value; however, the loss recognized would not exceed the total amount of goodwill allocated to that reporting unit.
For purposes of goodwill impairment testing, if the carrying value of a reporting unit exceeds its estimated fair value, an impairment charge would be recognized for the amount of the difference; however, the loss recognized would not exceed the total amount of goodwill allocated to that reporting unit.
Years Ended December 31, 2024 2023 (In millions) Adjusted earnings $ 881 $ 840 Adjusted earnings on a constant currency basis $ 881 $ 791 Adjusted premiums, fees and other revenues $ 5,936 $ 5,727 Adjusted premiums, fees and other revenues on a constant currency basis $ 5,936 $ 5,392 Year Ended December 31, 2024 Compared with the Year Ended December 31, 2023 Unless otherwise stated, all amounts discussed below are net of income tax and foreign currency fluctuations.
Years Ended December 31, 2025 2024 2023 (In millions) Adjusted earnings $ 798 $ 881 $ 840 Adjusted earnings on a constant currency basis $ 798 $ 846 $ 791 Adjusted premiums, fees and other revenues $ 6,606 $ 5,936 $ 5,727 Adjusted premiums, fees and other revenues on a constant currency basis $ 6,606 $ 5,751 $ 5,392 Year Ended December 31, 2025 Compared with the Year Ended December 31, 2024 Unless otherwise stated, all amounts discussed below are net of income tax and foreign currency fluctuations.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeDollar (3) Assuming a 10% Decrease in Equity Prices (4) (In millions) Assets Fixed maturity securities (5) $ 282,618 $ (20,311) $ (7,395) $ (97) Mortgage loans $ 84,217 (2,614) (719) — Other $ 46,213 (795) (887) (100) Total assets $ (23,720) $ (9,001) $ (197) Liabilities Future policy benefits $ 193,646 $ 11,924 $ 3,369 $ (9) Policyholder account balances $ 131,261 3,720 2,657 — Market risk benefits $ 2,581 733 18 (310) Short-term and long-term debt $ 14,963 1,167 158 — Other $ 30,453 399 134 3 Total liabilities $ 17,943 $ 6,336 $ (316) Derivative Instruments Interest rate $ 156,981 $ (459) $ (2,345) $ 86 $ — Foreign currency exchange rate $ 76,516 $ 1,257 (158) 837 — Credit $ 14,555 $ 143 (5) (4) — Equity market $ 16,496 $ 12 (16) (2) 408 Total derivative instruments $ (2,524) $ 917 $ 408 Net Change $ (8,301) $ (1,748) $ (105) Prior Year Net Change $ (8,610) $ (2,322) $ (3) Increase/(Decrease) $ 309 $ 574 $ (102) __________________ (1) The carrying value for FPBs, as reported on the consolidated balance sheets, was used for these sensitivities.
Biggest changeDollar (3) Assuming a 10% Decrease in Equity Prices (4) (In millions) Assets Fixed maturity securities (5) $ 319,142 $ (22,089) $ (7,925) $ (104) Mortgage loans $ 82,933 (1,952) (693) — Other $ 67,697 (1,869) (963) (67) Total assets $ (25,910) $ (9,581) $ (171) Liabilities Future policy benefits $ 208,855 $ 12,290 $ 3,442 $ (1) Policyholder account balances $ 141,863 4,108 2,843 — Market risk benefits $ 2,406 692 20 (309) Short-term and long-term debt $ 14,498 1,172 203 — Other $ 34,996 1,971 131 16 Total liabilities $ 20,233 $ 6,639 $ (294) Derivative Instruments Interest rate $ 139,370 $ (1,164) $ (1,776) $ 156 $ — Foreign currency exchange rate $ 78,952 $ 535 (70) 847 — Credit $ 11,612 $ 96 (2) (7) — Equity market $ 20,142 $ 30 (29) (7) 389 Total derivative instruments $ (1,877) $ 989 $ 389 Net Change $ (7,554) $ (1,953) $ (76) Prior Year Net Change $ (8,301) $ (1,748) $ (105) Increase/(Decrease) $ 747 $ (205) $ 29 __________________ (1) The carrying value for FPBs, as reported on the consolidated balance sheets, was used for these sensitivities.
We modeled the impact of changes (increases and decreases) in market rates and prices on the estimated fair values of our market sensitive assets and liabilities and present the results with the most adverse level of market risk impact to the Company for each of these market risk exposures as follows: • the net present values of our interest rate sensitive exposures resulting from a 100-basis point change (increase or decrease) in interest rates; • estimated fair values of our foreign currency exchange rate sensitive exposures due to a 10% change (appreciation or depreciation) in the value of the U.S. dollar compared to all other currencies; and • the estimated fair value of our equity market sensitive exposures due to a 10% change (increase or decrease) in equity market prices. 116 Table of Contents The sensitivity analysis is an estimate and should not be viewed as predictive of our future financial performance.
We modeled the impact of changes (increases and decreases) in market rates and prices on the estimated fair values of our market sensitive assets and liabilities and present the results with the most adverse level of market risk impact to the Company for each of these market risk exposures as follows: • the net present values of our interest rate sensitive exposures resulting from a 100-basis point change (increase or decrease) in interest rates; • estimated fair values of our foreign currency exchange rate sensitive exposures due to a 10% change (appreciation or depreciation) in the value of the U.S. dollar compared to all other currencies; and • the estimated fair value of our equity market sensitive exposures due to a 10% change (increase or decrease) in equity market prices. 127 Table of Contents The sensitivity analysis is an estimate and should not be viewed as predictive of our future financial performance.
Limitations related to this sensitivity analysis include: • liabilities do not include $18.9 billion of other policy-related balances largely consisting of claims, unearned revenue liabilities and policyholder dividends; • the analysis excludes real estate holdings, private equity and hedge fund holdings; • the market risk information is limited by the assumptions and parameters established in creating the related sensitivity analysis, including the impact of prepayment rates on mortgage loans; • sensitivities do not include the impact on asset or liability valuation of changes in market liquidity or changes in market credit spreads; • foreign currency exchange rate risk is not isolated for certain MRBs for variable annuities with guaranteed minimum benefits, as the risk on these instruments is reflected as equity; • the impact on reported earnings may be materially different from the change in market values, most notably for fixed maturity securities AFS, mortgage loans, FPBs, and derivatives that qualify for hedge accounting; and • the model assumes that the composition of assets and liabilities remains unchanged throughout the period.
Limitations related to this sensitivity analysis include: • liabilities do not include $20.1 billion of other policy-related balances largely consisting of claims, unearned revenue liabilities and policyholder dividends; • the analysis excludes real estate holdings, private equity and hedge fund holdings; • the market risk information is limited by the assumptions and parameters established in creating the related sensitivity analysis, including the impact of prepayment rates on mortgage loans; • sensitivities do not include the impact on asset or liability valuation of changes in market liquidity or changes in market credit spreads; • foreign currency exchange rate risk is not isolated for certain MRBs for variable annuities with guaranteed minimum benefits, as the risk on these instruments is reflected as equity; • the impact on reported earnings may be materially different from the change in market values, most notably for fixed maturity securities AFS, mortgage loans, FPBs, and derivatives that qualify for hedge accounting; and • the model assumes that the composition of assets and liabilities remains unchanged throughout the period.
(4) Does not necessarily represent those financial instruments solely subject to equity price risk. Additionally, separate account assets and liabilities and Unit-linked investments and associated PABs, which are equity market sensitive, are not included herein as any equity market risk is borne by the contractholder. (5) Includes FVO securities. 118 Table of Contents
(4) Does not necessarily represent those financial instruments solely subject to equity price risk. Additionally, separate account assets and liabilities and Unit-linked investments and associated PABs, which are equity market sensitive, are not included herein as any equity market risk is borne by the contractholder. (5) Includes FVO securities. 129 Table of Contents
Management of Market Risk Exposures We use a variety of strategies to manage interest rate, foreign currency exchange rate and equity market risk, including the use of derivatives. 114 Table of Contents Interest Rate Risk Management To support management of interest rate risk, we perform analysis using various models, including multi-scenario cash flow projection models that forecast cash flows of the liabilities and their supporting investments, including derivatives.
Management of Market Risk Exposures We use a variety of strategies to manage interest rate, foreign currency exchange rate and equity market risk, including the use of derivatives. 125 Table of Contents Interest Rate Risk Management To support management of interest rate risk, we perform analysis using various models, including multi-scenario cash flow projection models that forecast cash flows of the liabilities and their supporting investments, including derivatives.
These derivatives include exchange-traded equity futures, equity index options contracts, TRRs and equity variance swaps. 115 Table of Contents Hedging Activities We use derivative contracts primarily to hedge a wide range of risks including interest rate risk, foreign currency exchange rate risk, and equity market risk.
These derivatives include exchange-traded equity futures, equity index options contracts, TRRs and equity variance swaps. 126 Table of Contents Hedging Activities We use derivative contracts primarily to hedge a wide range of risks including interest rate risk, foreign currency exchange rate risk, and equity market risk.
In performing the analysis summarized below, we used market rates at December 31, 2024. The sensitivity analysis separately calculates each of our market risk exposures (interest rate, foreign currency exchange rate and equity market) relating to our assets and liabilities.
In performing the analysis summarized below, we used market rates at December 31, 2025. The sensitivity analysis separately calculates each of our market risk exposures (interest rate, foreign currency exchange rate and equity market) relating to our assets and liabilities.
The potential losses in estimated fair value presented are for non-trading securities. 117 Table of Contents The table below provides additional detail regarding the potential gain (loss) from changes in estimated fair value at: December 31, 2024 Interest Rate Risk Foreign Currency Exchange Rate Risk Equity Market Risk Notional Amount Estimated Fair Value (1) Assuming a 100 bps Increase in Interest Rates (2) Assuming a 10% Appreciation in the U.S.
The potential losses in estimated fair value presented are for non-trading securities. 128 Table of Contents The table below provides additional detail regarding the potential gain (loss) from changes in estimated fair value at: December 31, 2025 Interest Rate Risk Foreign Currency Exchange Rate Risk Equity Market Risk Notional Amount Estimated Fair Value (1) Assuming a 100 bps Increase in Interest Rates (2) Assuming a 10% Appreciation in the U.S.
These hedges are designed to reduce interest rate risk or inflation risk related to the existing assets or liabilities or related to expected future cash flows. • Macro Hedge Program — We use equity options, equity TRRs, interest rate swaptions, interest rate swaps and Treasury locks to mitigate the potential loss of legal entity statutory capital under stress scenarios.
These hedges are designed to reduce interest rate risk or inflation risk related to the existing assets or liabilities or related to expected future cash flows. • Macro Hedge Program — We use equity options, equity TRRs, interest rate swaptions, and equity and interest rate futures to mitigate the potential loss of legal entity statutory capital under stress scenarios.
The table below illustrates the potential loss in estimated fair value for each market risk exposure based on market sensitive assets and liabilities at: December 31, 2024 (In millions) Interest rate risk $ 8,301 Foreign currency exchange rate risk $ 1,748 Equity market risk $ 105 The risk sensitivities derived used a 100-basis point increase to interest rates, a 10% strengthening of the U.S. dollar against foreign currencies, and a 10% decrease in equity prices.
The table below illustrates the potential loss in estimated fair value for each market risk exposure based on market sensitive assets and liabilities at: December 31, 2025 (In millions) Interest rate risk $ 7,554 Foreign currency exchange rate risk $ 1,953 Equity market risk $ 76 The risk sensitivities derived used a 100-basis point increase to interest rates, a 10% strengthening of the U.S. dollar against foreign currencies, and a 10% decrease in equity prices.
Some hedge programs are asset or liability specific while others are portfolio hedges that reduce risk related to a group of liabilities or assets.
Some hedge programs are asset or liability specific while others are portfolio hedges that reduce risk related to a group of liabilities or assets. Certain of these derivative contracts are hedging market risks associated with reinsured business, where the results of these derivatives are passed to the reinsurer.