Investing.com - Financial Markets Worldwide

MetLife shares tumble as Q2 earnings miss estimates

Published 06/08/2025, 22:24
MetLife shares tumble as Q2 earnings miss estimates
MET
-2.80%

Investing.com -- MetLife Inc (NYSE:MET) shares fell 5.2% after the insurance giant reported second quarter earnings that fell short of analyst expectations, with adjusted earnings declining 16% YoY amid less favorable underwriting and lower investment margins.

The company reported adjusted earnings of $2.02 per share for the second quarter of 2025, missing the analyst estimate of $2.15. Revenue came in at $17.92 billion, below the consensus estimate of $18.55 billion. Total (EPA:TTEF) adjusted earnings declined to $1.4 billion from $1.6 billion in the same quarter last year.

Despite the earnings miss, MetLife saw 5% growth in adjusted premiums, fees and other revenues excluding pension risk transfers, which rose to $12.4 billion. Net investment income increased 9% to $5.7 billion, though variable investment income fell to $195 million, primarily due to lower private equity returns.

"While the quarter didn’t demonstrate the full earnings power of MetLife, we saw clear momentum across several of our market-leading businesses, coupled with solid underlying fundamentals," said Michel Khalaf, President and Chief Executive Officer.

The Group Benefits segment, which reported a 25% decline in adjusted earnings, was a particular weak spot due to less favorable underwriting across life and non-medical health products. The Asia segment also saw a 22% drop in adjusted earnings on both a reported and constant currency basis.

Bright spots included Latin America, where adjusted earnings rose 3% (15% on a constant currency basis), and EMEA, which posted a 30% increase in adjusted earnings, reflecting strong volume growth across the region.

The company returned approximately $900 million to shareholders through share repurchases and common stock dividends during the quarter. Book value per share increased 7% to $35.79, while adjusted book value per share rose 6% to $56.23.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.