MetLife, Inc. reported third‑quarter 2025 results that included adjusted earnings of $1.6 billion, or $2.37 per share, beating the consensus estimate of $2.33 per share by $0.04. Revenue totaled $17.36 billion, falling short of the $18.84 billion estimate by $1.48 billion, a miss of 7.5%. Net income declined to $818 million, a 36% drop from the $1.3 billion reported in Q3 2024.
The earnings beat was driven by a 16% increase in net investment income, largely from higher fair‑value gains on securities that are not separate accounts. Strong variable investment income, disciplined expense management, and a favorable mix of business segments helped offset the impact of a 36% decline in net income, which was largely attributable to significant derivative and investment losses that were not disclosed in exact dollar terms.
Revenue fell because the company missed expectations in several core segments. While the Asia segment posted a 77% increase in adjusted earnings, Latin America experienced a 33% decline driven by a tax charge in Mexico. The combined effect of weaker performance in these regions, along with modest growth in other segments, pushed total revenue below analysts’ forecasts.
Net income fell 36% from the prior year’s $1.3 billion, reflecting the impact of derivative losses and investment losses that were significant but not quantified in the public filing. The company’s management noted that these losses were a one‑off event and that the underlying insurance and investment businesses remain resilient.
Segment analysis shows that Asia’s growth was a key tailwind, while Latin America’s tax charge was a headwind. Other segments, such as Group Benefits and Retirement and Income Solutions, delivered steady performance, supporting the company’s diversified platform and reinforcing the “New Frontier” strategy that emphasizes disciplined expense management and variable investment income.
Management reiterated confidence in the “New Frontier” strategy, citing disciplined execution and strong variable investment income as drivers of future growth. The company highlighted its focus on disciplined expense management and strategic investments in high‑return verticals, signaling confidence in maintaining profitability amid short‑term volatility from derivative markets.
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