MetLife (MET) 2024 KBW Insurance Conference summary

Strategic review and forward outlook

• Completed the five-year Next Horizon strategy, exceeding targets for distributable cash, operating leverage, ROE, and free cash flow.

• Transitioning to the New Frontier strategy, focused on accelerating growth, boosting returns, and maintaining consistent performance.

• New Frontier builds on Next Horizon’s foundation, emphasizing growth in areas with a clear competitive advantage.

• Investor Day scheduled for December 12th to provide further details on the new strategy.

Financial performance and return metrics

• ROE has expanded from an initial 12%-14% target to 15.5% in the first half, with continued momentum expected.

• New business IRRs remain in the high teens, while legacy holdings run-off supports further ROE accretion.

• Variable investment income (VII) is recovering, with distributions from private equity and other funds expected to grow, though overall balances may decline.

Group benefits business trends

• Maintained above-market growth in group benefits, adding over $6 billion in PFOs during Next Horizon.

• Investments in product range, leave management, and employee decision support drive competitive advantage and persistency.

• Broker market consolidation and digital capabilities enhance access to fragmented segments.

• Underwriting results show seasonality returning to pre-pandemic norms, with proactive pricing actions stabilizing trends.