MetLife's Q3 results beat estimates on volume growth, solid underwriting
Overview
US insurance and employee benefits provider's Q3 revenue grew 12% yr/yr, beating analyst expectations
Adjusted EPS for Q3 rose 17% yr/yr, beating analyst expectations
Company returned about $1 bln to shareholders via buybacks and dividends
Outlook
MetLife says it is on track to meet 2026 free cash flow and expense ratio targets
Company expects continued execution of New Frontier strategy to drive future results
MetLife did not provide specific revenue or EPS guidance for future periods
Result Drivers
INVESTMENT INCOME AND UNDERWRITING - Co said higher variable investment income, broad-based volume growth and favorable underwriting drove adjusted earnings growth
SEGMENT-WIDE REVENUE GROWTH - Revenue increased across all business segments, supported by volume growth and solid underwriting
DERIVATIVE GAINS - Net derivative gains from embedded derivatives on ceded reinsurance, linked to higher U.S. interest rates, contributed to net income
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $20.52 bln | $19.98 bln (8 Analysts) |
Q3 Adjusted EPS | Beat | $2.78 | $2.77 (16 Analysts) |
Q3 EPS | $3.67 | ||
Q3 Adjusted Net Income | $1.78 bln | ||
Q3 Net Income | $2.35 bln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the life & health insurance peer group is "hold."
Wall Street's median 12-month price target for MetLife, Inc. is $110.00, about 9.3% above its November 3 closing price of $100.67
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)