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MetLife's Q3 results beat estimates on volume growth, solid underwriting

By Reuters News


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


Reuters Recommended Reads

  • Nov 3 - AIG beats profit estimates on premium growth, investment income

  • Nov 3 - Prudential Q3 profit, operating income decline due to Japan sales suspension

  • Nov 2 - Voya Financial Q3 adjusted EPS beats estimates; boosts dividend, buyback


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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