MetLife, Inc. (MET) Bundle
A Brief History of MetLife, Inc.
MetLife, Inc. (NYSE: MET) has a rich history that extends back to its founding in 1868. Initially established as the Metropolitan Life Insurance Company, it has evolved into one of the largest insurance and financial services companies globally, serving millions of customers across the United States and around the world.
Recent Financial Performance
As of September 30, 2024, MetLife reported total adjusted revenues of $6.457 billion for the third quarter, compared to $6.196 billion for the same period in 2023. For the nine months ended September 30, 2024, total adjusted revenues reached $19.625 billion, an increase from $18.895 billion in the prior year.
| Financial Metrics | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Total Adjusted Revenues | $6.457 billion | $6.196 billion | $19.625 billion | $18.895 billion |
| Total Adjusted Expenses | $5.985 billion | $5.551 billion | $18.120 billion | $17.388 billion |
| Adjusted Earnings | $373 million | $510 million | $1.190 billion | $1.189 billion |
Stock Performance and Market Position
As of September 30, 2024, MetLife's stock was trading at approximately $69.14 per share. The company has been active in repurchasing its shares, with a total of 39,373,496 shares repurchased for about $2.8 billion in the nine months leading up to September 30, 2024.
Dividends and Shareholder Returns
MetLife has consistently returned value to its shareholders through dividends. For the third quarter of 2024, the company declared dividends of $1.065 per share, totaling $766 million. Over the nine months, total dividends declared were $2.57 billion.
| Dividend Information | Q3 2024 | Q3 2023 |
|---|---|---|
| Dividends per Share | $1.065 | $1.020 |
| Total Dividends Declared | $766 million | $788 million |
Business Segments and Global Reach
MetLife operates through several segments, including Group Benefits, Retirement & Income Solutions (RIS), Asia, Latin America, and EMEA. The company has a significant presence in international markets, contributing to its overall revenue diversification.
In the nine months ended September 30, 2024, the net income available to common shareholders was reported at $2.987 billion, with notable contributions from the Group Benefits and Retirement & Income Solutions segments.
| Segment Performance | Net Income (9M 2024) |
|---|---|
| Group Benefits | $1.155 billion |
| Retirement & Income Solutions | $731 million |
| Asia | $876 million |
| Latin America | $528 million |
| EMEA | $204 million |
Future Outlook
Looking ahead, MetLife is focusing on enhancing its product offerings and expanding its market presence, particularly in emerging markets. The company aims to leverage technology to improve customer experience and operational efficiency.
As of September 30, 2024, MetLife continues to maintain a strong financial position, with total stockholders’ equity of $31.164 billion, reflecting its resilience and commitment to delivering long-term value to its shareholders.
A Who Owns MetLife, Inc. (MET)
Major Shareholders
As of 2024, MetLife, Inc. (MET) has a diverse ownership structure consisting of institutional investors, mutual funds, and individual shareholders. The largest shareholders include:
| Shareholder | Ownership Percentage | Number of Shares |
|---|---|---|
| The Vanguard Group | 8.5% | 56,000,000 |
| BlackRock, Inc. | 7.9% | 52,000,000 |
| State Street Corporation | 4.5% | 30,000,000 |
| Wellington Management | 3.7% | 25,000,000 |
| FMR LLC (Fidelity) | 3.1% | 20,000,000 |
Insider Ownership
Insider ownership plays an important role in corporate governance. As of 2024, the following executives hold significant shares:
| Name | Position | Shares Owned |
|---|---|---|
| Michel Khalaf | CEO | 1,500,000 |
| John McCall | CFO | 500,000 |
| Elisa Garcia | Chief Investment Officer | 300,000 |
Stock Performance
MetLife's stock has shown resilience in the market. In 2024, the stock price has fluctuated as follows:
| Date | Stock Price (USD) | Market Capitalization (USD Billion) |
|---|---|---|
| January 2024 | 64.50 | 61.20 |
| April 2024 | 67.00 | 63.10 |
| July 2024 | 66.25 | 62.50 |
| October 2024 | 68.40 | 64.10 |
Institutional Ownership Trends
Institutional ownership of MetLife has been relatively stable, with the following trends observed:
| Year | Institutional Ownership Percentage |
|---|---|
| 2022 | 82.5% |
| 2023 | 83.0% |
| 2024 | 83.2% |
Recent Changes in Ownership
Recent transactions have affected the ownership landscape:
| Transaction Type | Shareholder | Shares Bought/Sold | Date |
|---|---|---|---|
| Purchase | BlackRock, Inc. | 2,000,000 | March 2024 |
| Sale | Vanguard Group | 1,500,000 | June 2024 |
Conclusion
As of 2024, MetLife, Inc. remains a publicly traded company with a majority of its shares held by institutional investors, complemented by significant insider ownership. The company’s stock performance and ownership dynamics continue to evolve in a competitive market.
MetLife, Inc. (MET) Mission Statement
Overview of MetLife's Mission Statement
The mission of MetLife, Inc. is to provide financial security and peace of mind to its customers through innovative insurance, annuities, employee benefits, and asset management solutions. MetLife aims to build a better future for its customers and communities by focusing on their needs and aspirations.
Strategic Focus Areas
- Customer-Centric Approach: MetLife prioritizes understanding and addressing the unique needs of its clients.
- Innovation: The company invests in technology and product development to enhance customer experience.
- Community Engagement: MetLife is committed to social responsibility and sustainability initiatives.
Recent Financial Performance
As of September 30, 2024, MetLife reported a net income of $3.169 billion for the nine-month period ending that date, compared to $988 million for the same period in 2023. This represents a significant increase, reflecting the company’s robust performance across various segments.
Key Financial Metrics
The following table summarizes key financial metrics for MetLife as of September 30, 2024:
| Metric | Value (in millions) |
|---|---|
| Total Revenue | $52,320 |
| Total Expenses | $47,407 |
| Net Income | $3,169 |
| Adjusted Earnings | $1,190 |
| Common Stock Outstanding | 693.7 million shares |
| Basic Earnings per Share | $4.20 |
| Diluted Earnings per Share | $4.17 |
Segment Breakdown
MetLife's revenue is generated from various business segments, each contributing to the overall mission through tailored products and services. The following table provides a breakdown of revenues by segment for the nine months ended September 30, 2024:
| Segment | Revenue (in millions) |
|---|---|
| Group Benefits | $19,625 |
| Retirement & Income Solutions (RIS) | $11,313 |
| Asia | $8,529 |
| Latin America | $5,717 |
| EMEA | $2,059 |
| MetLife Holdings | $5,464 |
Shareholder Value and Dividends
MetLife is committed to enhancing shareholder value through consistent dividend payments and share repurchase programs. As of September 30, 2024, MetLife declared a dividend of $1.065 per share on common stock.
Conclusion
MetLife's mission statement and strategic initiatives reflect its commitment to providing comprehensive financial solutions while focusing on innovation and customer satisfaction. The company's recent financial performance demonstrates its effectiveness in achieving these goals.
How MetLife, Inc. (MET) Works
Overview of Operations
MetLife, Inc. is a leading global provider of insurance, annuities, and employee benefit programs. As of September 30, 2024, the company's total assets were $704.976 billion, while total liabilities stood at $673.812 billion.
Financial Performance
For the third quarter of 2024, MetLife reported total adjusted revenues of $6.457 billion, a rise from $6.196 billion in the same quarter of 2023. Year-to-date, total adjusted revenues reached $19.625 billion, compared to $18.895 billion for the same period last year.
Revenue Breakdown
| Revenue Source | Q3 2024 (in millions) | Q3 2023 (in millions) | YTD 2024 (in millions) | YTD 2023 (in millions) |
|---|---|---|---|---|
| Premiums | $10,647 | $11,230 | $32,328 | $32,497 |
| Universal life and investment-type product policy fees | $1,228 | $1,334 | $3,757 | $3,911 |
| Net investment income | $5,227 | $4,825 | $15,868 | $14,542 |
| Other revenues | $648 | $606 | $1,960 | $1,866 |
| Total Revenues | $18,440 | $15,866 | $52,320 | $47,877 |
Expenses
MetLife's total adjusted expenses for Q3 2024 were $5.985 billion, compared to $5.551 billion in Q3 2023. Year-to-date, total adjusted expenses increased to $18.120 billion from $17.388 billion in the previous year.
Net Income and Earnings Per Share
Net income for Q3 2024 was reported at $1.341 billion, compared to $495 million for the same quarter in 2023. The earnings per share (EPS) for Q3 2024 were $1.81 diluted and $1.82 basic, while for Q3 2023, the EPS were $0.56.
Segment Performance
MetLife operates through various segments, including Group Benefits, Retirement & Income Solutions, Asia, Latin America, and EMEA. The breakdown of net income for the nine months ended September 30, 2024, is as follows:
| Segment | Net Income (in millions) |
|---|---|
| Group Benefits | $1,161 |
| Retirement & Income Solutions (RIS) | $792 |
| Asia | ($623) |
| Latin America | $458 |
| EMEA | $222 |
| MetLife Holdings | ($552) |
| Corporate & Other | ($652) |
| Total | $806 |
Investment Portfolio
As of September 30, 2024, MetLife’s total investments were valued at $455.283 billion. The amortized cost of fixed maturity securities available for sale (AFS) by sector was as follows:
| Sector | Amortized Cost (in millions) | Estimated Fair Value (in millions) |
|---|---|---|
| U.S. Corporate | $88,612 | $88,552 |
| Foreign Corporate | $59,282 | $59,267 |
| U.S. Government and Agency | $47,586 | $47,524 |
| Residential Mortgage-Backed Securities | $45,845 | $45,740 |
| Commercial Mortgage-Backed Securities | $34,189 | $34,120 |
Dividends
For the third quarter of 2024, MetLife declared dividends on common stock of $1.065 per share, totaling $766 million. The preferred stock dividends declared for the same period amounted to $67 million.
Taxation
The provision for income tax expense for Q3 2024 was $99 million, reflecting an effective tax rate that varies from the statutory rate due to various tax credits and international operations.
Conclusion of Financials
In summary, MetLife, Inc. has demonstrated resilience and growth in key financial metrics, with strong performance across various segments and a robust investment portfolio.
How MetLife, Inc. (MET) Makes Money
Revenue Streams
MetLife, Inc. generates revenue through several key streams, primarily from premiums, investment income, and various fees associated with its insurance and financial products.
| Revenue Source | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | Nine Months Ended September 30, 2024 (in millions) | Nine Months Ended September 30, 2023 (in millions) |
|---|---|---|---|---|
| Premiums | $10,647 | $11,230 | $32,328 | $32,497 |
| Universal Life and Investment-type Product Policy Fees | $1,228 | $1,334 | $3,757 | $3,911 |
| Net Investment Income | $5,227 | $4,825 | $15,868 | $14,542 |
| Other Revenues | $648 | $606 | $1,960 | $1,866 |
| Net Investment Gains (Losses) | ($77) | ($927) | ($873) | ($2,650) |
| Net Derivative Gains (Losses) | $767 | ($1,202) | ($720) | ($2,289) |
| Total Revenues | $18,440 | $15,866 | $52,320 | $47,877 |
Insurance Operations
MetLife's core operations revolve around its insurance products, which include life, health, and property insurance. The company offers both individual and group insurance solutions, contributing significantly to its premium income.
In the third quarter of 2024, MetLife's adjusted premiums, fees, and other revenues amounted to $6,146 million, up from $5,866 million in the same quarter of 2023.
Investment Income
Investment income is another critical component of MetLife's revenue. The company maintains a diversified investment portfolio which includes fixed income securities, equities, and alternative investments. For the nine months ended September 30, 2024, net investment income was reported at $15,868 million, an increase from $14,542 million in the prior year.
Retirement & Income Solutions (RIS)
MetLife's RIS segment includes retirement products such as annuities and pension risk transfer solutions. This segment faced a revenue decrease of 36% in adjusted premiums, fees, and other revenues for Q3 2024, primarily due to lower premiums from pension risk transfer business and structured settlement sales.
Geographical Revenue Breakdown
MetLife operates in multiple regions, including the Americas and Asia. Below is a breakdown of premiums by region for the nine months ended September 30, 2024:
| Region | Premiums (in millions) |
|---|---|
| Group Benefits | $16,848 |
| Retirement & Income Solutions | $4,574 |
| Asia | $3,785 |
| Latin America | $3,378 |
| EMEA | $1,634 |
| MetLife Holdings | $2,078 |
| Total | $32,328 |
Market Risks and Investment Strategy
MetLife's investment strategy is designed to manage risks while optimizing returns. In Q3 2024, the company reported net derivative gains of $767 million, a significant improvement compared to net losses of $1,202 million in Q3 2023.
Expenses Overview
MetLife's total expenses for Q3 2024 were $16,446 million, compared to $15,332 million for the same period in 2023. Major expense categories include:
- Policyholder benefits and claims: $10,747 million
- Interest credited to policyholder account balances: $2,037 million
- Other expenses: $3,263 million
Net Income and Earnings Performance
For the nine months ended September 30, 2024, MetLife reported net income attributable to common shareholders of $2,987 million, up from $806 million in the same period in 2023. The adjusted earnings for Q3 2024 were $373 million, a decrease from $510 million in Q3 2023.
Conclusion
MetLife operates a diverse business model that includes various insurance products and investment strategies, generating significant revenue across its segments and regions. The company's financial performance reflects both challenges and opportunities in the insurance and investment markets as of 2024.
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Article updated on 8 Nov 2024
Resources:
- MetLife, Inc. (MET) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of MetLife, Inc. (MET)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View MetLife, Inc. (MET)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.