MetLife reported third-quarter net income of $818 mn available to shareholders, a 36% slide from $1.28 bn a year earlier, dragged by heavier derivative and investment losses.
Pretax derivative losses hit $929 mn, tied to stronger equity markets, rising long-term interest rates, and a firmer U.S. dollar.
While these market shifts typically lift portfolio returns over time, they also drive short-term valuation swings that punched through the quarter’s earnings, the company said.
Net investment income climbed 16% to $6.09 bn. MetLife said the increase reflected higher estimated fair values of certain securities not qualifying as separate accounts under GAAP. Still, losses on other investments totaled $325 mn, limiting gains from the broader portfolio.
Premiums, fees, and other revenues were nearly unchanged year over year at $12.46 bn. Stability in those lines suggests the company’s core insurance and benefits businesses are holding steady even as capital market noise cuts into bottom-line growth.
CEO Michel Khalaf said performance momentum is picking up heading into the final stretch of the year.
We’ve secured $12 bn in pension risk transfer mandates in the fourth quarter to-date and launched strategic partnerships that expand our reach and enhance access to our insurance and retirement solutions
Michel Khalaf, MetLife CEO
We think that combination – strong institutional sales and diversified partnerships – could soften the hit from volatile derivatives.
Still, investors are watching whether the company can sustain earnings growth as rates and currency swings continue to test balance sheets through year-end.
MetLife also posted a sharp rise in third-quarter sales across its Asia business, powered by strong performances in Japan, Korea, and China.
Total sales in the region climbed 34% year over year to $786 mn on a constant currency basis, the company said. Japan led the upswing with a 31% increase, while the rest of Asia surged 39%, according to MetLife’s latest earnings release.
Lyndon Oliver, regional president for MetLife Asia, said on the company’s earnings call that Japan’s results came from fresh product momentum.
Growth was driven by new single-premium FX life offerings, a new yen variable life product, and upgrades to existing lines.
Lyndon Oliver, regional president for MetLife Asia
In other markets, expansion leaned heavily on partnerships. Bancassurance distribution in China fueled premium growth, while demand for U.S. dollar-denominated products helped lift results in Korea. MetLife also expanded its network of bank partners in China, which Oliver said added both reach and stability.
“Looking ahead, we expect this momentum to continue going into the fourth quarter,” Oliver told analysts. “We expect to exceed full-year sales guidance in Asia.”
We think this pace signals more than a rebound – it’s a recalibration. With new currency-linked and bank-sold products resonating in Asia’s biggest markets, MetLife seems to be finding new traction in a region that’s notoriously tough on margins but big on long-term value.
