Segment Information

6 Months Ended

Jun. 30, 2024

Segment Reporting [Abstract]

Segment Information

2. Segment Information

In the fourth quarter of 2023, MetLife reorganized from five segments into the following six segments to reflect changes in management’s responsibilities: Group Benefits, RIS, Asia, Latin America, EMEA and MetLife Holdings. The Group Benefits and RIS businesses were previously reported as the U.S. segment. These changes were applied retrospectively and did not have an impact on prior period total consolidated net income (loss) or adjusted earnings. In addition, the Company continues to report certain of its results of operations in Corporate & Other.

Group Benefits

The Group Benefits segment, based in the U.S., offers a broad range of products to corporations and their respective employees, other institutions and their respective members, as well as individuals. These products include term, variable and universal life insurance, dental, group and individual disability, vision and accident & health insurance.

RIS

The RIS segment, based in the U.S., offers a broad range of life and annuity-based insurance and investment products to corporations and their respective employees, other institutions and their respective members, as well as individuals. These products include stable value and pension risk transfer products, institutional income annuities, structured settlements, longevity reinsurance solutions, benefit funding solutions and capital markets investment products.

Asia

The Asia segment offers a broad range of products and services to both individuals and corporations, as well as to other institutions, and their respective employees, which include life insurance, accident & health insurance and retirement and savings.

Latin America

The Latin America segment offers a broad range of products to both individuals and corporations, as well as to other institutions, and their respective employees, which include life insurance, retirement and savings, accident & health insurance and credit insurance.

EMEA

The EMEA segment offers products to individuals, corporations, other institutions, and their respective employees, which include life insurance, retirement and savings, accident & health insurance and credit insurance.

MetLife Holdings

The MetLife Holdings segment consists of operations relating to products and businesses that the Company no longer actively markets in the U.S. These include variable, universal, term and whole life insurance, variable, fixed and index-linked annuities and long-term care insurance. It also includes an in-force block of assumed variable annuity guarantees from a third party.

Corporate & Other

Corporate & Other contains various start-up, developing and run-off businesses. Also included in Corporate & Other are: the excess capital, as well as certain charges and activities, not allocated to the segments (including external integration and disposition costs, internal resource costs for associates committed to acquisitions and dispositions and enterprise-wide strategic initiatives), interest expense related to the majority of the Company’s outstanding debt, expenses associated with certain legal proceedings and income tax audit issues, the elimination of intersegment amounts (which generally relate to investment expenses and intersegment loans bearing interest rates commensurate with related borrowings), and the Company’s investment management business (through which the Company provides public fixed income, private capital and real estate investment solutions to institutional investors worldwide).

Financial Measures and Segment Accounting Policies

Adjusted earnings is used by management to evaluate performance and allocate resources. Consistent with GAAP guidance for segment reporting, adjusted earnings is also the Company’s GAAP measure of segment performance and is reported below. Adjusted earnings should not be viewed as a substitute for net income (loss). The Company believes the presentation of adjusted earnings, as the Company measures it for management purposes, enhances the understanding of its performance by highlighting the results of operations and the underlying profitability drivers of the business.

Adjusted earnings is defined as adjusted revenues less adjusted expenses, net of income tax.

These financial measures focus on the Company’s primary businesses principally by excluding the impact of (i) market volatility which could distort trends, (ii) asymmetrical and non-economic accounting, and (iii) revenues and costs related to divested businesses, non-core products and certain entities required to be consolidated under GAAP. Also, these measures exclude results of discontinued operations under GAAP.

Market volatility can have a significant impact on the Company’s financial results. Adjusted earnings excludes net investment gains (losses), net derivative gains (losses), market risk benefits (“MRBs”) remeasurement gains (losses) and goodwill impairments. Further, policyholder benefits and claims exclude (i) changes in the discount rate on certain annuitization guarantees accounted for as additional liabilities, and (ii) market value adjustments.

Asymmetrical and non-economic accounting adjustments are made to the line items indicated in calculating adjusted earnings:

•Net investment income includes earned income on derivatives and amortization of premium on derivatives that are hedges of investments or that are used to replicate certain investments, but do not qualify for hedge accounting treatment.

•Other revenues include settlements of foreign currency earnings hedges and exclude asymmetrical accounting associated with in-force reinsurance.

•Policyholder benefits and claims excludes (i) amortization of basis adjustments associated with de-designated fair value hedges of future policy benefits (“FPBs”), (ii) inflation-indexed benefit adjustments associated with contracts backed by inflation-indexed investments, (iii) asymmetrical accounting associated with in-force reinsurance, and (iv) non-economic losses incurred at contract inception for certain single premium annuity business. These losses are amortized into adjusted earnings within policyholder benefits and claims over the estimated lives of the contracts.

•Interest credited to policyholder account balances (“PABs”) excludes amounts associated with periodic crediting rate adjustments based on the total return of a contractually referenced pool of assets and other pass-through adjustments and asymmetrical accounting associated with in-force reinsurance.

Divested businesses are those that have been or will be sold or exited by MetLife but do not meet the discontinued operations criteria under GAAP. Divested businesses also include the net impact of transactions with exited businesses that have been eliminated in consolidation under GAAP and costs relating to businesses that have been or will be sold or exited by MetLife that do not meet the criteria to be included in results of discontinued operations under GAAP.

Other adjustments are made to the line items indicated in calculating adjusted earnings:

•Net investment income and interest credited to PABs excludes certain amounts related to contractholder-directed equity securities.

•Other revenues include fee revenue on synthetic guaranteed interest contracts (“GICs”) accounted for as freestanding derivatives.

•Other revenues exclude and other expenses include fees received in connection with services provided under transition service agreements.

•Other expenses exclude (i) implementation of new insurance regulatory requirements and other costs, and (ii) acquisition, integration and other related costs. Other expenses include (i) deductions for net income attributable to noncontrolling interests, and (ii) benefits accrued on synthetic GICs accounted for as freestanding derivatives.

Adjusted earnings also excludes the recognition of certain contingent assets and liabilities that could not be recognized at acquisition or adjusted for during the measurement period under GAAP business combination accounting guidance.

The tax impact of the adjustments mentioned above are calculated net of the U.S. or foreign statutory tax rate, which could differ from the Company’s effective tax rate. Additionally, the provision for income tax (expense) benefit also includes the impact related to the timing of certain tax credits, as well as certain tax reforms.

Set forth in the tables below is certain financial information with respect to the Company’s segments, as well as Corporate & Other, for the three months and six months ended June 30, 2024 and 2023. The segment accounting policies are the same as those used to prepare the Company’s interim condensed consolidated financial statements, except for adjusted earnings adjustments as defined above. In addition, segment accounting policies include the method of capital allocation described below.

Economic capital is an internally developed risk capital model, the purpose of which is to measure the risk in the business and to provide a basis upon which capital is deployed. The economic capital model accounts for the unique and specific nature of the risks inherent in the Company’s business.

The Company’s economic capital model, coupled with considerations of local capital requirements, aligns segment allocated equity with emerging standards and consistent risk principles. The model applies statistics-based risk evaluation principles to the material risks to which the Company is exposed. These consistent risk principles include calibrating required economic capital shock factors to a specific confidence level and time horizon while applying an industry standard method for the inclusion of diversification benefits among risk types. The Company’s management is responsible for the ongoing production and enhancement of the economic capital model and reviews its approach periodically to ensure that it remains consistent with emerging industry practice standards.

Segment net investment income is credited or charged based on the level of allocated equity; however, changes in allocated equity do not impact the Company’s consolidated net investment income, net income (loss) or adjusted earnings.

Net investment income is based upon the actual results of each segment’s specifically identifiable investment portfolios adjusted for allocated equity. Other costs are allocated to each of the segments based upon: (i) a review of the nature of such costs; (ii) time studies analyzing the amount of employee compensation costs incurred by each segment; and (iii) cost estimates included in the Company’s product pricing.

Three Months Ended June 30, 2024	Group Benefits		RIS		Asia		Latin America		EMEA		MetLife Holdings		Corporate & Other		Total		Adjustments		Total Consolidated
	(In millions)
Revenues
Premiums	$	5,599	$	2,448	$	1,216	$	1,122	$	536	$	692	$	15	$	11,628	$	—	$	11,628
Universal life and investment-type product policy fees	229		73		434		373		77		94		1		1,281		—		1,281
Net investment income	313		2,117		1,167		398		54		1,016		95		5,160		45		5,205
Other revenues	382		61		18		11		8		37		97		614		24		638
Net investment gains (losses)	—		—		—		—		—		—		—		—		(421)		(421)
Net derivative gains (losses)	—		—		—		—		—		—		—		—		(508)		(508)
Total revenues	6,523		4,699		2,835		1,904		675		1,839		208		18,683		(860)		17,823
Expenses
Policyholder benefits and claims and policyholder dividends	4,780		3,248		988		1,018		265		1,252		9		11,560		73		11,633
Policyholder liability remeasurement (gains) losses	2		(23)		(4)		(3)		1		17		—		(10)		—		(10)
MRB remeasurement (gains) losses	—		—		—		—		—		—		—		—		(182)		(182)
Interest credited to PABs	48		838		657		115		17		106		—		1,781		219		2,000
Capitalization of deferred policy acquisition costs (“DAC”)	(5)		(46)		(335)		(175)		(115)		(4)		(3)		(683)		—		(683)
Amortization of DAC and value of business acquired (“VOBA”)	7		16		207		129		82		57		1		499		—		499
Amortization of negative VOBA	—		—		(5)		—		(1)		—		—		(6)		—		(6)
Interest expense on debt	1		3		—		4		—		3		246		257		—		257
Other expenses	1,016		145		702		505		328		220		188		3,104		9		3,113
Total expenses	5,849		4,181		2,210		1,593		577		1,651		441		16,502		119		16,621
Provision for income tax expense (benefit)	141		108		176		85		21		35		(47)		519		(270)		249
Adjusted earnings	$	533	$	410	$	449	$	226	$	77	$	153	$	(186)	1,662
Adjustments to:
Total revenues															(860)
Total expenses															(119)
Provision for income tax (expense) benefit															270
Net income (loss)															$	953			$	953

Three Months Ended June 30, 2023	Group Benefits		RIS		Asia		Latin America		EMEA		MetLife Holdings		Corporate & Other		Total		Adjustments		Total Consolidated
	(In millions)
Revenues
Premiums	$	5,427	$	2,681	$	1,310	$	1,023	$	499	$	719	$	19	$	11,678	$	—	$	11,678
Universal life and investment-type product policy fees	223		71		396		352		75		170		1		1,288		—		1,288
Net investment income	327		1,948		1,050		418		47		1,170		80		5,040		32		5,072
Other revenues	363		71		21		10		8		49		106		628		(7)		621
Net investment gains (losses)	—		—		—		—		—		—		—		—		(1,039)		(1,039)
Net derivative gains (losses)	—		—		—		—		—		—		—		—		(997)		(997)
Total revenues	6,340		4,771		2,777		1,803		629		2,108		206		18,634		(2,011)		16,623
Expenses
Policyholder benefits and claims and policyholder dividends	4,866		3,441		1,057		976		237		1,341		12		11,930		30		11,960
Policyholder liability remeasurement (gains) losses	2		(11)		(27)		3		2		15		—		(16)		—		(16)
MRB remeasurement (gains) losses	—		—		—		—		—		—		—		—		(817)		(817)
Interest credited to PABs	48		702		570		105		19		198		—		1,642		291		1,933
Capitalization of DAC	(5)		(50)		(397)		(148)		(119)		(6)		(4)		(729)		—		(729)
Amortization of DAC and VOBA	7		12		190		117		85		64		4		479		—		479
Amortization of negative VOBA	—		—		(5)		—		(1)		—		—		(6)		—		(6)
Interest expense on debt	1		4		—		4		—		3		244		256		—		256
Other expenses	950		146		778		465		314		231		229		3,113		20		3,133
Total expenses	5,869		4,244		2,166		1,522		537		1,846		485		16,669		(476)		16,193
Provision for income tax expense (benefit)	99		110		180		62		22		51		(83)		441		(419)		22
Adjusted earnings	$	372	$	417	$	431	$	219	$	70	$	211	$	(196)	1,524
Adjustments to:
Total revenues															(2,011)
Total expenses															476
Provision for income tax (expense) benefit															419
Net income (loss)															$	408			$	408

Six Months Ended June 30, 2024	Group Benefits		RIS		Asia		Latin America		EMEA		MetLife Holdings		Corporate & Other		Total		Adjustments		Total Consolidated
	(In millions)
Revenues
Premiums	$	11,310	$	3,123	$	2,513	$	2,237	$	1,072	$	1,405	$	21	$	21,681	$	—	$	21,681
Universal life and investment-type product policy fees	451		148		860		743		154		172		1		2,529		—		2,529
Net investment income	628		4,206		2,275		784		108		2,026		201		10,228		413		10,641
Other revenues	779		124		39		22		15		87		195		1,261		51		1,312
Net investment gains (losses)	—		—		—		—		—		—		—		—		(796)		(796)
Net derivative gains (losses)	—		—		—		—		—		—		—		—		(1,487)		(1,487)
Total revenues	13,168		7,601		5,687		3,786		1,349		3,690		418		35,699		(1,819)		33,880
Expenses
Policyholder benefits and claims and policyholder dividends	10,016		4,719		2,055		2,001		523		2,503		17		21,834		20		21,854
Policyholder liability remeasurement (gains) losses	(1)		(22)		(36)		(11)		1		37		—		(32)		—		(32)
MRB remeasurement (gains) losses	—		—		—		—		—		—		—		—		(876)		(876)
Interest credited to PABs	96		1,634		1,304		229		36		209		—		3,508		782		4,290
Capitalization of DAC	(9)		(107)		(696)		(353)		(243)		(9)		(6)		(1,423)		—		(1,423)
Amortization of DAC and VOBA	13		31		417		254		173		116		3		1,007		—		1,007
Amortization of negative VOBA	—		—		(10)		—		(2)		—		—		(12)		—		(12)
Interest expense on debt	1		7		—		7		—		7		499		521		—		521
Other expenses	2,019		317		1,446		1,017		660		443		382		6,284		20		6,304
Total expenses	12,135		6,579		4,480		3,144		1,148		3,306		895		31,687		(54)		31,633
Provision for income tax expense (benefit)	216		213		335		183		47		72		(117)		949		(530)		419
Adjusted earnings	$	817	$	809	$	872	$	459	$	154	$	312	$	(360)	3,063
Adjustments to:
Total revenues															(1,819)
Total expenses															54
Provision for income tax (expense) benefit															530
Net income (loss)															$	1,828			$	1,828

Six Months Ended June 30, 2023	Group Benefits		RIS		Asia		Latin America		EMEA		MetLife Holdings		Corporate & Other		Total		Adjustments		Total Consolidated
	(In millions)
Revenues
Premiums	$	10,878	$	3,182	$	2,687	$	2,048	$	995	$	1,442	$	35	$	21,267	$	—	$	21,267
Universal life and investment-type product policy fees	441		150		793		687		152		353		1		2,577		—		2,577
Net investment income	637		3,762		1,931		797		92		2,297		130		9,646		71		9,717
Other revenues	743		139		41		22		16		102		207		1,270		(10)		1,260
Net investment gains (losses)	—		—		—		—		—		—		—		—		(1,723)		(1,723)
Net derivative gains (losses)	—		—		—		—		—		—		—		—		(1,087)		(1,087)
Total revenues	12,699		7,233		5,452		3,554		1,255		4,194		373		34,760		(2,749)		32,011
Expenses
Policyholder benefits and claims and policyholder dividends	9,860		4,666		2,187		1,942		498		2,710		28		21,891		100		21,991
Policyholder liability remeasurement (gains) losses	(2)		(40)		(16)		(1)		(1)		35		—		(25)		—		(25)
MRB remeasurement (gains) losses	—		—		—		—		—		—		—		—		(629)		(629)
Interest credited to PABs	94		1,348		1,106		204		35		397		—		3,184		613		3,797
Capitalization of DAC	(11)		(95)		(798)		(299)		(227)		(12)		(5)		(1,447)		—		(1,447)
Amortization of DAC and VOBA	13		23		383		223		170		132		5		949		—		949
Amortization of negative VOBA	—		—		(11)		—		(2)		—		—		(13)		—		(13)
Interest expense on debt	1		7		—		6		—		6		491		511		—		511
Other expenses	1,882		292		1,585		895		614		469		406		6,143		47		6,190
Total expenses	11,837		6,201		4,436		2,970		1,087		3,737		925		31,193		131		31,324
Provision for income tax expense (benefit)	183		215		305		150		38		88		(186)		793		(599)		194
Adjusted earnings	$	679	$	817	$	711	$	434	$	130	$	369	$	(366)	2,774
Adjustments to:
Total revenues															(2,749)
Total expenses															(131)
Provision for income tax (expense) benefit															599
Net income (loss)															$	493			$	493

The following table presents total assets with respect to the Company’s segments, as well as Corporate & Other, at:

	June 30, 2024		December 31, 2023
	(In millions)
Group Benefits	$	35,966	$	36,715
RIS	222,719		218,587
Asia	151,700		157,206
Latin America	66,527		69,177
EMEA	18,846		18,596
MetLife Holdings	144,045		148,524
Corporate & Other	35,942		38,779
Total	$	675,745	$	687,584