Segment Information

9 Months Ended

Sep. 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 nine months ended September 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 September 30, 2024	Group Benefits		RIS		Asia		Latin America		EMEA		MetLife Holdings		Corporate & Other		Total		Adjustments		Total Consolidated
	(In millions)
Revenues
Premiums	$	5,538	$	1,451	$	1,272	$	1,141	$	562	$	673	$	(6)	$	10,631	$	16	$	10,647
Universal life and investment-type product policy fees	231		67		420		346		84		80		—		1,228		—		1,228
Net investment income	311		2,133		1,132		435		55		981		96		5,143		84		5,227
Other revenues	377		61		18		9		9		40		98		612		36		648
Net investment gains (losses)	—		—		—		—		—		—		—		—		(77)		(77)
Net derivative gains (losses)	—		—		—		—		—		—		—		—		767		767
Total revenues	6,457		3,712		2,842		1,931		710		1,774		188		17,614		826		18,440
Expenses
Policyholder benefits and claims and policyholder dividends	4,927		2,247		1,035		1,091		276		1,221		—		10,797		(50)		10,747
Policyholder liability remeasurement (gains) losses	—		(148)		60		(18)		9		(35)		—		(132)		—		(132)
MRB remeasurement (gains) losses	—		—		—		—		—		—		—		—		531		531
Interest credited to PABs	49		874		683		108		17		84		—		1,815		222		2,037
Capitalization of deferred policy acquisition costs (“DAC”)	(4)		(53)		(336)		(174)		(119)		(4)		(1)		(691)		—		(691)
Amortization of DAC and value of business acquired (“VOBA”)	6		14		217		126		92		58		3		516		—		516
Amortization of negative VOBA	—		—		(6)		—		(1)		—		—		(7)		—		(7)
Interest expense on debt	—		4		—		4		—		4		245		257		—		257
Other expenses	1,007		183		758		485		342		220		164		3,159		29		3,188
Total expenses	5,985		3,121		2,411		1,622		616		1,548		411		15,714		732		16,446
Provision for income tax expense (benefit)	99		119		125		88		24		44		(41)		458		195		653
Adjusted earnings	$	373	$	472	$	306	$	221	$	70	$	182	$	(182)	1,442
Adjustments to:
Total revenues															826
Total expenses															(732)
Provision for income tax (expense) benefit															(195)
Net income (loss)															$	1,341			$	1,341

Three Months Ended September 30, 2023	Group Benefits		RIS		Asia		Latin America		EMEA		MetLife Holdings		Corporate & Other		Total		Adjustments		Total Consolidated
	(In millions)
Revenues
Premiums	$	5,276	$	2,330	$	1,312	$	1,116	$	502	$	685	$	9	$	11,230	$	—	$	11,230
Universal life and investment-type product policy fees	219		82		411		359		79		184		—		1,334		—		1,334
Net investment income	330		2,009		1,023		365		51		1,153		125		5,056		(231)		4,825
Other revenues	371		66		20		9		7		41		103		617		(11)		606
Net investment gains (losses)	—		—		—		—		—		—		—		—		(927)		(927)
Net derivative gains (losses)	—		—		—		—		—		—		—		—		(1,202)		(1,202)
Total revenues	6,196		4,487		2,766		1,849		639		2,063		237		18,237		(2,371)		15,866
Expenses
Policyholder benefits and claims and policyholder dividends	4,592		3,100		1,095		1,020		230		1,311		4		11,352		(69)		11,283
Policyholder liability remeasurement (gains) losses	(29)		(76)		108		(4)		(9)		(7)		—		(17)		—		(17)
MRB remeasurement (gains) losses	—		—		—		—		—		—		—		—		(796)		(796)
Interest credited to PABs	50		756		576		106		19		198		—		1,705		(47)		1,658
Capitalization of DAC	(5)		(41)		(404)		(171)		(114)		(5)		(2)		(742)		—		(742)
Amortization of DAC and VOBA	6		13		204		121		87		65		3		499		—		499
Amortization of negative VOBA	—		—		(6)		—		(1)		—		—		(7)		—		(7)
Interest expense on debt	—		3		—		2		—		4		256		265		—		265
Other expenses	937		138		788		493		315		238		250		3,159		30		3,189
Total expenses	5,551		3,893		2,361		1,567		527		1,804		511		16,214		(882)		15,332
Provision for income tax expense (benefit)	135		124		130		83		24		51		(79)		468		(429)		39
Adjusted earnings	$	510	$	470	$	275	$	199	$	88	$	208	$	(195)	1,555
Adjustments to:
Total revenues															(2,371)
Total expenses															882
Provision for income tax (expense) benefit															429
Net income (loss)															$	495			$	495

Nine Months Ended September 30, 2024	Group Benefits		RIS		Asia		Latin America		EMEA		MetLife Holdings		Corporate & Other		Total		Adjustments		Total Consolidated
	(In millions)
Revenues
Premiums	$	16,848	$	4,574	$	3,785	$	3,378	$	1,634	$	2,078	$	15	$	32,312	$	16	$	32,328
Universal life and investment-type product policy fees	682		215		1,280		1,089		238		252		1		3,757		—		3,757
Net investment income	939		6,339		3,407		1,219		163		3,007		297		15,371		497		15,868
Other revenues	1,156		185		57		31		24		127		293		1,873		87		1,960
Net investment gains (losses)	—		—		—		—		—		—		—		—		(873)		(873)
Net derivative gains (losses)	—		—		—		—		—		—		—		—		(720)		(720)
Total revenues	19,625		11,313		8,529		5,717		2,059		5,464		606		53,313		(993)		52,320
Expenses
Policyholder benefits and claims and policyholder dividends	14,943		6,966		3,090		3,092		799		3,724		17		32,631		(30)		32,601
Policyholder liability remeasurement (gains) losses	(1)		(170)		24		(29)		10		2		—		(164)		—		(164)
MRB remeasurement (gains) losses	—		—		—		—		—		—		—		—		(345)		(345)
Interest credited to PABs	145		2,508		1,987		337		53		293		—		5,323		1,004		6,327
Capitalization of DAC	(13)		(160)		(1,032)		(527)		(362)		(13)		(7)		(2,114)		—		(2,114)
Amortization of DAC and VOBA	19		45		634		380		265		174		6		1,523		—		1,523
Amortization of negative VOBA	—		—		(16)		—		(3)		—		—		(19)		—		(19)
Interest expense on debt	1		11		—		11		—		11		744		778		—		778
Other expenses	3,026		500		2,204		1,502		1,002		663		546		9,443		49		9,492
Total expenses	18,120		9,700		6,891		4,766		1,764		4,854		1,306		47,401		678		48,079
Provision for income tax expense (benefit)	315		332		460		271		71		116		(158)		1,407		(335)		1,072
Adjusted earnings	$	1,190	$	1,281	$	1,178	$	680	$	224	$	494	$	(542)	4,505
Adjustments to:
Total revenues															(993)
Total expenses															(678)
Provision for income tax (expense) benefit															335
Net income (loss)															$	3,169			$	3,169

Nine Months Ended September 30, 2023	Group Benefits		RIS		Asia		Latin America		EMEA		MetLife Holdings		Corporate & Other		Total		Adjustments		Total Consolidated
	(In millions)
Revenues
Premiums	$	16,154	$	5,512	$	3,999	$	3,164	$	1,497	$	2,127	$	44	$	32,497	$	—	$	32,497
Universal life and investment-type product policy fees	660		232		1,204		1,046		231		537		1		3,911		—		3,911
Net investment income	967		5,771		2,954		1,162		143		3,450		255		14,702		(160)		14,542
Other revenues	1,114		205		61		31		23		143		310		1,887		(21)		1,866
Net investment gains (losses)	—		—		—		—		—		—		—		—		(2,650)		(2,650)
Net derivative gains (losses)	—		—		—		—		—		—		—		—		(2,289)		(2,289)
Total revenues	18,895		11,720		8,218		5,403		1,894		6,257		610		52,997		(5,120)		47,877
Expenses
Policyholder benefits and claims and policyholder dividends	14,452		7,766		3,282		2,962		728		4,021		32		33,243		31		33,274
Policyholder liability remeasurement (gains) losses	(31)		(116)		92		(5)		(10)		28		—		(42)		—		(42)
MRB remeasurement (gains) losses	—		—		—		—		—		—		—		—		(1,425)		(1,425)
Interest credited to PABs	144		2,104		1,682		310		54		595		—		4,889		566		5,455
Capitalization of DAC	(16)		(136)		(1,202)		(470)		(341)		(17)		(7)		(2,189)		—		(2,189)
Amortization of DAC and VOBA	19		36		587		344		257		197		8		1,448		—		1,448
Amortization of negative VOBA	—		—		(17)		—		(3)		—		—		(20)		—		(20)
Interest expense on debt	1		10		—		8		—		10		747		776		—		776
Other expenses	2,819		430		2,373		1,388		929		707		656		9,302		77		9,379
Total expenses	17,388		10,094		6,797		4,537		1,614		5,541		1,436		47,407		(751)		46,656
Provision for income tax expense (benefit)	318		339		435		233		62		139		(265)		1,261		(1,028)		233
Adjusted earnings	$	1,189	$	1,287	$	986	$	633	$	218	$	577	$	(561)	4,329
Adjustments to:
Total revenues															(5,120)
Total expenses															751
Provision for income tax (expense) benefit															1,028
Net income (loss)															$	988			$	988

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

	September 30, 2024		December 31, 2023
	(In millions)
Group Benefits	$	36,894	$	36,715
RIS	229,709		218,587
Asia	162,531		157,206
Latin America	73,419		69,177
EMEA	19,653		18,596
MetLife Holdings	146,403		148,524
Corporate & Other	36,367		38,779
Total	$	704,976	$	687,584