Segment Information

12 Months Ended

Dec. 31, 2024

Segment Reporting [Abstract]

Segment Information

2. Segment Information

MetLife is organized into six segments: Group Benefits, RIS, Asia, Latin America, EMEA and MetLife Holdings. In addition, the Company reports 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, accident & health insurance and vision.

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, funded reinsurance 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.

Financial Measure and Segment Accounting Policies

Adjusted earnings is used by the Company’s CODM, its chief executive officer, to evaluate performance and allocate resources. Adjusted earnings and related measures based on adjusted earnings are also the measures by which senior management’s and many other employees’ performance is evaluated for the purposes of determining their compensation under applicable compensation plans. Adjusted earnings and related measures based on adjusted earnings allow analysis of the Company’s performance relative to its business plan and facilitate comparisons to industry results.

Consistent with GAAP guidance for segment reporting, adjusted earnings is the Company’s GAAP measure of segment performance and is reported below. The Company believes the presentation of adjusted earnings enhances its investors’ understanding of its performance by highlighting the results of operations and the underlying profitability drivers of the business.

Adjusted earnings focuses 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, (iii) revenues and costs related to divested businesses, and (iv) other adjustments. Also, adjusted earnings excludes results of discontinued operations under GAAP.

Market volatility can have a significant impact on the Company’s financial results. Adjusted earnings for the Company’s segments excludes net investment gains (losses), net derivative gains (losses), MRB remeasurement gains (losses) and goodwill impairments. Further, net investment income excludes adjusted earnings adjustments relating to joint ventures accounted for under the equity method, and 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 in calculating adjusted earnings for the Company’s segments:

•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 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.

•Policyholder liability remeasurement gains (losses) excludes asymmetrical accounting associated with in-force reinsurance.

•Interest credited to 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, which are applicable to the Company’s segments, are made in calculating adjusted earnings:

•Net investment income and interest credited to PABs excludes certain amounts related to contractholder-directed equity securities. Net investment income excludes returns on invested assets and cash and cash equivalents subject to ceded reinsurance arrangements with third parties (“Reinsurance adjustments”).

•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) Reinsurance adjustments, (ii) implementation of new insurance regulatory requirements and other costs, and (iii) 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.

The Company’s segment accounting policies are the same as those used to prepare the Company’s consolidated financial statements. 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. Expenses 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.

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 institutional investment management business (through which the Company provides public fixed income, private capital and real estate investment solutions to institutional investors worldwide).

The financial measure and accounting policies used to prepare the Company’s segment results are the same as those used to prepare results for Corporate & Other. See “— Financial Measure and Segment Accounting Policies.”

Set forth in the tables below is certain financial information with respect to the Company’s segments for the years ended December 31, 2024, 2023 and 2022.

Year Ended December 31, 2024		Group Benefits		RIS		Asia		Latin America		EMEA		MetLife Holdings
	(In millions)
Revenues
Premiums		$	22,427	$	8,034	$	4,991	$	4,476	$	2,202	$	2,780
Universal life and investment-type product policy fees		909		314		1,690		1,419		314		326
Net investment income (1)		1,252		8,482		4,658		1,650		222		3,985
Other revenues		1,534		246		76		41		32		166
Expenses
Policyholder benefits and claims and policyholder dividends		19,824		11,246		4,083		4,127		1,100		4,954
Policyholder liability remeasurement (gains) losses		(1)		(170)		(35)		(9)		7		2
Interest credited to PABs		191		3,371		2,695		438		70		390
Other expenses:
Amortization of DAC, VOBA and negative VOBA		26		66		832		503		355		229
Interest expense on debt		2		15		—		15		—		14
Direct and allocated expenses		2,000		309		1,176		560		426		646
Other segment expenses (2)		2,049		139		413		743		457		223
Provision for income tax expense (benefit)		425		433		630		328		72		152
Adjusted earnings		$	1,606	$	1,667	$	1,621	$	881	$	283	$	647

Year Ended December 31, 2023	Group Benefits		RIS		Asia		Latin America		EMEA		MetLife Holdings
	(In millions)
Revenues
Premiums	$	21,558	$	8,248	$	5,251	$	4,287	$	2,016	$	2,881
Universal life and investment-type product policy fees	878		313		1,632		1,398		298		632
Net investment income (1)	1,301		7,803		3,957		1,644		197		4,494
Other revenues	1,493		271		86		42		32		195
Expenses
Policyholder benefits and claims and policyholder dividends	19,164		11,269		4,333		4,094		984		5,350
Policyholder liability remeasurement (gains) losses	(28)		(131)		105		(25)		(3)		37
Interest credited to PABs	193		2,887		2,301		426		72		730
Other expenses:
Amortization of DAC, VOBA and negative VOBA	26		49		772		468		344		258
Interest expense on debt	2		14		—		11		—		13
Direct and allocated expenses	1,896		275		1,172		578		404		666
Other segment expenses (2)	1,880		114		403		682		399		239
Provision for income tax expense (benefit)	442		450		558		297		78		176
Adjusted earnings	$	1,655	$	1,708	$	1,282	$	840	$	265	$	733

Year Ended December 31, 2022	Group Benefits		RIS		Asia		Latin America		EMEA		MetLife Holdings
	(In millions)
Revenues
Premiums	$	21,051	$	13,619	$	5,563	$	3,224	$	1,962	$	3,066
Universal life and investment-type product policy fees	855		303		1,693		1,175		284		902
Net investment income (1)	1,136		6,204		3,909		1,593		160		4,914
Other revenues	1,360		392		90		39		35		155
Expenses
Policyholder benefits and claims and policyholder dividends	19,076		16,163		4,564		3,320		976		5,636
Policyholder liability remeasurement (gains) losses	7		(36)		69		(21)		(6)		101
Interest credited to PABs	143		1,914		2,003		335		71		813
Other expenses:
Amortization of DAC, VOBA and negative VOBA	26		40		721		410		318		270
Interest expense on debt	1		8		—		12		—		8
Direct and allocated expenses	1,793		260		1,202		493		389		669
Other segment expenses (2)	1,667		111		421		533		371		255
Provision for income tax expense (benefit)	357		423		658		220		73		254
Adjusted earnings	$	1,332	$	1,635	$	1,617	$	729	$	249	$	1,031

__________________

(1)The percentage of net investment income from equity method invested assets by segment was as follows:

	Years Ended December 31,
	2024	2023	2022
Group Benefits	—%	—%	1%
RIS	3%	1%	6%
Asia	12%	4%	12%
Latin America	1%	1%	3%
MetLife Holdings	3%	2%	6%

(2)Includes pension, postretirement and postemployment benefit costs; premium taxes, other taxes, and licenses & fees, as well as commissions and other variable expenses. This line item is net of capitalization of DAC.

The Company does not report total assets by segment, as this metric is not used to allocate resources or evaluate segment performance.

The following table presents the reconciliation of certain financial measures used in calculating segment results to those used in calculating consolidated Company results:

	Years Ended December 31,
	2024		2023		2022
	(In millions)
Total segment adjusted earnings	$	6,705	$	6,483	$	6,593
Corporate & Other	(709)		(760)		(615)
Total consolidated adjusted earnings	5,996		5,723		5,978
Net investment gains (losses)	(1,184)		(2,824)		(1,260)
Net derivative gains (losses)	(1,623)		(2,140)		(2,251)
Market risk benefit remeasurement gains (losses)	1,109		994		3,674
Investment hedge adjustments	(604)		(1,012)		(976)
Other	63		(173)		(443)
Provision for income tax (expense) benefit	687		1,034		580
Net income (loss)	$	4,444	$	1,602	$	5,302
Segment revenues:
Group	$	26,122	$	25,230	$	24,402
RIS	17,076		16,635		20,518
Asia	11,415		10,926		11,255
Latin America	7,586		7,371		6,031
EMEA	2,770		2,543		2,441
MetLife Holdings	7,257		8,202		9,037
Total segment revenues	72,226		70,907		73,684
Net investment gains (losses)	(1,184)		(2,824)		(1,260)
Net derivative gains (losses)	(1,623)		(2,140)		(2,251)
Investment hedge adjustments	(604)		(1,012)		(976)
Unit-linked investment income and Reinsurance adjustments	1,122		1,183		(1,298)
Other	1,049		791		871
Total consolidated revenues	$	70,986	$	66,905	$	68,770

The following table presents total premiums, universal life and investment-type product policy fees and other revenues by major product groups of the Company’s segments, as well as Corporate & Other:

	Years Ended December 31,
	2024		2023		2022
	(In millions)
Life insurance	$	22,250	$	22,111	$	21,728
Accident & health insurance	18,356		18,014		17,441
Annuities	10,121		10,193		15,657
Other	1,793		1,643		1,539
Total	$	52,520	$	51,961	$	56,365

The following table presents total premiums, universal life and investment-type product policy fees and other revenues associated with the Company’s U.S. and foreign operations:

	Years Ended December 31,
	2024		2023		2022
	(In millions)
U.S.	$	37,266	$	36,869	$	42,250
Japan	4,702		5,020		5,460
Other	10,552		10,072		8,655
Total	$	52,520	$	51,961	$	56,365

Revenues derived from one RIS customer were $8.1 billion for the year ended December 31, 2022, which represented 14% of consolidated premiums, universal life and investment-type product policy fees and other revenues. The revenue was from a single premium received for a pension risk transfer. Revenues derived from any single customer did not exceed 10% of consolidated premiums, universal life and investment-type product policy fees and other revenues for the years ended December 31, 2024 or 2023.