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Key Takeaways MetLife's adjusted earnings rose 15% and total premium increased 5.8% in Q2 2026.MET is using AI, asset management and its New Frontier strategy to support scalable growth.MetLife's strong liquidity supports shareholder returns through share repurchases and dividend payouts. MetLife, Inc. (MET - Free Report) benefits from its diversified product portfolio, strong corporate relationships and global footprint, which support steady business volumes and premium growth. Its cost-cutting efforts, cash generation ability, strategic acquisitions and partnerships further support growth. Over the past year, shares of MET have grown 17.9%, outperforming the industry’s 4.6% rise.

MetLife — with a market capitalization of $62 billion — primarily provides protection and investment products to a range of individual and institutional customers. Beyond offering individual annuities, insurance and investment products, the company also delivers group insurance, as well as retirement and savings products and services. Its forward P/E of 9.30X is higher than the industry average of 9.17X.

Courtesy of solid prospects, MET currently carries a Zacks Rank #3 (Hold) and a Value Score of A.

MET’s Growth DriversMetLife continues to benefit from broad-based growth across its businesses, supported by stronger sales, favorable underwriting trends and improving operating momentum. Adjusted earnings rose 15% year over year to $1.6 billion in the second quarter of 2026, while total premium increased 5.8%.

Group Benefits remains an important contributor, supported by customer additions, broader product adoption and digital capabilities. MET continues to see strong opportunities in retirement and international markets. RIS-adjusted PFOs, excluding pension risk transfers, increased 19%, led by U.K. longevity reinsurance and structured settlement sales, while newer solutions such as U.K. FundedRe are broadening the platform. In Asia, sales climbed 17% on a constant-currency basis, helped by product launches and equity market tailwinds in Korea, while Latin America and EMEA sales rose 9% and 15%, respectively, creating additional room for expansion.

MET is also using technology and asset management to support scalable growth. AI-driven productivity gains are helping the company manage expenses while improving customer service and creating opportunities to apply data across policies, claims and service interactions. Meanwhile, MetLife Investment Management is expanding its role as the company grows its asset base and captures benefits from the integration of PineBridge.

MET’s New Frontier strategy combines capital-light and capital-driven businesses, leveraging its retirement origination, investment and risk-management capabilities to pursue growth while creating additional assets for its investment management platform. This model supports earnings diversification and more efficient capital deployment. The company also has flexibility to pursue additional growth through reinsurance, third-party capital and targeted acquisitions. Reinsurance can help MetLife originate more retirement business while creating additional assets for its investment management platform. The company is also evaluating selective opportunities in asset management and Group Benefits that can add complementary capabilities without requiring transformational deals.

MetLife’s robust liquidity position, evidenced by $19.3 billion in cash and cash equivalents as of June 30, 2026, far exceeds its short-term debt of $460 million. This financial strength supports shareholder returns through share repurchases and dividend payouts. The company bought back common shares worth $700 million in the second quarter of 2026. It pursued additional repurchases of roughly $225 million in July 2026. Its dividend yield of 2.5% remains higher than the industry’s average of 2.4%.

Where Do Estimates for MET Stand?The Zacks Consensus Estimate for MetLife’s 2026 earnings is pegged at $9.76 per share, indicating a 10.5% year-over-year rise, which has been revised upward over the past seven days. Furthermore, the consensus mark for revenues is pegged at $78.7 billion for 2026. It beat earnings estimates in each of the past four quarters, with an average surprise of 5.7%.

MET Stock: Risks to WatchHowever, there are some factors that investors should keep a careful eye on.

MET’s variable investment income has been volatile in recent years and remained below target at $1.5 billion in 2025. The first quarter of 2026 produced $518 million of pre-tax variable investment income, but the second quarter fell to $231 million due to lower private equity returns, and real estate and other fund returns.

The company’s return on invested capital (ROIC) is 1.9%, below the industry average of 2%. This indicates relatively weaker capital efficiency and modest returns on its investments.

Better-Ranked PlayersSome better-ranked stocks in the insurance space are Hippo Holdings Inc. (HIPO - Free Report) , Slide Insurance Holdings, Inc. (SLDE - Free Report) and The Hanover Insurance Group, Inc. (THG - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Hippo Holdings’ current-year earnings is pinned at $2.46 per share and has witnessed two upward revisions in the past 60 days against no movement in the opposite direction. HIPO beat earnings estimates in each of the trailing four quarters, with the average surprise being 521.8%. The consensus estimate for current-year revenues is pegged at $581.9 million, implying 24.2% year-over-year growth.

The Zacks Consensus Estimate for Slide Insurance Holdings’ current-year earnings is pinned at $3.79 per share and has witnessed two upward revisions in the past 60 days against one movement in the opposite direction. SLDE beat earnings estimates in each of the trailing four quarters, with the average surprise being 36.9%. The consensus estimate for current-year revenues is pegged at $1.5 billion, implying 29.5% year-over-year growth.

The Zacks Consensus Estimate for Hanover Insurance Group’s current-year earnings is pinned at $20.17 per share and has witnessed two upward revisions in the past 30 days against no movement in the opposite direction. THG beat earnings estimates in each of the trailing four quarters, with the average surprise being 27.3%. The consensus estimate for current-year revenues is pegged at $7 billion, implying 4.6% year-over-year growth.

Can Trupanion Turn Pet Insurance Loyalty Into Real Earnings?MetLife NYSE: MET reported second-quarter 2026 adjusted earnings of approximately $1.6 billion, or $2.43 per share, up 15% from a year earlier. Adjusted earnings per share increased 20%, while adjusted return on equity reached 17%, the top end of the company’s 15% to 17% annual target range.

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President and Chief Executive Officer Michel Khalaf said the results reflected the execution of MetLife’s “New Frontier” strategy, which combines capital-light businesses such as Group Benefits, international operations and asset management with capital-driven retirement and spread-based operations.

The “Duck Stock” Keeps Quietly Making Money for Shareholders“Adjusted earnings increased in every business segment compared with a year ago,” Khalaf said, citing strong underwriting, broad volume growth and continued capital returns to shareholders.

Capital Returns and Expense Management MetLife repurchased about $700 million of common shares during the quarter and returned more than $2.4 billion to shareholders through July through buybacks and common dividends. The company also announced a new $3 billion share repurchase authorization.

These 3 Insurance Stocks Made New 52-Week Highs: Still Time to Buy?Holding-company cash and liquid assets totaled $3.4 billion at June 30, within MetLife’s stated target buffer of $3 billion to $4 billion. Chief Financial Officer and Head of MetLife Investment Management John McCallion said the company returned approximately $1.1 billion to shareholders in the second quarter, including the share repurchases, and bought an additional roughly $225 million of shares in July.

The direct expense ratio was 12.1% in the quarter, compared with 11.7% in the year-ago quarter and for full-year 2025. The ratio included an approximately 50-basis-point impact from the addition of PineBridge Investments, which has a structurally higher expense profile. Management said it remains on track to beat its 12.1% full-year 2026 target through expense discipline and productivity initiatives.

Khalaf said artificial intelligence is becoming a structural advantage for the company because of the volume of policies, customer interactions and claims MetLife handles. He said the company monitors AI-related investment and usage costs under the same return standards applied to other investments and expenses.

Group Benefits Leads Segment Growth Group Benefits generated adjusted earnings of $503 million, up 25% year over year, supported by favorable life underwriting and volume growth. The group life mortality ratio was 79%, better than the company’s 2026 target range of 83% to 88%, reflecting improved mortality trends among the working-age population.

Ramy Tadros, president of MetLife’s U.S. business, said the quarter included about two points of mortality favorability from prior-period development and lower-than-expected claim severity. He said the company expects those factors to normalize during the remainder of the year, with early indications evident in July results.

Tadros said any longer-term normalization of Group Life margins would occur gradually because the business has a three- to five-year renewal cycle. Year-to-date Group Benefits sales rose 9%, including an 11% increase in regional business. Adjusted premiums, fees and other revenues increased 4% excluding participating contracts.

Non-Medical Health’s interest-adjusted benefit ratio was 73.9%, within its 70% to 75% annual target range and 190 basis points better sequentially. Tadros said paid family and medical leave claims followed the anticipated pattern of higher claims early in a program’s rollout before moderating. He also cited favorable disability results, driven by experience and investments in data analytics and AI intended to improve recoveries.

Retirement, International Operations and Asset Management Retirement & Income Solutions, or RIS, recorded adjusted earnings of $377 million, up 2% from the prior year. Adjusted premiums, fees and other revenues excluding pension risk transfers increased 19%, led by U.K. longevity reinsurance and structured settlement sales.

RIS reported a total investment spread of 97 basis points, below management’s 100- to 120-basis-point guidance range because of weaker private-equity returns in variable investment income. Core spread excluding variable investment income was 100 basis points, up 5 basis points sequentially. McCallion said MetLife expects its core RIS spread to remain within a 95- to 100-basis-point range and estimated third-quarter results could be near the midpoint because of real estate income seasonality.

Management described the U.S. pension risk transfer market as lighter in the first half, particularly for jumbo transactions, but said it sees a stronger opportunity pipeline for the second half. Tadros said MetLife sold nearly $14 billion of pension risk transfers in 2025, including $12 billion in the fourth quarter, illustrating the market’s uneven timing. He added that MetLife wrote more than $1 billion of U.K. funded reinsurance year to date.

Asia adjusted earnings rose 21% on a reported basis and 25% on a constant-currency basis to $420 million. Sales increased 17% on a constant-currency basis, supported by Korea and product launches. In Japan, sales rose 2% from a strong year-earlier comparison and 13% sequentially, while accident and health sales grew nearly 90% on a constant-currency basis following a medical product launch.

Latin America posted a quarterly record of $268 million in adjusted earnings, up 15% reported and 4% on a constant-currency basis. Sales rose 9% on the same basis, with growth led by Brazil, Mexico and Chile. EMEA adjusted earnings increased 8%, or 11% on a constant-currency basis, to $108 million, while sales rose 15% on a constant-currency basis.

MetLife Investment Management, or MIM, generated adjusted earnings of $57 million, up 6%, as PineBridge integration and expense management contributed to results. Total assets under management rose $12 billion sequentially to approximately $748 billion at June 30, including a $7 billion increase in institutional client assets. McCallion said MIM remains positioned to deliver full-year adjusted earnings within its $240 million to $280 million guidance range, though likely near the low end.

M&A and Investment Positioning During the question-and-answer session, Khalaf said MetLife’s approach to acquisitions has not changed. He identified asset management and Group Benefits as the areas most likely to be considered for acquisitions, emphasizing complementary capabilities and adjacencies rather than transformational transactions.

McCallion said MetLife expects its private-equity allocation to decline modestly over time as distributions from its seasoned portfolio outpace contributions, though the company will continue investing in the asset class. He said higher interest rates can provide positive momentum over time, but portfolio changes are incremental and governed by asset-liability management and risk considerations.

About MetLife (NYSE:MET)MetLife, Inc is a global provider of insurance, annuities and employee benefit programs. Headquartered in New York City, the company offers a range of risk protection and retirement solutions to individuals, employers and institutional clients. Its core businesses include life insurance, group benefits, retirement products such as annuities, and supplemental health products including dental and disability coverage.

In addition to traditional life and group insurance, MetLife provides workplace benefits and voluntary products distributed through employer-sponsored programs.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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The MetLife Inc building is seen in Manhattan, New York, U.S., December 7, 2021. REUTERS/Andrew Kelly Purchase Licensing Rights, opens new tab

CompaniesAug 5 (Reuters) - Life insurer MetLife (MET.N), opens new tab posted a jump in second-quarter adjusted profit on Wednesday, powered by strong underwriting ​and broad volume growth, with standout results ‌in Asia and Latin America.

The industry has continued to benefit from resilient demand, robust sales growth and disciplined underwriting, while ​elevated interest rates have lifted investment returns.

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MetLife ​said premiums, fees and other revenue increased 7% ⁠in the second quarter to $13.7 billion.

This typically reflects ​the income insurers earn from selling insurance policies, annuities ​and related financial products.

Group benefits, which include employer-sponsored insurance products, posted a 25% increase in adjusted profit to $503 million.

Asia adjusted ​earnings grew 21% in the quarter, on a ​reported basis, while Latin America logged a 15% increase.

"This quarter further ‌reinforces ⁠our ability to create value for shareholders across cycles," CEO Michel Khalaf said in a statement.

The company's second-quarter net investment income surged 18% to $6.7 billion.

Insurers typically ​generate investment ​income by ⁠investing premiums they collect, primarily in bonds and other low-risk assets.

MetLife said adjusted ​earnings per share rose 20% to $2.43 in ​the ⁠three months ended June 30.

Founded in 1868, MetLife operates in more than 40 markets and is one of ⁠the ​world's largest life insurers, offering insurance, ​annuities, employee benefits and asset management services to individuals and institutions.

Reporting ​by Manya Saini in Bengaluru; Editing by Sriraj Kalluvila

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Key Takeaways MetLife is embedding AI across core operations to improve efficiency and customer experiences.MET invested $3.2 billion in technology over five years to support enterprise-wide AI adoption.MET's Q1 2026 adjusted EPS rose 23.5% YoY, while its direct expense ratio improved to 11.9%. MetLife, Inc. (MET - Free Report) is increasingly embedding artificial intelligence (AI) across its business as part of its New Frontier strategy, with the goal of improving efficiency, enhancing customer experiences and supporting long-term growth. Rather than treating AI as a standalone initiative, the insurer is integrating the technology into core operations, from underwriting and claims to customer service and decision-making. This approach is helping the company simplify workflows while positioning it to compete more effectively in an evolving insurance market.

MetLife has invested more than $3.2 billion over the past five years to modernize its technology infrastructure. These investments are enabling broader AI adoption across the enterprise. AI tools are helping employees make faster decisions, reduce operational friction and deliver more personalized customer interactions. MetLife continues to emphasize responsible AI deployment through robust governance and risk management practices.

The company's AI investments are already supporting stronger operating performance. In the first quarter of 2026, adjusted earnings per share (EPS) increased 23.5% year over year to $2.42. At the same time, MetLife's direct expense ratio, excluding total notable items related to direct expenses and PRT, improved to 11.9% from 12% a year ago, reflecting continued productivity gains and disciplined cost management.

AI is becoming more than an operational tool for MetLife — it is evolving into a strategic differentiator. By combining technology-driven efficiency with disciplined execution and a diversified business model, the company is positioning itself to improve productivity, strengthen customer relationships and build a sustainable competitive advantage over the long run.

How Are Competitors Faring?Some of MET’s competitors adopting AI to improve operations include American International Group, Inc. (AIG - Free Report) and CNO Financial Group, Inc. (CNO - Free Report) .

AIG is expanding its use of AI to improve underwriting accuracy, automate claims handling and strengthen risk assessment. American International Group is also using generative AI to support employees and streamline workflows, helping improve operational efficiency while delivering faster and more personalized customer service.

CNO Financial is adopting AI and advanced analytics to modernize customer engagement, automate routine processes and improve agent productivity. CNO is also investing in digital capabilities that simplify policy servicing and support more personalized insurance solutions, strengthening its long-term operating efficiency.

MET’s Price Performance, Valuation & EstimatesIn the year-to-date period, MET’s shares have risen 17.3% compared with the industry’s growth of 4.9%.

Image Source: Zacks Investment Research

From a valuation standpoint, MET trades at a forward price-to-earnings ratio of 8.80, above the industry average of 8.27. MetLife carries a Value Score of A.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for MET’s 2026 earnings implies 13% growth from the year-ago period.

Image Source: Zacks Investment Research

MetLife currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.