Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Index to Management’s Discussion and Analysis of Financial Condition and Results of Operations
Page
Forward-Looking Statements and Other Financial Information
99
Business Overview
99
Industry Trends
99
Summary of Critical Accounting Estimates
101
Acquisitions and Dispositions
101
Results of Operations
102
Investments
118
Derivatives
135
Liquidity and Capital Resources
136
Adopted Accounting Pronouncements
143
Future Adoption of Accounting Pronouncements
143
Non-GAAP and Other Financial Disclosures
143
Risk Management
146
Subsequent Events
146
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Forward-Looking Statements and Other Financial Information
For purposes of this discussion, “MetLife,” the “Company,” “we,” “our” and “us” refer to MetLife, Inc., a Delaware corporation incorporated in 1999, its subsidiaries and affiliates. This discussion should be read in conjunction with MetLife, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2025 (the “2025 Annual Report”), the cautionary language regarding forward-looking statements included below, the “Risk Factors” set forth in Part II, Item 1A, and the additional risk factors referred to therein, “Quantitative and Qualitative Disclosures About Market Risk” and the Company’s interim condensed consolidated financial statements included elsewhere herein.
This Management’s Discussion and Analysis of Financial Condition and Results of Operations may contain or incorporate by reference information that includes or is based upon forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. See “Note Regarding Forward-Looking Statements” for cautionary language regarding forward-looking statements.
This Management’s Discussion and Analysis of Financial Condition and Results of Operations includes references to our performance measures, adjusted earnings and adjusted earnings available to common shareholders, that are not based on accounting principles generally accepted in the United States of America (“GAAP”). See “— Non-GAAP and Other Financial Disclosures” for definitions and a discussion of these and other financial measures, and “— Results of Operations” and “— Investments” for reconciliations of historical non-GAAP financial measures to the most directly comparable GAAP measures.
Business Overview
MetLife is one of the world’s leading financial services companies, providing insurance, annuities, employee benefits and asset management. T1In the fourth quarter of 2025, MetLife executed a reorganization to align with its strategic initiative to accelerate growth in asset management. As part of this reorganization, the Company adjusted its segment structure. MetLife Investment Management, the Company’s institutional asset management business (“MIM”), which was previously reported in Corporate & Other, became a reportable segment. MetLife Holdings was removed as a reportable segment, and its business is now primarily reported in Corporate & Other. Additionally, certain products formerly reported in MetLife Holdings were moved to Group Benefits and Retirement and Income Solutions (“RIS”).
These changes were applied retrospectively for all periods presented, did not have an impact on prior period consolidated net income (loss) or consolidated adjusted earnings, and are collectively referred to as the “Strategic Reorganization.” As a result of the Strategic Reorganization, MetLife is organized into the following six segments: Group Benefits; RIS; Asia; Latin America; Europe, the Middle East and Africa (“EMEA”); and MIM. In addition, the Company continues to report certain of its results of operations in Corporate & Other. See “Business — Segments and Corporate & Other” included in the 2025 Annual Report and Notes 1 and 2 of the Notes to the Interim Condensed Consolidated Financial Statements for further information on the Company’s segments and Corporate & Other and the Strategic Reorganization.
Industry Trends
We continue to be impacted by the changing global financial and economic environment that has been affecting the industry.
Financial and Economic Environment
Our business and results of operations are materially affected by conditions in the global financial markets and the economy generally due to our market presence in numerous countries, our large investment portfolio and the sensitivity of our insurance liabilities and derivatives to changing market factors.
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Governments and central banks around the world use fiscal and monetary policies to address uncertain economic conditions. In the United States (“U.S.”), the Federal Open Market Committee took various actions in 2025 to promote employment and combat inflation, including lowering interest rates in the second half of the year and ending the process of quantitative tightening. While rates have remained steady in 2026, labor market conditions, inflation, and financial and international developments, as well as other factors, could result in policy adjustments later this year. Other central banks have recently diverged on monetary policies, with some raising rates while others have held rates steady, reflecting differing local economic conditions and views on the impact of the foregoing factors.
T2We are closely monitoring these and other political and economic conditions that might contribute to global market volatility and impact our business operations, investment portfolio, value of our assets under management (“AUM”), and derivatives, such as global inflation, supply chain disruptions, acts of war, banking sector volatility and employment and work policies of the U.S. federal government. We are also monitoring the imposition of tariffs, sanctions or other barriers to international trade, changes to international trade agreements, and their potential impacts on our business, results of operations and financial condition. See “— Investments — Current Environment,” as well as “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Industry Trends — Impact of Market Interest Rates — Effects of Inflation” in the 2025 Annual Report.
Impact of Market Interest Rates
T3Market interest rates are a key driver of our results. Increases and decreases in such rates, as well as extended periods of stagnation, may impact our business and investments in various ways. In our institutional asset management business, interest rate movements, as well as other changes to market factors such as credit spreads and equity prices, can impact the value of the AUM on which fees are earned. For a discussion of the potential impact of low and rising interest rates, and inflation, as well as management actions taken in response to the changing U.S. interest rate environment, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Industry Trends — Impact of Market Interest Rates” and “Risk Factors — Economic Environment and Capital Markets Risks” included in the 2025 Annual Report.
Competitive Pressures
The life insurance and institutional asset management industries are highly competitive. See “Business — Competition,” “Business — Regulation,” “Risk Factors — Business Risks — We May Face Competition for Business,” “Risk Factors — Economic Environment and Capital Markets Risks — We May Face Difficult Economic Conditions” and “Risk Factors — Regulatory and Legal Risks — Changes in Laws or Regulation, or in Supervisory and Enforcement Policies, May Reduce Our Profitability, Limit Our Growth, or Otherwise Adversely Affect Us” in the 2025 Annual Report.
Regulatory Developments
The following discussion on regulatory developments should be read in conjunction with “Business — Regulation” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Industry Trends — Regulatory Developments” included in the 2025 Annual Report, as amended or supplemented here.
Standards of Conduct, ERISA, Fiduciary Considerations, and Other Pension and Retirement Regulation
In 2021, the U.S. Department of Labor’s (“DOL”) final version of the prohibited transaction exemption (“PTE”) 2020-02 went into effect, which allows investment advice fiduciaries to receive compensation without violating the Employee Retirement Income Security Act of 1974 (“ERISA”), subject to impartial conduct standards and disclosure obligations aligned with U.S. Securities and Exchange Commission rules. In the preamble to PTE 2020-02, the DOL also provided its interpretation of the five-part test used to determine whether a person is acting as an ERISA investment advice fiduciary. In April 2024, the DOL finalized and published a regulation to change the definition of “fiduciary” for purposes of ERISA and parallel provisions of the Code, when a financial professional, including an insurance producer, provides investment advice, and to amend various existing PTEs that financial professionals rely on when making recommendations.
Shortly thereafter, litigation commenced challenging these changes and two federal district courts have since issued orders vacating the 2024 definition of an investment advice fiduciary and vacating the associated 2024 PTE amendments. Both of these orders were unopposed by the DOL. In light of the litigation, the DOL released a final rule vacating (i) the preamble to PTE 2020-02 (while leaving the original PTE intact) and (ii) its 2024 changes to the definition of an investment advice fiduciary as well as its associated 2024 changes to various PTEs. As a result, the DOL has officially reinstated the original 1975 five-part regulatory test defining an investment advice fiduciary.
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Summary of Critical Accounting Estimates
The preparation of financial statements in conformity with GAAP requires management to adopt accounting policies and make estimates and assumptions that affect amounts reported on the interim condensed consolidated financial statements. The most critical estimates include those used in determining:
(i)future policy benefit liabilities, market risk benefits (“MRBs”) and reinsurance recoverables;
(ii)estimated fair values of investments in the absence of quoted market values;
(iii)investment allowance for credit loss (“ACL”) and impairments;
(iv)estimated fair values of freestanding derivatives;
(v)measurement of goodwill and related impairment;
(vi)measurement of employee benefit plan liabilities;
(vii)measurement of income taxes and the valuation of deferred tax assets; and
(viii)liabilities for litigation and regulatory matters.
In addition, the application of acquisition accounting requires the use of estimation techniques in determining the estimated fair values of assets acquired and liabilities assumed. In applying these policies and estimates, management makes subjective and complex judgments that frequently require assumptions about matters that are inherently uncertain. Many of these policies, estimates and related judgments are common in the insurance and financial services industries; others are specific to our business and operations. Actual results could differ from these estimates.
The Company’s critical accounting estimates are described in “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Summary of Critical Accounting Estimates” and Note 1 of the Notes to the Consolidated Financial Statements in the 2025 Annual Report.
Acquisitions and Dispositions
Acquisitions
Acquisition of PineBridge Investments
For information regarding the Company’s acquisition of PineBridge Investments (“PineBridge”), a global asset manager, see Note 3 of the Notes to the Interim Condensed Consolidated Financial Statements.
Dispositions
Pending Disposition of MetLife Ukraine
For information regarding the Company’s pending disposition of its wholly-owned subsidiary, PJSC MetLife (“MetLife Ukraine”), see Note 3 of the Notes to the Interim Condensed Consolidated Financial Statements.
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Results of Operations
Overview
In the fourth quarter of 2025, MetLife completed the Strategic Reorganization. As a result, MetLife is organized into the following six segments: Group Benefits; RIS; Asia; Latin America; EMEA; and MIM. In addition, the Company continues to report certain of its results of operations in Corporate & Other. In conjunction with the Strategic Reorganization, effective January 1, 2025, the Company amended agreements between MIM and other MetLife entities to manage general account investments at current market rate fees. See Notes 1 and 2 of the Notes to the Interim Condensed Consolidated Financial Statements for further information on the Strategic Reorganization and the Company’s segments and Corporate & Other.
Reinsurance Transactions
In 2025, the Company entered into a number of reinsurance agreements. See Note 9 of the Notes to the Consolidated Financial Statements included in the 2025 Annual Report for further information on these reinsurance transactions.
Key Financial Highlights
•Net income available to MetLife, Inc.’s common shareholders was $705 million and $1.8 billion for the three months and six months ended June 30, 2026, respectively, compared to $698 million and $1.6 billion for the three months and six months ended June 30, 2025, respectively.
•Adjusted earnings available to common shareholders was $1.6 billion and $3.2 billion for the three months and six months ended June 30, 2026, respectively, compared to $1.4 billion and $2.7 billion for the three months and six months ended June 30, 2025, respectively.
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Consolidated Results
Three Months
Ended
June 30,
Six Months
Ended
June 30,
2026
2025
2026
2025
(In millions)
Revenues
Premiums
$
11,435
$
10,810
$
23,555
$
22,533
Universal life and investment-type product policy fees
1,372
1,259
2,715
2,488
Net investment income
6,702
5,661
12,057
10,546
Other revenues
845
679
1,697
1,366
Net investment gains (losses)
(428)
(273)
(1,098)
(660)
Net derivative gains (losses)
(772)
(796)
(698)
(364)
Total revenues
19,154
17,340
38,228
35,909
Expenses
Policyholder benefits and claims and policyholder dividends
11,460
10,913
23,448
22,863
Policyholder liability remeasurement (gains) losses
18
5
5
(26)
Market risk benefit remeasurement (gains) losses
(270)
(277)
(150)
22
Interest credited to policyholder account balances
3,067
2,400
4,741
4,047
Amortization of deferred policy acquisition costs, value of business acquired and negative value of business acquired
588
528
1,156
1,047
Interest expense on debt
292
269
557
527
Other expenses, net of capitalization of deferred policy acquisition costs
2,964
2,522
5,929
5,095
Total expenses
18,119
16,360
35,686
33,575
Income (loss) before provision for income tax
1,035
980
2,542
2,334
Provision for income tax expense (benefit)
256
245
601
649
Net income (loss)
779
735
1,941
1,685
Less: Net income (loss) attributable to noncontrolling interests and redeemable noncontrolling interests
43
6
20
11
Net income (loss) attributable to MetLife, Inc.
736
729
1,921
1,674
Less: Preferred stock dividends
31
31
76
97
Net income (loss) available to MetLife, Inc.’s common shareholders
$
705
$
698
$
1,845
$
1,577
Three Months Ended June 30, 2026 Compared with the Three Months Ended June 30, 2025
Discussions below are presented in order of magnitude.
Net income (loss) available to MetLife, Inc.’s common shareholders increased $7 million primarily due to higher adjusted earnings available to common shareholders, largely offset by an unfavorable change in net investment gains (losses).
Adjusted earnings available to common shareholders(1) increased. See “— Consolidated Results — Adjusted Earnings Available to Common Shareholders.”
Net investment gains (losses)(2) decreased net income (loss) available to MetLife, Inc.’s common shareholders due to (i) higher losses on sales of fixed maturity securities and subsidiaries; (ii) higher mark-to-market losses on fair value option (“FVO”) securities; and (iii) lower mark-to-market gains on equity securities, partially offset by lower increases to the ACL on mortgage loans.
Six Months Ended June 30, 2026 Compared with the Six Months Ended June 30, 2025
Discussions below are presented in order of magnitude.
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Net income (loss) available to MetLife, Inc.’s common shareholders increased $268 million primarily due to higher adjusted earnings available to common shareholders, a favorable change in market risk benefit remeasurement (gains) losses, and a lower effective tax rate, largely offset by unfavorable changes in net investment gains (losses) and net derivative gains (losses).
Adjusted earnings available to common shareholders(1) increased. See “— Consolidated Results — Adjusted Earnings Available to Common Shareholders.”
Market risk benefit remeasurement (gains) losses(3) contributed to the increase in net income (loss) available to MetLife, Inc.’s common shareholders due to U.S. long-term interest rates increasing in the current period compared to decreasing in the prior period and certain key equity indexes increasing more significantly in the current period than in the prior period, partially offset by ceded reinsurance.
T4Taxes contributed to the increase in net income (loss) available to MetLife, Inc.’s common shareholders due to a favorable change in the effective tax rate to 24% in the current period compared to 28% in the prior period. The current period effective tax rate on income before provision for income tax was 24% compared to the U.S. statutory rate of 21% primarily due to tax charges from (i) foreign earnings taxed at higher statutory rates than the U.S. statutory rate and foreign losses taxed at lower statutory rates; (ii) U.S. state and local taxes; (iii) the pending disposition of MetLife Ukraine; and (iv) non-deductible losses, partially offset by tax benefits from (i) non-taxable investment income; and (ii) low income housing and other tax credits, partially offset by the impact of tax equity investments.
The prior period effective tax rate on income before provision for income tax was 28% compared to the U.S. statutory rate of 21% primarily due to tax charges from (i) foreign earnings taxed at higher statutory rates than the U.S. statutory rate and foreign losses taxed at lower statutory rates; and (ii) non-deductible losses, partially offset by tax benefits from (i) non-taxable investment income; (ii) low income housing and other tax credits, partially offset by the impact of tax equity investments; and (iii) the corporate tax deduction for stock compensation.
Net investment gains (losses)(2) decreased net income (loss) available to MetLife, Inc.’s common shareholders due to (i) higher losses on sales of fixed maturity securities and private equity investments; (ii) losses on foreign currency transactions in the current period compared to gains in the prior period; and (iii) higher impairments on real estate investments, partially offset by lower increases to the ACL on mortgage loans.
Net derivative gains (losses)(4,5) decreased net income (loss) available to MetLife, Inc.’s common shareholders due to (i) the U.S. dollar strengthening against the Japanese yen in the current period compared to weakening in the prior period, which had an unfavorable impact on the estimated fair value of sell-U.S. dollar currency forwards; (ii) long-term swap rates increasing in the current period compared to either decreasing or increasing less significantly in the prior period, which had an unfavorable impact on the estimated fair value of receiver forwards and swaps; and (iii) certain key equity indexes increasing more significantly in the current period than in the prior period, which had an unfavorable impact on the estimated fair value of short futures, partially offset by changes in the estimated fair value of the underlying assets, which had a favorable impact on the estimated fair value of embedded derivatives related to funds withheld on reinsurance agreements.
__________________
(1)See “— Non-GAAP and Other Financial Disclosures” for information regarding adjusted earnings available to common shareholders and related measures.
(2)See “— Investments — Overview” and “— Investments — Investment Portfolio Results — Net Investment Gains (Losses)” for information regarding management of our investment portfolio.
(3)See Note 6 of the Notes to the Interim Condensed Consolidated Financial Statements for further information on the Company’s MRBs.
(4)See “— Derivatives — Net Derivative Gains (Losses)” for information regarding the use of derivatives to hedge market risk.
(5)Includes amounts relating to investment hedge adjustments, which are also included in adjusted earnings available to common shareholders. See “— Investments — Investment Portfolio Results” for additional information.
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Reconciliations of net income (loss) available to MetLife, Inc.’s common shareholders to adjusted earnings available to common shareholders and premiums, fees and other revenues to adjusted premiums, fees and other revenues
Three Months Ended June 30, 2026
Group Benefits
RIS
Asia
Latin America
EMEA
MIM
Corporate & Other
Total
(In millions)
Net income (loss) available to MetLife, Inc.'s common shareholders
$
470
$
190
$
48
$
137
$
70
$
39
$
(249)
$
705
Add: Preferred stock dividends
—
—
—
—
—
—
31
31
Add: Net income (loss) attributable to noncontrolling interests and redeemable noncontrolling interests
—
—
26
2
14
—
1
43
Net income (loss)
470
190
74
139
84
39
(217)
779
Less: adjustments from net income (loss) to adjusted earnings available to common shareholders:
Revenues:
Net investment gains (losses)
(35)
(263)
(116)
29
(13)
(19)
(11)
(428)
Net derivative gains (losses)
5
(96)
(459)
60
(16)
—
(266)
(772)
Premiums
—
—
—
—
—
—
—
—
Universal life and investment-type product policy fees
—
—
—
—
—
—
24
24
Net investment income
(11)
265
343
(52)
602
3
1
1,151
Other revenues
—
31
—
23
—
14
36
104
Expenses:
Policyholder benefits and claims and policyholder dividends
—
18
87
(162)
—
—
15
(42)
Policyholder liability remeasurement (gains) losses
—
1
—
—
—
—
—
1
Market risk benefit remeasurement gains (losses)
—
31
19
—
8
—
212
270
Interest credited to policyholder account balances (“PABs”)
—
(55)
(346)
(71)
(589)
—
(27)
(1,088)
Capitalization of deferred policy acquisition costs (“DAC”)
—
—
—
—
—
—
—
—
Amortization of DAC, value of business acquired (“VOBA”) and negative VOBA
—
(1)
—
—
—
—
(3)
(4)
Interest expense on debt
—
—
—
—
—
(3)
(16)
(19)
Other expenses
—
(167)
—
—
(1)
(19)
(69)
(256)
Goodwill impairment
—
—
—
—
—
—
—
—
Provision for income tax (expense) benefit
8
49
126
44
(15)
6
16
234
Adjusted earnings
$
503
$
377
$
420
$
268
$
108
$
57
$
(129)
$
1,604
Less: Preferred stock dividends
—
—
—
—
—
—
31
31
Adjusted earnings available to common shareholders
$
503
$
377
$
420
$
268
$
108
$
57
$
(160)
$
1,573
Premiums, fees and other revenues
$
6,512
$
1,800
$
1,698
$
1,922
$
806
$
331
$
583
$
13,652
Less: adjustments to premiums, fees and other revenues
—
31
—
23
—
14
60
128
Adjusted premiums, fees and other revenues
$
6,512
$
1,769
$
1,698
$
1,899
$
806
$
317
$
523
$
13,524
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Three Months Ended June 30, 2025
Group Benefits
RIS
Asia
Latin America
EMEA
MIM
Corporate & Other
Total
(In millions)
Net income (loss) available to MetLife, Inc.'s common shareholders
$
366
$
113
$
335
$
202
$
96
$
63
$
(477)
$
698
Add: Preferred stock dividends
—
—
—
—
—
—
31
31
Add: Net income (loss) attributable to noncontrolling interests and redeemable noncontrolling interests
—
—
—
2
1
—
3
6
Net income (loss)
366
113
335
204
97
63
(443)
735
Less: adjustments from net income (loss) to adjusted earnings available to common shareholders:
Revenues:
Net investment gains (losses)
(4)
(200)
69
(2)
3
17
(156)
(273)
Net derivative gains (losses)
(27)
(139)
(172)
18
(15)
—
(461)
(796)
Premiums
3
—
—
—
—
—
—
3
Universal life and investment-type product policy fees
—
—
—
—
—
—
—
—
Net investment income
(15)
13
195
13
271
—
(18)
459
Other revenues
—
(21)
—
8
—
—
39
26
Expenses:
Policyholder benefits and claims and policyholder dividends
1
4
40
(22)
—
—
17
40
Policyholder liability remeasurement (gains) losses
—
—
—
—
—
—
—
—
Market risk benefit remeasurement gains (losses)
—
54
14
—
(1)
—
210
277
Interest credited to PABs
—
1
(183)
(53)
(256)
—
(25)
(516)
Capitalization of DAC
—
—
—
—
—
—
—
—
Amortization of DAC, VOBA and negative VOBA
—
—
—
—
—
—
—
—
Interest expense on debt
—
—
—
—
—
—
—
—
Other expenses
(2)
(37)
—
3
—
(4)
(33)
(73)
Goodwill impairment
—
—
—
—
—
—
—
—
Provision for income tax (expense) benefit
9
68
26
6
(5)
(4)
95
195
Adjusted earnings
$
401
$
370
$
346
$
233
$
100
$
54
$
(111)
$
1,393
Less: Preferred stock dividends
—
—
—
—
—
—
31
31
Adjusted earnings available to common shareholders
$
401
$
370
$
346
$
233
$
100
$
54
$
(142)
$
1,362
Adjusted earnings available to common shareholders on a constant currency basis (1)
$
401
$
370
$
337
$
258
$
97
$
54
$
(142)
$
1,375
Premiums, fees and other revenues
$
6,449
$
1,361
$
1,699
$
1,642
$
719
$
237
$
641
$
12,748
Less: adjustments to premiums, fees and other revenues
3
(21)
—
8
—
—
39
29
Adjusted premiums, fees and other revenues
$
6,446
$
1,382
$
1,699
$
1,634
$
719
$
237
$
602
$
12,719
Adjusted premiums, fees and other revenues on a constant currency basis (1)
$
6,446
$
1,382
$
1,603
$
1,789
$
717
$
237
$
602
$
12,776
__________________
(1)Amounts for Group Benefits, RIS, MIM and Corporate & Other are shown on a reported basis, as constant currency impact is not significant.
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Six Months Ended June 30, 2026
Group Benefits
RIS
Asia
Latin America
EMEA
MIM
Corporate & Other
Total
(In millions)
Net income (loss) available to MetLife, Inc.'s common shareholders
$
888
$
770
$
50
$
375
$
180
$
69
$
(487)
$
1,845
Add: Preferred stock dividends
—
—
—
—
—
—
76
76
Add: Net income (loss) attributable to noncontrolling interests and redeemable noncontrolling interests
—
—
26
4
(13)
—
3
20
Net income (loss)
888
770
76
379
167
69
(408)
1,941
Less: adjustments from net income (loss) to adjusted earnings available to common shareholders:
Revenues:
Net investment gains (losses)
(71)
(400)
(399)
(9)
(23)
(37)
(159)
(1,098)
Net derivative gains (losses)
27
175
(899)
106
(13)
—
(94)
(698)
Premiums
—
—
—
—
—
—
—
—
Universal life and investment-type product policy fees
—
—
—
—
—
—
49
49
Net investment income
(24)
475
174
(72)
418
3
33
1,007
Other revenues
—
67
—
43
—
28
73
211
Expenses:
Policyholder benefits and claims and policyholder dividends
—
35
161
(160)
—
—
31
67
Policyholder liability remeasurement (gains) losses
—
2
—
—
—
—
—
2
Market risk benefit remeasurement gains (losses)
—
13
18
—
9
—
110
150
Interest credited to PABs
—
(103)
(197)
(62)
(431)
—
(50)
(843)
Capitalization of DAC
—
—
—
—
—
—
—
—
Amortization of DAC, VOBA and negative VOBA
—
(1)
—
—
—
—
(6)
(7)
Interest expense on debt
—
—
—
—
—
(3)
(16)
(19)
Other expenses
—
(336)
—
1
(1)
(38)
(145)
(519)
Goodwill impairment
—
—
—
—
—
—
—
—
Provision for income tax (expense) benefit
14
15
311
35
(10)
12
27
404
Adjusted earnings
$
942
$
828
$
907
$
497
$
218
$
104
$
(261)
$
3,235
Less: Preferred stock dividends
—
—
—
—
—
—
76
76
Adjusted earnings available to common shareholders
$
942
$
828
$
907
$
497
$
218
$
104
$
(337)
$
3,159
Premiums, fees and other revenues
$
13,051
$
4,226
$
3,436
$
3,839
$
1,603
$
659
$
1,153
$
27,967
Less: adjustments to premiums, fees and other revenues
—
67
—
43
—
28
122
260
Adjusted premiums, fees and other revenues
$
13,051
$
4,159
$
3,436
$
3,796
$
1,603
$
631
$
1,031
$
27,707
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Six Months Ended June 30, 2025
Group Benefits
RIS
Asia
Latin America
EMEA
MIM
Corporate & Other
Total
(In millions)
Net income (loss) available to MetLife, Inc.'s common shareholders
$
657
$
222
$
824
$
430
$
171
$
62
$
(789)
$
1,577
Add: Preferred stock dividends
—
—
—
—
—
—
97
97
Add: Net income (loss) attributable to noncontrolling interests and redeemable noncontrolling interests
—
—
—
4
2
—
5
11
Net income (loss)
657
222
824
434
173
62
(687)
1,685
Less: adjustments from net income (loss) to adjusted earnings available to common shareholders:
Revenues:
Net investment gains (losses)
(31)
(413)
103
1
—
(18)
(302)
(660)
Net derivative gains (losses)
(85)
(198)
(2)
176
(26)
—
(229)
(364)
Premiums
7
—
—
—
—
—
—
7
Universal life and investment-type product policy fees
—
—
—
—
—
—
—
—
Net investment income
(29)
15
58
(29)
175
—
(59)
131
Other revenues
—
(40)
—
8
—
—
79
47
Expenses:
Policyholder benefits and claims and policyholder dividends
—
(20)
84
(89)
—
—
33
8
Policyholder liability remeasurement (gains) losses
—
—
—
—
—
—
—
—
Market risk benefit remeasurement gains (losses)
—
25
13
—
—
—
(60)
(22)
Interest credited to PABs
—
1
(41)
(94)
(160)
—
(52)
(346)
Capitalization of DAC
—
—
—
—
—
—
—
—
Amortization of DAC, VOBA and negative VOBA
—
—
—
—
—
—
—
—
Interest expense on debt
—
—
—
—
—
—
—
—
Other expenses
(5)
(72)
—
5
(1)
(8)
(61)
(142)
Goodwill impairment
—
—
—
—
—
—
—
—
Provision for income tax (expense) benefit
29
148
(109)
4
2
6
138
218
Adjusted earnings
$
771
$
776
$
718
$
452
$
183
$
82
$
(174)
$
2,808
Less: Preferred stock dividends
—
—
—
—
—
—
97
97
Adjusted earnings available to common shareholders
$
771
$
776
$
718
$
452
$
183
$
82
$
(271)
$
2,711
Adjusted earnings available to common shareholders on a constant currency basis (1)
$
771
$
776
$
709
$
509
$
183
$
82
$
(271)
$
2,759
Premiums, fees and other revenues
$
12,883
$
3,799
$
3,380
$
3,155
$
1,387
$
455
$
1,328
$
26,387
Less: adjustments to premiums, fees and other revenues
7
(40)
—
8
—
—
79
54
Adjusted premiums, fees and other revenues
$
12,876
$
3,839
$
3,380
$
3,147
$
1,387
$
455
$
1,249
$
26,333
Adjusted premiums, fees and other revenues on a constant currency basis (1)
$
12,876
$
3,839
$
3,265
$
3,493
$
1,412
$
455
$
1,249
$
26,589
__________________
(1)Amounts for Group Benefits, RIS, MIM and Corporate & Other are shown on a reported basis, as constant currency impact is not significant.
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Consolidated Results — Adjusted Earnings Available to Common Shareholders
Business Overview. Adjusted premiums, fees and other revenues for the three months ended June 30, 2026 increased $805 million, or 6%, compared to the prior period. Adjusted premiums, fees and other revenues, net of foreign currency fluctuations, increased $748 million, or 6%, compared to the prior period due to contributions from all segments. In the RIS segment, higher premiums from our United Kingdom (“U.K.”) funded reinsurance, U.K. longevity reinsurance, and structured settlements businesses were partially offset by lower premiums from our pension risk transfer business. The Latin America and EMEA segments experienced increases in adjusted premiums, fees and other revenues across their respective regions while higher premiums in life products in Korea and growth in voluntary products were the primary drivers for the Asia and Group Benefits segments, respectively.
The PineBridge acquisition in December 2025 drove the increase in other revenues in the MIM segment. The segment increases were partially offset by a decline in Corporate & Other from business run-off.
Three Months
Ended
June 30,
Six Months
Ended
June 30,
2026
2025
2026
2025
(In millions)
Group Benefits
$
503
$
401
$
942
$
771
RIS
377
370
828
776
Asia
420
346
907
718
Latin America
268
233
497
452
EMEA
108
100
218
183
MIM
57
54
104
82
Corporate & Other
(160)
(142)
(337)
(271)
Adjusted earnings available to common shareholders
$
1,573
$
1,362
$
3,159
$
2,711
Adjusted earnings available to common shareholders on a constant currency basis
$
1,573
$
1,375
$
3,159
$
2,759
Adjusted premiums, fees and other revenues
$
13,524
$
12,719
$
27,707
$
26,333
Adjusted premiums, fees and other revenues on a constant currency basis
$
13,524
$
12,776
$
27,707
$
26,589
Three Months Ended June 30, 2026 Compared with the Three Months Ended June 30, 2025
Discussions below are presented in order of magnitude.
Adjusted earnings available to common shareholders increased $211 million on a reported basis primarily due to favorable underwriting and other insurance adjustments, higher market factors and volume growth, partially offset by higher expenses.
T5Underwriting and other insurance adjustments contributed to the increase in adjusted earnings available to common shareholders primarily reflecting favorable mortality results in the Group Benefits segment, as well as a favorable change resulting from refinements to certain insurance liabilities in both periods.
Market factors contributed to the increase in adjusted earnings available to common shareholders primarily driven by higher recurring investment income and variable investment income, partially offset by higher interest credited expenses. Higher recurring investment income reflected positive flows from pension risk transfer transactions and funding agreement issuances, higher income on real estate investments (which includes the impact of the fourth quarter 2025 change to the definition of adjusted earnings to exclude depreciation of wholly-owned real estate and real estate joint ventures (“REJVs”)), and higher yields on fixed income securities, partially offset by the impact from a reinsurance transaction in the RIS segment and lower average invested assets in Corporate & Other.
Variable investment income increased due to higher income on bond prepayment fees, partially offset by lower returns on mortgage loan funds. Higher interest credited expenses were due to higher average interest crediting rates on investment-type and certain insurance products in the Asia segment.
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Volume growth contributed to the increase in adjusted earnings available to common shareholders primarily driven by higher average invested assets, primarily in the Asia and Latin America segments and business growth in the EMEA and Asia segments, partially offset by higher interest credited expenses on investment-type and certain insurance products, primarily in the Asia segment.
T6Expenses decreased adjusted earnings available to common shareholders primarily due to higher legal costs, corporate-related expenses and employee-related expenses in Corporate & Other, as well as higher expenses in the EMEA segment.
Six Months Ended June 30, 2026 Compared with the Six Months Ended June 30, 2025
Discussions below are presented in order of magnitude.
Adjusted earnings available to common shareholders increased $448 million on a reported basis primarily due to higher market factors, favorable underwriting and other insurance adjustments and volume growth.
Market factors contributed to the increase in adjusted earnings available to common shareholders primarily from higher variable investment income and recurring investment income, partially offset by higher interest credited expenses. Variable investment income increased due to higher returns on private equity funds and higher income on bond prepayment fees, partially offset by lower returns on real estate funds and mortgage loan funds. Recurring investment income increased due to positive flows from pension risk transfer transactions and funding agreement issuances, higher income on real estate investments (which includes the impact of the aforementioned fourth quarter 2025 change to the definition of adjusted earnings) and higher yields on fixed income securities, partially offset by the impact from a reinsurance transaction in the RIS segment and lower average invested assets in Corporate & Other. Higher interest credited expenses were primarily due to higher average interest crediting rates on investment-type and certain insurance products in the Asia segment.
Underwriting and other insurance adjustments contributed to the increase in adjusted earnings available to common shareholders primarily due to favorable mortality results, particularly in the Group Benefits segment.
Volume growth contributed to the increase in adjusted earnings available to common shareholders primarily due to higher average invested assets, primarily in the Asia and Latin America segments, and business growth in the EMEA, Asia and Group Benefits segments, partially offset by an increase in interest credited expenses on investment-type and certain insurance products, primarily in the Asia segment.
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Segment Results and Corporate & Other
Group Benefits
Business Overview. Adjusted premiums, fees and other revenues for the three months ended June 30, 2026 increased $66 million, or 1%, compared to the prior period, primarily driven by growth in voluntary products, largely offset by a decrease in premiums related to our participating contracts, which can fluctuate with claims experience.
Three Months
Ended
June 30,
Six Months
Ended
June 30,
2026
2025
2026
2025
(In millions)
Adjusted earnings
$
503
$
401
$
942
$
771
Adjusted premiums, fees and other revenues
$
6,512
$
6,446
$
13,051
$
12,876
Three Months Ended June 30, 2026 Compared with the Three Months Ended June 30, 2025
Discussions below are presented in order of magnitude.
Adjusted earnings increased $102 million predominantly driven by favorable underwriting and other insurance adjustments.
Underwriting and other insurance adjustments contributed to the increase in adjusted earnings. Mortality results improved in the current period due to lower claims incidence and severity in the life business, while morbidity results benefited from favorable claims experience in the disability business and favorable rate actions within the dental business.
Six Months Ended June 30, 2026 Compared with the Six Months Ended June 30, 2025
Discussions below are presented in order of magnitude.
Adjusted earnings increased $171 million primarily driven by favorable underwriting and other insurance adjustments and volume growth.
Underwriting and other insurance adjustments contributed $133 million to the increase in adjusted earnings. Mortality results improved in the current period, driven by lower claims incidence and severity in the life business. These favorable results were partially offset by unfavorable morbidity experience across products, although this impact was mitigated by favorable rate actions within the dental business.
Volume growth in both voluntary and core products contributed to the increase in adjusted earnings.
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Retirement & Income Solutions
Business Overview. Adjusted premiums, fees and other revenues for the three months ended June 30, 2026 increased $387 million, or 28%, compared to the prior period. The increase was primarily due to higher premiums from our U.K. funded reinsurance, U.K. longevity reinsurance, and structured settlements businesses, partially offset by lower premiums from our pension risk transfer business. Changes in premiums were more than offset by a corresponding change in policyholder benefits, both of which are reported net of ceded reinsurance.
Three Months
Ended
June 30,
Six Months
Ended
June 30,
2026
2025
2026
2025
(In millions)
Adjusted earnings
$
377
$
370
$
828
$
776
Adjusted premiums, fees and other revenues
$
1,769
$
1,382
$
4,159
$
3,839
Three Months Ended June 30, 2026 Compared with the Three Months Ended June 30, 2025
Discussions below are presented in order of magnitude.
Adjusted earnings increased $7 million primarily due to market factors, partially offset by higher expenses.
Market factors contributed to the increase in adjusted earnings driven by higher recurring investment income, largely offset by higher interest credited expenses and lower variable investment income. Higher recurring investment income reflected positive flows from pension risk transfer transactions and funding agreement issuances, higher yields on fixed income securities, and higher income on real estate investments (which includes the impact of the aforementioned fourth quarter 2025 change to the definition of adjusted earnings), partially offset by the impact from a reinsurance transaction. The increase in interest credited expenses was primarily due to growth in certain insurance products and investment-type products, partially offset by the impact from a reinsurance transaction and lower average interest crediting rates on investment-type products. Lower variable investment income was driven by lower returns on private equity funds and mortgage loan funds, largely offset by higher income on bond prepayment fees.
Expenses decreased adjusted earnings primarily due to higher variable costs driven by growth, partially offset by lower direct expenses.
Six Months Ended June 30, 2026 Compared with the Six Months Ended June 30, 2025
Discussions below are presented in order of magnitude.
Adjusted earnings increased $52 million predominantly due to market factors.
Market factors contributed to the increase in adjusted earnings driven by higher recurring investment income and variable investment income, partially offset by higher interest credited expenses. Higher recurring investment income reflected positive flows from pension risk transfer transactions and funding agreement issuances, higher yields on fixed income securities and mortgage loans, and higher income on real estate investments (which includes the impact of the aforementioned fourth quarter 2025 change to the definition of adjusted earnings), partially offset by the impact from a reinsurance transaction. Variable investment income also increased, driven by higher income on bond prepayment fees and higher returns on private equity funds, largely offset by lower returns on real estate funds and mortgage loan funds.
The increase in interest credited expenses was primarily due to growth in certain insurance products and investment-type products, partially offset by the impact from a reinsurance transaction and lower average interest crediting rates on investment-type products.
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Asia
Business Overview. Adjusted premiums, fees and other revenues for the three months ended June 30, 2026 were essentially flat compared to the prior period. Adjusted premiums, fees and other revenues, net of foreign currency fluctuations, increased $95 million, or 6%, compared to the prior period, as increases in premiums in life products in Korea, and higher fee income from Japan’s foreign currency annuity and yen-denominated life products were partially offset by lower premiums from Japan’s accident & health products.
Three Months
Ended
June 30,
Six Months
Ended
June 30,
2026
2025
2026
2025
(In millions)
Adjusted earnings
$
420
$
346
$
907
$
718
Adjusted earnings on a constant currency basis
$
420
$
337
$
907
$
709
Adjusted premiums, fees and other revenues
$
1,698
$
1,699
$
3,436
$
3,380
Adjusted premiums, fees and other revenues on a constant currency basis
$
1,698
$
1,603
$
3,436
$
3,265
Three Months Ended June 30, 2026 Compared with the Three Months Ended June 30, 2025
Discussions below are presented in order of magnitude.
Adjusted earnings increased $74 million on a reported basis primarily driven by market factors and volume growth.
Market factors contributed $54 million to the increase in adjusted earnings driven by higher recurring investment income and variable investment income, partially offset by higher interest credited expenses. Higher recurring investment income was primarily due to higher yields on fixed income securities. Higher variable investment income was primarily due to higher returns on private equity funds. Higher interest credited expenses were primarily due to higher average interest crediting rates on investment-type and certain insurance products.
Volume growth contributed to the increase in adjusted earnings driven by business growth across the region, including higher fee income and higher positive net flows, which resulted in higher average invested assets. This increase was partially offset by higher interest credited expenses on investment-type and certain insurance products.
Six Months Ended June 30, 2026 Compared with the Six Months Ended June 30, 2025
Discussions below are presented in order of magnitude.
Adjusted earnings increased $189 million on a reported basis primarily driven by market factors and volume growth.
Market factors contributed $135 million to the increase in adjusted earnings driven by higher variable investment income and higher recurring investment income, partially offset by higher interest credited expenses. Higher variable investment income was primarily due to higher returns on private equity funds. Higher recurring investment income was primarily due to higher yields on fixed income securities. Higher interest credited expenses were primarily due to higher average interest crediting rates on investment-type and certain insurance products.
Volume growth contributed to the increase in adjusted earnings driven by business growth across the region, including higher fee income and higher positive net flows, which resulted in higher average invested assets. This increase was partially offset by higher interest credited expenses on investment-type and certain insurance products.
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Latin America
Business Overview. Adjusted premiums, fees and other revenues for the three months ended June 30, 2026 increased $265 million, or 16%, compared to the prior period. Adjusted premiums, fees and other revenues, net of foreign currency fluctuations, increased $110 million, or 6%, compared to the prior period, mainly driven by strong sales and solid persistency across the region.
Three Months
Ended
June 30,
Six Months
Ended
June 30,
2026
2025
2026
2025
(In millions)
Adjusted earnings
$
268
$
233
$
497
$
452
Adjusted earnings on a constant currency basis
$
268
$
258
$
497
$
509
Adjusted premiums, fees and other revenues
$
1,899
$
1,634
$
3,796
$
3,147
Adjusted premiums, fees and other revenues on a constant currency basis
$
1,899
$
1,789
$
3,796
$
3,493
Three Months Ended June 30, 2026 Compared with the Three Months Ended June 30, 2025
Discussions below are presented in order of magnitude.
Adjusted earnings increased $35 million on a reported basis primarily due to favorable foreign currency impacts, volume growth and tax-related items, partially offset by unfavorable underwriting and other insurance adjustments.
Foreign currency movements contributed $25 million to the increase in adjusted earnings as the Mexican and Chilean peso strengthened against the U.S. dollar.
Volume growth contributed to the increase in adjusted earnings driven by strong sales of single premium immediate annuities in Chile, which resulted in higher average invested assets, as well as higher sales and higher average invested assets primarily in Mexico. These increases were partially offset by higher interest credited expenses on investment-type and certain insurance products.
Taxes contributed to the increase in adjusted earnings due to tax adjustments in both periods, including a recurring tax item related to inflation, primarily in Chile, and adjustments related to the filing of tax returns in Mexico and Chile.
Underwriting and other insurance adjustments decreased adjusted earnings due to the unfavorable impact of higher value-added tax in Mexico.
Six Months Ended June 30, 2026 Compared with the Six Months Ended June 30, 2025
Discussions below are presented in order of magnitude.
Adjusted earnings increased $45 million on a reported basis primarily due to favorable foreign currency impacts and volume growth, partially offset by unfavorable underwriting and other insurance adjustments.
Foreign currency movements contributed $57 million to the increase in adjusted earnings as the Mexican and Chilean peso strengthened against the U.S. dollar.
Volume growth contributed to the increase in adjusted earnings driven by strong sales of single premium immediate annuities in Chile, which resulted in higher average invested assets, as well as higher sales and higher average invested assets primarily in Mexico. These increases were partially offset by higher interest credited expenses on investment-type and certain insurance products.
Underwriting and other insurance adjustments decreased adjusted earnings by $31 million due to the unfavorable impact of higher value-added tax in Mexico.
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EMEA
Business Overview. Adjusted premiums, fees and other revenues for the three months ended June 30, 2026 increased $87 million, or 12%, compared to the prior period. Adjusted premiums, fees and other revenues, net of foreign currency fluctuations, increased $89 million, or 12%, compared to the prior period primarily due to strong sales and solid renewal activity across the region.
Three Months
Ended
June 30,
Six Months
Ended
June 30,
2026
2025
2026
2025
(In millions)
Adjusted earnings
$
108
$
100
$
218
$
183
Adjusted earnings on a constant currency basis
$
108
$
97
$
218
$
183
Adjusted premiums, fees and other revenues
$
806
$
719
$
1,603
$
1,387
Adjusted premiums, fees and other revenues on a constant currency basis
$
806
$
717
$
1,603
$
1,412
Three Months Ended June 30, 2026 Compared with the Three Months Ended June 30, 2025
Discussions below are presented in order of magnitude.
Adjusted earnings increased $8 million on a reported basis primarily due to volume growth, partially offset by higher expenses.
Volume growth contributed to the increase in adjusted earnings driven by increased sales and business growth across the region for the accident & health and life businesses, as well as the employee benefits business in the U.K. and the Gulf.
Expenses decreased adjusted earnings due to higher direct expenses, including employee-related costs, as well as pension, postretirement and postemployment benefits costs and various other operating expenses, across the region.
Six Months Ended June 30, 2026 Compared with the Six Months Ended June 30, 2025
Discussions below are presented in order of magnitude.
Adjusted earnings increased $35 million on a reported basis primarily due to volume growth and favorable market factors, partially offset by higher expenses.
Volume growth contributed $44 million to the increase in adjusted earnings driven by increased sales and business growth across the region for the accident & health and life businesses, as well as the employee benefits business in the U.K. and the Gulf.
Market factors contributed to the increase in adjusted earnings driven by higher recurring investment income, primarily due to higher yields on fixed income securities.
Expenses decreased adjusted earnings due to higher direct expenses, including employee-related costs, as well as pension, postretirement and postemployment benefits costs and various other operating expenses, across the region.
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MetLife Investment Management
Business Overview. T7Other revenues for the three months ended June 30, 2026 increased $80 million, or 34%, compared to the prior period, primarily as a result of the PineBridge acquisition in December 2025, which increased Institutional Client AUM. Organic business growth across public fixed income and private fixed income also contributed to the increase in Institutional Client revenues.
Three Months
Ended
June 30,
Six Months
Ended
June 30,
2026
2025
2026
2025
(In millions)
Adjusted earnings
$
57
$
54
$
104
$
82
Other revenues by client segment:
Institutional Client
$
173
$
95
$
345
$
172
General Account
144
142
286
283
Other revenues
$
317
$
237
$
631
$
455
Three Months Ended June 30, 2026 Compared with the Three Months Ended June 30, 2025
Discussions below are presented in order of magnitude.
Adjusted earnings increased $3 million primarily driven by higher revenues from higher Institutional Client AUM as a result of the PineBridge acquisition and organic business growth across public fixed income and private fixed income. Higher expenses driven by the PineBridge acquisition were partially offset by savings generated through synergy initiatives.
Six Months Ended June 30, 2026 Compared with the Six Months Ended June 30, 2025
Discussions below are presented in order of magnitude.
Adjusted earnings increased $22 million primarily driven by higher revenues from higher Institutional Client AUM as a result of the PineBridge acquisition and organic business growth across public fixed income and private fixed income. Higher expenses driven by the PineBridge acquisition were partially offset by savings generated through synergy initiatives.
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Corporate & Other
Three Months
Ended
June 30,
Six Months
Ended
June 30,
2026
2025
2026
2025
(In millions)
Adjusted earnings available to common shareholders
$
(160)
$
(142)
$
(337)
$
(271)
Adjusted premiums, fees and other revenues
$
523
$
602
$
1,031
$
1,249
Three Months Ended June 30, 2026 Compared with the Three Months Ended June 30, 2025
Discussions below are presented in order of magnitude.
Adjusted earnings available to common shareholders decreased $18 million primarily due to higher expenses, and strategic reinsurance transactions, substantially offset by favorable underwriting and other insurance adjustments and higher market factors.
Other expenses decreased adjusted earnings available to common shareholders by $26 million driven by higher legal costs and increased corporate-related and employee-related expenses.
Strategic reinsurance transactions that closed in December 2025 decreased adjusted earnings available to common shareholders.
Underwriting and other insurance adjustments increased adjusted earnings available to common shareholders driven by favorable reserve refinements in the current period and lower dividend expense attributable to business run-off, partially offset by unfavorable claims experience in our long-term care business.
Market factors increased adjusted earnings available to common shareholders primarily due to higher recurring investment income driven by increased income from real estate investments (which includes the impact of the aforementioned fourth quarter 2025 change to the definition of adjusted earnings), largely offset by lower average invested assets and lower yields on fixed income securities.
Six Months Ended June 30, 2026 Compared with the Six Months Ended June 30, 2025
Discussions below are presented in order of magnitude.
Adjusted earnings available to common shareholders decreased $66 million primarily due to higher expenses and strategic reinsurance transactions, partially offset by favorable underwriting and other insurance adjustments and higher market factors.
Other expenses decreased adjusted earnings available to common shareholders by $55 million driven by higher legal costs and increased corporate-related and employee-related expenses.
Strategic reinsurance transactions that closed in December 2025 decreased adjusted earnings available to common shareholders.
Underwriting and other insurance adjustments increased adjusted earnings available to common shareholders driven by lower dividend expense attributable to business run-off and favorable reserve refinements in the current period, partially offset by unfavorable claims experience in our long-term care business.
Market factors increased adjusted earnings available to common shareholders primarily due to higher variable investment income and lower interest credited expenses, partially offset by lower recurring investment income. Higher variable investment income was primarily due to higher returns on private equity funds, partially offset by lower returns on real estate funds. Interest credited expenses decreased on long duration products. Lower recurring investment income was the result of lower average invested assets and lower yields on fixed income securities and mortgage loans, partially offset by higher income on real estate investments (which includes the impact of the aforementioned fourth quarter 2025 change to the definition of adjusted earnings).
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Investments
Overview
We maintain a diversified global general account investment portfolio to support our mix of liabilities in our global businesses. We position our portfolio based on relative value and our view of the economy and financial markets. We maintain our focus on the appropriate level of diversification and asset quality.
We manage our investment portfolio using disciplined asset/liability management (“ALM”) principles, focusing on cash flow and duration to support our current and future liabilities. Our intent is to match the timing and amount of liability cash outflows with invested assets that have cash inflows of comparable timing and amount, while optimizing risk-adjusted investment income and risk-adjusted total return. Our investment portfolio is heavily weighted toward fixed income investments, with most of our portfolio invested in fixed maturity securities available-for-sale (“AFS”) and mortgage loans. These securities and loans have varying maturities and other characteristics which cause them to be generally well suited for matching the cash flow and duration of insurance liabilities.
Invested Assets and Cash and Cash Equivalents Subject to Ceded Reinsurance
The Company maintains invested assets and cash and cash equivalents that are subject to ceded reinsurance arrangements with third parties and joint ventures. “Reinsurance activity” relates to amounts subject to ceded reinsurance arrangements with third parties and joint ventures, including (i) the related investment returns and expenses which are passed through to the reinsurers and (ii) the corresponding invested assets and cash and cash equivalents. Reinsurance activity, unless otherwise stated, has been excluded from the amounts within the Investments section of Management’s Discussion and Analysis of Financial Condition and Results of Operations. See Note 2 of the Notes to the Interim Condensed Consolidated Financial Statements and Note 9 of the Notes to the Consolidated Financial Statements included in the 2025 Annual Report for more information about Reinsurance activity and reinsurance, respectively.
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Table of Contents
The following table presents the carrying value of invested assets and cash and cash equivalents subject to ceded reinsurance at:
June 30, 2026
December 31, 2025
(In millions)
Fixed maturity securities AFS:
U.S. corporate
$
6,040
$
4,911
Foreign corporate
2,475
2,329
Foreign government
885
720
Residential mortgage-backed securities (“RMBS”)
2,143
2,987
Asset-backed securities and collateralized loan obligations (collectively, “ABS & CLO”)
3,334
2,139
Commercial mortgage-backed securities (“CMBS”)
753
812
Municipals
469
486
U.S. government and agency
1,447
3,816
Total fixed maturity securities AFS
17,546
18,200
Equity securities
120
105
Mortgage loans:
Agricultural
878
910
Commercial
903
829
Residential
1,332
720
Total mortgage loans
3,113
2,459
Policy loans
356
—
Real estate and REJVs
143
9
Other limited partnership interests (“OLPI”)
631
205
Other invested assets - derivatives
57
25
Other invested assets - other
147
114
Short-term investments, cash and cash equivalents
489
1,314
Total invested assets and cash and cash equivalents subject to ceded reinsurance
$
22,602
$
22,431
Mortgage Loans Originated for Third Parties
The Company originates and acquires mortgage loans and, in certain cases, transfers proportional rights to cash flows from certain mortgage loans to third parties under participation agreements, which are recorded as secured borrowings. “Third-party mortgage loan activity” relates to amounts associated with mortgage loans originated and acquired for third parties, including (i) the related investment returns and expenses which are passed through to the third-party lenders and (ii) the corresponding mortgage loan assets. Third-party mortgage loan activity, unless otherwise stated, has been excluded from the amounts within the Investments section of Management’s Discussion and Analysis of Financial Condition and Results of Operations.
The following table presents mortgage loan assets originated and acquired and transferred to third parties at:
June 30, 2026
December 31, 2025
Portfolio Segment
Carrying Value
(In millions)
Commercial
$
5,234
$
6,017
Agricultural
381
350
Total mortgage loan assets originated and acquired and transferred to third parties
$
5,615
$
6,367
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Current Environment
As a global financial services company, we continue to be impacted by the changing global financial and economic environment, the fiscal and monetary policy of governments and central banks around the world and other governmental measures. Global inflation, supply chain disruptions and acts of war continue to impact the global economy and financial markets and have caused volatility in the global equity, credit and real estate markets. See “— Industry Trends — Financial and Economic Environment” for further information regarding conditions in the global financial markets and the economy generally which may affect us. These factors may persist for some time and may continue to impact pricing levels of risk-bearing investments, as well as our business operations, investment portfolio and derivatives.
See “— Results of Operations — Consolidated Results” and “— Results of Operations — Consolidated Results — Adjusted Earnings Available to Common Shareholders” for impacts on our derivatives and analysis of the period over period changes in investment portfolio results and “Investments — Fixed Maturity Securities Available-for-Sale — Evaluation of Fixed Maturity Securities AFS for Credit Loss — Evaluation of Fixed Maturity Securities AFS in an Unrealized Loss Position” in Note 9 of the Notes to the Interim Condensed Consolidated Financial Statements for impacts on the net unrealized gain (loss) on our fixed maturity securities AFS.
Selected Country Investments
We have a market presence in numerous countries and, therefore, our investment portfolio, which supports our insurance operations and related policyholder liabilities, as well as our global portfolio diversification objectives, is exposed to risks posed by local political and economic conditions. The countries included in the following table have been the most affected by these risks. The table below presents a summary of selected country fixed maturity securities AFS, at estimated fair value, on a “country of risk basis” (i.e., where the issuer primarily conducts business).
Selected Country Fixed Maturity Securities AFS at June 30, 2026
Country
Sovereign (1)
Non-Financial
Services
Total (2)
(Dollars in millions)
Ukraine
$
19
$
2
$
21
Russian Federation
14
—
14
Total
$
33
$
2
$
35
Investment grade %
—
%
—
%
—
%
__________________
(1)Sovereign includes government and agency.
(2)The par value and amortized cost, net of ACL, of these securities were $69 million and $36 million, respectively, at June 30, 2026.
We manage direct and indirect investment exposure in the selected countries through fundamental analysis and we continually monitor and adjust our level of investment exposure. We do not expect that our general account investments in these countries will have a material adverse effect on our results of operations or financial condition.
Investment Portfolio Results
See “— Overview” for a discussion of our investment portfolio and a summary of how we manage our investment portfolio. Below is a reconciliation of net investment income under GAAP to adjusted net investment income and our yield table. The yield table presentation is consistent with how we measure our investment performance for management purposes, and we believe it enhances understanding of our investment portfolio results.
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Reconciliation of Net Investment Income under GAAP to Adjusted Net Investment Income
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
(In millions)
Net investment income — GAAP
$
6,702
$
5,661
$
12,057
$
10,546
Investment hedge adjustments
170
102
254
205
Unit-linked investment income
(998)
(498)
(680)
(271)
Reinsurance activity
(331)
(47)
(632)
(90)
Depreciation of wholly-owned real estate and REJVs
54
115
Consolidated collateralized financing entities
(23)
—
(23)
—
Other
(23)
(16)
(41)
25
Adjusted net investment income (1)
$
5,551
$
5,202
$
11,050
$
10,415
__________________
(1)See “Financial Measure and Segment Accounting Policies” in Note 2 of the Notes to the Interim Condensed Consolidated Financial Statements for a discussion of the adjustments made to net investment income under GAAP in calculating adjusted net investment income.
Yield Table
Three Months Ended
June 30,
Six Months Ended
June 30,
2026
2025
2026
2025
Asset Class
Yield % (1)
Amount
Yield % (1)
Amount
Yield % (1)
Amount
Yield % (1)
Amount
(Dollars in millions)
Fixed maturity securities (2), (3)
4.88
%
$
3,845
4.61
%
$
3,517
4.69
%
$
7,336
4.49
%
$
6,776
Mortgage loans (3)
5.31
992
5.12
1,026
5.25
1,971
5.17
2,082
Real estate and REJVs
4.77
155
3.47
120
4.20
275
3.74
254
Policy loans
5.89
108
5.64
113
5.78
217
5.51
220
Equity securities
2.78
4
2.30
3
3.55
10
4.24
12
OLPI
3.16
112
3.46
122
7.55
548
4.84
344
Cash and short-term investments
3.69
196
4.19
232
3.86
402
4.30
456
Other invested assets
—
315
—
218
—
656
—
583
Investment income
5.02
5,727
4.73
5,351
5.03
11,415
4.78
10,727
Investment fees and expenses
(0.16)
(176)
(0.13)
(149)
(0.16)
(365)
(0.14)
(311)
Net investment income including divested businesses (4)
4.86
%
5,551
4.60
%
5,202
4.87
%
11,050
4.64
%
10,416
Less: net investment income from divested businesses (4)
—
—
—
1
Adjusted net investment income
$
5,551
$
5,202
$
11,050
$
10,415
__________________
(1)We calculate annualized yields using adjusted net investment income as a percentage of average quarterly asset carrying values. Asset carrying values utilized in the calculation of yields exclude unrecognized unrealized gains (losses), Third-party mortgage loan activity, Reinsurance activity collateral received in connection with our securities lending program, annuities funding structured settlement claims, freestanding derivative assets, collateral received from derivative counterparties, contractholder-directed equity securities and FVO securities held by collateralized financing entities (“CFEs”). Invested assets reclassified to held-for-sale and ceded policy loans are included in the calculation of yields, but are otherwise excluded from asset carrying values. A yield is not presented for other invested assets, as it is not considered a meaningful measure of performance for this asset class.
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(2)Fixed maturity securities in the yield table includes FVO securities; accordingly, investment income (loss) from fixed maturity securities includes amounts from FVO securities of $162 million and $107 million for the three months ended June 30, 2026 and 2025, respectively, and $132 million and $87 million for the six months ended June 30, 2026 and 2025, respectively. Asset carrying values of FVO securities are included in the calculation of average quarterly fixed maturity securities asset carrying values in the yield calculation.
(3)Investment income from fixed maturity securities and mortgage loans includes prepayment fees.
(4)See “Financial Measure and Segment Accounting Policies” in Note 2 of the Notes to the Interim Condensed Consolidated Financial Statements for discussion of divested businesses.
See “— Results of Operations — Consolidated Results — Adjusted Earnings Available to Common Shareholders” for an analysis of the period over period changes in investment portfolio results.
Net Investment Gains (Losses)
We purchase investments to support our insurance liabilities and not to generate net investment gains and losses. However, net investment gains and losses are incurred and can change significantly from period to period due to changes in external influences, including changes in market factors such as interest rates, foreign currency exchange rates, credit spreads and equity markets; counterparty specific factors such as financial performance, credit rating and collateral valuation; and internal factors such as portfolio rebalancing. Changes in these factors from period to period can significantly impact the levels of provision for credit loss and impairments on our investment portfolio, as well as realized gains and losses on investments sold.
See “— Results of Operations — Consolidated Results” for an analysis of the period-over-period changes in realized gains (losses) on investments sold, provision (release) for credit loss and impairments and non-investment portfolio gains (losses).
Fixed Maturity Securities AFS and Equity Securities
The following table presents public and private fixed maturity securities AFS and equity securities held at:
June 30, 2026
December 31, 2025
Securities by Type
Estimated Fair Value
% of Total
Estimated Fair Value
% of Total
(Dollars in millions)
Fixed maturity securities AFS
Publicly traded
$
216,464
71.1
%
$
213,182
71.6
%
Privately-placed
88,173
28.9
84,549
28.4
Total fixed maturity securities AFS, excluding Reinsurance activity
$
304,637
100.0
%
$
297,731
100.0
%
Reinsurance activity
17,546
18,200
Total fixed maturity securities AFS
$
322,183
$
315,931
Percentage of cash and invested assets, excluding Reinsurance activity
63.6
%
63.1
%
Equity securities
Publicly traded
$
586
72.2
%
$
543
72.1
%
Privately-held
226
27.8
210
27.9
Total equity securities, excluding Reinsurance activity
$
812
100.0
%
$
753
100.0
%
Reinsurance activity
120
105
Total equity securities
$
932
$
858
Percentage of cash and invested assets, excluding Reinsurance activity
0.2
%
0.2
%
See Note 9 of the Notes to the Interim Condensed Consolidated Financial Statements for information about fixed maturity securities AFS by sector, contractual maturities, continuous gross unrealized losses and equity securities by security type and the related cost, net unrealized gains (losses) and estimated fair value of these securities; as well as realized gains (losses) on sales and disposals and unrealized net gains (losses) recognized in earnings.
Included within fixed maturity securities AFS are structured securities, including RMBS, ABS & CLO, and CMBS (collectively, “Structured Products”). See “— Structured Products” for further information.
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See “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Investments — Fixed Maturity Securities AFS and Equity Securities — Valuation of Securities” included in the 2025 Annual Report for further information on the processes used to value securities and the related controls.
Fair Value of Fixed Maturity Securities AFS and Equity Securities
Fixed maturity securities AFS and equity securities measured at estimated fair value on a recurring basis and their corresponding fair value pricing sources were as follows:
June 30, 2026
Level
Fixed Maturity
Securities AFS
Equity
Securities
(Dollars in millions)
Level 1
Quoted prices in active markets for identical assets
$
14,940
4.9
%
$
439
54.0
%
Level 2
Independent pricing sources
$
257,557
84.5
%
$
142
17.4
%
Internal matrix pricing or discounted cash flow techniques
—
—
4
0.5
Significant other observable inputs
$
257,557
84.5
%
$
146
17.9
%
Level 3
Independent pricing sources
$
30,635
10.1
%
$
108
13.5
%
Internal matrix pricing or discounted cash flow techniques
1,083
0.4
110
13.5
Independent broker quotations
422
0.1
9
1.1
Significant unobservable inputs
$
32,140
10.6
%
$
227
28.1
%
Total fixed maturity securities AFS and equity securities at estimated fair value, excluding Reinsurance activity
$
304,637
100.0
%
$
812
100.0
%
Reinsurance activity
17,546
120
Total fixed maturity securities AFS and equity securities at estimated fair value
$
322,183
$
932
See Note 11 of the Notes to the Interim Condensed Consolidated Financial Statements for the fixed maturity securities AFS and equity securities fair value hierarchy; a rollforward of the fair value measurements for securities measured at estimated fair value on a recurring basis using significant unobservable (Level 3) inputs; transfers into and/or out of Level 3; and further information about the valuation approaches and inputs by level by major classes of invested assets that affect the amounts reported above.
The majority of the Level 3 fixed maturity securities AFS and equity securities were concentrated in four sectors at June 30, 2026: foreign corporate securities, U.S. corporate securities, ABS & CLO and RMBS. During the three months ended June 30, 2026, Level 3 fixed maturity securities AFS decreased by $432 million, or 1.3%. The decrease was driven by transfers out of Level 3 in excess of transfers into Level 3, offset by purchases in excess of sales and an increase in estimated fair value recognized in other comprehensive income (loss). During the six months ended June 30, 2026, Level 3 fixed maturity securities AFS increased by $873 million, or 2.8%.
The increase was driven by purchases in excess of sales, offset by transfers out of Level 3 in excess of transfers into Level 3 and a decrease in estimated fair value recognized in other comprehensive income (loss).
See “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Investments — Fixed Maturity Securities AFS and Equity Securities — Valuation of Securities” included in the 2025 Annual Report for further information on the estimates and assumptions that affect the amounts reported above.
Fixed Maturity Securities AFS
See Note 9 of the Notes to the Interim Condensed Consolidated Financial Statements for information about fixed maturity securities AFS by sector, contractual maturities and continuous gross unrealized losses.
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Fixed Maturity Securities AFS Credit Quality — Ratings
See “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Investments — Fixed Maturity Securities AFS and Equity Securities — Fixed Maturity Securities AFS Credit Quality — Ratings” included in the 2025 Annual Report for a discussion of the credit quality ratings assigned by Nationally Recognized Statistical Rating Organizations (“NRSRO”), credit quality designations and designation categories assigned by the Securities Valuation Office of the National Association of Insurance Commissioners (“NAIC”) for fixed maturity securities AFS and modeling methodologies adopted by the NAIC for non-agency RMBS and CMBS that estimate security level expected losses under a variety of economic scenarios.
NRSRO ratings and NAIC designations are as of the dates shown below. Over time, credit ratings and designations can migrate, up or down, through the NRSRO’s and NAIC’s continuous monitoring process. NRSRO ratings are based on availability of applicable ratings. If no NRSRO rating is available, then an internally developed rating is used. If no NAIC designation is available, then, as permitted by the NAIC, an internally developed designation is used. NAIC designations are generally similar to the credit quality ratings of the NRSRO, except for (i) non-agency RMBS and CMBS and (ii) securities rated Ca or C by NRSROs, included within Caa and lower, that are designated NAIC 6; accordingly, NAIC designations may not correspond to NRSRO ratings.
The following table presents total fixed maturity securities AFS by NRSRO rating, except for non-agency RMBS and CMBS, which are presented using NAIC designations for modeled securities. In addition, in the following table, the applicable NAIC designation from the NAIC published comparison of NRSRO ratings to NAIC designations is provided.
June 30, 2026
December 31, 2025
NRSRO Rating
NAIC Designation
Amortized
Cost net of ACL
Unrealized
Gains (Losses)
Estimated
Fair
Value
% of
Total
Amortized
Cost net of ACL
Unrealized
Gains (Losses)
Estimated
Fair
Value
% of
Total
(Dollars in millions)
Aaa/Aa/A
1
$
230,467
$
(22,091)
$
208,376
68.4
%
$
222,728
$
(18,870)
$
203,858
68.5
%
Baa
2
86,520
(2,333)
84,187
27.6
83,314
(1,437)
81,877
27.5
Subtotal investment grade
316,987
(24,424)
292,563
96.0
306,042
(20,307)
285,735
96.0
Ba
3
8,428
(23)
8,405
2.8
8,212
61
8,273
2.8
B
4
3,366
(55)
3,311
1.1
3,460
(81)
3,379
1.1
Caa and lower
5
284
(14)
270
0.1
284
(35)
249
0.1
In or near default
6
119
(31)
88
—
110
(15)
95
—
Subtotal below investment grade
12,197
(123)
12,074
4.0
12,066
(70)
11,996
4.0
Total fixed maturity securities AFS, excluding Reinsurance activity
$
329,184
$
(24,547)
$
304,637
100.0
%
$
318,108
$
(20,377)
$
297,731
100.0
%
Reinsurance activity
18,373
(827)
17,546
18,844
(644)
18,200
Total fixed maturity securities AFS
$
347,557
$
(25,374)
$
322,183
$
336,952
$
(21,021)
$
315,931
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The following tables present total fixed maturity securities AFS, at estimated fair value, by sector and by NRSRO rating, except for non-agency RMBS and CMBS, which are presented using NAIC designations for modeled securities. In addition, in the following table, the applicable NAIC designation from the NAIC published comparison of NRSRO ratings to NAIC designations is provided.
Fixed Maturity Securities AFS — by Sector & Credit Quality Rating
NRSRO Rating
Aaa/Aa/A
Baa
Ba
B
Caa and Lower
In or Near
Default
Total
Estimated
Fair Value
NAIC Designation
1
2
3
4
5
6
(Dollars in millions)
June 30, 2026
U.S. corporate
$
44,631
$
35,840
$
3,130
$
1,393
$
98
$
27
$
85,119
Foreign corporate
20,756
35,115
2,788
417
82
40
59,198
RMBS
42,317
1,372
118
21
4
4
43,836
Foreign government
28,036
7,745
2,085
1,427
40
6
39,339
U.S. government and agency
33,088
311
—
—
—
—
33,399
ABS & CLO
20,690
3,317
260
52
33
1
24,353
Municipals
9,926
398
24
—
—
—
10,348
CMBS
8,932
89
—
1
13
10
9,045
Total fixed maturity securities AFS, excluding Reinsurance activity
$
208,376
$
84,187
$
8,405
$
3,311
$
270
$
88
$
304,637
Percentage of total
68.4
%
27.6
%
2.8
%
1.1
%
0.1
%
—
%
100.0
%
Reinsurance activity
11,246
5,846
266
52
135
1
17,546
Total fixed maturity securities AFS
$
219,622
$
90,033
$
8,671
$
3,363
$
405
$
89
$
322,183
December 31, 2025
U.S. corporate
$
43,731
$
34,802
$
2,930
$
1,451
$
88
$
46
$
83,048
Foreign corporate
19,541
35,132
3,038
470
71
8
58,260
RMBS
40,736
1,502
166
19
4
4
42,431
Foreign government
30,069
6,679
1,828
1,398
34
20
40,028
U.S. government and agency
33,387
319
—
—
—
—
33,706
ABS & CLO
17,455
2,944
285
41
31
1
20,757
Municipals
10,161
392
26
—
—
—
10,579
CMBS
8,778
107
—
—
21
16
8,922
Total fixed maturity securities AFS, excluding Reinsurance activity
$
203,858
$
81,877
$
8,273
$
3,379
$
249
$
95
$
297,731
Percentage of total
68.5
%
27.5
%
2.8
%
1.1
%
0.1
%
—
%
100.0
%
Reinsurance activity
13,134
4,684
206
96
80
—
18,200
Total fixed maturity securities AFS
$
216,992
$
86,561
$
8,479
$
3,475
$
329
$
95
$
315,931
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U.S. and Foreign Corporate Fixed Maturity Securities AFS
We maintain a broadly diversified portfolio of corporate fixed maturity securities AFS across many industries and issuers. This portfolio did not have any exposure to any single issuer in excess of 1% of total investments at either June 30, 2026 or December 31, 2025. The top 10 holdings comprised 1% of total investments at both June 30, 2026 and December 31, 2025. The table below presents our U.S. and foreign corporate securities portfolios by industry at:
June 30, 2026
December 31, 2025
Industry
Estimated
Fair
Value
% of
Total
Estimated
Fair
Value
% of
Total
(Dollars in millions)
Finance
$
34,006
23.6
%
$
33,265
23.5
%
Consumer (cyclical and non-cyclical)
29,035
20.1
28,297
20.0
Utility
27,674
19.2
26,853
19.0
Industrial (basic, capital goods and other)
14,497
10.0
15,085
10.7
Transportation
13,930
9.7
13,572
9.6
Communications
9,862
6.8
9,651
6.8
Energy
8,520
5.9
8,160
5.8
Technology
5,220
3.6
4,907
3.5
Other
1,573
1.1
1,518
1.1
Total U.S. and foreign corporate fixed maturity securities AFS, excluding Reinsurance activity
$
144,317
100.0
%
$
141,308
100.0
%
Reinsurance activity
8,515
7,240
Total U.S. and foreign corporate fixed maturity securities AFS
$
152,832
$
148,548
Structured Products
Our investments in Structured Products are collateralized by residential mortgages, commercial mortgages, bank loans and other assets. Our investment selection criteria and monitoring include review of credit ratings, characteristics of the assets underlying the securities, borrower characteristics and the level of credit enhancement. We held $77.2 billion and $72.1 billion of Structured Products at estimated fair value, at June 30, 2026 and December 31, 2025, respectively, as presented in the RMBS, ABS & CLO, and CMBS sections below.
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RMBS
Our RMBS portfolio is broadly diversified by security type and risk profile. The following table presents our RMBS portfolio by security type, risk profile and ratings profile at:
June 30, 2026
December 31, 2025
Estimated
Fair
Value
% of
Total
Net
Unrealized
Gains (Losses)
Estimated
Fair
Value
% of
Total
Net
Unrealized
Gains (Losses)
(Dollars in millions)
Security type
Collateralized mortgage obligations
$
26,787
61.1
%
$
(678)
$
25,704
60.6
%
$
(468)
Pass-through mortgage-backed securities
17,049
38.9
(792)
16,727
39.4
(669)
Total RMBS, excluding Reinsurance activity
$
43,836
100.0
%
$
(1,470)
$
42,431
100.0
%
$
(1,137)
Reinsurance activity
2,143
(45)
2,987
(11)
Total RMBS
$
45,979
$
(1,515)
$
45,418
$
(1,148)
Risk profile
Agency
$
27,186
61.9
%
$
(1,224)
$
27,064
63.8
%
$
(972)
Non-Agency
Prime and prime investor
9,102
20.8
(180)
8,303
19.6
(119)
Nonqualified residential mortgage ("NQM") and alternative residential mortgage loans ("Alt-A")
1,924
4.4
18
1,780
4.2
11
Reperforming and sub-prime
3,266
7.5
(78)
3,355
7.9
(67)
Other (1)
2,358
5.4
(6)
1,929
4.5
10
Subtotal Non-Agency
16,650
38.1
%
(246)
15,367
36.2
%
(165)
Total RMBS, excluding Reinsurance activity
$
43,836
100.0
%
$
(1,470)
$
42,431
100.0
%
$
(1,137)
Reinsurance activity
2,143
(45)
2,987
(11)
Total RMBS
$
45,979
$
(1,515)
$
45,418
$
(1,148)
Ratings profile
Rated Aaa and Aa
$
39,082
89.2
%
$
37,374
88.1
%
Designated NAIC 1
$
42,319
96.5
%
$
40,736
96.0
%
__________________
(1)Other Non-Agency RMBS are broadly diversified across several subsectors and issuers, including securities collateralized by the following mortgage loan types: single family rental, early buyout securitization and small business commercial.
See “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Investments — Fixed Maturity Securities AFS and Equity Securities — Structured Products — RMBS” included in the 2025 Annual Report for further information about collateralized mortgage obligations and pass-through mortgage-backed securities, as well as agency, prime, prime investor, NQM, Alt-A, reperforming and sub-prime mortgage-backed securities.
We manage our exposure to reperforming and sub-prime RMBS holdings by focusing primarily on senior tranche securities, stress testing the portfolio with severe loss assumptions and closely monitoring the performance of the portfolio. Our reperforming RMBS are generally newer vintage securities and higher quality at purchase, and most are investment grade under NAIC designations (e.g., NAIC 1 and NAIC 2). Our sub-prime RMBS portfolio consists predominantly of securities that were purchased at significant discounts to par value and discounts to the expected principal recovery value of these securities, and most are investment grade under NAIC designations.
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ABS & CLO
Our non-mortgage loan-backed structured securities are comprised of two broad categories of securitizations: ABS and CLO. These portfolios are broadly diversified by collateral type and issuer. The following table presents our ABS & CLO portfolios by collateral type and ratings profile at:
June 30, 2026
December 31, 2025
Estimated
Fair
Value
% of
Total
Net
Unrealized
Gains (Losses)
Estimated
Fair
Value
% of
Total
Net
Unrealized
Gains (Losses)
(Dollars in millions)
ABS
Collateral type
Digital infrastructure
$
2,810
11.5
%
$
(25)
$
2,070
10.0
%
$
(8)
Consumer loans
1,131
4.6
(6)
1,203
5.8
(2)
Student loans
1,100
4.5
(25)
896
4.3
(19)
Vehicle and equipment loans
1,079
4.5
4
886
4.3
8
Credit card
919
3.8
7
855
4.1
15
Franchise
845
3.5
(22)
739
3.6
(16)
Other (1)
8,729
35.8
(179)
7,103
34.2
(123)
Total
16,613
68.2
%
(246)
13,752
66.3
%
(145)
CLO (2)
7,740
31.8
%
4
7,005
33.7
%
8
Total ABS & CLO, excluding Reinsurance activity
$
24,353
100.0
%
$
(242)
$
20,757
100.0
%
$
(137)
Reinsurance activity
3,334
(10)
2,140
12
Total ABS & CLO
$
27,687
$
(252)
$
22,897
$
(125)
ABS ratings profile
Rated Aaa and Aa
$
4,618
27.8
%
$
3,781
27.5
%
Designated NAIC 1
$
13,423
80.8
%
$
10,945
79.6
%
CLO ratings profile
Rated Aaa and Aa
$
5,533
71.5
%
$
5,137
73.3
%
Designated NAIC 1
$
7,265
93.9
%
$
6,555
93.6
%
ABS & CLO ratings profile
Rated Aaa and Aa
$
10,151
41.7
%
$
8,918
43.0
%
Designated NAIC 1
$
20,688
85.0
%
$
17,500
84.3
%
_________________
(1)Other ABS are broadly diversified across several subsectors and issuers, including securities with the following collateral types: foreign residential loans, transportation equipment and renewable energy.
(2)Includes primarily securities collateralized by broadly syndicated bank loans.
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CMBS
Our CMBS portfolio is comprised primarily of conduit, single asset and single borrower securities. Conduit securities are collateralized by many commercial mortgage loans and are broadly diversified by property type, borrower and geography. The following tables present our CMBS portfolio by collateral type and ratings profile at:
June 30, 2026
December 31, 2025
Estimated
Fair
Value
% of Total
Net
Unrealized
Gains (Losses)
Estimated
Fair
Value
% of Total
Net
Unrealized
Gains (Losses)
(Dollars in millions)
Collateral type
Conduit
$
4,288
47.3
%
$
(161)
$
4,314
48.4
%
$
(124)
Single asset and single borrower
2,425
26.8
(27)
2,259
25.3
(35)
Agency
1,236
13.7
(114)
1,206
13.5
(100)
Commercial real estate CLO
168
1.9
1
150
1.7
1
Other
928
10.3
(19)
993
11.1
(4)
Total CMBS, excluding Reinsurance activity
$
9,045
100.0
%
$
(320)
$
8,922
100.0
%
$
(262)
Reinsurance activity
753
(11)
812
—
Total CMBS
$
9,798
$
(331)
$
9,734
$
(262)
Ratings profile
Rated Aaa and Aa
$
7,231
79.9
%
$
7,017
78.6
%
Designated NAIC 1
$
8,932
98.8
%
$
8,779
98.4
%
Evaluation of Fixed Maturity Securities AFS for Credit Loss, Rollforward of ACL and Credit Loss on Fixed Maturity Securities AFS Recognized in Earnings
See Note 9 of the Notes to the Interim Condensed Consolidated Financial Statements for information about the evaluation of fixed maturity securities AFS for credit loss, rollforward of the ACL, net credit loss provision (release) and impairment (losses), as well as realized gross gains (losses) on sales and disposals of fixed maturity securities AFS at and for the six months ended June 30, 2026.
Securities Lending Transactions, Repurchase Agreements and Third-Party Custodian Administered Programs
We participate in securities lending transactions, repurchase agreements and third-party custodian administered programs with unaffiliated financial institutions in the normal course of business for the purpose of enhancing the total return on our investment portfolio.
Securities lending transactions and repurchase agreements: We account for these arrangements as secured borrowings and record a liability in the amount of the cash received. We obtain collateral, usually cash, from the borrower, which must be returned to the borrower when the securities are returned to us. Through these arrangements, we were liable for cash collateral under our control of $16.3 billion and $15.2 billion at June 30, 2026 and December 31, 2025, respectively, including a portion that may require the immediate return of cash collateral we hold. See Note 9 of the Notes to the Interim Condensed Consolidated Financial Statements, as well as “Summary of Significant Accounting Policies — Investments — Securities Lending Transactions and Repurchase Agreements” in Note 1 of the Notes to the Consolidated Financial Statements included in the 2025 Annual Report for further information about the secured borrowings accounting and the classification of revenues and expenses.
Third-party custodian administered programs: The estimated fair value of securities we own which are loaned in connection with these programs was $606 million and $640 million at June 30, 2026 and December 31, 2025, respectively. The estimated fair value of the related non-cash collateral on deposit with third-party custodians on our behalf, which is not reflected in our interim condensed consolidated financial statements and cannot be sold or re-pledged, was $668 million and $658 million at June 30, 2026 and December 31, 2025, respectively.
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Mortgage Loans
Our mortgage loan investments are principally collateralized by commercial, agricultural and residential properties. See Note 9 of the Notes to the Interim Condensed Consolidated Financial Statements, as well as Note 1 of the Notes to the Consolidated Financial Statements included in the 2025 Annual Report, for further information.
Mortgage loans carried at amortized cost and the related ACL are summarized as follows at:
June 30, 2026
December 31, 2025
Portfolio Segment
Amortized Cost
% of
Total
ACL
ACL as % of
Amortized Cost
Amortized Cost
% of
Total
ACL
ACL as % of
Amortized Cost
(Dollars in millions)
Commercial
$
39,632
52.6
%
$
837
2.1
%
$
42,406
55.2
%
$
659
1.6
%
Agricultural
18,512
24.6
101
0.5
%
18,284
23.8
108
0.6
%
Residential
17,135
22.8
213
1.2
%
16,060
20.9
251
1.6
%
Mortgage loans held-for-sale
—
—
—
—
%
35
0.1
—
—
%
Mortgage loans, excluding Reinsurance activity and Third-party mortgage loan activity
$
75,279
100.0
%
$
1,151
1.5
%
$
76,785
100.0
%
$
1,018
1.3
%
Reinsurance activity
3,143
30
2,487
28
Third-party mortgage loan activity
5,792
177
6,514
147
Mortgage loans
$
84,214
$
1,358
$
85,786
$
1,193
We diversify our mortgage loan investments by both geographic region and property type to reduce the risk of concentration. Of our commercial and agricultural mortgage loans carried at amortized cost, 87% are collateralized by properties located in the U.S., with the remaining 13% collateralized by properties located primarily in Mexico, the U.K. and Chile at June 30, 2026. The carrying values of our commercial and agricultural mortgage loans collateralized by properties located in California, Texas and New York were 18%, 7% and 7%, respectively, of total commercial and agricultural mortgage loans at June 30, 2026. Additionally, we manage risk when originating commercial and agricultural mortgage loan investments by generally lending up to 75% of the estimated fair value of the underlying real estate collateral.
We manage our residential mortgage loans carried at amortized cost in a similar manner to reduce risk of concentration, with 91% collateralized by properties located in the U.S., and the remaining 9% collateralized by properties located in Chile, at June 30, 2026. The carrying values of our residential mortgage loans collateralized by properties located in California, Florida and New York were 32%, 11% and 7%, respectively, of total residential mortgage loans at June 30, 2026.
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Commercial Mortgage Loans by Geographic Region and Property Type. Commercial mortgage loans are the largest mortgage loan portfolio segment. The tables below present, at amortized cost, the diversification of these investments across geographic regions and property types:
June 30, 2026
December 31, 2025
Amount
% of
Total
Amount
% of
Total
(Dollars in millions)
Region
Pacific
$
8,275
20.9
%
$
8,395
19.8
%
Non-U.S.
6,729
17.0
7,076
16.7
Middle Atlantic
4,965
12.5
5,699
13.4
South Atlantic
4,918
12.4
5,205
12.3
West South Central
2,956
7.5
3,260
7.7
Mountain
2,318
5.8
2,348
5.5
New England
2,096
5.3
2,249
5.3
East North Central
1,145
2.9
1,185
2.8
East South Central
430
1.1
451
1.1
West North Central
398
1.0
401
0.9
Multi-Region and Other
5,402
13.6
6,137
14.5
Total amortized cost, excluding Reinsurance activity and Third-party mortgage loan activity
$
39,632
100.0
%
$
42,406
100.0
%
Reinsurance activity
906
832
Third-party mortgage loan activity
5,410
6,162
Total amortized cost
$
45,948
$
49,400
Less: ACL
1,016
807
Carrying value, net of ACL
$
44,932
$
48,593
Property Type
Office (1)
$
14,746
37.2
%
$
16,088
38.0
%
Apartment (1)
7,641
19.3
7,669
18.1
Retail
5,980
15.1
6,013
14.2
Single Family Rental
3,538
8.9
4,221
9.9
Industrial (1)
3,345
8.4
3,611
8.5
Hotel
2,719
6.9
3,134
7.4
Warehouse Revolvers (1)
1,577
4.0
1,578
3.7
Other
86
0.2
92
0.2
Total amortized cost, excluding Reinsurance activity and Third-party mortgage loan activity
39,632
100.0
%
42,406
100.0
%
Reinsurance activity
906
832
Third-party mortgage loan activity
5,410
6,162
Total amortized cost
$
45,948
$
49,400
Less: ACL
1,016
807
Carrying value, net of ACL
$
44,932
$
48,593
_________________
(1)Certain amounts in prior periods are reclassified to conform to current period presentation.
Our commercial mortgage loan investments are well positioned with exposures concentrated in high quality underlying properties located in primary markets typically with institutional investors who are better positioned to manage their assets during periods of market volatility. Our portfolio is comprised primarily of lower risk loans with higher debt service coverage ratios (“DSCR”) and lower loan-to-value (“LTV”) ratios, as shown below.
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Credit Quality — Monitoring Process. We monitor our mortgage loan investments on an ongoing basis, including a review by credit quality indicator and by the performance indicators of current, past due, restructured and under foreclosure. See below for further information on mortgage loans by credit quality indicator. See Note 9 of the Notes to the Interim Condensed Consolidated Financial Statements for further information on mortgage loans by performance indicator.
We review our commercial mortgage loan investments on an ongoing basis. These reviews may include an analysis of the property financial statements and rent roll, lease rollover analysis, property inspections, market analysis, estimated valuations of the underlying collateral, LTV ratios, DSCR and tenant creditworthiness. The monitoring process focuses on higher risk loans, which include those that are classified as restructured, delinquent or in foreclosure, as well as loans with higher LTV ratios and lower DSCR. The monitoring process for agricultural mortgage loan investments is generally similar, with a focus on higher risk loans, such as loans with higher LTV ratios. Agricultural mortgage loan investments are reviewed on an ongoing basis which include property inspections, market analysis, estimated valuations of the underlying collateral, LTV ratios and borrower creditworthiness, including reviews on a geographic and property-type basis.
We review our residential mortgage loan investments on an ongoing basis, with a focus on higher risk loans, such as nonperforming loans. See Note 9 of the Notes to the Interim Condensed Consolidated Financial Statements for information on our evaluation of residential mortgage loan investments and related ACL methodology.
LTV ratios and DSCR are common measures in the assessment of the quality of commercial mortgage loan investments. LTV ratios are a common measure in the assessment of the quality of agricultural mortgage loan investments. LTV ratios compare the amount of the loan to the estimated fair value of the underlying collateral. An LTV ratio greater than 100% indicates that the loan amount is greater than the collateral value. An LTV ratio of less than 100% indicates an excess of collateral value over the loan amount. Generally, the higher the LTV ratio, the higher the risk of experiencing a credit loss. The DSCR compares a property’s net operating income to amounts needed to service the principal and interest due under the loan.
Generally, the lower the DSCR, the higher the risk of experiencing a credit loss. For our commercial mortgage loans, our average LTV ratio was 69% and 68% at June 30, 2026 and December 31, 2025, respectively, and our average DSCR was 2.1x at both June 30, 2026 and December 31, 2025. The DSCR and the values utilized in calculating the ratio are updated routinely. In addition, the LTV ratio is routinely updated for all but the lowest risk loans as part of our ongoing review of our commercial mortgage loan investments. For our agricultural mortgage loans, our average LTV ratio was 45% and 46% at June 30, 2026 and December 31, 2025, respectively. The values utilized in calculating the LTV ratio of our agricultural mortgage loan investments are developed in connection with the ongoing review of our portfolio and are routinely updated.
The distribution of our commercial mortgage loan portfolios totaling $39.6 billion at amortized cost at June 30, 2026 by key credit quality indicators of LTV and DSCR was as follows:
June 30, 2026
DSCR
LTV
> 1.2x
1.0-1.2x
< 1.0x
Total
<65%
53.3
%
1.3
%
1.4
%
56.0
%
65% - 75%
12.7
%
1.6
%
1.3
%
15.6
%
76% - 80%
4.6
%
0.1
%
0.6
%
5.3
%
>80%
13.8
%
4.9
%
4.4
%
23.1
%
Total
84.4
%
7.9
%
7.7
%
100.0
%
The distribution of our agricultural mortgage loan portfolios totaling $18.5 billion at amortized cost at June 30, 2026 by the key credit quality indicator of LTV was as follows:
June 30, 2026
LTV
Total
<65%
92.0
%
65% - 75%
6.8
%
76% - 80%
0.2
%
>80%
1.0
%
Total
100.0
%
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Mortgage Loan ACL. Our ACL is established for both pools of loans with similar risk characteristics and for mortgage loan investments with dissimilar risk characteristics, such as collateral dependent loans, individually and on a loan specific basis. We record an allowance for expected lifetime credit loss in earnings within net investment gains (losses) in an amount that represents the portion of the amortized cost basis of mortgage loan investments that the Company does not expect to collect, resulting in mortgage loan investments being presented at the net amount expected to be collected.
In determining our ACL, management (i) pools mortgage loans that share similar risk characteristics, (ii) considers expected lifetime credit loss over contractual terms of mortgage loans, as adjusted for expected prepayments and any extensions, and (iii) considers past events and current and forecasted economic conditions. Actual credit loss realized could be different from the amount of the ACL recorded. These evaluations and assessments are revised as conditions change and new information becomes available, which can cause the ACL to increase or decrease over time as such evaluations are revised. Negative credit migration, including an actual or expected increase in the level of problem loans, will result in an increase in the ACL.
Positive credit migration, including an actual or expected decrease in the level of problem loans, will result in a decrease in the ACL. See Note 9 of the Notes to the Interim Condensed Consolidated Financial Statements for information on how the ACL is established and monitored, and activity in and balances of the ACL.
Real Estate and REJVs
Our real estate investments are comprised of wholly-owned properties, and interests in both REJVs and real estate funds which invest in a wide variety of properties and property types, consisting of single and multi-property projects, and are broadly diversified across multiple property types and geographies.
The carrying value of our real estate investments was $12.9 billion and $13.4 billion at June 30, 2026 and December 31, 2025, respectively, or 2.7% and 2.8% of cash and invested assets at June 30, 2026 and December 31, 2025, respectively.
Our real estate investments are typically stabilized properties that we intend to hold for the longer-term for portfolio diversification and long-term appreciation. Our real estate investment portfolio had appreciated to a $3.7 billion unrealized gain position at June 30, 2026.
We continuously monitor and assess our real estate investments for impairment when facts and circumstances indicate that the real estate may be impaired. As a result of our impairment analysis, we recorded an impairment loss of $193 million and $1 million for the six months ended June 30, 2026 and 2025, respectively.
We diversify our real estate investments by property type, form of equity interest (wholly-owned, joint venture and funds) and geographic region to reduce risk of concentration. See Note 9 of the Notes to the Interim Condensed Consolidated Financial Statements for a summary of our real estate investments by income type, as well as income earned.
OLPI
OLPI are comprised of investments in private funds, including private equity funds. At June 30, 2026 and December 31, 2025, the carrying value of OLPI was $14.2 billion and $14.7 billion, respectively. OLPI were 3.0% and 3.1% of cash and invested assets at June 30, 2026 and December 31, 2025, respectively. Cash distributions on these investments are generated from investment gains, operating income from the underlying investments of the funds and liquidation of the underlying investments of the funds.
We use the equity method of accounting for most of our private equity funds. We generally recognize our share of a private equity fund’s earnings in net investment income on a three-month lag, which is when the information is reported to us. Accordingly, changes in equity market levels, which can impact the underlying results of these private equity funds, are recognized in earnings within our net investment income on a three-month lag.
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Other Invested Assets
The following table presents the carrying value of our other invested assets by type at:
June 30, 2026
December 31, 2025
Asset Type
Carrying
Value
% of
Total
Carrying
Value
% of
Total
(Dollars in millions)
Freestanding derivatives with positive estimated fair values
$
7,491
42.9
%
$
7,020
43.4
%
Company-owned life insurance policies (“COLI”)
1,866
10.7
1,832
11.3
Direct financing leases
1,343
7.7
1,333
8.2
Annuities funding structured settlement claims
1,246
7.1
1,244
7.7
Operating joint ventures
1,315
7.5
1,235
7.6
Federal Home Loan Bank of New York (“FHLBNY”) common stock
702
4.0
700
4.3
Tax credit and renewable energy partnerships
1,053
6.0
676
4.2
Funds withheld
461
2.6
478
3.0
Leveraged leases
294
1.7
365
2.3
Other
1,701
9.8
1,310
8.0
Total other invested assets, excluding Reinsurance activity
$
17,472
100.0
%
$
16,193
100.0
%
Reinsurance activity
203
139
Total other invested assets
$
17,675
$
16,332
Percentage of cash and invested assets, excluding Reinsurance activity
3.6
%
3.4
%
See Notes 1, 11 and 12 of the Notes to the Consolidated Financial Statements included in the 2025 Annual Report for information regarding freestanding derivatives with positive estimated fair values, COLI, direct financing and leveraged leases, annuities funding structured settlement claims, operating joint ventures, FHLBNY common stock, tax credit and renewable energy partnerships, and funds withheld.
Investment Commitments
We enter into the following commitments in the normal course of business for the purpose of enhancing the total return on our investment portfolio: mortgage loan commitments and commitments to fund partnership investments, bank credit facilities and private corporate bond investments. See Note 18 of the Notes to the Interim Condensed Consolidated Financial Statements for the amount of our unfunded investment commitments at June 30, 2026 and December 31, 2025. See “Net Investment Income” and “Net Investment Gains (Losses)” in Note 9 of the Notes to the Interim Condensed Consolidated Financial Statements for information on the investment income, investment expense, gains and losses from such investments and the liability for credit loss for unfunded mortgage loan commitments. See also “— Fixed Maturity Securities AFS and Equity Securities,” “— Mortgage Loans,” “— Real Estate and REJVs” and “— OLPI.”
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Derivatives
Overview
We are exposed to various risks relating to our ongoing business operations, including interest rate, foreign currency exchange rate, credit and equity market. We use a variety of strategies to manage these risks, including the use of derivatives, such as market standard purchased and written credit default swap contracts. See Note 10 of the Notes to the Interim Condensed Consolidated Financial Statements for:
•A comprehensive description of the nature of our derivatives, including the strategies for which derivatives are used in managing various risks.
•Information about the primary underlying risk exposure, gross notional amount, and estimated fair value of our derivatives by type of hedge designation, excluding embedded derivatives held at June 30, 2026 and December 31, 2025.
•The statement of operations effects of derivatives in net investments in foreign operations, cash flow, fair value, or nonqualifying hedging relationships for the three months and six months ended June 30, 2026 and 2025.
See “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Summary of Critical Accounting Estimates — Freestanding Derivatives” in the 2025 Annual Report for further information on the estimates and assumptions that affect derivatives. See also “Quantitative and Qualitative Disclosures About Market Risk — Management of Market Risk Exposures — Hedging Activities” in the 2025 Annual Report for more information about our use of derivatives by major hedge program.
Net Derivative Gains (Losses)
A portion of our derivatives are designated and qualify as accounting hedges, which reduce volatility in earnings. For those derivatives not designated as accounting hedges, changes in market factors lead to the recognition of fair value changes in net derivative gains (losses) generally without an offsetting gain or loss recognized in earnings for the item being hedged, which creates volatility in earnings. We actively evaluate market risk hedging needs and strategies to ensure our free cash flow and capital objectives are met under a range of market conditions.
Certain variable annuity products with guaranteed minimum benefits are accounted for as MRBs and measured at estimated fair value. We use freestanding derivatives to hedge the market risks inherent in these variable annuity guarantees.
We continuously review and refine our hedging strategy in light of changing economic and market conditions, evolving NAIC and the New York Department of Financial Services statutory requirements, and accounting rule changes. As a part of our current hedging strategy, we maintain portfolio level derivatives in our macro hedge program. These macro hedge program derivatives mitigate the potential deterioration in our capital positions from significant adverse economic conditions.
See “— Results of Operations — Consolidated Results” for an analysis of the period over period changes in net derivative gains (losses).
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Liquidity and Capital Resources
Overview
Our business and results of operations are materially affected by conditions in the global financial markets and the economy generally due to our market presence in numerous countries, large investment portfolio and the sensitivity of our insurance liabilities and derivatives to changing market factors. Such conditions may affect our financing costs and market interest for our debt or equity securities. For further information regarding market factors that could affect our ability to meet liquidity and capital needs, see “— Industry Trends” and “— Investments — Current Environment.”
This discussion should be read in conjunction with the following sections included elsewhere herein for additional information regarding the topics noted below:
Notes to the Interim Condensed Consolidated Financial Statements:
Note
Topic
3
Acquisitions and dispositions
12
Subordinated debt securities issuance
13
Preferred stock, including the calculation and timing of dividend payments, and MetLife, Inc.’s common stock repurchase authorizations
Additionally, this discussion should be read in conjunction with the following sections included in the 2025 Annual Report for additional information regarding the topics noted below:
Notes to the Consolidated Financial Statements:
Note
Topic
3
Acquisition
5
Funding agreements, reported in PABs and the related pledged collateral
16
Long-term debt, short-term debt, credit and committed facilities, debt and facility covenants and facility agreement for senior debt issuances
17
Collateral financing arrangement and the related pledged collateral
18
Subordinated debt securities and the related replacement capital covenant
19
Preferred stock and common stock, including the calculation and timing of dividend payments, restrictions on dividends, “dividend stopper” provisions, and MetLife, Inc.’s common stock repurchase authorizations
Notes to the MetLife, Inc. (Parent Company Only) Condensed Financial Information included in Schedule II of the Financial Statement Schedules:
Note
Topic
3
Affiliated long-term debt
4
Support agreements
Risk Factors:
“— Capital Risks”
“— Investment Risks — We May Have Difficulty Selling Holdings in Our Investment Portfolio or in Our Securities Lending Program in a Timely Manner to Realize Their Full Value”
“— Economic Environment and Capital Markets Risks — We May Lose Business Due to a Downgrade or a Potential Downgrade in Our Financial Strength or Credit Ratings”
“— Economic Environment and Capital Markets Risks — We May Not Meet Our Liquidity Needs, Access Capital, or May Face Significantly Increased Cost of Capital Due to Adverse Capital and Credit Market Conditions”
Liquidity Management
Liquidity refers to the ability to generate adequate amounts of cash to meet our needs. Based upon our trusted global brand, diversified and resilient businesses, strong financial fundamentals and the substantial funding sources available to us as described herein, we continue to believe we have access to ample liquidity to meet business requirements under current market conditions and reasonably possible stress scenarios. We continuously monitor and adjust our liquidity and capital plans for MetLife, Inc. and its subsidiaries in light of market conditions, as well as changing needs and opportunities. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources — The Company — Liquidity” included in the 2025 Annual Report.
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Short-term Liquidity and Liquid Assets
At June 30, 2026 and December 31, 2025, our short-term liquidity position was $18.8 billion and $18.1 billion, respectively, while liquid assets were $182.7 billion and $184.5 billion, respectively.
Short-term liquidity consists of cash and cash equivalents and short-term investments. Liquid assets includes these short-term liquidity amounts, plus publicly traded securities. Both short-term liquidity and liquid assets exclude assets pledged or otherwise committed, such as amounts received in connection with securities lending, repurchase agreements, derivatives, regulatory deposits, the collateral financing arrangement, funding agreements and secured borrowings, as well as amounts held in the closed block.
Capital Management
We have established several senior management committees as part of our capital management process. These committees, including the Capital Management Committee and the Enterprise Risk Committee (“ERC”), regularly review actual and projected capital levels (under a variety of scenarios including stress scenarios) and our annual capital plan in accordance with our capital policy. The Capital Management Committee is comprised of members of senior management, including MetLife, Inc.’s Chief Financial Officer (“CFO”), Treasurer, and Chief Risk Officer (“CRO”). The ERC is also comprised of members of senior management, including MetLife, Inc.’s CFO, CRO and Chief Investment Officer.
MetLife, Inc.’s Board of Directors (“Board of Directors”) and senior management are directly involved in the development and maintenance of our capital policy. The capital policy sets forth, among other things, minimum and target capital levels and the governance of the capital management process. All capital actions, including proposed changes to the annual capital plan, capital targets or capital policy, are reviewed by the Finance and Risk Committee of the Board of Directors prior to obtaining full Board of Directors approval. The Board of Directors approves the capital policy and the annual capital plan and authorizes capital actions, as required.
The Company
Liquidity
In the event of significant cash requirements beyond anticipated liquidity needs, we have various alternatives available depending on market conditions and the amount and timing of the liquidity need. These available alternatives include cash flows from operations, sales of liquid assets, global funding sources including commercial paper and various credit and committed facilities.
Capital
We manage our capital position to maintain our financial strength and credit ratings. Our capital position is supported by our ability to generate strong cash flows within our operating companies and borrow funds at competitive rates, as well as by our demonstrated ability to raise additional capital to meet operating and growth needs despite adverse market and economic conditions.
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Summary of the Company’s Primary Sources and Uses of Liquidity and Capital
Our primary sources and uses of liquidity and capital are summarized as follows:
Six Months
Ended
June 30,
2026
2025
(In millions)
Sources:
Operating activities, net
$
4,915
$
6,449
Net change in PABs
6,926
4,087
Net change in payables for collateral under securities loaned and other transactions
1,824
—
Long-term debt issued
65
713
Subordinated debt securities issued
1,000
1,000
Net change in notes issued by CFEs
306
—
Other, net
52
—
Effect of change in foreign currency exchange rates on cash and cash equivalents
—
295
Total sources
15,088
12,544
Uses:
Investing activities, net
14,326
6,303
Net change in payables for collateral under securities loaned and other transactions
—
118
Long-term debt repaid
217
558
Collateral financing arrangement repaid
66
38
Derivatives with certain financing elements and other derivative-related transactions, net
151
74
Net change in mortgage loan secured financing
656
338
Treasury stock acquired in connection with share repurchases
1,477
1,921
Dividends on preferred stock
76
97
Dividends on common stock
755
756
Other, net
—
231
Effect of change in foreign currency exchange rates on cash and cash equivalents
95
—
Total uses
17,819
10,434
Net increase (decrease) in cash and cash equivalents
$
(2,731)
$
2,110
Cash Flows from Operations
The principal cash inflows from our insurance activities come from insurance premiums, net investment income, annuity considerations and deposit funds. The principal cash outflows are the result of various life insurance, annuity and pension products, operating expenses and income tax, as well as interest expense.
Cash Flows from Investments
The principal cash inflows from our investment activities come from repayments of principal, proceeds from maturities and sales of investments and settlements of freestanding derivatives. The principal cash outflows relate to purchases of investments, issuances of policy loans and settlements of freestanding derivatives. In addition, cash inflows and outflows relate to sales and purchases of businesses. We typically have a net cash outflow from investing activities because cash inflows from insurance operations are reinvested in accordance with our ALM discipline to fund insurance liabilities. We closely monitor and manage these risks through our comprehensive investment risk management process.
Cash Flows from Financing
The principal cash inflows from our financing activities come from issuances of debt and other securities, deposits of funds associated with PABs and lending of securities. The principal cash outflows come from repayments of debt and the collateral financing arrangement, payments of dividends on and repurchases or redemptions of MetLife, Inc.’s securities, withdrawals associated with PABs and the return of securities on loan.
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Liquidity and Capital Sources and Uses
Liquidity and capital are provided by a variety of global funding sources, including: (i) preferred and common stock; (ii) short-term debt, which includes commercial paper; (iii) issuances of long-term debt and the collateral financing arrangement; (iv) PABs, which includes funding agreements; (v) credit and committed facilities; (vi) the facility agreement for senior debt issuances; (vii) a shelf registration statement, which permits the issuance of public debt, equity and hybrid securities, provides for automatic effectiveness upon filing and has no stated issuance capacity; and (viii) dispositions.
The primary uses of liquidity and capital include: (i) repayments, repurchases and/or redemptions of common stock, preferred stock and debt; (ii) dividends on common and preferred stock; (iii) contractual obligations, including PABs and insurance liabilities; (iv) pledged collateral; (v) securities lending transactions, repurchase agreements and third-party custodian administered programs; (vi) mortgage loan secured financing; and (vii) acquisitions.
Additional details regarding certain of our primary sources and uses of liquidity and capital are discussed below and included in the Notes to the Interim Condensed Consolidated Financial Statements and the Notes to the Consolidated Financial Statements included in the 2025 Annual Report referenced in “— Overview.”
The diversity of our global funding sources enhances our funding flexibility, limits dependence on any one market or source of funds and generally lowers the cost of funds. We have no reason to believe that our lending counterparties will be unable to fulfill their respective contractual obligations under our credit and committed facilities. As commitments under these facilities may expire unused, these amounts do not necessarily reflect our actual future cash funding requirements.
Credit and Committed Facilities
At June 30, 2026, the Company maintained its unsecured revolving credit facility (the “Credit Facility”), as well as certain committed facilities (the “Committed Facilities”). When drawn upon, these facilities bear interest at varying rates in accordance with the respective agreements.
Information on the Credit Facility and Committed Facilities at June 30, 2026 was as follows:
Account Party/Borrower(s)
Maximum Capacity
Letters of Credit Issued
Drawdowns
Unused Commitments
(In millions)
Credit Facility:
MetLife, Inc. and MetLife Funding, Inc.
$
3,000
$
304
$
—
$
2,696
Committed Facilities:
MetLife Reinsurance Company of Vermont and MetLife, Inc.
$
350
$
350
$
—
$
—
MetLife Reinsurance Company of Vermont and MetLife, Inc.
2,874
2,423
—
451
Total Committed Facilities
$
3,224
$
2,773
$
—
$
451
Debt Outstanding
The following table summarizes our outstanding debt at:
June 30, 2026
December 31, 2025
(In millions)
Short-term debt (1)
$
460
$
355
Long-term debt (2)
$
14,244
$
14,467
Collateral financing arrangement
$
286
$
352
Subordinated debt securities (3)
$
5,144
$
4,155
__________________
(1)This is non-recourse to MetLife, Inc., subject to customary exceptions. Certain subsidiaries have pledged assets to secure this debt.
(2)Includes $418 million and $411 million of long-term debt that is non-recourse to MetLife, Inc. and Metropolitan Life Insurance Company (“MLIC”), subject to customary exceptions, at June 30, 2026 and December 31, 2025, respectively. Certain investment subsidiaries have pledged assets to secure this debt.
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(3)Includes $1.0 billion of subordinated debt issued in February 2026. See Note 12 of the Notes to the Interim Condensed Consolidated Financial Statements for additional information.
Certain of our debt instruments and Committed Facilities, as well as our Credit Facility, contain various administrative, reporting, legal and financial covenants. We believe we were in compliance with all applicable financial covenants at June 30, 2026.
Debt Repurchases, Redemptions and Exchanges
We may from time to time seek to retire or purchase our outstanding debt through cash purchases, redemptions and/or exchanges for other securities, in open market purchases, privately negotiated transactions or otherwise. Any such repurchases, redemptions, or exchanges will be dependent upon several factors, including our liquidity requirements, contractual restrictions, general market conditions, and applicable regulatory, legal and accounting factors. Whether or not to repurchase or redeem any debt and the size and timing of any such repurchases or redemptions will be determined at our discretion.
Common Stock and Preferred Stock Repurchases and Dividends
Certain provisions of MetLife, Inc.’s preferred stock and subordinated debt securities may restrict payments of dividends and interest or restrict repurchases of its common or preferred stock. See Note 19 of the Notes to the Consolidated Financial Statements included in the 2025 Annual Report for additional information regarding “dividend stopper” provisions in MetLife, Inc.’s preferred stock and subordinated debt securities.
For the six months ended June 30, 2026 and 2025, MetLife, Inc. paid dividends on its preferred stock of $76 million and $97 million, respectively. For the six months ended June 30, 2026 and 2025, MetLife, Inc. paid dividends on its common stock of $755 million and $756 million, respectively.
See Note 20 of the Notes to the Interim Condensed Consolidated Financial Statements for information on a common stock repurchase authorization subsequent to June 30, 2026.
Pledged Collateral
We pledge collateral to, and have collateral pledged to us by counterparties in connection with our derivatives, the collateral financing arrangement related to the reinsurance of closed block liabilities, and with funding and advance agreements. See Note 10 of the Notes to the Interim Condensed Consolidated Financial Statements for additional information regarding derivatives.
Securities Lending Transactions, Repurchase Agreements and Third-Party Custodian Administered Programs
See “— Investments — Securities Lending Transactions, Repurchase Agreements and Third-Party Custodian Administered Programs.”
Mortgage Loan Secured Financing
See “— Investments — Mortgage Loans.”
Insurance Liabilities
Liabilities arising from our insurance activities primarily relate to benefit payments under various life insurance, annuity and group pension products, as well as payments for policy surrenders, withdrawals and loans. For annuity or deposit type products, surrender or lapse behavior differs somewhat by segment. In Corporate & Other, which includes individual annuities, lapses and surrenders tend to occur in the normal course of business. For the six months ended June 30, 2026, general account surrenders and withdrawals from annuity products were $423 million. In the RIS segment, which includes pension risk transfers, bank-owned life insurance and other fixed annuity contracts, as well as funding agreements and other capital market products, most of the products offered have fixed maturities or fairly predictable surrenders or withdrawals.
With regard to the RIS business products that provide customers with limited rights to accelerate payments, at June 30, 2026, there were funding agreements totaling $122 million that could be put back to the Company.
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MetLife, Inc.
Liquidity and Capital Management
Liquidity and capital are managed to preserve stable, reliable and cost-effective sources of cash to meet all current and future financial obligations and are provided by a variety of sources, including a portfolio of liquid assets, a diversified mix of short- and long-term funding sources from the wholesale financial markets and the ability to borrow through credit and committed facilities. Liquidity is monitored through the use of internal liquidity risk metrics, including the composition and level of the liquid asset portfolio, timing differences in short-term cash flow obligations, access to the financial markets for capital and debt transactions and exposure to contingent draws on MetLife, Inc.’s liquidity. MetLife, Inc. is an active participant in the global financial markets through which it obtains a significant amount of funding.
These markets, which serve as cost-effective sources of funds, are critical components of MetLife, Inc.’s liquidity and capital management. Decisions to access these markets are based upon relative costs, prospective views of balance sheet growth and a targeted liquidity profile and capital structure. A disruption in the financial markets could limit MetLife, Inc.’s access to liquidity.
MetLife, Inc.’s ability to maintain regular access to competitively priced wholesale funds is fostered by its current credit ratings from the major credit rating agencies. We view our capital ratios, credit quality, stable and diverse earnings streams, diversity of liquidity sources and our liquidity monitoring procedures as critical to retaining such credit ratings. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources — The Company — Rating Agencies” included in the 2025 Annual Report.
Liquid Assets
At June 30, 2026 and December 31, 2025, MetLife holding companies had $3.4 billion and $3.6 billion, respectively, in liquid assets. Of these amounts, $2.6 billion and $2.0 billion were held by MetLife, Inc., and $812 million and $1.6 billion were held by other MetLife holding companies at June 30, 2026 and December 31, 2025, respectively.
Liquid assets held in non-U.S. holding companies are generated in part through dividends from non-U.S. insurance operations. Such dividends are subject to local insurance regulatory requirements, as discussed in “— Liquidity and Capital Sources and Uses — Dividends from Subsidiaries.”
See “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Consolidated Company Outlook” included in the 2025 Annual Report for the targeted level of liquid assets at the holding companies. See “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources — MetLife, Inc. — Liquid Assets” included in the 2025 Annual Report for additional information on the sources and uses of liquid assets, as well as sources and uses of liquid assets included in free cash flow for MetLife, Inc. and other MetLife holding companies.
Liquidity and Capital Sources and Uses
MetLife, Inc.’s primary sources of liquidity and capital are provided by a variety of global funding sources, including: (i) dividends from subsidiaries; (ii) issuances of long-term debt and the collateral financing arrangement; (iii) credit and committed facilities; and (iv) dispositions.
MetLife, Inc.’s primary uses of liquidity and capital include: (i) debt service; (ii) cash dividends on common and preferred stock; (iii) capital contributions to subsidiaries; (iv) repayments, repurchases and/or redemptions of common stock, preferred stock and debt; (v) payment of general operating expenses; (vi) support agreements; and (vii) acquisitions.
Additional details regarding certain of MetLife, Inc.’s primary sources of liquidity and capital are included in “— The Company — Liquidity and Capital Sources and Uses,” as well as the Notes to the Interim Condensed Consolidated Financial Statements and the Notes to the Consolidated Financial Statements included in the 2025 Annual Report referenced in “— Overview” and are further discussed below.
Based on our analysis and comparison of our current and future cash inflows from the dividends we receive from subsidiaries that are permitted to be paid without prior insurance regulatory approval, our investment portfolio and other cash flows and anticipated access to the capital markets, we believe there will be sufficient liquidity and capital to enable MetLife, Inc. to make payments on debt, pay cash dividends on its common and preferred stock, contribute capital to its subsidiaries, repurchase its common stock and certain of its other securities, pay all general operating expenses and meet its cash needs under current market conditions and reasonably possible stress scenarios.
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Dividends from Subsidiaries
MetLife, Inc. relies, in part, on dividends from its subsidiaries to meet its cash requirements. MetLife, Inc.’s insurance subsidiaries are subject to regulatory restrictions on the payment of dividends imposed by the regulators of their respective domiciles. The dividend limitation for U.S. insurance subsidiaries is generally based on the surplus to policyholders at the end of the immediately preceding calendar year and statutory net gain from operations for the immediately preceding calendar year. Statutory accounting practices, as prescribed by insurance regulators of various states in which we conduct business, differ in certain respects from accounting principles used in financial statements prepared in conformity with GAAP. The significant differences relate to the treatment of DAC, certain deferred income tax, required investment liabilities, statutory reserve calculation assumptions, goodwill and surplus notes.
The table below sets forth the dividends permitted to be paid in 2026 by MetLife, Inc.’s primary U.S. insurance subsidiaries without insurance regulatory approval and the actual dividends paid for the six months ended June 30, 2026:
Company
Paid (1)
Permitted Without
Approval (2)
(In millions)
MLIC
$
1,363
$
2,121
American Life Insurance Company
$
1,333
$
2,219
Metropolitan Tower Life Insurance Company
$
—
$
547
__________________
(1)Reflects all amounts paid, including those where regulatory approval was obtained as required.
(2)Reflects dividend amounts that may be paid during 2026 without prior regulatory approval. However, because dividend tests may be based on dividends previously paid over rolling 12-month periods, if paid before a specified date during 2026, some or all of such dividends may require regulatory approval.
In addition to the amounts presented in the table above, for the six months ended June 30, 2026, MetLife, Inc. also received from certain other subsidiaries cash dividends totaling $152 million and cash returns of capital totaling $12 million.
The dividend capacity of our non-U.S. operations is subject to similar restrictions established by the local regulators. The non-U.S. regulatory regimes also commonly limit dividend payments to the parent company to a portion of the subsidiary’s prior year statutory income, as determined by the local accounting principles. The regulators of our non-U.S. operations, including Japan’s Financial Services Agency, may also limit or not permit profit repatriations or other transfers of funds to the U.S. if such transfers are deemed to be detrimental to the solvency or financial strength of the non-U.S. operations, or for other reasons. Most of our non-U.S. subsidiaries are second tier subsidiaries which are owned by various non-U.S. holding companies. The capital and rating considerations applicable to our first-tier subsidiaries may also impact the dividend flow into MetLife, Inc.
We proactively manage target and excess capital levels and dividend flows and forecast local capital positions as part of the financial planning cycle. The dividend capacity of certain U.S. and non-U.S. subsidiaries is also subject to business targets in excess of the minimum capital necessary to maintain the desired rating or level of financial strength in the relevant market.
Long-term Debt Outstanding
The following table summarizes the outstanding long-term debt of MetLife, Inc. at:
June 30, 2026
December 31, 2025
(In millions)
Long-term debt — unaffiliated
$
13,768
$
13,999
Long-term debt — affiliated
$
1,408
$
1,451
Subordinated debt securities
$
4,450
$
3,461
Affiliated Capital and Lending Transactions
For the six months ended June 30, 2026 and 2025, MetLife, Inc. invested a net amount of $153 million and $28 million, respectively, in various subsidiaries.
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MetLife, Inc. lends funds, as necessary, through credit agreements or otherwise to its subsidiaries and affiliates, some of which are regulated, to meet their capital requirements or to provide liquidity. MetLife, Inc. had loans to subsidiaries outstanding of $255 million and $0 at June 30, 2026 and December 31, 2025, respectively. In March 2026, MetLife Services and Solutions, LLC (“MSS”) issued a $300 million short-term note to MetLife, Inc., bearing interest at the three-month Chicago Mercantile Exchange Term Secured Overnight Financing Rate plus 1.24%. In June 2026, MSS repaid $60 million of the short-term note to MetLife, Inc. in cash.
Adopted Accounting Pronouncements
See Note 1 of the Notes to the Interim Condensed Consolidated Financial Statements.
Future Adoption of Accounting Pronouncements
See Note 1 of the Notes to the Interim Condensed Consolidated Financial Statements.
Non-GAAP and Other Financial Disclosures
In this report, the Company presents certain measures of its performance on a consolidated and segment basis that are not calculated in accordance with GAAP. We believe that these non-GAAP financial measures enhance our investors’ understanding of our performance by highlighting the results of operations and the underlying profitability drivers of our business. Segment-specific financial measures are calculated using only the portion of consolidated results attributable to that specific segment.
The following non-GAAP financial measures should not be viewed as substitutes for the most directly comparable financial measures calculated in accordance with GAAP:
Non-GAAP financial measures:
Comparable GAAP financial measures:
(i)
adjusted premiums, fees and other revenues
(i)
premiums, fees and other revenues
(ii)
adjusted earnings
(ii)
net income (loss)
(iii)
adjusted earnings available to common
shareholders
(iii)
net income (loss) available to MetLife, Inc.’s common shareholders
(iv)
adjusted net investment income
(iv)
net investment income
Any financial measures shown on a constant currency basis reflect the impact of changes in foreign currency exchange rates and are calculated using the average foreign currency exchange rates for the current period and applied to the comparable prior period (“constant currency basis”).
Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures are included in “— Results of Operations” and “— Investments.” Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures are not accessible on a forward-looking basis because we believe it is not possible without unreasonable effort to provide other than a range of net investment gains and losses and net derivative gains and losses, which can fluctuate significantly within or outside the range and from period to period and may have a material impact on net income (loss).
Our definitions of non-GAAP and other financial measures discussed in this report may differ from those used by other companies.
Adjusted earnings and related measures:
•adjusted earnings;
•adjusted earnings available to common shareholders; and
•adjusted earnings available to common shareholders, on a constant currency basis.
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Adjusted earnings is used by the Company’s chief operating decision maker, its Chief Executive Officer (“CEO”), to evaluate performance and allocate resources. Consistent with GAAP guidance for segment reporting, adjusted earnings is our GAAP measure of segment performance. 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.
Adjusted earnings available to common shareholders is defined as adjusted earnings less preferred stock dividends. For additional information relating to adjusted earnings, see “Financial Measure and Segment Accounting Policies” and “Corporate & Other” in Note 2 of the Notes to the Interim Condensed Consolidated Financial Statements.
In addition, adjusted earnings available to common shareholders excludes the impact of preferred stock redemption premium, which is reported as a reduction to net income (loss) available to MetLife, Inc.’s common shareholders.
Return on equity, allocated equity and related measures:
•Total MetLife, Inc.’s adjusted common stockholders’ equity: total MetLife, Inc.’s common stockholders’ equity, excluding unrealized investment gains (losses), net of related offsets, deferred gains (losses) on derivatives, future policy benefits (“FPBs”) discount rate remeasurement gains (losses), MRBs instrument-specific credit risk remeasurement gains (losses), defined benefit plans adjustment components of accumulated other comprehensive income (loss) (“AOCI”) and the embedded derivatives related to funds withheld on ceded reinsurance (representing unrealized investment gains (losses) passed through to reinsurers), all net of income tax.
•Total MetLife, Inc.’s adjusted common stockholders’ equity, excluding total notable items: total MetLife, Inc.’s common stockholders’ equity, excluding unrealized investment gains (losses), net of related offsets, deferred gains (losses) on derivatives, FPBs discount rate remeasurement gains (losses), MRBs instrument-specific credit risk remeasurement gains (losses), defined benefit plans adjustment components of AOCI, the embedded derivatives related to funds withheld on ceded reinsurance (representing unrealized investment gains (losses) passed through to reinsurers) and total notable items, all net of income tax.
•Return on MetLife, Inc.’s common stockholders’ equity: net income (loss) available to MetLife, Inc.’s common shareholders divided by MetLife, Inc.’s average common stockholders’ equity.
•Adjusted return on MetLife, Inc.’s common stockholders’ equity: adjusted earnings available to common shareholders divided by MetLife, Inc.’s average adjusted common stockholders’ equity.
•Adjusted return on MetLife, Inc.’s common stockholders’ equity, excluding total notable items: adjusted earnings available to common shareholders, excluding total notable items, divided by MetLife, Inc.’s average adjusted common stockholders’ equity, excluding total notable items.
•Allocated equity: the portion of total MetLife, Inc.’s adjusted common stockholders’ equity that management allocates to each of its segments based on local capital requirements and economic capital. See “— Management’s Discussion and Analysis of Financial Condition and Results of Operations — Risk Management — Economic Capital” in the 2025 Annual Report.
The above measures represent a level of equity that excludes most components of AOCI, such as unrealized investment gains (losses), net of related offsets, and FPBs discount rate remeasurement gains (losses), as well as the impact of certain ceded reinsurance-related embedded derivatives, as these amounts are primarily driven by market volatility.
Expense ratio and direct expense ratio:
•Expense ratio: other expenses, net of capitalization of DAC, divided by premiums, fees and other revenues.
•Direct expense ratio: direct expenses divided by adjusted premiums, fees and other revenues. Direct expenses are comprised of employee-related costs, third-party staffing costs, and general and administrative expenses.
•Direct expense ratio, excluding total notable items related to direct expenses and pension risk transfers: direct expenses, excluding total notable items related to direct expenses, divided by adjusted premiums, fees and other revenues, excluding pension risk transfers.
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Assets under management:
•Total Assets Under Management (“Total AUM”) is comprised of MIM GA AUM plus Institutional Client AUM (each, as defined below).
•MIM General Account AUM (“MIM GA AUM”) is used by MetLife to describe the portion of GA AUM (as defined below) that MIM manages or advises.
•General Account AUM (“GA AUM”) is used by MetLife to describe assets in its general account (“GA”) investment portfolio. GA AUM is stated at estimated fair value and is comprised of GA total investments, the portion of the GA investment portfolio classified within assets held-for-sale, cash and cash equivalents, and accrued investment income on such assets, and excludes policy loans, certain contractholder-directed equity securities, FVO securities, mortgage loans originated for third parties, assets subject to ceded reinsurance arrangements with third parties and joint ventures, and certain other invested assets. Mortgage loans and real estate and REJVs included in GA AUM (at net asset value, net of deduction for encumbering debt) have been adjusted from carrying value to estimated fair value.
Classification of GA AUM by sector is based on the nature and characteristics of the underlying investments which can vary from how they are classified under GAAP. Accordingly, the underlying investments within certain real estate and REJVs that are primarily commercial mortgage loans (at net asset value, net of deduction for encumbering debt) have been reclassified to exclude them from real estate and REJVs and include them as commercial mortgage loans.
•Institutional Client AUM is comprised of SA AUM plus Reinsurance AUM plus TP AUM (each, as defined below). MIM manages or advises Institutional Client AUM in accordance with client guidelines contained in each investment advisory agreement.
◦Separate Account AUM (“SA AUM”) is comprised of separate account investment portfolios, which are managed or advised by MIM and included in MetLife, Inc.’s consolidated financial statements at estimated fair value, as well as accrued investment income on such assets.
◦Reinsurance AUM is comprised of GA assets subject to ceded reinsurance arrangements with third parties and joint ventures, which are managed or advised by MIM and are generally included in MetLife, Inc.’s consolidated financial statements at estimated fair value, as well as accrued investment income on such assets.
◦Third-Party AUM (“TP AUM”) is comprised of non-proprietary assets managed or advised by MIM on behalf of unaffiliated/third-party clients, which are stated at estimated fair value, as well as accrued investment income on such assets. Such non-proprietary assets are owned by unaffiliated/third-party clients and, accordingly, are generally not included in MetLife, Inc.’s consolidated financial statements.
Other items:
The following additional information is relevant to an understanding of our performance:
•We sometimes refer to sales activity for various products. These sales statistics do not correspond to revenues under GAAP, but are used as relevant measures of business activity. Further, sales statistics for our Asia, Latin America, and EMEA segments are on a constant currency basis.
•Volume growth, where cited, represents the change in certain measures of our segment results, including adjusted earnings, attributable to business growth, applying a model in which certain margins and factors are held constant, the most significant of which are underwriting margins, investment margins, changes in equity market performance, expense margins and the impact of changes in foreign currency exchange rates.
•Operating margin is calculated as adjusted earnings before provision for income tax as a percentage of net investment income plus other revenues.
•Pension risk transfers include U.K. funded reinsurance.
•“Third-party mortgage loan activity” relates to amounts associated with mortgage loans originated and acquired for third parties, including (i) the related investment returns and expenses which are passed through to the third-party lenders and (ii) the corresponding mortgage loan assets.
•Near-term represents one to three years.
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•We refer to observable forward yield curves as of a particular date in connection with making our estimates for future results. The observable forward yield curves at a given time are based on implied future interest rates along a range of interest rate durations. This includes the 10-year U.S. Treasury rate which we use as a benchmark rate to describe longer-term interest rates used in our estimates for future results.
•Notable items reflect the unexpected impact of events that affect the Company’s results, but that were unknown and that the Company could not anticipate when it devised its business plan. Notable items also include certain items regardless of the extent anticipated in the business plan, to help investors have a better understanding of the Company’s results and to evaluate and forecast those results. Notable items represent a positive (negative) impact to adjusted earnings available to common shareholders.
•The Company uses a measure of free cash flow to facilitate an understanding of its ability to generate cash for reinvestment into its businesses or use in non-mandatory capital actions. The Company defines free cash flow as the sum of cash available at MetLife’s holding companies from dividends from operating subsidiaries, expenses and other net flows of the holding companies (including capital contributions to subsidiaries), and net contributions from debt to be at or below target leverage ratios. This measure of free cash flow is prior to capital actions, such as common stock dividends and repurchases, debt reduction and mergers and acquisitions. Free cash flow should not be viewed as a substitute for net cash provided by (used in) operating activities calculated in accordance with GAAP. The free cash flow ratio is typically expressed as a percentage of annual adjusted earnings available to common shareholders.
Risk Management
See “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Risk Management” in the 2025 Annual Report for information on our risk management.
Subsequent Events
See Note 20 of the Notes to the Interim Condensed Consolidated Financial Statements for information on an additional common stock repurchase authorization.
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Mentions · how they’re counted
| Category | Underlined | Word counter | Model’s count |
|---|---|---|---|
| AI AI, artificial intelligence, generative AI, machine learning, large language model, LLM | 0 | 0 | 0 |
| Layoffs layoffs, RIF, headcount reduction, workforce optimization, restructuring | 0 | — | 0 |
| Recession recession, downturn, contraction, slowdown | 0 | 0 | 0 |
| Tariffs tariff, trade war, trade barriers, trade restrictions, trade policy | 1 | 1 | 1 |
| Buybacks share repurchase, buyback program | 1 | — | 0 |
Underlines use the same word lists the scores use. AI, recession and tariffs follow Palanor’s word counter, so those counts match it exactly on the same text. Layoffs and buybacks use the terms the model was given. The model’s count is an estimate by meaning, not by string, so it can differ from the underlines.
Not placed in the text
These quotes are stored with a score, but no passage here matches them closely enough to highlight. Rather than point at the wrong passage, they are listed as stored.
Theme · Investment Income Growth
“Higher recurring investment income reflected positive flows from pension risk transfer transactions and funding agreement issuances, higher income on real estate investments and higher yields on fixed income securities.”
Source: SEC EDGAR · public domain · Highlights by Palanor