MetLife’s second quarter was marked by a 2.9% negative market reaction, reflecting investor concerns over results that fell short of Wall Street expectations. Management cited less favorable underwriting, especially in Group Benefits, and lower variable investment income as primary headwinds. CEO Michel Khalaf described the underwriting experience as “within normal fluctuations,” but acknowledged challenges in both life and non-medical health, while also noting strong momentum in Asia and Latin America. The quarter was further impacted by a handful of large disability claims, which management downplayed as non-recurring.

Is now the time to buy MET? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From MetLife’s Q2 Earnings Call

• Suneet Kamath (Jefferies) pressed management on the drivers of elevated claims in Group Benefits. President of U.S. Business Ramy Tadros explained that the increase was due to normal quarterly fluctuations and a few large disability claims, not a systemic trend.
• Ryan Krueger (KBW) asked about the sustainability of strong Asia sales. Head of Asia Lyndon Oliver attributed growth to new product launches and distribution strength, especially in Japan and Korea, and said momentum is expected to continue.
• Thomas Gallagher (Evercore) inquired about the nature of disability claims and commercial mortgage loan reserves. Tadros clarified the disability claims were isolated, while CFO John McCallion noted the uptick in reserves was anticipated and within normal capital management levels.
• Wes Carmichael (Autonomous Research) sought detail on surrender activity in Japan and FABN issuance. Oliver said lower surrenders were a short-term headwind but would support future earnings, while Tadros described the funding agreement back note program as a positive for spreads.
• Cave Montazeri (Deutsche Bank) asked about the U.S. and U.K. pension risk transfer outlook and GenAI adoption. Tadros highlighted a strong pipeline for jumbo PRT deals, and CEO Khalaf detailed ongoing AI investments to drive efficiency and growth.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will closely track (1) the pace of underwriting margin recovery, especially in Group Benefits and non-medical health, (2) sustained sales momentum and new product launches in Asia and international markets, and (3) the progress and impact of strategic transactions such as PineBridge, Chariot Re, and the Talcott risk transfer. Execution in these areas will be key markers for MetLife’s ability to deliver on its growth strategy.

MetLife currently trades at $76.50, in line with $76.03 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).

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