MetLife Inc (NYSE:MET) Q2 2025 Earnings Fall Short of Estimates, Triggering 6% After-Hours Drop

MetLife Inc (NYSE:MET) reported its second-quarter 2025 earnings, falling short of analyst expectations on both revenue and earnings per share (EPS). The insurance and financial services giant posted adjusted EPS of $2.02, missing the consensus estimate of $2.16, while revenue came in at $17.92 billion versus the expected $18.72 billion. This underperformance has triggered a negative market reaction, with shares declining nearly 6% in after-hours trading.

Key Financial Metrics vs. Estimates

• Adjusted EPS: $2.02 (vs. $2.16 expected) – a 6.5% miss
• Revenue: $17.92 billion (vs. $18.72 billion expected) – a 4.3% shortfall
• Net Income: $698 million, down 23% year-over-year
• Adjusted Earnings: $1.4 billion, a 16% decline from the prior-year quarter

The weaker-than-expected results were driven by several factors, including less favorable underwriting margins, lower investment income from private equity, and higher net derivative losses due to stronger equity markets and rising interest rates.

Market Reaction

The immediate after-hours sell-off suggests investor disappointment, particularly given the broader context of MetLife’s recent performance. Over the past month, the stock had already declined nearly 6%, and the latest earnings miss appears to have exacerbated concerns about near-term profitability.

Segment Performance Highlights

• Group Benefits: Adjusted earnings fell 25% due to weaker underwriting in life and non-medical health products.
• Retirement & Income Solutions (RIS): Earnings declined 10%, impacted by lower recurring interest margins.
• Asia: Adjusted earnings dropped 22% (constant currency), driven by lower investment and underwriting margins.
• Latin America: A bright spot, with adjusted earnings up 15% on a constant currency basis.
• EMEA: Strong growth, with earnings up 30% on robust volume expansion.

Strategic Developments

CEO Michel Khalaf emphasized progress in MetLife’s "New Frontier" strategy, including strategic transactions with Chariot Re, Talcott Financial Group, and PineBridge Investments to bolster asset management and retirement solutions. The company also returned $900 million to shareholders via buybacks and dividends.

Outlook vs. Analyst Expectations

While MetLife did not provide explicit forward guidance, analysts currently estimate Q3 2025 revenue at $18.87 billion and full-year revenue at $76.13 billion. The lack of a strong upward revision in outlook may have contributed to the negative market sentiment.

For a deeper dive into MetLife’s earnings and future estimates, review the latest analyst projections here.

Disclaimer: This article is for informational purposes only and does not constitute investment advice.